[Senate Hearing 113-381] [From the U.S. Government Publishing Office] S. Hrg. 113-381 NOMINATIONS OF R. GIL KERLIKOWSKE, L. PAIGE MARVEL, AND TAMARA WENDA ASHFORD ======================================================================= HEARING before the COMMITTEE ON FINANCE UNITED STATES SENATE ONE HUNDRED THIRTEENTH CONGRESS SECOND SESSION on the NOMINATIONS OF R. GIL KERLIKOWSKE, TO BE COMMISSIONER, CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF HOMELAND SECURITY; L. PAIGE MARVEL, TO BE A JUDGE OF THE UNITED STATES TAX COURT; AND TAMARA WENDA ASHFORD, TO BE A JUDGE OF THE UNITED STATES TAX COURT __________ JANUARY 15, 2014 __________ Printed for the use of the Committee on Finance ---------- U.S. GOVERNMENT PRINTING OFFICE 89-640 PDF WASHINGTON : 2014 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON FINANCE MAX BAUCUS, Montana, Chairman JOHN D. ROCKEFELLER IV, West ORRIN G. HATCH, Utah Virginia CHUCK GRASSLEY, Iowa RON WYDEN, Oregon MIKE CRAPO, Idaho CHARLES E. SCHUMER, New York PAT ROBERTS, Kansas DEBBIE STABENOW, Michigan MICHAEL B. ENZI, Wyoming MARIA CANTWELL, Washington JOHN CORNYN, Texas BILL NELSON, Florida JOHN THUNE, South Dakota ROBERT MENENDEZ, New Jersey RICHARD BURR, North Carolina THOMAS R. CARPER, Delaware JOHNNY ISAKSON, Georgia BENJAMIN L. CARDIN, Maryland ROB PORTMAN, Ohio SHERROD BROWN, Ohio PATRICK J. TOOMEY, Pennsylvania MICHAEL F. BENNET, Colorado ROBERT P. CASEY, Jr., Pennsylvania Amber Cottle, Staff Director Chris Campbell, Republican Staff Director (ii) C O N T E N T S ---------- OPENING STATEMENTS Page Baucus, Hon. Max, a U.S. Senator from Montana, chairman, Committee on Finance........................................... 1 Hatch, Hon. Orrin G., a U.S. Senator from Utah................... 3 Cantwell, Hon. Maria, a U.S. Senator from Washington............. 5 Cardin, Hon. Benjamin L., a U.S. Senator from Maryland........... 7 CONGRESSIONAL WITNESS Murray, Hon. Patty, a U.S. Senator from Washington............... 6 ADMINISTRATION NOMINEES Kerlikowske, R. Gil, nominated to be Commissioner, Customs and Border Protection, Department of Homeland Security, Washington, DC............................................................. 8 Marvel, Hon. L. Paige, nominated to be a judge of the United States Tax Court, Washington, DC............................... 10 Ashford, Tamara Wenda, nominated to be a judge of the United States Tax Court, Washington, DC............................... 12 ALPHABETICAL LISTING AND APPENDIX MATERIAL Ashford, Tamara Wenda: Testimony.................................................... 12 Prepared statement........................................... 33 Biographical information..................................... 35 Response to a question from Senator Hatch.................... 47 Baucus, Hon. Max: Opening statement............................................ 1 Prepared statement........................................... 48 Cantwell, Hon. Maria: Opening statement............................................ 5 Cardin, Hon. Benjamin L.: Opening statement............................................ 7 Hatch, Hon. Orrin G.: Opening statement............................................ 3 Prepared statement........................................... 50 Kerlikowske, R. Gil: Testimony.................................................... 8 Prepared statement........................................... 52 Biographical information..................................... 56 Responses to questions from committee members................ 69 Marvel, Hon. L. Paige: Testimony.................................................... 10 Prepared statement........................................... 106 Biographical information..................................... 108 Response to a question from Senator Hatch.................... 121 Murray, Hon. Patty: Testimony.................................................... 6 Communication United States Council for International Business (USCIB)......... 123 NOMINATIONS OF R. GIL KERLIKOWSKE, TO BE COMMISSIONER, CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF HOMELAND SECURITY; L. PAIGE MARVEL, TO BE A JUDGE OF THE UNITED STATES TAX COURT; AND TAMARA WENDA ASHFORD, TO BE A JUDGE OF THE UNITED STATES TAX COURT ---------- WEDNESDAY, JANUARY 15, 2014 U.S. Senate, Committee on Finance, Washington, DC. The hearing was convened, pursuant to notice, at 10:12 a.m., in room SD-215, Dirksen Senate Office Building, Hon. Max Baucus (chairman of the committee) presiding. Present: Senators Schumer, Cantwell, Nelson, Menendez, Carper, Cardin, Casey, Hatch, Grassley, Crapo, Thune, and Burr. Also present: Democratic Staff: Amber Cottle, Staff Director; Laurie Dempsey, Detailee; Jason Park, International Trade Counsel; Rory Murphy, International Trade Analyst; Mac Campbell, General Counsel; Tiffany Smith, Tax Counsel; and Andy Heiman, Tax Policy and Nominations Advisor. Republican Staff: Chris Campbell, Staff Director; Rebecca Eubank, International Trade Analyst; Richard Chovanec, Detailee; Everett Eissensat, Chief International Trade Counsel; Nicholas Wyatt, Tax and Nominations Professional Staff Member; and Alex Brant, Detailee. OPENING STATEMENT OF HON. MAX BAUCUS, A U.S. SENATOR FROM MONTANA, CHAIRMAN, COMMITTEE ON FINANCE The Chairman. The hearing will come to order. Senator Henry Clay, who was the chairman of this committee in 1841, once said this, and I quote him: ``Government is a trust, and the officers of the government are trustees--and both the trust and the trustees are created for the benefits of the people.'' The three individuals here today are dedicated public servants, trustees working hard for the benefit of the people. They are experts in their fields, and, if confirmed, they will bring an impressive array of diversity and experience to the job at hand. Gil Kerlikowske has been nominated to serve as Commissioner of the United States Customs and Border Protection, often referred to as CBP. This agency enforces the country's trade and border security laws. If confirmed, Mr. Kerlikowske will be entrusted with developing policy that has broad effects on America's economy and safety, a charge he is highly qualified to execute. Mr. Kerlikowske has spent his career in public policy and law enforcement, most recently, as Director of the Office of National Drug Control Policy. Before that, he served as Chief of Police in Seattle. His decades of experience will help ensure our Nation's borders are secure, flexible, and utilizing the latest technologies. This committee has jurisdiction over international trade, and CBP plays a crucial role in maintaining the flow of trade across our borders. CBP processes nearly $2.5 trillion worth of goods every year, and it must ensure this process is thorough and efficient. CBP's director must consult regularly with Congress, Federal agencies, and the many businesses that rely on trade. This committee takes CBP's mandate to consult with Congress very seriously. Senator Hatch and I introduced a Customs reauthorization bill last year. The bill is intended to help CBP prioritize its trade facilitation and enforcement functions, and it provides additional tools and resources to help the Commissioner do so. If Mr. Kerlikowske is confirmed, close communication with this committee will be important. Also with us today are Tamara Ashford and Paige Marvel. Both are nominated to serve as judges on the United States Tax Court. Judge Marvel, in fact, has been nominated to serve for a second term. The Tax Court gives Americans a venue and a voice to address legitimate tax concerns. It helps guarantee fair administration of our tax laws and hears 30,000 cases each year. It is a cornerstone of America's tax system. Judges must be willing to put in long hours and endure a busy travel schedule. They hear cases in 74 cities across our country, and they spend weeks at a time away from their homes and families. The job is difficult, but Ms. Ashford and Judge Marvel are the right people to take it on. Prior to joining the Court, Judge Marvel had a distinguished career in the private sector, and she has proven herself on the Tax Court and deserves support for her second term. Ms. Ashford currently serves as the Deputy Assistant Attorney General for Appellate and Review in the Tax Division at the U.S. Department of Justice. She has a sterling track record of public service that she will carry with her to the Tax Court, including at the IRS and the Department of Justice. And like Judge Marvel, she has valuable experience in the private sector. With their confirmations, the Tax Court will have a full complement of 19 judges for the first time since 1999. So, as we consider these nominations, let us remember Henry Clay's words that ``Government is a trust, and the officers of the government are trustees working for the benefit of the people.'' I thank all three nominees for joining us here today, and I hope the committee can act on their nominations quickly. During today's hearing, we will also pause to vote on two nominations: Sarah Bloom Raskin, nominated to be the Deputy Secretary of the Treasury; as well as Rhonda Schmidtlein, nominated to be a Commissioner at the International Trade Commission. When we get a quorum, we are going to take a short break so we can vote on those nominees. [The prepared statement of Chairman Baucus appears in the appendix.] The Chairman. Senator Hatch? OPENING STATEMENT OF HON. ORRIN G. HATCH, A U.S. SENATOR FROM UTAH Senator Hatch. Thank you, Mr. Chairman. Thank you for holding today's hearing. Trade is essential to the growth of the U.S. economy, and U.S. Customs and Border Protection, CBP, is at the center of ensuring that legitimate trade flows smoothly and efficiently. This task goes all the way back to 1789, when the first Congress created the first agency of the Federal Government with the responsibility of collecting import duties. This first U.S. Customs agency would go on to come under the direct authority of the Secretary of the Treasury. Following passage of the Homeland Security Act of 2002, CBP was created and is the unified border agency with the dual missions of facilitating trade and securing our borders against terrorism. These missions are performed by a workforce of almost 60,000 dedicated Federal employees. And with these important missions, it is vital that CBP has the proper leadership in place. That starts with the head of the agency. Unfortunately, CBP has been without a Senate-confirmed commissioner since 2009. Last year, I called upon President Obama to nominate a commissioner and to appoint someone with a strong background in trade. Mr. Kerlikowske, your background is in law enforcement and not in trade. However, from our conversations, I am confident that if you are confirmed, and I expect you to be, your lack of a trade background will not prevent you from making sure that the trade functions of CBP receive the same priority as the security functions. Now, I think you recognize that trade is essential to the growth of our economy and that a strong economy is essential to our Nation's security. In addition to trade, intellectual property is also an important part of the U.S. economy. Therefore, I will continue to support CBP's efforts to ensure that strong enforcement of our Nation's intellectual property laws remains a high priority for the agency. In March of last year, Senator Baucus and I introduced the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013. If enacted, our bill would help to modernize CBP by making sure that it has the authority and tools necessary to carry out its trade facilitation mission. We have received good feedback on the bill, and I hope the Finance Committee will be able to consider our legislation very soon. Mr. Kerlikowske, if confirmed, I hope that you will work closely with this committee to ensure that CBP fulfills its proper role in