[Senate Report 110-41]
[From the U.S. Government Publishing Office]
110th Congress Report
SENATE
1st Session 110-41
_______________________________________________________________________
R E P O R T
ON THE ACTIVITIES
of the
COMMITTEE ON FINANCE
of the
UNITED STATES SENATE
during the
109th CONGRESS
pursuant to
Rule XXVI of the Standing Rules
of the
UNITED STATES SENATE
March 29, 2007.--Ordered to be printed
For Sale by the Superintendent of Documents, U.S. Government Printing Office
Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512�091800
Fax: (202) 512�092250 Mail: Stop SSOP, Washington, DC 20402�090001
[109th Congress--Committee Membership]
COMMITTEE ON FINANCE
CHARLES E. GRASSLEY, Iowa, Chairman
ORRIN G. HATCH, Utah MAX BAUCUS, Montana
TRENT LOTT, Mississippi JOHN D. ROCKEFELLER IV, West
OLYMPIA J. SNOWE, Maine Virginia
JON KYL, Arizona KENT CONRAD, North Dakota
CRAIG THOMAS, Wyoming JAMES M. JEFFORDS (I), Vermont
RICK SANTORUM, Pennsylvania JEFF BINGAMAN, New Mexico
BILL FRIST, Tennessee JOHN F. KERRY, Massachusetts
GORDON SMITH, Oregon BLANCHE L. LINCOLN, Arkansas
JIM BUNNING, Kentucky RON WYDEN, Oregon
MIKE CRAPO, Idaho CHARLES E. SCHUMER, New York
Kolan Davis, Staff Director and Chief Counsel
Russell Sullivan, Democratic Staff Director
SUBCOMMITTEES
______
TAXATION AND IRS OVERSIGHT
JON KYL, Arizona, Chairman
TRENT LOTT, Mississippi JAMES M. JEFFORDS (I), Vermont
ORRIN G. HATCH, Utah MAX BAUCUS, Montana
OLYMPIA J. SNOWE, Maine KENT CONRAD, North Dakota
MIKE CRAPO, Idaho BLANCHE L. LINCOLN, Arkansas
CRAIG THOMAS, Wyoming CHARLES E. SCHUMER, New York
RICK SANTORUM, Pennsylvania
______
INTERNATIONAL TRADE
CRAIG THOMAS, Wyoming, Chairman
MIKE CRAPO, Idaho JEFF BINGAMAN, New Mexico
TRENT LOTT, Mississippi MAX BAUCUS, Montana
GORDON SMITH, Oregon JOHN D. ROCKEFELLER IV, West
JIM BUNNING, Kentucky Virginia
ORRIN G. HATCH, Utah KENT CONRAD, North Dakota
OLYMPIA J. SNOWE, Maine RON WYDEN, Oregon
BILL FRIST, Tennessee CHARLES E. SCHUMER, New York
(ii)
?
SOCIAL SECURITY AND FAMILY POLICY
RICK SANTORUM, Pennsylvania, Chairman
CHARLES E. GRASSLEY, Iowa KENT CONRAD, North Dakota
JIM BUNNING, Kentucky JOHN D. ROCKEFELLER IV, West
BILL FRIST, Tennessee Virginia
TRENT LOTT, Mississippi JAMES M. JEFFORDS (I), Vermont
JON KYL, Arizona JEFF BINGAMAN, New Mexico
GORDON SMITH, Oregon JOHN F. KERRY, Massachusetts
MIKE CRAPO, Idaho BLANCHE L. LINCOLN, Arkansas
______
HEALTH CARE
ORRIN G. HATCH, Utah, Chairman
OLYMPIA J. SNOWE, Maine JOHN D. ROCKEFELLER IV, West
BILL FRIST, Tennessee Virginia
JON KYL, Arizona JAMES M. JEFFORDS (I), Vermont
CRAIG THOMAS, Wyoming JEFF BINGAMAN, New Mexico
RICK SANTORUM, Pennsylvania JOHN F. KERRY, Massachusetts
JIM BUNNING, Kentucky RON WYDEN, Oregon
______
LONG-TERM GROWTH AND DEBT REDUCTION
GORDON SMITH, Oregon, Chairman
CHARLES E. GRASSLEY, Iowa JOHN F. KERRY, Massachusetts
(iii)
?
LETTER OF TRANSMITTAL
----------
U.S. Senate,
Committee on Finance,
Washington, DC, March 30, 2007.
Hon. Nancy Erickson,
Secretary, U.S. Senate,
Washington, DC.
Dear Ms. Erickson: In accordance with rule XXVI of the
Standing Rules of the United States Senate and the pertinent
unanimous consent order pertaining to this rule, I am
transmitting herewith a report on the activities of the
Committee on Finance of the United States Senate for the 109th
Congress.
Sincerely,
Max Baucus, Chairman.
(v)
C O N T E N T S
__________
Page
109th Congress--Committee Membership............................. ii
Letter of Transmittal............................................ v
Committee Jurisdiction........................................... 1
Rules of Procedure............................................... 2
Tax--Summary of Activities....................................... 5
Hearings and Meetings........................................ 6
Full Committee Executive Meetings............................ 14
Trade--Summary of Activities..................................... 17
Full Committee Hearings and Meetings......................... 20
Subcommittee on International Trade Hearings and Meetings.... 23
Full Committee Executive Meetings............................ 24
Informal Meetings............................................ 25
Health--Summary of Activities.................................... 27
Welfare...................................................... 27
Full Committee Hearings and Meetings......................... 29
Subcommittee on Health Care.................................. 33
Full Committee Executive Meetings............................ 33
Social Security--Summary of Activities........................... 35
Full Committee Hearings...................................... 35
Subcommittee on Long-Term Growth and Debt Reduction.......... 36
Oversight and Investigations--Summary of Activities.............. 37
Hearings..................................................... 37
Legislation.................................................. 39
Other Oversight Initiatives.................................. 41
Centers for Medicare and Medicaid Services............... 41
Food and Drug Administration............................. 46
Department of Health and Human Services.................. 50
Centers for Disease Control.............................. 51
Federal Bureau of Investigation.......................... 52
Department of Homeland Security.......................... 58
Miscellaneous............................................ 60
Nominations...................................................... 65
Bills and Resolutions referred to the Committee.................. 83
Reports, Prints, and Studies..................................... 84
Official Communications.......................................... 86
(vii)
110th Congress Report
SENATE
1st Session 110-41
======================================================================
REPORT ON THE ACTIVITIES OF THE COMMITTEE ON FINANCE DURING THE 109TH
CONGRESS
_______
March 29, 2007.--Ordered to be printed
_______
Mr. Baucus, from the Committee on Finance, submitted the following
R E P O R T
This report reviews the legislative and oversight
activities of the Committee on Finance during the 109th
Congress. These activities parallel the broad scope of
responsibilities vested in the Committee by the Legislative
Reorganization Act of 1946, as amended, rule XXV(k) of the
Standing Rules of the Senate, and additional authorizing
resolutions.
COMMITTEE JURISDICTION
Rule XXV(i) of the Standing Rules of the Senate requires
reference to this Committee of all proposed legislation, and
other matters, dealing with (i) Committee on Finance, to which
committee shall be referred all proposed legislation, messages,
petitions, memorials, and other matters relating to the
following subjects:
1. Bonded debt of the United States, except as
provided in the Congressional Budget Act of 1974.
2. Customs, collection districts, and ports of entry
and delivery.
3. Deposit of public moneys.
4. General revenue sharing.
5. Health programs under the Social Security Act and
health programs financed by a specific tax or trust
fund.
6. National social security.
7. Reciprocal trade agreements.
8. Revenue measures generally, except as provided in
the Congressional Budget Act of 1974.
9. Revenue measures relating to the insular
possessions.
10. Tariffs and import quotas, and matters related
thereto.
11. Transportation of dutiable goods.
(1)
COMMITTEE RULES
I. RULES OF PROCEDURE
Rule 1. Regular Meeting Days.--The regular meeting day of the
committee shall be the second and fourth Tuesday of each month, except
that if there be no business before the committee the regular meeting
shall be omitted.
Rule 2. Committee Meetings.--(a) Except as provided by paragraph 3
of Rule XXVI of the Standing Rules of the Senate (relating to special
meetings called by a majority of the committee) and subsection (b) of
this rule, committee meetings, for the conduct of business, for the
purpose of holding hearings, or for any other purpose, shall be called
by the chairman. Members will be notified of committee meetings at
least 48 hours in advance, unless the chairman determines that an
emergency situation requires a meeting on shorter notice. The
notification will include a written agenda together with materials
prepared by the staff relating to that agenda. After the agenda for a
committee meeting is published and distributed, no nongermane items may
be brought up during that meeting unless at least two-thirds of the
members present agree to consider those items.
(b) In the absence of the chairman, meetings of the committee may
be called by the ranking majority member of the committee who is
present, provided authority to call meetings has been delegated to such
member by the chairman.
Rule 3. Presiding Officer.--(a) The chairman shall preside at all
meetings and hearings of the committee except that in his absence the
ranking majority member who is present at the meeting shall preside.
(b) Notwithstanding the rule prescribed by subsection (a) any
member of the committee may preside over the conduct of a hearing.
Rule 4. Quorums.--(a) Except as provided in subsection (b) one-
third of the membership of the committee, including not less than one
member of the majority party and one member of the minority party,
shall constitute a quorum for the conduct of business.
(b) Notwithstanding the rule prescribed by subsection (a), one
member shall constitute a quorum for the purpose of conducting a
hearing.
Rule 5. Reporting of Measures or Recommendations.--No measure or
recommendation shall be reported from the committee unless a majority
of the committee is actually present and a majority of those present
concur.
Rule 6. Proxy Voting; Polling.--(a) Except as provided by
paragraph 7(a)(3) of Rule XXVI of the Standing Rules of the Senate
(relating to limitation on use of proxy voting to report a measure or
matter), members who are unable to be present may have their vote
recorded by proxy.
(b) At the discretion of the committee, members who are unable to
be present and whose vote has not been cast by proxy may be polled for
the purpose of recording their vote on any rollcall taken by the
committee.
Rule 7. Order of Motions.--When several motions are before the
committee dealing with related or overlapping matters, the chairman may
specify the order in which the motions shall be voted upon.
Rule 8. Bringing a Matter to a Vote.--If the chairman determines
that a motion or amendment has been adequately debated, he may call for
a vote on such motion or amendment, and the vote shall then be taken,
unless the committee votes to continue debate on such motion or
amendment, as the case may be. The vote on a motion to continue debate
on any motion or amendment shall be taken without debate.
Rule 9. Public Announcement of Committee Votes.--Pursuant to
paragraph 7(b) of Rule XXVI of the Standing Rules of the Senate
(relating to public announcement of votes), the results of rollcall
votes taken by the committee on any measure (or amendment thereto) or
matter shall be announced publicly not later than the day on which such
measure or matter is ordered reported from the committee.
Rule 10. Subpoenas.--Subpoenas for attendance of witnesses and the
production of memoranda, documents, and records shall be issued by the
chairman, or by any other member of the committee designated by him.
Rule 11. Nominations.--In considering a nomination, the Committee
may conduct an investigation or review of the nominee's experience,
qualifications, and suitability, to serve in the position to which he
or she has been nominated. To aid in such investigation or review, each
nominee may be required to submit a sworn detailed statement including
biographical, financial, policy, and other information which the
Committee may request. The Committee may specify which items in such
statement are to be received on a confidential basis. Witnesses called
to testify on the nomination may be required to testify under oath.
Rule 12. Open Committee Hearings.--To the extent required by
paragraph 5 of Rule XXVI of the Standing Rules of the Senate (relating
to limitations on open hearings), each hearing conducted by the
committee shall be open to the public.
Rule 13. Announcement of Hearings.--The committee shall undertake
consistent with the provisions of paragraph 4(a) of Rule XXVI of the
Standing Rules of the Senate (relating to public notice of committee
hearings) to issue public announcements of hearings it intends to hold
at least one week prior to the commencement of such hearings.
Rule 14. Witnesses at Hearings.--(a) Each witness who is scheduled
to testify at any hearing must submit his written testimony to the
staff director not later than noon of the business day immediately
before the last business day preceding the day on which he is scheduled
to appear. Such written testimony shall be accompanied by a brief
summary of the principal points covered in the written testimony.
Having submitted his written testimony, the witness shall be allowed
not more than 10 minutes for oral presentation of his statement.
(b) Witnesses may not read their entire written testimony, but
must confine their oral presentation to a summarization of their
arguments.
(c) Witnesses shall observe proper standards of dignity, decorum
and propriety while presenting their views to the committee. Any
witness who violates this rule shall be dismissed, and his testimony
(both oral and written) shall not appear in the record of the hearing.
(d) In scheduling witnesses for hearings, the staff shall attempt
to schedule witnesses so as to attain a balance of views early in the
hearings. Every member of the committee may designate witnesses who
will appear before the committee to testify. To the extent that a
witness designated by a member cannot be scheduled to testify during
the time set aside for the hearing, a special time will be set aside
for the witness to testify if the member designating that witness is
available at that time to chair the hearing.
Rule 15. Audiences.--Persons admitted into the audience for open
hearings of the committee shall conduct themselves with the dignity,
decorum, courtesy and propriety traditionally observed by the Senate.
Demonstrations of approval or disapproval of any statement or act by
any member or witness are not allowed. Persons creating confusion or
distractions or otherwise disrupting the orderly proceeding of the
hearing shall be expelled from the hearing.
Rule 16. Broadcasting of Hearings.--(a) Broadcasting of open
hearings by television or radio coverage shall be allowed upon approval
by the chairman of a request filed with the staff director not later
than noon of the day before the day on which such coverage is desired.
(b) If such approval is granted, broadcasting coverage of the
hearing shall be conducted unobtrusively and in accordance with the
standards of dignity, propriety, courtesy and decorum traditionally
observed by the Senate.
(c) Equipment necessary for coverage by television and radio
media shall not be installed in, or removed from, the hearing room
while the committee is in session.
(d) Additional lighting may be installed in the hearing room by
the media in order to raise the ambient lighting level to the lowest
level necessary to provide adequate television coverage of the hearing
at the then current state of the art of television coverage.
(e) The additional lighting authorized by subsection (d) of this
rule shall not be directed into the eyes of any members of the
committee or of any witness, and at the request of any such member or
witness, offending lighting shall be extinguished.
(f) No witness shall be required to be photographed at any
hearing or to give testimony while the broadcasting (or coverage) of
that hearing is being conducted. At the request of any such witness who
does not wish to be subjected to radio or television coverage, all
equipment used for coverage shall be turned off.
Rule 17. Subcommittees.--(a) The chairman, subject to the approval
of the committee, shall appoint legislative subcommittees. All
legislation shall be kept on the full committee calendar unless a
majority of the members present and voting agree to refer specific
legislation to an appropriate subcommittee.
(b) The chairman may limit the period during which House-passed
legislation referred to a subcommittee under paragraph (a) will remain
in that subcommittee. At the end of that period, the legislation will
be restored to the full committee calendar. The period referred to in
the preceding sentences should be 6 weeks, but may be extended in the
event that adjournment or a long recess is imminent.
(c) All decisions of the chairman are subject to approval or
modification by a majority vote of the committee.
(d) The full committee may at any time by majority vote of those
members present discharge a subcommittee from further consideration of
a specific piece of legislation.
(e) Because the Senate is constitutionally prohibited from
passing revenue legislation originating in the Senate, subcommittees
may mark up legislation originating in the Senate and referred to them
under Rule 16(a) to develop specific proposals for full committee
consideration but may not report such legislation to the full
committee. The preceding sentence does not apply to nonrevenue
legislation originating in the Senate.
(f) The chairman and ranking minority members shall serve as
nonvoting ex officio members of the subcommittees on which they do not
serve as voting members.
(g) Any member of the committee may attend hearings held by any
subcommittee and question witnesses testifying before that
subcommittee.
(h) Subcommittee meeting times shall be coordinated by the staff
director to insure that--
(1) no subcommittee meeting will be held when the committee
is in executive session, except by unanimous consent;
(2) no more than one subcommittee will meet when the full
committee is holding hearings; and
(3) not more than two subcommittees will meet at the same
time.
Notwithstanding paragraphs (2) and (3), a subcommittee may meet
when the full committee is holding hearings and two subcommittees may
meet at the same time only upon the approval of the chairman and the
ranking minority member of the committee and subcommittees involved.
(i) All nominations shall be considered by the full committee.
(j) The chairman will attempt to schedule reasonably frequent
meetings of the full committee to permit consideration of legislation
reported favorably to the committee by the subcommittees.
Rule 18. Transcripts of Committee Meetings.--An accurate record
shall be kept of all markups of the committee, whether they be open or
closed to the public. This record, marked as ``uncorrected,'' shall be
available for inspection by Members of the Senate, or members of the
committee together with their staffs, at any time. This record shall
not be published or made public in any way except:
(a) By majority vote of the committee after all members of the
committee have had a reasonable opportunity to correct their remarks
for grammatical errors or to accurately reflect statements made.
(b) Any member may release his own remarks made in any markup of
the committee provided that every member or witness whose remarks are
contained in the released portion is given a reasonable opportunity
before release to correct their remarks.
Notwithstanding the above, in the case of the record of an
executive session of the committee that is closed to the public
pursuant to Rule XXVI of the Standing Rules of the Senate, the record
shall not be published or made public in any way except by majority
vote of the committee after all members of the committee have had a
reasonable opportunity to correct their remarks for grammatical errors
or to accurately reflect statements made.
Rule 19. Amendment of Rules.--The foregoing rules may be added to,
modified, amended or suspended at any time.
TAX
SUMMARY OF ACTIVITIES
During the 109th Congress the Finance Committee was able to
accomplish many long held goals. Major policy areas the
Committee was actively engaged in included: (i) the tax title
of the highway bill, (ii) the tax title of the energy bill,
(iii) pensions and retirement security, (iv) budget
reconciliation, (v) expiring tax provisions, (vi) rebuilding of
the Gulf Coast following a series of devastating hurricanes,
(vii) repeal of the telephone excise tax, (viii) taxpayer and
whistleblower protection. The Committee also held many hearings
to reinforce its legislative and oversight functions, including
the continued investigation of the role and status of tax-
exempt organizations.
In April 2005, the Committee marked-up and reported S.
1230, the ``Highway Reauthorization and Excise Tax
Simplification Act of 2005'' and S. 661, the ``United States
Tax Court Modernization Act.'' S. 1230 and parts of S. 661 were
included in a substitute amendment to H.R. 3, the ``Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users'' (SAFETY-LU). After a successful conference,
SAFETY-LU was signed into law on August 10, 2005 (Pub. L. No.
109-59).
On June 16, 2006, the Committee met in Executive Session to
consider and report an original bill, the ``Energy Policy Tax
Incentives Act of 2005,'' which was amended to H.R. 6, the
``Energy Policy Act of 2005.'' The conference agreement was
completed on July 27, 2005 and H.R. 6 was signed into law on
August 8, 2005 (Pub. L. No. 109-58).
On July 26, 2005, the Committee met in Executive Session to
consider and report S. 1953, the ``National Employee Savings
and Trust Equity Guarantee Act of 2005'' (NESTEG). After a
conference with the House, most of the product of that
conference was introduced as H.R. 4, the ``Pension Protection
Act of 2006'' (PPA 2006). PPA 2006 was signed into law on
August 17, 2006 (Pub. L. No. 109-280).
In November 2005, the Committee marked-up and reported S.
2020, the ``Tax Relief Act of 2005'' (TRA 2005), which passed
the Senate on November 18, 2005. Several provisions of TRA 2005
were included in H.R. 4440, the ``Gulf Opportunity Zone Act of
2005,'' which passed the Senate on December 16, 2005, and was
signed into law on December 22, 2005 (Pub. L. No. 109-135).
Several other provisions of TRA 2005 were included in H.R.
4297, the ``Tax Increase Prevention and Reconciliation Act of
2005'' (TIPRA 2005), which passed the Senate on February 2,
2006, and was successfully conferenced and signed into law on
May 17, 2006 (Pub. L. No. 109-222). Many of the remaining
provisions contained in TRA 2005 were included in H.R. 6111,
the ``Tax Relief and Health Care Act of 2006,'' which passed
the Senate on December 2, 2006, and was signed into law on
December 20, 2006 (Pub. L. No. 109-432).
In the tax administration area, the Committee marked-up and
reported an expanded version of S. 1321, the ``Telephone Excise
Tax Repeal Act of 2005,'' in June 2006. This bill incorporated
S. 832, the ``Taxpayer Protection and Assistance Act of 2005,''
and was renamed S. 1321, the ``Telephone Excise Tax Repeal and
Taxpayer Protection Assistance Act of 2006.'' Included among
the provisions in the bill were the repeal of excise tax on
telephone and other communications services, regulation of
Federal tax return preparers, direct access to e-file Federal
income tax returns, and reform of penalty and interest
provisions. S. 1321 was reported by Senator Grassley on
September 15, 2006, with an amendment in the nature of a
substitute and an amendment to the title.
Hearings and Meetings
2005
February 8, 2005--Hearing on Revenue Proposals in the
President's FY 2006 Budget. Treasury Secretary John Snow
testified on the revenue proposals in the Administration's
FY 2006 Budget.
March 1, 2005--Hearing on Financial Status of PBGC and the
Administration's Defined Benefit Plan Funding Proposal.
This hearing on the state of defined benefit pension plans
focused on the government backer of that system, the
Pension Benefit Guaranty Corporation or ``PBGC,'' and the
Administration's recent proposal to strengthen pension
funding. Witnesses included Mr. Bradley D. Belt, Executive
Director, Pension Benefit Guaranty Corporation; Mr. Mark J.
Warshawsky, Assistant Secretary for Econonic Policy,
Department of the Treasury; Ms. Ann Combs, Assistant
Secretary for the Employee Benefits Security
Administration, Department of Labor; Mr. Larry Zimpleman,
President, Retirement and Investor Services, Principal
Financial Group, on behalf of the Business Roundtable; Mr.
Alan Reuther, Legislative Director, United Auto Workers;
and Mr. Randall S. Kroszner, Professor of Economics, The
University of Chicago Graduate School of Business.
March 16, 2005--Hearing on Expiring Tax Provisions: Live or Let
Die. This hearing reviewed tax provisions set to expire at
the end of 2005. It focused on the largely business-related
provisions that expire annually and examined the merits of
other expiring provisions by considering whether particular
provisions should be made permanent or allowed to lapse,
whether proposed expansions are appropriate or desirable,
and whether reforms are needed to make provisions more
administrable or more efficient. The Committee heard
testimony from The Honorable Robert Carroll, Deputy
Assistant Secretary for Tax Analysis, U.S. Department of
the Treasury; The Honorable Donald C. Alexander, Partner,
Akin, Gump, Strauss, Hauer & Feld, L.L.P.; Mr. Daniel L.
Doctoroff, Deputy Mayor for Economic Development and
Rebuilding, City of New York; Dr. David E. Martin, Chief
Executive Officer, M-CAM; Mr. David Hernandez, Vice
President of Tax, EDS; Mr. Dale Giovengo, Human Resource
Director, Giant Eagle; and Dr. Hy L. Dubowsky, Director,
Economic Development Services, New York State Department of
Labor.
April 5, 2005--Hearing on Charities and Charitable Giving:
Proposals for Reform. This hearing focused on strengthening
the role of charities in America and closing the tax gap as
it relates to charities and charitable giving. Testifying
before the Committee were The Honorable Mark Everson,
Commissioner, Internal Revenue Service; Mr. George K. Yin,
Chief of Staff, Joint Committee on Taxation; Mr. Leon
Panetta, Director, Panetta Institute for Public Policy; Mr.
Mike Hatch, Attorney General, State of Minnesota; Dr. Jane
Gravelle, Senior Specialist in Economic Policy,
Congressional Research Service; Mr. Richard Johnson,
Member, Waller Lansden Dortch and Davis, PLLC; Mr. David
Kuo, Former Special Assistant to the President and Deputy
Director, White House Office of Faith-Based & Community
Initiatives; Mr. Brian Gallagher, President, United Way;
and Ms. Diana Aviv, President and CEO, Independent Sector.
April 14, 2005--Hearing on The $350 Billion Question: How to
Solve the Tax Gap. This hearing identified causes of the
tax gap--such as underreporting, underpayment, non-filing
of taxes, and outright fraud--and presented recommendations
for closing the tax gap. Witnesses included The Honorable
David Walker, Comptroller General, U.S. Government
Accountability Office; Mr. George K. Yin, Chief of Staff,
Joint Committee on Taxation; The Honorable Mark Everson,
Commissioner, Internal Revenue Service; The Honorable
Eileen J. O'Connor, Assistant Attorney General, U.S.
Department of Justice; The Honorable Russell George,
Inspector General for Tax Administration, U.S. Department
of the Treasury; Ms. Nina E. Olson, National Taxpayer
Advocate, Taxpayer Advocate Service; Mr. Kevin M. Brown,
Commissioner, Small Business/Self Employed Division,
Internal Revenue Service; and Ms. Nancy J. Jardini, Chief,
Criminal Investigation, Internal Revenue Service.
