STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS; Congressional Record Vol. 165, No. 70
(Senate - April 30, 2019)

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[Pages S2519-S2523]
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          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. KAINE (for himself, Ms. Collins, Mr. King, Ms. Hassan, Mr. 
        Blumenthal, Mr. Whitehouse, Ms. Baldwin, Mrs. Shaheen, Mr. 
        Menendez, Ms. Klobuchar, Ms. Cortez Masto, Mr. Wyden, Ms. 
        Smith, Mrs. Feinstein, Mr. Booker, Mr. Merkley, Ms. Harris, and 
        Ms. Cantwell):
  S. 1246. A bill to extend the protections of the Fair Housing Act to 
persons suffering discrimination on the basis of sexual orientation or 
gender identity, and for other purposes; to the Committee on the 
Judiciary.
  Mr. KAINE. Mr. President, I rise today to re-introduce the Fair and 
Equal Housing Act of 2019, legislation to ensure equal housing 
opportunities for all Americans. This bipartisan bill would protect 
Americans from housing discrimination based on gender identity and 
sexual orientation. No American should be turned away from a home they 
love because of who they love.

[[Page S2520]]

  I began my career as a civil rights attorney. My initial focus was on 
fair housing, and I learned early on that a home is more than just 
structure or a shelter. A home plays an integral role in one's 
identity, and it is central to the life of every American.
  Housing discrimination nevertheless continues to plague many 
Americans. And it is a reality for LGBT Americans because of incomplete 
protections in the Fair Housing Act (FHA), the landmark Federal housing 
law.
  The FHA prohibits housing discrimination based on race, color, 
religion, national origin, sex, familial status, or disability. It does 
not, however, protect against discrimination based upon sexual 
orientation or gender. More than 20 states and over 200 localities 
safeguard sexual orientation and gender identify in their housing 
discrimination laws. That's telling. It's time for the federal 
government to do the same.
  A study released this month analyzed national mortgage data from 1990 
to 2015. It found that same-sex applicants were 73 percent more likely 
to be denied approval for a mortgage than opposite-sex couples.
  The study also found that same-sex couples often pay more for their 
loans in interest and fees. This despite the fact that the study found 
no evidence that same-sex couples carried a higher default risk. In 
fact, the study's findings suggest that same-sex borrowers may perform 
better. The analysis indicated that, on average, same-sex couples paid 
0.2 percent more in interest and fees, which adds up to as much as $86 
million per year.
  These findings confirm the need to include gender identity and sexual 
orientation as protected classes under federal housing laws. Loan 
decisions should be based on fundamental economic considerations, not 
race, religion, sexual orientation or gender.
  The job of perfecting our Union is an ongoing quest requiring 
continued stewardship. Our history is replete with examples of manifest 
action from the Bill of Rights, to the 14th Amendment, to the Civil 
Rights Act of 1964. The Fair and Equal Housing Act of 2019 is one more 
step in our longer journey to perfect our Union and to extinguish 
discrimination in places which call for our leadership. I urge my 
colleagues to join us in support of this legislation.
                                 ______
                                 
      By Mr. DURBIN (for himself, Mrs. Gillibrand, Mr. Schatz, Mr. Van 
        Hollen, and Ms. Baldwin):
  S. 1249. A bill to prioritize funding for an expanded and sustained 
national investment in basic science research; to the Committee on the 
Budget.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1249

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``American Innovation Act''.

     SEC. 2. CAP ADJUSTMENT.

       (a) In General.--Section 251(b)(2) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     901(b)(2)) is amended--
       (1) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (2) by inserting after subparagraph (C), the following:
       ``(D) Basic science research.--
       ``(i) National science foundation.--If a bill or joint 
     resolution making appropriations for a fiscal year is enacted 
     that specifies amounts for the National Science Foundation, 
     then the adjustments for that fiscal year shall be the amount 
     of additional new budget authority provided in that Act for 
     such programs for that fiscal year, but shall not exceed--

       ``(I) for fiscal year 2020, $565,000,000 in additional new 
     budget authority;
       ``(II) for fiscal year 2021, $1,170,000,000 in additional 
     new budget authority;
       ``(III) for fiscal year 2022, $1,820,000,000 in additional 
     new budget authority;
       ``(IV) for fiscal year 2023, $2,510,000,000 in additional 
     new budget authority; and
       ``(V) for fiscal year 2024, $3,250,000,000 in additional 
     new budget authority.