facilitating and promoting trade. Now, having said that, the United States Tax Court does not go quite as far back in our history as the first U.S. Customs agency, but it is a very, very important part of our tax system. It is the only venue for taxpayers who want to challenge an assessed tax liability before payment. Unlike many Federal Government entities, the Tax Court goes wherever the taxpayers are, with judges hearing cases in many cities throughout the country. Tax Court judges deal with the individual taxpayers face-to-face and actually speak to and hear from them in person. Very few nominees that we consider in this committee will have that kind of interaction. Keeping the Court staffed with qualified judges helps provide faster and better accountability to taxpayers. If both of the nominees we will hear from today are confirmed, the Tax Court will have a full complement of 19 judges. Judge Marvel, having already completed one term on the Tax Court, has fortunately agreed to serve a second term. The Finance Committee has consistently encouraged the reappointment of Tax Court judges in order to preserve expertise and continuity in what is a very complicated area of policy. This is not to say that new judges are not important or welcome, of course, but experience is valuable. Tamara Ashford already has extensive experience in the tax arena, having worked a great deal in private practice for the Internal Revenue Service and now for the Tax Division at the Justice Department. As she noted in a speech that she gave last year, she has seen tax practice from both sides of the table. I think that is important too. Indeed, I think we have before us two very qualified Tax Court nominees, and I expect both of you to be confirmed quickly. Mr. Chairman, I want to thank you once again for holding this hearing, and I look forward to hearing from all of our nominees here today. The Chairman. Thank you, Senator, very much. [The prepared statement of Senator Hatch appears in the appendix.] The Chairman. Our first witness, Gil Kerlikowske, is nominated to be Commissioner of U.S. Customs and Border Protection. Mr. Kerlikowske, here is an opportunity now to introduce your family. Then Senator Cantwell and Senator Murray will also introduce you. First, I am going to let Mr. Kerlikowske introduce his family, and then Senator Murray and Senator Cantwell will speak. Mr. Kerlikowske. Thank you, Mr. Chairman. My daughter Kim is here. She lives in Colorado with her husband and my grandchildren. She is a teacher. Unfortunately, my wife, Anna, could not be here, having been teaching in Florida this week rather than here in Washington, DC. The Chairman. Thank you very much. Would you please stand so we can recognize you? [Applause.] Mr. Kerlikowske, you confirm one of my theories, which is, if you show me an achiever, I will show you there is a teacher in the family. Senator Cantwell? Senator Cantwell. Well, I see my colleague, Senator Murray, is at the dais. Did you want to go ahead? Senator Murray. I can wait for you. You go ahead. OPENING STATEMENT OF HON. MARIA CANTWELL, A U.S. SENATOR FROM WASHINGTON Senator Cantwell. Thank you, Mr. Chairman and Ranking Member Hatch. I am very pleased to introduce to the Finance Committee Director Kerlikowske, and I urge my colleagues to confirm him for this position as quickly as possible. Many of you know or may know Mr. Kerlikowske, because he got 91 votes in the United States Senate for his current role as Director of the Office of National Drug Control Policy. I have known him for more than a decade, and, throughout those years in law enforcement, he has a demonstrated and impressive record of exceptional management and leadership skills. As Gil was the Chief of the Seattle Police Department for over 8 years, he was a leader in a community that worked collaboratively with local, State, and Federal agencies and organizations. Many of you may know that Seattle is home to one of the largest ports and gateways for international trade. In fact, 70 percent of Seattle's container cargo comes or goes to the region of the country outside the Pacific Northwest. So Washington State exports were valued at $75.6 billion in 2012. So needless to say, Customs, border, and security issues are a very important part of our economy, and anyone who has worked in that region knows how important that coordination is. It has been good news that our trade deficit has been narrowing in recent months, but an important ability necessary to continue to be competitive in that area will be the international marketplace and Customs and Border Protection working to ease commercial trade processing systems so that U.S. companies can maintain an efficient supply chain and operate fast and secure trade flows. In conducting this mission, CBP faces many challenges: promoting a fast and effective cargo clearance process, something my colleague, Senator Murray, has been very involved in; reducing the importation of counterfeit goods; and coordination of information and Federal agency guidelines. Gil has a very solid track record in interagency coordination and implementing new initiatives, and I think continuing to step up to the challenges is going to mean new processes. In 2009, he became the Director of the Office of National Drug Control Policy, and he advised the President on this. And, again, Federal agencies needed the cooperation with local initiatives to make that work. And so all of this is going to be incredibly important. And lastly, Mr. Chairman, he has worked to advance very cost-effective programs in improving enforcement efforts, and, again, I think that is always going to be the bottom line at Customs and Border Protection. We have to improve it. It has to be fast and efficient, but we always have to do it in a cost- effective way too, and these will be new initiatives. So I very much look forward to his nomination moving through the Senate and for the work that he is going to do continually for our Nation. The Chairman. Thank you, Senator. Senator Murray, we are honored to have the senior Senator from Washington here. Thank you very much, Senator. STATEMENT OF HON. PATTY MURRAY, A U.S. SENATOR FROM WASHINGTON Senator Murray. Thank you very much, Mr. Chairman. Thank you to Ranking Member Hatch and to all the members of the committee. I am very honored to be here with my colleague, Senator Cantwell, to introduce Gil Kerlikowske to the members of this committee. I want to welcome Director Kerlikowske and congratulate him on the honor of being nominated as the next Commissioner of Customs and Border Protection at the Department of Homeland Security. I also want to thank Director Kerlikowske and all of his family for accepting this responsibility at this important time in our Nation's history. Mr. Chairman, we know the next Commissioner of Customs and Border Protection will face a number of key challenges. He will be faced with the difficult task of balancing the need to secure our Nation's borders and ports of entry with the need to respect and preserve the civil liberties enjoyed by American citizens and the free flow of commerce that is so essential to our State and national economies. Mr. Chairman, let me assure you that Gil Kerlikowske is the right man to address these challenges. He brings 37 years of law enforcement experience, including 9 years as Chief of Police for Seattle. With his recent experience as Director of the Office of National Drug Control Policy, he worked to bridge the gap between local and Federal law enforcement officials. As he has shown time and again, Director Kerlikowske will bring a fresh, new, and hands-on perspective to Customs and Border Protection. As a former police chief, Director Kerlikowske understands the importance of partnerships between Federal, State, and local law enforcement, and he understands how to use evidence-based strategies to make communities safer by reducing crime, while improving the morale and performance of a large agency. Mr. Chairman, I have seen his work firsthand as Seattle Police Chief. Under his leadership, not only did crime in Seattle reach an all-time low, but the Seattle Police Department, with county, State, and Federal law enforcement agencies, worked to bust a drug ring that stretched from Mexico to Canada, running right through Seattle and eastern Washington. These multiagency Federal/local partnerships require cooperation and compromise, and they require a leader who can bring people with competing interests together; in other words, someone with Director Kerlikowske's proven experience. When Director Kerlikowske left Seattle to take on his current role as Director of the Office of National Drug Control Policy, local police chiefs and sheriffs told me they were sorry to see him go but that the Nation was gaining a true innovator in Gil Kerlikowske. I could not agree more. Director Kerlikowske has served the people of Washington State and the people of our Nation well, and I know that he will continue to do so in his new role. I am very proud to be here at the committee today to support his confirmation. Thank you, Mr. Chairman. The Chairman. Thank you, Senator. Before you speak, Mr. Kerlikowske, I would now like to introduce our other nominees. I have already introduced Judge Marvel. Judge Marvel, do you have family here you would like to introduce? Judge Marvel. I do, Mr. Chairman. My husband, Robert Dyer, Jr., is here. My two children, unfortunately, could not be here, but I will tell the committee a little bit about them in my opening remarks. The Chairman. Would your husband please stand so we can recognize him? [Applause.] And, Ms. Ashford, do you have family here? Ms. Ashford. I do, indeed, Chairman Baucus. I am very pleased to introduce my parents, Ronald and Wenda Ashford, from the great city of Boston, as well as my aunt from the great city of Baltimore, MD. [Applause.] The Chairman. Senator Cardin, are you going to introduce Ms. Ashford? Senator Cardin. Yes, if I might, Mr. Chairman. Actually, I am going to introduce Judge Marvel, but I will be glad to also introduce Ms. Ashford, because you have a good family. OPENING STATEMENT OF HON. BENJAMIN L. CARDIN, A U.S. SENATOR FROM MARYLAND Senator Cardin. Let me thank all three of our nominees for their continuation of public service. It is a sacrifice, we know that, and it is a family sacrifice. So I thank Senator Baucus for always acknowledging the family, because we know that it is a real commitment, and we thank you for your service. Mr. Chairman, I have known Paige Marvel for many, many years. I have known her since the 1970s when she was a young attorney at the law firm of Garbis and Schwait, known for her tax expertise. Later, she was a valuable member of the Venable law firm. Venable is a Baltimore-based law firm, then known as Venable, Baetjer, and Howard. It has grown a little bit since those days, but Judge Marvel, at that time, was their expert on tax law. As a tax attorney, she had an unquestioned reputation for her expertise in tax law, but also for being a good person--a person easy to work with and a person of unquestioned integrity and unquestioned qualifications. She has been extremely active in the Bar Association. In the American Bar Association, she chaired the Court Procedures Committee, and I give her a lot of credit for taking on that aspect of law that many of us who are lawyers run away from. She is also active in the Maryland Bar Association. She was the chair of the Tax Section of the Maryland Bar Association. She has numerous community activities. If you look at the list, you will see that she has volunteered in so many areas in our community. Since April 1998, she has been a member of the Tax Court. Her reputation only continues to get stronger, and we really are very fortunate to have on the Tax Court a person of her expertise in tax law with her ability to