[Senate Report 112-193]
[From the U.S. Government Printing Office]


112th Congress 
 2d Session                      SENATE                          Report
                                                                112-193
_______________________________________________________________________

 
                     ACTIVITIES OF THE COMMITTEE ON

                         HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS


                               __________

                              R E P O R T

                                 of the

        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                                and its

                             SUBCOMMITTEES

                                for the

                     ONE HUNDRED ELEVENTH CONGRESS





                 July 31, 2012.--Ordered to be printed



        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TOM COBURN, Oklahoma
THOMAS R. CARPER, Delaware           SCOTT P. BROWN, Massachusetts
MARK L. PRYOR, Arkansas              JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana          RON JOHNSON, Wisconsin
CLAIRE McCASKILL, Missouri           ROB PORTMAN, Ohio
JON TESTER, Montana                  RAND PAUL, Kentucky
MARK BEGICH, Alaska                  JERRY MORAN, Kansas

                  Michael L. Alexander, Staff Director
     Leslie J. Phillips, Senior Advisor and Communications Director
               Nicholas A. Rossi, Minority Staff Director
                  Trina Driessnack Tyrer, Chief Clerk
                 Patricia R. Hogan, Publications Clerk
                    Laura W. Kilbride, Hearing Clerk
                                 ------                                

  COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS DURING THE 
                             111TH CONGRESS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TOM COBURN, Oklahoma
THOMAS R. CARPER, Delaware           SCOTT P. BROWN, Massachusetts\5\
MARK L. PRYOR, Arkansas              JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana          GEORGE V. VOINOVICH, Ohio
CLAIRE McCASKILL, Missouri           JOHN ENSIGN, Nevada
JON TESTER, Montana                  LINDSEY GRAHAM, South Carolina
PAUL G. KIRK, Jr., Massachusetts\3\  ROBERT F. BENNETT, Utah\1\
EDWARD E. KAUFMAN, Delaware\4\       MARK KIRK, Illinois\8\
CHRISTOPHER A. COONS, Delaware\6\
ROLAND W. BURRIS, Illinois\7\
MICHAEL F. BENNET, Colorado\2\
                                 ------                                

                  SUBCOMMITTEES OF THE 111TH CONGRESS
  OVERSIGHT OF GOVERNMENT MANAGEMENT, THE FEDERAL WORKFORCE, AND THE 
                       DISTRICT OF COLUMBIA (OGM)

                   DANIEL K. AKAKA, Hawaii, Chairman
CARL LEVIN, Michigan                 GEORGE V. VOINOVICH, Ohio
MARY L. LANDRIEU, Louisiana          SCOTT P. BROWN, Massachusetts\5\
ROLAND W. BURRIS, Illinois\7\        LINDSEY GRAHAM, South Carolina
MICHAEL F. BENNET, Colorado\2\       ROBERT F. BENNETT, Utah\1\
PAUL G. KIRK, Jr., Massachusetts\3\
EDWARD E. KAUFMAN, Delaware\4\
CHRISTOPHER A. COONS, Delaware\6\
                                 ------                                

FEDERAL FINANCIAL MANAGEMENT, GOVERNMENT INFORMATION, FEDERAL SERVICES, 
                    AND INTERNATIONAL SECURITY (FFM)

                  THOMAS R. CARPER, Delaware, Chairman
CARL LEVIN, Michigan                 JOHN McCAIN, Arizona
DANIEL K. AKAKA, Hawaii              TOM COBURN, Oklahoma
MARK L. PRYOR, Arkansas              GEORGE V. VOINOVICH, Ohio
CLAIRE McCASKILL, Missouri           JOHN ENSIGN, Nevada
ROLAND W. BURRIS, Illinois\7\
                                 ------                                

             PERMANENT SUBCOMMITTEE ON INVESTIGATIONS (PSI)

                     CARL LEVIN, Michigan, Chairman
THOMAS R. CARPER, Delaware           TOM COBURN, Oklahoma
MARK L. PRYOR, Arkansas              SUSAN M. COLLINS, Maine
CLAIRE McCASKILL, Missouri           JOHN McCAIN, Arizona
JON TESTER, Montana                  JOHN ENSIGN, Nevada
MICHAEL F. BENNET, Colorado\2\
PAUL G. KIRK, Jr., Massachusetts\3\
EDWARD E. KAUFMAN, Delaware\4\
CHRISTOPHER A. COONS, Delaware\6\
                                 ------                                

 AD HOC SUBCOMMITTEE ON STATE, LOCAL, AND PRIVATE SECTOR PREPAREDNESS 
                        AND INTEGRATION (SLPSPI)

                   MARK L. PRYOR, Arkansas, Chairman
DANIEL K. AKAKA, Hawaii              JOHN ENSIGN, Nevada
MARY L. LANDRIEU, Louisiana          GEORGE V. VOINOVICH, Ohio
JON TESTER, Montana                  LINDSEY GRAHAM, South Carolina
MICHAEL F. BENNET, Colorado\2\
                                 ------                                

             AD HOC SUBCOMMITTEE ON DISASTER RECOVERY (SDR)

                 MARY L. LANDRIEU, Louisiana, Chairman
CLAIRE McCASKILL, Missouri           LINDSEY GRAHAM, South Carolina
ROLAND W. BURRIS, Illinois\7\        ROBERT F. BENNETT, Utah\1\
                                     SCOTT P. BROWN, Massachusetts\5\
                                 ------                                

           AD HOC SUBCOMMITTEE ON CONTRACTING OVERSIGHT (SCO)

                  CLAIRE McCASKILL, Missouri, Chairman
CARL LEVIN, Michigan                 SCOTT P. BROWN, Massachusetts\5\
THOMAS R. CARPER, Delaware           ROBERT F. BENNETT, Utah\1\
MARK L. PRYOR, Arkansas              SUSAN M. COLLINS, Maine
JON TESTER, Montana                  TOM COBURN, Oklahoma
PAUL G. KIRK, Jr., Massachusetts\3\  JOHN McCAIN, Arizona
EDWARD E. KAUFMAN, Delaware\4\       LINDSEY GRAHAM, South Carolina
CHRISTOPHER A. COONS, Delaware\6\

\1\Senator Robert F. Bennett served on the Committee from 7/31/2009 to 
3/9/2010.
\2\Senator Michael F. Bennet left the Committee on 9/29/2009.
\3\Senator Paul G. Kirk, Jr. served on the Committee from 9/29/2009 to 
3/9/2010.
\4\Senator Edward E. Kaufman served on the Committee from 3/9/2010 to 
11/15/2010.
\5\Senator Scott P. Brown joined the Committee on 3/9/2010.
\6\Senator Christopher A. Coons joined the Committee on 11/15/2010.
\7\Senator Roland W. Burris left the Committee on 11/29/2010.
\8\Senator Mark Kirk joined the Committee on 12/7/2010.
                                CONTENTS

                                 ------                                
                                                                   Page
  I. Highlights of Activities.........................................1

      Homeland Security..........................................     3
        A. Violent Islamist Extremists, Homegrown Terror, and 
        Counterterrorism.........................................     4
        B. Fort Hood Investigation...............................     6
        C. IRTPA Five Years Later/Intelligence...................     8
        D. Cybersecurity.........................................    11
        E. Biosecurity...........................................    13
        F. Weapons of Mass Destruction...........................    15
        G. Border and Travel Security............................    17
        H. Emergency Preparedness and Response...................    20
        I. Federal Building Security.............................    26
        J. Internal DHS Matters..................................    27
        K. Quadrennial Homeland Security Review..................    28

      Contracting Reform.........................................    28
        A. Defense Contract Audit Agency.........................    28
        B. Reducing Reliance on Government Contractors...........    29
        C. Special Inspector General for Iraq Reconstruction.....    29
        D. New Subcommittee......................................    30

      American Recovery and Reinvestment Act.....................    30

      Protecting Federal Employees...............................    31
        A. Domestic Partners.....................................    31
        B. Retirement Equity.....................................    31
        C. Whistleblowers........................................    32
        D. Relocation Expenses...................................    32

      Improving Government Efficiency............................    32
        A. Information Technology................................    32
        B. E-Government..........................................    33
        C. Telecommunications....................................    34
        D. Improper Payments.....................................    34
        E. Performance Measurements..............................    34

      District of Columbia.......................................    34
        A. Voting Rights.........................................    34
        B. Education.............................................    35

      Working for Connecticut....................................    36
        A. Homeland Security Grants..............................    36
        B. H1N1..................................................    36

      Miscellaneous..............................................    37
        A. Iran Sanctions........................................    37
        B. Fiscal Balance........................................    37
        C. Payment for Rides on Corporate Jets...................    37
        D. Policy Czars..........................................    38
        E. Census................................................    38
        F. Presidential Transitions..............................    38
        G. Sam Hicks.............................................    39
        H. Inspectors General....................................    39

 II. Committee Jurisdiction..........................................40

III. Bills and Resolutions Referred and Considered...................43

 IV. Hearings........................................................43

  V. Reports, Prints, and GAO Reports................................47
        Committee Reports........................................    47
        Committee Prints.........................................    50
        GAO Reports..............................................    50
 VI. Official Communications.........................................58

VII. Legislative Actions.............................................58

        Measures Enacted Into Law................................    59
        Postal Naming Bills......................................    64

VIII.Presidential Nominations........................................69


 IX. Activities of the Subcommittees.................................73

Federal Financial Management, Government Information, and International 
                      Security Subcommittee (FFM)

  I. Hearings........................................................73

 II. Legislation.....................................................84

III. GAO Reports.....................................................90

  Oversight of Government Management, the Federal Workforce, and the 
                District of Columbia Subcommittee (OGM)

  I. Hearings........................................................93

 II. Legislation....................................................109

        Measures Enacted Into Law................................   109

        Measures Favorably Reported by the Subcommittee and 
        Passed by the Senate.....................................   111

        Measures Referred to the Subcommittee on which Hearings 
        were held or other Legislative Action was taken..........   113

        Measures which did not advance beyond referral to 
        Subcommittee.............................................   113

III. GAO Reports....................................................116

             Permanent Subcommittee on Investigations (PSI)

  I. Historical Background..........................................119

        A. Subcommittee Jurisdiction.............................   119

        B. Subcommittee Investigations...........................   121

 II. Subcommittee Hearings during the 111th Congress................126

III. Legislation Activities during the 111th Congress...............143

 IV. Reports........................................................148

  V. GAO Requested and Sponsored Reports............................154

 Ad Hoc Subcommittee on State, Local, and Private Sector Preparedness 
                        and Integration (SLPSPI)

  I. Hearings.......................................................164

 II. Legislation....................................................168

             Ad Hoc Subcommittee on Disaster Recovery (SDR)

  I. Hearings.......................................................170

 II. Legislation....................................................176

           Ad Hoc Subcommittee on Contracting Oversight (SCO)

  I. Hearings.......................................................177

 II. Legislation....................................................188
112th Congress
                                 SENATE
                                                                 Report
 2d Session                                                     112-193

======================================================================


                ACTIVITIES OF THE COMMITTEE ON HOMELAND


                   SECURITY AND GOVERNMENTAL AFFAIRS


                       DURING THE 111TH CONGRESS

                                _______
                                

                 July 31, 2012.--Ordered to be printed

                                _______
                                

Mr. LIEBERMAN, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                                _______
                                

                                 REPORT

    This report reviews the legislative and oversight 
activities of the Committee on Homeland Security and 
Governmental Affairs and its Subcommittees during the 111th 
Congress. These activities were conducted pursuant to the 
Legislative Reorganization Act of 1946, as amended; by Rule 
XXV(k) of the Standing Rules of the Senate; and by additional 
authorizing resolutions of the Senate. See Section II, 
``Committee Jurisdiction,'' for details.
    Senator Lieberman was Chairman of the Committee during the 
111th Congress; Senator Collins was the Ranking Member.
    Major activities of the Committee during the 111th Congress 
included legislation on the 9/11 Commission recommendations, 
contracting reform, conducting an investigation into the Fort 
Hood shootings, and holding hearings on the new 
Administration's nominees. Discussion of these major activities 
appears in Section I below; additional information on these and 
other measures appears in Section VII, ``Legislative Actions.''
    Extensive information about the Committee's history, 
hearings, legislation, documents, Subcommittees, and other 
matters is available at the Web site, http://hsgac.senate.gov/.

                      I. HIGHLIGHTS OF ACTIVITIES

    The 111th Congress opened with a burst of energy borne of a 
series of firsts. A new President, Barack Obama, had been 
elected to lead the country. He was the first African-American 
ever elected President. He was also the first Democrat to hold 
the Nation's top office in 8 years. The euphoria of a Nation 
hoping it had moved beyond its past racial strife was tempered, 
however, by the stark reality of the worst economy since the 
Great Depression. The autumn of 2008 had seen a near collapse 
of the capitalist system, a collapse averted only by the 
intervention of the Federal Government, which singlehandedly 
propped up the financial services sector and the automobile 
industry to avoid a complete economic meltdown.
    Against this backdrop, the Homeland Security and 
Governmental Affairs Committee (HSGAC) spent a good portion of 
the year helping the new Administration move its nominees 
through the lengthy and often bumpy Senate nomination process. 
At the same time, the Committee launched a series of oversight 
hearings to examine an outdated Federal financial regulatory 
structure and to oversee the billions of dollars in stimulus 
funding Congress had approved the previous fall to jumpstart 
the economy.
    The Committee's attention since 2003 to homeland security 
issues focused early in the 111th Congress on the ever 
escalating violence along the Southern border with Mexico and 
the successful efforts of an al-Qaeda offshoot in Somalia to 
recruit young Somali-Americans to its cause. In the latter half 
of 2009, however, the Committee pivoted back to homegrown 
terrorism when a plot to bomb the New York subway system was 
uncovered in September and when a radicalized Muslim U.S. Army 
Major opened fire at Fort Hood, Texas, in November killing 13 
people.
    Committee Chairman Joseph Lieberman, ID-Conn., and Ranking 
Member Susan Collins, R-Me., immediately launched an 
investigation into the Fort Hood shootings, which Chairman 
Lieberman called the worst terrorist event in this country 
since September 11, 2001. Subpoenas were served to the 
Departments of Defense and Justice, and eventually, the 
investigation found that two colleagues had called Major Nidal 
Hasan a ``ticking time bomb.'' The Chairman's and Senator 
Collins's final report, issued in the 112th Congress, concluded 
that the Department of Defense and the FBI ``collectively had 
the information necessary to have detected the radicalization 
of Major Nidal Hasan to violent Islamist extremism but failed 
to understand or act on it.''
    The Committee had also begun a series of hearings in the 
fall of 2009 to examine the Intelligence Reform and Terrorist 
Prevention Act of 2004 (IRTPA), 5 years after it was signed 
into law. When a young Nigerian botched an attempt to blow up 
an airplane on Christmas Day 2009 with explosives smuggled 
through security in his underwear, the Committee turned its 
IRTPA hearings into a more specific look at how both Major 
Hasan and the so-called ``underwear bomber,'' Umar Farouk 
Abdulmutallab, had managed to break through the Nation's 
homeland security and intelligence defenses and whether the 
Director of National Intelligence (DNI) needed additional 
authorities to carry out his responsibilities.
    In other homeland security investigative work, the 
Committee's inquiry into two troubled Department of Homeland 
Security (DHS) programs meant to prevent the smuggling of 
nuclear materials into this country led the Department to 
freeze the two programs. And work began in earnest on 
bipartisan legislation to remake the government's program for 
securing its own cyber systems and networks and that of the 
most critical infrastructure.
    Within the governmental affairs realm, the Committee upheld 
its record of promoting effective and efficient government 
through close oversight of a variety of agencies and programs 
within its jurisdiction. In addition to the previously 
mentioned hearings on the American Recovery and Reinvestment 
Act (ARRA), the Committee tracked the government's preparation 
and response to the outbreak of the H1N1 virus through hearings 
and oversight letters. When the Deepwater Horizon oil rig 
exploded in the Gulf of Mexico in April 2010, the Committee 
monitored the public and private sector response to what was to 
become the largest oil spill in the Nation's history. The 
Committee made a number of recommendations for how to prevent a 
similar spill in the future.
    HSGAC continued its efforts to expose waste, fraud, and 
abuse, in part, through oversight of acquisition and 
procurement and the government's use of contractors to carry 
out ``inherently'' governmental work. The Committee worked with 
the Administration to implement contracting reforms passed in 
the previous Congress as part of the FY2009 National Defense 
Authorization Act. HSGAC also learned, through staff inquiry, 
that DHS's workforce was almost twice the size as had been 
thought because of the proliferation of contractors, meaning 
DHS has almost 400,000 employees rather than the previously 
accepted number of 270,000. The Committee continued its decade 
long work monitoring Defense Department contracting, 
particularly as it pertained to the wars in Iraq and 
Afghanistan. At the Chairman's request, the Government 
Accountability Office (GAO) investigated the Defense Contract 
Audit Agency (DCAA), finding major mismanagement and faulty 
auditing. The GAO reports helped spur a change in leadership at 
the top of the agency.
    On top of the Committee's oversight responsibilities, 
Chairman Lieberman and Senator Collins moved a number of bills 
out of Committee to improve government performance across a 
range of homeland security and governmental affairs issues. 
Among the measures they introduced and marked up were 
comprehensive, bipartisan cybersecurity legislation to protect 
the Nation's most critical infrastructures from hostile attack; 
legislation to reorganize the way the government secures 
laboratories working with the most dangerous biological 
pathogens; and legislation to reform the little known DHS 
agency in charge of protecting workers and visitors at 9,000 
Federal buildings nationwide, the Federal Protective Service 
(FPS).
    Chairman Lieberman continued his strong advocacy for 
Federal workers through Committee passage of a bill to provide 
benefits for the domestic partners of Federal employees and a 
number of provisions in the FY2010 National Defense 
Authorization Act to ensure that Federal employees and retirees 
are treated fairly.
    The Chairman also advocated on behalf of the citizens of 
Connecticut, particularly through port, transit, and first 
responder grants.
    In total, the Committee reported 60 bills out of Committee 
in the 111th Congress (not including postal naming bills or 
nominations)--18 of which became law. The Committee also 
reported out 42 nominations, all of which were confirmed by the 
full Senate.

                           HOMELAND SECURITY

    Throughout 2009-2010, the Department of Homeland Security 
continued to improve the security of the American people even 
as it struggled to manage its vast portfolio and its equally 
vast workforce, which turned out to be twice as large as once 
thought due to the high number of contractors on payroll. A 
number of major procurement contracts such as SBInet continued 
to be mismanaged in 2009-2010. And despite some high-profile 
successes--with the help of law enforcement--in tracking down 
terrorist plots, at least two terrorists--Nidal Hasan and Umar 
Abdulmutallab--slipped through our homeland defenses. In 2009-
2010, the phenomenon of homegrown terrorism was no longer a 
theory but the new face of terrorism in the United States.

 A. Violent Islamist Extremists, Homegrown Terror, and Countertorrorism

    In the 111th Congress, the Committee's 4-year-long 
investigation into violent Islamist extremism shifted 
dramatically from a theoretical, law enforcement discussion to 
an examination of actual homegrown attacks and failed attacks.
    The Committee began the year with a hearing January 8, 
2009, on lessons to be learned from the November 2008 terrorist 
attack on a number of soft targets in Mumbai. Department of 
Homeland Security Under Secretary for Intelligence and Analysis 
Charlie Allen said disrupted plots often resurface, as appeared 
to be the case with the Mumbai attack, and the challenges of 
disrupting plots to soft targets, such as hotels, in the United 
States are enormous. The FBI's Donald Van Duyn remarked on the 
cutting edge technologies the Mumbai terrorists used to 
communicate with one another. And New York Police Commissioner 
Ray Kelly said government officials must educate the owners and 
operators of potential private sector targets that could be 
attacked.
    A second hearing was held on January 28, 2009, to 
specifically examine how the private sector can protect itself 
from terrorist attacks. ``The Mumbai terrorists attacked 
hotels, an outdoor cafe, a Jewish community center and a movie 
theater--places that are not traditionally subject to a high 
level of security,'' Chairman Lieberman said. ``The protection 
of these kinds of soft targets is a challenge in an open 
society as--by definition--they are facilities that must be 
easily accessible to the general public and are often used by 
large number of people at one time. But that does not mean that 
we can leave soft targets unguarded.''
    The Committee's third hearing on violent Islamist 
extremism, on March 11, 2009, focused on the radicalization and 
recruitment of young Somali-Americans by an al-Qaeda linked, 
Somali organization called al-Shabaab. The recruitment of these 
young men--mostly from Minneapolis--posed the troubling specter 
that the young men could travel back and forth between the U.S. 
and Somalia unnoticed because they were American citizens and 
had American passports. ``This is probably the most significant 
case of homegrown American terrorism that we have found yet,'' 
Chairman Lieberman said.
    Two men were indicted in Minneapolis on July 14, 2009, in 
connection with the recruitments. The Chairman said the case 
was ``a wakeup warning that violent Islamist extremism is now 
spreading in America.'' On November 23, 2009, the Chairman 
commended the FBI for bringing terrorism charges against eight 
people in the disappearance of the young men, bringing to 14 
the total number of people arrested or charged in the case. And 
on August 5, 2010, the Chairman praised the FBI for arresting 
two people and charging 14 more with material support for al-
Shabaab.
    Events over the next several months bore out the 
Committee's longstanding investigation into homegrown 
terrorism. On May 21, 2009, Najibullah Zazi, a legal permanent 
resident, was arrested for attempting a terror attack on the 
New York subway system. The Senator called the intelligence and 
police work that snagged Najibullah Zazi, ``brilliant'' and 
warned we must be ``vigilant'' for the radicalization and 
recruitment of people within the United States. On June 1, 
2009, an Army recruiter in Little Rock, Arkansas, was shot and 
killed by alleged terrorist Carlos Bledsoe (aka ``Abdulhakim 
Mujahid Muhammad''), who indicated he had been trained in 
Yemen. The Senator said the tragedy ``illustrates the very real 
dangers posed by homegrown terrorism in the United States.''
    In August and September 2009, the FBI announced the arrests 
of several men in Colorado, North Carolina, Texas, and Illinois 
who were involved in four separate, planned attacks. On 
September 30, the Committee convened its annual terrorism 
threat hearing with testimony from DHS, the FBI, and the 
National Counterterrorism Center (NCTC). All of these cases, 
the Senator said at the hearing, ``realize our worst fears 
about homegrown Islamist terrorist attacks in America.''
    Those worst fears were realized again on November 5, 2009, 
when Army Major Hasan shouted ``Allahu Akbar'' before he shot 
and killed 13 people at the Fort Hood Army base and wounded 43 
others--the worst case of terrorism within U.S. borders since 
9/11. (See below for details on the Committee's Fort Hood 
investigation).
    Capping off a year of increased homegrown and foreign-
influenced terrorist incidents, on Christmas Day 2009, Nigerian 
Umar Abdulmutallab failed to ignite explosives smuggled through 
security in his underwear on a Northwest Airlines plane that 
left Amsterdam bound for Detroit, becoming the third terrorist 
to slip through the layered and international homeland security 
and intelligence apparatus of the U.S. Government. Fortunately, 
he was unable to light his explosives, and passengers 
restrained him until the plan landed, thwarting his planned 
attack. Alarmingly, as it turned out, Umar Abdulmutallab's 
father had warned U.S. embassy officials in Nigeria about his 
son's radicalization. The young man's name was placed on a 
broad terrorist database but not the more selective watch list 
checked by airport officials, and so he managed to secure a 
visa to visit America.
    The Chairman publicly stated on December 28, 2009, that he 
was ``troubled by several aspects of this case, including how 
the suspect escaped the attention of the State Department and 
law enforcers'' to obtain a travel visa even though his father 
had alerted authorities about his son's extremist behavior.
    The Chairman and Senator Collins subsequently wrote a 
letter dated January 25, 2010, to the Attorney General and the 
President's Assistant for Homeland Security and 
Counterterrorism, urging the Administration to move Umar 
Abdulmutallab from civilian to military custody as they 
considered him an enemy combatant.
    Terrorist incidents continued to pile up, and American 
lives were spared again and again in part because of the 
terrorists' incompetence. On May 1, 2010, an alert street 
peddler noticed a smoking SUV in Times Square and alerted 
police. The Chairman issued a statement May 3 praising the New 
York City police, the vendor who ``saw something and said 
something,'' and the people of New York, who remained calm 
throughout the ordeal. The next day, Customs and Border 
Prevention agents plucked Faisal Shazhad off a plane preparing 
to leave JFK Airport for Dubai. He was charged with terrorism 
related crimes, pleaded guilty, and in October 2010 was 
sentenced to life in prison.
    The Committee held a previously scheduled hearing on a 
separate topic--banning guns sales to suspected terrorists--on 
May 5, 2010. New York City Mayor Michael Bloomberg and Police 
Chief Ray Kelly testified. ``Our growing understanding of the 
plot to attack Times Square reminds us that Islamist extremists 
have declared war on America,'' the Chairman said. ``In fact, 
they have attempted attacks on Americans more than a dozen 
times in just the last year. The only two since 9/11 that have 
been carried out and taken American lives were with firearms.'' 
Those two examples were Nidal Hasan and Carlos Bledsoe.
    In observance of the ninth anniversary of the 2001 terror 
attacks, the Chairman issued a statement paying tribute to the 
more than 3,000 people who lost their lives on September 11, 
2001, decried violent Islamist extremism, and called for unity 
of effort to defeat terrorism. ``As we remember . . . those who 
lost their lives that day, let us do so with a renewed sense of 
commitment, determination, and unity to defeat the terrorists 
who struck our homeland and whose totalitarian ideology 
represents a threat to all of humanity.''
    The same day, the Senator issued a statement deploring the 
declaration of a fringe Florida preacher to turn September 11 
into an ``International Burn a Quran Day'' as ``inconsistent 
with American values'' and dangerous to American troops in Iraq 
and Afghanistan.
    The Committee held its annual terrorist threat hearing on 
September 22, 2010, under far different circumstances than it 
had a year earlier. Clearly, the threat had changed in that 
time. The Chairman made three observations: An increase in the 
pace of homegrown and foreign-based terrorism had occurred; 
more Americans were being recruited and joining the leadership 
ranks of al-Qaeda and affiliated groups; and the Internet is 
the preferred way for Americans to self radicalize and for 
terrorists to indoctrinate and recruit.

                       B. Fort Hood Investigation

    On November 5, 2009, the worst terrorist attack on the 
United States since 9/11 occurred on the Army base in Fort 
Hood, Texas--costing 13 employees of the Department of Defense 
(DOD) their lives. Twelve of the victims were soldiers 
preparing for deployment to Iraq. The shooter was an Army 
major, an American citizen, and a Muslim who had become 
radicalized with the help of the notorious radical Islamist 
cleric Anwar al-Awlaki.
    Three days later, on Fox News Sunday, Chairman Lieberman 
announced the Committee would investigate the shootings and, 
the following day, the Chairman and Senator Collins vowed the 
Committee in no way would interfere with the criminal 
investigation. In a public statement, the Senators specified 
that they would look at ``whether the government missed warning 
signs that should have led to expulsion, and what lessons we 
can learn to prevent such future attacks.''
    Pressure mounted over the following week from those who 
thought the Administration should investigate without Congress' 
intrusion. To quell these concerns, the Chairman and Senator 
Collins issued an unusual Saturday, November 14 statement 
reinforcing their intent to pursue an inquiry separate from the 
criminal investigation. In doing so, they repeated the 
President's own words, when he said in his weekly radio address 
that Congress should investigate the tragedy. The Chairman and 
Senator Collins responded in kind: ``We appreciate that [the 
President] recognizes Congress' constitutional mandate to 
conduct oversight into tragic events such as these and we want 
to reiterate that our Committee will conduct a responsible, 
apolitical inquiry.''
    Four days later on November 18, 2009, the Chairman and 
Senator Collins held a press conference to define their 
investigatory goals. ``We know violent Islamist extremism is a 
threat here in the U.S. and we know the military is a target.'' 
The Chairman said, ``We will conduct this investigation to 
determine what we can do to better protect our military service 
personnel and all of our citizens. We will focus on what the 
Federal Government knew and what it did concerning Major Hasan 
and whether action should have been taken to prevent him from 
carrying out his attack.''
    The next day, November 19, 2009, the Committee held its 
first and only hearing in the Fort Hood inquiry. Four of the 
five witnesses--a retired Army general, former homeland 
security officials, a New York Police Department official, and 
a think tank expert--agreed the shooting was a terrorist 
attack. The fifth witness declined to comment because of the 
ongoing criminal investigation. ``We look at the Fort Hood 
murders not as an isolated event but as part of a larger 
pattern of homegrown terrorism that has emerged over the past 
several years,'' the Chairman said. ``Our purpose is to 
determine whether that attack could have been prevented, 
whether the Federal agencies and employees involved missed 
signals or failed to connect the dots in a way that enabled 
Major Hasan to carry out his deadly plan. If we find such 
errors or negligence, we will make recommendations to 
guarantee, as best we can, that they never occur again.''
    On December 15, after a month of foot dragging by the 
Departments of Defense (DOD) and Justice (DOJ) over sharing 
documents and witnesses needed for the Committee's 
investigation, the Chairman and Senator Collins received a 
closed-door briefing from DOD officials on Army personnel and 
information-sharing policies. ``The Administration has taken 
its time in responding to our requests for documents and 
witnesses but is moving in the right direction,'' the Chairman 
said, calling the dispute a ``classic struggle between the 
Executive and Legislative Branches.''
    Justice Department officials came to the Hill to give the 
Chairman and Senator Collins a closed-door briefing the 
following week, on December 22, 2009. The Chairman said that 
while the Administration was ``slowly responding to our 
information requests,'' he urged greater speed so that Congress 
could fulfill its constitutional duty.
    On January 13, 2010, in a letter to DOD Secretary Robert 
Gates, the Chairman and Senator Collins issued preliminary 
policy recommendations calling for the prohibition of violent 
Islamist extremism in the military and training service members 
to recognize, address, and report Islamist extremism.
    The DOD released its internal review of the Fort Hood 
shooting 2 days later, on January 15, 2010. In response, the 
Chairman said he was disappointed the review ``does not 
adequately recognize the specific threat posed by violent 
Islamist extremism to our military.'' The omission, Chairman 
Lieberman said, underscored the need for the Committee's 
investigation.
    Throughout the spring of 2010, the Committee battled to 
obtain the Administration's cooperation. A total of six letters 
requesting documents were sent--four to DOD and two to DOJ--but 
the Administration stood firm. Sharing the requested documents 
and allowing witnesses to testify, it argued, would harm the 
prosecution of Major Hasan. On April 15, 2010, the Chairman and 
Senator Collins ratcheted up the pressure by announcing they 
had prepared subpoenas and would issue them on April 19, 2010, 
if they did not receive the information and witnesses they 
sought. The following day, the news media reported that Defense 
Secretary Robert Gates said the Pentagon would give Congress 
information as long as it did not jeopardize the prosecution. 
The Senators issued a press release declaring that the 
Administration's refusal to provide the information they sought 
was inconsistent with the standard articulated by Secretary 
Gates.
    On April 19, 2010, after a 5-month Committee effort to 
obtain the information it needed for its investigation, 
officials at DOD and DOJ were served with subpoenas. A 
Committee vote followed by a full Senate vote would be needed 
to enforce them.
    A week later, on April 27, 2010, the Chairman and Senator 
Collins received some of the documents they had requested but 
insisted that if the Administration was to comply with the 
subpoenas, it must turn over many more documents, as well as 
witnesses.
    At a Committee business meeting the next day, the Chairman 
told the full Committee ``it would be a very bad precedent'' to 
allow the Administration to deny the Committee the information 
it had requested. ``That would haunt Congress's future ability 
to conduct oversight of the Executive Branch,'' he said. ``If 
we cannot reach an accommodation, Senator Collins and I will 
return to the full Committee for your support to enforce the 
subpoenas and then go to the full Senate.''
    The Committee reinforced its case with a statement April 
29, 2010, from a leading, impartial expert on military 
justice--Eugene R. Fidell, President of the National Institute 
of Military Justice and a senior research scholar at Yale Law 
School--who declared that providing the sought-after witnesses 
and documents would pose no problem at all for Major Hasan's 
criminal prosecution.
    Ultimately, the Committee did not vote on the subpoenas as 
the first step toward enforcing them. Instead, the Committee 
reached an accommodation with DOD and DOJ, receiving the 
information needed to conduct its investigation.

                 C. IRTPA Five Years Later/Intelligence

    On December 9, 2009, the Committee held the first of what 
was intended to be a series of hearings examining the impact of 
the Intelligence Reform and Terrorist Prevention Act of 2004 
(IRTPA) 5 years after its enactment. The failed terrorist 
attack on Christmas Day turned those hearings into an urgent 
examination of how IRTPA's goals still remain to be realized.
    The hearing focused on the status of Federal programs 
designed to prevent terrorists from entering the United States 
such as US-Visit, the Visa Waiver Program, and terrorist watch 
lists--programs created either by IRTPA or the second 9/11 
Commission recommendations implementation bill of 2007. The 
Chairman indicated several weaknesses in travel security--such 
as the security of primary source documents like birth 
certificates, agreements to share biometric information and 
watch list information with 35 visa waiver program countries, 
and implementation of the US-Visit biometric exit program.
    After Umar Abdulmutallab was arrested on Christmas Day, the 
IRTPA hearings changed in tone--it was now clear that aspects 
of the law were not working as intended--and expanded to 
include interagency cooperation and information sharing between 
DHS, DOJ, the State Department (DOS), and the Director of 
National Intelligence (DNI). The Committee's oversight also 
focused on the extent to which the DNI has or has not emerged 
as the government's chief intelligence officer and whether 
additional authorities for the DNI were needed to underscore 
the DNI's leadership over the intelligence community to ensure 
it operates effectively.
    The Chairman and Senator Collins announced they would 
convene a January hearing to examine the layers of security 
meant to protect airline passengers from terrorist attacks--the 
layers that Umar Abdulmutallab successfully evaded--and how to 
strengthen them. On January 8, 2010, they announced DHS 
Secretary Napolitano, DNI Dennis Blair and NCTC Director 
Michael Leiter would testify at a hearing 12 days later. Each 
witness conceded a series of mistakes at that hearing in 
piecing together the evidence that might have prevented Umar 
Abdulmutallab from boarding the plane in Amsterdam--such as the 
failure to put him on a watch list after his father reported 
suspicions, a failure to analyze and comprehend intelligence 
that had been gathered about the young man, a failure to pull 
his visa, and a failure to detect the explosives he carried. 
The hearing further revealed that DOJ had not consulted any 
other Federal office on interrogation of the suspect or whether 
to try him in a civilian or military court. Director Leiter 
revealed the substandard computer capabilities of his agency, 
which although it had access to all intelligence agency 
databases, could not conduct a computer search across all of 
those databases.
    The third hearing in the series took place on January 26, 
2010, with the authors of the 9/11 Commission report as 
witnesses. Tom Kean and Lee Hamilton said what everyone knew to 
be true--the failure to disrupt the Fort Hood and December 25 
attacks was the result of continued tensions among the 
intelligence community's component agencies. For the DNI to 
succeed, they said, the President must provide strong support. 
The Chairman noted that the government ``must better organize 
our intelligence gathering and analysis efforts so crucial 
information can be mined more quickly from this vast mountain 
of data we build. The President also needs to clarify the 
primacy of the Director of National Intelligence, who has an 
immensely difficult job integrating 16 intelligence agencies.''
    The fourth hearing in the series, on March 10, 2010, 
examined the terrorist watch lists and airport screening. The 
Chairman said anyone with ties to terrorist activities that is 
placed on the Terrorist Screening Database (TSDB), a larger 
list than the no-fly list, should receive secondary screening. 
He also said that the U.S. should require identity verification 
documents from travelers bound for the U.S. at least 24 hours 
before flight time. ``All the dots were on the table'' the 
Chairman said in reference to the intelligence on the Christmas 
Day bomber. ``But our government was unable to connect them--to 
separate this information out of the enormous mass of 
information the government collects and shares so that this 
terrorist could be stopped before he acted.''
    The fifth hearing in the series, on March 17, 2010, took a 
closer look at the problems of intelligence community 
integration, including institutional resistance to the DNI, 
uncertainty about the DNI's role, and competing national 
priorities that undermine support for reform. Witnesses 
testified that NCTC's efforts to develop plans that integrate 
military, diplomatic, law enforcement, and economic 
capabilities across the government have been stymied by 
department failures to participate meaningfully in NCTC 
planning activity. And legal, policy, and technology challenges 
to intelligence analysis remain unresolved 9 years after 9/11. 
``The seemingly endless argument over authorities undermines 
the unit pride that all agencies in the intelligence community 
have,'' said former Central Intelligence Agency (CIA) General 
Counsel Jeffrey Smith.
    The sixth and last hearing of the series took place on 
April 21, 2010, and focused on visa security. The Chairman 
urged the State Department to expand the Visa Security Program 
(VSP) beyond the 14 of 57 high-risk consular posts around the 
globe that have VSP offices. ``Securing the homeland is now a 
global enterprise,'' the Chairman said ``It begins well before 
people come to the United States.'' The Homeland Security and 
State Departments ``must work together to ensure that 
prospective travelers are fully vetted before boarding a plane 
bound for this country.''
    Abruptly, on May 21, 2010, DNI Blair resigned. The Chairman 
and Senator Collins issued a strong statement calling 
intelligence reform a ``work in progress.'' The terrorist 
attacks at Fort Hood and the failed attacks on Christmas Day 
and in Times Square ``illustrate a need for more effective 
coordination of our counterterrorism efforts . . . while the 
DNI has strong authorities, those authorities may need to be 
strengthened--particularly in the areas of intelligence agency 
budget and the selection of the intelligence leaders. Also, any 
perceived ambiguities regarding the DNI's authorities must be 
resolved. . . . We also think we should make crystal clear that 
the DNI has authority over the CIA and over elements of the 
intelligence community within the Department of Defense and 
other Cabinet agencies.''

                          1. National Security

    The committee developed a bipartisan legislative proposal 
(Senators Lieberman, Collins, and Voinovich) to strengthen 
national security by improving the efficiency of how agencies 
coordinate. Specifically, the legislation institutes a new 
human capital policy that requires that homeland and national 
security personnel do rotations in other departments in order 
to receive promotions to top national security positions in 
their home departments. This policy is similar to human capital 
policies used routinely by corporations that require their 
workers to serve in positions across different divisions in 
order to be able to assume corporate leadership positions.
    Senator Lieberman held a hearing February 12, 2009, to 
examine whether the Homeland Security Council and the National 
Security Council, both located in the Executive Office of the 
President, should be merged. The Senator said he was open to a 
merger but worried that the interests of homeland security 
would be overshadowed by the interests of national security. 
One of the witnesses, Tom Ridge, who was the first Secretary of 
Homeland Security, strongly opposed the merger. Two other 
witnesses were in favor, and the fourth witness, Frances Fragos 
Townsend, who had been Assistant to the President for Homeland 
Security and Counterterrorism gave no opinion but outlined the 
pros and cons of each. Three months later, the White House 
restructured the homeland and national security councils but 
preserved each council as a separate body and retained access 
to the President by the Assistant to the President for Homeland 
Security and Counterterrorism. Senator Lieberman issued a 
statement expressing his approval of the reorganization.
    Senator Lieberman and a bipartisan bicameral group of 
lawmakers asked the GAO to examine the coordination between the 
Northern Command and the civilian agencies it supports with 
regard to homeland security. GAO's report, released on 
September 11, 2009, found inconsistent coordination when 
exercising in collaboration with the State, local, and tribal 
governments that the command was created to support. GAO said 
that Northern Command (NORTHCOM) lacks sufficient experience in 
dealing with States; still lacks understanding of individual 
State emergency management structures; does not consistently 
involve States in major command readiness endeavors; and needed 
to improve its ability to share key information such as lessons 
learned and other after action reports.

                            D. Cybersecurity


       1. Protecting Cyberspace as a National Asset Act, S. 3480

    While the Committee has a long history of overseeing cyber 
security, the 111th Congress saw development of major 
bipartisan legislation to protect the cyber networks of the 
Nation's most critical infrastructures, in both the private and 
public sectors. Senate Majority Leader Harry Reid, D-Nev., said 
that cybersecurity was a critically important issue and he 
vowed to move legislation to close the Nation's vulnerability 
in the 111th Congress. Unfortunately, in part due to Senator 
Harry Reid's difficult re-election campaign, time ran out 
before the Senate could vote on the legislation.
    The first cybersecurity hearing of the new Congress was 
held on April 28, 2009, in the context of an ongoing 
Administration review of its cyber security structure and 
policies. The Chairman and Senator Collins used the hearing as 
a platform from which to announce they would draft legislation. 
A second hearing was held September 14, 2009, on the epidemic 
of cybercrime in the private sector. The day before, the 
Chairman and Senator Collins had issued a press release 
announcing the hearing. ``The internet is now a global asset--a 
new strategic high ground--that simply must be secured just as 
any military commander would seize and control the high ground 
of a battle field,'' the Chairman said. ``But unlike a 
battlefield, securing cyberspace is much more complicated to do 
since the Internet is an open, public entity. Security cannot 
be achieved by the government alone. Public-private partnership 
is essential. Together, business, government, law enforcement, 
and our foreign allies must partner to mitigate these attacks 
and bring these criminals to justice.''
    On October 30, 2009, Chairman Lieberman delivered a speech 
before the Chamber of Commerce Cyber Security Task Force 
outlining the principles of his developing legislation. ``There 
would be a Senate confirmed cyber security coordinator in the 
White House,'' he said, ``as well as sufficient authority and 
personnel for DHS to monitor Federal civilian networks and 
defends against malicious traffic; a risk-based approach, 
established by DHS, to secure the most critical infrastructure; 
a supply chain that emphasized security; and incentives to hire 
the best and the brightest cybersecurity employees.''
    The Chairman and Senator Collins, along with Senator Tom 
Carper, D-Del., introduced the Protecting Cyberspace as a 
National Asset Act, S. 3480, and unveiled it at a press 
conference June 10, 2010. ``The need for legislation is obvious 
and urgent,'' the Chairman said. The bill ``is designed to 
bring together the disjointed efforts of multiple Federal 
agencies and departments to prevent cyber theft, intrusion, and 
attacks across the Federal Government and the private sector,'' 
Senator Lieberman continued. ``Our economic security, national 
security, and public safety are now all at risk from new kinds 
of enemies--cyber warriors, cyber spies, cyber terrorists, and 
cyber criminals.'' The bill would secure the Nation's most 
critical infrastructure--the financial system, electrical grid, 
and water treatment facilities--against cyber attack, and 
enhance and improve the security of Federal Government 
networks. By streamlining, coordinating, and improving the 
Federal Government's cyber security efforts, the bill would 
lead to cost savings and improved security.
    On June 15, 2010, the Committee held its third 
cybersecurity hearing, this time specifically on the 
legislation just introduced. ``We need to reorient our thinking 
about the risks inherent to our reliance on the Internet and 
cyberspace,'' the Chairman said in his opening statement. ``A 
sophisticated attacker could cripple our entire financial 
system, take down our electric grid or cause physical 
devastation equal to major conventional warfare.''
    The following day, prominent House members--Jane Harman, D-
Calif., and Peter King, R-N.Y.--said they would introduce 
companion cybersecurity legislation in the House.
    On June 24, 2010, the Committee reported the legislation 
out by unanimous voice vote with no amendments, other than the 
managers' substitute, which consisted of technical changes.
    Meanwhile, Senators Lieberman, Collins, and Carper launched 
an aggressive campaign on behalf of the bill, initially to 
counteract an erroneous report by CNET, which said the bill 
called for an Internet ``kill switch.'' On June 23, 2010, the 
Committee issued a ``Myth v. Reality'' document about the bill. 
On July 1, the Senators announced support from Microsoft Corp. 
and others for the legislation. On July 2, they responded, in a 
strongly written letter to Cisco, IBM, and Oracle, to unfounded 
criticisms of the bill. On July 9, the Senators outlined 
numerous ways in which the bill would strengthen privacy rights 
and civil liberties. On July 12, they announced support for the 
legislation from a technology advocacy group, Online Trust 
Alliance. And on July 16, they announced support from the 
software firm SAP.
    Throughout the month of July, staff negotiated with 
Commerce Committee staff to merge the Lieberman-Collins-Carper 
bill with a bill by Senators Jay Rockefeller, D-W.Va., and 
Olympia Snowe, R-Me. The merged bill was then sent to Senator 
Reid for input from other relevant committees of jurisdiction, 
such as the Intelligence Committee and the Judiciary Committee.

                       2. Electric Grid Security

    On April 30, 2009, Chairman Lieberman introduced 
legislation to increase the security of the electric grid. The 
Critical Electric Infrastructure Protection Act, S. 946, would 
help reduce the susceptibility of the electric grid to cyber 
attack by giving the Federal Energy Regulatory Commission 
additional authority to develop a fix to vulnerabilities 
detected and reported by DHS.

                       3. Google Security Breach

    On January 13, 2010, Chairman Lieberman said that Google 
had ``provided an enormous services to Internet users'' by 
announcing that the Gmail accounts of Chinese dissidents were 
breached from inside China and that 20 other companies also 
were attacked. ``As a nation, and as individuals, we are 
vulnerable to cyber attack from hackers, predators, foreign 
competitors, and terrorists who would compromise, steal, or 
cripple our cyber systems and the information that courses 
through them. Educating Internet users of these threats and 
vulnerabilities is key to thwarting such attacks.''

               4. Declassification of Cybersecurity Plans

    On March 3, 2010, the Chairman praised the Administration 
for announcing it would declassify portions of the 
Comprehensive National Cybersecurity Initiative (CNCI), a 
multi-agency, 12-step plan primarily focused on securing the 
Federal Government's cybersecurity networks and systems. In 
2008, the Chairman had asked that more information about the 
initiative be made public to help Congress and the public 
better understand it.

                             E. Biosecurity


                  1. H1N1 Influenza Pandemic Response

    The Federal response to the H1N1 virus in 2009 tested DHS's 
ability to contain a biological emergency--albeit an emergency 
for which there was forewarning. DHS met the test well in the 
early stages of the virus but failed to deliver enough vaccine 
in time to prevent the worst of the outbreak. The failure was 
primarily due to outdated vaccine manufacturing technology and 
overreliance on foreign vaccine suppliers.
    On April 29, 2009--within days of reports of a new 
influenza outbreak in Mexico and Southern United States--the 
Committee held its first of four hearings to examine the 
Federal response to the emergence and spread of the H1N1 
influenza. ``The Federal response . . . has been strong and 
reassuring,'' the Chairman said. ``But we are in the midst of a 
grave public health emergency whose course is not clear. We 
must remain on alert, take all possible preventative actions, 
and prepare for an escalation of the outbreak.''
    Those words turned out to be prophetic. As spring turned to 
summer and summer turned to autumn, the pre-flu season began to 
see the reemergence of H1N1 and an escalation of cases. 
Eventually, world health officials declared a pandemic.
    By the end of September, over 1 million people had become 
sick with H1N1 and the flu season had not begun yet. In 
Connecticut, 2,000 cases had been identified and nine people 
had died. The Chairman called a field hearing September 21, 
2009, in Hartford, Conn., to examine preparations being taken 
by State public and private health officials to combat H1N1. 
The Chairman concluded ``the State appears to be on track to 
stay out in front of a broad H1N1 outbreak.''
    A month later, on October 21, 2009, when the Committee held 
its third hearing with witnesses from DHS and the Departments 
of Health and Human Services (HHS) and Education, the mood was 
less sanguine. HHS Secretary Kathleen Sebelius reassured the 
Committee that the H1N1 vaccine developed over the summer was 
safe for children and adults. And while 120-160 million 
vaccines had been promised by the end of October, Secretary 
Sebelius said that a glitch in manufacturing meant that 28-30 
million doses would be available by the end of October and 40 
million doses would be available in early November. ``There is 
a significant amount of impatience, restlessness, and just 
plain anxiety out there about the government's ability to deal 
with this public health crisis,'' the Chairman said. ``. . . I 
am concerned that the flu is spreading so rapidly and with such 
intensity, that it may be getting ahead of the public health 
system's ability to prevent and respond effectively to it.''
    The next week, on October 27, 2009, the Chairman and 
Senator Collins wrote to HHS Secretary Sebelius questioning the 
Department's vaccine distribution plans, asking why HHS did not 
implement a plan based on who needed the vaccine most. ``We are 
. . . concerned that HHS lacks the visibility into the 
production process of vaccine manufacturers, domestic and 
foreign, to provide more accurate and timely information of 
such a critical public health asset.''
    Three days later, on October 30, 2009, Secretary Sebelius 
told the Chairman an additional 100,000 doses of the H1N1 
vaccine would be available in Connecticut within days. She also 
said she had dispatched aides to a foreign vaccine manufacturer 
to determine why production had fallen behind expectations. ``I 
share the frustration of the people in Connecticut and across 
the country who have been unable to get an H1N1 vaccine for 
themselves of their children, even though they are at high risk 
for contracting the disease,'' Senator Lieberman said.
    On November 16, 2009, the Chairman and Senator Collins 
wrote again to Secretary Sebelius saying they were dissatisfied 
with her response to their previous letter about vaccine 
distribution plans that were not transparent in their 
implementation or clearly focused on those most at risk. The 
next day, the Committee convened its fourth hearing to get an 
update on the H1N1 vaccine's availability. ``With so many 
eligible Americans still unable to get the vaccine, a good 
situation has turned bad,'' the Chairman said. ``I worry that 
we are undermining confidence, generally, in the public health 
system, and that people most at risk are not only not getting 
the vaccine but have stopped trying.'' The witnesses conceded 
to poor communications leading to mistaken expectations about 
vaccine availability.
    The Committee pressed for faster emergency approval of 
intravenous antiviral medications to care for the sickest of 
patients in intensive care units, once clinical studies and 
scientific reviews had been completed.
    In July 2010, when the House passed H.R. 4899, the Making 
Emergency Supplemental Appropriations for FY2010, it contained 
a provision to cut $2 billion from the pandemic influenza and 
Project BioShield special reserve funds (SRF). On July 22, 
2010, Chairman Lieberman and Senators Judd Gregg, R-N.H., 
Richard Durbin, D-Ill., and Richard Burr, R-N.C., wrote to 
Senate leaders, Harry Reid, D-Nev., and Mitch McConnell, R-Ky., 
criticizing the cut and asking that the Senate reject it. The 
Senate passed the supplemental spending bill with all funds for 
pandemic influenza and SRF intact.
    The Committee continued to encourage the development of new 
recombinant and cell based manufacturing techniques and an 
expansion of domestic vaccine manufacturing plants that will 
shorten the time needed to deliver sufficient vaccine supplies 
to the Nation. The Administration has recently announced new 
domestic manufacturing contracts and a plan to modernize the 
vaccine development process.

                     F. Weapons of Mass Destruction

    The Committee's work involving the risk of terrorist 
attacks using weapons of mass destruction focused both on 
nuclear and biological weapons.
    After a 4-year Committee investigation into the 
Administration's efforts to develop new technology to detect 
smuggled nuclear materials in cargo arriving at the Nation's 
ports, DHS announced it would end development of its Advanced 
Spectroscopic Portal (ASP) monitors for primary cargo screening 
because the technology failed to live up to expectations. On 
March 1, 2010, Chairman Lieberman issued a statement in 
response to a letter he received from Dr. William Hagan, Acting 
Director of the Domestic Nuclear Detection Office (DNDO), which 
was charged with developing second generation detection 
technology. In his letter, Dr. Hagan told the Chairman that 
DNDO would still try to develop ASPs for use at secondary 
screening sites for cargo containers that had set off alarms in 
primary screening.
    ``The threat of nuclear terrorism cannot be ignored, which 
is why I'm an advocate for strategic investments to improve our 
defenses against the smuggling of nuclear materials into this 
country,'' the Chairman said. ``Thus it is unfortunate that 4 
years have been lost on the basic DNDO mission of improving the 
Nation's existing system of domestic defenses against a nuclear 
terrorist attack. . . . If the Department wants to make future 
generations of Americans safer from the threat of a nuclear 
terrorist attack, then it needs to start getting better results 
from its R&D investments.''
    The Committee held it eighth hearing on the ASP program 
June 30, 2010. Chairman Lieberman stated that DNDO had failed 
to achieve its core mission to coordinate a global nuclear 
detection architecture to protect the Nation from nuclear 
terrorism and has been slow to improve the domestic layers of 
defenses outside of seaports and major land ports of entry. 
``Five years into its existence, based on its record, it is 
inescapable to conclude that DNDO requires real retooling, and 
quickly,'' Senator Lieberman said. The GAO also delivered 
testimony that DNDO had failed to develop a strategic plan to 
coordinate the work of other agencies to counter the threat of 
nuclear terrorism, in part because it was distracted over 
several years by efforts to develop the ASP. DHS has deployed 
nearly two thirds of the more than 2,100 radiation portals 
monitors identified in its deployment plan at established ports 
of entry and on the Northern and Southern borders. In addition, 
nearly 100 percent of cargo entering seaports and 100 percent 
of vehicle traffic on the Southern and Northern borders are 
scanned for nuclear material. But cargo coming into the country 
by rail from Canada or Mexico is not scanned, only a small 
percentage of international air cargo is scanned, and DNDO 
still has no plans to scan commercial aviation aircraft 
passengers or baggage.
    The Chairman called a second hearing on the global nuclear 
detection architecture on September 15, 2009, during which GAO 
submitted testimony accusing DHS of ``misleading'' Congress on 
the status of the Cargo Advanced Automated Radiology Systems 
(CAARS) program, intended to detect shielded nuclear material 
smuggled through ports of entry. CAARS, like the ASP program, 
was eventually abandoned. Some $400 million over 5 years was 
spent on CAARS and ASP.
    On December 2, 2009, GAO released a report that found that 
large, foreign ports were unable to scan anywhere near 100 
percent of freight passing through them, as Congress had 
required in the Security and Accountability for Every (SAFE) 
Port Act of 2006. GAO found that while a majority of cargo 
passing through low volume foreign ports was able to be 
scanned, no more than 5 percent of freight coming into large 
ports was scanned. The SAFE Port Act called for a pilot program 
for scanning 100 percent of cargo entering U.S. ports. The 
Committee's second bill implementing the 9/11 Commission 
recommendations required 100 percent x-ray scanning at all 
foreign ports by 2012. But DHS Secretary Napolitano said that 
conditions had been met to extend the deadline.
    The Committee's work to secure the storage and handling of 
the most dangerous bio pathogens was informed by the work of 
the Commission on the Prevention of Weapons of Mass Destruction 
Proliferation and Terrorism, led by former Senators Bob Graham, 
D-Fla., and James Talent, R-Mo., which found that a weapons of 
mass destruction (WMD) terrorist attack was more likely than 
not to occur by 2013, and that a biological attack was more 
likely than a nuclear attack.
    On September 8, 2009, the Chairman and Senator Collins 
introduced S. 1649, the Weapons of Mass Destruction and 
Preparedness Act of 2009 which would have implemented many of 
the 9/11 Commission's recommendations. The bill contained 
measures to improve the security of laboratories working with 
the most dangerous pathogens and to increase the Nation's 
preparedness and response capabilities to WMD terrorist 
attacks.
    The Committee held a hearing September 22, 2009, to discuss 
the bill. Senators Graham and Talent were called as witnesses 
and told the Committee that bio labs using dangerous pathogens 
do not have adequate protections in place to prevent the theft 
of those pathogens for use by terrorists in a WMD attack.
    ``Anyone who thinks we are being overly zealous, imagining 
threats that don't really exist, should look to the arrest this 
week of two men in the United States, who apparently were 
directly tied to al-Qaeda and who apparently were planning an 
attack in the New York area,'' Chairman Lieberman said. 
``Terrorists want to do us great harm and they know that a 
biological weapon could devastate American society.''
    The WMD Prevention and Preparedness Act charted a multi-
layered approach--across the full spectrum of prevention, 
preparedness, and response--to the biological threat. Among 
other provisions, it would have improved biosecurity by 
identifying the most dangerous pathogens and requiring DHS to 
develop security standards for labs that handle those 
pathogens, including risk assessments, personnel reliability 
programs, and physical security. The bill also would have 
supported a National Bioforensics Analysis Center to identify 
the perpetrator of a WMD attack rapidly, and it would have 
required communications plans to convey instructions to the 
public--including whether to evacuate or shelter in place.
    On November 4, 2009, the Committee approved the legislation 
as amended by a manager's substitute but action on the measure 
stalled due to a lack of attention from the Health, Education, 
Labor and Pensions Committee, which had some jurisdiction over 
the bill.
    Since the Committee reported the bill, the Administration 
has taken steps that correspond to provisions in the 
legislation, including promulgating an Executive Order to 
increase laboratory security for dangerous pathogens, enhancing 
forensic capabilities for biological materials, and expanding 
the U.S. Postal Service pilot program to deliver antibiotics 
during a bioterrorism attack.

                     G. Border and Travel Security


                       1. Mexican Border Violence

    The horrific violence just south of the Southern border 
caused by Mexican drug and human trafficking cartels impelled 
the Committee to hold a series of hearings in the 111th 
Congress on the state of U.S. border security and the potential 
for violence would spill over into U.S. territory. The first 
hearing was held March 25, 2009, the day after the Obama 
Administration announced a major initiative to combat the 
cartels that would eventually see two cabinet secretaries and 
the President himself travel to Mexico to meet with President 
Felipe Calderon. Chairman Lieberman announced at the hearing 
that he would work with his colleagues to increase the number 
of Customs and Border Protection (CBP) officers and Immigration 
and Customs Enforcement (ICE) investigators to step up 
investigations and enforcement actions, and to improve 
coordination of the various Federal agencies working at the 
Southern border.
    Six days later, on March 31, 2009, the Chairman and Senator 
Collins announced they would offer an amendment to the FY2010 
Budget Resolution to bolster U.S. efforts to fight violence 
along the border. The amendment called for an additional $550 
million for Federal agents, investigators, and resources to 
stem the flow of drugs smuggled north and money and guns 
smuggled south. ``The Mexican Drug cartels are a clear and 
present danger to the United States that compels us to provide 
our Federal law enforcement agencies with additional funding,'' 
the Chairman said.
    On April 1, 2009, the Senate adopted a Lieberman-Collins 
amendment to provide $130 million to ICE for 350 investigators; 
$20 million for DHS to improve tactical communications for CBP 
and ICE; $20 million for CBP to modernize its database to 
identify potential criminals at ports of entry; $50 million for 
Alcohol, Tobacco and Firearms Agency to hire an additional 150 
investigators and 50 inspectors; $10 million for local law 
enforcement; $20 million for the Human Smuggling and 
Trafficking Center at DHS; $10 million for DHS's Office of 
International Affairs; and $30 million to reimburse State and 
local law enforcement for their participation in border 
actions.
    On April 20, 2009, the Committee held its second hearing on 
border security in the field, in Phoenix, Ariz. The Chairman 
reiterated his call for additional resources to counter the 
Mexican cartels. ``DHS is redeploying resources to the border 
to step up the detection of firearms and cash bound for Mexico 
and drugs and undocumented aliens bound for the United 
States,'' Chairman Lieberman said. ``I am determined to expand 
the resources available to DHS, the Departments of Justice and 
State, and local law enforcement agencies in the border region 
to take on the cartels in the most forceful way we can.''
    The Chairman also announced plans to push for legislation 
to give Federal officials authority to investigate and 
confiscate stored value cards, which can hold tens of thousands 
of dollars, and are increasingly being used by cartels to 
smuggle money earned from the illegal drug sales in the United 
States back into Mexico. The cards do not have to be declared 
at the border and border officials have little authority to 
police them.
    The Chairman wrote to the leaders of the Appropriations 
Committee on April 29, 2009, outlining his views on border 
security funding needs and proposing an additional $275 million 
be added to the emergency supplemental spending bill wending 
its way through Congress.
    On July 24, 2009, Border Patrol Agent Robert Rosas was 
murdered at the border. The Chairman conveyed his condolences 
and added that the agent's death was a ``grim reminder of the 
dangers'' border agents face every day. ``They are on the front 
lines, just as our troops are fighting abroad, and they deserve 
our appreciation and our support.''
    The Committee held its third hearing on border security on 
April 20, 2010--examining the troubled SBInet program--a 
network of cameras and sensors that was intended to stretch 
across 2,000 miles of the Southern border to help secure the 
Southwest border. After 5 years and a direct cost of $770 
million to taxpayers, the cameras and sensors now cover just a 
23-mile test area. ``By any measure, SBInet has been a 
failure,'' Chairman Lieberman said, ``A classic example of a 
program that was grossly oversold and has badly under-delivered 
. . . it should be brought to the point where it works or we 
should scrap it.''
    Shortly before the hearing, DHS Secretary Janet Napolitano 
announced a funding freeze for SBInet pending an internal 
review of the program and of other alternative technologies.
    At the hearing, the Chairman also announced his support for 
sending National Guard troops to the Southern border on a 
temporary basis. The violence on the Southern border, the 
Chairman said, ``is a homeland security problem.'' When the 
Guards were deployed to the border at the end of May, the 
Chairman issued a statement in support of the President's 
decision.

                          2. Terrorist Travel


                         Secure Identification

    On July 15, 2009, the Committee held a hearing on the 
problems of creating secure identification for American 
travelers, one of the recommendations of the 9/11 Commission 
report. The REAL ID Act of 2005 contained so many onerous 
mandates that States were unable or unwilling to comply by the 
law's stated deadlines. The Providing for Additional Security 
in States' Identification (PASS ID) Act of 2009, S. 1261, was 
intended to help States achieve the goals of creating national 
identification security standards. ``We cannot ignore the fact 
that legislatures of 13 States have passed laws prohibiting 
their States from complying with REAL ID as it presently 
stands,'' the Chairman said. ``We must work with States to help 
them create secure identification documents while still 
protecting privacy concerns and ensuring that States can 
comply.'' The PASS Act was marked up and ordered reported out 
of Committee on July 29, 2009.

                    Electronic Travel Authorization

    The Committee's oversight of border security also included 
monitoring the Electronic System of Travel Authorization 
(ESTA), which was intended to track terrorists attempting to 
enter the United States from visa waiver countries. On January 
13, 2009, Chairman Lieberman chastised DHS for trying to expand 
the number of countries whose citizens may enter the United 
States without a visa when the system was not yet doing what it 
was supposed to do for those 35 countries already in the 
program.

                 Traveler Enforcement Compliance System

    On March 23, 2010, Chairman Lieberman and Senator Collins 
pressed DHS Secretary Janet Napolitano on TECS modernization 
efforts. In a letter to the Secretary, the Senators pointed out 
that TECS is ``the backbone for recording, managing, and 
maintaining law enforcement actions taken by Customs and Border 
Protection (CBP) and Immigration and Customs Enforcement (ICE). 
TECS is a critical component of our government's efforts to 
stop terrorists from traveling. . . . Expanded far beyond its 
original scope, TECS is in critical need of modernization.'' 
The Senators asked for answers to six key questions.

                           TSA/U.S. Marshals

    On December 8, 2009, the media reported that Transportation 
Security Administration (TSA) managers had posted TSA's 
Standard Operating Procedure Manual on the Internet. Chairman 
Lieberman issued a rebuke, saying the posting of the manual 
``is an embarrassing mistake that calls into question the 
judgment of agency managers. A security document, redacted or 
not, is not the type of document we want to share with the 
world. That it was incompetently redacted only compounds the 
error. TSA must swiftly complete its investigation into this 
incident, institute better controls over what it posts online, 
and strengthen its security procedures to make sure this 
incident has not compromised the Nation's aviations security.''
    On August 19, 2010, the Chairman, Senator Collins, and four 
other senators sent a letter to U.S. Marshals Service Director 
John Clark asking for a full explanation of why the Service had 
been storing images produced from whole body scanning machines 
taken at a U.S. Courthouse in Orlando, Fla., from February 
through July 2010. In addition, they asked the Service to 
identify other locations where scans may have been stored from 
other whole body imaging technology.

                               Air Cargo

    On November 16, 2010, The Committee held a hearing titled 
``Closing the Gaps in Air Cargo Security,'' to determine 
Homeland Security officials' ability to secure air cargo 
adequately in the aftermath of a shipment of explosive 
materials from Yemen aboard cargo and passenger airplanes bound 
for the United States.
    Chairman Lieberman pressed the witnesses to obtain 
identifying information for air cargo bound for the United 
States early in the shipping process so that DHS can target 
high-risk cargo more effectively. The Chairman voiced support 
for the Transportation Security Administration's (TSA) use of 
Advanced Imaging Technology (AIT) and body pat downs on air 
passengers. TSA's failure to explain the need for these new 
procedures to the traveling public, the Senator suggested, may 
have led to a recent outcry about their intrusiveness.
    ``Shoe bombers. Liquid bombers. Underwear bombers. Again 
and again and again, terrorists have been seeking ways to blow 
up an airplane,'' Senator Lieberman said. ``In the most recent 
attempt, terrorists hid bombs inside the toner cartridges of 
printers and sent them to the United States as air cargo. . . . 
We need to anticipate the terrorists' next move, not just react 
to the last one.''
    On the new passenger security practices, the Chairman said, 
``Unfortunately, these are the times in which we live. We have 
to do everything we can to protect the traveling public. What 
you are doing with Advanced Imaging Technology and the pat down 
is very difficult but it is necessary for the security of the 
American public.''