       ``(ii) Department of energy, office of science.--If a bill 
     or joint resolution making appropriations for a fiscal year 
     is enacted that specifies amounts for the Office of Science 
     at the Department of Energy, then the adjustments for that 
     fiscal year shall be the amount of additional new budget 
     authority provided in that Act for such programs for that 
     fiscal year, but shall not exceed--

       ``(I) for fiscal year 2020, $461,000,000 in additional new 
     budget authority;
       ``(II) for fiscal year 2021, $954,000,000 in additional new 
     budget authority;
       ``(III) for fiscal year 2022, $1,480,000,000 in additional 
     new budget authority;
       ``(IV) for fiscal year 2023, $2,050,000,000 in additional 
     new budget authority; and
       ``(V) for fiscal year 2024, $2,650,000,000 in additional 
     new budget authority.

       ``(iii) Department of defense science and technology 
     programs.--If a bill or joint resolution making 
     appropriations for a fiscal year is enacted that specifies 
     amounts for the Department of Defense science and technology 
     programs, then the adjustments for that fiscal year shall be 
     the amount of additional new budget authority provided in 
     that Act for such programs for that fiscal year, but shall 
     not exceed--

       ``(I) for fiscal year 2020, $1,120,000,000 in additional 
     new budget authority;
       ``(II) for fiscal year 2021, $2,310,000,000 in additional 
     new budget authority;
       ``(III) for fiscal year 2022, $3,590,000,000 in additional 
     new budget authority;
       ``(IV) for fiscal year 2023, $4,960,000,000 in additional 
     new budget authority; and
       ``(V) for fiscal year 2024, $6,430,000,000 in additional 
     new budget authority.

       ``(iv) National institute of standards and technology 
     scientific and technical research and services.--If a bill or 
     joint resolution making appropriations for a fiscal year is 
     enacted that specifies amounts for the scientific and 
     technical research and services of the National Institute of 
     Standards and Technology at the Department of Commerce, then 
     the adjustments for that fiscal year shall be the amount of 
     additional new budget authority provided in that Act for such 
     programs for that fiscal year, but shall not exceed--

       ``(I) for fiscal year 2020, $51,000,000 in additional new 
     budget authority;
       ``(II) for fiscal year 2021, $105,000,000 in additional new 
     budget authority;
       ``(III) for fiscal year 2022, $163,000,000 in additional 
     new budget authority;
       ``(IV) for fiscal year 2023, $225,000,000 in additional new 
     budget authority; and
       ``(V) for fiscal year 2024, $292,000,000 in additional new 
     budget authority.

       ``(v) National aeronautics and space administration science 
     mission directorate.--If a bill or joint resolution making 
     appropriations for a fiscal year is enacted that specifies 
     amounts for the Science Mission Directorate at the National 
     Aeronautics and Space Administration, then the adjustments 
     for that fiscal year shall be the amount of additional new 
     budget authority provided in that Act for such programs for 
     that fiscal year, but shall not exceed--

       ``(I) for fiscal year 2020, $483,000,000 in additional new 
     budget authority;
       ``(II) for fiscal year 2021, $1,000,000,000 in additional 
     new budget authority;
       ``(III) for fiscal year 2022, $1,500,000,000 in additional 
     new budget authority;
       ``(IV) for fiscal year 2023, $2,150,000,000 in additional 
     new budget authority; and
       ``(V) for fiscal year 2024, $2,780,000,000 in additional 
     new budget authority.

       ``(vi) Definitions.--As used in this subparagraph:

       ``(I) Additional new budget authority.--The term 
     `additional new budget authority' means--