work to make our system work. I strongly recommend her confirmation, and I thank her again for her willingness to continue to serve. The Chairman. The Chief Judge of the Tax Court is here today, Judge Thornton, and so are Judge Colvin and Judge Gale. Could you all three please stand? We want to show our support for the Tax Court. Thank you very much for your service. [Applause.] It is interesting. Many Tax Court judges have a history with this committee, having worked for and served in various capacities on this committee, and we deeply appreciate that very much. Mr. Kerlikowske, we would love to hear from you. And your statement is automatically going to be included in the record. STATEMENT OF R. GIL KERLIKOWSKE, NOMINATED TO BE COMMISSIONER, CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF HOMELAND SECURITY, WASHINGTON, DC Mr. Kerlikowske. Thank you, Mr. Chairman, Ranking Member Hatch, and distinguished members of the committee. It is a privilege to appear before you. Mr. Chairman, I have to take a moment, as you look to a new venture, to recognize your service to the people of Montana and to our Nation. And thank you for allowing me to introduce my daughter. Let me say, when I enlisted in the Army in 1970, I took an oath to protect the country, and I have upheld that duty for over 40 years as a police officer, police chief in Buffalo and Seattle, and I was elected by my peers to be president of the Major City Chiefs Association. As Director of the Office of National Drug Control Policy, I have worked very hard to reduce the problem of drug abuse both domestically and internationally. And during my almost 5 years of leading ONDCP, I have made transparency, responsiveness, and communication with Congress hallmarks of my tenure. And, if confirmed, I will continue that leadership at CBP. I am honored that the President nominated me to lead the largest law enforcement agency in the United States and one whose mission is critical to the physical and economic security of our country. I have had the pleasure over these years to work hand-in-glove with our partner agencies, CBP included, and colleagues to author the Northern Border Strategy, which you are very familiar with, and the Southwest Border Counternarcotics Strategy. I represented the United States to over a dozen countries, meeting with heads of state and customs officials to engage in programs to decrease drug trafficking and build strong border communities and international partnerships. In addition, it is incumbent that CBP also interdict weapons and funds that are coming from the United States destined for transnational organized crime. The dual missions that Senator Hatch mentioned, which are to facilitate legitimate trade and travel and, also, secure the border, are missions that I believe are mutually reinforcing. Border security and preventing terrorists, weapons of mass destruction, and threats to agriculture from impacting our country, are the more well-known side of CBP. However, CBP's vital Customs responsibilities include enforcing over 500 laws for 47 Federal agencies. We protect international property rights, processing more than $2.3 trillion in international trade and collecting more than $40 billion annually in Customs duties. And since my nomination, I have been honored to meet with many of you and your staffs and members of the Commercial Operations Advisory Committee, the trade associations, companies, all of which have a stake in CBP's mission and future direction, and I assure you that this is the beginning of a collaboration that will, if I am confirmed, continue and deepen. My experience as a major city police chief has continually reinforced the understanding that protecting people and their livelihoods are interconnected. Commerce, the backbone of American jobs and trade, depends on a predictable and safe environment for business, and law enforcement is critical in creating that. And where a large police department must foster a safe and welcoming environment for business and visitors and maintain the public's trust and confidence, well, CBP's law enforcement role is the same. In listening to leaders of the trade community, I have heard consistently that CBP has made real progress to modernize, simplify, and make more uniform its trade and business process. If confirmed, I intend to build on that foundation to foster economic prosperity, economic security, and the border security objectives, continuing the outreach to stakeholders and Congress. If confirmed, I want to focus on four particular areas. First, CBP needs to continue to prioritize the completion of the Automated Commercial Environment (ACE). That is the electronic automated system for the efficient transmission of data to all U.S. Government agencies, and that will ensure efficient and timely entry and release of cargo. Second, CBP needs to modernize its export process to streamline exports and foster growth for U.S. companies, and this needs to be done in close collaboration with all of CBP's partners, including industry. Third, CBP needs to focus its enforcement resources to protect U.S. companies from unfair competition; ensure that American technologies, intellectual properties, and goods are protected from threats; and protect domestic consumers from unsafe and counterfeit products. And fourth, CBP needs to build and retain a world-class, knowledge-based workforce, and the morale challenges within CBP really require sustained leadership attention. If I am confirmed, this too will be a major priority. Thank you for the opportunity to appear before you, and I look forward to answering questions. The Chairman. Thank you, Mr. Kerlikowske. [The prepared statement of Mr. Kerlikowske appears in the appendix.] The Chairman. Actually, I have some obligatory questions I am going to ask all the nominees, and we will get to the others later. First, is there anything that you are aware of in your background that might present a conflict of interest with the duties of the office to which you have been nominated? Mr. Kerlikowske. No. The Chairman. Judge Marvel? Judge Marvel. No. The Chairman. Ms. Ashford? Ms. Ashford. No. The Chairman. Thank you. Do you know of any reason, personal or otherwise, that would in any way prevent you from fully and honorably discharging the responsibilities of the office to which you have been nominated? Mr. Kerlikowske. No, sir. Judge Marvel. No. Ms. Ashford. No. The Chairman. Thank you. Do you agree, without reservation, to respond to any reasonable summons to appear and testify before any duly constituted committee of the Congress, if you are confirmed? Mr. Kerlikowske. I do. Judge Marvel. Yes, sir. Ms. Ashford. Yes. The Chairman. Thank you. Finally, do you commit to provide a prompt response in writing to any questions addressed to you by any Senator of this committee? Mr. Kerlikowske. Yes. Judge Marvel. Yes. Ms. Ashford. Yes. The Chairman. Thank you. Judge Marvel, why don't you present your testimony? Then we will have Ms. Ashford give her testimony. STATEMENT OF HON. L. PAIGE MARVEL, NOMINATED TO BE A JUDGE OF THE UNITED STATES TAX COURT, WASHINGTON, DC Judge Marvel. Thank you. Chairman Baucus, Ranking Member Hatch, and distinguished members of the Committee on Finance, thank you for the privilege of appearing before you today. I last appeared before this committee almost 16 years ago, after I was nominated for my first term as a Tax Court judge. I am grateful to President Obama for nominating me for a second term on the Court, and I am grateful to you and to the committee staff for the help given to me throughout this process. Senator Hatch, I am particularly grateful for your statement about my pending nomination during the confirmation hearing of my colleague, Chief Judge Michael Thornton. I would be remiss if I did not also acknowledge and thank Senator Ben Cardin and his staff for the help they gave me both before and after the President announced my nomination. I am a lifelong resident of the State of Maryland, and I have followed Senator Cardin's political career from the time he was rising in the ranks of the Maryland State Legislature. He has been my Delegate, Representative, and Senator for decades. I have long admired his commitment to constituent service, and I have benefitted from it several times. Senator Cardin, thank you for your continuing excellent service to the State of Maryland and to this country. I would like to take this opportunity to also thank my family for the support they have given me during my career. My husband of almost 40 years, whom I introduced to the committee, Robert Dyer, has been my greatest supporter and friend since we first met in 1971 at the University of Maryland School of Law. We have two children. Our son, Alex Dyer, holds a B.S. degree in architecture from Washington University in St. Louis and intends to pursue a career as an architect. Our daughter, Kelly Dyer, holds a B.S. degree in neuroscience and behavioral biology from Emory University and is currently working in Atlanta as a research assistant on a public health project while she studies for the MCAT examination. There are two members of my family who are not here today whom I really need to acknowledge. My mother, Louise Harrison, is 92 years old and, due to health problems, can no longer travel. If she were here, she would tell you that she served this country honorably during World War II as a U.S. Army nurse anesthetist on a hospital ship in the Atlantic and in the Mediterranean. She would also tell you, whether you asked or not, that if you want to honor her service, you should confirm her daughter. [Laughter.] I had to say that, sorry. My sister, Vicki Marvel, is a school counselor in a middle school in Norman, OK. She looks after my mother, and she is also recuperating from a knee replacement surgery she had recently. I wish they could be here. They are not. I want to thank both of them for making me the person I am today. My professional family is also here, and I want to acknowledge them, if you would permit me to do so. Angela Frith is my chambers administrator, who is seated here behind me. My two law clerks are Chaim Gordon and Doug Longhofer. Together, they keep my chambers functioning at a very high level, and I am grateful for their hard work on my behalf, and I really want to take the opportunity to state publicly how much they do for me on a daily basis. I also want to thank my colleagues, Chief Judge Michael Thornton, Judge John Colvin, and Judge Joseph Gale, for supporting me and Tamara Ashford by attending this hearing today. Before I joined the Tax Court in 1998, I practiced tax and business law for 24 years and clerked for several years before that. I tried cases in the Tax Court and in other Federal and State courts throughout this country. That experience led me to appreciate both the benefits and burdens of the litigation process and the effect that it has on the people it touches. As a Tax Court judge for almost 16 years, I have taken my experience and applied it to the courtroom over which I preside. I make every reasonable effort to treat litigants fairly, to alleviate the fear that many litigants and witnesses have when they enter a courtroom, to assist litigants in understanding what they must prove, and to help them build the record I need to decide a case fairly. I am mindful that the Tax Court is the Federal court that handles the vast majority of Federal tax litigation in this country and that it has a very large population of pro se or self-represented taxpayers. Congress designed the Tax Court to be a litigation forum for all taxpayers, represented or not, and I will continue, if confirmed, to honor Congress's intention by approaching cases with an open mind and a commitment to justice. Thank you again for considering my nomination. I would be happy to answer any questions that you might have. The