May 15, 2005--Republican Member's Meeting to discuss Budget
Reconciliation.
May 23, 2005--Hearing on Blowing the Cover on the Stealth Tax:
Exposing the Individual AMT. The Subcommittee on Taxation
and IRS Oversight met to begin the process of educating
Senators and the public about the complexity of the
alternative minimum tax (AMT) and about how the AMT amounts
to a ``stealth'' tax that traps many unsuspecting
taxpayers. The Subcommittee heard testimony from The
Honorable Robert Carroll, Deputy Assistant Secretary for
Tax Analysis, U.S. Department of Treasury; Dr. Douglas
Holtz-Eakin, Director, Congressional Budget Office; Ms.
Nina E. Olson, National Taxpayer Advocate, Taxpayer
Advocate Service; Dr. Leonard E. Burman, Senior Fellow and
co-director of the Urban-Brookings Tax Policy Center, The
Urban Institute; Dr. Kevin A. Hassett, Director of Economic
Policy Studies, American Enterprise Institute; and Ms.
Carol C. Markman, CPA, President, National Conference of
CPA Practioners and Partner at Feldman, Meinberg & Co.,
LLP.
May 25, 2005--Hearing on Social Security: Achieving Sustainable
Solvency. This hearing, the third in a series of hearings
on Social Security, focused on a menu of options to achieve
sustainable Social Security solvency and addressed the
potential payroll ``tax gap.'' Testifying before the
Committee were Dr. Douglas Holtz-Eakin, Director,
Congressional Budget Office; Dr. Eugene C. Steuerle, Senior
Fellow, Urban Institute; Mr. Stanford G. Ross, former
Commissioner of the Social Security Administration; Mr.
George K. Yin, Chief of Staff, Joint Committee on Taxation;
and The Honorable Russell George, Office of the Treasury
Inspector General for Tax Administration, U.S. Department
of the Treasury.
June 7, 2005--Hearing on Preventing the Next Pension Collapse:
Lessons from the United Airlines Case. This hearing
examined the bankruptcy of United Airlines and the massive
losses in its employee pension funds by attempting to
answer the following questions: how did it happen, why did
it happen, and how can Congress prevent it from happening
again? Witnesses included The Honorable David M. Walker,
Comptroller General of the United States, Government
Accountability Office; Mr. Bradley D. Belt, Executive
Director, Pension Benefit Guaranty Corporation; Dr. Douglas
Holtz-Eakin, Director, Congressional Budget Office; Ms.
Patricia A. Friend, International President, Association of
Flight Attendants-CWA, AFL-CIO; Mr. Robert Roach, Jr.,
General Vice President, International Association of
Machinists and Aerospace Workers; Captain Duane E. Woerth,
President, Airline Pilots Association International; Mr.
Glenn F. Tilton, Chairman, President and Chief Executive
Officer, United Airlines; Mr. Gerald Grinstein, Chief
Executive Officer, Delta Airlines; and Mr. Douglas
Steenland, President and Chief Executive Officer, Northwest
Airlines.
June 8, 2005--Hearing on The Tax Code and Land Conservation:
Report on Investigations and Proposals for Reform. This
hearing examined two reports: the report on The Nature
Conservancy (TNC) prepared by the Finance Committee staff,
and the report on the Department of the Interior's proposed
purchase of mineral rights in Florida from a private
organization prepared by the Department of the Interior's
Inspector General. These two reports highlighted how lax
procedures by land trusts and improper valuations can give
land conservation efforts a bad name. In addition, the
hearing discussed the topic of questionable tax planning
activities by charities and raised issues about whether
charities are acting within the laws governing them as
Congress intended and within a manner that justifies their
tax exempt status to the public. The hearing also
facilitated a discussion about the problems and issues
facing Members of Congress as they attempt to ensure that
the tax code provisions that encourage donations of
conservation easements are effective. Testifying before the
Committee were Mr. Jonathan Selib, Tax Counsel, U.S. Senate
Committee on Finance; Mr. Dean Zerbe, Tax Counsel and
Senior Counsel to the Chairman, U.S. Senate Committee on
Finance; Mr. Earl E. Devaney, Inspector General, U.S.
Department of Interior; Mr. Steven J. McCormick, President
and CEO, Nature Conservancy; Mr. Ira Millstein, Weil,
Gotshal & Manges, LLP; Mr. Rand Wentworh, President, Land
Trust Alliance; Mr. Timothy Lindstrom, Director of
Protection & Staff Attorney, Jackson Hole Land Trust; Mr.
Burnet R. Maybank, III, Director, South Carolina Department
of Revenue; and Mr. Steven T. Miller, Commissioner, Tax
Exempt and Government Entities Operating Division, Internal
Revenue Service.
June 30, 2005--Hearing on Encouraging Savings and Investment:
Stay the Course or Change Direction? This hearing of the
Subcommittee on Taxation and IRS Oversight reviewed whether
certain tax provisions set to expire in 2010--section 179
expensing, the retirement savings contribution credit, and
the 15 percent rate on most individual dividends and
capital gains--are accomplishing what Congress intended and
if their cost is worth the economic benefit. Witnesses
included Mr. G. Scott Harding, President and CEO, F.B.
Harding, Inc.; Mr. Robert A. Weinberger, Vice President,
Government Relations, H&R Block; Mr. David Malpass, Chief
Economist, Bear Stearns; Dr. Eric Toder, Senior Fellow, The
Urban Institute; Mr. Stephen J. Entin, President and
Executive Director, Institute for Research on the Economics
of Taxation; and Mr. Brian Graff, Executive Director and
CEO, American Society of Pension Professionals & Actuaries.
July 21, 2005--Hearing on Updating Depreciable Lives: Is there
Salvage Value in the Current System? This hearing of the
Subcommittee on Long-Term Growth and Debt Reduction
examined the current tax depreciation system and its
effects on long-term economic growth. The Subcommittee
heard testimony from Mr. Joseph M. Mikrut, Partner, Capitol
Tax Partners; Dr. Thomas S. Neubig, National Director,
Quantitative Economics and Statistics, Ernst & Young LLP;
Dr. Jane Gravelle, Senior Specialist in Economic Policy,
Congressional Research Service, Library of Congress; Mr.
Kenneth D. Simonson, Chief Economist, Associated General
Contractors of America; and Mr. Christopher R. Anderson,
President, Massachusetts High Technology Council, Inc.
September 13, 2005--Hearing on Charities on the Frontline: How
the Nonprofit Sector Meets the Needs of America's
Communities. This hearing of the Subcommittee on Social
Security and Family Policy discussed the role of the
charitable community in meeting the needs of America's
communities. Witnesses included Mr. Luke Hingson,
President, Brother's Brother Foundation; Major George Hood,
Director of National Community Relations and Development,
The Salvation Army; Dr. Bob Reccord, President and CEO,
North American Mission Board, Southern Baptist Convention;
Dr. William G. Gale, Senior Fellow, The Brookings
Institution; and Dr. C. Eugene Steuerle, Senior Fellow,
Urban Institute.
September 28, 2005--Hearing on Hurricane Katrina: Community
Rebuilding Needs and Effectiveness of Past Proposals. This
hearing focused on efforts to deal with the aftermath of
Hurricane Katrina. Along with a distinguished panel of
witnesses, the Committee discussed how to find the most
efficient and effective ways to use the Federal resources
under the Finance Committee's jurisdiction to carry out the
overall policy of rebuilding the Gulf Coast region.
Witnesses included The Honorable Haley Barbour, via
videoconference, Governor, State of Mississippi; The
Honorable Kathleen Blanco, Governor, State of Louisiana;
The Honorable Bob Riley, via videoconference, Governor,
State of Alabama; Mr. George K. Yin, Chief of Staff, Joint
Committee on Taxation; Ms. Diana Aviv, President and CEO,
Independent Sector; Mr. Daniel L. Doctoroff, Deputy Mayor
for Economic Development and Rebuilding for the City of New
York; Mr. Gary P. LaGrange, president and CEO, Port of New
Orleans, New Orleans, LA and Chairman, American Association
of Port Authorities; and Ms. Jean-Mari Peltier, President
and CEO, National Council of Farmer Cooperatives.
October 5, 2005--Republican Member's Meeting to discuss
Reconciliation.
October 6, 2005--Hearing on The Future of the Gulf Coast: Using
Tax Policy to Help Rebuild Businesses and Communities and
Support Families after Disasters. This hearing examined
ways in which tax policy can be used effectively to help
rebuild businesses and communities and support families in
the Gulf Coast region following Hurricane Katrina. The
hearing also discussed past successes and failures in using
tax policy for disaster relief. Witnesses included The
Honorable John W. Snow, Secretary, U.S. Department of the
Treasury; The Honorable Jack Kemp, Founder and Chairman,
Kemp Partners, and Honorary Co-Chairman, Free Enterprise
Fund; The Honorable Tate Reeves, State Treasurer, State of
Mississippi; Ms. Dianne Bolen, Executive Director,
Mississippi Home Corporation; Mr. Harry Connick Jr.,
Honorary Chair, Operation Home Delivery, Habitat for
Humanity International; Dr. Jane Gravelle, Senior
Specialist in Economic Policy, Congressional Research
Service, Library of Congress; and Mr. James R. Kelly, Chief
Executive Officer, Catholic Charities Archdiocese of New
Orleans.
Hearings and Meetings
2006
January 7, 2006--Hearing on the President's Fiscal Year 2007
Budget Proposal. Treasury Secretary John W. Snow testified
on revenue proposals in the Administration's 2007 budget.
March 8, 2006--Hearing on Taking a Checkup on the Nation's
Health Care Tax Policy: A Prognosis. This hearing examined
the impact of U.S. tax policy on our nation's health care
system and addressed whether the nation is ``getting its
money's worth'' from existing U.S. health tax incentives.
Witnesses included The Honorable Paul H. O'Neill, former
Secretary of the Treasury; Dr. Leonard E. Burman, Senior
Fellow, Co-Director of the Urban-Brookings Tax Policy
Center, Urban Institute; and Mr. Robert W. Lane, Chairman
and Chief Executive Officer, Deere & Company.
March 15, 2006--House-Senate Conference on H.R. 4297, Tax
Relief Extension Reconciliation Act.
March 16, 2006--Hearing on Cuno and Competitiveness: Where to
Draw the Line. This hearing of the Subcommittee on
International Trade assessed the Cuno case and its impact
on domestic and international competitiveness. Witnesses
included The Honorable George V. Voinovich, United States
Senator; Mr. Peter D. Enrich, Professor of Law,
Northeastern University School of Law; Mr. Harley Duncan,
Executive Director, Federation of Tax Administrators; Mr.
Walter Hellerstein, Francis Shackelford Distinguished
Professor of Taxation Law, University of Georgia School of
Law; Dr. Peter Fisher, Professor, Graduate Program in Urban
and Regional Planning, University of Iowa; and Mr. James H.
Renzas, President and Chief Executive Officer, Location
Management Services.
April 4, 2006--Hearing on Preparing Your Taxes: How Costly Is
It? This hearing examined the current state of electronic
filing services and tax preparation. More specifically, the
hearing showcased the successes of the states in the area
of electronic filing and scrutinized some bad practices
that seem to be pervasive and systemic in the tax
preparation industry. The Committee heard from several
witnesses including the GAO, the IRS, the Taxpayer
Advocate, the Free File Alliance, the National Association
of Enrolled Agents, and the Federation of Tax
Administrators.
April 6, 2006--Hearing on Saving for the 21st Century: Is
America Saving Enough to be Competitive in the Global
Marketplace? This hearing of the Subcommittee on Long-Term
Growth and Debt Reduction evaluated current trends in U.S.
national savings. The subcommittee heard testimony from Dr.
Thomas J. McCool, Director of the Center for Economics,
Government Accountability Office; Mr. Jurrien Timmer,
Director of Market Research, Fidelity Investments; Dr.
Barry P. Bosworth, Senior Fellow, Economic Studies, The
Robert V. Rossa Chair in International Economics, The
Brookings Institution; and Dr. Lael Brainard, Vice
President and Director of the Global Economy Development
Center, the New Century Chair in International Economics,
The Brookings Institution.
May 23, 2006--Hearing on Encouraging Economic Self-
Determination in Indian Country. This hearing of the
Subcommittee on Long-Term Growth and Debt Reduction
examined the ability of Indian tribes to issue tax-exempt
bonds for purposes of infrastructure development and long-
term, self-sustaining economic growth. Witnesses included
Mr. Raymond C. Etcitty, Esq., Chief Legislative Counsel,
Navajo Nation Office of Legislative Counsel; Ms. Lenor A.
Scheffler, Esq., Best & Flanagan LLP; Dr. Gavin Clarkson,
Assistant Professor, University of Michigan, School of
Information, School of Law, Native American Studies; Mr.
Scott Schickli, Esq., Orrick Herrington & Sutcliffe LLP;
and Mr. Wayne A. Shammel, Esq., General Counsel, Cow Creek
Band of Umpqua Tribe of Indians.
June 13, 2006--Hearing on A Tune-Up On Corporate Tax Issues:
What's Going On Under the Hood? This hearing focused on the
current state of the U.S. corporate tax system. In addition
to discussing corporate tax compliance and enforcement
matters, the hearing examined the last-in, first-out
(``LIFO'') method of inventory tax accounting and
considered lowering tax rates and broadening the tax base
in the context of business tax reform. The Committee heard
testimony from The Honorable Mark Everson, Commissioner,
Internal Revenue Service; The Honorable David Walker,
Comptroller General, U.S. Government Accountability Office;
The Honorable Eileen J. O'Connor, Assistant Attorney
General, Tax Division, U.S. Department of Justice; Dr.
George A. Plesko, Associate Professor, Department of
Accounting, University of Connecticut School of Business;
Mr. Edward D. Kleinbard, Partner, Cleary Gottlieb Steen &
Hamilton LLP; and Dr. Martin A. Sullivan, Contributing
Editor, Tax Analysts.
June 29, 2006--Hearing on Small Business Pension Plans: How Can
We Increase Work Coverage? This Subcommittee on Long-Term
Growth and Debt Reduction hearing focused on small employer
coverage and employee participation while discussing
Congress's role in helping small businesses and Americans
save for retirement. Witnesses at this subcommittee hearing
included Dr. Craig Copeland, Senior Research Associate,
Employee Benefit Research Institute; Mr. Steve Bjerke,
Investment Representative, Edward Jones; Mr. Daniel Hall,
Regional Pension Manager, The Standard, StanCorp Equities,
Inc.; Ms. Paula Calimafde, Chair, Small Business Council of
America; Mr. David C. John, Senior Research Fellow, The
Heritage Foundation; and Mr. J. Mark Iwry, Senior Advisor,
The Retirement Security Project, and Nonresident Senior
Fellow, The Brookings Institution.
July 25, 2006--Hearing on How Much Should Borders Matter?: Tax
Jurisdiction in the Economy. This hearing of the
Subcommittee on International Trade addressed the question
of whether traditional physical presence based on
geographic borders is still the most appropriate standard
for tax jurisdiction, and if not, what is the proper
standard? The question was examined in two separate
contexts: (1) increasing interstate and international
commerce over the internet, and (2) business activity taxes
(BAT) that are imposed directly by states on businesses or
individuals. The Subcommittee heard testimony from three
panels. Witnesses included The Honorable Michael B. Enzi,
United States Senator from Wyoming; state government
officials from Iowa, Montana, and Wyoming; taxation
experts; and business community representatives
July 26, 2006--Hearing on A Closer Look at the Size and Sources
of the Tax Gap. This hearing of the Subcommittee on
Taxation and IRS Oversight, a follow-up to a 2005 full
Finance Committee hearing and a 2006 Budget Committee
hearing, examined several aspects of the tax gap, including
its size, its causes, and potential solutions for
addressing it. Witnesses included Dr. Mark J. Mazur,
Director, Research, Analysis, and Statistics, Internal
Revenue Service; Mr. Michael Brostek, Director, Tax Issues,
Strategic Issues Team, U.S. Government Accountability
Office; The Honorable J. Russell George, Treasury Inspector
General for Tax Administration; Ms. Nina E. Olson, National
Taxpayer Advocate, Taxpayer Advocate Service; and The
Honorable Raymond T. Wagner, Jr., Chairman, IRS Oversight
Board, Washington, DC, Legal and Legislative Vice
President, Enterprise Rent-A-Car Company.
August 3, 2006--Hearing on Kick-Off for Tax Reform: Tackling
the Tax Code. The Committee met to discuss the
recommendations of the President's Advisory Panel on
Federal Tax Reform. The Committee heard testimony from the
following members of the President's Advisory Panel on
Federal Tax Reform: The Honorable Connie Mack, III,
Chairman, President's Advisory Panel on Federal Tax Reform,
Senior Policy Advisor, King & Spalding LLP; The Honorable
John Breaux, Vice-Chairman, President's Advisory Panel on
Federal Tax Reform, Senior Counsel, Patton Boggs LLP; Ms.
Elizabeth Garrett, Member, President's Advisory Panel on
Federal Tax Reform, Sydney M. Irmas Professor of Public
Interest, Law, Legal Ethics, Political Science, and Policy,
Planning, and Development, Gould School of Law, University
of Southern California; and Dr. James Poterba, Member,
President's Advisory Panel on Federal Tax Reform, Mitsui
Professor of Economics, Department of Economics,
Massachusetts Institute of Technology. Additional witnesses
included The Honorable David Walker, Comptroller General,
U.S. Government Accountability Office; and Dr. Jane
Gravelle, Senior Specialist in Economic Policy,
Congressional Research Service.
September 6, 2006--Hearing on Executive Compensation:
Backdating to the Future/Oversight of current issues
regarding executive compensation including backdating of
stock options; and tax treatment of executive compensation,
retirement and benefits. This hearing addressed the company
practice of ``back-dating'' stock options in addition to a
more general discussion of executive compensation issues.
The Committee heard testimony from The Honorable Paul J.
McNulty, Deputy Attorney General, United States Department
of Justice; The Honorable Mark Everson, Commissioner,
Internal Revenue Service; Ms. Linda Thomsen, Director,
Division of Enforcement, United States Securities and
Exchange Commission; Ms. Nell Minow, Editor, The Corporate
Library; Professor Lucian A. Bebchuk, William J. Friedman
and Alicia Townsend Friedman Professor of Law, Economic,
and Finance, Director, Program on Corporate Governance,
Harvard Law School; Professor Charles M. Elson, Edgar S.
Woolard, Jr., Chair, John L. Weinberg Center for Corporate
Governance, Lerner College of Business and Economics,
University of Delaware; and Professor Steven Balsam,
Professor of Accounting, The Fox School of Business and
Management, Temple University. A statement for the record
was also submitted by Mr. Christopher Cox, Chairman, U.S.
Security and Exchange Commission.
September 13, 2006--Hearing on Taking the Pulse of Charitable
Care and Community Benefits at Nonprofit Hospitals. This
hearing considered several issues of non-profit hospitals,
including measurements and reporting of community benefit
and discounted charges or free care for low-income,
uninsured individuals. Witnesses included The Honorable
Phill Kline, Attorney General, State of Kansas; Sister
Carol Keehan, D.C., President and CEO, The Catholic Health
Association of the United States; Mr. Kevin E. Lofton,
Chair-Elect, American Hospital Association; Mr. Scott A.
Duke, CEO, Glendive Medical Center; Dr. Nancy Kane,
Professor of Health Management, Department of Health Policy
and Management, Harvard School of Public Health; and Mr.
Ray Hartz, Executive Director, Legal Aid Society of Eastern
Virginia, Inc.
September 20, 2006--Hearing on Our Business Tax System:
Objectives, Deficiencies, and Options for Reform. This
hearing examined the objectives, challenges, and
deficiencies of the U.S. business tax system as well as
reform options to address some of those deficiencies. The
Committee heard testimony from The Honorable David Walker,
Comptroller General, U.S. Government Accountability Office;
Dr. Robert Carroll, Deputy Assistant Secretary for Tax
Analysis, U.S. Department of the Treasury; The Honorable
Charles Rossotti, Senior Advisor, The Carlyle Group; Dr.
Thomas Neubig, National Director, Quantitative Economics
and Statistics, Ernst & Young LLP; Mr. David Bernard,
International President, Tax Executives Institute, Inc.,
Vice President, Tax and Real Estate, Kimberly-Clark
Corporation; and Mr. Jeff Johannesen, Managing Director,
RSM McGladrey, Inc.
September 26, 2006--Hearing on Health Savings Accounts: The
Experience So Far. In this hearing, the Subcommittee on
Health Care heard testimony regarding how health savings
accounts work in practice and discussed how Congress can
improve health savings accounts for current and future
participants. Witnesses included Dr. Robert Carroll, Deputy
Assistant Secretary for Tax Analysis, U.S. Department of
the Treasury; Mr. John Dicken, Director, Health Care
Issues, U.S. Government Accountability Office; Mr. Joseph
V. Knight, Chief Financial Officer, Setpoint Systems; Dr.
Sara R. Collins, Assistant Vice President, Program for the
Future of Health Insurance, The Commonwealth Fund; Dr. John
C. Goodman, President and Chief Executive Officer, National
Center for Policy Analysis, and Mr. Eric C. Beittel, Enders
Insurance Associates.
September 28, 2006--Hearing on America's Public Debt: How Do We
Keep It From Rising? This hearing of the Subcommittee on
Long-Term Growth and Debt-Reduction focused on ways to
solve the U.S. budget deficit problem in light of our
government's long-term fiscal challenges. Testifying before
the Subcommittee were Mr. Robert L. Bixby, Executive
Director, The Concord Coalition; Dr. Peter R. Orszag,
Joseph A. Pechman Senior Fellow, Deputy Director, Economic
Studies, The Brookings Institution; Mr. Chris Edwards,
Director of Tax Policy Studies, Cato Institute; and The
Honorable Charles W. Stenholm, Former Member of Congress.
December 5, 2006--Hearing on Report Card on Tax Exemptions and
Incentives for Higher Education: Pass, Fail, or Need
Improvement? This oversight hearing addressed the topic of
tax benefits for higher education. More specifically, the
hearing looked at incentives provided to families and
students to help pay for higher education and the
significant tax breaks provided to colleges and
universities as tax-exempt organizations. Witnesses
included Mr. Daniel Golden, Deputy Bureau Chief, Boston
Bureau, The Wall Street Journal; Dr. Bridget Terry Long,
Associate Professor of Education and Economics, Harvard
University; Dr. James Johnson Duderstadt, President
Emeritus, University Professor of Science and Engineering,
University of Michigan; Ms. Patricia McGuire, President,
Trinity (Washington) University; Dr. Susan M. Dynarski,
Associate Professor of Public Policy, Kennedy School of
Government, Harvard University; and Mr. Michael Brostek,
Director, Tax Issues, Strategic Issues Team, U.S.
Government Accountability Office.
Full Committee Executive Meetings
2005
April 19, 2005--Executive Session to consider an original bill
entitled, ``Highway Reauthorization and Excise Tax
Simplification Act of 2005'' and, the Chairman's mark to S.
661, the ``United States Tax Court Modernization Act.''
June 16, 2005--Executive Session to consider an original bill
entitled, ``Energy Policy Tax Incentives Act of 2005.''
July 26, 2005--Executive Session to consider an original bill
entitled, the ``National Employee Savings and Trust Equity
Guarantee Act of 2005.''
November 15, 2005--Executive Session to consider an original
bill that will include the Committee's budget
reconciliation instructions pertaining to expiring tax
provisions and also additional incentives for hurricane
affected areas.
2006
June 28, 2006--Executive Session to consider S. 1321, the
``Telephone Excise Tax Repeal Act of 2005,'' and an
amendment that incorporates S. 832, the ``Taxpayer
Protection and Assistance Act of 2005,'' and S. 3569, the
``U.S.-Oman Free Trade Agreement Implementation Act.''
TRADE
SUMMARY OF ACTIVITIES
During the 109th Congress, the Committee exercised its
oversight responsibilities and acted upon many important issues
related to customs and international trade law and the American
economy.
In the first session, the Committee convened hearings on
economic relations between the United States and China, and on
the Dominican Republic-Central America-United States Free Trade
Agreement. In addition, the Subcommittee on International Trade
held hearings on the United States-Bahrain Free Trade Agreement
and the status of ongoing negotiations in the World Trade
Organization. The Committee also convened an informal meeting
to consider proposed legislation implementing the Dominican
Republic-Central America-United States Free Trade Agreement,
and another informal meeting to consider proposed legislation
implementing the United States-Bahrain Free Trade Agreement.
Separately, members of the Committee participated in two
meetings of the bipartisan, bicameral Congressional Oversight
Group (COG). During these two COG meetings, members met with
respective United States Trade Representatives, i.e.,
Ambassador Robert B. Zoellick and Ambassador Robert J. Portman,
to discuss priorities and strategies for both potential and
ongoing bilateral and multilateral trade negotiations.
