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111th Congress 
 2d Session                      SENATE                          Report
                                                                111-360
_______________________________________________________________________

                                     



 
                     ACTIVITIES OF THE COMMITTEE ON

                         HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS


                               __________

                              R E P O R T

                                 of the

        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                                and its

                             SUBCOMMITTEES

                                for the

                       ONE HUNDRED TENTH CONGRESS





                December 10, 2010--Ordered to be printed



                  U.S. GOVERNMENT PRINTING OFFICE
00-000                    WASHINGTON : 2010
-----------------------------------------------------------------------
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        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TOM COBURN, Oklahoma
THOMAS R. CARPER, Delaware           SCOTT P. BROWN, Massachusetts
MARK L. PRYOR, Arkansas              JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana          GEORGE V. VOINOVICH, Ohio
CLAIRE McCASKILL, Missouri           JOHN ENSIGN, Nevada
JON TESTER, Montana                  LINDSEY GRAHAM, South Carolina
CHRISTOPHER A. COONS, Delaware       MARK KIRK, Illinois

                  Michael L. Alexander, Staff Director
     Brandon L. Milhorn, Minority Staff Director and Chief Counsel
                  Trina Driessnack Tyrer, Chief Clerk
         Patricia R. Hogan, Publications Clerk and GPO Detailee
                    Laura W. Kilbride, Hearing Clerk

                                 ------                                

  COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS DURING THE 
                             110TH CONGRESS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TED STEVENS, Alaska
THOMAS R. CARPER, Delaware           GEORGE V. VOINOVICH, Ohio
MARK L. PRYOR, Arkansas              NORM COLEMAN, Minnesota
MARY L. LANDRIEU, Louisiana          TOM COBURN, Oklahoma
BARACK OBAMA, Illinois               PETE V. DOMENICI, New Mexico
CLAIRE McCASKILL, Missouri           JOHN WARNER, Virginia
JON TESTER, Montana                  JOHN E. SUNUNU, New Hampshire

                                 ------                                

                  SUBCOMMITTEES OF THE 110TH CONGRESS
FEDERAL FINANCIAL MANAGEMENT, GOVERNMENT INFORMATION, FEDERAL SERVICES, 
                    AND INTERNATIONAL SECURITY (FFM)

                  THOMAS R. CARPER, Delaware, Chairman
CARL LEVIN, Michigan                 TOM COBURN, Oklahoma
DANIEL K. AKAKA, Hawaii              TED STEVENS, Alaska
BARACK OBAMA, Illinois               GEORGE V. VOINOVICH, Ohio
CLAIRE MCCASKILL, Missouri           PETE V. DOMENICI, New Mexico
JON TESTER, Montana                  JOHN E. SUNUNU, New Hampshire

                                 ------                                

  OVERSIGHT OF GOVERNMENT MANAGEMENT, THE FEDERAL WORKFORCE, AND THE 
                       DISTRICT OF COLUMBIA (OGM)

                   DANIEL K. AKAKA, Hawaii, Chairman
CARL LEVIN, Michigan                 GEORGE V. VOINOVICH, Ohio
THOMAS R. CARPER, Delaware           TED STEVENS, Alaska
MARK L. PRYOR, Arkansas              TOM COBURN, Oklahoma
MARY L. LANDRIEU, Louisiana          JOHN W. WARNER, Virginia

                                 ------                                

             PERMANENT SUBCOMMITTEE ON INVESTIGATIONS (PSI)

                     CARL LEVIN, Michigan, Chairman
THOMAS R. CARPER, Delaware           NORM COLEMAN, Minnesota
MARK L. PRYOR, Arkansas              TOM COBURN, Oklahoma
BARACK OBAMA, Illinois               PETE V. DOMENICI, New Mexico
CLAIRE MCCASKILL, Missouri           JOHN W. WARNER, Virginia
JON TESTER, Montana                  JOHN E. SUNUNU, New Hampshire

                                 ------                                

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

                   MARK L. PRYOR, Arkansas, Chairman
DANIEL K. AKAKA, Hawaii              JOHN E. SUNUNU, New Hampshire
MARY L. LANDRIEU, Louisiana          GEORGE V. VOINOVICH, Ohio
BARACK OBAMA, Illinois               NORM COLEMAN, Minnesota
CLAIRE MCCASKILL, Missouri           PETE V. DOMENICI, New Mexico
JON TESTER, Montana                  JOHN WARNER, Virginia

                                 ------                                

             AD HOC SUBCOMMITTEE ON DISASTER RECOVERY (SDR)

                 MARY L. LANDRIEU, Louisiana, Chairman
THOMAS R. CARPER, Delaware           TED STEVENS, Alaska
MARK L. PRYOR, Arkansas              PETE V. DOMENICI, New Mexico


                                CONTENTS

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

      Homeland Security..........................................     3
        A. 9/11 Commission Recommendations: Round Two............     3
        B. DHS Authorization Act.................................     4
        C. Fighting For First Responders.........................     5
        D. Protecting Against Terrorist Threats..................     8
        E. Oversight of Disaster Response........................    12
        F. Information Security..................................    15
        G. Border Security and Immigration.......................    16
        H. Transportation Security...............................    19
        I. Regulating the Chemical Industry......................    19
        J. Securing Against IEDs.................................    20

      Contracting Reform.........................................    23
        A. Wartime Contracting and DCAA..........................    23
        B. Contracting Process and S. 680........................    24
        C. DHS Contracting.......................................    25

      Lobbying and Ethics Reform.................................    25

      Inspector General Reform...................................    26

      Commodities Speculation....................................    27

      District of Columbia.......................................    28
        A. Voting Rights.........................................    28
        B. Courts................................................    28

      E-Government...............................................    29

      Protecting Federal Employees...............................    29
        A. Domestic Partners.....................................    29
        B. Employee Rights.......................................    30

      Working for Connecticut....................................    31
        A. Port, Transit Security Grants.........................    31
        B. Urban Area Security Initiative Grants.................    31
        C. General Homeland Security, Disaster Aid...............    32
        D. Immigration...........................................    32

      Miscellaneous..............................................    32
        A. Bipartisanship........................................    32
        B. New Subcommittees.....................................    32
        C. CRS Reports...........................................    33
        D. Presidential Records..................................    33
        E. Presidential Library Donations........................    33
        F. GAO...................................................    33
        G. Privacy...............................................    34

 II. Committee Jurisdiction..........................................34
III. Bills and Resolutions Referred and Considered...................37
 IV. Hearings........................................................37
  V. Reports, Prints, and GAO Reports................................41
 VI. Official Communications.........................................49
VII. Legislative Actions.............................................50
        Measures Enacted Into Law................................    50
        Postal Naming Bills......................................    54
VIII.Presidential Nominations........................................61

 IX. Activities of the Subcommittees.................................65

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

  I. Hearings........................................................65

 II. Legislation.....................................................74

III. GAO Reports.....................................................83

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

  I. Hearings........................................................85

 II. Legislation....................................................110

        Measures Enacted Into Law................................   110

        Measures Favorably Reported by the Subcommittee and 
        Passed by the Senate.....................................   112

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

        Measures which did not advance beyond referral to 
        Subcommittee.............................................   116

III. GAO Reports....................................................125

             Permanent Subcommittee on Investigations (PSI)

  I. Historical Background..........................................129

        A. Subcommittee Jurisdiction.............................   129

        B. Past Investigations...................................   131

 II. Subcommittee Hearings during the 110th Congress................135

III. Legislative Activities during the 110th Congress...............158

 IV. Reports, Prints and Studies....................................166

  V. Requested and Sponsored GAO Reports............................178

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

  I. Hearings.......................................................195

 II. Legislation....................................................204

             Ad Hoc Subcommittee on Disaster Recovery (SDR)

  I. Hearings.......................................................205

 II. Legislation....................................................218


111th Congress
                                 SENATE
                                                                 Report
 2d Session                                                     111-360

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




                ACTIVITIES OF THE COMMITTEE ON HOMELAND
                  SECURITY AND GOVERNMENTAL AFFAIRS
                       DURING THE 110TH CONGRESS

                                _______
                                

               December 10, 2010.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

    This report reviews the legislative and oversight 
activities of the Committee on Homeland Security and 
Governmental Affairs and its Subcommittees during the 110th 
Congress. These activities were conducted pursuant to the 
Legislative Reorganization Act of 1946, as amended; by Rule 
XXV(k) of the Standing Rules of the Senate; and by additional 
authorizing resolutions of the Senate. See Section II, 
``Committee Jurisdiction,'' for details.
    Senator Joseph I. Lieberman was Chairman of the Committee 
during the 110th Congress; Senator Susan M. Collins was the 
Ranking Member.
    Major activities of the Committee during the 110th Congress 
covered investigations, oversight, and legislation including 
the second round of 9/11 Commission recommendations, and 
Congressional ethics, procurement, and Inspector General 
reforms; introduction of the Committee's first Department of 
Homeland Security authorization bill, and a successful campaign 
to persuade YouTube to remove scores of videos that showed 
gratuitous violence against U.S. troops in Iraq and that could 
be used to indoctrinate terrorists. Discussion of these major 
activities appears in Section I below; additional information 
on these and other measures appears in Section VII, 
``Legislative Actions.''
    Extensive information about the Committee's history, 
hearings, legislation, documents, Subcommittees, and other 
matters is available at the Web site, http://hsgac.senate.gov/.

                      I. HIGHLIGHTS OF ACTIVITIES

    Five years and two Congresses after the creation of the 
U.S. Department of Homeland Security (DHS), the government's 
third largest cabinet level department faced serious management 
deficiencies within its two dozen agencies and programs, 
exposing it to continued threats from those who would dismantle 
all or parts of it.
    Despite steady progress in strengthening airline and port 
security, the Department continued to struggle with effective 
administration of its sprawling portfolio, including major 
procurement projects to keep terrorists and nuclear weapons out 
of the country.
    Working as usual in a bipartisan manner with his Ranking 
Member Susan Collins, R-Maine, Senator Lieberman's response to 
these shortcomings came in the form of two pieces of 
legislation--Implementing the 9/11 Commission Recommendations 
Act of 2007, H.R. 1 (Public Law 110-53), which passed Congress 
July 27, 2007, and the Committee's first DHS authorization 
bill, the Department of Homeland Security Authorization Act of 
2008 and 2009, S. 3623, introduced September 26, 2008.
    In 2007, for the third year in a row, the Department was 
placed on the Government Accountability Office's (GAO) biennial 
``high-risk list'' of Federal agencies most at risk of 
mismanagement, fraud, waste, and abuse. Poor management 
throughout the Department continued to jeopardize a number of 
priorities, including protection of the Federal Government's 
information systems, development of second generation nuclear 
radiation detectors, and an effective Southern border security 
system.
    On the other hand, the Administration took steps to 
strengthen security at seaports and by funding for the Western 
Hemisphere Travel Initiative and stepped up its efforts to 
secure the Federal Government's computer networks. And, in 
response to a series of hurricanes that struck the Gulf Coast 
and Texas in September 2008, the Department proved that it had 
learned at least some of the hard lessons of Hurricane Katrina, 
pre-positioning commodities and coordinating well with State 
and local officials to avert major displacement of and 
suffering by those in the storm struck areas.
    If 2007 was dominated by the second installment of 
legislation implementing the 9/11 Commission recommendations, 
2008 was dedicated primarily to oversight of that law and three 
other major reorganizing laws the Committee originated and 
passed in previous years.
    The Committee worked to ensure proper implementation of 
legislation passed in 2006 to reinvent the troubled Federal 
Emergency Management Agency (FEMA). It monitored DHS' efforts 
to prevent a major catastrophe involving the Nation's chemical 
plants and asked probing questions when security lapses 
occurred at the borders.
    In its investigatory capacity, the Committee uncovered 
troubling evidence that DHS' efforts to develop and deploy 
radiation monitors at the Nation's major seaports were not as 
successful or as cost effective as the Department has claimed. 
This came as part of a broader investigation into how well 
prepared the Nation was to deal with nuclear terrorism. The 
Committee also dug into the phenomenon of homegrown terrorism, 
winning a significant victory when Google, the owner of 
YouTube, took down scores of videos that showed gratuitous 
violence against U.S. troops in Iraq and that could be used to 
indoctrinate terrorists. And with an eye toward efficient 
government, the Senator, through hearings and perfecting 
legislation, redoubled his oversight of accountability of the 
procurement process--both within DHS and the Department of 
Defense (DOD).
    Beyond homeland security, the Senator continued to fight to 
guard against government waste, fraud, and abuse with 
legislation to strengthen the government's offices of 
Inspectors General. He worked successfully to ensure the 
highest possible ethical standards for members of Congress and 
their staffs with Congressional passage of the Honest 
Leadership and Open Government Act of 2007, S. 1, large 
portions of which were drafted by the Committee. The Committee 
also marked up a major procurement reform bill that was passed 
by the Senate. Core provisions were signed into law as part of 
the FY 2008 and FY 2009 National Defense Authorization Acts. 
Ever cognizant of consumer woes, the Senator also held hearings 
and introduced legislation on speculation in the commodities 
markets in an effort to bring down escalating oil prices.
    Senator Lieberman continued his strong advocacy for Federal 
workers with, among other things, a push for benefits for the 
domestic partners of Federal employees. And he continued to 
look out for the citizens of Connecticut, particularly via 
port, transit, and first responder grants.

                           HOMELAND SECURITY

    Senator Lieberman has consistently believed that a 
centralized focus on homeland security has added to the 
security of the Nation. Despite some successes, the broad scope 
of the Department's responsibilities, its frequent turnover in 
top leadership positions, and its lax management of major 
procurement contracts have prevented it from achieving the 
vision Senator Lieberman first laid out for it in the Homeland 
Security Act of 2002.

             A. 9/11 Commission Recommendations: Round Two

    The Implementing the Recommendations of the 9/11 Commission 
Act of 2007 dominated the Committee's 2007 homeland security 
agenda, representing another step toward improving DHS 
operations and policies to make the Nation safer. Because the 
measure was one of the Democratic leadership's top priorities, 
Senator Harry Reid introduced it on behalf of Senators 
Lieberman and Collins immediately upon the opening of the 110th 
Congress on January 4, 2007. The version he introduced as the 
Improving America's Security Act of 2007, S. 4, was a simple 
``Sense of Congress'' provision, pending the Committee's 
consideration of substantive provisions that Committee staff 
had begun to draft the previous month.
    The Committee held a hearing on January 9, 2007, to set 
priorities for the legislation that would fill in the gaps and 
implement the 9/11 Commission recommendations that were never 
legislated or that had not been fully implemented. On February 
15, 2007, the Committee marked up the legislation, and the bill 
was reported to the Senate on February 22, 2007. More than 250 
pages long, the legislation addressed a wide range of 
provisions designed to enhance homeland security protections.
    Given the Senator's longstanding interest in improving the 
training and equipping of first responders, one of the 
legislation's most significant provisions established in 
statute the main homeland security grant programs with a risk-
based funding formula. Among other things, it also authorized 
more than $4 billion for dedicated grant programs to secure 
railways, transit systems, and buses; and established a 
dedicated grant program for interoperable communications. The 
bill increased authorized funding levels to $3 billion annually 
for key homeland security grants that support State 
preparedness and first responders; strengthened security 
measures for the Visa Waiver Program and other Federal efforts 
to detect and disrupt terrorist travel; strengthened the 
Privacy and Civil Liberties Oversight Board; established a 
voluntary certification program for private sector 
preparedness; improved counterterrorism and homeland security 
information sharing within the Federal Government and among 
Federal, State and local officials; required all cargo carried 
on passenger airplanes be scanned for explosives within 3 
years; and gave Transportation Security Officers the same 
employment rights other TSA workers enjoyed.
    Working with Senate leadership, Senator Lieberman developed 
a bill that incorporated the Committee's bill with additional 
titles reported out by other committees. This broader 
legislation was then introduced as a substitute amendment on 
February 28, 2007. For the next two weeks Senator Lieberman 
served as floor manager, shepherding the bill through a lengthy 
process in which hundreds of filed amendments were considered 
for inclusion. After many votes on controversial amendments and 
several cloture votes, on March 13, 2007, the Senate approved 
the measure by a vote of 60-38. After Senate passage, chief 
conferees Chairman Lieberman and House Homeland Security 
Committee Chairman Bennie Thompson, D-MS, and their staffs 
conducted lengthy negotiations also involving numerous other 
House and Senate committees.
    The Senate and House conferees held a public meeting on 
July 19, 2007, attended by most of the 62 conferees. Conferees 
approved a provision to establish a 5-year deadline for 100 
percent cargo scanning. A week later, on July 25, 2007, a 
compromise was agreed to by House and Senate negotiators. An 
additional provision to protect from lawsuits people who in 
good faith report what they believe is terrorist activity in 
and around airplanes, trains, and buses was added before 
adoption of the conference report. On July 26, 2007, the Senate 
approved the conference report by a vote of 85-8, and the House 
followed the next day. The bill was signed by the President on 
August 3, 2007.
    On October 30, 2007, Senator Lieberman commented on the 
declassification and public disclosure of the top line of the 
intelligence budget, a reform the Senator had pressed for that 
was included in the 9/11 legislation. The intelligence budget 
for Fiscal Year 2007 was $43.5 billion. On October 28, 2008, he 
issued a similar statement when the FY 2008 intelligence budget 
was revealed to be $47.5 billion.

                        B. DHS Authorization Act

    On September 26, 2008, Senator Lieberman introduced with 
Senator Collins the Committee's first ever authorization bill 
for the Department as a guide for more effective and efficient 
homeland security management. Based on the Committee's 
considerable experience overseeing the Department, the bill 
contained provisions, among many others, to create an Under 
Secretary for Policy to ensure policy coordination across the 
Department; to strengthen the Chief Information Officer's 
authorities and give that position greater control over IT 
investments; to strengthen contract oversight by requiring DHS 
to certify program managers for all major acquisitions and to 
report to Congress on its use of various contracting 
authorities; to help ensure the accountability and cost-
effectiveness of major acquisitions projects by requiring a 
formal investment review process, and by requiring, for 
investments with significant technological challenges, formal 
testing and evaluation prior to investment; to strengthen the 
authorities of the Office of International Affairs to improve 
coordination with the Department's international activities and 
employees; and to require a consolidated headquarters for DHS.
    The bill also would strengthen the Department's hand to 
impose cyber security by establishing a National Cyber Security 
Center--a key component of the Comprehensive National 
Cybersecurity Initiative (CNCI)--to coordinate efforts to 
protect government networks; by strengthening the Department's 
ability to hire cyber security experts; and establishing a 
private sector board to advise the Secretary on cyber security 
policy.

                    C. Fighting For First Responders

    Since the 2001 terrorist attacks, Senator Lieberman has 
worked assiduously to obtain adequate funding for first 
responders through budget letters, amendments, statements, and 
frequent visits with Connecticut firefighters, police officers, 
and emergency personnel. In 2007, the Senator succeeded--in the 
Implementing Recommendations of the 9/11 Commission Act of 
2007--in making permanent several grants programs--including a 
program for interoperable communications. And he helped resolve 
a year-long dispute over grant funding formulas.
    At the end of the year, the Associated Press reported that 
the Administration planned to reduce grant funding by almost 
half. And when the President's FY 2009 budget was released in 
February 2008, a 48-percent cutback was proposed, similar to 
the dramatic cutbacks proposed in the previous 4 years. 
Congress did not play along.
    1. Increasing Resources for Homeland Security Grants--When 
the President unveiled his homeland security budget proposal 
for FY 2008 on February 5, 2007, Senator Lieberman issued a 
blistering statement chastising the Administration for 
attempting to cut first responder funds for the fourth year in 
a row, despite no evidence the terrorist threat had diminished 
and abundant evidence first responders needed additional 
training and equipment to deal with a large scale natural 
disaster. The Senator said the President's proposal to cut by 
52 percent the main source of funds for first responder 
training and equipment represented a ``disconnect between his 
rhetoric and the reality of protecting Americans from terrorist 
threats and natural disasters.''
    On March 12, 2007, Senator Lieberman sent a letter to the 
Chairman and Ranking Member of the Senate Budget Committee 
outlining his proposal to increase homeland security funding by 
$3.4 billion over the President's request--including $1.1 
billion more for State homeland security grants and urban area 
security initiative grants, which support State and local 
preparedness efforts, including training and equipment for 
first responders; $719 million more for all-hazards Emergency 
Management Performance Grants; $400 million more for 
interoperable communications grants; $477 million more for fire 
fighters; and $225 million more for rail and transit grants.
    On March 23, 2007, Senators Lieberman and Collins 
successfully added $731 million for communications 
interoperability and emergency planning to the FY 2008 budget 
resolution.
    On May 17, 2007, after the Senate passed its FY 2008 budget 
resolution, Senator Lieberman expressed gratification that 
Congress restored cuts the President had proposed to first 
responder programs and added $400 million for an interoperable 
communications grant program and $331 million in additional 
funds for Emergency Management Performance Grants.
    The 9/11 Commission recommendations bill, passed in July 
2007, called for more than $4 billion over 4 years for rail, 
transit, and bus security grants, of which $412 million was 
appropriated for 2008; a $1.8 billion authorization for FY 2008 
to assist States and high-risk urban areas in preparing for 
terrorist threats, all of which was appropriated for 2008; $400 
million for Emergency Management Performance Grants to assist 
States in preparing for all-hazards, appropriated at $300 
million; and $400 million for interoperable emergency 
communications, of which $100 million was appropriated.
    When the FY 2009 budget was released on February 4, 2008, 
the Senator issued another strong statement rejecting the 
Administration's proposed cuts for State and local homeland 
security grants and defunding of interoperability grants 
altogether. On February 22, 2008, the Senator called on the 
Senate Budget Committee to fund homeland security needs at 
least at their FY 2008 levels.
    A month later, on March 14, 2008, the Senate restored 
funding for the State Homeland Security Grant Program, the 
largest source of State and local first responder funding, to 
$950 million, the same amount the Committee called for in its 
9/11 Commission recommendations bill the year before.
    On April 11, 2008, Senators Lieberman and Collins, along 
with the Chairman and Ranking Member of the House Homeland 
Security Committee, wrote to DHS Secretary Michael Chertoff 
urging him to abide by the provisions of the 9/11 Commission 
recommendations law and allow State and local governments to 
use up to 50 percent of their grant money on overtime and other 
personnel costs. The Department had issued grant guidance that 
placed lower limits on how much grant money could be used for 
those purposes. Even after receiving the bicameral, bipartisan 
letter, DHS resisted changing its guidance. Through Senator 
Lieberman's efforts, however, the Personnel Reimbursement for 
Intelligence Cooperation and Enhancement of Homeland Security 
Act of 2008, H.R. 6098, enacted on October 14, 2008, further 
clarified the provisions of the 9/11 Commission recommendations 
act and helped ensure that the Department complied with the 
law.
    On September 23, 2008, the Senator hailed the increased 
funding and flexibility authorized in the United States Fire 
Administration Reauthorization Act of 2008, S. 2606, a bill he 
co-sponsored. The United States Fire Administration (USFA) 
provides support to more than 30,000 fire departments through 
training, emergency incident data collection, fire awareness 
and education, and research and development. The 
reauthorization enabled USFA to adapt to evolving threats such 
as the wildfires that have plagued the Western States in 2007 
and 2008.
    Connecticut received $36.6 million in grant money for 2007, 
which included a onetime only $13 million grant for 
interoperability. The State received $33.5 million in 2008.
    2. Changing the Grant Funding Formula--Passage of the 
second installment of the 9/11 Commission recommendations bill 
in July 2007 formally authorized the State Homeland Security 
Grant Program (SHSGP) and the Urban Area Security Initiative 
(UASI) grant program into law and increased the authorization 
amounts for both programs. It also cemented into law a key 
policy change in grant distribution that Senator Lieberman had 
been advocating for several years. The measure established in 
statute that homeland security grants would be distributed to 
States and high-risk urban areas based on risk, while still 
ensuring that all States have funds available for basic 
preparedness. Each State was guaranteed a minimum of .375 
percent of funds in FY 2008 to prevent, prepare for, respond 
to, and recover from terrorist attacks, scaling down to a 
minimum of 0.35 percent in 2012.
    3. Interoperability--On April 24, 2007, Senators Lieberman 
and Collins wrote to DHS Secretary Chertoff expressing 
disappointment that the Department had not moved more 
efficiently to improve its interoperability communications 
program and warned that without a strategic approach and firm 
leadership, first responders would continue to be imperiled 
because of an inability among Federal, State, and local 
officials to communicate effectively during an emergency or 
disaster. Based on a GAO report dated April 2, 2007, the 
Senators identified several major weaknesses in DHS' 
interoperable program, including inadequate procedures to 
assess grant requests; poor communications planning among 
Federal, State, and local governments; ambiguous radio 
standards; and a lack of training.
    The second 9/11 commission recommendations bill, passed in 
July 2007, created a dedicated interoperability grant program 
within DHS to improve interoperability at local, State, and 
Federal levels. The program was authorized at $400 million a 
year and States were required to pass through at least 80 
percent of awarded funds to local and tribal governments.
    The President's FY 2009 budget request called for defunding 
the interoperable communications grant program. But on July 27, 
2007, Senator Lieberman hailed the inclusion of a Lieberman-
Collins amendment to the Senate DHS appropriations bill for FY 
2008 providing $100 million for a dedicated interoperable 
communications program.
    Ultimately, the new grant program received $50 million in 
appropriations in both FY 2008 and FY 2009.
    4. Making the Case for More Resources--On February 13, 
2007, the Committee held a hearing on the DHS budget for FY 
2008 with Secretary Chertoff as its sole witness. The Senator 
told the Secretary he was ``deeply disappointed'' that the 
Department's budget request ``continues a risky policy of 
underfunding some of the Nation's most pressing homeland 
security priorities.''
    The Senator's March 12, 2007, letter to the Senate Budget 
Committee proposed an increase in homeland security funding by 
$3.4 billion--including $25 million for the air cargo screening 
program; $25 million for chemical security; and $477 million 
for firefighters.
    On February 14, 2008, the Committee held a hearing on the 
FY 2009 DHS budget, again with Secretary Chertoff as the only 
witness. The Senator focused on securing adequate funding for 
homeland security grants. ``I will, as I have in the past, 
oppose the Administration's proposed cuts to these grant 
programs and work to restore funding to full levels authorized 
by last year's 9/11 legislation,'' Senator Lieberman said.
    On March 14, 2008, the Senate accepted an amendment by 
Senators Lieberman and Collins, as part of the FY 2009 budget, 
to increase funding for FEMA operations and management by $141 
million.
    5. Employment Compensation Benefits for First Responders--
On October 1, 2008, the Committee reported out the Federal 
Firefighters Fairness Act of 2007, S. 1924, a bill Senator 
Lieberman cosponsored. S. 1924 would create a presumption that 
a disability or death of a Federal employee in fire protection 
activities caused by any of certain diseases is the result of 
the performance of such employee's duty and is therefore 
compensable under worker compensation law. This bill would 
bring the Federal Government in line with the 40 States whose 
laws provide such a presumption, and would ease the difficulty 
that fire fighters experience in proving that such conditions 
resulted directly from the hazardous workplace environment. 
Senator Lieberman was disappointed that S. 1924 was not passed 
by the Senate.
    On June 7, 2007, Senator Lieberman signed a letter to 
President Bush urging that applications under the Public Safety 
Officers' Benefits Program be expedited. The program provides 
for the compensation for the families of public safety officers 
who die as a result of heart attack or stroke, with the 
presumption that the death was a result of an injury sustained 
in the line of duty. Senator Lieberman was dismayed that many 
applications had seemingly been stalled, and this letter in 
part led to the favorable processing of many applications.