                 H. Emergency Preparedness and Response


                                1. FEMA

    Following passage of the Post-Katrina Emergency Management 
Reform Act of 2006 to restructure the Federal Emergency 
Management Agency (FEMA) so that for the first time it would be 
prepared for not just a disaster, but a catastrophe, Senator 
Lieberman engaged in close oversight of the agency to ensure 
the Post-Katrina Act was implemented.
    First and foremost, the Post-Katrina Act kept FEMA in DHS 
where it was core to the Department's disaster response and 
recovery efforts. Nevertheless, a contingent nostalgic for the 
Clinton era FEMA under James Lee Witt sought to strip the 
agency from DHS and restore its independence, which ended in 
2003 when it was folded into DHS. On February 17, 2009, the 
Chairman welcomed support for keeping FEMA in DHS when a new 
DHS Inspector General report concluded that FEMA should remain 
where it is. Chairman Lieberman also announced that eight 
groups representing more than 1.7 million first responders 
supported keeping FEMA in DHS. On April 22, 2009, during the 
HSGAC confirmation hearing for FEMA Administrator, nominee 
Craig Fugate agreed FEMA should stay within DHS. Finally, on 
May 13, 2009, the Chairman thanked President Obama for voicing 
his opinion that FEMA should remain in DHS, putting to rest 
once and for all the questions and debates about the agency's 
placement (even though DHS Secretary Napolitano had announced 
previously that the Administration had no plans to strip FEMA 
out of DHS.)
    On March 17, 2009, the Chairman laid out his DHS budget 
priorities in his annual letter to the Chairman and the Ranking 
Member of the Budget Committee, advocating that funding for 
homeland security grants be maintained at levels no lower than 
FY2009. The Senator said FEMA's budget should be increased by 
$125 million over FY2009 appropriated levels, Congress should 
authorize $220 million in FY2010 for the Pre-Disaster 
Mitigation Grant Program, and funding should be increased 
substantially for the Emergency Food and Shelter program given 
the recession that was gripping the country.
    When President Obama released his FY2010 budget on May 7, 
2009, Chairman Lieberman criticized the flat funding for FEMA's 
operations budget as counterproductive to FEMA's steady 
transformation into an agency capable of responding to 
catastrophes.
    On May 20, 2009, Chairman Lieberman wrote to the Chairman 
and Ranking Member of the Appropriations Homeland Security 
Subcommittee to make the case for increased funding for FEMA so 
it could continue its transformation into an agency capable of 
responding to a catastrophe.
    On July 20, 2009, Chairman Lieberman and Senator Mary 
Landrieu, D-La., announced the release of four new GAO reports 
they had requested detailing problems with Post-Katrina 
recovery efforts. Among the problems: Slow distribution of 
Federal funds, barriers to receiving adequate health care, and 
poorly coordinated case management programs. ``We must continue 
to fight for more effective programs to help those in need,'' 
the Chairman said. Staff, meanwhile, was working on draft 
legislation to improve disaster recovery programs and the 
administration of both disaster response and recovery 
operations.
    On July 23, 2009, the Chairman said he was heartened to 
learn from a new GAO report that FEMA had significantly 
improved its fraud prevention controls, which were a central 
element of the Post-Katrina Act. The Chairman and four other 
HSGAC Members responded that same day to a DHS Inspector 
General report that FEMA did not respond quickly or effectively 
to problems caused by potentially elevated levels of 
formaldehyde in trailers housing survivors of Hurricanes 
Katrina and Rita. In a letter to Administrator Fugate, the 
Senators criticized FEMA for its initial failure to act, 
recognized that FEMA had made improvements since the time 
period covered by the report, asked FEMA to quickly implement 
the report's recommendations, and asked for further 
information.
    On August 29, 2009, the Chairman and Senator Collins wrote 
to Administrator Fugate on the fourth anniversary of Hurricane 
Katrina to ask him to continue moving FEMA forward to ensure 
that our Nation is capable of helping survivors recover from 
disasters.
    But days later, Chairman Lieberman criticized FEMA for 
failing to have a proper housing strategy in response to a GAO 
report requested by Senators Lieberman and Landrieu and made 
public September 5, 2009. The report found that the lack of 
affordable rental housing has been a major challenge facing 
survivors of Hurricanes Katrina and Rita and that a vital 
component of disaster recovery must be repair of damaged rental 
properties. Lieberman said the Nation must be prepared to 
provide more rental housing in the future.
    On November 5, 2009, in response to a House Committee vote 
supporting stripping FEMA out of DHS, Chairman Lieberman said, 
``FEMA is exactly where it belongs . . . at the center of the 
Department of Homeland Security where it plays a critical role 
in helping to protect Americans where they live and work from 
both natural and man-made disasters.''
    ``Today FEMA is busy building itself into a stronger, more 
accountable agency than it was in 2005, with a renewed sense of 
mission, greater stature, and more resources. Rather than 
splintering apart agencies that work together well, the 
President and Secretary Napolitano wisely chose to allow FEMA 
to rebuild itself into a world class disaster preparedness and 
response agency.''
    The second year of the 111th Congress began with negative 
critiques of FEMA's disaster recovery capabilities. On March 1, 
2010, Chairman Lieberman, Senator Collins, Disaster Recovery 
Subcommittee Chairwoman Mary Landrieu, and Senator Lindsey 
Graham joined in a letter to Secretary Napolitano complaining 
that the agency's disaster recovery plan had many gaps. The 
purpose of the Disaster Recovery Framework is to provide 
guidance to communities on how the Federal Government will help 
them with disaster recovery. Among the problems in the plan 
were ambiguities about leadership roles, authorities and 
responsibilities; undefined and vague recovery support 
functions meant to bring agencies together to focus on 
recovery; and a lack of emphasis on mitigation and the 
voluntary private sector preparedness certification program.
    The following month, on April 14, 2010, the Government 
Accountability Office (GAO) released a report urging 
improvements in FEMA's Long-Term Community Recovery program, 
designed to help communities recovery from disasters. ``Clearly 
serious problems are impeding FEMA's ability to help 
communities recover from disasters,'' the Chairman said. 
``These issues need to be addressed, and I am hopeful that the 
National Disaster Recovery Framework, which the Administration 
is working on, will do just that. I am encouraged that FEMA has 
agreed with GAO's recommendations to improve this vital tool in 
helping communities recover and rebuild, and I look forward to 
working with them to make that a reality.''
    Later that month, Chairman Lieberman and Senator Collins 
introduced legislation to authorize an effective, competitive 
pre-disaster mitigation grants program. The reauthorization 
bill, introduced on April 22, 2010, codified the program that 
had been surviving on annual appropriations through DHS since 
2008. ``The benefits of working to alleviate damage before it 
happens cannot be disputed,'' the Chairman said. ``If 
communities are prepared for disasters and have taken measures 
to lessen their impact, those communities will survive 
disasters with greater resiliency. This program is a tried-and-
true way to save lives, prevent damage, and reduce post-
disaster costs.'' The measure passed the Senate 2 months later 
on June 29, 2010.
    The Deepwater Horizon oil drilling rig exploded in 
spectacular fashion on April 20, 2010, killing 11 people. 
Because the disaster was so enormous, the Federal Government 
was called on to step in, and its response capabilities were 
tested in real-time. The Coast Guard was essential to the 
recovery effort. A month later, on May 18, Chairman Lieberman 
called a hearing to examine any plans in place to deal with a 
major oil spill. He concluded that neither BP nor the Federal 
Government were prepared and he called for a hold on future 
leases for deep water drilling until better response plans 
could be developed. ``As far as I can tell, BP's response 
plans, filed and approved by the Federal Government, don't 
effectively deal with the enormous accumulation of oil under 
water now in the Gulf. And perhaps most important, in the 
approved BP response plans, there appears to be total reliance 
on the blowout preventer, and no plans filed for what to do to 
control and stop a spill if a blowout preventer fails in deep 
water, as it did in the current case.''
    The oil spill also provided Senator Lieberman with an 
opportunity to promote the private sector preparedness program 
that he had authored in the Post-Katrina Emergency Management 
Act, approved by Congress in 2006. In a letter to DHS Secretary 
Janet Napolitano dated June 3, 2010, Senator Lieberman and 
House Homeland Security Committee Chairman Benny Thompson 
complained that implementation was far behind schedule. 
``Preparedness is a necessity not a luxury,'' they wrote.
    Ten days later, on June 15, 2010, the Senators praised the 
Department for moving forward to engage the private sector in 
preparedness for its own property and assets. ``Time and again, 
the value of being prepared for catastrophe reaps dividends in 
fewer lives lost and a quicker return to business,'' Senator 
Lieberman said. ``All of us share a responsibility for being 
prepared, and the more we are prepared the more resilient we 
will be in recovering from a catastrophe. Given that the 
private sector owns 85 percent of our critical infrastructure--
communications, energy, and financial networks, for example--
the private sector needs to contribute to the preparedness 
effort.''
    August 29, 2010, marked the fifth anniversary of Hurricane 
Katrina's landfall. The Chairman observed the anniversary by 
releasing a new GAO report on the Federal Government's recovery 
efforts along the Gulf coast. ``Five years after Hurricanes 
Katrina and Rita, too many families along the Gulf Coast are 
still struggling to recover,'' Lieberman said. ``FEMA has made 
tremendous progress since 2005 and is evolving into a 
competent, professional emergency management organization.''
    But, he added, ``FEMA must improve its preparedness to 
assist in future recoveries after a large scale disaster. . . . 
The simple fact is that the distress that continues to plague 
many displaced Gulf Coast families--from causes both natural 
and man-made--spotlights the imperative to have world-class 
recovery systems in place so that government, on all levels, as 
well as individual citizens, are ready to help their 
communities recover from catastrophic disaster.''

                    2. Fighting For First Responders

    In the 111th Congress, performance standards were finally 
instituted for the homeland security grants program. Introduced 
in the House by Representative Henry Cuellar, the Redundancy 
Elimination and Enhanced Performance for Preparedness Grants 
Act, H.R. 3980, required FEMA to develop and implement 
performance measures for homeland security grants, as well as 
identify and eliminate redundant reporting requirements imposed 
on State and local recipients of those grants. The measure 
called for FEMA to develop and submit to Congress action plans 
and timetables within 90 days and to report periodically 
thereafter to Congress on its progress. The bill further 
required FEMA to work with the National Academy of Public 
Administration on the development of grants performance 
measures. The bill was reported out of the Committee on April 
28, 2010, and passed by Congress September, 28, 2010.
    On August 2, 2009, the Chairman introduced a substitute for 
the First Responder Anti-Terrorism Training Resources Act, H.R. 
3978, which then passed out of Committee. The bill allowed the 
Secretary of Homeland Security to accept donations that 
strengthen FEMA's preparedness for and response to terrorism. 
The bill gave the DHS Secretary authority to accept donations, 
both of property and services, for activities of FEMA's Center 
for Domestic Preparedness (CDP) that are related to 
preparedness for and response to terrorism. CDP currently lacks 
the authority to accept gifts and consequently has had to turn 
down donations such as used buses and subway cars that could be 
used for training. The bill was approved by the Senate on 
August 5, 2009, and by Congress on September 15, 2009.
    On April 27, 2010, the Chairman joined with Senators 
Christopher Dodd, Tom Carper, Susan Collins, and John McCain to 
introduce the Fire Grants Authorization Act, H.R. 3791. The 
bipartisan bill would reauthorize the Assistance to 
Firefighters Grant (AFG), the Staffing for Adequate Fire and 
Emergency Response Grant (SAFER), and the Fire Prevention and 
Safety Grant (FP&S). These grants provide critical help to 
localities to buy necessary safety and prevention equipment and 
to hire additional staff.
    The Committee reported out the bill the following day.
    ``Since September 11 and the Hurricane Katrina catastrophe, 
firefighters in communities, large and small, have assumed a 
greater role in emergency preparedness,'' the Chairman said. 
``More than ever towns and cities need the ability to hire 
additional firefighters, purchase new equipment, and initiate 
education and training programs, all of which is critical to 
ensuring they can safely perform their dangerous jobs.''

                    3. D-Block Spectrum Legislation

    On July 21, 2010, Chairman Lieberman and Senator John 
McCain, R-Ariz., demonstrated their commitment to helping first 
responders by introducing legislation that would provide them 
with more broadband spectrum to help them build a 21st Century 
interoperable communications network. The First Responders 
Protection Act of 2010 would have given the public safety 
community the 700 MHz D-Block spectrum and provide $5.5 billion 
from the auction of a different block of spectrum to support 
the construction of towers, transmission facilities, and 
equipment for the new public safety network. Another $5.5 
billion in auction proceeds would go to cover recurring 
maintenance and operational costs. The legislation was referred 
to the Commerce Committee where no action was taken.

                     4. Deepwater Horizon Oil Spill

    On May 17, 2010, the Committee held a hearing titled ``Gulf 
Coast Catastrophe: Assessing the Nation's Response to the 
Deepwater Horizon Oil Spill.'' Unlike other hearings that were 
held, which focused largely on the cause of the spill, the 
Committee focused primarily on the public and private sector 
preparedness for and response to the spill. The Committee 
subsequently sent a letter to Senator Harry Reid (which he had 
requested) listing recommendations for addressing the spill and 
reducing the risks from a similar spill in the future.

                          5. Chemical Security

    Efforts continued to strengthen the Federal Government's 
security of hundreds of chemical sites around the country and 
to chart a path forward to reduce the risk of widespread 
casualties should a site be attacked by terrorists. The 
Chemical Facilities Anti-Terrorism Standards (CFATS) guides 
oversight of chemical plants but its authorization was due to 
expire in 2010. The Committee held a hearing March 3, 2010, to 
assess the prospects for more permanence for the security 
program.
    In his opening statement at the hearing, the Chairman 
observed: ``Although there was intense controversy over whether 
to begin a chemical security program at all--because of 
opposition to government regulation in this area--there now 
seems to be general agreement that CFATS is making a positive 
contribution to our national and homeland security and should 
be continued. So the question becomes: Should we improve it and 
if so how can we improve it as we extend it?''
    At a Committee markup on July 28, 2010, of Senator Collins' 
chemical security legislation, H.R. 2868, Senator Lieberman 
expressed his disappointment that the Committee could ``do 
better'' and include waste water facilities and chemical plants 
in port areas under CFATS, and include ``inherently safer 
technologies'' in chemical security legislation. The measure 
passed out of Committee on a 13-0 vote, with the Chairman 
voting aye. The legislation was not considered on the Senate 
floor, and the CFATS program was extended for another year.

                              6. Red Cross

    On September 28, 2010, the Chairman announced final passage 
of legislation he had introduced the year before--which was 
passed by the Senate on May 24, 2010, and the House on 
September 15, 2010--to help the Red Cross, other disaster 
relief agencies, State, and local governments obtain goods and 
services for disaster victims. The Federal Supply Schedules 
Usage Act of 2010, S. 2868, will allow the Red Cross to 
purchase goods and services from the General Services 
Administration (GSA), which negotiates contracts far in advance 
of a disaster and typically gets a better price than relief 
agencies or State and local governments. The bill was signed 
into law on October 8, 2010.

                      I. Federal Building Security

    The Federal Protective Service (FPS), an agency within the 
Department of Homeland Security, is responsible for protecting 
more than 9,000 Federal buildings around the country--most of 
them outside of Washington, DC--and the employees and citizens 
who work within or visit those buildings. After it was absorbed 
into DHS in 2003, the agency deteriorated, and eventually poor 
management and budget shortfalls were threatening the agency's 
mission. To try to correct the problems, Chairman Lieberman, 
Senators Collins, Akaka, and Voinovich, asked the GAO in 2007 
to investigate the agency. In response to the request, GAO 
released four reports--the first on June 11, 2008. On April 13, 
2009, GAO issued its second report, detailing the poor training 
of FPS's contract guards, poor oversight of guard certification 
requirements, and failure by contract guards to comply with 
relevant rules and regulations.
    Later in 2009, on July 8, the Committee held a hearing on a 
third report--which was to be issued formally in April 2010. 
That final report revealed security at Federal buildings so lax 
that GAO investigators were able to smuggle bomb-making 
materials through security, construct bombs in restrooms, and 
walk about the building undetected. Chairman Lieberman and 
Senator Collins announced that they would draft FPS reform 
legislation. ``As we approach the eighth anniversary of 9/11, 
and some 14 years after the bombing at the Federal building in 
Oklahoma City,'' the Chairman said, ``it is outrageously 
unacceptable that the Federal employees working within these 
buildings and the citizens who pass through them are still so 
utterly exposed to potential attack by terrorists or other 
violent people.''
    GAO's fourth report, issued August 5, 2010, found that FPS 
did not adequately train its contract guards and that no one is 
accountable for decisions made at individual building that FPS 
protects.
    The GAO's latest report on the Federal Protective Service 
makes it clear that this agency is in ``dire need of reform,'' 
the Chairman said.
    The following month, on September 20, 2010, the Chairman 
and Senator Collins called FPS a dysfunctional agency and 
introduced the Supporting Employee Competency and Updating 
Readiness Enhancements for Facilities (SECURE) Act of 2010 (S. 
3806). A manager's substitute to the bill was marked up and 
ordered reported out of Committee on September 29, 2010. Among 
other things, the measure would ensure that FPS has sufficient 
personnel to carry out is mission; require FPS to maintain 
testing programs to assess guard training and to establish 
procedures for retraining or terminating ineffective guards; 
and ensure FPS is prepared to address the threat of explosives.

                        J. Internal DHS Matters


                               1. Budget

    Every year, the Chairman sends a letter to the Chairmen and 
Ranking Members of the Senate Budget and Appropriations 
Committees with broad recommendations for DHS's budget that 
year. By March 17, 2009, when the Chairman sent his letter to 
the Budget Committee, the Administration had only released a 
general outline for DHS's budget in Fiscal Year 2010, rather 
than detailed justifications, so the letter described 
priorities broadly--including robust budgets for cybersecurity, 
FEMA, and homeland security grants.
    When the complete Fiscal Year 2010 budget request was made 
public on May 7, 2009, the Chairman was satisfied with its 6 
percent increase for homeland security spending, including 
increases for border security and cybersecurity. He noted with 
disappointment the flat budget for FEMA and cuts in homeland 
security grants programs. The Chairman made his disappointment 
known at a hearing May 12, 2009, with Secretary Napolitano as 
the sole witness. On May 20, 2009, he sent a similar letter to 
the Appropriations Committee
    For Fiscal Year 2011, the Chairman again sent his annual 
letter to the Budget Committee, on February 24, 2010, noting 
the tough economic climate and the need to make hard budget 
choices. He recommended small increases for aviation security 
and for management programs to improve the operations of the 
Department. The Administration's 2011 homeland security budget 
increase was even more modest than the previous year, just 
under 3 percent. Senator Lieberman sent his annual letter to 
the Appropriations Committee on March 25, 2010.

                           2. High-Risk List

    In 2009, the Department of Homeland Security was one of 30 
agencies, departments, or programs placed on the GAO's biennial 
list of Federal agencies most at risk of waste, fraud, abuse, 
mismanagement, or in need of reform. DHS, established in 2003, 
made the list in 2007 as well. The Chairman said the placement 
was ``distressing but not unexpected.''
    ``Because of the Department of Homeland Security's 
essential mission to keep the American people safe, GAO's 
listing of the entire Department, once again, is distressing 
but not unexpected,'' Lieberman said. ``We are acutely aware of 
the Department's progress, as well as its shortcomings, and we 
have put its continued improvement at the top of our to-do 
list.''

             3. Funding for a consolidated DHS headquarters

    On January 8, 2009, the National Capital Planning 
Commission (NCPC) approved a master plan for a consolidated DHS 
headquarters at the St. Elizabeths Hospital Campus in Southeast 
Washington. The Chairman weighed in, saying, ``A unified 
headquarters, which would bring together many of the 
Department's components into a single facility and allow 
employees to work more efficiently and interactively is a 
critical cornerstone of the efforts to improve management at 
the Department of Homeland Security.''

                K. Quadrennial Homeland Security Review

    The Chairman and Senator Collins held a hearing July 21, 
2010, to examine DHS's long range strategic plans, known as the 
Quadrennial Homeland Security Review (QHSR) and the Bottom Up 
Review (BUR). The Chairman told DHS Deputy Secretary Jane Holl 
Lute that the plans, while helpful in setting the Department's 
top priorities, were not specific enough. ``These documents 
provide a broad narrative of the Department's key missions and 
its goals for improving those missions, although the narrative 
is too broad and the goals too vague,'' Chairman Lieberman 
said. ``There has been a lot of growth in homeland security 
since 9/11 and it's happened quickly . . . but we can't just 
let the machine operate without control from the Executive 
Branch and oversight from the Legislative Branch.''

                           CONTRACTING REFORM


                    A. Defense Contract Audit Agency

    Through hearings, oversight, and an investigation conducted 
by GAO at the Committee's request, the Chairman was 
instrumental in spurring a change of leadership at the top of 
the Defense Contract Audit Agency (DCAA) and a major reform 
effort within the agency, which is responsible for auditing 
approximately $500 billion dollars of contractor costs per 
year. On September 23, 2009, The Chairman and Senator Collins 
held a hearing to determine who within the agency was 
responsible for reform. GAO released a report requested by 
Senators Lieberman, Collins, and McCaskill, which found a 
number of ongoing problems at DCAA. The report was the fifth in 
recent years to report problems with the agency's success in 
meeting its own auditing standards.
    ``The Committee has run out of patience,'' the Chairman 
told Defense officials. ``Too much is on the line and the time 
for incremental change is over. Each and every audit that GAO 
reviewed failed to meet auditing standards. That is not an 
aberration or a case of a few employees not knowing what to do. 
That indicates systemic issues within the agency. . . . We need 
to identify the root causes (of problems) and get on to the 
solutions that the taxpayers demand and certainly deserve.''
    Because the Committee exposed major mismanagement and 
widespread auditing deficiencies within the agency, DCAA is 
reforming its audit approach, metrics, and human capital 
practices, and has begun the process of removing personnel who 
have abused the taxpayers' trust.
    HSGAC is committed to continued oversight of DCAA in order 
to address systemic problems at the agency and institute 
meaningful reform and will continue to have quarterly meetings 
with the new Director of DCAA to oversee the progress of new 
initiatives to improve the culture of the agency. Turning DCAA 
around will protect billions of taxpayer dollars from waste, 
fraud, and abuse.

             B. Reducing Reliance on Government Contractors

    The Committee worked with the Administration to oversee the 
implementation of contracting reforms expected to save billions 
of taxpayer dollars and with the Office of Federal Procurement 
Policy as they issued draft guidance to ensure that inherently 
governmental functions are carried out by government employees.
    On July 29, 2009, the Office of Management and Budget (OMB) 
issued new guidelines on contracting procedures--specifically 
on improving acquisition, managing the multi-sector workforce, 
and expanding contractor performance information. The Chairman 
said the guidelines ``draw welcome attention to the need for 
robust human capital planning. Contractors can--and should--
provide the government with valuable expertise and services, 
but at the same time, we must ensure that each agency has the 
in-house skills necessary to maintain control of its mission 
and operations.''
    As part of its routine oversight of DHS contracting, 
Committee staff learned at a briefing that far more contractors 
were employed at DHS than anyone expected. In a strongly-worded 
letter to DHS Secretary Napolitano dated February 23, 2010, the 
Chairman and Senator Collins expressed shock to learn that DHS 
not only relies too heavily on contractors but that half of its 
workforce is made up of contractors. ``The sheer number of DHS 
contractors currently on board again raises the question of 
whether DHS itself is in charge of its programs and policies or 
whether it inappropriately has ceded core decisions to 
contractors.''
    The Senators asked for a unit by unit breakdown of where 
the contractors work and assurances that contractors are not 
performing ``inherently governmental work'' and other core 
functions.

          C. Special Inspector General for Iraq Reconstruction

    The Chairman commented October 30, 2009, on the latest 
report from the Special Inspector General for Iraq 
Reconstruction (SIGIR), which showed that the contractor hired 
by the Federal Government to provide support to the Iraqi Army 
could not support 14 percent of costs examined by the SIGIR. In 
one instance, the contractor charged the government $196 for 
bags of washers that should have cost $1.22 each. SIGIR 
identified $4 million in potential overbillings. The Chairman 
said ``Despite volumes of audits and investigations identifying 
the waste and fraud that flows from weak Department of Defense 
contract oversight, the Department still doesn't have the 
personnel or procedures in place to hold contractors 
accountable.''
    The SIGIR produced another report on the Department of 
State's oversight of a $2.5 billion DynCorp contract for 
support of the Iraqi police training program. The report found 
repeated oversight weaknesses and untold amounts of wasted 
taxpayer dollars. ``The State Department appears to be 
sleepwalking through its oversight obligations,'' Senator 
Lieberman said. ``It has known for years'' about the weak and 
sloppy oversight of the contract and has ``repeatedly committed 
to beef up'' oversight staffing. ``Yet, we still seem to be at 
the starting point. . . . It is inexplicable that this has not 
been done yet.''

                          D. New Subcommittee

    The issue of Federal contracting--which costs taxpayers 
over $500 billion a year, was so ripe for additional oversight 
that Chairman Lieberman announced on January 29, 2009, he was 
establishing a new Ad Hoc Subcommittee called Ad Hoc 
Subcommittee on Contracting Oversight for that purpose. Senator 
McCaskill was named to Chair the Subcommittee. For years, the 
GAO has put Federal contracting on its list of agencies, 
departments, or programs at risk for waste, fraud, abuse, 
mismanagement, or in need of reform. ``Management of Federal 
Contracts is one of the greatest operational challenges facing 
the Federal Government,'' the Chairman said. ``Spending on 
Federal contracts rose to an astounding $535 billion last year. 
. . . This is a problem that needs as much oversight as we can 
muster.''

                 AMERICAN RECOVERY AND REINVESTMENT ACT

    Early in the new Congress, the Committee began extensive 
oversight of the $787 billion American Recovery and 
Reinvestment Act (ARRA), also known as the stimulus package, 
enacted in February 2009 to jumpstart the weakening economy by 
creating jobs and stimulating consumer spending.
    Given that $499 billion would be spent directly on programs 
and projects (the remaining $288 billion was intended for tax 
relief), Chairman Lieberman directed the Committee to monitor 
government safeguards to prevent waste, fraud, and abuse and to 
ensure transparency in the spending of such a large pot of 
money. The Committee held five hearings--including a field 
hearing in Connecticut--to ``ensure that measures are put into 
place to prevent cost overruns, provide strict oversight of 
contractor performance, and ensure that fraud is promptly 
prosecuted in all aspects of stimulus spending,'' the Chairman 
said.
    Working with Administration officials and State and local 
government stakeholders, the Committee helped to resolve 
potential problems in administering the stimulus funds and 
promote understanding of the Act's provisions and their impact.
    The first and second hearings on March 5 and April 2, 2009, 
focused on the measures required by the ARRA to avoid waste and 
mismanagement. The third hearing on April 8, 2009, in Hartford, 
Conn., looked at how $2.9 billion in stimulus funds were being 
spent in Connecticut. The fourth hearing on April 23, 2009, 
concentrated on how State and local governments were spending 
their stimulus money and the need for flexibility in State 
spending. And the fifth hearing on September 10, 2009, looked 
at how the Administration had streamlined its red tape to 
ensure faster spending of stimulus dollars absent waste, fraud, 
and abuse.
    The day before the last hearing, Chairman Lieberman wrote a 
letter to the Office of Management and Budget Director Peter 
Orszag and his deputy Robert Nabors commending the positive 
impact ARRA was having on the economy but urging OMB to pick up 
the pace of stimulus spending to increase its impact on the 
unemployed.
    Ultimately, Chairman Lieberman concluded the Administration 
met the levels of transparency and accountability required by 
the Act, setting a worthy model for large Federal spending 
programs in the future.

                      PROTECTING FEDERAL EMPLOYEES


                          A. Domestic Partners

    For the third Congress in a row, Chairman Lieberman 
advocated for the Domestic Partnership Benefits and Obligations 
Act, S. 1102, a bill to provide the same employment benefits 
to--and require the same obligations of--same sex domestic 
partners of Federal employees that are available to and 
required of opposite sex spouses of Federal employees. The bill 
attracted 23 co-sponsors.
    Senator Lieberman and Senator Collins introduced the bill 
on May 20, 2009, when the Chairman delivered a floor speech 
declaring, ``This legislation makes eminent sense for two 
reasons: It will help the Federal Government attract the best 
and the brightest and it is the fair and right thing to do from 
a human rights perspective.''
    On October 15, 2009, the Committee held a hearing on the 
measure with Office of Personnel Management Director John Berry 
testifying that the cost of the bill in 2010 would represent 
one-fifth of a percent of the annual total cost of Federal 
employee health insurance.
    A growing majority of private sector companies extend 
family benefits for their employees in same-sex domestic 
partnerships to gain a competitive edge in recruitment and 
retention, to foster an inclusive and productive workplace, and 
because it is fair.
    The Committee marked up and reported the bill out on 
December 16, 2009, and has been working with the Administration 
and other stakeholders to develop a winning strategy on the 
Senate floor.

                          B. Retirement Equity

    Senators Lieberman, Collins, Akaka, and Voinovich hailed 
the FY2010 Department of Defense authorization conference 
report October 8, 2009, for including a number of provisions 
intended to ensure equity for various types of participants in 
the Federal retirement system.
    Three provisions--S. 507, S. 469, and S. 629--were ordered 
reported out of the Committee, the first on April 1, 2009, the 
latter two on May 20, 2009.
    One provision helped agencies rehire experienced employees 
just as the Federal Government prepares to lose one-third of 
its civil service workforce to retirement over the next 5 years 
(S. 629). Another provision allowed Federal employees 
participating in the Federal Employee Retirement System (FERS) 
to apply their unused sick leave to their length of service for 
the purposes of computing the amount of retirement benefits (S. 
469). A third provision replaced the cost of living increases 
that Federal employees in Hawaii, Alaska, and U.S. territories 
receive with locality pay that Federal employees in the 
contiguous 48 States receive (S. 507).
    The Senators previously had attempted to attach the 
provisions to the Family Smoking Prevention and Tobacco Control 
Act in June and to the National Defense Authorization Act in 
July.
    ``A number of provisions in the DOD authorization 
conference agreement would bring justice to Federal employees 
who because of quirks in the law, errors, or oversight, have 
lost out on retirement benefits for which they would otherwise 
be eligible,'' Senator Lieberman said.

                           C. Whistleblowers

    Federal-employee whistleblowers can help improve government 
effectiveness by identifying and disclosing waste, fraud, and 
abuse, enabling agencies or Congress to correct the problem. 
The Whistleblower Protection Act (WPA), championed by Senator 
Akaka, Chairman of the Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of 
Columbia, ensures that Federal employees are not retaliation 
against for disclosing that kind of information. Several court 
cases, however, have misconstrued the intent of Congress and 
limited the law's coverage and, therefore, its effectiveness. 
And national security whistleblowers have, in fact, suffered 
unfair retaliation. To resolve these misunderstandings, Senator 
Akaka, Senator Lieberman, and others introduced the 
Whistleblower Protection Enhancement Act of 2009 (S. 372), on 
February 3, 2009. The bill extends WPA coverage to situations 
involving the intelligence community and security clearances. 
The bill was reported out of HSGAC in December 2009. Bipartisan 
negotiators from both the Senate and the House tried 
unsuccessfully to work out details.

                         D. Relocation Expenses

    On October 21, 2009, the Chairman introduced S. 1825, a 
bill to extend the authority for relocation expenses test 
programs for Federal employees. The bill would give General 
Services Administration (GSA) the permanent authority to test 
new, more efficient ways to relocate Federal employees. This 
authority was set to expire in December 2009, but S. 1825 
allowed GSA to continue to expand the program, which has been 
used to save more than $50 million in Federal tax dollars.
    The Committee reported the bill out on November 4, and the 
Senate passed it by unanimous consent on November 9. The House 
agreed to the Senate version, and the President signed the bill 
on November 30, 2009.

                    IMPROVING GOVERNMENT EFFICIENCY


                       A. Information Technology

    The Committee has long had an active interest in 
information technology (IT) and has examined a number of IT 
projects across government for ways to reduce waste and 
increase effectiveness. In the 111th Congress, this included 
reporting out the Information Technology Investment Oversight 
Enhancement and Waste Prevention Act of 2009 (S. 920), designed 
to increase transparency and accountability for IT projects and 
help rein in over budget and overdue projects. The bill passed 
the Senate in May of 2010.
    The Committee also conducted close oversight of the IT 
Dashboard, which increases the transparency of and agencies 
accountability for all Federal IT projects, and other Federal 
Web sites. One site that is designed to streamline 
the Federal grant process was found instead to make it more 
difficult. On July 16, 2009, Chairman Lieberman and Senator 
Voinovich released a GAO report that showed the site was 
plagued by technical limitations, degraded performance, and 
user difficulties.
    On April 12, 2010, GAO released another report detailing 
Administration problems with implementation of a series of 
information technology programs. The Federal Government, GAO 
concluded, needs to improve the security of its information 
technology systems by fully implementing key initiatives such 
as: The Einstein Program, the Trusted Internet Connections 
Program, and the Federal Desktop Core Configuration Initiative. 
``The security of Federal IT systems is an every growing 
problem that must be confronted aggressively and with all 
available means,'' the Chairman said in a statement, along with 
other co-requesters of the report, Senators Collins and Carper.

                            B. E-Government


                               Rulemaking

    The Committee reached out to the OMB in the fall of 2009 to 
discuss the Chairman's concerns with the current status of e-
rulemaking and the findings and recommendations in a 2008 
report by the American Bar Association. Following the 
Committee's inquiry, the Office of Information and Regulatory 
Affairs (OIRA) issued a number of memos recommending better 
rulemaking practices, including the use of a Regulation 
Identifier Number (RIN) to track regulations. In April 2010, 
OIRA Director Cass Sunstein, as reported in the New York Times, 
issued a directive allowing agencies to solicit feedback on 
proposed rules and regulations through social media.

                                Telework

    Senator Daniel Akaka introduced S. 707, the Telework 
Enhancement Act, March 25, 2009, to require Federal agencies to 
prepare and implement plans allowing Federal employees to 
telework. Agency programs that enable employees to telework, 
Senator Akaka argued, can improve recruitment, retention, and 
job satisfaction, save money for the government by reducing the 
need for office space and resources, be an essential component 
of continuation of operations (COOP) planning, and reduce 
traffic congestion and energy consumption. Senator Lieberman 
co-sponsored the measure, and the full Committee reported it 
out on May 3, 2010. The Senate passed S. 707 21 days later on 
May 24, 2010, with amendments. After compromise legislation was 
negotiated with the House, the Senate passed a modified version 
as an amendment to H.R. 1722 on September 30, 2010.

                         C. Telecommunications

    As part of its responsibility to ensure the effective and 
efficient operation of government, the Committee examined the 
transition of Federal telecommunications contracts from FTS2001 
to Networx, pushing agencies to provide detailed plans on how 
they will transition to the new contracts. On December 9, 2009, 
the Chairman and Senator Collins wrote to OMB Deputy Director 
of Management and Chief Performance Office Jeffrey Zients 
asking him to exert stronger leadership in Federal agencies' 
transitions to new telecommunications services as part of the 
Networx program. The new services were expected to save the 
Federal Government millions of dollars but instead are costing 
taxpayers' money as agencies delay transitioning to a new 
system.
    On March 24, 2010, the Senators expressed concern that 
several departments were not modernizing their 
telecommunications systems as quickly as they should be. In 
letters to the Departments of Homeland Security, Defense, 
Labor, Justice, Health and Human Services, Commerce, and 
Agriculture, the Senators asked the Secretaries of each 
Department what actions they were taking to speed up the 
transition to the Networx program.

                          D. Improper Payments

    Authored by Senator Carper, and sponsored by Senator 
Lieberman, the Improper Payments Elimination and Recovery Act, 
S. 1508, was signed into law in July 2010. The legislation 
requires Federal agencies to identify and recover the estimated 
$100 billion of taxpayer dollars lost annually due to improper 
payments and prevent future improper payments. The legislation 
provides important tools to address government waste, including 
requiring agencies to produce audited, corrective action plans 
with targets to reduce overpayment errors; and penalizing 
agencies that fail to comply with current accounting and 
recovery laws.

                      E. Performance Measurements

    The Committee worked in an expedited fashion to report out 
the Government Efficiency, Effectiveness, and Performance 
Improvement Act of 2010 (H.R. 2142). Sponsored by Rep. Henry 
Cuellar, D-Texas, the bill would improve government performance 
and reporting measures, in part by moving these measurements to 
the Web rather than sending large and often unread reports to 
Congress. The legislation directs OMB and agencies to work on a 
Web site so the public can track agency goals and their 
progress towards those goals. The bill was reported out of 
Committee on December 7, 2010, passed the Senate on December 
16, reconciled with the House version by December 21, and 
signed by the President on January 4, 2011.

                          DISTRICT OF COLUMBIA


                            A. Voting Rights

    The 111th Congress saw the Senate pass an historic voting 
rights bill for District of Columbia residents for the first 
time in recent memory. Working with D.C. Delegate Eleanor 
Holmes Norton, Chairman Lieberman had introduced legislation to 
give District residents some form of voting representation in 
Congress every Congress for the past decade with little 
success.
    On January 2009, the first day of the new Congress, the 
Chairman introduced The District of Columbia House Voting 
Rights Act of 2009 (S. 160), with co-sponsor Senator Orrin 
Hatch, R-Utah. Other co-sponsors included Senators Patrick 
Leahy, D-Vt., Edward Kennedy, D-Mass., Hillary Clinton, D-N.Y., 
Christopher Dodd, D-Conn., Bernie Sanders, I-Vt., John Kerry, 
D-Mass., Russell Feingold, D-Wis., and Richard Durbin, D-Ill. 
The bill would have given District citizens voting 
representation in the House by balancing out the Democratic/
Republicans ration with an additional representative from Utah, 
based on the population count of the 2000 Census.
    A little more than a month later, on February 11, the 
Committee marked up the bill and reported it out on a vote of 
11-1. ``The right to be counted, to have your voice heard by 
your government is central to a functioning democracy, 
fundamental to a free society, and the birthright of all 
Americans, no matter where they live,'' the Chairman said.
    The Chairman delivered an impassioned speech on the Senate 
floor on February 24 in favor of righting the longstanding 
injustice that left the residents of D.C. without voting 
representation in Congress. ``Today, we have a chance to take 
another historic step to enhance this great democracy by giving 
voice to the very people--the hard-working men and women who 
toil away in its capital,'' the Chairman said.
    After 3 days of debate, the Senate voted in favor of the 
measure 61-37, with six Republicans voting on final passage. 
Although it was ``a moment of joy and progress,'' in the 
Chairman's words, S. 160 would eventually die in the House 
because of a poison pill amendment that would have lifted the 
District of Columbia's gun ban.

                              B. Education

    On May 13, 2009, the Committee held a hearing on extending 
the Opportunity Scholarship Program (OSP), which allows low-
income District of Columbia students to attend private school 
on scholarship. Congress established the D.C. OSP in 2004 as 
part of a broader educational strategy to provide new funding 
in equal parts for D.C. public schools, charter schools, and 
the OSP. The program was set to expire after the 2009-2010 
school year, although the Administration said it would support 
allowing the children already in the program to continue until 
they graduate.
    ``The standard for judging any education program should be 
whether it works, whether it improves the performance of 
students,'' Chairman Lieberman said. ``It's a factual question 
based on scientific evaluations and test scores. And when we 
apply that non ideological, non partisan standard to the 
Opportunity Scholarship Program, my conclusion is that the 
program works.''
    Senate Majority Leader Harry Reid promised Senator 
Lieberman a full Senate vote on reauthorizing the program. And 
on March 16, 2010, that vote took place. By a vote of 42-55, 
the Senate turned back the OSP reauthorization.

                        WORKING FOR CONNECTICUT


                      A. Homeland Security Grants

    As Chairman of the Committee, Senator Lieberman's primary 
efforts on behalf of Connecticut involved securing Federal 
homeland security grants to protect the State's long coastline, 
its critical infrastructure, particularly its transportation 
network and nuclear power plant, and to train and equip 
Connecticut first responders to assist in recovery from a major 
terrorist attack or natural disaster.
    In FY2009, Connecticut's share of Federal homeland security 
amounted to $39,345,407 in homeland security grants, 
approximately $600,000 less than the year before. And FY2010 
saw an even greater drop of grants to $37,468,923, due to 
accelerated efforts to cut the budget and reduce unsustainable 
deficits.

                                B. H1N1

    When the H1N1 virus broke out in force in the late summer 
of 2009, Senator Lieberman held a field hearing in Hartford, 
Connecticut, one of four hearings he held on how government 
officials were tracking, preparing for, and responding to the 
virus. Connecticut officials had identified 2,000 cases of 
H1N1, with nine deaths by the time the field hearing took place 
on September 21, 2009. The hearing--titled ``H1N1 Flu: 
Protecting Our Community''--focused on how State and local 
health officials were combating the deadly virus. The Chairman 
concluded ``the State appears to be on track to stay out in 
front of a broad H1N1 outbreak.'' Senator Lieberman urged 
collaboration and communication among Federal, State, and local 
government agencies, educational institutions, the healthcare 
community, businesses, and the public.
    ``We are fortunate that, so far, new cases of the virus 
have continued to show the same mild to moderate symptoms as we 
observed last spring, but outbreaks of infectious diseases are 
hard to predict, so circumstances could still change 
dramatically over the coming weeks and months. Therefore, we 
must remain on heightened alert, continue to take preventative 
action, work together and hone communications with the public, 
and--while hoping for the best--we must prepare for the 
worst.''
    According to the Connecticut Department of Public Health, 
vaccination centers in Connecticut received 178,000 doses of 
the H1N1 vaccine as of October 28. The State had been promised 
500,000 doses by the end of October, which came later, in 
November, for high-risk patients such as pregnant women, health 
care workers, people with conditions such as asthma or diabetes 
and youth ages 2 through 24.
    ``We are holding this hearing now because it is the 
beginning of the flu season,'' Lieberman said. ``But September 
is also National Preparedness Month, and therefore a good time 
to remind people that they contribute to the well-being of 
their own communities when they take time to inform themselves 
about existing threats. Preventing the spread of the flu is 
something that every single person can and must help with, and 
I hope that this hearing further inspires people from all walks 
of life to do their part.''

                             MISCELLANEOUS


                           A. Iran Sanctions

    The Chairman called a hearing May 12, 2010, to bring 
attention to the fact that the U.S. Government awarded nearly 
$1 billion in Federal contracts from 2005-2009 to companies 
doing business with Iran, despite the 1996 Iran Sanctions Act 
which prohibits such behavior. Yet, no company has been 
sanctioned under the law. The data was revealed in a GAO report 
that was released at the hearing.
    ``The U.S. Government's market power gives us the ability 
to influence the behavior of companies doing business with Iran 
and to give them a choice between doing business with us or 
doing business with Iran,'' Senator Lieberman said. ``We no 
longer should allow businesses to do both.''

                           B. Fiscal Balance

    On May 14, 2009, the Chairman joined Senator Voinovich in 
introducing the SAFE Commission Act (S. 1056), in an effort to 
get a handle on the exploding debt. The legislation would 
establish the Securing America's Future Economy (SAFE) 
Commission to develop legislation designed to address: (1) the 
unsustainable imbalance between long-term Federal spending 
commitments and projected revenues; (2) increases in net 
national savings to provide for domestic investment and 
economic growth; (3) the implications of foreign ownership of 
federally issued debt instruments; and (4) revision of the 
budget process to place greater emphasis on long-term fiscal 
issues.
    The Committee held a hearing December 17, 2009, on how to 
deal with the $12 trillion national debt, and leading financial 
experts testified that the only way Congress could tackle it 
would be through a statutorily-created bipartisan commission. 
Witnesses, including former Federal Reserve Chairman Alan 
Greenspan, said that the commission's recommendations must then 
be put on a legislation fast track and should not be subject to 
amendment.
    ``The American people have reached a tipping point on 
this,'' the Chairman said. ``They see that Washington is 
incapable of dealing with the debt, ultimately, because we are 
irresponsible. We like to spend and we don't like to raise 
taxes. You don't have to be Alan Greenspan to know that will 
lead to an unsustainable debt.
    ``If we continue adding to the debt . . . we put at risk 
our economic and national security; we place our Nation's 
economy at the mercies of foreign creditors who don't always 
share our values, and we put in jeopardy generational promises 
we have made to ourselves and our children, like Medicare and 
Social Security.''

                 C. Payment for Rides on Corporate Jets

    A longtime proponent of campaign finance reform, Chairman 
Lieberman, along with Senators Feingold and McCain, introduced 
legislation in December 2009 to overturn a Federal Election 
Commission (FEC) ruling that effectively gutted Congress' work 
to crack down on Senators accepting rides on corporate jets.
    The Honest Leadership and Open Government Act of 2007 
contained new rules on personal, official, and campaign travel 
on non-commercial aircraft or corporate jets, requiring 
Senators who travel on corporate jets to reimburse the jet 
provider at the rate of a charter flight rather than the cost 
of a first class ticket.
    But the FEC, showing utter disregard for Congress' intent, 
created a loophole in the statute for members' travel on 
corporate jets on behalf of someone's campaign other than their 
own.

                            D. Policy Czars

    The Chairman held a hearing October 22, 2009, on the 
competing interests between the President's constitutional 
right to appoint his own policy advisors and Congress' 
responsibility to oversee Executive Branch activities. 
Estimates of current Executive Branch czars varies, so the 
Committee limited its discussion to non-statutory, unconfirmed 
advisors working at the White House who have made it clear they 
would not testify before Congress. That limited the number to 
between four and eight czars.
    ``The real issue today is not the number of White House 
policy advisors appointed by President Obama versus his 
predecessors,'' the Chairman said. ``The real issue is 
accountability and whether the use of presidentially-appointed 
policy czars, regardless of which President appointed them, 
adversely affects congressional oversight, and government 
accountability and transparency. Balancing the inherent 
tensions that exist between the Legislative and Executive 
Branches is a work in progress but I would like to determine if 
we can achieve a balance that satisfied the legitimate demands 
of both branches.''
    Among the witnesses was former Homeland Security Secretary 
Tom Ridge, who had served as a Special Advisor to the President 
on Homeland Security.

                               E. Census

    Chairman Lieberman issued a press release on August 10, 
2010, praising the Census Bureau for bringing the 2010 Census 
in well under budget. The Bureau said that it would return at 
least $1.6 billion to the Treasury, or 22 percent of the 
contingency budget set aside for a major natural disaster or 
other operational failing. ``After a difficult lead up to the 
2010 Census, the Bureau should be commended for returning $1.6 
billion to taxpayers,'' the Chairman said. ``A little bit of 
luck, hard work by Census employees, and the cooperation of 
people who mailed back their forms means this massive 
undertaking has come in under budget, a pleasant surprise.''

                      F. Presidential Transitions

    On August 2, 2010, the Committee reported out S. 3196, Pre-
Election Presidential Transition Act, sponsored by Senator 
Kaufman. The bill sought to encourage earlier transition 
planning and preparations by both presidential candidates and 
incumbent administrations to help ensure a smoother 
presidential transition and protect national security at a time 
of potential vulnerability. The bill passed the Senate by 
unanimous consent on September 24, 2010, and cleared the House 
on September 30. It was enacted into law on October, 15, 2010.

                              G. Sam Hicks

    On May 25, 2009, the Committee reported out H.R. 2711, The 
Special Agent Samuel Hicks Families of Fallen Heroes Act, to 
allow Federal law enforcement agencies to assist families of 
law enforcement officers killed on the job with relocation 
costs if they want to move from a posting back to their home 
communities. FBI Special Agent Sam Hicks was fatally shot while 
executing a Federal search warrant on a drug distribution ring. 
Prior to the law's enactment, the FBI was barred from assisting 
with his family's moving costs. This legislation lifted that 
restriction and allows the Federal Government to assist the 
families of our fallen heroes. The Senate passed the measure on 
May 14, 2010, by unanimous consent, and was signed into law 
June 9, 2010.

                         H. Inspectors General

    On June 18, 2009, Senator Lieberman commented on the 
procedures used in firing Gerald Walpin as Inspector General of 
the Corporation for National and Community Service. Questions 
had been raised about whether the Administration had followed 
the law to provide Congress with an adequate written 
explanation for the firing. ``Through two letters and oral 
briefings, the White House has communicated a number of 
concerns with Mr. Walpin's conduct as Inspector General. . . . 
I will continue to review the matter . . . to ensure that the 
Administration had ample justification for its actions.'' The 
next day, Senators Lieberman, Collins, and McCaskill wrote to 
the President to say ``we believe you have met the letter and 
spirit of the Inspector General Reform Act of 2008 with respect 
to congressional notifications of removal or transfer'' and 
they asked for additional information. On June 24, Committee 
Communications Director Leslie Phillips sent a letter to the 
editor of the Washington Times contesting an editorial that 
implied the firing was political and the Senator was not 
investigating sufficiently. In part, the letter said: 
``Contrary to the impression left by your editorial, Senator 
Lieberman and his Committee colleagues are committed to 
conducting an independent review to make sure Mr. Walpin's 
termination was not arbitrary, capricious, punitive, or 
political. And that is what they are doing.''
    The Chairman, Senator Collins, and three other Members of 
the Committee expressed concern on January 21, 2010, about 
allegations that an Office of Management and Budget employee 
threatened the Office of Personnel Management (OPM) Inspector 
General. In a letter to OMB Director Peter Orszag, the Senators 
asked OMB to review the incident and report back to the 
Committee on its findings.

                       II. COMMITTEE JURISDICTION

    The jurisdiction of the Committee derives from the Rules of 
the Senate and from Senate Resolutions:

                                RULE XXV

                            * * * * * * * *

    (k)(1) Committee on Governmental Affairs, to which 
committee shall be referred all proposed legislation, messages, 
petitions, memorials, and other matters relating to the 
following subjects:

     1. Archives of the United States.
     2. Budget and accounting measures, other than 
appropriations, except as provided in the Congressional Budget 
Act of 1974.
     3. Census and collection of statistics, including economic 
and social statistics.
     4. Congressional organization, except for any part of the 
matter that amends the rules or orders of the Senate.
     5. Federal Civil Service.
     6. Government information.
     7. Intergovernmental relations.
     8. Municipal affairs of the District of Columbia, except 
appropriations therefore.
     9. Organization and management of United States nuclear 
export policy.
    10. Organization and reorganization of the Executive Branch 
of the Government.
    11. Postal Service.
    12. Status of officers and employees of the United States, 
including their classification, compensation, and benefits.

    (2) Such committee shall have the duty of----
    (A) receiving and examining reports of the Comptroller 
General of the United States and of submitting such 
recommendations to the Senate as it deems necessary or 
desirable in connection with the subject matter of such 
reports;
    (B) studying the efficiency, economy, and effectiveness of 
all agencies and departments of the Government;
    (C) evaluating the effects of laws enacted to reorganize 
the Legislative and Executive Branches of the Government; and
    (D) studying the intergovernmental relationships between 
the United States and the States and municipalities, and 
between the United States and international organizations of 
which the United States is a member.

                  SENATE RESOLUTION 73, 111TH CONGRESS

        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS.

    Sec. 12. (a) * * *

                            * * * * * * * *

    (e) INVESTIGATIONS----
    (1) In General--The committee, or any duly authorized 
subcommittee of the committee, is authorized to study or 
investigate----
    (A) the efficiency and economy of operations of all 
branches of the Government including the possible existence of 
fraud, misfeasance, malfeasance, collusion, mismanagement, 
incompetence, corruption, or unethical practices, waste, 
extravagance, conflicts of interest, and the improper 
expenditure of Government funds in transactions, contracts, and 
activities of the Government or of Government officials and 
employees and any and all such improper practices between 
Government personnel and corporations, individuals, companies, 
or persons affiliated therewith, doing business with the 
Government; and the compliance or noncompliance of such 
corporations, companies, or individuals or other entities with 
the rules, regulations, and laws governing the various 
governmental agencies and its relationships with the public;
    (B) the extent to which criminal or other improper 
practices or activities are, or have been, engaged in the field 
of labor-management relations or in groups or organizations of 
employees or employers, to the detriment of interests of the 
public, employers, or employees, and to determine whether any 
changes are required in the laws of the United States in order 
to protect such interests against the occurrence of such 
practices or activities;
    (C) organized criminal activity which may operate in or 
otherwise utilize the facilities of interstate or international 
commerce in furtherance of any transactions and the manner and 
extent to which, and the identity of the persons, firms, or 
corporations, or other entities by whom such utilization is 
being made, and further, to study and investigate the manner in 
which and the extent to which persons engaged in organized 
criminal activity have infiltrated lawful business enterprise, 
and to study the adequacy of Federal laws to prevent the 
operations of organized crime in interstate or international 
commerce; and to determine whether any changes are required in 
the laws of the United States in order to protect the public 
against such practices or activities;
    (D) all other aspects of crime and lawlessness within the 
United States which have an impact upon or affect the national 
health, welfare, and safety; including but not limited to 
investment fraud schemes, commodity and security fraud, 
computer fraud, and the use of offshore banking and corporate 
facilities to carry out criminal objectives;
    (E) the efficiency and economy of operations of all 
branches and functions of the Government with particular 
reference to----
    (i) the effectiveness of present national security methods, 
staffing, and processes as tested against the requirements 
imposed by the rapidly mounting complexity of national security 
problems;
    (ii) the capacity of present national security staffing, 
methods, and processes to make full use of the Nation's 
resources of knowledge and talents;
    (iii) the adequacy of present intergovernmental relations 
between the United States and international organizations 
principally concerned with national security of which the 
United States is a member; and
    (iv) legislative and other proposals to improve these 
methods, processes, and relationships;
    (F) the efficiency, economy, and effectiveness of all 
agencies and departments of the Government involved in the 
control and management of energy shortages including, but not 
limited to, their performance with respect to----
    (i) the collection and dissemination of accurate statistics 
on fuel demand and supply;
    (ii) the implementation of effective energy conservation 
measures;
    (iii) the pricing of energy in all forms;
    (iv) coordination of energy programs with State and local 
government;
    (v) control of exports of scarce fuels;
    (vi) the management of tax, import, pricing, and other 
policies affecting energy supplies;
    (vii) maintenance of the independent sector of the 
petroleum industry as a strong competitive force;
    (viii) the allocation of fuels in short supply by public 
and private entities;
    (ix) the management of energy supplies owned or controlled 
by the Government;
    (x) relations with other oil producing and consuming 
countries;
    (xi) the monitoring of compliance by governments, 
corporations, or individuals with the laws and regulations 
governing the allocation, conservation, or pricing of energy 
supplies; and
    (xii) research into the discovery and development of 
alternative energy supplies; and
    (G) the efficiency and economy of all branches and 
functions of Government with particular references to the 
operations and management of Federal regulatory policies and 
programs.
    (2) EXTENT OF INQUIRIES--In carrying out the duties 
provided in paragraph (1), the inquiries of this committee or 
any subcommittee of the committee shall not be construed to be 
limited to the records, functions, and operations of any 
particular branch of the Government and may extend to the 
records and activities of any persons, corporation, or other 
entity.
    (3) SPECIAL COMMITTEE AUTHORITY--For the purposes of this 
subsection, the committee, or any duly authorized subcommittee 
of the committee, or its chairman, or any other member of the 
committee or subcommittee designated by the chairman, from 
March 1, 2009, through February 28, 2011, is authorized, in 
its, his, or their discretion----
    (A) to require by subpoena or otherwise the attendance of 
witnesses and production of correspondence, books, papers, and 
documents;
    (B) to hold hearings;
    (C) to sit and act at any time or place during the 
sessions, recess, and adjournment periods of the Senate;
    (D) to administer oaths; and
    (E) to take testimony, either orally or by sworn statement, 
or, in the case of staff members of the Committee and the 
Permanent Subcommittee on Investigations, by deposition in 
accordance with the Committee Rules of Procedure.
    (4) AUTHORITY OF OTHER COMMITTEES--Nothing contained in 
this subsection shall affect or impair the exercise of any 
other standing committee of the Senate of any power, or the 
discharge by such committee of any duty, conferred or imposed 
upon it by the Standing Rules of the Senate or by the 
Legislative Reorganization Act of 1946.
    (5) SUBPOENA AUTHORITY--All subpoenas and related legal 
processes of the committee and its subcommittee authorized 
under S. Res. 89, agreed to March 1, 2007 (110th Congress) are 
authorized to continue.

           III. BILLS AND RESOLUTIONS REFERRED AND CONSIDERED

    During the 111th Congress, 176 Senate bills and 121 House 
bills were referred to the Committee for consideration. In 
addition, 6 Senate Resolutions and 5 Senate Concurrent 
Resolutions were referred to the Committee.
    The Committee reported 151 bills; an additional 14 measures 
were discharged. Of the legislation received by the Committee, 
93 measures became public laws, including 70 postal naming 
bills.

                              IV. HEARINGS

    During the 111th Congress, the Committee held 86 hearings 
on legislation, oversight issues, and nominations. Hearing 
titles and dates follow.
    The Committee also held 19 scheduled business meetings.
    Lists of hearings with copies of statements by Members and 
witnesses, with archives going back to 1997, are online at the 
Committee's Web site, http://hsgac.senate.gov/.
    Lessons from the Mumbai Terrorist Attacks--Parts I and II. 
January 8 and 28, 2009. (S. Hrg. 111-581).
    Nomination of Peter R. Orszag to be Director, Office of 
Management and Budget. January 14, 2009. (S. Hrg. 111-549).
    Nomination of Robert L. Nabors II to be Deputy Director, 
Office of Management and Budget. January 14, 2009. (S. Hrg. 
111-440).
    Nomination of Hon. Janet A. Napolitano to be Secretary, 
U.S. Department of Homeland Security. January 15, 2009. (S. 
Hrg. 111-602).
    Where Were the Watchdogs? The Financial Crisis and the 
Breakdown of Financial Governance. January 21, 2009. Where Were 
the Watchdogs? Systemic Risk and the Breakdown of Financial 
Governance. March 4, 2009. Were the Watchdogs? Financial 
Regulatory Lessons from Abroad. May 21, 2009. (S. Hrg. 111-
614).
    Structuring National Security and Homeland Security at the 
White House. February 12, 2009. (S. Hrg. 111-654).
    Follow the Money: Transparency and Accountability For 
Recovery and Reinvestment Spending. March 5, 2009. Recovery and 
Reinvestment Spending: Implementing a Bold Oversight Strategy. 
April 2, 2009. The American Recovery and Reinvestment Act: 
Making the Economic Stimulus Work for Connecticut. April 7, 
2009. Follow the Money: State and Local Oversight of Stimulus 
Funding. April 23, 2009. Follow the Money: An Update on 
Stimulus Spending, Transparency, and Fraud Prevention. 
September 10, 2009. (S. Hrg. 111-978).
    Violent Islamist Extremism: Al-Shabaab Recruitment in 
America. March 11, 2009. Eight Years After 9/11: Confronting 
the Terrorist Threat to the Homeland. September 30, 2009. (S. 
Hrg. 111-678).
    Southern Border Violence: Homeland Security Threats, 
Vulnerabilities, and Responsibilities. March 25, 2009. Southern 
Border Violence: State and Local Perspectives. April 20, 2009. 
(S. Hrg. 111-791).
    Nomination of Jane Holl Lute to be Deputy Secretary, U.S. 
Department of Homeland Security. March 26, 2009. (S. Hrg. 111-
979).
    Nomination of Hon. M. John Berry to be Director, Office of 
Personnel Management. March 26, 2009. (S. Hrg. 111-663).
    Nomination of W. Craig Fugate to be Administrator, Federal 
Emergency Management Agency, U.S. Department of Homeland 
Security. April 22, 2009. (S. Hrg. 111-677).
    Nomination of John T. Morton to be Assistant Secretary, 
U.S. Department of Homeland Security. April 22, 2009. (S. Hrg. 
111-573).
    Cyber Security: Developing a National Strategy. April 28, 
2009. Cyber Attacks: Protecting Industry Against Growing 
Threats. September 14, 2009. (S. Hrg. 111-724).
    Swine Flu: Coordinating the Federal Response. April 29, 
2009. H1N1 Flu: Protecting Our Communities. September 21, 2009. 
H1N1 Flu: Monitoring the Nation's Response. October 21, 2009. 
H1N1 Flu: Getting the Vaccine to Where it is Most Needed. 
November 17, 2009. (S. Hrg. 111-910)
    Nominations of Ivan K. Fong to be General Counsel, U.S. 
Department of Homeland Security, and Timothy W. Manning to be 
Deputy Administrator (for National Preparedness), Federal 
Emergency Management Agency, U.S. Department of Homeland 
Security. April 30, 2009. (S. Hrg. 111-637).
    Nomination of Cass R. Sunstein to be Administrator, Office 
of Information and Regulatory Affairs, Office of Management and 
Budget. May 12, 2009. (S. Hrg. 111-463).
    The Homeland Security Department's Budget Submission for 
Fiscal Year 2010. May 12, 2009. May 12, 2009. (S. Hrg. 111-
980).
    The D.C. Opportunity Scholarship Program: Preserving School 
Choice for All. May 13, 2009. (S. Hrg. 111-814).
    Nominations of David F. Heyman to be Assistant Secretary, 
U.S. Department of Homeland Security, and Marisa J. Demeo and 
Florence Y. Pan to be Associate Judges, Superior Court of the 
District of Columbia. May 13, 2009. (S. Hrg. 111-767).
    Nomination of Robert M. Groves to be Director of the 
Census, U.S. Department of Commerce. May 15, 2009. (S. Hrg. 
111-803).
    Nomination of Hon. Rand Beers to be Under Secretary (for 
National Protection and Programs), U.S. Department of Homeland 
Security. June 2, 2009. (S. Hrg. 111-676).
    Nomination of Martha N. Johnson to be Administrator, 
General Services Administration. June 3, 2009. (S. Hrg. 111-
460).
    Nominations of Hon. Tara J. O'Toole to be Under Secretary 
for Science and Technology, U.S. Department of Homeland 
Security, and Jeffrey D. Zients to be Deputy Director for 
Management, Office of Management and Budget. June 10, 2009. (S. 
Hrg. 111-838).
    Examining State Business Incorporation Practices: A 
Discussion of the Incorporation Transparency and Law 
Enforcement Assistance Act. June 18, 2009. Business Formation 
and Financial Crime: Finding a Legislative Solution. November 
5, 2009. (S. Hrg. 111-953).
    Type 1 Diabetes Research: Real Progress and Real Hope for a 
Cure. June 24, 2009. (S. Hrg. 111-908).
    The Federal Protective Service: Time For Reform. July 8, 
2009. (S. Hrg. 111-686).
    Identification Security: Reevaluating the REAL ID Act. July 
15, 2009. (S. Hrg. 111-981).
    Nominations of Hon. Christine M. Griffin to be Deputy 
Director, Office of Personnel Management, and Stuart G. Nash to 
be Associate Judge, Superior Court of the District of Columbia. 
July 16, 2009. (S. Hrg. 111-687).
    Nomination of Alexander G. Garza to be Assistant Secretary 
and Chief Medical Officer, U.S. Department of Homeland 
Security. July 28, 2009. (S. Hrg. 111-574).
    Nominations of Hon. Ernest W. Dubester to be Member, 
Federal Labor Relations Authority; Julia Atkins Clark to be 
General Counsel, Federal Labor Relations Authority; and Rafael 
Borras to be Under Secretary for Management, U.S. Department of 
Homeland Security. July 29, 2009. (S. Hrg. 111-882).
    Nomination of Kelvin J. Cochran to be Administrator, U.S. 
Fire Administration, Federal Emergency Management Agency, U.S. 
Department of Homeland Security. August 5, 2009. (S. Hrg. 111-
475).
    Nomination of Daniel I. Werfel to be Controller, Office of 
Federal Financial Management, Office of Management and Budget. 
September 16, 2009. (S. Hrg. 111-575).
    Nomination of Richard A. Serino to be Deputy Administrator, 
Federal Emergency Management Agency, U.S. Department of 
Homeland Security. September 16, 2009. (S. Hrg. 111-454).
    World At Risk: The Weapons of Mass Destruction Prevention 
and Preparedness Act of 2009. September 22, 2009. (S. Hrg. 111-
757).
    Defense Contract Audit Agency: Who is Responsible for 
Reform? September 23, 2009. (S. Hrg. 111-945).
    Nomination of David S. Ferriero to be Archivist of the 
United States, National Archives and Records Administration. 
October 1, 2009. (S. Hrg. 111-555).
    Domestic Partner Benefits: Fair Policy and Good Business 
for the Federal Government. October 15, 2009. (S. Hrg. 111-
758).
    Nominations of Susan Tsui Grundmann to be Chairman, Merit 
Systems Protection Board, and Anne Marie Wagner to be Member, 
Merit Systems Protection Board. October 20, 2009. (S. Hrg. 111-
452).
    Presidential Advice and Senate Consent: The Past, Present, 
and Future of Policy Czars. October 22, 2009. (S. Hrg. 111-
805).
    Nominations of Erroll G. Southers to be Assistant 
Secretary, U.S. Department of Homeland Security, and Daniel I. 
Gordon to be Administrator for Federal Procurement Policy, 
Office of Management and Budget. November 10, 2009. (S. Hrg. 
111-852).
    The Fort Hood Attack: A Preliminary Assessment. November 
19, 2009. (S. Hrg. 111-810).
    Nomination of Alan C. Kessler to be Governor, U.S. Postal 
Service. November 19, 2009. (S. Hrg. 111-567).
    Nomination of Caryn A. Wagner to be Under Secretary for 
Intelligence and Analysis, U.S. Department of Homeland 
Security. December 3, 2009. (S. Hrg. 111-568).
    Five Years After the Intelligence Reform and Terrorism 
Prevention Act: Stopping Terrorist Travel. December 9, 2009. 
(S. Hrg. 111-957).
    Nominations of Grayling G. Williams to be Director, Office 
of Counternarcotics Enforcement, U.S. Department of Homeland 
Security, and Elizabeth M. Harman to be Assistant 
Administrator, Federal Emergency Management Agency, U.S. 
Department of Homeland Security. December 10, 2009. (S. Hrg. 
111-644).
    Safeguarding the American Dream: Prospects for Our Economic 
Future and Proposals to Secure it. December 17, 2009. (S. Hrg. 
111-969).
    Intelligence Reform: The Lessons and Implications of the 
Christmas Day Attack, Part I. January 20, 2010. Intelligence 
Reform: The Lessons and Implications of the Christmas Day 
Attack, Part II. January 26, 2010. The Lessons and Implications 
of the Christmas Day Attack: Watchlisting and Pre-Screening. 
March 10, 2010. The Lessons and Implications of the Christmas 
Day Attack: Intelligence Reform and Interagency Integration. 
March 17, 2010. The Lessons and Implications of the Christmas 
Day Attack: Securing the Visa Process. April 21, 2010. (S. Hrg. 
111-1070).
    The Homeland Security Department's Budget Submission for 
Fiscal Year 2011. February 24, 2010. (S. Hrg. 111-1019).
    Chemical Security: Assessing Progress and Charting a Path 
Forward. March 3, 2010. (S. Hrg. 111-1020).
    Nomination of Major General Robert A. Harding, Retired, to 
be Assistant Secretary, U.S. Department of Homeland Security. 
March 24, 2010. (S. Hrg. 111-1032).
    Border Security: Moving Beyond the Virtual Fence. April 20, 
2010. (S. Hrg. 111-1051).
    Nominations of Hon. Dennis P. Walsh to be Chairman, Special 
Panel on Appeals; Hon. Dana Katherine Bilyeu and Michael D. 
Kennedy to be Members, Federal Retirement Thrift Investment 
Board; and Milton C. Lee Jr., Judith Anne Smith, and Todd E. 
Edelman to be Associate Judges, Superior Court of the District 
of Columbia. April 20, 2010. (S. Hrg. 111-1037).
    Terrorists and Guns: The Nature of the Threat and Proposed 
Reforms. May 5, 2010. (S. Hrg. 111-1079).
    Iran Sanctions: Why Does the U.S. Government Do Business 
With Companies Doing Business In Iran? May 12, 2010. (S. Hrg. 
111-1081).
    Gulf Coast Catastrophe: Assessing the Nation's Response to 
the Deepwater Horizon Oil Spill. May 17, 2010. (S. Hrg. 111-
1089).
    Nomination of Dennis J. Toner to be Governor, U.S. Postal 
Service. June 10, 2010. (S. Hrg. 111-1045).
    Protecting Cyberspace as a National Asset: Comprehensive 
Legislation for the 21st Century. June 15, 2010. Securing 
Critical Infrastructure in the Age of Stuxnet. November 17, 
2010. (S. Hrg. 111-1103).
    Nomination of John S. Pistole to be Assistant Secretary, 
U.S. Department of Homeland Security. June 17, 2010. (S. Hrg. 
111-1082).
    Nuclear Terrorism: Strengthening Our Domestic Defenses--
Parts I and II. June 30 and September 15, 2010. (S. Hrg. 111-
1096).
    Charting a Path Forward: The Homeland Security Department's 
Quadrennial Homeland Security Review and Bottom-Up Review. July 
21, 2010. (S. Hrg. 111-1097).
    Nomination of Hon. Jacob J. Lew to be Director, Office of 
Management and Budget. September 16, 2010. (S. Hrg. 111-1090).
    Nomination of Maria Elizabeth Raffinan to be Associate 
Judge, Superior Court of the District of Columbia. September 
21, 2010. (S. Hrg. 111-1050).
    Nine Years After 9/11: Confronting the Terrorist Threat to 
the Homeland. September 22, 2010. (S. Hrg. 111-1104)
    Closing the Gaps in Air Cargo Security. November 16, 2010. 
(S. Hrg. 111-1105).
    Nomination of Eugene L. Dodaro to be Comptroller General of 
the Unites States, U.S. Government Accountability Office. 
November 18, 2010. (S. Hrg. 111-1076).

