Senate Session 2012-05-22 (15:19:57-16:26:58)


THE CONFIDENCE OF THE AMERICAN PEOPLE. I THANK THE CHAIR AND WOULD YIELD THE FLOOR. A SENATOR: MR. PRESIDENT? THE SENATOR FROM ARKANSAS.
8
00:00:13,000 –>00:00:12,999
THANK YOU, MR. PRESIDENT. I’D LIKE TO SPEAK AS IF IN MORNING BUSINESS FOR 15 MINUTES. WITHOUT OBJECTION. MR. PRESIDENT, TODAY I RISE TO DISCUSS THE NATIONAL FLOOD INSURANCE PROGRAM, WHICH IS A PROGRAM THAT IS TRYING TO BE REAUTHORIZED RIGHT NOW BY THE SENATE. THE SENATORS JOHNSON AND SHELBY HAVE SHEPHERDED THIS BILL THROUGH THE BANKING COMMITTEE, HAVE A TON OF RESPECT FOR BOTH OF THOSE SENATORS AND THE WORK OF THE BANKING COMMITTEE BECAUSE THEY WORKED VERY, VERY HARD TO
27
00:00:48,000 –>00:00:47,999
GET IT TO THE FLOOR, TO GET IT READY. IN FACT, IT EXPIRES ON MAY 31 AND IF FOR SOME REASON WE CANNOT WORK OUT SOMETHING HERE IN THE NEXT COUPLE DAYS, I SINCERELY HOPE THAT WE WILL EXTEND THIS ON A SHORT-TERM BASIS FOR ANOTHER, SAY, 30 DAYS AND GIVE US TIME TO WORK THIS OUT BECAUSE THE NATIONAL FLOOD INSURANCE PROGRAM IS TOO IMPORTANT TO MORTGAGES AND COMMERCIAL REAL ESTATE, ETC., TO LET IT LAPSE. WE SHOULD NOT LET IT LAPSE. IF WE CAN’T WORK IT OUT RIGHT NOW, I CERTAINLY HOPE WE CAN
44
00:01:20,000 –>00:01:19,999
GET SAY A 30-DAY EXTENSION AND I SUPPORT THAT EFFORT. WE NEED TO REAUTHORIZE THIS BIT OF LEGISLATION, THIS PROGRAM, BUT WE NEED TO DO IT IN THE RIGHT WAY. SEVERAL SENATORS OVER THE COURSE OF THE LAST FEW MONTHS HAVE STATED OBJECTIONS ABOUT S. 1940, AND HERE ARE MINE. IN FACT, I’VE LISTED OUT SOME OF MINE IN A LETTER THAT WE SENT TO THE CHAIRMAN AND RANKING MEMBER LAST MONTH OR SO. I’LL HAVE TO PULL THE LETTER — I’M SORRY, NOVEMBER 15 OF 2011, WE LISTED OUT SEVERAL OBJECTIONS THAT WE HAD OR CONCERNS WE HAD WITH THE BILL. SENATORS FROM NINE STATES WHO SIGNED THIS LETTER GOING TO SENATORS JOHNSON AND SHELBY. AGAIN, WE APPRECIATE THEIR EFFORTS, BUT WE JUST HAVE TO DO THIS THE RIGHT WAY. SO LET ME RUN THROUGH THREE OR FOUR OR FIVE OF MY CONCERNS ABOUT THIS LEGISLATION AND TELL MY COLLEAGUES WHY I CANNOT SUPPORT IT IN ITS CURRENT FORM, AND WHY I DO SUPPORT AN EXTENSION, BUT WHY IN THE END, IF THE BILL STAYS LIKE IT IS NOW, I CANNOT SUPPORT IT AND I HOPE THAT MANY OF MY COLLEAGUES WILL JOIN ME IN THE EFFORT OF NOT SUPPORTING THIS LEGISLATION AS IT’S CURRENTLY DRAFTED. LET ME START, MR. PRESIDENT, WITH THE BILL ITSELF, S. 1940. THE PRIMARY OBJECTION THAT I HAVE IS IN SECTION 107 OF THE LEGISLATION. IT’S CALLED MANDATORY COVERAGE AREAS. BASICALLY WHAT IT DOES IS IT REDEFINES SPECIAL FLOOD HAZARD AREAS, AND THIS MAY NOT SOUND EXCITING OR VERY FUN TO PEOPLE, BUT THIS IS CRITICALLY IMPORTANT. I’M SHOWING A MAP HERE ON THE FLOOR TODAY. ALL OF THESE COUNTIES IN THE DARK GREEN, THERE’S 881 COUNTIES TOTAL THAT HAVE LEVEES IN THEIR COUNTIES. IT’S ABOUT — MY UNDERSTANDING, ABOUT WELL OVER 50% OF THE U.S. POPULATION
104
00:03:28,000 –>00:03:27,999
HAS — LIVES SOMEWHERE NEAR A LEVEE. THEY MAY NOT REALIZE IT BECAUSE THE LEVEES WORK AND THEY DON’T HAVE FLOODS BUT IF YOU SEE THIS MAP, YOU CAN SEE THE LEVEES ALL OVER THE COUNTRY AND IF YOU’RE A SENATOR REPRESENTING ONE OF THOSE STATES, BY STRONGLY ENCOURAGE YOU AND YOUR STAFF TO
114
00:03:46,000 –>00:03:45,999
LEGISLATION. LOOK AT SECTION 107 OF THE HERE’S PART — THIS IS 107-B AND IT SAYS RESIDUAL RISK AREAS. THE REGULATIONS REQUIRED BY SUB A SHALL REQUIRE THE EXPANSION OF AREAS OF SPECIAL FLOOD HAZARDS TO INCLUDE AREAS OF RESIDENTIAL — REGLIEZ YOU’LL RISK — RESIDUAL RISK LOCATED BEHIND LEVEES, NEAR DAMS OR OTHER FLOOD CONTROL STRUCTURES AS DETERMINED BY THE ADMINISTRATOR. SUBSECTION C SAYS MANDATORY PARTICIPATION IN NATIONAL FLOOD INSURANCE PROGRAM. C-1, IN GENERAL, ANY AREA DESCRIBED IN SUBSECTION B, THE ONE I JUST READ, SHALL BE SUBJECT TO THE MANDATORY PURCHASE REQUIREMENTS. OKAY. THEN IF I GO DOWN TO C-3, IT SAYS IN CARRYING OUT THE MANDATORY PURCHASE REQUIREMENT UNDER PARAGRAPH ONE, THE ADMINISTRATOR SHALL ENSURE THAT THE PRICE OF FLOOD INSURANCE POLICIES IN AREAS OF RESIDUAL RISK ACCURATELY REFLECT THE LEVEL OF FLOOD PROTECTION PROVIDED BY ANY LEVEE, DAM, OR STRUCTURE IN SUCH AREA REGARDLESS, REGARDLESS OF THE CERTIFICATION
150
00:05:05,000 –>00:05:04,999
STATUS OF THE FLOOD CONTROL STRUCTURE. SO REGARDLESS OF WHETHER THESE LEVEES AND DAMS ARE CERTIFIED, IN MANY CASES BY THE CORPS OF ENGINEERS, IN OTHER CASES BY PRIVATE ENGINEERING FIRMS, REGARDLESS OF WHETHER THEY ARE CERTIFIED, THE PEOPLE BEHIND THOSE LEVEES ARE GOING TO BE REQUIRED TO PURCHASE FLOOD INSURANCE. IT SAYS HE REGULATIONS REQUIRED BY SUBSECTION A SHALL REQUIRE, SHALL REQUIRE — NO WIGGLE ROOM THERE — SHALL REQUIRE THE EXPANSION OF AREAS OF SPECIAL FLOOD HAZARDS TO INCLUDE THESE AREAS. MR. PRESIDENT, THIS IS A GREAT EXPANSION OF THIS PROGRAM. I WANT TO TALK ABOUT THE EXPANSION HERE IN JUST A MOMENT. BUT LET ME SAY THAT THE FOLKS IN THESE AREAS — AND I SNOW NOE IT’S CERTAINLY TRUE IN MY STATE ARKANSAS BUT THE PEOPLE IN
177
00:06:00,000 –>00:05:59,999
FOR FLOOD PROTECTION. THESE AREAS, THEY CURRENTLY PAY IN MOST CASES WHAT THEY DO IS THROUGH SOME SORT OF LOCAL LEVY OR LOCAL TAX, IT’S DIFFERENT IN DIFFERENT PLACES, BUT SOMEHOW, SOME WAY THEY PAY TO BUILD AND MAINTAIN THESE LEVEES. THEY ARE PAYING OUT OF THEIR POCKET RIGHT NOW TO MAKE SURE THAT THEY DON’T GET FLOODED. NOW WHAT THIS BILL DOES AND WHAT FEMA WOULD DO UNDER THIS BILL, WOULD BE REQUIRED, NO WIGGLE ROOM, WHAT THEY WOULD BE REQUIRED TO DO UNDER THIS BILL IS MAKE THEM PAY AGAIN. NOT ONLY PAY FOR THEIR OWN LEVEE, PLAY FLOOD INSURANCE FOR FLOODS THAT WILL NEVER HAPPEN IN THEIR AREAS BECAUSE THESE LEVEES ARE CERTIFIED. AGAIN, THIS IS 881 COUNTIES, 50% OF THE U.S. POPULATION. OVER HALF THE COUNTIES IN ARKANSAS HAVE LEVEES, AND THERE’S OVER 1,200 DAMS IN OUR STATE. I DON’T HAVE THE NUMBER OF DAMS FOR EVERYBODY ALL OVER THE COUNTRY BUT IT’S OVER 1,200 IN MY STATE, SO YOU CAN MULTIPLY THAT OUT BY HOW MANY DAMS YOU THINK THERE ARE IN THE U.S. IT’S A HUGE NUMBER AND IT’S GOING TO AFFECT WELL OVER HALF THE PEOPLE IN THE UNITED STATES. SO I MENTION THAT THESE FOLKS ARE ALREADY PAYING FOR THEIR OWN FLOOD PROTECTION THROUGH LOCAL LEVIES. THEY ALSO ARE GOING TO NOW ACCORDING TO THIS LAW HAVE TO PAY FOR INSURANCE BUT IN ADDITION TO THAT TO RUB SALT IN THE WOUNDS, WHAT THEY’RE GOING TO HAVE TO DO IS — THEIR LOCAL COUNTIES ARE GOING TO HAVE TO PASS AN ORDINANCE THAT FEMA HAS WRITTEN, AND IT’S GOING TO RESTRICT THE LAND USE. AND IN MANY CASES, THAT ORDINANCE WILL DIMINISH THE PROPERTY VALUES, DIMINISH THE
231
00:07:42,000 –>00:07:41,999
ABILITY FOR THEM TO DO DEVELOPMENT, ECONOMIC DEVELOPMENT IN THEIR COMMUNITIES. IF WE CAN JUST TAKE ONE EXAMPLE OF SOMETHING THAT HAPPENED LAST YEAR, LAST YEAR WE HAD TERRIBLE
238
00:07:55,000 –>00:07:54,999
FLOODING IN THE MIDSECTION OF THE COUNTRY. OF YOU REMEMBER THAT. THEY HAD, THE CORPS OF ENGINEERS ENDED UP HAVING TO GLOW BELOW THE LEVEE AT BIRD’S POINT, PART OF THE CORPS OF ENGINEERS MISSISSIPPI RIVER AND TRIBUTARY SYSTEM.