                D. Protecting Against Terrorist Threats

    To mark the sixth anniversary of the terrorist attacks on 
the United States, the Committee held a hearing September 10, 
2007, to assess current terrorist threats against the Nation. 
The Nation's most senior law enforcement and intelligence 
officials--the Secretary of DHS, the Director of National 
Intelligence (DNI), the Director of the National 
Counterterrorism Center (NCTC), and the Director of the FBI 
told the Committee that while the Nation is safer than it was 
before 2001, threats remain and they are evolving.
    In January 2008, Senator Lieberman launched an 
investigation into whether the Federal Government is prepared 
to respond to and help the country recover from a potential 
terrorist nuclear attack. The investigation consisted of a 
series of hearings on various aspects of preparation, response, 
and recovery and incorporated an ongoing investigation into two 
large acquisition programs--the $1.12 billion Advanced 
Spectroscopic Portals (ASPs) acquisition and the $1.3 billion 
Cargo Automated Advanced Radiography System (CAARS) 
acquisition--designed to develop better nuclear radiation 
detectors for our ports of entry. The Committee planned to 
release a report examining the threat of nuclear terrorism and 
the ability of the Federal Government to respond to such an 
attack. The report will include recommendations on ways in 
which the Federal Government can strengthen its capabilities.
    1. Domestic Nuclear Detection Office--In the 110th 
Congress, Senator Lieberman continued his aggressive oversight 
of DHS's Domestic Nuclear Detection Office (DNDO), which is 
charged with developing second-generation radiation detection 
technology. On May 15, 2007, Senator Lieberman, along with 
Reps. Thompson, Henry Waxman, D-CA., James Langevin, D-R.I., 
and Michael McCaul, R-TX., asked GAO to evaluate the costs 
associated with deploying DNDO's new radiation portal monitors, 
the ASP, designed to help identify nuclear weapons and 
eliminate the high false alarm rate for the first generation 
radiation portals, the Polyvinyl Toluene (PVT).
    On August 15, 2007, Senator Lieberman, along with Senator 
Daniel Akaka, D-HI., Congressman Bennie G. Thompson, D-MS., and 
Congressman James Langevin, D-R.I., sent a letter to DHS 
Secretary Chertoff requesting that he delay certification of 
the new ASP program until GAO had finished its cost benefit 
analysis. They also applauded Secretary Chertoff for appointing 
an independent review panel to determine the effectiveness of 
the ASPs. In a letter to Senator Lieberman, dated Oct. 12, 
2007, Secretary Chertoff said he was ``committed to meet with 
the GAO team assessing this issue prior to making a final 
decision on the matter.''
    On March 5, 2008, Senator Lieberman issued a statement 
expressing concern about the independent review panel's 
findings. The panel found that DNDO testing at the Nevada Test 
Site in 2007 did not show that ASPs monitors would provide the 
Bureau of Customs and Border Protection (CBP) with a 
significant improvement in detection performance over current 
generation PVT radiation monitors during primary screening at 
domestic ports of entry. The limitations of DNDO's testing 
methods, analysis, and scoring make it almost impossible to 
evaluate the ASPs' performance for detecting nuclear threat 
materials or for rapidly identifying whether the radioactive 
object is dangerous, the expert panel concluded.
    On July 16, 2008, the Committee held a hearing to examine 
the DNDO's Global Nuclear Detection Architecture (GNDA). The 
plan is intended to coordinate 74 Federal programs into a 
coherent comprehensive nuclear detection global system. The 
Senators heard testimony from GAO and Congressional Research 
Service (CRS) experts who stated that the DNDO did not have a 
strategic plan for the GNDA.
    A second hearing followed on September 25, 2008, during 
which GAO released a report Senator Lieberman requested in 2007 
that found the ASPs program over budget, behind schedule, and 
not meeting performance expectations. Senator Lieberman plans 
to issue a Committee report with findings and recommendations 
based on lessons learned from DNDO's two largest acquisition 
programs, the ASPs acquisition and the $1.3 billion Cargo 
Automated Advanced Radiography System (CAARS) acquisition.
    2. Responding to Nuclear Terror Attacks--A series of 
hearings explored the Federal Government's readiness to respond 
to a nuclear terrorist attack equivalent to the bomb dropped on 
Hiroshima.
    On July 19, 2007, the Committee explored the Defense 
Department's progress in coordinating with DHS to respond 
efficiently to a natural disaster or terrorist attack. The 
Post-Katrina Emergency Management Reform Act, enacted into law 
in 2006, required greater coordination efforts between DOD and 
DHS during a catastrophe.
    On February 8, 2008, Senators Lieberman and Collins 
formally requested all relevant Federal agencies provide 
information about their roles and responsibilities for 
preventing and responding to a terrorist nuclear attack. The 
information request was sent to the Departments of Defense, 
Energy, Agriculture, Homeland Security, Health and Human 
Services, State, Transportation, Labor, Veterans Affairs, 
Commerce, Interior, Justice, the Environmental Protection 
Agency, the National Aeronautics and Space Administration, the 
Nuclear Regulatory Commission, and the Director of National 
Intelligence.
    On February 13, 2008, the Committee evaluated the 
recommendations of The Commission on National Guard and 
Reserves, particularly the recommendations that DOD's civil 
support mission have equal priority to its war-fighting 
missions, and that National Guard and Reserve forces play a 
lead in providing civil support. Senators Lieberman and Collins 
announced their intention to draft legislation to clarify the 
DOD's role in supporting the response to a catastrophic event, 
and introduced the Ensuring Defense Support to Catastrophic 
Incident Response Act of 2008, S. 3585, on September 25, 2008.
    On April 2, 2008, Senators Lieberman and Collins focused on 
the nature of the threat of nuclear terrorism to the homeland, 
specifically the intent and capability of terrorists to obtain 
nuclear materials, build a bomb, transport it, and detonate it. 
Following a public hearing, Members of the Committee received a 
classified briefing from several intelligence agencies on the 
threat of nuclear terrorism.
    On April 15, 2008, the Senators examined the consequences 
of a nuclear terrorist attack on a major metropolitan city. The 
hearing took a broad look at what would happen on the ground 
the day after a nuclear attack. Senators heard testimony 
stating that medical facilities would be quickly overwhelmed, 
that plume modeling and effective communications were necessary 
to minimize the loss of life, and that in many cases, 
sheltering in place would be the best option for those near the 
blast area.
    A May 15, 2008, hearing looked at the current gaps in 
providing medical treatment and mass care in the event of a 
nuclear attack. One witness, Joseph C. Becker, Senior Vice 
President, Disaster Services from the American Red Cross stated 
that ``the needed facilities, supplies, volunteers and 
infrastructure are not prepared to operate effectively or 
quickly enough in this environment.'' The Red Cross requested 
Federal funding to perform its responsibilities during a large 
scale disaster, which it was eventually granted.
    Building on the previous hearing, on June 26, 2008, the 
Committee heard testimony from Federal Government witnesses on 
the capability of the Federal Government to respond to a 
catastrophic event. The witnesses admitted that the Federal 
Government is not properly prepared for the event the size of a 
terrorist nuclear attack.
    Committee staff planned a final report examining the threat 
of nuclear terrorism, the consequences of such an attack, and 
several major challenges our Nation would face in responding to 
such an attack. The report will include recommendations on ways 
in which the Federal Government can strengthen its 
capabilities.
    3. Islamist Radicalization and Homegrown Terrorism--A 
September 19, 2006, hearing on Islamist radicalization in U.S. 
prisons held by Senator Collins, then Chairman of the 
Committee, piqued Senator Lieberman's interest in the issue of 
homegrown terrorism. When Senator Lieberman became Chairman in 
2007, he decided to launch a full scale investigation into the 
issue. In 2007 and 2008, the Committee held seven hearings on 
related topics such as the threat against the United States, 
the roots of Islamist ideology, how the Internet plays a role 
in recruitment, and what the U.S. Government was doing to 
combat the threat. The Senator drove home the point that 
violent Islamist extremism is an international and domestic 
threat that demands coordination across government, including 
agencies that traditionally have different jurisdictions, such 
as the FBI and Department of State.
    On March 14, 2007, Senator Lieberman's hearing examined the 
homegrown threat and U.S. efforts to understand and reduce 
Islamist radicalization in this country. Lieberman called for a 
government-wide strategy to stem the threat. Witnesses were DHS 
Secretary Chertoff, Assistant Secretary for Intelligence and 
Analysis Charlie Allen, and Daniel Sutherland, head of DHS's 
Office for Civil Rights and Civil Liberties.
    A May 3, 2007, hearing focused on use of the Internet by 
extremists to recruit and train terrorists, and to carry out 
terrorist attacks. Frank J. Cilluffo, Director of the Homeland 
Security Policy Institute at The George Washington University 
released a report that recommended the government combat 
Internet recruitment by creating an online counter-offensive 
and bolstering cross-cultural dialogue.
    On May 9, 2007, Senator Lieberman issued a press release on 
the arrest of six men allegedly plotting an attack on U.S. 
soldiers stationed at Fort Dix, N.J. Senator Lieberman 
reiterated his call for a government strategy to combat 
radicalization. ``We simply have not devoted the proper amount 
of attention and resources to address the spread of Islamic 
extremism,'' he said. ``Nor do I see the kind of leadership we 
need to put together an effective, government-wide effort to 
respond to the ideology the extremists are spreading.''
    On May 10, 2007, Senator Lieberman explored government 
coordination to address the homegrown threat, including 
countering terrorist propaganda and outreach efforts to 
American Muslim communities. The plot to attack Fort Dix, N.J., 
highlighted the critical importance of such coordination, as 
well as the role local law enforcement must play in countering 
the homegrown threat.
    On June 27, 2007, the Senator took a look at the European 
experience. Counterterrorism officials from France and the 
Netherlands discussed factors in European society that lead 
disaffected youth to join or emulate terrorist organizations 
like al-Qaeda and described their governments' efforts to 
prevent terrorist networks from succeeding on their soil.
    On August 15, 2007, Senator Lieberman issued a press 
release praising the work of the New York City Police 
Department which examined in detail the homegrown 
radicalization process of Islamist terrorism in the West. ``The 
NYPD's report is a breakthrough in our efforts to defend our 
homeland in the global war with Islamist terrorism, and it has 
important implications for our national homeland security 
strategy. The report underscores the critical role of local law 
enforcement in proactive efforts to find the terrorists before 
they strike. . . . The Department of Homeland Security and 
Congress must ensure adequate funding for similar programs in 
other high-risk areas of the country.''
    On October 30, 2007, the Committee held a sixth hearing on 
the response of State and local law enforcement with witnesses 
from four police departments--New York, Los Angeles, Miami-
Dade, and Kansas City, who talked about their proactive 
approach to countering the homegrown threat. Senator Lieberman 
said the local law enforcement agencies should serve as models 
for other cities around the Nation and that the Federal 
Government should provide more direction and resources to help 
make that happen.
    On May 8, 2008, Senator Lieberman released a Committee 
staff report citing the growing threat of homegrown terror 
caused in large part by the Internet's role in radicalizing 
potential terrorists around the globe, which, in turn, 
increases the potential for homegrown terrorism within our own 
borders. The report called for a national strategy to counter 
the influence of the ideology.
    On July 10, 2008, the Committee held a seventh hearing on 
the ideological roots that lead to violent Islamist extremism 
and what the United States can do to diminish the influence of 
the ideology here at home. The Committee's lead witness, Maajid 
Nawaz, a former leader of Hizb ut-Tahrir in the United Kingdom, 
explained how he was radicalized by Islamist ideology and how 
the ideology leads to terrorism.
    A week later, the Senator sent a letter to Google, owner of 
the largest video sharing Website ``YouTube,'' asking YouTube 
to follow its own standards for posting videos and take down 
terrorist videos on the site. On May 20, 2007, the Senator 
issued a statement commending Google for taking down about 80 
videos that violated its video posting standards, but the 
Senator called on the Internet giant to do more. On September 
11, 2007, Google changed its video posting standards to bar 
videos that ``incite violence''--a direct result of the 
Senator's pressure.

                   E. Oversight of Disaster Response

    Following the Committee's comprehensive investigation into 
the poor government response to Hurricane Katrina in 2005 and 
passage of the Post-Katrina Emergency Management Reform Act of 
2006--which sought to restructure FEMA so that for the first 
time in its history it would be prepared for not just a 
disaster, but a catastrophe--Senator Lieberman bore in on FEMA 
oversight.
    1. Preparedness and Implementing the Post-Katrina Act--On 
January 3, 2007, Senator Lieberman announced that he had 
written a letter to Secretary Chertoff with Senator Collins and 
House Homeland Security Committee Chairman and Ranking Member 
Bennie Thompson and Peter King, R-N.Y., to complain about 
insufficient progress in implementation of the Post-Katrina 
Emergency Management Reform Act. The lawmakers asked that DHS 
brief Congress on actions being taken to ensure that all 
relevant functions and components of the Department's 
Preparedness Directorate were being transferred to FEMA.
    On May 22, 2007, Senator Lieberman chaired a hearing 
entitled ``Implementing FEMA Reform: Are We Prepared for the 
2007 Hurricane Season?'' at which he called on DHS and FEMA to 
boost hurricane preparedness efforts and move quickly to 
implement recently passed emergency response reforms.
    On July 12, 2007, Senators Lieberman and Collins asked GAO 
to evaluate DHS's disaster response and disaster response 
exercises to make sure response plans were complete and 
understood by participants. In a letter to GAO Comptroller 
General David Walker, the Senators stressed ``the need for 
improved planning for disasters and the need to exercise plans 
to ensure preparedness.'' The Senators also asked GAO to 
examine selected DHS responses to actual disasters and 
exercises.
    Given that effective, efficient, and timely implementation 
of the Post-Katrina Act is vital to our homeland security, on 
September 17, 2007, Senator Lieberman asked GAO to evaluate DHS 
and FEMA's implementation of the Post-Katrina Act.
    In July 2007, Senator Lieberman was successful, along with 
Senators McCaskill, Obama, Pryor, Landrieu, Kerry, and Johnson, 
in securing Senate passage of a measure in the 2008 Homeland 
Security Appropriations bill that would require comprehensive 
testing for formaldehyde in trailers used to house disaster 
victims and an investigation into FEMA's handling of the issue.
    On October 22, 2007, Senators Lieberman and Collins wrote 
to Secretary Chertoff about the draft National Response 
Framework, a document describing the roles of Federal, State 
and nongovernmental actors in a disaster. In their letter, 
Senators Lieberman and Collins raised several concerns, and in 
some instances, asked questions, about the draft National 
Response Framework, especially as it related to the Post-
Katrina Act. Senator Lieberman was pleased when many of the 
concerns raised in the letter were addressed in the final 
National Response Framework.
    On February 7, 2008, Senators Lieberman, Collins, Landrieu, 
and Stevens wrote to FEMA Administrator Ken Paulison 
criticizing FEMA's failure to have sufficiently improved its 
disaster surge workforce, leaving the Nation susceptible to the 
same problems the country experienced in Hurricane Katrina. The 
letter urged FEMA to make its surge workforce a priority.
    On March 4, 2008, Senator Lieberman endorsed the findings 
of a GAO report that determined FEMA must improve its crisis 
counseling program for victims of catastrophic disasters.
    On April 3, 2008, Senator Lieberman chaired a hearing to 
review progress FEMA had made in its preparedness capabilities 
since Hurricane Katrina and passage of the Post-Katrina 
Emergency Management Reform Act. At the hearing entitled ``The 
New FEMA: Is the Agency Better Prepared for a Catastrophe Now 
Then It Was in 2005?'' DHS Inspector General Richard Skinner 
said the agency had made modest or moderate progress in eight 
of nine categories in need of reform. Senator Lieberman said 
``much more'' remains to be done.
    On June 5, 2008, Senators Lieberman and Collins wrote to 
DHS Secretary Chertoff requesting an update on efforts to 
implement a public emergency response system, as required by an 
Executive Order 2 years earlier.
    On June 25, 2008, the Committee marked up and reported out 
the Predisaster Mitigation Act, S. 3175, which authorized as a 
competitive grant program the FEMA program that gives grants to 
States for projects to mitigate the risk of natural disasters. 
The Pre-Disaster Mitigation Program was later reauthorized in 
legislation signed by the President.
    In late August, in responding to Hurricane Gustav, a major 
hurricane that made landfall in the Gulf Coast, DHS and FEMA 
successfully implemented many of the provisions of the Post-
Katrina Act, leading to a response far better than FEMA's 
response to Hurricane Katrina. On September 2, 2008, Senators 
Lieberman and Collins congratulated FEMA on its response to 
Hurricane Gustav. ``It seems clear that all levels of 
government--Federal, State, and local--and key agencies, 
especially FEMA, have learned important lessons from Hurricane 
Katrina, and those lessons have helped save lives.'' Later in 
September, a second devastating hurricane, Hurricane Ike, 
struck the Gulf Coast, and DHS and FEMA once again used the 
additional tools, resources, and authorities provided in the 
Post-Katrina Act to improve the Federal Government's 
preparedness for and response to the disaster.
    2. Hurricane Katrina Recovery--Due to the extreme 
challenges in recovering from Hurricane Katrina, when Senator 
Lieberman became Chairman of the Committee in January 2007, he 
created the Ad Hoc Subcommittee on Disaster Recovery, chaired 
by Senator Landrieu. This subcommittee has oversight over 
issues related to the government's work in helping communities 
recover from disasters.
    On January 29, 2007, the Committee held a field hearing in 
New Orleans--also attended by Senator Landrieu and Senator 
Obama--to examine the slow pace of the ongoing recovery 
following Hurricane Katrina and the weaknesses in Federal 
programs designed to help.
    On June 29, 2007, Senator Lieberman, responding to a GAO 
report, said that long term rebuilding assistance to the Gulf 
Coast States was needed.
    On August 29, 2007, Senators Lieberman and Landrieu marked 
the second anniversary of Hurricane Katrina's landfall by 
requesting a thorough analysis of what the Federal Government 
has done, is doing, and still can do, to help hurricane victims 
rebuild their lives.
    3. Mass Care--In addition to a hearing in 2008 held on mass 
care as part of the series on preparedness for nuclear 
terrorist attack, Senator Lieberman closely tracked the role of 
voluntary organizations in helping FEMA provide food and 
shelter to victims of a disaster. On April 17, 2007, Senators 
Lieberman and Collins asked GAO to assess how well FEMA would 
be able to coordinate mass care in a catastrophe. The mission 
had previously been assigned to the American Red Cross but DHS 
decided FEMA would be the lead agency. On September 18, 2008, 
Senator Lieberman expressed concern after a GAO report found 
that FEMA still was not fully prepared for a catastrophic 
disaster because it had not filled gaps created by the fact 
that the voluntary organizations upon which it relies for mass 
care and shelter lack the capacity needed to adequately respond 
to disasters.
    On September 24, 2008, Senators Lieberman and Collins sent 
a letter to Senate Appropriations Committee Chairman Robert 
Byrd, D-W.V., and Ranking Member Judd Gregg, R-N.H., requesting 
that the Senate include funding in the 2009 Continuing 
Resolution to the Red Cross for disaster response. A short time 
later, Red Cross received $100 million dollars, which will help 
alleviate its budget constraints due to a high number of large 
scale disasters in 2008.
    4. Private Sector Preparedness--The second 9/11 Commission 
bill, which passed Congress July 27, 2007, established for the 
first time a voluntary certification program to assess whether 
private sector entities are complying with voluntary 
preparedness standards. DHS, in consultation with appropriate 
private sector entities, was tasked with developing program 
guidelines and selecting a qualified nongovernmental entity to 
manage certification and accreditation.
    On July 21, 2008, Senator Lieberman commended DHS for 
beginning to implement its Voluntary Private Sector 
Preparedness Accreditation and Certification Program. Private 
sector's preparedness is critical given that it owns 85 percent 
of the Nation's critical infrastructure.

                        F. Information Security

    The Federal Government's ability to protect its information 
systems and databases hobbled along in 2007, but by 2008 the 
Administration began to tackle the problem with its 
Comprehensive National Cybersecurity Initiative (CNCI), 
although the secrecy surrounding the initiative made oversight 
more difficult.
    On July 27, 2007, GAO found ``significant weaknesses'' 
government-wide in agencies' information security policies and 
practices, placing sensitive data at risk for theft, loss, or 
improper disclosure. ``The Federal Government is not doing 
enough to guarantee the security of its computer systems and 
the vast databases within them,'' Senator Lieberman stated.
    On August 3, 2007, Senator Lieberman released another GAO 
report on the information security of U.S. VISIT, a program 
that tracks visitors entering the country. The report 
maintained that U.S. VISIT's information controls were so weak 
that terrorists could hack into and compromise the integrity of 
the entire system. ``DHS is spending $1.7 billion of taxpayer 
money on a program to detect potential terrorist crossing our 
borders yet isn't taking the most basic precautions to keep 
them from hacking into and changing or deleting sensitive 
information,'' the Senator said.
    In 2008, reports indicating foreign governments had been 
able to hack into Federal computer systems led Senator 
Lieberman to step up his oversight of Federal cybersecurity 
efforts. On March 5, 2008, Senator Lieberman held a classified 
hearing about the little known CNCI, in which DHS has a key 
role. ``The cyber threat to our Nation's computer systems is 
real and we must take action now to secure our government 
systems and vast cyber infrastructure, held largely by the 
private sector,'' the Senator said.
    On May 2, 2008, Senators Lieberman and Collins drafted a 
lengthy letter to Secretary Chertoff seeking detailed 
explanations of various aspects of CNCI. They received a ``for 
office use only'' response on June 2, 2008, asked for a version 
that could be released to the public, and on July 31, 2008, 
they released to the public the answers DHS did not redact.
    Senator Lieberman also co-sponsored the Federal Information 
Security Management Act (FISMA), S. 3474, which was introduced 
on September 11, 2008, by Senator Tom Carper, D-DE. It would 
have amended FISMA to, among other things, create a Chief 
Information Security Officer Council to establish information 
security best practices and guidelines; require DHS to conduct 
``red team'' penetration tests against civilian agencies based 
upon known attacks and vulnerabilities; and help standardize 
information security measures. It was subjected to a Senatorial 
hold.