Separately, the Committee convened in open executive
session to consider: S. 1307, the Dominican Republic-Central
America-United States Free Trade Agreement Implementation Act;
S.J. Res. 18, a joint resolution approving the renewal of
import restrictions contained in the Burmese Freedom and
Democracy Act of 2003; and S. 2027, the United States-Bahrain
Free Trade Agreement Implementation Act. The Committee also
held confirmation hearings for Robert J. Portman to be United
States Trade Representative, Executive Office of the President;
Shara L. Aranoff to be a Member of the United States
International Trade Commission; Susan C. Schwab to be Deputy
United States Trade Representative, Executive Office of the
President; Karan K. Bhatia to be Deputy United States Trade
Representative, Executive Office of the President; Franklin L.
Lavin to be Under Secretary of Commerce for International
Trade, United States Department of Commerce; Richard T. Crowder
to be Chief Agricultural Negotiator, Office of the United
States Trade Representative, Executive Office of the President;
David M. Spooner to be Assistant Secretary of Commerce for
Import Administration, United States Department of Commerce;
and David Steele Bohigian to be Assistant Secretary of
Commerce, Market Access and Compliance, United States
Department of Commerce.
During 2005, the Chairman worked to include a repeal of the
Continued Dumping and Subsidy Offset Act (CDSOA) in the Deficit
Reduction Act of 2005 (Pub. L. 109-171), in order to bring the
United States into compliance with its obligations as a member
of the World Trade Organization. The Chairman also worked to
extend nondiscriminatory treatment (normal trade relations
treatment) to the products of Ukraine. On November 18, 2005, S.
632, a bill to authorize the extension of nondiscriminatory
treatment (normal trade relations treatment) to the products of
Ukraine, was discharged from the Committee by unanimous consent
and passed by the Senate, without amendment, by unanimous
consent. Corresponding legislation was not, however, passed by
the House of Representatives in 2005. Instead, the House passed
H.R. 1053, a bill to authorize the extension of
nondiscriminatory treatment (normal trade relations treatment)
to the products of Ukraine, on March 8, 2006. That bill was not
referred to the Committee, but was instead passed by the
Senate, without amendment, by unanimous consent on March 9,
2006. The President signed H.R. 1053 into law on March 23, 2006
(Pub. L. 109-205).
In the second session, the Committee convened hearings on:
the Administration's trade agenda for 2006; U.S.-China economic
relations (revisited); authorizations of customs and trade
functions; the United States-Peru Trade Promotion Agreement;
and S. 3495, a bill to authorize the extension of
nondiscriminatory treatment (normal trade relations treatment)
to the products of Vietnam. In addition, the Subcommittee on
International Trade held hearings on: the United States-Oman
Free Trade Agreement; Cuno and competitiveness--where to draw
the line; How much should border taxes matter?--tax
jurisdiction in the new economy; and the North American Free
Trade Agreement at year twelve. The Committee also convened an
informal meeting to consider proposed legislation implementing
the United States-Oman Free Trade Agreement, and another
informal meeting to consider proposed legislation implementing
the United States-Peru Trade Promotion Agreement. Members of
the Committee also participated in one COG meeting, during
which members met with United States Trade Representative Susan
C. Schwab to discuss priorities and strategies for bilateral
and multilateral trade negotiations. The Committee convened one
additional Members' Meeting with Ambassador Schwab to discuss
the status of the ongoing Doha Development Round negotiations
of the World Trade Organization; the United States-Peru Trade
Promotion Agreement; the United States-Colombia Trade Promotion
Agreement; and any other trade matters of interest to members,
including the process by which the Administration consults with
the Committee during the negotiation and implementation of
trade agreements pursuant to the Trade Promotion Authority
contained in the Trade Act of 2002 (Pub. L. 107-210).
Separately, the Committee convened in open executive
session to consider S. 3569, the United States-Oman Free Trade
Agreement Implementation Act, and S. 3495, a bill to authorize
the extension of nondiscriminatory treatment (normal trade
relations treatment) to the products of Vietnam. The Committee
also held confirmation hearings for W. Ralph Basham to be
Commissioner of Customs, United States Department of Homeland
Security; Susan C. Schwab to be United States Trade
Representative, Executive Office of the President; John K.
Veroneau to be Deputy United States Trade Representative,
Executive Office of the President; Dean A. Pinkert, to be a
Member of the United States International Trade Commission; and
Irving A. Williamson, to be a Member of the United States
International Trade Commission.
During 2006, the Chairman and Ranking Member of the
Committee worked together to develop and introduce a number of
important customs and trade bills, including S. 2467, the
United States Trade Enhancement Act of 2006 (which included a
provision to suspend the new shipper bonding privilege and a
separate title to overhaul U.S. laws pertaining to oversight of
currency exchange rates); and S. 3658, the Customs and Trade
Facilitation Reauthorization Act of 2006 (which authorized the
Bureau of Customs and Border Protection (CBP) in the United
States Department of Homeland Security and included an overhaul
of U.S. customs laws to reflect the establishment of CBP). The
Chairman and Ranking Member also worked together to include a
number of miscellaneous tariff bills in H.R. 4, the Pension
Protection Act of 2006 (Pub. L. 109-280), and H.R. 6111, the
Tax Relief and Health Care Act of 2006 (Pub. L. 109-432). Also
included in H.R. 4 was the provision suspending the new shipper
bonding privilege that had been included in S. 2467, while H.R.
6111 included, inter alia, a provision to extend
nondiscriminatory treatment (normal trade relations treatment)
to the products of Vietnam; the Haitian Hemispheric Opportunity
through Partnership Encouragement Act of 2006; the Africa
Investment Incentive Act of 2006; the Andean Trade Preferences
Extension Act; and a two-year extension of the generalized
system of preferences (GSP) program. Finally, the Chairman and
Ranking Member engaged in extensive negotiations and
consultations with the chairs and ranking members of the
Committee on Commerce, Science, and Transportation, and the
Committee on Homeland Security and Governmental Affairs, over
the development of H.R. 4954, the Security and Accountability
For Every (SAFE) Port Act of 2006 (Pub. L. 109-347), in order
to ensure that the national economic security interests of the
United States were appropriately advanced in the legislation in
addition to U.S. port security interests.
The Chairman also worked to include in H.R. 4297, the Tax
Increase Prevention and Reconciliation Act of 2005 (Pub. L.
109-222), a repeal of binding contract relief for foreign sales
corporation (FSC)/extraterritorial income (ETI) contracts that
had been grandfathered under the American Jobs Creation Act of
2004 (Pub. L. 108-357), in order to bring the United States
into compliance with its obligations as a member of the World
Trade Organization. In addition, the Chairman facilitated the
renewal of trade sanctions against Burma. S.J. Res. 38, a joint
resolution approving the renewal of import restrictions
contained in the Burmese Freedom and Democracy Act of 2003, was
introduced on May 26, 2006, and referred to the Committee. A
companion resolution, H.J. Res. 86, had been introduced in the
House of Representatives on May 19, 2006. H.J. Res. 86 was
passed by the House of Representatives on July 11, 2006. That
resolution was not referred to the Committee, but was instead
passed by the Senate, without amendment, by voice vote on July
26, 2006. The President signed H.J. Res. 86 on August 1, 2006
(Pub. L. 109-251).
Separately, the Chairman led one congressional delegation
to Brazil and Argentina as part of the Committee's oversight of
ongoing negotiations in the World Trade Organization. In
Brazil, the delegation met with, inter alia, the Minister of
Foreign Affairs, Celso Amorim; the Minister of Agriculture,
Roberto Rodrigues; the Minister of Development, Industry and
Trade, Luiz Fernando Furlan; and several members of the
National Congress of Brazil. In Argentina, the delegation met
with, inter alia, the Minister of Foreign Affairs,
International Trade and Worship, Jorge Taiana; the Secretary of
Agriculture, Livestock, Fisheries, and Food, Miguel Santiago
Campos; the Governor of the Central Bank of Argentina, Martin
Redrado; and several members of the National Congress of
Argentina.
Full Committee Hearings and Meetings
2005
February 2, 2005--Meeting: Congressional Oversight Group with
Ambassador Robert B. Zoellick, United States Trade
Representative.
April 13, 2005--Hearing: ``The U.S.-Central America-Dominican
Republic Free Trade Agreement.'' Received testimony from
Ambassador Peter F. Allgeier, Deputy United States Trade
Representative, and two panels of representatives from the
private sector including Patricia A. Forkan, President,
Humane Society International, and Mark Levinson, Chief
Economist and Director of Policy, UNITE HERE, regarding the
free trade agreement concluded with Costa Rica, El
Salvador, Nicaragua, Honduras, Guatemala, and the Dominican
Republic.
April 21, 2005--Hearing: ``Nomination of Robert J. Portman, to
be United States Trade Representative.'' Received testimony
from the Hon. Robert J. Portman. The nominee was ordered
favorably reported by the Committee on April 26, 2005.
May 24, 2005--Hearing: ``Nomination of Shara L. Aranoff, to be
a Member of the International Trade Commission.'' Received
testimony from Shara L. Aranoff (among other non-trade
related nominees). The nominee was ordered favorably
reported by the Committee on July 29, 2005.
June 23, 2005--Hearing: ``U.S.-China Economic Relations.''
Received testimony from Senator Collins; Senator Bayh;
Senator Graham; Senator Stabenow; the Honorable Alan
Greenspan, Chairman, Board of Governors, The Federal
Reserve Board; the Honorable John W. Snow, Secretary,
United States Department of the Treasury; and a panel of
representatives from the private sector including Dr.
Kenneth Rogoff, Thomas D. Cabot Professor of Public Policy,
Department of Economics, Harvard University. The hearing
examined a number of tensions in economic relations between
the United States and China.
September 8, 2005--Meeting: Congressional Oversight Group with
Ambassador Robert J. Portman, United States Trade
Representative.
October 18, 2005--Hearing: ``Nomination of Susan C. Schwab, to
be Deputy United States Trade Representative, Executive
Office of the President; Karan K. Bhatia, to be Deputy
United States Trade Representative, Executive Office of the
President; and Franklin L. Lavin, to be Under Secretary of
Commerce for International Trade, United States Department
of Commerce.'' Received testimony from the three nominees
(among other non-trade related nominees). The three
nominees were ordered favorably reported by the Committee
on October 25, 2005.
December 14, 2005--Hearing: ``Nomination of Richard T. Crowder,
to be Chief Agricultural Negotiator, Office of the United
States Trade Representative, Executive Office of the
President; David M. Spooner, to be Assistant Secretary of
Commerce for Import Administration, United States
Department of Commerce; and David Steele Bohigian, to be
Assistant Secretary of Commerce, Market Access and
Compliance, United States Department of Commerce.''
Received testimony from the three nominees (among other
non-trade related nominees). The three nominees were
ordered favorably reported by the Committee on December 16,
2005.
2006
February 16, 2006--Hearing: ``The Administration's Trade Agenda
for 2006.'' Received testimony from Ambassador Robert J.
Portman, United States Trade Representative, regarding,
inter alia, the implementation of existing trade
agreements; the status of ongoing bilateral and
multilateral trade negotiations; the Administration's
various trade enforcement efforts; and the Administration's
top-to-bottom review of U.S. trade relations with China.
March 29, 2006--Hearing: ``U.S.-China Economic Relations
Revisited.'' Received testimony from Ambassador Karan K.
Bhatia, Deputy United States Trade Representative,
Executive Office of the President; the Honorable Timothy D.
Adams, Under Secretary of the Treasury for International
Affairs, United States Department of the Treasury; the
Honorable Franklin L. Lavin, Under Secretary of Commerce
for International Trade, United States Department of
Commerce; and a panel of representatives from the private
sector including Dr. C. Fred Bergsten, Director, Institute
of International Economics. The hearing examined
developments in trade and economic relations between the
United States and China since the Committee conducted its
first oversight hearing in June 2005, as well as the
Administration's strategies and priorities for improving
such relations.
April 5, 2006--Hearing: ``Nomination of W. Ralph Basham, to be
Commissioner of Customs, United States Department of
Homeland Security.'' Received testimony from W. Ralph
Basham. The nominee was ordered favorably reported by the
Committee on May 18, 2006.
April 26, 2006--Hearing: ``Authorizations of Customs and Trade
Functions.'' Received testimony from the Honorable Stephen
Koplan, Chairman, United States International Trade
Commission; the Honorable Julie Myers, Assistant Secretary,
U.S. Immigration and Customs Enforcement, United States
Department of Homeland Security; the Honorable Jay Ahern,
Acting Commissioner of Customs, U.S. Customs and Border
Protection, United States Department of Homeland Security;
the Honorable Timothy Skud, Deputy Assistant Secretary of
Tax, Trade, and Tariff Policy, United States Department of
the Treasury; and a panel of representatives from the
private sector. The hearing reviewed the operation of
customs and trade functions in the Federal Government in
order to assist the Committee in preparing legislation to
reauthorize those functions. On July 13, 2006, the Chairman
introduced S. 3658, the Customs and Trade Facilitation
Reauthorization Act of 2006, on behalf of himself and the
Ranking Member. Senators Bingaman, Wyden, Conrad, and
Lincoln were subsequently added as cosponsors of the bill.
May 16, 2006--Hearing: ``Nomination of Susan C. Schwab, to be
United States Trade Representative, Executive Office of the
President.'' Received testimony from Ambassador Susan C.
Schwab. The nominee was ordered favorably reported by the
Committee on May 22, 2006.
June 29, 2006--Hearing: ``The U.S.-Peru Trade Promotion
Agreement.'' Received testimony from the Honorable Everett
Eissenstat, Assistant United States Trade Representative
for the Americas, Executive Office of the President, and a
panel of representatives from the private sector including
Richard L. Trumka, Secretary-Treasurer, American Federation
of Labor and Congress of Industrial Organizations (AFL-
CIO), regarding the trade promotion agreement concluded
with Peru.
July 12, 2006--Hearing: ``S. 3495--A bill to authorize the
extension of nondiscriminatory treatment (normal trade
relations treatment) to the products of Vietnam.'' Received
testimony from Ambassador Karan K. Bhatia, Deputy United
States Trade Representative, Executive Office of the
President; the Honorable Eric John, Deputy Assistant
Secretary, Bureau of East Asian and Pacific Affairs, United
States Department of State; and two panels of
representatives from the private sector including Chris
Seiple, President, Institute for Global Engagement, and T.
Kumar, Advocacy Director for Asia, Amnesty International,
regarding the extension of permanent normal trade relations
to Vietnam.
July 19, 2006--Members' Meeting with Ambassador Susan C.
Schwab, United States Trade Representative, to discuss the
status of the ongoing Doha Development Round negotiations
of the World Trade Organization; the United States-Peru
Trade Promotion Agreement; the United States-Colombia Trade
Promotion Agreement; and any other trade matters of
interest to members, including the process by which the
Administration consults with the Committee during the
negotiation and implementation of trade agreements pursuant
to the Trade Promotion Authority contained in the Trade Act
of 2002 (Pub. L. 107-210).
September 21, 2006--Hearing: ``Nomination of John K. Veroneau,
to be Deputy United States Trade Representative, Executive
Office of the President.'' Received testimony from John K.
Veroneau (in addition to one other non-trade related
nominee). The nominee was ordered favorably reported by the
Committee on September 27, 2006.
September 27, 2006--Meeting: Congressional Oversight Group with
Ambassador Susan C. Schwab, United States Trade
Representative.
December 5, 2006--Hearing: ``Nomination of Dean A. Pinkert, to
be a Member of the International Trade Commission; Irving
A. Williamson, to be a Member of the International Trade
Commission.'' Received testimony from the two nominees
(among other non-trade related nominees). The two nominees
were ordered favorably reported by the Committee on
December 6, 2006.
Subcommittee on International Trade
Hearings and Meetings
2005
October 6, 2005--Hearing: ``U.S.-Bahrain Free Trade
Agreement.'' Received testimony from the Honorable Shaun
Donnelly, Assistant United States Trade Representative for
Europe and the Mediterranean, Executive Office of the
President, and a panel of representatives from the private
sector including Robert C. Baugh, Executive Director,
American Federation of Labor and Congress of Industrial
Organizations (AFL-CIO), and David Hamod, President and
CEO, National U.S.-Arab Chamber of Commerce, regarding the
free trade agreement concluded with Bahrain.
October 27, 2005--Hearing: ``The Status of World Trade
Organization Negotiations.'' Received testimony from
Ambassador Peter Allgeier, Deputy United States Trade
Representative, Executive Office of the President, and a
panel of representatives from the private sector including
Craig Lang, President, Iowa Farm Bureau Federation,
regarding the status of the ongoing Doha Development Round
negotiations of the World Trade Organization.
2006
March 6, 2006--Hearing: ``The U.S.-Oman Free Trade Agreement.''
Received testimony from Ambassador Susan C. Schwab, Deputy
United States Trade Representative, Executive Office of the
President, and a panel of representatives from the private
sector including Thea M. Lee, Policy Director for
Legislation, American Federation of Labor and Congress of
Industrial Organizations (AFL-CIO), and David Hamod,
President and CEO, National U.S.-Arab Chamber of Commerce,
regarding the free trade agreement concluded with Oman.
March 16, 2006--Hearing: ``Cuno and Competitiveness: Where to
Draw the Line.'' Received testimony from Senator Voinovich
and a panel of representatives from both academia and the
private sector, as well as from Harley T. Duncan, Executive
Director, Federation of Tax Administrators, regarding the
decision of the United States Court of Appeals for the
Sixth Circuit in the case of Cuno v. DaimlerChrysler and S.
1066, the Economic Development Act of 2005.
July 25, 2006--Hearing: ``How Much Should Borders Matter?: Tax
Jurisdiction in the New Economy.'' Received testimony from
Senator Dorgan; Senator Enzi; the Honorable Christopher
Rants, Speaker, Iowa House of Representatives; and two
panels of representatives from both the private sector and
state taxation authorities, regarding the taxation of
remote sales over the Internet and S. 2152, the Sales Tax
Fairness and Simplification Act.
September 11, 2006--Hearing: ``NAFTA at Year Twelve.'' Received
testimony from the Honorable John Melle, Deputy Assistant
United States Trade Representative for North America,
Executive Office of the President; the Honorable Cathy
Sauceda, Director, Special Enforcement, U.S. Customs and
Border Protection, United States Department of Homeland
Security; and a panel of representatives from the private
sector and non-governmental organizations including Dr.
Sidney Weintraub, William E. Simon Chair in Political
Economy, Center for Strategic & International Studies, and
Sandra Polaski, Senior Associate and Director, Trade,
Equity, and Development Project, Carnegie Endowment for
International Peace, regarding U.S. trade and investment
relationships with Canada and Mexico.
Full Committee Executive Meetings
2005
June 28, 2005--Executive Session: ``S. 1307, the Dominican
Republic-Central America-United States Free Trade Agreement
Implementation Act, and S.J. Res. 18, a joint resolution
approving the renewal of import restrictions contained in
the Burmese Freedom and Democracy Act of 2003.'' In order
to allow Committee members ample opportunity to voice their
views on S. 1307, the Chairman held the meeting open until
the following day.
June 29, 2005--Executive Session: ``S. 1307, the Dominican
Republic-Central America-United States Free Trade Agreement
Implementation Act, and S.J. Res. 18, a joint resolution
approving the renewal of import restrictions contained in
the Burmese Freedom and Democracy Act of 2003.'' The
Committee ordered S. 1307 favorably reported without
amendment, by voice vote, a quorum being present. The
Committee unanimously ordered S.J. Res. 18 favorably
reported without amendment, by voice vote, a quorum being
present. See Report No. 109-128 for S. 1307, and Report No.
109-101 for S.J. Res. 18.
November 18, 2005--Executive Session: ``S. 2027, the United
States-Bahrain Free Trade Agreement Implementation Act.''
The Committee ordered S. 2027 favorably reported without
amendment, by recorded vote, 20 ayes, 0 nays, a quorum
being present. See Report No. 109-199.
2006
June 28, 2006--Executive Session: ``S. 3569, the U.S.-Oman Free
Trade Agreement Implementation Act.'' The Committee ordered
S. 3569 favorably reported without amendment, by recorded
vote of those present and voting, 10 ayes, 3 nays, a quorum
being present. See Report No. 109-364.
July 27, 2006--Executive Session: ``S. 3495, a bill to
authorize the extension of nondiscriminatory treatment
(normal trade relations treatment) to the products of
Vietnam.'' In the absence of a quorum, the Chairman
recessed the meeting subject to the call of the Chair.
July 31, 2006--Executive Session: ``S. 3495, a bill to
authorize the extension of nondiscriminatory treatment
(normal trade relations treatment) to the products of
Vietnam.'' The Committee ordered S. 3495 favorably reported
without amendment, by recorded vote, 18 ayes, 0 nays, 2
present, a quorum being present. See Report No. 109-321.
Informal Meetings
2005
June 14, 2005--Informal Meeting: ``Proposed legislation
implementing the U.S.-Central America-Dominican Republic
Free Trade Agreement.'' The Committee considered draft
implementing legislation and a draft Statement of
Administrative Action for implementation of the Dominican
Republic-Central America-United States Free Trade
Agreement, which were submitted pursuant to the cooperative
procedures provided in the Trade Act of 2002 for the
approval of trade agreements. During the meeting, one
amendment was approved by voice vote, a quorum being
present. The Committee subsequently voted to approve the
informal recommendations, as amended, by recorded vote, 11
ayes, 8 nays (with one additional nay vote by proxy), a
quorum being present.
November 9, 2005--Informal Meeting: ``Proposed legislation
implementing the U.S.-Bahrain Free Trade Agreement.'' The
Committee considered draft implementing legislation and a
draft Statement of Administrative Action for implementation
of the United States-Bahrain Free Trade Agreement, which
were submitted pursuant to the cooperative procedures
provided in the Trade Act of 2002 for the approval of trade
agreements. The Chairman introduced one modification to the
draft Statement of Administrative Action. The Committee
subsequently voted to approve the informal recommendations,
as modified, by recorded vote, 20 ayes, 0 nays, a quorum
being present.
2006
May 18, 2006--Informal Meeting: ``Proposed legislation
implementing the U.S.-Oman Free Trade Agreement.'' The
Committee considered draft implementing legislation and a
draft Statement of Administrative Action for implementation
of the United States-Oman Free Trade Agreement, which were
submitted pursuant to the cooperative procedures provided
in the Trade Act of 2002 for the approval of trade
agreements. The Chairman introduced one modification to the
draft Statement of Administrative Action. During the
meeting, one amendment was approved by recorded vote, 18
ayes, 0 nays, a quorum being present. The Committee
subsequently voted to approve the informal recommendations,
as modified and amended, by recorded vote, 19 ayes, 0 nays,
a quorum being present.
July 27, 2006--Informal Meeting: ``Proposed legislation
implementing the U.S.-Peru Trade Promotion Agreement.'' The
Committee considered draft implementing legislation and a
draft Statement of Administrative Action for implementation
of the United States-Peru Trade Promotion Agreement, which
were submitted pursuant to the cooperative procedures
provided in the Trade Act of 2002 for the approval of trade
agreements. Without objection, the Committee adopted a
modified version of an amendment to the draft Statement of
Administrative Action offered by Senators Conrad, Thomas,
Wyden, Baucus, Grassley, and Bunning. In the absence of a
quorum, the Chairman recessed the meeting subject to the
call of the Chair.
July 31, 2006--Informal Meeting: ``Proposed legislation
implementing the U.S.-Peru Trade Promotion Agreement.'' The
Committee voted to approve the informal recommendations, as
amended, by recorded vote, 12 ayes, 7 nays, 1 present, a
quorum being present.
HEALTH
SUMMARY OF ACTIVITIES
The Committee on Finance under the leadership of Chairman
Charles Grassley completed work on important legislation
affecting Medicare, Medicaid, TANF and other health policy
issues in its jurisdiction during the 109th Congress. During
the first session, the Committee focused primarily on achieving
savings required of it under the terms of the Budget Resolution
but also held hearings on how to improve quality in Medicare.
On October 25, 2006, the Committee considered and reported
the Finance Committee provisions for S. 1932, ``The Deficit
Reduction Omnibus Reconciliation Act of 2005.''
As part of the budget reconciliation process, the Senate
Finance Committee's legislation achieved $10 billion in net
savings from Medicare and Medicaid by reducing wasteful
spending and making other programmatic changes.
Ultimately, the conference agreement on S. 1932, re-titled
as the Deficit Reduction Act, made some of the most significant
changes to the Medicaid program in the past 30 years including
sweeping changes to allow states to provide different benefit
packages and increased cost-sharing to certain populations. The
bill made significant changes in senior's ability to access
Medicaid's long-term care benefit by limiting senior's ability
to transfer financial assets before becoming eligible for
Medicaid and making other changes affecting senior's ability to
hold certain assets while being eligible for Medicaid.