                  V. REPORTS, PRINTS, AND GAO REPORTS

    During the 111th Congress, the Committee prepared and 
issued 48 reports and six Committee Prints. Reports issued by 
Committee are listed on the following bills.

                           COMMITTEE REPORTS

    To reauthorize and improve the Federal Financial Assistance 
Management Improvement Act of 1999. S. Rept. 111-7, re. S. 303.
    To provide additional personnel authorities for the Special 
Inspector General for Afghanistan Reconstruction. S. Rept. 111-
15, re. S. 615.
    To amend chapter 22 of title 44, United States Code, 
popularly known as the Presidential Records Act, to establish 
procedures for the consideration of claims of constitutionally 
based privilege against disclosure of Presidential records. S. 
Rept. 111-21, re. H.R. 35.
    To require the Administrator of the Federal Emergency 
Management Agency to quickly and fairly address the abundance 
of surplus manufactured housing units stored by the Federal 
Government around the country at taxpayer expense. S. Rept. 
111-23, re. S. 713.
    To amend the American Recovery and Reinvestment Act to 
provide for enhanced State and local oversight of activities 
conducted under such Act, and for other purposes. S. Rept. 111-
56, re. S. 1064.
    To amend chapter 81 of title 5, United States Code, to 
create a presumption that a disability or death of a Federal 
employee in the fire protection activities caused by any of 
certain diseases is the result of the performance of such 
employee's duty. S. Rept. 111-75, re. S. 599.
    To prevent abuse of Government charge cards. S. Rept. 111-
76, re. S. 942.
    To provide for the establishment, administration, and 
funding of Federal Executive Boards, and for other purposes. S. 
Rept. 111-77, re. S. 806.
    To transfer statutory entitlements to pay and hours of work 
authorized by the District of Columbia Code for current members 
of the United States Secret Service Uniformed Division for the 
District of Columbia Code to the Unites States Code. S. Rept. 
111-86, re. S. 1510.
    To provide that claims of the United States to certain 
documents relating to Franklin Delano Roosevelt shall be 
treated as waived and relinquished in certain circumstances. S. 
Rept. 111-87, re. S. 692.
    To provide for retirement equity for Federal employees in 
nonforeign areas outside the 48 contiguous States and the 
District of Columbia, and for other purposes. S. Rept. 111-88, 
re. S. 507.
    To establish a Deputy Secretary of Homeland Security for 
Management, and for other purposes. S. Rept. 111-91, re. S. 
872.
    To amend chapter 23 of title 5, United States Code, to 
clarify the disclosures of information protected from 
prohibited personnel practices, require a statement in 
nondisclosure policies, forms, and agreements that such 
policies, forms, and agreements conform with certain disclosure 
protections, provide certain authority for the Special Counsel, 
and for other purposes. S. Rept. 111-101, re. S. 372.
    To enhance citizen access to Government information and 
services by establishing that Government documents issued to 
the public must be written clearly, and for other purposes. S. 
Rept. 111-102, re. S. 574.
    To authorize appropriations for grants to States 
participating in the Emergency Management Assistance Compact, 
and for other purposes. S. Rept. 111-103, re. S. 1288.
    To repeal title II of the REAL ID Act of 2005 and amend 
title II of the Homeland Security Act of 2002 to better protect 
the security, confidentiality, and integrity of personally 
identifiable information collected by States when issuing 
driver's licenses and identification documents, and for other 
purposes. S. Rept. 111-104, re. S. 1261.
    To direct the Department of Homeland Security to undertake 
a study on emergency communications. S. Rept. 111-105, re. S. 
1755.
    To establish a fact-finding Commission to extend the study 
of a prior Commission to investigate and determine facts and 
circumstances surrounding the relocation, internment, and 
deportation to Axis countries of Latin Americans of Japanese 
descent from December 1941 through February 1948, and the 
impact of those actions by the United States, and to recommend 
appropriate remedies, and for other purposes. S. Rept. 111-112, 
re. S. 69.
    To reauthorize the Congressional Award Act (2 U.S.C. 801 et 
seq.) and for other purposes. S. Rept. 111-163, re. S. 2865.
    To establish the Chief Conservation Officers Council to 
improve the energy efficiency of Federal agencies, and for 
other purposes. S. Rept. 111-167, re. S. 1830.
    To enhance the Federal Telework Program. S. Rept. 111-177, 
re. S. 707.
    To amend section 11317 of title 40, United States Code, to 
improve the transparency of the status of information 
technology investments, to require greater accountability for 
cost overruns on Federal information technology investment 
projects, to improve the processes agencies implement to manage 
information technology acquisition, and for other purposes. S. 
Rept. 111-179, re. S. 920.
    To provide for improvements in the Federal hiring process, 
and for other purposes. S. Rept. 111-184, re. S. 736.
    To provide increased access to the General Services 
Administration's Schedules Program by the American Red Cross 
and State and local governments. S. Rept. 111-192, re. S. 2868.
    To require the Secretary of Homeland Security to develop a 
strategy to prevent the over-classification of homeland 
security and other information and to promote the sharing of 
unclassified homeland security and other information, and for 
other purposes. S. Rept. 111-200, re. H.R. 553.
    To amend chapter 89 of title 5, United States Code, to 
reform Postal Service retiree health benefits funding, and for 
other purposes. S. Rept. 111-203, re. S. 1507.
    To authorize appropriations for the National Historical 
Publications and Records Commission through fiscal year 2014, 
and for other purposes. S. Rept. 111-213, re. S. 2872.
    To amend the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act to reauthorize the predisaster hazard 
mitigation program, and for other purposes. S. Rept. 111-215, 
re. S. 3249.
    To provide that certain Secret Service employees may elect 
to transition to coverage under the District of Columbia Police 
and Fire Fighter Retirement and Disability System. S. Rept. 
111-231, re. S. 1862.
    To provide for the issuance of a Multinational Species 
Conservation Funds Semipostal Stamp. S. Rept. 111-234, re. H.R. 
1454.
    To improve the provision of assistance to fire departments, 
and for other purposes. S. Rept. 111-235, re. S. 3267.
    To amend the Presidential Transition Act of 1963 to provide 
that certain transition services shall be available to eligible 
candidates before the general election. S. Rept. 111-239, re. 
S. 3196.
    To allow certain U.S. Customs and Border Protection 
employees who serve under an overseas limited appointment for 
at least 2 years, and whose services is rated fully successful 
or higher throughout that time, to be converted to a permanent 
appointment in the competitive service. S. Rept. 111-248, re. 
H.R. 1517.
    To provide for identifying and eliminating redundant 
reporting requirements and developing meaningful performance 
metrics for homeland security preparedness grants, and for 
other purposes. S. Rept. 111-291, re. H.R. 3980.
    To amend the National Children's Island Act of 1995 to 
expand allowable uses for Kingman and Heritage Islands by the 
District of Columbia, and for other purposes. S. Rept. 111-300, 
re. H.R. 2092.
    To require U.S. Customs and Border Protection to administer 
polygraph examinations to all applicants for law enforcement 
positions with U.S. Customs and Border Protection, to require 
U.S. Customs and Border Protection to complete all periodic 
background reinvestigations of certain law enforcement 
personnel, and for other purposes. S. Rept. 111-338, re. S. 
3243.
    To amend title 5, United States Code, to eliminate the 
discriminatory treatment of the District of Columbia under 
provisions of law commonly referred to as the ``Hatch Act.'' S. 
Rept. 111-339, re. H.R. 1345.
    To amend title 31, United States Code, to enhance the 
oversight authorities of the Comptroller General, and for other 
purposes. S. Rept. 111-350, re. S. 2991.
    To amend title 13 of the United States Code to provide for 
a 5-year term of office for the Director of the Census and to 
provide for authority and duties of the Director and Deputy 
Director of the Census, and for other purposes. S. Rept. 111-
351, re. S. 3167.
    Activities of the Committee on Homeland Security and 
Governmental Affairs. S. Rept. 111-360.
    To amend chapter 41 of title 5, United States Code, to 
provide for the establishment and authorization of funding for 
certain training programs for supervisors of Federal employees. 
S. Rept. 111-364, re. S. 674.
    To require Congress to establish a unified and searchable 
database on a public Web site for congressional earmarks as 
called for by the President in his 2010 State of the Union 
Address to Congress. S. Rept. 111-365, re. S. 3335.
    To amend the Homeland Security Act of 2002 and other laws 
to enhance the security and resiliency of the cyber and 
communications infrastructure of the United States. S. Rept. 
111-368, re. S. 3480.
    To amend the Homeland Security Act of 2002 to enhance 
security and protect against acts of terrorism against chemical 
facilities, to amend the Safe Drinking Water Act to enhance the 
security of public water systems, and to amend the Federal 
Water Pollution Control Act to enhance the security of 
wastewater treatment works, and for other purposes. S. Rept. 
111-370, re. H.R. 2868.
    To require quarterly performance assessments of Government 
programs for purposes of assessing agency performance and 
improvement, and to establish agency performance improvement 
officers and the Performance Improvement Council. S. Rept. 111-
372, re. H.R. 2142.
    To amend chapter 21 of title 5, United States Code, to 
provide that fathers of certain permanently disabled or 
deceased veterans shall be included with mothers of such 
veterans as preference eligible for treatment in the civil 
service. S. Rept. 111-374, re. S. 3650.
    To provide benefits to domestic partners of Federal 
employees. S. Rept. 111-376, re. S. 1102.
    To prevent the proliferation of weapons of mass 
destruction, to prepare for attacks using weapons of mass 
destruction, and for other purposes. S. Rept. 111-377, re. S. 
1649.

                            COMMITTEE PRINTS

    The Committee issued the following Committee Prints during 
the 111th Congress:
    Rules of Procedure. Committee on Homeland Security and 
Governmental Affairs. (Printed. 36 pp. S. Prt. 111-12.)
    Rules of Procedure. Permanent Subcommittee on 
Investigations. (Printed. 18 pp. S. Prt. 111-13.)
    Organization of Federal Executive Departments and Agencies. 
Agencies and Functions of the Federal Government Established, 
Abolished, Continued, Modified, reorganized, Extended, 
Transferred, or Changed in Name by Legislative or Executive 
Action During Calendar Years 2007 and 2008. (Prepared by the 
Office of the Federal Register, National Archives and Records 
Administration for the Committee on Homeland Security and 
Governmental Affairs.) (Printed. 29 pp. S. Prt. 111-25)
    Rules of Procedure. Committee on Homeland Security and 
Governmental Affairs. (Printed. 36 pp. S. Prt. 111-31.) 
(Revised)
    Rules of Procedure. Permanent Subcommittee on 
Investigations. (Printed. 18 pp. S. Prt. 111-32.) (Revised)
    Legislative Calendar for the 111th Congress, (Printed. 174 
pp. S. Prt. 111-63.) (December 31, 2011).

                              GAO REPORTS

    Also during the 111th Congress, the Government 
Accountability Office (GAO) issued 176 reports at the request 
of the Committee. GAO reports requested by the Subcommittees 
appear in their respective sections. Reports are listed here by 
title, GAO number, and release date.
    Financial Regulation: A Framework for Crafting and 
Assessing Proposals to Modernize the Outdated U.S. Financial 
Regulatory System. GAO-09-216. January 08, 2009.
    Defense Logistics: Lack of Key Information May Impede DOD's 
Ability to Improve Supply Chain Management. GAO-09-150. January 
12, 2009.
    Aviation Security: Federal Air Marshal Service Has Taken 
Actions to Fulfill Its Core Mission and Address Workforce 
Issues, but Additional Actions Are Needed to Improve Workforce 
Survey. GAO-09-273. January 14, 2009.
    Nuclear Detection: Domestic Nuclear Detection Office Should 
Improve Planning to Better Address Gaps and Vulnerabilities. 
GAO-09-257. January 29, 2009.
    Military Base Realignments and Closures: DOD Faces 
Challenges in Implementing Recommendations on Time and Is Not 
Consistently Updating Savings Estimates. GAO-09-217. January 
30, 2009.
    Immigration Enforcement: Better Controls Needed over 
Program Authorizing State and Local Enforcement of Federal 
Immigration Laws. GAO-09-109. January 30, 2009.
    Veterinarian Workforce: Actions Are Needed to Ensure 
Sufficient Capacity for Protecting Public and Animal Health. 
GAO-09-178. February 04, 2009.
    Small Business Administration: Additional Guidance on 
Documenting Credit Elsewhere Decisions Could Improve 7(a) 
Program Oversight. GAO-09-228. February 12, 2009.
    Bank Secrecy Act: Federal Agencies Should Take Action to 
Further Improve Coordination and Information-Sharing Efforts. 
GAO-09-227. February 12, 2009.
    Older Workers: Enhanced Communication among Federal 
Agencies Could Improve Strategies for Hiring and Retaining 
Experienced Workers. GAO-09-206. February 24, 2009.
    Nuclear Nonproliferation: Strengthened Oversight Needed to 
Address Proliferation and Management Challenges in IAEA's 
Technical Cooperation Program. GAO-09-275. March 05, 2009.
    Information Technology: Census Bureau Testing of 2010 
Decennial Systems Can Be Strengthened. GAO-09-262. March 05, 
2009.
    2008 Lobbying Disclosure: Observations on Lobbyists' 
Compliance with Disclosure Requirements. GAO-09-487. April 01, 
2009.
    Foreign Aid Reform: Comprehensive Strategy, Interagency 
Coordination, and Operational Improvements Would Bolster 
Current Efforts. GAO-09-192. April 17, 2009.
    Iraqi Refugee Assistance: Improvements Needed in Measuring 
Progress, Assessing Needs, Tracking Funds, and Developing an 
International Strategic Plan. GAO-09-120. April 21, 2009.
    Recovery Act: As Initial Implementation Unfolds in States 
and Localities, Continued Attention to Accountability Issues Is 
Essential. GAO-09-580. April 23, 2009.
    National Preparedness: FEMA Has Made Progress, but Needs to 
Complete and Integrate Planning, Exercise, and Assessment 
Efforts. GAO-09-36. April 30, 2009.
    Financial Management: Achieving Financial Statement 
Auditability in the Department of Defense. GAO-09-373. May 06, 
2009.
    Financial Management Systems: OMB's Financial Management 
Line of Business Initiative Continues but Future Success 
Remains Uncertain. GAO-09-328. May 07, 2009.
    Regulation SHO: Recent Actions Appear to Have Initially 
Reduced Failures to Deliver, but More Industry Guidance Is 
Needed. GAO-09-483. May 12, 2009.
    Aviation Security: TSA Has Completed Key Activities 
Associated with Implementing Secure Flight, but Additional 
Actions Are Needed to Mitigate Risks. GAO-09-29. May 13, 2009.
    DOD Personnel Clearances: Comprehensive Timeliness 
Reporting, Complete Clearance Documentation, and Quality 
Measures Are Needed to Further Improve the Clearance Process. 
GAO-09-400. May 19, 2009.
    Combating Nuclear Smuggling: DHS Improved Testing of 
Advanced Radiation Detection Portal Monitors, but Preliminary 
Results Show Limits of the New Technology. GAO-09-655. May 21, 
2009.
    Federal Contracting: Guidance on Award Fees Has Led to 
Better Practices but Is Not Consistently Applied. GAO-09-630. 
May 29, 2009.
    Rebuilding Iraq: Improved Management Controls and Iraqi 
Commitment Needed for Key State and USAID Capacity-Building 
Programs. GAO-09-526. June 03, 2009.
    Alaska Native Villages: Limited Progress Has Been Made on 
Relocating Villages Threatened by Flooding and Erosion. GAO-09-
551. June 03, 2009.
    Influenza Pandemic: Increased Agency Accountability Could 
Help Protect Federal Employees Serving the Public in the Event 
of a Pandemic. GAO-09-404. June 12, 2009.
    Hurricanes Gustav and Ike Disaster Assistance: FEMA 
Strengthened Its Fraud Prevention Controls, but Customer 
Service Needs Improvement. GAO-09-671. June 19, 2009.
    Gulf Coast Disaster Recovery: Community Development Block 
Grant Program Guidance to States Needs to Be Improved. GAO-09-
541. June 19, 2009.
    Contract Management: Minimal Compliance with New Safeguards 
for Time-and-Materials Contracts for Commercial Services and 
Safeguards Have Not Been Applied to GSA Schedules Program. GAO-
09-579. June 24, 2009.
    District of Columbia Public Schools: Important Steps Taken 
to Continue Reform Efforts, But Enhanced Planning Could Improve 
Implementation and Sustainability. GAO-09-619. June 26, 2009.
    Information Technology: Federal Agencies Need to Strengthen 
Investment Board Oversight of Poorly Planned and Performing 
Projects. GAO-09-566. June 30, 2009.
    Highway Trust Fund Expenditures on Purposes Other than 
Construction and Maintenance of Highways and Bridges during 
Fiscal Years 2004-2008. GAO-09-729. June 30, 2009.
    Biosafety Laboratories: BSL-4 Laboratories Improved 
Perimeter Security Despite Limited Action by CDC. GAO-09-851. 
July 07, 2009.
    Recovery Act: States' and Localities' Current and Planned 
Uses of Funds While Facing Fiscal Stresses. GAO-09-829. July 
08, 2009.
    Disaster Assistance: Greater Coordination and an Evaluation 
of Programs' Outcomes Could Improve Disaster Case Management. 
GAO-09-561. July 08, 2009.
    Hurricane Katrina: Federal Grants Have Helped Health Care 
Organizations Provide Primary Care, but Challenges Remain. GAO-
09-588. July 13, 2009.
    Hurricane Katrina: Barriers to Mental Health Services for 
Children Persist in Greater New Orleans, Although Federal 
Grants Are Helping to Address Them. GAO-09-563. July 13, 2009.
    U.S. Postal Service: Mail Delivery Efficiency Has Improved, 
but Additional Actions Needed to Achieve Further Gains. GAO-09-
696. July 15, 2009.
    State Department: Key Transformation Practices Could Have 
Helped in Restructuring Arms Control and Nonproliferation 
Bureaus. GAO-09-738. July 15, 2009.
    Grants Management: Grants.gov Has Systematic Weaknesses 
That Require Attention. GAO-09-589. July 15, 2009.
    Information Security: Agencies Continue to Report Progress, 
but Need to Mitigate Persistent Weaknesses. GAO-09-546. July 
17, 2009.
    Project Bioshield: HHS Can Improve Agency Internal Controls 
for Its New Contracting Authorities. GAO-09-820. July 21, 2009.
    Improper Payments: Significant Improvements Needed in DOD's 
Efforts to Address Improper Payment and Recovery Auditing 
Requirements. GAO-09-442. July 29, 2009.
    Homeland Security: Federal Protective Service Should 
Improve Human Capital Planning and Better Communicate with 
Tenants. GAO-09-749. July 30, 2009.
    Disaster Recovery: Experiences from Past Disasters Offer 
Insights for Effective Collaboration after Catastrophic Events. 
GAO-09-811. July 31, 2009.
    Contingency Contract Management: DOD Needs to Develop and 
Finalize Background Screening and Other Standards for Private 
Security Contractors. GAO-09-351. July 31, 2009.
    Equal Employment Opportunity: Pilot Projects Could Help 
Test Solutions to Long-standing Concerns with the EEO Complaint 
Process. GAO-09-712. August 12, 2009.
    Results-Oriented Management: Strengthening Key Practices at 
FEMA and Interior Could Promote Greater Use of Performance 
Information. GAO-09-676. August 17, 2009.
    Emergency Communications: National Communications System 
Provides Programs for Priority Calling, but Planning for New 
Initiatives and Performance Measurement Could be Strengthened. 
GAO-09-822. August 28, 2009.
    Disaster Housing: FEMA Needs More Detailed Guidance and 
Performance Measures to Help Ensure Effective Assistance after 
Major Disasters. GAO-09-796. August 28, 2009.
    Medicaid: Fraud and Abuse Related to Controlled Substances 
Identified in Selected States. GAO-09-957. September 09, 2009.
    Homeland Defense: U.S. Northern Command Has a Strong 
Exercise Program, but Involvement of Interagency Partners and 
States Can Be Improved. GAO-09-849. September 09, 2009.
    Fannie Mae and Freddie Mac: Analysis of Options for 
Revising the Housing Enterprises' Longterm Structures. GAO-09-
782. September 10, 2009.
    Information Security: Concerted Effort Needed to Improve 
Federal Performance Measures. GAO-09-617. September 14, 2009.
    Department of State: Comprehensive Plan Needed to Address 
Persistent Foreign Language Shortfalls. GAO-09-955. September 
17, 2009.
    Department of State: Additional Steps Needed to Address 
Continuing Staffing and Experience Gaps at Hardship Posts. GAO-
09-874. September 17, 2009.
    High-Containment Laboratories: National Strategy for 
Oversight Is Needed. GAO-09-574. September 21, 2009.
    Credit Cards: Fair Debt Collection Practices Act Could 
Better Reflect the Evolving Debt Collection Marketplace and Use 
of Technology. GAO-09-748. September 21, 2009.
    Recovery Act: Funds Continue to Provide Fiscal Relief to 
States and Localities, While Accountability and Reporting 
Challenges Need to Be Fully Addressed. GAO-09-1016. September 
23, 2009.
    DCAA Audits: Widespread Problems with Audit Quality Require 
Significant Reform. GAO-09-468. September 23, 2009.
    Continuing Resolutions: Uncertainty Limited Management 
Options and Increased Workload in Selected Agencies. GAO-09-
879. September 24, 2009.
    Contingency Contracting: DOD, State, and USAID Continue to 
Face Challenges in Tracking Contractor Personnel and Contracts 
in Iraq and Afghanistan. GAO-10-1. October 01, 2009.
    Homeland Defense: Planning, Resourcing, and Training Issues 
Challenge DOD's Response to Domestic Chemical, Biological, 
Radiological, Nuclear, and High-Yield Explosive Incidents. GAO-
10-123. October 07, 2009.
    Information Technology: Agencies Need to Improve the 
Implementation and Use of Earned Value Techniques to Help 
Manage Major System Acquisitions. GAO-10-2. October 08, 2009.
    Centers for Medicare and Medicaid Services: Deficiencies in 
Contract Management Internal Control Are Pervasive. GAO-10-60. 
October 23, 2009.
    Human Capital: Monitoring of Safeguards and Addressing 
Employee Perceptions Are Key to Implementing a Civilian 
Performance Management System in DOD. GAO-10-102. October 28, 
2009.
    Public Safety Officers' Benefits Program: Performance 
Measurement Would Strengthen Accountability and Enhance 
Awareness Among Potential Claimants. GAO-10-5. October 29, 
2009.
    Supply Chain Security: Feasibility and Cost-Benefit 
Analysis Would Assist DHS and Congress in Assessing and 
Implementing the Requirement to Scan 100 Percent of U.S.-Bound 
Containers. GAO-10-12. October 30, 2009.
    State Department: Diplomatic Security's Recent Growth 
Warrants Strategic Review. GAO-10-156. November 12, 2009.
    2010 Census: Census Bureau Has Made Progress on Schedule 
and Operational Control Tools, but Needs to Prioritize 
Remaining System Requirements. GAO-10-59. November 13, 2009.
    UN Office for Project Services: Management Reforms 
Proceeding but Effectiveness Not Assessed, and USAID's 
Oversight of Grants Has Weaknesses. GAO-10-168. November 19, 
2009.
    Recovery Act: Recipient Reported Jobs Data Provide Some 
Insight into Use of Recovery Act Funding, but Data Quality and 
Reporting Issues Need Attention. GAO-10-223. November 19, 2009.
    Department of Homeland Security: Actions Taken Toward 
Management Integration, but a Comprehensive Strategy Is Still 
Needed. GAO-10-131. November 20, 2009.
    Program Evaluation: A Variety of Rigorous Methods Can Help 
Identify Effective Interventions. GAO-10-30. November 23, 2009.
    Financial Management Systems: DHS Faces Challenges to 
Successfully Consolidating Its Existing Disparate Systems. GAO-
10-76. December 04, 2009.
    Formula Grants: Funding for the Largest Federal Assistance 
Programs Is Based on Census-Related Data and Other Factors. 
GAO-10-263. December 15, 2009.
    Biosurveillance: Developing a Collaboration Strategy Is 
Essential to Fostering Interagency Data and Resource Sharing. 
GAO-10-171. December 18, 2009.
    Disaster Assistance: Federal Assistance for Permanent 
Housing Primarily Benefited Homeowners; Opportunities Exist to 
Better Target Rental Housing Needs. GAO-10-17. January 14, 
2010.
    Results-Oriented Cultures: Office of Personnel Management 
Should Review Administrative Law Judge Program to Improve 
Hiring and Performance Management. GAO-10-14. January 15, 2010.
    Recovery Act: IRS Quickly Implemented Tax Provisions, but 
Reporting and Enforcement Improvements Are Needed. GAO-10-349. 
February 10, 2010.
    Recovery Act: One Year Later, States' and Localities' Uses 
of Funds and Opportunities to Strengthen Accountability. GAO-
10-437. March 03, 2010.
    Energy Star Program: Covert Testing Shows the Energy Star 
Program Certification Process Is Vulnerable to Fraud and Abuse. 
GAO-10-470. March 05, 2010.
    Iraq: Iraqi Refugees and Special Immigrant Visa Holders 
Face Challenges Resettling in the United States and Obtaining 
U.S. Government Employment. GAO-10-274. March 09, 2010.
    Information Security: Concerted Effort Needed to 
Consolidate and Secure Internet Connections at Federal 
Agencies. GAO-10-237. March 12, 2010.
    Information Security: Agencies Need to Implement Federal 
Desktop Core Configuration Requirements. GAO-10-202. March 12, 
2010.
    Electronic Government: Implementation of the Federal 
Funding Accountability and Transparency Act of 2006. GAO-10-
365. March 12, 2010.
    Homeland Defense: DOD Needs to Take Actions to Enhance 
Interagency Coordination for Its Homeland Defense and Civil 
Support Missions. GAO-10-364. March 30, 2010.
    Homeland Defense: DOD Can Enhance Efforts to Identify 
Capabilities to Support Civil Authorities during Disasters. 
GAO-10-386. March 30, 2010.
    Disaster Recovery: FEMA's Long-term Assistance Was Helpful 
to State and Local Governments but Had Some Limitations. GAO-
10-404. March 30, 2010.
    2009 Lobbying Disclosure: Observations on Lobbyists' 
Compliance with Disclosure Requirements. GAO-10-499. April 01, 
2010.
    U.S. Postal Service: Strategies and Options to Facilitate 
Progress toward Financial Viability. GAO-10-455. April 12, 
2010.
    Contingency Contracting: Improvements Needed in Management 
of Contractors Supporting Contract and Grant Administration in 
Iraq and Afghanistan. GAO-10-357. April 12, 2010.
    Homeland Security: Federal Protective Service's Contract 
Guard Program Requires More Oversight and Reassessment of Use 
of Contract Guards. GAO-10-341. April 13, 2010.
    International Security: DOD and State Need to Improve 
Sustainment Planning and Monitoring and Evaluation for Section 
1206 and 1207 Assistance Programs. GAO-10-431. April 15, 2010.
    Domestic Food Assistance: Complex System Benefits Millions, 
but Additional Efforts Could Address Potential Inefficiency and 
Overlap among Smaller Programs. GAO-10-346. April 15, 2010.
    Language Access: Selected Agencies Can Improve Services to 
Limited English Proficient Persons. GAO-10-91. April 26, 2010.
    Nuclear Safety: Convention on Nuclear Safety Is Viewed by 
Most Member Countries as Strengthening Safety Worldwide. GAO-
10-489. April 29, 2010.
    Contracting Strategies: Data and Oversight Problems Hamper 
Opportunities to Leverage Value of Interagency and 
Enterprisewide Contracts. GAO-10-367. April 29, 2010.
    Streamlining Government: Opportunities Exist to Strengthen 
OMB's Approach to Improving Efficiency. GAO-10-394. May 07, 
2010.
    Recovery Act: States' and Localities' Uses of Funds and 
Actions Needed to Address Implementation Challenges and Bolster 
Accountability. GAO-10-604. May 26, 2010.
    Information Security: Federal Guidance Needed to Address 
Control Issues with Implementing Cloud Computing. GAO-10-513. 
May 27, 2010.
    Department of Homeland Security: DHS Needs to 
Comprehensively Assess Its Foreign Language Needs and 
Capabilities and Identify Shortfalls. GAO-10-714. June 22, 
2010.
    Social Security Administration: Cases of Federal Employees 
and Transportation Drivers and Owners Who Fraudulently and/or 
Improperly Received SSA Disability Payments. GAO-10-444. June 
25, 2010.
    Personnel Practices: Conversions of Employees from 
Political to Career Positions May 2005-May 2009. GAO-10-688. 
June 28, 2010.
    Foreign Assistance: USAID Needs to Improve Its Strategic 
Planning to Address Current and Future Workforce Needs. GAO-10-
496. June 30, 2010.
    Biosurveillance: Efforts to Develop a National 
Biosurveillance Capability Need a National Strategy and a 
Designated Leader. GAO-10-645. June 30, 2010.
    Afghanistan Development: Enhancements to Performance 
Management and Evaluation Efforts Could Improve USAID's 
Agricultural Programs. GAO-10-368. July 14, 2010.
    Information Technology: OMB's Dashboard Has Increased 
Transparency and Oversight, but Improvements Needed. GAO-10-
701. July 16, 2010.
    Border Security: CBP Lacks the Data Needed to Assess the 
FAST Program at U.S. Northern Border Ports. GAO-10-694. July 
19, 2010.
    Military Naturalizations: USCIS Generally Met Mandated 
Processing Deadlines, but Processing Applicants Deployed 
Overseas Is a Challenge. GAO-10-865. July 29, 2010.
    Hurricane Recovery: Federal Government Provided a Range of 
Assistance to Nonprofits following Hurricanes Katrina and Rita. 
GAO-10-800. July 30, 2010.
    Homeland Security: Addressing Weaknesses with Facility 
Security Committees Would Enhance Protection of Federal 
Facilities. GAO-10-901. August 05, 2010.
    Privacy: OPM Should Better Monitor Implementation of 
Privacy-Related Policies and Procedures for Background 
Investigations. GAO-10-849. September 07, 2010.
    Financial Management Systems: Experience with Prior 
Migration and Modernization Efforts Provides Lessons Learned 
for New Approach. GAO-10-808. September 08, 2010.
    Contractor Integrity: Stronger Safeguards Needed for 
Contractor Access to Sensitive Information. GAO-10-693. 
September 10, 2010.
    Iraqi-U.S. Cost-Sharing: Iraq Has a Cumulative Budget 
Surplus, Offering the Potential for Further Cost-Sharing. GAO-
10-304. September 13, 2010.
    Recovery Act: Opportunities to Improve Management and 
Strengthen Accountability over States' and Localities' Uses of 
Funds. GAO-10-999. September 20, 2010.
    Public Transit Security Information Sharing: DHS Could 
Improve Information Sharing through Streamlining and Increased 
Outreach. GAO-10-89. September 22, 2010.
    Child Care and Development Fund: Undercover Tests Show Five 
State Programs Are Vulnerable to Fraud and Abuse. GAO-10-1062. 
September 22, 2010.
    Head Start: Undercover Testing Finds Fraud and Abuse at 
Selected Head Start Centers. GAO-10-1049. September 28, 2010.
    Information Sharing: Federal Agencies Are Helping Fusion 
Centers Build and Sustain Capabilities and Protect Privacy, but 
Could Better Measure Results. GAO-10-972. September 29, 2010.
    U.S. Employment in the United Nations: State Department 
Needs to Enhance Reporting Requirements and Evaluate Its 
Efforts to Increase U.S. Representation. GAO-10-102. September 
30, 2010.
    Iraq and Afghanistan: DOD, State, and USAID Face Continued 
Challenges in Tracking Contracts, Assistance Instruments, and 
Associated Personnel. GAO-11-1. October 01, 2010.
    DOD Business Transformation: Improved Management Oversight 
of Business System Modernization Efforts Needed. GAO-11-53. 
October 07, 2010.
    Managing For Results: Opportunities to Strengthen Agencies' 
Customer Service Efforts. GAO-11-44. October 27, 2010.
    Live Animal Imports: Agencies Need Better Collaboration to 
Reduce the Risk of Animal-Related Diseases. GAO-11-9. November 
08, 2010.
    National Security: An Overview of Professional Development 
Activities Intended to Improve Interagency Collaboration. GAO-
11-108. November 15, 2010.
    Afghanistan Development: U.S. Efforts to Support Afghan 
Water Sector Increasing, but Improvements Needed in Planning 
and Coordination. GAO-11-138. November 15, 2010.
    District of Columbia Public Education: Agencies Have 
Enhanced Internal Controls Over Federal Payments for School 
Improvement, But More Consistent Monitoring Needed. GAO-11-16. 
November 18, 2010.
    Border Security: Additional Actions Needed to Better Ensure 
a Coordinated Federal Response to Illegal Activity on Federal 
Lands. GAO-11-177. November 18, 2010.
    Displaced Iraqis: Integrated International Strategy Needed 
to Reintegrate Iraq's Internally Displaced and Returning 
Refugees. GAO-11-12. December 02, 2010.
    2010 Census: Key Efforts to Include Hard-to-Count 
Populations Went Generally as Planned; Improvements Could Make 
the Efforts More Effective for Next Census. GAO-11-45. December 
14, 2010.
    2010 Census: Follow-up Should Reduce Coverage Errors, but 
Effects on Demographic Groups Need to Be Determined. GAO-11-
154. December 14, 2010.
    2010 Census: Data Collection Operations Were Generally 
Completed as Planned, but Longstanding Challenges Suggest Need 
for Fundamental Reforms. GAO-11-193. December 14, 2010.
    Recovery Act: Head Start Grantees Expand Services, but More 
Consistent Communication Could Improve Accountability and 
Decisions about Spending. GAO-11-166. December 15, 2010.
    Federal Work/Life Programs: Agencies Generally Satisfied 
with OPM Assistance, but More Tracking and Information Sharing 
Needed. GAO-11-137. December 16, 2010.
    Public Health Information Technology: Additional Strategic 
Planning Needed to Guide HHS's Efforts to Establish Electronic 
Situational Awareness Capabilities. GAO-11-99. December 17, 
2010.
    Border Security: Enhanced DHS Oversight and Assessment of 
Interagency Coordination Is Needed for the Northern Border. 
GAO-11-97. December 17, 2010.

                      VI. OFFICIAL COMMUNICATIONS

    During the 111th Congress, 964 official communications were 
referred to the Committee. Of these, 957 were Executive 
Communications, six were Petitions or Memorials, and one was a 
Presidential Message. Of the official communications, 440 dealt 
with the District of Columbia.

                        VII. LEGISLATIVE ACTIONS

    During the 111th Congress, the Committee reported 
significant legislation that was approved by Congress and 
signed into law by the President.
    The following are brief legislative histories of measures 
to the Committee and, in some cases, drafted by the Committee, 
which (1) became public law or (2) were favorably reported from 
the Committee and passed by the Senate, but did not become law. 
In addition to the measures listed below, the Committee 
received during the 111th Congress numerous legislative 
proposals that were not considered or reported, or that were 
reported but not passed by the Senate. Additional information 
on these measures appear in the Committee's Legislative 
Calendar for the 111th Congress, S. Prt. 111-63, (December 31, 
2011).

                       measures enacted into law

    The following measures considered by the Committee were 
enacted into Public Law. The descriptions following the signing 
date of each measure note selected provisions of the text, and 
are not intended to serve as section-by-section summaries.
    H.R. 553.--To require the Secretary of Homeland Security to 
develop a strategy to prevent the over-classification of 
homeland security and other information and to promote the 
sharing of unclassified homeland security and other 
information, and for other purposes. (Public Law 111-258). 
October 7, 2010.
    Amends the Homeland Security Act of 2002 (HSA) to direct 
the Secretary of Homeland Security (DHS) to designate a 
Classified Information Advisory Officer to develop and 
disseminate educational materials and to develop and administer 
training programs to assist state, local, and tribal 
governments (including law enforcement agencies) and private 
sector entities: (1) in developing plans and policies to 
respond to requests related to classified information without 
communicating such information to individuals who lack 
appropriate security clearances; (2) regarding the appropriate 
procedures for challenging classification designations of 
information received by personnel of such entities; and (3) on 
the means by which such personnel may apply for security 
clearances. Directs such Officer to inform the Under Secretary 
for Intelligence and Analysis on policies and procedures that 
could facilitate the sharing of classified information with 
such personnel.
    H.R. 730.--To strengthen efforts in the Department of 
Homeland Security to develop nuclear forensics capabilities to 
permit attribution of the source of nuclear material, and for 
other purposes. (Public Law 111-140). February 16, 2010.
    Expresses the sense of Congress that the President should: 
(1) pursue bilateral and multilateral international agreements 
to establish an international framework for determining the 
source of any confiscated nuclear or radiological material or 
weapon, as well as the source of any detonated weapon and the 
nuclear or radiological material used in such a weapon; (2) 
develop protocols for the data exchange and dissemination of 
sensitive information relating to nuclear or radiological 
materials and samples of controlled nuclear or radiological 
materials to the extent required by such agreements; and (3) 
develop expedited protocols for the data exchange and 
dissemination of sensitive information needed to publicly 
identify the source of a nuclear detonation.
    H.R. 1454.--To provide for the issuance of a Multinational 
Species Conservation Funds Semipostal Stamp. (Public Law 111-
241). September 30, 2010.
    Requires the United States Postal Service to issue and 
sell, at a premium, a Multinational Species Conservation Funds 
Semipostal Stamp. Requires the use of such a stamp to be 
voluntary on the part of postal patrons.
    H.R. 1517.--To allow certain U.S. Customs and Border 
Protection employees who serve under an overseas limited 
appointment for at least 2 years, and whose service is rated 
fully successful or higher throughout that time, to be 
converted to a permanent appointment in the competitive 
service. (Public Law 111-252). October 5, 2010.
    Authorizes the Commissioner of U.S. Customs and Border 
Protection (CBP) to convert an employee serving under an 
overseas limited appointment for at least 2 years of current 
continuous service, whose service is rated at least fully 
successful throughout that time, to a permanent appointment in 
the competitive service.
    H.R. 1722.--To require the head of each executive agency to 
establish and implement a policy under which employees shall be 
authorized to telework, and for other purposes. (Public Law 
111-292). December 9, 2010.
    Requires the head of each executive agency to: (1) 
establish a policy under which eligible agency employees may be 
authorized to telework; (2) determine employee eligibility to 
participate in telework; and (3) notify all employees of their 
eligibility to telework.
    H.R. 1746.--To amend the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act to reauthorize the pre-disaster 
mitigation program of the Federal Emergency Management Agency. 
(Public Law 111-351). January 4, 2011.
    Amends the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act to: (1) increase the amount guaranteed to each 
State under the predisaster hazard mitigation program to 
$575,000; (2) require the President to award financial 
assistance under the program on a competitive basis; (3) 
eliminate the current termination date for such program 
(September 30, 2010); and (4) authorize appropriations for the 
program through FY2013.
    H.R. 2142.--To require quarterly performance assessments of 
Government programs for purposes of assessing agency 
performance and improvement, and to establish agency 
performance improvement officers and the Performance 
Improvement Council. (Public Law 111-352). January 4, 2011.
    Requires the Director of OMB to coordinate with agencies to 
develop a Federal Government performance plan, which shall be 
submitted with the annual Federal budget and concurrently made 
available on an OMB Web site of agency programs. Requires such 
plan to: (1) establish government performance goals for the 
current and next fiscal years; (2) identify activities, 
entities, and policies contributing to each goal; (3) identify 
a lead government official responsible for coordinating efforts 
to achieve the goal; (4) establish common Federal Government 
performance indicators with quarterly targets; (5) establish 
clearly defined quarterly milestones; and (6) identify major 
management challenges and plans to address such challenges. 
Directs each agency to make its annual performance plan 
available on its public Web site and notify the President and 
Congress by the first Monday in February.
    H.R. 2711.--An act to amend title 5, United States Code, to 
provide for the transportation and moving expenses for the 
immediate family of certain Federal employees who die in the 
performance of their duties. (Public Law 111-178). June 9, 
2010.
    Authorizes the head of the concerned agency to pay the 
transportation (including one privately owned motor vehicle) 
and moving expenses attributable to a change of residence 
within the United States of the immediate family of a covered 
employee, including any Federal law enforcement officer, 
Federal Bureau of Investigation employee, or customs and border 
protection officer, who dies as a result of personal injury 
sustained while in the performance of duties, as well as 
expenses of preparing and transporting the remains of the 
deceased to the place where the family will reside following 
the employee's death (or another appropriate place for 
interment).
    H.R. 3978.--An act to amend the Homeland Security Act of 
2002 to authorize the Secretary of Homeland Security to accept 
and use gifts for otherwise authorized activities of the Center 
for Domestic Preparedness that are related to preparedness for 
a response to terrorism, and for other purposes. (Public Law 
111-245). September 30, 2010.
    Amends the Homeland Security Act of 2002 to: (1) authorize 
the Secretary of Homeland Security (DHS) to accept gifts of 
property and services for otherwise authorized activities of 
the Center for Domestic Preparedness that are related to 
efforts to prevent, prepare for, protect against, or respond to 
a natural disaster, act of terrorism, or other man-made 
disaster; (2) prohibit the Secretary from accepting a gift upon 
determining that the use of the property or services would 
compromise the integrity or appearance of integrity of a DHS 
program or an individual involved in a DHS program; and (3) 
require the Secretary to report to Congress annually disclosing 
such gifts, how they contribute to the Center's mission, and 
the amount of Federal savings generated.
    H.R. 3980.--To provide for identifying and eliminating 
redundant reporting requirements and developing meaningful 
performance metrics for homeland security preparedness grants, 
and for other purposes. (Public Law 111-271). October 12, 2010.
    Amends the Homeland Security Act of 2002 to direct the 
Administrator of the Federal Emergency Management Agency to 
submit to the appropriate congressional committees not later 
than 90 days after this Act's enactment a report that includes: 
(1) an assessment of redundant reporting requirements imposed 
by the Administrator on state, local, and tribal governments in 
connection with the awarding of covered grants; (2) a plan for 
eliminating any redundant and unnecessary reporting 
requirements identified; and (3) a plan for promptly developing 
a set of quantifiable performance measures and metrics to 
assess the effectiveness of the programs under which the grants 
are awarded.
    H.R. 4621.--To protect the integrity of the 
constitutionally-mandated United States census and prohibit 
deceptive mail practices that attempt to exploit the decennial 
census. (Public Law 111-155). April 7, 2010.
    Declares matter that bears the term ``census'' on its 
envelope, outside cover, or wrapper, but that constitutes a 
solicitation by a nongovernmental entity, to be nonmailable by 
the United States Postal Service, unless: (1) it satisfies one 
of the exceptions specified for otherwise nonmailable matter 
under existing law (such as displaying an appropriate 
disclaimer); and (2) its envelope, outside cover, or wrapper 
bears on its face an accurate return address including the name 
of the entity that sent it.
    H.R. 5148.--To amend title 39, United States Code, to 
clarify the instances in which the term ``census'' may appear 
on mailable matter. (Public Law 111-170). May 24, 2010.
    Requires, in order to not be disposed of by the U.S. Postal 
Service, any mailing soliciting the purchase of a product or 
service or soliciting information or the contribution of funds 
or membership fees that has the word ``census'' visible through 
the envelope, or outside cover or wrapper, to include: (1) the 
accurate name and return address of the entity sending the 
mailing; and (2) a notice that the mailing is not affiliated 
with the Federal Government.
    S. 615.--A bill to provide additional personnel authorities 
for the Special Inspector General for Afghanistan 
Reconstruction. (Public Law 111-38). June 30, 2009.
    Amends the National Defense Authorization Act for Fiscal 
Year 2008 to authorize the Special Inspector General for 
Afghanistan Reconstruction to exercise certain employment and 
employment-related authorities currently permitted for the 
heads of temporary organizations established by law or 
executive order.
    S. 692.--A bill to provide that claims of the United States 
to certain documents relating to Franklin Delano Roosevelt 
shall be treated as waived and relinquished in certain 
circumstances. (Public Law 111-138). February 1, 2010.
    Requires any claim of the United States to certain property 
relating to Franklin Delano Roosevelt, his family, or staff to 
be treated as having been waived and relinquished on the day 
before any person makes a gift of such property to the National 
Archives and Records Administration.
    S. 1508.--A bill to amend the Improper Payments Information 
Act of 2002 (31 U.S.C. 3321 note) in order to prevent the loss 
of billions in taxpayer dollars. (Public Law 111-204). July 22, 
2010.
    Amends the Improper Payments Information Act of 2002 to 
expand requirements for identifying programs and activities 
susceptible to improper payments by requiring the head of each 
Federal agency, during the year after the enactment of this Act 
and at least once every 3 fiscal years thereafter, to review 
and identify agency programs and activities that may be 
susceptible to significant improper payments. Defines 
``significant'' to mean: (1) improper payments in the preceding 
fiscal year that may have exceeded $100 million or $10 million 
of all program and activity payments and 2.5% of program 
outlays; and (2) for fiscal years prior to FY2013, improper 
payments that may have exceeded $100 million or $10 million of 
all program and activity payments and 1.5% of program outlays.
    S. 1510.--An act to transfer statutory entitlements to pay 
and hours of work authorized by laws codified in the District 
of Columbia Official Code for current members of the United 
States Secret Service Uniformed Division from such laws to the 
United States Code, and for other purposes. (Public Law 111-
282). October 15, 2010.
    Transfers statutory entitlements to pay and hours of work 
for members of the U.S. Secret Service Uniformed Division from 
laws codified in the District of Columbia Official Code to the 
United States Code. Authorizes the Secretary of Homeland 
Security (DHS) to: (1) fix and adjust basic pay rates for 
members of the U.S. Secret Service Uniformed Division; (2) 
determine what constitutes an acceptable level of competence; 
(3) establish and determine technician positions at the Officer 
and Sergeant ranks; and (4) determine the rate of basic pay of 
a member who is changed or demoted to a lower rank.
    S. 1825.--A bill to extend the authority for relocation 
expenses test programs for Federal employees, and for other 
purposes. (Public Law 111-112). November 30, 2009.
    Authorizes the Administrator of General Services to extend 
the authority for a relocation expenses test program for 
Federal employees upon the request of the agency administering 
the program. Requires each such agency to annually submit a 
report on the results of the program to the Administrator.
    S. 1860.--A bill to permit each current member of the Board 
of Directors of the Office of Compliance to serve for 3 terms. 
(Public Law 111-114). December 14, 2009.
    Authorizes any individual serving as a member of the Board 
of Directors of the Office of Compliance as of September 30, 
2009, to serve for three terms.
    S. 2865.--A bill to reauthorize the Congressional Award Act 
(2 U.S.C. 801 et seq.), and for other purposes. (Public Law 
111-200). July 7, 2010.
    Amends the Congressional Award Act to revise requirements 
for appointment and reappointment of members of the 
Congressional Award Board, especially the limitation of service 
on the Board to two consecutive terms. Allows the Board to 
accept funds to carry out its functions and make expenditures 
that are awarded in any grant program administered by a Federal 
agency.
    S. 2868.--An Act to provide increased access to the Federal 
supply schedules of the General Services Administration to the 
American Red Cross, other qualified organizations, and State 
and local governments. (Public Law 111-263). October 8, 2010.
    Authorizes the Administrator of General Services to provide 
for the use of Federal supply schedules by the American 
National Red Cross and other qualified organizations (as 
described in the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act) in furtherance of purposes determined 
to be appropriate to facilitate emergency preparedness and 
disaster relief. Prohibits use of such authority to purchase 
supplies for resale.
    S. 3196.--A bill to amend the Presidential Transition Act 
of 1963 to provide that certain transition services shall be 
available to eligible candidates before the general election. 
(Public Law 111-283). October 15, 2010.
    Amends the Presidential Transition Act of 1963 to direct 
the Administrator of the General Services Administration to 
provide certain presidential transition services and 
facilities, including office space, equipment, and payment of 
certain related expenses, to eligible presidential and vice-
presidential candidates before a presidential general election. 
Directs the President, or the President's delegate, to take 
necessary and appropriate actions to plan and coordinate 
activities by the Executive Branch of the Federal Government to 
facilitate an efficient transfer of power to a successor 
President.
    S. 3243.--To require U.S. Customs and Border Protection to 
administer polygraph examinations to all applicants for law 
enforcement positions with U.S. Customs and Border Protection, 
to require U.S. Customs and Border Protection to initiate all 
periodic background reinvestigations of certain law enforcement 
personnel, and for other purposes. (Public Law 111-376). 
January 4, 2011.
    Requires the Secretary of Homeland Security (DHS) to ensure 
that: (1) by not later than 2 years after enactment of this 
Act, all applicants for law enforcement positions with U.S. 
Customs and Border Protection receive polygraph examinations 
before being hired for such positions; and (2) by not later 
than 180 days after enactment of this Act, CBP initiates all 
periodic background reinvestigations for all of its law 
enforcement personnel.
    S. 3794.--A bill to amend chapter 5 of title 40, United 
States Code, to include organizations whose membership 
comprises substantially veterans as recipient organizations for 
the donation of Federal surplus personal property through State 
agencies. (Public Law 111-338). December 22, 2010.
    Authorizes the transfer of Federal surplus property to a 
State agency for distribution through donation within the State 
for purposes of education or public health for organizations 
whose membership comprises substantially veterans and whose 
representatives are recognized by the Secretary of Veterans 
Affairs (VA) in the preparation, presentation, and prosecution 
of claims under laws administered by the Secretary.

                          postal naming bills

    H.R. 663.--To designate the facility of the United States 
Postal Service located at 12877 Broad Street in Sparta, 
Georgia, as the ``Yvonne Ingram-Ephraim Post Office Building.'' 
(Public Law 111-26). June 19, 2009.
    H.R. 774.--To designate the facility of the United States 
Postal Service located at 46-02 21st Street in Long Island 
City, New York, as the ``Geraldine Ferraro Post Office 
Building.'' (Public Law 111-50). August 19, 2009.
    H.R. 918.--To designate the facility of the United States 
Postal Service located at 300 East 3rd Street in Jamestown, New 
York, as the ``Stan Lundine Post Office Building.'' (Public Law 
111-27). June 19, 2009.
    H.R. 955.--To designate the facility of the United States 
Postal Service located at 10355 Northeast Valley Road in 
Rollingbay, Washington, as the ``John `Bud' Hawk Post Office.'' 
(Public Law 111-99). November 30, 2009.
    H.R. 987.--To designate the facility of the United States 
Postal Service located at 601 8th Street in Freedom, 
Pennsylvania, as the ``John Scott Challis, Jr. Post Office.'' 
(Public Law 111-51). August 19, 2009.
    H.R. 1271.--To designate the facility of the United States 
Postal Service located at 2351 West Atlantic Boulevard in 
Pompano Beach, Florida, as the ``Elijah Pat Larkins Post Office 
Building.'' (Public Law 111-52). August 19, 2009.
    H.R. 1284.--To designate the facility of the United States 
Postal Service located at 103 West Main Street in McLain, 
Mississippi, as the ``Major Ed W. Freeman Post Office.'' 
(Public Law 111-28). June 19, 2009.
    H.R. 1397.--To designate the facility of the United States 
Postal Service located at 41 Purdy Avenue in Rye, New York, as 
the ``Caroline O'Day Post Office Building.'' (Public Law 111-
54). August 19, 2009.
    H.R. 1516.--To designate the facility of the United States 
Postal Service located at 37926 Church Street in Dade City, 
Florida, as the ``Sergeant Marcus Mathes Post Office.'' (Public 
Law 111-100). November 30, 2009.
    H.R. 1595.--To designate the facility of the United States 
Postal Service located at 3245 Latta Road in Rochester, New 
York, as the ``Brian K. Schramm Post Office Building.'' (Public 
Law 111-29). June 19, 2009.
    H.R. 1713.--To name the South Central Agricultural Research 
Laboratory of the Department of Agriculture in Lane, Oklahoma, 
and the facility of the United States Postal Service located at 
310 North Perry Street in Bennington, Oklahoma, in honor of 
former Congressman Wesley ``Wes'' Watkins. (Public Law 111-
101). November 30, 2009.
    H.R. 1817.--To designate the facility of the United States 
Postal Service located at 116 North West Street in Somerville, 
Tennessee, as the ``John S. Wilder Post Office Building.'' 
(Public Law 111-128). January 29, 2010.
    H.R. 2004.--To designate the facility of the United States 
Postal Service located at 4282 Beach Street in Akron, Michigan, 
as the ``Akron Veterans Memorial Post Office.'' (Public Law 
111-102). November 30, 2009.
    H.R. 2090.--To designate the facility of the United States 
Postal Service located at 431 State Street in Ogdensburg, New 
York, as the ``Frederic Remington Post Office Building.'' 
(Public Law 111-55). August 19, 2009.
    H.R. 2162.--To designate the facility of the United States 
Postal Service located at 123 11th Avenue South in Nampa, 
Idaho, as the ``Herbert A Littleton Postal Station.'' (Public 
Law 111-56). August 19, 2009.
    H.R. 2215.--To designate the facility of the United States 
Postal Service located at 140 Merriman Road in Garden City, 
Michigan, as the ``John J. Shivnen Post Office Building.'' 
(Public Law 111-103). November 30, 2009.
    H.R. 2325.--To designate the facility of the United States 
Postal Service located at 1300 Matamoros Street in Laredo, 
Texas, as the ``Laredo Veterans Post Office.'' (Public Law 111-
57). August 19, 2009.
    H.R. 2422.--To designate the facility of the United States 
Postal Service located at 2300 Scenic Drive in Georgetown, 
Texas, as the ``Kile G. West Post Office Building.'' (Public 
Law 111-58). August 19, 2009.
    H.R. 2470.--To designate the facility of the United States 
Postal Service located at 19190 Cochran Boulevard FRNT in Port 
Charlotte, Florida, as the ``Lieutenant Commander Roy H. Boehm 
Post Office Building.'' (Public Law 111-59). August 19, 2009.
    H.R. 2760.--To designate the facility of the United States 
Postal Service located at 1615 North Wilcox Avenue in Los 
Angeles, California, as the ``Johnny Grant Hollywood Post 
Office Building.'' (Public Law 111-104). November 30, 2009.
    H.R. 2877.--To designate the facility of the United States 
Postal Service located at 76 Brookside Avenue in Chester, New 
York, as the ``1st Lieutenant Louis Allen Post Office.'' 
(Public Law 111-129). January 29, 2010.
    H.R. 2972.--To designate the facility of the United States 
Postal Service located at 115 West Edward Street in Erath, 
Louisiana, as the ``Conrad DeRouen, Jr. Post Office.'' (Public 
Law 111-105). November 30, 2009.
    H.R. 3072.--To designate the facility of the United States 
Postal Service located at 9810 Halls Ferry Road in St. Louis, 
Missouri, as the ``Coach Jodie Bailey Post Office Building.'' 
(Public Law 111-130). January 29, 2010.
    H.R. 3119.--To designate the facility of the United States 
Postal Service located at 867 Stockton Street in San Francisco, 
California, as the ``Lim Poon Lee Post Office.'' (Public Law 
111-106). November 30, 2009.
    H.R. 3250.--To designate the facility of the United States 
Postal Service located at 1210 West Main Street in Riverhead, 
New York, as the ``Private First Class Garfield M. Langhorn 
Post Office Building.'' (Public Law 111-179). June 9, 2010.
    H.R. 3319.--To designate the facility of the United States 
Postal Service located at 440 South Gulling Street in Portola, 
California, as the ``Army Specialist Jeremiah Paul McCleery 
Post Office Building.'' (Public Law 111-131). January 29, 2010.
    H.R. 3386.--To designate the facility of the United States 
Postal Service located at 1165 2nd Avenue in Des Moines, Iowa, 
as the ``Iraq and Afghanistan Veterans Memorial Post Office.'' 
(Public Law 111-107). November 30, 2009.
    H.R. 3539.--To designate the facility of the United States 
Postal Service located at 427 Harrison Avenue in Harrison, New 
Jersey, as the ``Patricia D. McGinty-Juhl Post Office 
Building.'' (Public Law 111-132). January 29, 2010.
    H.R. 3547.--To designate the facility of the United States 
Postal Service located at 936 South 250 East in Provo, Utah, as 
the ``Rex E. Lee Post Office Building.'' (Public Law 111-108). 
November 30, 2009.
    H.R. 3634.--To designate the facility of the United States 
Postal Service located at 109 Main Street in Swifton, Arkansas, 
as the ``George Kell Post Office.'' (Public Law 111-180). June 
9, 2010.
    H.R. 3667.--To designate the facility of the United States 
Postal Service located at 16555 Springs Street in White 
Springs, Florida, as the ``Clyde L. Hillhouse Post Office 
Building.'' (Public Law 111-133). January 29, 2010.
    H.R. 3767.--To designate the facility of the United States 
Postal Service located at 170 North Main Street in Smithfield, 
Utah, as the ``W. Hazen Hillyard Post Office Building.'' 
(Public Law 111-134). January 29, 2010.
    H.R. 3788.--To designate the facility of the United States 
Postal Service located at 3900 Darrow Road in Stow, Ohio, as 
the ``Corporal Joseph A. Tomci Post Office Building.'' (Public 
Law 111-135). January 29, 2010.
    H.R. 3892.--To designate the facility of the United States 
Postal Service located at 101 West Highway 64 Bypass in Roper, 
North Carolina, as the ``E.V. Wilkins Post Office.'' (Public 
Law 111-181). June 9, 2010.
    H.R. 3951.--To designate the facility of the United States 
Postal Service located at 2000 Louisiana Avenue in New Orleans, 
Louisiana, as the ``Roy Rondeno, Sr. Post Office Building.'' 
(Public Law 111-193). June 28, 2010.
    H.R. 4017.--To designate the facility of the United States 
Postal Service located at 43 Maple Avenue in Shrewsbury, 
Massachusetts, as the ``Ann Marie Blute Post Office.'' (Public 
Law 111-182). June 9, 2010.
    H.R. 4095.--To designate the facility of the United States 
Postal Service located at 9727 Antioch Road in Overland Park, 
Kansas, as the ``Congresswoman Jan Meyers Post Office 
Building.'' (Public Law 111-183). June 9, 2010.
    H.R. 4139.--To designate the facility of the United States 
Postal Service located at 7464 Highway 503 in Hickory, 
Mississippi, as the ``Sergeant Matthew L. Ingram Post Office.'' 
(Public Law 111-184). June 9, 2010.
    H.R. 4214.--To designate the facility of the United States 
Postal Service located at 45300 Portola Avenue in Palm Desert, 
California, as the ``Roy Wilson Post Office.'' (Public Law 111-
185). June 9, 2010.
    H.R. 4238.--To designate the facility of the United States 
Postal Service located at 930 39th Avenue in Greeley, Colorado, 
as the ``W.D. Farr Post Office Building.'' (Public Law 111-
186). June 9, 2010.
    H.R. 4425.--To designate the facility of the United States 
Postal Service located at 2-116th Street in North Troy, New 
York, as the ``Martin G. `Marty' Mahar Post Office.'' (Public 
Law 111-187). June 9, 2010.
    H.R. 4543.--To designate the facility of the United States 
Postal Service located at 4285 Payne Avenue in San Jose, 
California, as the ``Anthony J. Cortese Post Office Building.'' 
(Public Law 111-276). October 13, 2010.
    H.R. 4547.--To designate the facility of the United States 
Postal Service located at 119 Station Road in Cheyney, 
Pennsylvania, as the ``Captain Luther H. Smith, U.S. Army Air 
Forces Post Office.'' (Public Law 111-188). June 9, 2010.
    H.R. 4602.--To designate the facility of the United States 
Postal Service located at 1332 Sharon Copley Road in Sharon 
Center, Ohio, as the ``Emil Bolas Post Office.'' (Public Law 
111-355). January 4, 2011.
    H.R. 4628.--To designate the facility of the United States 
Postal Service located at 216 Westwood Avenue in Westwood, New 
Jersey, as the ``Sergeant Christopher R. Hrbek Post Office 
Building.'' (Public Law 111-189). June 9, 2010.
    H.R. 4840.--An act to designate the facility of the United 
States Postal Service located at 1981 Cleveland Avenue in 
Columbus, Ohio, as the ``Clarence D. Lumpkin Post Office.'' 
(Public Law 111-208). July 27, 2010.
    H.R. 4861.--To designate the facility of the United States 
Postal Service located at 1343 West Irving Park Road in 
Chicago, Illinois, as the ``Steve Goodman Post Office 
Building.'' (Public Law 111-217). August 3, 2010.
    H.R. 5051.--To designate the facility of the United States 
Postal Service located at 23 Genesee Street in Hornell, New 
York, as the ``Zachary Smith Post Office Building.'' (Public 
Law 111-218). August 3, 2010.
    H.R. 5099.--To designate the facility of the United States 
Postal Service located at 15 South Main Street in Sharon, 
Massachusetts, as the ``Michael C. Rothberg Post Office.'' 
(Public Law 111-219). August 3, 2010.
    H.R. 5133.--To designate the facility of the United States 
Postal Service located at 331 1st Street in Carlstadt, New 
Jersey, as the ``Staff Sergeant Frank T. Carvill and Lance 
Corporal Michael A. Schwarz Post Office Building.'' (Public Law 
111-359). January 4, 2011.
    H.R. 5278.--To designate the facility of the United States 
Postal Service located at 405 West Second Street in Dixon, 
Illinois, as the ``President Ronald W. Reagan Post Office 
Building.'' (Public Law 111-235). August 16, 2010.
    H.R. 5341.--To designate the facility of the United States 
Postal Service located at 100 Orndorf Drive in Brighton, 
Michigan, as the ``Joyce Rogers Post Office Building.'' (Public 
Law 111-277). October 13, 2010.
    H.R. 5390.--To designate the facility of the United States 
Postal Service located at 13301 Smith Road in Cleveland, Ohio, 
as the ``David John Donafee Post Office Building.'' (Public Law 
111-278). October 13, 2010.
    H.R. 5395.--To designate the facility of the United States 
Postal Service located at 151 North Maitland Avenue in 
Maitland, Florida, as the ``Paula Hawkins Post Office 
Building.'' (Public Law 111-236). August 16, 2010.
    H.R. 5450.--To designate the facility of the United States 
Postal Service located at 3894 Crenshaw Boulevard in Los 
Angeles, California, as the ``Tom Bradley Post Office 
Building.'' (Public Law 111-279). October 13, 2010.
    H.R. 5605.--To designate the facility of the United States 
Postal Service located at 47 East Fayette Street in Uniontown, 
Pennsylvania, as the ``George C. Marshall Post Office.'' 
(Public Law 111-361). January 4, 2011.
    H.R. 5606.--To designate the facility of the United States 
Postal Service located at 47 South 7th Street in Indiana, 
Pennsylvania, as the ``James M. `Jimmy' Stewart Post Office 
Building.'' (Public Law 111-362). January 4, 2011.
    H.R. 5655.--To designate the Little River Branch facility 
of the United States Postal Service located at 140 NE 84th 
Street in Miami, Florida, as the ``Jesse J. McCrary, Jr. Post 
Office.'' (Public Law 111-363). January 4, 2011.
    H.R. 5758.--To designate the facility of the United States 
Postal Service located at 2 Government Center in Fall River, 
Massachusetts, as the ``Sergeant Robert Barrett Post Office 
Building.'' (Public Law 111-300). December 14, 2010.
    H.R. 5877.--To designate the facility of the United States 
Postal Service located at 655 Centre Street in Jamaica Plain, 
Massachusetts, as the ``Lance Corporal Alexander Scott 
Arredondo, United States Marine Corps Post Office Building.'' 
(Public Law 111-365). January 4, 2011.
    H.R. 6118.--To designate the facility of the United States 
Postal Service located at 2 Massachusetts Avenue, NE, in 
Washington, D.C., as the ``Dorothy I. Height Post Office.'' 
(Public Law 111-310). December 15, 2010.
    H.R. 6237.--To designate the facility of the United States 
Postal Service located at 1351 2nd Street in Napa, California, 
as the ``Tom Kongsgaard Post Office Building.'' (Public Law 
111-304). December 14, 2010.
    H.R. 6387.--To designate the facility of the United States 
Postal Service located at 337 West Clark Street in Eureka, 
California, as the ``Sam Sacco Post Office Building.'' (Public 
Law 111-305). December 14, 2010.
    H.R. 6400.--To designate the facility of the United States 
Postal Service located at 111 North 6th Street in St. Louis, 
Missouri, as the ``Earl Wilson, Jr. Post Office.'' (Public Law 
111-368). January 4, 2011.
    S. 234.--A bill to designate the facility of the United 
States Postal Service located at 2105 East Cook Street in 
Springfield, Illinois, as the ``Colonel John H. Wilson, Jr. 
Post Office Building.'' (Public Law 111-7). March 9, 2009.
    S. 748.--A bill to redesignate the facility of the United 
States Postal Service located at 2777 Logan Avenue in San 
Diego, California, as the ``Cesar E. Chavez Post Office.'' 
(Public Law 111-109). November 30, 2009.
    S. 1211.--A bill to designate the facility of the United 
States Postal Service located at 60 School Street, Orchard 
Park, New York, as the ``Jack F. Kemp Post Office Building.'' 
(Public Law 111-110). November 30, 2009.
    S. 1314.--A bill to designate the facility of the United 
States Postal Service located at 630 Northeast Killingsworth 
Avenue in Portland, Oregon, as the ``Dr. Martin Luther King, 
Jr. Post Office.'' (Public Law 111-111). November 30, 2009.
    S. 3567.--A bill to designate the facility of the United 
States Postal Service located at 100 Broadway in Lynbrook, New 
York, as the ``Navy Corpsman Jeffrey L. Wiener Post Office 
Building.'' (Public Law 111-288). November 30, 2009.
    S. 3592.--A bill to designate the facility of the United 
States Postal Service located at 100 Commerce Drive in Tyrone, 
Georgia, as the ``First Lieutenant Robert Wilson Collins Post 
Office Building.'' (Public Law 111-379). January 4, 2011.ca