       ``(aa) with respect to the National Science Foundation, the 
     amount provided for a fiscal year, in excess of the amount 
     provided in fiscal year 2019, in an appropriation Act and 
     specified to support the National Science Foundation;
       ``(bb) with respect to the Department of Energy Office of 
     Science, the amount provided for a fiscal year, in excess of 
     the amount provided in fiscal year 2019, in an appropriation 
     Act and specified to support the Department of Energy Office 
     of Science;
       ``(cc) with respect to the Department of Defense science 
     and technology programs, the amount provided for a fiscal 
     year, in excess of the amount provided in fiscal year 2019, 
     in an appropriation Act and specified to support the 
     Department of Defense science and technology programs;
       ``(dd) with respect to the National Institute of Standards 
     and Technology scientific and technical research services, 
     the amount provided for a fiscal year, in excess of the 
     amount provided in fiscal year 2019, in an appropriation Act 
     and specified to support the National Institute of Standards 
     and Technology scientific and technical research services; 
     and
       ``(ee) with respect to the National Aeronautics and Space 
     Administration Science Mission Directorate, the amount 
     provided for a fiscal year, in excess of the amount provided 
     in fiscal year 2019, in an appropriation Act and specified to 
     support the National Aeronautics and Space Administration 
     Science Mission Directorate.

       ``(II) Department of defense science and technology 
     programs.--The term `Department of Defense science and 
     technology programs' means the appropriations accounts that 
     support the various institutes, offices, and centers that 
     make up the Department of Defense science and technology 
     programs.
       ``(III) Department of energy office of science.--The term 
     `Department of Energy Office of Science' means the 
     appropriations accounts that support the various institutes, 
     offices, and centers that make up the Department of Energy 
     Office of Science.
       ``(IV) National aeronautics and space administration 
     science mission directorate.--The term `National Aeronautics 
     and Space Administration Science Mission Directorate' means 
     the appropriations accounts that support the various 
     institutes,

[[Page S2521]]

     offices, and centers that make up the National Aeronautics 
     and Space Administration Science Mission Directorate.
       ``(V) National institute of standards and technology 
     scientific and technical research and services.--The term 
     `National Institute of Standards and Technology scientific 
     and technical research and services' means the appropriations 
     accounts that support the various institutes, offices, and 
     centers that make up the National Institute of Standards and 
     Technology scientific and technical research and services.
       ``(VI) National science foundation.--The term `National 
     Science Foundation' means the appropriations accounts that 
     support the various institutes, offices, and centers that 
     make up the National Science Foundation.''.

       (b) Funding.--There are hereby authorized to be 
     appropriated--
       (1) for the National Science Foundation, the amounts 
     provided for under clause (i) of such section 251(b)(2)(D) in 
     each of fiscal years 2020 through 2024, and such sums as may 
     be necessary for each subsequent fiscal year;
       (2) for the Department of Energy Office of Science, the 
     amounts provided for under clause (ii) of such section 
     251(b)(2)(D) in each of fiscal years 2020 through 2024, and 
     such sums as may be necessary for each subsequent fiscal 
     year;
       (3) for the Department of Defense science and technology 
     programs, the amounts provided for under clause (iii) of such 
     section 251(b)(2)(D) in each of fiscal years 2020 through 
     2024, and such sums as may be necessary for each subsequent 
     fiscal year;
       (4) for the National Institute of Standards and Technology 
     scientific and technical research and services, the amounts 
     provided for under clause (iv) of such section 251(b)(2)(D) 
     in each of fiscal years 2020 through 2024, and such sums as 
     may be necessary for each subsequent fiscal year; and
       (5) for the National Aeronautics and Space Administration 
     Science Mission Directorate, the amounts provided for under 
     clause (v) of such section 251(b)(2)(D) in each of fiscal 
     years 2020 through 2024, and such sums as may be necessary 
     for each subsequent fiscal year.
       (c) Minimum Continued Funding Requirement.--Amounts 
     appropriated for each of the programs and agencies described 
     in section 251(b)(2)(D) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (as added by subsection (a)) for 
     each of fiscal years 2020 through 2024, and each subsequent 
     fiscal year, shall not be less than the amounts appropriated 
     for such programs and agencies for fiscal year 2019.
       (d) Exemption of Certain Appropriations From 
     Sequestration.--
       (1) In general.--Section 255(g)(1)(A) of the Balanced 
     Budget and Emergency Deficit Control Act (2 U.S.C. 
     905(g)(1)(A)) is amended by inserting after ``Advances to the 
     Unemployment Trust Fund and Other Funds (16-0327-0-1-600).'' 
     the following:
       ``Appropriations under the American Innovation Act.''.
       (2) Applicability.--The amendment made by this section 
     shall apply to any sequestration order issued under the 
     Balanced Budget and Emergency Deficit Control Act of 1985 (2 
     U.S.C. 900 et seq.) on or after the date of enactment of this 
     Act.
                                 ______
                                 
      By Mr. DURBIN (for himself, Mr. Brown, Mr. Van Hollen, Mr. 
        Cardin, Mr. Casey, Mr. Markey, Ms. Baldwin, Mr. Blumenthal, and 
        Ms. Klobuchar):
  S. 1250. A bill to prioritize funding for an expanded and sustained 
national investment in biomedical research; to the Committee on the 
Budget.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1250

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``American Cures Act''.