247
00:08:09,000 –>00:08:08,999
BY THE WAY, WE NEED TO THANK THE CORPS OF ENGINEERS AND PRAISE THEM FOR THE ENGINEERING THEY’VE DONE ON THIS RIVER. I KNOW THERE’S BEEN A FEW PROBLEMS HERE AND THERE OVER THE YEARS, SOME OBVIOUSLY HAPPENED IN KATRINA, BUT OVERALL THE CORPS OF ENGINEERS, THEY DESIGN THINGS THAT WORK. AND CERTAINLY WHEN YOU LOOK AT LAST YEAR, THE 2011 FLOOD OF LAST YEAR, IN THE MISSISSIPPI RIVER YOU KNOW, LONG — ONE OF THE LONGEST IN THE WORLD, CERTAINLY THE LONGEST IN NORTH AMERICA, THERE WAS MORE WATER FLOW THROUGH THE GAUGING STATIONS ALONG THE MISSISSIPPI RIVER FROM CAIRO, ILLINOIS TO NATCHEZ, MISSISSIPPI THAN ANY FLOOD IN RECORDED HISTORY. THE FLOW AT CAIRO, ILLINOIS, THE CONFLUENCE OF THE MISSISSIPPI AND OHIO, WAS OVER TWO MILLION CUBIC FEET PER SECOND. TWO MILLION CUBIC FEET A SECOND WAS RUNNING THROUGH THE MISSISSIPPI RIVER RIGHT THERE. HELENA, ARKANSAS, IT WAS RUNNING AT 2.3 MILLION CUBIC FEET A SECOND. NOW, AT SOME LOCATIONS THE CORPS OF ENGINEERS IS IN THE PROCESS OF DETERMINING THIS, THEY’RE NOT READY TO SAY IT YET BUT ON SOME LOCATIONS UP AND DOWN THE MISSISSIPPI RIVER SYSTEM, THEY ARE CONSIDERING WHETHER THIS ACTUALLY WAS NOT A 100 YEAR FLOOD OR 250 FLOOD, THIS WAS ACTUALLY A 500-YEAR FLOOD, THE LARGEST FLOOD IN HISTORY. AND ALL THIS, ALL OF THIS MISSISSIPPI RIVER MR & T, MISSISSIPPI RIVER AND TRIB BEAUT TAXPAYER SYSTEM COST THE — $32 BILLION. BUT JUST IN THE FLOOD LAST YEAR, IT SAVED TAXPAYERS $110 BILLION IN DAMAGES.
300
00:09:59,000 –>00:09:58,999
INVESTMENT. THAT’S A GREAT RETURN ON WE NEED TO HONOR THAT RETURN ON INVESTMENT. WE NEED TO NOT CHARGE PEOPLE AN ADDITIONAL FLOOD INSURANCE FOR AREAS THAT DON’T FLOOD. THEY JUST MAYBE HAD THE 500-YEAR FLOOD UP AND DOWN THE MISSISSIPPI, OR AT LEAST IN CERTAIN PARTS OF IT, AND THERE WAS NOT ONE ACRE OF GROUND THAT WENT UNDERWATER. IT WAS A NEW FLOOD OF RECORD. 10 MILLION ACRES OF LAND WERE PROTECTED.
316
00:10:27,000 –>00:10:26,999
A MILLION STRUCTURES WERE PROTECTED. AND, AGAIN, IT PREVENTED $110 BILLION OF PROPERTY DAMAGE. THERE WERE NO LIVES LOST, NOT ONE ACRE WAS FLOODED, AND THE SYSTEM WORKED EXACTLY ACCORDING TO PLAN. SO NOW THIS BILL COMES IN AND SAYS, WELL, EVEN THOUGH WE JUST HAD, YOU KNOW, THE 250-YEAR OR THE 500-YEAR FLOOD, STILL WE WANT TO MAKE ALL THESE PEOPLE UP AND DOWN THE MISSISSIPPI IN ALL THESE COUNTIES, WE WANT TO MAKE THEM — NOT ALL THE PEOPLE BUT IN CERTAIN PARTS OF THESE COUNTIES, DEPENDING ON WHAT THE FLOOD MAPS SAY, WE WANT TO THEM TO PAY FLOOD INSURANCE WHEN IT’S NEVER GOING TO FLOOD THERE. SO I WANT THE — MY COLLEAGUES TO KNOW THAT THIS PROVISION, SECTION 107, IN THE SENATE BILL IS NOT IN THE HOUSE BILL. IT’S NOT IN THE HOUSE BILL. SO I THINK THE REASON IT’S NOT — I CAN’T SPEAK FOR THE HOUSE, OF COURSE — BUT I THINK THE REASON IT’S NOT IS FOR THE REASONS I’M SAYING RIGHT HERE. WE KNOW THAT IT’S NOT GOING TO FLOOD IN THESE AREAS. THIS IS THE CORPS OF ENGINEER FLOOD. THIS IS THE BEST LEVEE SYSTEM IN THE WORLD AND IT’S KEEPING THESE FOLKS SAFE AND DRY WHEN THE FLOODS COME. NOW, ALSO, I WANTED TO SAY THAT THE HOUSE DOES NOT HAVE SECTION
358
00:11:42,000 –>00:11:41,999
107 MANY THEIR BILL, IT NEVER DID. ALSO, THERE WAS A HOUSE AMENDMENT OFFERED BY CONGRESSMAN
362
00:11:49,000 –>00:11:48,999
CARDOZA WHO TOOK OUT A REQUIREMENT TO SHOW THAT THESE AREAS BE ON THEIR MAPS, AND THAT VOTE PASSED 261-163. AGAIN, NOT ONLY CAN WE GET CONSISTENT WITH THE HOUSE BECAUSE WE CAN GET RID OF 107, BUT WE CAN ALSO GET RID OF OTHER SPECIFIC PARTS OF THIS LEGISLATION THAT WILL BE MORE CONSISTENT WITH THE HOUSE. ANOTHER THING I WANT TO TALK ABOUT WITH REGARD TO THIS BILL — OH, BY THE WAY, ONE MORE THING, MR. PRESIDENT, BEFORE I
377
00:12:16,000 –>00:12:15,999
GO COMPLETELY AWAY FROM THIS MAP. HERE’S A MAP OF THE MISSISSIPPI RIVER, THE AREA THAT I’M TALKING ABOUT, AND YOU SEE THE STATES OF LOUISIANA, MISSISSIPPI, ARKANSAS, TENNESSEE AND MISSOURI AND A LITTLE BIT OF KENTUCKY AND ILLINOIS IN THERE AS WELL. BUT THIS RIGHT HERE, THIS LARGE, BLUE AREA IS WHAT THEY CALL THE HISTORIC FLOODPLAIN. SO BEFORE MAN CAME, BEFORE PEOPLE STARTED BUILDING LEVEES, BEFORE THEY STARTED DRAINING SWAMPS AND TRYING TO MANAGE THE
393
00:12:46,000 –>00:12:45,999
LAND, THIS IS THE AREA THAT WOULD FLOOD. ONE THING THAT’S IMPORTANT TO KNOW ABOUT THIS IS A LOT OF THIS AREA IN THIS LIGHT BLUE IS SOME OF THE RICHEST FARMLAND IN THE WORLD. AND THE REASON IT’S SO RICH IS BECAUSE FOR CENTURIES OR EONS OR YOU HOWEVER LONG IT WAS, THIS RIVER WOULD FLOOD PERIODICALLY AND PUT THIS VERY, VERY RICH SOIL OUT THERE. THAT’S ONE REASON WHY IN THIS PART OF THE COUNTRY, YOU CAN GROW ALMOST ANYTHING. THAT SOIL IS GREAT. IT’S A HUGE INDUSTRY FOR THIS AREA THAT WE KEEP IT GOING AND IT’S ALSO CRITICALLY IMPORTANT FOR U.S. TRADE AND THE U.S. ECONOMY THAT WE HAVE A — THIS IS THE BREADBASKET, SO TO SPEAK, OF THE U.S. RIGHT HERE — THAT WE HAVE THAT AREA GROWING FOOD AND FIBER FOR EVERYONE.
419
00:13:28,000 –>00:13:27,999
GOING. IT’S CRITICAL THAT WE KEEP THAT NOW, ONCE THE CORPS OF ENGINEERS GETS HOLD OF THE MISSISSIPPI RIVER, THIS IS WHAT IT LOOKS LIKE NOW WHEN IT FLOODS. THIS IS NOW THE FLOODPLAIN. AND SO IF YOU GO BACK TO LAST YEAR WHEN IT FLOODED SO BAD, THIS IS WHAT IT LOOKED LIKE, WITH ONE EXCEPTION. THEY BLEW OUT THIS ONE LITTLE AREA IN BIRD’S POINT UP HERE SOMEWHERE TO GIVE A LITTLE BIT OF RELIEF. AND, AGAIN, THAT WAS BY DESIGN AND THAT WORKED. SO THE — THE FIRST PROBLEM I HAVE WITH THE BILL IS SECTION 107. IS JUST THE GENERAL EXPANSION OF WHAT THIS BILL DOES TO THE NATIONAL FLOOD INSURANCE PROGRAM. ONE OF THE THINGS THAT’S BURIED IN THE BILL THAT A LOT OF PEOPLE MAY NOT SEE IS IN SECTION 118. SECTION 118 TALKS ABOUT HOW THE ADMINISTRATOR NEEDS TO ESTABLISH AN ONGOING PROGRAM UNDER WHICH THEY REVIEW AND UPDATE AND MAINTAIN NATIONAL FLOOD INSURANCE PROGRAM RATE MAPS IN ACCORDANCE WITH THIS SECTION, ET CETERA, ET CETERA. AND THEN IT GOES DOWN THEIR CRITERIA OF WHAT THEY NEED TO LOOK AT. ONE IS, ALL POPULATED AREAS IN AREAS OF POSSIBLE POPULATION GROWTH LOCATED IN, NOT THE 100-YEAR FLOODPLAIN — NOT THE 100 YEAR, BECAUSE THAT’S WHAT THE CURRENT LAW IS, 100-YEAR FLOODPLAIN — NOPE. WHAT THIS BILL SAYS IS THE 500-YEAR FLOODPLAIN. 5900-YEAR FLOODPLAIN. WE DON’T HAVE A MAP OF THAT BECAUSE THE CORPS OF ENGINEERS HAS NOT FINISHED MAPPING AND FEMA HASN’T ACCEPTED ALL THOSE MAPS YET. WE DON’T KNOW EXACTLY WHAT IT’S GOING TO LOOK LIKE. BUT I’M GOING TO TELL YOU, IT’S
475
00:15:01,000 –>00:15:00,999
GOING TO LOOK SOMETHING LIKE THIS RIGHT HERE. AND I DON’T KNOW EXACTLY, BUT YOU CAN BET YOUR BOTTOM DOLLAR THAT A LOT OF PEOPLE IN THESE AREAS, THIS LIGHT BLUE AREA, ARE GOING TO HAVE TO PAY FLOOD INSURANCE. AND BASED ON THE FLOOD WE JUST HAD LAST YEAR, THEY ARE NEVER GOING TO GET FLOODED. NOT IN A HUNDRED YEARS, NOT IN
487
00:15:17,000 –>00:15:16,999
500 YEARS, THEY WILL NEVER GET FLOODED.
489
00:15:21,000 –>00:15:20,999
BUT THIS LAW REQUIRES THAT THEY PURCHASE FLOOD INSURANCE.
491
00:15:26,000 –>00:15:25,999
PROGRAM. THIS IS A HUGE EXPANSION OF THE AND IT HAS A BIG IMPACT NOT JUST ON HOMEOWNERS — THAT’S OBVIOUSLY VERY IMPORTANT. YOU’RE NOT GOING TO BE ABLE TO GET A MORTGAGE IF YOU’RE IN A FLOODPLAIN. YOU KNOW, WHEN IT SAYS — WHEN THIS LAW SAYS IN — IN ITS — LET ME PULL THE SECTION RIGHT HERE, MR. PRESIDENT. WHEN THIS LAW SAYS IN ITS — IN THE COMMITTEE REPORT THAT “NOTICE WILL BE PROVIDED TO OWNERS IN THE 500-YEAR FLOODPLAIN TO INFORM THEM OF THEIR FLOOD RISKS WHICH MAY LEAD TO MORE OWNERS PROTECTING THEIR
510
00:16:06,000 –>00:16:05,999
” — PROPERTY THROUGH FLOOD INSURANCE THE SENATOR HAS USED HIS 15 MINUTES. MR. PRESIDENT ARE I WOULD ASK THAT I WOULD HAVE FIVE MORE MINUTES TO WRAP UP.