                   G. Border Security and Immigration

    Border security and immigration issues gained in currency 
as the Senate failed once again to pass massive immigration 
reform and DHS struggled to complete the Southern border fence, 
allowed two tuberculosis patients to cross the border even 
though their medical conditions were known, and tried to 
overcome reports of deaths, lack of health care, and poor 
living conditions among immigrant detainees.
    1. Tuberculosis Investigations--On July 24, 2007, Senators 
Lieberman and Collins asked GAO to investigate the 
circumstances of how an Atlanta, Georgia, man was able to cross 
into the United States over the Canadian border, even though 
his medical condition was known to authorities. In a letter to 
the GAO, the Senators asked for an assessment of why DHS did 
not stop Andrew Speaker from crossing the border. On August 3, 
2007, GAO agreed to study the issue, and Senator Clinton joined 
in the request.
    On October 18, 2007, the media reported another case where 
someone with TB flew across the Southern border multiple times. 
``Our border security and aviation controls are not working if 
this type of breach is allowed to occur over and over again,'' 
Senator Lieberman said.
    On October 30, 2007, Senators Lieberman and Collins wrote 
to Secretary Chertoff, seeking clarifications from DHS and the 
Department of Health and Human Services about their roles in 
the Mexican TB border crossing case, after it was learned that 
his medical condition had been relayed to Customs and Border 
Protection officials.
    On January 24, 2008, Senators Lieberman and Collins wrote 
again to Secretary Chertoff, asking for DHS's ``after action 
report'' on the TB border crossing cases and certain computer 
records relating to the Mexican case.
    The GAO released its report in November 2008, finding that 
DHS and the Department of Health and Human Services failed to 
properly share information and coordinate their efforts.
    2. Treatment of Immigrant Detainees--Since 2005, Senator 
Lieberman has pushed DHS to improve the Nation's treatment of 
asylum seekers and conditions at immigration detention centers, 
develop better alternatives to detention, and expand rights to 
review of detention decisions by immigration judges
    On January 17, 2007, Senator Lieberman warned of potential 
widespread mistreatment of immigration detainees in response to 
a DHS Inspector General audit of five immigration detention 
centers. Less than a month later, on February 8, 2007, the 
Senator announced he would introduce legislation requiring DHS 
to implement the 2005 recommendations of the U.S. Commission on 
International Religious Freedom, to protect asylum seekers from 
harsh treatment in the United States. The legislation tracked 
an amendment offered in 2006 to an immigration reform bill.
    On June 6, 2007, Senator Lieberman won Senate approval of 
his amendment to the Comprehensive Immigration Reform Act of 
2007, S. 1348. The amendment required recorded interviews with 
asylum seekers, accurate translation services, improved 
detention conditions for asylum seekers and other detainees, 
more alternatives to detention, and better oversight of 
detention facilities. The underlying bill, however, failed to 
pass the Senate.
    On January 15, 2008, after complaining to DHS about the 
forced drugging of detainees held for deportation, Immigration 
and Customs Enforcement (ICE) made clear it would bar forced 
drugging without a court order. Senator Lieberman issued a 
statement of commendation.
    On May 12, 2008, the Senator announced his intention to re-
introduce the legislation to ensure humane treatment of asylum 
seekers and other detained immigrants. Also on May 12, 2008, 
Senator Robert Menendez, D-N.J., introduced legislation to 
provide basic medical care to immigration detainees. Senator 
Lieberman gladly joined on as an original co-sponsor, having 
previously introduced similar amendments. The bill was referred 
to the Senate Judiciary Committee.
    On June 11, 2008, the Secure and Safe Detention and Asylum 
Act, S. 3114, was introduced with Senators Sam Brownback, R-
KS., Edward Kennedy, D-MA., and Chuck Hagel, R-NE., The 
measure, essentially identical to the 2006 and 2007 amendments, 
would have required better detention conditions, including 
prompt medical care, unobstructed access to legal counsel, 
limits on solitary confinement, and special standards for 
families and victims of torture or persecution. The legislation 
was referred to the Senate Judiciary Committee.
    3. Traveler Inspections--On June 18, 2007, Senator 
Lieberman joined Senator Conrad and more than half the Senate 
to urge the Secretary of State to take immediate action to 
resolve a passport approval backlog that was ruining the summer 
travel plans of thousands of Americans.
    On November 14, 2007, GAO released a report critical of the 
Nation's traveler inspection procedures. Senators Lieberman and 
Collins asked DHS for details on steps it was taking to 
implement recommendations GAO made in its report, which found 
that Customs and Border Protection personnel were inconsistent 
in their enforcement of border procedures. The Canadian and 
Mexican TB cases vividly illustrated the problems.
    On January 28, 2008, Senator Lieberman announced his 
approval of DHS's intent to begin requiring proof of 
citizenship and identity for all travelers crossing land and 
sea borders into this country from Mexico, Canada, and Bermuda. 
Previously, an oral declaration of citizenship was sufficient.
    On September 16, 2008, Lieberman expressed disappointment 
that DHS was moving forward on its Visa Waiver Program, even 
though key security precautions required by law for current 
participants had not been fully implemented. The comments came 
in response to a GAO report that found DHS management problems 
with the program, specifically that DHS was not able to fully 
assess risks to its electronic travel authorization program, 
much less mitigate those risks.
    On October 16, 2008, Senator Lieberman told the Associated 
Press that the Administration planned on announcing seven new 
Visa Waiver member countries before the electronic screening 
program, the Electronic Security Travel Authorization (ESTA) 
was in effect for current members. The AP produced a story on 
the matter that mentioned Senator Lieberman's concerns about 
ESTA.
    4. Southern Border Initiative--In October 2007, HSGAC staff 
visited the Southern border to review the implementation of 
SBInet. After the on-site visit, Senators Lieberman, Collins, 
and Voinovich wrote Secretary Chertoff on January 31, 2008, 
about a series of problems with SBInet--a part of the 
Administration's troubled Southern Border Initiative, designed 
to keep illegal traffic from entering the country across the 
Southern border. SBInet is the technological part of the 
program--the surveillance and communications infrastructure. 
The Senators expressed concern that the Department had relied 
too heavily on contractors to oversee the network and that the 
program did not have clear operational requirements.
    ``Securing our borders is an important homeland security 
priority; however, wise use of taxpayer dollars requires that 
the SBInet project have clearly defined goals and expectations, 
and that the Department provide assurances to Congress that 
these investments will result in a system that fully meets 
CBP's needs,'' the Senators wrote. ``Therefore, we urge the 
Department to provide greater clarify on CBP's operational 
objectives for SBInet and the projected milestones and 
anticipated costs for the project.''
    Subsequently, Committee staff visited Boeing headquarters 
in Arlington, VA, to review a SBInet demonstration, and have 
been regularly briefed by the Department on challenges faced by 
the SBInet program and its limited progress. In response to 
these briefings, the Senator has urged appropriators to proceed 
with caution in funding the program and demand that additional 
expenditures be justified with clear objectives. Additionally, 
the Senator has emphasized the importance of fully 
understanding associated lifecycle costs.
    5. Agricultural Inspectors--On July 10, 2007, Senator 
Lieberman and Senator Collins authored a letter to the Senate 
Committee on Agriculture, Nutrition, and Forestry stating their 
strong objection to using the farm bill to transfer the border 
agricultural import inspectors from DHS to the Department of 
Agriculture. They ultimately prevented any such measure from 
being attached to the legislation, preventing a significant 
weakening of the integrated border force and saving several 
successful initiatives that have increased the biosecurity of 
the Nation. Senator Lieberman continued to push improvement in 
the agriculture inspection program by proposing several strong 
measures in the DHS authorization bill that would increase 
agriculture inspector effectiveness.

                       H. Transportation Security

    1. Rail and Transit Security--The second installment of the 
9/11 Commission recommendations bill authorized more than $4 
billion over 4 years for rail, transit, and bus security 
grants. It also required that rail and transit systems work 
with DHS to develop comprehensive risk assessments and security 
plans, provided protections for whistleblowers, authorized 
additional surface transportation security inspectors and 
canine units, required improved information sharing techniques 
between Federal, State and local governments, and expanding 
rail and transit security training, exercise, and research and 
development programs.
    2. Port Security--With passage of the second 9/11 
Commission recommendations bill, Congress mandated 100 percent 
scanning within 5 years of maritime cargo before it is loaded 
on ships in foreign ports bound for the United States. Under 
the provision, the Secretary of the Department of Homeland 
Security may extend the deadline by 2-year increments.
    The Committee held a hearing on October 16, 2007, to 
examine implementation of the SAFE Port Act a year after 
Congress passed and the President signed the bill. The 
consensus from witnesses was that the Nation's port security 
has improved as a result of the law and programs authorized by 
it, such as the Container Security Initiative (CSI) and the 
Customs-Trade Partnership Against Terrorism (C-TPAT).
    On June 12, 2008, Senators Lieberman and Collins responded 
to a DHS report that found 100 percent scanning of cargo would 
be possible at smaller ports but cost prohibitive at larger 
ports. Senator Lieberman welcomed the initial data the report 
provided, urged DHS to continue the pilot program so more 
information could be obtained, and has asked the Department to 
define the ``high risk'' corridors it next expects to deploy 
and test the system in.
    3. Aviation Security--The 9/11 Commission recommendations 
bill approved in 2007 authorized funding increases for critical 
aviation security programs, including $250 million annually for 
checkpoint screening, $450 million annually for baggage 
screening, and $50 million annually for the next 4 years for 
aviation security research and development. The bill also 
requires DHS to screen all cargo on passenger airplanes within 
3 years.

                  I. Regulating the Chemical Industry

    Senators Lieberman and Collins drafted bipartisan 
legislation in the 109th Congress to improve security at 
chemical facilities. Although the bill was approved by the 
Committee, it failed to reach the Senate floor, and instead, a 
bare bones version was approved by Congress as part of the FY 
2007 appropriations bill for the Department of Homeland 
Security. In the 110th Congress, as the program got underway, 
Senator Lieberman actively monitored its progress and worked to 
make it as strong as possible.
    He voiced serious concerns on February 9, 2007, about 
chemical security regulations proposed by DHS. In a letter to 
Secretary Chertoff, he took issue with the rules relating to 
the use of safer chemicals and technologies, preemption of 
State and local laws, and accountability for the security 
program. ``The proposed regulations depart from the House and 
Senate chemical security bills in some critical respects,'' he 
wrote, alluding to the Collins-Lieberman bill and a parallel 
House measure from the preceding year.
    When the Department announced its final regulations on 
April 2, 2007, Senator Lieberman commended the Department for 
beginning the process to close a vulnerable security gap but 
criticized it for not following Congressional legislation, 
especially with respect to preempting tougher State laws 
regulating the chemical industry.
    On November 2, 2007, when the Department released its 
revised list of potentially dangerous chemicals that must be 
reported by industry in order to secure chemical facilities, 
Senator Lieberman noted the Department was ``moving forward on 
critical efforts to secure the Nation's chemical sites. This 
new list lays the foundation for the Department to fully assess 
the risk to chemical facilities and require appropriate 
security improvements. The Department consulted a number of 
stakeholders and made adjustments in response to earlier 
criticisms.''
    Senator Lieberman has also fought for adequate funding for 
the new program. In the spring of 2007, he wrote to 
appropriators complaining that the Administration's request for 
the new chemical security program was ``inadequate'' and 
requesting that it be doubled to $50 million--a request 
reflected in the final appropriation. In February 2008, Senator 
Lieberman learned that the Administration requested a $13 
million increase for chemical security in its FY 2009 budget. 
He supported that request in his annual letter to the Senate 
Budget Committee Chairman and Ranking Member. ``The program is 
getting underway and is badly in need of increases resources to 
ensure adequate inspectors and other capabilities,'' he wrote.

                        J. Securing Against IEDs

    Senator Lieberman joined with Senator Collins on November 
1, 2007, to introduce legislation to strengthen Federal 
preparations for the threat of improvised explosive device 
(IED) attacks. The legislation--the National Bombing Prevention 
Act of 2007, S. 2292--would improve DHS's ability to prepare 
State and local government officials, emergency responders, and 
the private sector to prevent against, detect, and respond to 
terrorist explosive attacks by codifying the DHS Office of 
Bombing Prevention, providing additional resources for it, and 
requiring the Administration to produce a long-delayed National 
Strategy for Bombing Prevention. A recent National Intelligence 
Estimate identified IEDs as a significant homeland security 
threat and Senator Lieberman said an IED ``is relatively easy 
and inexpensive to make and can cause mass casualties, even to 
armored military personnel. They are a global threat, and the 
American public here at home is not immune.''
    The Committee favorably reported out the measure on 
November 14, 2007, but it was blocked on the floor by a hold 
from Senator Tom Coburn, R-OK. The bill remained blocked by 
Senator Coburn for the duration of 2008. K. Information Sharing
    On May 1, 2007, Senators Lieberman and Collins wrote to DHS 
Secretary Chertoff and others expressing concerns over the 
Federal Government's failure to adopt government-wide 
procedures for designating and sharing ``Sensitive But 
Unclassified (SBU)'' information within and among all levels of 
government. They requested that the Administration quickly 
adopt and implement a consistent set of procedures for agencies 
to follow when handling SBU information.
    On April 17, 2008, the Senators wrote to President Bush 
encouraging him to implement draft SBU policies that had been 
developed at the interagency level. On May 7, 2008, in part as 
a result of the Senators' letter, the President issues a 
memorandum that set forth new guidelines for the marking, 
handling, and dissemination of Controlled Unclassified 
Information (CUI).
    Title V of the 9/11 Commission Recommendations Act included 
a number of provisions to strengthen terrorism-related 
information-sharing. The bill extended the authorization and 
strengthened the authorities of the Program Manager for the 
Information Sharing Environment, who has played a critical role 
in strengthening information sharing since 2004. The bill also 
established the State and Local Fusion Center Program at DHS to 
improve the Department's support of fusion centers and ensure 
that privacy and civil liberties are adequately protected in 
their operations. The bill also codified the new Interagency 
Threat Assessment Coordination Group (ITACG), a part of the 
NCTC intended to improve dissemination of intelligence to State 
and local stakeholders and ensure that intelligence products 
are written in a way that considers State and local needs.
    On July 23, 2008, the Committee held a hearing to assess 
the progress the government was making to share information 
among Federal agencies and State and local officials. The GAO 
released a report in tandem with the hearing that found that 
despite some progress, goals and milestones for information 
sharing remained unidentified as did a way to measure the goals 
and milestones. L. Miscellaneous
    1. GAO's High-Risk List--In 2007, for the third time in a 
row, the GAO placed DHS on its high-risk list of government 
agencies in danger of mismanagement, fraud, waste, and abuse. 
Senators Lieberman and Collins held a press conference with GAO 
Comptroller General David Walker on January 31, 2007, during 
which General Walker singled out DHS's protection of Federal 
information systems and the Nation's critical infrastructures 
and the establishment of effective information sharing systems 
as areas in need of urgent attention.
    Senator Lieberman acknowledged that coalescing 22 agencies 
and programs, and 180,000 employees into the Department would 
take some time. ``We will continue to work to transform DHS 
into a first-class Department with a special emphasis on 
information sharing and other areas on the GAO high-risk 
list.''
    On September 6, 2007, GAO released a status report on the 
progress the Department has made toward achieving some of its 
mission goals since it was established in 2003. The verdict: 
Significant progress had been made to improve maritime 
security. Only moderate progress has been made in aviation 
security and critical infrastructure protection. And DHS has 
failed in establishing a comprehensive strategy for an agency 
wide transformation. The report also said DHS has not 
adequately involved the private sector in preventing potential 
attacks and its emergency preparedness and response 
capabilities are not yet sufficient for responding to man-made 
or natural disasters.
    Senator Lieberman said: ``This report confirms what many of 
us have believed: First, that the Department has made important 
progress establishing programs and procedures that make us 
safer today than we were before the September 11, 2001, 
attacks. And second, that there are also serious deficiencies 
at the Department that require more focused attention and 
resources than they have received to date. My observation, 
confirmed by DHS and GAO is that the Department is doing a 
better job in fulfilling its missions than it is in managing 
its internal operations.''
    2. Closed Circuit Television--Senator Lieberman 
successfully offered an amendment to the FY 2008 Department of 
Homeland Security appropriations bill that would require DHS to 
develop a national strategy for Closed Circuit TVs (CCTV) to 
guide the Department, as well as State and local governments, 
toward more effective and appropriate use of CCTV. The Senator 
said ``a national strategy for CCTV use would help officials at 
the Federal, State, and local levels use CCTV systems 
effectively to protect citizens, while at the same time making 
sure that appropriate civil liberties protections are 
implemented for the use of cameras and recorded data.
    3. Campus Security--A week after the April 16, 2007, 
massacre of 32 people on the campus of Virginia Tech, Senator 
Lieberman called a hearing on April 23, 2007, to examine campus 
security. The hearing was intended to answer questions about 
the security of college campuses around the country and what 
could be done to make them more secure. It was not intended in 
any way to examine the job performance of Virginia Tech 
administration and security officials. Witnesses at the 
hearing, entitled ``Security on America's College Campuses,'' 
included administrators, campus public safety officials, and 
mental health counselors. All cited measures being implemented 
to protect those who live, work, and study on college campuses 
but reported that campus counseling is stretched thin and will 
require additional resources to adequately serve large 
university populations. They also stressed the need for greater 
coordination between campus agencies and Federal, State, and 
local law enforcement to enable swift, effective responses as 
problems arise.
    4. Homeland Security Academy--On June 15, 2007, Senator 
Lieberman applauded the opening of the Homeland Security 
Academy in Shepherdstown, WV. Established under the auspices of 
DHS, the academy had been advocated by the Senator since the 
Department was first created, and was authorized in legislation 
drafted by the Senator and accepted as part of the 2007 DHS 
appropriations bill.
    5. Federal Protective Service--On February 28, 2007, 
Senator Lieberman and three other Members of the Committee sent 
a letter to Comptroller General David Walker asking him to 
conduct a comprehensive review of the Federal Protective 
Service (FPS), which protects Federal buildings, including its 
ability to help defend against the threat of terrorism under 
current funding levels. On June 19, 2008, the Subcommittee held 
a hearing to examine the results of GAO's first report of 
several on the FPS and its ability to protect Federal employees 
and property.
    House Delegate Eleanor Holmes Norton drafted The Federal 
Protective Service guard Contracting Reform Act of 2007, H.R. 
3068, to prevent FPS from awarding contracts for guard services 
to companies owned, controlled, or operated by individuals 
convicted of serious felonies who may present a risk to the 
security of Federal employees and Federal property. The House 
passed the bill on October 2, 2007.
    At a July 30, 2008, mark up, Senator Lieberman offered an 
amendment in the nature of a substitute that directed DHS to 
develop regulations identifying which serious felonies would 
prohibit a business from being awarded a contract and giving 
the DHS Secretary flexibility to consider permanent or interim 
prohibitions, or both, as necessary. The Committee adopted 
Senator Lieberman's substitute and on September 23, 2008, the 
Senate passed the Federal Protective Service Guard Contracting 
Reform Act of 2008, by unanimous consent. On September 28, 
2008, the House agreed to the Senate amendment, and the bill 
was signed into law on October 8, 2008.

                           CONTRACTING REFORM

    Given the more than $400 billion spent on Federal 
acquisitions annually and the decreasing size of the 
acquisition workforce, the government's record of clear 
contracts and stringent oversight left much to be desired. The 
Senator held a number of hearings and passed legislation to 
improve the accountability and transparency of the procurement 
process. In particular, since the start of U.S. operations in 
Afghanistan and Iraq, Senator Lieberman has pushed for greater 
oversight of reconstruction contracts, and he has been a 
vigilant overseer of DHS contracts since the Department was 
established.

                    A. Wartime Contracting and DCAA

    On March 22, 2007, the Committee held a hearing on a report 
released by the Special Inspector General for Iraqi 
Reconstruction (SIGIR) and pushed for better coordination among 
government agencies involved in reconstruction. The hearing 
provided a platform for the Senator to advance legislation 
Senator Collins introduced, and he co-sponsored, called the 
Accountability in Government Contracting Act, S. 680, to inject 
more competition and transparency into the Federal contracting 
process.
    A number of violent incidents involving private security 
contractors in Iraq and Afghanistan called into question the 
U.S. Government's increasing reliance on private companies to 
perform security functions. Following an investigation by 
Committee staff, on February 27, 2008, Senator Lieberman called 
to order a hearing on the role of private security contractors 
and the regulatory regime governing them. He called on the 
Departments of State and Defense to devise a comprehensive 
framework for the hiring, training, vetting, and oversight of 
private security contractors in foreign theaters.
    On November 1, 2007, Senator Lieberman responded to an 
independent commission report on failures of Army contracting 
in Iraq and Afghanistan. The lessons learned from the report 
``could be applied across the Federal Government,'' Senator 
Lieberman said. ``The number of personnel we have to plan, 
negotiate, and oversee contracts has dwindled while the dollars 
spent on contracts have skyrocketed.''
    Strengthening the Federal acquisition workforce, therefore, 
has been a centerpiece of Senator Lieberman's efforts to 
improve Federal contracting.
    The GAO released a report on March 26, 2008, that found 42 
percent of contract specialists at the Army's Contracting 
Center for Excellence were contractors. The Center was 
responsible for awarding $1.8 billion in contracts in FY 2007. 
Senator Lieberman issued a response calling for the immediate 
overhaul of Federal ethics policies to ensure that conflicts of 
interest don't impair the impartiality of contractors or their 
employees.
    He then authored an amendment, signed into law as part of 
the FY 2009 Defense Authorization Act, requiring stricter 
government-wide conflict-of-interest rules for contractors who 
are hired to assist Federal agencies with their procurements.
    GAO produced another report on July 23, 2008, on the 
Defense Contracting Audit Agency (DCAA) that substantiated 
whistleblower allegations that, at certain DCAA offices, 
auditors' conclusions were overruled by supervisors without 
adequate supporting evidence and that auditors came under 
pressure from supervisors to change audit conclusions to 
benefit contractors. ``This shows a blatant disregard for the 
safeguards that are supposed to be in place to ensure that 
contractors charge the government no more than a fair and 
reasonable price,'' Senator Lieberman said.
    The Committee held a hearing on September 10, 2008, to 
review the GAO report on the DCAA and to hear from the 
whistleblowers about audit manipulation by supervisors. Senator 
Lieberman concluded that DCAA was ``obsessed with the speed of 
process rather than the accuracy of the results.''
    As a result of the hearing, DCAA has undertaken a number of 
reforms, including an overhaul of its performance measures. 
Also, at the request of Senators Lieberman and Collins, GAO is 
conducting a broader review of DCAA auditing practices and is 
expected to report to the Committee late in 2008.

                   B. Contracting Process and S. 680

    On July 17, 2007, the Committee held a hearing on ways to 
strengthen accountability and competition in the Federal 
contracting process. Senator Lieberman said: ``A successful 
system for buying goods and services is more than just 
selecting the right vendor and signing a contract. It requires 
careful planning and negotiation before the contract is signed, 
followed by rigorous oversight through the life of the 
contract. With billions and billions of dollars of the 
taxpayers' money at stake, both the government and contractors 
have a responsibility to do a better job than they are now to 
see that the taxpayers are getting their money's worth.''
    On August 1, 2007, the Committee marked up and reported out 
S. 680 to combat waste, fraud, and abuse in Federal 
contracting.
    On November 8, 2007, the Senate unanimously approved S. 680 
and, in early 2008, several provisions of the bill were signed 
into law as part of the FY 2008 National Defense Authorization 
Act. Key provisions required greater competition by limiting 
the circumstances under which agencies can award large sole 
source contracts, allowing protests of task orders exceeding 
$10 million (in other words, orders placed against existing 
contracts), and providing broader notice and debriefings for 
task and delivery orders exceeding $5 million. In addition, in 
order to bring greater focus to needed improvements in the 
acquisition workforce, the bill created a new position of 
Associate Administrator for Acquisition Workforce Programs 
within the Office of Federal Procurement Policy.
    Additional provisions of S. 680 were signed into law on 
October 18, 2008 as part of the FY 2009 National Defense 
Authorization Act. These reforms include provisions to: Create 
a Contingency Contracting Corps to ensure that emergency 
contracting in response to disasters or in support of military 
operations is performed swiftly, effectively, and efficiently; 
require greater competition of task and delivery orders; limit 
to 1 year the duration of any non-competitive contract; 
regulate use of cost-reimbursement contracts that expose the 
government to greater financial risk than fixed-priced 
contracts; link contractor award fees to outcomes so that 
contractors are not rewarded for poor work; limit tiering of 
subcontracts that allow contractors to charge the government 
while merely passing work along to layers of subcontractors; 
and require the Office of Federal Procurement Policy to prepare 
a long-term plan for increasing the size of the Federal 
acquisition workforce.