Another key provision in the bill addressed Medicaid fraud
and abuse by encouraging states to implement state false claims
acts. The Federal False Claims Act has been the single most
important available tool to recover the billions of dollars
stolen through fraud or misspent every year, and committee
members believed that adoption of a comparable act at the State
level would lead to substantial savings for State Medicaid
programs. In addition, the DRA reduced projected shortfalls in
FY 06 Federal funds for the State Children's Health Insurance
Program (SCHIP). The final bill also provided $2 billion in
funding for relief to the states for health care costs
resulting from Hurricane Katrina.
The final conference report for the DRA was considered and
passed by the Senate on December 21, 2006 and was signed into
law by the President on February 8, 2006.
During the second session of the 109th Congress, the
Committee held hearings on implementation of the new
prescription drug benefit, on healthcare coverage for small
business, on physician-owned hospitals, and on the growing
problems caused by the Methamphetamine epidemic for the child
welfare system.
On June 8, 2006 the Committee considered the Medicare,
Medicaid, and SCHIP Indian Health Care Improvement Act of 2006,
and the Improving Outcomes for Children Affected by Meth Act of
2006. Both were reported favorably by the Committee.
The final executive session of the 109th Congress
considered S. 2010, the Elder Justice Act. The legislation
highlighted several ways to combat the growing incidence of
elder abuse each year in this country. The legislation enjoyed
bipartisan support and was unanimously recommended to the full
Senate.
Following the Congressional elections of 2006, the
Committee acted to ensure the continuation of critical health
care programs by developing legislation to update certain
payment policies, establish a voluntary quality reporting
system for physicians, extend expiring provisions in the
Medicare and Medicaid programs, and clarify legislative intent
for certain Medicaid provisions enacted in the Deficit
Reduction Act of 2005.
Chairman Grassley and Ranking Member Baucus developed
legislation in the Senate and, subsequently, in conjunction
with the House Ways and Means and Energy and Commerce
Committees, H.R. 6111, the Tax Relief and Health Care Act, was
developed.
The bill eliminated a 5-percent reduction in Medicare
physician reimbursement scheduled to take effect in January of
2007 and maintained reimbursement at the same level as in 2006.
It also provided incentives for health care providers to
deliver better quality care by establishing a voluntary quality
reporting program for physicians and other eligible
professionals who report quality measures beginning July 1,
2007 and through December 31, 2007, and the legislation
established a 1.5 percent bonus incentive payment for those who
successfully participate in the program. The legislation also
established a $1.35 billion fund to assist with physician
payments in 2008. In addition, the legislation extended several
expiring provisions enacted by the Medicare Prescription Drug,
Improvement, and Modernization Act to help ensure
beneficiaries' continued access to needed medical services.
These included a provision extending the 1.0 floor in the
Work Geographic Index for any locality in which the Index is
less than 1.0, a provision continuing direct payments to
independent laboratories for physician pathology services, a
provision continuing Medicare reasonable cost payments for lab
tests in small rural hospitals and extending payment for
brachytherapy devices based on hospital costs. The legislation
also authorized reimbursement for the administration by
physicians of vaccines covered under the Medicare Part D
program. Another important provision included in the final bill
will result in improved accountability for the Medicare program
with regard to fraud, abuse and payment errors by increasing
funding for the Health Care Fraud and Abuse Control Account.
The legislation codified the maximum rate at which a state can
tax its health care providers under a state's Medicaid plan at
5.5 percent through fiscal year 2011. The final bill also
extended the Transitional Medical Assistance program and
funding for abstinence education for two quarters of fiscal
year 2007. The legislation also provided for a one-year
extension of the therapy caps exceptions policy established in
the Deficit Reduction Act. In addition, the legislation
provided a 1.6 percent update to the composite rate for
dialysis services under Medicare effective April 1, 2007, and
made technical corrections to clarify legislative intent for
certain Medicaid provisions enacted in the Deficit Reduction
Act of 2005. After passage by the House, the bill was passed by
the full Senate on December 9, 2006 and sent to the President
for his signature.
At the end of the session, Senators Grassley and Baucus
worked with other members to develop legislation to redirect
existing unspent fiscal year 2004 and 2005 SCHIP funds to
reduce funding shortfalls experienced by some states. This
provision was included as an amendment to H.R. 6164, the
National Institutes of Health Reform Act. The amended bill was
passed by the full Senate on December 9, 2006, passed by
unanimous consent in the House, and sent to the President for
his signature.
Full Committee Hearings and Meetings
2005
February 16, 2005--Hearing: ``The President's Budget
Proposals.'' The focus of the hearing was to provide an
opportunity for Secretary Leavitt to discuss the
Administration's priorities for the Department of
Health and Human Services in the President's Fiscal
Year 2006 proposed budget.
The Honorable Michael O. Leavitt, Secretary of the Department
of Health and Human Services, was the only witness.
March 8, 2005--Hearing: ``Physician Owned Specialty Hospitals:
In the Interest of Patients or a Conflict of
Interest?''
The purpose of the hearing was to hear from the Medicare
Payment Advisory Commission about the findings of a
study it undertook on physician-owned specialty
hospitals which were released to the public on March 8,
2006, as well as testimony from representatives of both
community and specialty hospitals. Witnesses included
Mr. Glenn Hackbarth, Chairman, Medicare Payment
Advisory Commission (MedPAC), Mr. Tom Gustafson, Deputy
Director, Center for Medicare Management, CMS, Dr. Alan
H. Pierrott, Past President, American Surgical Hospital
Association and Chief Executive Officer, PSC Health,
Inc., Mr. Larry Veitz, Chief Executive Officer, Lookout
Memorial Hospital, and Dr. J. Andy Sullivan, Chief
Medical Officer, Oklahoma University, Medical Center.
June 15, 2005--Hearing: ``The Future of Medicaid: Strategies
for Strengthening American's Vital Safety Net.'' The
hearing considered the bipartisan recommendations of
the National Governors Association and others on steps
that Congress should take to strengthen the Medicaid
program for the future in the context of the fiscal
challenges to this vital safety net program.
Witnesses on the first panel included the Honorable Mark
Warner, Governor, State of Virginia and the Honorable
Mike Huckabee, Governor, State of Arkansas.
Witnesses on the second panel included Alan Weil, J.D.,
Executive Director and President, National Academy for
State Health Policy, Jeanne Lambrew, Ph.D., Senior
Fellow at the Center for American Progress, and Stuart
M. Butler, Ph.D., Vice President, Domestic and Economic
Policy Studies, The Heritage Foundation.
July 27, 2005--Hearing: ``Improving Quality in Medicare: The
Role of Value-Based Purchasing.'' The purpose of this
hearing was to better understand the role of value-
based purchasing (also called pay-for-performance) in
improving the quality of care for Medicare
beneficiaries while also addressing the problem of
increasing health care costs.
The witnesses provided perspectives from the government,
consumers, and providers. Witnesses included Mr. Herb
Kuhn, Director, Center for Medicare Management, Centers
for Medicare and Medicaid Services (CMS), Mr. Mark
Miller, Executive Director, The Medicare Payment
Advisory Commission (MedPAC), Dr. Byron Thames, M.D.,
Board Member, AARP, Dr. Nancy H. Neilsen, M.D., Ph.D.,
Speaker of the House of Delegates, American Medical
Association, Mr. Leo P. Brideau, President & CEO,
Columbia St. Mary's, Milwaukee, WI (representing the
American Hospital Association), and Dr. James J.
Mongan, M.D., President and CEO, Partners HealthCare.
2006
January 25, 2006--Members' Meeting: ``Medicare Prescription
Drug Benefit Implementation.'' The Members' Meeting
provided an opportunity for Finance Committee Members
to discuss issues that arose during initial weeks of
the Medicare prescription drug benefit and the
Administration's responses to those issues.
Administration participants included the Secretary of
Health and Human Services and the Administrator of the
Centers for Medicare & Medicaid Services.
February 8, 2006--Hearing: ``Implementation of the New Medicare
Drug Benefit.'' The goal of this hearing was to provide
an opportunity for the Centers for Medicare and
Medicaid Services (CMS) to inform the committee
concerning Part D implementation issues encountered
during the initial days of the new Medicare drug
benefit and address the steps taken by the Agency to
correct them.
In addition to Administrator McClellan, the hearing included
testimony from representatives of two prescription drug
plans, a chain pharmacy, an independent pharmacy, and
groups involved in educating and enrolling
beneficiaries. The witnesses consisted of the Honorable
Mark McClellan, MD, Ph.D., Administrator, Centers for
Medicare and Medicaid Services, William Fleming,
PharmD., Vice President, Pharmacy Management, Humana
Inc., KY, Susan E. Rawlings, President, Senior
Services, WellPoint, David W. Bernauer, Chairman and
CEO, Walgreen Co., Tobey Schule, R. Ph., Owner of Sykes
Pharmacy, Joy Paeth, Chief Executive Officer, Area
Agency on Aging of Southwestern Illinois, and Pamela
Willoughby, R.N., Faith Community Nurse, St. Johns
Episcopal Church and Bedford Presbyterian Church.
February 9, 2006--Hearing: ``The President's Fiscal Year 2007
Budget Proposal.'' The focus of the hearing was to
provide an opportunity for Secretary Leavitt to discuss
the Administration's priorities for the Department of
Health and Human Services (HHS) in the President's
Fiscal Year 2007 proposed budget.
The Honorable Michael O. Leavitt, Secretary, Department of
Health and Human Services, was the only witness.
April 6, 2006--Hearing: ``Health Care Coverage for Small
Business: Challenges and Opportunities.'' As part of
the Committee's ongoing effort to address the problem
of the uninsured, the hearing considered the challenges
faced by small businesses in providing health care
coverage for their employees.
The witnesses included Mr. Joe Rossman, Vice President,
Associated Builders and Contractors, Dr. Deborah
Chollet, Senior Fellow, Mathematica Policy Research,
Dr. Len Nichols, Director, Health Policy Program, New
America Foundation, and Mr. Todd McCracken, President,
National Small Business Association.
April 25, 2006--Hearing: ``The Social and Economic Effects of
the Methamphetamine Epidemic on America's Child Welfare
System.'' This hearing focused on the strain on
America's child welfare system caused by the
methamphetamine epidemic.
The witnesses on the first panel featured parents and
families in recovery from meth addiction. They
included: Ms. Allison Bruno, Ms. Aaronette Noble, Mr.
Darren Noble, and Mr. Joey Binkley.
Witnesses on the second panel included Mr. Kevin T. Frank,
Regional Administrator for the Department of Public
Health and Human Services, Child and Family Services
Division in South Central Montana, Nancy K. Young,
Ph.D., Director, Children and Family Futures, Inc.
National Center on Substance Abuse and Child Welfare,
and Reverend Fredrick Aigner, Ph.D., President/CEO,
Lutheran Social Services of Illinois.
May 10, 2006--Hearing on Child Welfare: ``Fostering Permanence:
Progress Achieved and Challenges Ahead for America's
Child Welfare System.'' This hearing examined child
welfare issues generally, and specifically focused on
the Promoting Safe and Stable Families Program and the
Mentoring of Children of Prisoners programs. The
statutory authorization for both programs was scheduled
to expire at the end of fiscal year 2006. Witnesses
included: Joan Ohl, Commissioner of the Administration
for Children, Youth, and Families; Jackie Hammers-
Crowell, former foster child and foster care advocate;
Gary Stangler, Executive Director, Jim Casey Youth
Opportunities Initiative; Arlene Templer MSW, ACSW,
CRC, Confederate Salish and Kootenai Tribe, Department
of Human Resources Development, Social Services
Division Manager, Pablo, Montana; and Joe Kroll,
executive director, North American Council on Adoptable
Children.
May 11, 2006--Members' Meeting: ``Pharmaceutical Manufacturer
Patient Assistance Programs.'' The purpose of the
meeting was to discuss pharmaceutical manufacturer
patient assistance programs (PAPs) and their continued
operation alongside the Medicare prescription drug
benefit. Participants included: David Brennan, CEO,
AstraZeneca Pharmaceuticals PLC; Peter R. Dolan,
CEOBristol-Myers Squibb Company; Sidney Taurel,
Chairman & CEO Eli Lilly & Company; David Stout,
President of Pharmaceutical Operations,
GlaxoSmithKline; Seth H.Z. Fischer, Company Group
Chairman, North America Pharmaceuticals, Johnson &
Johnson; Ian Spatz, Vice President, Merck & Co., Inc;
Karen Katen, Vice Chairman, Pfizer, Inc; Fred Hassan,
Ph.D., Chairman & CEO, Schering-Plough Corporation;
Billy Tauzin, President & CEO, PhRMA.
May 17, 2006--Hearing: ``Physician-Owned Specialty Hospitals:
Profits before Patients?'' The purpose of the hearing
was to reexamine the issue of physician ownership of
specialty hospitals utilizing information that was
recently obtained through an investigation into these
facilities by committee staff. The witnesses included
the Reverend Mike Wilson, Pastor, Sellwood Baptist
Church, the Honorable Mark McClellan, Administrator,
Centers for Medicare and Medicaid Services, Ms. Cindy
Morrison, Vice President, Sioux Valley Hospital, Mr.
Dan Mulholland, Horty, Springer & Mattern, P.C., Mr.
John M. House, MD, Managing Partner, Urology Associates
of North Texas, and Chairman of the Board, USMD
Hospital, representing the American Surgical Hospital
Association, and Mr. James Cobey, MD, Orthopedic
Surgeon, Washington, DC.
September 7, 2006--Members' Meeting: ``Issues Related to
Witholding of Medicare Advantage and Medicare
Prescription Drug Plan Premiums from Beneficiaries'
Social Security Checks.'' The Goal of the meeting was
to provide Members with an opportunity to ask the CMS
Administrator and SSA Commissioner questions related to
the withholding of premiums and the erroneous refunds
made to beneficiaries. Participants included Dr. Mark
McClellan, CMS Administrator and Jo Anne Barnhart,
Social Security Commissioner.
September 12, 2006--Hearing: ``Breaking the Methamphetamine
Supply Chain: Law Enforcement Challenges.'' The purpose
of this hearing was to gather information on the latest
strategies to combat the methamphetamine trade and
associated money laundering activities, and to examine
the effectiveness of partnerships that some local
authorities have built with Federal resources and in
partnership with Federal Agencies.
The first panel featured witnesses from local law enforcement
and included Lt. Dan Springer, Commander of the
Missouri River Drug Task Force, Mr. Carl Venne, Crow
Tribal Chairman, Tribal Leaders Council Chairperson,
and Advisory Member of the Montana Meth Project, and
Mr. Sean McCullough, Special Agent in Charge, Iowa
Division of Narcotics Enforcement.
The second panel featured witnesses from Federal law
enforcement and included Mr. Joseph T. Rannazzisi,
Deputy Assistant Administrator, Office of Diversion
Control, Drug Enforcement Administration, Mr. Gregory
Passic, Director, Office of Drug Interdiction, U.S.
Customs and Border Protection and Mr. C. Andre Martin,
Director, Operations Policy & Support, IRS Criminal
Investigation.
Subcommittee on Health Care
2006
July 25, 2006--Hearing: CHIP at 10: A Decade of Covering
Children. The focus of the hearing was to examine the
history of the Children's Health Insurance Program and
highlight the successes of the program throughout the
last decade. Witnesses included the Honorable Edward M.
Kennedy, United States Senator, the Honorable Mark
McClellan, Administrator, Centers for Medicare and
Medicaid Services, Ms. Evelyne Baumrucker, Analyst,
Congressional Research Service, and Mr. Chris Peterson,
Analyst, Congressional Research Service.
November 16, 2006--Hearing: The Chip Program From the States'
Perspective. The purpose of this hearing was to have
State directors of the CHIP program share their
perspectives and examine any possible problems and
challenges that might arise when the Senate works
towards reauthorizing the program in the future. The
witnesses included Mr. Nate Checketts, Director of
Bureau of Access, Utah Department of Health; Ms. Sharon
Carte, Executive Director, West Virginia CHIP, Ms. Ann
C. Kohler, Director, Division of Medical Assistance and
Health Services, Department of Human Services, Mrs.
Tobi Drabczyk, representing her family, Ms. Nina
Owcharenko, The Heritage Foundation, and Ms. Lisa C.
Dubay, Associate, Bloomberg School of Health, Johns
Hopkins University.
Full Committee Executive Meetings
2005
October 25, 2005--Executive Session to consider the Finance
Committee's budget reconciliation instructions to
reduce the growth of outlays as contained in H. Con.
Res. 95.
The Finance Committee considered items under its jurisdiction
on October 25, 2005 and reported its Budget
Reconciliation legislation to the Committee on the
Budget. The Chairman's mark saved approximately $10
billion over a 5-year period by reducing wasteful and
unnecessary spending, closing loopholes, taking steps
to pay providers more accurately, and improving
oversight. Some of the savings were directed to make
improvements to the Medicaid program and provide
immediate help for individuals affected by Hurricane
Katrina.
The legislation increased and preserved coverage under
Medicare and Medicaid and provided improved access to
health care for over 500,000 disabled children. It also
saved states from having to cut or eliminate coverage
for over 697,000 low-income beneficiaries currently
enrolled in the SCHIP program.
President Bush signed the conference agreement on the Deficit
Reduction Act of 2005 into law on February 8, 2006.
June 8, 2006--Executive Session to consider ``Medicare,
Medicaid, and SCHIP Indian Health Care Improvement Act
of 2006'' On June 8, 2006, the Finance Committee
considered and favorably reported the Medicare,
Medicaid and SCHIP Indian Health Care Improvement Act
of 2006.
The Chairman's mark dealt with issues within the ``Indian
Health Care Improvement Act'' (IHCIA) which were under
the Finance Committee's jurisdiction, such as issues
related to Medicare, Medicaid, and SCHIP.
The full IHCIA (S. 1057) had been earlier reported favorably
out of the Senate Indian Affairs Committee on March 16,
2006. The Finance Committee's action on the Medicare,
Medicaid, and SCHIP Indian Health Care Improvement Act
cleared these provisions for consideration by the full
Senate.
June 8, 2006--Executive Session to consider ``Improving
Outcomes for Children Affected by Meth Act of 2006.''
The Committee also considered at this Executive Session
the ``Improving Outcomes for Children Affected by Meth
Act of 2006,'' S. 3525.
The bill amended subpart 2 of part B of the title IV of the
Social Security Act to improve outcomes for children in
families affected by methamphetamine abuse and
addiction by reauthorizing the Promoting Safe and
Stable Families program which provides grants to
States, territories, and tribes for the provision of
four categories of services to children and families:
family support, family preservation, time-limited
reunification, and adoption promotion and support.
The bill was ordered reported to the full Senate by the
Committee. This legislation was approved unanimously by
the full Senate on July 13, 2006. The final
legislation, after amendments between the houses and
with a final title of ``Child and Family Services
Improvement Act of 2006,'' was approved by the Senate
and the House on September 26, 2006 and was signed by
the President on September 28, 2006 (P.L. 109-288).
August 3, 2006--Executive Session to consider ``S. 2010, the
Elder Justice Act.'' The Committee favorably reported
the Elder Justice Act to the Senate on August 3, 2006.
The legislation was designed to address the serious problem
of elder abuse. The number of older individuals who are
abused each year is believed to be between 500,000 and
5 million. Many experts also believe that many cases of
elder abuse are never reported to competent authority.
The legislation included provisions which would improve
the quality, quantity, and accessibility of information
about elder abuse; increase knowledge of how best to
combat elder abuse and support promising projects in
the elder abuse field; develop forensic capacity;
increase prosecutions; and increase training in elder
abuse of law enforcement and other appropriate
personnel.
The bill gained bi-partisan support and was passed
unanimously by the members of the Committee. While the
full Senate did not consider S. 2010, a study to
address the feasibility of the collection of data
relating to elder abuse and exploitation was included
in H.R. 6111.
SOCIAL SECURITY
SUMMARY OF ACTIVITIES
During the 109th Congress, the Committee held a series of
hearings on the long-term outlook for Social Security and
options for making the program solvent on a sustainable basis.
It also held a hearing on the administrative challenges facing
the Social Security Administration.
Full Committee Hearings
February 2, 2005--Hearing: ``Long-Term Outlook for Social
Security.'' This hearing featured the testimony of Douglas
Holtz-Eakin, Director, Congressional Budget Office;
Washington, DC and Stephen Goss, Chief Actuary, Social
Security Administration, Baltimore, MD. The testimony
presented the latest actuarial projections of the Social
Security program's long-term finances.
April 26, 2005--Hearing: ``Proposals To Achieve Sustainable
Solvency, With and Without Personal Accounts.'' This
hearing featured the testimony of Robert Pozen, Chairman,
MFS Investment Management, Boston, MA; Michael Tanner,
Director, Project on Social Security Choice, Cato
Institute, Washington, DC; Peter Ferrara, Senior Fellow,
Institute for Policy Innovation, Director of the Social
Security Project, Free Enterprise Fund, Washington, DC;
Peter R. Orszag, Joseph A. Pechman Senior Fellow, Economic
Studies, The Brookings Institution, Washington, DC; Joan
Entmacher, Vice President for Family Economic Security,
National Women's Law Center, Washington, DC. The
testimonies presented various options to address Social
Security's long-term financial deficits through a
combination of tax and benefit changes. The testimony also
examined whether or not the creation of personal accounts
could help achieve sustainable solvency.
May 25, 2005--Hearing: ``Social Security: Achieving Sustainable
Solvency.'' This hearing featured the testimony of Douglas
Holtz-Eakin, Director, Congressional Budget Office,
Washington, DC; Eugene C. Steuerle, Senior Fellow, Urban
Institute, Washington, DC; Stanford G. Ross, former
Commissioner of the Social Security Administration,
Washington, DC; George K. Yin, Chief of Staff, Joint
Committee on Taxation, Washington, DC; Russell George,
Office of the Treasury Inspector General for Tax
Administration, U.S. Department of the Treasury,
Washington, DC. The testimony presented various options to
address Social Security's long-term deficits through a
combination of tax and benefit changes. The testimony also
examined whether or not closing the tax gap could help
achieve sustainable solvency.
March 14, 2006--Hearing: ``Administrative Challenges Facing the
Social Security Administration.'' This hearing featured the
testimony of Jo Anne B. Barnhart, Commissioner, Social
Security Administration, Baltimore, Maryland; Patrick P.
O'Carroll, Jr., Inspector General, Social Security
Administration, Baltimore, Maryland; Richard E. Warsinskey,
President, National Council of Social Security, Management
Associations, Inc., Cleveland, Ohio; Eileen Sweeney, Co-
Chair, Social Security Task Force, Consortium for Citizens
with Disabilities Senior Fellow, Center on Budget and
Policy Priorities, Washington, DC; Erwin Hathaway, Social
Security Disability Insurance beneficiary, Trego, Montana.
The testimony highlighted the increasing responsibilities
being placed on the Social Security Administration in the
areas of Medicare, immigration, and identity fraud. The
testimony also examined the adverse impact these additional
responsibilities have on the agency's ability to perform
its primary duties. The hearing discussed the role of
Continuing Disability Reviews (CDRs) and how CDRs are not
being performed at the optimal level due to administrative
budget issues. The fact that CDRs save approximately $10
(ten) dollars for each dollar spent on CDRs was also
highlighted at the hearing. Related to budget constraints,
the long waiting times that disability applications must
endure to receive a resolution of their disability
application was also discussed. To better understand how
the long wait times affect constituents, a disability
beneficiary from Montana described his almost four year
ordeal of waiting for final resolution of his application
for disability benefits.
Subcommittee on Long-Term Growth and Debt Reduction
September 28, 2006--Hearing: ``America's Public Debt: How Do We
Keep It From Rising?'' This hearing featured the testimony
of Robert L. Bixby, Executive Director, The Concord
Coalition, Arlington, VA; Peter R. Orszag, Joseph A.
Pechman Senior Fellow, Deputy Director, Economic Studies,
The Brookings Institution, Washington, DC; Chris Edwards,
Director of Tax Policy Studies, Cato Institute, Washington,
DC; Charles W. Stenholm, Former Member of Congress,
Washington, DC. The testimony highlighted the long-term
fiscal challenge facing the Federal Government and it
examined various options to address this challenge.
OVERSIGHT AND INVESTIGATIONS
SUMMARY OF ACTIVITIES
Congressional authority to conduct oversight is extensive
and powerful. Numerous Supreme Court decisions have established
and supported the broad and encompassing power in the Congress
to engage in oversight and investigation. In the seminal
Supreme Court ruling in McGrain v. Daugherty (1927), the Court
declared that, ``the power of inquiry--with the process to
enforce it--is an essential and appropriate auxiliary to the
legislative function.'' In the landmark decision in Watkins v.
United States (1957), the Court emphasized that Congress'
investigative power is at its peak when the subject is alleged
waste, fraud, abuse, or maladministration within the government
department. Senator Charles E. Grassley, Chairman of the
Committee on Finance, takes seriously his constitutional
oversight responsibilities and has tirelessly worked to keep
the Federal Government effective, transparent, and accountable.