517
00:16:17,000 –>00:16:16,999
WITHOUT OBJECTION.
519
00:16:18,000 –>00:16:17,999
THANK YOU, MR. PRESIDENT. SO, MR. PRESIDENT, THE — WHAT THIS SAYS IN THE COMMITTEE LANGUAGE — IN THE COMMITTEE REPORT, IT SAYS THAT THE 500-YEAR FLOOD NOTATION SHOULD BE SENT OUT TO EVERYONE SO EVERYONE KNOWS THAT THIS
528
00:16:37,000 –>00:16:36,999
FLOODPLAIN. PROPERTY IS IN A 500-YEAR THE PROBLEM THERE IS FOLKS ARE NOT GOING TO BE ABLE TO GET MORTGAGE INSURANCE, THEY’RE NOT GOING TO BE ABLE TO — TO DO REAL ESTATE DEVELOPMENT, COMMERCIAL REAL ESTATE IS GOING TO HURT FROM THAT. YOU’RE NOT GOING TO BE ABLE TO HAVE ECONOMIC DEVELOPMENT PROJECTS IN THESE AREAS BECAUSE OF THE FLOODPLAIN NOTATION. ALSO, ON PAGE 8 OF THE COMMITTEE REPORT, IT TALKS ABOUT HOW THIS IS GOING TO — THEY’RE GOING TO SPEND ABOUT $400 MILLION ANNUALLY IN DOING THIS MAPPING. WELL, IF YOU’RE GOING TO MAP OUT TO THE 500-YEAR FLOODPLAIN, THAT’S A HECK OF A LOT MORE MAPPING THAN JUST THE 100-YEAR FLOODPLAIN. SO YOU CAN SAVE QUITE A BIT OF MONEY BY DOING THAT. MR. PRESIDENT, THE BOTTOM LINE IS THESE LEVEES ARE DESIGNED CORRECTLY, THEY’RE BUILT CORRECTLY, THEY’RE MAINTAINED CORRECTLY, AND THEY’RE CERTIFIED THAT THEY’RE SAFE. AND SO WHAT’S THE POINT OF HAVING PEOPLE COME AND DO MORE FLOOD INSURANCE IN THAT AREA WHEN IT’S NOT REQUIRED RIGHT NOW? MR. PRESIDENT, MY LAST POINT IS THIS. I ALSO THINK THIS LEGISLATION REQUIRES A HUGE CONFLICT OF INTEREST FOR FEMA. IT’S NOT FEMA’S FAULT. THEY’RE NOT ASKING FOR THIS. IT’S WHAT THE CONGRESS IS TRYING TO DO. BASICALLY UNDER THIS LAW, FEMA WOULD WRITE THE REGS, THEY’D DRAW THE LINES, THEY WILL CONTROL THE TIMING, THEY’D SET THE STANDARDS, THEY’D UPDATE THE MAPS, THEY’D MAINTAIN THE MAPS. IF THERE’S AN APPEAL, YOU’D HAVE GO TO FEMA. THEY SET THE RATES. THEY COLLECT THE MONEY. THEY SPEND THE MONEY. EVERYTHING IS DONE BY FEMA. OBVIOUSLY, FEMA IS GOING TO HAVE AN INTEREST TO MAKE SURE THIS PROGRAM IS ADEQUATELY FUNDED AND SOLVENT AND THEY SHOULD, BUT THEY HAVE CONTROL OF EVERY ASPECT OF THIS WITH NO CHECKS AND BALANCES IN THIS SYSTEM. AND THEY’RE GOING TO BE, AGAIN, MILLIONS AND MILLIONS OF PEOPLE WHO ARE GOING TO PAY IN TO MAKE THIS SOLVENT, I GUESS, BUT THAT WILL NEVER NEED FLOOD INSURANCE. SO, MR. PRESIDENT, WITH THAT, I’D JUST LIKE TO SAY THAT I WOULD HOPE MY COLLEAGUES WHO HAVE — WHO HAVE COUNTIES IN THESE STATES HERE, THAT REPRESENT THESE STATES, WHEN THEY LOOK AT SECTION 107, THEY WILL SEE WHAT I SEE AND WE COULD ALL WORK TOGETHER TO EITHER TAKE OUT SECTION 107 COMPLETELY OR AT LEAST GET THE 30-DAY EXTENSION WHERE WE COULD HAVE TIME TO TAKE IT OUT IN THE NEXT FEW DAYS. WITH THAT, MR. PRESIDENT, I
611
00:18:58,000 –>00:18:57,999
FLOOR. [INAUDIBLE] I ASK UNANIMOUS CONSENT THAT THE MAJORITY LEADER BE RECOGNIZED AT 4:00 P.M.
616
00:19:04,000 –>00:19:03,999
WITHOUT OBJECTION. THANK YOU, MR. PRESIDENT. MR. PRESIDENT? THE SENATOR FROM UTAH. MR. PRESIDENT, I ASK
624
00:19:16,000 –>00:19:15,999
REMARKS BE PLACED AT AN UNANIMOUS CONSENT THAT MY APPROPRIATE PLACE IN THE RECORD AND THAT I BE PERMITTED TO FINISH MY REMARKS.
629
00:19:21,000 –>00:19:20,999
WITHOUT OBJECTION. MR. PRESIDENT, WE FIND OURSELVES IN THE MIDST OF A PRESIDENTIAL ELECTION. IN YEARS PAST, ITS MIGHT HAVE
635
00:19:27,000 –>00:19:26,999
BEEN EXPECTED THAT DURING A PRESIDENTIAL ELECTION, POLITICS WOULD TAKE PRECEDENT OVER FALLACY. THAT WAS NOT RIGHT THEN BUT IT IS CERTAINLY NOT RIGHT NOW. OUR NATION FACES SERIOUS PROBLEMS, IMMEDIATE PROBLEMS, AND WE CANNOT WAIT TO TACKLE THEM UNTIL AFTER THE ELECTION. WE ARE OVER $15.7 TRILLION IN DEBT AND BEFORE THE END OF THIS YEAR WILL BE OVER, $16 TRILLION. WE HAVE A TAX CODE THAT IS UNMANAGEABLE AND A BURDEN ON CONSCIENTIOUS TAXPAYERS. AND IF THE PRESIDENT AND CONGRESS FAIL TO ACT, WE HAVE A TAX INCREASE COMING NEXT YEAR THAT WILL DWARF ANY IN OUR HISTORY. WE CANNOT AFFORD TO WAIT ANOTHER SEVEN MONTHS TO GET OUR FISCAL HOUSE IN ORDER AND WE NEED TO ACT NOW. PRESIDENT OBAMA AT LEAST CLAIMS TO UNDERSTAND THAT WE CANNOT WAIT TO ADDRESS THIS FISCAL CRISIS. HE REMARKED RECENTLY THAT THE FACT THAT THIS IS AN ELECTION YEAR IS NOT AN EXCUSE FOR INACTION. NOW, UNFORTUNATELY, OTHER THAN TALK, THE PRESIDENT AND HIS LIBERAL ALLIES HAVE DONE NOTHING TO ADDRESS EITHER OUR RISING DEBT OR THE FISCAL CLIFF THAT WE ARE QUICKLY APPROACHING, BOTH OF WHICH ARE SIGNIFICANTLY
675
00:20:32,000 –>00:20:31,999
AND JOB GROWTH. HINDERING OUR ECONOMIC RECOVERY LAST WEEK, PRESIDENT OBAMA’S BUDGET RECEIVED ZERO VOTES IN THE UNITED STATES SENATE. FOR THE SECOND YEAR IN A ROW, EVERY REPUBLICAN AND EVERY DEMOCRAT WHO VOTED ON THE PRESIDENT’S BUDGET VOTED AGAINST IT. AND REMARKABLY, NOT ONE DEMOCRAT VOTED FOR THE SERIOUS REPUBLICAN BUDGETS OFFERED BY MY FRIEND, CHAIRMAN PAUL RYAN, AND MY FRIENDS AND COLLEAGUES, SENATOR TOOMEY, PAUL, AND LEE. WHILE HE TALKS A BIG GAME, PRESIDENT OBAMA HAS SHOWN LITTLE INTEREST IN LIGHTING A MEANINGFUL PATH TOWARDS BALANCING THE BUDGET. REFORMING THE TAX CODE, AND REDUCING THE TAX BURDEN ON WORKING FAMILIES AND SMALL BUSINESSES. INSTEAD, PRESIDENT OBAMA SEEMS TO HAVE A SINGLE-MINDED FOCUS ON HIS REELECTION. BUT WHILE HE ATTEMPTS TO SCARE UP VOTES IN SWING STATES, AMERICANS ACROSS THE COUNTRY ARE SUFFERING DUE TO PRESIDENT
707
00:21:29,000 –>00:21:28,999
OBAMA’S FAILED ECONOMIC POLICIES. THE PEOPLE OF UTAH AND THE PEOPLE ACROSS THE COUNTRY ARE NATURALLY GROWING RESTLESS. THEY LOOK TO EUROPE AND SEE THE CONSEQUENCES OF OUT-OF-CONTROL SPENDING AND TAXES, YET EVEN WITH THE EXAMPLE OF EUROPE, THE PRESIDENT AND HIS FRIENDS RESIST MEANINGFUL SPENDING CUTS AT EVERY TURN AND HIS LIBERAL ALLIES HAVE DONE EVERYTHING THEY CAN TO MISLEAD THE PUBLIC ABOUT THE RESPONSIBLE INTENTIONS OF REPUBLICANS TO REDUCE WASTEFUL GOVERNMENT SPENDING. JUST AS CRITICAL FOR OUR ECONOMY IS THE PRESIDENT’S FAILURE TO DO ANYTHING TO ADDRESS THE TAX RELIEF THAT WILL EXPIRE AT THE END OF THIS YEAR. IF THE PRESIDENT ALLOWS CURRENT TAX RELIEF TO EXPIRE, THE RESULT WILL BE AT LEAST A $4 TRILLION INCREASE, TAX INCREASE, ON THE AMERICAN PEOPLE. YOU CAN CALL THIS A FISCAL CLIFF YOU CAN CALL IT TAX-MAGEDDON, AS OTHERS HAVE DONE. WHATEVER YOU CALL IT, IT WILL BE A DISASTER FOR THE MIDDLE CLASS AND IT WILL BE A DISASTER FOR SMALL BUSINESSES THAT WILL BE
741
00:22:30,000 –>00:22:29,999
RECOVERY. THE ENGINE OF OUR ECONOMIC NOW, ONE THING WE HEAR TIME AND TIME AGAIN FROM BUSINESSES IS THAT UNCERTAINTY HOLDS THEM BACK FROM INVESTING, EXPANDING, AND HIRING. A ROBUST RECOVERY WILL REQUIRE PERMANENT PRO–GROWTH TAX POLICY, AND GIVE — PRO-GROWTH TAX POLICY AND GIVEN THE CONTINUED JOBS RECESSION AND WEAK ECONOMIC GROWTH, WE NEED THOSE POLICIES NOW. ECONOMIC GROWTH SLOWED TO 2.2% LAST QUARTER. CONSECUTIVE MONTHS, THE UNEMPLOYMENT RATE HAS REMAINED ABOVE 8%. BUT THAT ONLY TELLS PART OF THE STORY. 12.5 MILLION AMERICANS ARE UNEMPLOYED, AND OF THOSE, MORE THAN 5.1 MILLION WORKERS HAVE BEEN LOOKING FOR WORK FOR 27 WEEKS OR MORE. 7.9 MILLION AMERICANS ARE WORKING PART-TIME FOR ECONOMIC REASONS, AND ANOTHER 2.4 MILLION HAVE ONLY A MARGINAL ATTACHMENT TO THE LABOR FORCE. CLOSE TO 2 MILLION COLLEGE GRADUATES ARE UNEMPLOYED. GROWTH SLOWED TO A TEPID 2.2% RATE IN THE FIRST QUARTER AND WE ALREADY SAW BISCUIT — BUSINESS CUTBACK AND INVESTMENT IN BUSINESSES DEDLIEND — DECLINED TO 2.1% IN THE QUARTER. AND YET PRESIDENT OBAMA AND HIS FRIENDS CONTINUE TO SIT ON THE SIDELINE AS TAX-MAGEDDON APPROACHES AND THREATENS EVEN GREATER HARM TO OUR ECONOMY. THE COMING TAX INCREASES WILL BE , WITHOUT ANY EXAGGERATION, INCREASES IN AMERICAN HISTORY. AND THE POSSIBILITY OF THESE TAX INCREASES IS CREATING ENORMOUS UNCERTAINTY. THE SO-CALLED BUSINESS TAX