Chairman. Thank you very much, Judge. [The prepared statement of Judge Marvel appears in the appendix.] The Chairman. Ms. Ashford, you are next. STATEMENT OF TAMARA WENDA ASHFORD, NOMINATED TO BE A JUDGE OF THE UNITED STATES TAX COURT, WASHINGTON, DC Ms. Ashford. Good morning, Chairman Baucus, Ranking Member Hatch, and distinguished members of the Finance Committee. Thank you for the privilege of appearing before you today. I am grateful to President Obama for nominating me, and I am grateful to you and the committee's outstanding staff for processing my nomination so promptly. Thank you again for allowing me to introduce my parents, Ronald and Wenda Ashford. My father is actually a retired high school teacher with the Quincy, MA public schools, having taught at the same school for over 35 years. The Chairman. More confirmation of my theory: show me an achiever, and there is a teacher in the family. Ms. Ashford. Correct. Similarly, my mother retired after a nearly 40-year career at the Massachusetts General Hospital. They have both instilled in me the passion for learning and a love for the law, as well as the values of working hard and being a good public servant, and I am thrilled that they could be here with me today. Their support has been invaluable, and I am grateful beyond what words can convey. I was also very pleased to introduce my aunt, joining us from Baltimore. My Aunt Bonnie is an inspiration to me because of the imprint she has made and the barriers she has broken in tennis--not only in North Carolina, where she and my mother, together with their brother, were raised, but in the larger tennis world. A professional tennis player, notably, Bonnie was the first black member of the Virginia Slims Tennis Circuit, which circuit eventually became the basis for the later-named WTA Tour. And she was among the first people of color to play in the South African Open Tennis Championships in Johannesburg, South Africa in 1972. I am grateful for her continuous support. Most of my nearly 20-year career as a lawyer has been spent directly involved in the area of tax controversies and litigation, and I have experience in handling these types of matters from all sides--the Department of Justice, private practice, and the Internal Revenue Service. In private practice, my focus was on Federal tax controversy and litigation matters, representing both corporate and individual taxpayers in the United States Tax Court, as well as other Federal trial and appellate courts. Early in my career, as a civil tax appellate attorney with the Department of Justice's Tax Division, I briefed and presented oral argument in cases before the U.S. Courts of Appeal that were appealed from the Tax Court, as well as other Federal courts. For the past few years, as the Deputy Assistant Attorney General for Appellate and Review, I led the team responsible for determining the government's unified strategy with respect to civil tax appeals originating from the Tax Court and other Federal courts. I also worked to resolve civil tax cases through settlement or through concession. As an aside, I actually would like to take this opportunity to thank my boss, Assistant Attorney General Kathy Keneally, who is here today--thank you--for her leadership, her support, and her friendship. I owe a great deal of thanks to her for the fact that I sit here today as a nominee to the Tax Court. Through my experiences, which also include leadership positions held outside my professional work, I have come to understand what makes a good judge and have amassed the temperament and skills to be an independent arbiter as a Tax Court judge. If confirmed, I hope to continue to be guided by the principles and values instilled in me by my family and my past experiences, to work hard, and to serve our Nation's tax system by resolving tax controversies fairly, impartially, and expeditiously. Thank you again for the opportunity to testify, Mr. Chairman. I am happy to answer any questions the committee may have. The Chairman. Thank you, Ms. Ashford. [The prepared statement of Ms. Ashford appears in the appendix.] The Chairman. What, in your experience, in your prior roles--private sector, public, and so forth--have you learned that is going to be most important, do you think, for your new job as a judge on the Tax Court? What have you learned that is probably going to be most important for you to focus on? Ms. Ashford. Thank you for your question, a very important question, Chairman Baucus. I think, for me, my wealth of professional legal experience has prepared me for the role as Tax Court judge. In particular, when I was in private practice, I had the ability to represent taxpayers before the Tax Court--corporate taxpayers as well as individual taxpayers. And in particular, with respect to individual taxpayers, I have had the personal experience that it can be daunting and confusing for, in particular, less- sophisticated taxpayers to resolve their disputes with the government, with the Internal Revenue Service. So I think my experience in representing both individual and corporate taxpayers will serve me well on the Tax Court, to serve as an independent arbiter to the Court. The Chairman. I just think it is an advantage you have: that is, outside experience like that. That is going to make a big difference, I think. I appreciate that experience. Ms. Ashford. Thank you, Senator. The Chairman. Judge Marvel, briefly, you have been working with the Tax Court for a while now. We are trying to reform the tax code. Very briefly, just give us one or two salient observations you have with respect to the U.S. tax code that you think the Congress should address. Judge Marvel. I am not sure that I am really prepared to say what Congress should address, Senator, but I will say this, that having seen the tax system affecting real people and having those cases then come to the Court for us to resolve, it is readily apparent to me that the more that people can understand what the tax law requires of them and what they need to do to comply with it, the better off the entire system will be, and the better off the Court will be. The vast majority of the litigants whom I have seen during my years on the Court have been people or companies or States that operate with regard to the tax law in good faith. They may make a mistake. The government may, in fact, be wrong. But the bottom line is, they come to the Court maybe a little confused, maybe they made a mistake. But they are certainly not deliberately trying to cheat the government. You have a few notable exceptions to that. But I do think that the more people can understand what they are obligated to do---- The Chairman. You are suggesting perhaps more simplification. Judge Marvel. That is exactly what I am suggesting. The Chairman. Thank you. Mr. Kerlikowske, what is the one major effort that you think must be undertaken to encourage greater trade facilitation, because trade is so important and becoming so much more important over the years to our job growth, et cetera? Is there something that kind of comes to mind, sort of number one, that we should focus on, you in your new job and Congress, to help facilitate trade, from your job's perspective? Mr. Kerlikowske. Senator, I met with a number of trade associations and companies, from Boeing to COSCO, et cetera. They want predictability and consistency, and they would also like to see the interagency functions of the U.S. Government operate with that same level of consistency. That is why I am encouraged by the support for the automated system that would provide everyone in the U.S. Government exactly the information that they need to make those decisions, to get the cargo in, to make sure that it arrives safely, and to make sure that it is disbursed properly. And I think that I will devote a significant amount of time to making sure that that very expensive computer system is up and running and performs the way it should for commerce. The Chairman. And I suppose you will take some of your experience as the Seattle Police Chief, where you worked with different agencies, Federal and State, et cetera, to get people working together, moving in the same direction. Mr. Kerlikowske. Very much so. The fiscal environment is difficult and will continue to be difficult. The more that the different agencies can cooperate, and, particularly I think, the more the Federal Government can cooperate and work with State and local officials, the better. The Chairman. Well, I encourage you to be a leader. I know you are anyway. But take the reins, take over. Thank you. Thank you very much. Senator Hatch? Senator Hatch. Thank you, Mr. Chairman. I want to compliment both of the nominees to the Tax Court for being willing to serve and for the expertise that you bring to it. In particular, I am really pleased to see your--is it your aunt here who played tennis? Ms. Ashford. Yes. Senator Hatch. I remember going to South Africa at the height of Apartheid, and I really appreciate you being here today too, and the rest of the family--all of you. So you both are very competent, and we are going to support you as strongly as we possibly can, and we look forward to having you serve. These are important jobs, and I appreciate the humility that both of you display with really wanting to help people who really do not know where to go and what to do. So I want to congratulate both of you for your service and for your expertise, your background, and what you have been able to do with your lives. Mr. Kerlikowske, you do not get off quite as easy. But you are going to get off easy, because I think very highly of you. As I said in my opening statement, protecting the homeland is essential to our security, but trade is also very important to our economic security. So, if confirmed, and I believe you will be, as the next Commissioner of CBP, how will you ensure that trade functions receive high priority at CBP? Mr. Kerlikowske. There are two things that I would undertake. One is that I would continue with the meetings that I have had, but then in an official capacity, if confirmed, to make sure that the trade and also the travel community has an open door and clear lines of authority. I would also appoint two direct reports to me within CBP, one to serve as a liaison to the trade community and one to serve as a liaison to the travel community, so that those organizations would have a single point of contact that would be direct to me. I would also, of course, be open to all of those conversations with them. Senator Hatch. That is great. Intellectual property matters are an important part of our ability to both export and import innovative goods and services around the world. When we held a hearing to discuss the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013, we heard from the general counsel at the National Electrical Manufacturers Association, Mr. Clark Silcox, about the importance of IP protection. Mr. Silcox stressed the importance of ensuring that counterfeit and unsafe products that could potentially harm U.S. consumers do not cross over our borders. So, while we need strong intellectual property rights enforcement abroad, we also need strong enforcement at our borders. Please let us know what you would do, if confirmed as the next Commissioner of CBP, to ensure that our intellectual property laws are properly enforced at our Nation's borders. Mr. Kerlikowske. Senator, that issue has been made very clear to me. I can tell you that I have been impressed with the interagency work group that has been put together to protect intellectual property, and I also recognize that the power of innovation and new products is critical here in the United States. I would continue to build upon that interagency cooperation. Also, the Centers of Excellence that have been developed--10 of them now for CBP--provide subject matter