                           C. DHS Contracting

    In addition to digging into the details of major DHS 
procurements such as SBInet and ASP's, the Committee continued 
its oversight of broader trends in DHS acquisition. On October 
17, 2007, the Committee held its third contracting hearing of 
the year, this time on the overreliance of DHS on contractors 
to do ``inherently governmental'' work. A GAO report requested 
by the Committee and released at the hearing found that DHS had 
not revisited it original justification for relying on 
contractors--the need to stand the Department up quickly--and 
has not conducted a comprehensive assessment of the appropriate 
mix of Federal employees and contractors.
    On May 8, 2008, the GAO again found significant 
shortcomings in DHS acquisition practices, saying that four out 
of eight major investments at DHS lacked measurable performance 
standards or well defined requirements. ``The lesson is 
simple,'' Lieberman said. ``Know what you want to buy before 
you buy it and have a plan in place to measure the contractor's 
performance.''
    In response to these problems, Senator Lieberman's proposed 
DHS authorization bill would strengthen departmental oversight 
of contracts and strengthen the investment review board process 
for major investments

                       LOBBYING AND ETHICS REFORM

    Continuing the leadership role he played in the 109th 
Congress, Senator Lieberman and HSGAC helped shepherd lobbying 
disclosure and ethics reform legislation, S. 1, through the 
Senate in 2007. As the Rules Committee crafted parts of the 
legislation having to do with internal Senate regulations, 
HSGAC worked on the portions pertaining to lobbyists and 
outside groups. Key provisions within HSGAC jurisdiction: Slow 
the ``revolving door'' between Congress and K Street by 
tightening post-employment restrictions on former Senators and 
senior staff; require quarterly and electronic filing of 
lobbying disclosure reports by lobbyists; require new 
disclosures on lobbying disclosure forms of lobbyist campaign 
contributions and other payments to honor Members of Congress 
and Executive Branch officials; increase civil and criminal 
penalties for knowing violations of the Lobbying Disclosure 
Act; and deny Congressional retirement benefits to Members of 
Congress who are convicted of bribery, perjury, or similar 
crimes. As a floor manager of the bill, Senator Lieberman also 
lent support to other key provisions of the bill, such as those 
to: Ban lobbyists and their clients from giving gifts to 
Senators and their staff; require Senators and their staff to 
pay full charter fare for use of private jets (rather than the 
equivalent of a first-class ticket); ban lobbyists and their 
private-sector clients from paying for multi-day travel for 
Senators and staff; require disclosure under campaign finance 
laws of lobbyists who bundle campaign contributions; and 
require, for the first time, that sponsors of earmarks be 
identified within legislation.
    On January 9, 2007, the Senator helped launch the opening 
of Senate debate on the matter, saying the legislation would 
hold lobbyists and Members of Congress more accountable to the 
public and would help restore the public's confidence in 
Congress following the scandals involving lobbyist Jack 
Abramoff.
    The Senate passed the measure 10 days later on January 19, 
2007. Lieberman praised the move, although he expressed 
disappointment that the Senate rejected an amendment he offered 
with Senators John McCain, R-AZ, Barack Obama, D-IL, and 
Collins for an independent Office of Public Integrity to help 
enforce Senate ethics rules.
    On July 30, 2007, the House and Senate reached agreement on 
the bill, now called the Honest Leadership and Open Government 
Act, S. 1. The Senate passed the conference report on August 2, 
2007, and the President signed it into law on September 14, 
2007.
    On April 11, 2008, Senator Lieberman greeted news that U.S. 
District Court for the District of Columbia rejected a 
challenge by the National Association of Manufacturers to a 
provision in the Honest Leadership and Open Government Act 
regarding transparency of coalitions and associations that 
lobby Congress.
    On March 12, 2008, Senator Lieberman commended House 
Speaker Nancy Pelosi for enacting a new independent system for 
initiating investigations into potential violations of House 
ethics rules, similar to an amendment Senator Lieberman offered 
unsuccessfully in the Senate to create an Office of Public 
Integrity.

                        INSPECTOR GENERAL REFORM

    Senator Lieberman began working with Senators Collins and 
Claire McCaskill, D-MO., in 2007 to draft and pass legislation 
to strengthen the Federal Government's corps of Inspectors 
General (IGs). On July 11, 2007, Senators Lieberman and Collins 
convened a hearing on the need for reform and called for 
legislation to strengthen the independence and accountability 
of IGs based on the testimony they heard, which included 
concerns that some IGs had been retaliated against by agency 
heads for critical investigations while others lacked 
appropriate independence from their agency heads.
    On November 8, 2007, the three Senators plus Senator Tom 
Coburn introduced the Inspector General Reform Act of 2007, S. 
2324, to build upon the strong tradition of inspectors general 
by guaranteeing that qualified individuals are appointed, that 
they remain independent of pressure or influences from the 
agencies they investigate and that IG reports be made more 
accessible to the public. A week later, on November 14, 2007, 
the Committee marked up and reported out the legislation. On 
April 24, 2008, the Senate passed the legislation, which would 
require that Congress be notified of any proposal to remove an 
IG within 30 days; that a Council on Integrity and Efficiency 
for Inspectors General be established; that all IG audits be 
posted on publicly accessible Websites within 3 days of 
issuance; and, among other things, that the President's budget 
proposal show how much money is requested for each IG office 
and the funding level requested by that office.
    Senator Lieberman and the other lead sponsors worked with 
the House to reconcile the Senate-passed bill with a comparable 
House measure (H.R. 928). Final Senate passage came on 
September 24, 2008, by unanimous consent, with a unanimous 
House vote coming 3 days later. The legislation was signed into 
law on October 14, 2008 (P.L. 110-409).

                        COMMODITIES SPECULATION

    As food and fuel prices soared during the first part of 
2008 and consumers felt the pinch, Senator Lieberman called for 
a series of hearings to investigate the unprecedented level of 
cost increases of these commodities. A hearing held on May 7, 
2008, looked at the impact that fuel subsidies might have on 
food supply and prices. Witnesses explained that food prices 
had increased dramatically for many reasons, including higher 
demand in developing countries, higher energy costs, and 
drought in food producing countries like Australia and the 
Ukraine. The increased demand for corn-based ethanol was also 
identified as a factor and one that could be addressed through 
revised government policy.
    The Committee held a second hearing on May 20, 2008, about 
the impact of financial speculation by institutional investors 
and hedge funds in the commodity markets as a factor in rising 
food and fuel costs. Potential solutions were discussed at the 
hearing, including barring certain institutional investors such 
as pension funds, from investing in commodity markets through 
the use of index funds and closing the so-called swaps loophole 
that allows large investors to sidestep limits on excessive 
speculative activity in the commodity markets.
    On June 18, 2008, Senators Lieberman and Collins held a 
press conference to unveil three proposals to help curb 
escalating commodity prices and posted the proposals on the 
Committee Website for public comment. The proposals, based on 
testimony from the previous two hearings, would have prohibited 
certain large pension funds and governmental entities from 
investing in commodities; or would have capped the amount of 
overall market share in any one commodity that could be held by 
financial speculators; or would close the swaps loophole.
    On June 24, 2008, the Committee held its third hearing, 
this time to hear testimony from financial experts about the 
legislative proposals. Across the board, witnesses endorsed the 
proposal to close the swaps loophole and expressed various 
degrees of skepticism about the other two proposals.
    On July 11, 2008, Senators Lieberman, Collins, and 
Cantwell, D-WA., introduced the Commodity Speculation Reform 
Act of 2008, S. 3248. The legislation would have closed the 
swaps loophole, required the Commodity Futures Trading 
Commission (CFTC) to consider the effect of speculation when 
setting position limits, extend existing rules that apply to 
regulated exchanges to unregulated over the counter and foreign 
markets, direct the CFTC to set speculative position limits 
rather than letting them be set by the futures exchanges, and 
remedy CFTC staffing shortfalls.
    Financier T. Boone Pickens was the star witness at the 
Committee's fourth and final hearing on the subject of the high 
cost of food and fuel. The July 22, 2008, hearing focused on 
how the Nation could improve its energy security by reducing 
the amount of oil used by the transportation sector and the 
effect reduced oil consumption would have on process and 
pollution.

                          DISTRICT OF COLUMBIA


                            A. Voting Rights

    The 110th Congress saw Senator Lieberman renew efforts he 
began in 2001 to provide voting rights to the citizens of the 
District of Columbia. A new strategy was developed by Rep. Tom 
Davis, R-VA., and Delegate Eleanor Holmes Norton to concentrate 
on voting rights in the House of Representatives for District 
residents, paired with the addition of another representative 
for the State of Utah, in keeping with updated census numbers.
    On April 16, 2007, Senator Lieberman introduced such 
legislation with Senators Orrin Hatch and Bob Bennett, both 
Utah Republicans. The District of Columbia House Voting Rights 
Act of 2007, S. 1257, would have righted an historic wrong by 
giving voting rights to citizens who ``pay taxes and die for 
the Nation's democracy like other voting citizens.'' The bill 
also would have added a fourth congressional district for Utah, 
based upon 2000 census data.
    On May 15, 2007, the Senator called a hearing before the 
Committee and heard arguments from both Republicans and 
Democrats for granting voting rights to D.C. residents. 
Witnesses included D.C. Mayor Adrian Fenty, Rep. Davis, and 
Delegate Norton. Senator Collins expressed her support for the 
bill calling it a ``matter of fundamental fairness.'' On June 
13, 2007, the Committee favorable reported the measure out of 
Committee on a bipartisan vote of 9-1.
    Despite Senator Lieberman's optimism for the bill, it 
failed to win the necessary 60 votes to overcome a filibuster 
on September 18, 2007, falling three votes shy with a 57-42 
tally. The Senator vowed to continue to work to gain the 
necessary three votes.

                               B. Courts

    Senator Lieberman worked to secure passage of two bills to 
assist with the smooth and proper functioning of the District 
of Columbia court system, which, since enactment of the 
National Capital Revitalization and Self-Government Improvement 
Act of 1997, has been under Federal jurisdiction.
    The first of these bills, S. 550, was cosponsored by 
Senator Lieberman and was intended to preserve existing 
judgeships on the D.C. Superior Court that were inadvertently 
affected by the District of Columbia Family Court Act of 2001. 
The District of Columbia Family Court Act had the effect of 
permitting an increase in the number of judges serving on the 
Family Court division of the D.C. Superior Court. At the same 
time, the Family Court Act failed to adjust the ceiling on the 
overall number of judges who could serve on the Superior Court, 
effectively reducing the number of judges in non-Family Court 
assignments. S. 550 corrected this problem by increasing the 
overall number of associate judges on the Superior Court from 
58 to 61. It was signed into law on April 18, 2008 (P.L. 110-
201).
    The second bill, H.R. 5551, authorized an increase in the 
hourly compensation for private attorneys appointed to 
represent indigent criminal defendants in the D.C. Superior 
Court and the D.C. Court of Appeals and increase the maximum 
total compensation such attorneys can receive for each case. 
This was the first time compensation amounts had been increased 
since 2002. The funds to support the increased rates had been 
appropriated in the 2008 D.C. Appropriations Act but could not 
be used without the corresponding changes in the D.C. Code 
enacted by H.R. 5551. H.R. 5551 became law on October 2, 2008 
(P.L. 110-335).

                              E-GOVERNMENT

    Senator Lieberman introduced the E-Government Act of 2007, 
S. 2321, on November 7, 2007, to renew for another 5 years the 
original 2002 legislation aimed at improving the government's 
use of information technology to collaborate and interact with 
the public. On November 14, 2007, the Act was marked up and 
passed out of Committee but the Senate never acted. It was 
marked up and reported out again September 16, 2008, but was 
the object of a Senatorial hold.
    The next month, the Committee held a hearing on December 
11, 2007, on ways for the Federal Government to provide greater 
accessibility to, transparency of, and interactivity with 
Federal services and information. Leading public and private 
sector witnesses, including Wikipedia founder Jimmy Wales, 
testified to the challenges of making Federal Government 
information more accessible, transparent, and interactive.

                      PROTECTING FEDERAL EMPLOYEES


                          A. Domestic Partners

    On December 19, 2007, Senators Lieberman, Gordon Smith, R-
Ore., and 20 co-sponsors introduced legislation to extend 
domestic partner benefits to Federal employees. More than half 
of Fortune 500 companies and almost 10,000 others, provide 
benefits to domestic partners. So do hundreds of State and 
local governments--including Connecticut and Oregon--and scores 
of colleges and universities. ``It's time for the Federal 
Government to catch up to the private sector, not just to set 
an example but so that it can compete for the most qualified 
employees and ensure that all of our public servants receive 
fair and equitable treatment,'' the Senator said. ``It makes 
good economic and policy sense. And it is the right thing to 
do.''
    On September 24, 2008, Senator Lieberman held the first 
hearing ever on domestic partner benefits for Federal employees 
to discuss the Domestic Partnership Benefits and Obligations 
Act of 2007, S. 2521. Although time had run out in the 110th 
Congress to pass the bill, Senator Lieberman vowed to pursue it 
in the 111th Congress.

                           B. Employee Rights

    1. Transportation Security Administration Employee Rights--
Since the establishment of the Department of Homeland Security, 
Senator Lieberman has fought vigorously for the rights of DHS 
employees. Ever since Transportation Security Administration's 
(TSAs) screeners were denied their collective bargaining rights 
and other employee protections, Senator Lieberman has worked to 
restore them.
    On February 15, 2008, HSGAC marked up the second 9/11 
Commission recommendations bill. An amendment offered by 
Senator Lieberman to revise TSA's management practices to 
provide TSA screeners with the same rights and protections as 
other TSA or homeland security personnel was accepted by the 
full Committee.
    On the floor of the Senate, Senator Lieberman and others 
successfully defended the Lieberman provision against attempts 
to strike or weaken it, but, unfortunately, the provision was 
dropped in conference.
    2. DHS Employee Rights--On February 19, 2008, Senator 
Lieberman hailed the end of a long fight over DHS employee 
rights with a victory for the employees. After the creation of 
the Department, DHS had tried to deny employees collective 
bargaining rights because it said their work was national 
security related. The National Treasury Employees Union had 
filed suit against the Department in 2002. Senator Lieberman's 
statement came as DHS announced its decision to drop its legal 
efforts to revise its labor regulations.
    3. DHS Employee Praise--On March 5, 2008, during the fifth 
anniversary week of the establishment of the Department, 
Senators Lieberman and Collins introduced a resolution saluting 
the Department's 208,000 employees for their ``sacrifices and 
commitment'' and expressing the Nation's appreciation for their 
work.
    4. GAO Employee Pay and Benefits--In January 2008, Senator 
Lieberman introduced the Government Accountability Office Act 
of 2007, S. 2564, to improve statutes governing GAO's 
authorities and operations in a number of ways. On June 25, 
2008, the Committee considered a modified version of the bill, 
H.R. 5683, which focused on resolving a long-standing dispute 
between GAO and many of its employees over pay and benefits. 
Senator Lieberman worked to achieve an acceptable compromise 
that would adequately protect GAO employees, and such 
legislation was enacted on September 22, 2008.

                        WORKING FOR CONNECTICUT

    Senator Lieberman's chief work on behalf of Connecticut--as 
Chairman of the Committee--revolved around ensuring Connecticut 
was given fair consideration in the quest for sufficient 
homeland security funding to protect its long coastline, its 
critical infrastructure, particularly its transportation 
network and nuclear power plant, and to train and equip 
Connecticut first responders in the event they were needed 
again to help New York recover from a terrorist attack. His 
efforts to establish a fair homeland security grant funding 
formula and to establish that formula into law served the State 
well. Connecticut secured $39.9 million in homeland security 
grants in 2007, which included a one time only $13 million 
grant for interoperability; and $33.9 million, so far, in 2008. 
(Additional FY 2008 grants through the Assistance to 
Firefighters Grants program are still anticipated). The 
Department recently announced tentative 2009 homeland security 
grants to Connecticut from several different programs totaling 
approximately $25 million. Important additional grant funding--
including transit security and fire grants--will be announced 
at a later date.

                    A. Port, Transit Security Grants

    Senator Lieberman worked to secure millions of dollars in 
port and transit security grants to Connecticut, which has a 
long coastline bordering the Long Island Sound and a major 
commuter rail line, Metro North, for commuters into the New 
York area. On May 10, 2007, he and Senator Dodd announced $1.3 
million in port and transit security funds from the 
Infrastructure Protection Program for Bridgeport, New Haven, 
and New London. On August 17, 2007, he announced another $2 
million in grants for ports in New London, Bridgeport, and New 
Haven. On November 5, 2008, he announced that those ports would 
receive $4.3 million in 2009.

                B. Urban Area Security Initiative Grants

    Urban Area Security Initiative (UASI) grants provide 
funding to the Nation's highest risk metropolitan areas. In 
drafting the 9/11 Commission Recommendations Act, Senator 
Lieberman sought to ensure that each of the Nation's 100 
largest metropolitan areas would have an opportunity to provide 
relevant information to DHS about the terrorism risks they 
faced and that DHS would have to consider relevant risk factors 
such as population density and coastlines. Using these new 
procedures, in FY 2008 DHS for the first time awarded UASI 
grants to the Hartford and Bridgeport metropolitan areas--the 
first time a Connecticut city had received UASI funding since a 
grant to New Haven in 2004. The East and West Hartford region 
was awarded $1.997 million and the Bridgeport-Stamford-Norwalk 
region was awarded $1.967 million in FY 2008. DHS recently 
announced that both areas will receive UASI grants again in FY 
2009 and that the amounts of both grants will be increased: The 
Hartford metropolitan area is slated to receive $2.7 million 
and the Bridgeport Region to receive $2.8 million.

               C. General Homeland Security, Disaster Aid

    On July 18, 2007, Senator Lieberman announced that 
Connecticut would receive more in FY 2007 homeland security 
grants than it did in FY 2006, and he announced a one-time 
grant of $13 million for interoperable communications.
    On June 13, 2008, he announced Connecticut would receive 
disaster aid for five Connecticut counties hit hard by storm 
flooding that had previously been turned down for FEMA aid.

                             D. Immigration

    On June 11, 2007, Senators Lieberman and Christopher Dodd 
and Rep. Chris Shays asked Secretary Michael Chertoff for 
clarification about the timing of and way in which an 
immigration raid in New Haven was conducted. Witnesses 
suggested that violations of protocol may have occurred and the 
raid came the day after the New Haven Board of Aldermen 
approved a city identification card available for all 
residents, including undocumented immigrants.

                             MISCELLANEOUS


                           A. Bipartisanship

    The first session of the 110th Congress witnessed a 
personal change in Senator Lieberman's self identification as a 
Democrat. Following a difficult 2006 election in which he lost 
the Democratic primary but was re-elected in November under an 
independent banner, he changed his party affiliation to 
Independent-Democrat.
    In part because of the Senator's new status and in part to 
express his commitment to bipartisanship, he and Senator 
Collins announced a new dais seating arrangement whereby 
Democrats and Republicans would alternate seats, rather than be 
separated on opposite sides of the dais. Senator McCaskill 
offhandedly suggested the idea, and the Chairman and Ranking 
Member happily implemented it.
    ``In the last election, the voters said they were sick of 
the partisanship that produces gridlock,'' Senators Lieberman 
and Collins said in a joint statement on March 9, 2007. ``They 
want us to work together and get things done. So, as a start, 
instead of sitting on opposite sides of the room like a house 
divided, we want the American people to see us sitting side by 
side as our Committee Members work together to make our Nation 
more secure and our government more efficient.''

                          B. New Subcommittees

    Senator Lieberman used his power as Committee Chairman to 
expand the Committee by establishing and funding two new ad hoc 
subcommittees--one called Disaster Recovery led by Senator Mary 
Landrieu and the other called State, Local, and Private Sector 
Preparedness and Integration, led by Senator Mark Pryor.

                             C. CRS Reports

    On December 11, 2007, Senators Lieberman, John McCain, 
Collins, John Cornyn, Russ Feingold, Tom Harkin, Patrick Leahy, 
Dick Lugar, and Claire McCaskill introduced S. Res. 401, a 
resolution to provide wider public access to valuable 
Congressional Research Service (CRS) reports. It was referred 
to the Rules Committee. Although Rules did not pass the 
resolution, it requested that CRS begin a pilot to 
automatically place these reports on Members' Websites. On 
February 28, 2008, in a letter to Rules Committee Chairman 
Dianne Feinstein, D-CA., Lieberman asked the Rules Committee to 
implement a pilot program, along the lines of S. Res. 401, 
guaranteeing full access. ``Unfortunately, Congress and CRS' 
policies have severely limited the public's ability to read 
these unclassified reports,'' the Senator wrote. The Rules 
Committee measure was in the process of being implemented.

                        D. Presidential Records

    On June 20, 2007, the Committee considered and reported out 
H.R. 1255/S. 886 the Presidential Records Act Amendments of 
2007. Senator Lieberman was a cosponsor of S. 886. This bill 
repealed a 2001 Executive Order that undermined the 
Presidential Records Act of 1978, creating new obstacles for 
the timely release of Presidential Records after the conclusion 
of a presidency. These new authorities included the expansion 
of executive privilege to allow a former President's designees 
and descendents to prevent the release of these records 
altogether. In addition to repealing the Executive Order, the 
bill created a new process to ensure that the intent of the 
Presidential Records Act would be met. The White House opposed 
the bill, and efforts to reach a compromise were unsuccessful. 
Senator Jim Bunning initially put a hold on the legislation, 
followed by Senator Jeff Sessions.
    Senator Lieberman lobbied to get the bill passed. These 
efforts included press releases and statements given to the 
press, as well as an oped written by the Senator and published 
in The Dallas Morning News that also discussed the Presidential 
Library Donation Reform Act.

                   E. Presidential Library Donations

    The Committee has worked to pass H.R. 1254, the 
Presidential Library Donation Reform Act of 2007, a major 
reform bill that would require disclosure of donations to 
presidential libraries. There are now no requirements for these 
donations to be reported except in limited cases. On August 1, 
2007, the Committee passed the legislation, by Senator 
Lieberman with a substitute amendment to address concerns of 
Committee Members--creating different disclosure requirements 
for sitting presidents and former presidents. Despite these 
changes, the bill faced a hold on the floor by Senator Stevens, 
who wanted the bill only to apply to future presidents. The 
Committee continued to revise the bill to close potential 
loopholes and further reduce the reporting the requirements for 
former presidents. The Committee attempted to pass the bill 
with a new substitute amendment on July 31, 2007, but Senator 
Stevens continued to object to Unanimous Consent passage.

                                 F. GAO

    On March 21, 2007, the Committee held a hearing to examine 
GAO's needs to meet the growing demand for examinations into 
how the Federal Government can become more effective and save 
taxpayers money. ``We depend heavily on GAO,'' Senator 
Lieberman said. ``In the last 12 months alone, we've received 
over 200 reports from the office.''

                               G. Privacy

    On May 6, 2007, Senators Lieberman reacted to the theft of 
a TSA hard drive containing personal information of current and 
past employees. ``We have witnessed far too many incidents over 
the past few years in which Federal employees or American 
citizens are subjected to potential identity theft because of 
the negligence of government agencies.'' He called for 
improvements in Federal privacy protections, and staff began 
consideration of new privacy legislation.
    On June 18, 2008, Senator Lieberman and Collins responded 
to a GAO report noting weaknesses in Federal privacy policy, 
relating to the protection of personal information that becomes 
part of government databases. Senator Lieberman, who originally 
requested the report, said that Federal privacy policy must be 
updated for the digital age to protect the growing amount of 
personally identifiable information the government collects, 
uses, and stores.

                       II. COMMITTEE JURISDICTION

    The jurisdiction of the Committee (which was renamed the 
Committee on Homeland Security and Governmental Affairs when 
the 109th Congress convened) derives from the Rules of the 
Senate and from Senate Resolutions:

                                RULE XXV

                            * * * * * * * *

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

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

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

                  SENATE RESOLUTION 89, 110TH CONGRESS

        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS.