793
00:24:11,000 –>00:24:10,999
2011. EXTENDERS EXPIRED AT THE END OF WILL THERE BE AN R&D TACK CREDIT IN 2012? — TAX CREDIT IN 2012 IN WILL THERE BE AN EXEMPTION FROM
799
00:24:24,000 –>00:24:23,999
2011? SUB-PART F FOR INCOME AFTER FAMILY AND BUSINESSES DO NOT KNOW IF THE 2001 AND 2003 TAX
803
00:24:30,000 –>00:24:29,999
2012. RELIEF WILL BE EXTENDED BEYOND THAT CREATES TREMENDOUS UNCERTAINTY FOR ANYONE PLANNING ON BUYING A HOME, SAVING FOR COLLEGE, INVESTING IN A NEW BUSINESS OR HIRING A NEW WORKER. WILL PASSTHROUGH ORGANIZATIONS BE TAXED AT 35% OR 39.6%? WILL DIVIDENDS BE TAXED AT 15% OR WILL DIVIDENDS BE TAXED AT 39.6%, AS PRESIDENT OBAMA HAS PROPOSED? WILL THERE BE A DEATH TAX THAT HITS FAMILY BUSINESSES AND FARMS WITH A MAXIMUM RATE OF 55% OR OF 35% OR OF SOMETHING ELSE? AND WHAT WILL HAPPEN TO THE ALTERNATIVE MINIMUM TAX? WILL IT BE PATCHED? WILL IT BE REFORMED? WILL IT BE REPEALED? WILL IT JUST BE REPLACED WITH HIGHER TAXES SOMEWHERE ELSE? THE PRESIDENT AND THE SENATE DEMOCRATIC LEADERSHIP HAVE SHOWN NO WILLING MISTO ANSWER THESE QUESTIONS AND PROVIDE THE CERTAINTY THAT OUR ECONOMY CRAVES. THE ADVERSE IMPACT OF THESE TAX
834
00:25:31,000 –>00:25:30,999
INCREASES ON ECONOMIC GROWTH IS UNQUESTIONED. BUT DON’T TAKE MY WORD FOR IT. IT’S BEEN REPORTED BY FEDERAL RESERVE CHAIRMAN BEN BERNANKE — IT HAS BEEN REPORTED THAT FEDERAL RESERVE CHAIRMAN BEN BERNANKE RECENTLY DISCUSSED WITH SENATE DEMOCRATS THE SIGNIFICANCE OF TAXMAGEDDON. CHAIRMAN BERNANKE WARNED THAT MONETARY POLICY WOULD NOT BE CAPABLE OF OFFSETTING THE DECLINE IN ECONOMIC GROWTH. JUST LAST MONTH THE THE FED’S POLICY-SETTING COMMITTEE REPEATEDLY WARNED IN MINUTES OF THEIR MEETING THAT FISCAL UNCERTAINTY HAS NEGATIVE EFFECTS ON CONSUMER AND BUSINESS SENTIMENT, ON BUSINESS CAPITAL YOU EXPENDITURES AND ON HIRING. THE FORMER DIRECTOR OF PRESIDENT OBAMA’S OFFICE OF MANAGEMENT AND BUDGET CONCLUDED THAT WHAT HE ESTIMATES TO BE $500 BILLION TAX INCREASE WOULD BE SO LARGE THAT — QUOTE — “THE ECONOMY COULD BE THROWN BACK INTO A RECESSION.” UNQUOTE. ACCORDING TO BARKLEY’S CAPITAL, THIS FISCAL CLIFF COULD REDUCE OUR G.D.P. BY 3%. AND IN ADDITION TO THOSE LOOMING TAX HIKES, BUDGET CUTS FROM THE SEQUESTER THAT FOLLOWED FROM THE ADMINISTRATION’S FAILURE TO ARRIVE AT A BUDGET ARE SET TO HIT AS WELL. ACCORDING TO THE MAGAZINE “THE ECONOMIST,” THE CONGRESSIONAL BUDGET OFFICE HAS FOUND THAT THE COMBINED EFFECTS OF THE SEQUESTER AND THE EXPIRING TAX RELIEF WOULD ADD UP TO 3.6% OF G.D.P. IN FISCAL YEAR 2013. FEDERAL RESERVE GOVERNOR DUKE HAS REPORTEDLY INDICATED THAT THE COMBINED IMPACT OF AN EXPIRING FISCAL POLICIES AT THE END OF THE YEAR COULD AMOUNT TO AROUND 4% OF THE NATION’S ECONOMY. NO ECONOMY CAN SUSTAIN SUCH A HIT WITHOUT BEING HURLED INTO A RECESSION. YET INSTEAD OF ADDRESSING THIS FISCAL CLIFF, TAX INCREASES THAT WILL HARM ALL OF AMERICA’S FAMILIES, THE PRESIDENT SEEMS CONTENT TO PURSUE MISGUIDED MICROPOLICIES THAT TARGET THE SO-CALLED RICH IN THE NAME OF SO-CALLED FAIRNESS. I WOULD LIKE TO MAKE TWO POINTS ABOUT THE PRESIDENT’S OBJECT PRESIDENT’S — THE PRESIDENT’S OBSESSION WITH OF WEALTH. FIRST, THE PERSON PEOPLE DO NOT CARE. THE AMERICAN PEOPLE DO NOT WANT
906
00:28:03,000 –>00:28:02,999
BUREAUCRATS FIGURING OUT WHO GETS WHAT. THEY DON’T WANT POLITICIANS SPREADING THE WEALTH AROUND. THEY DON’T WANT SELF-ANOINTED
911
00:28:09,000 –>00:28:08,999
ARBITERS OF HOW MUCH INCOME IS FAIR. WHAT THEY SWANTS THE OPPORTUNITY THAT COMES — WHAT THEY WANT IS THE OPPORTUNITY THAT COMES FROM ECONOMIC GROWTH. THEY DON’T WANT A HANDOUT. THEY DON’T WANT THEIR INDUSTRIES VILIFIED FOR ENGAGING IN FREE ENTERPRISE. THEY WANT A JOB. NOTHING IS MORE FAIR THAN GIVING EVERY AMERICAN THE CHANCE TO MAKE SOMETHING OF HIMSELF OR HERSELF. THAT REQUIRES WASHINGTON GETTING OUT OF THE WAY, NOT GETTING MORE INVOLVED. SECOND, THE AMERICAN PEOPLE SEEM TO UNDERSTAND THAT THE PRESIDENT’S PROMISE THAT HE WILL
932
00:28:42,000 –>00:28:41,999
BET. ONLY TAX THE RICH IS A SUCKER’S WITH HIS HEALTH CARE LAW, HE ALREADY REPEATEDLY BROKE HIS CAMPAIGN PROMISE NOT TO RAISE TAXES ON FAMILIES MAKING LESS THAN $250,000. A YEAR. THE PEOPLE IN UTAH AND OF THE REST OF THE OTHER STATES KNOW THAT THE DEMOCRATS’ THIRST FOR MOUR MORE SPENDING WILL REQUIRE MUCH MORE THAN TAXES ON THE WEALTHY. IF PRESIDENT OBAMA AND HIS DEMOCRATIC ALLIES GET THEIR WAY, ALL TAXPAYERS ARE GOING TO BE LOOKING AT BIGGER TAX BILLS. PRESIDENT CLINTON WAS HONEST ON THIS POINT RECENTLY. HE REJECTED PRESIDENT OBAMA’S POLITICALLY CONVENIENT CLAIM THAT HE WOULD ONLY TAX THE RICH AND CALL FOR ACROSS-THE-BOARD TAX INCREASES. THIS IS JUST ME, NOW.
958
00:29:30,000 –>00:29:29,999
HOUSE. I AM NOT SPEAKING FOR THE WHITE I THINK YOU COULD TAX ME AT 100%
961
00:29:34,000 –>00:29:33,999
AND YOU WOULD NOT BALANCE THE BUDGET. WE ARE ALL GOING TO HAVE TO CONTRIBUTE TO THIS, AND IF MIDDLE-CLASS PEOPLE’S WAGES ARE GOING UP AGAIN AND WE HAD SOME GROWTH TO THE ECONOMY, I DON’T THINK THEY WOULD OBJECT TO GOING
969
00:29:47,000 –>00:29:46,999
BACK TO TAX RATES FROM WHEN I WAS PRESIDENT. THERE YOU HAVE IT. TAX INCREASES ON EVERYBODY. PRESIDENT CLINTON CAN CLAIM THAT HE DOES NOT SPEAK FOR THE WHITE HOUSE, BUT THE AMERICAN PEOPLE ARE NOT FOOLED. THEY SEE WHERE THE PRESIDENT’S POLICIES ARE LEADING. OUR DEBT AND POLICIES ARE LEADING.
981
00:30:07,000 –>00:30:06,999
OUR DEBT AND DEFICITS ARE UNSUSTAINABLE. BUT THE PRESIDENT HAS SHOWN NO INCLINATION TO ADDRESS THEM THROUGH HIS SPENDING REDUCTIONS. THERE IS ONLY ONE OTHER OPTION AVAILABLE TO PRESIDENT OBAMA AND IT IS ONE THAT HE AND HIS PARTY HAVE SHOWN TO BE THEIR PREFERRED PARTY FOR DECADES: HIGHER TAXES TO PAY FOR MORE SPENDING. UTAHANS AND AMERICANS ALL ACROSS THE COUNTRY NONA THE FAIL TOUR
994
00:30:35,000 –>00:30:34,999
REAL THREAT. TO ADREF TAXMAGEDDON IS A VERY WE CANNOT PUT THIS DISCUSSION OFF ANY LONGER. IT IS TIME FOR OUR PRESIDENT TO LEAD. TO THAT END LAST WEEK I ALONG WITH 40 OF MY REPUBLICAN COLLEAGUES SENT A LETTER TO MY COLLEAGUE AND SENATOR FROM NEVADA, THE DEMOCRATIC LEADER,
1005
00:30:51,000 –>00:30:50,999
ASKING HIM TO ADDRESS THIS IN SHORT ORDER. TODAY WE RECEIVED A RESPONSE. I HAVE TO SAY THAT I’M DISAPPOINTED. THERE IS A GREAT DEAL OF POLITICAL POSTURING ABOUT EVIL MILLIONAIRES AND BIG CORPORATIONS AS WELL AS A REPEATED ATTACKS ON THE TEA PARTIES AND CITIZENS WHO SUPPORT ITS GOALS, THERE IS NO ACKNOWLEDGESMENT OF THE FISCAL CLIFF WE ARE FAST APPROACHING. THIS RESPONSE SEEMS TO CONFIRM WHAT WE ALREADY KNOW: PRESIDENT OBAMA AND HIS LIBERAL ALLIES WOULD PREFER TO PUT OFF A DISCUSSION OF THIS FISCAL CLIFF.