expertise in this area so that there is one set of learning programs, one set of information that can be communicated, whether it is the port in Seattle or the port in Baltimore, on what to do be alert for. Also, I think we have to move faster. CBP will have to move faster to be able to get this information out. Waiting for days at a time is not going to work for me. Senator Hatch. Thank you. Let me just ask one more question. Several months ago, we held a hearing here to consider legislation reauthorizing Customs. At the hearing, David Cooper, the Global Customs Compliance Manager at Proctor and Gamble, discussed the damaging effects of counterfeit products and particularly the danger posed to consumers by counterfeit drugs. Now, Mr. Cooper described the ways P&G has collaborated with CBP to increase identification of counterfeit products at our borders. As the current drug czar, you know the importance of preventing unsafe drugs from entering the United States. So let us know what you would do, if confirmed, to make sure that unsafe drugs do not enter into the United States. Mr. Kerlikowske. Senator, I think there needs to be better communication and better collaboration with the Food and Drug Administration. I have been really privileged to be able to work with Dr. Hamburg now as the Administrator of FDA for 4\1/2\ years on the issue of opioids and prescription drug abuse issues and, also, precursor chemical issues that come into the United States. FDA, of course, has hold-and-release authority at these ports, but I think that, in my meetings with her and others, it will be critical that this level of knowledge and cooperation be expanded upon, particularly because at all of the ports at that 24/7 timeframe, there are CBP people present, but there are not always FDA people because of the staffing. So increasing the communication, education, et cetera, with CBP and FDA will be critical to that end. Senator Hatch. Mr. Chairman, I want to compliment Mr. Kerlikowske and our two nominees for the Court. You are really great people and you deserve our support, and we will do everything in our power to see that you get it as quickly as we can. I just want you to know that, all three of you. The Chairman. Thank you, Senator. Senator Grassley? Senator Grassley. Congratulations, all of you. I hope if I do not ask the judges any questions, you do not take it personally. I have a couple questions for Mr. K, if he would respond. You have some very good--I believe seven points that you want to focus on, if you are confirmed. They were in your opening statement. And I think they are fine, and I do not have any problems with them. None of them, though, dealt directly with border security, but rather, how to increase efficiencies and other things. Am I to assume from your priority list, which does not include much about overall border security, that you believe that we are already sufficient in that area? Mr. Kerlikowske. No, Senator. I was very cognizant of staying within my 5 minutes. But in my written testimony and in my discussion with various members of the staff, border security was particularly important. Having authored the Southwest Border Counternarcotics Strategy, having made probably now close to a dozen trips to the southwest border to work with State and local officials and to see the operations going on there, I clearly understand and recognize the importance of border security. I think that there have been significant improvements in border security. I think more needs to be done, and through technology, through the use of the resources that Congress has funded, I would make sure that those are used in a consistent way to increase border security. Senator Grassley. The second question deals with undocumented immigrants. I am concerned about the increased number of applicants who are filing for asylum or claiming credible fear at our ports of entry, especially at the southern border. We are now seeing 36,000 credible fear applications in a single year, and that was only 5,000 in the year 2008. I bring this up because Customs and Border Protection agents would be the first point of contact for these individuals. The Washington Times and the House Judiciary Committee have reported that drug cartels are using our asylum system to bypass immigration checkpoints. An internal Customs and Border Protection memo also details that. In one instance, a woman made a claim of asylum and, 3 months later, was apprehended by the border patrol checkpoint with more than $1 million worth of cocaine. If someone claims credible fear, they wait for their interview with an asylum officer. There is some discussion that more scrutiny needs to be given on this front, on the front end, so that they cannot exploit that loophole. A couple of questions. If confirmed, would you make it a priority to talk to agents and determine if our generous asylum process is being exploited? Mr. Kerlikowske. Senator, it is a very important issue, and I recognize the long history in the United States of being able to provide asylum to people who meet the standards. I know that the process can be rather lengthy. I have spent a career as a law enforcement officer, as a police chief, particularly, being out in the field, kind of being a hands-on individual, as Senator Cantwell mentioned. I would continue to do that, if I am confirmed as the Commissioner of CBP. I would look at this issue very carefully and understand its complexity, but I would not want this exploited in a way that would harm the United States. Senator Grassley. Well, I guess as a final point, I would ask if you--well, first of all, I want to make a point that I surely want your agents to find ways to address what I think is an abuse without compromising our tradition of asylum. And, if confirmed, then would you report back to me about actions that you will take to ensure that CBP agents are doing all they can to stop the abuse, including cooperation with the U.S. Citizenship and Immigration Service adjudicators? Mr. Kerlikowske. I will do that, Senator. Senator Grassley. Thank you very much. Thank you, Mr. Chairman. The Chairman. Thank you, Senator. Senator Schumer? Senator Schumer. Thank you, Mr. Chairman, and welcome to all the nominees, particularly to the one I know best, to my good friend Gil Kerlikowske, who did a great job in Buffalo before he moved to Seattle and many other places. He leaves a fine reputation in every place he goes and then leaves. [Laughter.] We wanted him to stay in Buffalo. He is a great chief. So I want to talk to you about our ports of entry, specifically at JFK in New York City and the Peace Bridge at the other end of our State, in Buffalo. JFK Airport in New York has the longest average Customs wait line in the country. Nearly 1,000 passengers per day experience greater than a 45-minute wait for inspection, some days greater than 60. In summer, average delays during peak hours exceeded 2 hours. That is not a good introduction to America or New York, obviously. Record-long wait times at JFK are limiting the amount of time that travelers spend in New York and are deterring further travel to New York City and to the rest of the country, New York being our biggest gateway. So Congress, as you know, is likely to pass an omnibus appropriations bill that will provide CBP with $165 million to hire 2,000 new CBP agents. I worked with Subcommittee Chairman Landrieu and Chairman Mikulski to try to make this happen. Can I have your commitment that, if you are confirmed, you will assign an adequate portion of the 2,000 new agents in our appropriations bill to address JFK's shortage? Mr. Kerlikowske. Senator, your point is absolutely excellent. People who are welcomed into this country after a lengthy travel do not need to wait many hours in line. I have been impressed with the work that CBP has done, not only in being courteous and respectful to people. There are improvements in technology. I am particularly heartened by the potential for the addition of 2,000 agents at our ports of entry, because I think that is absolutely critical. And I would certainly ensure that the ports with the longest wait times and the greatest traffic, those agents would be assigned to those locations. Senator Schumer. So that means JFK, because we have the longest wait time. Is that right? Mr. Kerlikowske. I think you are right, Senator. Senator Schumer. Thank you. Say no more. Next question. Buffalo, Peace Bridge. Last year, we also saw a dramatic increase in wait times for both passenger and commercial vehicles on the Peace Bridge in Buffalo, as you know. We are trying to get the western New York economy going again. One of the positive things is that Toronto is booming, and Buffalo is the major port of entry into the U.S. for the whole Toronto metropolitan area. That is very important to us, and the Peace Bridge is the major--there are others--but the major crossing point. The average commercial vehicle had to wait 29.4 minutes in fiscal year 2013. That is up about 25 percent. The average passenger vehicle had to wait 26.4 minutes. That is up 33 percent, and that is just average. There are hours and hours and hours of waiting, and trucks then decide not to come through the port of Buffalo and go somewhere else, because the waits are so much longer there. The situation is clearly unacceptable, as we need more agents, ushering travelers, sports fans, shoppers, commercial vehicles into western New York. A lot of Canadians come to shop in Buffalo because of the exchange rate and stuff like that, and this is obviously a deterrent there too. Secretary Johnson has already committed to me that he will provide more agents to the Peace Bridge, assuming we pass the pending appropriations bill. But since these agents are employees of CBP, will you also confirm here today that you will do everything you can to add more resources to speed up traffic along the Peace Bridge, and will you do everything you can to make the preclearance pilot, which has already successfully worked in my colleague Maria Cantwell's State and is just starting now in Buffalo--there are two pilots in the country, one in Washington State, one in Buffalo--a permanent reality? Mr. Kerlikowske. Senator, if I am confirmed--and my new boss has already assured you of that--I would work very hard to live up to that promise. Senator Schumer. Great. Mr. Chairman, I yield back the rest of my time. The Chairman. Thank you, Senator, very much. Senator Cantwell, you are next. Senator Cantwell. Thank you, Mr. Chairman. And again, Mr. Kerlikowske, thank you for your willingness to serve. My colleagues have already started on kind of a dual track of asking questions. Obviously, speed is essential and so is security, and it is one of the reasons why I am excited about your nomination to this position, because somebody who comes from the Pacific Northwest gets that so importantly. Nothing highlighted the importance of trade more than the falling down of the Skagit River Bridge curtailing I-5 traffic and costing us hundreds of millions of dollars in lost opportunity practically daily. So we have to get that right. Speed matters. But I am glad that you mentioned the word ``transparency'' in your statement and that that is one of your goals. From a Pacific Northwest point of view, there are two words that are incredibly important to me and to my constituents. One is the issue of technology and the use of technology, and the other is privacy. I am hoping that in this position you will be able to further both of those issues and find the right balance. So I wanted to ask you, will you do everything to protect the constitutional rights of U.S. citizens on their rights to privacy in this position? Mr. Kerlikowske. Certainly, Senator, I would very much do that, if I am confirmed in this position. And I think my history in Seattle, in particular, is helpful, as