     SEC. 2. CAP ADJUSTMENT.

       (a) In General.--Section 251(b)(2) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     901(b)(2)) is amended--
       (1) by redesignating subparagraphs (D), (E), and (F) as 
     subparagraphs (E), (F), and (G), respectively; and
       (2) by inserting after subparagraph (C), the following:
       ``(D) Biomedical research.--
       ``(i) National institutes of health.--If a bill or joint 
     resolution making appropriations for a fiscal year is enacted 
     that specifies amounts for the National Institutes of Health 
     at the Department of Health and Human Services, then the 
     adjustments for that fiscal year shall be the amount of 
     additional new budget authority provided in that Act for such 
     programs for that fiscal year, but shall not exceed--

       ``(I) for fiscal year 2020, $2,737,000,000 in additional 
     new budget authority;
       ``(II) for fiscal year 2021, $5,666,000,000 in additional 
     new budget authority;
       ``(III) for fiscal year 2022, $8,800,000,000 in additional 
     new budget authority;
       ``(IV) for fiscal year 2023, $12,153,000,000 in additional 
     new budget authority; and
       ``(V) for fiscal year 2024, $15,741,000,000 in additional 
     new budget authority.

       ``(ii) Centers for disease control and prevention.--If a 
     bill or joint resolution making appropriations for a fiscal 
     year is enacted that specifies amounts for the Centers for 
     Disease Control and Prevention at the Department of Health 
     and Human Services, then the adjustments for that fiscal year 
     shall be the amount of additional new budget authority 
     provided in that Act for such programs for that fiscal year, 
     but shall not exceed--

       ``(I) for fiscal year 2020, $511,000,000 in additional new 
     budget authority;
       ``(II) for fiscal year 2021, $1,057,000,000 in additional 
     new budget authority;
       ``(III) for fiscal year 2022, $1,642,000,000 in additional 
     new budget authority;
       ``(IV) for fiscal year 2023, $2,268,000,000 in additional 
     new budget authority; and
       ``(V) for fiscal year 2024, $2,938,000,000 in additional 
     new budget authority.

       ``(iii) Department of defense health program.--If a bill or 
     joint resolution making appropriations for a fiscal year is 
     enacted that specifies amounts for the Department of Defense 
     health program, then the adjustments for that fiscal year 
     shall be the amount of additional new budget authority 
     provided in that Act for such programs for that fiscal year, 
     but shall not exceed--

       ``(I) for fiscal year 2020, $167,510,000 in additional new 
     budget authority;
       ``(II) for fiscal year 2021, $346,745,700 in additional new 
     budget authority;
       ``(III) for fiscal year 2022, $538,527,899 in additional 
     new budget authority;
       ``(IV) for fiscal year 2023, $743,734,852 in additional new 
     budget authority; and
       ``(V) for fiscal year 2024, $963,306,292 in additional new 
     budget authority.

       ``(iv) Medical and prosthetics research program of the 
     department of veterans affairs.--If a bill or joint 
     resolution making appropriations for a fiscal year is enacted 
     that specifies amounts for the medical and prosthetics 
     research program of the Department of Veterans Affairs, then 
     the adjustments for that fiscal year shall be the amount of 
     additional new budget authority provided in that Act for such 
     programs for that fiscal year, but shall not exceed--

       ``(I) for fiscal year 2020, $54,530,000 in additional new 
     budget authority;
       ``(II) for fiscal year 2021, $58,350,000 in additional new 
     budget authority;
       ``(III) for fiscal year 2022, $62,440,000 in additional new 
     budget authority;
       ``(IV) for fiscal year 2023, $66,810,000 in additional new 
     budget authority; and
       ``(V) for fiscal year 2024, $71,490,000 in additional new 
     budget authority.