                     VIII. PRESIDENTIAL NOMINATIONS

    The Committee received a total of 60 Presidential 
nominations during the 111th Congress. Of these, 39 were 
reported favorably and confirmed by the Senate, 12 were 
discharged from Committee and confirmed, 5 were withdrawn by 
the President, and 3 were not acted upon by the Committee. 
Hearing dates and reports on these nominations appear in 
Section IV.
    The following 41 nominations were favorably reported by the 
Committee and confirmed by the Senate:
    Jane Holl Lute, of New York, to be Deputy Secretary of 
Homeland Security, vice Paul A. Schneider, resigned. Confirmed 
April 3, 2009.
    John Berry, of the District of Columbia, to be Director of 
the Office of Personnel Management for a term of four years, 
vice Linda M. Springer, resigned. Confirmed April 3, 2009.
    John Morton, of Virginia, to be an Assistant Secretary of 
Homeland Security, vice Julie L. Myers, resigned. Confirmed May 
12, 2009.
    Ivan K. Fong, of Ohio, to be General Counsel, Department of 
Homeland Security, vice Philip J. Perry, resigned. Confirmed 
May 6, 2009.
    William Craig Fugate, of Florida, to be Administrator of 
the Federal Emergency Management Agency, Department of Homeland 
Security, vice R. David Paulison. Confirmed May 12, 2009.
    Marisa J. Demeo, of the District of Columbia, to be an 
Associate Judge of the Superior Court of the District of 
Columbia for the term of fifteen years, vice Rufus Gunn King, 
III, retired. Confirmed April 20, 2010.
    Florence Y. Pan, of the District of Columbia, to be an 
Associate Judge of the Superior Court of the District of 
Columbia for the term of fifteen years, vice Linda Turner 
Hamilton. Confirmed May 21, 2009.
    Timothy W. Manning, of New Mexico, to be Deputy 
Administrator for National Preparedness, Federal Emergency 
Management Agency, Department of Homeland Security, vice Dennis 
R. Schrader. Confirmed May 6, 2009.
    Cass R. Sunstein, of Massachusetts, to be Administrator of 
the Office of Information and Regulatory Affairs, Office of 
Management and Budget, vice Susan E. Dudley. Confirmed 
September 10, 2009.
    Rand Beers, of the District of Columbia, to be Under 
Secretary, Department of Homeland Security, vice Robert D. 
Jamison, resigned. Confirmed June 19, 2009.
    David Heyman, of the District of Columbia, to be an 
Assistant Secretary of Homeland Security, vice Stewart A. 
Baker, resigned. Confirmed June 4, 2009.
    Robert M. Groves, of Michigan, to be Director of the 
Census, vice Steven H. Murdock, resigned. Confirmed July 13, 
2009.
    Martha N. Johnson, of Maryland, to be Administrator of 
General Services, vice Lurita Alexis Doan, resigned. Confirmed 
February 4, 2010.
    Tara Jeanne O'Toole, of Maryland, to be Under Secretary for 
Science and Technology, Department of Homeland Security, vice 
Jay M. Cohen, resigned. Confirmed November 4, 2009.
    Christine M. Griffin, of Massachusetts, to be Deputy 
Director of the Office of Personnel Management, vice Howard 
Charles Weizmann, resigned. Confirmed July 31, 2009.
    Jeffrey D. Zients, of the District of Columbia, to be 
Deputy Director for Management, Office of Management and 
Budget, vice Clay Johnson, III, resigned. Confirmed June 19, 
2009.
    Stuart Gordon Nash, of the District of Columbia, to be an 
Associate Judge of the Superior Court of the District of 
Columbia for the term of fifteen years, vice Rafael Diaz, term 
expired. Confirmed April 20, 2010.
    Richard Serino, of Massachusetts, to be Deputy 
Administrator, Federal Emergency Management Agency, Department 
of Homeland Security, vice Harvey E. Johnson, Jr., resigned. 
Confirmed October 5, 2009.
    David S. Ferriero, of North Carolina, to be Archivist of 
the United States, vice Allen Weinstein, resigned. Confirmed 
July 28, 2009.
    Susan Tsui Grundmann, of Virginia, to be Chairman of the 
Merit Systems Protection Board, vice Neil McPhie. Confirmed 
November 5, 2009.
    Susan Tsui Grundmann, of Virginia, to be a Member of the 
Merit Systems Protection Board for the term of seven years 
expiring March 1, 2016, vice Neil McPhie, term expired. 
Confirmed November 5, 2009.
    Anne Marie Wagner, of Virginia, to be a Member of the Merit 
Systems Protection Board for the term of seven years expiring 
March 1, 2014, vice Barbara J. Sapin, resigned. Confirmed 
November 5, 2009.
    Daniel I. Werfel, of Virginia, to be Controller, Office of 
Federal Financial Management, Office of Management and Budget, 
vice Linda Morrison Combs, resigned. Confirmed October 13, 
2009.
    Daniel I. Gordon, of the District of Columbia, to be 
Administrator for Federal Procurement Policy, vice Paul A. 
Denett. Confirmed November 21, 2009.
    Elizabeth M. Harman, of Maryland, to be an Assistant 
Administrator of the Federal Emergency Management Agency, 
Department of Homeland Security, vice W. Ross Ashley, III, 
resigned. Confirmed March 3, 2010.
    Alan C. Kessler, of Pennsylvania, to be a Governor of the 
United States Postal Service for a term expiring December 8, 
2015. (Reappointment) Confirmed December 3, 2009.
    Grayling Grant Williams, of Maryland, to be Director of the 
Office of Counternarcotics Enforcement, Department of Homeland 
Security, vice Uttam Dhillon, resigned. Confirmed December 24, 
2009.
    Milton C. Lee, Jr., of the District of Columbia, to be an 
Associate Judge of the Superior Court of the District of 
Columbia for the term of fifteen years, vice Jerry Stewart 
Byrd, retired. Confirmed June 22, 2010.
    Dana Katherine Bilyeu, of Nevada, to be a Member of the 
Federal Retirement Thrift Investment Board for a term expiring 
October 11, 2011, vice Thomas A. Fink, term expired. Confirmed 
June 22, 2010.
    Michael D. Kennedy, of Georgia, to be a Member of Federal 
Retirement Thrift Investment Board for a term expiring 
September 25, 2010, vice Gordon Whiting, term expired. 
Confirmed June 22, 2010.
    Michael D. Kennedy, of Georgia, to be a Member of Federal 
Retirement Thrift Investment Board for a term expiring 
September 25, 2014. (Reappointment) Confirmed June 22, 2010.
    Dennis P. Walsh, of Maryland, to be Chairman of the Special 
Panel on Appeals for a term of six years, vice John L. Howard, 
term expired. Confirmed June 22, 2010.
    Dennis J. Toner, of Delaware, to be a Governor of the 
United States Postal Service for the remainder of the term 
expiring December 8, 2012, vice Katherine C. Tobin, resigned. 
Confirmed September 16, 2010.
    Todd E. Edelman, of the District of Columbia, to be an 
Associate Judge of the Superior Court of the District of 
Columbia for the term of fifteen years, vice Cheryl M. Long, 
retired. Confirmed June 22, 2010.
    Judith Anne Smith, of the District of Columbia, to be an 
Associate Judge of the Superior Court of the District of 
Columbia for the term of fifteen years, vice Geoffrey M. 
Alprin, retired. Confirmed June 22, 2010.
    John S. Pistole, of Virginia, to be an Assistant Secretary 
of Homeland Security, vice Edmund S. Hawley, resigned. 
Confirmed June 25, 2010.
    Maria Elizabeth Raffinan, of the District of Columbia, to 
be an Associate Judge of the Superior Court of the District of 
Columbia for the term of fifteen years, vice Odessa F. Vincent, 
retired. Confirmed September 29, 2010.
    Jacob J. Lew, of New York, to be Director of the Office of 
Management and Budget, vice Peter R. Orszag, resigned. 
Confirmed November 18, 2010.
    Eugene Louis Dodaro, of Virginia, to be Comptroller General 
of the United States for a term of fifteen years, vice David M. 
Walker, resigned. Confirmed December 22, 2010.
    The following nomination was favorably reported by the 
Committee but not acted upon by the Senate. It was returned to 
the President under provisions of Senate Rule XXXI, paragraph 
6, of the Standing Rules of the Senate:
    Jonathan Andrew Hatfield, of Virginia, to be Inspector 
General, Corporation for National and Community Service, vice 
Gerald Walpin, resigned. Returned December 22, 2010.
    The following five nominations were withdrawn by the 
President:
    Paul Steven Miller, of Washington, to be a Governor of the 
United States Postal Service for a term expiring December 8, 
2016, vice Carolyn L. Gallagher, term expired. Withdrawn June 
8, 2010.
    Erroll G. Southers, of California, to be an Assistant 
Secretary of Homeland Security, vice Edmund S. Hawley, 
resigned. Withdrawn January 21, 2010.
    Richard Serino, of Massachusetts, to be Deputy 
Administrator and Chief Operating Officer, Federal Emergency 
Management Agency, Department of Homeland Security, vice Harvey 
E. Johnson, Jr., resigned. Withdrawn July 27, 2009.
    Alexander G. Garza, of Missouri, to be Assistant Secretary 
for Health Affairs and Chief Medical Officer, Department of 
Homeland Security, vice Jeffrey William Runge. Withdrawn July 
27, 2009.
    Stuart Gordon Nash, of the District of Columbia, to be an 
Associate Judge of the Superior Court of the District of 
Columbia for the term of fifteen years, vice Rufus Gunn King, 
III, retired. Withdrawn March 24, 2009.
    The following three nominations were not acted upon by the 
Committee. Each was returned to the President under provisions 
of Senate Rule XXXI, paragraph 6, of the Standing Rules of the 
Senate:
    Carolyn N. Lerner, of Maryland, to be Special Counsel, 
Office of Special Counsel, for the term of five years, vice 
Scott J. Bloch, resigned. Returned 22, 2010.
    Esteban Soto III, of Maryland, to be United States Marshal 
for the Superior Court of the District of Columbia for the term 
of four years, vice Stephen Thomas Conboy, resigned. Returned 
December 22, 2010.
    Rafael Borras, of Maryland, to be Under Secretary for 
Management, Department of Homeland Security, vice Elaine C. 
Duke, resigned, to which position he was appointed during the 
last recess of the Senate. Returned December 22, 2010.
                  IX. ACTIVITIES OF THE SUBCOMMITTEES


                   SUBCOMMITTEE ON FEDERAL FINANCIAL


                  MANAGEMENT, GOVERNMENT INFORMATION,


              FEDERAL SERVICES, AND INTERNATIONAL SECURITY


                       Chairman: Thomas R. Carper


                  Ranking Minority Member: Tom Coburn


                              I. HEARINGS

    The Subcommittee on Federal Financial Management, 
Government Information, Federal Services, and International 
Security held the following hearings during the 111th Congress.
    1. January 28, 2009, ``The Impact of the Economic Crisis on 
the U.S. Postal Service.''
    This hearing sought to understand how the Nation's current 
economic crisis has affected the Postal Service. Some ideas the 
Subcommittee explored to save the Postal Service money included 
cutting work hours, streamlining operations, increasing postage 
rates, and pre-funding health related obligations to future 
retirees.
    Witnesses included: Hon. John E. Potter, Postmaster General 
and Chief Executive Officer, U.S. Postal Service, Hon. Dan 
Blair, Chairman, U.S. Postal Regulatory Commission, and Phillip 
R. Herr, Director, Physical Infrastructure Issues, U.S. 
Government Accountability Office.
    2. March 5, 2009, ``Lessons Learned: How the New 
Administration Can Achieve an Accurate and Cost-Effective 2010 
Census.''
    This hearing sought to lay the groundwork for a successful 
Census in 2010. Many challenges facing the Census Bureau were 
discussed including: Underfunding for outreach to minority 
communities and the mis-management of the contract for hand-
held computers to aid in data collection. In addition, the 
Chairman brought up the need for a new nominee for Census 
Director to provide essential leadership and organization.
    Witnesses included: Hon. Barbara Everitt Bryant, Ph.D., 
Former Director, U.S. Census Bureau, Lawrence Brown, Ph.D., 
Chair, Committee on National Statistics, National Academy of 
Sciences, Robert Goldenkoff, Director, Strategic Issues, U.S. 
Government Accountability Office, Robert B. Hill, Ph.D., 
Sociologist and Former Chair of the Advisory Committee on 
African American Population, U.S. Census Bureau, David Powner, 
Director, Information Technology Management Issues, U.S. 
Government Accountability Office, and John Thompson, President, 
National Opinion Research Council.
    3. April 22, 2009, ``Eliminating Waste and Fraud in 
Medicare and Medicaid.''
    This hearing sought to identify three things: Programs and 
activities that have successfully eliminated or reduced fraud, 
waste, and abuse in Medicare and Medicaid; major challenges for 
CMS, OIG and States in controlling fraud, waste, and abuse; and 
ways in which Congress can help to prevent fraud, waste, and 
abuse.
    The following witnesses appeared: Kay L. Daly, Director, 
Financial Management and Assurance, U.S. Government 
Accountability Office; Deborah Taylor, Acting Director and 
Chief Financial Officer, U.S. Office of Financial Management, 
Centers for Medicare and Medicaid Services, U.S. Department of 
Health and Human Services; Lewis Morris, Chief Counsel, Office 
of Inspector General, U.S. Department of Health and Human 
Services; and James G. Sheehan, Medicaid Inspector General, New 
York State Office of the Medicaid Inspector General.
    4. April 28, 2009, ``Government 2.0: Advancing America into 
the 21st Century and a Digital Future.''
    This hearing examined the Obama Administration's plans to 
use information technology to make government more efficient, 
secure, and citizen-focused.
    The following witnesses appeared: Hon. Vivek Kundra, 
Federal Chief Information Officer, Administrator for Electronic 
Government, Office of Management and Budget; David A. Powner, 
Director, Information Technology Issues, U.S. Government 
Accountability Office; Karen S. Evans, former Administrator, 
Office of Electronic Government and Information Technology, 
Office of Management and Budget; and Phillip J. Bond, President 
and CEO, TechAmerica.
    5. May 11, 2009, ``Making the Census Count in Urban 
America.''
    This hearing was held at the National Constitution Center 
in Philadelphia, PA. Historically, large urban areas like 
Philadelphia have experienced undercounts in the U.S. Census 
for various reasons--lack of public awareness, limited 
outreach, and the challenges in reaching such a diverse and 
mobile population. In 2000, Philadelphia had a census response 
rate of 56 percent, falling far below the national response 
rate of 67 percent. This hearing examined the plan for outreach 
strategies prior to the 2010 Census, the challenges and 
opportunities facing hard-to-count communities, and what 
individuals can do to ensure an accurate, responsible Census.
    The following witnesses appeared: Hon. Michael A. Nutter, 
Mayor, City of Philadelphia; Hon. Michael N. Castle, a U.S. 
Representative in Congress from the State of Delaware; Hon. 
James Baker, Mayor, City of Wilmington; Camille Cates Barnett, 
Managing Director, City of Philadelphia; Thomas Mesenbourg, 
Acting Director, U.S. Census Bureau, U.S. Department of 
Commerce; Norman Bristol Colon, Executive Director, Governor's 
Advisory Commission on Latino Affairs, Office of Governor 
Edward G. Rendell; Patricia A. Coulter, President and CEO, 
Urban League of Philadelphia; and Wanda M. Lopez, Executive 
Director, Governor's Advisory Council on Hispanic Affairs.
    6. July 7, 2009, ``From Strategy to Implementation: 
Strengthening U.S.-Pakistan Relations.''
    This hearing examined the Obama Administration's AfPak 
policy, analyzing whether it is the most effective strategy, 
and paid particular attention to the possibility of al-Qaeda 
(or another terrorist group) acquiring a warhead or enough 
radioactive material to create a dirty bomb.
    The following witnesses appeared: Hon. Mark Udall, a U.S. 
Senator from the State of Colorado; Paul W. Jones, Deputy 
Special Representative for Afghanistan and Pakistan, and Deputy 
Assistant Secretary of State for South and Central Asia, Office 
of the special Representative for Afghanistan and Pakistan, 
U.S. Department of State; Lisa Curtis, Senior Research Fellow, 
Asian Studies Center, The Heritage Foundation; Nicholas 
Schmidle, Fellow, New America Foundation; Shuja Nawaz, 
Director, South Asia Center, The Atlantic Council; Nathaniel 
Fick, Chief Executive Officer, Center for a New American 
Security; and Rolf Mowatt-Larssen, Senior Fellow, Belfer Center 
for Science and International Affairs, John F. Kennedy School 
of Government, Harvard University.
    7. August 3, 2009, ``Eliminating Wasteful Contractor 
Bonuses.''
    This hearing focused on whether agencies are properly using 
award fee contract vehicles to align contractor profitability 
with superior performance.
    The following witnesses appeared: Hon. Jeffrey D. Zients, 
Deputy Director for Management, Office of Management and 
Budget; John Hutton, Director, Acquisition and Sourcing 
Management, U.S. Government Accountability Office; Shay D. 
Assad, Acting Deputy Under Secretary of Defense for Acquisition 
and Technology, U.S. Department of Defense; William P. McNally, 
Assistant Administrator for Procurement, and Deputy Chief 
Acquisition Officer, National Aeronautics and Space 
Administration; Richard K. Gunderson, Acting Chief Procurement 
Officer, U.S. Department of Homeland Security; Edward R. 
Simpson, Director, Office of Procurement and Assistance 
Management, U.S. Department of Energy; and Alan Chvotkin, 
Executive Vice President and Counsel, Professional Services 
Council.
    8. August 6, 2009, ``The U.S. Postal Service in Crisis.''
    This hearing examined the Postal Service's financial 
condition and proposals that have been made to address the 
problems that have put the Service on the brink of failure. If 
Congress does not step in with financial relief or a 
restructuring of the Postal Service's retiree health payments, 
there is a great risk that the Postal Service may have run out 
of cash by the beginning of FY2010. This would likely force 
postal management to cease operations.
    Witnesses at this hearing were as follows: Hon. John E. 
Potter, Postmaster General and Chief Executive Officer, U.S. 
Postal Service; Fredric V. Rolando, President, National 
Association of Letter Carriers, AFL-CIO; David C. Williams, 
Inspector General, U.S. Postal Service; Phillip R. Herr, 
Director, Physical Infrastructure Issues, U.S. Government 
Accountability Office; William Burrus, President, American 
Postal Workers Union, AFL-CIO; Dale Goff, President, National 
Association of Postmasters of the United States, James E. West, 
Director, Postal and Government Affairs, Williams-Sonoma, Inc.; 
Mark Suwyn, Executive Chairman NewPage Corporation; Nancy H. 
Kichak, Associate Director for Strategic Human Resources Policy 
Division, U.S. Office of Personnel Management; and Hon. Ruth Y. 
Goldway, Chairman, Postal Regulatory Commission.
    9. September 24, 2009, ``Getting to Better Government: 
Focusing on Performance.''
    As the Government Accountability Office has pointed out, 
the Federal Government's performance and the results it 
achieves have a profound effect on the most important issues to 
the American people-creating jobs, providing health care, 
overseeing financial markets, reducing pollutants and sending 
additional troops to war. Congress has a responsibility to make 
sure taxpayers' investment in America is managed in the most 
effective way possible. This hearing sought to examine how 
performance information was being used to better manage Federal 
agencies and how managers could apply it on a more consistent 
basis for lasting results.
    Witnesses included: Hon. Jeffrey D. Zients, Federal Chief 
Performance Officer and Deputy Director for Management, Office 
of Management and Budget; Bernice Steinhardt, Director for 
Strategic Issues, U.S. Government Accountability Office; W. 
Craig Fugate, Administrator, Federal Emergency, Management 
Agency, U.S. Department of Homeland Security; Rhea S. Suh, 
Assistant Secretary for Policy, Management, and Budget, U.S. 
Department of the Interior; Michelle Snyder, Acting Deputy 
Administrator and Deputy Chief Operating Officer, Centers for 
Medicare and Medicaid Services; and Paul Posner, Director, 
Public Administration Program, Department of Public and 
International Affairs, George Mason University.
    10. September 30, 2009, ``A Prescription for Waste: 
Controlled Substance Abuse in Medicaid.''
    This hearing explored the surge in fraudulent controlled 
substance prescription claims. In particular, the Subcommittee 
focused on a study completed by GAO which found tens of 
thousands of Medicaid beneficiaries and providers involved in 
fraudulent purchases of controlled substances through the 
Medicaid program. The three main sources of fraud and abuse 
which were discussed during this hearing include: Beneficiaries 
engaged in ``doctor shopping'' substances ``received'' by dead 
beneficiaries or ``written'' by dead doctors, and banned 
physicians continuing to illegally write prescriptions and have 
them paid for by Medicaid.
    Witnesses included: Gregory D. Kutz, Managing Director, 
Forensic Audits and Special Investigations, U.S. Government 
Accountability Office; Penny Thompson, Deputy Director, Center 
for Medicaid and State Operations, Centers for Medicare and 
Medicaid Services; Ann Kohler, Executive Director, National 
Association of State Medicaid Directors; and Joseph Rannazzisi, 
Deputy Assistant Administrator, Office of Diversion Control, 
U.S. Drug Enforcement Agency, U.S. Department of Justice.
    11. October 7, 2009, ``2010 Census: A Status Update of Key 
Decennial Operations.''
    This hearing provided a status update of key decennial 
operations to determine the Census Bureau's overall readiness 
for the 2010 Census. The Subcommittee was updated on 2010 
decennial operations, focusing on the results of the Bureau's 
recent completion of its address canvassing operation, the 
progress of the Bureau's testing of key decennial information 
technology systems and interfaces, and the use of American 
Reinvestment and Recovery Act (AARA) spending to enhance 
outreach to hard-to-count communities.
    Witnesses included: Hon. Robert Groves, Director, U.S. 
Census Bureau; Robert Goldenkoff, Director, Census Issues, U.S. 
Government Accountability Office; and Hon. Todd Zinser, 
Inspector General, U.S. Department of Commerce.
    12. October 29, 2009, ``More Security, Less Waste: What 
Makes Sense for our Federal Cyber Defense.''
    Despite the fact that Federal agencies spend approximately 
$7 billion every year to secure their networks and protect 
sensitive information, agencies continue to receive failing 
reports from Inspectors General, the Government Accountability 
Office, and Congress. More importantly, cyber criminals 
continue to plunder our information resources and threaten to 
destroy mission critical networks. To address these threats, 
agencies go through a process known as certification and 
accreditation to reduce the risk of cyber attack. However in a 
hearing in 2008 before the FFM Subcommittee, agencies testified 
that FISMA implementation has wasted millions of dollars on 
ineffective paperwork compliance instead of effective security. 
This hearing sought to examine ways Federal agencies and 
Congress can cost-effectively invest in security and measure 
the return on investment and reduced risk to mission critical 
networks.
    The following witnesses appeared: Hon. Tom Davis, former 
U.S. Representative from the State of Virginia; Vivek Kundra, 
Federal Chief Information Officer, Administrator for Electronic 
Government and Information Technology, Office of Management and 
Budget; Gregory C. Wilshusen, Director, Information Technology 
Security Issues, U.S. Government Accountability Office; and 
John Streufert, Chief Information Security Officer, and Deputy 
Chief Information Officer for Information Security, Bureau of 
Information Resource Management, U.S. Department of State.
    13. December 16, 2009, ``Tools to Combat Deficits and 
Waste: Expedited Rescission Authority.''
    This hearing examined the President's rescission authority 
and a variety of proposals that have been put forward to 
enhance the effectiveness of this authority in combating annual 
budget deficits and wasteful spending. At the time of this 
hearing, the U.S. national debt was approaching $12 trillion 
and the FY2010 budget deficit was expected to be more than $1 
trillion. According to CBO in FY2009, total Federal spending 
was equal to nearly 25 percent of GDP, which was the highest 
ratio in more than 50 years. If Congress and the Administration 
are to balance the budget and tackle the national debt, they 
must address the accelerated growth in Federal spending. In his 
FY2010 budget proposal, the President requested an enhancement 
of his executive rescission authority in order to more 
effectively eliminate wasteful and unnecessary spending. The 
hearing sought to (1) explore the President's current 
rescission authority, (2) determine whether an expedited 
rescission authority will be successful in helping to reduce 
unnecessary spending and close our budget deficit, and (3) 
examine several proposals in Congress to provide the President 
with this new authority.
    Witnesses at this hearing included: Hon. Russell D. 
Feingold, a U.S. Senator from the State of Wisconsin; Todd B. 
Tatelman, Legislative Attorney American Law Division 
Congressional Research Service, Robert L. Bixby, Executive 
Director, The Concord Coalition; Thomas A. Schatz, President, 
Citizens Against Government Waste; Raymond C. Scheppach, Ph.D., 
Executive Director, National Governors Association; and Susan 
A. Poling, Managing Associate General Counsel, U.S. Government 
Accountability Office.
    14. January 27, 2010, ``Cutting the Federal Government's 
Energy Bill: An Examination of the Sustainable Federal 
Government Executive Order.''
    During this hearing the Subcommittee examined the financial 
implications of the recently signed Executive Order 13514, 
directing stronger action by Federal agencies for energy 
efficiency in their facilities and operations, as well as other 
sustainability measures. The Federal Government is the world's 
largest institutional consumer of energy, with a total annual 
energy bill of about $17.7 billion (FY2006). This presents an 
important opportunity for the Federal Government to lead by 
example in pursuing both greater environmental and fiscal 
responsibility.
    The hearing focused on the recent presidential sustainable 
government Executive Order's potential for financial savings by 
Federal agencies. The Subcommittee reviewed the goals and 
timelines of the Executive Order.
    Witnesses present were as follows: Nancy Sutley, Chair, 
Council on Environmental Quality; Richard Kidd, Program 
Manager, Federal Energy Management Program, U.S. Department of 
Energy; Dorothy Robyn, Ph.D., Deputy Under Secretary of Defense 
for Installations and Environment, U.S. Department of Defense; 
and Sam Pulcrano, Vice President, Office of Sustainability, 
U.S. Postal Service.
    15. February 19, 2010, ``Blue, Gold, and Green: How 
Delaware State and Local Governments are Cutting Their Energy 
Costs.''
    This hearing was held in the Carvel State Office Building 
in Wilmington, Delaware. The hearing explored what State and 
local governments in Delaware are doing to cut energy costs in 
the face of mounting budget deficits. As part of the State of 
Delaware measures to increase government efficiency, Delaware 
Governor Jack Markell announced he would release an Executive 
Order calling for energy consumption reductions in all State 
facilities soon after the hearing. The hearing explored the 
similarities and differences between President Obama's 
Executive Order on governmental sustainability, including 
energy efficiency, issued in 2009, and Governor Markell's 
Executive Order.
    Witnesses included: Hon. Jack Markell, Governor, State of 
Delaware; Chris Coons, County Executive, New Castle County, 
Delaware; James Baker, Mayor, City of Wilmington, Delaware; and 
Roy Whitaker, Chief of Buildings and Grounds, Seaford School 
District, Delaware.
    16. February 23, 2010, ``Countdown to Census Day: Progress 
Report on the Census Bureau's Preparedness for the 
Enumeration.''
    This hearing provided an overview of the Census Bureau's 
testing efforts for the broad array of systems in place to 
support the collection, integration, and tabulation of census 
data of the upcoming Census Day. As government auditors have 
reported, although the Census Bureau has made commendable 
progress in mitigating risks to a successful enumeration and 
keeping the entire decennial on track, much work remains to be 
done to ensure a thorough count. This hearing will assess the 
Bureau's readiness for the headcount and its implementation of 
key census-taking activities in April 2010. Specifically, the 
hearing will study (1) the management and performance of key 
information technology systems; (2) the preliminary results of 
group quarters validation; (3) the planning and implementation 
of coverage improvement and measurement operations; non-
response follow-up planning, including an update on efforts to 
improve fingerprinting policies and procedures; and (4) 
estimates of the costs of the 2010 Census.
    Witnesses included: Robert M. Groves, Director, U.S. Census 
Bureau, U.S. Department of Commerce; Todd J. Zinser, Inspector 
General, U.S. Department of Commerce; and Robert Goldenkoff, 
Director, Strategic Issues, U.S. Government Accountability 
Office.
    17. March 3, 2010, ``Oversight Challenges in the Medicare 
Prescription Drug Program.''
    This hearing explored the challenges of waste, fraud, and 
abuse in the Medicare prescription drug program and the 
possible opportunities to improve oversight. Medicare has faced 
enormous challenges in combating waste, fraud, and abuse. The 
Health and Human Services (HHS) Centers for Medicare and 
Medicaid Services has experienced substantial challenges with 
implementing effective oversight of the $60 billion Medicaid 
Part D prescription drug program. The HHS Inspector General and 
others have already reported on specific failures, calling into 
question whether adequate oversight work was conducted during 
the first 4 years of the program. However, some outside 
analysts have identified steps to substantially improve 
oversight.
    Witnesses included: Hon. Amy Klobuchar, a U.S. Senator from 
the State of Minnesota; Kathleen M. King, Director, Health 
Care, U.S. Government Accountability Office; Howard B. Apple, 
President, SafeGuard Services, LLC, accompanied by Doug Quave, 
Program Director, Compliance and Enforcement MEDIC; Christian 
Jensen, M.D., MPH, President and Chief Executive Officer, 
Quality Health Strategies; Jonathan Blum, Director, Center for 
Drug and Health Plan Choice, U.S. Department of Health and 
Human Services; and Robert Vito, Regional Inspector General for 
Evaluations and Inspections, Office of Inspector General, U.S. 
Department of Health and Human Services.
    18. March 23, 2010 and April 13, 2010, ``Removing the 
Shroud of Secrecy: Making Government More Transparent and 
Accountable--Part I and II.''
    President Obama campaigned on the promise that he was going 
to leverage technology to fundamentally change the way 
government interacts with every American, making agencies more 
efficient, transparent, and responsive. On his first day in 
office, President Obama signed an ``open government'' directive 
which instructs agencies to take specific actions to open their 
operations to the public. The idea behind the directive is that 
more open government allows members of the public to contribute 
ideas and expertise to government initiatives. Collaboration 
improves the effectiveness of government by encouraging 
partnerships and cooperation within the Federal Government, 
across levels of government, and between the government and 
private institution. Further, providing more government 
information by default, instead of by exception, will help 
reduce the costs and backlog of FOIA requests and spur 
innovation in the private sector that can leverage the 
information. This hearing sought to examine President Obama's 
Open Government initiative and explore what areas will lead to 
improved management, accountability, and cost-savings. The 
hearing helped the Subcommittee highlight areas of improvement 
and steps forward on implementing the initiative.
    Witnesses who appeared on March 23, 2010: Vivek Kundra, 
Federal Chief Information Officer and Administrator for 
electronic Government and Information Technology, Office of 
Management and Budget; Hon. Aneesh chopra, chief Technology 
Officer and Associate Director for Technology, Office of 
Science and Technology Policy, Executive Office of the 
President; Hon. David Ferriero, Archivist of the United States 
of America, National Archives and Records Administration; and 
Ellen Miller, Co-Founder and Executive Director, Sunlight 
Foundation.
    Witnesses who appeared on April 13, 2010: John Wonderlich, 
Policy Director, Sunlight Foundation; Stephen W.T. O'Keeffe, 
Founder, MeriTalk Online; and Thomas Blanton, Director, 
National Security Archive, George Washington University.
    19. April 22, 2010, ``The Future of the U.S. Postal 
Service.''
    This hearing examined the Postal Service's financial 
condition and a series of proposals the Postal Service has made 
to address the problems it faces. The Postal Service expected a 
record loss in FY10. The economic slowdown, the continued 
electronic diversion of the mail, and an unrealistically 
aggressive retiree health pre-payment schedule have combined to 
put the Postal Service in crisis. In addition, an analysis of 
the future of the mail conducted on behalf of the Postal 
Service has shown that mail volume is not likely to recover 
along with the economy. The Postal Service is expecting 
continuing volume declines and, by 2020, a cumulative deficit 
of more than $230 billion.
    Witnesses included: Phillip Herr, Director of Physical 
Infrastructure Issues, U.S. Government Accountability Office; 
Hon. John E. Potter, Postmaster General and Chief Executive 
Officer, U.S. Postal Service; Hon. David C. Williams, Inspector 
General, U.S. Postal Service; and Hon. Ruth Y. Goldway, 
Commissioner, Postal Regulatory Commission.
    20. June 16, 2010 and July 22, 2010, ``The Gulf of Mexico 
Oil Spill: Ensuring a Financially Responsible Recovery, Part I 
and II.''
    The June 16 hearing explored how much the BP/Deepwater 
Horizon oil spill has cost and may continue to cost American 
taxpayers--and how we intend to get the money back from those 
responsible for the spill. The points below outline the 
discussions held during our hearing.
   Direct Federal Costs--The government continues to 
incur costs related to the direct Federal response efforts 
ongoing on the Gulf and they are billing BP for those costs on 
a regular basis. Witnesses will discuss the process of tracking 
those costs and how the government and BP plan to move forward 
to ensure every dime is reimbursed.
   Independent Escrow Fund--The President is expected 
to call for a independently-monitored, multi-billion dollar 
escrow fund to handle claims by people and businesses affected 
by the oil spill. The hearing will explore how such a fund 
would work and interact with the already existing claims 
process and statutory authorities.
   Claims Process--The ongoing claims process for those 
harmed by the oil spill remains one of the most controversial 
aspects of the current incident. This hearing provided an 
update on current efforts to improve transparency into the 
process and how we are ensuring that citizens and businesses of 
the Gulf are made whole.
   Responsible Parties--While BP is the main 
``responsible party.'' for this oil spill, there are three 
other companies also recognized as responsible parties by the 
government. This hearing explored what role they play in 
ensuring a responsible financial recovery from this incident.
   Ongoing risks and vulnerabilities to the Oil Spill 
Liability Trust Fund--The GAO has provided testimony and 
analysis detailing significant risks that remain for the 
ongoing viability of the Oil Spill Liability Trust Fund, and 
considerations for Congress to address these vulnerabilities.
    The July 22 hearing served as a follow-up to the one held 
June 16, 2010, exploring the Federal financial impacts of the 
Gulf of Mexico Oil Spill. Since that initial hearing, the 
President and BP officials agreed to the establishment of a 
new, independent escrow fund to handle damage claims from 
residents adversely affected by the oil spill. This fund is 
being administered by Kenneth Feinberg. The hearing served to 
examine how this new claims process is transitioning from the 
one headed up by BP, and how it is ensuring the Oil Spill 
Liability Trust Fund remains viable.
    Witnesses who appeared on June 16, 2010 included: Hon. 
Frank R. Lautenberg, a U.S. Senator from the State of New 
Jersey; Darryl Willis, Vice President, Resources, B.P. America, 
Inc.; Steven Newman, Chief Executive Officer, Transocean Ltd.; 
Susan A. Fleming, Director, Physical Infrastructure Issues, 
U.S. Government Accountability Office; and Craig Bennett, 
Director, National Pollution Funds Center, U.S. Coast Guard.
    Witnesses who appeared on July 22, 2010 included: Kenneth 
R. Feinberg, Administrator, Gulf Coast Claims Facility; James 
T. Hackett, President and CEO, Anadarko Petroleum Corporation; 
and Naoki Ishii, President, MOEX Offshore 2007 LLC, accompanied 
by Fuiko Sato, Interpreter.
    21. June 23, 2010, ``Having Their Say: Customer and 
Employee Views on the Future of the U.S. Postal Service.''
    The economic slowdown and the continued electronic 
diversion of mail coupled with an aggressive retiree health 
pre-payment schedule have combined to put the Postal Service in 
financial crisis. In addition, an analysis of the future of the 
mail conducted on behalf of the Postal Service shows that mail 
volume may not recover along with the economy. If the study's 
predictions hold true and absolutely nothing is done, mail 
volume will continue to decline, potentially resulting in a 
cumulative deficit of more than $230 billion by 2020. Moreover, 
in its April 12 report entitled ``U.S. Postal Service: 
Strategies and Options to Facilitate Progress Toward Financial 
Viability,'' the Government Accountability Office found that 
the Postal Service's current business model is not viable. In 
light of these findings, the hearing focused on the 
difficulties facing the Postal Service and the plans postal 
management and GAO have put forth to address them. The hearing 
was held jointly by the Senate Committee on Homeland Security 
and Governmental Affairs Federal Financial Management, 
Government Information, Federal Services, and International 
Security Subcommittee and the House Committee on Oversight and 
Government Reform Subcommittee on Federal Workforce, Postal 
Service, and the District of Columbia.
    Witnesses included: H. James Gooden, Chairman, Board of 
Directors, American Lung Association; Donald J. Hall Jr., 
President and CEO, Hallmark Cards, Inc.; Allen Abbott, 
Executive Vice President and Chief Operating Officer, Paul 
Fredrick MenStyle, Inc. and Chairman, American Catalog Mailers 
Association; Keith McFalls, Vice President of Operations, 
PrimeMail and Triessant, Prime Theraputics; Paul Misener, Vice 
President of Global Public Policy, Amazon.com; Andrew Rendich, 
Chief Service and DVD Operations Officer, Netflix, Inc.; Don 
Cantriel, President, National Rural Letter Carriers 
Association; Frederic V. Rolando, President, National 
Association of Letter Carriers, AFL-CIO; William Burrus, 
President, American Postal Workers Union, AFL-Cio; Richard 
Collins, Assistant to the President, National Postal Mail 
Handlers Union; Louis Atkins, Executive Vice President, 
National Association of Postal Supervisors; Charles Mapa, 
President, National League of Postmasters; and Robert J. 
Rapoza, President, National Association of Postmasters of the 
United States.
    22. July 13, 2010, ``The Cost Effectiveness of Procuring 
Weapon Systems in Excess of Requirements: Can We Afford More C-
17s?''
    In an effort to shed light on the need to reduce Federal 
expenditures on unnecessary weapon systems, this hearing 
examined the implications of procuring more weapon systems than 
recommended by studies and assessments from the Department of 
Defense. Specifically, this hearing examined the budgetary and 
national security impact of procuring more C-17s strategic 
airlifter than are required by the established airlift 
requirements in the ``DOD Mobility Capabilities and 
Requirements Study--2016.'' During the course of this hearing 
we hoped the witness's testimony would factor in the cost 
effectiveness of procuring additional C-17s and whether 
maintaining a buffer between capabilities and requirements is 
beneficial to national security and affordable for taxpayers.
    Witnesses included: Hon. Michael McCord, Principal Deputy 
Under Secretary of Defense, Comptroller, U.S. Department of 
Defense; Alan Estevez, Deputy Assistant Secretary of Defense 
for Logistical and Materiel Readiness Acquisition, Technology 
and Logistics, U.S. Department of Defense; Major General Susan 
Y. Desjardins, Director, Strategic Plans, Requirements and 
Programs, Headquarters Air Mobility Command, U.S. Air Force; 
Jeremiah Gertler, Specialist in Military Aviation, 
Congressional Research Service; and William L. Greer, Ph.D., 
Assistant Director, System Evaluation Division, Institute for 
Defense Analyses.
    23. July 15, 2010, ``Preventing and Recovering Medicare 
Payment Errors.''
    This hearing explored the history of recovery audit 
contracting within the Medicare program, as well as 
opportunities for expanding the use of such contracting by the 
Centers for Medicare and Medicaid Services. The Subcommittee 
examined lessons learned from the recovery auditing experiences 
of Medicare that could prove useful to a range of agencies 
throughout the Federal Government considering similar 
initiatives.
    Witnesses included: Kathleen M. King, Director, Health 
Care, U.S. Government Accountability Office; Deborah Taylor, 
Chief Financial Office and Director, Office of Financial 
Management, Centers for Medicare and Medicaid Services, U.S. 
Department of Health and Human Services; Robert Vito, Acting 
Assistant Inspector General, Centers for Medicare and Medicaid 
Audits, Office of Inspector General, U.S. Department of Health 
and Human Services; Libby Alexander, Chief Executive Officer, 
Connolly Healthcare, Connolly, Inc.; Lisa Im, Chief Executive 
Officer, Performant Financial Corporation; Andrea Benko, 
President and Chief Executive Officer, HealthDataInsights, 
Inc.; Robert Rolf, Vice President for Healthcare BPO, CGI 
Federal, Inc.; and Romil Bahl, President and Chief executive 
Officer, PRGX Global, Inc.
    24. August 3, 2010, ``Transforming Government Through 
Innovative Tools and Technology.''
    This hearing explored unique and innovative techniques to 
transform the way government operates. Specifically, the 
hearing focused on how we use creative technologies to solve 
problems and cut fraud, waste, and abuse from government 
programs. The American Recovery and Reinvestment Act created a 
new paradigm for how traditional government bureaucracy 
approaches the allocation of taxpayer funds. The Recovery Board 
fosters a collaborative relationship amongst the Federal 
Inspector General community to ensure taxpayer funds are being 
used efficiently and effectively. In addition, the Recovery 
Board employs cutting edge data analysis and Web technologies 
to root out fraud, waste, and abuse and inform the American 
people. This hearing explored how the example set by the 
Recovery Board can be used--and is being used--throughout 
government, with a specific focus on Centers for Medicare and 
Medicaid Services.
    Witnesses who appeared are as follows: Earl Devaney, 
Chairman of the Recovery Accountability and Transparency Board; 
Daniel I. Werfel, Controller, Office of Federal Financial 
Management, Office of Management and Budget; Alexander Karp, 
Ph.D., Co-Founder and Chief Executive Officer, Palantir 
Technologies; Robert R. McEwen, Chairman and Chief Executive 
Officer, U.S. Goldcorp. Inc.; and Riley Crane, Ph.D., Media 
Laboratory Human Dynamics Group, Massachusetts Institute of 
Technology.
    25. September 29, 2010, ``Improving Financial 
Accountability at the Department of Defense.''
    This hearing examined the plans laid out by the Department 
of Defense for improving its financial accountability. Congress 
established a requirement for the Department of Defense to 
become ``audit ready'' by 2017. However, past hearings and 
studies by the Government Accountability Office bring into 
question whether the DOD, and the military services and 
agencies, will meet this deadline. Further, the GAO placed 
DOD's financial management on its list of ``high risk'' areas 
of concern. Key questions for the hearing included whether the 
DOD's financial improvement plan is adequate, and whether DOD 
can and will meet the goals of this plan.
    Witnesses who appeared at the hearing: Robert F. Hale, 
Under Secretary of Defense and Chief Financial Officer, U.S. 
Department of Defense; Elizabeth A. McGrath, Deputy Chief 
Management Officer, U.S. Department of Defense; Eric Fanning, 
Deputy Under Secretary of the Navy and Deputy Chief Management 
Officer, U.S. Navy; David Tillotson III, Deputy Chief 
Management Officer, U.S. Air Force; Lieutenant General Robert 
E. Durbin, Acting Deputy Chief Management Officer, U.S. Army; 
and Asif A. Khan, Director, Financial Management and Assurance, 
U.S. Government Accountability Office.
    26. December 2, 2010, ``Finding Solutions to the Challenges 
Facing the U.S. Postal Service.''
    This hearing examined the latest challenges facing the 
financial state of the Postal Service. Testimony from postal 
management and other stakeholders discussed the provisions in 
S. 3831.
    Witnesses included: Patrick R. Donahoe, Deputy Postmaster 
General and Chief Operating Officer, U.S. Postal Service; 
Jonathan Foley, Director of Planning and Policy Analysis, 
Office of Personnel Management; Phillip Herr, Director, 
Physical Infrastructure Issues, U.S. Government Accountability 
Office; and Robert J. Rapoza, National President, National 
Association of Postmasters of the United States; Hon. Ruth Y. 
Goldway, Chairman, Postal Regulatory Commission; Frederic 
Rolando, President, National Association of Letter Carriers, 
AFL-CIO; and Jerry Cerasale, Senior Vice President, Government 
Affairs, Direct Marketing Association, Inc., on behalfof 
Affordable Mail Alliance.

                            II. LEGISLATION

    S. 1083--Caribbean Count Act--Requires the Secretary of 
Commerce to include in any questionnaire used in a decennial 
census to determine State populations an option for respondents 
to indicate Caribbean extraction or descent.
    S. 1084--A bill to require that, in the questionnaires used 
in the taking of any decennial census of population, a checkbox 
or other similar option be included so that respondents may 
indicate Dominican extraction or descent.
    S. 1127--Disability Data Modernization Act. Directs the 
Secretary of Commerce to include the Katz basic activities of 
daily living scale and the Lawton-Brody instrumental activities 
of daily living scale in any questionnaire used in the 
decennial census and the American Community Survey.
    S. 1211--A bill to designate the facility of the United 
States Postal Service located at 60 School Street, Orchard 
Park, New York, as the ``Jack F. Kemp Post Office Building.''
    S. 1314--A bill to designate the facility of the United 
States Postal Service located at 630 Northeast Killingsworth 
Avenue in Portland, Oregon, as the ``Dr. Martin Luther King, 
Jr. Post Office.''
    S. 1567--Multinational Species Conservation Funds 
Semipostal Stamp Act of 2009
    S. 1688--Fairness in Representation Act--Directs the 
Secretary of Commerce, in conducting the 2010 decennial census 
and every decennial census thereafter, to include in any 
questionnaire used for the purpose of determining the total 
population by states, a checkbox or similar option for 
respondents to indicate citizenship status or lawful presence 
in the United States.
    Requires the Secretary to adjust census figures as 
necessary so that those who are not U.S. citizens or are not 
lawfully present in the United States are not counted in 
tabulating population for purposes of apportioning 
Representatives in Congress among the states.
    S. 2945--A bill to designate the facility of the United 
States Postal Service located at 1210 West Main Street in 
Riverhead, New York, as the ``Private First Class Garfield M. 
Langhorn Post Office Building.''
    S. 3012--A bill to designate the facility of the United 
States Postal Service located at 2-116th Street in North Troy, 
New York, as the ``Martin G. `Marty' Mahar Post Office.''
    S. 3013--A bill to designate the facility of the United 
States Postal Service located at 216 Westwood Avenue in 
Westwood, New Jersey, as the ``Sergeant Christopher R. Hrbek 
Post Office Building.''
    S. 3145--A bill to amend section 1004 of title 39, United 
States Code, to include that it is a policy of the Postal 
Service to ensure reasonable and sustainable workloads and 
schedules for supervisory and management employees and to 
clarify provisions relating to consultation and changes or 
terminations in certain proposals.
    S. 3167--Census Oversight Efficiency and Management Reform 
Act of 2010--Requires the individual appointed as Director of 
the Census to have a demonstrated ability in managing large 
organizations and experience in the collection, analysis, and 
use of statistical data.
    Provides that: (1) the Director shall report directly to 
the Secretary of Commerce; and (2) no U.S. officer or agency 
shall have authority to require the Director to submit 
legislative recommendations, testimony, or comments for review 
prior to the submission to Congress if such submission includes 
a statement indicating that the views expressed are those of 
the Bureau of the Census and do not necessarily represent the 
views of the President.
    Requires the term of office of the Director to be 5 years 
and to begin on January 1, 2012, and every fifth year 
thereafter. Prohibits an individual from serving more than two 
full terms as Director. Sets forth provisions governing: (1) 
vacancies in and removal from office; and (2) the authorities 
and duties of the Director.
    Requires the Director to establish a technology advisory 
committee, whose members shall be selected from the public, 
private, and academic sectors, to make recommendations to the 
Director and publish reports on the use of commercially 
available technologies and services to improve efficiencies and 
manage costs in the implementation of the census and census-
related activities, including pilot projects.
    Establishes the position of Deputy Director of the Census.
    Requires the Director to: (1) provide a plan to Congress on 
how the Bureau will test, develop, and implement an Internet 
response option for the 2020 Census and the American Community 
Survey; and (2) submit to the appropriate congressional 
committees, by the date of submission of the President's budget 
request for a fiscal year, a comprehensive status report on the 
next decennial census.
    Requires each report to include: (1) a description of the 
Bureau's performance goals for each significant decennial 
operation; (2) an assessment of the risks associated with each 
such operation; (3) detailed milestone estimates for each such 
operation; (4) updated cost estimates for the life cycle of the 
decennial census; and (5) a detailed description of all 
contracts over $50 million entered into for each such 
operation.
    S. 3465--A bill to designate the facility of the United 
States Postal Service located at 15 South Main Street in 
Sharon, Massachusetts, as the ``Michael C. Rothberg Post 
Office.''
    S. 3567--A bill to designate the facility of the United 
States Postal Service located at 100 Broadway in Lynbrook, New 
York, as the ``Navy Corpsman Jeffrey L. Wiener Post Office 
Building.''
    S. 3592--A bill to designate the facility of the United 
States Postal Service located at 100 Commerce Drive in Tyrone, 
Georgia, as the ``First Lieutenant Robert Wilson Collins Post 
Office Building.''
    H.R. 22--United States Postal Service Financial Relief Act 
of 2009--Reduces the amount the United States Postal Service 
must pay into the Postal Service Retiree Health Benefits Fund 
by September 30, 2009, from $5.4 billion to $1.4 billion.
    H.R. 663--To designate the facility of the United States 
Postal Service located at 12877 Broad Street in Sparta, 
Georgia, as the ``Yvonne Ingram-Ephraim Post Office Building.''
    H.R. 774--To designate the facility of the United States 
Postal Service located at 46-02 21st Street in Long Island 
City, New York, as the ``Geraldine Ferraro Post Office 
Building.''
    H.R. 918--To designate the facility of the United States 
Postal Service located at 300 East 3rd Street in Jamestown, New 
York, as the ``Stan Lundine Post Office Building.''
    H.R. 955--To designate the facility of the United States 
Postal Service located at 10355 Northeast Valley Road in 
Rollingbay, Washington, as the ``John `Bud' Hawk Post Office.''
    H.R. 987--To designate the facility of the United States 
Postal Service located at 601 8th Street in Freedom, 
Pennsylvania, as the ``John Scott Challis, Jr. Post Office.''
    H.R. 1216--To designate the facility of the United States 
Postal Service located at 1100 Town and Country Commons in 
Chesterfield, Missouri, as the ``Lance Corporal Matthew P. 
Pathenos Post Office Building.''
    H.R. 1217--To designate the facility of the United States 
Postal Service located at 15455 Manchester Road in Ballwin, 
Missouri, as the ``Specialist Peter J. Navarro Post Office 
Building.''
    H.R. 1218--To designate the facility of the United States 
Postal Service located at 112 South 5th Street in Saint 
Charles, Missouri, as the ``Lance Corporal Drew W. Weaver Post 
Office Building.''
    H.R. 1271--To designate the facility of the United States 
Postal Service located at 2351 West Atlantic Boulevard in 
Pompano Beach, Florida, as the ``Elijah Pat Larkins Post Office 
Building.''
    H.R. 1284--To designate the facility of the United States 
Postal Service located at 103 West Main Street in McLain, 
Mississippi, as the ``Major Ed W. Freeman Post Office.''
    H.R. 1397--To designate the facility of the United States 
Postal Service located at 41 Purdy Avenue in Rye, New York, as 
the ``Caroline O'Day Post Office Building.''
    H.R. 1454--Multinational Species Conservation Funds 
Semipostal Stamp Act of 2010--Requires the United States Postal 
Service to issue and sell, at a premium, a Multinational 
Species Conservation Funds Semipostal Stamp. Requires the use 
of such a stamp to be voluntary on the part of postal patrons.
    Requires proceeds from the sale of such stamp to be: (1) 
transferred to the United States Fish and Wildlife Service 
(USFWS) to help fund the operations supported by the 
Multinational Species Conservation Funds; and (2) divided 
equally among the African Elephant Conservation Fund, the Asian 
Elephant Conservation Fund, the Great Ape Conservation Fund, 
the Marine Turtle Conservation Fund, the Rhinoceros and Tiger 
Conservation Fund, and other international wildlife 
conservation funds authorized by Congress after the date of 
this Act's enactment. Prohibits such proceeds from being taken 
into account in any decision relating to the level of 
appropriations or other Federal funding to be furnished to the 
USFWS or such Funds.
    Requires the stamp to be made available to the public for 
at least 2 years.
    Prohibits such proceeds from being used to fund or support 
the Wildlife Without Borders Program or to supplement funds 
made available for the Neotropical Migratory Bird Conservation 
Fund.
    H.R. 1516--To designate the facility of the United States 
Postal Service located at 37926 Church Street in Dade City, 
Florida, as the ``Sergeant Marcus Mathes Post Office.''
    H.R. 1713--To name the South Central Agricultural Research 
Laboratory of the Department of Agriculture in Lane, Oklahoma, 
and the facility of the United States Postal Service located at 
310 North Perry Street in Bennington, Oklahoma, in honor of 
former Congressman Wesley ``Wes'' Watkins.
    H.R. 1817--To designate the facility of the United States 
Postal Service located at 116 North West Street in Somerville, 
Tennessee, as the ``John S. Wilder Post Office Building.''
    H.R. 2090--To designate the facility of the United States 
Postal Service located at 431 State Street in Ogdensburg, New 
York, as the ``Frederic Remington Post Office Building.''
    H.R. 2162--To designate the facility of the United States 
Postal Service located at 123 11th Avenue South in Nampa, 
Idaho, as the ``Herbert A Littleton Postal Station.''
    H.R. 2173--To designate the facility of the United States 
Postal Service located at 1009 Crystal Road in Island Falls, 
Maine, as the ``Carl B. Smith Post Office.''
    H.R. 2174--To designate the facility of the United States 
Postal Service located at 18 Main Street in Howland, Maine, as 
the ``Clyde Hichborn Post Office.''
    H.R. 2215--To designate the facility of the United States 
Postal Service located at 140 Merriman Road in Garden City, 
Michigan, as the ``John J. Shivnen Post Office Building.''
    H.R. 2325--To designate the facility of the United States 
Postal Service located at 1300 Matamoros Street in Laredo, 
Texas, as the ``Laredo Veterans Post Office.''
    H.R. 2422--To designate the facility of the United States 
Postal Service located at 2300 Scenic Drive in Georgetown, 
Texas, as the ``Kile G. West Post Office Building.''
    H.R. 2470--To designate the facility of the United States 
Postal Service located at 19190 Cochran Boulevard FRNT in Port 
Charlotte, Florida, as the ``Lieutenant Commander Roy H. Boehm 
Post Office Building.''
    H.R. 2877--To designate the facility of the United States 
Postal Service located at 76 Brookside Avenue in Chester, New 
York, as the ``1st Lieutenant Louis Allen Post Office.''
    H.R. 2971--To designate the facility of the United States 
Postal Service located at 630 Northeast Killingsworth Avenue in 
Portland, Oregon, as the ``Dr. Martin Luther King, Jr. Post 
Office.''
    H.R. 2972--To designate the facility of the United States 
Postal Service located at 115 West Edward Street in Erath, 
Louisiana, as the ``Conrad DeRouen, Jr. Post Office.''
    H.R. 3072--To designate the facility of the United States 
Postal Service located at 9810 Halls Ferry Road in St. Louis, 
Missouri, as the ``Coach Jodie Bailey Post Office Building.''
    H.R. 3119--To designate the facility of the United States 
Postal Service located at 867 Stockton Street in San Francisco, 
California, as the ``Lim Poon Lee Post Office.''
    H.R. 3137--To amend title 39, United States Code, to 
provide clarification relating to the authority of the United 
States Postal Service to accept donations as an additional 
source of funding for commemorative plaques.
    H.R. 3250--To designate the facility of the United States 
Postal Service located at 1210 West Main Street in Riverhead, 
New York, as the ``Private First Class Garfield M. Langhorn 
Post Office Building.''
    H.R. 3319--To designate the facility of the United States 
Postal Service located at 440 South Gulling Street in Portola, 
California, as the ``Army Specialist Jeremiah Paul McCleery 
Post Office Building.''
    H.R. 3386--To designate the facility of the United States 
Postal Service located at 1165 2nd Avenue in Des Moines, Iowa, 
as the ``Iraq and Afghanistan Veterans Memorial Post Office.''
    H.R. 3539--To designate the facility of the United States 
Postal Service located at 427 Harrison Avenue in Harrison, New 
Jersey, as the ``Patricia D. McGinty-Juhl Post Office 
Building.''
    H.R. 3547--To designate the facility of the United States 
Postal Service located at 936 South 250 East in Provo, Utah, as 
the ``Rex E. Lee Post Office Building.''
    H.R. 3767--To designate the facility of the United States 
Postal Service located at 170 North Main Street in Smithfield, 
Utah, as the ``W. Hazen Hillyard Post Office Building.''
    H.R. 3788--To designate the facility of the United States 
Postal Service located at 3900 Darrow Road in Stow, Ohio, as 
the ``Corporal Joseph A. Tomci Post Office Building.''
    H.R. 3892--To designate the facility of the United States 
Postal Service located at 101 West Highway 64 Bypass in Roper, 
North Carolina, as the ``E.V. Wilkins Post Office.''
    H.R. 4095--To designate the facility of the United States 
Postal Service located at 9727 Antioch Road in Overland Park, 
Kansas, as the ``Congresswoman Jan Meyers Post Office 
Building.''
    H.R. 4139--To designate the facility of the United States 
Postal Service located at 7464 Highway 503 in Hickory, 
Mississippi, as the ``Sergeant Matthew L. Ingram Post Office.''
    H.R. 4214--To designate the facility of the United States 
Postal Service located at 45300 Portola Avenue in Palm Desert, 
California, as the ``Roy Wilson Post Office.''
    H.R. 4238--To designate the facility of the United States 
Postal Service located at 930 39th Avenue in Greeley, Colorado, 
as the ``W.D. Farr Post Office Building.''
    H.R. 4495--To designate the facility of the United States 
Postal Service located at 100 North Taylor Lane in Patagonia, 
Arizona, as the ``Jim Kolbe Post Office.''
    H.R. 4543--To designate the facility of the United States 
Postal Service located at 4285 Payne Avenue in San Jose, 
California, as the ``Anthony J. Cortese Post Office Building.''
    H.R. 4547--To designate the facility of the United States 
Postal Service located at 119 Station Road in Cheyney, 
Pennsylvania, as the ``Captain Luther H. Smith, U.S. Army Air 
Forces Post Office.''
    H.R. 4624--To designate the facility of the United States 
Postal Service located at 125 Kerr Avenue in Rome City, 
Indiana, as the ``SPC Nicholas Scott Hartge Post Office.''
    H.R. 4628--To designate the facility of the United States 
Postal Service located at 216 Westwood Avenue in Westwood, New 
Jersey, as the ``Sergeant Christopher R. Hrbek Post Office 
Building.''
    H.R. 4861--To designate the facility of the United States 
Postal Service located at 1343 West Irving Park Road in 
Chicago, Illinois, as the ``Steve Goodman Post Office 
Building.''
    H.R. 5051--To designate the facility of the United States 
Postal Service located at 23 Genesee Street in Hornell, New 
York, as the ``Zachary Smith Post Office Building.''
    H.R. 5099--To designate the facility of the United States 
Postal Service located at 15 South Main Street in Sharon, 
Massachusetts, as the ``Michael C. Rothberg Post Office.''
    H.R. 5133--To designate the facility of the United States 
Postal Service located at 331 1st Street in Carlstadt, New 
Jersey, as the ``Staff Sergeant Frank T. Carvill and Lance 
Corporal Michael A. Schwarz Post Office Building.''
    H.R. 5278--To designate the facility of the United States 
Postal Service located at 405 West Second Street in Dixon, 
Illinois, as the ``President Ronald W. Reagan Post Office 
Building.''
    H.R. 5341--To designate the facility of the United States 
Postal Service located at 100 Orndorf Drive in Brighton, 
Michigan, as the ``Joyce Rogers Post Office Building.''
    H.R. 5390--To designate the facility of the United States 
Postal Service located at 13301 Smith Road in Cleveland, Ohio, 
as the ``David John Donafee Post Office Building.''
    H.R. 5395--To designate the facility of the United States 
Postal Service located at 151 North Maitland Avenue in 
Maitland, Florida, as the ``Paula Hawkins Post Office 
Building.''
    H.R. 5450--To designate the facility of the United States 
Postal Service located at 3894 Crenshaw Boulevard in Los 
Angeles, California, as the ``Tom Bradley Post Office 
Building.''
    H.R. 5873--To designate the facility of the United States 
Postal Service located at 218 North Milwaukee Street in 
Waterford, Wisconsin, as the ``Captain Rhett W. Schiller Post 
Office.''
    S. Con. Res. 32--A bill expressing the sense of Congress on 
health care reform legislation.
    S. Con. Res. 33--A concurrent resolution expressing the 
sense of Congress that a commemorative postage stamp should be 
issued to honor the crew of the USS Mason DE-529 who fought and 
served during World War II.
    S. Con. Res. 34--A concurrent resolution expressing the 
sense of Congress that a commemorative postage stamp should be 
issued to honor the crew of the USS Mason DE-529 who fought and 
served during World War II.
    S. Con. Res. 44--A concurrent resolution expressing the 
sense of Congress that a postage stamp should be issued to 
commemorate the War of 1812 and that the Citizens' Stamp 
Advisory Committee should recommend to the Postmaster General 
that such a stamp be issued.
    S. Con. Res. 49--A concurrent resolution expressing the 
sense of Congress that a commemorative postage stamp should be 
issued to honor the life of Elijah Parish Lovejoy.
    S. Con. Res. 68--A concurrent resolution expressing the 
sense of Congress that the United States Postal Service should 
issue a commemorative postage stamp honoring civil rights 
workers Andrew Goodman, James Chaney, and Michael Schwerner, 
and the ``Freedom Summer'' of 1964, and that the Citizens' 
Stamp Advisory Committee should recommend to the Postmaster 
General that such a stamp be issued.

                            III. GAO REPORTS

    GAO-09-228, Small Business Administration: Additional 
Guidance on Documenting Credit Elsewhere Decisions Could 
Improve 7(a) Program Oversight, (02/12/2009)
    GAO-09-262, Information Technology: Census Bureau Testing 
of 2010 Decennial Systems Can Be Strengthened, (03/05/2009)
    GAO-09-373, Financial Management: Achieving Financial 
Statement Auditability in the Department of Defense, (05/06/
2009)
    GAO-09-328, Financial Management Systems: OMB's Financial 
Management Line of Business Initiative Continues but Future 
Success Remains Uncertain, (05/07/2009)
    GAO-09-630, Federal Contracting: Guidance on Award Fees Has 
Led to Better Practices but Is Not Consistently Applied, (05/
29/2009)
    GAO-09-671, Hurricanes Gustav and Ike Disaster Assistance: 
FEMA Strengthened Its Fraud Prevention Controls, but Customer 
Service Needs Improvement, (06/19/2009)
    GAO-09-566, Information Technology: Federal Agencies Need 
to Strengthen Investment Board Oversight of Poorly Planned and 
Performing Projects, (06/30/2009)
    GAO-09-696, U.S. Postal Service: Mail Delivery Efficiency 
Has Improved, but Additional Actions Needed to Achieve Further 
Gains, (07/15/2009)
    GAO-09-442, Improper Payments: Significant Improvements 
Needed in DOD's Efforts to Address Improper Payment and 
Recovery Auditing Requirements, (07/29/2009)
    GAO-09-676, Results-Oriented Management: Strengthening Key 
Practices at FEMA and Interior Could Promote Greater Use of 
Performance Information, (08/17/2009)
    GAO-09-957, Medicaid: Fraud and Abuse Related to Controlled 
Substances Identified in Selected States, (09/09/2009)
    GAO-09-617, Information Security: Concerted Effort Needed 
to Improve Federal Performance Measures, (09/14/2009)
    GAO-10-2, Information Technology: Agencies Need to Improve 
the Implementation and Use of Earned Value Techniques to Help 
Manage Major System Acquisitions, (10/08/2009)
    GAO-10-59, 2010 Census: Census Bureau Has Made Progress on 
Schedule and Operational Control Tools, but Needs to Prioritize 
Remaining System Requirements, (11/13/2009)
    GAO-10-76, Financial Management Systems: DHS Faces 
Challenges to Successfully Consolidating Its Existing Disparate 
Systems,( 12/04/2009)
    GAO-10-263, Formula Grants: Funding for the Largest Federal 
Assistance Programs Is Based on Census-Related Data and Other 
Factors, (12/15/2009)
    GAO-10-237, Information Security: Concerted Effort Needed 
to Consolidate and Secure Internet Connections at Federal 
Agencies, (03/12/2010)
    GAO-10-202, Information Security: Agencies Need to 
Implement Federal Desktop Core Configuration Requirements, (03/
12/2010)
    GAO-10-455, U.S. Postal Service: Strategies and Options to 
Facilitate Progress toward Financial Viability, (04/12/2010)
    GAO-10-394, Streamlining Government: Opportunities Exist to 
Strengthen OMB's Approach to Improving Efficiency, (05/07/2010)
    GAO-10-513, Information Security: Federal Guidance Needed 
to Address Control Issues with Implementing Cloud Computing, 
(05/27/2010)
    GAO-10-444, Social Security Administration: Cases of 
Federal Employees and Transportation Drivers and Owners Who 
Fraudulently and/or Improperly Received SSA Disability 
Payments, (06/25/2010)
    GAO-10-701, Information Technology: OMB's Dashboard Has 
Increased Transparency and Oversight, but Improvements Needed, 
(07/16/2010)
    GAO-10-808, Financial Management Systems: Experience with 
Prior Migration and Modernization Efforts Provides Lessons 
Learned for New Approach, (09/08/2010)
    GAO-10-693, Contractor Integrity: Stronger Safeguards 
Needed for Contractor Access to Sensitive Information, (09/10/
2010)
    GAO-11-53, DOD Business Transformation: Improved Management 
Oversight of Business System Modernization Efforts Needed, (10/
07/2010)
    GAO-11-45, 2010 Census: Key Efforts to Include Hard-to-
Count Populations Went Generally as Planned; Improvements Could 
Make the Efforts More Effective for Next Census, (12/14/2010)
    GAO-11-154, 2010 Census: Follow-up Should Reduce Coverage 
Errors, but Effects on Demographic Groups Need to Be 
Determined, (12/14/2010)
    GAO-11-193, 2010 Census: Data Collection Operations Were 
Generally Completed as Planned, but Long-standing Challenges 
Suggest Need for Fundamental Reforms, (12/14/2010)
                SUBCOMMITTEE ON OVERSIGHT OF GOVERNMENT


                   MANAGEMENT, THE FEDERAL WORKFORCE,


                      AND THE DISTRICT OF COLUMBIA


                       Chairman: Daniel K. Akaka


              Ranking Minority Member: George V. Voinovich


                              I. HEARINGS

    The Senate Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of Columbia 
held the following hearings during the 111th Congress:

Protecting Animal and Public Health: Homeland Security and the Federal 
        Veterinarian Workforce, February 26, 2009

    This hearing focused on a number of issues identified in a 
U.S. Government Accountability Office review of the Federal 
veterinarian workforce. At the request of the Subcommittee, GAO 
examined the Federal Government's efforts in assessing the 
sufficiency of this workforce for routine program activities 
and catastrophic events, including pandemic outbreaks, as well 
as the workforce challenges Federal and State agencies 
encountered during four recent zoonotic outbreaks.
    The Federal veterinarian workforce defends against 
naturally and intentionally introduced diseases that could harm 
human and animal health. A number of Federal departments and 
agencies employ veterinarians who perform critical food safety, 
research, and public health functions. The U.S. Department of 
Agriculture has over 1,700 veterinarians, the most of any 
department. The Departments of Defense and Health and Human 
Services also have sizable Federal veterinarian workforces. 
Within these and other departments, subordinate agencies 
specialize in various functions, such as ensuring the humane 
treatment of animals at slaughterhouses, monitoring wildlife 
for illness, researching animal disease outbreaks, and 
coordinating disease response plans.
    At the hearing, Chairman Akaka highlighted the growing 
threat of animal and zoonotic disease outbreaks and the need 
for more strategic human capital planning for agencies with 
Federal veterinarians. The witnesses provided recommendations 
to strengthen this workforce, including increasing the capacity 
of veterinary institutions and providing retention incentives.
    The witnesses were: Lisa R. Shames, Director, Natural 
Resources and Environment, U.S. Government Accountability 
Office; Nancy H. Kichak, Associate Director, Strategic Human 
Resources Policy Division, U.S. Office of Personnel Management; 
Gerald W. Parker, DVM, Ph.D., MS, Principal Deputy Assistant 
Secretary, Office of the Assistant Secretary for Preparedness 
and Response, U.S. Department of Health and Human Services; 
Jill M. Crumpacker, Director, Office of Human Capital 
Management, U.S. Department of Agriculture; Thomas J. McGinn, 
III, DVM, Chief Veterinarian and Director, Food, Agriculture, 
and Veterinary Defense Division, Office of Health Affairs and 
Office of the Chief Medical Officer, U.S. Department of 
Homeland Security; W. Ron DeHaven, DVM, MBA, Chief Executive 
Officer, American Veterinary Medical Association; Michael 
Gilsdorf, DVM, Executive Vice President, National Association 
of Federal Veterinarians; and Marguerite Pappaioanou, DVM, 
MPVM, Ph.D., DIP/ACVPM, Executive Director, Association of 
American Veterinary Medical Colleges.