During the 109th Congress, the Chairman's oversight efforts
ranged from examining certain practices and fraud at the
Department of Health and Human Services (``HHS''), the Centers
for Medicare and Medicaid Services (``CMS''), and the Food and
Drug Administration (``FDA'') to the agencies of the Department
of Agriculture (``USDA''), the Securities and Exchange
Commission (``SEC''), the Department of Housing and Urban
Development (``HUD''), the Federal Bureau of Investigation
(``FBI''), and the Department of Homeland Security (``DHS'').
The Chairman continued working to control fraud, waste, and
abuse including the misuse of government-issued credit cards in
the aftermath of Hurricanes Katrina and Rita and mismanagement
and corruption at the Federal Aviation Administration.
Highlights of the Committee's investigations ranged from
targeting fraud and abuse in the Medicaid prescription drug
program to ensuring that the Government has adequate supplies
of vaccines stockpiled in the event of an anthrax attack. The
Chairman also continued to champion whistleblowers in
government and private industry to come forward and expose
fraud and wrongdoing for the public good. The Chairman also
continued to rely heavily on the services and expertise of the
Government Accountability Office (``GAO'') and the various
agency inspectors general.
HEARINGS
Medicaid Waste, Fraud and Abuse
A two-day oversight hearing was held June 28-29, 2005
entitled, ``Medicaid Waste, Fraud and Abuse: Threatening the
Health Care Safety Net.'' This hearing examined the various
vulnerabilities of the Medicaid program which threaten both the
long term sustainability of the Medicaid program and the
quality of care provided to Medicaid beneficiaries. The
Medicaid program was originally designed to provide healthcare
coverage for the most vulnerable populations, including low-
income Americans, children, pregnant women, individuals with
disabilities, and the elderly. With the ever increasing costs
of healthcare in the United States and the increasing role
Medicaid is asked to fill, the Committee chose to examine
fraud, waste and abuse in the Medicaid program.
The topics covered included the misappropriation of Federal
funds through the upper payment level (``UPL'') rules and
intergovernmental transfer (``IGT'') policies under the
Medicaid program. Title XIX of the Social Security Act
authorizes Federal Medicaid funds to be provided to the states
to finance health care for low-income, elderly, and disabled
individuals, subject to states' compliance with certain Federal
requirements. Among these is the requirement that states'
payment for services be consistent with efficiency, economy,
and quality of care, and not exceed the upper payment limit of
what Medicare pays for comparable services. A panel of experts
including officials from the GAO, CMS, and the Office of the
Inspector General for the Department of Health and Human
Services (``HHS-OIG'') discussed new reports issued on both
UPLs and IGTs in addition to releasing a report on states' use
of contingency fee consultants to enhance Federal share of
Medicaid monies.
Day two of the hearing discussed the topics of prescription
drug pricing in the Medicaid program and the transfer of
personal assets in order to qualify for Medicaid coverage. The
panel opened with testimony from a qui tam relator who used the
Federal False Claims Act to unearth a fraud scheme perpetrated
by a large pharmaceutical company. In doing so, the panel
discussed the various complex pricing mechanisms used to
calculate the prices for prescription drugs covered by
Medicaid, and compared them to changes enacted in the Medicare
program by the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 (``MMA''). The conclusion the panel
reached was that Medicaid pays too much for prescription drugs
and that an update to the formula that Medicaid uses to pay for
prescription drugs is warranted and would help to free more
dollars in the program for other services.
Asset transfers were also an issue of focus during the
second day of the hearing. Asset transfers are essentially a
scenario of seniors who transfer significant portions of their
assets in order to qualify for Medicaid prior to requiring long
term care. In Chairman Grassley's opening statement, he pointed
out that in 2003, the GAO designated Medicaid a high-risk
program because of escalating concerns about the quality of
Federal oversight and the sheer size of the program. In Fiscal
Year 2003, Medicaid spending was nearly $274 billion and was
expected to double over the next decade. Because the Medicare
and Medicaid programs are so large, even a small amount of
fraud, waste and abuse is cause for concern. The Committee will
continue to monitor this program in the 110th Congress.
Specialty Hospitals
In May 2006, the Committee convened a hearing to examine
several issues relating to the widespread growth of specialty
hospitals and their effect on the Medicare system. At issue
during the hearing was the impact that these arrangements had
on patient safety and quality of care. The Committee also
examined the various arrangements used to finance these
hospitals. The Committee was concerned that many times, these
arrangements would involve ``sweetheart'' deals with specialty
physicians. With such deals, investors were often offered no to
low-interest loans, investment without risk, and in some
instances agreements to purchase land prior to significant
appreciation. The Committee's investigation leading up to the
hearing also identified at least 40 specialty hospitals that
were constructed despite a congressional moratorium on building
such. Also at issue for the hearing was CMS enforcement and
oversight of the issue. The Committee will continue to monitor
this issue in the 110th Congress.
Border Security
In August 2006, the Committee held a follow-up hearing to a
2003 hearing regarding lax controls near our nation's borders.
In 2006, the Committee convened the hearing entitled, ``Border
Insecurity, Take Two: Fake IDs Foil the First Line of
Defense.'' The purpose of the hearing was to examine the
progress made in further securing and strengthening various
points of entry to our borders. The hearing presented an
opportunity to demonstrate how the nation's border crossings
are still extremely vulnerable. At issue was the publication of
a GAO report where the investigative agency portrayed their
ability to send investigators across the border without proper
identification; in this case GAO investigators easily passed
through using fraudulent documents and identifications. The
Committee subsequently issued a new request to the GAO to
identify weaknesses in Northern and Southern border crossings
where there is little CBP presence. The Committee will continue
to monitor this issue in the 110th Congress.
Nomination of Daniel Levinson for Inspector General of the Department
of Health and Human Services
In February 2005, the Oversight Committee oversaw the
successful nomination of Daniel Levinson to be Inspector
General of the Department of Health and Human Services. Mr.
Levinson was reported favorably out of Committee and confirmed
by the U.S. Senate.
LEGISLATION
Budget Reconciliation and the Deficit Reduction Act of 2005
The Committee considered a number of reforms to the
Medicare and Medicaid programs as part of the Deficit Reduction
Act of 2005 (``DRA''). Among the key reforms to the Medicaid
program were some ground breaking anti-fraud provisions which
were directly related to vulnerabilities highlighted as part of
the Committee's two-day hearing on Medicaid fraud, waste, and
abuse.
Among the changes, the first major reform included amending
the payment formula for prescription drugs from the average
wholesale price to the average manufacturer price. The second
major change included as part of the DRA was the enhancement of
recovery by the Medicaid program for payments made when a
beneficiary already has some form of insurance. Known as third
party liability, this loophole costs Medicaid hundreds of
millions of dollars per year.
The third anti-fraud provision was perhaps the most
significant. As noted in the Committee's hearing on Medicaid
fraud, whistleblower lawsuits often provide the most
information to the government in helping to curb abuses of
government programs. Whistleblower lawsuits have been filed
with the Federal government for over 100 years as part of the
Federal False Claims Act (``FCA''), also known as Lincoln's
law. Originally passed to help curb abuses resulting from war
profiteering, the FCA has long been recognized as the premier
law for preventing fraud in government programs. As part of the
Medicaid package in the DRA, the Committee included two
provisions further extending the reach of the FCA. The first
provision would provide an incentive to states to pass a state
FCA that contains, at a minimum, the same provisions as the
Federal version. The second provision would require employers
of corporations doing business with Medicaid to educate their
employees about the FCA and how it works. Taken together, these
provisions represent a major step forward in helping to prevent
future fraud in the Medicaid program.
S. 930--Food and Drug Administration Safety Act of 2005
In response to escalating questions of the FDA's ability to
respond to safety issues for pharmaceutical drugs and medical
devices, Senator Grassley and Senator Christopher Dodd (D-CT)
introduced the Food and Drug Administration Safety Act of 2005.
The purpose of the legislation is to establish a new, permanent
office of safety for postmarketing drug evaluation. The
legislation would require the director of the new center to
conduct activities to ensure the safety and effectiveness of
FDA approved drugs and licensed biological products, including:
(1) conducting postmarket risk assessment and surveillance of
such drugs and products; (2) determining whether a postmarket
study is required; (3) contracting, or requiring the sponsor of
such a drug or product to contract, with the holders of
domestic and international surveillance databases to conduct
epidemiologic and other observational studies; (4) determining
whether a drug or product may present an unreasonable risk to
the health of patients or the general public; (5) taking
corrective action if such an unreasonable risk may exist; and
(6) making information about the safety and effectiveness of
such drugs and biological products available to the public and
health care providers in a timely manner.
S. 470--Fair Access to Clinical Trials Act of 2005
In 2005, Senator Grassley, along with Senators Dodd,
Johnson (D-SD), and Wyden (D-OR) introduced the Fair Access to
Clinical Trials Act of 2005 (``FACT Act''). This legislation
was proposed following a string of incidents of drug sponsors
not publishing adverse clinical trial results for experiment
drugs in their pipeline. The FACT Act requires the Director of
the National Institutes of Health (NIH), to establish and
operate a data bank of information on clinical trials, to
include: (1) a clinical trials registry of health-related
interventions conducted to test the safety or effectiveness of
any drug, biological product, or device intended to treat
serious or life-threatening diseases and conditions; and (2) a
clinical trials results database of health-related
interventions to test the safety or effectiveness of any drug,
biological product, or device.
OTHER OVERSIGHT INITIATIVES
Centers for Medicare and Medicaid Services
Information Technology Programs
Chairman Grassley requested that the GAO conduct two
separate reviews of information technology at HHS. The first
review sought to address concerns regarding the coordination of
funding and oversight for information technology projects
within HHS at the Department level. GAO discovered that, (1)
HHS' senior investment board does not regularly review
component agencies information technology (``IT'') investments,
even when component agency IT investments account for 89
percent of the discretionary IT funding at HHS--or $2.049
billion in FY 2006, (2) HHS does not evaluate the performance
of its IT portfolio on a regular basis and does not conduct
post-implementation reviews to ensure the maximization of IT
investments, and (3) HHS currently has no structured mechanism
in place to ensure that component agencies are implementing
investment processes in line with those of the department. GAO
concluded that HHS will continue to be challenged in its
ability to make informed and prudent investment decisions in
managing its annual, multi-billion dollar IT investment
portfolio.
The second audit requested an assessment of information
technology programs at CMS. Among the findings, GAO determined
that, (1) CMS' investment management guide does not reflect
current processes used by HHS, (2) procedures for selecting and
reselecting investments are not fully documented, (3) CMS has
not designed procedures for involving the board in efforts to
systematically review the progress of IT projects and systems
in meeting cost, schedule, risk and benefit expectations, (4)
critical processes and procedures for portfolio management have
not been implemented by CMS, (5) CMS lacks the key capabilities
needed to manage its investments as a portfolio, and (6) CMS
does not have a comprehensive plan to coordinate and guide its
improvement efforts. GAO's conclusion was that CMS'
capabilities to manage its internal investments are limited and
until CMS establishes the key practices required to build the
investment foundation and manage its investments as a
portfolio, CMS will not have the capabilities it needs to
ensure that investments supporting its multibillion-dollar
Medicare and Medicaid programs are being managed to minimize
risk and maximize reward. The Committee will continue to
monitor this issue in the 110th Congress.
Effectiveness of Quality Improvement Organizations
In 2005, the Committee began to receive a series of
allegations concerning the integrity, effectiveness and
administration of various state and regional Quality
Improvement Organizations (``QIO'' or ``QIOs''). In addition to
allegations at the individual QIOs, the Committee also received
allegations concerning mismanagement and integrity problems at
CMS. Chairman Grassley, along with Ranking Member Max Baucus
(D-MT), requested information from CMS, the American Health
Quality Association, and various state and regional QIOs on a
broad range of matters. More specifically, the Chairman and
Ranking Member requested information (e.g., contracts, travel
expenses, board compensation, and performance audits) to ensure
beneficiaries were receiving quality care and pertinent
information in a timely and appropriate manner. The Chairman
also requested that the GAO and the HHS-OIG evaluate the fiscal
integrity, beneficiary complaint process, and quality of
nursing home care of QIOs. The Committee will continue its
oversight of the QIOs in the 110th Congress.
Oncology Demonstration Project
Chairman Grassley requested the HHS-OIG to evaluate the
cost and effectiveness of the CMS oncology demonstration to
improve the quality of care for chemotherapy patients. Under
this demonstration, CMS provides a $130 allowance each time a
chemotherapy provider reports on a Medicare patient's levels of
nausea and/or vomiting, pain, and fatigue--three conditions
commonly experienced as symptoms of cancer or side effects of
cancer treatment. Medicare beneficiaries are liable for a co-
payment of $26 each time their provider bills the demonstration
codes in conjunction with their chemotherapy. Among other
things, the OIG discovered that chemotherapy patients were
paying for services already covered as part of their routine
care. In light of the HHS-OIG's preliminary findings, Chairman
Grassley wrote to President Bush to urge that problems with the
demonstration be addressed quickly to ensure that public funds
and patients' out-of-pocket expenses are spent effectively and
efficiently. According to the HHS-OIG, beneficiary liability
for the demonstration during the first six months of 2005 was
$22 million. CMS estimated that Medicare and its beneficiaries
will spend $300 million under this demonstration project.
Senator Grassley asked that CMS work with the cancer community
and other relevant stakeholders to identify ways to use money
from the Medicare program and its beneficiaries to improve both
quality and outcomes of care for cancer patients and achieve
value for money spent. He also requested a list of all
demonstration participants and the amounts collected by those
participants, which include physicians who received over
$300,000 from the demonstration.
Tissue Banks
The Committee initiated an inquiry of tissue bank oversight
in response to patients, nation-wide, receiving human tissue
implants that were allegedly harvested without consent and
donors and tissue not properly screened and tested for
bacteria, virus, and other contaminants. The Committee has
requested information from and is reviewing documentation
submitted by the FDA which is responsible for tissue bank
oversight. Additionally, the Committee continues to engage the
American Association of Tissue Banks, the HHS-OIG, and the
Congressional Research Service to determine how to improve
tissue bank oversight. This Committee investigation is ongoing.
Medicaid Drug Prices
Chairman Grassley and Ranking Member Baucus continued their
inquiry into the use of an exception to the best-price
reporting requirements that applies to the Medicaid drug rebate
program. The Chairman and Ranking Member sent request letters
to the major pharmaceutical manufacturers to inquire about
their practices with respect to the exception. To participate
in the drug rebate program, a drug company must report to the
government its best price, which is the lowest price at which
its drug was sold to any purchaser in the United States.
Congress created an exception to best-price reporting to
encourage drug companies to continue making drugs available to
charitable organizations at cheaper than market rates. Concerns
have been raised that this exception has been used primarily as
a tool to promote the use of certain drugs and has not been
limited to charitable organizations. The Committee issued its
findings in a letter to CMS in January 2007, but this
investigation is ongoing.
Pharmaceutical Companies' Use of Educational Grants
Chairman Grassley and Ranking Member Max Baucus wrote to 18
leading drug manufacturers and five leading biotech companies
to inquire about their use of education grants for the
promotion of off-label drugs and medical devices. The purpose
of the request was to determine whether, and to what extent,
educational grants are used to support activities that are not
sponsored or organized by professional organizations or do not
involve formal educational presentations and determine if
further guidance or legislation is needed. Educational grants
were identified by the Department of Health and Human Services
Office of Inspector General as a key risk area in its 2003 OIG
Compliance Program Guidance for pharmaceutical manufacturers.
The Chairman stated that he wanted to be sure that educational
grants are not just a ``backdoor way to funnel money to doctors
and other individuals who can influence prescribing and
purchasing of particular prescription medicines, including off-
label prescriptions.'' Given the potential risk that off-label
promotion creates for overutilization of Federal monies, the
Committee is working to ensure that Federal monies are
protected and utilized to the fullest extent with the lowest
risk of waste and mismanagement. The Committee's inquiry into
this matter is ongoing.
Quality of Care in Nursing Homes
The Chairman continued his vigorous oversight of the
nursing home industry to ensure that Medicaid and Medicare
beneficiaries receive the quality of care that they deserve.
The Chairman conducted various oversight efforts in the 109th
Congress to ensure that this goal was achieved. One example
includes an inquiry into CMS about a possible loophole in the
Federal regulations which do not specifically require nursing
homes to report serious patient injuries where the cause of the
injury is known and the injury did not result from mistreatment
or abuse. Chairman Grassley also wrote letters to five
organizations involved in improving health quality that had
previously committed to ensuring that additional Medicare
reimbursement, provided beginning in 2003, would be spent on
direct patient care. In 2003, Chairman Grassley helped secure a
measurable increase in Medicare reimbursement for Skilled
Nursing Facilities (``SNF''), resulting in more than $7 billion
in additional reimbursement in the past two years. In the
letters, the Chairman expressed concern that facilities could
not demonstrate that the additional $7 billion attributable to
the increased funding was spent on direct patient care.
Chairman Grassley also asked the HHS-OIG to review the 2004
cost reports submitted by SNFs to CMS to determine the
proportion of SNFs reporting increased spending on direct
patient care. Chairman Grassley also continued to monitor CMS's
efforts to address problems identified by the GAO in its 2004
report entitled Nursing Home Fire Safety: Recent Fires
Highlight Weaknesses in Federal Standards and Oversight. CMS
recently issued a new regulation requiring nursing homes to
install smoke detectors in patient rooms and public areas of
those older nursing homes that do not have sprinkler systems or
hardwired smoke detectors and it has taken additional steps to
address the GAO recommendations. In addition, in 2006, CMS
issued a new regulation requiring all pre-existing nursing
homes to have sprinkler systems installed in their facilities.
The Committee will continue to monitor this issue in the 110th
Congress.
Quality of Care for End Stage Renal Disease
As part of the Chairman's continuing efforts to improve
patient care at dialysis facilities, Senator Grassley and
Representative Pete Stark (D-CA) wrote to CMS about its
proposed rule updating conditions of coverage for end stage
renal disease facilities. The letter congratulated CMS for the
long awaited changes to the conditions of coverage, which had
not been updated in almost 30 years. Chairman Grassley and
Congressman Stark also noted that the proposed rule addressed
many of the recommendations made by the GAO.
University of Medicine and Dentistry of New Jersey
The Chairman and Ranking Member, through published media
reports, became aware of allegations of Medicaid fraud,
corruption, and mismanagement at the University of Medicine and
Dentistry of New Jersey (``UMDNJ''). UMDNJ is one of New
Jersey's, and one of the country's, largest health care
universities and medical research facilities. Chairman Grassley
and Ranking Member Baucus urged Governor Jon Corzine to reign
in fraud, corruption, and mismanagement at the UMDNJ. The
Chairman and Ranking Member requested that the Governor's
office, in cooperation with UMDNJ officials, provide a
comprehensive briefing on their plans to ensure that the UMDNJ
is free from corruption and fraud and managed in the best
interests of the citizens of New Jersey and American taxpayers.
The names of UMDNJ internal ``whistleblowers'' who may have
first warned university officials and legal counsel of the
potential criminal fraud and misconduct were also requested.
Subsequent to media reports of the Chairman and Ranking
Member's letter to Governor Corzine, the former Vice President
of Ambulatory Care at UMDNJ, Adam Henick, contacted the
Committee staff and agreed to be interviewed. Mr. Henick had
initially reported irregularities and problems with the
Medicare and physician billing methodology of the University
Hospital. After repeatedly reporting these problems to UMDNJ
officials he was fired without cause from his position after
approximately 2\1/2\ years. Subsequently, the UMDNJ came under
scrutiny by Federal authorities for double-billing Medicaid and
allegations of additional fraud and mismanagement. To avoid
criminal prosecution, the UMDNJ entered into a two year
Deferred Prosecution Agreement with the U.S. Attorney's Office,
District of New Jersey, approved by the school's trustees,
allowing for a Federal monitor with broad control to be in
place at the UMNDJ. The Committee will keep abreast of
developments at the UMDNJ.
Pharmacy Benefit Managers
In 2006, the Committee received allegations regarding
certain practices at mail order pharmacies where management may
have prevented pharmacists from acting in the best interests of
the patients they serve, including Medicare and Medicaid
beneficiaries. As a result of these allegations, the Committee
sent letters to three of the major pharmacy benefit managers in
the industry inquiring about their practices relative to this
concern. Among many concerns, the Committee received
allegations suggesting that mail order pharmacies were: (1)
pressuring staff pharmacists to increase the number of
prescriptions each staff pharmacist handles per hour, (2)
interfering with pharmacist judgment by denying requests to
contact physicians when pharmacists are presented prescriptions
that are illegible or otherwise unintelligible, (3) ignoring
complaints raised by staff pharmacists regarding problems with
automated software that cause prescriptions to be filled
incorrectly, and (4) misrepresenting the published error rate
at mail order facilities to mask the true number of errors.
Power Mobility Devices
The Committee has a long-standing commitment to ensuring
that Medicare funds used for power mobility devices (``PMDs'')
are used effectively and efficiently. In 2004, the Committee
conducted a hearing examining the extent to which Medicare
overpaid for PMDs. As a result of this hearing and reports by
the GAO and HHS-OIG, CMS began the process of modifying the
payment schedule for PMDs. CMS' change in the fee schedule led
to significant modifications for payments in the industry to
eliminate the problems identified in the wide body of work
concerning fraud, waste and abuse for this benefit. The
Committee worked with CMS throughout its payment restructuring
process to ensure that fair and adequate payments were made
while ensuring that safeguards were in place to prevent fraud,
waste and abuse. A new fee schedule went into effect on
November 15, 2006.
Food and Drug Administration
Medicaid Reimbursements for Adderall and Adderall XR
As part of the Committee's continuing oversight of the
safety of prescription drugs, many of which are paid for with
taxpayer dollars through the Medicare and Medicaid programs, an
examination was conducted into a number of allegations
regarding Adderall and Adderall XR. Adderall is a prescription
amphetamine most often used to treat Attention Deficit
Hyperactivity Disorder (``ADHD'') in both children and adults.
According to an HHS-OIG estimate, Medicaid reimbursed for
several million prescriptions over the past four years for
Adderall and Adderall XR. Committee staff were advised that a
series of meetings relating to Adderall and Adderall XR
(Adderall meetings) were held between the FDA and its Canadian
counterpart, Health Canada. Health Canada announced that it had
suspended market authorization of Adderall due to safety
information concerning the association of sudden deaths, heart-
related deaths, and strokes in both children and adults taking
usual recommended doses. Information obtained by Committee
suggests that during a recent Adderall meeting, one or more FDA
employees requested that the Canadian government refrain from
suspending the use of Adderall XR because there was concern
that FDA could not handle another ``drug safety crisis.'' The
Committee will continue to address this issue should any
developments develop.
PolyHeme
The Committee led an inquiry into the FDA's handling of a
large clinical trial for Polyheme, a synthetic blood substitute
that is currently in wide-spread clinical trials in major
metropolitan areas. The clinical trial relies upon an informed-
consent exception in regulations relating to human subject
protection. Specifically, the exception allows for testing
human subjects in emergency situations without requiring their
consent. While the Committee recognizes the need to conduct
clinical trials in such situations, Senator Grassley was
concerned with the way safety information was distributed by
both the sponsor and the FDA. Essentially, consistent
information was not presented to each of the test sites.
Moreover, questions were raised about the level of community
awareness that non-informed consent trials were in fact taking
place. Those who wished not to participate in the clinical
trial were required to wear a wrist-bracelet indicating such.
It appeared that many people in the areas of the trials were
not aware that such a trial was taking place. In addition,
Senator Grassley voiced concern with the fact that in some
instances, when authentic blood became available to a patient,
it was withheld as part of the study.
Delay in Labeling Changes for Viagra
Chairman Grassley initiated an investigation into the delay
for labeling changes for Viagra, a prescription drug for
erectile dysfunction (``ED''). At issue was whether the FDA and
the drug sponsor took the necessary and timely steps to inform
doctors and patients of permanent blindness associated with the
use of the drug.
Senator Grassley was specifically troubled that the FDA did
not initiate label change discussions with the sponsor until
more than a year after the Office of New Drugs (``OND'') was
first made aware of non-arteritic anterior ischemic optic
neuropathy risks (``NAION'').
According to the safety evaluator monitoring adverse events
associated with Viagra, OND was under time pressures to approve
new drugs, so safety concerns often need to ``fit in'' wherever
they could. Senator Grassley stated that this is yet another
example of the ``separate but unequal'' relationship between
OND and the Office of Drug Safety at the FDA.
In a letter to the FDA, Senator Grassley asked how the
agency planned to inform patients who have been prescribed
erectile dysfunction drugs, including Viagra, of the blindness
risks. According to the safety evaluator, conversations between
physicians and their patients about NAION and ED drug use do
not typically take place before patients are prescribed the
medication. This is usually because physicians prescribing
Viagra, such as urologists, may not be aware of the risks.