       ``(v) Definitions.--As used in this subparagraph:

       ``(I) Additional new budget authority.--The term 
     `additional new budget authority' means--

       ``(aa) with respect to the National Institutes of Health, 
     the amount provided for a fiscal year, in excess of the 
     amount provided in fiscal year 2019, in an appropriation Act 
     and specified to support the National Institutes of Health;
       ``(bb) with respect to the Centers for Disease Control and 
     Prevention, the amount provided for a fiscal year, in excess 
     of the amount provided in fiscal year 2019, in an 
     appropriation Act and specified to support the Centers for 
     Disease Control and Prevention;
       ``(cc) with respect to the Department of Defense health 
     program, the amount provided for a fiscal year, in excess of 
     the amount provided in fiscal year 2019, in an appropriation 
     Act and specified to support the Department of Defense health 
     program; and
       ``(dd) with respect to the medical and prosthetics research 
     program of the Department of Veterans Affairs, the amount 
     provided for a fiscal year, in excess of the amount provided 
     in fiscal year 2019, in an appropriation Act and specified to 
     support the medical and prosthetics research program of the 
     Department of Veterans Affairs.

       ``(II) Centers for disease control and prevention.--The 
     term `Centers for Disease Control and Prevention' means the 
     appropriations accounts that support the various institutes, 
     offices, and centers that make up the Centers for Disease 
     Control and Prevention.
       ``(III) Department of defense health program.--The term 
     `Department of Defense health program' means the 
     appropriations accounts that support the various institutes, 
     offices, and centers that make up the Department of Defense 
     health program.
       ``(IV) Medical and prosthetics research program of the 
     department of veterans affairs.--The term `medical and 
     prosthetics research program of the Department of Veterans 
     Affairs' means the appropriations accounts that support the 
     various institutes, offices, and centers that make up the 
     medical and prosthetics research program of the Department of 
     Veterans Affairs.
       ``(V) National institutes of health.--The term `National 
     Institutes of Health' means the appropriations accounts that 
     support the various institutes, offices, and centers that 
     make up the National Institutes of Health.''.

       (b) Funding.--There are hereby authorized to be 
     appropriated--
       (1) for the National Institutes of Health, the amounts 
     provided for under clause (i) of such section 251(b)(2)(D) in 
     each of fiscal years 2020 through 2024, and such sums as may 
     be necessary for each subsequent fiscal year;

[[Page S2522]]