Stability Through Scandal: A Review of the Office of the Chief 
        Financial Officer, March 31, 2009

    The hearing examined challenges facing the Office of the 
Chief Financial Officer, including projected revenue shortfalls 
in the coming fiscal years and financial management weaknesses 
that led to various scandals, such as the November 2007 fraud 
scheme that resulted in approximately $48 million being 
misappropriated from the Office of Tax and Revenue.
    The Subcommittee found that the OCFO has made steady 
progress, posting 12 consecutive balanced budgets and 
rebuilding the District's reputation amongst lenders. However, 
the OCFO must continue to improve its internal controls to 
enable it to detect, deter, and prevent fraud.
    The witnesses were: Natwar M. Gandhi, Chief Financial 
Officer, Office of the Chief Financial Officer, District of 
Columbia; Charles J. Willoughby, Inspector General, District of 
Columbia Office of the Inspector General.

The Federal Government's Role in Empowering Americans to Make Informed 
        Financial Decisions, April 29, 2009

    This hearing reviewed the progress of the Financial 
Literacy and Education Commission and examined the 
effectiveness of Federal financial education programs. 
Government and private studies indicate that far too many 
Americans of all ages lack the knowledge and skills necessary 
to make informed decisions regarding their personal finances. 
As a way to address this problem, Congress created the 
Financial Literacy and Education Commission in 2003, composed 
of the head of 20 individual Federal agencies and tasked with 
reviewing financial literacy and education efforts throughout 
the Federal Government; identifying and eliminating duplicate 
financial literacy efforts; and coordinating the promotion of 
Federal financial literacy efforts.
    The U.S. Government Accountability Office issued a report 
in December 2006, and testified before the Subcommittee in 
April 2007, reviewing the Commission's effectiveness. GAO found 
that the National Strategy for Financial Literacy was a useful 
first step, but that it was more descriptive rather than 
strategic and lacked certain key characteristics that are 
needed in a national strategy. Furthermore, GAO observed that 
the National Strategy's effect on public and private entities 
that conduct financial education may be limited. GAO conducted 
an updated assessment of the Commission's progress in 
implementing its recommendations and released its findings at 
this hearing. GAO found that the Commission's National Strategy 
still did not serve as a functional strategy; the Commission 
has made progress in fostering partnerships with the private 
and nonprofits sectors to promote financial literacy; and that 
the Commission continues to face challenges of having limited 
resources and coordinating 20 individual agencies. This hearing 
also highlighted work by organizations and agencies, such as 
the Excellence in Economic Education, American Savings 
Education Council, and the Office of Personnel Management, to 
improve financial literacy by promoting financial education 
programs.
    Witnesses: Hon. John Berry, Director, U.S. Office of 
Personnel Management, accompanied by Dr. Raymond J. Kirk, 
Manager of Benefits Officers Training and Development Group, 
U.S. Office of Personnel Management; James H. Shelton, III, 
Assistant Deputy Secretary for Innovation and Improvement, U.S. 
Department of Education; Arthur J. Myers, Principal Director 
and Acting Under Secretary of Defense for Military Community 
and Family Policy, U.S. Department of Defense; Sandra F. 
Braunstein, Director, Division of Consumer and Community 
Affairs, Board of Governors of the Federal Reserve System; 
Richard J. Hillman, Managing Director, Financial Markets and 
Community Investment, U.S. Government Accountability Office; 
Dr. Robert F. Duvall, President and CEO, Council for Economic 
Education; and Dallas L. Salisbury, President and CEO, Employee 
Benefit Research Institute and Chairman, American Savings 
Education Council.

National Security Reform: Implementing a National Security Service 
        Workforce, April 30, 2009

    This hearing examined the existing and proposed efforts to 
develop national security professionals, particularly civilian 
joint duty rotation programs; the implementation challenges 
associated with these programs; and recommendations to improve 
on existing efforts. Additionally, this hearing explored 
findings and recommendations from recent reports that have 
examined aspects of the national security workforce.
    In 1986, the Goldwater-Nichols Act was enacted to develop 
officers from the military services who are prepared to handle 
complex, joint warfare challenges. To be eligible for promotion 
to the rank of brigadier general or equivalent, officers are 
required to complete joint education and assignments. To many 
observers, this Act has created more capable military officers. 
The Federal workforce, specifically the civil service, may also 
benefit from a similar program to develop its national security 
workforce. Catastrophic incidents such as the terrorist attacks 
of September 11, 2001, and Hurricane Katrina, along with 
operational challenges in stabilizing and reconstructing 
countries such as Iraq and Afghanistan, have illustrated a need 
for a national security workforce with greater interagency 
expertise.
    Witnesses testified about the need to create greater 
interagency expertise in the Federal workforce, the success of 
the Intelligence Community's joint duty program, and potential 
challenges standing in the way of implementing an interagency 
national security workforce.
    The witnesses were: Nancy H. Kichak, Associate Director, 
Strategic Human Resources Policy Division, U.S. Office of 
Personnel Management; Major General William A. Navas, Jr., USA 
(Ret.), Executive Director, National Security Professional 
Development Integration Office; Ronald P. Sanders, Ph.D., 
Associate Director of National Intelligence, for Human Capital, 
and Intelligence Community Chief Human Capital Officer, Office 
of the Director of National Intelligence; Hon. Bob Graham, 
Former Senator from the State of Florida, and Chairman, 
Commission on the Prevention of Weapons of Mass Destruction, 
Proliferation, and Terrorism; Ambassador Thomas R. Pickering, 
Former Under Secretary of State for Political Affairs, U.S. 
Department of State, and Guiding Coalition Member, Project on 
National Security Reform; and James R. Thompson, Ph.D., 
Associate Professor, and Head, Department of Public 
Administration, University of Illinois-Chicago.

Uncle Sam Wants You! Recruitment in the Federal Government, May 7, 2009

    The hearing was the second hearing held by the Subcommittee 
to examine Federal recruitment efforts and processes. The 
Subcommittee also sought recommendations on the Federal Hiring 
Process Improvement Act of 2009 (S. 736) from the witnesses. 
The hearing focused on job postings, candidate outreach, and 
communication with applicants in the hiring process.
    The Subcommittee reviewed improvements made in Federal 
recruitment and hiring, such as the Office of Personnel 
Management's ``End to End Hiring Roadmap.'' Notwithstanding 
this progress, vague job postings, lengthy applications, and 
insufficient applicant notification during the hiring process 
continue to be problems, and witnesses testified that S. 736, 
if enacted, will address these problems. Additionally, Director 
Berry testified that government-wide reform had yet to take 
root.
    The witnesses were: Hon. John Berry, Director, U.S. Office 
of Personnel Management; Susan L. Duncan, Director, Civilian 
Personnel Management, Office of the Deputy Chief of Staff, U.S. 
Department of the Army; Gail T. Lovelace, Chief Human Capital 
Officer, U.S. General Services Administration; Max Stier, 
President and Chief Executive Officer, Partnership for Public 
Service; Linda E.B. Rix, Co-Chief Executive Officer, Avue 
Technologies Corporation.

Public Health Challenges in Our Nation's Capital, May 19, 2009

    The hearing reviewed the major public health threats facing 
the District of Columbia, including an HIV/AIDS epidemic, 
kidney disease, and unsafe drinking water. The Subcommittee 
reviewed steps Mayor Adrian Fenty has taken to address these 
risks, such as creating the HIV/AIDS Administration and the 
Community Health Administration. In particular, the hearing 
examined the District's outreach initiatives and the progress 
it has made toward curbing its chronic health epidemics.
    The Subcommittee examined efforts to increase testing and 
community outreach to District residents for HIV/AIDS and 
chronic diseases. The District has improved collaboration 
between its agencies to ensure children have access to 
healthier foods and make healthier life choices. While there 
has been progress, the hearing highlighted the need for 
continued improvement in communication between the agencies and 
further work to ensure that more residents have access to 
testing and health care.
    The witnesses were: Pierre N.D. Vigilance, M.D., MPH, 
Director, District of Columbia Department of Health; Shannon L. 
Hader, M.D., MPH, Senior Deputy Director, HIV/AIDS 
Administration, District of Columbia Department of Health; and 
Raymond C. Martins, M.D., Chief Medical Officer, Whitman-Walker 
Clinic and Clincial Professor of Medicine, George Washington 
University.

S. 372--The Whistleblower Protection Enhancement Act of 2009, June 11, 
        2009

    The purpose of the hearing was to examine shortcomings in 
Federal employee whistleblower protections and the pending 
Whistleblower Protection Enhancement Act of 2009 (S. 372). The 
hearing also addressed differences between S. 372 and the House 
companion bill H.R. 1507.
    Federal employees are encouraged to disclose government 
waste, fraud, and abuse, also referred to as 
``whistleblowing.'' The Civil Service Reform Act of 1978 
created statutory protections for Federal employees to 
encourage disclosure of government illegality, waste, fraud, 
and abuse. Over the years, Congress determined that the CSRA 
did not protect whistleblowers from reprisals as intended. 
Thus, in 1989, Congress enacted the Whistleblower Protection 
Act, which amended the CSRA and enhanced protections for 
employees who disclose wrongdoing in the Federal Government. 
However, the Merit Systems Protection Board and Federal Circuit 
have continued to narrowly interpret the WPA.
    Since 2000, Senator Akaka and other Members have introduced 
several bills to strengthen the WPA, including S. 372 in the 
111th Congress. This hearing reviewed the impact S. 372 and 
H.R. 1507, or alternate proposals, would have on Federal 
whistleblowers, Federal agencies, national security, and the 
public interest. Specifically, the hearing focused on whether 
whistleblower protections should be expanded for the 
intelligence community and whether Federal employees should be 
permitted to bring whistleblower cases to the District Court 
under certain circumstances.
    Witnesses: Rajesh De, Deputy Assistant Attorney General, 
Office of Legal Policy, U.S. Department of Justice; William L. 
Bransford, General Counsel, Senior Executives Association; 
Danielle Brian, Executive Director, Project on Government 
Oversight; Thomas Devine, Legal Director, Government 
Accountability Project; and Robert G. Vaughn, Professor of Law, 
Washington College of Law, American University.

Protecting Our Employees: Pandemic Influenza Preparedness and the 
        Federal Workforce, June 16, 2009

    The hearing examined the preparedness of Federal agencies 
to protect the Federal workforce and continue their essential 
functions in the event of a pandemic influenza. In particular, 
the hearing focused on issues identified by the U.S. Government 
Accountability Office in a report on that subject requested by 
the Subcommittee.
    GAO found that while all of the agencies it surveyed are 
taking steps to protect their workers in the event of a 
pandemic influenza, the progress is uneven, and some agencies 
are only in the early stages of developing their pandemic 
plans. Moreover, according to the GAO report, there is no 
mechanism in place to track the Federal agencies' progress in 
workforce preparedness efforts.
    The hearing reviewed the work that the Department of 
Homeland Security, the Department of Health and Human Services, 
the Office of Personnel Management, and the White House 
Security Council are doing to ensure that Federal agencies are 
prepared to continue their essential functions in the event of 
a pandemic influenza. However, it became clear from the 
witnesses' testimony that there was no ``lead agency'' on this 
matter. Moreover, witnesses from both the American Federation 
of Government Employees and the National Treasury Employees 
Union testified that Federal employees were receiving 
conflicting guidance from the Department of Homeland Security 
and on-site supervisors regarding steps that they were 
permitted to take to protect themselves from influenza 
infection at the workplace.
    The witnesses were: Hon. Elaine C. Duke, Under Secretary 
for Management, U.S. Department of Homeland Security; W. Craig 
Vanderwagen, M.D., Assistant Secretary for Preparedness and 
Response, U.S. Department of Health and Human Services; Nancy 
H. Kichak, Associate Director, Strategic Human Resource Policy 
Division, U.S. Office of Personnel Management; Bernice 
Steinhardt, Director for Strategic Issues, U.S. Government 
Accountability Office; T.J. Bonner, President, National Border 
Patrol Council, American Federation of Government Employees 
AFL-CIO; and Maureen Gilman, Legislative Director, National 
Treasury Employees Union.

D.C. Public Schools: Taking Stock of Education Reform, July 23, 2009

    The hearing was the third in a series of hearings held by 
the Subcommittee to examine the reforms of D.C. Public Schools 
that have resulted from the D.C. Public Education Reform 
Amendment Act of 2007. The Reform Act permitted Mayor Fenty to 
assume control of DCPS, established DCPS as a cabinet-level 
agency administered by a Chancellor, and created an Office of 
the Deputy Mayor of Education, headed by the Deputy Mayor for 
Education.
    The hearing examined the findings of the U.S. Government 
Accountability Office long-term study on the status of those 
DCPS reforms titled, District of Columbia Public Schools: 
Important Steps Taken to Continue Reform Efforts, But Enhanced 
Planning Could Improve Implementation and Sustainability. In 
particular, the Subcommittee examined efforts to increase and 
measure student achievement, improve teacher and principal 
quality, increase strategic planning and systematic stakeholder 
involvement, and improve accountability in both the DCPS and 
State Superintendent's central offices. The hearing highlighted 
the need for the District of Columbia to increase stakeholder 
involvement in DCPS reforms and to link individual performance 
evaluations to the agency's goals in order to effectively 
implement the reforms.
    The witnesses were: Michelle Rhee, Chancellor, D.C. Public 
Schools; Victor Reinoso, Deputy Mayor for Education, District 
of Columbia; Kerri L. Briggs, Ph.D., Acting State 
Superintendent of Education for the District of Columbia; 
Cornelia M. Ashby, Director of Education, Workforce, and Income 
Security Issues, U.S. Government Accountability Office.

Strengthening the Federal Acquisition Workforce: Government-wide 
        Leadership and Initiatives, August 5, 2009

    The hearing reviewed the status of efforts to strengthen 
the Federal acquisition workforce against the backdrop of 
dramatic growth in contracting spending, a static size of the 
Federal acquisition workforce, and an expected wave of 
retirements within that workforce. In particular, the hearing 
examined whether the Administration is providing effective 
government-wide leadership and coordination on acquisition 
workforce issues and whether agencies with significant contract 
expenditures have the tools they need to build sufficient 
internal capacity to oversee mission-critical contracts.
    The Subcommittee found that the Office of Management and 
Budget, the Office of Personnel Management, and the General 
Services Administration are working to address these workforce 
challenges, including developing OMB guidance to require 
agencies to address the weaknesses of their acquisition 
workforces. However, the Subcommittee found some agencies with 
significant contracting expenditures lack coordination between 
their acquisition and human resources offices, which results in 
a lack of awareness of the tools available to them to hire and 
retain the acquisition workforce needed to achieve their 
missions. The hearing witnesses were supportive of efforts to 
improve the Federal hiring process and the purposes of Senator 
Akaka's Federal Hiring Process Improvement Act of 2009 (S. 
736).
    The witnesses were: Hon. Jeffrey D. Zients, Deputy Director 
for Management and Chief Performance Officer, Office of 
Management and Budget; Nancy H. Kichak, Associate Director, 
Strategic Human Resource Policy, U.S. Office of Personnel 
Management; David A. Drabkin, Acting Chief Acquisition Officer, 
U.S. General Services Administration; Hon. Elaine C. Duke, 
Under Secretary for Management, U.S. Department of Homeland 
Security; William P. McNally, Assistant Administrator for 
Procurement and Deputy Chief Acquisition Officer, National 
Aeronautics and Space Administration; John R. Bashista, Deputy 
Director, Office of Procurement and Assistance Management, U.S. 
Department of Energy; and Deidre A. Lee, Executive Vice 
President of Federal Affairs and Operations, Professional 
Services Council.

Security Clearance Reform: Moving Forward on Modernization, September 
        15, 2009

    This hearing updated the Subcommittee on progress made to 
reform the security clearance process in response to 
recommendations and initiatives of the Joint Security and 
Suitability Reform Team over the past year. This was the 
Subcommittee's sixth hearing on the clearance process.
    In 2005, the U.S. Government Accountability Office placed 
the Department of Defense Security Clearance process on the GAO 
High-Risk List due to a mounting backlog of clearance requests, 
as well as DoD's inability to manage the backlog. Shortly 
thereafter, DoD transferred the investigative role for 
clearances to the U.S. Office of Personnel Management. Since 
then, GAO has testified that there are overarching problems 
with the government-wide personnel security clearances.
    In a 2008 memo from President Bush, a Joint Reform Team was 
created and instructed, under the direction of OMB, to submit 
an initial report outlining how to improve the security 
clearance process along with executive and legislative actions 
to implement such reforms. The group submitted its initial 
report and recommendations on April 30, 2008. On June 30, 2008, 
President Bush issued Executive Order 13467, which formalized 
the Joint Reform Team's recommended reforms and established a 
Suitability and Security Clearance Performance Accountability 
Council to lead government-wide reform efforts.
    Since the creation of the PAC, through increased effort and 
a surge in investigative capacity, clearance backlogs 
diminished greatly and timeliness has improved. As of the 
hearing, OPM was on track to meet the 2009 benchmark of 
completing 90 percent of investigations within an average of 40 
days. However, there has been relatively little change in the 
technology in use in the clearance process since it was placed 
on the High-Risk List. Many of the systems are last generation 
technologies that do not have modern capabilities that could 
speed the clearance process and take advantage of electronic 
investigation sources.
    The witnesses were: Hon. Jeffrey D. Zients, Deputy Director 
for Management, Office of Management and Budget; Hon. John 
Berry, Director, U.S. Office of Personnel Management; Hon. 
James R. Clapper, Under Secretary of Defense for Intelligence, 
U.S. Department of Defense; David R. Shedd, Deputy Secretary of 
National Intelligence for Policy, Plans and Requirements, U.S. 
Office of the Director of National Intelligence; and Brenda S. 
Farrell, Director, Defense Capabilities and Management, U.S. 
Government Accountability Office.

A Review of U.S. Diplomatic Readiness: Addressing the Staffing and 
        Foreign Language Challenges Facing the Foreign Service, 
        September 24, 2009

    At the request of this Subcommittee, the U.S. Government 
Accountability Office undertook two reviews of diplomatic 
readiness at the U.S. Department of State. First, GAO analyzed 
experience and staffing gaps that may complicate the Department 
of State's efforts in conducting foreign policy at its overseas 
posts. Second, GAO reviewed language proficiency shortfalls at 
the Department's missions abroad. This hearing focused on the 
findings and recommendations from those reviews.
    The State Department's diplomats help formulate and lead 
the implementation of the Nation's foreign policy, and they 
represent the United States abroad through public outreach, 
consular services, economic relations, and other activities. 
Diplomatic readiness, which the Department defines as ``its 
ability to get the right people in the right place at the right 
time with the right skills to carry out America's foreign 
policy,'' provides the U.S. these capabilities. Over the past 
decade, many challenges have confronted U.S. diplomatic 
readiness, including significant staffing challenges such as 
language proficiency gaps among Foreign Service officers in 
regions vital to U.S. interests, the reassignment of diplomats 
from lower- to higher-priority missions, and experience gaps at 
hardship posts.
    Witnesses discussed ongoing language gaps within the 
Foreign Service, obstacles to improving language proficiency, 
the impact of having junior FSOs filling more senior roles, 
plans to increase the number of FSOs, and the need for a 
strategic plan to address State Department language proficiency 
shortfalls.
    The witnesses were: Ambassador Nancy J. Powell, Director 
General of the Foreign Service and Director of Human Resources, 
U.S. Department of State; Jess T. Ford, Director, International 
Affairs and Trade, U.S. Government Accountability Office; 
Ambassador Ronald E. Neumann (Ret.), President, American 
Academy of Diplomacy; and Susan R. Johnson, President, American 
Foreign Service Association.

The Diplomat's Shield: Diplomatic Security in Today's Word, December 9, 
        2009

    At the request of the Subcommittee, the U.S. Government 
Accountability Office reviewed the U.S. Department of State's 
Bureau of Diplomatic Security. This hearing examined GAO's 
findings and recommendations, and built upon relevant findings 
from the September 2009 Subcommittee hearing on diplomatic 
readiness and the September 2008 Subcommittee hearing on U.S. 
public diplomacy efforts.
    The State Department's Bureau of Diplomatic Security is 
responsible for the protection of people, property, and 
information at more than 285 State Department missions overseas 
and 122 domestic facilities. Since the attacks on the U.S. 
Embassies in Kenya and Tanzania in 1998 and the September 11, 
2001, terrorist attacks on the United States, Diplomatic 
Security's mission, resources, and personnel have grown 
significantly.
    The hearing focused on DS's preparation for an increased 
diplomatic presence in Afghanistan, language proficiency 
shortfalls among Regional Security Officers, experience gaps at 
key domestic and international posts, the balance of security 
and diplomacy, and recommendations to improve the security of 
diplomats in the field.
    The witnesses were: Ambassador Eric J. Boswell, Assistant 
Secretary of State for Diplomatic Security, U.S. Department of 
State; Jess T. Ford, Director, International Affairs and Trade, 
U.S. Government Accountability Office; Ambassador Ronald E. 
Neumann (Ret.), President, American Academy of Diplomacy; and 
Susan R. Johnson, President, American Foreign Service 
Association.

One DHS, One Mission: Efforts to Improve Management Integration at the 
        Department of Homeland Security, December 15, 2009

    The hearing reviewed the status of the U.S. Department of 
Homeland Security's efforts to integrate and effectively manage 
the Department given the significant challenges remaining from 
the merger of 22 former agencies and offices into one 
organization with critical missions to the safety of our 
Nation. In particular, the hearing examined the results of a 
U.S. Government Accountability Office report, Department of 
Homeland Security: Actions Taken Toward Management Integration, 
But a Comprehensive Strategy Still Needed, which was released 
in conjunction with the hearing, as well as recent DHS Office 
of Inspector General reports on functional management 
weaknesses of the Department.
    The Subcommittee found that DHS continues to face 
significant management challenges despite some measurable 
progress. The DHS OIG testified that all four key functional 
management areas (acquisitions, information technology, grants, 
and financial management) have ongoing weaknesses, with most 
areas making only modest or moderate progress in all areas 
measured during fiscal year 2009. These weaknesses directly 
affect the Department's ability to perform its mission and are 
exacerbated by the lack of management integration identified by 
the GAO.
    The GAO testified that, despite its recommendation in 2005 
and a statutory requirement enacted in 2007, DHS has yet to 
create a comprehensive strategy for management integration. 
Without such a plan, DHS does not systematically prioritize and 
identify trade-offs and links between initiatives, or establish 
specific implementation goals and a timeline to monitor 
progress of the initiatives. GAO again recommended that DHS 
create a comprehensive strategic plan for management 
integration, along with performance measures that can be 
incorporated and communicated to all levels of management. GAO 
also noted that the Under Secretary for Management may have 
inadequate authority and suggested support for the Effective 
Security Management Act (S. 872), which Senators Voinovich and 
Akaka introduced to elevate the Under Secretary for Management 
to a Deputy Secretary with a term appointment to ensure 
management continuity. Under Secretary Duke highlighted the 
management accomplishments of the Department, most recently 
increasing its acquisition workforce and improving contracting 
processes. The Under Secretary committed to creating a 
strategic management integration plan. Toward that end, she 
promised to identify the key elements of the plan before the 
end of 2009, and to meet with GAO in February 2010 to gather 
input, discuss progress, and report on the status of 
implementing GAO's recommendations.
    The witnesses were: Hon. Elaine C. Duke, Under Secretary 
for Management, U.S. Department of Homeland Security; Anne L. 
Richards, Assistant Inspector General for Audits, U.S. 
Department of Homeland Security; Bernice Steinhardt, Director 
for Strategic Issues, U.S. Government Accountability Office.

Assessing Foster Care and Family Services in the District of Columbia: 
        Challenges and Solutions, March 16, 2010

    This hearing assessed the status of ongoing initiatives to 
reform the child welfare system in the District of Columbia and 
examined proposals to improve foster care and adoption 
practices in the District. Senator Landrieu, Co-Chair of the 
Senate Caucus on Foster Youth, joined the Subcommittee for the 
hearing. In addition to dealing with challenges facing the 
child welfare system, youth witnesses highlighted the 
importance and urgency of this issue by sharing their personal 
experiences as foster youth within the system.
    Panel 1 Witnesses: Roque R. Gerald, Psy.D., Director, 
District of Columbia Child and Family Services Agency; Chief 
Judge Lee F. Satterfield, Superior Court of the District of 
Columbia; Judith W. Meltzer, Deputy Director, Center for the 
Study of Social Policy.
    Panel 2 Witnesses: Judith Sandalow, Executive Director, 
Children's Law Center; Sarah M. Ocran, Vice President, Foster 
Care Campaign, Young Women's Project; and Dominique Jacqueline 
Davis, Former District of Columbia Foster Youth.

Deployed Federal Civilians: Advancing Security and Opportunity in 
        Afghanistan, April 14, 2010

    Federal civilian employees carry out critical functions 
internationally that support combat operations and 
stabilization efforts and aid in reconstruction efforts. Just 
as military personnel readiness is crucial in meeting mission 
requirements, it is important to support the readiness of these 
civilians.
    This hearing reviewed key agencies' efforts to strengthen 
their support for Federal civilians serving in conflict zones, 
with a particular focus on current and future initiatives 
related primarily to the deployment of civilians to 
Afghanistan. Areas that need focused attention include their 
pre-deployment training, in theater support and assignments, 
and medical care and compensation provided for service while in 
harm's way.
    Witnesses: Hon. John Berry, Director, U.S. Office of 
Personnel Management; Ambassador Patrick F. Kennedy, Under 
Secretary for Management, U.S. Department of State; Hon. 
Clifford L. Stanley, Under Secretary for Personnel and 
Readiness, U.S. Department of Defense; and Janet St. Laurent, 
Managing Director, Defense Capabilities and Management, U.S. 
Government Accountability Office.

After the Dust Settles: Examining Challenges and Lessons Learned in 
        Transitioning the Federal Government, April 22, 2010

    The 2008-2009 presidential transition took place as the 
Federal Government faced unprecedented economic challenges, 
national security threats, and major management challenges. In 
September 2008, the Subcommittee held two hearings in examining 
these challenges to ensure that the Administration was 
prepared.
    The first panel of this hearing provided the Subcommittee 
with the General Services Administration's views on the 
transition, due to its role of facilitating logistics and 
administrative support during the transition. GSA testified 
that it facilitates a ``hit the ground running'' mentality in 
which the incoming Administration is able to effectively take 
on their governing responsibilities.
    The second panel provided additional insight into the 
workings of the transition by providing the views of key 
leaders for the incoming transition team and the outgoing 
Administration. The hearing also discussed the Pre-Election 
Presidential Transition Act of 2010 (S. 3196), which encouraged 
advanced transition planning and provided additional resources 
for incoming and outgoing Administrations.
    Panel 1 Witness: Gail T. Lovelace, Chief Human Capital 
Officer, U.S. General Services Administration.
    Panel 2 Witnesses: Hon. Clay Johnson, III, Former Deputy 
Director for Management, U.S. Office of Management and Budget 
(2003-2009); Hon. John D. Podesta, President and Chief 
Executive Officer, Center for American Progress Action Fund; 
and Max Stier, President and Chief Executive Officer, 
Partnership for Public Service.

Developing Federal Employees and Supervisors: Mentoring, Internships, 
        and Training in the Federal Government, April 29, 2010

    The Federal Government is expected to face one of the 
largest retirement waves in the Nation's history within the 
next 5 years, during which more than half of the Federal 
employees will be eligible to retire. These expected 
retirements increase the importance of providing Federal 
employees and supervisors the training they need to effectively 
and efficiently carry out government programs.
    This hearing addressed the Federal Government's efforts to 
train and develop Federal employees and supervisors, including 
efforts to recruit and mentor recent college graduates.
    Panel 1 Witnesses: Nancy H. Kichak, Associate Director and 
Chief Human Capital Officer, U.S. Office of Personnel 
Management; and Marilee Fitzgerald, Director, Workforce Issues 
and International Programs, U.S. Department of Defense.
    Panel 2 Witnesses: Colleen M. Kelley, National President, 
National Treasury Employees Union; J. David Cox, Sr., National 
Secretary-Treasurer, American Federation of Government 
Employees, AFL-CIO, (AFGE); John Palguta, Vice President for 
Policy, Partnership for Public Service; and Laura K. Mattimore, 
Ph.D., Director of Leadership Development, Proctor & Gamble.

Work-life Programs: Attracting, Retaining and Empowering the Federal 
        Workforce, May 4, 2010

    This hearing coincided with Public Service Recognition 
Week, and built upon the year's theme of ``Innovation and 
Opportunity,'' by examining how the Federal Government can use 
best-practice work-life programs to improve Federal employee 
engagement and satisfaction. The hearing focused on programs 
that may improve work-life balance, including alternative work 
schedules, telework, the Office of Personnel Management's 
Results Only Work Environment programs, paid parental leave, 
and workplace wellness programs.
    Witnesses discussed current Federal work-life programs and 
their importance for retaining current employees, attracting 
high-performing new employees, and increasing the health and 
productivity of our Federal workforce. Testimony also included 
a discussion of industry and government best practices, the 
economic benefits of work-life flexibility arrangements, and 
barriers to wider use of these programs at Federal agencies.
    Panel 1 Witnesses: Cecilia E. Rouse, Member, Council of 
Economic Advisers; and Jonathan Foley, Senior Advisor to the 
Director, U.S. Office of Personnel Management.
    Panel 2 Witnesses: Kathleen M. Lingle, Executive Director, 
Alliance for Work-Life Progress at WorldatWork; Max Stier, 
President and CEO, Partnership for Public Service; Colleen M. 
Kelley, National President, National Treasury Employees Union; 
and Jonathan P. Flynn, Vice President, American Federation of 
Government Employees, AFL-CIO.

Balancing Act: Efforts to Right-Size the Federal Employee-to-Contractor 
        Mix, May 20, 2010

    Although the Federal Government has long relied on the 
private sector for needed commercial services, in recent years 
it has been widely criticized for contracting out services that 
may be inherently governmental functions. Efforts are underway 
to have Federal agencies re-balance their Federal employee-to-
contractor workforce. To assist in this process, the 
Administration began reexamining the definition of an 
``inherently governmental function'' and what jobs or functions 
should be insourced.
    Witnesses testified that some agencies had contracted out 
functions that should be performed by Federal employees, and 
that the line between work that may be contracted out and work 
that must be performed by Federal employees had been blurred. 
The Administration was in the process of clarifying the rules, 
evaluating contracted positions, and remedying imbalances.
    Panel 1 Witnesses: Hon. Daniel I. Gordon, Administrator, 
Office of Federal Procurement Policy, Office of Management and 
Budget; Jeffrey R. Neal, Chief Human Capital Officer, U.S. 
Department of Homeland Security; Charles D. Grimes, III, Deputy 
Associate Director, Employee Services, U.S. Office of Personnel 
Management; and John K. Needham, Director, Acquisition and 
Sourcing Management, U.S. Government Accountability Office.
    Panel 2 Witnesses: Maureen Gilman, Legislative Director, 
National Treasury Employees Union; Alan Chvotkin, Executive 
Vice President and Counsel, Professional Services Council; and 
Mark Whetstone, President, National Citizenship and Immigration 
Services Council, American Federation of Government Employees, 
AFL-CIO.

The National Security Personnel System and Performance Management in 
        the Federal Government, June 9, 2010

    The National Defense Authorization Act for Fiscal Year 2010 
repealed the National Security Personnel System at the 
Department of Defense. Under the law, DOD employees must be 
transitioned back to a personnel system in which they were 
previously enrolled, or would have been enrolled had NSPS never 
existed, by no later than January 1, 2012. In addition to 
repealing NSPS, the NDAA provided DOD with certain personnel 
flexibilities, including the authority to create a new 
performance management system at DOD in coordination with the 
Office of Personnel Management. This hearing addressed the 
transition of approximately 226,000 DOD employees out of NSPS 
and the steps DOD plans to take in coordination with OPM 
regarding its performance management system.
    Panel 1 Witnesses: John H. James, Jr., Director, National 
Security Personnel System Transition Office, U.S. Department of 
Defense; and Charles D. Grimes, III, Deputy Associate Director 
for Employee Services, U.S. Office of Personnel Management.
    Panel 2 Witnesses: Gregory J. Junemann, President, 
International Federation of Professional and Technical 
Engineers AFL-CIO, CLC; Patricia Niehaus, National President, 
Federal Managers Association; and Patricia Viers, President, 
Local 1148, American Federation of Government Employees, AFL-
CIO.

The Federal Government's Role in Empowering Americans to Make Informed 
        Financial Decisions, July 15, 2010

    This hearing reviewed the progress of the Financial 
Literacy and Education Commission and examined the 
effectiveness of Federal financial literacy programs. The 
hearing also focused on preparations for implementation of 
several investor financial literacy and investor protection 
provisions that Chairman Akaka successfully sought to include 
in the Dodd-Frank Wall Street Reform and Consumer Protection 
Act.
    Panel 1 Witnesses: Michael Barr, Assistant Secretary for 
Financial Institutions, U.S. Department of the Treasury; 
Christine Griffin, Deputy Director, U.S. Office of Personnel 
Management; Brenda Dann-Messier, Assistant Secretary, Office of 
Vocational and Adult Education, U.S. Department of Education; 
Marianna LaCanfora, Assistant Deputy Commissioner, Retirement 
and Disability Policy, Social Security Administration; and 
Sandra L. Thompson, Director, Division of Supervision and 
Consumer Protection, Federal Deposit Insurance Corporation.
    Panel 2 Witnesses: Barbara Roper, Director of Investor 
Protection, Consumer Federation of America; and Lynne Egan, 
Deputy Securities Commissioner, Montana Office of State 
Auditor, on behalf of the North American Securities 
Administrators Association.

High-Risk Logistics Planning: Progress on Improving Department of 
        Defense Supply Chain Management, July 27, 2010

    This was the fourth hearing the Subcommittee has held on 
Department of Defense supply chain management, which has been 
listed on the Government Accountability Office's High-Risk List 
of Federal Government programs since 1990. Although DOD has 
demonstrated progress at improving supply chain management, it 
continues to face many challenges to effectively and 
efficiently supplying our warfighters.
    DOD testified that it has made substantial and measurable 
improvements that have mitigated the high-risk designation, and 
that DOD's Logistics Strategic Plan serves as a framework for 
continued improvement. However, GAO concluded that the 
Strategic Plan fell short of providing a comprehensive and 
integrated strategy to address logistics problems department-
wide. According to GAO, the Strategic Plan did not identify the 
scope of logistics problems or gaps in logistics capabilities, 
include clear and specific performance measures to assess 
progress made, or clearly define how the Strategic Plan would 
be integrated into the Department's logistics decision-making 
processes.
    Witnesses: Alan F. Estevez, Principal Deputy Assistant 
Secretary of Defense for Logistics and Materiel Readiness, U.S. 
Department of Defense; and Jack E. Edwards and William Solis, 
Directors, Defense Capabilities and Management, U.S. Government 
Accountability Office.

Closing the Language Gap: Improving the Federal Government's Foreign 
        Language Capabilities, July 29, 2010

    This hearing reviewed the current and future capabilities 
and needs for foreign languages at Federal agencies, 
particularly at the Department of Homeland Security and the 
Department of Defense. The hearing also reviewed the findings 
and recommendations from two U.S. Government Accountability 
Office reports on DHS's current language capabilities and 
access to government programs and services for limited English 
proficient persons.
    Changing national security threats and economic 
globalization have greatly increased Federal agencies' needs 
for personnel proficient in foreign languages. Since 2002, GAO 
has repeatedly highlighted language proficiency shortfalls at 
agencies with critical national and homeland security missions. 
At the hearing, GAO reported that DHS has done little to 
address its foreign language shortfalls and recommended that 
DHS conduct a comprehensive assessment of its foreign language 
needs and capabilities. Additionally, GAO testified that DOD 
has taken significant steps to enhance its language 
capabilities, but it does not have a comprehensive strategic 
plan to guide its efforts.
    Other witnesses provided recommendations on improving 
Federal agencies' foreign language capacity, including 
increased interagency coordination of foreign language efforts 
and increased funding for language education programs.
    Panel 1 Witnesses: David C. Maurer, Director, Homeland 
Security and Justice Issues, U.S. Government Accountability 
Office; Jeffrey R. Neal, Chief Human Capital Officer, U.S. 
Department of Homeland Security; and Nancy Weaver, Director, 
Defense Language Office, U.S. Department of Defense.
    Panel 2 Witnesses: Hon. David S. Chu, Former Under 
Secretary for Personnel and Readiness, U.S. Department of 
Defense; Richard D. Brecht, Executive Director, Center for 
Advanced Study of Language, University of Maryland; and Dr. Dan 
E. Davidson, President, American Councils for International 
Education ACTR/ACCESS, and Elected President of the Joint 
National Council for Languages (JNCL).

Implementation, Improvement, and Sustainability: Management Matters at 
        the Department of Homeland Security, September 30, 2010

    This hearing examined the continued efforts to implement 
and transform the Department of Homeland Security, which has 
been on the Government Accountability Office's High-Risk List 
since 2003.
    Witnesses discussed efforts to improve integration and 
management at DHS, including the results of the Quadrennial 
Homeland Security Review, which examines long-term strategy and 
priorities for homeland security and guidance for DHS 
capabilities, programs, and policies. DHS also discussed the 
Bottom-up Review, undertaken by the Deputy Secretary, which 
outlined priorities for DHS going forward.
    The Subcommittee found that DHS has made progress, but more 
must be done to strengthen and integrate DHS acquisition 
management, information technology management, and strategic 
human capital management.
    Panel 1 Witnesses: Hon. Jane Holl Lute, Ph.D., Deputy 
Secretary, U.S. Department of Homeland Security.
    Panel 2 Witness: Cathleen A. Berrick, Managing Director, 
Homeland Security and Justice Team, U.S. Government 
Accountability Office.

Improving Social Security: Disability Insurance Claim Processing in 
        Ohio, November 15, 2010

    The field hearing was held in Akron, Ohio, and explored 
challenges posed in the processing of Social Security 
Disability Insurance claims, focusing on initiatives in the 
Ohio Office of Disability Adjudication and Review to improve 
processing of both initial disability claims and appeals 
claims. The hearing also focused on workforce and 
administrative challenges within the Social Security 
Administration, ways to continue to improve SSDI claims 
processing, and challenges that could jeopardize the progress 
that has been made.
    Panel 1 Witnesses: Hon. Michael J. Astrue, Commissioner, 
Social Security Administration; and Hon. Patrick P. O'Carroll, 
Jr., Inspector General, Social Security Administration.
    Panel 2 Witnesses: Richard Warsinskey, Manager, Cleveland 
Downtown District Office Manager and Past President, National 
Council of Social Security Management Associations; and D. 
Randall Frye, President, Association of Administrative Law 
Judges.

Security Clearance Reform: Setting a Course for Sustainability, 
        November 16, 2010

    This was the seventh in a series of Subcommittee hearings 
on the Federal Government's security clearance process.
    Comprehensive reform efforts over the past several years 
have led to considerable progress in improving the security 
clearance process. Witnesses discussed efforts over the past 
year to improve clearance timeliness and quality, 
institutionalize government-wide clearance oversight, sustain 
progress, and further improve the clearance process in the 
future. At the request of the Chairman and Senator Collins 
earlier in 2010, agencies involved in the security clearance 
process had worked to develop metrics to measure various 
aspects of the clearance process, including investigation 
quality. The Government Accountability Office's witness 
testified that steady progress had been made in improving the 
process, bringing it closer to removal from GAO's High-Risk 
List.
    Despite the progress, the Chairman noted slow progress in 
modernizing infrastructure related to the clearance process, 
which could provide even greater efficiencies.
    Witnesses: Hon. Jeffrey D. Zients, Deputy Director for 
Management and Chief Performance Officer, U.S. Office of 
Management and Budget; Hon. James R. Clapper, Director of 
National Intelligence, Office of the Director of National 
Intelligence; Hon. John Berry, Director, U.S. Office of 
Personnel Management; Hon. Elizabeth A. McGrath, Deputy Chief 
Management Officer, U.S. Department of Defense; Brenda A. 
Farrell, Managing Director, Defense Capabilities and 
Management, U.S. Government Accountability Office.

                            II. LEGISLATION

    The following bills were considered by the Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia during the 111th Congress:

                       measures enacted into law

    P.L. 111-283, S. 3196--The Pre-Election Presidential 
Transition Act of 2010 amends the Presidential Transition Act 
of 1963 to direct the Administrator of the General Services 
Administration to provide certain presidential transition 
services and facilities, including office space, equipment, and 
payment of certain related expenses, to eligible presidential 
and vice-presidential candidates before a presidential general 
election. It also directs the President, or the President's 
delegate, to take necessary and appropriate actions to plan and 
coordinate activities by the Executive Branch of the Federal 
Government to facilitate an efficient transfer of power to a 
successor President. Introduced by Senator Kaufman on April 13, 
2010, and referred to the Committee on Homeland Security and 
Governmental Affairs. Passed the Senate by Unanimous Consent on 
September 24, 2010. Passed the House by voice vote on September 
30, 2010. Became Public Law No. 111-283 on October 15, 2010.
    P.L. 111-328, H.R. 2092--The Kingman Heritage Islands Act 
of 2009 amends the National Children's Island Act of 1995 to 
allow the District of Columbia to use the lands conveyed 
(Kingman and Heritage Islands) and the related easements 
granted under such Act in accordance with a specified Anacostia 
Waterfront Framework Plan and a Comprehensive Plan. (Thus 
expands allowable uses for them by the District.) The bill also 
revises the terms of the reversionary interest of the United 
States in such properties and easements. Repeals the conditions 
for reversion with respect to: (1) failure to commence 
improvements in or operation of the recreational park; or (2) 
abandonment or nonuse of the park after completion of 
construction and commencement of operation. States that title 
in the Islands and the related easements shall revert back to 
the United States 60 days after the Secretary of Interior 
notifies the District in writing that a portion of the District 
is not using them for the recreational, environmental, or 
educational purposes of the National Children's Island, in 
accordance with the Anacostia Waterfront Framework Plan or the 
Comprehensive Plan.
    H.R. 2092 was introduced on April 23, 2009 by Delegate 
Norton. Passed House on October 7, 2009 and referred to the 
Committee on Homeland Security and Governmental Affairs. 
Reported favorably with an Akaka amendment in the nature of a 
substitute on September 22, 2010, and passed the Senate on 
September 27, 2010. Modified version of the bill, H.R. 6278, 
with the same title, introduced on September 29, 2010, by 
Delegate Norton, passed the House on November 16, 2010, and 
passed the Senate on December 13, 2010. Became Public Law 111-
328 on December 22, 2010.
    P.L. 111-292, H.R. 1722, S. 707--The Telework Enhancement 
Act of 2010 requires each executive agency to establish a 
telework policy, determine and notify eligible employees, 
provide an interactive telework training program for eligible 
employees and their managers, and ensure that teleworkers and 
nonteleworkers are treated the same for purposes of performance 
appraisals, training, retention, work requirements, or other 
acts involving managerial discretion. Such policies are 
required to: (1) ensure that telework does not diminish 
employee performance or agency operations; (2) require a 
written agreement between the agency manager and the employee; 
(3) exclude employees whose performance does not comply with 
the terms of such agreement or whose official duties require 
daily direct handling of secure materials or on-site activity 
that cannot be handled remotely or at an alternate worksite, 
except in emergency situations; and (4) be incorporated as part 
of the agency's continuity of operations plans. Introduced on 
March 25, 2009, and referred to the Committee on Homeland 
Security and Governmental Affairs. Committee on Homeland 
Security and Governmental Affairs ordered to be reported with 
an amendment on May 20, 2009. Passed Senate by Unanimous 
Consent on May 24, 2010. S. AMDT. 4689 to House companion bill, 
H.R. 1722, agreed to in House, which became Public Law No. 111-
292 on December 9, 2010.
    P.L. 111-84, S. 469--S. 469 amends chapter 83 of title 5, 
United States Code, and requires part-time service performed by 
a Federal employee before April 7, 1986, to be credited as 
full-time service for purposes of annuity computation under the 
Civil Service Retirement System (currently, the annuity benefit 
for such part-time service is prorated). Introduced by Senator 
Voinovich on February 25, 2009, and referred to the Committee 
on Homeland Security and Governmental Affairs. Ordered to be 
reported without amendment on May 20, 2009, and included in 
H.R. 2647, National Defense Authorization Act for Fiscal Year 
2010, conference report, which became Public Law No. 111-84 on 
October 28, 2009.
    P.L. 111-84, S. 507--The Non-Foreign Area Retirement Equity 
Assurance Act of 2009 revises Federal employee locality-based 
comparability payments provisions to include U.S. territories 
and possessions, including the Commonwealth of Puerto Rico and 
the Commonwealth of the Northern Mariana Islands, within a pay 
locality. This bill sets forth freezes Cost of Living 
Allowances for pay of employees stationed outside the 
continental United States or in Alaska as of December 31, 2009 
and provides a formula for reducing such rates as locality-
based comparability payments are increased. Locality-based 
comparability payments are phased in using a transition 
schedule for calendar years 2010-2012. The Non-Foreign AREA Act 
of 2009 also requires adjustment of special rates of pay 
determined to be necessary to obtain or retain the services of 
persons specified by statute in such a cost-of-living area in 
accordance with regulations to be prescribed by the Director of 
the Office of Personnel Management under this Act. The bill 
further allows a temporarily raised limitation on the amount of 
special rates during the transition period of January 1, 2010, 
to January 1, 2012. Introduced by Senator Akaka on March 2, 
2009, referred to the Committee on Homeland Security and 
Governmental Affairs, and ordered to be reported with a 
clarifying amendment on April 1, 2009. Included in conference 
report for H.R. 2647, National Defense Authorization Act for 
Fiscal Year 2010, which became Public Law No. 111-84 on October 
28, 2009.
    P.L. 111-84, S. 674--The Federal Supervisor Training Act of 
2010 revises provisions relating to specific training programs 
for Federal agency supervisors. The bill requires the head of 
each Federal agency to establish: (1) a program to provide 
training to supervisors on developing and discussing relevant 
goals and objectives with the employee, communicating and 
discussing progress on performance goals and objectives and 
conducting performance appraisals, mentoring and motivating 
employees and improving employee performance and productivity, 
fostering a work environment characterized by fairness, 
respect, equal opportunity, and attention paid to the merit of 
the work of employees, effectively managing employees with 
unacceptable performance, and addressing reports of a hostile 
work environment, reprisal, or harassment; (2) a program to 
provide training to supervisors on prohibited personnel 
practices, employee collective bargaining and union 
participation rights, and processes to enforce employee rights; 
and (3) a program under which experienced supervisors mentor 
new supervisors. S. 674 also requires supervisors to complete 
such programs every 3 years. The legislation further requires 
the Director of the Office of Personnel Management to issue 
guidance to Federal agencies on competencies supervisors are 
expected to meet in order to effectively manage, and be 
accountable for managing, the performance of employees. Lastly, 
each agency is required to: (1) develop competencies to assess 
the performance of each supervisor; (2) assess the overall 
capacity of the supervisors in the agency to meet such 
guidance; (3) develop and implement a supervisor training 
program to strengthen issues identified during such assessment; 
and (4) measure the effectiveness of that program in improving 
supervisor competence. Introduced on March 24, 2009, and 
referred to the Committee on Homeland Security and Governmental 
Affairs. Ordered to be reported favorably on June 24, 2010. 
Some provisions of S. 674 were included in conference report 
for H.R. 2647, National Defense Authorization Act for Fiscal 
Year 2010, which became Public Law No. 111-84 on October 28, 
2009.

   measures favorably reported by the subcommittee and passed by the 
                                 senate

    S. 372--The Whistleblower Protection Enhancement Act of 
2010 amends Federal personnel law relating to whistleblower 
protections to provide that such protections shall apply to a 
disclosure of any violation of law, except for an alleged 
violation that is a minor, inadvertent violation that occurs 
during the conscientious carrying out of official duties. S. 
372 provides that a disclosure shall not be excluded from 
whistleblower protections because: (1) the disclosure was made 
during the normal course of the employee's duties; (2) the 
disclosure was made to a person, including a supervisor, who 
participated in the activity; (3) the disclosure revealed 
information that had been previously disclosed; (4) of the 
employee or applicant's motive for making the disclosure; (5) 
the disclosure was not made in writing; (6) the disclosure was 
made while the employee was off duty; or (7) of the amount of 
time which has passed since the occurrence of the events 
described in the disclosure. Introduced on February 2, 2009, 
referred to the Committee on Homeland Security and Governmental 
Affairs, and ordered to be reported with an amendment in the 
nature of a substitute on July 29, 2009. Passed Senate with an 
Akaka amendment by unanimous consent on December 10, 2010. 
Passed the House with amendments by unanimous consent on 
December 22, 2010, but differences were not resolved before the 
Congress adjourned.
    S. 736--The Federal Hiring Process Improvement Act of 2010 
requires the head of each executive agency (excluding the 
Government Accountability Office) to develop a strategic 
workforce plan as part of the agency performance plan, to 
include: (1) hiring projections; (2) strategic human capital 
planning to address critical skills deficiencies; (3) 
recruitment strategies to attract highly qualified candidates 
from diverse backgrounds; (4) streamlining the hiring process; 
and (5) a specific analysis of the contractor workforce, the 
need to adjust the balance between work being performed by the 
Federal workforce and the contractor workforce, and the 
capacity of the agency to manage employees who are not Federal 
employees and are doing the work of the government. Further, 
each agency's strategic workforce plan is required to be 
submitted to the Office of Personnel Management; and (2) OPM is 
required to develop a government-wide strategic workforce plan 
based on such agency plans, update it annually, and make it 
available to the President, Congress, and the public. 
Introduced on March 30, 2009, and referred to the Committee on 
Homeland Security and Governmental Affairs. Ordered to be 
reported with an amendment in the nature of a substitute on 
July 29, 2009. Passed Senate with an amendment by Unanimous 
Consent on May 18, 2010. Some provisions of S. 736 required 
under Presidential Memorandum, ``Improving the Federal 
Recruitment and Hiring Process, issued on May 11, 2010.''
    S. 806--The Federal Executive Board Authorization Act of 
2009 statutorily authorizes Federal Executive Boards, which are 
defined as interagency entities established in a geographic 
area with a high concentration of Federal employees outside the 
Washington, D.C. metropolitan area, to strengthen the 
management and Administration of agency activities and 
coordination among local Federal officers to implement national 
initiatives in that area. S. 806 requires each FEB to consist 
of a senior officer for each agency in that area. Each FEB is 
required to: (1) serve as an instrument of outreach for the 
national headquarters of agencies relating to agency activities 
in the geographic area; (2) provide a forum for the exchange of 
information relating to programs and management methods and 
problems between the national headquarters of agencies and the 
field; (3) develop local coordinated approaches to the 
development and operation of programs that have common 
characteristics; (4) communicate management initiatives and 
other concerns from Federal officers and employees in the 
Washington, D.C. area to Federal officers and employees in the 
geographic area to achieve better mutual understanding and 
support; (5) develop relationships with State and local 
governments and nongovernmental organizations to help fulfill 
the roles and responsibilities of that FEB; and (6) facilitate 
communication, collaboration, and training to prepare the 
Federal workforce for emergencies and continuity of operations. 
Further, the bill requires the Office of Personnel Management 
to: (1) establish a fund within OPM for financing essential FEB 
functions, into which contributions from the headquarters of 
each participating agency shall be deposited; (2) submit annual 
reports to Congress and agencies on FEB program outcomes and 
budget matters; and (3) report to specified congressional 
committees on essential FEB functions, staffing requirements, 
and staffing and operating expenses. Introduced by Senator 
Voinovich on April 2, 2009. Passed the Senate with an amendment 
by Unanimous Consent on November 5, 2009. Received in the House 
and referred to the House Committee on Oversight and Government 
Reform on November 16, 2009. Ordered to be reported favorably 
on April 14, 2010.

 measures referred to the subcommittee on which hearings were held or 
                   other legislative action was taken

    H.R. 1345--The District of Columbia Hatch Act Reform Act of 
2010 amends the Federal law commonly referred to as the ``Hatch 
Act'' (concerning political activities of Federal, State, and 
local employees) to: (1) include the District of Columbia or an 
agency or department thereof within the definition of a ``State 
or local agency'' under such Act; (2) ensure that individuals 
employed by an educational or research institution, 
establishment, agency, or system supported in whole or in part 
by the District are exempt from Hatch Act restrictions; (3) 
exempt the duly elected head of an executive department of the 
District who is not classified under the District's merit or 
civil-service system from the prohibition against being a 
candidate for elective office; and (4) direct the Merit Systems 
Protection Board to issue an order to withhold Federal funds 
upon finding that a District employee ordered removed for 
violating the Hatch Act has been reappointed in the District 
within 18 months. Passed House on September 8, 2009 and 
referred to the Homeland Security and Governmental Affairs 
Committee. Reported favorably with an Akaka amendment in the 
nature of a substitute on May 17, 2010.
    S. 599--The Federal Firefighters Fairness Act of 2009 
amends chapter 81 of title 5, United States Code, to create a 
presumption that a disability or death of a Federal employee in 
fire protection activities caused by any certain diseases is 
the result of the performance of such employee's duty. On March 
25, 2009, S. 599 was referred to the Committee on Homeland 
Security and Governmental Affairs, Subcommittee on Oversight of 
Government Management, the Federal Workforce, and the District 
of Columbia. Reported favorably with a Coburn amendment on May 
20, 2009.

     measures which did not advance beyond referral to subcommittee

    H.R. 626--The Federal Employees Paid Parental Leave Act of 
2009 allows Federal employees to substitute any available paid 
leave for any leave without pay available for the birth of a 
child or placement of a child with the employee for either 
adoption or foster care. It further provides that four of the 
12 weeks of parental leave made available to a Federal employee 
shall be paid leave. H.R. 626 also authorized the Director of 
the Office of Personnel Management to promulgate regulations to 
increase the amount of paid parental leave available to such an 
employee to a total of eight administrative workweeks, based on 
the consideration of: (1) the benefits to the Federal 
Government, including enhanced recruitment and employee 
retention; (2) the cost to the government; (3) trends in the 
private sector and in State and local governments; (4) the 
Federal Government's role as a model employer; and (5) the 
impact of increased paid parental leave on lower-income and 
economically disadvantaged employees and their children. The 
bill also amends the Congressional Accountability Act of 1995 
and the Family and Medical Leave Act of 1993 to allow the same 
substitution for covered congressional employees, Government 
Accountability Office employees, and Library of Congress 
employees. Counts certain service by an employee of the 
Executive Branch, Congress, GAO, or the Library of Congress 
while on active duty as a member of the National Guard or 
Reserves as service for that branch or agency for purposes of 
determining such employee's eligibility to take or substitute 
leave as provided under this Act. Introduced by Representative 
Maloney on January 22, 2009, and passed the House of 
Representatives on June 4, 2009. On October 19, 2009, the bill 
was referred to the Committee on Homeland Security and 
Governmental Affairs, Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of 
Columbia.
    H.R. 3913--H.R. 3913 amends the District of Columbia Code 
to direct the Mayor of the District of Columbia, in 
coordination with the commanding general of the District of 
Columbia National Guard, to establish a program that allows the 
Mayor to provide educational assistance to members of the 
District of Columbia National Guard who have satisfactorily 
completed their initial active duty service and agree to serve 
for at least 6 years. Introduced by Representative Norton on 
October 22, 2009, and passed the House of Representatives on 
June 28, 2010. On July 26, 2010, H.R. 3913 was referred to the 
Committee on Homeland Security and Governmental Affairs, 
Subcommittee on Oversight of Government Management, the Federal 
Workforce, and the District of Columbia.
    S. 50--The Clinical Social Workers' Recognition Act of 2009 
amends Federal law concerning Federal workers' compensation to 
authorize the use of clinical social workers to conduct 
evaluations to determine work-related emotional and mental 
illnesses. On March 20, 2009, S. 50 was referred to the 
Committee on Homeland Security and Governmental Affairs, 
Subcommittee on Oversight of Government Management, the Federal 
Workforce, and the District of Columbia.
    S. 354--The Federal Employees Paid Parental Leave Act of 
2009 allows Federal employees to substitute any available paid 
leave for any leave without pay available for either the: (1) 
birth of a child; or (2) placement of a child with the employee 
for either adoption or foster care. Makes available (subject to 
specified requirements) for any of the 12 weeks of leave an 
employee is entitled to for such purposes: (1) four eight 
administrative weeks of paid parental leave in connection with 
the birth or placement involved; and (2) any accumulated annual 
or sick leave. Furthermore, the bill authorizes the Director of 
the Office of Personnel Management to promulgate regulations to 
increase the amount of paid parental leave available to such an 
employee to a total of eight administrative workweeks, based on 
the consideration of: (1) the benefits to the Federal 
Government, including enhanced recruitment and employee 
retention; (2) the cost to the government; (3) trends in the 
private sector and in State and local governments; and (4) the 
Federal Government's role as a model employer. S. 354 amends 
the Congressional Accountability Act of 1995 and the Family and 
Medical Leave Act of 1993 to allow the same substitution for 
covered congressional employees, Government Accountability 
Office employees, and Library of Congress employees. On March 
20, 2009, S. 354 was referred to the Committee on Homeland 
Security and Governmental Affairs, Subcommittee on Oversight of 
Government Management, the Federal Workforce, and the District 
of Columbia.
    S. 763--The Mortgage and Rental Disaster Relief Act of 2009 
amends the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act to authorize the President to provide temporary 
assistance in the form of mortgage or rental payments to or on 
behalf of individuals and households who, as a result of 
financial hardship caused by a major disaster, have received 
written notice of dispossession or eviction from a residence 
because of a foreclosure of mortgage or lien, cancellation of 
sales contract, or lease termination, entered into before such 
disaster. S. 763 was referred to the Committee on Homeland 
Security and Governmental Affairs, Subcommittee on Oversight of 
Government Management, the Federal Workforce, and the District 
of Columbia on April 23, 2009.
    S. 1180--The Senior Executive Service Diversity Assurance 
Act of 2009 requires the Director of the Office of Personnel 
Management to establish within OPM the Senior Executive Service 
Resource Office. The legislation makes it the mission of the 
SES Resource Office to: (1) improve the efficiency, 
effectiveness, and productivity of the Senior Executive Service 
through policy formulation and oversight; (2) advance the 
professionalism of the SES; and (3) recruit qualified 
individuals from appropriate sources to ensure that the SES is 
reflective of the nation's diversity. The bill also sets forth 
the functions of the SES Resource Office with respect to the 
management, training, oversight, and recruitment activities of 
the SES. S. 1180 further revises the career appointments 
recruiting process to require agency heads to ensure diversity 
of executive resources boards and any subgroup or other 
evaluation panel related to the merit staffing process for 
career appointees by including members of racial and ethnic 
minority groups, women, and individuals with disabilities. 
Lastly, the legislation requires each Federal agency to submit 
to OPM a plan to enhance and maximize opportunities for the 
advancement and appointment of minorities, women, and 
individuals with disabilities to the SES. The bill was referred 
to the Committee on Homeland Security and Governmental Affairs, 
Subcommittee on Oversight of Government Management, the Federal 
Workforce, and the District of Columbia on July 16, 2009.
    S. 1228--S. 1228 modifies the rate of accrual of annual 
leave for administrative law judges, contract appeals board 
members, and immigration judges to accrue at the same rate as 
Senior Executive Service employees. S. 1228 was referred to the 
Committee on Homeland Security and Governmental Affairs, 
Subcommittee on Oversight of Government Management, the Federal 
Workforce, and the District of Columbia on July 16, 2009.
    S. 3341--The FEHBP Dependent Coverage Extension Act extends 
eligibility for coverage under the Federal Employees Health 
Benefits Program to a Federal employee's, annuitant's, or 
former spouse's dependent child who is under age 26, or 
incapable of self-support because of mental or physical 
disability which existed before age 26. The bill was referred 
to the Committee on Homeland Security and Governmental Affairs, 
Subcommittee on Oversight of Government Management, the Federal 
Workforce, and the District of Columbia on June 30, 2010.
    S. 3365--S. 3365 is a bill to amend section 5542 of title 
5, United States Code, to provide that any hours worked by 
Federal firefighters under a qualified trade-of-time 
arrangement shall be excluded for purposes of determinations 
relating to overtime pay. The bill was referred to the 
Subcommittee on Oversight of Government Management, the Federal 
Workforce, and the District of Columbia, Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia on June 30, 2010.