Ophthalmologists who would address the condition are not in the
position to prescribe ED drugs.
Senate Grassley noted that this creates an environment for
underreporting to the FDA of NAION that occurs in patients who
have taken Viagra or another ED drug. Ultimately, the drug
sponsor, and other sponsors of the same drug class, made
labeling changes that made note of these risks.
Management at the Center for Biologics Evaluation and Research
Chairman Grassley initiated an investigation involving the
FDA's approval of a human immunodeficiency virus (``HIV'') test
kit over the objections of the FDA employee responsible for
reviewing the product. It was alleged that the test kit's
sponsor had a cozy relationship with FDA management and that
the FDA employee who objected to approval of the test kit was
threatened with retaliation for bringing complaints forward.
The Chairman sent several letters to the FDA requesting
documentation relating to the approval of the test kit in
addition to interviewing several FDA employees involved in the
matter. Documentation submitted by FDA demonstrated that it had
conducted a thorough investigation of the test kit's safety and
efficiency that supported the decision to approve it. However,
the investigation revealed significant problems with the
management of the approval process in the approving division,
including problems with the dispute resolution process. The
Chairman is concerned that the management problems uncovered in
this investigation are present throughout the FDA. The
Committee has concluded this investigation.
Cyberonics
In February 2005, Senator Grassley and Senator Baucus
initiated an inquiry into the FDA's handling of Cyberonics,
Inc.'s (``Cyberonics'') pre-market approval application to add
a new indication--treatment-resistant depression (``TRD'')--to
Cyberonics' Vagus Nerve Stimulation (``VNS'') Therapy System,
an implanted device. On July 15, 2005, the FDA approved the
device for TRD. The FDA approved the VNS Therapy System for TRD
based upon a senior official overruling the comprehensive
scientific evaluation of more than 20 FDA scientists, medical
officers, and management staff who reviewed Cyberonics'
application over the course of 15 months. The official approved
the device despite the conclusion of the FDA reviewers that the
data provided by Cyberonics in support of its application for a
new indication did not demonstrate a reasonable assurance of
safety and effectiveness sufficient for approval of the device
for TRD. The FDA has publicized differences of scientific
opinion within the agency when it has announced other
controversial regulatory decisions. Throughout the review of
Cyberonics's application, the team of FDA scientists, medical
officers, and management staff involved recommended that the
device not be approved for TRD. However, at every stage of the
review, the team was instructed by the FDA official, who
ultimately made the decision to approve the device, to proceed
with the next stage of pre-market review. The Committee staff
issued a report to the Chairman and Ranking Member of the
Committee concerning these findings in February 2006.
Dr. Victoria Hampshire
In 2005 and 2006, Senator Grassley wrote to the FDA after
receiving allegations that a drug sponsor conducted an
independent investigation into Dr. Victoria Hampshire, an FDA
scientist and a commissioned officer in the Public Health
Service. This investigation was conducted for the purpose of
discrediting Dr. Hampshire because of her work cataloging
adverse events for a product the company produced, information
which ultimately led to the product's removal from the market.
One fact that the investigation uncovered was that the FDA
provided inaccurate statements to the general public in stating
that the investigation into Dr. Hampshire was conducted with
her knowledge and was not a criminal investigation. A thorough
document review by the Committee revealed these two statements
to be false. Senator Grassley and the Committee also sought
information on how the agency interacted with the drug sponsor
to actively discredit Hampshire for her work cataloging adverse
events. Documents and information obtained by the Committee
show that the then-FDA commissioner and chief counsel held a
private meeting with the manufacturer at which no notes or
minutes were taken. This meeting took place shortly before the
FDA removed Hampshire as a presenter at its advisory meeting
for the company's product. The Committee found issue with the
event since a meeting of this nature was required by FDA
regulations to retain accurate transcripts and notes of the
meeting. However, no documents relevant to this event were
created. This matter is currently ongoing.
Pharmacy Compounding of Drugs
In 2006, the Committee received allegations concerning the
inappropriate compounding of inhalation drugs. Specifically,
the allegation was that some pharmacies, in particular mail-
order pharmacies and durable medical equipment (``DME'')
suppliers may be producing and/or providing unsafe and/or
ineffective or less effective nebulizer medications by
inappropriately compounding prescription drugs. While
recognizing the various legitimate needs for compounding
medications, Senator Grassley remains concerned about the
health and safety of the patients using these drugs as well as
the financial impact that unsafe and/or ineffective compounded
medications may have on the Medicare program in particular and
the health care system generally. The Committee will continue
its oversight of this matter into the 110th Congress.
Ketek
In April 2006, Senator Grassley initiated an investigation
into the FDA's approval and post-market surveillance of
telithromycin (``Ketek''), an antibiotic approved by the FDA in
April 2004.
The Committee first became concerned when it discovered
that the FDA approved the drug despite a fraudulent clinical
study of the drug.
Citing this concern, the Committee contacted both the FDA
and HHS to request documents and access to FDA investigators
conducting a criminal investigation. However, over the course
of the investigation, it became apparent to the Chairman that
both agencies were stonewalling the process. The agencies have
selectively provided documents to the Committee while
withholding certain pieces of information based on an
interpretation of executive branch policies.
Senator Grassley remained concerned about this lack of
cooperation. He, and Ranking Member Baucus, issued two
subpoenas to HHS and FDA to produce both documents and access
to the Special Agent in charge of the criminal investigation.
Senator Grassley also traveled to the HHS headquarters in
Washington, DC to try to meet with the Special Agent. The
agency, however, continues to restrict access to the Special
Agent as well as certain documents.
In December 2006, the Committee reported on a portion of
its findings to the Commissioner of the FDA. This review is
currently ongoing.
SFBC
In November 2005, the Committee examined the practices of
SFBC, the largest clinical research organization (``CRO'') in
the country, following media reports that the CRO had failed to
adequately safeguard test subjects involved in clinical trials.
In particular, after a critical article was published about the
company, reports began to emerge that three test subjects who
provided information to the publication were threatened and
intimidated by managers at SFBC for their cooperation.
In addition to examining this CRO, the Committee also
began looking at the entire CRO industry as well as FDA's
oversight of the industry. The Committee concluded that serious
deficiencies were present at SFBC and that the company and the
FDA had not done all they could to protect test subjects at the
center.
SFBC has closed the testing center in question and has
reorganized the company. While Senator Grassley's investigation
into SFBC has concluded, he will continue to monitor the
industry and work to ensure that the FDA is providing proper
and effective oversight of human subject studies.
Department of Health and Human Services
Transfer of Medicare Administrative Appeals
Chairman Grassley and Ranking Member Baucus continued their
oversight of the transfer of Medicare administrative appeals
from the Social Security Administration (``SSA'') to HHS as
mandated by section 931 of the Medicare Modernization Act
(``MMA''). Chairman Grassley and Ranking Member Baucus wrote to
Secretary Leavitt and Commissioner Barnhart regarding concerns
leading up to the July 1, 2005 transfer and questioned whether
the limited number of on-site facilities for in-person hearings
was in line with the intent of the MMA. HHS responded that it
believed a limited presence in the field--only four sites
nationally--would be supplemented through the extensive use of
video-teleconferencing. The Committee continues to monitor this
matter.
Anthrax Vaccine Stockpile
Chairman Grassley initiated an investigation into the
Project BioShield contract between HHS and VaxGen to purchase
75 million doses of VaxGen's new, experimental anthrax vaccine
for the Strategic National Stockpile. Letters to the Secretary
of HHS raised concerns about the decision to buy vaccine from a
single manufacturer. Senator Grassley also questioned claims
made by HHS in a press release that a stronger and more
effective anthrax vaccine was available. The new anthrax
vaccine, however, did not exist, and HHS immediately removed
the press release from its website when Grassley brought this
to the agency's attention.
Senator Grassley also examined the adequacy of the
nation's current stockpile of anthrax vaccine. HHS had not
stockpiled a single dose of anthrax vaccine since the anthrax
incidents of October 2001, and it took the agency close to two
years to negotiate the purchase of an existing vaccine for the
stockpile.
Senator Grassley asked HHS what steps the agency was taking
to ensure that the national stockpile has adequate supplies of
vaccines in the event of an anthrax attack.
HHS purchased 5 million doses of the licensed anthrax
vaccine for the stockpile and anticipates purchasing more.
The Committee will continue monitoring this matter.
Allegations of Employee Misconduct at the DAIDS
Chairman Grassley and Ranking Member Baucus investigated
allegations of scientific and employee misconduct, including
allegations of sexual harassment, within the Division of AIDS
(``DAIDS'') at the National Institutes of Health (``NIH'').
These allegations were brought to their attention by Dr.
Jonathan Fishbein, the former director of DAIDS's Office for
Policy in Clinical Research Operations. Senator Grassley also
asked the HHS-OIG to conduct a separate investigation.
The HHS-OIG completed its investigation and issued a
report of its findings to the Chairman and Ranking Member in
early 2006. Dr. Fishbein asserted that he was told by NIH that
his employment would be terminated because he had complained to
his supervisor about the inappropriate and unprofessional
conduct of another DAIDS employee and acted on his concerns
regarding the conduct of DAIDS-sponsored clinical research.
Senator Grassley was troubled that the individuals included in
Dr. Fishbein's allegations were the same individuals
responsible for preparing the justification for terminating his
employment with the NIH.
Dr. Fishbein was placed on administrative leave for almost
a year before his employment was terminated on July 1, 2005.
Senators Grassley and Baucus wrote to the NIH to voice
concerns that the actions and events surrounding Fishbein's
termination appeared to be retaliation against Dr. Fishbein.
Those actions and events also suggested broader, more systemic
problems related to the management and functioning of DAIDS,
which NIH has acknowledged and informed the Chairman and
Ranking Member that the agency is addressing those problems.
Dr. Fishbein was ultimately reinstated to his position.
The Committee continues to monitor NIH's progress in resolving
problems in DAIDS.
Organ Transplant Centers
The Committee initiated an investigation of Federal
oversight of organ transplant centers. The Committee's
involvement began in 2005 in response to investigative
reporting conducted by the L.A. Times. The L.A. Times
investigation initially found that a Saudi national allegedly
paid to move to the top of the organ transplant waiting list at
St. Vincent Medical Center in Los Angeles. The Committee began
an inquiry of this incident. The L.A. Times subsequently
identified a functionally inactive transplant center at the
University of California Irvine (``UCI'') which the committee
also inquired about. The Committee completed its inquiry of St.
Vincent and UCI transplant centers, but continues to conduct a
broader investigation of transplant system oversight.
As part of this broader inquiry, the Committee asked the
GAO to conduct a review of the effectiveness of transplant
center oversight. The Committee has also requested information
from the HRSA and CMS, the two Federal agencies responsible for
oversight of the organ transplant system.
The Committee is also engaging the United Network for Organ
Sharing (``UNOS'') which is a private contractor that
administers the organ procurement and transplantation network
on behalf of HRSA to determine their role in oversight of the
nation's transplant system. The investigation is currently
ongoing.
Centers for Disease Control
Senator Grassley wrote to Centers for Disease Control and
Prevention (``CDC'') Director Julie Gerberding and to other CDC
officials concerning reported deficiencies in the process by
which CDC monitors and seeks to improve the abilities of state
and local public health departments to respond to public health
emergencies such as bioterrorism, pandemic influenza, and
natural disasters. Improvements in emergency response
preparedness are largely the result of billions of dollars in
grants awarded to the states by the Federal Government through
cooperative agreements between the states and the CDC.
Officials at the CDC provided briefings in response to the
inquiries. CDC officials acknowledged during those briefings
that the CDC has not yet been able to develop a stable set of
metrics that can be uniformly applied across the nation to
measure the abilities of state health departments to quickly
and effectively respond to public health emergencies. The CDC
officials reported that the agency is constantly reviewing and
developing the metrics and that the agency had recruited state
and local health officials and subject matter experts to
participate in the development of the metrics so that they
provide valid measures of preparedness. Because of the
importance of this issue to the safety of the American people,
Senator Grassley became a co-requestor on a request for an
evaluation by GAO of the process by which the CDC develops the
metrics used by the CDC to evaluate the preparedness of state
and local public health offices to respond to emergencies.
Senator Grassley also wrote letters to Dr. Gerberding
expressing concern over reports of serious employee morale
problems at the CDC. The CDC denied the existence of any morale
problems and asserted that if any such problems did exist, they
were the result of stresses brought on by a large-scale
reorganization of the agency. CDC officials claimed that these
stresses would diminish with the passage of time and that
employee morale should gradually improve. The CDC also provided
the Committee with data indicating that the agency had not yet
suffered losses of significant numbers of employees. The CDC
asserted that this data contradicts the reported problems with
employee morale.
The Committee continues to monitor employee morale at CDC
and seeks to ensure that CDC officials are aware that problems
with employee morale will have a negative influence on the
ability of the agency to respond to future public health
emergencies.
Federal Bureau of Investigation
Sharing of Information by Law Enforcement Agencies
Senator Grassley wrote to FBI Director Robert Mueller
regarding reported problems with information sharing between
Federal agencies in the aftermath of the tragic events of
September 11, 2001. The letter to Director Mueller concerned
representations made by the FBI to both Congress and the media
that the development of the FBI's Investigative Data Warehouse
(``IDW''), a computer database and networking system, provided
counterterrorism investigators with ``one stop shopping'' for
all information available from Federal law enforcement agencies
on terrorism suspects. A cursory review by the Committee of a
list of sources of the information accessible through IDW
queries revealed that the list failed to include the
information contained in computer databases controlled by other
major Federal law enforcement agencies. The letter from Senator
Grassley requested a complete listing of all sources of
information accessible to a terrorism investigator conducting
queries on suspects through IDW. Committee staff determined
that the list of sources of information provided to the
Committee by the FBI indeed failed to include the information
contained in databases controlled by other major Federal law
enforcement agencies who have publicly claimed to be actively
involved in investigations of terrorist organizations. Senator
Grassley will request explanations from both the FBI and the
non-participating agencies for their failures to engage in the
sharing of information on terrorism suspects. It is the
position of Senator Grassley that this information developed by
our nation's law enforcement agencies does not belong to the
agencies themselves but that the information instead belongs to
the American people, and is always to be used for our nation's
protection. The Committee continues to monitor this situation.
Misconduct by Supervisory FBI Personnel
Senator Grassley joined with Judiciary Committee Chairman
Arlen Specter (R-PA) and Ranking Member Patrick Leahy (D-VT) in
writing a letter to FBI Director Robert Mueller concerning
reports of unethical conduct and possible criminal activities
by FBI officials involved in supervising the FBI's
investigation of the suspicious circumstances surrounding the
death of Baltimore, Maryland, Assistant United States Attorney
(``AUSA'') Jonathan Luna. The letter followed the release of a
report by the Office of the Inspector General, U.S. Department
of Justice (``DOJ-OIG''). The report criticized the FBI's
Inspection Division for failing to refer certain allegations to
the FBI's Office of Professional Responsibility (``OPR'')
allegations that FBI supervisors had engaged in acts of serious
misconduct and possible criminal offenses. Further, it was
reported that FBI supervisors were suspected of having had an
improper personal relationship with AUSA Luna. This field agent
was thereafter subjected to abusive and potentially criminal
mistreatment by her supervisors. The letter also expressed
concern that the DOJ-OIG report indicated that during a series
of interviews with agents of the FBI's Inspection Division, the
subject FBI supervisors had given sharply conflicting
statements concerning their treatment of the victim field
agent. These conflicting statements indicated a lack of candor
among the supervisors and possible violations by those
supervisors of Federal criminal statutes that prohibit the
making of false statements to law enforcement officials. During
a briefing, the Director of the FBI's Office of Professional
Responsibility reported that no disciplinary action(s) would be
taken by the FBI against the supervisors. This incident appears
to be one of many in which the FBI has wrongfully given
preferential treatment to FBI supervisory personnel involved in
acts of misconduct or criminal activities. Senator Grassley
continues to monitor this situation.
FBI Mishandling of Terrorism Investigation
Senator Grassley wrote a letter to FBI Director Robert
Mueller regarding the reported negligent failure of the FBI to
seek a court order authorizing the non-consensual monitoring of
telephone conversations in an investigation of persons believed
to be involved in raising funds to support terrorist
activities. The letter of inquiry resulted from reports made by
a former Special Agent in Charge for the Houston, Texas, office
of U.S. Immigration and Customs Enforcement (``ICE''). It was
reported that the FBI office in Houston failed to seek a court
order authorizing wiretaps in a case developed by ICE agents
but reported to the FBI in accordance with the terms of a
Memorandum of Understanding (``MOU'') between the two agencies.
This MOU provided that the FBI would have primary investigative
jurisdiction in cases involving funds to support terrorism.
Houston ICE agents also reported that toll records for the
targeted telephones indicated that in negligently failing to
seek the order, FBI agents had missed valuable opportunities to
intercept numerous calls that were placed to a telephone
associated with a known terrorist suspect. The FBI provided the
Committee with briefings and reports on this issue and it
became apparent to the Committee from these briefings and
reports that FBI officials were making multiple conflicting
statements and providing widely-varying accounts on the
circumstances surrounding the FBI's failure to seek the wiretap
authorization. These conflicting statements from FBI personnel
have thwarted efforts by the Committee to properly identify the
specific FBI officials responsible for the FBI's failure to
conduct an investigation that had national security importance.
The conflicts in statements are also disturbingly indicative of
a lack of candor and integrity on the parts of FBI personnel.
FBI Director Mueller concurred with the position of the
Committee that the FBI should have addressed this investigation
more quickly. He also reported to the Committee that steps were
being taken to educate FBI field offices on their
responsibilities under the Memorandum of Understanding between
the FBI and ICE. The Committee has closed this investigation.
Mishandling by FBI of Terrorism Financing Investigation and Retaliation
by the FBI Against FBI Agent Who Reported Mishandling of
Investigation
Senator Grassley, Senate Judiciary Chairman Specter, and
Ranking Senate Judiciary Committee Member Leahy wrote joint
letters to both U.S. Department of Justice Inspector General
Glenn A. Fine and FBI Director Robert Mueller regarding
information received from former FBI Special Agent Michael
German concerning the FBI's handling of an investigation of
persons believed to be supporting terrorism. The reported
mismanagement of the investigation by the FBI was deemed to be
particularly disturbing. Specifically, Agent German reported to
the Committee that the subjects of the investigation had ties
to both foreign terrorist organizations and domestic terrorist
organizations and that the investigation indicated that steps
were being taken by members of those terrorist organizations to
become allies in their efforts to commit terrorist activities
against the United States. In response to requests from the
Committee, the FBI and the Inspector General provided
information on the terrorism financing investigation. Senators
Grassley, Specter and Leahy also expressed concerns to the FBI
and the Inspector General that Agent German appears to have
suffered retaliation from the FBI as a result of his reporting
the mishandling of this investigation to his FBI superiors and
to Congress. A report prepared by the Inspector General
concluded that an investigation of the FBI's handling of Agent
German's information indicated that he had, in fact, suffered
acts of retaliation from high-ranking officials of the FBI. The
Committee continues to examine this matter.
Mismanagement of Resources Available for Counterterrorism
Investigations and Retaliation Against FBI Whistleblower
Senator Grassley wrote a joint letter with Senate Judiciary
Committee Chairman Specter and Ranking Member Leahy to FBI
Director Robert Mueller regarding the FBI failure to utilize
the experience and expertise of Bassem Youssef, an Arab-
American Special Agent of the FBI. After meeting with his
superiors, Agent Youssef suffered acts of retaliation by the
FBI, including the refusal to transfer Youssef to the agency's
International Terrorism Operations Section (``ITOS''). After
the FBI received the letter of complaint from Senators
Grassley, Specter and Leahy, the agency relented and
transferred Agent Youssef to ITOS, where he now serves as a
supervisory agent. Senator Grassley will continue to monitor
this situation.
FBI Mishandling of Information Relating to Terrorist Activities
Senator Grassley wrote letters to FBI Director Robert
Mueller regarding the mishandling of critical information
available to the FBI in the months leading up to the September
11, 2001, terrorist attack on the United States. One of the
letters made reference to testimony given by Minneapolis,
Minnesota, FBI Agent Harry Samit during the sentencing hearing
for convicted terrorist Zacarias Moussaoui. Agent Samit
testified during that hearing that attempts by the Minneapolis
office of the FBI to investigate Moussaoui were thwarted at the
agency's headquarters level by FBI supervisors who refused to
support the investigation. Agent Samit even described the
refusal of those supervisors to support the Moussaoui
investigation as being ``criminally negligent.'' Inquiries by
Congress revealed that these supervisors, rather than being
disciplined or dismissed from service, had actually been
promoted and that one of them had even been promoted to a
position in which he supervised all of the terrorism
investigations being conducted by the FBI in one of America's
largest cities. Senator Grassley's letter requested information
on how and why the FBI reached the decision to promote this
supervisor. The FBI responded to Senator Grassley's inquiries
with a letter advising him that the FBI had referred
allegations concerning the handling of the Moussaoui
investigation to the DOJ-OIG, for investigation. The letter
from the FBI further reported that the DOJ-OIG had completed
their investigation and that the DOJ-OIG was seeking permission
of the Court to release to the public that portion of the
report that related to the FBI's investigation of Moussaoui.
Senator Grassley will continue to monitor this situation as is
warranted.
Misconduct by FBI Officials in Saudi Arabian FBI Office
Senator Grassley joined with Senate Judiciary Committee
Chairman Specter and Ranking Member Leahy in writing letters to
FBI Director Robert Mueller regarding allegations of misconduct
and mismanagement in the Riyadh, Saudi Arabia FBI Legat Office.
The allegations included failures by the FBI Legat in Saudi
Arabia to pursue thousands of investigative leads,
inappropriate behavior by senior FBI officials assigned to the
Legat Office, providing prostitutes to FBI agents on temporary
duty assignments to the Legat Office, and the destruction by
FBI officials of documents that related to the investigation of
the September 11, 2001, terrorist attacks on the United States.
The letter requested that the FBI provide the Committee with
inspection reports for the Riyadh office and a briefing from
FBI officials on steps being taken by the FBI to correct the
problems in that office. The FBI provided Congress with a
briefing on steps taken by the FBI to correct the reported
problems in the Riyadh office and provided copies of the
office's inspection reports. This matter is now closed.
Preferential Treatment Wrongfully Being Afforded to Supervisory FBI
Personnel in Disciplinary Matters
Senator Grassley wrote letters to FBI Director Robert
Mueller concerning the decision reached by FBI officials who
allegedly retaliate against Special Agent Cecilia Woods for
reporting to FBI officials that her former supervisor Gil
Torrez had engaged in an inappropriate sexual relationship with
a paid FBI informant. Torrez was then the FBI's Legal Attache
for Panama. After reporting the misconduct by Torrez, Agent
Woods alleged that she was targeted by the FBI for reporting
the misconduct and was subjected by the FBI to a series of
disciplinary actions that ultimately resulted in her early
retirement from the agency. Circumstances support that these
actions against Woods were taken for the purpose of retaliating
against her for reporting that supervisor, Torrez, eventually
admitted to engaging in an illicit sexual relationship with a
paid FBI informant and was also investigated and disciplined.
After discovering that Torrez's employment had not been
terminated by the FBI, despite Torrez having engaged in a
sexual relationship with a paid informant, the Committee
requested a copy of the FBI's written standards for discipline
of agents involved in various acts of misconduct. Senator
Grassley found it disturbing that the FBI's written standards
of conduct do not mandate immediate dismissal from the FBI of
all agents who engage in sexual misconduct with paid
informants. Senator Grassley will continue to follow-up on this
matter.
Retaliation by FBI Against Agent Who Reported Deficiencies in FBI
Counterterrorism Efforts
Senator Grassley and Senator Leahy wrote letters to U.S.
Attorney General Alberto Gonzales and FBI Director Robert
Mueller concerning acts of retaliation taken by the FBI against
Special Agent Robert G. Wright. It was alleged that once Agent
Wright made public statements criticizing the commitment and
ability of many FBI supervisors to conduct international
terrorism investigations, he was subjected to multiple
disciplinary investigations. Agent Wright continues to be
employed by the FBI. This matter is now closed.
Information Sharing by Counterterrorism Agencies and Compatibility of
Their Computer Systems
Senator Grassley wrote a letter to National Intelligence
Director John Negroponte concerning persistent failures by the
FBI and DHS to develop computer information systems that are
compatible with one another. This system incompatibility
prevents the agencies from effectively sharing information with
one another and additionally diminishes the ability of the
intelligence community to gather and analyze intelligence from
the two systems. Director Negroponte was asked in the letter to
describe any efforts being made by his office to pursue better
coordination and standardization of computer databases and to
thereby ensure seamless sharing of information among Federal
agencies that are a part of the intelligence community. In a
reply letter, the Office of the Director of National
Intelligence (``DNI'') reported that in response to
Presidential directives mandating the use of common information
sharing standards across the Federal Government, the Office of
the Program Manager, Information Sharing Environment (``ISE'')
had been created to ensure that all Federal systems that
contain terrorism information are compatible. The DNI further
reported that the ISE was working to resolve all issues
relating to the compatibility of the Federal systems, to
specifically include those used by DOJ and DHS. Senator
Grassley will continue to monitor this situation.