1024
00:31:30,000 –>00:31:29,999
TAXMAGEDDON. THEY DO NOT WANT TO ADDRESS I AM FAIRLY CERTAIN THAT THEY
1027
00:31:33,000 –>00:31:32,999
ARE PREFERENTIAL WOULD BE TO GET TO THE OTHER SIDE OF THE ELECTION AND THEN HAVE TAX HIKES SET IN NOT ONLY FOR THEIR CARICATURED EVIL CORPORATIONS AND INDIVIDUALS BUT FOR THE MIDDLE CLASS AS WELL. I’M CONFIDENT THAT THE MARKETS MARKETS AND THE AMERICAN PEOPLE ARE NOT GOING TO ALLOW THIS TO HAVMENT WE CANNOT AFFORD TO DELAY ACTION THAT WILL PREVENT TAXMAGEDDON AND STEER US AWAY FROM THE COMING FISCAL CLIFF. LIKELIHOOD OF TAXMAGEDDON AND THE UNCERTAINTY IT CREATES IS ARE AN ANCHOR AROUND OUR ECONOMY. AMERICANS YOUNG AND OACIALTIOND UNEMPLOYED AND UNDERGLOID WANT THIS ANCHOR THROWN OFF NOW. THE ECONOMY IS SLOWING. JOB GROWTHS IS LAGGING. BUSINESSES ARE CUTTING BACK INVESTMENTS. THE UNCERTAINTY CAUSED BY TAXMAGEDDON IS CONTRIBUTING TO THE LACKLUSTER ECONOMIC RECOVERY. SMERNS FAMILIES AND BUSINESSES ARE NOT GOING TO INVEST IN THE FUTURE IF THE FUTURE HOLDS A $310 BILLION TAX INCREASE NEXT YEAR ALONE VENAL THE BEST THING WE COULD DO IS TO TURN THE WHEELWAY FROM THE FISCAL CLIFF SOONER RATHER THAN LATER. MR. PRESIDENT, I ASK UNANIMOUS CONSENT THAT PAUL WILLIAMS, A DETAILEE FROM THE SENATE FINANCE COMMITTEE FROM THE FOOD AND DRUG ADMINISTRATION, JESSE BAKER, A DETAILEE TO THE SENATE COMMITTEE SECRET SERVICE, ANDREA SHELTON, FROM THE JUDICIARY COMMITTEE, AND MAUREEN McLAUGHLIN, A DETAILEE FROM THE F.C.C., ALL BE GRANTED THE PRIVILEGE OF THE FLOOR FOR THE REMAINDER OF THE SECOND SECTION OF THE 112th CONGRESS. WITHOUT OBJECTION. WITH THAT, MR. PRESIDENT, I YIELD THE FLOOR AND — I YIELD THE FLOOR. EDMR. REID: MR. PRESIDENT, I RISE TODAY IN SUPPORT OF THE FOOD AND DRUG ADMINISTRATION SAFETY INNOVATION ACT WHICH IS PENDING BEFORE THE SENATE THIS WEEK. THIS LEGISLATION WOULD GIVE THE F.D.A. THE RESOURCES TO APPROVE ADDITIONAL DRUGS AND DEVICES EVERY YEAR FOR THEIR SAFE AND EFFECTIVE YEARS. WITHOUT THIS AGREEMENT, THE F.D.A. STARTING IN OCTOBER WOULD LACK THESE RESOURCES WHICH ARE NECESSARY TO APPROVE NEW DRUGS AND DEVICES. AND THEY WOULD ALSO LACK RESOURCES TO MONTANA MONITOR THE DRUGS AND DEVICES ON THE MARKET. OUR DRUG AND DEVICE APPROVAL. I AM PLEEFS PLEASED THAT FOR THE FIRST TIME THE GENERIC PHARMACEUTICAL INDUSTRY WILL PROVIDE THE AGENCY WITH $1.5 BILLION OVER FIVE YEARS FOR FASTER PRODUCT REVIEWS. THE ESSENCE PHS LEGISLATION IS THAT THE INDUSTRY PROVIDING RESOURCES FOR THE MONITORING AND APPROVAL OF THE DRUGS. GETTING GENERIC DRUGS ONTO THE MARKET SOONER WILL HELP LOWER COSTS FOR INDIVIDUALS AND FAMILIES AS WELL AS FOR THE FEDERAL AND STATE GOVERNMENTS. THIS MEASURE WOULD ALSO SIGNIFICANTLY IMPROVE F.D.A.’S REGULATORY AUTHORITY INCLUDING ITS ABILITY TO HELP PREVENT DRUG SHORTAGES AND TO HELP DEVELOP NEW MEDICATIONS TO TREAT LIFE-THREATENING DISEASES THAT
1126
00:34:47,000 –>00:34:46,999
ANTIBIOTICS. ARE BECOMING RESISTANT TO THIS IS VERY IMPORTANT. I WOULD LIKE TO RECOGNIZE ESPECIALLY CHAIRMAN HARKIN ADS AND SENATOR ENZI FOR THEIR VERY THOUGHTFUL, DELIBERATIVE, AND EXTREMELY IMPORTANT WORK. THEY HAVE REPRESENTED THROUGH THEIR COMMITTEE WORK THE MODEL OF WHAT WE SHOULD BE DOING HERE COLLABORATIVELY AND ON A BIPARTISAN BASIS TO ADVANCE IMPORTANT MEASURES FOR THE AMERICAN PEOPLE. THEY DESERVE GREAT — BOTH OF THEM — GREAT ACCOLADES FOR THEIR WORK TODAY. I HOPE WE CAN FOLLOW THROUGH AND BRING THEIR WORK TO CONCLUSION. I WANT TO PARTICULARLY THANK BOTH OF THEM, CHAIRMAN HARKIN AND SENATOR ENZI, FOR INCLUDING PROVISIONS PERTAINING TO PEDIATRIC DEVICES AND DRUGS. I OFFERED WITH SENATOR ALEXANDER AND SENATOR MURRAY AND SENATOR ROBERTS. AGAIN, ANOTHER BIPARTISAN EFFORT TO HELP IMPROVE THE HEALTH OF CHILDREN THROUGHOUT THIS COUNTRY. UNTIL 1997, AND THAT’S JUST 15 YEARS AGO, 87% OF CHILDREN WERE USED BY CHILDREN. DOCTORS WERE TREATING CHILDREN WITHOUT UNDERSTANDING THE APPROPRIATE DOSAGE REQUIREMENTS FOR THE POTENTIAL FOR DANGEROUS SIDE EFFECTS. MANY FAMILIES. THOSE SENTIMENTS WERE LARGELY IGNORED BY THE INDUSTRY UNTIL CONGRESS STEPPED IN. WITH THE PASSAGE OF THE BEST PHARMACEUTICALS FOR CHILDREN ACT IN 1997, AND THE PEDIATRIC RESEARCH EQUITY ACT OF 2003, 427 DRUGS HAVE BEEN RELABELED WITH IMPORTANT PEDIATRIC INFORMATION. NOW, JUST 46% RATHER THAN 80% OF DRUGS ARE BEING USED OFF-LABEL IN CHILDREN. BUT THAT NUMBER IS STILL TOO HIGH. THE LEGISLATION BEFORE THE SENATE MAKES CRITICAL IMPROVEMENTS TO THESE LAWS SO WE CAN FURTHER LOWER THIS PERCENTAGE. IT WOULD MAKE THESE TWO ACTS ACTS PERMANENT, JUST LIKE THE LAWS THAT GOVERN THE APPROVAL OF DRUGS FOR OUR USE. IT WOULD ALSO PROVIDE THE CERTAINTY THAT PHARMACEUTICAL COMPANIES BELIEVE IS NECESSARY TO WISELY INVEST IN THE
1194
00:36:55,000 –>00:36:54,999
APPROPRIATE USE OF DRUGS AND CHILDREN. THE LEGISLATION WILL ALSO HELP ENSURE PEDIATRIC STUDIES ARE PLANNED EARLIER IN THE DEVELOPMENT PROCESS AND COMPLETED SOONER. CURRENTLY, A DISAPPOINTING 78% OF STUDIES THAT WERE SCHEDULED TO BE COMPLETED BY 2007 — SEPTEMBER OF 2007 — ARE EITHER LATE OR WERE SUBMITTED LATE WHILE CONGRESS, THE F.D.A., ADVOCATES IN INDUSTRY AGREE THAT A PEDIATRIC STUDY SHOULD NOT HOLD UP THE APPROVAL OF DRUG USE IN ADULTS, DRUG COMPANIES SHOULD NOT BE ALLOWED TO GET AWAY WITH UNREALISTIC PLANS FOR THE F.D.A. FOR APPROVAL OR FAILURE TO COMPLETE THE STUDIES AFTER THE DRUGS ARE BROUGHT TO MANCHET I NOTE THAT THE MAJORITY LEADER HAS APPEARED ON THE FLOOR. I BELIEVE HE HAS A PROCEDURAL MOTION. IF MY FRIEND WOULD COMPLETE HIS REMARKS.
1222
00:37:48,000 –>00:37:47,999
I WOULD BE HAPPY TO. —
1224
00:37:52,000 –>00:37:51,999
I ASK UNANIMOUS I WOULD BE HAPPY TO. CONSENT THAT FOLLOWING THE STATEMENT OF MY FRIEND, THE SENATOR FROM RHODE ISLAND, AND IMMEDIATELY UPON HIS FINISHING OF HIS REMARKS, THERE BE A — HE WILL INITIATIVE A QUORUM CALL
1232
00:38:09,000 –>00:38:08,999
AGED BE RECOGNIZED AT SUCH TIME U. WITHOUT OBJECTION. SO I SEE PEOPLE SHAKING THEIR HEADS. SENATOR REED IS GOING TO TALK,
1239
00:38:21,000 –>00:38:20,999
CALL. HE IS GOING TO GO INTO QUORUM AND WHEN WE COME OUT OF THAT I AM RECOGNIZED. I ASK CONSENT. ANY PROBLEM WITH THAT, ANYBODY?