                            III. GAO Reports

    The following reports were issued by the Government 
Accountability Office at the request of the Chairman, and 
Senator Akaka, the Ranking Member of the Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia during the 111th Congress:
    Defense Logistics: Lack of Key Information May Impede DOD's 
Ability to Improve Supply Chain Management, GAO-09-150, January 
12, 2009.
    Veterinarian Workforce: Actions are Needed to Ensure 
Sufficient Capacity for Protecting Public and Animal Health, 
GAO-09-178, February 4, 2009.
    Nuclear Nonproliferation: Strengthened Oversight Needed to 
Address Proliferation and Management Challenges in IAEA's 
Technical Cooperation Program, GAO-09-275, March 5, 2009.
    Department of Defense: Additional Actions and Data Are 
Needed to Effectively Manage and Oversee DOD's Acquisition 
Workforce, GAO-09-342, March 25, 2009.
    Foreign Aid Reform: Comprehensive Strategy, Interagency 
Coordination, and Operational Improvements Would Bolster 
Current Efforts, GAO-09-192, April 17, 2009.
    DOD Personnel Clearances: Comprehensive Timeliness 
Reporting, Complete Clearance Documentation, and Quality 
Measures are needed to Further Improve the Clearance Process, 
GAO-09-400, May 19, 2009.
    Influenza Pandemic: Increased Agency Accountability Could 
Help Protect Federal Employees Serving the Public in the Event 
of a Pandemic, GAO-09-404, June 12, 2009.
    District of Columbia Public Schools: Important Steps Taken 
to Continue Reform Efforts, But Enhanced Planning Could Improve 
Implementation and Sustainability, GAO-09-619, June 26, 2009.
    Department of State: Key Transformation Practices Could 
Have Helped in Restructuring Arms Control and Nonproliferation 
Bureaus, GAO-09-738, July 15, 2009.
    Homeland Security: Federal Protective Service Should 
Improve Human Capital Planning and Better Communicate with 
Tenants, GAO-09-749, July 30, 2009.
    Contingency Contract Management: DOD Needs to Develop and 
Finalize Background Screening and Other Standard for Private 
Contractors, GAO-09-351, July 31, 2009.
    Equal Employment Opportunity: Pilot Projects Could Help 
Test Solutions to Long Standing Concern with EEO Complain 
Process, GAO-09-712, August 12, 2009.
    Emergency Communications: National Communications System 
Provides Programs for Priority Calling, but Planning for New 
Initiatives and Performance Measurement Could be Strengthened, 
GAO-09-822, August 28, 2009.
    Department of State: Additional Steps Needed to Address 
Continuing Staffing and Experience Gaps at Hardship Posts, GAO-
09-874, September 17, 2009.
    Department of State: Comprehensive Plan Needed to Address 
Persistent Foreign Language Shortfalls, GAO-09-955, September 
17, 2009.
    Department of State: Diplomatic Security's Recent Growth 
Warrants Strategic Review, GAO-10-156, November 12, 2009.
    Department of Homeland Security: Actions Taken Toward 
Management Integration, but a Comprehensive Strategy Is Still 
Needed, GAO-10-131, November 20, 2009.
    Defense Acquisitions: Further Actions Needed to Address 
Weaknesses in DOD's Management of Professional and Management 
Support Contracts, GAO-10-39, November 20, 2009.
    Homeland Security: Federal Protective Service's Contract 
Guard Program Requires More Oversight and Reassessment of Use 
of Contract Guards, GAO-10-341, April 13, 2010.
    International Security: DOD and State need to Improve 
Sustainment Planning and Monitoring and Evaluation for Section 
1206 and 1207 Assistance Programs, GAO-10-431, April 15, 2010.
    Language Access: Selected Agencies Can Improve Services to 
Limited English Proficient Persons, GAO-10-91, April 26, 2010.
    Nuclear Safety: Convention on Nuclear Safety is Viewed by 
Most Member Countries as Strengthening Safety Worldwide, GAO-
10-489, April 29, 2010.
    Department of Homeland Security: DHS Needs to 
Comprehensively Assess Its Foreign Language Needs and 
Capabilities and Identify Shortfalls, GAO-10-714, June 22, 
2010.
    Foreign Assistance: USAID Needs to Improve Its Strategic 
Planning to Address Current and Future Workforce Needs, GAO-10-
496, June 30, 2010.
    Personnel Practices: Conversion of Employees from Political 
to Career Positions May 2005-2009, GAO-10-688, June 28, 2010.
    Homeland Security: Addressing Weaknesses with Facility 
Security Committees Would Enhance Protection of Federal 
Facilities, GAO-10-901, August 5, 2010.
    Privacy: OPM Should Better Monitor Implementation of 
Privacy-Related Policies and Procedures for Background 
Investigation, GAO-10-849, September 7, 2010.
    U.S. Employment in the United Nations: State Department 
Needs to Enhance Reporting Requirements and Evaluate Its 
Efforts to Increase U.S. Representation, GAO-10-1028, September 
30, 2010.
    Managing For Results: Opportunities to Strengthen Agencies' 
Customer Service Efforts, GAO-11-44, October 27, 2010.
    National Security: An Overview of Professional Development 
Activities Intended to Improve Interagency Collaboration, GAO-
11-108, November 15, 2010.
    Federal Work/Life Programs: Agencies Generally Satisfied 
with OPM Assistance, but More Tracking and Information Sharing 
Needed, GAO-11-137, December 16, 2010.
                PERMANENT SUBCOMMITTEE ON INVESTIGATIONS


                          Chairman: Carl Levin


                  Ranking Minority Member: Tom Coburn

    The following is the Activities Report of the Permanent 
Subcommittee on Investigations during the 111th Congress:

                        I. HISTORICAL BACKGROUND


                      A. Subcommittee Jurisdiction

    The Permanent Subcommittee on Investigations was originally 
authorized by Senate Resolution 189 on January 28, 1948. At its 
creation in 1948, the Subcommittee was part of the Committee on 
Expenditures in the Executive Departments. The Subcommittee's 
records and broad investigative jurisdiction over government 
operations and national security issues, however, actually 
antedate its creation, since it was given custody of the 
jurisdiction of the former Special Committee to Investigate the 
National Defense Program (the so-called ``War Investigating 
Committee'' or ``Truman Committee''), chaired by Senator Harry 
S. Truman during the Second World War and charged with exposing 
waste, fraud, and abuse in the war effort and war profiteering. 
Today, the Subcommittee is part of the Committee on Homeland 
Security and Governmental Affairs.\1\
---------------------------------------------------------------------------
    \1\In 1952, the parent committee's name was changed to the 
Committee on Government Operations. It was changed again in early 1977, 
to the Committee on Governmental Affairs, and again in 2005, to the 
Committee on Homeland Security and Governmental Affairs, its present 
title.
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    The Subcommittee has had 10 chairmen: Senators Homer 
Ferguson of Michigan (1948), Clyde R. Hoey of North Carolina 
(1949-1952), Joseph R. McCarthy of Wisconsin (1953-1954), John 
L. McClellan of Arkansas (1955-1972), Henry M. Jackson of 
Washington (1973-1978), Sam Nunn of Georgia (1979-1980 and 
1987-1994), William V. Roth of Delaware (1981-1986 and 1995-
1996), Susan M. Collins of Maine (1997-2001); Norm Coleman of 
Minnesota (2003-2007); and Carl Levin of Michigan (2001-2002 
and 2007-present).
    Until 1957, the Subcommittee's jurisdiction focused 
principally on waste, inefficiency, impropriety, and illegality 
in government operations. Its jurisdiction then expanded over 
time, today encompassing investigations within the broad ambit 
of the parent committee's responsibility for matters relating 
to the efficiency and economy of operations of all branches of 
the government, including matters related to: (a) waste, fraud, 
abuse, malfeasance, and unethical practices in government 
contracting and operations; (b) organized criminal activities 
affecting interstate or international commerce; (c) criminal 
activity affecting the national health, welfare, or safety, 
including investment fraud, commodity and securities fraud, 
computer fraud, and offshore abuses; (d) criminality or 
improper practices in labor-management relations; (e) the 
effectiveness of present national security methods, staffing 
and procedures, and U.S. relationships with international 
organizations concerned with national security; (f) energy 
shortages, energy pricing, management of government-owned or 
controlled energy supplies; and relationships with oil 
producing and consuming countries; and (g) the operations and 
management of Federal regulatory policies and programs. While 
retaining the status of a subcommittee of a standing committee, 
the Subcommittee has long exercised its authority on an 
independent basis, selecting its own staff, issuing its own 
subpoenas, and determining its own investigatory agenda.
    The Subcommittee acquired its sweeping jurisdiction in 
several successive stages. In 1957--based on information 
developed by the Subcommittee--the Senate passed a Resolution 
establishing a Select Committee on Improper Activities in the 
Labor or Management Field. Chaired by Senator McClellan, who 
also chaired the Subcommittee at that time, the Select 
Committee was composed of eight Senators--four of whom were 
drawn from the Subcommittee on Investigations and four from the 
Committee on Labor and Public Welfare. The Select Committee 
operated for 3 years, sharing office space, personnel, and 
other facilities with the Permanent Subcommittee. Upon its 
expiration in early 1960, the Select Committee's jurisdiction 
and files were transferred to the Subcommittee on 
Investigations, greatly enlarging the latter body's 
investigative authority in the labor-management area.
    The Subcommittee's jurisdiction expanded further during the 
1960s and 1970s. In 1961, for example, it received authority to 
make inquiries into matters pertaining to organized crime and, 
in 1963, held the famous Valachi hearings examining the inner 
workings of the Italian Mafia. In 1967, following a summer of 
riots and other civil disturbances, the Senate approved a 
Resolution directing the Subcommittee to investigate the causes 
of this disorder and to recommend corrective action. In January 
1973, the Subcommittee acquired its national security mandate 
when it merged with the National Security Subcommittee. With 
this merger, the Subcommittee's jurisdiction was broadened to 
include inquiries concerning the adequacy of national security 
staffing and procedures, relations with international 
organizations, technology transfer issues, and related matters. 
In 1974, in reaction to the gasoline shortages precipitated by 
the Arab-Israeli war of October 1973, the Subcommittee acquired 
jurisdiction to investigate the control and management of 
energy resources and supplies as well as energy pricing issues.
    In 1997, the full Committee on Governmental Affairs was 
charged by the Senate to conduct a special examination into 
illegal or improper activities in connection with Federal 
election campaigns during the 1996 election cycle. The 
Permanent Subcommittee provided substantial resources and 
assistance to this investigation, contributing to a greater 
public understanding of what happened, to subsequent criminal 
and civil legal actions taken against wrongdoers, and to 
enactment of campaign finance reforms in 2001.
    In 1998, the Subcommittee marked the 50th anniversary of 
the Truman Committee's conversion into a permanent subcommittee 
of the U.S. Senate.\2\ Since then, the Subcommittee has 
developed particular expertise in complex financial matters, 
examining the key causes of the 2008 financial crisis, 
structured finance abuses, financial fraud, unfair credit 
practices, money laundering, commodity speculation, and a wide 
range of offshore and tax haven abuses. It has also focused on 
issues involving health care fraud, foreign corruption, and 
waste, fraud and abuse in government programs. In the half-
century of its existence, the Subcommittee's many successes 
have made clear to the Senate the importance of retaining a 
standing investigatory body devoted to keeping government not 
only efficient and effective, but also honest and accountable.
---------------------------------------------------------------------------
    \2\This anniversary also marked the first date upon which internal 
Subcommittee records generally began to become available to the public. 
Unlike most standing committees of the Senate whose previously 
unpublished records open after a period of 20 years has elapsed, the 
Permanent Subcommittee on Investigations, as an investigatory body, may 
close its records for 50 years to protect personal privacy and the 
integrity of the investigatory process. With this 50th anniversary, the 
Subcommittee's earliest records, housed in the Center for Legislative 
Archives at the National Archives and Records Administration, began to 
open seriatim. The records of the predecessor committee--the Truman 
Committee--were opened by Senator Nunn in 1980.
---------------------------------------------------------------------------

                     B. Subcommittee Investigations

    Armed with its broad jurisdictional mandate, the 
Subcommittee has conducted investigations into a wide variety 
of topics of public concern, ranging from corporate misconduct, 
including the Senate's most in-depth investigation of the Enron 
Corporation, to unfair energy prices, predatory lending, and 
tax evasion. Over the years, the Subcommittee has also 
conducted investigations into criminal wrongdoing, including 
money laundering, the narcotics trade, child pornography, labor 
racketeering, and organized crime activities. In addition, the 
Subcommittee has investigated a wide range of allegations of 
waste, fraud, and abuse in government programs and consumer 
protection issues, addressing problems ranging from unfair 
credit card practices to health care fraud. Most recently, the 
Subcommittee conducted Congress' most in-depth examination of 
the 2008 financial crisis, holding four hearings and issuing a 
750-page bipartisan report.

(1) Historical Highlights
    The Subcommittee's investigatory record as a permanent 
Senate body began under the Chairmanship of Republican Senator 
Homer Ferguson and his Chief Counsel (and future Attorney 
General and Secretary of State) William P. Rogers, as the 
Subcommittee inherited the Truman Committee's role in 
investigating fraud and waste in U.S. Government operations. 
This investigative work became particularly colorful under the 
chairmanship of Senator Clyde Hoey, a North Carolina Democrat 
who took the chair from Senator Ferguson after the 1948 
elections. The last U.S. Senator to wear a long frock coat and 
wing-tipped collar, Mr. Hoey was a distinguished Southern 
gentleman of the old school. Under his leadership, the 
Subcommittee won national attention for its investigation of 
the so-called ``five percenters,'' notorious Washington 
lobbyists who charged their clients 5 percent of the profits 
from any Federal contracts they obtained on the client's 
behalf. Given the Subcommittee's jurisdictional inheritance 
from the Truman Committee, it is perhaps ironic that the ``five 
percenters'' investigation raised allegations of bribery and 
influence-peddling that reached right into the White House and 
implicated members of President Truman's staff. In any event, 
the fledgling Subcommittee was off to a rapid start.
    What began as colorful soon became contentious. When 
Republicans returned to the Majority in the Senate in 1953, 
Wisconsin's junior Senator, Joseph R. McCarthy, became the 
Subcommittee's Chairman. Two years earlier, as Ranking Minority 
Member, Senator McCarthy had arranged for another Republican 
Senator, Margaret Chase Smith of Maine, to be removed from the 
Subcommittee. Senator Smith's offense, in Senator McCarthy's 
eyes, was her issuance of a ``Declaration of Conscience'' 
repudiating those who made unfounded charges and used character 
assassination against their political opponents. Although 
Senator Smith had carefully declined to name any specific 
offender, her remarks were universally recognized as criticism 
of Senator McCarthy's accusations that communists had 
infiltrated the State Department and other government agencies. 
Senator McCarthy retaliated by engineering Senator Smith's 
removal from the Subcommittee, replacing her with the newly-
elected Senator from California, Richard M. Nixon.
    Upon becoming Subcommittee Chairman, Senator McCarthy 
staged a series of highly publicized anti-communist 
investigations, culminating in an inquiry into communism within 
the U.S. Army, which became known as the Army-McCarthy 
hearings. During the latter portion of those hearings, in which 
the parent Committee examined the Wisconsin Senator's attacks 
on the Army, Senator McCarthy recused himself, leaving South 
Dakota Senator Karl Mundt to serve as Acting Chairman of the 
Subcommittee. Gavel-to-gavel television coverage of the 
hearings helped turn the tide against Senator McCarthy by 
raising public concern about his treatment of witnesses and 
cavalier use of evidence. In December 1954, in fact, the Senate 
censured Senator McCarthy for unbecoming conduct. In the 
following year, the Subcommittee adopted new rules of procedure 
that better protected the rights of witnesses. The Subcommittee 
also strengthened the rules ensuring the right of both parties 
on the Subcommittee to appoint staff, initiate and approve 
investigations, and review all information in the 
Subcommittee's possession.
    In 1955, Senator John McClellan of Arkansas began 18 years 
of service as Chairman of the Permanent Subcommittee on 
Investigations. Senator McClellan appointed a young Robert F. 
Kennedy as the Subcommittee's Chief Counsel. That same year, 
Members of the Subcommittee were joined by Members of the 
Senate Labor and Public Welfare Committee on a special 
committee to investigate labor racketeering. Chaired by Senator 
McClellan and staffed by Robert Kennedy and other Subcommittee 
staff members, this special committee directed much of its 
attention to criminal influence over the Teamsters Union, most 
famously calling Teamsters' leaders Dave Beck and Jimmy Hoffa 
to testify. The televised hearings of the special committee 
also introduced Senators Barry Goldwater and John F. Kennedy to 
the nation, as well as leading to passage of the Landrum-
Griffin Labor Act.
    After the special committee completed its work, the 
Permanent Subcommittee on Investigations continued to 
investigate organized crime. In 1962, the Subcommittee held 
hearings during which Joseph Valachi outlined the activities of 
La Cosa Nostra, or the Mafia. Former Subcommittee staffer 
Robert Kennedy--who had by then become Attorney General in his 
brother's Administration--used this information to prosecute 
prominent mob leaders and their accomplices. The Subcommittee's 
investigations also led to passage of major legislation against 
organized crime, most notably the Racketeer Influenced and 
Corrupt Organizations (RICO) provisions of the Crime Control 
Act of 1970. Under Chairman McClellan, the Subcommittee also 
investigated fraud in the purchase of military uniforms, 
corruption in the Department of Agriculture's grain storage 
program, securities fraud, and civil disorders and acts of 
terrorism. In addition, from 1962 to 1970, the Subcommittee 
conducted an extensive probe of political interference in the 
awarding of government contracts for the Pentagon's ill-fated 
TFX (``tactical fighter, experimental'') aircraft. In 1968, the 
Subcommittee also examined charges of corruption in U.S. 
servicemen's clubs in Vietnam and elsewhere around the world.
    In 1973, Senator Henry ``Scoop'' Jackson, a Democrat from 
Washington, replaced Senator McClellan as the Subcommittee's 
Chairman. During his tenure, recalled Chief Clerk Ruth Young 
Watt--who served in this position from the Subcommittee's 
founding until her retirement in 1979--Ranking Minority Member 
Charles Percy, an Illinois Republican, became more active on 
the Subcommittee than Chairman Jackson, who was often 
distracted by his Chairmanship of the Interior Committee and 
his active role on the Armed Services Committee.\3\ Senator 
Percy also worked closely with Georgia Democrat Sam Nunn, a 
Subcommittee member who subsequently succeeded Senator Jackson 
as Subcommittee Chairman in 1979. As Chairman, Senator Nunn 
continued the Subcommittee's investigations into the role of 
organized crime in labor-management relations and also 
investigated pension fraud.
---------------------------------------------------------------------------
    \3\It had not been uncommon in the Subcommittee's history for the 
Chairman and Ranking Minority Member to work together closely despite 
partisan differences, but Senator Percy was unusually active while in 
the Minority--a role that included his chairing an investigation of the 
hearing aid industry.
---------------------------------------------------------------------------
    Regular reversals of political fortunes in the Senate 
during the 1980s and 1990s saw Senator Nunn trade the 
chairmanship three times with Delaware Republican William Roth. 
Senator Nunn served from 1979 to 1980 and again from 1987 to 
1995, while Senator Roth served from 1981 to 1986, and again 
from 1995 to 1996. These 15 years saw a strengthening of the 
Subcommittee's bipartisan tradition in which investigations 
were initiated by either the Majority or Minority and fully 
supported by the entire Subcommittee. For his part, Senator 
Roth led a wide range of investigations into commodity 
investment fraud, offshore banking schemes, money laundering, 
and child pornography. Senator Nunn led inquiries into Federal 
drug policy, the global spread of chemical and biological 
weapons, abuses in Federal student aid programs, computer 
security, airline safety, and health care fraud. Senator Nunn 
also appointed the Subcommittee's first female counsel, 
Eleanore Hill, who served as Chief Counsel to the Minority from 
1982 to 1986 and then as Minority Chief Counsel from 1987 to 
1995.

(2) More Recent Investigations
    In January 1997, Republican Senator Susan Collins of Maine 
became the first woman to chair the Permanent Subcommittee on 
Investigations. Senator John Glenn of Ohio became the Ranking 
Minority Member. After Senator Glenn's retirement, Michigan 
Democrat Carl Levin succeeded him in January 1999, as the 
Ranking Minority Member. During Senator Collins' chairmanship, 
the Subcommittee conducted a number of investigations affecting 
Americans in their day-to-day lives, including investigations 
into mortgage fraud, deceptive mailings and sweepstakes 
promotions, phony credentials obtained through the Internet, 
day trading of securities, and securities fraud on the 
Internet. Senator Levin, while Ranking Minority Member, 
initiated an investigation into money laundering. At his 
request, the Subcommittee held hearings in 1999 on money 
laundering issues affecting private banking services provided 
to wealthy individuals, and in 2001, on how major U.S. banks 
providing correspondent accounts to offshore banks were being 
used to advance money laundering and other criminal schemes. 
Senator Collins chaired the Subcommittee until June 2001, when 
the Senate Majority party changed hands, and Senator Levin 
assumed the chairmanship. Senator Collins, in turn, became the 
Ranking Minority Member.
    During the 107th Congress, both Senator Collins and Senator 
Levin chaired the Subcommittee. In her first 6 months chairing 
the Subcommittee at the start of the 107th Congress, Senator 
Collins held hearings examining issues related to cross border 
fraud, the improper operation of tissue banks, and Federal 
programs designed to fight diabetes. Senator Levin then assumed 
the chairmanship and, as his first major effort, led an 18-
month bipartisan investigation into the Enron Corporation, 
which had recently collapsed into bankruptcy. As part of that 
investigation, the Subcommittee reviewed over 2 million pages 
of documents, conducted more than 100 interviews, held four 
hearings, and issued three bipartisan reports focusing on the 
role played by Enron's Board of Directors, Enron's use of tax 
shelters and structured financial instruments, and how major 
U.S. financial institutions contributed to Enron's accounting 
deceptions, corporate abuses, and ultimate collapse. The 
Subcommittee's investigative work contributed to passage of the 
Sarbanes-Oxley Act which enacted accounting and corporate 
reforms in July 2002. In addition, Senator Levin continued the 
money laundering investigation initiated while he was Ranking 
Minority Member, and the Subcommittee's work contributed to 
enactment of landmark reforms strengthening U.S. anti-money 
laundering laws in the 2001 PATRIOT Act. Also during the 107th 
Congress, the Subcommittee opened new investigations into 
offshore tax abuses, border security, and abusive practices 
related to the pricing of gasoline and other fuels.
    In January 2003, at the start of the 108th Congress, after 
the Senate Majority party again changed hands, Senator Collins 
was elevated to Chairman of the full Committee on Governmental 
Affairs, and Republican Senator Norm Coleman of Minnesota 
became Subcommittee Chairman. Over the next 2 years, Senator 
Coleman held hearings on topics of national and global concern 
including illegal file sharing on peer-to-peer networks, 
abusive practices in the credit counseling industry, the 
dangers of purchasing pharmaceuticals over the Internet, 
Federal contractors with billions of dollars in unpaid taxes, 
SARS preparedness, border security, and how Saddam Hussein 
abused the United Nations Oil for Food Program. At the request 
of Senator Levin, then Ranking Minority Member, the 
Subcommittee also examined how some U.S. accounting firms, 
banks, investment firms, and tax lawyers were designing, 
promoting, and implementing abusive tax shelters across the 
country; and how some U.S. financial institutions were failing 
to comply with anti-money laundering controls mandated by the 
PATRIOT Act, using as a case history Riggs Bank accounts 
involving Augusto Pinochet, the former President of Chile, and 
Equatorial Guinea, an oil-rich country in Africa.
    During the 109th Congress, Senator Coleman held additional 
hearings on abuses associated with the United Nation's Oil for 
Food Program, and initiated a series of hearings on Federal 
contractors who were paid with taxpayer dollars but failed to 
pay their own taxes, resulting in billions of dollars in unpaid 
taxes. He also held hearings on border security issues, 
securing the global supply chain, Federal travel abuses, and 
consumers hurt by abusive tax refund loans or unfair energy 
pricing. At Senator Levin's request, the Subcommittee held 
hearings on offshore tax abuses responsible for $100 billion in 
unpaid taxes each year, and on U.S. vulnerabilities caused by 
States forming 2 million companies each year with hidden 
owners.
    During the 110th Congress, in January 2007, Senator Levin 
once again became Subcommittee Chairman. He focused on 
investigations into complex financial and tax topics, including 
unfair credit card practices, tax and accounting mismatches 
involving executive stock options, excessive speculation in the 
natural gas and crude oil markets, and offshore tax abuses 
involving tax haven banks and non-U.S. persons dodging payment 
of U.S. taxes on U.S. stock dividends. The Subcommittee's work 
contributed to enactment of two landmark bills, the Credit Card 
Accountability Responsibility and Disclosure Act (Credit CARD 
Act) which reformed credit card practices, and the Foreign 
Account Tax Compliance Act (FATCA) which tackled offshore tax 
issues. At the request of Senator Coleman, then Ranking 
Minority Member, the Subcommittee also conducted investigations 
into Medicare and Medicaid health care providers who cheat on 
their taxes, fraudulent Medicare claims involving deceased 
doctors or inappropriate diagnosis codes, U.S. dirty bomb 
vulnerabilities, Federal payroll tax abuses, abusive practices 
involving transit benefits, and problems involving the United 
Nations Development Program.
    During the 111th Congress, Senator Levin continued as 
Chairman of the Subcommittee, while Senator Tom Coburn joined 
the Subcommittee as its Ranking Minority Member. During the 
111th Congress, the Subcommittee dedicated much of its 
resources to a bipartisan investigation into key causes of the 
2008 financial crisis, looking in particular at the role of 
high-risk home loans, regulatory failures, inflated credit 
ratings, and high-risk, conflicts-ridden financial products 
designed and sold by investment banks. The Subcommittee held 
four hearings, released thousands of documents, and produced 
bipartisan findings of fact and recommendations. In addition, 
the Subcommittee held hearings on excessive speculation in the 
wheat market, tax haven banks that helped U.S. clients evade 
U.S. taxes, keeping foreign corruption out of the United 
States, and social security disability fraud.

          II. Subcommittee Hearings During the 111th Congress


A. Tax Haven Banks and U.S. Tax Compliance--Obtaining the Names of U.S. 
        Clients with Swiss Accounts (March 4, 2009)

    The Subcommittee's first hearing in the 111th Congress 
focused on the issue of tax haven banks that facilitate U.S. 
tax evasion. The Subcommittee has estimated that U.S. taxpayers 
using offshore tax schemes cost an estimated revenue loss of 
$100 billion in unpaid taxes each year. Offshore tax abuses 
also undermine the integrity of the Federal tax system and 
shift the tax burden from high income taxpayers onto the middle 
class. In the previous Congress, in 2008, the Subcommittee held 
2 days of hearings and released a bipartisan staff report 
demonstrating how two offshore banks, UBS of Switzerland and 
LGT Bank of Liechtenstein, had actively facilitated tax dodging 
by U.S. taxpayers and used offshore secrecy laws to hide the 
actions of both their clients and their own personnel.
    In March 2009, the Subcommittee continued its tax haven 
bank investigation by holding a hearing on what the U.S. 
Government was doing to stop UBS from aiding and abetting U.S. 
tax evasion and to obtain the names of U.S. taxpayers with 
hidden UBS accounts in Switzerland. At the hearing, the 
Subcommittee released a number of UBS documents showing the 
extent of the bank's efforts to help U.S. clients evade U.S. 
taxes. One 2004 UBS internal report indicated that 32 UBS Swiss 
bankers had traveled to the United States and made 3,800 client 
visits in a single year, and that the bank then had a total of 
52,000 Swiss account relationships with U.S. residents who had 
not disclosed their accounts to the Internal Revenue Service 
(IRS).
    The hearing took testimony from two panels of witnesses. On 
the first panel, John A. DiCicco, Acting Assistant Attorney 
General for the Tax Division at the Department of Justice 
(DOJ), and Douglas H. Shulman, IRS Commissioner, described the 
criminal and civil legal actions taken by the U.S. Government 
with respect to UBS. They explained that criminal proceedings 
had led UBS, in February 2009, to enter into a deferred 
prosecution agreement with DOJ, admit to participation in a 
scheme to defraud the United States of tax revenue, pay a fine 
of $780 million, and turn over the names of 250-300 U.S. 
clients who had participated in the fraud. Mr. DiCicco and IRS 
Commissioner Shulman also described ongoing civil proceedings 
in which the U.S. Government was attempting to enforce a court-
approved John Doe summons to obtain from UBS the names and 
account documentation for all remaining U.S. clients with 
undisclosed Swiss accounts.
    The second panel took testimony from the Chief Financial 
Officer of UBS Global Wealth Management and Swiss Bank, Mark 
Branson, who had traveled from Zurich, Switzerland to testify. 
Mr. Branson acknowledged and expressed regret for the bank's 
past conduct and repeated the pledge made by UBS at an earlier 
Subcommittee hearing that it would close the offending accounts 
and no longer open Swiss accounts for U.S. clients without 
notifying the IRS. This pledge represented the first time a 
major bank in a tax haven jurisdiction promised to no longer 
open accounts for U.S. clients without alerting the IRS. While 
UBS also promised to cooperate with the U.S. investigation into 
its actions, Mr. Branson testified that, due to Swiss bank 
secrecy laws, it might not be able to disclose any additional 
U.S. client names to the United States. He explained that the 
Swiss government had intervened in the John Doe proceedings to 
prevent any additional disclosure of client information and had 
asserted that, instead of the John Doe summons, the United 
States ought to be using the procedures set up under the U.S.-
Swiss tax treaty to obtain the information it wanted.
    The witnesses agreed, however, that the U.S.-Swiss tax 
treaty, like other tax treaties and tax information exchange 
agreements around the world, was not designed to handle 
inquiries into taxpayers whose names were unknown. As the IRS 
explained in a court pleading, the Swiss have consistently 
applied the tax treaty ``to provide the [IRS] assistance only 
in response to specific requests that name a particular 
taxpayer.'' In the UBS case, for example, after the United 
States made a request under the treaty for the names of the 
52,000 UBS Swiss account relationships with U.S. clients, the 
Swiss government determined that only 12 accountholders met the 
treaty standards and could be disclosed to the United States. 
In addition, the Swiss allowed those 12 to appeal its 
determination, leading to lengthy proceedings in Swiss courts. 
The IRS stated in a court pleading 7 months after making its 
request: ``The Swiss Government has not provided any records 
sought under the Treaty Request, and it is not clear when, if 
ever, it will.'' The Swiss government was invited to appear at 
the Subcommittee hearing to discuss the UBS matter and the 
pending U.S. treaty request, but it declined to send a 
representative.
    Later in 2009, after the hearing, Switzerland and the 
United States reached agreement on a new tax treaty with 
slightly broader terms and, in August 2009, the Swiss agreed to 
turn over the names of an additional, estimated 4,400 UBS 
clients. In return, the United States agreed to forgo obtaining 
the names of the remaining tens of thousands of U.S. clients 
with undisclosed UBS accounts in Switzerland. Over the 
following 2 years, the 4,400 names were slowly provided by the 
Swiss to the United States.
    The Subcommittee's work on abusive practices by tax haven 
banks contributed to enactment by Congress, in 2010, of the 
Foreign Account Tax Compliance Act (FATCA) which, among other 
provisions, requires foreign banks to disclose all accounts 
opened by U.S. persons or pay a 30 percent tax on income 
generated by U.S. investments held by those banks. In addition, 
the Subcommittee's work contributed to a world or wide effort 
to pressure tax havens to stop using secrecy laws to facilitate 
tax evasion. In response to this worldwide campaign, by 2010, 
virtually all offshore jurisdictions around the world, 
including Switzerland, stated publicly they would no longer use 
secrecy laws to facilitate tax evasion and committed to 
adopting international standards on tax information exchange. 
Implementation of those pledges continues.

B. Excessive Speculation in the Wheat Market (July 21, 2009)

    Since 2001, the Subcommittee has investigated the pricing 
of energy commodities, such as crude oil, natural gas, and 
gasoline; allegations of price manipulation and excessive 
speculation; and actions taken by the Commodity Futures Trading 
Commission (CFTC) and the commodity exchanges to police 
commodity markets. In 2009, the Subcommittee extended its 
investigation of commodity markets by releasing a 270-page 
bipartisan staff report and holding a hearing on pricing and 
speculation issues involving wheat.
    As part of its investigation, the Subcommittee compiled and 
examined millions of trading records from the Chicago 
Mercantile Exchange, Kansas City Exchange, Minneapolis Grain 
Exchange, the CFTC, and others to track and analyze trends in 
wheat prices. The data showed that commodity index traders--
traders who are not producers or consumers of wheat, but buy 
wheat futures to help offset their financial exposure from 
selling commodity index instruments to third parties--had 
injected billions of dollars, in the aggregate, into the wheat 
futures market over 6 years. The data also showed that 
commodity index traders had increased their holdings from a 
total of about 30,000 wheat contracts in 2004, up to 220,000 
contracts in 2008, enlarging their market share so that, in 
each year since 2006, commodity index traders held between 35 
percent and 50 percent of all outstanding wheat futures 
contracts on the Chicago Mercantile Exchange. The investigation 
concluded that, as a result, commodity index traders had, in 
the aggregate, pushed up futures prices, disrupted the normal 
relationship between futures prices and cash prices for wheat, 
and caused farmers, grain elevators, grain processors, 
consumers, and others to experience significant unwarranted 
costs and price risks. The excessive speculation engaged in by 
index traders had also made it more difficult to use the 
futures market to protect against price changes.
    The report released by the Subcommittee on June 24, 2009, 
included bipartisan findings of fact and recommendations. One 
of the key findings was that significant and persuasive 
evidence indicated that one of the major reasons for the recent 
wheat market problems was the unusually high level of 
speculation in the Chicago wheat futures market due to 
purchases of futures contracts by index traders offsetting 
sales of commodity index instruments. To diminish and prevent 
this type of excessive speculation in the Chicago wheat futures 
market, the investigation recommended that the CFTC phase out 
exemptions and waivers that had allowed some index traders to 
operate outside of the trading limits designed to prevent 
excessive speculation. That action would then enable the CFTC 
to impose on index traders the same position limits for wheat 
contracts that apply to other speculators, and rein in the 
excessive speculation disrupting wheat prices. In addition, the 
investigation recommended that the CFTC analyze the impact of 
commodity index trading on other commodities, including crude 
oil, to determine if excessive speculation was distorting 
prices.
    The hearing took testimony from three panels of witnesses 
who reacted to the Subcommittee's investigation and report, and 
described their own wheat market experiences and analysis of 
wheat prices. The first witness was CFTC Chairman Gary Gensler 
who described the CFTC's concern with preventing excessive 
speculation from distorting commodity prices and commercial 
hedging efforts. The second panel heard from four witnesses 
with expertise on commodity issues, including a wheat producer, 
wheat user, wheat trader, and consumer protection group. The 
panelists were Thomas Coyle, Vice President and General Manager 
of Chicago and Illinois River Marketing LLC, Nidera, Inc., and 
Chairman of the National Grain and Feed Association; Hayden 
Wands, Director of Procurement for the Sara Lee Corporation and 
Chairman of the Commodity and Agricultural Policy of the 
American Bakers Association; Steven H. Strongin, head of the 
Global Investment Research Division for Goldman Sachs Group, 
Inc.; and Mark Cooper, Director of Research for the Consumer 
Federation of America. The third and final panel heard from 
Charles P. Carey, Vice Chairman of the CME Group, which manages 
the Chicago Mercantile Exchange, the largest wheat futures 
market in the world.
    The witnesses generally agreed that commodity index traders 
had an increased presence in the wheat market, the wheat market 
was experiencing increased price volatility and hedging 
failures, and recent trends showed an ongoing disconnect 
between wheat futures and cash prices, but they often disagreed 
on the causes of those problems. The wheat producer, user and 
consumer witnesses saw commodity index traders as responsible 
for excessive speculation and price distortions, while the 
wheat trader and exchange operator did not. The CFTC chairman 
promised additional study.
    In response to the Subcommittee's work, the CFTC 
intensified its review of wheat price convergence problems and 
revoked some position limit waivers and exemptions that had 
been granted to wheat index traders. The CME Group tried other 
remedies as well, but index traders continued to dominate the 
wheat markets and wheat pricing problems continued to plague 
its market. In 2010, Congress enacted the Dodd-Frank Wall 
Street Reform and Consumer Protection Act which, among other 
provisions, mandated stronger regulation of all commodity 
markets and related commodity derivatives, provided stronger 
tools to restrain excessive speculation, and mandated the 
imposition of position limits on commodity traders.

C. Keeping Foreign Corruption out of the United States: Four Case 
        Histories (February 4, 2010)

    Since 2003, the Subcommittee has conducted a series of 
investigations into U.S. practices that may contribute, 
wittingly or unwittingly, to corruption in foreign countries. 
In February 2010, the Subcommittee held a hearing and released 
a 330-page bipartisan staff report showing how politically 
powerful foreign officials, their relatives, and close 
associates--referred to as Politically Exposed Persons (PEPs) 
in international agreements--have funneled millions of dollars 
in illicit money into the United States using the services of 
U.S. lawyers, real estate and escrow agents, lobbyists, and 
other professionals. During the course of this investigation, 
the Subcommittee reviewed millions of pages of documents, 
conducted more than 100 interviews, and traced millions of 
dollars in suspect funds.
    The investigation developed four case histories, involving 
PEPs from Equatorial Guinea, Gabon, Nigeria, and Angola, to 
expose some of the tactics being used to bring suspect funds 
into the United States. The case histories showed, for example, 
how PEPs used U.S. shell corporation, law office, trust, and 
family bank accounts to bring suspect funds into the United 
States; used U.S. real estate and escrow agents to purchase 
lavish residences and aircraft with suspect funds; and used a 
U.S. lobbyist to distribute suspect funds across the country 
and around the globe. Another case history showed how U.S. 
banks allowed PEPs to wire transfer suspect funds into the 
United States, including funds from around the globe from a 
known arms dealer and felon; millions of dollars that the head 
of a central bank attempted to transfer from the central bank 
to a private account in the United States; and funds from a 
private bank that catered to PEPs in a country known for 
corruption.
    The investigation also showed that many of the U.S. 
professionals assisting PEPs, including lawyers, real estate 
and escrow agents, and lobbyists, were exempt from anti-money 
laundering (AML) laws which would require them to know their 
customers, evaluate the source of funds transferred into the 
United States, and report suspicious activity to law 
enforcement. The investigation offered a number of 
recommendations to help keep foreign corruption out of the 
United States, including by revoking the AML exemptions granted 
to real estate and escrow agents, identifying the owners of 
U.S. shell corporations, and tightening controls on shell 
company and law office accounts.
    The hearing took testimony from three panels of witnesses. 
The first panel called two lawyers and a lobbyist who assisted 
PEPs in Equatorial Guinea and Gabon to bring suspect funds into 
the United States. At the hearing, all three panelists asserted 
their Fifth Amendment rights under the Constitution and 
declined to testify.
    The two lawyers, Michael Jay Berger and George I. Nagler, 
had each worked for Teodoro Obiang, the 40-year-old son of the 
President of Equatorial Guinea who was under investigation by 
the Justice Department for corruption and other misconduct. He 
was also an Equatorial Guinea Cabinet Minister and a PEP in his 
own right. Although they did not work together, the two 
attorneys formed five California shell corporations for Mr. 
Obiang's use, with names like Beautiful Vision, Unlimited 
Horizon, and Sweetwater. The lawyers then opened accounts for 
those shell corporations at multiple banks, and allowed Mr. 
Obiang to transfer funds into and out of them to advance his 
interests. In addition, each attorney allowed Mr. Obiang to 
wire millions of dollars into the attorney's law office or 
attorney-client bank accounts and forwarded the funds to other 
accounts controlled by Mr. Obiang, thereby disguising the 
origin of the funds as from Equatorial Guinea, a country many 
banks viewed as high risk.
    The remaining panelist, Jeffrey C. Birrell, served as a 
registered lobbyist for the Republic of Gabon. From 2003 until 
at least 2007, he worked closely with Omar Bongo, the now 
deceased President of Gabon, to buy U.S.-made armored vehicles 
and obtain U.S. Government permission to buy six C-130 military 
cargo aircraft from Saudi Arabia to support the Bongo regime. 
In connection with those projects, more than $18 million was 
wire transferred from Gabon into Mr. Birrell's U.S. corporate 
bank accounts. Part of that money came from President Bongo's 
personal account; most came from an entity in Gabon called 
``Ayira.'' At President Bongo's direction, Mr. Birrell spent 
millions of dollars of the Gabon money on the armored car and 
aircraft projects, including wiring more than $1 million to 
various ``consultants'' around the world and at least another 
$4 million to a Bongo advisor with accounts in Brussels and 
Paris. When the aircraft deal fell through, Mr. Birrell wired 
over $9 million of the Ayira money to an account in President 
Bongo's name--not in Gabon--but in the country of Malta. Mr. 
Birrell's corporate bank accounts became conduits for multi-
million-dollar suspicious wire transfers directed by President 
Omar Bongo through the U.S. financial system.
    The second panel of witnesses heard from a U.S. real estate 
agent, escrow agent, and two banks that facilitated suspect PEP 
transactions in the United States. The real estate agent, Neal 
Baddin, helped Teodoro Obiang purchase a $30 million mansion in 
Malibu, in part by accepting multiple wire transfers from 
Equatorial Guinea into an escrow account at a U.S. bank. Mr. 
Baddin testified that he had no legal obligation to inquire 
into the source of those funds or evaluate whether they might 
be the proceeds of crime. Mr. Obiang also bought a $38.5 
million U.S.-built Gulfstream jet. After one U.S. escrow agent, 
as an AML precaution, refused to proceed with the aircraft 
purchase without more information about the source of the 
funds, another escrow agent, Insured Aircraft Title Services 
Inc. (IATS), stepped in and completed the transaction with no 
questions asked. The second panelist, Brenda K. Cobb, an IATS 
Vice President, explained that U.S. regulations currently 
exempted escrow agents from any AML obligations and so did not 
require the company to screen client funds. Both Mr. Baddin and 
Ms. Cobb testified that, if the law had required their firms to 
take AML precautions, their firms would have complied with the 
law.
    The second panel also heard from two banks that facilitated 
PEP transactions in the United States. William J. Fox was 
Senior Vice-President and Global Anti-Money, Laundering and 
Economic Sanctions Executive of Bank of America; Wiecher H. 
Mandemaker was the Director of General Compliance, Personal 
Financial Services, Anti-Money Laundering Compliance, for HSBC 
Bank USA. Mr. Fox expressed regret that for a period of 18 
years, from 1989 to 2007, a Bank of America branch in 
Scottsdale, Arizona provided more than 30 accounts to Pierre 
Falcone, a notorious arms dealer who supplied weapons during 
Angola's civil war in violation of a U.N. arms embargo. Mr. 
Falcone had a long history of run-ins with the law, was 
incarcerated for a year in 2000, was a fugitive from a 2004 
global arrest warrant, and at the time of the hearing was 
serving a 6-year prison term in France. Bank of America 
documents indicated that the bank knew who he was, yet never 
designated him a PEP despite his being an Angolan Ambassador, 
never designated his accounts as high-risk despite deposits of 
substantial sums of offshore money, and never closed his 
accounts until contacted by the Subcommittee. Mr. Mandemaker 
acknowledged that, for over a decade, HSBC provided U.S. 
banking services to Banco Africano de Investimentos (BAI), a $7 
billion Angolan private bank whose largest shareholder was 
Angola's State-owned oil company and which catered to PEP 
clients. Despite PEPs in BAI's management and clientele, and 
HSBC's inability despite multiple requests to get clear 
information about BAI's owners or a copy of its AML procedures, 
HSBC continued to provide the BAI bank with ready access to the 
U.S. financial system.
    The third and final panel heard from three Federal 
Government representatives: David T. Johnson, Assistant 
Secretary for International Narcotics and Law Enforcement 
Affairs at the U.S. Department of State; Janice Ayala, 
Assistant Director, Office of Investigations, Immigration and 
Customs Enforcement (ICE) at the U.S. Department of Homeland 
Security; and James H. Freis, Jr., Director of the Financial 
Crimes Enforcement Network (FinCEN) at the U.S. Department of 
Treasury. All three expressed concern about U.S. professionals 
facilitating foreign corruption through the United States and 
reacted to proposals to strengthen U.S. barriers to foreign 
corruption, including implementing stronger PEP controls at 
banks to identify and monitor PEP clients; requiring persons 
setting up U.S. shell companies to identify their beneficial 
owners; revoking AML exemptions for real estate and escrow 
agents; preventing misuse of law office and attorney-client 
bank accounts; and strengthening U.S. visa and immigration 
policies to make foreign corruption a legal basis for excluding 
or removing a foreign PEP from the United States.

D. Wall Street and the Financial Crisis: The Role of High-Risk Home 
        Loans (April 13, 2010)

    In November 2008, the Subcommittee initiated a bipartisan 
investigation into key causes of the 2008 financial crisis 
which cost millions of jobs, caused the loss of millions of 
homes, destroyed savings, shuttered good businesses, and put 
the United States into the worst economic tailspin since the 
Great Depression. The investigation's goals were threefold: To 
construct a public record of the facts to deepen public 
understanding of what happened; identify some of the root 
causes of the crisis; and provide a factual foundation for the 
ongoing effort to fortify the country against the recurrence of 
a similar crisis in the future. As part of its investigation, 
the Subcommittee conducted over 150 interviews and depositions, 
consulted with dozens of experts, and subpoenaed and reviewed 
millions of pages of documents.
    In April 2010, the Subcommittee held four hearings 
examining how high-risk mortgage lending, regulatory failures, 
inflated credit ratings that misled investors, and high-risk, 
conflicts-ridden financial products designed and sold by 
investment banks contributed to the financial crisis, using 
case histories in each hearing to illustrate the problems.
    The first hearing, on April 13, 2010, focused on the role 
of high-risk home loans and the mortgage backed securities that 
those loans produced, using as a case history the lending and 
securitization practices of Washington Mutual Bank. Washington 
Mutual Bank, the largest U.S. thrift with more than $300 
billion in assets, issued billions of dollars in high-risk 
mortgage loans, packaged them into securities that later 
experienced a high rate of delinquency or loss, and then 
collapsed in the largest bank failure in U.S. history. 
Washington Mutual securitized over $77 billion in subprime home 
loans as well as billions of dollars of other high-risk home 
loans, including interest-only, home equity, and ``Option 
Adjustable Rate Mortgages (ARM)'' loans. Many of those loans 
used initial low ``teaser'' interest rates that, unless the 
loan was refinanced, were later replaced with much steeper 
rates and higher monthly payments. The Option ARM loans also 
allowed borrowers, for a specified period, to pay less than the 
interest they owed each month, resulting in a larger rather 
than reduced mortgage debt, a feature called negative 
amortization. When home prices stopped increasing, many 
borrowers were unable to refinance their loans, defaulted on 
their mortgages, and lost their homes while the related 
mortgage securities plummeted in value.
    At the hearing, the Subcommittee released thousands of 
pages of hearing exhibits documenting Washington Mutual's role 
in the 2008 financial crisis. The hearing exhibits 
demonstrated, for example, that the reason that Washington 
Mutual executives embarked upon a high-risk lending strategy 
was because they had projected that high-risk home loans, which 
generally charged higher interest rates and produced higher 
sales prices on Wall Street, would be more profitable for the 
bank than lower risk home loans. The documents also showed that 
Washington Mutual and its affiliate, Long Beach Mortgage 
Company, used shoddy lending practices riddled with credit, 
compliance, and operational deficiencies. Those practices 
included issuing loans with erroneous or fraudulent borrower 
information, ``stated income loans'' in which borrowers stated 
their income with no supporting documentation, loans with 
inaccurate appraisals, and loans in which the borrowed amount 
equaled 90 percent or more of the value of the home. The 
hearing exhibits also showed that Washington Mutual and Long 
Beach steered many borrowers into loans they could not afford 
when the higher monthly payments built into those loans took 
effect. Those high-risk loans were nevertheless packaged into 
mortgage-backed securities sold to investors worldwide, 
saturating financial markets with mortgage-backed securities 
that later incurred high rates of delinquency and loss.
    The hearing exhibits also showed that, at times, Washington 
Mutual securitized loans that it had identified as likely to go 
delinquent, without disclosing its analysis to investors who 
bought the securities, and securitized loans tainted by 
fraudulent information, without notifying purchasers of the 
fraud that had been discovered. In addition, the documents 
showed that Washington Mutual's compensation system rewarded 
loan officers and loan processors for speed and volume in 
issuing loans, rather than for issuing high quality loans. The 
compensation system also paid extra to loan officers who 
overcharged borrowers or added stiff prepayment penalties, and 
awarded bank executives millions of dollars even when their 
high-risk lending strategy placed the bank in financial 
jeopardy.
    The hearing took testimony from two panels of former bank 
personnel. The first panel consisted of two former Washington 
Mutual risk management officers and the chief auditor who were 
employed by the bank during the run up to its collapse in 2008. 
The witnesses were James Vanasek, former Chief Risk Officer 
from 2004 to 2005; Ronald Cathcart, former Chief Risk Officer 
from 2006 to 2008; and Randy Melby, former General Auditor from 
2004 to 2008. All three witnesses acknowledged the bank's high-
risk lending practices, poorly performing loans and mortgage-
backed securities, and weak oversight of loan personnel and the 
third party mortgage brokers that provided loans to the bank. 
All three described how they alerted bank management to the 
risks and other problems, but were ignored or marginalized by 
the bank's senior officers.
    The second panel of witnesses heard from four senior 
Washington Mutual officers, the bank's Chief Executive Officer 
(CEO), President, Home Loans Division head, and head of the 
Capital Markets Division. The witnesses were Kerry Killinger, 
former President, CEO, and Chairman of the Board of Washington 
Mutual; Stephen Rotella, former President and Chief Operating 
Officer of the bank; David Schneider, former President of the 
Home Loans Division; and David Beck, Former Division Head of 
Capital Markets. These four bank officers also acknowledged the 
bank's dismal performance, but claimed they worked hard to 
reduce the bank's risk and address other problems. They 
portrayed the bank as a victim of, rather than a contributor 
to, the financial crisis and denied their practices contributed 
to the bank's downfall.
    In April 2011, the Subcommittee issued a 750-page 
bipartisan staff report summarizing its investigation into 
high-risk lending practices discussed at the hearing and 
offering recommendations to prevent similar problems in the 
future. The Subcommittee's work contributed to the enactment of 
the Dodd-Frank Wall Street Reform and Consumer Protection Act 
of 2010 (``Dodd-Frank Act''). Among other provisions, the Dodd-
Frank Act prohibited stated income loans; imposed restrictions 
on loans using low teaser rates or negative amortization; and 
required banks to retain a portion of the credit risk of each 
mortgage-backed security they issued.

E. Wall Street and the Financial Crisis: The Role of Bank Regulators 
        (April 16, 2010)

    The second in the series of Subcommittee hearings on key 
causes of the 2008 financial crisis, on April 16, 2010, focused 
on the role of Federal bank regulators charged with ensuring 
the safety and soundness of the U.S. banking system. The 
Subcommittee used as a case study regulatory oversight of 
Washington Mutual, focusing on the Office of Thrift Supervision 
(OTS), which was the bank's primary regulator, and the Federal 
Deposit Insurance Corporation (FDIC), which was its backup 
regulator.
    At the hearing, the Subcommittee released thousands of 
pages of hearing exhibits documenting actions taken by OTS and 
the FDIC, from 2004 to 2008, to ensure the safety and soundness 
of Washington Mutual, the sixth largest bank in the United 
States and OTS's largest institution. Together, the documents 
demonstrated that feeble oversight by the regulators, combined 
with weak regulatory standards and agency infighting, allowed 
Washington Mutual Bank to engage in high-risk and shoddy 
lending practices and the sale of poor quality and sometimes 
fraudulent mortgages that contributed to both the bank's demise 
and the 2008 financial crisis.
    The hearing exhibits showed that over a 5-year period, from 
2003 to 2008, OTS identified over 500 serious deficiencies in 
Washington Mutual's lending practices, risk management, and 
asset quality, but failed to force adequate corrective action 
to prevent the bank's failure. The documents demonstrated that 
OTS was aware of, yet tolerated, Washington Mutual and its 
affiliate Long Beach Mortgage Company's engaging in year-after-
year of shoddy lending and securitization practices, including 
the origination and sale of loans and mortgage-backed 
securities with notoriously high rates of delinquency and loss.
    The hearing exhibits also demonstrated that OTS allowed 
Washington Mutual to originate hundreds of billions of dollars 
in high-risk loans, knowing that the bank used unsafe and 
unsound teaser rates, qualified borrowers using those teaser 
rates rather than the higher interest rates that would later 
take effect, permitted borrowers to make minimum payments 
resulting in negatively amortizing loans, relied on rising 
house prices and refinancing to avoid payment shock and loan 
defaults, had unsafe concentrations of loans in particular 
States, and had no realistic data to calculate loan losses in 
markets with flat or declining house prices. The documents show 
that, due in part to the short-term profits obtained by the 
bank from its lending activities, OTS repeatedly failed to take 
enforcement action to stop Washington Mutual's unsafe and 
unsound practices or strengthen its portfolio of high-risk, 
poor-quality loans and securities.
    In addition, the hearing exhibits disclosed agency 
infighting in which OTS actively impeded FDIC oversight of 
Washington Mutual by blocking the FDIC's access to bank data, 
refusing to allow it to participate in bank examinations, and 
rejecting requests to review bank loan files. OTS also rejected 
FDIC recommendations for stronger enforcement action.
    The documents also demonstrated that Federal bank 
regulators were hobbled in their efforts to end unsafe and 
unsound mortgage practices at U.S. banks by weak regulatory 
standards, use of guidance instead of enforceable regulations 
to limit bank practices, and the failure to set clear deadlines 
for bank compliance. The case history exposed an ineffective 
regulatory culture at OTS in which bank examiners were 
demoralized by their inability to stop unsafe practices, their 
supervisors' reluctance to take formal enforcement actions even 
after years of recorded bank deficiencies, and an agency 
culture that treated banks as ``constituents'' rather than 
regulated entities. In addition, the case history showed how 
OTS and the FDIC allowed Washington Mutual to reduce its risks 
by selling its high-risk assets, without concern that those 
assets might saturate the financial system, contribute to 
investor losses, and undermine investor confidence in the U.S. 
mortgage market.
    The hearing heard from three panels of witnesses. The first 
panel consisted of two Federal Inspectors General who had 
prepared a joint report on the regulatory failures associated 
with Washington Mutual. The witnesses were Eric Thorson, 
Inspector General for the U.S. Treasury Department, and Jon T. 
Rymer, Inspector General for the FDIC. Both testified that the 
OTS had identified numerous serious deficiencies at the bank, 
but failed to take needed enforcement actions to change the 
bank's conduct. Both agreed that OTS allowed short-term profits 
to excuse high-risk practices and poor quality assets. Both 
also agreed that OTS and the FDIC failed to provide accurate 
ratings of the bank's management and financial condition; and 
OTS engaged in unacceptable tactics to impede FDIC oversight.
    The second panel took testimony from five regulators who 
helped oversee Washington Mutual prior to its collapse, three 
from OTS and two from the FDIC. The witnesses were John Reich, 
former Director of OTS; Darrel Dochow, former OTS West Regional 
Director; Lawrence Carter, former OTS Examiner-in-Charge at 
Washington Mutual from 2004 to 2006; John Corston, Acting FDIC 
Deputy Director of the Large Institutions and Analysis Branch; 
and J. George Doerr, FDIC Deputy Regional Director for the 
Division of Supervision and Consumer Protection in San 
Francisco. The witnesses generally agreed that the bank's 
activities were high risk, but asserted they did not violate 
regulatory standards. The FDIC witnesses criticized the extent 
to which OTS allowed Washington Mutual's loan practices to 
layer risks and gave the bank more time to comply with bank 
guidance limiting high-risk activities.
    The third panel took testimony from the heads of OTS and 
the FDIC, Sheila C. Bair, FDIC Chairman, and John E. Bowman, 
OTS Acting Director. Both acknowledged the regulatory failures 
underlying the collapse of Washington Mutual, testifying among 
other matters that regulators had been too tolerant of risk, 
and the regulatory standards should have banned stated income 
loans and limited other risky products and practices.
    In April 2011, the Subcommittee issued a 750-page 
bipartisan staff report summarizing its investigation into the 
regulatory failures discussed at the hearing and offering a 
number of recommendations to prevent similar problems in the 
future. The Subcommittee's work contributed to the enactment of 
the Dodd-Frank Act which, among other provisions, abolished OTS 
and moved its regulatory responsibilities to another bank 
regulator; prohibited a number of high-risk lending practices; 
strengthened the FDIC's oversight role; and created a Financial 
Oversight Stability Council to detect and prevent systemic 
risks to the U.S. financial system.

F. Wall Street and the Financial Crisis: The Role of Credit Rating 
        Agencies (April 23, 2010)

    The third in the series of Subcommittee hearings examining 
key causes of the financial crisis, on April 23, 2010, focused 
on the role of the credit rating agencies that rated 
residential mortgage backed securities (RMBS) and collateral 
debt obligations (CDOs) from 2004 to 2008. The Subcommittee's 
investigation used as a case history the two largest U.S. 
credit rating agencies, Moody's and Standard & Poor's 
(``S&P''), which together rated tens of thousands of RMBS and 
CDO securities in the years prior to the financial crisis. 
Those ratings proved to be both inaccurate and inflated, as 
evidenced by studies showing that over 90 percent of the RMBS 
securities given AAA ratings in 2006 and 2007, were later 
downgraded to junk status, subjecting investors to unusually 
high rates of delinquency and loss.
    At the hearing, the Subcommittee released thousands of 
pages of hearing exhibits documenting actions taken by Moody's 
and S&P during the period 2004 to 2007. Those documents showed 
how some investment bankers pressured the credit rating 
agencies to provide favorable ratings for the RMBS and CDO 
products they designed and planned to sell, and how Moody's and 
S&P--which were paid by those firms--repeatedly gave into that 
pressure. The hearing exhibits also disclosed how competitive 
pressures, including the drive for market share and the need to 
accommodate investment bankers bringing in business, caused 
Moody's and S&P to weaken their standards for issuing favorable 
ratings. The documents also showed that Moody's and S&P made 
record profits rating structured finance products during this 
period, primarily from rating complex RMBS and CDO products.
    The documents showed that Moody's and S&P issued AAA and 
other investment grade credit ratings for the vast majority of 
RMBS and CDO securities they rated, deeming them safe 
investments even though many relied on high-risk home loans. In 
late 2006, high-risk mortgages began incurring delinquencies 
and defaults at an alarming rate. Despite signs of a 
deteriorating mortgage market, Moody's and S&P continued for 6 
months to issue investment grade ratings for numerous RMBS and 
CDO securities.
    The hearing exhibits showed that Moody's and S&P were aware 
of the increasing risks associated with the subprime, interest-
only, and adjustable rate mortgages being issued by lenders, 
including their increasing use of stated income loans that did 
not document a borrower's ability to repay debt, loans 
containing fraudulent borrower or appraisal information, and 
loans with initial teaser rates that relied on the borrower 
refinancing the debt before higher interest rates took effect. 
The documents also showed that Moody's and S&P were aware of 
housing prices leveling out, delinquency rates climbing, and 
related MBS and CDO securities incurring increased losses, 
despite their AAA ratings. One S&P analyst told a superior in 
early 2007, that he did not expect the ratings to ``hold'' 
through the year.
    The documents also showed that in July 2007, within days of 
each other, Moody's and S&P suddenly announced mass downgrades 
of hundreds of RMBS and CDO securities. Those mass downgrades 
shocked the financial markets, triggered sales of assets that 
had lost their investment grade status, and contributed to the 
collapse of first the RMBS and then the CDO secondary markets. 
Financial firms and investors were left holding billions of 
dollars of suddenly unmarketable securities whose value began 
plummeting. The Subcommittee's investigation concluded that the 
2007 mass downgrades, which were unique in U.S. financial 
history and which made it clear that RMBS and CDO securities 
were no longer safe investments, were the most immediate 
trigger of the financial crisis.
    The hearing exhibits also showed that, from 2004 to 2007, 
Moody's and S&P used credit rating models with data that was 
inadequate to predict how high-risk home loans would perform. 
In addition, they showed that Moody's and S&P failed to factor 
into their models increased credit risks due to mortgage fraud, 
lax underwriting standards, and unsustainable housing price 
appreciation. By 2006, Moody's and S&P knew their RMBS and CDO 
ratings were inaccurate, revised their rating models to produce 
more accurate ratings, but then failed to use the revised 
models to re-evaluate their existing RMBS and CDO ratings, 
delaying thousands of rating downgrades and allowing those 
securities to carry inflated ratings that could mislead 
investors. In addition, despite record profits, Moody's and S&P 
failed to assign sufficient resources to adequately rate new 
products and test the accuracy of their existing ratings.
    At the hearing, three panels of witnesses reacted to the 
Subcommittee's investigation and hearing exhibits. The first 
panel took testimony from four former Moody's and S&P employees 
involved with rating RMBS and CDO securities. The witnesses 
were Frank Raiter, former Managing Director of Mortgage-Backed 
Securities at S&P; Richard Michalek, former Vice President and 
Senior Credit Officer in the Structured Derivative Products 
Group at Moody's; Eric Kolchinsky, former Team Managing 
Director in the Structured Derivative Products Group at 
Moody's; and Arturo Cifuentes, Ph.D., former Senior Vice-
President at Moody's and currently Director of the Finance 
Center at the University of Chile. These former Moody's and S&P 
employees described multiple instances of competitive 
pressures, inadequate resources, and conflicts of interest that 
weakened the credit rating process and criticized their 
employers for issuing inaccurate ratings.
    The second panel took testimony from three senior credit 
rating officials who oversaw RMBS and CDO ratings in the run up 
to the 2008 financial crisis. The witnesses were Susan Barnes, 
Managing Director of Mortgage-Backed Securities at S&P; Peter 
D'Erchia, Managing Director of U.S. Public Finance and former 
Global Practice Leader for Surveillance at S&P; and Yuri 
Yoshizawa, Group Managing Director for Structured Finance at 
Moody's Investors Service. These senior officers essentially 
defended their firms and denied that competitive pressures or 
conflicts of interest affected the ratings process.
    The third and final panel took testimony from the heads of 
Moody's and S&P during the years proceeding the financial 
crisis. The witnesses were Raymond W. McDaniel, Jr., Chairman 
and Chief Executive Officer of Moody's Corporation; and 
Kathleen A. Corbet, President of S&P from 2004 to 2007. Both 
witnesses expressed dissatisfaction with their companies' 
ratings performance and acknowledged taking steps to strengthen 
their ratings process. Both also essentially denied any 
breakdown in their ratings process, and portrayed their firms 
as victims of an unexpected widespread decline in housing price 
appreciation which rendered their credit ratings inaccurate.
    In April 2011, the Subcommittee issued a 750-page 
bipartisan staff report summarizing its investigation into the 
inaccurate and inflated credit ratings and mass rating 
downgrades discussed at the hearing. The report also provided 
bipartisan recommendations to prevent similar problems in the 
future. The Subcommittee's work contributed to the enactment of 
the Dodd-Frank Act which, among other provisions, strengthened 
SEC oversight of the credit rating agencies, instituted new 
controls to improve the credit rating process, banned Federal 
regulations requiring reliance on credit ratings, and initiated 
a study to determine how to address the conflicts of interest 
inherent when credit rating agencies are paid by the firms 
whose financial products are being rated.

G. Wall Street and the Financial Crisis: The Role of Investment Banks 
        (April 27, 2010)

    The fourth and final hearing in the Subcommittee series of 
hearings on key causes of the 2008 financial crisis took place 
on April 27, 2010. It focused on the role of investment banks, 
using as a case history Goldman Sachs, a Wall Street investment 
bank that was a leader in developing RMBS and CDO products and 
the secondary mortgage market, and then profited from the 
collapse of that same market during the crisis. In addition, 
the hearing examined actions taken by Goldman indicating that 
it had engaged in troubling and sometimes abusive practices 
raising multiple conflict of interest concerns.
    At the hearing, the Subcommittee released thousands of 
pages of hearing exhibits documenting actions taken by Goldman 
during the run up to the financial crisis. These documents 
showed that, from 2004 to 2007, in exchange for lucrative fees, 
Goldman helped lenders notorious for issuing high-risk, poor 
quality loans securitize them, obtain favorable credit ratings 
for them, and sell the resulting RMBS securities to investors, 
injecting billions of dollars of risky loans into the financial 
system. The hearing exhibits also showed how Goldman Sachs 
magnified the risks associated with subprime mortgages by re-
securitizing related RMBS securities in CDOs, referencing them 
in synthetic CDOs, and selling the CDO securities to investors 
worldwide. In addition, Goldman promoted standardized credit 
default swaps and other products to enable investors to bet on 
the failure as well as the success of RMBS and CDO securities.
    The hearing exhibits also showed how, as high-risk home 
loans began to default, loan delinquency rates increased, and 
RMBS and CDO securities began to incur losses in late 2006, 
Goldman suddenly reversed course and began to bet against the 
mortgage market. The documents detailed how Goldman sold its 
mortgage investments, used a variety of tactics to build a very 
large net short position, and either locked in or cashed out 
its profits during 2007, generating billions of dollars in 
gain. One internal Goldman email characterized this 2007 effort 
as the ``big short.'' As a result, during the financial crisis, 
while other investment banks incurred large losses, Goldman 
showcased its mortgage profits, citing its net short position.
    The hearing exhibits also provided detailed information 
about Goldman's efforts during late 2006 and the first half of 
2007, to originate and sell four mortgage-related CDOs known as 
Hudson, Anderson, Timberwolf, and Abacus. Goldman designed 
those CDOs, underwrote them, and recommended the CDO securities 
to clients. In three of the CDOs, Goldman also secretly bet 
against the securities, either in whole or in part. In the 
fourth, Goldman allowed a favored client to help select the 
assets and then bet against the CDO. Goldman did not inform the 
investors to whom it marketed and sold the CDO securities that 
it had a negative view of the mortgage market at the same time, 
that it was shorting the mortgage market, or that Goldman or a 
favored client had bet against the same CDO securities that 
Goldman was selling to them.
    The hearing took testimony from three panels of witnesses, 
all of whom were former or current Goldman employees. The first 
panel consisted of four former or current Goldman employees 
involved with trading mortgage products. The witnesses were 
Daniel L. Sparks, former head of Goldman's Mortgage Department; 
Michael J. Swenson, Managing Director with the Structured 
Products Group Trading Desk; Joshua S. Birnbaum, former 
Managing Director of Structured Products Group Trading Desk; 
and Fabrice P. Tourre, Executive Director of the Structured 
Products Group Trading Desk in London, England. The second 
panel consisted of two senior Goldman officers, David A. 
Viniar, Goldman's Chief Financial Officer; and Craig W. 
Broderick, Goldman's Chief Risk Officer. The third panel took 
testimony from Lloyd C. Blankfein, Goldman's Chairman and Chief 
Executive Officer.
    The witnesses responded to questions about Goldman's 
actions during the financial crisis and information in the 
hearing exhibits. Goldman's senior officers essentially denied 
that Goldman had accumulated a large short position in the 
mortgage market or bet against the mortgage assets that it had 
marketed and sold to its clients. They also denied that Goldman 
had engaged in troubling conduct when it failed to tell clients 
that it held the short side of the CDO securities that Goldman 
was recommending they buy. When confronted with emails showing 
that Goldman personnel had sharply negative views of the CDOs 
the firm was selling to its clients, the witnesses contended 
that Goldman was acting as a market-maker rather than an 
underwriter of those securities, it had no legal obligation to 
disclose material adverse information to its clients, and its 
clients were sophisticated investors who would have been 
uninterested in Goldman's views. The witnesses also took the 
position that the firm had no fiduciary duty to the clients to 
whom Goldman recommended and sold the CDO securities. When 
asked whether the firm had been engaged in proprietary trading 
when shorting the mortgage market and selling the CDO 
securities, the witnesses avoided answering the question and 
testified that Goldman had put its clients' interests first.
    In April 2011, the Subcommittee issued a 750-page 
bipartisan staff report summarizing its investigation into the 
Goldman case history discussed at the hearing. The report also 
offered bipartisan recommendations to address some of the 
issues raised. The Subcommittee's work contributed to the 
enactment of the Dodd-Frank Act which, among other provisions, 
bars banks and certain other financial firms from engaging in 
high-risk proprietary trading, prohibits them from engaging in 
proprietary trades involving conflicts of interest, and 
prohibits sponsors of asset-backed securities from engaging in 
conflicts of interest such as betting against the securities 
they sponsor.

H. Social Security Disability Fraud: Case Studies in Federal Employees 
        and Commercial Drivers Licenses (August 4, 2010)

    In 2010, the Subcommittee began examining waste, fraud, and 
abuse issues associated with Federal disability programs. In 
August 2010, the Subcommittee held a hearing and released a GAO 
report examining questionable disability payments made by the 
Social Security Disability Insurance (DI) program, which 
provides benefits to disabled individuals who can no longer 
work, and by the Supplemental Security Income (SSI) program, 
which in part supports disabled persons and their families 
based upon financial need. In 2009, these two programs provided 
disabled Americans with financial benefits totaling nearly $160 
billion. While the DI overpayment rate was about 1 percent in 
FY2008, the SSI overpayment rate reached 10 percent that year, 
followed by 8 percent in FY2009.
    The hearing focused on a Federal program that allows 
disabled individuals to undertake a 9-month trial work period, 
without losing their benefits, to see if they can return to 
work. Disability recipients are required to notify the Social 
Security Administration when they begin employment and if they 
earn in excess of program limits. GAO used data matching and 
specific case studies to examine the extent to which disability 
recipients may be abusing that work program. A data match 
examining 4.5 million Federal employees identified about 24,500 
who received disability payments while also earning Federal 
paychecks; 1,500 of whom were paid more than the program limit 
of about $1,000 per month and together received disability 
benefits totaling $1.7 million per month. Another data match 
examining 600,000 persons with a commercial drivers license as 
well as another database together found 62,000 individuals who 
received a commercial drivers license after their disability 
start date, raising questions about whether they were 
improperly receiving disability payments worth millions of 
dollars.
    The hearing took testimony from two witnesses. Gregory D. 
Kutz, Managing Director of Forensic Audits and Special 
Investigations at the Government Accountability Office (GAO), 
described the GAO investigation, its findings, and 
recommendations. Michael J. Astrue, Commissioner of the Social 
Security Administration (SSA), described the disability 
programs, their complex requirements, and SSA's efforts to 
detect, prevent, and punish fraud. After the hearing, GAO and 
SSA discussed continued use of the data matches to detect and 
prevent Social Security disability fraud committed by employed 
persons.