       (2) for the Secretary of Health and Human Services, acting 
     through the Centers for Disease Control and Prevention, the 
     amounts provided for under clause (ii) of such section 
     251(b)(2)(D) in each of fiscal years 2020 through 2024, and 
     such sums as may be necessary for each subsequent fiscal 
     year;
       (3) for the Department of Defense health program, the 
     amounts provided for under clause (iii) of such section 
     251(b)(2)(D) in each of fiscal years 2020 through 2024, and 
     such sums as may be necessary for each subsequent fiscal 
     year; and
       (4) for the medical and prosthetics research program of the 
     Department of Veterans Affairs, the amounts provided for 
     under clause (iv) of such section 251(b)(2)(D) in each of 
     fiscal years 2020 through 2024, and such sums as may be 
     necessary for each subsequent fiscal year.
       (c) Minimum Continued Funding Requirement.--Amounts 
     appropriated for each of the programs and agencies described 
     in section 251(b)(2)(D) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (as added by subsection (a)) for 
     each of fiscal years 2020 through 2024, and each subsequent 
     fiscal year, shall not be less than the amounts appropriated 
     for such programs and agencies for fiscal year 2019.
       (d) Exemption of Certain Appropriations From 
     Sequestration.--
       (1) In general.--Section 255(g)(1)(A) of the Balanced 
     Budget and Emergency Deficit Control Act (2 U.S.C. 
     905(g)(1)(A)) is amended by inserting after ``Advances to the 
     Unemployment Trust Fund and Other Funds (16-0327-0-1-600).'' 
     the following:
       ``Appropriations under the American Cures Act.''.
       (2) Applicability.--The amendment made by this section 
     shall apply to any sequestration order issued under the 
     Balanced Budget and Emergency Deficit Control Act of 1985 (2 
     U.S.C. 900 et seq.) on or after the date of enactment of this 
     Act.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself, Mr. Cornyn, Mr. Van Hollen, Mr. 
        Blumenthal, Ms. Harris, Ms. Klobuchar, Mr. Wyden, and Mr. 
        Durbin):
  S. 1253. A bill to apply requirements relating to delivery sales of 
cigarettes to delivery sales of electronic nicotine delivery systems, 
and for other purposes; to the Committee on the Judiciary.
  Mrs. FEINSTEIN. Mr. President, I rise in support of the ``Preventing 
Online Sales of E-Cigarettes to Children Act,'' which would help 
address the concerning rise of electronic cigarette use among America's 
youth.
  This common-sense bill would protect children by requiring online 
retailers of e-cigarettes to meet the same standards as those that sell 
regular cigarettes and other tobacco products online.
  E-cigarette use among teenagers has increased dramatically over the 
past few years. According to the Centers for Disease Control and 
Prevention, approximately 20 percent of high school students used 
electronic cigarettes in 2018. In comparison, only about 1.5 percent of 
high school students reportedly used e-cigarettes in 2011.
  Even more disturbing, the rise of teenage use of e-cigarettes appears 
to be accelerating. Between 2017 and 2018, e-cigarettes use among high 
school-aged children jumped 78%. Today, e-cigarettes have become the 
most commonly used tobacco product among America's youth. These severe 
levels of e-cigarette use by middle and high school-aged children are 
staggering.
  According to a U.S. Surgeon General report on e-cigarette use among 
youth and young adults, the developing adolescent brain is uniquely 
sensitive to nicotine. Studies have also shown that the development of 
the brain during adolescence can be permanently altered by nicotine. As 
a result, children exposed to nicotine may be at greater risk for 
acting out drug-seeking behaviors, experiencing deficits in attention 
and cognition, and suffering from mood disorders. These effects may 
continue into adulthood, long after e-cigarette use has stopped.
  Given the effects of nicotine on children, it is critical that we 
close any legal loopholes that have allowed underage youth to gain 
access to tobacco, particularly through e-cigarettes.
  Among underage e-cigarette users, 86 percent reported that they 
obtained the product from somewhere other than a retail store. And a 
recent survey of adolescent e-cigarette users showed that 32 percent of 
them reported purchasing their products online, making online sales the 
single largest source of underage purchases.
  Our legislation would build off the ``Prevent All Cigarette 
Trafficking Act,'' which has been a tremendous success in preventing 
underage use of cigarettes. Since it passed, the number of middle and 
high school students who use cigarettes has been nearly cut in half. We 
should expand on this success by requiring e-cigarette retailers to 
meet the same requirements as those that sell regular cigarettes 
online.
  By applying the same safeguards that have worked with online sales of 
regular cigarettes, our bill would ensure that online e-cigarette 
sellers are verifying the age of their customers, properly labeling 
packages, and checking identification at delivery.
  In addition, our bill requires deliveries of e-cigarettes to comply 
with relevant State tobacco taxes and reporting requirements, as is 
currently required of online sales of regular cigarettes and smokeless 
tobacco products. E-cigarette retailers will also need to register and 
maintain a record of their online sales, which will be accessible to 
State and Federal law officials. Law enforcement will be able to 
identify and shut down online vendors that are systematically breaking 
the law by marketing their e-cigarette products to children.
  This bill complements efforts by the Food and Drug Administration, 
which has recognized the epidemic of youth e-cigarette use and proposed 
a number of policies meant to prevent underage retail purchases, limit 
flavors that appeal to children, and enforce age verifications.
  Over the last 50 years, the United States has made remarkable 
progress in reducing the number of Americans that use tobacco products. 
However, the dramatic recent rise of e-cigarette use among our youth 
threatens that progress and requires a strong response.
  I want to thank Senator Cornyn for joining me in introducing 
legislation on this important issue. I urge my colleagues to join us in 
supporting this bill to address the epidemic of e-cigarette use among 
America's youth. Thank you Mr. President. I yield the floor.
                                 ______
                                 