    Sec. 11. (a) * * *

                            * * * * * * * *

    (e) INVESTIGATIONS----
    (1) In General--The committee, or any duly authorized 
subcommittee of the committee, is authorized to study or 
investigate----
    (A) the efficiency and economy of operations of all 
branches of the Government including the possible existence of 
fraud, misfeasance, malfeasance, collusion, mismanagement, 
incompetence, corruption, or unethical practices, waste, 
extravagance, conflicts of interest, and the improper 
expenditure of Government funds in transactions, contracts, and 
activities of the Government or of Government officials and 
employees and any and all such improper practices between 
Government personnel and corporations, individuals, companies, 
or persons affiliated therewith, doing business with the 
Government; and the compliance or noncompliance of such 
corporations, companies, or individuals or other entities with 
the rules, regulations, and laws governing the various 
governmental agencies and its relationships with the public;
    (B) the extent to which criminal or other improper 
practices or activities are, or have been, engaged in the field 
of labor-management relations or in groups or organizations of 
employees or employers, to the detriment of interests of the 
public, employers, or employees, and to determine whether any 
changes are required in the laws of the United States in order 
to protect such interests against the occurrence of such 
practices or activities;
    (C) organized criminal activity which may operate in or 
otherwise utilize the facilities of interstate or international 
commerce in furtherance of any transactions and the manner and 
extent to which, and the identity of the persons, firms, or 
corporations, or other entities by whom such utilization is 
being made, and further, to study and investigate the manner in 
which and the extent to which persons engaged in organized 
criminal activity have infiltrated lawful business enterprise, 
and to study the adequacy of Federal laws to prevent the 
operations of organized crime in interstate or international 
commerce; and to determine whether any changes are required in 
the laws of the United States in order to protect the public 
against such practices or activities;
    (D) all other aspects of crime and lawlessness within the 
United States which have an impact upon or affect the national 
health, welfare, and safety; including but not limited to 
investment fraud schemes, commodity and security fraud, 
computer fraud, and the use of offshore banking and corporate 
facilities to carry out criminal objectives;
    (E) the efficiency and economy of operations of all 
branches and functions of the Government with particular 
reference to----
    (i) the effectiveness of present national security methods, 
staffing, and processes as tested against the requirements 
imposed by the rapidly mounting complexity of national security 
problems;
    (ii) the capacity of present national security staffing, 
methods, and processes to make full use of the Nation's 
resources of knowledge and talents;
    (iii) the adequacy of present intergovernmental relations 
between the United States and international organizations 
principally concerned with national security of which the 
United States is a member; and
    (iv) legislative and other proposals to improve these 
methods, processes, and relationships;
    (F) the efficiency, economy, and effectiveness of all 
agencies and departments of the Government involved in the 
control and management of energy shortages including, but not 
limited to, their performance with respect to----
    (i) the collection and dissemination of accurate statistics 
on fuel demand and supply;
    (ii) the implementation of effective energy conservation 
measures;
    (iii) the pricing of energy in all forms;
    (iv) coordination of energy programs with State and local 
government;
    (v) control of exports of scarce fuels;
    (vi) the management of tax, import, pricing, and other 
policies affecting energy supplies;
    (vii) maintenance of the independent sector of the 
petroleum industry as a strong competitive force;
    (viii) the allocation of fuels in short supply by public 
and private entities;
    (ix) the management of energy supplies owned or controlled 
by the Government;
    (x) relations with other oil producing and consuming 
countries;
    (xi) the monitoring of compliance by governments, 
corporations, or individuals with the laws and regulations 
governing the allocation, conservation, or pricing of energy 
supplies; and
    (xii) research into the discovery and development of 
alternative energy supplies; and
    (G) the efficiency and economy of all branches and 
functions of Government with particular references to the 
operations and management of Federal regulatory policies and 
programs.
    (2) EXTENT OF INQUIRIES--In carrying out the duties 
provided in paragraph (1), the inquiries of this committee or 
any subcommittee of the committee shall not be construed to be 
limited to the records, functions, and operations of any 
particular branch of the Government and may extend to the 
records and activities of any persons, corporation, or other 
entity.
    (3) SPECIAL COMMITTEE AUTHORITY--For the purposes of this 
subsection, the committee, or any duly authorized subcommittee 
of the committee, or its chairman, or any other member of the 
committee or subcommittee designated by the chairman, from 
March 1, 2007, through February 28, 2009, is authorized, in 
its, his, or their discretion----
    (A) to require by subpoena or otherwise the attendance of 
witnesses and production of correspondence, books, papers, and 
documents;
    (B) to hold hearings;
    (C) to sit and act at any time or place during the 
sessions, recess, and adjournment periods of the Senate;
    (D) to administer oaths; and
    (E) to take testimony, either orally or by sworn statement, 
or, in the case of staff members of the Committee and the 
Permanent Subcommittee on Investigations, by deposition in 
accordance with the Committee Rules of Procedure.
    (4) AUTHORITY OF OTHER COMMITTEES--Nothing contained in 
this subsection shall affect or impair the exercise of any 
other standing committee of the Senate of any power, or the 
discharge by such committee of any duty, conferred or imposed 
upon it by the Standing Rules of the Senate or by the 
Legislative Reorganization Act of 1946.
    (5) SUBPOENA AUTHORITY--All subpoenas and related legal 
processes of the committee and its subcommittee authorized 
under S. Res. 50, agreed to February 17, 2005 (109th Congress) 
are authorized to continue.

           III. BILLS AND RESOLUTIONS REFERRED AND CONSIDERED

    During the 110th Congress, 202 Senate bills and 149 House 
bills were referred to the Committee for consideration. In 
addition, 9 Senate Resolutions and 2 Senate Concurrent 
Resolutions were referred to the Committee.
    The Committee reported 149 bills; an additional 28 measures 
were discharged.
    Of the legislation received by the Committee, 113 measures 
became public laws, including 93 postal naming bills.

                              IV. HEARINGS

    During the 110th Congress, the Committee held 69 hearings 
on legislation, oversight issues, and nominations.
    The Committee also held 14 scheduled business meetings.
    Lists of hearings with copies of statements by Members and 
witnesses, with archives going back to 1997, are online at the 
Committee's Web site, http://hsgac.senate.gov/.
    Hearing titles and dates follow:
    Ensuring Full Implementation of the 9/11 Commission's 
Recommendations. Jan. 9, 2007. (Printed, 271 pp. S. Hrg. 110-
865.)
    Hurricanes Katrina and Rita: Outstanding Need, Slow 
Progress. Field Hearing in New Orleans, Louisiana. Jan. 29, 
2007. (Printed, 192 pp. S. Hrg. 110-33.)
    The Homeland Security Department's Budget Submission for 
Fiscal Year 2008. Feb. 13, 2007. (Printed, 249 pp. S. Hrg. 110-
633.)
    Violence Islamist Extremism. The Threat of Islamic 
Radicalism to the Homeland. Mar. 14, 2007. The Internet: A 
Portal to Violent Islamist Extremism. May 3, 2007. Violent 
Islamist Extremism: Government Efforts to Defeat It. May 10, 
2007. Violent Islamist Extremism: The European Experience. June 
27, 2007. The Role of Local Law Enforcement in Countering 
Violent Islamist Extremism. Oct. 30, 2007. (Printed, 747 pp. S. 
Hrg. 110-178.)
    Nomination of Gregory B. Cade to be Administrator, U.S. 
Fire Administration, U.S. Department of Homeland Security. Mar. 
15, 2007. (Printed, 48 pp. S. Hrg. 110-21.)
    GAO's Role in Supporting Congressional Oversight: An 
Overview of Past Work and Future Challenges and Opportunities. 
Mar. 21, 2007. (Printed, 74 pp. S. Hrg. 110-322.)
    Deconstructing Reconstruction: Problems, Challenges, and 
the Way Forward in Iraq and Afghanistan. Mar. 22, 2007. 
(Printed, 417 pp. S. Hrg. 110-331.)
    Dangerous Exposure: The Impact of Global Warming on Private 
and Federal Insurance. Apr. 19, 2007. (Printed, 170 pp. S. Hrg. 
110-147.)
    Security on America's College Campuses. Apr. 23, 2007. 
(Printed, 102 pp. S. Hrg. 110-867.)
    Nomination of Howard C. Weizmann to be Deputy Director, 
U.S. Office of Personnel Management. May 1, 2007. (Printed, 58 
pp. S. Hrg. 110-74.)
    Equal Representation in Congress: Providing Voting Rights 
to the District of Columbia. May 15, 2007. (Printed, 273 pp. S. 
Hrg. 110-575.)
    Implementing FEMA Reform: Are We Prepared for the 2007 
Hurricane Season? May 22, 2007. (Printed, 294 pp. S. Hrg. 110-
566.)
    The Juvenile Diabetes Research Foundation and the Federal 
Government: A Model Public-Private Partnership Accelerating 
Research Toward a Cure. June 19, 2007. (Printed, 61 pp. S. Hrg. 
110-316.)
    Strenghthening the Unique Role of the Nation's Inspectors 
General. July 11, 2007. (Printed, 147 pp. S. Hrg. 110-587.)
    Federal Acquisition: Ways to Strengthen Competition and 
Accountability. July 17, 2007. (Printed, 110 pp. S. Hrg. 110-
891.)
    The Military's Role in Disaster Response: Progress Since 
Hurricane Katrina. July 19, 2007. (Printed, 150 pp. S. Hrg. 
110-549.)
    Nomination of Hon. James A. Nussle, to be Director, Office 
of Management and Budget. July 24, 2007. (Printed, 134 pp. S. 
Hrg. 110-620.)
    Nomination of Dennis R. Schrader to be Deputy Administrator 
for National Preparedness, Federal Emergency Management Agency, 
U.S. Department of Homeland Security. July 25, 2007. (Printed, 
89 pp. S. Hrg. 110-274.)
    Department of Homeland Security Status Report: Assessing 
Challenges and Measuring Progress. Sept. 6, 2007. (Printed, 460 
pp. S. Hrg. 110-588.)
    Confronting the Terrorist Threat to the Homeland: Six Years 
After 9/11. Sept. 10, 2007. (Printed, 162 pp. S. Hrg. 110-893.)
    Nomination of Hon. Julie L. Myers to be Assistant 
Secretary, U.S. Immigration and Customs Enforcement, U.S. 
Department of Homeland Security. Sept. 12, 2007. (Printed, 211 
pp. S. Hrg. 110-556.)
    One Year Later: A Progress Report on the Security and 
Accountability for Every (Safe) Port Act. Oct. 16, 2007. 
(Printed, 139 pp. S. Hrg. 110-676.)
    Is the Department of Homeland Security Too Dependent on 
Contractors to Do the Government's Work? Oct. 17, 2007. 
(Printed, 126 pp. S. Hrg. 110-530.)
    Nomination of Hon. Ellen C. Williams to be a Governor, U.S. 
Postal Service. Oct. 18, 2007. (Printed, 43 pp. S. Hrg. 110-
276.)
    Six Years After Anthrax: Are We Better Prepared to Respond 
to Bioterrorism? Oct. 23, 2007. (Printed, 160 pp. S. Hrg. 110-
558.)
    Watching the Watch List: Building an Effective Terrorist 
Screening System. Oct. 24, 2007. (Printed, 312 pp. S. Hrg. 110-
621.)
    Nominations of Robert D. Jamison to be Under Secretary for 
National Protection and Programs, and W. Ross Ashley III to be 
Assistant Administrator for Grant Programs of the Federal 
Emergency Management Agency, U.S. Department of Homeland 
Security. Nov. 9, 2007. (Printed, 166 pp. S. Hrg. 110-528.)
    E-Government 2.0: Improving Innovation, Collaboration, and 
Access. Dec. 11, 2007. (Printed, 119 pp. S. Hrg. 110-894.)
    Nominations of Harvey E. Johnson, Jr. to be Deputy 
Administrator, Federal Emergency Management Agency, U.S. 
Department of Homeland Security, and Jeffrey W. Runge to be 
Assistant Secretary for Health Affairs and Chief Medical 
Officer, and U.S. Department of Homeland Security. Dec. 12, 
2007. (Printed, 260 pp. S. Hrg. 110-577.)
    Nomination of Steven H. Murdock to be Director of the 
Census, U.S. Department of Commerce. Dec. 18, 2007. (Printed, 
72 pp. S. Hrg. 110-524.)
    Nuclear Terrorism: The Defense Department's Homeland 
Security Role: How the Military Can and Should Contribute. Feb. 
13, 2008; Nuclear Terrorism: Assessing the Threat to the 
Homeland. Apr. 2, 2008; Nuclear Terrorism: Confronting the 
Challenges of the Day After. Apr. 15, 2008; Nuclear Terrorism: 
Providing Medical Care and Meeting Basic Needs in the 
Aftermath. May 15, 2008; Nuclear Terrorism: Providing Medical 
Care and Meeting Basic Needs in the Aftermath--The Federal 
Response. June 26, 2008; The Global Nuclear Detection 
Architecture: Are We Building Domestic Defenses That Will Make 
the Nation Safer From Nuclear Terrorism? July 16, 2008; and 
Preventing Nuclear Terrorism: Hard Lessons Learned From 
Troubled Investments. Sept. 25, 2008. (7 Days) (Printed, 903 
pp. S. Hrg. 110-1038.)
    The Homeland Security Department's Budget Submission for 
Fiscal Year 2008. Feb. 14, 2008. (Printed, 137 pp. S. Hrg. 110-
996.)
    An Uneasy Relationship: U.S. Reliance on Private Security 
Firms in Overseas Operations. Feb. 27, 2008. (Printed, 162 pp. 
S. Hrg. 110-1016.)
    Census in Peril: Getting the 2010 Decennial Back on Track--
Part I and II. Mar. 5 and Apr. 15, 2008. (Printed, 187 pp. S. 
Hrg. 110-1039.)
    The New FEMA: Is the Agency Better Prepared for a 
Catastrophe Now Than It Was in 2005? Apr. 3, 2008. (Printed, 
227 pp. S. Hrg. 110-1021.)
    Nominations of Hon. Andrew M. Saul, Hon. Alejandro M. 
Sanchez, and Hon. Gordon J. Whiting to be Members of the 
Federal Retirement Thrift Investment Board. Apr. 10, 2008. 
(Printed, 67 pp. S. Hrg. 110-934.)
    Nomination of Nanci E. Langley to be Commissioner, Postal 
Regulatory Commission. Apr. 23, 2008. (Printed, 38 pp. S. Hrg. 
110-938.)
    High Price of Commodities. Fuel Subsidies: Is There An 
Impact on Food Supply and Prices? May 7, 2008. Financial 
Speculation in Commodity Markets: Are Institutional Investors 
and Hedge Funds Contributing to Food and Energy Price 
Inflation? May 20, 2008. Ending Excessive Speculation in 
Commodity Markets: Legislative Options. June 24, 2008. 
(Printed, 383 pp. S. Hrg. 110-705.)
    Nomination of Hon. Paul A. Schneider to be Deputy 
Secretary, U.S. Department of Homeland Security. May 14, 2008. 
(Printed, 108 pp. S. Hrg. 110-947.)
    Protecting Personal Information: Is the Federal Government 
Doing Enough? June 18, 2008. (Printed, 170 pp. S. Hrg. 110-
1025.)
    Nomination of Elaine C. Duke to be Under Secretary for 
Management, U.S. Department of Homeland Security. June 20, 
2008. (Printed, 87 pp. S. Hrg. 110-946.)
    Securing the Northern Border: Views From the Front Lines. 
July 2, 2008. Field Hearing in Havre, MT. (Printed, 115 pp. S. 
Hrg. 110-1024.)
    The Roots of Violent Islamist Extremism and Efforts to 
Counter It. July 10, 2008. (Printed, 145 pp. S. Hrg. 110-942.)
    Nomination of Gus P. Coldebella to be General Counsel, U.S. 
Department of Homeland Security. July 15, 2008. (Printed, 185 
pp. S. Hrg. 110-965.)
    Energy Security: An American Imperative. July 22, 2008. 
(Printed, 171 pp. S. Hrg. 110-1023.)
    Information Sharing: Connecting the Dots at the Federal, 
State, and Local Levels. July 23, 2008. (Printed, 170 pp. S. 
Hrg. 110-1028.)
    Nomination of Carol A. Dalton, Anthony C. Epstein, and 
Heidi M. Pasichow to be Associate Judges of the Superior Court 
of the District of Columbia. July 23, 2008. (Printed, 92 pp. S. 
Hrg. 110-966.)
    Nomination of James A. Williams to be Administrator of the 
U.S. General Services Administration. July 25, 2008. (Printed, 
99 pp. S. Hrg. 110-990.)
    Nomination of Ruth Y. Goldway to be Commissioner, Postal 
Regulatory Commission. Sept. 9, 2008. (Printed, 69 pp. S. Hrg. 
110-970.)
    Expediency Versus Integrity: Do Assembly-Line Audits at the 
Defense Contract Audit Agency Waste Taxpayer Dollars? Sept. 10, 
2008. (Printed, 137 pp. S. Hrg. 110-1035.)
    Nominations of Carol W. Pope and Thomas M. Beck to be 
Members, Federal Labor Relations Authority. Sept. 11, 2008. 
(Printed, 59 pp. S. Hrg. 110-983.)
    Domestic Partner Benefits for Federal Employees: Fair 
Policy and Good Business. Sept. 24, 2008. (Printed, 229 pp. S. 
Hrg. 110-944.)
    Nomination of Robert W. McGowan to be a Governor, United 
States Postal Service. Nov. 17, 2008. (Printed, 33 pp. S. Hrg. 
110-993.)
    Nominations of Kathryn A. Oberly, Associate Judge, District 
of Columbia Court of Appeals, and Alfred S. Irving, Jr., 
Associate Judge, Superior Court of the District of Columbia. 
Nov. 17, 2008. (Printed, 67 pp. S. Hrg. 110-969.)
    World at Risk: A Report From the Commission on the 
Prevention of Weapons of Mass Destruction Proliferation and 
Terrorism. Dec. 11, 2008. (Printed, 212 pp. S. Hrg. 110-1036.)

                  V. REPORTS, PRINTS, AND GAO REPORTS

    During the 110th Congress, the Committee prepared and 
issued 36 Reports and 4 Committee Prints on the following 
topics. Reports issued by Subcommittees are listed in their 
respective sections of this document.

                           COMMITTEE REPORTS

    To extend the District of Columbia College Access Act of 
1999. S. Rept. 110-52, re. S. 343.
    To extend the date on which the National Security Personnel 
System will first apply to certain defense laboratories. S. 
Rept. 110-79, re. S. 457.
    To provide the District of Columbia a voting seat and the 
State of Utah an additional seat in the House of 
Representatives. S. Rept. 110-123, re. S. 1257.
    To amend the National Capital Transportation Act of 1969 to 
authorize additional Federal contributions for maintaining and 
improving the transit system of the Washington Metropolitan 
Area Transit Authority, and for other purposes. S. Rept. 110-
188, re. S. 1446.
    To ensure proper oversight and accountability in Federal 
contracting, and for other purposes. S. Rept. 110-201, re. S. 
680.
    To amend title 44, United States Code, to require 
information on contributors to the Presidential library 
fundraising organization. S. Rept. 110-202, re. H.R. 1254.
    Extending the special postage stamp for breast cancer 
research for 2 years. S. Rept. 110-222, re. S. 597.
    To amend chapter 23 of title 5, United States Code, to 
clarify the disclosures of information protected from 
prohibited personnel practices, require a statement in 
nondisclosure policies, forms, and agreements that such 
policies, forms, and agreements conform with certain disclosure 
protections, provide certain authority for the Special Counsel, 
and for other purposes. S. Rept. 110-232, re. S. 274.
    To reform mutual aid agreements for the National Capital 
Region. S. Rept. 110-237, re. S. 1245.
    To provide for the flexibility of certain disaster relief 
funds, and for improved evacuation and sheltering during 
disasters and catastrophes. S. Rept. 110-240, re. S. 2445.
    To preserve existing judgeships on the Superior Court of 
the District of Columbia. S. Rept. 110-256, re. S. 550.
    To amend the Inspector general Act of 1978 (5 U.S.C. app.) 
to enhance the Offices of the Inspectors General, to create a 
Council of Inspectors General on Integrity and Efficiency, and 
for other purposes. S. Rept. 110-262, re. S. 2324.
    To establish a pilot program for the expedited disposal of 
Federal real property. S. Rept. 110-279, re. S. 1667.
    To modify pay provisions relating to certain senior-level 
positions in the Federal Government, and for other purposes. S. 
Rept. 110-328, re. S. 1046.
    To encourage the donation of excess food to nonprofit 
organizations that provide assistance to food-insecure people 
in the United States in contracts entered into be executive 
agencies for the provision, service, or sale of food. S. Rept. 
110-338, re. S. 2420.
    To amend title 40, United States Code, to authorize the use 
of Federal supply schedules for the acquisition of law 
enforcement, security, and certain other related items by State 
and local governments. S. Rept. 110-344, re. H.R. 3179.
    To reauthorize the United States Fire Administration, and 
for other purposes. S. Rept. 110-411, re. S. 2606.
    To enhance citizen access to Government information and 
services by establishing plain language as the standard style 
of Government documents issued to the public, and for other 
purposes. S. Rept. 110-412, re. S. 2291.
    To amend title 11, District of Columbia Official Code, to 
implement the increase provided under the District of Columbia 
Appropriations Act, 2008, in the amount of funds made available 
for the compensation of attorneys representing indigent 
defendants in the District of Columbia courts, and for other 
purposes. S. Rept. 110-432, re. H.R. 5551.
    To prevent the abuse of Government credit cards. S. Rept. 
110-437, re. S. 789.
    To establish a fact-finding Commission to extend the study 
of a prior Commission to investigate and determine facts and 
circumstances surrounding the relocation, internment, and 
deportation to Axis countries of Latin Americans of Japanese 
descent from December 1941 through February 1948, and the 
impact of those actions by the United States, and to recommend 
appropriate remedies, and for other purposes. S. Rept. 110-452, 
re. S. 381.
    To require the Administrator of the Federal Emergency 
Management Agency to quickly and fairly address the abundance 
of surplus manufactures housing units stored by the Federal 
Government around the country at taxpayer expense. S. Rept. 
110-453, re. S. 2382.
    Amending the Homeland security Act of 2002 to provide for a 
one-year extension of other transaction authority. S. Rept. 
110-454, re. S. 3328.
    To prohibit the award of contract to provide guard services 
under the contract security guard program of the Federal 
Protective Service to a business concern that is owned, 
controlled, or operated by an individual who has been convicted 
of a felony. S. Rept. 110-455, re. H.R. 3068.
    To provide for retirement equity for Federal employees in 
nonforeign areas outside the 48 contiguous States and the 
District of Columbia, and for other purposes. S. Rept. 110-456, 
re. S. 3013.
    To amend the E-Government Act of 2002 (Public Law 107-347) 
to reauthorize appropriations, and for other purposes. S. Rept. 
110-465, re. S. 2321.
    To provide for the appointment of the Chief Human Capital 
Officer of the Department of Homeland Security by the Secretary 
of Homeland Security. S. Rept. 110-466, re. S. 2816.
    To reauthorize and improve the Federal Financial Assistance 
Management Improvement Act of 1999. S. Rept. 110-468, re. S. 
3341.
    To improve the provision of disaster assistance for 
Hurricanes Katrina and Rita, and for other purposes. S. Rept. 
110-471, re. H.R. 3247.
    To improve the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act to reauthorize the predisaster hazard 
mitigation program, to make technical corrections to that Act, 
and for other purposes. S. Rept. 110-479, re. S. 3175.
    To amend the Homeland Security Act of 2002, to establish 
the Office for Bombing Prevention, to address terrorist 
explosive threats, and for other purposes. S. Rept. 110-481, 
re. S. 2292.
    To provide for greater diversity within, and to improve 
policy direction and oversight of, the Senior Executive 
Service. S. Rept. 110-517, re. S. 2148.
    To amend chapter 81 of title 5, United States Code, to 
create a presumption that disability or death of a Federal 
employee in fire protection activities caused by any of certain 
diseases is the result of the performance of such employee's 
duty. S. Rept. 110-520, re. S. 1924.
    To amend chapter 41 of title 5, United States Code, to 
provide for the establishment and authorization of funding for 
certain training programs for supervisors of Federal employees. 
S. Rept. 110-523, re. S. 967.
    To amend title 44, United States Code, to authorize grants 
for Presidential Centers of Historical Excellence. S. Rept. 
110-525, re. S. 3477.
    To enhance the Federal Telework Program. S. Rept. 110-526, 
re. S. 1000.

                            COMMITTEE PRINTS

    The Committee issued the following Committee Prints during 
the 110th Congress:
    Rules of Procedure. Committee on Homeland Security and 
Governmental Affairs. (Printed. 36 pp. S. Prt. 110-14.)
    Rules of Procedure. Permanent Subcommittee on 
Investigations. (Printed. 18 pp. S. Prt. 110-15.)
    Organization of Federal Executive Departments and Agencies. 
Agencies and Functions of the Federal Government Established, 
Abolished, Continued, Modified, reorganized, Extended, 
Transferred, or Changed in Name by Legislative or Executive 
Action During Calendar Years 2005 and 2006. (Prepared by the 
Office of the Federal Register, national Archives and Records 
Administration for the Committee on Homeland Security and 
Governmental Affairs.) (Printed. 26 pp. S. Prt. 110-26)
    Policy and Supporting Positions. Committee on Homeland 
Security and Governmental Affairs. (Printed. 210 pp. S. Prt. 
110-36.)