1245
00:39:39,000 –>00:39:38,999
WITHOUT OBJECTION. THE SENATOR FROM RHODE ISLAND. THANK YOU, MR. PRESIDENT. I WANT TO CONTINUE MY REMARKS ON THE IMPORTANT TOPIC OF THE PEDIATRIC PROVISIONS OF THE F.D.A. LEGISLATION THAT IS BEFORE US, AND I WOULD SIMPLY CONTINUE BY SAYING THAT THE LEGISLATION THAT IS BEFORE US WOULD REQUIRE PHARMACEUTICAL COMPANIES TO WORK WITH THE F.D.A. EARLY IN THE PROCESS OF DEVELOPING THESE DRUGS TO CREATE A REASONABLE AND ESSENTIALABLE PLAN FOR STUDYING THE PRODUCT. IT WOULD ALSO FOR THE FIRST TIME PROVIDE F.D.A. WITH AN ENFORCEMENT TOOL THAT WILL DETER
1266
00:40:14,000 –>00:40:13,999
COMPANIES FROM NEGLECTING THEIR OBLIGATION TO COMPLETE THESE STUDIES ON TIME. OUR B — OUR BILL RESPONDS TO THE NEEDS OF THE DEVELOPMENT OF PEDIATRIC MEDICAL DEVICES. NOT JUST PHARMACEUTICALS BUT DEVICES IN CHILDREN, WHICH CAN LAG FIVE TO TEN YEARS BEHIND THOSE MANUFACTURERS FOR ADULTS. THE PEDIATRIC PROFIT ALLOWANCE FOR HUMAN TARRY USE HAS PROVEN TO BE EFFECTIVE. THREE NEW DEVICES HAVE BEEN APPROVED FOR USE IN CHILDREN IN THE LAST THREE YEARS. THIS IS AN INCREDIBLE INCREASE AS A RESULT OF THIS INCENTIVE. THIS POLICY HAS SHOWN MUCH PROMISE, AND I’M PLEASED CONTINUING THIS BILL ALONG WITH THE PEDIATRIC DEVICE CONSORTIA GRANT PROGRAM WHICH ASSISTED IN THE DEVELOPMENT OF 155 PROPOSED PEDIATRIC MEDICAL DEVICES IN THE LAST TWO YEARS. THE FOOD AND DRUG ADMINISTRATION SAFETY INNOVATION ACT WOULD ALSO EXTEND THIS HUMANITARIAN USE DEVICE INCENTIVE TO MANUFACTURE DEVICE AND USE FOR ADULTS WITH RARE CONDITIONS. WHILE IT IS MY HOPE THIS POLICY IS EQUALLY EFFECTIVE IN SPURRING DEVICES FOR USE IN ADULTS AS IT IS FOR CHILDREN, I’M CONCERNED IT COULD IMPACT THE DEVELOPMENT AND MARKETING OF DEVICES FOR USE IN CHILDREN. I PLAN TO MONITOR THIS POLICY CLOSELY SHOULD IT BECOME LAW, BUT I HAVE FULL EXPECTATION THAT
1309
00:41:32,000 –>00:41:31,999
ACHIEVED. BOTH NOBLE OBJECTIVES CAN BE THERE ARE SOME CHILDREN, HOWEVER, WHO DO NOT RECEIVE THE FULL BENEFITS OF THE BPCA AND THE PRIA ACT. I’M PLEASED THE SENATE BILL ADDRESSES THIS PROBLEM FOR PEDIATRIC CANCER PATIENTS AND
1318
00:41:48,000 –>00:41:47,999
CHILDREN WITH OTHER RARE DISEASES. IT CALLS ON THE F.D.A. TO HOLD A PUBLIC MEETING TO DISCUSS WAYS TO ENCOURAGE THE DEVELOPMENT OF
1323
00:41:54,000 –>00:41:53,999
NEW TREATMENTS FOR THIS POPULATION. INDEED FOR SOME PEDIATRIC CANCERS, THE TREATMENT HASN’T CHANGED IN MANY DECADES. FOR OTHER RARE DISEASES, AN EFFECTIVE TREATMENT HAS YET TO BE FOUND. I LOOK FORWARD TO RECEIVING THE RECOMMENDATIONS THAT MIGHT STEM FROM THIS IMPORTANT MEETING AS WELL AS WORKING WITH MY COLLEAGUES TO RESPOND TO THEIR NEEDS WITH REASONABLE AND SENSIBLE POLICIES. I AM TRAOEPBLGSLY PLEASED THAT — I AM PLEASED THESE PEDIATRIC PROVISIONS HAVE DRAWN THE SUPPORT OF MANY ORGANIZATIONS, 24 INCLUDING THE AMERICAN ACADEMY OF PEDIATRICS AND ALSO INCLUDING THE PHARMACEUTICAL RESEARCHERS AND MANUFACTURERS OF AMERICA. THIS STAKEHOLDER SUPPORTED IS VERY IMPORTANT NOT ONLY FOR THE PASSAGE OF THE LEGISLATION BUT FOR EFFECTIVE IMPLEMENTATION. THERE IS ANOTHER PROVISION I’D LIKE TO TALK ABOUT, AND THIS BILL CONTAINS A PROVISION WHICH WILL REQUIRE THE F.D.A. TO DECIDE WHETHER OR NOT TO UPDATE THE LABELING REQUIREMENTS FOR TANNING BEDS. AND I WOULD PROPOSE THIS AMENDMENT ALSO. EVERY DAY TOO MANY AMERICANS TANNING SALON. 70% OF THESE ARE YOUNG WOMEN AND WOMEN OF ALL AGES. ACCORDING TO THE WORLD HEALTH ORGANIZATION, THE RISK OF DEADLY MELANOMA INCREASES BY 75% WHEN THE USE OF TANNING DEVICES BEGINS BEFORE THE AGE OF 30. THERE IS A PARTICULAR CONCERN WITH YOUNGER WOMEN BEGINNING TO USE AND YOUNGER MEN BEGINNING TO USE THESE TANNING DEVICES. YET THE WARNING LABELS ON TANNING BEDS HAVE NOT BEEN UPDATED IN OVER THREE DECADES
1376
00:43:28,000 –>00:43:27,999
AND ARE OFTEN PLACED FAR FROM VIEW. IN 2007 MY COLLEAGUE, SENATOR ISAKSON OF GEORGIA, JOINED ME IN REQUIRING THE F.D.A. TO STUDY THE LABELING STANDARDS FOR TANNING BEDS AND MAKE RECOMMENDATIONS BUT HOW THESE STANDARDS COULD BE IMPROVED. IN ITS REPORT THE F.D.A. FOUND TANNING BED LEVELS COULD BE CLARIFIED AND LOCATE TPHAD MORE — LOCATED IN A MORE PROMINENT LOCATION BUT THE AGENCY HAS YET TO ACT. IT IS MY HOPE THE F.D.A. WILL HEED ITS OWN REQUIREMENT AND UPDATE LABELING REQUIREMENTS FOR TANNING BEDS. SIMILAR, SUN SCREEN TESTING AND LABELING STANDARDS HAVE ALSO
1397
00:44:06,000 –>00:44:05,999
BEEN OVER THREE DECADES IN THE MAKING. THREE DECADES. LAST YEAR I WAS PLEASED WHEN THE F.D.A. FINALLY TOOK ACTION. HOWEVER, JUST LAST WEEK THE AGENCY ANNOUNCED THAT IT WOULD BE EXTENDING THE IMPLEMENTATION OF THESE NEW STANDARDS BY SIX MONTHS, UNTIL DECEMBER. CONSUMERS WILL HAVE TO GO ANOTHER SUMMER WITHOUT KNOWING WHETHER OR NOT THEY ARE TRULY PROEBGTD FROM THE SUN — PROTECTED FROM THE SUN’S HARMFUL U.V.A. AND U.V.B. RAISE. I HAVE FILED AN AMENDMENT TO
1414
00:44:33,000 –>00:44:32,999
DELAYS. MAKE SURE THERE ARE NO FUTURE I LOOK FORWARD TO WORKING WITH MY COLLEAGUES TO SEE THIS AMENDMENT IS ACCEPTED AS PART OF THE FINAL F.D.A. LEGISLATION WHICH I HOPE IS PASSED QUICKLY BY THE SENATE. I WANT TO THANK CHAIRMAN HARKIN AND SENATOR ENZI FOR THEIR EXTRAORDINARILY EFFECTIVE AND COLLABORATIVE WORK ON THE BETTER PHARMACEUTICALS DEVICES ACT FOR CHILDREN WHICH IS INCLUDED IN THIS BILL. I THANK THEM VERY MUCH. JUST FOR A MOMENT LET ME RAISE ANOTHER PENDING ISSUE, WHICH IS OF CRITICAL IMPORTANCE. IN 40 DAYS, AS I THINK MANY OF US RECOGNIZE, STUDENT BORROWING RATES FOR COLLEGE WILL DOUBLE UNLESS WE ACT. AND WE HAVE SEEN BOTH SIDES OF THE AISLE, COLLEAGUES FROM BOTH SIDES COME DOWN AND SAY WE CANNOT LET THIS HAPPEN. WE CAN’T LET IT HAPPEN. THAT MEANS WE HAVE TO TAKE ACTION TO PREVENT THE DOUBLING
1444
00:45:25,000 –>00:45:24,999
LOANS. OF INTEREST RATES ON STAFFORD UNFORTUNATELY LAST WEEK WE HAD A SEE RIFS BUDGET VOTES WHICH MOST OF MY REPUBLICAN COLLEAGUES SUPPORTED WHICH, IF THEY PASSED, MANDATED THE DOUBLING OF THE STUDENT LOAN INTEREST RATES. SO I THINK WE HAVE TO MOVE AWAY FROM THE, THIS DEBATE IN TERMS OF DOUBLING AND ACTUALLY PASS LEGISLATION WHICH WILL PREVENT
1456
00:45:49,000 –>00:45:48,999
JULY 1. THE DOUBLING OF STUDENT LOANS BY I HOPE WE CAN DO IT PROMPTLY, CERTAINLY BEFORE JULY 1. AND ALSO I HOPE THAT WE CAN FIND AN EFFECTIVE OFFSET. WHAT THE REPUBLICANS HAVE SUGGESTED IS USING THE PREVENTION FUND. THE PRESIDENT MADE IT CLEAR HE WOULD VETO THE LEGISLATION IF IT INCLUDED THAT OFFSET. AND ALSO WHAT SHOULD BE CLEAR IS THAT USING RESOURCES TO PREVENT DECISION — PREVENT DISEASE NOT ONLY HELPFUL FOR THE AMERICAN PUBLIC BUT ALSO PROBABLY ONE OF THE PRACTICAL WAYS WE’RE GOING TO BE ABLE TO BEGIN TO BEND THAT
1475
00:46:25,000 –>00:46:24,999
FORWARD. VERY IMPORTANT COST CURVE GOING THIS PREVENTION FUND IS GOING TO HELP EVERYONE BUT IT IS GOING TO PARTICULARLY HELP MIDDLE-INCOME FAMILIES WHO ARE STRUGGLING WITH
1481
00:46:34,000 –>00:46:33,999
FIND INSURANCE. MEDICAL BILLS, STRUGGLING TO THE SAME FAMILIES ARE STRUGGLING TO PAY THE COST OF COLLEGE FOR THEIR CHILDREN. IT MAKES NO SENSE TO ME TO TAKE FROM ONE PROGRAM THAT WILL BENEFIT, WORKING FAMILIES TO PAY FOR ANOTHER PROGRAM THAT WILL BENEFIT WORKING FAMILIES. WE HAVE AN OFFSET WHICH IS AN LOOPHOLE WHICH ALLOWS LOBBYISTS AND FINANCIERS TO CREATE SUBCHAPTER “S” CORPORATIONS. THAT I THINK IS AN APPROPRIATE WAY TO PAY FOR THIS SUPPORT FOR STUDENTS AND EDUCATION. IF THERE ARE OTHER WAYS BEYOND THE PREVENTION FUND, I’D BE CERTAINLY HAPPY TO LISTEN TO THEM. IF THERE WERE OTHER PRINCIPAL WAYS TO AVOID DOUBLING THE INTEREST RATE FOR STUDENT LOANS, LET’S TALK ABOUT THEM. LET’S GET THEM ON THE FLOOR AND
1508
00:47:27,000 –>00:47:26,999
LET’S DEBATE THEM. MADAM PRESIDENT, I WILL CONCLUDE, BUT I WOULD ALSO LIKE UNANIMOUS CONSENT THAT MY STATEMENT BE INCLUDED AS ONE STATEMENT RATHER THAN BEING DIVIDED WITH THE COLLOQUY
1515
00:47:39,000 –>00:47:38,999
BETWEEN MYSELF AND THE MAJORITY LEADER.
1517
00:47:41,000 –>00:47:40,999
WITHOUT OBJECTION.
1519
00:47:42,000 –>00:47:41,999
THANK YOU, MADAM PRESIDENT.
1521
00:47:44,000 –>00:47:43,999
FLOOR. WITH THAT, I WOULD YIELD THE MADAM PRESIDENT? THE
1525
00:47:47,000 –>00:47:46,999
I ASK UNANIMOUS MAJORITY LEADER. CONSENT THAT THE EXECUTION OF THE PREVIOUS ORDER WITH RESPECT TO S. 1387 OCCUR AT 11:00 A.M. TOMORROW MORNING AND THAT ALL OTHER PROVISIONS UNDER THE PREVIOUS ORDER REMAIN IN EFFECT AT THE TIME. S. 3187.
1535
00:48:04,000 –>00:48:03,999
WITHOUT OBJECTION. MADAM PRESIDENT, AS I SAID HERE THIS MORNING, I HOPE THAT I’M NOT DISAPPOINTED AND I HOPE THE SENATE’S NOT DISAPPOINTED IN NOT BEING ABLE TO FINISH THIS F.D.A. BILL. WE’RE ON THE BILL. I HOPE WE CAN WORK OUT SOME FINITE LIST OF AMENDMENTS. THAT WOULD BE THE BEST THING TO DO FOR THIS BILL.