      By Mr. REED (for himself and Mr. Grassley):
  S. 1256. A bill to promote transparency by permitting the Public 
Company Accounting Oversight Board to allow its disciplinary 
proceedings to be open to the public, and for other purposes; to the 
Committee on Banking, Housing, and Urban Affairs.
  Mr. REED. Mr. President, the PCAOB Enforcement Transparency Act, 
which I reintroduce today with Senator Grassley, will permit the Public 
Company Accounting Oversight Board (PCAOB) to make public the 
disciplinary proceedings it has brought against auditors and audit 
firms earlier in the process.
  More than fifteen years ago, our markets were victimized by a series 
of massive financial reporting frauds, including those involving Enron 
and WorldCom. In response to this crisis, the Senate Committee on 
Banking, Housing, and Urban Affairs conducted multiple hearings, which 
produced consensus on a number of underlying causes, including weak 
corporate governance, a lack of accountability, and inadequate 
oversight of accountants charged with auditing public companies' 
financial statements.
  In a 99 to 0 vote, the Senate passed the Sarbanes-Oxley Act of 2002 
to address the structural weaknesses and faults revealed by the 
hearings. Among its many provisions, this law called for the creation 
of a strong and independent board, the PCAOB, responsible for 
overseeing auditors of public companies in order to protect investors 
who rely on independent audit reports on the financial statements of 
public companies.
  To conduct its duties, the PCAOB, under the oversight of the U.S. 
Securities and Exchange Commission (SEC), oversees more than 1,800 
registered accounting firms, as well as the audit partners and staff 
who contribute to a firm's work on each audit. The Board's ability to 
begin proceedings that can determine whether there have been violations 
of its auditing standards or rules of professional practice is an 
important component of its oversight.
  However, unlike the SEC, the U.S. Department of Labor, the Federal 
Deposit Insurance Corporation, the U.S. Commodity Futures Trading 
Commission, the Financial Industry Regulatory Authority, and other 
oversight bodies, the Board's disciplinary proceedings cannot be made 
public without consent from the parties involved.

[[Page S2523]]

Of course, parties subject to disciplinary proceedings have no 
incentive to consent to publicizing their alleged wrongdoing and thus 
these proceedings typically remain cloaked behind a veil of secrecy. In 
addition, the Board cannot publicize the results of its disciplinary 
proceedings until after the appeals process has been completely 
exhausted, which can often take several years.
  Concealing PCAOB disciplinary proceedings from the public creates a 
lack of transparency that invites abuse and undermines the 
Congressional intent behind the PCAOB, which was to shine a bright 
light on auditing firms and practices, and to bolster the 
accountability of auditors of public companies to the investing public.
  Over the years, some bad actors have used this loophole to shield 
themselves from public scrutiny and accountability. Former PCAOB 
Chairman James Doty repeatedly stated in testimony provided to both the 
Senate and House of Representatives that the secrecy of the proceedings 
``has a variety of unfortunate consequences'' and that such secrecy is 
harmful to investors, the auditing profession, and the public at large.
  For example, an accounting firm continued to issue no fewer than 29 
additional audit reports on public companies without those companies 
knowing that it was subject to a PCAOB disciplinary proceeding. 
Disturbingly, these investors and the public company clients of that 
audit firm were deprived of important information about the proceeding 
against the firm and the substance of any violations. There are other 
critical reasons why the Board's enforcement proceedings should be open 
and transparent.
  First, the incentive to litigate cases in order to shield conduct 
from public scrutiny as long as possible frustrates the process and 
requires both litigants and the PCAOB to expend needless resources.
  Second, agencies such as the SEC have found that open and transparent 
disciplinary proceedings can be valuable because they inform peer audit 
firms of the type of activity that could lead to enforcement action by 
the regulator. In effect, transparent proceedings can serve as a 
deterrent to misconduct because of a perceived increase in the 
likelihood of ``getting caught.'' Accordingly, the audit industry as a 
whole would also benefit from timely, public, and non-secret 
enforcement proceedings.
  Our bill will make hearings by the PCAOB, and all related notices, 
orders, and motions, transparent and available to the public unless 
otherwise ordered by the Board. This would more closely align the 
PCAOB's procedures with those of the SEC for analogous matters.
  Increasing transparency and accountability of audit firms subject to 
PCAOB disciplinary proceedings bolsters investor confidence in our 
financial markets and better protects companies from problematic 
auditors. I hope our colleagues will join Senator Grassley and me in 
supporting this legislation to enhance transparency in the PCAOB's 
enforcement process.

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