                              GAO REPORTS

    Also during the 110th Congress, the Government 
Accountability Office (GAO) issued 107 reports at the request 
of the Committee. GAO reports requested by the Subcommittees 
appear in their respective sections. Reports are listed here by 
title, GAO number, and release date.
    Budget Issues: FEMA Needs Adequate Data, Plans, and Systems 
to Effectively Manage Resources for Day-to-Day Operations. GAO-
07-139. January 19, 2007.
    Office of Personnel Management: Key Lessons Learned to Date 
for Strengthening Capacity to Lead and Implement Human Capital 
Reforms. GAO-07-90. January 19, 2007.
    Small Business Administration: Additional Steps Needed to 
Enhance Agency Preparedness for Future Disasters. GAO-07-114. 
February 14, 2007.
    Disaster Assistance: Better Planning Needed for Housing 
Victims of Catastrophic Disasters. GAO-07-88. February 28, 
2007.
    Hurricane Katrina: Agency Contracting Data Should Be More 
Complete Regarding Subcontracting Opportunities for Small 
Businesses. GAO-07-205. March 1, 2007.
    Financial Market Regulation: Agencies Engaged in 
Consolidated Supervision Can Strengthen Performance Measurement 
and Collaboration. GAO-07-154. March 15, 2007.
    Hurricanes Katrina and Rita Disaster Relief: Continued 
Findings of Fraud, Waste, and Abuse. GAO-07-300. March 15, 
2007.
    Climate Change: Financial Risks to Federal and Private 
Insurers in Coming Decades Are Potentially Significant. GAO-07-
285. March 16, 2007.
    Operation Iraqi Freedom: DOD Should Apply Lessons Learned 
Concerning the Need for Security over Conventional Munitions 
Storage Sites to Future Operations Planning. GAO-07-444. March 
22, 2007.
    Information Security: Sustained Progress Needed to 
Strengthen Controls at the Securities and Exchange Commission. 
GAO-07-256. March 27, 2007.
    Disaster Preparedness: Better Planning Would Improve OSHA's 
Efforts to Protect Workers' Safety and Health in Disasters. 
GAO-07-193. March 28, 2007.
    Port Risk Management: Additional Federal Guidance Would Aid 
Ports in Disaster Planning and Recovery. GAO-07-412. March 28, 
2007.
    Emergency Preparedness: Current Emergency Alert System Has 
Limitations, and Development of a New Integrated System Will Be 
Challenging. GAO-07-411. March 30, 2007.
    Financial Audit: Independent and Special Counsel 
Expenditures for the Six Months Ended September 30, 2006. GAO-
07-531. March 30, 2007.
    Information Security: Further Efforts Needed to Address 
Significant Weaknesses at the Internal Revenue Service. GAO-07-
364. March 30, 2007.
    Customs Revenue: Customs and Border Protection Needs to 
Improve Workforce Planning and Accountability. GAO-07-529. 
April 12, 2007.
    Federal Real Property: Progress Made Toward Addressing 
Problems, but Underlying Obstacles Continue to Hamper Reform. 
GAO-07-349. April 13, 2007.
    Transportation Security: DHS Efforts to Eliminate Redundant 
Background Check Investigations. GAO-07-756. April 26, 2007.
    Privacy: Lessons Learned about Data Breach Notification. 
GAO-07-657. April 30, 2007.
    Financial Audit: Congressional Award Foundation's Fiscal 
Years 2006 and 2005 Financial Statements. GAO-07-786. May 15, 
2007.
    Rebuilding Iraq: Integrated Strategic Plan Needed to Help 
Restore Iraq's Oil and Electricity Sectors. GAO-07-677. May 15, 
2007.
    Internal Revenue Service: Status of GAO Financial Audit and 
Related Financial Management Report Recommendations. GAO-07-
629. June 7, 2007.
    Avian Influenza: USDA Has Taken Important Steps to Prepare 
for Outbreaks, but Better Planning Could Improve Response. GAO-
07-652. June 11, 2007.
    Emergency Management: Most School Districts Have Developed 
Emergency Management Plans, but Would Benefit from Additional 
Federal Guidance. GAO-07-609. June 12, 2007.
    Federal Retirement Thrift Investment Board: Many 
Responsibilities and Investment Policies Set by Congress. GAO-
07-611. June 21, 2007.
    U.S. Postal Service: Mail Processing Realignment Efforts 
Under Way Need Better Integration and Explanation. GAO-07-717. 
June 21, 2007.
    Federal Real Property: DHS Has Made Progress, but 
Additional Actions Are Needed to Address Real Property 
Management and Security Challenges. GAO-07-658. June 22, 2007.
    Energy Efficiency: Important Challenges Must Be Overcome to 
Realize Significant Opportunities for Energy Efficiency 
Improvements in Gulf Coast Reconstruction. GAO-07-654. June 26, 
2007.
    Emergency Management Assistance Compact: Enhancing EMAC's 
Collaborative and Administrative Capacity Should Improve 
National Disaster Response. GAO-07-854. June 29, 2007.
    Intercollegiate Athletics: Recent Trends in Teams and 
Participants in National Collegiate Athletic Association 
Sports. GAO-07-535. July 12, 2007.
    Information Security: Homeland Security Needs to 
Immediately Address Significant Weaknesses in Systems 
Supporting the US-VISIT Program. GAO-07-870. July 13, 2007.
    Human Capital: DOD Needs Better Internal Controls and 
Visibility over Costs for Implementing Its National Security 
Personnel System. GAO-07-851. July 16, 2007.
    Military Personnel: Improved Quality Controls Needed over 
Servicemembers' Employment Rights Claims at DOL. GAO-07-907. 
July 20, 2007.
    Financial Audit: Significant Internal Control Weaknesses 
Remain in the Preparation of the Consolidated Financial 
Statements of the U.S. Government. GAO-07-805. July 23, 2007.
    Information Security: Despite Reported Progress, Federal 
Agencies Need to Address Persistent Weaknesses. GAO-07-837. 
July 27, 2007.
    Financial Management: Long-standing Financial Systems 
Weaknesses Present a Formidable Challenge. GAO-07-914. August 
3, 2007.
    Department of Homeland Security: Progress Report on 
Implementation of Mission and Management Functions. GAO-07-454. 
August 17, 2007.
    Securing, Stabilizing, and Rebuilding Iraq: Iraqi 
Government Has Not Met Most Legislative, Security, and Economic 
Benchmarks. GAO-07-1195. September 4, 2007.
    Defense Business Transformation: Achieving Success Requires 
a Chief Management Officer to Provide Focus and Sustained 
Leadership. GAO-07-1072. September 5, 2007.
    General Services Administration: Improvements Needed in 
Managing Delegated Authority of Real Property Activities. GAO-
07-1000. September 5, 2007.
    National Flood Insurance Program: FEMA's Management and 
Oversight of Payments for Insurance Company Services Should Be 
Improved. GAO-07-1078. September 5, 2007.
    Critical Infrastructure Protection: Multiple Efforts to 
Secure Control Systems Are Under Way, but Challenges Remain. 
GAO-07-1036. September 10, 2007.
    Department of Homeland Security: Improved Assessment and 
Oversight Needed to Manage Risk of Contracting for Selected 
Services. GAO-07-990. September 17, 2007.
    Department of Homeland Security: Challenges in Implementing 
the Improper Payments Information Act and Recovering Improper 
Payments. GAO-07-913. September 19, 2007.
    Financial Audit: Special Counsel Expenditures for the Six 
Months Ended March 31, 2007. GAO-07-1205. September 28, 2007.
    Stabilizing and Rebuilding Iraq: U.S. Ministry Capacity 
Development Efforts Need an Overall Integrated Strategy to 
Guide Efforts and Manage Risk. GAO-08-117. October 1, 2007.
    Terrorist Watch List Screening: Opportunities Exist to 
Enhance Management Oversight, Reduce Vulnerabilities in Agency 
Screening Processes, and Expand Use of the List. GAO-08-110. 
October 11, 2007.
    Homeland Security: Federal Efforts Are Helping to Alleviate 
Some Challenges Encountered by State and Local Information 
Fusion Centers. GAO-08-35. October 30, 2007.
    U.S. Postal Service: Agencies Distribute Fund-raising Stamp 
Proceeds and Improve Reporting. GAO-08-45. October 30, 2007.
    Critical Infrastructure Protection: Sector-Specific Plans' 
Coverage of Key Cyber Security Elements Varies. GAO-08-113. 
October 31, 2007.
    Office of Personnel Management: Opportunities Exist to 
Build on Recent Progress in Internal Human Capital Capacity. 
GAO-08-11. October 31, 2007.
    Financial Audit: Bureau of the Public Debt's Fiscal Years 
2007 and 2006 Schedules of Federal Debt. GAO-08-168. November 
7, 2007.
    Financial Audit: IRS's Fiscal Years 2007 and 2006 Financial 
Statement Audits. GAO-08-166. November 9, 2007.
    Financial Audit: Securities and Exchange Commission's 
Financial Statements for Fiscal Years 2007 and 2006. GAO-08-
167. November 16, 2007.
    Hurricane Katrina: Ineffective FEMA Oversight of Housing 
Maintenance Contracts in Mississippi Resulted in Millions of 
Dollars of Waste and Potential Fraud. GAO-08-106. November 16, 
2007.
    Tax Compliance: Federal Grant and Direct Assistance 
Recipients Who Abuse the Federal Tax System. GAO-08-31. 
November 16, 2007.
    U.S. Postal Service Facilities: Improvements in Data Would 
Strengthen Maintenance and Alignment of Access to Retail 
Services. GAO-08-41. December 10, 2007.
    Military Base Realignments and Closures: Cost Estimates 
Have Increased and Are Likely to Continue to Evolve. GAO-08-
159. December 11, 2007.
    Supply Chain Security: Examinations of High-Risk Cargo at 
Foreign Seaports Have Increased, but Improved Data Collection 
and Performance Measures Are Needed. GAO-08-187. January 25, 
2008.
    Federal Workers' Compensation: Better Data and Management 
Strategies Would Strengthen Efforts to Prevent and Address 
Improper Payments. GAO-08-284. February 26, 2008.
    National Disaster Response: FEMA Should Take Action to 
Improve Capacity and Coordination between Government and 
Voluntary Sectors. GAO-08-369. February 27, 2008.
    Catastrophic Disasters: Federal Efforts Help States Prepare 
for and Respond to Psychological Consequences, but FEMA's 
Crisis Counseling Program Needs Improvements. GAO-08-22. 
February 29, 2008.
    Electronic Government: Additional OMB Leadership Needed to 
Optimize Use of New Federal Employee Identification Cards. GAO-
08-292. February 29, 2008.
    Defense Contracting: Army Case Study Delineates Concerns 
with Use of Contractors as Contract Specialists. GAO-08-360. 
March 26, 2008.
    Federal Contracting: Congressional Action Needed to Address 
Long-standing Problems with Reporting of Advisory and 
Assistance Services. GAO-08-319. March 31, 2008.
    Financial Audit: Special Counsel Expenditures for the Six 
Months Ended September 30, 2007. GAO-08-541. March 31, 2008.
    Department of Homeland Security: Better Planning and 
Assessment Needed to Improve Outcomes for Complex Service 
Acquisitions. GAO-08-263. April 22, 2008.
    Supply Chain Security: U.S. Customs and Border Protection 
Has Enhanced Its Partnership with Import Trade Sectors, but 
Challenges Remain in Verifying Security Practices. GAO-08-240. 
April 25, 2008.
    Interagency Contracting: Need for Improved Information and 
Policy Implementation at the Department of State. GAO-08-578. 
May 8, 2008.
    Financial Audit: Congressional Award Foundation's Fiscal 
Years 2007 and 2006 Financial Statements. GAO-08-715. May 15, 
2008.
    Privacy: Alternatives Exist for Enhancing Protection of 
Personally Identifiable Information. GAO-08-536. May 19, 2008.
    Information Security: TVA Needs to Address Weaknesses in 
Control Systems and Networks. GAO-08-526. May 21, 2008.
    U.S. Postal Service: Mail-Related Recycling Initiatives and 
Possible Opportunities for Improvement. GAO-08-599. June 3, 
2008.
    Homeland Security: The Federal Protective Service Faces 
Several Challenges That Hamper Its Ability to Protect Federal 
Facilities. GAO-08-683. June 11, 2008.
    Federal Real Property: Property Conveyances between the 
District of Columbia and the Federal Government Await 
Completion, and Development Will Take Many Years. GAO-08-684. 
June 13, 2008.
    Financial Audit: Material Weaknesses in Internal Control 
over the Processes Used to Prepare the Consolidated Financial 
Statements of the U.S. Government. GAO-08-748. June 17, 2008.
    Information Sharing Environment: Definition of the Results 
to Be Achieved in Improving Terrorism-Related Information 
Sharing Is Needed to Guide Implementation and Assess Progress. 
GAO-08-492. June 25, 2008.
    Homeland Security: First Responders' Ability to Detect and 
Model Hazardous Releases in Urban Areas Is Significantly 
Limited. GAO-08-180. June 27, 2008.
    Telecommunications: Agencies Are Generally Following Sound 
Transition Planning Practices, and GSA Is Taking Action to 
Resolve Challenges. GAO-08-759. June 27, 2008.
    Internal Revenue Service: Status of GAO Financial Audit and 
Related Financial Management Report Recommendations. GAO-08-
693. July 2, 2008.
    DCAA Audits: Allegations That Certain Audits at Three 
Locations Did Not Meet Professional Standards Were 
Substantiated. GAO-08-857. July 22, 2008.
    Supply Chain Security: CBP Works with International 
Entities to Promote Global Customs Security Standards and 
Initiatives, but Challenges Remain. GAO-08-538. August 15, 
2008.
    Aviation Security: TSA Is Enhancing Its Oversight of Air 
Carrier Efforts to Identify Passengers on the No Fly and 
Selectee Lists, but Expects Ultimate Solution to Be 
Implementation of Secure Flight. GAO-08-992. September 9, 2008.
    Human Capital: DOD Needs to Improve Implementation of and 
Address Employee Concerns about Its National Security Personnel 
System. GAO-08-773. September 10, 2008.
    U.S. Postal Service: New Delivery Performance Measures 
Could Enhance Managers' Pay for Performance Program. GAO-08-
996. September 10, 2008.
    Visa Waiver Program: Actions Are Needed to Improve 
Management of the Expansion Process, and to Assess and Mitigate 
Program Risks. GAO-08-967. September 15, 2008.
    Voluntary Organizations: FEMA Should More Fully Assess 
Organization's Mass Care Capabilities and Update the Red Cross 
Role in Catastrophic Events. GAO-08-823. September 18, 2008.
    Electricity Restructuring: FERC Could Take Additional Steps 
to Analyze Regional Transmission Organizations' Benefits and 
Performance. GAO-08-987. September 22, 2008.
    Department of Homeland Security: Improvements Could Further 
Enhance Ability to Acquire Innovative Technologies Using Other 
Transaction Authority. GAO-08-1088. September 23, 2008.
    U.S. Asylum System: Significant Variation Existed in Asylum 
Outcomes across Immigration Courts and Judges. GAO-08-940. 
September 25, 2008.
    Disaster Recovery: Past Experiences Offer Insights for 
Recovering from Hurricanes Ike and Gustav and Other Recent 
Natural Disasters. GAO-08-1120. September 26, 2008.
    Combating Nuclear Smuggling: DHS's Phase 3 Test Report on 
Advanced Portal Monitors Does Not Fully Disclose the 
Limitations of the Test Results. GAO-08-979. September 30, 
2008.
    Federal Energy Management: Addressing Challenges through 
Better Plans and Clarifying the Greenhouse Gas Emission Measure 
Will Help Meet Long-term Goals for Buildings. GAO-08-977. 
September 30, 2008.
    Financial Management: Persistent Financial Management 
Systems Issues Remain for Many CFO Act Agencies. GAO-08-1018. 
September 30, 2008.
    Lobbying Disclosure: Observations on Lobbyists' Compliance 
with New Disclosure Requirements. GAO-08-1099. September 30, 
2008.
    Contingency Contracting: DOD, State, and USAID Contracts 
and Contractor Personnel in Iraq and Afghanistan. GAO-09-19. 
October 1, 2008.
    Information Technology: Management Improvements Needed on 
the Department of Homeland Security's Next Generation 
Information Sharing System. GAO-09-40. October 8, 2008.
    Public Health and Border Security: HHS and DHS Should 
Further Strengthen Their Ability to Respond to TB Incidents. 
GAO-09-58. October 14, 2008.
    Financial Audit: Bureau of the Public Debt's Fiscal Years 
2008 and 2007 Schedules of Federal Debt. GAO-09-44. November 7, 
2008.
    Financial Audit: IRS's Fiscal Years 2008 and 2007 Financial 
Statements. GAO-09-119. November 10, 2008.
    Financial Audit: Securities and Exchange Commission's 
Financial Statements for Fiscal Years 2008 and 2007. GAO-09-
173. November 14, 2008.
    Confirmation of Political Appointees: Eliciting Nominees' 
Views on Management Challenges within Agencies and across 
Government. GAO-09-194. November 17, 2008.
    Department of Homeland Security: A Strategic Approach Is 
Needed to Better Ensure the Acquisition Workforce Can Meet 
Mission Needs. GAO-09-30. November 19, 2008.
    Northern Border Security: DHS's Report Could Better Inform 
Congress by Identifying Actions, Resources, and Time Frames 
Needed to Address Vulnerabilities. GAO-09-93. November 25, 
2008.
    Disaster Assistance: Federal Efforts to Assist Group Site 
Residents with Employment, Services for Families with Children, 
and Transportation. GAO-09-81. December 11, 2008.
    Radio Communications: Congressional Action Needed to Ensure 
Agencies Collaborate to Develop a Joint Solution. GAO-09-133. 
December 12, 2008.
    Disaster Recovery: FEMA's Public Assistance Grant Program 
Experienced Challenges with Gulf Coast Rebuilding. GAO-09-129. 
December 18, 2008.

                      VI. OFFICIAL COMMUNICATIONS

    During the 110th Congress, 1,172 official communications 
were referred to the Committee. Of these, 1,150 were Executive 
Communications and 22 were Petitions or Memorials. Of the 
official communications, 460 dealt with the District of 
Columbia.

                        VII. LEGISLATIVE ACTIONS

    During the 110th Congress, the Committee reported 
significant legislation that was approved by Congress and 
signed into law by the President.
    The following are brief legislative histories of measures 
to the Committee and, in some cases, drafted by the Committee, 
which (1) became public law or (2) were favorably reported from 
the Committee and passed by the Senate, but did not become law. 
In addition to the measures listed below, the Committee 
received during the 110th Congress numerous legislative 
proposals that were not considered or reported, or that were 
reported but not passed by the Senate. Additional information 
on these measures appears in the Committee's Legislative 
Calendar for the 110th Congress, S. Prt. 110-52, Government 
Printing Office (December 31, 2010).

                       MEASURES ENACTED INTO LAW

    The following measures considered by the Committee were 
enacted into Public Law. The descriptions following the signing 
date of each measure note selected provisions of the text, and 
are not intended to serve as section-by-section summaries.
    H.R. 1130.--To amend the Ethics in Government Act of 1978 
to extend the authority to withhold from public availability a 
financial disclosure report filed by an individual who is a 
judicial officer or judicial employee, to the extent necessary 
to protect the safety of that individual or a family member of 
that individual, and for other purposes. (Public Law 110-24). 
May 3, 2007.
    Amends the Ethics in Government Act of 1978 to: (1) 
restrict disclosure of personal information about family 
members of judges whose revelation might endanger them; and (2) 
extend through 2009 the authority of the Judicial Conference to 
redact certain personal information of judges from financial 
disclosure reports. Further, the bill specifies additional 
types of information the Administrative Council of the U.S. 
Courts must include in its annual report to certain 
congressional committees on redaction of judicial financial 
disclosure reports.
    H.R. 1.--To provide for the implementation of the 
recommendations of the National Commission on Terrorist Attacks 
Upon the United States. (Public Law 110-53). August 3, 2007.
    Changes laws and authorizes funds to implement 
recommendations made by the National Commission on Terrorist 
Attacks upon the United States in 2004. The bill makes 
provisions addressing: homeland security grants; emergency 
management performance grants; ensuring communications 
interoperability for first responders; strengthening use of the 
incident command system; improving intelligence and information 
sharing within the Federal Government and with State, local, 
and tribal governments; congressional oversight of 
intelligence; strengthening efforts to prevent terrorist 
travel; privacy and civil liberties; private sector 
preparedness; improving critical infrastructure security; 
enhanced defenses against weapons of mass destruction; 
transportation security planning and information sharing; 
transportation security enhancements; public transportation 
security; surface transportation security; aviation; maritime 
cargo; preventing weapons of mass destruction proliferation and 
terrorism; international cooperation on antiterrorism 
technologies; 9/11 Commission international implementation; 
advancing democratic values; interoperable emergency 
communications; and other provisions.
    S. 1099.--To amend chapter 89 of title 5, United States 
Code, to make individuals employed by the Roosevelt Campobello 
International Park Commission eligible to obtain Federal health 
insurance. (Public Law 110-74). August 9, 2007.
    Makes citizens of the United States who are employed by the 
Roosevelt Campobello International Park Commission eligible to 
obtain health insurance under the Federal Employees Health 
Benefits (FEHB) program. The park is administered by the 
commission that was created in 1964 under an international 
treaty between the United States and Canada. (The park is 
affiliated with the National Park Service.) The treaty 
specifies that the two countries equally share the 
administrative costs to operate the park.
    According to park officials, however, the U.S. Government 
currently covers the full cost associated with the employer 
share of health premiums for employees who are U.S. citizens.
    S. 597.--To extend the authority of the United States 
Postal Service to issue a semipostal to raise funds for breast 
cancer research. (Amended) (Public Law 110-150). December 21, 
2007.
    Reauthorizes the Stamp Out Breast Cancer Act (P.L. 105-41) 
through December 31, 2009. This special postage stamp for 
First-Class mail was designed specifically to raise funds for 
breast cancer research efforts. The price of this stamp is 55 
cents, 14 cents above the regular rate of 41 cents.
    H.R. 3571.--To amend the Congressional Accountability Act 
of 1995 to permit individuals who have served as employees of 
the Office of Compliance to serve as Executive Director, Deputy 
Executive Director, or General Counsel of the Office, and to 
permit individuals appointed to such positions to serve one 
additional term. (Public Law 110-164). December 26, 2007.
    Amends the Congressional Accountability Act of 1995 to 
allow former Office of Compliance (OC) employees to serve as 
board members or in executive-level positions for that office 
sooner than they would be eligible to under current law. In 
addition, the legislation would allow the Executive Director, 
Deputy Executive Director, or General Counsel of the OC to 
serve up to two terms.
    S. 550.--To preserve existing judgeships on the Superior 
Court of the District of Columbia. (Public Law 110-201). April 
18, 2008.
    Preserves existing judgeships within the Superior Court of 
the District of Columbia inadvertently impacted by the 107th 
Congress under the Family Court Act of 2001.
    S. 2420.--To encourage the donation of excess food to 
nonprofit organizations that provide assistance to food-
insecure people in the United States in contracts entered into 
by executive agencies for the provision, service, or sale of 
food. (Public Law 110-247). June 20, 2008.
    Encourages Federal agencies and their contractors to donate 
excess food to nonprofit organizations serving the needy. The 
bill requires Federal contracts above $25,000 for the provision 
of food, or for the lease or rental of Federal property to a 
private entity for events at which food is provided, to include 
a clause that encourages--but does not require--the donation of 
excess food to nonprofit organizations.
    H.R. 3179.--To amend title 40, United States Code, to 
authorize the use of Federal supply schedules for the 
acquisition of law enforcement, security, and certain other 
related items by State and local governments. (Public Law 110-
248). June 26, 2008.
    Allows State and local governments to purchase homeland 
security and public safety equipment and services from the 
Schedules Program of the General Services Administration (GSA). 
This procurement authority will help State and local 
governments reduce the administrative costs of negotiating 
their own contracts by authorizing them to use the pre-
negotiated contracts of GSA.
    S. 1245.--To reform mutual aid agreements for the National 
Capital Region. (Public Law 110-250). June 26, 2008.
    Amends Section 7302 of the Intelligence Reform and 
Terrorism Prevention Act of 2004 (P.L. 108-458), to make 
technical changes affecting mutual aid agreements in the 
National Capital Region.
    H.R. 5683.--To make certain reforms with respect to the 
Government Accountability Office, and for other purposes. 
(Public Law 110-323). September 22, 2008.
    Requires the Government Accountability Office (GAO) to 
change certain pay practices and, subject to the availability 
of appropriations, compensate employees for certain past 
practices. It also would increase the cap on employees' pay.
    H.R. 3068.--To prohibit the award of contracts to provide 
guard services under the contract security guard program of the 
Federal Protective Service to a business concern that is owned, 
controlled, or operated by an individual who has been convicted 
of a felony. (Public Law 110-356). October 8, 2008.
    The purpose of this legislation is to prevent the Federal 
Protective Service from awarding contracts for guard services 
to companies owned, controlled or operated by individuals 
convicted of serious felonies who may present a risk to the 
security of Federal employees and Federal property.
    S. 1046.--To modify pay provisions relating to certain 
senior-level positions in the Federal Government, and for other 
purposes. (Public Law 110-372). October 8, 2008.
    Raises the maximum pay levels for certain senior 
professionals in the Federal Government to match the maximum 
pay levels now allowed for members of the Senior Executive 
Service (SES), and the bill generally bring the pay system for 
senior professionals more in line with the pay system for the 
SES. Just as agencies that have certified performance 
management systems may now provide to SES members higher pay 
than other agencies may provide, this bill will likewise allow 
agencies with certified performance management systems to 
provide higher pay to covered senior professionals than may 
other agencies. S. 1046 also makes a number of clarifications 
and technical corrections to the process by which agencies 
obtain such certification of their performance management 
systems.
    S. 2606.--To reauthorize the United States Fire 
Administration, and for other purposes. (Public Law 110-376). 
October 8, 2008.
    Authorizes appropriations for the United States Fire 
Administration (USFA) for fiscal years 2009 through 2012, and 
authorize USFA's activities related to training, public 
education, data collection, research, and national voluntary 
consensus standards. With regard to USFA's activities, the 
legislation would update the curriculum of the National Fire 
Academy, expand on-site training programs for fire service 
personnel, upgrade the National Fire Incident Reporting System, 
encourage more research related to wildland fires and the 
publication of such research, and promote the adoption of 
national voluntary consensus standards for firefighter health 
and safety. It would also establish a fire service position at 
the U.S. Department of Homeland Security's National Operations 
Center and require appropriate coordination at all levels of 
government with regard to fire prevention and control and 
emergency medical services.
    S. 2816.--To provide for the appointment of the Chief Human 
Capital Officer of the Department of Homeland Security by the 
Secretary of Homeland Security. (Public Law 110-388). October 
10, 2008.
    Provides for the appointment or designation of the Chief 
Human Capital Officer (CHCO) of the Department of Homeland 
Security (DHS) by the Secretary of Homeland Security, so the 
DHS CHCO would be selected in the same manner as all other 
department and agency CHCOs.
    S. 3477.--To amend title 44, United States Code, to 
authorize grants for Presidential Centers of Historical 
Excellence. (Public Law 110-404). October 13, 2008.
    Seeks to promote funding to preserve, digitize, and provide 
online access to documents of historical significance that may 
not have received funding in the past. The bill would modify an 
existing grant program administered by the National Historical 
Publications and Records Commission (``the Commission'') to 
specify that grants can support public-private partnerships to 
preserve presidential documents that are not included in the 
existing Presidential library system. The bill also seeks to 
make other key improvements to the system for archiving 
Presidential documents.
    S. 3536.--To amend section 5402 of title 39, United States 
Code, to modify the authority relating to United States Postal 
Service air transportation contracts, and for other purposes. 
(Public Law 110-405). October 13, 2008.
    Authorizes the U.S. Postal Service to contract, through an 
open procurement process, for air transportation of mail 
between foreign points only with certificated air carriers 
(carriers that hold a certificate of public convenience and 
necessity issued under specified provisions). Allows a contract 
to be awarded to transport mail between any foreign points the 
Secretary of Transportation has authorized the carrier to serve 
either directly or through a code-share relationship.
    Requires that the Postal Service use a method for 
determining fair and reasonable prices developed in 
consultation with, and with the concurrence of, certificated 
air carriers representing at least 51 percent of available ton 
miles in the markets of interest. Presumes ceiling prices 
determined by that method to be fair and reasonable if they do 
not exceed the ceiling prices derived from a weighted average 
based on market rate data furnished by the International Air 
Transport Association (or its subsidiary unit) or such other 
neutral weighted average market rates as the Postal Service, 
with the concurrence of such air carriers representing at least 
51 percent of available ton miles, may designate.
    Additionally, provides for exceptions for emergency or 
unanticipated conditions or inadequate lift space; removes 
provisions requiring that the Secretary of Transportation set 
prices to be paid by the Postal Service for the transportation 
of mail by aircraft in foreign air transportation; removes 
references to foreign air transportation from provisions 
relating to a duty to provide certain transportation of mail; 
removes a requirement that the Postal Service make a fair and 
equitable distribution of mail business to carriers providing 
similar modes of transportation; and modifies provisions 
regarding the mail of members of the U.S. Armed Forces and of 
friendly foreign nations.
    H.R. 928.--To amend the Inspector General Act of 1978 to 
enhance the independence of the Inspectors General, to create a 
Council of the Inspectors General on Integrity and Efficiency, 
and for other purposes. (Public Law 110-409). October 14, 2008.
    Amends the Inspector General Act of 1978 to require 
Inspectors General (IGs) for designated Federal entities to be 
appointed without regard to political affiliation and solely on 
the basis of integrity and demonstrated ability in accounting, 
auditing, financial analysis, law, management analysis, public 
administration, or investigations; requires the President and 
the heads of designated Federal entities to communicate to 
Congress in writing the reasons for removing or transferring an 
IG no later than 30 days before such removal or transfer; sets 
the pay for presidentially appointed IGs at Executive Schedule 
III plus 3 percent; requires IGs of designated Federal entities 
to be classified at a grade, level, or rank designation at or 
above those of a majority of the senior level executives of 
their entity; and prohibits IGs from receiving cash awards or 
bonuses.
    H.R. 6098.--To amend the Homeland Security Act of 2002 to 
improve the financial assistance provided to State, local, and 
tribal governments for information sharing activities, and for 
other purposes. (Public Law 110-412). October 14, 2008.
    Permits State and local governments to use funds provided 
through the State Homeland Security Grant Program (SHSGP) and 
the Urban Area Security Initiative (UASI) to pay the salaries 
and expenses of individual intelligence analysts beyond the 
current two-year limitation for such expenses. The act also 
would allow recipients greater flexibility in using grant funds 
for various personnel costs.
    H.R. 6073.--To provide that Federal employees receiving 
their pay by electronic funds transfer shall be given the 
option of receiving their pay stubs electronically. (Public Law 
110-423). October 15, 2008.
    Requires the Office of Personnel Management (OPM) to ensure 
that executive agency employees who receive their pay by 
electronic funds transfer are given the option of receiving 
their pay stubs electronically.