Mishandling of Anthrax Investigation
Senator Grassley wrote a letter to Attorney General Alberto
Gonzales regarding apparent mishandling by the FBI of the
agency's investigation of the October, 2001, mailings of
letters laced with anthrax to several targets in the United
States, including members of Congress and the national media.
The investigation has not resulted in any persons being charged
with this crime. The letter expressed concern that the
investigation appears to have been hindered by the FBI's
institutional resistance to criticism and dissent and by the
misallocation of resources toward protecting the FBI's image
rather than protecting the United States. Senator Grassley also
expressed dissatisfaction with the FBI's refusal to provide
Congress with periodic briefings on the status of the
investigation. He requested both a briefing on the status of
the investigation and a number of documents and records
relating to the case. The Attorney General responded with a
refusal to provide either the requested documents or a briefing
on the status of the investigation, citing DOJ's policy against
disclosing non-public information concerning pending law
enforcement and litigation issues. Senator Grassley along with
34 other Members of Congress requested a briefing from the FBI.
The Committee is currently awaiting a response.
Intervention on Behalf of FBI Special Agent
Senator Grassley wrote a letter to FBI Director Robert
Mueller on behalf of an Iowa constituent who had been selected
for employment by the FBI as a Special Agent. After being
offered employment and in reliance upon the FBI's job offer,
the selectee had sold his business and entered into a non-
competitive agreement. Only a few days before he was scheduled
to begin training at the FBI Academy, the agency withdrew its
offer of employment. Senator Grassley requested an explanation
for the FBI's decision to withdraw the offer of employment. The
FBI reviewed the decision to withdraw the employment offer and
decided to re-extend the offer to the applicant. He is now
serving as a Special Agent of the FBI. This matter is now
closed.
Weaknesses in FBI Linguistic Capabilities
Senator Grassley and Senator Leahy continued to receive
periodic information from the FBI concerning efforts to improve
the agency's linguistic translations capabilities and security.
Senator Grassley and Senator Leahy first contacted the FBI in
2002 to express their concerns over reports that the FBI was
unable to quickly and accurately translate recorded
conversations and documents in languages most commonly used by
terrorists. Since 2002, the FBI has invested considerable
effort and resources toward improving the agency's language
capabilities. Senator Grassley will continue to monitor the
agency's language translation program to ensure that the agency
will be prepared to protect the United States from future
terrorist attacks.
Department of Homeland Security
Fraud, Abuse and Mismanagement at CIS
Senator Grassley wrote a letter to U.S. Citizenship and
Immigration Service (``CIS'') Director Emilio Gonzalez
regarding reports of fraud, abuse and mismanagement at CIS. The
letter from Senator Grassley was prompted by reports of delayed
and incomplete evaluations by CIS of many applications for
immigration benefits. The letter also requested information on
allegations that some 2,500 alien files that contained
derogatory information had not been turned over to ICE agents
for criminal investigation. Perhaps most significant were
reports that CIS failed to conduct timely internal
investigations of more than 2,000 complaints of misconduct by
CIS employees. At the time of the letter, CIS reportedly
assigned only five field investigators to the unit responsible
for conducting internal investigations of employee misconduct.
Senator Grassley requested access to the written
complaints received or developed by CIS so that they could be
reviewed by the Committee in an effort to determine the
severity of the employee misconduct alleged in them. Committee
staff reviewed more than 1,500 written complaints, identified
the complaints that appeared to require additional scrutiny,
and requested additional information on the matters alleged in
those complaints. Director Gonzalez subsequently met with
Senator Grassley and Committee staff and pledged that in the
future, his office will be committed to making national
security and fraud prevention the number one priority at CIS.
Senator Grassley plans to follow-up on this matter.
Lack of Cooperation Between DHS Agencies
Senator Grassley wrote a letter to U.S. Customs and Border
Protection (``CBP'') Commissioner Robert Bonner concerning
reports that thousands of immigration benefits adjudicators for
CIS had been denied access to information contained in CBP's
computer databases. Much of the information contained in those
CBP databases is needed by the CIS immigration benefits
adjudicators to determine whether applications for immigrations
benefits should be approved. The reason the CIS adjudicators
were denied access was the expiration of their security
clearances, which are required by CBP for all persons seeking
access to the CBP computer databases. In the letter, Senator
Grassley expressed his concern that CIS immigration benefits
adjudicators were being denied the tools necessary to do their
jobs and that this situation posed a national security risk. He
also requested information on the reasons for the delays in
granting security clearances to CIS immigration benefits
adjudicators and asked for information on steps being taken by
CBP to increase inter-agency cooperation with CIS. Senator
Grassley plans to follow-up on this matter.
Criminal Sexual Misconduct by Senior DHS Official
Senator Grassley wrote letters to Secretary of Homeland
Security Michael Chertoff regarding the department's response
to the involvement of ICE senior executive Frank Figueroa in
criminal misconduct involving a minor female. Figueroa, who was
then the Special Agent in Charge of the ICE office in Tampa,
Florida, was convicted on Florida state criminal charges
related to an incident in which he exposed himself to a minor
female seated in the food court of a Florida shopping mall.
After his arrest by local law enforcement officers, Figueroa
was allowed by ICE to use his accrued sick and annual leave to
reach his retirement eligibility date and to then retire from
ICE with a full lifetime pension. Senator Grassley objected to
the decision reached by ICE officials to allow Figueroa to
retire with a full pension after being found guilty of having
committed sex offenses against a minor. Senator Grassley
requested a briefing from ICE officials on the matter. During
the briefing, ICE officials reported to Committee staffers that
Merit Service Protection Board (``MSPB'') guidelines and the
timeframes required for prosecution of criminal cases in the
state of Florida combined to make it impossible for ICE to be
successful in any efforts to terminate Figueroa's employment
prior to his retirement eligibility date. This matter is now
closed.
Potentially Dangerous Errors in Processing Applications for Immigration
Benefits
Senator Grassley wrote a letter to CIS Director Emilio
Gonzalez regarding information received by the Committee from
an employee of CIS indicating that CIS adjudication officers
had not been properly trained in conducting queries of law
enforcement databases. The whistleblower reported that as a
result of this lack of training, CIS adjudication officers were
not conducting all of the database queries necessary to
determine whether or not applicants for immigration benefits
had been identified by law enforcement agencies as suspected
terrorists, sex offenders, or other criminal suspects. As a
result, it is possible that immigration benefits were granted
by CIS to persons whose presence in this nation poses a danger
to national security and public safety. Senator Grassley has
requested a review of all immigration benefits granted by CIS
and a briefing on steps taken by CIS to correct this problem
with the agency's operations.
Appointment of Unqualified Persons to Key Counterterrorism Positions
Senator Grassley wrote a letter to DNI John Negroponte
expressing his concerns over the appointment of Gary Bald as
head of the National Security Service. The concerns relate to
the testimony given by Bald in response to questions that he
answered during the taking of a sworn deposition. The questions
related to Bald's position on the importance of nominees to key
counterterrorism investigative positions having subject matter
expertise on topics that are related to counterterrorism.
Bald's answers indicated that he did not believe that subject
matter expertise on topics related to counterterrorism was
necessary for candidates to be considered for appointment to
key counterterrorism investigative positions. In the letter,
Senator Grassley expressed his belief to Director Negroponte
that senior managers in the nation's war on terrorism need to
have unquestionable credentials, substantial counterterrorism
experience, and subject matter expertise. Senator Grassley will
continue to monitor counterterrorism positions in the United
States government must not be positions for on-the-job
training.
Admission of Taliban Spokesman into United States on Student Visa
Senator Grassley wrote a letter to Secretary of State
Condoleezza Rice and Secretary of Homeland Security Michael
Chertoff regarding the admission of former Taliban spokesman
Sayed Rahmatullah Hashemi into the United States on a student
visa. Media reports indicate that Hashemi, while serving as a
leader of the Taliban, made public statements defending both
the terrorist activities of Osama bin Laden and the 2001
destruction by the Taliban of two ancient towering statues of
Buddha that had been carved into some cliffs in Afghanistan.
Senator Grassley requested copies of Hashemi's application for
a student visa and all other documents that were used by the
U.S. State Department in reaching the decision to grant
Hashemi's application to enter the United States on a student
visa. Those documents were provided to the Committee by the
U.S. State Department and the documents are being analyzed by
Committee staff to identify those flaws and/or deficiencies in
the visa application and/or the application review process that
resulted in the admission of Hashemi into the United States.
Miscellaneous
Waste, Fraud, Conflict of Interest, and Inappropriate Political
Influence Related to FAA Contractor
Senator Grassley wrote to U.S. Department of Transportation
(``DOT'') Inspector General Kenneth Mead regarding reported
allegations of waste, fraud, conflict of interest, and
inappropriate political influence related to a contract between
the Federal Aviation Administration (``FAA'') and Crown
Consulting, Inc., for the development of computer software for
the FAA's military operations division. Information received by
the Committee indicated that Crown Consulting, Inc., failed to
fulfill the requirements of the contract and had engaged in
suspicious activities such as billing for some $30,000 in
office furniture that was unaccounted for, as well as billing
for leased properties in Australia, a $3,500 per month auto
lease, and unauthorized and unexplained trips to Las Vegas,
Nevada,. The FAA terminated the contract for convenience rather
than for negligence on behalf of the contractor. The Committee
intends to follow-up on this matter.
Costs of Relocating Government Employees
Chairman Grassley continued action on his earlier
investigation into relocation expenses for Federal employees.
Accordingly, he sent letters to Joshua Bolton, Director of the
Office of Management and Budget, and Stephen A. Perry,
Administrator of the General Services Administration (``GSA'')
to inquire about delays in responding to past questions about
GSA's efforts to ensure that it received complete, accurate
data about employee moves. Further, Senator Grassley inquired
about measures GSA had taken to revise faulty Relocation Income
Tax Allowance provisions. GSA provided the requested
information and worked with the Government-wide Relocation
Advisory Board (``GRAB'') to address the Chairman's concerns.
The advisory board ultimately developed a report with multiple
recommendations for improving government relocation practices
in the areas of administration and management, budget tracking
and data collection, relocation reimbursement, residence
transactions, and transportation and storage. The Committee
will continue to monitor GSA's efforts to implement the GRAB
recommendations.
Chairman Grassley also sent a separate series of letters to
the Postmaster General inquiring about miscellaneous relocation
expense allowance payments of $10,000, $25,000, and in one case
$50,000 to United States Postal Service (``USPS'') executives.
These allowances were paid in addition to other relocation
related costs and were not required to be supported by
receipts, allowing employees to pocket any money not used for
relocation related expenses. After a review of its benefit
policies, the USPS limited the miscellaneous relocation expense
to the equivalent of two weeks' base pay.
Backlogged Whistleblower Complaints and Disclosure Cases
Chairman Grassley wrote a letter to the Office of Special
Counsel (``OSC'') with respect to wide-spread reports of
backlogged whistleblower cases at the office. The OSC's primary
mission is to safeguard the merit system by protecting Federal
employees and applicants from prohibited personnel practices,
especially reprisal for whistleblowing. In conjunction with
staff of the U.S. House of Representatives, Committee on
Government Reform, an internal review was conducted of OSC's
handling and disposition of backlogged whistleblower complaints
and disclosures cases. This bi-partisan review examined closed
cases that were handled by OSC's Complaints Examining Unit
(``CEU'') and Disclosure Unit (``DU''). In particular, the
review team focused on the disposition and resolution of
hundreds of backlogged cases in the CEU and DU. In conducting
this review, the team acknowledged that there were historical
problems in the OSC that gave rise to the backlog of cases. The
OSC initiated and organized a Special Projects Unit (``SPU'')
that ultimately resolved the issue of backlogged whistleblower
disclosure and Prohibited Personnel Practice (``PPP'') cases.
The key factors in the resolution of the backlog by the SPU
included the recruitment of subject matter experts to handle
and evaluate cases and policy and procedural changes to prevent
the backlog from reoccurring.
Committee staff also examined the number of cases in the
Investigations and Prosecution Division (``IPD'') including the
number of cases pending over and above the statutory 240-day
determination period. This statutory time-frame determination
period mandated by law that no later than 240-days after the
date of receipt of an allegation of a PPP, the OSC is to make a
determination whether there are reasonable grounds to believe a
PPP has occurred, exists, or is to be taken. If the OSC is
unable to make the required determination within the statutory
240-day time period, an additional period of time for
determination shall be granted; if agreed upon by OSC and the
person submitting the allegation. The initial concern was that
in reducing the backlog of cases in the CEU and increasing the
rate of referrals, OSC may have increased the backlog of cases
in the IPD. The review discerned that this did not occur and
the number of cases in the IPD did not disproportionably
increase in relation to the decrease of cases in the CEU. The
matter is currently closed.
Use of Offshore Vehicles and Transactions to Evade Taxes
Chairman Grassley and Ranking Member Baucus initiated an
investigation into the use of offshore vehicles and
transactions to evade U.S. taxes. The Committee suspects that
offshore hedge funds may provide a vehicle for domestic
investors to evade U.S. tax by masquerading as foreign
investors through the use of offshore corporations and trusts,
especially in tax haven countries. The Chairman and Ranking
Member requested the assistance of the GAO, Forensic Audit and
Special Investigations unit to conduct and develop this
investigation. The Committee was interested in having GAO
investigators attempt to identify specific offshore vehicles or
abusive schemes used to evade U.S. taxes, particularly any
involving hedge funds. In addition, the Committee also
requested that GAO investigators test due diligence of
financial institutions involved in any transactions conducted
offshore, particularly with regard to establishing accounts and
beneficial ownership. The Committee requested that GAO develop
a plan to perform undercover operations and to use innovative
techniques necessary to show how financial institutions and
other entities assist U.S. taxpayers in these abusive schemes.
The Chairman authorized the GAO, pursuant to section 6103(f)
(4) of the Internal Revenue Code, to have access to the
necessary protected tax information to complete this requested
work. GAO's work is ongoing and the Committee is awaiting
completion of the investigation and subsequent report.
USDA/APHIS, VS, NVSL and CVB
Senator Grassley wrote to the Secretary of the USDA to
request a briefing on the various problems and issues arising
at the Animal Plant Health Inspection Service, Veterinary
Services, National Veterinary Services Laboratory (``NVSL'')
and Center for Veterinary Biologics (``CVB''), referred to
collectively as the Labs, in Ames, Iowa. Senator Grassley was
inquiring into allegations that the Labs have been grossly
mismanaged. Both current and former employees of the Labs
contacted his office about systemic and long-standing problems
that were not being addressed by USDA management. Interviews
conducted with both current and past employees of the Labs
detailed how they are mismanaged and the employees were working
in a climate of fear and intimidation. The interviewees claimed
that this mismanagement resulted in the retirement of competent
employees, overall poor morale, a loss of creativity and a fear
of reporting wrongdoing and mistakes. These allegations were
coupled with yet additional allegations of discrimination,
cronyism and favoritism where the best qualified candidates
were neither being hired nor promoted to key positions.
According to those interviewed and the documents reviewed, it
appeared that the USDA was advised and had been aware of these
concerns for years.
The requested briefing was provided to Committee staff by
the USDA (acting) Under Secretary for Marketing and Regulatory
Programs. The Under Secretary outlined the USDA's efforts to
address the allegations of mismanagement and employee problems
reported at the Labs. It was reported that the USDA had
initiated steps to begin addressing these longstanding
complaints and allegations including conducting an off-site
forum with employees of the Labs and members of the USDA
Coalition of Minority Employees, replacing the existing NVSL
Director and appointing an (interim) Director, with significant
human resources, planning, evaluation, and management
experience. Committee staff was further advised that the
(interim) Director would conduct a complete analysis of the
workforce and develop a plan to correct any problems that may
exist. These changes were a step in the right direction;
however, problems still linger at the CVB. The Chairman will
continue to monitor USDA and its efforts to address and
alleviate these problems.
Legal Services Corporation
Senator Grassley, along with Congressman Christopher
Cannon (R-UT) and Senate Health, Education, Labor and Pensions
Chairman Michael Enzi (R-WY) began an investigation into
inappropriate expenditures by the Legal Services Corporation
(``LSC''). The primary mission of the LSC is to provide legal
counsel to underprivileged members of our society. The Members
became concerned after learning that many of the expenditures
at LSC seemed excessive and not necessarily indicative of the
mission of the group. The investigation uncovered widespread
mismanagement of funds and lavish expenditures by members of
the LSC board. A few examples of mismanagement include using a
limousine service for meetings in-town, having the board's
annual meeting at a luxury hotel while adequate space was
available at LSC headquarters, and even excessive purchases
such as $14 for a cookie at an annual meeting. After a series
of inquiries and meetings with the respective congressional
staffs, LSC has now made proactive changes in order to prevent
the aforementioned problems. Specifically, LSC is taking the
following steps: following General Services Administration
(``GSA'') policy on first class travel and meal purchases; the
LSC president is doing a cost comparison in order to minimize
LSC reimbursements for her travel; eliminating a 200 percent
per diem for board members; holding its annual meeting at LSC
headquarters; minimizing other meeting related expenses such as
cookies and other unnecessary items; minimizing excessive meal
costs; following GSA standards for lodging; developing a policy
regarding chauffeured car services; revising its policy
regarding business entertainment; revising its personnel
manual; and establishing direct access between the LSC
treasurer and the Committee on Finance. Congress also requested
that the GAO conduct two reviews of LSC and will continue to
monitor LSC's progress in improving its operations.
Abramoff Investigation
Investigations into the activities of Jack Abramoff began
after a Washington Post story by Susan Schmidt in February,
2004 entitled ``A Jackpot From Indian Gaming Tribes; PR Firms
Paid $45 million Over 3 Years.''
Department of Justice investigations culminated in a guilty
plea by Jack Abramoff to charges of conspiracy, mail and wire
fraud, bribery, and evasion of Federal income tax in January of
2006.
The Senate Finance Committee staff investigation examined
the use and potential abuse by Mr. Abramoff of tax-exempt
organizations. This investigation continued a long-term effort
by the Finance Committee to oversee the activities of
nonprofits and to seek reforms in the tax law affecting these
organizations.
Subpoenas were issued to the Preston Gates and Greenberg
Traurig law firms in the fall of 2005. After reviewing
materials obtained through those subpoenas, mostly e-mail
correspondence, the Democratic staff identified potentially
troubling transactions with five nonprofits.
A report issued in October, 2006 entitled ``Investigation
of Jack Abramoff's Use of Tax-Exempt Organizations'' outlined
these transactions and the issues arising from the use of
nonprofits by Mr. Abramoff for lobbying and public relations
for his clients. Sufficiently serious issues were identified to
justify referring this report and the materials gathered by the
Committee staff to the Department of Justice, the Department of
Treasury, and the Internal Revenue Service.
The Democratic staff also identified a number of reforms
that could be considered by the Finance Committee in the
nonprofit sector.
NOMINATIONS
Jeffrey Robert Brown, of Illinois, to be a Member of the Social
Security Advisory Board for a term expiring Sept. 30,
2008, vice Bradley D. Belt, resigned, to which position
he was appointed during the last recess of the Senate.
Dec. 5, 2006--Received in the Senate and referred to the
Committee on Finance.
Dec. 6, 2006--Committee on Finance. Ordered to be reported
favorably.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Social Security Administration)
Andrew G. Biggs, of New York, to be Deputy Commissioner of
Social Security for a term expiring Jan. 19, 2013.
(Reappointment)
Nov. 13, 2006--Received in the Senate and referred to the
Committee on Finance.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Social Security Administration)
Andrew G. Biggs, of New York, to be Deputy Commissioner of
Social Security for the remainder of the term expiring
Jan. 19, 2007, vice James B. Lockhart III.
Nov. 13, 2006--Received in the Senate and referred to the
Committee on Finance.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Social Security Administration)
Anthony W. Ryan, of Massachusetts, to be an Assistant Secretary
of the Treasury, vice Timothy S. Bitsberger.
Nov. 13, 2006--Received in the Senate and referred to the
Committee on Finance.
Dec. 5, 2006--Committee on Finance. Hearings held.
Dec. 6, 2006--Committee on Finance. Ordered to be reported
favorably.
Dec. 6, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar
No. 1022. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Robert F. Hoyt, of Maryland, to be General Counsel for the
Department of the Treasury, vice Arnold I. Havens,
resigned.
Sept. 29, 2006--Received in the Senate and referred to the
Committee on Finance.
Nov. 14, 2006--Committee on Finance. Hearings held.
Dec. 6, 2006--Committee on Finance. Ordered to be reported
favorably.
Dec. 6, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar
No. 1023. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Michele A. Davis, of Virginia, to be an Assistant Secretary of
the Treasury, vice Antonio Fratto.
Sept. 28, 2006--Received in the Senate and referred to the
Committee on Finance.
Nov. 14, 2006--Committee on Finance. Hearings held.
Dec. 6, 2006--Committee on Finance. Ordered to be reported
favorably.
Dec. 6, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar
No. 1021. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Phillip L. Swagel, of Maryland, to be an Assistant Secretary of
the Treasury, vice Mark J. Warshawsky, resigned.
Sept. 26, 2006--Received in the Senate and referred to the
Committee on Finance.
Dec. 5, 2006--Committee on Finance. Hearings held.
Dec. 6, 2006--Committee on Finance. Ordered to be reported
favorably.
Dec. 6, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar
No. 1020. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Dana K. Bilyeu, of Nevada, to be a Member of the Social
Security Advisory Board for a term expiring Sept. 30,
2010, vice Gerald M. Shea, term expired.
Sept. 20, 2006--Received in the Senate and referred to the
Committee on Finance.
Dec. 6, 2006--Committee on Finance. Ordered to be reported
favorably.
Dec. 6, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar
No. 1019. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Social Security Administration)
Mark J. Warshawsky, of Maryland, to be a Member of the Social
Security Advisory Board for a term expiring Sept. 30,
2012, vice Harold Daub, term expired.
Sept. 20, 2006--Received in the Senate and referred to the
Committee on Finance.
Dec. 6, 2006--Committee on Finance. Ordered to be reported
favorably.
Dec. 6, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar
No. 1018. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Social Security Administration)
Michael J. Astrue, of Massachusetts, to be Commissioner of
Social Security for a term expiring Jan. 19, 2013, vice
Jo Anne Barnhart.
Sept. 15, 2006--Received in the Senate and referred to the
Committee on Finance.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Social Security Administration)
Daniel Meron, of Maryland, to be General Counsel of the
Department of Health and Human Services, vice Alex
Azar, II, to which position he was appointed during the
last recess of the Senate.
Sept. 7, 2006--Received in the Senate and referred to the
Committee on Finance.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Department of Health and Human Services)
Irving A. Williamson, of New York, to be a Member of the United
States International Trade Commission for the term
expiring June 16, 2014, vice Stephen Koplan, term
expired.
Sept. 7, 2006--Received in the Senate and referred to the
Committee on Finance.
Dec. 5, 2006--Committee on Finance. Hearings held.
Dec. 6, 2006--Committee on Finance. Ordered to be reported
favorably.
Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar
No. 1016. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 6, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar
No. 1016. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: United States International Trade Commission)
Dean A. Pinkert, of Virginia, to be a Member of the United
States International Trade Commission for the term
expiring Dec. 16, 2015, vice Jennifer Anne Hillman,
term expiring.
Sept. 7, 2006--Received in the Senate and referred to the
Committee on Finance.
Dec. 5, 2006--Committee on Finance. Hearings held.
Dec. 6, 2006--Committee on Finance. Ordered to be reported
favorably.
Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar
No. 1015. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 6, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar
No. 1015. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: United States International Trade Commission)
Robert K. Steel, of Connecticut, to be an Under Secretary of
the Department of the Treasury, vice Randal Quarles.
Sept. 6, 2006--Received in the Senate and referred to the
Committee on Finance.
Sept. 21, 2006--Committee on Finance. Hearings held.
Sept. 27, 2006--Committee on Finance. Ordered to be reported
favorably.
Sept. 27, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Sept. 27, 2006--Placed on Senate Executive Calendar. Calendar
No. 935. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Sept. 29, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Peter E. Cianchette, of Maine, to be a Member of the Internal
Revenue Service Oversight Board for a term expiring
Sept. 14, 2010, vice Nancy Killefer, term expired.
Sept. 5, 2006--Received in the Senate and referred to the
Committee on Finance.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Department of the Treasury)
John K. Veroneau, of Virginia, to be a Deputy United States
Trade Representative, with the Rank of Ambassador, vice
Susan C. Schwab, resigned.
Aug. 3, 2006--Received in the Senate and referred to the
Committee on Finance.
Sept. 21, 2006--Committee on Finance. Hearings held.