police chief. I put in the cameras, the video cameras inside the police cars so that every police car would have an audio and a visual recording of every traffic stop. We instituted a number of checks and balances. Having been police chief there during 9/ 11, you know that the city of Seattle operates under a unique intelligence oversight ombudsman agreement similar to what existed in New York City and what is called the Handschu agreement. I was told that perhaps it would be time, after 9/11, that that oversight mechanism, the ombudsman, would not be as necessary given the threat of terrorism in the country. I looked at that very carefully and believed that we could very much operate and maintain a safe city at the same time that we had transparency and the ombudsman to oversee our intelligence activities, and I would continue that at CBP. Senator Cantwell. Well, I think these issues are important. Obviously, CBP--prior to your nomination--caught a lot of people off guard out on the Olympic Peninsula showing up in unmarked cars. People were not thinking that they were 25 miles from the border. They were thinking they were out on a Sunday afternoon drive and the next thing you know, they were being pulled over by somebody, and they did not even recognize the markings. So transparency is very important to this process. But you might have seen the Washington Post article today on unmanned aerial vehicles. The Commerce Committee is having a hearing this afternoon on unmanned aerial vehicles. Now, Customs and Border Protection can make great use of this technology, whether we are talking about the drug interdiction off the coast of Washington and helping the Coast Guard or our very porous borders that cannot have people everywhere. But, obviously, one of the big privacy concerns is that somehow information will be collected and stored and then accessed by other individuals that may invade the personal privacy rights of U.S. citizens. So I hope that you will work, as the head of this organization, to pay attention to these privacy issues, to see that technology moves forward, but that we come up with a firm and solid ground for the privacy rights of U.S. citizens under the Fourth and Fourteenth Amendments to be protected. Mr. Kerlikowske. I very much understand that, Senator, and I would adhere to that. Senator Cantwell. Thank you. Thank you, Mr. Chairman. The Chairman. Thank you, Senator. Senator Thune? Senator Thune. Mr. Chairman, I just walked in. I would be happy to yield to my neighbor here from North Carolina who has been waiting patiently. The Chairman. That is right. Actually, next on the list is Senator Carper. Senator Carper. I am happy to yield to Senator Burr. Senator Burr. Mr. Chairman and my colleagues, thank you very much. Judge Marvel, thank you for your service. Ms. Ashford, your connections to North Carolina just made you a certainty of getting through. Ms. Ashford. Thank you. Senator Burr. I want you to know that. Mr. Kerlikowske, thank you for what you do, and I just have one question for you. In November 2012 and again in November 2013, as the Director of Drug Policy, you sent letters to the Health Minister of Canada suggesting that the two governments work together in determining whether or not to allow non-abusive deterrent formulations of tamper-resistant medicines to be approved. Let me just speed forward. I understand that you met recently with your Canadian counterparts to pursue the alignment on abuse deterrent formulations. And I will have some questions for the record that are a little more specific. Let me ask you today, can you give us an update on how those conversations took place and, more specifically, how Border Patrol can be utilized in a way to assure us that any harmonization is accomplished in a successful way? Mr. Kerlikowske. Thank you, Senator. This has been an important issue because of the number of deaths, over 16,000, due to prescription drugs. Drug deaths now in the United States surpass deaths due to accidents, both automobile fatalities and also gunshot wounds. So we have been focused on these prescription drugs which come right out of, oftentimes, our medicine cabinet. The pharmaceutical industry has worked hard to develop abuse-resistant formulas that cannot be crushed or injected, and that has been helpful. Unfortunately, that has not occurred in Canada, and we know from, in fact, Milwaukee that some of these drugs have been detected. So I met with the Health Minister now 2 years ago to talk about that. And, as you know, they have a very different system of government in which their provinces hold a great amount of authority, and it is not the same level of authority that our FDA would have. Since that time, there is a new Health Minister, and I have not had the opportunity to meet with that person, but I am continuing to work to see that abuse-resistant formulas be recognized as important in Canada. And just as importantly to the United States, if those are the only ones that are available, we would have far less to be concerned about from them coming into the United States. Senator Burr. Well, I thank you for recognizing the threat and encourage you to continue to work with our partners to the north to try to harmonize what they do to match the threat that we are presented with. In your new role, I hope you will use your position to force that harmonization in any way you can. Thank you for this. Thank you, Mr. Chairman. The Chairman. Thank you very much, Senator. Senator Menendez, you are next. Senator Menendez. Thank you, Mr. Chairman. The Chairman. Mr. Chairman. Senator Menendez. We look forward to your appearance before the Foreign Relations Committee, Mr. Chairman, which I am sure will be very successful. [Laughter.] Mr. Chairman, I appreciate all of the witnesses here. My focus is on Mr. Kerlikowske, whom I have had the pleasure of having some discussions with. I know that, while the committee's focus is primarily from the Customs point of view, since this is the one hearing that will be held, I wanted to make sure that I broach some other issues on the other side of your portfolio, and that is on the CBP use-of-force policy. I look at that, and since January of 2010, at least 19 people have died as a result of alleged excessive force by CBP officials. Yesterday, the DHS OIG released a report on the CBP use-of-force policies, outlining some first steps that the agency is taking, such as tracking the use-of-force incidents, and, frankly, I think more can be done. When a young person throws a rock across the border, toward the border or a border agent, some agents respond with a gun, and others do not seem to respond at all. There seems to be some need for consistency in the response to these incidents and how we treat them. Several members of Congress and I asked the DHS Office of Inspector General to complete a review of CBP's use-of-force policy and practice, and they recently issued their recommendations. In addition, CBP conducted its own review and sought the expertise of an outside review by the Police Executive Research Forum. As a result of these reviews, they announced that there will be a series of reforms based on more than 90 recommendations from these reviews. So, obviously, there is an issue here, because we have had both the agency and those outside of the agency look at this question. So my question to you is, will you commit to implementing the recommendations issued by the Police Executive Research Forum and providie Congress and the public with maximum transparency regarding CBP's use-of-force policy, including release of that report? Mr. Kerlikowske. Senator, transparency in a use-of-force policy in any law enforcement agency is critical. If you do not have the trust and the cooperation of the people you serve and they do not understand or they are not knowledgeable of your policies, it makes that trust and cooperation very difficult. I have not been in a law enforcement agency in which the specifics of the use-of-force policy were not available to the general public, and I would work very hard to see that that is done within CBP. Having spent 4 decades in law enforcement, I clearly recognize the difficulties around use-of-force policy, including the training, including the equipment, including the changes that may have to be implemented in culture. I have to tell you, I have been very heartened by the briefings that I have had by Chief Fisher, and also the statements that the acting Commissioner, Tom Winkowski, has made to the public about the changes and reviews that are underway. I looked at the reports that have been provided to me. I am not familiar with every specific recommendation, but I think I have a long and, I really believe, a well-deserved reputation in law enforcement for making sure that people are held accountable. Senator Menendez. I appreciate that, and before my time runs out, what I want to know is--I would like to get a commitment from you that you will report back to us about what those recommendations were and what recommendations you are going to follow and which ones are you not. I want our people to be protected at all times. By the same token, I do not want an unnecessary death, and there is a lack of uniformity of policy that exists. So, whether it is up to the individual to shoot or not shoot--a badge gives you your legal authority, a gun gives you your ultimate authority, and we need to know that we are doing it in the best possible way. So, can I get that commitment from you? Mr. Kerlikowske. I know that the discussion is underway about reports and what can be released. I would assure you that I would be responsive to these concerns, that I would institute the changes and the improvements in training policy and equipment that are necessary to bring a level of confidence, not only to the people in CBP, but also to the people whom we serve, and I would assure you of that, Senator. Senator Menendez. Mr. Chairman, I have one more question, if I may, please. This is going to be very important to me as I decide. So, in following on, I would like to discuss CBP's detention facilities and conditions issues. I have visited some of these facilities. We detain people because of the power of the Federal Government. And when we would detain someone--including, unfortunately, hundreds of cases that my office has seen of U.S. citizens and legal permanent residents unlawfully detained in immigration facilities because of the happenstance of who they are, where they live, and what they look like--it is unacceptable to have their constitutional rights violated. So, when we have somebody in a detention facility, we do it by the power of the Federal Government, and their safety and security during that period of time is not delegable to anyone else. It is ultimately our responsibility. Many of these facilities have reports of detailed denial of medical care, inadequate food and water, extreme temperatures in hold rooms, inadequate access to food, and a whole host of other issues. I am especially concerned about the numbers of unaccompanied minors suffering while in CBP custody. Can you support a similar transparent effort to make sure that we have the appropriate standards and safeguards for the security of individuals we detain--sometimes U.S. citizens and legal permanent residents, unlawfully so--to ensure their safety and security? And will you work to make sure that these detention facilities, whether they are ones that we operate directly or that we contract out--and this is where most of the problems end up being, when we contract out--live up to a standard that we can respect to assure the safety and security of individuals who are there? Mr. Kerlikowske. Senator, if I am confirmed, I would very quickly undertake a personal review and inspection of some of these facilities, including those temporary detention