I. Examining the Efficiency, Stability, and Integrity of the U.S. 
        Capital Markets (Joint hearing with the Subcommittee on 
        Securities, Insurance, and Investment of the Committee on 
        Banking, Housing, and Urban Affairs) (December 8, 2010)

    As part of its inquiry into the financial crisis and 
financial markets, in December 2010, the Subcommittee held a 
joint hearing with the Senate Banking Subcommittee on 
Securities, Insurance, and Investment to examine stock market 
dysfunctions and trading abuses that threaten market stability 
and investor confidence. The hearing examined challenges posed 
by modern trading practices in which U.S. stocks are now traded 
on 13 public exchanges and over 240 less transparent, off-
exchange trading venues. In particular, the hearing examined 
how U.S. trading markets have been victims of, and remain 
vulnerable to, system-wide problems, and how Federal regulators 
do not have the necessary tools to police the markets for 
trading abuses.
    At the hearing, the two Subcommittees released hearing 
exhibits documenting the issues. On May 6, 2010, U.S. capital 
markets suffered a systemic collapse when one futures order, 
placed at the wrong time and in the wrong way, set off a chain 
reaction that affect the futures market, U.S. stock markets, 
and dragged the Dow Jones Industrial Average down nearly 700 
points, wiping out billions of dollars of value in a few 
minutes for no apparent reason. Both the futures and stock 
markets recovered in about 20 minutes, but left investors and 
traders in shock. After 5 months of study, a joint CFTC-SEC 
report concluded that the crash was essentially triggered by 
one large sell order placed in a volatile futures market using 
an algorithm that set off a cascade of out-of-control 
computerized trading in futures, equities, and options. Using 
the events of May 6, 2010, as an example, the hearing examined 
risks to U.S. capital trading venues and potential tools for 
regulators to combat those risks.
    In addition, the hearing examined issues related to trading 
abuses. Traders today buy and sell stock on and off exchange, 
simultaneously trading in multiple venues. Evidence indicates 
that orders in some stock venues are being used to affect 
prices in other stock venues; and that futures trades on CFTC-
regulated markets are being used to affect prices on SEC-
regulated options and stock markets. Some traders also use 
high-speed trading programs to execute their strategies, 
sometimes submitting and then cancelling thousands of phony 
orders to affect prices. The hearing discussed some of the 
tactics that sophisticated traders could use to manipulate 
prices, and potential tools for regulators to detect and stop 
those abuses.
    The hearing took testimony from two panels. The first panel 
consisted of SEC Chairman Mary Schapiro and CFTC Chairman Gary 
Gensler. The second panel heard from stock traders, an academic 
expert, and the self-regulatory authority for stock exchanges. 
The panelists were Dr. James J. Angel, Ph.D., CFA, Associate 
Professor of Finance at Georgetown University McDonough School 
of Business; Thomas Peterffy, CEO of Interactive Brokers; Manoj 
Narang, CEO of Tradeworx; and Kevin Cronin, Global Head of 
Equity Trading at Invesco Ltd. The final panelist was Stephen 
Luparello, Vice Chairman of the Financial Industry Regulatory 
Authority (FINRA) which oversees multiple stock exchanges in 
the United States.
    The witnesses generally agreed that the current market 
structure lacked transparency, and that a better system to 
identify orders, cancellations, and trading activity was 
needed. Mr. Peterffy testified about his concerns that U.S. 
financial markets may be susceptible to an intentional, 
malicious attack that could create a system-wide failure.
    Regulatory coordination was identified as a critical 
priority, and implementing a comprehensive ``consolidated audit 
trail'' as soon as practically possible was suggested, although 
some concerns were raised about the timing and costs of those 
efforts. During the hearing, SEC Chairman Schapiro stated that 
the SEC's expected time frame was shorter and costs lower for 
the consolidated audit trail than originally proposed. 
Regulators have also introduced ``circuit breakers'' to stop 
market trading in emergency conditions, including events 
similar to the May 6, 2010 market crash. Financial regulators, 
including the SEC and CFTC, have continued to work to enhance 
their abilities to detect and prevent market dysfunctions and 
trading abuses.

         III. Legislative Activities During the 111th Congress

    The Permanent Subcommittee on Investigations does not have 
legislative authority, but because its investigations play an 
important role in bringing issues to the attention of Congress 
and the public, the Subcommittee's work frequently contributes 
to the development of legislative initiatives. The 
Subcommittee's activity during the 111th Congress was no 
exception, with Subcommittee hearings and Members playing 
prominent roles in the development of several legislative 
initiatives.

A. Credit Card Accountability Responsibility and Disclosure Act (Public 
        Law 111-24)

    On May 22, 2009, partly in response to Subcommittee 
hearings on abusive credit card practices, Congress enacted the 
Credit Card Accountability Responsibility and Disclosure Act 
(Credit CARD Act). This bill included provisions taken from a 
2007 bill, S. 1395, the Stop Unfair Practices in Credit Cards 
Act, introduced by Senator Levin to put an end to the credit 
card abuses examined during the Subcommittee's 2007 hearings. 
It also included provisions from a 2009 bill, S. 414, 
introduced by Senator Chris Dodd, Chairman of the Committee on 
Banking, Housing, and Urban Affairs, and cosponsored by Senator 
Levin and others. The Dodd-Levin bill incorporated almost all 
of the provisions from the Levin bill, added provisions from an 
earlier Dodd bill, and produced the strongest consumer 
protections of any credit card reform bill then in Congress. 
The Dodd-Levin bill provided the foundation for the final bill 
enacted into law.
    Among other provisions, the law prohibits interest charges 
on any portion of a credit card debt which the cardholder paid 
on time during a grace period; prohibits interest rate hikes 
for cardholders who pay on time and meet their credit card 
obligations; prohibits the charging of over-the-limit fees 
unless the cardholder selects a card allowing the credit limit 
to be exceeded; limits the number of over-the-limit fees that 
can be charged for a single instance of exceeding a credit card 
limit; prohibits charging a fee to allow a cardholder to make a 
payment on a credit card debt; strengthens protections related 
to gift cards; and strengthens protections for underage 
cardholders.

B. Foreign Account Tax Compliance Act (FATCA), included as Subtitle A 
        of Title V of the Hiring Incentives to Restore Employment 
        (HIRE) Act (Public Law 111-147)

    On March 18, 2010, partly in response to Subcommittee 
hearings on actions taken by tax haven banks to facilitate U.S. 
tax evasion by providing U.S. taxpayers with hidden offshore 
bank accounts, Congress enacted the Foreign Account Tax 
Compliance Act (FATCA), included as Subtitle A of Title V of 
the Hiring Incentives to Restore Employment (HIRE) Act. FATCA 
was sponsored by Congressman Charles Rangel and Senator Max 
Baucus.
    Among other provisions, the law requires foreign financial 
institutions to disclose all accounts opened by U.S. persons or 
pay a 30 percent tax on any investment income generated by an 
institution's U.S. investments. It covers a broad range of 
foreign accounts, U.S. persons, and foreign financial 
institutions. The law also includes several provisions 
addressing offshore tax abuses identified in earlier 
Subcommittee hearings, including provisions to prevent misuse 
of foreign trusts by tax dodgers, and to stop non-U.S. persons 
from using complex financial transactions to dodge payment of 
U.S. taxes on U.S. stock dividends.

C. Dodd-Frank Wall Street Reform and Consumer Protection Act (Public 
        Law 111-203)

    On July 21, 2010, partly in response to Subcommittee 
hearings on key causes of the financial crisis, Congress 
enacted the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Dodd-Frank Act). Prior to the bill's approval 
by the Senate, Banking Committee Chairman Chris Dodd stated 
that the Subcommittee's final hearing on the financial crisis, 
featuring Goldman Sachs, was ``a critical hearing just days 
before we brought this bill to the floor which highlighted many 
of the problems that have persisted in the financial services 
sector.''
    The law addresses many of the problems identified in the 
Subcommittee investigation into the financial crisis. Among 
other provisions, it bars mortgage lenders from issuing stated 
income loans that fail to document the borrower's ability to 
repay the debt; restricts the use of loans with low teaser 
rates and negative amortization; and requires banks to retain a 
portion of the credit risk of each mortgage-backed security 
they issue. It also dissolves the Office of Thrift Supervision; 
and creates a Financial Oversight Stability Council to detect 
and prevent systemic risks to the U.S. financial system. In 
addition, it strengthens SEC oversight of credit rating 
agencies; imposes new restrictions on the credit rating 
process; and bans Federal regulations requiring reliance on 
credit ratings. The law also sharply limits high-risk 
proprietary trading by banks and other systemically significant 
firms; and bars them from engaging in conflicts of interest. In 
addition, the law addresses a number of problems identified in 
earlier Subcommittee hearings on commodity speculation and 
financial engineering. Among other provisions, the law mandates 
stronger regulation of all commodity markets and related 
commodity derivatives, provides stronger tools to restrain 
excessive speculation, and mandates the imposition of position 
limits in both futures and commodity swaps markets. It also 
repeals the statutory ban on regulating swaps and, for the 
first time, imposes a set of safeguards and oversight 
requirements for regulating all swaps and swap dealers. It also 
establishes the Consumer Financial Protection Bureau.

D. Hedge Fund Transparency Act (S. 344)

    On January 29, 2009, to address issues related to hedge 
funds, some of which control billions of dollars and were 
active in mortgage markets during the financial crisis, 
Senators Grassley and Levin introduced the Hedge Fund 
Transparency Act. This bill sought to clarify the authority of 
the SEC to require hedge funds to register with the agency, 
disclose basic information about their ownership and 
operations, and comply with SEC information requests.
    The bill also sought to require hedge funds to comply with 
the same anti-money laundering (AML) obligations as other 
financial institutions, including by establishing an AML 
program and reporting suspicious activity. Prior Subcommittee 
hearings had disclosed how some hedge funds bring millions of 
offshore dollars into the United States without any AML 
screening of the funds. Although the Grassley-Levin bill was 
not enacted into law, a year later, Title IV of the Dodd-Frank 
Wall Street Reform and Consumer Protection Act mandated hedge 
fund registration with the SEC, established an extensive system 
of hedge fund requirements, and gave the SEC broad authority to 
oversee and regulate these financial institutions. It did not, 
however, address the hedge fund AML exemption.

E. Authorizing the Regulation of Swaps Act (S. 961)

    On May 4, 2009, to address issues related to the inability 
of the SEC and CFTC to regulate swap transactions, including 
credit default swaps that played a major role in the financial 
crisis, Senators Levin and Collins introduced the Authorizing 
the Regulation of Swaps Act. This bill sought to repeal 
statutory prohibitions that barred Federal regulators from 
overseeing or imposing capital, liquidity, disclosure, or other 
safeguards on swap transactions, including credit default 
swaps. The bill also sought to give Federal financial 
regulators immediate, clear authority to regulate the trillions 
of dollars in swap transactions taking place in the United 
States. Although this bill was not enacted into law, a year 
later, the Dodd-Frank Wall Street Reform and Consumer 
Protection Act included a similar repeal and provided broad 
authority for Federal financial regulators to oversee swap 
transactions, swap dealers, and swap markets.

F. Protect Our Recovery Through Oversight of Proprietary Trading Act 
        (S. 3098)

    On March 10, 2010, to address issues raised in the 
Subcommittee's hearing on the role of investment banks in the 
financial crisis, Senators Jeff Merkley and Levin, together 
with other cosponsors, introduced the Protect Our Recovery 
Through Oversight of Proprietary Trading Act (PROP Trading 
Act). Among other provisions, this bill sought to prohibit 
banks from engaging in proprietary trading; holding certain 
interests in, engaging in certain relationships with, or 
bailing out hedge funds or other private funds; and engaging in 
high-risk activities or material conflicts of interest. It also 
sought to restrict systemically significant financial firms 
from engaging in similar conduct without adequate capital and 
liquidity safeguards. These provisions sought to codify the 
``Volcker Rule,'' named after former Federal Reserve Chairman 
Paul Volcker who was the original proponent of these types of 
prohibitions and restrictions. In addition, the bill sought to 
ban conflicts of interest in asset-backed securitizations, such 
as when the sponsor of asset-backed securities bets against the 
securities it has sponsored. Provisions based upon the Merkley-
Levin bill were included in Sections 619 and 620 of the Dodd-
Frank Wall Street Reform and Consumer Protection Act, which has 
since been enacted into law.

G. Prevent Excessive Speculation Act (S. 447)

    On Feb. 13, 2009, to address issues related to commodity 
speculation examined in past Subcommittee hearings, Senator 
Levin introduced the Prevent Excessive Speculation Act. This 
bill was similar to a bill with the same name introduced in the 
prior Congress by Senators Levin, Harkin, and Bingaman. Its 
objectives were to close loopholes in the U.S. commodities laws 
that impeded U.S. oversight of U.S. commodity trades on foreign 
exchanges and in the over-the-counter (OTC) markets and ensure 
that large commodity traders could not use those markets to 
avoid CFTC oversight or trading limits. Among other provisions, 
the bill sought to require the CFTC, rather than individual 
exchanges, to set position limits on the amount of futures 
contracts any trader could hold on regulated exchanges to 
prevent excessive speculation and price manipulation; close the 
so-called ``London loophole'' by giving the CFTC the same 
authority to police traders in the United States who trade U.S. 
futures contracts on a foreign exchange as it has to police 
trades on U.S. exchanges; and require foreign exchanges that 
want to install trading terminals in the United States to 
impose comparable position limits as the CFTC imposes on 
domestic exchanges to prevent excessive speculation and price 
manipulation. The bill also sought to strengthen disclosure, 
market oversight, and enforcement authority to protect U.S. 
consumers, businesses, and the economy from further energy and 
other pricing shocks. Although the Levin bill was not enacted 
into law, a year later, Title VII of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act provided the CFTC with 
similar authority, while also extending its authority over all 
commodity swaps.

H. Stop Tax Haven Abuse Act (S. 506)

    On March 2, 2009, to address a myriad of tax abuses 
examined in past Subcommittee hearings, Senators Levin, Sheldon 
Whitehouse, McCaskill, and Bill Nelson from Florida introduced 
the Stop Tax Haven Abuse Act. This legislation was based upon 6 
years of Subcommittee investigations into offshore tax havens, 
abusive tax shelters, and the professionals who design, market, 
and implement tax dodges. The Subcommittee has estimated that 
the loss to the Treasury from offshore tax abuses alone 
approaches $100 billion per year.
    Among other measures, the bill would establish rebuttable 
presumptions in tax enforcement cases that offshore companies 
and trusts are controlled by the U.S. persons who send or 
receive assets from them; authorize Treasury to take special 
measures against foreign jurisdictions and financial 
institutions that impede U.S. tax enforcement; and strengthen 
penalties on tax shelter promoters. It would also close 
offshore trust loopholes; require U.S. financial institutions 
to report certain offshore activities to the IRS; and require 
hedge funds and company formation agents to understand the 
identity of their offshore clients and report suspicious 
activity to U.S. law enforcement. In addition, it would prevent 
companies that are managed and controlled from the United 
States from claiming foreign status for tax purposes; close a 
loophole that enables non-U.S. persons to dodge payments of 
U.S. taxes on U.S. stock dividends; and ban tax patents. A 
companion bill was introduced in the House (H.R. 1265). While 
the bills were not enacted into law, a year later, the Foreign 
Account Tax Compliance Act (FATCA) established an extensive new 
system to require foreign financial institutions to disclose 
all offshore accounts opened by U.S. persons. In addition, 
FATCA enacted into law provisions similar to those in the Stop 
Tax Havens Abuse Act to prevent misuse of foreign trusts by tax 
dodgers, and to stop non-U.S. persons from using complex 
financial transactions to dodge payment of U.S. taxes on U.S. 
stock dividends.

I. Ending Excessive Corporate Deductions for Stock Options Act (S. 
        1491)

    On July 22, 2009, to close a tax loophole examined in a 
2007 Subcommittee hearing showing that, each year, corporations 
claim tens of billions of dollars in stock option tax 
deductions in excess of the stock option expenses shown on 
their books, Senators Levin and McCain introduced S. 1491, the 
Ending Excessive Corporate Deductions for Stock Options Act.
    IRS data shows that, each year from 2005 to 2009, 
corporations as a whole took U.S. tax deductions for stock 
options that were billions of dollars greater than the expenses 
shown on their financial statements. The total amount of excess 
tax deductions ranged from $12 billion to $61 billion per year. 
The IRS data also showed that a relatively small number of 
corporations took the majority of those excess deductions: 250 
out of the millions of corporations that filed corporate tax 
returns each year.
    The bill would amend the tax code to require that corporate 
tax deductions for stock option compensation not exceed the 
stock option expenses shown on the corporate books. It would 
also allow corporations to deduct stock option compensation in 
the same year it is recorded on the company books, without 
waiting for the options to be exercised; and ensure research 
tax credits use the same stock option deduction. The bill would 
also subject stock option pay for top corporate executives to 
the existing $1 million cap on the tax deductions that publicly 
traded corporations can claim for executive pay, in order to 
prevent taxpayer subsidies of outsized executive compensation. 
The bill was referred to the Finance Committee which took no 
further action.

J. Incorporation Transparency and Law Enforcement Assistance Act (S. 
        569)

    On March 11, 2009, Senators Levin, Grassley, and McCaskill 
introduced S. 569, the Incorporation Transparency and Law 
Enforcement Assistance Act, to protect the United States from 
U.S. corporations with hidden owners being misused to commit 
crimes, including terrorism, drug trafficking, money 
laundering, tax evasion, financial fraud, and corruption. The 
bill is based upon past Subcommittee investigations which found 
that the 50 States establish nearly two million U.S. companies 
each year without knowing who is behind them, the lack of 
ownership information requirements invite wrongdoers to 
incorporate in the United States, and that same lack of 
ownership information impedes U.S. law enforcement efforts.
    Among other provisions, the bill would require the States 
to obtain beneficial ownership information for the corporations 
or limited liability companies formed within their borders; 
require States to provide that information to law enforcement 
in response to a subpoena or summons; and impose civil and 
criminal penalties for persons who knowingly submit false 
ownership information. The bill would also exempt all publicly 
traded corporations, since they already provide ownership 
information to the SEC. The bill was referred to the Committee 
on Homeland Security and Governmental Affairs which took no 
further action.

                              IV. Reports

    In connection with its investigations, the Subcommittee 
frequently issues lengthy and detailed reports. During the 
111th Congress, the Subcommittee released two such reports, 
listed below, both of which have been partly described in 
connection with Subcommittee hearings.

A. Excessive Speculation in the Wheat Market, July 21, 2009 (Report 
        prepared by the Majority and Minority staffs, and printed in 
        the record of the related Subcommittee hearing on July 21, 
        2009.)

    On June 24, 2009, Subcommittee Chairman Levin and then 
Acting Ranking Minority Member Coburn released a 261-page 
bipartisan staff report entitled, ``Excessive Speculation in 
the Wheat Market.'' This report, the result of a year-long 
Subcommittee investigation, examined how commodity index 
traders, in the aggregate, made such large purchases on the 
Chicago wheat futures market that they pushed up futures 
prices, disrupted the normal relationship between futures 
prices and cash prices for wheat, and caused farmers, grain 
elevators, grain processors, consumers, and others to 
experience significant unwarranted costs and price risks.
    The report's conclusions were based upon a review of 
millions of trading records from the Chicago Mercantile 
Exchange (CME), Kansas City Exchange, Minneapolis Grain 
Exchange, the Commodity Futures Trading Commission (CFTC), and 
others, which the Subcommittee used to track and analyze wheat 
prices. The data showed that commodity index traders--traders 
who are not producers or consumers of wheat, but buy wheat 
futures to help offset their financial exposure from selling 
commodity index instruments to third parties--injected billions 
of dollars, in the aggregate, into the wheat futures market 
over the last 6 years. Commodity index traders increased their 
holdings from a total of about 30,000 wheat contracts in 2004, 
up to 220,000 contracts in 2008. That sevenfold increase 
dramatically enlarged the market share of commodity index 
trading so that, in each year since 2006, commodity index 
traders held between 35 percent and 50 percent of all 
outstanding wheat futures contracts on the Chicago exchange.
    The report determined that there was substantial and 
persuasive evidence that, by purchasing so many futures 
contracts, commodity index traders, in the aggregate, pushed up 
futures prices, created an unprecedented, large, and persistent 
gap between futures and cash wheat prices in the Chicago 
market, and impeded the two prices from converging at contract 
expiration. The report presented evidence, for example, that 
the average gap between futures and cash prices on the 
expiration of futures contracts on the Chicago exchange, called 
the ``basis,'' grew from about 13 cents per bushel in 2005, to 
34 cents in 2006, to 60 cents in 2007, to $1.53 in 2008, a 
tenfold increase in 4 years. The Levin-Coburn report found that 
the large number of wheat futures contracts purchased by index 
traders on the Chicago exchange created additional demand for 
those contracts and was a major contributing factor in the 
increasing difference between wheat futures prices and cash 
prices from 2006 to 2008.
    The report also determined that these unwarranted price 
changes imposed an undue burden on wheat farmers, grain 
elevators, grain merchants, grain processors, consumers, and 
others by making it difficult to use the futures market to 
protect against price changes and by generating significant 
unanticipated costs. Those costs included higher margin calls 
due to higher futures prices; failed hedges; and disruption of 
normal pricing patterns and relationships. The Levin-Coburn 
report concluded that the large number of wheat futures 
contracts purchased and held by commodity index traders on the 
Chicago futures exchange over the last 5 years constituted 
excessive speculation.
    The Commodity Exchange Act requires the key Federal 
commodities regulator, the CFTC, to prevent excessive 
speculation by imposing position limits on commodity traders. 
But the report found that, in the wheat market, instead of 
restricting traders to no more than 6,500 wheat contracts at a 
time, its standard position limit for wheat, the CFTC had 
allowed some commodity index traders to hold up to 10,000, 
26,000, or even 53,000 contracts at a time. The report also 
disclosed that, at the time of the inquiry, six commodity index 
traders were authorized to hold a total of up to 130,000 wheat 
contracts at a time, instead of up to 39,000 contracts, or one-
third less if the standard position limits had been applied. 
The Levin-Coburn report concluded that the CFTC actions to 
waive position limits for commodity index traders facilitated 
excessive speculation in the Chicago wheat futures market, and 
that waiving position limits for those index traders was 
inconsistent with the CFTC's statutory mandate to maintain 
position limits to prevent excessive speculation.
    The report also examined the impact of inflated futures 
prices on Federal crop insurance, which is backed with taxpayer 
dollars. The report explained that the Federal crop insurance 
program uses settlement prices from certain futures contracts 
to determine how much money should be paid to a farmer who has 
purchased coverage and to set insurance premiums. Futures 
prices that are higher than justified by supply and demand 
fundamentals in the cash market increase the cost of purchasing 
crop insurance for farmers as well as for Federal taxpayers who 
share in the cost. The report explained that the increasing 
lack of predictability as to the difference between the futures 
price and the cash price for wheat--the ``basis''--also 
undermines the reliability and effectiveness of the formulas 
used to calculate insurance payouts. The report concluded that, 
because Federal crop insurance uses futures prices in its 
calculations, inflated futures prices can inflate insurance 
premiums, whose cost is shared by farmers and taxpayers, and 
impair the accuracy of the formulas used to determine the 
payouts to farmers, resulting in either overpayments or 
underpayments.
    To stop excessive speculation in the wheat market, the 
Levin-Coburn report recommended that the CFTC phase out 
existing waivers that permitted commodity index traders to 
exceed the standard limit of 6,500 wheat contracts per trader 
at any one time, and apply the standard position limit to all 
commodity index traders in the wheat market. If pricing 
problems persisted on the Chicago exchange, the report 
recommended lowering the position limit further, such as to the 
5,000 contract limit that applied to wheat traders until 2005. 
In addition, the report recommended that the CFTC undertake an 
analysis of the impact of commodity index trading on other 
commodities, including crude oil, to determine if excessive 
speculation was distorting prices, and whether position limit 
waivers for index traders should be phased out to eliminate 
excessive speculation. The report also urged the CFTC to 
develop reliable data on the extent to which commodity index 
traders purchase non-agricultural commodity futures contracts, 
especially for crude oil and other energy commodities, so that 
data could be analyzed to detect and prevent excessive 
speculation.
    This report was the fifth in a series released by the 
Subcommittee on commodity pricing issues since 2003. The first 
four focused on energy prices, including for gasoline, crude 
oil, and natural gas. This report was the first by the 
Subcommittee to examine agricultural prices.

B. Keeping Foreign Corruption Out of the United States: Four Case 
        Histories, February 4, 2010 (Report prepared by the Majority 
        and Minority staffs, and released in conjunction with and 
        reprinted in the record of a related Subcommittee hearing on 
        February 4, 2010.)

    On February 4, 2010, Subcommittee Chairman Levin and 
Ranking Minority Member Coburn released a 386-page bipartisan 
staff report entitled, ``Keeping Foreign Corruption Out of the 
United States: Four Case Histories.'' The report examined how 
politically powerful foreign officials, their relatives, and 
close associates--referred to in international agreements as 
``Politically Exposed Persons'' (PEPs)--used the services of 
U.S. professionals and financial institutions to bring large 
amounts of suspect funds into the United States to advance 
their interests. It is the latest in a series of Subcommittee 
hearings and reports examining how foreign corruption affects 
the United States.
    During the course of its investigation, the Subcommittee 
staff conducted over 100 interviews, issued over 50 subpoenas, 
and reviewed millions of pages of documents. Using four case 
histories, the report exposed how some PEPs used U.S. lawyers, 
real estate and escrow agents, lobbyists, bankers, and even 
university officials, to circumvent U.S. anti-money laundering 
(AML) and anti-corruption safeguards. It also identified some 
of the legal gaps, poor due diligence practices, and inadequate 
PEP controls that, at times, made these tactics possible.
    Obiang Case History. The first case history focused on 
Teodoro Obiang, son of the President of Equatorial Guinea (EG) 
and an EG cabinet minister who, from 2004 to 2008, used U.S. 
professionals and financial institutions to move over $110 
million in suspect funds into the United States. At the time of 
the report, Mr. Obiang was the subject of an ongoing U.S. 
criminal investigation, had been identified in corruption 
complaints filed in France, and was a focus of a 2004 
Subcommittee hearing showing how Riggs Bank facilitated EG 
officials in opening accounts and engaging in suspect 
transactions.
    The report detailed how two U.S. lawyers, Michael Berger 
and George Nagler, helped Mr. Obiang circumvent U.S. AML and 
PEP controls at U.S. financial institutions by allowing him to 
use attorney-client, law office, and shell company accounts as 
conduits for his funds and without alerting the bank to his use 
of those accounts. If a bank later uncovered Mr. Obiang's use 
of an account and closed it, the lawyers helped him open 
another. The lawyers also formed five U.S. shell companies for 
Mr. Obiang, with names that included Beautiful Vision, 
Unlimited Horizon, and Sweetwater Malibu. In addition, two U.S. 
real estate agents, Neal Baddin and John Kerrigan, helped Mr. 
Obiang buy and sell high-end real estate in California 
including the purchase of a $30 million Malibu residence with 
funds wire transferred from Equatorial Guinea. Mr. Obiang also 
used a U.S. escrow agent to purchase a $38.5 million U.S.-built 
Gulfstream jet. When one escrow agent, McAfee and Taft, as a 
voluntary AML precaution, refused to proceed without 
information about the source of the funds for the purchase, 
another escrow agent, International Airline Title Services 
Inc., stepped in and completed the transaction with no 
questions asked. U.S. law currently exempts attorneys, real 
estate agents, and escrow agents from the PATRIOT Act's 
requirement to establish AML programs. Mr. Obiang also brought 
large amounts of suspect funds into the United States by taking 
advantage of U.S. wire transfer systems that were not 
programmed to block wire transfers bearing his name.
    Bongo Case History. The second case history focused on Omar 
Bongo, President of Gabon for 41 years until his death in June 
2009. President Omar Bongo was a focus of a 1999 Subcommittee 
hearing showing how he used offshore shell companies to move 
over $100 million in suspect funds through accounts at Citibank 
Private Bank. He was also mentioned in connection with the ELF 
oil scandal and recent corruption complaints filed in France. 
The case history focused on several examples of how President 
Bongo used lobbyists and bank accounts belonging to family 
members to bring suspect funds into the United States.
    The report detailed how, from 2003 through at least 2007, 
Mr. Bongo employed a U.S. lobbyist, Jeffrey Birrell, to 
purchase six U.S.-built armored vehicles and obtain U.S. 
Government permission to buy six U.S.-built C-130 military 
cargo aircraft from Saudi Arabia to support the Bongo regime. 
As part of the armored car and C-130 transactions, over $18 
million was wire transferred from Gabon into U.S. corporate 
bank accounts controlled by Mr. Birrell. Mr. Birrell received 
the funds primarily from President Omar Bongo and an entity 
called Ayira. He later transferred $9.2 million of the funds 
provided by Ayira to a foreign account held in the name of 
President Omar Bongo in Malta. He also wire transferred over 
$4.2 million to foreign bank accounts opened in the name of a 
senior Bongo adviser, and over $1 million in payments to 
foreign bank accounts held in the name of various 
``consultants.'' Mr. Birrell's corporate accounts served as a 
conduit for those Bongo funds.
    In addition, President Bongo provided large amounts of cash 
to his daughter, Yamilee Bongo-Astier, who deposited the cash 
into bank accounts and safe deposit boxes at U.S. financial 
institutions in New York from 2000 to 2007. Ms. Bongo-Astier 
made multiple large dollar deposits into her accounts at banks 
that were unaware of her PEP status, but knew she was an 
unemployed student. One bank closed her account after receiving 
an $183,500 wire transfer from Gabon; another did so after 
discovering she had $1 million in $100 bills in her safe 
deposit box, which she said her father had brought into the 
United States using his diplomatic status and without declaring 
the cash to U.S. authorities. Another member of the Bongo 
family, Inge Lynn Collins Bongo, was the wife of Ali Bongo, the 
current President of Gabon and its former Minister of Defense. 
In 2000, she formed a U.S. trust, the Collins Revocable Trust, 
and opened accounts in the name of that Trust at banks in 
California. For 3 years, from 2000 to 2003, Mrs. Bongo accepted 
multiple large offshore wire transfers into the Trust accounts 
and used the funds to support a lavish lifestyle and move money 
among a network of bank and securities accounts benefitting her 
and her husband. Due to inadequate PEP lists prepared by third 
party vendors, the financial institutions administering the 
Bongo accounts were, more often than not, unaware of their 
clients' PEP status and did not subject their accounts to 
enhanced monitoring.
    Douglas-Abubakar Case History. The third case history 
focused on Jennifer Douglas, a U.S. citizen and fourth wife of 
Atiku Abubakar, former Vice President and former candidate for 
President of Nigeria. The report detailed how, from 2000 to 
2008, Ms. Douglas helped her husband bring over $40 million in 
suspect funds into the United States through wire transfers 
sent by offshore corporations to U.S. bank accounts. In a 2008 
civil complaint, the SEC alleged that Ms. Douglas received over 
$2 million in bribe payments in 2001 and 2002, from Siemens AG, 
a major German corporation. While Ms. Douglas denied 
wrongdoing, Siemens had already pled guilty to U.S. criminal 
charges, settled civil charges related to bribery, and told the 
Subcommittee that it had sent the payments to one of her U.S. 
accounts. In 2007, Mr. Abubakar was the subject of corruption 
allegations in Nigeria related to the Petroleum Technology 
Development Fund.
    Of the $40 million in suspect funds, $25 million was wire 
transferred by offshore corporations into more than 30 U.S. 
bank accounts opened by Ms. Douglas, primarily by Guernsey 
Trust Company Nigeria Ltd., LetsGo Ltd. Inc., and Sima Holding 
Ltd. The U.S. banks maintaining those accounts were, at times, 
unaware of her PEP status, and they allowed multiple, large 
offshore wire transfers into her accounts. As each bank began 
to question the offshore wire transfers, Ms. Douglas indicated 
that all of the funds came from her husband and professed 
little familiarity with the offshore corporations actually 
sending her money. When one bank closed her account due to the 
offshore wire transfers, her lawyer helped convince other banks 
to provide new accounts. In addition, two of the offshore 
corporations wire transferred about $14 million over 5 years to 
American University in Washington, DC, to pay for consulting 
services related to the development of a Nigerian university 
founded by Mr. Abubakar. American University accepted the wire 
transfers without asking about the identity of the offshore 
corporations or the source of their funds, because under 
current law, the University had no legal obligation to inquire.
    Angola Case History. The fourth and final case history 
examined three Angolan PEP accounts, involving an Angolan arms 
dealer, an Angolan government official, and a small Angolan 
private bank that catered to PEP clients, to show how the 
accountholders gained access to the U.S. financial system and 
attempted to exploit weak U.S. AML and PEP safeguards.
    First, the report examined Pierre Falcone, a notorious arms 
dealer who supplied weapons during the Angolan civil war in 
violation of a U.S. arms embargo, was a close associate of 
Angolan President Jose Eduardo Dos Santos, and was the target 
of criminal investigations resulting in his imprisonment in 
France. The report detailed how he used personal, family, and 
U.S. shell company accounts at Bank of America in Arizona to 
bring millions of dollars in suspect funds into the United 
States and move those funds among a worldwide network of 
accounts. Bank of America maintained nearly 30 accounts for the 
Falcone family from 1989 to 2007, did not treat Mr. Falcone as 
a PEP, and did not consider his accounts to be high risk, even 
after learning in 2005 that he was an arms dealer and had been 
imprisoned in the past. In 2007, after receiving a Subcommittee 
inquiry about the Falcone accounts, the bank conducted a new 
due diligence review, closed the accounts, and expressed regret 
at providing Mr. Falcone with banking services for years.
    Next, the report examined Dr. Aguinaldo Jaime, a senior 
Angolan government official, who was head of Banco Nacional de 
Angola (BNA), the Angolan Central Bank, when he attempted, on 
two occasions in 2002, to transfer $50 million in government 
funds to a private account in the United States, only to have 
the transfers reversed by the U.S. financial institutions 
involved. Dr. Jaime invoked his authority as BNA Governor to 
wire transfer the funds to a private bank account in California 
during the first attempt and, during the second attempt, to 
purchase $50 million in U.S. Treasury bills for transfer to a 
private securities account in California. Both transfers were 
initially allowed, then reversed by bank or securities firm 
personnel who became suspicious of the transactions. Partly as 
a result of those transfers and the corruption concerns they 
raised, in 2003, Citibank closed not only the accounts it had 
maintained for BNA, but all other Citibank accounts for Angolan 
government entities, and closed its office in Angola. The 
report observed that, in contrast, HSBC continued to provide 
banking services to BNA in the United States and elsewhere, and 
may be providing the Central Bank with offshore accounts in the 
Bahamas.
    Finally, the report examined Banco Africano de 
Investimentos (BAI), a $7 billion private Angolan bank whose 
largest shareholder was Sonangol, the Angolan State-owned oil 
company. The report detailed how BAI offered banking services 
to Sonangol, Angolans in the oil and diamond industries, and 
Angolan government officials. It noted that, over the last 10 
years, BAI gained entry to the U.S. financial system through 
accounts at HSBC in New York, using HSBC wire transfer 
services, foreign currency exchange, and U.S. dollar credit 
cards for BAI clients, despite providing troubling answers 
about its ownership and failing to provide a copy of its AML 
procedures to HSBC after repeated requests. Despite the 
presence of PEPs in BAI's management and clientele, HSBC 
decided against designating BAI as a ``Special Category of 
Client'' requiring additional oversight until November 2008, 
years after the account was first opened.
    The Levin-Coburn report contained a number of 
recommendations to stop PEPs from misusing U.S. professionals 
and financial institutions to bring illicit funds into the 
United States. Among other measures, the report urged Congress 
to enact a law and the U.S. Treasury Department to issue rules 
implementing the PEP controls identified in a World Bank study, 
including by requiring banks to use reliable PEP databases to 
screen clients, use account beneficial ownership forms that ask 
for PEP information, obtain financial declaration forms filed 
by PEP clients with their governments, and conduct annual 
reviews of PEP account activity to detect and stop suspicious 
transactions. The report also recommended that Treasury repeal 
all of the exemptions it granted in 2002, from the PATRIOT Act 
requirement to establish AML programs, including for real 
estate and escrow agents. The report also recommended that 
Treasury require U.S. financial institutions to institute 
stronger controls on attorney-client and law office accounts to 
prevent circumvention of U.S. AML and PEP controls. In 
addition, the Levin-Coburn report recommended that Congress 
enact legislation requiring persons forming U.S. corporations 
to disclose the names of the beneficial owners of those U.S. 
corporations. Finally, the report recommended strengthening 
U.S. immigration and visa provisions to keep foreign corruption 
out of the United States.

                 V. GAO Requested and Sponsored Reports

    In connection with its investigations, the Subcommittee 
makes extensive use of the resources and expertise of the 
Government Accountability Office (GAO), the Offices of 
Inspectors General (OIGs) at various Federal agencies, and 
other entities. During the 111th Congress, the Subcommittee 
requested a number of reports and studies on issues of 
importance to Congress and to U.S. consumers. Most of these 
reports have already been described in connection with 
Subcommittee hearings. Several additional reports that were of 
particular interest, and that were not covered by Subcommittee 
hearings, are the following:

A. Bank Secrecy Act: Federal Agencies Should Take Action to Further 
        Improve Coordination and Information-Sharing Efforts (GAO-09-
        227), February 12, 2009

    Since 1999, the Subcommittee has conducted multiple 
investigations into money laundering vulnerabilities affecting 
the United States and worked to strengthen U.S. anti-money 
laundering (AML) laws. In 2009, in response to a bipartisan 
request from Subcommittee Chairman Levin and Ranking Minority 
Member Coleman, later replaced by Senator Coburn, GAO issued a 
report providing an overview of Federal AML programs designed 
to protect the United States from terrorists, criminals, and 
other wrongdoers. The GAO report disclosed that, while AML 
programs at U.S. banks are well developed, AML programs at 
securities firms, commodity traders, and money service 
businesses are only partially in place, while AML programs at 
hedge funds, private equity funds, and other covered businesses 
have yet to be mandated or implemented.
    The Federal legal framework for combating money laundering 
began with the Bank Secrecy Act of 1970, has been repeatedly 
amended over the years, and was substantially strengthened by 
the USA PATRIOT Act of 2001 (Patriot Act). The PATRIOT Act, for 
the first time, required AML safeguards to be required for 
business sectors other than banking. The lead Federal agency 
charged with administering AML requirements is the Financial 
Crimes Enforcement Network (FinCEN), a bureau of the U.S. 
Department of the Treasury. FinCEN works with and relies on 
multiple Federal and State agencies to develop AML regulations, 
oversee AML compliance, and take AML enforcement actions. GAO 
was asked to describe how AML responsibilities were 
distributed; describe how FinCEN and other agencies were 
implementing their AML responsibilities; and evaluate their 
coordination efforts. GAO concluded that, while Federal 
agencies had enhanced their AML compliance programs over the 
years, more work was needed to strengthen coordination and 
information-sharing efforts.
    The GAO report explained that FinCEN, with a staff of about 
300 and an annual budget of about $73 million, provided general 
oversight of U.S. AML programs and was charged by Treasury with 
issuing AML regulations and enforcing compliance. The report 
also explained that FinCEN had delegated primary AML 
regulatory, examination, and enforcement authority to other 
Federal agencies. For example, FinCEN had delegated AML 
oversight of the banking sector to the five Federal banking 
agencies, the Federal Reserve System, Federal Deposit Insurance 
Corporation (FDIC), Office of the Comptroller of the Currency 
(OCC), Office of Thrift Supervision (OTS), and National Credit 
Union Administration (NCUA). FinCEN delegated AML oversight of 
securities firms to the Securities and Exchange Commission 
(SEC) and of commodity firms to the Commodity Futures Trading 
Commission (CFTC), both which, in turn, delegated day-to-day 
oversight to certain self-regulatory organizations (SROs), such 
as the Financial Industry Regulatory Agency (FINRA), National 
Futures Association, and Chicago Mercantile Exchange. FinCEN 
had delegated AML oversight of all other types of covered 
financial institutions, including money service businesses, 
casinos, and insurance companies--sometimes referred to as 
nonbank financial institutions or NBFIs--to the Internal 
Revenue Service (IRS). Many of these agencies also had 
independent statutory authority to impose AML requirements.
    GAO determined that FinCEN worked with each of the agencies 
to develop appropriate regulations, examination standards, and 
enforcement actions to ensure compliance with Federal AML laws. 
Key AML obligations include implementing written AML policies 
and procedures, appointing an AML compliance officer, providing 
AML training to personnel, and auditing AML compliance. Most 
covered institutions are also required to file suspicious 
activity reports with FinCEN. GAO determined that FinCEN also 
retained enforcement authority for AML violations, and could 
take enforcement actions independently or concurrently with the 
functional regulators.
    The GAO report identified significant discrepancies among 
the agencies in the number of examiners with AML expertise and 
the frequency of AML examinations. The report showed that 
banking institutions underwent a higher rate of AML 
examinations compared to other covered firms, including broker-
dealers, mutual funds, and commodity firms. The report also 
showed that the number of AML examinations performed by Federal 
agencies had declined in recent years, with a corresponding 
decrease in the number of AML violations identified and in the 
number of enforcement actions taken. With respect to the IRS, 
the GAO report explained that the IRS has no independent AML 
enforcement authority and referred its cases to FinCEN for 
enforcement actions. The GAO report found that, from 2006 to 
2008, the IRS had referred about 50 cases to FinCEN which took 
an average of 485 days--more than 1 year--to review the 
referrals. The GAO report did not specify how any enforcement 
actions were actually taken by FinCEN on the IRS-referred 
cases. GAO reported that FinCEN and the IRS had accepted a GAO 
recommendation to strengthen FinCEN procedures for handling 
enforcement referrals.
    The GAO report also stated that, while banking and IRS 
examiners used AML examination materials available to the 
public, securities and commodity examiners use examination 
materials which were not publicly available and could not be 
discussed in a public setting. The GAO report did not provide 
any rationale for keeping the manuals secret and pointed out 
the benefits of Federal regulators developing and applying 
consistent AML examination standards across business sectors. 
GAO also noted that while FinCEN and the IRS had issued an 
examination manual for money services businesses, no such 
manual existed for other types of NBFIs with AML obligations. 
GAO also found that the IRS had not fully coordinated its 
examinations of money service businesses with the States, 
potentially missing opportunities to reduce duplication and 
leverage resources.
    The GAO report contained a number of criticisms of FinCEN. 
GAO noted, for example, that FinCEN took years to conclude AML 
memorandums of understanding with the key Federal agencies 
charged with AML oversight. It also took over a year to review 
cases referred by the IRS for enforcement actions. The report 
noted that FinCEN took until 2006, to replace a paper-based 
system for tracking case referrals with an electronic case 
management system. GAO also noted that, despite a 2001 PATRIOT 
Act requirement for all covered businesses to institute AML 
programs to prevent terrorist financing and money laundering, 
FinCEN had yet to issue regulations requiring several of these 
firms to set up AML programs, including hedge funds and private 
equity funds that funnel billions of dollars in offshore funds 
into the United States. In 2002, FinCEN proposed a rule to 
cover those investment firms, but never finalized it. The GAO 
report also highlighted and recommended reversing an ongoing 
FinCEN policy that denied direct access to its database of 
suspicious activity and currency reports for SEC and CFTC self-
regulatory organizations and some State regulators.
    GAO also recommended that all of the Federal and State 
agencies involved with AML oversight establish a nonpublic 
forum in which they could discuss and strengthen coordination 
of regulatory, examination, and enforcement issues.

B. Securities and Exchange Commission: Oversight of U.S. Equities 
        Market Clearing Agencies (GAO-09-318R), February 26, 2009

    In response to a joint request by Subcommittee Chairman 
Levin and Finance Committee Ranking Minority Member Grassley, 
GAO released a report analyzing the clearing and settlement 
process for U.S. equities markets, with a particular focus on 
transactions in which one party fails to deliver the security 
promised. Failures to deliver (FTDs) had become a focus of 
market participants complaining of manipulative short selling.
    The report observed that the prompt, accurate, and 
efficient settlement of trades is essential to the smooth 
functioning of any equities market. When investors agree to 
trade an equity security, the purchaser promises to deliver 
cash to the seller, and the seller promises to deliver the 
security to the purchaser. The process by which the seller 
receives payment and the buyer receives the security is known 
as the clearance and settlement process and is carried out by a 
clearing agency. The report noted that, in U.S. equities 
markets, a centralized clearance and settlement system had been 
established to reduce risks and increase market efficiencies. 
Trades were typically cleared and settled through self-
regulatory organizations (SRO) that register with and are 
subject to oversight by the Securities and Exchange Commission 
(SEC). GAO reported that, in the United States, virtually all 
equity securities trades were cleared and settled through the 
National Securities Clearing Corporation (NSCC) or the 
Depository Trust Company (DTC), both of which were clearing 
agency subsidiaries of the Depository Trust and Clearing 
Corporation (DTCC).
    The GAO report provided a detailed description of the NSCC 
and DTC processes for clearing and settling equities trades, as 
well as the SEC's oversight efforts through its examination 
program for clearing agencies. The report included an 
explanation of how the NSCC and DTC systems handled FTDs.
    GAO explained that the U.S. clearance and settlement 
process for equity securities operated on a standard 3-day 
settlement cycle. The GAO report stated that, according to 
DTCC, 99.9 percent of daily equities transactions by dollar 
value cleared and settled within the standard 3-day settlement 
period. In the remaining transactions, the seller failed to 
deliver the securities on time, resulting in an FTD. GAO 
reported that, as of December 31, 2007, the value of aggregated 
FTDs was $7.5 billion.
    GAO reported that, due to the volume and value of trading 
in U.S. equity markets, NSCC netted trades and payments among 
its participants using a Continuous Net Settlement System. GAO 
explained that this system was a book entry accounting system, 
whereby each NSCC participant's daily purchases and sales of 
securities, based on trade date, were automatically netted into 
one long position (right to receive) or one short position 
(obligation to deliver) for each security purchased or sold. 
The participant's corresponding payment obligations were, 
similarly, netted into one obligation to pay or one obligation 
to receive money.
    GAO explained that, for each participant with a short 
position on settlement date, NSCC instructed the securities 
depository designated by the participant, typically DTC, to 
deliver securities from the participant's account at the 
depository to the NSCC's account. NSCC then instructed the 
depository to deliver those securities from NSCC's account to 
participants with net long positions in the security. If a 
participant failed to deliver the total number of securities 
that they owed NSCC on a particular settlement date, NSCC might 
be unable to meet its delivery obligations, resulting in FTDs 
for participants with net long positions.
    GAO reported that, according to the SEC, many FTDs were 
caused by processing delays or mechanical errors, and were 
typically resolved within a few days. GAO observed that FTDs 
could also result from naked short selling. While not defined 
in the Federal securities laws, GAO explained that, according 
to the SEC, ``naked'' short selling generally referred to 
selling a security without having purchased or borrowed it to 
make delivery, potentially resulting in a FTD. The GAO report 
explained that FTDs may deprive shareholders of the benefits of 
ownership, such as voting and lending. In addition, GAO 
reported that, in recent years, investors, publicly traded 
companies, and others had expressed concerns that FTDs may be 
indicative of an illegal trading strategy known as manipulative 
naked short selling, in which short sellers attempt to profit 
by inundating the market with sales of a security to 
artificially drive down its stock price. GAO reported that, to 
facilitate and monitor industry compliance with rules and 
emergency orders to curb FTDs and potential manipulative naked 
short selling, NSCC electronically submitted FTD data on a 
daily basis to the SEC and U.S. stock exchanges.
    The GAO report also explained that, to minimize FTDs, if a 
participant's account did not have the required amount of 
securities to be delivered, NSCC used an automated Stock Borrow 
Program to borrow the shares to meet as many of the 
participant's delivery obligations as possible. Under this 
program, NSCC participants could instruct NSCC on the specific 
securities from their DTC account that were available for 
borrowing to cover NSCC's Continuous Net Settlement System 
delivery shortfalls. Any shares that NSCC borrowed were debited 
from the lending participant's DTC account, delivered to NSCC, 
and, subsequently, delivered to a NSCC participant with a net 
short position. NSCC created a right to receive a (net long) 
position for the lender in the Continuous Net Settlement System 
to show that it was owed securities. Until the securities were 
returned, the lending participant no longer had ownership 
rights in them and, therefore, could not re-lend them. The GAO 
report also explained that any delivery made using the Stock 
Borrow Program did not relieve the NSCC participant that failed 
to deliver of its obligation to deliver the relevant securities 
to the NSCC.
    In addition to describing the clearance and settlement 
process in U.S. stock markets, the GAO report reviewed the 
examination program constructed by the SEC for clearing 
agencies. GAO explained that the SEC Office of Compliance 
Inspections and Examinations (OCIE) administered the SEC's 
nationwide examination and inspection program, including for 
clearing agencies. GAO determined that the OCIE conducted both 
regular cycle and special examinations for clearing agencies. 
GAO reported that the largest clearing agencies, including NSCC 
and DTC, were examined every other year, while smaller clearing 
agencies were examined on a 2- or 3-year cycle, depending on 
OCIE resources. GAO explained that these examinations included 
reviewing the clearing agency's process for handling FTDs.

C. Regulation SHO: Recent Actions Appear to Have Initially Reduced 
        Failures to Deliver, but More Industry Guidance Is Needed (GAO-
        09-483), May 12, 2009

    In response to a joint request by Subcommittee Chairman 
Levin, Finance Committee Ranking Minority Member Grassley, and 
Judiciary Subcommittee on Crime and Drugs Chairman Specter, GAO 
released a report analyzing recent actions taken by the 
Securities and Exchange Commission (SEC) to curb failures to 
deliver securities and manipulative naked short selling.
    A ``short sale'' occurs when a person sells a borrowed 
stock. A ``naked'' short sale refers to selling short without 
having actually borrowed the securities needed to make 
delivery. After making the sale, the seller then ``covers'' the 
position by actually buying the stock and returning it to the 
lender. If the stock price falls in value in the interim, then 
the short seller profits by selling the stock for more than it 
cost to repurchase the shares, in other words by selling high 
and then buying low. The GAO report explained, ``In general, 
short selling is used to profit from an expected downward price 
movement, provide liquidity in response to unanticipated 
demand, or hedge the risk of a long position . . . in the same 
or related security.''
    Because short sellers may profit on the decline in a 
company's stock price, they may seek ways to drive down the 
stock prices of the companies in which they invest. In 
addition, while most short selling is legal, some is not. The 
GAO report observed that ``short selling also may be used to 
illegally manipulate the prices of securities,'' by depressing 
the price of a security to induce others to buy or sell it. 
Naked short selling is of particular concern since it may be 
used to create an artificial downward pressure on a stock price 
by flooding the market with sales.
    Failures to deliver (FTD) occur when the seller of a stock 
does not deliver the stock to the purchaser within the required 
settlement period, which is typically 3 days. Although FTDs can 
be caused by mechanical errors and processing delays, they also 
result from naked short selling. The GAO report observed that 
FTDs ``may undermine the confidence of investors, making them 
reluctant to commit capital to an issuer that they believe to 
be subject to such manipulative conduct.''
    In 2004, the SEC issued Regulation SHO to, among other 
things, address large and persistent FTDs and curb the 
potential for manipulative naked short selling in equity 
securities. In July 2008, in the midst of the financial crisis, 
the SEC issued an emergency order that restricted short sales 
in the publicly traded securities of 19 large financial 
institutions, unless the seller had borrowed, or arranged to 
borrow, the security prior to the sale, and required delivery 
of the security on the settlement date. Almost immediately, the 
order was amended to exempt market makers engaged in market 
making transactions and the sales of restricted securities. 
This ``pre-borrow'' requirement expired in August 2008. In 
September 2008, the SEC issued another emergency order that, 
among other measures, temporarily increased delivery 
requirements on all short sales, implemented an anti-fraud rule 
regarding short sales, and temporarily banned all short sales 
involving approximately 800 financial institutions. The 
enhanced delivery requirement in this temporary order was 
scheduled to expire on July 31, 2009.
    GAO was asked to provide an overview of Regulation SHO and 
related SEC actions; regulators' and market participants' views 
on the effectiveness of the rule; and regulators' efforts to 
enforce the rule. As part of its inquiry, GAO analyzed FTD data 
from January 2005 through December 2008. The GAO report found 
that the SEC's actions in September 2008, had resulted in a 
significant decrease in the number of securities with large 
FTDs. GAO also found that the staff of the SEC and Financial 
Industry Regulatory Authority (FINRA) agreed that, in 
connection with short selling, market manipulation ``is 
difficult to detect and successfully prosecute, and the 
potential damage to an individual company could be severe.'' 
The SEC and FINRA staff also agreed that the potential for 
market manipulation continued even under the temporary rule.
    Some of the market participants interviewed by GAO 
recommended that the SEC issue a final rule requiring all short 
sellers to borrow securities before any short sale. The SEC 
staff said the Commission was considering imposing a pre-borrow 
requirement to curb FTDs and market manipulation related to 
naked short selling. The SEC staff said that the Commission was 
also considering, however, whether the costs of a pre-borrow 
requirement might outweigh the benefits because, among other 
factors, FTDs represented only 0.01 percent of the dollar value 
of trades. The GAO report also recommended that the SEC improve 
industry guidance regarding the steps that should be taken to 
implement a pre-borrow requirement.

D. Credit Cards: Fair Debt Collection Practices Act Could Better 
        Reflect the Evolving Debt Collection Marketplace and Use of 
        Technology (GAO-09-748), September 21, 2009

    To advance the Subcommittee's longstanding concerns about 
credit card and debt collection abuses, four Subcommittee 
members, Chairman Levin, Ranking Minority Member Coleman, later 
replaced by Senator Coburn, and Senator McCaskill, asked GAO to 
conduct an investigation into credit card debt collection 
practices. The resulting GAO report provided a detailed 
description of the credit card debt collection industry and 
abusive debt collection practices; found that the key Federal 
law, the Fair Debt Collection Practices Act (FDCPA), was 
outdated and ineffective; reported Federal enforcement cases to 
stop abusive practices were infrequent; and demonstrated that 
consumer protections against abusive debt collection practices 
needed to be modernized and strengthened.
    To conduct its inquiry, GAO analyzed documents and 
interviewed representatives from six large credit card issuers, 
six third-party debt collection agencies, six debt buyers, two 
law firms, Federal and State agencies, and attorneys and 
organizations representing consumers and collectors.
    GAO presented evidence indicating that credit card 
delinquency rates had spiked since 2007, with more than $23 
billion in nonsecuritized debt 30 to 180 days late in 2008. 
According to Federal Reserve data cited in the report, about 
6.6 percent of credit cards were 30 or more days past due in 
the first quarter of 2009, the highest rate in 18 years.
    To collect this debt, GAO determined that credit card 
issuers typically used their own personnel, in internal 
collection departments, to collect on credit card debt that is 
less than 6 months old, but often hired third-party collection 
agencies or law firms to collect older debt. GAO noted that 
contracts between the credit card issuers and debt collectors 
often specified the collection policies and practices that 
should be used. In addition, credit card issuers sometimes sold 
portfolios of delinquent credit card debt to third party debt-
buyers, trading potential long-term cash flows for the short-
term proceeds of a sale.
    GAO reported that, according to the U.S. Census Bureau, in 
2006, more than 4,400 debt collection companies in the United 
States employed approximately 143,000 people. Many of those 
companies were very small, while a few debt collection firms 
were extremely large: 43 percent employed 4 or fewer people, 
while about 3 percent employed 500 or more. GAO also reported 
that the debt buying industry had grown, by one industry 
estimate, from $57 billion of purchased debt in 2003, to $100 
billion in 2006.
    The GAO report described how different types of credit card 
debt were categorized and sold. GAO observed that credit card 
accounts could be resold multiple times, and that several 
factors influenced the price of these accounts, including their 
age, location, and number of times previously placed for 
collection. The report also presented evidence that the price 
of delinquent debt had declined in recent years. According to 
one industry source, ``fresh'' debt--debt that is 6 to 9 months 
past due and never placed with a collection agency--sold for 
about 15 cents on the dollar in March 2007; in January 2009, it 
sold for about 6 cents on the dollar. ``Tertiary'' debt--debt 
that is more than 2 years past due or previously placed with 
two collection agencies--sold for about 4 cents on the dollar 
in March 2007; in January 2009, it sold for between 1 and 2 
cents.
    GAO also reported on how credit card issuers and third-
party debt collectors attempted to collect debt, citing 
evidence of a rising volume of debt collection court cases 
placing increasing burdens on State courts. GAO noted that the 
Federal Trade Commission has reported that the majority of 
cases on many State court dockets on any given day are debt 
collection cases. GAO also reported that a study by the Urban 
Justice Center estimated, for example, that in 2006, 320,000 
debt collection cases were filed just in New York City's Civil 
Court. That study also estimated that, in Chicago's Cook County 
Circuit Court, more than 119,000 civil debt collection lawsuits 
were pending as of June 2008, and that municipal court judges 
in Ohio handle as many as 1,000 debt collection cases per week. 
GAO also cited a review by the Boston Globe which found that at 
least 60 percent of small claims cases filed in Massachusetts 
in 2005, were filed by debt collectors. GAO reported that 
consumer groups, attorneys, and the FTC all agree that the 
number of debt collection State court cases had increased in 
recent years and was putting a strain on State court systems.
    The GAO report explained that the primary Federal law 
governing third-party debt collection, FDCPA, prohibited debt 
collectors from using abusive, deceptive, and unfair collection 
practices. GAO also explained that the Federal Trade Commission 
(FTC), the lead Federal agency for detecting and taking 
enforcement actions involving FDCPA violations, received more 
complaints about the debt collection industry than any other 
industry, logging about 79,000 complaints on third-party debt 
collectors in 2008 alone, which was almost 19 percent of all of 
the complaints the FTC received.
    The GAO report explained that the FTC was not the only 
agency charged with stopping debt collection abuses. Since most 
large credit card issuers are nationally-chartered banks, 
Federal banking regulators were also responsible for overseeing 
their debt collection practices and protecting consumers from 
unfair practices. In addition, States enforced State fair debt 
collection laws, some of which provided protections additional 
to those of FDCPA.
    The GAO report described a variety of abusive practices 
engaged in by some debt collectors. They included trying to 
collect debt that is not owed or is beyond the statute of 
limitations, making harassing telephone calls prohibited by 
law, threatening to make arrests that the debt collector had no 
authority to make, and collecting debt that had been discharged 
in bankruptcy. GAO observed that the extent of abusive 
practices could not be determined due to the lack of data. GAO 
also noted that debt buyers and collection agencies often may 
not have adequate information about the accounts they have 
purchased or access to the billing statements or other 
documentation needed to verify the debt, sometimes leading a 
debt collector to try to collect from the wrong consumer or for 
the wrong amount. In addition, GAO noted that, as credit card 
debts were sold and resold, verification of the facts became 
more difficult as the owner of the debt became farther removed 
from the original creditor.
    The GAO report determined that, despite receiving tens of 
thousands of complaints, Federal agencies took only 32 formal 
enforcement actions over the last decade related to abusive 
debt collection activities. Those formal enforcement actions 
included 24 enforcement actions by the FTC against debt 
collectors, at least 13 of which involved credit card debt; and 
three formal enforcement actions by the FDIC against banks 
involved in collecting credit card debt. These infrequent 
enforcement actions were dwarfed by the number of complaints of 
abusive practices and the volume of debt collection activity 
documented in the report.
    The GAO report also found that the law had not kept up with 
new technologies and evolving debt collection practices. GAO 
noted that communication technologies that have become common 
involving mobile telephones, email, caller identification, 
answering machines, and fax machines were not prevalent when 
FDCPA was enacted in 1977. In addition, GAO noted that the FTC 
was not given rulemaking authority to implement the FDCPA, 
which limited the FTC's ability to address such basic issues as 
how debt collectors should use email, cell telephone numbers, 
and answering machines in their debt collection efforts and 
what efforts they should undertake to verify account and debt 
information. GAO indicated that most stakeholders involved in 
the process of debt collection with whom GAO spoke, including 
consumer protection groups, State and Federal agencies, credit 
card issuers, debt collectors, and debt buyers, expressed 
support for updating the FDCPA. GAO explicitly recommended that 
Congress amend the law to update its provisions.
 AD HOC SUBCOMMITTEE ON STATE, LOCAL, AND PRIVATE SECTOR PREPAREDNESS 
                            AND INTEGRATION


                   Chairman: Mark L. Pryor, Chairman


                  Ranking Minority Member: John Ensign


                              I. HEARINGS


1. Counternarcotics Enforcement: Coordination at the Federal, State, 
        and Local Level (April 21, 2009)

    Witnesses: John Leech, Acting Director, Office of 
Counternarcotics Enforcement, U.S. Department of Homeland 
Security; Frances Flener, Arkansas State Drug Director, State 
of Arkansas; Douglas C. Gillespie, Sheriff, on behalf of Major 
Cities' Chiefs Association, Major County Sheriffs' Association 
and Las Vegas Metropolitan Police Department, Las Vegas, 
Nevada.
    The purpose of this hearing was to assess the role and 
mission of DHS's Office of Counternarcotics Enforcement (OCNE) 
and its coordination with other Federal drug enforcement 
programs.
    Mr. Leech discussed the mission, goals and programs of 
OCNE, and its cooperation with other Federal programs. Ms. 
Flener spoke on the topic of the State's counter-drug efforts 
and its collaboration with High Intensity Drug Trafficking Area 
program activities. Sheriff Gillespie described his role in the 
Southern Nevada Counterterrorism Center and how it relates to 
violent crime and drug trafficking. He also analyzed Federal 
participation in this sector and suggested areas for 
improvement.

2. Pandemic Flu: Closing the Gaps (June 3, 2009)

    Witnesses: Bernice Steinhardt, Director, Strategic Issues, 
U.S. Government Accountability Office; John Thomasian, 
Director, National Governors Association Center for Best 
Practices; Paul E. Jarris, M.D., Executive Director, 
Association of State and Territorial Health Officials; Stephen 
M. Ostroff, M.D., Director, Bureau of Epidemiology and Acting 
Physician General, Pennsylvania Department of Health.
    The purpose of this hearing was to examine the steps State 
and local governments and communities can take to detect and 
treat pandemic flu.
    Ms. Steinhardt discussed her report, Influenza Pandemic: 
Sustaining Focus on the Nation's Planning and Preparedness 
Efforts and key steps to aid in preparation, response, and 
recovery efforts in the event of an influenza pandemic. Mr. 
Thomasian addressed the Nation's response to the H1N1 influenza 
virus and discussed outstanding requirements needed to form an 
efficient national response to pandemics.
    On the second panel, Dr. Jarris spoke about the State and 
territorial reaction to the novel H1N1 epidemic and the health 
agencies' abilities to provide a timely response in a future 
influenza pandemic. He also described State and Federal 
collaboration with the private sector on response plans. Dr. 
Ostroff represented the voice of public health practitioners 
and epidemiologists and their experiences with national 
epidemic response processes.

3. The Next Big Disaster: Is the Private Sector Prepared? (March 4, 
        2010)

    Witnesses: Stephen C. Jordan, Senior Vice President and 
Executive Director, Business Civic Leadership Center; John R. 
Harrald, Ph.D., Research Professor, Center for Technology, 
Security and Policy, Virginia Polytechnic Institute and State 
University, Co-Director and Professor Emeritus, Institute for 
Crisis, Disaster and Risk Management, The George Washington 
University, and Chair, Disaster Roundtable, The National 
Academies; Stephen E. Flynn, Ph.D., President, Center for 
National Policy.
    The purpose of this hearing was to consider lessons learned 
from previous disasters and how to better integrate the private 
sector's preparations with government preparations.
    Mr. Jordan scrutinized the escalating costs of disasters 
and the need for more funding from the private sector. He also 
discussed the business benefits of preparedness. Mr. Harrald 
provided recommendations for better utilizing the private 
sector in disaster preparation. Mr. Flynn examined the need for 
improved communal resilience. He stressed that non-government 
corporations have plausible assets that would be extremely 
beneficial to disaster stricken areas, and because these 
corporations are often leaders in helping damaged areas 
recover, the integration of these businesses should be a 
priority of the Subcommittee.

4. New Border War: Corruption of U.S. Officials by Drug Cartels (March 
        11, 2010)

    Witnesses: Kevin L. Perkins, Assistant Director, Criminal 
Investigative Division, Federal Bureau of Investigation, U.S. 
Department of Justice; Thomas M. Frost, Assistant Inspector 
General for Investigations, Office of Inspector General, U.S. 
Department of Homeland Security; James F. Tomsheck, Assistant 
Commissioner, Office of Internal Affairs, Customs and Border 
Protection U.S. Department of Homeland Security.
    The purpose of this hearing was to review the growing 
numbers of corrupt law enforcement personnel and how cartels 
rely on them to move and distribute illegal substances and 
other contraband throughout the United States. The witnesses 
also highlighted the need for policy changes to diminish this 
trend.
    Mr. Perkins discussed the FBI's efforts to combat public 
corruption. Mr. Frost recommended future actions that should be 
taken by the Subcommittee to reinforce the success and 
efficiency of DHS's investigation and oversight activities, 
which in turn will fortify departmental programs. Mr. Tomsheck 
focused on his experiences with CBP and defended the integrity 
of its workforce.

5. Deep Impact: Assessing the Effects of the Deepwater Horizon Oil 
        Spill on States, Localities and the Private Sector (June 10, 
        2010)

    Witnesses: Hon. Bill Nelson, U.S. Senator from the State of 
Florida; Hon. David Camarelle, Mayor, Grand Isle, Louisiana; 
Billy Nungesser, President, Plaquemines Parish, Louisiana; Mark 
A. Cooper, Director, Louisiana Governor's Office of Homeland 
Security and Emergency Preparedness; Hon. Juliette Kayyem, 
Assistant Secretary for Intergovernmental Affairs, U.S. 
Department of Homeland Security; Rear Admiral Roy Nash, Deputy 
Director, Federal On-Scene Commander, Deputy Unified Area 
Commander, U.S. Coast Guard; Ray Dempsey, Vice President of 
Strategy, BP America, Inc., accompanied by Darryl Willis, Vice 
President for Resources, BP America, Inc.
    The purpose of this hearing was to discuss the impact of 
the Deepwater Horizon oil spill on Gulf Coast States and 
regions. It also assessed the efficiency of the synchronized 
Federal, State, local, and private sector response.
    The first panel examined the effects of the oil spill on 
the lives and commerce of local fisherman. Panelists also 
discussed the impact of the spill on marine life and the 
environment.
    The second and third panels reviewed DHS's response to the 
spill, as well as State and local authorities' responses. A BP 
representative shared a detailed report of BP's actions in 
response to the oil spill.

6. A Review of Disaster Medical Preparedness: Improving Coordination 
        and Collaboration in the Delivery of Medical Assistance During 
        Disasters (July 22, 2010)

    Witnesses: Robert J. Fenton, Deputy Assistant Administrator 
for Response, Federal Emergency Management Agency, U.S. 
Department of Homeland Security; Kevin Yeskey, M.D., Deputy 
Assistant Secretary and Director of Preparedness and Emergency 
Operations, Office of the Assistant Secretary for Preparedness 
and Response Program, Department of Health and Human Services; 
Paul Cunningham, Senior Vice President, Arkansas Hospital 
Association.
    The purpose of this hearing was to evaluate the Federal 
efforts to coordinate with the private sector to ensure that 
individuals affected by disasters have access to medical care.
    The first panel discussed the need for future collaboration 
between Federal agencies and volunteer and non-profit 
organizations. The first panel also assessed the role and 
response of the National Disaster Medical System (NDMS) during 
catastrophic events.
    The second panel reviewed flaws in the NDMS and proposed 
ideas for fixing the issues within the system.