Sept. 27, 2006--Committee on Finance. Ordered to be reported
favorably.
Sept. 27, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Sept. 27, 2006--Placed on Senate Executive Calendar. Calendar
No. 934. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Sept. 29, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Executive Office of the President)
Henry M. Paulson, Jr., of New York, to be Secretary of the
Treasury, vice John W. Snow, resigned.
June 19, 2006--Received in the Senate and referred to the
Committee on Finance.
June 27, 2006--Committee on Finance. Hearings held.
June 28, 2006--Committee on Finance. Ordered to be reported
favorably.
June 28, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
June 28, 2006--Placed on Senate Executive Calendar. Calendar
No. 745. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
June 28, 2006--By unanimous consent agreement, debate set for
June 28, 2006.
June 28, 2006--Considered by Senate pursuant to previous
order.
June 28, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Eric Solomon, of New Jersey, to be an Assistant Secretary of
the Treasury, vice Pamela F. Olson, resigned.
May 9, 2006--Received in the Senate and referred to the
Committee on Finance.
July 13, 2006--Committee on Finance. Hearings held.
Dec. 7, 2006--Committee on Finance. Ordered to be reported
favorably.
Dec. 7, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 7, 2006--Placed on Senate Executive Calendar. Calendar
No. 1024. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Susan C. Schwab, of Maryland, to be United States Trade
Representative, with the rank of Ambassador
Extraordinary and Plenipotentiary, vice Robert J.
Portman.
May 3, 2006--Received in the Senate and referred to the
Committee on Finance.
May 16, 2006--Committee on Finance. Hearings held.
May 22, 2006--Committee on Finance. Ordered to be reported
favorably.
May 22, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
May 22, 2006--Placed on Senate Executive Calendar. Calendar
No. 663. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
June 7, 2006--By unanimous consent agreement, debate and vote
set for June 8, 2006.
June 8, 2006--Considered by Senate pursuant to order of June
7, 2006.
June 8, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Executive Office of the President)
Deborah L. Wince-Smith, of Virginia, to be a Member of the
Internal Revenue Service Oversight Board for a term
expiring Sept. 14, 2010, vice Larry L. Levitan, term
expired.
May 1, 2006--Received in the Senate and referred to the
Committee on Finance.
Nov. 14, 2006--Committee on Finance. Hearings held.
Dec. 6, 2006--Committee on Finance. Ordered to be reported
favorably.
Dec. 6, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar
No. 1014. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Catherine G. West, of the District of Columbia, to be a Member
of the Internal Revenue Service Oversight Board for a
term expiring Sept. 14, 2008, vice Karen Hastie
Williams, term expired.
May 1, 2006--Received in the Senate and referred to the
Committee on Finance.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Department of the Treasury)
Donald V. Hammond, of Virginia, to be a Member of the Internal
Revenue Service Oversight Board for a term expiring
Sept. 21, 2010, vice Robert M. Tobias, term expired.
May 1, 2006--Received in the Senate and referred to the
Committee on Finance.
Sept. 29, 2006--Returned to the President under the
provisions of Senate Rule XXXI, paragraph 6 of the
Standing Rules of the Senate at adjournment of the
Senate on Sept. 29, 2006.
(Organization: Department of the Treasury)
Paul Cherecwich, Jr., of Utah, to be a Member of the Internal
Revenue Service Oversight Board for a term expiring
Sept. 14, 209, vice Charles L. Kolbe, term expired.
May 1, 2006--Received in the Senate and referred to the
Committee on Finance.
Nov. 14, 2006--Committee on Finance. Hearings held.
Dec. 6, 2006--Committee on Finance. Ordered to be reported
favorably.
Dec. 6, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar
No. 1013. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
W. Ralph Basham, of Virginia, to be Commissioner of Customs,
Department of Homeland Security, vice Robert C. Bonner,
resigned.
Jan. 31, 2006--Received in the Senate and referred to the
Committee on Finance.
Apr. 5, 2006--Committee on Finance. Hearings held.
May 18, 2006--Committee on Finance. Ordered to be reported
favorably.
May 18, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
May 18, 2006--Placed on Senate Executive Calendar. Calendar
No. 640. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
May 26, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Department of Homeland Security)
Daniel Meron, of Maryland, to be General Counsel of the
Department of Health and Human Services, vice Alex Azar
II.
Nov. 16, 2005--Received in the Senate and referred to the
Committee on Finance.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Department of Health and Human Services)
Richard T. Crowder, of Virginia, to be Chief Agricultural
Negotiator, Office of the United States Trade
Representative, with the rank of Ambassador, vice Allen
Frederick Johnson, resigned.
Nov. 16, 2005--Received in the Senate and referred to the
Committee on Finance.
Dec. 14, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-502.
Dec. 16, 2005--Committee on Finance. Ordered to be reported
favorably.
Dec. 16, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 16, 2005--Placed on Senate Executive Calendar. Calendar
No. 482. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 17, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Executive Office of the President)
David M. Spooner, of Virginia, to be an Assistant Secretary of
Commerce, vice James J. Jochum, resigned.
Nov. 10, 2005--Received in the Senate and referred to the
Committee on Finance.
Dec. 14, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-502.
Dec. 16, 2005--Committee on Finance. Ordered to be reported
favorably.
Dec. 16, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 16, 2005--Placed on Senate Executive Calendar. Calendar
No. 481. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 17, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of Commerce)
Thomas R. Saving, of Texas, to be a Member of the Board of
Trustees of the Federal Supplementary Medical Insurance
Trust Fund for a term of four years. (Reappointment)
Nov. 7, 2005--Received in the Senate and referred to the
Committee on Finance.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Federal Insurance Trust Funds)
Thomas R. Saving, of Texas, to be a Member of the Board of
Trustees of the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insurance Trust
Fund for a term of four years. (Reappointment)
Nov. 7, 2005--Received in the Senate and referred to the
Committee on Finance.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Federal Insurance Trust Funds)
John L. Palmer, of New York, to be a Member of the Board of
Trustees of the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insurance Trust
Fund for a term of four years. (Reappointment)
Nov. 7, 2005--Received in the Senate and referred to the
Committee on Finance.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Federal Insurance Trust Funds)
Thomas R. Saving, of Texas, to be a Member of the Board of
Trustees of the Federal Hospital Insurance Trust Fund
for a term of four years. (Reappointment)
Nov. 7, 2005--Received in the Senate and referred to the
Committee on Finance.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Federal Insurance Trust Funds)
John L. Palmer, of New York, to be a Member of the Board of
Trustees of the Federal Hospital Insurance Trust Fund
for a term of four years. (Reappointment)
Nov. 7, 2005--Received in the Senate and referred to the
Committee on Finance.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Federal Insurance Trust Funds)
John L. Palmer, of New York, to be a Member of the Board of
Trustees of the Federal Supplementary Medical Insurance
Trust Fund for a term of four years. (Reappointment)
Nov. 7, 2005--Received in the Senate and referred to the
Committee on Finance.
Dec. 9, 2006--Returned to the President under the provisions
of Senate Rule XXXI, paragraph 6 of the Standing Rules
of the Senate.
(Organization: Federal Insurance Trust Funds)
Susan C. Schwab, of Maryland, to be a Deputy United States
Trade Representative, with the rank of Ambassador, vice
Linnet F. Deily, resigned.
Nov. 2, 2005--Received in the Senate and referred to the
Committee on Finance.
Nov. 10, 2005--Senate Committee on Finance discharged by
Unanimous Consent.
Nov. 10, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Executive Office of the President)
Susan C. Schwab, of Maryland, to be a Deputy United States
Trade Representative, with the rank of Ambassador, vice
Peter F. Allgeier.
Oct. 6, 2005--Received in the Senate and referred to the
Committee on Finance.
Oct. 18, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-371.
Oct. 25, 2005--Committee on Finance. Ordered to be reported
favorably.
Oct. 25, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Oct. 25, 2005--Placed on Senate Executive Calendar. Calendar
No. 404. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Oct. 28, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Executive Office of the President)
Antonio Fratto, of Pennsylvania, to be an Assistant Secretary
of the Treasury, vice Robert Stanley Nichols.
Oct. 6, 2005--Received in the Senate and referred to the
Committee on Finance.
Dec. 14, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-502.
Dec. 16, 2005--Committee on Finance. Ordered to be reported
favorably.
Dec. 16, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 16, 2005--Placed on Senate Executive Calendar. Calendar
No. 480. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 17, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
David Steele Bohigian, of Missouri, to be an Assistant
Secretary of Commerce, vice William Henry Lash, III,
resigned.
Oct. 6, 2005--Received in the Senate and referred to the
Committee on Finance.
Dec. 14, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-502.
Dec. 16, 2005--Committee on Finance. Ordered to be reported
favorably.
Dec. 16, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 16, 2005--Placed on Senate Executive Calendar. Calendar
No. 479. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 17, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of Commerce)
Karan K. Bhatia, of Maryland, to be Deputy United States Trade
Representative, with the Rank of Ambassador, vice
Josette Sheeran Shiner.
Sept. 15, 2005--Received in the Senate and referred to the
Committee on Finance.
Oct. 18, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-371.
Oct. 25, 2005--Committee on Finance. Ordered to be reported
favorably.
Oct. 25, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Oct. 25, 2005--Placed on Senate Executive Calendar. Calendar
No. 403. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Oct. 28, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Executive Office of the President)
James S. Halpern, of the District of Columbia, to be a Judge of
the United States Tax Court for a term of fifteen
years. (Reappointment)
Sept. 6, 2005--Received in the Senate and referred to the
Committee on Finance.
Oct. 18, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-371.
Oct. 25, 2005--Committee on Finance. Ordered to be reported
favorably.
Oct. 25, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Oct. 25, 2005--Placed on Senate Executive Calendar. Calendar
No. 402. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Oct. 28, 2005--Confirmed by the Senate by Voice Vote.
(Organization: The Judiciary)
John E. Maupin, Jr., of Tennessee, to be a Member of the Social
Security Advisory Board for a term expiring Sept. 30,
2010, vice Gerald M. Shea, term expired.
Sept. 6, 2005--Received in the Senate and referred to the
Committee on Finance.
Sept. 20, 2006--Received message of withdrawal of nomination
from the President.
(Organization: Social Security Administration)
Clay Lowery, of Virginia, to be a Deputy Under Secretary of the
Treasury, vice Randal Quarles.
Sept. 6, 2005--Received in the Senate and referred to the
Committee on Finance.
Oct. 18, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-371.
Oct. 25, 2005--Committee on Finance. Ordered to be reported
favorably.
Oct. 25, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Oct. 25, 2005--Placed on Senate Executive Calendar. Calendar
No. 401. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Oct. 28, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Franklin L. Lavin, of Ohio, to be Under Secretary of Commerce
for International Trade, vice Grant D. Aldonas,
resigned. Senate Banking, Housing, and Urban Affairs
Senate Banking, Housing, and Urban Affairs
Sept. 15, 2005--Committee on Banking, Housing, and Urban
Affairs. Hearings held. Hearings printed: S.Hrg. 109-
414.
July 29, 2005--Received in the Senate and referred to the
Committee on Finance.
Sept. 29, 2005--Referred to the Committee on Banking,
Housing, and Urban Affairs by unanimous consent on
Sept. 29, 2005 as a joint referral.
Sept. 29, 2005--Committee on Banking, Housing, and Urban
Affairs. Ordered to be reported favorably.
Oct. 18, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-371.
Oct. 25, 2005--Committee on Finance. Ordered to be reported
favorably.
Sept. 29, 2005--Reported by Senator Shelby, Committee on
Banking, Housing, and Urban Affairs, without printed
report.
Oct. 25, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Oct. 25, 2005--Placed on Senate Executive Calendar. Calendar
No. 400. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Oct. 28, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of Commerce)
Vincent J. Ventimiglia, Jr., of Maryland, to be an Assistant
Secretary of Health and Human Services, vice Jennifer
Young.
July 18, 2005--Received in the Senate and referred to the
Committee on Finance.
Dec. 14, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-502.
Dec. 19, 2005--Committee on Finance. Ordered to be reported
favorably.
Dec. 19, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 19, 2005--Placed on Senate Executive Calendar. Calendar
No. 483. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 21, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of Health and Human Services)
Robert M. Kimmitt, of Virginia, to be Deputy Secretary of the
Treasury, vice Samuel W. Bodman, resigned.
June 29, 2005--Received in the Senate and referred to the
Committee on Finance.
July 20, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-219.
July 29, 2005--Committee on Finance. Ordered to be reported
favorably.
July 29, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
July 29, 2005--Placed on Senate Executive Calendar. Calendar
No. 307. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
July 29, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Kevin I. Fromer, of Virginia, to be a Deputy Under Secretary of
the Treasury, vice John M. Duncan.
June 6, 2005--Received in the Senate and referred to the
Committee on Finance.
July 20, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-219.
July 29, 2005--Committee on Finance. Ordered to be reported
favorably.
July 29, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
July 29, 2005--Placed on Senate Executive Calendar. Calendar
No. 306. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
July 29, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Philip D. Morrison, of the District of Columbia, to be an
Assistant Secretary of the Treasury, vice Pamela F.
Olson, resigned.
May 26, 2005--Received in the Senate and referred to the
Committee on Finance.
Oct. 7, 2005--Received message of withdrawal of nomination
from the President.
(Organization: Department of the Treasury)
Randal Quarles, of Utah, to be an Under Secretary of the
Treasury, vice Brian Carlton Roseboro.
May 26, 2005--Received in the Senate and referred to the
Committee on Finance.
July 20, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-219.
July 29, 2005--Committee on Finance. Ordered to be reported
favorably.
July 29, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
July 29, 2005--Placed on Senate Executive Calendar. Calendar
No. 305. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
July 29, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Sandra L. Pack, of Maryland, to be an Assistant Secretary of
the Treasury, vice Teresa M. Ressel, resigned.
May 16, 2005--Received in the Senate and referred to the
Committee on Finance.
July 20, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-219.
July 29, 2005--Committee on Finance. Ordered to be reported
favorably.
July 29, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
July 29, 2005--Placed on Senate Executive Calendar. Calendar
No. 303. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
July 29, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Shara L. Aranoff, of Maryland, to be a Member of the United
States International Trade Commission for a term
expiring Dec. 16, 2012, vice Marcia E. Miller, term
expired.
Apr. 27, 2005--Received in the Senate and referred to the
Committee on Finance.
May 24, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-265.
July 29, 2005--Committee on Finance. Ordered to be reported
favorably.
July 29, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
July 29, 2005--Placed on Senate Executive Calendar. Calendar
No. 308. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
July 29, 2005--Confirmed by the Senate by Voice Vote.
(Organization: United States International Trade Commission)
Charles E. Johnson, of Utah, to be an Assistant Secretary of
Health and Human Services, vice Janet Hale, resigned.
Apr. 25, 2005--Received in the Senate and referred to the
Committee on Finance.
May 24, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-265.
July 20, 2005--Committee on Finance. Ordered to be reported
favorably.
July 20, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
July 20, 2005--Placed on Senate Executive Calendar. Calendar
No. 216.
July 22, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of Health and Human Services)
Alex Azar II, of Maryland, to be Deputy Secretary of Health and
Human Services, vice Claude A. Allen, resigned.
Apr. 19, 2005--Received in the Senate and referred to the
Committee on Finance.
May 24, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-265.
July 20, 2005--Committee on Finance. Ordered to be reported
favorably.
July 20, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
July 20, 2005--Placed on Senate Executive Calendar. Calendar
No. 215.
July 22, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of Health and Human Services)
Robert J. Portman, of Ohio, to be United States Trade
Representative, with the rank of Ambassador
Extraordinary and Plenipotentiary, vice Robert B.
Zoellick, resigned.
Apr. 13, 2005--Received in the Senate and referred to the
Committee on Finance.
Apr. 21, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-215.
Apr. 26, 2005--Committee on Finance. Ordered to be reported
favorably.
Apr. 26, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Apr. 26, 2005--Placed on Senate Executive Calendar. Calendar
No. 74. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Apr. 27, 2005--Cloture motion presented in Senate.
Apr. 28, 2005--Vote on cloture motion withdrawn by unanimous
consent in Senate.
Apr. 28, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Executive Office of the President)
Timothy D. Adams, of Virginia, to be an Under Secretary of the
Treasury, vice John B. Taylor.
Apr. 6, 2005--Received in the Senate and referred to the
Committee on Finance.
May 24, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-265.
July 29, 2005--Committee on Finance. Ordered to be reported
favorably.
July 29, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
July 29, 2005--Placed on Senate Executive Calendar. Calendar
No. 304. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
July 29, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Suzanne C. DeFrancis, of Maryland, to be an Assistant Secretary
of Health and Human Services, vice Kevin Keane.
Apr. 4, 2005--Received in the Senate and referred to the
Committee on Finance.
May 24, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-265.
July 20, 2005--Committee on Finance. Ordered to be reported
favorably.
July 20, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
July 20, 2005--Placed on Senate Executive Calendar. Calendar
No. 214.
July 22, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of Health and Human Services)
Daniel R. Levinson, of Maryland, to be Inspector General,
Department of Health and Human Services, vice Janet
Rehnquist, resigned.
Jan. 24, 2005--Received in the Senate and referred to the
Committee on Finance and when reported, to be
sequentially referred to the Committee on Homeland
Security and Governmental Affairs for not more than 20
days, pursuant to an order of the Senate of Jan. 20,
2005.
Feb. 17, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-73.
Mar. 17, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Mar. 17, 2005--Committee on Finance. Ordered to be reported
favorably.
Mar. 17, 2005--Referred to the Committee on Homeland Security
and Governmental Affairs for not more than 20 days,
pursuant to an order of the Senate of Jan. 20, 2005.
Apr. 13, 2005--Senate Committee on Homeland Security and
Governmental Affairs discharged by Unanimous Consent.
Pursuant to an order of the Senate of Jan. 20, 2005.
Apr. 13, 2005--Placed on Senate Executive Calendar. Calendar
No. 57. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
June 8, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of Health and Human Services)
Harold Damelin, of Virginia, to be Inspector General,
Department of the Treasury, vice Jeffrey Rush, Jr.,
resigned. Jointly referred to Senate Finance and Senate
Homeland Security and Governmental Affairs.
Jan. 24, 2005--Received in the Senate and referred to the
Committee on Finance and when reported, to be
sequentially referred to the Committee on Homeland
Security and Governmental Affairs for not more than 20
days, pursuant to an order of the Senate of Jan. 20,
2005.
Feb. 17, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-73.
Mar. 9, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Mar. 9, 2005--Committee on Finance. Ordered to be reported
favorably.
Mar. 9, 2005--Referred sequentially to the Committee on
Homeland Security and Governmental Affairs for not more
than 20 days, purusant to an order of the Senate of
Jan. 20, 2005.
Mar. 17, 2005--Senate Committee on Homeland Security and
Governmental Affairs discharged by Unanimous Consent.
and confirmed.
Mar. 17, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Raymond Thomas Wagner, Jr., of Missouri, to be a Member of the
Internal Revenue Service Oversight Board for a term
expiring Sept. 14, 2009. (Reappointment)
Jan. 24, 2005--Received in the Senate and referred to the
Committee on Finance.
Feb. 17, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-73.
Mar. 9, 2005--Committee on Finance. Ordered to be reported
favorably.
Mar. 9, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Mar. 9, 2005--Placed on Senate Executive Calendar. Calendar
No. 24.
Mar. 16, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of the Treasury)
Jeffrey Robert Brown, of Illinois, to be a Member of Social
Security Advisory Board for a term expiring Sept. 30,
2008, vice Bradley D. Belt, resigned.
Jan. 4, 2005--Received in the Senate and referred to the
Committee on Finance.
Dec. 14, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-502.
Dec. 6, 2006--Reported by Senator Grassley, Committee on
Finance, without printed report.
Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar
No. 1017. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
(Organization: Social Security Administration)
Michael O. Leavitt, of Utah, to be Secretary of Health and
Human Services, vice Tommy G. Thompson, resigned.
Jan. 4, 2005--Received in the Senate and referred to the
Committee on Finance.
Jan. 19, 2005--Committee on Finance. Hearings held. Hearings
printed: S.Hrg. 109-170.
Jan. 25, 2005--Committee on Finance. Ordered to be reported
favorably.
Jan. 18, 2005--Committee on Health, Education, Labor, and
Pensions. Hearings held. Hearings printed: S.Hrg. 109-
56.
Jan. 25, 2005--Reported by Senator Grassley, Committee on
Finance, without printed report.
Jan. 25, 2005--Placed on Senate Executive Calendar. Calendar
No. 6. Subject to nominee's commitment to respond to
requests to appear and testify before any duly
constituted committee of the Senate.
Jan. 26, 2005--Confirmed by the Senate by Voice Vote.
(Organization: Department of Health and Human Services)
BILLS AND RESOLUTIONS REFERRED
TO THE COMMITTEE
There were 1622 Senate bills and 7 House bills referred to
the Committee for consideration during the 109th Congress. In
addition, 24 Senate and House resolutions (joint, concurrent or
simple resolutions) were referred to the Committee.
REPORTS, PRINTS, AND STUDIES
During the 109th Congress, the Committee and supporting
Joint Committees, prepared and issued 18 reports, special
prints, and studies on the following topics:
------------------------------------------------------------------------
Title Senate Report To accompany
------------------------------------------------------------------------
UNITED STATES-OMAN FREE TRADE 109-364........... S. 3569
AGREEMENT IMPLEMENTATION ACT.
ELDER JUSTICE ACT............... 109-337........... S. 2010
TELEPHONE EXCISE TAX REPEAL AND 109-336........... S. 1321
TAXPAYER PROTECTION AND
ASSISTANCE ACT OF 2006.
A BILL TO AUTHORIZE THE 109-321........... S. 3495
EXTENSION OF NONDISCRIMINATORY
TREATMENT (NORMAL TRADE
RELATIONS TREATMENT) TO THE
PRODUCTS OF VIETNAM FILED,
UNDER AUTHORITY OF THE ORDER OF
THE SENATE OF AUGUST 4,
(LEGISLATIVE DAY AUGUST 3) 2006.
MEDICARE, MEDICAID, AND SCHIP 109-278........... S. 3524
INDIAN HEALTH CARE IMPROVEMENT
ACT OF 2006.
IMPROVING OUTCOMES FOR CHILDREN 109-269........... S. 3525
AFFECTED BY METH ACT OF 2006.
UNITED STATES-BAHRAIN FREE TRADE 109-199........... S. 2027
AGREEMENT IMPLEMENTATION ACT
FILED UNDER AUTHORITY OF THE
ORDER OF THE SENATE OF NOVEMBER
18, 2005.
NATIONAL EMPLOYEE SAVINGS AND 109-174........... S. 1953
TRUST EQUITY GUARANTEE ACT.
DOMINICAN REPUBLIC-CENTRAL 109-128........... S. 1307
AMERICA-UNITED STATES FREE
TRADE AGREEMENT IMPLEMENTATION
ACT FILED, UNDER AUTHORITY OF
THE ORDER OF THE SENATE OF JULY
29, 2005.
APPROVING THE RENEWAL OF IMPORT 109-101........... S.J. Res. 18
RESTRICTIONS CONTAINED IN THE
BURMESE FREEDOM AND DEMOCRACY
ACT OF 2003.
HIGHWAY REAUTHORIZATION AND 109-082........... S. 1230
EXCISE TAX SIMPLIFICATION ACT
OF 2005.
UNITED STATES TAX COURT 109-064........... S. 661
MODERNIZATION ACT.
PERSONAL RESPONSIBILITY AND 109-051........... S. 667
INDIVIDUAL DEVELOPMENT FOR
EVERYONE ACT (PRIDE).
REPORT ON THE ACTIVITIES OF THE 109-048........... ..................
COMMITTEE ON FINANCE OF THE
UNITED STATES SENATE DURING THE
108TH CONGRESS PURSUANT TO RULE
XXVI OF THE STANDING RULES OF
THE SENATE.
RULES OF PROCEDURE.............. S.Prt. 109-3...... ..................
REPORT OF STAFF INVESTIGATION OF S.Prt. 109-27..... ..................
THE NATURE CONSERVANCY.
REVIEW OF THE FDA'S APPROVAL S.Prt. 109-45..... ..................
PROCESS FOR THE VAGUS NERVE
STIMULATION THERAPY SYSTEM FOR
TREATMENT-RESISTANT DEPRESSION.
MINORITY STAFF REPORT-- S.Prt. 109-68..... ..................
INVESTIGATION OF JACK
ABRAMOFF'S USE OF TAX-EXEMPT
ORGANIZATIONS.
------------------------------------------------------------------------
OFFICIAL COMMUNICATIONS
During the 109th Congress, a total of 805 official
communications were submitted to the Committee. Of these, 5
were Presidential Messages; 745 were Executive Communications--
these communications include reports to advise and inform the
Congress, required annual or semi-annual agency budget and
activities summaries, and requests for legislative action. The
committee also received 90 Petitions and Memorials.