facilities. I would also tell you I have had a conversation with Dan Tangherlini from GSA about facilities and about the need for CBP, if I am confirmed, to work very closely with GSA on infrastructure and the type of facilities that are needed. I would also undertake the medical review that you initiated. Senator Menendez. Thank you, Mr. Chairman. I appreciate it. The Chairman. Thank you, Mr. Chairman. Senator Thune? Senator Thune. Thank you, Mr. Chairman. I just want to welcome the nominees who are before us here this morning. I would like to, Mr. Kerlikowske, ask you or at least visit with you a little bit about something that I think you know, because we have talked about it in my office. But Senator Wyden and I have been engaged in ongoing dialogue with the CBP over the last few years regarding duties that have gone uncollected on imports of Chinese honey, garlic, crawfish, and mushrooms. You and I discussed this issue when we met last year, and, while I greatly appreciate the effort that the CBP has made to work with my staff on this matter, I believe more remains to be done. Just as an example, on January 2nd, we received a letter from acting CBP Commissioner Winkowski that stated that there were roughly $140 million in imports of Chinese honey between 2000 and 2007, and that there is more than $100 million in bonds posted on these imports not yet collected. Yet, we still do not know how much of this amount is currently in litigation and how much is likely to be collected. It is important, I would say, to the South Dakota honey producers that duties owed on these imports are collected, and I hope that, if confirmed, CBP will provide you a full accounting of the outstanding bonds at issue and that you will continue CBP's efforts toward a comprehensive collection strategy. I want to ask a question. Last year, I introduced a bill that would increase the dollar limit below which imports are not subject to tariffs in formal entry procedures. It is known as the de miminis level. What the bill would do is, it would raise this level--which has not been updated in 20 years--from $200 to $800. It is a provision that is included in the Customs reauthorization bill that I hope this committee is going to consider at some point soon, and is supported by a broad range of companies, including express delivery companies like UPS and FedEx. So my question is, would you agree that reducing the paperwork burdens on private companies and on CBP associated with imports is important and will have a positive economic benefit? Mr. Kerlikowske. Senator, every trade group--and I have met with UPS, FedEx, et cetera. Every trade group is very encouraged by the fact that automation is underway, and they have put their own time and their own resources into making sure that they will be a part of the ACE system and others. Making things more transparent through automation, making them easier and more efficient and less costly, would be a major goal, if I am confirmed. Senator Thune. Well, hopefully, we can get you some legislation too that would help get that issue addressed in statute and get the law updated, which is 20 years old, as I mentioned. In October of last year, I sent a letter to CBP regarding exclusion orders issued by the International Trade Commission under section 337 of the Tariff Act, which, as you know, deals with enforcement of intellectual property rights. And I was joined on that letter by Senators Wyden, Portman, and Cantwell. We sent the letter due to concerns from U.S. companies that these orders are not being effectively enforced. The response I received indicates that CBP is in the process of making changes to how it implements these orders, such as by developing a process by which more parties that are impacted will have an opportunity to make their views known to CBP. The letter states that CBP believes these process reforms will have, and I quote, ``tremendous benefits.'' Do you know when CBP intends to implement the reforms I just mentioned, and do you have any views regarding how CBP can better coordinate with the International Trade Commission regarding enforcement of exclusion orders? Mr. Kerlikowske. Senator, I have had briefings on some of this. I certainly do not know the answer to that question about when CBP would undertake and be responsive on the changes necessary. But those communities that have briefed me and the people within CBP are very intent on enforcing those rules. I also know that it is complex, and it can be a bit problematic. If I am in the position and if I am confirmed, I would certainly make sure that the enforcement of all of the rules and regulations around that would take place. Senator Thune. Mr. Chairman, I have a couple of other questions, but they are questions I think I can submit for the record. Thank you. The Chairman. Thank you, Senator. The next Senator to ask questions is Senator Carper. Senator Carper, as we all know, is chairman of the Homeland Security and Governmental Affairs Committee, and I must say he does a super job. I attend many meetings around here where Chairman Carper makes lots of good points about what they are doing at Homeland Security, and I must say he does a super job. I might also say, Mr. Kerlikowske, he came up to me on the floor not too long ago and said, we have this great person, we have to get him confirmed right away, and it was you. He is a great advocate for the department, the former Governor from a great State. Senator Carper, it is all yours. Senator Carper. Thank you, Mr. Chairman. I would just say (this is off the record), when the word came out that Senator Baucus was going to be nominated to be Ambassador to China--we are very fond of him, and he does a great job--I told him, I walked up to him, and I said, ``I am putting a hold on your nomination.'' [Laughter.] Well, I had to get in the elevator and disappear, and he would pop back out, and he would say, ``Oh no you're not.'' We are not going to put a hold on your nominations here today. I must say, sitting next to this guy from Maryland, my friend, I am a bit jealous that we cannot claim any of you for our State, but we are honored that we can claim you for our country. I want to, as chairman of the Homeland Security Committee in the Senate, I just want to focus more of my questions, more of my comments, if I may, on Mr. Kerlikowske. Colleagues, it has been 5 years since we had a Senate- confirmed Commissioner. Think about that. Five years. Five years of acting folks in those positions. It is a very, very hard job on a good day, as you know, a huge job, with huge responsibilities. And to go 5 years without a Senate-confirmed Commissioner is, I just think, inexcusable. We will not go into the details of why that has happened, but I am delighted we have a candidate with Gil's qualifications, with his experience, with his knowledge, and with his leadership skills. We are just very, very fortunate, and thank you for your willingness to serve. We work in a day, we work in a time where, even 5 years into this administration, we still have too often what I call executive branch Swiss cheese: leadership positions at the very top are vacant. In some cases, it is the responsibility of the administration for not nominating people and vetting them in a timely way. In other instances, it is our responsibility. So at least we are here and have you here today, and we have this hearing. I just want to say, Mr. Chairman, thank you so much for expediting this hearing and bringing us to this occasion. My hope is that we can get you confirmed. We have a new leadership team in place at the Department of Homeland Security, with a new Secretary, a new Deputy Secretary, and I think you will be a great addition to that team. If confirmed, Mr. Kerlikowske will not only be responsible, as we have heard here today, for facilitating legitimate travel and trade, but also for securing our land, air, and sea borders, as well as stemming the flow of undocumented illegal immigrants. If I heard Mr. Thune over there right, he was talking about honey. And all kinds of commodities are coming into and out of our country. We are trying to patrol a 2,000-mile border on the border of Mexico, a 4,000-mile border on Canada, with tens of thousands of Border Patrol agents and many more who work in the ports of entry, to make possible two things: one, the expeditious movement of travel, trade, and tourism into and out of our country and, at the same time, to protect us from all kinds of evils. It is a hard job, a hard job, and we are grateful that you are willing to work in that neighborhood. With that having been said, I want to ask a couple of questions, Mr. Chairman. First of all, if confirmed--and my hope is you will be, Gil--what would be maybe your three highest priorities as Commissioner? And, if you will, make sure that you work into there some comments about morale, morale of the troops. It is not good in the department. It is actually pretty good at CIS. That is the job that Alejandro Mayorkas had, head of the U.S. Citizenship and Immigration Services. Morale there is actually pretty good, but throughout the department it is not, and we have real concerns about morale in CBP. So just talk about that and maybe your other three highest priorities, please. Mr. Kerlikowske. Morale is one of the ones that I mentioned--and I did not put them in any particular order-- those four that I listed or went through in my oral testimony. I know that, looking at the Federal surveys, certainly DHS has been at the bottom. So there is really nowhere to go but up. Having been in police departments and law enforcement agencies which often deal with morale issues, I know that close cooperation and communication, even though we will not always agree with the unions that represent the people in CBP, is going to be critical. And we need to have that open door and better internal communications with the employees. And I would undertake very quickly, if I am confirmed, a rather lengthy visit to a number of our ports and a number of our locations to actually meet and talk with and listen--probably more importantly, to listen to the people who are actually doing the job. So morale is particularly important. Using the resources that Congress has provided to improve efficiency, particularly through technology--whether it is in areas of tunnel detection, ports of entry, the kiosks, on and on--the technology is a game-changer for that. I would also tell you that I think that, even though there has not been a confirmed Commissioner, the people who have served, and particularly the person whom I have been working with over these months, Acting Commissioner Tom Winkowski--with his 38 years of experience at CBP--I think have done a terrific job. But there are a number of other, as you said, Swiss cheese or acting positions throughout CBP. So filling those positions, but also developing the education and the training and the leadership programs so that this would not continue on in the future, would be important to me. Those would be three areas. Senator Carper. Great. Thank you. And I want to say publicly that we appreciate each of the people who has served in an acting capacity, acting as Commissioner for the last 5 years, but again, we need Senate-confirmed leadership, and we are happy that you are going to hopefully be able to provide that. People a lot smarter than I have described CBP's security and trade facilitation missions as two sides of the same coin. The missions, as you know, are interrelated and frequently complementary. Occasionally, however, the security mission and the trade facilitation mission clash with one another and we see long lines at our land and our air and our seaports of entry. Just talk with us a little bit about how you might go about balancing those two missions for CBP to ensure that, while we have meaningful, strong