1548
00:48:28,000 –>00:48:27,999
DO THAT. I SAY TO EVERYONE, I HOPE WE CAN I DON’T WANT TO HAVE TO COME HERE TOMORROW AND FILE CLOTURE ON THE BILL, BUT THAT’S A CHOICE I’LL HAVE. OR I CAN — I CAN DO THIS, AND MAYBE WHAT I MIGHT DO IS MOVE TO RECONSIDER THE STUDENT LOAN. I HAVE THE ABILITY TO DO THAT AT ANY TIME. WE NEED TO GET THIS DONE. TODAY IS TUESDAY. I JUST THINK IT’S UNFORTUNATE. THERE’S AN EVENT TOMORROW NIGHT THAT WE CAN’T GET OUT OF. IT’S BEEN LONG-STANDING FOR THE SENATE AND THEIR SPOUSES. SO WE DON’T HAVE A LOT OF TIME. SO TOMORROW MORNING, IF WE DON’T HAVE SOMETHING WORKED OUT, I THINK WE’RE GOING TO HAVE TO DO SOME OTHER THINGS AND RECOGNIZE THAT ALL THE HAPPY TALK ON THIS BILL MAY NOT COME TO BE. I WOULD NOTE THE ABSENCE OF A QUORUM. I’M SO SORRY. I DIDN’T SEE SENATOR BINGAMAN BEHIND ME.
1578
00:49:23,000 –>00:49:22,999
I WITHDRAW THAT, MADAM PRESIDENT. WITHOUT OBJECTION. MADAM PRESIDENT? THE SENATOR FROM NEW MEXICO. MADAM PRESIDENT, I THANK THE MAJORITY LEADER FOR ALLOWING ME TO SPEAK. I WANTED TO SPEAK ABOUT AN AMENDMENT WHICH I INTEND TO OFFER ONCE WE DO GET ON TO THIS FOOD AND DRUG ADMINISTRATION SAFETY AND INNOVATION ACT. THIS IS AN IMPORTANT AMENDMENT, AND I WANT TO ADVISE MY COLLEAGUES AND ALL WHO ARE LISTENING ABOUT IT SO THEY CAN, INTO IT AND WIND UP SUPPORTING THE BILL. THIS IS AN AMENDMENT THAT SENATOR VITTER AS WORKED WITH ME ON, AS WELL AS SENATORS FRANKEN, SHAHEEN, COLE, TOM UDALL, TIM JOHNSON, SENATOR KLOBUCHAR, SENATOR MERKLEY, SENATOR SANDERS AND SENATOR SHERROD BROWN. THE AMENDMENT HAS THE STRONG SUPPORT OF MANY ORGANIZATIONS THAT ARE FOCUSED ON THE COST OF PRESCRIPTION DRUGS. HERE IS A LIST: AARP, AFL-CIO, WAL-MART, FAMILIES U.S.A., CONSUMER FEDERATION OF AMERICA, U.S. PIRG, CONSUMERS UNION, CENTER FOR MEDICARE ADVOCACY,
1615
00:50:45,000 –>00:50:44,999
AFSME. NATIONAL LEGISLATIVE ASSOCIATION ON PRESCRIPTION DRUG PRICES, THE ALLIANCE FOR RETIRED AMERICANS; VARIOUS OTHER COMPANIES AND ORGANIZATIONS. MEXICO PHARMACY ASSOCIATION STRONGLY SUPPORTS THIS LEGISLATION. THIS AMENDMENT ADDRESSES THE ROOT CAUSE OF ANTICOMPETITIVE, ANTICONSUMER SETTLEMENTS THAT ARE ENTERED INTO BETWEEN BRAND NAME AND GENERIC PHARMACEUTICAL MANUFACTURING COMPANIES. THE EFFECT OF THESE SETTLEMENTS THAT THEY ENTER INTO IS TO DELAY TIMELY ACCESS CONSUMERS WOULD HAVE TO GENERIC DRUGS. THIS PRACTICE IS COMMONLY REFERRED TO AS PAY FOR DELAY. AND IT COSTS AMERICAN CONSUMERS AND IT COSTS THE FEDERAL GOVERNMENT BILLIONS OF DOLLARS EACH YEAR IN HIGHER DRUG COSTS. ACCORDING TO THE FEDERAL TRADE COMMISSION, IN 2010, PAY FOR DELAY AGREEMENTS, LIMITING ACCESS TO AFFORDABLE GENERIC DRUGS PROTECTED $20 BILLION IN SALES FOR BRAND NAME PHARMACEUTICAL COMPANIES, AND THAT WAS AT THE EXPENSE OF CONSUMERS WHO WOULD HAVE BEEN ABLE TO PAY MUCH LESS FOR THOSE SAME DRUGS. MADAM PRESIDENT, ENSURING ACCESS TO AFFORDABLE MEDICATION IS AN ESSENTIAL ASPECT OF ADDRESSING THE GROWTH IN HEALTH CARE SPENDING. PRICES FOR BRAND NAME PRESCRIPTION DRUGS HAVE CONTINUED TO OUTPACE INFLATION AND OVERALL SPENDING ON PRESCRIPTION DRUGS HAS ALSO INCREASED SHARPLY. THESE STATISTICS ARE AMAZING TO ME. THE KAISER FAMILY FOUNDATION FOUND THAT IN 2008, SPENDING IN THE UNITED STATES FOR PRESCRIPTION DRUGS WAS $234.1 BILLION. THAT’S NEARLY SIX TIMES WHAT IT WAS IN 1990. SINCE GENERIC DRUGS ARE ON AVERAGE A FOURTH THE PRICE OF THEIR BRAND-NAMED ALTERNATIVES, THEY CAN BE AN IMPORTANT SOURCE OF AFFORDABLE PRESCRIPTION DRUGS FOR MANY AMERICANS. BUT TO ACTUALLY ACHIEVE THE SAVINGS FOR CONSUMERS, THESE GENERICS HAVE TO REACH MARKET IN A TIMELY MANNER. IN 1984 CONGRESS PASSED THE BIPARTISAN HATCH-WAXMAN ACT TO CREATE MARKET-BASED INCENTIVES FOR GENERIC PHARMACEUTICAL COMPANIES TO BRING THEIR DRUGS
1686
00:53:23,000 –>00:53:22,999
POSSIBLE. TO MARKET AS QUICKLY AS THE EXPRESSED PURPOSE OF THAT LAW WAS TO INCENTIVIZE EARLY GENERIC DRUGS COMPETITION. INSTEAD, THE PAY FOR DELAY SETTLEMENTS THAT OUR AMENDMENT TRIES TO ADDRESS, THESE PAY FOR DELAY SETTLE PH-LGTS BETWEEN NAME
1696
00:54:01,000 –>00:54:00,999
AND GENERIC DRUGS HAVE BECOME COMMONPLACE. IN THESE SETTLEMENTS, THE FIRST FILER GENERIC DRUG COMPANY AGREES TO DELAY MARKET ENTRY IN EXCHANGE FOR MONETARY OR OTHER AWARDS AND THIS HAS THE EFFECT OF BLOCKING ALL SUBSEQUENT GENERIC FILERS FROM COMING TO MARKET. NOW THIS IS A COMPLICATED ISSUE. I’D LIKE TO TAKE A FEW MINUTES TO EXPLAIN HOW THESE AGREEMENTS WORK UNDER EXISTING LAW AND ALSO HOW OUR AMENDMENT WOULD SOLVE THIS PROBLEM AS WE SEE IT. UNDER CURRENT LAW, FIRST TO FILE GENERIC DRUG APPLICANTS ARE
1714
00:54:43,000 –>00:54:42,999
EXCLUSIVITY. REWARDED WITH 180 DAYS OF MARKET EXCLUSIVITY IS AWARDED ONLY TO GENERIC COMPANIES WHO ARE THE FIRST TO FILE. IT IS NOT AVAILABLE TO SUBSEQUENT FILERS EVEN IF THEY ARE SUCCESSFUL IN INVALIDATING A PATENT OR ARE READY TO COME TO MARKET IMMEDIATELY. IF SUBSEQUENT GENERIC FILERS CAN ONLY ENTER THE MARKET AFTER THE FIRST GENERIC FILER HAS ENJOYED ITS 180 DAYS OF MARKET EXCLUSIVITY. SO UNDER THE PAY FOR DELAY SETTLEMENTS, THE FIRST FILER GENERIC COMPANY ESSENTIALLY PARKS ITS EXCLUSIVITY. IT BLOCKS ALL OTHER MANUFACTURERS FROM COMING TO MARKET UNTIL SIX MONTHS AFTER THE MARKET ENTRY DATE. THIS IS TRUE REGARDLESS OF THE STRENGTH OF THE PATENT OR THE READINESS OF SUBSEQUENT GENERIC FILERS TO COME TO MARKET. SO THIS MEANS THAT UNDER THE PAY-FOR DELAY SETTLEMENTS, GENERIC COMPANIES RECEIVE AN AWARD FROM BRAND NAME COMPANIES FOR DELAYING MARKET ENTRY. USUALLY A CASH REWARD, A VERY SUBSTANTIAL AMOUNT. THEY ALSO GET A REWARD FROM THE 180-DAY EXCLUSIVITY PERIOD. AND BRAND NAME COMPANIES GET TO EXTEND THEIR MONOPOLIES BEYOND WHAT WAS ORIGINALLY INTENDED
1754
00:56:07,000 –>00:56:06,999
LEGISLATION. UNDER THE HATCH-WAXMAN CONSUMERS ARE LEFT FOOTING THE BILL AND LEFT WITH NO OPTION BUT TO BUY THE MORE EXPENSIVE DRUGS AND TO KEEP BUYING IT EVEN AFTER THE GENERIC SHOULD HAVE COME TO MARKET. SO PAY-FOR DELAY SETTLEMENTS ARE — ALSO TYPICALLY INCLUDE AN AGREEMENT THAT THE FIRST FILER GENERIC COMPANY CAN ACCELERATE THEIR ENTRY INTO THE MARKET IN THE EVENT THAT A SUBSEQUENT
1768
00:56:37,000 –>00:56:36,999
FILER INVALIDATES THE PATENTS IN QUESTION. IN SUCH CASES, THE SUBSEQUENT
1771
00:56:44,000 –>00:56:43,999
EXCLUSIVITY. FILER TRIGGERS THE FIRST FILERS PUT SIMPLY, THERE IS NO INCENTIVE FOR SUBSEQUENT GENERIC FILERS TO FIGHT TO INVALIDATE WEAK PATENTS AND TO COME TO MARKET AS SOON AS POMBO. — POSSIBLE, EVEN WHEN THEY BELIEVE STRONGLY THEY COULD WIN IN COURT. WHEREAS THE ORIGINAL INTENT OF HATCH-WAXMAN IN COURT WAS TO REWARD COMPANIES THAT WERE THE FIRST TO SWALLOW AND BRING THEIR DRUGS TO MARKET, CURRENTLY THE REWARD GOES TO THE FIRST COMPANY TO SUBMIT THE NECESSARY PAPERWORK, AND BRINGING THE GENERIC DRUG TO MARKET IMMEDIATELY HAS BECOME AN OPTION WHICH CAN BE NEGOTIATED AWAY. TO FIX THE PAY-FOR DELAY PROBLEM, THE LAW NEEDS TO BE CHANGED SO THAT THE FIRST FILERS WHO ENTER INTO PAY FOR DELAY SETTLEMENTS CAN NO LONGER BLOCK GENERIC SUBSEQUENT FILERS WHO SUCCESSFULLY CHALLENGE PATENTS FROM ENTERING THE MARKET AND BRINGING AFFORDABLE DRUGS TO CONSUMERS. THE AMENDMENT THAT WE ARE OFFERING PROVIDES THIS SOLUTION OR THIS FIX IN THE FOLLOWING THREE WAYS. FIRST OF ALL, THE AMENDMENT GRANTS THE RIGHT TO SHARE EXCLUSIVITY TO ANY GENERIC FILER
1809
00:58:01,000 –>00:58:00,999