                          POSTAL NAMING BILLS

    H.R. 49.--To designate the facility of the United States 
Postal Service located at 1300 North Frontage Road West in 
Vail, Colorado, as the ``Gerald R. Ford, Jr. Post Office 
Building.'' (Public Law 110-7). March 7, 2007.
    H.R. 335.--To designate the facility of the United States 
Postal Service located at 152 North 5th Street in Laramie, 
Wyoming, as the ``Gale W. McGee Post Office.'' (Public Law 110-
8). March 7, 2007.
    H.R. 433.--To designate the facility of the United States 
Postal Service located at 1700 Main Street in Little Rock, 
Arkansas, as the ``Scipio A. Jones Post Office Building.'' 
(Public Law 110-9). March 7, 2007.
    H.R. 514.--To designate the facility of the United States 
Postal Service located at 16150 Aviation Loop Drive in 
Brooksville, Florida, as the ``Sergeant Lea Robert Mills 
Brooksville Aviation Branch Post Office.'' (Public Law 110-10). 
March 7, 2007.
    H.R. 577.--To designate the facility of the United States 
Postal Service located at 3903 South Congress Avenue in Austin, 
Texas, as the ``Sergeant Henry Ybarra III Post Office 
Building.'' (Public Law 110-11). March 7, 2007.
    H.R. 521.--To designate the facility of the United States 
Postal Service located at 2633 11th Street in Rock Island, 
Illinois, as the ``Lane Evans Post Office Building.'' (Public 
Law 110-12). March 15, 2007.
    H.R. 988.--To designate the facility of the United States 
Postal Service located at 5757 Tilton Avenue in Riverside, 
California, as the ``Lieutenant Todd Jason Bryant Post 
Office.'' (Public Law 110-27). May 25, 2007.
    H.R. 414.--To designate the facility of the United States 
Postal Service located at 60 Calle McKinley, West in Mayaguez, 
Puerto Rico, as the ``Miguel Angel Garcia Mendez Post Office 
Building.'' (Public Law 110-29). June 1, 2007.
    H.R. 437.--To designate the facility of the United States 
Postal Service located at 500 West Eisenhower Street in Rio 
Grande City, Texas, as the ``Lino Perez, Jr. Post Office.'' 
(Public Law 110-30). June 1, 2007.
    H.R. 625.--To designate the facility of the United States 
Postal Service located at 4230 Maine Avenue in Baldwin Park, 
California, as the ``Atanacio Haro-Marin Post Office.'' (Public 
Law 110-31). June 1, 2007.
    H.R. 1402.--To designate the facility of the United States 
Postal Service located at 320 South Lecanto Highway in Lecanto, 
Florida, as the ``Sergeant Dennis J. Flanagan Lecanto Post 
Office Building.'' (Public Law 110-32). June 1, 2007.
    S. 1352.--To designate the facility of the United States 
Postal Service located at 127 East Locust Street in Fairbury, 
Illinois, as the ``Dr. Francis Townsend Post Office Building.'' 
(Public Law 110-43). July 3, 2007.
    H.R. 1260.--To designate the facility of the United States 
Postal Service located at 6301 Highway 58 in Harrison, 
Tennessee, as the ``Claude Ramsey Post Office.'' (Public Law 
110-58). August 9, 2007.
    H.R. 1335.--To designate the facility of the United States 
Postal Service located at 508 East Main Street in Seneca, South 
Carolina, as the ``S/Sgt. Lewis G. Watkins Post Office 
Building.'' (Public Law 110-59). August 9, 2007.
    H.R. 1425.--To designate the facility of the United States 
Postal Service located at 4551 East 52nd Street in Odessa, 
Texas, as the ``Staff Sergeant Marvin `Rex' Young Post Office 
Building.'' (Public Law 110-61). August 9, 2007.
    H.R. 1434.--To designate the facility of the United States 
Postal Service located at 896 Pittsburgh Street in Springdale, 
Pennsylvania, as the ``Rachel Carson Post Office Building.'' 
(Public Law 110-62). August 9, 2007.
    H.R. 1617.--To designate the facility of the United States 
Postal Service located at 561 Kingsland Avenue in University 
City, Missouri, as the ``Harriett F. Woods Post Office 
Building.'' (Public Law 110-63). August 9, 2007.
    H.R. 1722.--To designate the facility of the United States 
Postal Service located at 601 Banyan Trail in Boca Raton, 
Florida, as the ``Leonard W. Herman Post Office.'' (Public Law 
110-64). August 9, 2007.
    H.R. 2025.--To designate the facility of the United States 
Postal Service located at 11033 South State Street in Chicago, 
Illinois, as the ``Willye B. White Post Office Building.'' 
(Public Law 110-65). August 9, 2007.
    H.R. 2077.--To designate the facility of the United States 
Postal Service located at 20805 State route 125 in Blue Creek, 
Ohio, as the ``George B. Lewis Post Office Building.'' (Public 
Law 110-66). August 9, 2007.
    H.R. 2078.--To designate the facility of the United States 
Postal Service located at 14536 State Route 136 in Cherry Fork, 
Ohio, as the ``Staff Sergeant Omer T. `O.T.' Hawkins Post 
Office.'' (Public Law 110-67). August 9, 2007.
    H.R. 2127.--To designate the facility of the United States 
Postal Service located at 408 West 6th Street in Chelsea, 
Oklahoma, as the ``Clem Rogers McSpadden Post Office 
Building.'' (Public Law 110-68). August 9, 2007.
    H.R. 2563.--To designate the facility of the United States 
Postal Service located at 309 East Linn Street in Marshalltown, 
Iowa, as the ``Major Scott Nisely Post Office.'' (Public Law 
110-71). August 9, 2007.
    H.R. 2570.--To designate the facility of the United States 
Postal Service located at 301 Boardwalk Drive in Fort Collins, 
Colorado, as the ``Dr. Karl E. Carson Post Office Building.'' 
(Public Law 110-72). August 9, 2007.
    H.R. 954.--To designate the facility of the United States 
Postal Service located at 365 West 125th Street in New York, 
New York, as the ``Percy Sutton Post Office Building.'' (Public 
Law 110-87). September 28, 2007.
    H.R. 2467.--To designate the facility of the United States 
Postal Service located at 69 Montgomery Street in Jersey City, 
New Jersey, as the ``Frank J. Guarini Post Office Building.'' 
(Public Law 110-98). October 24, 2007.
    H.R. 2587.--To designate the facility of the United States 
Postal Service located at 555 South 3rd Street Lobby in 
Memphis, Tennessee, as the ``Kenneth T. Whalum, Sr. Post 
Office.'' (Public Law 110-99). October 24, 2007.
    H.R. 2654.--To designate the facility of the United States 
Postal Service located at 202 South Dumont Avenue in 
Woonsocket, South Dakota, as the ``Eleanor McGovern Post Office 
Building.'' (Public Law 110-100). October 24, 2007.
    H.R. 2765.--To designate the facility of the United States 
Postal Service located at 44 North Main Street in Hughesville, 
Pennsylvania, as the ``Master Sergeant Sean Michael Thomas Post 
Office.'' (Public Law 110-101). October 24, 2007.
    H.R. 2778.--To designate the facility of the United States 
Postal Service located at 3 Quaker Ridge Road in New Rochelle, 
New York, as the ``Robert Merrill Postal Station.'' (Public Law 
110-102). October 24, 2007.
    H.R. 2825.--To designate the facility of the United States 
Postal Service located at 326 South Main Street in Princeton, 
Illinois, as the ``Owen Lovejoy Princeton Post Office 
Building.'' (Public Law 110-103). October 24, 2007.
    H.R. 3052.--To designate the facility of the United States 
Postal Service located at 954 Wheeling Avenue in Cambridge, 
Ohio, as the ``John Herschel Glenn, Jr. Post Office Building.'' 
(Public Law 110-104). October 24, 2007.
    H.R. 3106.--To designate the facility of the United States 
Postal Service located at 805 Main Street in Ferdinand, 
Indiana, as the ``Staff Sergeant David L. Nord Post Office.'' 
(Public Law 110-105). October 24, 2007.
    H.R. 3233.--To designate the facility of the United States 
Postal Service located at Highway 49 South in Piney Woods, 
Mississippi, as the ``Laurence C. and Grace M. Jones Post 
Office Building.'' (Public Law 110-107). October 26, 2007.
    H.R. 2089.--To designate the facility of the United States 
Postal Service located at 701 Loyola Avenue in New Orleans, 
Louisiana, as the ``Louisiana Armed Services Veterans Post 
Office.'' (Public Law 110-121). November 30, 2007.
    H.R. 2276.To designate the facility of the United States 
Postal Service located at 203 North Main Street in Vassar, 
Michigan, as the ``Corporal Christopher E. Esckelson Post 
Office Building.'' (Public Law 110-122). November 30, 2007.
    H.R. 3297.--To designate the facility of the United States 
Postal Service located at 950 West Trenton Avenue in 
Morrisville, Pennsylvania, as the ``Nate DeTample Post Office 
Building.'' (Public Law 110-123). November 30, 2007.
    H.R. 3307.--To designate the facility of the United States 
Postal Service located at 570 Broadway in Bayonne, New Jersey, 
as the ``Dennis P. Collins Post Office Building.'' (Public Law 
110-124). November 30, 2007.
    H.R. 3308.--To designate the facility of the United States 
Postal Service located at 216 East Main Street in Atwood, 
Indiana, as the ``Lance Corporal David K. Fribley Post 
Office.'' (Public Law 110-125). November 30, 2007.
    H.R. 3325.--To designate the facility of the United States 
Postal Service located at 235 Mountain Road in Suffield, 
Connecticut, as the ``Corporal Stephen R. Bixler Post Office.'' 
(Public Law 110-126). November 30, 2007.
    H.R. 3382.--To designate the facility of the United States 
Postal Service located at 200 North William Street in 
Goldsboro, North Carolina, as the ``Philip A. Baddour, Sr. Post 
Office.'' (Public Law 110-127). November 30, 2007.
    H.R. 3446.--To designate the facility of the United States 
Postal Service located at 202 East Michigan avenue in Marshall, 
Michigan, as the ``Michael W. Schragg Post Office Building.'' 
(Public Law 110-128). November 30, 2007.
    H.R. 3518.--To designate the facility of the United States 
Postal Service located at 1430 South Highway 29 in Cantonment, 
Florida, as the ``Charles H. Hendrix Post Office Building.'' 
(Public Law 110-129). November 30, 2007.
    H.R. 3530.--To designate the facility of the United States 
Postal Service located at 1400 Highway 41 North in Inverness, 
Florida, as the ``Chief Warrant Officer Aaron Weaver Post 
Office Building.'' (Public Law 110-130). November 30, 2007.
    H.R. 3572.--To designate the facility of the United States 
Postal Service located at 4320 Blue Parkway in Kansas City, 
Missouri, as the ``Wallace S. Hartsfield Post Office 
Building.'' (Public Law 110-131). November 30, 2007.
    S. 2174.--To designate the facility of the United States 
Postal Service located at 175 South Monroe Street in Tiffin, 
Ohio, as the ``Paul E. Gillmor Post Office Building.'' (Public 
Law 110-152). December 21, 2007.
    H.R. 2011.--To designate the Federal building and United 
States courthouse located at 100 East 8th Avenue in Pine Bluff, 
Arkansas, as the ``George Howard, Jr. Federal Building and 
United States Courthouse.'' (Public Law 110-159). December 26, 
2007.
    H.R. 3470.--To designate the facility of the United States 
Postal Service located at 744 West Oglethorpe Highway in 
Hinesville, Georgia, as the ``John Sidney `Sid' Flowers Post 
Office Building.'' (Public Law 110-162). December 26, 2007.
    H.R. 3569.--To designate the facility of the United States 
Postal Service located at 16731 Santa Ana Avenue in Fontana, 
California, as the ``Beatrice E. Watson Post Office Building.'' 
(Public Law 110-163). December 26, 2007.
    H.R. 3974.--To designate the facility of the United States 
Postal Service located at 797 Sam Bass Road in round Rock, 
Texas, as the ``Marine Corps Corporal Steven P. Gill Post 
Office Building.'' (Public Law 110-165). December 26, 2007.
    H.R. 4009.--To designate the facility of the United States 
Postal Service located at 567 West Nepessing Street in Lapeer, 
Michigan, as the ``Turrill Post Office Building.'' (Public Law 
110-167). December 26, 2007.
    S. 1896.--To designate the facility of the United States 
Postal Service located at 11 Central Street in Hillsborough, 
New Hampshire, as the ``Officer Jeremy Todd Charron Post 
Office.'' (Public Law 110-169). December 26, 2007.
    S. 2110.--To designate the facility of the United States 
Postal Service located at 427 North Street in Taft, California, 
as the ``Larry S. Pierce Post Office.'' (Public Law 110-184). 
February 6, 2008.
    S. 2478.--To designate the facility of the United States 
Postal Service located at 59 Colby Corner in East Hampstead, 
New Hampshire, as the ``Captain Jonathan D. Grassbaugh Post 
Office.'' (Public Law 110-194). March 11, 2008.
    S. 2272.--To designate the facility of the United States 
Postal Service known as the Southpark Station in Alexandria, 
Louisiana, as the John ``Marty'' Thiels Southpark Station, in 
honor and memory of Thiels, a Louisiana postal worker who was 
killed in the line of duty on October 4, 2007. (Public Law 110-
195). March 12, 2008.
    H.R. 3196.--To designate the facility of the United States 
Postal Service located at 20 Sussex Street in Port Jervis, New 
York, as the ``E. Arthur Gray Post Office Building.'' (Public 
Law 110-210). May 7, 2008.
    H.R. 3468.--To designate the facility of the United States 
Postal Service located at 1704 Weeksville Road in Elizabeth 
City, North Carolina, as the ``Dr. Clifford Bell Jones, Sr. 
Post Office.'' (Public Law 110-211). May 7, 2008.
    H.R. 3532.--To designate the facility of the United States 
Postal Service located at 5815 McLeod Street in Lula, Georgia, 
as the ``Private Johnathon Millican Lula Post Office.'' (Public 
Law 110-212). May 7, 2008.
    H.R. 3720.--To designate the facility of the United States 
Postal Service located at 424 Clay Avenue in Waco, Texas, as 
the ``Army FPC Juan Alonso Covarrubias Post Office Building.'' 
(Public Law 110-213). May 7, 2008.
    H.R. 3803.--To designate the facility of the United States 
Postal Service located at 3100 Cashwell Drive in Goldsboro, 
North Carolina, as the ``John Henry Wooten, Sr. Post Office 
Building.'' (Public Law 110-214). May 7, 2008.
    H.R. 3936.--To designate the facility of the United States 
Postal Service located at 116 Helen Highway in Cleveland, 
Georgia, as the ``Sgt. Jason Harkins Post Office Building.'' 
(Public Law 110-215). May 7, 2008.
    H.R. 3988.--To designate the facility of the United States 
Postal Service located at 3701 Altamesa Boulevard in Fort 
Worth, Texas, as the ``Master Sergeant Kenneth N. Mack Post 
Office Building.'' (Public Law 110-216). May 7, 2008.
    H.R. 4166.--To designate the facility of the United States 
Postal Service located at 701 East Copeland Drive in Lebanon, 
Missouri, as the ``Steve W. Allee Carrier Annex.'' (Public Law 
110-217). May 7, 2008.
    H.R. 4203.--To designate the facility of the United States 
Postal Service located at 3035 Stone Mountain Street in 
Lithonia, Georgia, as the ``Specialist Jamaal RaShard Addison 
Post Office Building.'' (Public Law 110-218). May 7, 2008.
    H.R. 4211.--To designate the facility of the United States 
Postal Service located at 725 Roanoke Avenue in Roanoke Rapids, 
North Carolina, as the ``Judge Richard B. Allsbrook Post 
Office.'' (Public Law 110-219). May 7, 2008.
    H.R. 4240.--To designate the facility of the United States 
Postal Service located at 10799 West Alameda Avenue in 
Lakewood, Colorado, as the ``Felix Sparks Post Office 
Building.'' (Public Law 110-220). May 7, 2008.
    H.R. 4454.--To designate the facility of the United States 
Postal Service located at 3050 Hunsinger Lane in Louisville, 
Kentucky, as the ``Iraq and Afghanistan Fallen Military Heroes 
of Louisville Memorial Post Office Building,'' in honor of the 
servicemen and women from Louisville, Kentucky, who dies in 
service during Operation Enduring Freedom and Operation Iraqi 
Freedom. (Public Law 110-221). May 7, 2008.
    H.R. 5135.--To designate the facility of the United States 
Postal Service located at 201 West Greenway Street in Derby, 
Kansas, as the ``Sergeant Jamie O. Maugans Post Office 
Building.'' (Public Law 110-222). May 7, 2008.
    H.R. 5220.--To designate the facility of the United States 
Postal Service located at 3800 SW. 185th Avenue in Beaverton, 
Oregon, as the ``Major Arthur Chin Post Office Building.'' 
(Public Law 110-223). May 7, 2008.
    H.R. 5400.--To designate the facility of the United States 
Postal Service located at 160 East Washington Street in Chagrin 
Falls, Ohio, as the ``Sgt. Michael M. Kashkoush Post Office 
Building.'' (Public Law 110-224). May 7, 2008.
    H.R. 3721.--To designate the facility of the United States 
Postal Service located at 1190 Lorena Road in Lorena, Texas, as 
the ``Marine Gunnery Sgt. John D. Fry Post Office Building.'' 
(Public Law 110-265). July 15, 2008.
    H.R. 4185.--To designate the facility of the United States 
Postal Service located at 11151 Valley Boulevard in El Monte, 
California, as the ``Marisol Heredia Post Office Building.'' 
(Public Law 110-267). July 15, 2008.
    H.R. 5168.--To designate the facility of the United States 
Postal Service located at 19101 Cortez Boulevard in 
Brooksville, Florida, as the ``Cody Grater Post Office 
Building.'' (Public Law 110-268). July 15, 2008.
    H.R. 5395.--To designate the facility of the United States 
Postal Service located at 11001 Dunklin Drive in St. Louis, 
Missouri, as the ``William `Bill' Clay Post Office Building. 
(Public Law 110-269). July 15, 2008.
    H.R. 5479.--To designate the facility of the United States 
Postal Service located at 117 North Kidd Street in Ionia, 
Michigan, as the ``Alonzo Woodruff Post Office Building.'' 
(Public Law 110-270). July 15, 2008.
    H.R. 5517.--To designate the facility of the United States 
Postal Service located at 7231 FM 1960 in Numble, Texas, as the 
``Texas Military Veterans Post Office.'' (Public Law 110-271). 
July 15, 2008.
    H.R. 5528.--To designate the facility of the United States 
Postal Service located at 120 Commercial Street in Brockton, 
Massachusetts, as the ``Rocky Marciano Post Office Building.'' 
(Public Law 110-272). July 15, 2008.
    S. 3145.--To designate a portion of United States Route 
20A, located in Orchard Park, New York, as the ``Timothy J. 
Russert Highway. (Public Law 110-282). July 23, 2008.
    H.R. 4210.--To designate the facility of the United States 
Postal Service located at 401 Washington Avenue in Weldon, 
North Carolina, as the ``Dock M. Brown Post Office Building.'' 
(Public Law 110-303). August 12, 2008.
    H.R. 5477.--To designate the facility of the United States 
Postal Service located at 120 South Del Mar Avenue in San 
Gabriel, California, as the ``Chi Mui Post Office Building.'' 
(Public Law 110-305). August 12, 2008.
    H.R. 5483.--To designate the facility of the United States 
Postal Service located at 10449 White Granite Drive in Oakton, 
Virginia, as the ``Private First Class David H. Sharrett II 
Post Office Building.'' (Public Law 110-306). August 12, 2008.
    H.R. 5631.--To designate the facility of the United States 
Postal Service located at 1155 Seminole Trail in 
Charlottesville, Virginia, as the ``Corporal Bradley T. Arms 
Post Office Building.'' (Public Law 110-307). August 12, 2008.
    H.R. 6061.--To designate the facility of the United States 
Postal Service located at 219 East Main Street in West 
Frankfort, Illinois, as the ``Kenneth James Gray Post Office 
Building.'' (Public Law 110-308). August 12, 2008.
    H.R. 6085.--To designate the facility of the United States 
Postal Service located at 42222 Rancho Las Palmas Drive in 
Rancho Mirage, California, as the ``Gerald R. Ford Post Office 
Building.'' (Public Law 110-309). August 12, 2008.
    H.R. 6150.--To designate the facility of the United States 
Postal Service located at 14500 Lorain Avenue in Cleveland, 
Ohio, as the ``John P. Gallagher Post Office Building.'' 
(Public Law 110-310). August 12, 2008.
    S. 171.--To designate the facility of the United States 
Postal Service located at 301 Commerce Street in Commerce, 
Oklahoma, as the ``Mickey Mantle Post Office Building.'' 
(Public Law 110-331). September 30, 2008.
    S. 3241.--To designate the facility of the United States 
Postal Service located at 1717 Orange Avenue in Fort Pierce, 
Florida, as the ``CeeCee Ross Lyles Post Office Building.'' 
(Public Law 110-333). September 30, 2008.
    H.R. 5975.--To designate the facility of the United States 
Postal Service located at 101 West Main Street in Waterville, 
New York, as the ``Cpl. John P. Sigsbee Post Office.'' (Public 
Law 110-347). October 7, 2008.
    H.R. 6092.--To designate the facility of the United States 
Postal Service located at 101 Tallapoosa Street in Bremen, 
Georgia, as the ``Sergeant Paul Saylor Post Office Building.'' 
(Public Law 110-348). October 7, 2008.
    H.R. 6437.--To designate the facility of the United States 
Postal Service located at 200 North Texas Avenue in Odessa, 
Texas, as the ``Corporal Alfred Mac Wilson Post Office.'' 
(Public Law 110-349). October 7, 2008.
    S. 3015.--To designate the facility of the United States 
Postal Service located at 18 S. G Street, Lakeview, Oregon, as 
the ``Dr. Bernard Daly Post Office Building.'' (Public Law 110-
352). October 7, 2008.
    S. 3082.--To designate the facility of the United States 
Postal Service located at 1700 Cleveland Avenue in Kansas City, 
Missouri, as the ``Reverend Earl Abel Post Office Building.'' 
(Public Law 110-353). October 7, 2008.
    H.R. 4010.--To designate the facility of the United States 
Postal Service located at 100 West Percy Nepessing Street in 
Indianola, Mississippi, as the ``Minnie Cox Post Office 
Building.'' (Public Law 110-440). October 21, 2008.