7. Flood Preparedness and Mitigation: Map Modernization, Levee 
        Inspection, and Levee Repairs (July 28, 2010) (Joint Hearing 
        with the Subcommittee on Disaster Recovery and the Subcommittee 
        on State, Local, and Private Sector Preparedness and 
        Integration)

    Witnesses: Hon. Jo-Ellen Darcy, Assistant Secretary of the 
Army, Civil Works, U.S. Army Corps of Engineers; Sandra K. 
Knight, Ph.D., Deputy Assistant Administrator, Federal 
Insurance and Mitigation Administration, Federal Emergency 
Management Agency, U.S. Department of Homeland Security; Hon. 
Bob Mehlhoff, District 26, Montana House of Representatives; 
David R. Maidment, Ph.D., Director, Center for Research in 
Water Resources and Hussein M. Alharthy Centennial Chair in 
Civil Engineering, The University of Texas at Austin, and 
Chair, Committee on Floodplain Mapping Technologies, and Chair, 
Committee on FEMA Flood Maps, National Research Council, The 
National Academies; Sam Riley Medlock, Policy Counsel, 
Association of State Floodplain Managers, and Member, National 
Committee on Levee Safety; Robert G. Rash, Chief Executive 
Officer and Chief Engineer, St. Francis Levee District of 
Arkansas; Joseph Suhayda, Ph.D., Interim Director, Louisiana 
State University Hurricane Center, and Chairman, Independent 
Technical Review Committee, FEMA/USACE Louisiana Storm Surge 
Study.
    The purpose of this hearing was to assess preparedness 
among flood-prone communities and responsible Federal 
organizations. The hearing witnesses evaluated the precision of 
the FEMA flood map modernization process, its effect on States, 
methods for dispute resolution, and the influence of levee 
inspections and certifications on determinations of flood risk.
    The first panel conferred about agencies such as USACE and 
FEMA's role in assisting communities with flood preparation, 
especially as related to the national flood plain remapping 
efforts and levees.
    The second panel analyzed levee construction accuracy and 
recommended several solutions to the faulty structure. This 
panel also suggested a collaboration of goals between various 
disaster relief organizations. State and Federal agency 
cooperation was also suggested.

8. Earthquake Preparedness: What the United States Can Learn from the 
        2010 Chilean and Haitian Earthquakes (September 30, 2010)

    Witnesses: William L. Carwile, III, Associate Administrator 
for Response and Recovery, Federal Emergency Management Agency, 
U.S. Department of Homeland Security; Dirk W. Dijkerman, Acting 
Assistant Administrator, Bureau for Democracy, Conflict, and 
Humanitarian Assistance, U.S. Agency for International 
Development; Cristobal Lira, Director, Committee for Earthquake 
and Tsunami Emergency (March-August 2010), Reconstruction 
Committee (since August 2010), Chilean Ministry of Interior; 
James M. Wilkinson, Executive Director, Central United States 
Earthquake Consortium; Ellis M. Stanley, Sr., Vice President, 
Dewberry, and Director, Western Emergency Management and 
Homeland Security Services; Reginald DesRoches, Ph. D., 
Professor and Associate Chair, Georgia Institute of Technology 
School of Civil and Environmental Engineering.
    The purpose of this hearing was to learn about 
international earthquake response in the aftermath of the Haiti 
and Chile earthquakes. The Subcommittee heard from two 
witnesses who recounted their role in either the earthquakes in 
Haiti on January 12, 2010 or the earthquake in Chile on 
February 27, 2010. The purpose of these testimonies was to 
compare the responses of the foreign governments and help 
inform the U.S. Government's preparation for an earthquake on 
American soil.
    The first panel explained the use of the New Madrid Seismic 
Zone Catastrophic Planning Project as a model for collaboration 
at every level of government, the private sector, voluntary 
organizations, and non-governmental businesses. This group also 
reflected upon USAID responses to foreign disasters.
    The second panel reviewed the hazard of an earthquake in 
the central United States. This panel encouraged voluntary 
programs and praised their resiliency in previous disasters 
such as the Chilean earthquake. The urgency to produce more 
technologies to combat natural disaster-related damages was 
also stressed during this panel.

                            II. LEGISLATION

    (1) S. 3243--Anti-Border Corruption Act of 2010--Requires 
the Secretary of Homeland Security (DHS) to ensure that: (1) by 
not later than 2 years after enactment of this Act, all 
applicants for law enforcement positions with U.S. Customs and 
Border Protection (CBP) receive polygraph examinations before 
being hired for such positions; and (2) by not later than 180 
days after enactment of this Act, CBP initiates all periodic 
background reinvestigations for all of its law enforcement 
personnel.
    It also requires the Secretary to make periodic progress 
reports to the House Committee on Homeland Security and the 
Senate Committee on Homeland Security and Governmental Affairs 
on CBP progress in complying with the requirements of this Act.
    On January 4, 2011 it became Public Law No: 111-376.
    (2) S. 2863--Emergency Response Act of 2009--Amends the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act 
to redefine ``major disaster'' as any natural disaster 
(including pandemics), act of terrorism, or other manmade 
disaster (under current law, any natural catastrophe) in any 
part of the United States that, in the determination of the 
President, causes damage of sufficient severity and magnitude 
to warrant major disaster assistance to supplement the efforts 
and resources of States, local governments, and disaster relief 
organizations.
    It also directs the Secretary of Homeland Security (DHS) to 
designate a representative to lead a working group with 
national organizations that represent State, local, and tribal 
government interests to prepare best practice recommendations 
for facilitating the flow of public health information to State 
fusion centers and the greater homeland security community.
    On December 10, 2009 it was referred to Senate committee 
and the status is that it was read twice and referred to the 
Committee on Homeland Security and Governmental Affairs.
    (3) S. 713--FEMA Accountability Act of 2009--Directs the 
Administrator of the Federal Emergency Management Agency (FEMA) 
to: (1) complete an assessment to determine the number of 
temporary housing units purchased by FEMA that it needs to 
maintain in stock to respond appropriately to emergencies or 
major disasters; and (2) establish criteria for determining 
whether individual temporary housing units stored by FEMA are 
in usable condition, including appropriate criteria for 
formaldehyde testing and exposure of such units.Requires the 
Administrator to establish and implement a plan for: (1) 
storing the number of temporary housing units that the 
Administrator has determined that FEMA needs to maintain in 
stock; (2) transferring, selling, or otherwise disposing of 
such units in FEMA's inventory that are in excess of that 
number and in usable condition; and (3) disposing of such units 
that are determined not to be in usable condition.
    Makes the plan subject to Robert T. Stafford Disaster 
Relief and Emergency Assistance Act disposal requirements and 
other applicable law.Directs the Administrator to report to the 
appropriate congressional committees on the status of the 
distribution, sale, transfer, or other disposal of temporary 
housing units under this Act.
    On May 20, 2010 it was referred to the Subcommittee on 
Water Resources and Environment.
    (4) S. 1288--Emergency Management Assistance Compact 
Reauthorization Act of 2009--Amends the Post-Katrina Emergency 
Management Reform Act of 2006 to authorize the use of Emergency 
Management Assistance Compact grants to: (1) educate emergency 
response providers by offering training materials and courses 
relating to the Compact; (2) conduct exercises regarding 
deployments under the Compact and related procedures; (3) 
establish a system for tracking resources deployed under the 
Compact; and (4) conduct after-action assessments, prepare 
reports, and carry out recommendations in response to large-
scale activations, as determined appropriate by Compact 
administrators.Authorizes appropriations for Compact grants for 
FY2010-2012.
    On July 15, 2010 it was held at the desk.
                AD HOC SUBCOMMITTEE ON DISASTER RECOVERY


                  Chairman: Mary L. Landrieu, Chairman


                Ranking Minority Member: Lindsey Graham


                              I. HEARINGS


1. A New Way Home: Findings from the Disaster Recovery Subcommittee 
        Special Report and Working with the New Administration on a Way 
        Forward--March 18, 2009

    Witnesses: Nancy Ward, Acting Administrator, Federal 
Emergency Management Agency, U.S. Department of Homeland 
Security; Nelson Bregon, General Deputy Assistant Secretary, 
Office of Community Planning and Development, U.S. Department 
of Housing and Urban Development, accompanied by Milan Ozdinek, 
Deputy Assistant Secretary, Office of Public Housing and 
Voucher Programs; Karen Paup, Co-Director, Texas Low Income 
Housing Information Service; Krystal Williams, Executive 
Director, Louisiana Housing Alliance; Sheila Crowley, Ph.D., 
President and CEO, National Low Income Housing Coalition; and 
Reilly Morse, Senior Attorney, Mississippi Center for Justice.
    The purpose of this hearing was to assess the findings of 
SDR's Special Report on disaster housing assistance entitled, 
``Far From Home: Deficiencies in Federal Disaster Housing 
Assistance after Hurricanes Katrina and Rita and 
Recommendations for Improvement.''
    Witnesses from FEMA and HUD addressed the report's 
recommendations and the future of disaster housing assistance 
in general.
    The second panel addressed the report's findings and 
recommendations and their implications on the recovery of 
individuals in each State. They discussed ideas for reform 
which were not included in the report, but which they believed 
would lead to better outcomes in catastrophes. Finally, the 
witnesses offered recommendations from their own work for 
consideration by Congress and the Administration.

2. The Role of the Community Development Block Grant Program in 
        Disaster Recovery--May 20, 2009

    Witnesses: Hon. Haley Barbour, Governor, State of 
Mississippi; Dominique Duval-Diop, Senior Associate, 
PolicyLink; Melanie Ehrlich, Ph.D., Member of the Louisiana 
Recovery Authority Housing Task Force, and Founder, Citizens' 
Road Home Action Team; Karen Paup, Co-Director, Texas Low-
Income Housing Information Services; Reilly Morse, Senior 
Attorney, Mississippi Center for Justice; Hon. Roger F. Wicker, 
U.S. Senator from the State of Mississippi; Hon. Haley Barbour, 
Governor of the State of Mississippi; Paul Rainwater, Executive 
Director, Louisiana Recovery Authority; Charles (Charlie) 
Stone, Executive Director, State of Texas, Office of Rural 
Community Affairs; Charlie S. Stone, Executive Director, State 
of Texas, Office of Rural Community Affairs; and Frederick 
Tombar III, Senior Advisor to the Secretary for Disaster and 
Recovery Programs, U.S. Department of Housing and Urban 
Development.
    The purpose of this hearing was to examine the Gulf Coast 
States' use of approximately $23.5 million in Community 
Development Block Grant (CDBG) funds received from HUD after 
Hurricanes Katrina, Rita, Gustav, and Ike.
    The first panel consisted of housing advocates, who 
discussed how their States had used CDBG funds to pay for 
State-run housing programs.
    The second panel examined advantages and disadvantages of 
using CDBG to pay for recovery operations. Panelists also 
discussed funding restrictions and controversial aspects of the 
Road Home program. The panel consisted of Federal and State 
officials, including a HUD official, who discussed the agency's 
plans for allocation of remaining disaster CDBG funds and a 
statutory prohibition on the use of funds for Federal matching 
requirements.

3. Are We Ready? A Status Report on Emergency Preparedness for the 2009 
        Hurricane Season--June 4, 2009

    Witnesses: Hon. W. Craig Fugate, Administrator, Federal 
Emergency Management Agency, U.S. Department of Homeland 
Security; Major General Frank Grass, Director of Operations, 
U.S. Northern Command; George Foresman, Advisory Board Co-
Chairman of the ReadyCommunities Partnership, Corporate Crisis 
Response Officers Association, Former Undersecretary, 
Preparedness and Emergency Response, U.S. Department of 
Homeland Security; Armond Mascelli, Vice President, Disaster 
Operations, American Red Cross; and Janet Durden, President, 
United Way of Northeast Louisiana.
    The purpose of this hearing was to evaluate preparedness at 
the Federal, regional, State, and local levels for the 2009 
hurricane season. The hearing provided a discussion of lessons 
learned from the 2008 season and how they were incorporated 
into the response planning for the current year.
    The first panel's witnesses discussed preparedness measures 
and the U.S. Army's role in disaster response and coordination 
with States' National Guards.
    The second panel discussed the private sector's role in 
emergency planning, activities of the American Red Cross' 
Disaster Operations and the role of the 211 system during the 
2005 and 2008 hurricane seasons.

4. Focusing on Children in Disasters: Evacuation Planning and Mental 
        Health Recovery--August 4, 2009

    Witnesses: Hon. W. Craig Fugate, Administrator, Federal 
Emergency Management Agency, U.S. Department of Homeland 
Security; Rear Admiral Nicole Lurie, M.D., Assistant Secretary 
for Preparedness, U.S. Public Health Service, U.S. Department 
of Health and Human Services; Cynthia A. Bascetta, Director, 
Health Care, U.S. Government Accountability Office; Mark K. 
Shriver, Vice President and Managing Director of U.S. Programs 
at Save the Children, and Chairperson, National Commission on 
Children and Disasters; Irwin Redlener, M.D., Professor, 
Clinical Population and Family Health, and Director, National 
Center for Disaster Preparedness, Mailman School of Public 
Health, Columbia University, and President, Children's Health 
Fund; and Teri Fontenot, President and Chief Executive Officer, 
Women's Hospital, Baton Rouge, Louisiana.
    The purpose of this hearing was to review the increase in 
the number of disasters compared with previous decades. This 
increase demonstrated the need for a better evacuation plans 
for children in disaster-prone areas and a post-disaster 
program to ensure the mental safety of the children. Witnesses 
focused on children's role in disaster preparation and 
recovery.
    The first panel examined the separate methods needed for 
children and adults, and the requirement to prioritize child 
care after disaster recovery to facilitate overall recovery in 
disaster-stricken regions.
    The second panel discussed the reflexive habit of lumping 
children in with ``vulnerable'' and special needs populations 
including pregnant women, the elderly, and the disabled. 
Panelists also discussed previous disaster situations that have 
been important lessons learned in disaster planning.

5. Disaster Case Management: Developing a Comprehensive National 
        Program Focused on Outcomes--December 2, 2009

    Witnesses: Elizabeth A. Zimmerman, Assistant Administrator, 
Disaster Assistance, Federal Emergency Management Agency, U.S. 
Department of Homeland Security; David Hansell, Principal 
Deputy Assistant Secretary, Administration for Children and 
Families, U.S. Department of Health and Human Services; 
Frederick Tombar, Senior Advisor, Office of the Secretary, U.S. 
Department of Housing and Urban Development; Kay E. Brown, 
Director, Education, Workforce, and Income Security, U.S. 
Government Accountability Office; Amanda Guma, Health Services 
Policy Director, Louisiana Recovery Authority; Rev. Larry 
Snyder, President and Chief Executive Officer, Catholic 
Charities USA; Diana Rothe-Smith, Executive Director, National 
Voluntary Organizations Active in Disasters; Irwin Redlener, 
M.D., Professor, Clinical Population and Family Health, and 
Director, National Center for Disaster Preparedness, Columbia 
University Mailman School of Public Health, and President, 
Children's Health Fund; Stephen P. Carr, Program Director, 
Mississippi Case Management Consortium; and Monteic A. Sizer, 
M.D., President and Chief Executive Officer, Louisiana Family 
Recovery Corps.
    The purpose of this hearing was to discuss the Federal 
Government's plans to develop a National Disaster Case 
Management Program and the extent to which these plans address 
the needs of disaster survivors.
    The first panel explained their goals of disaster recovery 
for all citizens and stressed the importance of making it a 
joint effort, due to the magnitude of the project. Meeting the 
overall goal of rapid response requires a national program that 
is centered on results.
    The second panel discussed Federal policy changes that 
could aid in developing a system that will help survivors 
recover more rapidly. Prior to recommending actions, 
representatives from various organizations discussed how multi-
organizational partnerships will encourage cooperation amongst 
other disaster relief agencies.

6. Children and Disasters: A Progress Report on Addressing Needs--
        December 10, 2009

    Witnesses: Mark K. Shriver, Chairperson, National 
Commission on Children and Disasters; Hon. W. Craig Fugate, 
Administrator, Federal Emergency Management Agency, U.S. 
Department of Homeland Security; Rear Admiral Nicole Lurie, 
M.D., MSPH, Assistant Secretary for Preparedness, U.S. Public 
Health Service, U.S. Department of Health and Human Services; 
William Modzeleski, Associate Assistant Deputy Secretary, 
Office of Safe and Drug-Free Schools, U.S. Department of 
Education; Paul G. Pastorek, Louisiana State Superintendent of 
Education; Matt Salo, Legislative Director of the Health and 
Human Services Committee, National Governors Association; 
Melissa Reeves, Ph.D., Chairperson, Prevent, Reaffirm, 
Evaluate, Provide, and Respond, Examine (PREPaRE) Committee, 
National Association of School Psychologists; and Douglas W. 
Walker, Ph.D., Project Director, Fleur de-lis Project.
    The purpose of this hearing was to evaluate the Interim 
Report released on October 14, 2009 by the National Commission 
on Children and Disasters and the status of administrative and 
legislative efforts to implement its recommendations. The 
report identified shortcomings in disaster preparedness, 
response, and recovery and outlined steps to better address the 
needs of children throughout each phase.
    The first panel examined the needs of children and disaster 
preparedness. Panelists also discussed FEMA's efforts to fix 
the shortcomings in response and recovery programs by better 
tailoring them to the needs of children.
    The second panel addressed perspectives on what is working 
and what challenges continue after disasters. This panel talked 
about new requirements such as each school having a crisis 
management plan to minimize damage and recover swiftly. Other 
topics included the State function in meeting the health care 
needs of children during disasters.

7. Stafford Act Reform: Sharper Tools for a Smarter Recovery--May 12, 
        2010

    Witnesses: Hon. W. Craig Fugate, Administrator, Federal 
Emergency Management Agency, U.S. Department of Homeland 
Security; Matt Jadacki, Deputy Inspector General, Office of 
Emergency Management Oversight, Office of Inspector General, 
U.S. Department of Homeland Security; Hon. Joseph P. Riley, 
Jr., Mayor of Charleston, South Carolina, and Member, Stafford 
Act Reform Task Force, U.S. Conference of Mayors; David 
Maxwell, Director and Homeland Security Advisor, Arkansas 
Department of Emergency Management, and President, National 
Emergency Management Association; and Sheila Crowley, Ph.D., 
President and Chief Executive Officer, National Low Income 
Housing Coalition.
    The purpose of this hearing was to discuss concerns about 
the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act and proposals for its reform. Hurricanes Katrina and Rita 
revealed inadequacies in the Act's ability to support 
comprehensive disaster recovery, so the panelists were asked to 
recommend reforms.
    The first panel reviewed FEMA's policies and revisions that 
have been made to improve post-disaster aid. The panelists also 
recommended revisions to the Stafford Act.
    The second panel witnesses determined that a case 
management system should be community-based and that 
communities should have a reliable disaster plan before a 
tragedy strikes. They also recommended changes to the Stafford 
Acts which would enable more efficient recoveries in the 
future.

8. Flood Preparedness and Mitigation: Map Modernization, Levee 
        Inspection, and Levee Repairs--July 28, 2010 (Joint Hearing 
        with the Subcommittee on Disaster Recovery and the Subcommittee 
        on State, Local, and Private Sector Preparedness and 
        Integration)

    Witnesses: Hon. Jo-Ellen Darcy, Assistant Secretary of the 
Army, Civil Works, U.S. Army Corps of Engineers; Sandra K. 
Knight, Ph.D., Deputy Assistant Administrator, Federal 
Insurance and Mitigation Administration, Federal Emergency 
Management Agency, U.S. Department of Homeland Security; Hon. 
Bob Mehlhoff, District 26, Montana House of Representatives; 
David R. Maidment, Ph.D., Director, Center for Research in 
Water Resources and Hussein M. Alharthy Centennial Chair in 
Civil Engineering, The University of Texas at Austin, and 
Chair, Committee on Floodplain Mapping Technologies, and Chair, 
Committee on FEMA Flood Maps, National Research Council, The 
National Academies; Sam Riley Medlock, Policy Counsel, 
Association of State Floodplain Managers, and Member, National 
Committee on Levee Safety; Robert G. Rash, Chief Executive 
Officer and Chief Engineer, St. Francis Levee District of 
Arkansas; and Joseph Suhayda, Ph.D., Interim Director, 
Louisiana State University Hurricane Center, and Chairman, 
Independent Technical Review Committee, FEMA/USACE Louisiana 
Storm Surge Study.
    The purpose of this hearing was to assess preparedness 
among flood-prone communities and responsible Federal 
organizations. The hearing witnesses evaluated the precision of 
the FEMA flood map modernization process, its effect on States, 
methods for dispute resolution, and the influence of levee 
inspections and certifications on determinations of flood risk.
    The first panel conferred about agencies such as USACE and 
FEMA's role in assisting communities with flood preparation, 
especially as related to the national flood plain remapping 
efforts and levees.
    The second panel analyzed levee construction accuracy and 
recommended several solutions to the faulty structure. This 
panel also suggested a collaboration of goals between various 
disaster relief organizations. State and Federal agency 
cooperation was also suggested.

9. Five Years Later: Lessons Learned, Progress Made, and Work Remaining 
        from Hurricane Katrina--August 26, 2010 (Field hearing was held 
        in Chalmette, Louisiana)

    Witnesses: Gregory C. Rigamer, Chief Executive Officer, GCR 
and Associates, Inc., New Orleans, Louisiana; Amy Liu, Deputy 
Director and Senior Fellow, Metropolitan Policy Program, The 
Brookings Institution, Washington, DC; Hon. Charlie Melancon, a 
Representative in Congress from the State of Louisiana; Hon. 
Steve Scalise, a Representative in Congress from the State of 
Louisiana; Hon. Joseph Cao, a Representative in Congress from 
the State of Louisiana; Hon. Shaun Donovan, Secretary, U.S. 
Department of Housing and Urban Development; Paul Rainwater, 
Commissioner of Administration, State of Louisiana, and Former 
Executive Director, Louisiana Recovery Authority; Doris 
Voitier, Superintendent, St. Bernard Parish Schools; Mark 
Schexnayder, Agent, Louisiana State University Agriculture 
Center; Lauren Anderson, Chief Executive Officer, Neighborhood 
Housing Services of New Orleans; Hon. W. Craig Fugate, 
Administrator, Federal Emergency Management Agency, U.S. 
Department of Homeland Security; Lieutenant General Robert Van 
Antwerp, Jr., Chief of Engineers, U.S. Army Corps of Engineers; 
Mitchell J. Landrieu, Mayor, City of New Orleans; Kevin Davis, 
President, St. Tammany Parish; and Jeff Hingle, Sheriff, 
Plaquemines Parish.
    The purpose of this hearing was to highlight Louisiana's 
progress, setbacks and continuing needs as it worked to recover 
and rebuild from the 2005 hurricane season. On August 29, 2005, 
Hurricane Katrina made landfall in southeast Louisiana as a 
Category 3 Hurricane. It caused severe destruction along the 
Gulf Coast from central Florida to Texas, much of it due to the 
storm surge. The most severe loss of life occurred in New 
Orleans, which flooded when the levee system catastrophically 
failed. Eventually 80 percent of the city and large tracts of 
neighboring parishes flooded, and the floodwaters lingered for 
weeks. Five years later, Louisiana was still working towards a 
full recovery.
    The first panel assessed the work that had been done by the 
Federal and State Governments and provided an overview of the 
remaining work to be done.
    The second panel discussed the impact of Hurricane Katrina 
on schools, fisheries and wetlands, and the progress made since 
2005. Panelists also discussed efforts to rebuild housing and 
revitalize neighborhoods.

10. Gulf Coast Recovery: An Examination of Claims and Social Services 
        in the Aftermath of the Deepwater Horizon Oil Spill--January 
        27, 2011\1\
---------------------------------------------------------------------------

    \1\Hearing was held in the 112th Congress but included here as this 
was the last hearing of SDR before the committee reorganized. In 
February 2011, the Subcommittee on State, Local, and Private Sector 
Preparedness and Integration (SLPSPI) and the Subcommittee on Disaster 
Recovery (SDR) combined to form the Subcommittee on Disaster Recovery 
and Intergovernmental Affairs (DRIA).
---------------------------------------------------------------------------
    Witnesses: Kenneth R. Feinberg, Administrator, Gulf Coast 
Claims Facility; Craig Bennett, Director, National Pollution 
Funds Center, U.S. Coast Guard; Ve Nguyen, Member, United 
Louisiana Vietnamese American Fisherfolks; Rear Admiral Eric 
Broderick, D.D.S., M.P.H., Deputy Administrator, Substance 
Abuse and Mental Health Services Administration, U.S. 
Department of Health and Human Services; Albert L. Keller, 
Executive Vice President, Gulf Coast Restoration Organization, 
BP America, Inc.; Tom Costanza, Executive Director, Office of 
Justice and Peace, Catholic Charities, Archdiocese of New 
Orleans; and Lori R. West, Director of International Relief and 
Development and Current Chairman, South Mississippi Voluntary 
Organizations Active in Disasters.
    The purpose of the hearing was to evaluate recovery from 
the Deepwater Horizon Oil Spill by reviewing progress made and 
challenges remaining for oil spill and moratorium claims as 
well as nonprofit social service providers. The GCCF worked 
with nearly 500,000 individuals and businesses to replace lost 
wages and revenue. The Baton Rouge Area Foundation (BRAF) was 
preparing for its second round of payments to rig workers and 
others affected by the moratorium on offshore drilling and BP 
is administering State and local government claims. Non-
governmental organizations (NGOs) were helping people to 
prepare and submit their claims and also working to provide for 
unmet needs, such as feeding and utility assistance, case 
management, financial literacy, job training, and mental health 
services. This hearing was intended to continue a constructive 
dialogue between the Federal, State, and local governments, the 
GCCF, BRAF, BP, and NGOs involved in providing claims 
assistance and social services to families affected by the oil 
spill.
    The first panel discussed the State and local government 
claims process as well as improvements made and challenges that 
remain.
    The second panel discussed outstanding needs among spill-
affected households and businesses in the affected States.

                            II. LEGISLATION

    (1) S. 1069--Ratepayer Recovery Act of 2009--Amends Robert 
T. Stafford Disaster Relief and Emergency Assistance Act of 
cite conditions under which the President is authorized to make 
disaster assistance contributions for the repair, restoration, 
reconstruction, or replacement of private or investor-owned 
power transmission and distribution facilities damaged or 
destroyed by a major disaster. Cites conditions for large in-
lieu contributions to a private or investor-owned power 
facility in any case in which the owner determines that the 
public welfare would not be best served by repairing, 
restoring, reconstruction, or replacing the facility.
    On June 9, 2009, the Committee on Homeland Security and 
Governmental Affairs referred to Subcommittee on Disaster 
Recovery.
    (2) S. 1088--A bill to authorize certain construction in 
coastal high hazard areas using assistance under the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act--Deems: 
(1) certain activity in coastal high hazard area to be an 
eligible use of assistance under provisions of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act regarding 
hazard mitigation and repair, restoration, and replacement of 
facilities damaged by Hurricane Katrina, Rita, Gustav, or Ike; 
and (2) any new construction or substantial improvements to 
structures under such an activity involving critical actions to 
not be required to elevate to the 500-year floodplain if it 
would be impracticable.
    Makes this applicable to any assistance under such Act 
relating to a major disaster declared on or after August 28, 
2005, relating to such hurricanes.
    On May 20, 2009, it was read twice and referred to the 
Committee on Homeland Security and Governmental Affairs.
                 SUBCOMMITTEE ON CONTRACTING OVERSIGHT


                   Chairman: Claire McCaskill (D-MO)


Ranking Minority Members: Susan Collins (R-ME), Robert Bennett (R-UT), 
                       and Scott Brown (R-MA)\1\

---------------------------------------------------------------------------
    \1\ Senator Susan M. Collins served as the Subcommittee's Ranking 
Member from February 11, 2009 to July 30, 2009. Senator Robert F. 
Bennett served as the Subcommittee's Acting Ranking Member from July 
31, 2009 to March 8, 2010. Senator Scott P. Brown served as the 
Subcommittee's Ranking Member from March 9, 2010 through the end of the 
111th Congress.
---------------------------------------------------------------------------
    The Subcommittee on Contracting Oversight has broad 
oversight authority over all aspects of Federal contracting. 
The Subcommittee was created as an Ad Hoc Subcommittee for a 
limited term to expire at the conclusion of the 111th Congress.

                              I. HEARINGS

    During the 111th Congress, the Subcommittee on Contracting 
Oversight held 15 hearings or roundtables; authorized 12 
investigations; issued two subpoenas; made public seven 
previously non-public sets of information; released seven 
Majority Staff Analyses, Memoranda, or Fact Sheets; and 
introduced, or joined as original cosponsor, seven related 
pieces of legislation. Currently, the Subcommittee has five 
ongoing investigations.
    The following is a summary of the activities of the 
Subcommittee organized by topic.

                      A. Administration Oversight

    The Subcommittee held five hearings related to 
administration oversight. The first hearing was focused on 
improving Federal contracting databases and the second hearing 
was focused on guidance released by the Office of Management 
and Budget about combating waste, fraud, and abuse in Federal 
contracting. The third and fourth hearings were focused on 
improving interagency contracting. The fifth hearing was 
focused on the mismanagement of contracts at the Arlington 
National Cemetery, which led in part to unmarked and mislabeled 
graves, and burial errors at the historical landmark.

1. Improving Transparency and Accessibility of Federal Contracting 
        Databases (September 29, 2009)

    Witnesses: William T. Woods, Director, Acquisition and 
Sourcing Management, U.S. Government Accountability Office; 
Adam Hughes, Director, Federal Fiscal Policy, OMB Watch; A.R. 
Trey Hodgkins III, Vice President, National Security and 
Procurement Policy, TechAmerica; Mr. Vivek Kundra, Federal 
Chief Information Officer and Administrator for E-Government 
and Information Technology, Office of Management and Budget.
    Overview: The hearing examined plans to integrate several 
current and newly created databases related to Federal 
procurement. In particular, the hearing examined General 
Services Administration's plans for the Integrated Acquisition 
Environment and the Architecture Operations Contract Support 
programs.
    At the hearing, officials from OMB acknowledged that 
ultimate responsibility for both programs lies with OMB. They 
also acknowledged existing deficiencies in the accuracy and 
reliability of current databases. The Subcommittee continues to 
monitor OMB's progress to correct these deficiencies.

2. Achieving the President's Objectives: New OMB Guidance to Combat 
        Waste, Inefficiency, and Misuse in Federal Government 
        Contracting (October 28, 2009)

    Witnesses: Hon. Jeffrey D. Zients, Chief Performance 
Officer and Deputy Director for Management, Office of 
Management and Budget.
    Overview: In 2009, OMB called on Federal agencies to (1) 
reduce contract spending by 7 percent by FY2011, totaling 
approximately $40 billion total across all agencies; (2) reduce 
the number of high-risk contracts by 10 percent; and (3) 
increase the acquisition workforce by 5 percent. The hearing 
examined OMB's guidance. Chairman McCaskill stressed the 
importance of ensuring transparency in OMB's strategy as 
agencies took steps to achieve the goals established by OMB.

3. Interagency Contracts (Part I): Overview and Recommendations for 
        Reform (February 25, 2010)

    Witnesses: Ralph C. Nash, Jr., Frederick J. Lees and E.K. 
Gubin Professor Emeritus of Government Contracts Law, The 
George Washington University Law School; Marshall J. Doke, Jr., 
Partner, Gardere Wynne Sewell, LLP; Steven Schooner, Associate 
Professor of Law and Co-Director of the Government Procurement 
Law Program, The George Washington University Law School; 
Joshua Schwartz, E.K. Gubin Professor of Government Contracts 
Law, Co-Director of the Government Procurement Law Program, 
Faculty Chair of the Presidential Merit Scholars Program, The 
George Washington University Law School.
    Overview: The hearing was the first of two hearings on 
interagency contracting held by the Subcommittee. During the 
hearing, a panel of academic experts discussed the recent 
proliferation of interagency contracts and the potential 
benefits and detriments that could result.

4. Interagency Contracts (Part II): Management and Oversight (June 30, 
        2010)

    Witnesses: John K. Needham, Director, Acquisition and 
Sourcing Management, U.S. Government Accountability Office; 
Hon. Daniel I. Gordon, Administrator, Office of Federal 
Procurement Policy, Office of Management and Budget; Steven J. 
Kempf, Acting Commissioner, Federal Acquisition Service, U.S. 
General Services Administration; Richard K. Gunderson, Deputy 
Chief Procurement Officer, U.S. Department of Homeland 
Security; Diane J. Frasier, Director, Office of Acquisition and 
Logistics Management, National Institutes of Health, U.S. 
Department of Health and Human Services.
    Overview: The hearing examined policy concerns raised at 
the Subcommittees first hearing about interagency contracts on 
February 25, 2010, including the potential problems with fees 
associated with certain contract vehicles. The hearing also 
examined the need for transparency in interagency contracting 
and the need for reliable data.
    The Subcommittee continues to explore legislation that may 
help provide transparency in interagency contracting.

5. Mismanagement of Contracts at Arlington National Cemetery (July 29, 
        2010)

    Witnesses: John C. Metzler, Jr., Former Superintendent, 
Arlington National Cemetery; Thurman Higginbotham, Former 
Deputy Superintendent, Arlington National Cemetery; Edward M. 
Harrington, Deputy Assistant Secretary (Procurement), Office of 
the Assistant Secretary of the Army (Acquisition, Logistics, 
and Technology), U.S. Army; Claudia L. Tornblom, Deputy 
Assistant Secretary of the Army (Management and Budget), Office 
of the Assistant Secretary of the Army (Civil Works), U.S. 
Army; Kathryn A. Condon, Executive Director, Army National 
Cemeteries Program, U.S. Army.
    Overview: After a June 2010 investigation by the Army 
Inspector General into unmarked and mislabeled graves at 
Arlington National Cemetery, the Subcommittee launched an 
investigation in July 2010 into allegations of contract 
improprieties that may have contributed to problem.
    On July 29, 2010, the Subcommittee held a hearing on the 
mismanagement of contracts at the Cemetery. In conjunction with 
the hearing, the Subcommittee released a Majority Staff 
Memorandum for Members and Staff about the results of its 
investigation at the hearing. The Subcommittee's investigation 
revealed that the Cemetery spent between $5.5 and $8 million on 
contracts to build a system to automate its burial operations 
but never obtained a working system. The Subcommittee's 
investigation also found that 4,900 to 6,600 graves could be 
unmarked or mislabeled, an estimation that far exceeded the 
Army Inspector General's estimation.
    Chairman McCaskill subpoenaed the Cemetery's former 
Superintendent and Deputy Superintendent to attend the hearing 
after both individuals declined the Subcommittee's invitations 
to testify. During the hearing, the former Deputy 
Superintendent invoked his rights under the Fifth Amendment of 
the Constitution, and was dismissed from the hearing by 
Chairman McCaskill.
    The Subcommittee also heard testimony from Army officials 
regarding the steps they were taking to correct several newly 
identified errors at Arlington, including soldiers buried in 
the wrong graves.
    To address the issues discussed at the hearing, on 
September 28, 2010, Chairman McCaskill, along with Senator 
Brown, Senator Lieberman, Senator Collins, and Senator Burr as 
original co-sponsors, introduced S. 3860--A Bill to Require 
Reports on the Management of Arlington National Cemetery.

                        B. Afghanistan and Iraq

    The Subcommittee held four hearings and one roundtable 
related to Federal contracts in Afghanistan and Iraq. The first 
hearing was focused on security contracts at the U.S. Embassy 
in Kabul, the second hearing was focused on the U.S. 
Government's reliance on contractors in Afghanistan, the third 
hearing was focused on training contracts for Afghan National 
Police Training, and the fourth hearing was focused on the work 
of the Special Inspector General for Afghanistan 
Reconstruction. The Subcommittee's roundtable reviewed U.S. 
Agency for International Development reconstruction and 
development contracts in Afghanistan.

1. Allegations of Waste, Fraud, and Abuse in Security Contracts at the 
        U.S. Embassy in Kabul (June 10, 2009)

    Witnesses: William H. Moser, Deputy Assistant Secretary for 
Logistics Management, U.S. Department of State; Samuel 
Brinkley, Vice President, Homeland and International Security 
Services, Wackenhut Services, Inc.
    Overview: On May 19, 2009, the Subcommittee began 
investigating allegations of misconduct related to private 
security contracts at the U.S. Embassy in Kabul. The 
Subcommittee reviewed over 5,000 pages of documents submitted 
by the State and the contractor, ArmorGroup North America Inc. 
(AGNA).
    On June 10, 2010, the Subcommittee held a hearing to 
question State and AGNA officials about the information 
revealed by the Subcommittee's investigation. At the hearing, 
the Subcommittee released a Majority Staff Analysis and 
previously non-public documents regarding the AGNA contract. 
The Subcommittee's analysis included the following troubling 
revelations:
      AGNA's performance under the contract was so 
inadequate that the contracting officer concluded ``I consider 
the contract deficiencies [. . .] to endanger performance of 
the contract to such a degree that the security of the U.S. 
Embassy in Kabul is in jeopardy'';
      AGNA's staffing failures had ``deteriorated to a 
level that . . . [the lack of personnel] gravely endanger[ed] 
performance of guard services in a high-threat environment such 
as Afghanistan'';
      According to the government, there were 
``extended periods of time when the Armorer, Radio Technician, 
and Medic positions have been vacant''; and
      In inspections conducted as recently as March 
2009, at least 18 guards were absent from their posts at the 
embassy.
    The Department of State defended the Department's decision 
to retain AGNA as the contractor and exercise its option to 
continue the contract for a second year.
    In August 2009, subsequent troubling revelations about the 
misconduct of AGNA employees prompted additional inquiries. In 
September 2009, Secretary of State Hillary Clinton sent a 
letter to Chairman McCaskill stating that a number of AGNA 
employees had been terminated and the State's Bureau of 
Diplomatic Security had been tasked with providing additional 
supervision over the contractor. In December 2009, the State 
Department notified the Subcommittee that it would not be 
renewing its contract with AGNA for a third option year and 
would award a new contract for guard security at the U.S. 
Embassy in Kabul by the end of 2010. The Subcommittee continues 
to investigate private security contractors, inherently 
governmental functions, and other related issues, including the 
use of personal services contractors to perform oversight.
    To address the issues discussed at the hearing, on February 
24, 2010, Senator McCaskill along with Senator Feingold and 
Senator Leahy as original co-sponsors, introduced S. 3037, The 
Enhancing Oversight and Security at United States Missions Act 
of 2010.

2. Afghanistan Contracts: An Overview (December 17, 2009)

    Witnesses: Colonel William H. Campbell, III, Director of 
Operations, Office of the Under Secretary of Defense 
(Comptroller), U.S. Department of Defense; Edward M. 
Harrington, Deputy Assistant Secretary (Procurement), U.S. 
Army; Charles North, Senior Deputy Director, Afghanistan-
Pakistan Task Force, U.S. Agency for International Development; 
Daniel F. Feldman, Deputy Special Representative for 
Afghanistan and Pakistan, U.S. Department of State; Jeffrey 
Parsons, Executive Director, Army Contracting Command, U.S. 
Army, U.S. Department of Defense.
    Overview: By December 2009, the United States had spent $23 
billion on contracts performed in Afghanistan since 2002. In 
addition, over 104,000 Defense Department contractors were in 
Afghanistan by that time, with the possibility of as many as 
56,000 additional contractors. Following President Obama's 
December 1, 2009 announcement of increased troop levels in 
Afghanistan, Chairman McCaskill held a hearing to examine 
spending and reliance on contractors in Afghanistan.
    Witnesses from the Defense Department and the State 
Department testified regarding their plans to manage and 
oversee this increase in contractors. In general, the hearing 
revealed that lessons learned from contracting failures in Iraq 
were not being applied in Afghanistan.
    The Subcommittee released a Majority Staff Memorandum for 
Members and Staff at the hearing.

3. ROUNDTABLE: Business Perspectives on United States Agency for 
        International Development Reconstruction and Development 
        Contracts in Afghanistan (February 2, 2010)

    Participants: Larry Walker, President, The Louis Berger 
Group, Inc.; Bill Van Dyke, President, Black and Veatch Federal 
Services Division; Richard Dreiman, President, Chemonics 
International, Inc.; Richard Owens, Director of Community 
Stabilization, International Relief and Development Inc.; James 
Boomgard, President and CEO, Development Alternatives, Inc.; 
Richard McCall, Senior Vice President and Chair Council of 
Senior Advisors, Creative Associates International; Asif 
Shaikh, President, International Resources Group; Patrick 
Bryski, Principal, Deloitte LLP.
    Overview: On February 2, 2010, the Subcommittee hosted a 
roundtable on USAID reconstruction and development contracts in 
Afghanistan. During the roundtable, seven company presidents 
and one company CEO spoke with Chairman McCaskill about USAID 
contracts for road, power plant, infrastructure, agricultural, 
and educational development in Afghanistan.
    The roundtable was followed by a working session for 
participants and Subcommittee staff. Participants agreed that 
USAID's oversight of contracts was deficient. In addition, 
participants agreed that a lack of central command at the U.S. 
Embassy in Kabul was affecting reconstruction and development 
efforts.

4. Contracts for Afghan National Police Training (April 15, 2010)

    Witnesses: Hon. Gordon S. Heddell, Inspector General, U.S. 
Department of Defense; Evelyn R. Klemstine, Assistant Inspector 
General for Audits, U.S. Department of State; Hon. David T. 
Johnson, Assistant Secretary, Bureau of International Narcotics 
and Law Enforcement Affairs, U.S. Department of State; David S. 
Sedney, Deputy Assistant Secretary of Defense for Afghanistan, 
Pakistan, and Central Asia, Office of the Assistant Secretary 
of Defense for Asian and Pacific Security Affairs, U.S. 
Department of Defense.
    Overview: The hearing examined problems with the Defense 
Department's and State's administration of the Afghan National 
Police training contract. The hearing was shaped by two 
developments: (1) a February 2010 joint audit report by the 
Inspectors General for the Defense Department and State 
Department that found serious deficiencies in the management of 
the contract; and (2) a March 2010 sustention by the Government 
Accountability Office of the contractor DynCorp's protest that 
the Defense Department's attempt to transfer the contract to an 
existing counter-narcoterrorism contract was unauthorized.
    At the hearing, the Defense Department Inspector General 
Heddell testified that the training currently being provided by 
contractors was inadequate. In addition, in June 2009, the 
State Department had only one in-country contracting officer's 
representative in Afghanistan monitoring the main Afghan 
National Police task order.
    After the hearing, the Defense Department officials 
notified the Subcommittee that the Defense Department planned 
to competitively award a new contract by December 2010.
    To address the issues discussed at the hearing, Chairman 
McCaskill offered an amendment, titled Sense of Congress and 
Reports on Training of Afghan National Police, to the FY2011 
National Defense Authorization Act.

5. Oversight of Reconstruction Contracts in Afghanistan and the Role of 
        the Special Inspector General (November 18, 2010)

    Witnesses: Hon. Jon T. Rymer, Inspector General, Federal 
Deposit Insurance Corporation, and Chair, Audit Committee, 
Council of the Inspector General on Integrity and Efficiency; 
Hon. Richard W. Moore, Inspector General, Tennessee Valley 
Authority, and Chair, Investigation Committee, Council of the 
Inspectors General on Integrity and Efficiency; Arnold Fields, 
Special Inspector General for Afghanistan Reconstruction; Hon. 
Gordon S. Heddell, Inspector General, U.S. Department of State; 
Michael G. Carroll, Deputy Inspector General, U.S. Agency for 
International Development; Stuart W. Bowen, Jr., Special 
Inspector General for Iraq Reconstruction.
    Overview: The hearing examined the role of the Special 
Inspector General for Afghanistan Reconstruction in providing 
independent oversight of contingency contracts in Afghanistan. 
The hearing also assessed SIGAR's effectiveness in preventing 
and identifying waste, fraud, and abuse of taxpayer dollars.

6. Investigation: The Logistics Civil Augmentation Program (LOGCAP)

    The Subcommittee launched an investigation related to the 
LOGCAP contract. The investigation is focused on the Department 
of Defense's oversight and management lapses of the contract.
    The Subcommittee requested and reviewed several hundreds of 
pages of documents and received multiple briefings from the 
Defense Department officials related to LOGCAP. The 
Subcommittee has also moved through its procedures to release 
previously non-public information related to LOGCAP.
    The Subcommittee continues to investigate LOGCAP.

                           C. Accountability

    The Subcommittee held two hearings related to 
accountability. The first hearing was focused on improving the 
ability of Inspectors General to combat waste, fraud, and abuse 
in Federal contracting and the second hearing was focused on 
holding foreign contractors accountable for harming U.S. 
personnel.

1. Improving the Ability of Inspectors General to Detect, Prevent, and 
        Prosecute Contracting Fraud (April 21, 2009)

    Witnesses: Hon. Brian D. Miller, Inspector General, General 
Services Administration; Hon. Richard L. Skinner, Inspector 
General, U.S. Department of Homeland Security; Charles W. 
Beardall, Deputy Inspector General for Investigations, U.S. 
Department of Defense; J. Anthony Ogden, Inspector General, 
U.S. Governmental Printing Office, Chairman of the Legislation 
Committee, Council of the Inspectors General Council on 
Integrity and Efficiency.
    Overview: The hearing examined additional tools needed by 
Inspectors General to detect and prosecute contracting fraud. 
The Subcommittee has maintained a productive working 
relationship with the Inspector General community and continues 
to work with individual Inspectors General and the Council of 
Inspectors General for Integrity and Efficiency on policy 
issues and needed legislation related to Federal contracting.

2. Accountability for Foreign Contractors: The Lieutenant Colonel 
        Domenic ``Rocky'' Baragona Justice for American Heroes Harmed 
        By Contractors Act (November 18, 2009)

    Witnesses: Hon. Tim Ryan, a Representative in Congress from 
the State of Ohio, Dominic Baragona, Father of Lieutenant 
Colonel Dominic ``Rocky'' Baragona; Scott Horton, Professor, 
Lecturer-in-Law, Columbia Law School; Ralph G. Steinhardt, 
Professor of Law and International Affairs, The George 
Washington University Law School; Tony West, Assistant Attorney 
General, Civil Division, U.S. Department of Justice; Richard T. 
Ginman, Deputy Director for Program Acquisition and Contingency 
Contracting, Defense Procurement and Acquisition Policy, Office 
of the Under Secretary of Defense for Acquisition, Technology, 
and Logistics, U.S. Department of Defense; Uldric I. Fiore, 
Jr., Suspension and Debarment Official, and Director, Soldier 
and Family Legal Services, Office of the Judge Advocate 
General, Department of the Army, U.S. Department of Defense.
    Overview: On May 19, 2003, Lt. Col. Dominic ``Rocky'' 
Baragona was killed in Safwan, Iraq, when his vehicle was 
struck by a truck driven by an employee of the Kuwait & Gulf 
Link Transport Company--a Kuwaiti company with hundreds of 
millions of dollars in U.S. contracts and subcontracts. On May 
12, 2005, Lt. Col. Baragona's family brought a wrongful death 
lawsuit against KGL in Federal court in Georgia and won a $4.9 
million default judgment. However, after KGL contested the 
judgment on the grounds of personal jurisdiction, the court 
found in KGL's favor and vacated the judgment.
    On November 17, 2009, Senator McCaskill along with Senator 
Collins, Senator Bennett, Senator Brown, Senator Nelson, 
Senator Lemieux, and Senator Casey, introduced S. 2782--The 
Lieutenant Colonel Dominic ``Rocky'' Baragona Justice for 
American Heroes Harmed by Contractors Act, a bill that requires 
a foreign entity that enters into a contract over $5 million 
with the U.S. Government to consent to personal jurisdiction in 
civil suits involving serious bodily injury, rape, or sexual 
assault for actions arising out of the performance of the 
contract.
    The hearing examined the legislation. The hearing also 
examined the policy implications of current suspension and 
debarment practices throughout the government and whether 
agencies and departments were fully utilizing the tools 
currently available to them to identify, prevent, and prosecute 
wrongdoing by contractors. Finally, the hearing explored legal 
ambiguities that are being exploited by foreign entities who 
contract with the United States.
    In conjunction with the hearing, the Subcommittee released 
a review of suspension and debarments across the government. 
The data showed that the Federal Government had failed to 
exercise its suspension and debarment authority.

3. Investigation: Earmarks

    On March 16, 2009, Chairman McCaskill sent a letter to 
Secretary Robert Gates requesting information on the award of 
contracts for congressional earmarks by the Defense Department. 
Since then, the Subcommittee has been working with the Defense 
Department to obtain information on the approximately 4,500 
earmarks awarded in 2008 and 2009, but has only received 
documents related to fewer than 500 earmarks. Although 
information relating to both contract awards and earmark 
allocations is publicly available through separate databases, 
it is not readily accessible--even to the Defense Department 
officials.
    In the future, the Subcommittee plans to hold a hearing 
that examines the extent to which the Defense Department uses 
competition in the awarding of contracts for earmarks. The 
hearing would also examine the lack of transparency in the 
earmark process. In addition, the Subcommittee is considering 
legislation that would require such information to be centrally 
located in the Federal Procurement Database System.

4. Investigation: Contract Audits at Federal Agencies

    On April 9, 2010, Chairman McCaskill sent an agency-wide 
letter requesting information on contract audits performed by 
22 Federal departments and agencies. Chairman McCaskill 
specifically requested information on the costs of such audits, 
the organizations performing such audits, and the frequency of 
such audits for 2009. Preliminary responses to the letter 
indicated a wide discrepancy in the type and number of audits 
performed by various agencies. For example, some agencies 
perform hundreds of audits per year while other agencies 
perform as few as one audit per year.
    In the future, the Subcommittee plans to hold a hearing 
that would examine the variance in and results of audits 
performed by various agencies. The hearing would also examine 
whether sufficient oversight is being performed within the 
agencies to ensure that taxpayer dollars are not being wasted 
on contracts.

5. Investigation: Contractors Hired to Respond to Congress

    Only July 6, 2010, Chairman McCaskill sent a second agency-
wide letter requesting information on the use of contractors to 
respond to congressional requests at 19 Federal departments and 
agencies. Although the Federal Acquisition Regulation prohibits 
agencies from using contractors to perform inherently 
governmental functions (i.e. drafting congressional testimony 
and responses to Congress), information indicates that a 
growing number of agencies may be using contractors for such 
purposes. For example, the Department of Defense hired a 
contractor to respond to the Subcommittee's request for 
information on counternarcotics contracts, which raised 
questions about the aforementioned FAR position.
    The Subcommittee reviewed responses to Chairman McCaskill's 
agency-wide letter and determined appropriate next steps.

                          D. Counternarcotics

    The Subcommittee launched one investigation and held one 
hearing related to counternarcotics. The investigation and the 
hearing were focused on the failure of the Department of 
Defense and the State Department to manage contractors for 
counternarcotics assistance in Latin America.

1. Counternarcotics in Latin America (May 20, 2010)

    Witnesses: Hon. David T. Johnson, Assistant Secretary for 
International Narcotics and Law Enforcement Affairs, U.S. 
Department of State; William F. Wechsler, Deputy Assistant 
Secretary for Counternarcotics and Global Threats, U.S. 
Department of Defense.
    Overview: The hearing examined Defense Department and State 
Department contracts for counternarcotics assistance in Latin 
America. A major focus of the hearing was the lack of available 
metrics to evaluate contract spending on counternarcotics 
activities in Latin America, including both Departments' own 
inability to accurately measure spending. For example, the 
State Department provided annual reports to Congress which 
showed that the State Department paid more than $940 million to 
contractors performing work in Colombia alone from 2005 to 
2008. However, documents provided to the Subcommittee by the 
State Department showed that the State Department has only 
spent $360 million on contracts related to counternarcotics 
activities in Mexico, Colombia, Peru, Bolivia, Ecuador, Haiti, 
Guatemala, and the Dominican Republic combined over the 
previous 10 years.
    At the hearing, Chairman McCaskill addressed both 
Departments' failure to significantly comply with the 
Subcommittee's requests for information and documents, 
including the possibility of issuing subpoenas for 
noncompliance. Witnesses from both Departments committed to 
fully complying with the Subcommittee's requests. Currently, 
the Subcommittee has received additional documents and 
information and is preparing a staff analysis that will 
summarize this information for public release.

                        E. Medicare and Medicaid

    The Subcommittee launched one investigation and held one 
hearing related to Medicare and Medicaid. The investigation was 
focused on contracts with the Medicare Secondary Payer 
Recovery. The hearing was focused on the Centers for Medicare 
and Medicaid Services management and oversight of contracts.

1. Oversight of Contract Management at the Centers for Medicare and 
        Medicaid Services (April 28, 2010)

    Witnesses: Kay L. Daly, Director, Financial Management and 
Assurance, U.S. Government Accountability Office; Rodney L. 
Benson, Director, Office of Acquisition and Grants Management, 
Centers for Medicare and Medicaid Services, U.S. Department of 
Health and Human Services.
    Overview: In 2009, the Centers for Medicare and Medicaid 
Services spent nearly $4 billion on contracts. In October 2009, 
GAO released a report entitled, Centers for Medicare and 
Medicaid Services: Deficiencies in Contract Management Internal 
Control are Pervasive. Chairman McCaskill was a co-requester of 
the report. In January 2010, Chairman McCaskill, requested that 
GAO conduct additional work relating to the scope and extent of 
CMS contracts.
    The hearing examined problems identified with CMS's 
management and oversight of these contracts. GAO found that 
``pervasive deficiencies'' in CMS contract management (i.e. 
weak internal controls, inadequate staffing, and unreliable 
data) put CMS at increased risk of improper payments and waste.

2. Investigation: The Medicare Secondary Payer Recovery Contractor

    In September 2009, the Subcommittee launched an 
investigation into contracts with the Medicare Secondary Payer 
Recovery program, a program that was created in 1980 to reduce 
Medicare costs. The investigation revealed problems with the 
performance of the Medicare Secondary Payer Recovery Contractor 
during the first half of 2009. However, the MSPRC significantly 
improved its performance during the second half of 2009. 
Although internal weaknesses within the MSPR continued, the 
MSPRC increased its rate of response to communications and 
decreased its backlog of cases.

                           F. Small Business

    The Subcommittee launched one investigation and held one 
hearing related to small business. The investigation and the 
hearing were focused on contracting preferences for Alaska 
Native Corporations within the Small Business Administration's 
8(a) program.

1. Contracting Preferences for Alaska Native Corporations (July 16, 
        2009)

    Witnesses: Debra Ritt, Assistant Inspector General for 
Auditing, Office of Inspector General, U.S. Small Business 
Administration; Joseph Jordan, Associate Administrator, Office 
of Government Contracting and Business Development, U.S. Small 
Business Administration; Shay Assad, Acting Deputy Under 
Secretary of Defense for Acquisition and Technology, U.S. 
Department of Defense; Sarah L. Lukin, Executive Director, 
Native American Contractors Association; Jacqueline Johnson 
Pata, Executive Director, National Congress of American 
Indians; Julie Kitka, President, Alaska Federation of Natives; 
Mark Lumber, Senior Vice President, Federal Programs, Cirrus 
Technology, Inc.; Christina Schneider, Chief Financial Officer, 
Purcell Construction Corporation.
    Overview: The hearing examined contracting preferences for 
Alaska Native Corporations within the SBA's 8(a) program. The 
hearing was based on an investigation launched by the 
Subcommittee in which 20 requests for information from ANCs and 
village corporations were made and over 1,800 pages of 
documents submitted in response to these requests were 
reviewed.
    The witnesses at the hearing responded to questions based 
on the findings of the Subcommittee's investigation. The 
findings were made public in two Majority Staff Analyses and 
included the following:
      ``Contract awards to Alaska Native Corporations 
increased by 916 percent, from $508.4 million in 2000 to $5.2 
billion in 2008'';
      ``Of the contract dollars awarded to ANCs in 
2008, 80 percent were performed outside of Alaska in 2008'';
      ``The majority of the Alaska Native Corporations 
surveyed by the Subcommittee exceed the size requirements 
applicable to other 8(a) companies;'' 11 out of the 19 
companies surveyed ``have had annual revenues higher than the 
Small Business Administration's limit since 2002''; and
      ``The 19 Alaska Native Corporations which 
provided information to the Subcommittee employ more than 
45,000 individuals throughout their corporations. Of these 
individuals, approximately 2,400--5.2 percent--are shareholders 
or relatives of shareholders of the employing Corporation. On 
average, nearly 95 percent of ANC employees are not ANC 
shareholders.''
    In conjunction with the Subcommittee's hearing, the 
Inspector General of the SBA released a report on July 10, 2009 
entitled, ``Participation in the 8(a) Program by Firms Owned by 
Alaska Native Corporations.'' Representatives for ANC lobbying 
groups criticized both the SBA report and the Subcommittee's 
findings.
    On October 28, 2009, the FY2010 National Defense 
Authorization Act was signed into law and included a provision 
that eliminates certain preferences for Alaska Native 
Corporations. Section 811 of the law requires Federal agencies 
to provide written justification and approval prior to awarding 
any sole-source contract over $20 million. Chairman McCaskill 
was an outspoken supporter of this provision.
    On November 17, 2010, Chairman McCaskill introduced S. 
3959--To eliminate the preferences and special rules for Alaska 
Native Corporations under the program under section 8(a) of the 
Small Business Act.

                            II. LEGISLATION

    The Subcommittee on Contracting Oversight does not have 
legislative authority. However, the Subcommittee's 
investigations and hearings have revealed the absence of needed 
reform in various aspects of Federal procurement law. During 
the 111th Congress, Chairman McCaskill introduced the following 
legislative proposals in her capacity as a Senator.

A. Enhancing Oversight and Security at United States Missions Act of 
        2010 (S. 3037)

    On February 24, 2010, Senator McCaskill, along with Senator 
Feingold and Senator Leahy, introduced S. 3037--The Enhancing 
Oversight and Security at United States Missions Act of 2010. 
The bill would require the Secretary of State, in coordination 
with the Secretary of Defense, to establish a plan to increase 
the oversight of private security contractors at Embassies 
where Armed Forces are engaged in combat operations. In 
particular, the bill would require the following:
      A determination of the appropriate ratio of U.S. 
security personnel to private security contractors;
      A coordinate increase in U.S. security personnel 
or decrease in private security contractors;
      An establishment of practices to adequately train 
personnel and assign oversight responsibility sufficient to 
maintain embassy security; and
      Annual reports to Congress.
    Components of The Enhancing Oversight and Security at 
United States Missions Act of 2010 have been adopted and 
proposed in Section 842 of the FY2011 National Defense 
Authorization Act Section 842 of the FY2011 NDAA amends 
existing law to require the head of a contracting activity to 
ensure that a ``sufficient'' number of oversight personnel are 
assigned to contracts for private security functions in areas 
of combat operations. Section 842 would also mandate that the 
failure of contractors to comply with certain requirements be 
considered in award fees, entered into past performance 
databases, and, in cases of failures to comply that were severe 
or prolonged, referred to suspension and debarment officials as 
a basis for suspension or debarment.

B. Lieutenant Colonel Dominic ``Rocky'' Baragona Justice for American 
        Heroes Harmed by Contractors Act (S. 2782)

    On November 17, 2009, Chairman McCaskill, along with 
Senator Collins, Senator Bennett, Senator Brown, Senator Nelson 
of Florida, Senator Lemieux, and Senator Casey, re-introduced 
S. 2782--The Lieutenant Colonel Dominic ``Rocky'' Baragona 
Justice for American Heroes Harmed by Contractors Act. The bill 
requires foreign entities that enter into contracts over $5 
million with the United States to consent to personal 
jurisdiction in civil suits involving serious bodily injury, 
rape, or sexual assault for actions arising out of the 
performance of the contract. The bill also amends the Federal 
Acquisition Regulation to give agencies and departments the 
explicit authority to suspend or debar foreign contractors for 
evasion of service of process or for failing to appear in court 
to answer the covered actions in the bill.

C. Justification and Approval of Sole-Source Contracts. (FY2010 
        National Defense Authorization Act. Pub. L. 111-84, Sec. 811 
        Oct. 28, 2009)

    On October 28, 2009, the FY2010 National Defense 
Authorization Act was signed into law and included a provision 
that eliminates certain preferences for Alaska Native 
Corporations. Section 811 of the law requires Federal agencies 
to provide written justification and approval prior to awarding 
any sole-source contract over $20 million. In effect, the law 
extends the justification and approval requirements of the 
Competition in Contracting Act to sole-source contracts awarded 
to ANCs and other entities under the 8(a) program. The law 
required implementation of the new requirements by April 2010. 
However, to date, the provision has not been implemented and 
OMB has delayed further action until it engages in further 
consultation with ANCs. In addition, ANC lobbying groups have 
worked since the Subcommittee's hearing on the passage of the 
legislation to limit the implementation of changes.
    Chairman McCaskill was an outspoken supporter of this 
provision. At the hearing on July 16, 2009, entitled 
``Contracting Preferences for Alaska Native Corporations,'' the 
Subcommittee heard testimony relating to the numerous 
preferences that allow ANCs and Indian tribes to receive sole-
source contracts above the $3.5 and $5.5 million limits imposed 
on other 8(a) participants, without complying with the CICA 
requirements. Chairman McCaskill made repeated public requests 
to OMB for an explanation as to why it has delayed 
implementation of the law. The Subcommittee continues to 
explore opportunities for additional legislation to address 
other noncompetitive preferences for ANCs.

D. The Acquisition Workforce Improvement Act of 2009 and Federal 
        Acquisition Institute Improvement Act of 2009 (S. 2901 and S. 
        2902).

    In December 2009, Senator Collins introduced two related 
bills to strengthen training and performance in the acquisition 
workforce. Chairman McCaskill joined as an original co-sponsor.
    The Acquisition Workforce Improvement Act of 2009 would 
establish an acquisition management fellows program with 
academic and workforce training components. S. 2901--The 
Federal Acquisition Institute Improvement Act of 2009 would 
enhance acquisition training standards, certification 
requirements, and guideline standards. The legislation would 
also ensure that the Federal Acquisition Institute received 
sufficient budgetary resources to support improved training 
across the Federal Government.
    The acquisition workforce increased by approximately 15 
percent between 2000 and 2008 during the same time in which 
contract spending increased over 160 percent to $540 billion. 
The acquisition workforce has been strained throughout the 
Federal Government, which the Subcommittee has called attention 
to in a number of hearings.

E. FY2011 National Defense Authorization Act. S. 3454, Sections 843, 
        857, and 1216

    Chairman McCaskill worked with Members to shape additional 
provisions in the FY2011 National Defense Authorization Act 
based on problems identified in Subcommittee hearings and 
investigations. The following provisions all deal with issues 
being investigated by the Subcommittee.

1. Enhancements of Authority of Secretary of Defense to Reduce or Deny 
        Award Fees to Companies Found to Jeopardize Health or Safety of 
        Government Personnel (Sec. 843)

    Section 843 of the National Defense Authorization Act of 
2011 enables the Secretary of Defense to reduce or deny award 
fees to companies found to have jeopardized the health and 
safety of U.S. Government personnel. Section 843 also gives the 
Secretary new authorization to determine fault in cases where 
he or she has reason to believe that a contractor, in the 
performance of a contract, may have caused serious bodily 
injury to or the death of civilian or military personnel. 
Section 843 is related to concepts advanced by The Lieutenant 
Colonel Dominic ``Rocky'' Baragona Justice for American Heroes 
Harmed by Contractors Act.

2. Contractor Logistics Support of Contingency Operations (Sec. 857)

    Section 857 of the FY2011 NDAA requires the Defense 
Department to plan for the roles and responsibilities 
contractors will play as well as the overall manpower and 
contractor support anticipated by the military. These issues 
are to be analyzed in the Quadrennial Defense Review, a review 
by the Defense Science Board, and in the National Military 
Strategy. The most recent QDR had almost no discussion of the 
implications that reliance on contractors has for the 
military's readiness, capabilities, and overall makeup.

3. Sense of Congress and Reports on Training of Afghan National Police 
        (Sec. 1216)

    Section 1216 of the FY2011 National Defense Authorization 
Act expresses the sense of Congress that the U.S. Government 
should take measurable actions to improve its capacity to 
advise and mentor the Afghan National Police and clarify the 
law enforcement organization's roles, missions, and 
responsibilities for police training and rule of law 
operations. This section also requires separate reports from 
the following officials and agencies:
      A report from the Defense Department Inspector 
General on developments in the Afghan National Police training 
program;
      A report from GAO on the use of U.S. Government 
personnel instead of contractors for the training of the Afghan 
National Police; and
      A report from the Secretary of Defense on the 
strategy for police training and rule of law programs in 
Afghanistan, Iraq, and elsewhere abroad.
    After the Subcommittee's April 15, 2010 hearing on the 
Afghan National Police training contract, Chairman McCaskill 
took an active role in pressing for the reporting requirements.

F. Civilian Extraterritorial Jurisdiction Act of 2010 (S. 2979)

    On February 2, 2010, Senator Leahy, along with Chairman 
McCaskill and other members, introduced S. 2979--The Civilian 
Extraterritorial Jurisdiction Act of 2010. The bill authorizes 
prosecution of civilian and contractor employees for certain 
crimes committed while working overseas, and includes 
contractor employees employed by or accompanying any U.S. 
department or agency other than the Armed Forces. In addition, 
the bill requires the Department of Justice to establish 
overseas investigative units staffed by FBI and other law 
enforcement officials that have the authority to investigate 
and make arrests.
    CEJA would extend existing law to cover all civilian and 
contractor employees working overseas. The Military 
Extraterritorial Jurisdiction Act, the precursor to CEJA, 
explicitly covers Department of Defense contractors and 
subcontractors and, as amended in 2005, all Federal agencies 
and their contractors in felony criminal actions. However, MEJA 
only applies to the extent that the work of such agencies and 
contractors relates to ``supporting the mission of the 
Department of Defense overseas.''
    On December 31, 2009, U.S. v. Slough et al., a case 
involving five former Blackwater employees charged with murder 
for the September 2007 shooting deaths of 17 people in Nisour 
Square, in Iraq, was dismissed on unrelated grounds. The case 
did not address the question of whether defendants, as 
contractors with the State Department, could be prosecuted 
under existing Federal law, and is being appealed. CEJA would 
make such contractor employees subject to future prosecution.

G. A bill to Require Reports on the Management of Arlington National 
        Cemetery (S. 3860)

    On September 28, 2010, Chairman McCaskill introduced S. 
3860--To Require Reports on the Management of Arlington 
National Cemetery along with Senator Brown, Senator Lieberman, 
Senator Collins, and Senator Burr as original co-sponsors. The 
bill requires the Secretary of the Army to report to Congress 
on the ability of the Cemetery to verify the identity, 
location, and burial records for gravesites at the historical 
landmark and present plans to remedy any errors found in the 
review. The bill also requires the Comptroller General to 
present a report to Congress on the management and oversight of 
contracts at the Cemetery, including a review of feasibility 
and advisability of transferring all or part of the Army's 
jurisdiction over Army National Cemeteries to the Veterans 
Administration.
    On December 4, 2010, the Senate passed an amended version 
of S. 3860 by unanimous consent. The bill was sent to the House 
on December 6. On December 7, Chairman McCaskill and Senator 
Brown sent a letter to Speaker Nancy Pelosi, Republican Leader 
John Boehner, and the Chairmen and Ranking Members of the House 
Armed Services and Veterans' Affairs Committees, requesting 
that the House act to pass the legislation before the close of 
the 111th Congress. On December 22, 2010, S. 3860 became Public 
Law 111-339.

H. A bill to Eliminate the Preferences and Special Rules for Alaska 
        Native Corporations under the Program under Section 8(a) of the 
        Small Business Act (S. 3959)

    On November 17, 2010, Chairman McCaskill introduced S. 
3959--To Eliminate the Preferences and Special Rules for Alaska 
Native Corporations under the Program under Section 8(a) of the 
Small Business Act. This legislation will place ANC on equal 
footing with other eligible 8(a) program participants.