border protection on the one side, we do so without unduly restricting the trade that we know is important to all of our countries. Mr. Kerlikowske. Senator, I think that the potential for 2,000 additional agents at our ports of entry is absolutely critical. To reduce those wait times and to allow people through on legitimate travel would be particularly helpful and important. Watching the CBP personnel at those ports of entry, and seeing the level of professionalism and courtesy that they show to people while in a very demanding job, is important, and I think they need to have the support and the recognition of the Commissioner for the work that they do 24/7 in these locations. Cargo is also particularly important, and I know that CBP being stationed in over 40 countries, with the ability to do clearance of cargo before it ever arrives at our ports, to know that that cargo is not only going to be officially handled, but is also safe and does not contain hazardous material or threats, will be very important. Having worked in a city in which the entire port was in the downtown core, I recognize that very clearly. Senator Carper. Mr. Chairman, if I could just add one quick P.S. In less than an hour, we are going to be voting, as you know, on, I think, the omnibus appropriations bill, which includes funding for the Department of Homeland Security, including a lot of money for CBP. In the immigration reform bill that has passed, there are huge amounts of money to add to, literally double, the size of the force of the Border Patrol. I do not know that that is the best investment for our taxpayer dollars, but I do know that there are force multipliers, technology that is included--radar systems, VADER systems, all kinds of new aviation, lighter equipment as well--that is going to really enhance the ability of all those thousands of men and women who are working the Border Patrol for us, working the border for us, to be able to do their jobs better without adding the kind of debt to our Treasury. So, thank you very much. I am pleased that you are willing to serve. I think if you are going to pick somebody out of central casting for this job, I think we have the guy. Five years is a long time to wait, but you are worth waiting for. Thank you. The Chairman. Thank you very much, Senator. Senator Cardin? Senator Cardin. Thank you, Mr. Chairman. Once again, I thank all three of our nominees. Mr. Kerlikowske, I want to follow up on Senator Menendez's point in a little broader context. As you point out in your testimony, if confirmed, you will head up the largest law enforcement organization in the United States. And the Federal Government needs to lead by example. In the immigration reform bill that passed the U.S. Senate, we took up the issue of racial profiling, because we know how wrong it is, and that relates to some of the issues that Senator Menendez raised. But in a broader context, it compromises proper law enforcement; it compromises the support of communities that you need in order to be able to carry out the mission. So can you share with this committee your commitment to deal with proper law enforcement, if you are confirmed, and to deal with the risk of racial profiling? Mr. Kerlikowske. Senator Cardin, I can certainly assure you that during my career as the police commissioner in Buffalo, working for Janet Reno, and here for 2 years in the COPS office as the deputy and then the 9 years in Seattle, the racial profiling issue is significant for a host of reasons. No law enforcement agency is going to be effective at reducing crime or protecting people if they do not have the trust of the people whom they serve. And if people believe that they are being unfairly or unjustly targeted, they are not going to be cooperative in coming forward as witnesses. They are not going to report crimes. So it is an absolute tragedy if these things are not dealt with in a fair and transparent manner. The programs and the processes that I put into place in Buffalo, that I worked with here in the administration with Attorney General Reno, and the work that we did in Seattle to be transparent, to provide outside review, to have video technology of every traffic stop that was made, are all ways of reporting back to the people whom we serve that we are not going to tolerate unfair or unjust or improper tactics. Senator Cardin. Thank you for that answer. I would urge you to share that information, because I think it is helpful. When the large law enforcement agencies have developed the right procedures and the right oversight and they work, it gives more confidence to the local government law enforcement agencies. I thank you for that answer, and I appreciate it very much. Judge Marvel, when I was first elected to the House of Representatives, you were a practicing attorney in tax law, and you were very kind to give me advice on tax law. I was a young member of the Ways and Means Committee, and we talked frequently about ways that we can improve our tax code. The chairman already asked you a question about the policy issue. I want to get to the administrative side just for one moment. We have a new IRS Commissioner, recently confirmed. When I was in the House working with then-Congressman Portman, we tried to reform the IRS to make it more consumer-friendly. You talked about a consumer-friendly Tax Court. I would hope you would share with us, not necessarily today, but be willing to share with us your views as to how we can improve the administration of our tax system. The policies are hard enough for us to figure out. And we certainly appreciate your views on policy. But what can we do to make it easier for tax compliance and for the tax system to work in a more efficient way? Judge Marvel. Senator Cardin, by ``we,'' you mean Congress? Senator Cardin. Yes. Judge Marvel. As a general proposition, I think Congress has done a very good job in setting an administrative framework that will permit the Internal Revenue Service to deal reasonably well with the taxpayers that it is serving. One of the problems is that, if you do not have the tax people talking with the taxpayers in a realistic way, the communication breaks down, and the process then breaks down. Anything that could be done to improve the communication, the effectiveness of it, would benefit everybody who is involved in the compliance system, from audit all the way through to collection and into the Court. And I am just not sure how Congress could do much more than it already has done. It really needs the people involved to do a good job in working with each other to communicate. Senator Cardin. Well, we might ask you how we can do a better oversight job then, in following up on that. If I may, Mr. Chairman, I would like to ask one question of Ms. Ashford, having to deal with access. I think Judge Marvel properly pointed out that the people who will appear before your court, some will be very sophisticated and have very competent representation. Others will be there without that type of advantage, but will still have a concern. You are dealing with their livelihood; you are dealing with areas of major concern. What commitment can you make to us that you will ensure equal access to all citizens to the Tax Court? Ms. Ashford. Thank you for your question, Senator Cardin. If confirmed as Tax Court judge, I will assure you that I will do the best job I can as a Tax Court judge to ensure that taxpayers are treated fairly, also expeditiously and impartially. I want to ensure that I work with taxpayers so they understand the system, get their day in court, and work with, as well, the government, the IRS, to resolve the tax controversies. Senator Cardin. Thank you. Thank you, Mr. Chairman. The Chairman. Thank you, Senator. I have one question for Mr. Kerlikowske, and that is with respect to northern border Customs issues. In the State of Montana, there are about 550 miles across the northern Montana border next to Canada. I think there are 12 border stations. Only three are open 24 hours a day. In the legislation that Senator Hatch and I are urging the Congress to adopt, we are suggesting there be a pilot program to increase or look at the possibility of more border stations for underserved areas. It is not just the State of Montana that is underserved. There are other areas along the border that are underserved. I know resources are stretched. This is largely a resource issue. But can you tell me what commitment you will make to assure that the underserved northern border areas also have adequate access to Canada and back to the United States, because it is a bit difficult in many parts of the country right now. Mr. Kerlikowske. Senator, I am very much aware of this, having been to Montana several months ago--you were unable to join us--with Senator Tester, when that was made very apparent to me. I think the idea that you have proffered of an experiment and whether or not it has benefits then to the economy both nationally, but also to that local economy, is one that I would, if confirmed, be very willing to undertake. The Chairman. It is important. As you know, it is sort of a chicken-and-egg question. The more there is access, the more there is trade. Sometimes the department says, ``Well, show us that there is going to be more trade, so we can open it up.'' I am just suggesting that if we open it up, they will come. There is pent-up demand on both sides, and I urge you strongly to pursue those pilot projects. I have no more questions. I thank all three of you, very, very, very much. I somewhat apologize to you, Judge Marvel and Ms. Ashford, for all the questions that you did not get. That is a double- edged sword. But you have learned a lot about Customs and Border Protection. So, if there are any litigants who appear before you, you are going to have a good background on what they are doing or not doing, et cetera. But thank you very much. The American people really appreciate all that you do. They probably do not appreciate it enough, do not know how hard you work and how creative, say, you are, Judge Marvel, in your courtroom and in fashioning remedies that make a lot of sense and in being very sensitive to the litigants so you find the proper result. So I just thank you for that. I know, Ms. Ashford, you are going to do the same thing, and you are all just very bright, very intelligent, very capable, very dedicated people. Just to speak on behalf of my State of Montana, the people whom I represent--and I think I can speak on behalf of others in the country--just thank you so, so much for your work and for the work you are about to undertake. I think the most noble human endeavor is service. Each of us serves in different ways: family, friends, local community. It is service--that is what really distinguishes, I think, each of us as a person, and it is so important to our country. People serve in different capacities, and you have all served in many capacities, and that seems to be your calling. On behalf of a lot of people, I just thank you very much for that dedication. I know you are going to set a great example, the role model you are going to provide, so just thank you so much. I know, I am just looking at you, Ms. Ashford, and I see your aunt over here, and she must have been a great role model for you, let alone your parents and everybody else in your life. So thank you very much. We are going to try to get you reported out of this committee as quickly as possible. I am hoping just a matter of--I do not know, but very, very quickly, because it is important that you get on the job. Thank you very much. The hearing is adjourned. [Whereupon, at 11:49 a.m., the hearing was concluded.] A P P E N D I X Additional Material Submitted for the Record ---------- [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Communication [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]