PATENT CHALLENGE IN THE DISTRICT COURT. THIS MEANS THAT IF A SUBSEQUENT FILER SUCCESSFULLY CHALLENGES A PATENT, EVEN AFTER A FIRST FILER HAS ENTERED INTO A PAY-FOR DELAY SETTLEMENT WITH A BRAND HIM COMPANY, THAT SUBSEQUENT FILER HAS A RIGHT TO SHARE EXCLUSIVITY WITH THE FIRST FILER. THIS PROVISION PROVIDES AN INCENTIVE FOR SUBSEQUENT FILERS TO CHALLENGE PATENTS AND TO STIMULATE COMPETITION. SECOND, THE AMENDMENT WE’RE OFFERING MAXIMIZES THE INCENTIVE FOR ALL GENERIC CHALLENGERS TO BRING PRODUCTS TO MARKET AT THE EARLIEST POSSIBLE TIME BY HOLDING GENERIC SETTLERS TO THE DEFERRED ENTRY DATE AGREED TO IN
1830
00:58:47,000 –>00:58:46,999
SIGNED. THE SETTLEMENTS THAT THEY HAVE THIRD, OUR AMENDMENT CREATES MORE CLARITY REGARDING LITIGATION RISKS BY REQUIRING BRAND NAME COMPANIES TO MAKE A TO LITIGATE A PATENT CHALLENGE WITHIN THE 45-DAY WINDOW PROVIDED FOR IN THE HATCH-WAXMAN ACT. THIS USE IT OR LOSE IT PROVISION ENHANCES MARKET CERTAINTY BY ELIMINATING THE OPTION FOR BRAND NAMES TO LITIGATE PATENT CHALLENGES WELL AFTER A GENERIC HAS COME TO MARKET. AND FINALLY, I THINK IT’S IMPORTANT TO POINT OUT, MADAM PRESIDENT, THAT THE AMENDMENT THAT WE’RE OFFERING DOES NOT INTERFERE WITH THE RIGHTS OF THE PARTIES TO SETTLE THEIR PATENT
1852
00:59:27,000 –>00:59:26,999
LITIGATION IF THEY CHOOSE TO DO SO. THERE HAVE BEEN NUMEROUS ANTITRUST EXPERTS AND CONSUMER GROUPS THAT HAVE IDENTIFIED THE HATCH-WAXMAN ACT’S STRUCTURAL FLAW, THE ONE THAT I HAVE BEEN DESCRIBING HERE, AS THE SOURCE OF THIS PAY FOR DELAY PROBLEM
1861
00:59:45,000 –>00:59:44,999
AND HAVE CALLED FOR A LEGISLATIVE SOLUTION. IN ADDITION, IN 2003, SENATOR HATCH HIMSELF EXPRESSED CONCERN THAT THE FLAW REMAINED DESPITE AN ATTEMPT TO FIX IT BY INCLUDING A — QUOTE — “USE IT IT PROVISION IN THE MEDICAID MODERNIZATION ACT OF 2003. SENATOR HATCH EMPHASIZED THAT THE LAW SHOULD BE CHANGED TO REWARD AND NOT PENALIZE GENERIC COMPANIES THAT SUCCESSFULLY INVALIDATE A PATENT AND ARE READY TO COME TO MARKET. LET ME FURTHER UNDERSCORE THE NEED FOR THIS AMENDMENT WITH SOME CONCRETE EXAMPLES. I HAVE GOT A CHART HERE THAT I THINK WILL MAKE THE POINT THAT I AM TRYING TO MAKE. THIS TABLE SHOWS THREE DRUGS INCLUDED IN PAY-FOR-DELAY
1885
01:00:31,000 –>01:00:30,999
SETTLEMENTS. THIS IS JUST THREE. THERE ARE MANY, MANY OF THESE SETTLEMENTS ENTERED INTO EACH YEAR. THE DELAY TO MARKET IN YEARS FOR EACH OF THE THREE DRUGS, THE THREE DRUGS ARE ALTACE, LIPITOR AND PROVIGIL. AND THE DELAY PERIOD THAT THE SETTLEMENTS CALLED FOR. IN ONE CASE, TWO YEARS.
1897
01:00:57,000 –>01:00:56,999
IN ANOTHER CASE, ONE AND A HALF YEARS. CASE, SIX YEARS. AND THE LOST SAVINGS TO CONSUMERS, ESTIMATED LOST SAVINGS TO CONSUMERS. LET ME JUST DESCRIBE EACH OF THESE A LITTLE BIT. THE FIRST DRUG IS KING PHARMACEUTICALS ALTACE.
1907
01:01:17,000 –>01:01:16,999
ALTACE. THIS IS A GENERIC VERSION OF WAS DELAYED FOR TWO YEARS AT AN ESTIMATED COST OF $637 MILLION TO CONSUMERS UNDER A PAY-FOR-DELAY SETTLEMENT. IN 2007, LUPEN INVALIDATED A PATENT COVERING ALTACE. LUPEN COULD NOT LAUNCH OR BRING THEIR GENERIC TO MARKET DESPITE BEING THE PARTY RESPONSIBLE FOR VALIDATING THE PATENT AND OPENING THE MARKET EARLIER. INSTEAD, THE FIRST FILER, COBALT, ACCELERATED ITS ENTRY INTO THE MARKET AND BENEFITED FROM 180 DAYS OF EXCLUSIVITY. LUPEN WAS LEFT WITH NO REWARD, DESPITE THE FACT THAT THEY HAD BEEN THE ONE THAT SUCCEEDED IN THE LITIGATION ARLINGTON VALIDATE THE PATENT. THE SECOND IS A CHOLESTEROL-LOWERING DRUG FAMILIAR TO MOST OF US. IT IS THE BEST-SELLING PHARMACEUTICAL DRUG IN THE HISTORY OF THE WORLD, LIPITOR. ACCORDING TO A 2008 “NEW YORK TIMES” REPORT, PFIZER AND GENERIC MANUFACTURER BRANN BAXBY LABORATORIES AGREED TO A SETTLEMENT WITH THE ENTRY OF A GENERIC INTO THE MARKET BY 24 MONTHS. THE SAME AGREEMENT REPORTED THAT A GENERIC OF THE DRUG WAS ESTIMATED TO SELL FOR LESS THAN A THIRD OF THE COST OF THE BRAND NAME LIPITOR, WHICH HAD EARNED $12.7 BILLION IN SALES THE YEAR BEFORE. A LETTER SENT TO THE F.D.A. DIRECTOR, DIRECTOR HAMBURG LAST YEAR BY SOME OF MY COLLEAGUES IN THE SENATE INDICATED THAT THE WAS SPENDING $2.4 BILLION A YEAR ON LIPITOR AND THAT A GENERIC VERSION WAS EXPECTED TO GENERATE $3.97 BILLION TO $6.7 BILLION IN SAVINGS ANNUALLY. A FINAL EXAMPLE ON THIS CHART HERE THAT I WANTED TO MENTION IS PROVIGIL. THIS IS A SLEEP DISORDER DRUG, A GENERIC VERSION OF WHICH COULD HAVE COME TO MARKET AS EARLY AS DECEMBER OF 2006. HOWEVER, DUE TO PAY-FOR-DELAY SETTLEMENTS, A GENERIC VERSION OF PROVIGIL JUST ENTERED THE
1969
01:03:36,000 –>01:03:35,999
2006. MARKET THIS YEAR INSTEAD OF IN ADDITION, IN OCTOBER, 2011, A SUBSEQUENT GENERIC FILER, APPETEX, INVALIDATED A PATENT COVERING PROVIGIL. BECAUSE THE FIRST FILERS IN THIS CASE SETTLED THEIR PATENT LITIGATION WITH THE BRAND PRIOR, APPETEX COULD NOT BEGIN SELLING GENERIC PROVIGIL DESPITE ITS COURT VICTORY. EVEN THE C.E.O. OF CEPHELON WHICH IS THE BRAND NAME MANUFACTURER OF PROVIGIL IS QUOTED AS SAYING — THIS IS THE C.E.O. OF THE BRAND NAME COMPANY, SAYING QUOTE, WE WERE ABLE TO GET SIX MORE YEARS OF PATENT PROTECTION, THAT’S $4 BILLION IN SALES THAT NOBODY EXPECTED, END QUOTE. IN OTHER WORDS, THE PROVIGIL CASE REPRESENTS SIX YEARS AND MILLIONS AND TENS OF MILLIONS OF
1995
01:04:31,000 –>01:04:30,999
CONSUMERS. DOLLARS IN LOST SAVINGS TO ONE OF THE LARGEST OF THOSE CONSUMERS IS THE U.S. MILITARY. AS THIS CHART ILLUSTRATES, THIS IS AN ESTIMATE OF THE EFFECT OF THIS SETTLEMENT, THIS SO-CALLED PAY-FOR-DELAY SETTLEMENT RELATED TO PROVIGIL ON THE DEPARTMENT OF DEFENSE. A GENERIC VERSION OF PROVIGIL WOULD HAVE BEEN RELEASED IN 2006 WITH EXPIRATION OF EXCLUSIVITY, THE DEPARTMENT OF DEFENSE ALONE WOULD HAVE SAVED $159 MILLION FOR THIS DRUG ACCESSED BY ALMOST HALF A MILLION SOLDIERS BETWEEN THE YEARS 2006-2011. SO HAD OUR AMENDMENT, THE FAIR GENERICS ACT — AND THAT IS THE NAME OF OUR AMENDMENT. WE HAVE INTRODUCED IT AS A SEPARATE STAND-ALONE BILL — BUT HAD THE FAIR GENERICS ACT BEEN THE LAW, GENERIC VERSIONS OF PROVIGIL WOULD VERY LIKELY HAVE BEEN AVAILABLE SIX YEARS AGO. THE FIRST FILERS, KNOWING THE PATENT WAS WEAK AND SUBSEQUENT FILERS COULD INVALIDATE IT AND COME TO MARKET THEMSELVES WOULD HAVE FULLY PROSECUTED THE PATENT FIGHT INSTEAD OF JUST SETTLING IT AS THEY DID. AS THESE EXAMPLES ILLUSTRATE, BY GRANTING SHARED EXCLUSIVITY RIGHTS TO ANY GENERIC CHALLENGER WHO WINS ITS PATENT CASE OR IS NOT SUED BY THE BRAND COMPANY, OUR AMENDMENT WILL END THE PAY-FOR-DELAY PROBLEM AND MOVE US CLOSER TO THE ORIGINAL INTENT OF HATCH-WAXMAN. THAT ORIGINAL INTENT IS MORE COMPETITION, GREATER ACCESS TO AFFORDABLE DRUGS AND SUBSTANTIAL SAVINGS TO THE UNITED STATES
2043
01:06:20,000 –>01:06:19,999
CONSUMERS. GOVERNMENT AND AMERICAN MADAM PRESIDENT, I HOPE WHEN WE GET THE OPPORTUNITY TO OFFER THIS AMENDMENT AND CONSIDER IT HERE ON THE SENATE FLOOR AND HAVE A VOTE ON IT, THAT MY COLLEAGUES WILL SUPPORT THIS AMENDMENT. IT WILL BE A SUBSTANTIAL STEP FORWARD FOR AMERICAN CONSUMERS AND WILL HELP US GREATLY IN OUR EFFORT TO REDUCE THE COST OF
2056
01:06:43,000 –>01:06:42,999
AMERICANS. PRESCRIPTION DRUGS FOR MADAM PRESIDENT, I YIELD THE
2059
01:06:48,000 –>01:06:47,999
EXCUSE ME. FLOOR AND SUGGEST THE ABSENCE — I YIELD THE FLOOR. A SENATOR: MADAM PRESIDENT? THE SENATOR FROM MASSACHUSETTS.
2065
01:06:55,000 –>01:06:54,999
THANK YOU, MADAM PRESIDENT. I THANK THE GENTLEMAN FOR YIELDING. I’M PLEASED AS WELL THAT THE SENATE IS MOVING THIS WEEK TO

Leave a Reply

Your email address will not be published. Required fields are marked *