                     VIII. PRESIDENTIAL NOMINATIONS

    The Committee received a total of 44 Presidential 
nominations during the 110th Congress. Of these, 22 were 
reported favorably and confirmed by the Senate, 10 were 
discharged from Committee and confirmed, 6 were withdrawn by 
the President, and 6 were not acted upon by the Committee. 
Hearing dates and reports on these nominations appear in 
Section IV.

    The following 17 nominations were favorably reported by the 
Committee and confirmed by the Senate:
    Julie L. Myers, of Kansas, to be Assistant Secretary of 
Homeland Security, Department of Homeland Security; vice 
Michael J. Garcia. Confirmed December 19, 2007.
    Gregory B. Cade, of Virginia, to be Administrator of the 
United States Fire Administration, Department of Homeland 
Security; vice R. David Paulison, resigned. Confirmed May 25, 
2007.
    Heidi M. Pasichow, of the District of Columbia, to be 
Associate Judge of the Superior Court of the District of 
Columbia for a term of fifteen years; vice Anna Blackburne-
Rigsby, elevated. Confirmed August 1, 2008.
    Carol A. Dalton, of the District of Columbia, to be 
Associate Judge of the Superior Court of the District of 
Columbia for the term of fifteen years; vice A. Noel Anketell 
Kramer, elevated. Confirmed August 1, 2008.
    Anthony C. Epstein, of the District of Columbia, to be 
Associate Judge of the Superior Court of the District of 
Columbia for the term of fifteen years; vice Susan Rebecca 
Holmes, retired. Confirmed August 1, 2008.
    Michael W. Tankersley, of Texas, to be Inspector General, 
Export-Import Bank. (New Position) Confirmed June 28, 2007.
    Howard C. Weizmann, of Maryland, to be Deputy Director of 
the Office of Personnel Management; vice Dan Gregory Blair. 
Confirmed June 28, 2007.
    Ellen C. Williams, of Kentucky, to be a Governor of the 
United States Postal Service, United States Postal Service; 
vice for a term expiring December 8, 2014. (Reappointment) 
Confirmed June 4, 2008.
    Claude M. Kicklighter, of Georgia, to be Inspector General, 
Department of Defense; vice Joseph E. Schmitz, resigned. 
Confirmed April 12, 2007.
    Carol W. Pope, of the District of Columbia, to be a Member 
of the Federal Labor Relations Authority for the term of five 
years expiring July 1, 2009. (Reappointment) Confirmed October 
2, 2008.
    Dennis R. Schrader, of Maryland, to be Deputy 
Administrator, Federal Emergency Management Agency, Department 
of Homeland Security. (New Position) Confirmed August 3, 2007.
    Steven H. Murdock, of Texas, to be Director of the Census, 
Department of Commerce; vice Louis Kincannon. Confirmed 
December 19, 2007.
    James A. Nussle, of Iowa, to be Director, Office of 
Management and Budget; vice Robert J. Portman. Confirmed 
September 4, 2007.
    W. Ross Ashley III, of Virginia, to be Associate 
Administrator for Grant Programs of the Federal Emergency 
Management Agency, U.S. Department of Homeland Security. (New 
Position) Confirmed December 19, 2007.
    Jeffrey W. Runge, of North Carolina, to be Assistant 
Secretary for Health Affairs and Chief Medical Officer, U.S. 
Department of Homeland Security. (New Position) Confirmed 
December 19, 2007.
    Todd J. Zinser, of Virginia, to be Inspector General, 
Department of Commerce, vice Johnnie E. Frazier, resigned. 
Confirmed December 19, 2007.
    Eric M. Thorson, of Virginia, to be Inspector General, 
Department of the Treasury, vice Harold Damelin, resigned. 
Confirmed August 1, 2008.
    Harvey E. Johnson, Jr., of Virginia, to be Deputy 
Administrator, Federal Emergency Management Agency, Department 
of Homeland Security. Confirmed June 27, 2008.
    Thomas M. Beck, of Virginia, to be a Member of the Federal 
Labor Relations Authority for a term of five years expiring 
July 1, 2010, vice Wayne Cartwright Beyer, resigned. Confirmed 
October 2, 2008.
    Robert D. Jamison, of Virginia, to be an Under Secretary of 
Homeland Security, vice George W. Foresman, resigned. Confirmed 
December 19, 2007.
    Paul A. Schneider, of Maryland, to be Deputy Secretary, 
U.S. Department of Homeland Security, vice Michael Jackson, 
resigned. Confirmed June 4, 2008.
    Nanci E. Langley, of Virginia, to be a Commissioner of the 
Postal Regulatory Commission for a term expiring November 22, 
2012, vice Dawn A. Tisdale, term expired. Confirmed June 4, 
2008.
    Elaine C. Duke, of Virginia, to be Under Secretary for 
Management, U.S. Department of Homeland Security, vice Paul A. 
Schneider. Confirmed June 27, 2008.
    Ruth Y. Goldway, of California, to be a Commissioner of the 
Postal Regulatory Commission for the term expiring November 22, 
2014. (Reappointment) Confirmed October 2, 2008.
    Alfred S. Irving, Jr., of the District of Columbia, to be 
an Associate Judge of the Superior Court of the District of 
Columbia, for the term of fifteen years, vice Mary Ann Gooden 
Terrell, retired. Confirmed November 20, 2008.
    Kathryn A. Oberly, of the District of Columbia, to be an 
Associate Judge of the District of Columbia Court of Appeals 
for the term of fifteen years, vice Michael W. Farrell, 
retired. Confirmed November 20, 2008.
    Neil M. Barofsky, of New York, to be Special Inspector 
General for the Troubled Asset Relief Program, Department of 
the Treasury (New Position) Confirmed December 8, 2008.

    The following 5 nominations were favorably reported by the 
Committee but not acted upon by the Senate. Each was returned 
to the President under provisions of Senate Rule XXXI, 
paragraph 6, of the Standing Rules of the Senate:
    Andrew Saul, of New York, to be a Member of the Federal 
Retirement Thrift Investment Board for a term expiring 
September 25, 2012. (Reappointment) Returned January 2, 2009.
    Gordon J. Whiting, of New York, to be a Member of the 
Federal Retirement Thrift Investment Board for a term expiring 
September 25, 2010. (Reappointment) Returned January 2, 2009.
    Alejandro M. Sanchez, of Florida, to be a Member of the 
Federal Retirement Thrift Investment Board for a term expiring 
October 11, 2010. (Reappointment) Returned January 2, 2009.
    Gus P. Coldebella, of Massachusetts, to be General Counsel, 
U.S. Department of Homeland Security; vice Philip J. Perry, 
resigned. Returned January 2, 2009.
    James A. Williams, of Virginia, to be Administrator, U.S. 
General Services Administration; vice Lurita Alexis Doan, 
resigned. Returned January 2, 2009.

    The following 6 nominations were withdrawn by the 
President:
    Wayne Cartwright Beyer, of New Hampshire, to be a Member of 
the Federal Labor Relations Authority for a term of five years 
expiring July 1, 2010; vice Othoniel Armendariz, to which 
position he was appointed during the last recess of the Senate. 
Withdrawn December 14, 2007.
    Ellen C. Williams, of Kentucky, to be a Governor, United 
States Postal Service; vice for a term expiring December 8, 
2016. (Reappointment) Withdrawn February 12, 2007.
    Dale Cabaniss, of Virginia, to be a Member of the Federal 
Labor Relations Authority for a term of five years expiring 
July 29, 2012. (Reappointment) Withdrawn June 28, 2007.
    Thomas M. Beck, of Virginia, to be a Member of the Federal 
Labor Relations Authority for a term of five years expiring 
July 29, 2012; vice Dale Cabaniss, term expiring. Withdrawn 
December 14, 2007.
    Robert D. Jamison, of Virginia, to be Under Secretary for 
National Protection and Programs, Department of Homeland 
Security, vice George W. Foresman, resigned. Withdrawn December 
19, 2007.
    Harvey E. Johnson, Jr., of Virginia, to be Deputy 
Administrator and Chief Operating Officer, Federal Emergency 
Management Agency, Department of Homeland Security. Withdrawn 
December 12, 2007.

    The following 6 nominations were not acted upon by the 
Committee. Each was returned to the President under provisions 
of Senate Rule XXXI, paragraph 6, of the Standing Rules of the 
Senate:
    Susan E. Dudley, of Virginia, to be Administrator of the 
Office of Information and Regulatory Affairs, Office of 
Management and Budget; vice John D. Graham, resigned. Recieved 
in the Senate January 9, 2007.Returned January 2, 2009.
    Susan E. Dudley, of Virginia, to be Administrator of the 
Office of Information and Regulatory Affairs, Office of 
Management and Budget, vice John D. Graham, resigned, to which 
position she was appointed during the last recess of the 
Senate. Received in the Senate May 16, 2007. Returned January 
2, 2009.
    Brandon Chad Bungard, of Virginia, to be General Counsel of 
the Federal Labor Relations Authority for a term of five years, 
vice Colleen Duffy Kiko, resigned. Received in the Senate April 
2, 2008. Returned January 2, 2009.
    Michael W. Hager, of Virginia, to be director of the Office 
of Personnel Management for a term of four years, vice Linda M. 
Springer. Received in the Senate August 1, 2008. Returned 
January 2, 2009.
    Paul A. Quander, Jr., of the District of Columbia, to be 
Director of the Court Services and Offender Supervision Agency 
for the District of Columbia for a term of six years. 
(Reappointment). Received in the Senate September 21, 2008. 
Returned January 2, 2009.
    Robert W. McGowan, of Nevada, to be a Governor of the 
United States Postal Service for a term expiring December 8, 
2015, vice Alan Craig Kessler, term expiring. Received in the 
Senate September 30, 2008. Returned January 2, 2009.
                  IX. ACTIVITIES OF THE SUBCOMMITTEES

                   SUBCOMMITTEE ON FEDERAL FINANCIAL

                  MANAGEMENT, GOVERNMENT INFORMATION,

              FEDERAL SERVICES, AND INTERNATIONAL SECURITY

    The Subcommittee on Federal Financial Management, 
Government Information, Federal Services, and International 
Security held the following hearings during the 110th Congress.

                       Chairman: Thomas R. Carper

                  Ranking Minority Member: Tom Coburn

                         I. Hearings 2007-2008

Improving Federal Financial Management: Progress Made and the 
        Challenges Ahead (March 1, 2007)
    The hearing focused on the improvements made in Federal 
financial management over the years, particularly since the 
passage of the Chief Financial Officers Act of 1990 (CFO ACT). 
It will also examine the accomplishments and goals discussed in 
the 2007 Federal Financial Management Report recently issued by 
OMB's Office of Federal Financial Management (OFFM).
    Witnesses: David M. Walker, Comptroller General of the 
United States, GAO; Linda M. Combs, Controller, Office of 
Federal Financial Management (OFFM).
Eliminating and Recovering Improper Payments (March 29, 2007)
    The hearing focused on the progress agencies are making in 
implementing the Improper Payments Information Act of 2002 and 
the Recovery Auditing Act of 2001, which was enacted as part of 
the FY 2002 National Defense Authorization Act. It will also 
examine the accomplishments and goals discussed in the report 
entitled ``Improving the Accuracy and Integrity of Federal 
Payments'' released by OMB's Office of Federal Financial 
Management (OFFM) on January 31, 2007
    Witnesses: Linda M. Combs, Controller, OFFM, OMB; McCoy 
Williams, Director, Financial Management and Assurance, GAO; 
John W. Cox, Chief Financial Officer, Department of Housing and 
Urban Development; David M. Norquist, Chief Financial Officer, 
Department of Homeland Security; Timothy B. Hill, Chief 
Financial Officer, the Centers for Medicare and Medicaid 
Services; Terry Bowie, Deputy Chief Financial Officer, NASA; 
Lee White, Executive Vice President for U.S. Operations, PRG-
Schultz.
The Road Ahead: Implementing Postal Reform (April 19, 2007)
    The hearing focused on the current state of the Postal 
Service. It will also examine the progress being made at the 
Postal Service and the Postal Regulatory Commission (formerly 
the Postal Rate Commission) in implementing the Postal 
Accountability and Enhancement Act (Public Law 109-435), the 
comprehensive postal reform legislation signed into law by the 
President in December.
    Witnesses: John E. Potter, Postmaster General and Chief 
Executive Officer, U.S. Postal Service; Dan G. Blair, Chairman, 
Postal Regulatory Commission; Kate Siggerud, Physical 
Infrastructure, GAO.
Federal Real Property: Real Waste in Need of Real Reform (May 24, 2007)
    The hearing focused on the findings in the recent GAO High 
Risk List update on Federal real property management: Federal 
Real Property: Progress Made Toward Addressing Problems, but 
Underlying Obstacles Continue to Hamper Reform (GAO-07-349). It 
will also examine agencies' progress in implementing Executive 
Order 13327, issued in February 2004 a year after Federal real 
property management was first placed on GAO's High Risk list.
    Witnesses: Clay Johnson, Deputy Director for Management, 
OMB; Mark L. Goldstein, Director, Physical Infrastructure, GAO; 
Boyd Rutherford, Assistant Secretary for Administration, USDA; 
David Winstead, Commissioner, Public Buildings Service, GSA; 
Phillip Grone, Deputy Under Secretary for Installations and 
Environment, DOD; Robert Henke, Assistant Secretary for 
Management, U.S. Department of Veterans Affairs (VA).
Meeting the Challenge: Are Missed Opportunities Costing Us Money? (June 
        28, 2007)
    The hearing focused on the findings in a recent GAO report 
on the Department of Homeland Security's (DHS) challenges in 
modernizing its financial management systems: Homeland 
Security: Department-wide Integrated Financial Management 
Systems Remain a Challenge. It will also focus on the progress 
made by the department since GAO's prior report in putting into 
place the financial management systems and processes needed to 
support the department's mission and operations.
    Witnesses: McCoy Williams, Director, Financial Management 
and Assurance, GAO; Keith Rhodes, Chief Technologist, Applied 
Research and Methods, Center for Engineering and Technology, 
GAO; David Norquist, Chief Financial Officer, DHS; Scott 
Charbo, Chief Information Officer, DHS.
Preparing for 2010: Is the Census Bureau Ready For the Job Ahead? (July 
        17, 2007)
    The hearing focused on the efforts the Census Bureau has 
undertaken to date to prepare for the 2010 Census.
    Witnesses: Louis I. Kincannon, Director, U.S. Census 
Bureau; Matthew J. Scirce, Director, Strategic Issues, GAO; 
David A. Powner, Director, Information Technology, GAO; Andrew 
Reamer, Fellow, Metropolitan Policy Institute, The Brookings 
Institution; Maurice McTigue, Vice President, Director of the 
Government Accountability Project, and Distinguished Visiting 
Scholar Mercatus Center at George Mason University.
Views From the Postal Workforce on Implementing Postal Reform (July 25, 
        2007)
    The hearing is the second the Subcommittee has held this 
year to take testimony on the implementation of the Postal 
Accountability and Enhancement Act of 2006, H.R. 6407, 
legislation that was signed into law in December.
    Witnesses: William Burrus, President, American Postal 
Workers Union; John Hegarty, President, National Postal Mail 
Handlers Union; Donnie Pitts, President, National Rural Letter 
Carriers Association; William H. Young, President, National 
Association of Letter Carriers; Louis Atkins, Executive Vice 
President, National Association of Postal Supervisors; Dale 
Goff, President, National Association of Postmasters of the 
United States.
Service Standards at the Postal Service: Are Customers Getting What 
        They Paid For? (August 2, 2007)
    The hearing will be the third the Subcommittee has held 
this year to take testimony on the implementation of the Postal 
Accountability and Enhancement Act of 2006 (H.R. 6407), 
legislation that was signed into law in December. This hearing 
focused on the implementation of Title III of the Act, which 
calls for the creation of service standards for most postal 
products.
    Witnesses: John E. Potter, Postmaster General, U.S. Postal 
Service; Dan G. Blair, Chairman, Postal Regulatory Commission; 
Jody Berenblatt, Senior Vice President for Postal Strategy, 
Bank of America; Anthony Conway, Executive Director, Alliance 
of Nonprofit Mailers; Robert McLean, Executive Director, 
Mailers Council; James West, Director of Postal and Legislative 
Affairs, Williams-Sonoma, Inc.
High-Risk Information Technology Projects: Is Poor Management Leading 
        to Billions in Waste? (September 20, 2007)
    The hearing focused on the Office of Management and 
Budget's ability to properly analyze, track, and evaluate 
information system investments that have been poorly planned 
and underperforming. In addition, five agencies will be 
testifying on a separate panel regarding their own agency's 
management of projects that have been identified OMB as ``at 
risk.'' This hearing is a follow-up to one held last September.
    Witnesses: Hon. Karen Evans, Administrator for Electronic 
Government and Information Technology, Office of Management and 
Budget; David A. Powner, Director, Information Technology, 
Government Accountability Office; Barry West, Chief Information 
Officer, Department of Commerce; Daniel Mintz, Chief 
Information Officer, Department of Transportation; Michael 
Duffy, Deputy Assistant Secretary for Information Systems and 
Chief Information Officer, Department of Treasury; Scott 
Charbo, Chief Information Officer, Department of Homeland 
Security; Paul Brinkley, Deputy Undersecretary for Business 
Transformation, Department of Defense.
Cost Effective Airlift in the 21st Century (September 27, 2007)
    The hearing focused on how to meet the U.S.'s strategic 
airlift demands in a cost effective way. Strategic Airlift 
allows the U.S. military to deliver much needed cargo, 
supplies, weapon systems, and troops anywhere in the world and 
also allows the U.S. to respond militarily to threats abroad in 
real time. This capability is currently being fulfilled 
admirably by the C-5 and the C-17.
    As the strategic airlift fleet gets older, the question is 
how do we sustain this capability in a cost-effective manner? 
Two options are currently on the table: The first is to 
modernize existing C-5s in order to increase the performance 
and reliability of the C-5 fleet, and thus enhance the 
capability; the second option is to retire older C-5s and use 
the funding to procure newer C-17s. A clear decision on which 
option to pursue has not officially occurred, and this hearing 
will comprehensively explore the arguments for and against each 
option in order to achieve the most cost effective option.
    Witnesses: Ms. Sue Payton, Assistant Secretary of the Air 
Force for Acquisition; General Norton A. Schwartz, Commander of 
U.S. Transportation Command; Mr. Christopher Bolkcom, 
Specialist in National Defense, Congressional Research Service; 
Larry J. McQuien, Vice President, Business Venture, Lockheed 
Martin Aeronautics Company.
Improving Financial and Business Management at the Department of 
        Defense (October 16, 2007)
    The hearing will examine the Department of Defense's (DOD) 
financial management as it relates to the department's overall 
business transformation process. This is a follow-up to a 
hearing held in August 2006.
    The focus of the hearing will be on the Department of 
Defense's Financial Improvement and Audit Readiness (FIAR) 
plan, Enterprise Transition Plan (ETP), and how both plans link 
into DOD's overall business transformation strategy. There will 
be particular focus on the recent establishment of a Chief 
Management Officer within the department.
    Witnesses: Hon. David Walker, Comptroller General, 
Government Accountability Office; Mr. J. David Patterson, 
Principal Deputy Under Secretary of Defense (Comptroller), 
Department of Defense; Mr. Paul Brinkley, Deputy Under 
Secretary, Business Transformation, Department of Defense; Mr. 
Dov S. Zakheim, former Under Secretary of Defense 
(Comptroller).
Single Audits: Are They Helping To Safeguard Federal Funds? (October 
        25, 2007)
    The hearing will examine the implementation of the Single 
Audit Act, which as you know is a key mechanism used by the 
Federal Government to monitor hundreds of billions in Federal 
Grants and other types of Federal assistance annually.
    The President's Council on Integrity and Efficiency issued 
a report in June 2007 that identified a number of issues 
related to the execution of these single audits. The report 
projected that based on the single audits reviewed in a 
statistical sample:

     L49 percent of the universe was acceptable and 
could be relied upon,
     L16 percent of the universe had significant 
deficiencies and was of limited reliability, and
     L35 percent of the universe was unacceptable and 
could not be relied upon.

    The study noted that audits of entities that expended more 
than $50 million were of noticeably higher quality than those 
that spent less than $50 million.
    The hearing focused on the results of this study and the 
various roles oversight organizations have in monitoring single 
audits. The hearing will also explore the study's 
recommendations and the potential impact that implementing the 
recommendations could have to help ensure Federal funds are 
safeguarded.
    Witnesses: Jeanette Franzel, Director, Government 
Accountability Office (GAO develops governmental audit 
standards); Hugh Monaghan, Director, Non-Federal Audits, U.S. 
Department of Education Office of Inspector General; Daniel 
Werfel, Acting Controller, Office of Management and Budget; 
Mary Foelster, Director, Governmental Auditing and Accounting, 
American Institute of Certified Public Accountants.
Small Business Administration: Is the 7(a) Program Achieving Measurable 
        Outcomes? (November 1, 2007)
    The hearing focused on a recent report from GAO (GAO-07-
769) on the Small Business Administration's efforts to measure 
the performance of its 7(a) loan program.
    Witnesses: William B. Shear, Director, Financial Markets 
and Community Investment, Government Accountability Office; 
Grady Hedgespeth, Director of Financial Assistance, Office of 
Capital Access, Small Business Administration; Anthony R. 
Wilkinson, President and CEO, the National Association of 
Government Guaranteed Lenders; Veronique de Rugy, Senior 
Research Fellow, the Mercatus Center at George Mason 
University.
Management and Oversight of Contingency Contracting in Hostile Zones 
        (January 24, 2008)
    The focus of the joint hearing with the Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia hearing will be contracting practices 
in Iraq and Afghanistan.
    Witnesses: Stuart W. Bowen, Jr. Special Inspector General 
for Iraq Reconstruction; William M. Solis, Director, Defense 
Capabilities and Management, Government Accountability Office; 
Dina L. Rasor, Director, Follow the Money Project, and co-
author of Betraying Our Troops: The Destructive Results of 
Privatizing War, with Robert H. Bauman, co-author Betraying our 
Troops: The Destructive Results of Privatizing War; First 
Sergeant Perry Jefferies, U.S. Army (Ret.); Hon. P. Jackson 
(``Jack'') Bell, Deputy Under Secretary for Logistics and 
Materiel Readiness, Department of Defense; Gen. David M. 
Maddox, U.S. Army (Ret.), Former Commander-in-Chief, U.S. Army 
Europe; Member of the Gansler Commission; Ambassador John 
Herbst, Coordinator for Reconstruction and Stabilization, 
Department of State; William H. Moser, Deputy Assistant 
Secretary for Logistics Management, Department of State; James 
R. Kunder, Acting Deputy Assistant Administrator, U.S. Agency 
for International Development.
Eliminating Agency Payment Errors (January 31, 2008)
    The hearing focused on agencies' improper payments 
estimates for FY07. According to agencies' FY07 financial 
statements and a summary improper payments report set to be 
issued by OMB this week, nearly $55 billion in improper 
payments are estimated to have been made in FY07. This is up 
from $41 billion in FY06, $38 billion in FY05, and $45 billion 
in FY04. GAO has released an analysis of the new numbers in a 
January 23 report (GAO-08-377R) that includes a list of each 
agencies reported error estimates.
    Witnesses: Danny Werfel, Deputy Controller, Office of 
Budget and Management; McCoy Williams, Managing Director, 
Financial Management and Assurance Team, U.S. Government 
Accountability Office; Charles Christopherson, Chief Financial 
Officer and Chief Information Officer, U.S. Department of 
Agriculture; Anthony Dale, Managing Director, Federal 
Communications Commission; Charles Johnson, Assistant Secretary 
and Chief Financial Officer, Resources and Technology; U.S. 
Department of Health and Human Services; David Rust, Acting 
Deputy Commissioner, Disability and Income Security Programs, 
U.S. Social Security Administration.
The State of the U.S. Postal Service One Year After Reform (March 5, 
        2008)
    The Postal Accountability and Enhancement Act of 2006--the 
first major reform of the Postal Service in more than 30 
years--was signed into law in December 2007. Since then, the 
Postal Rate Commission has become the Postal Regulatory 
Commission and, in October 2007, established a new postal 
pricing system mandated by the Act that features a CPI-based 
price cap. In addition, the Postal Service met its statutory 
mandate at the end of 2007 to publish a new set of service 
standards for its Market Dominant products that take into 
account such things as the new Act, the current mailing 
economy, and projected future demand and need for postal 
services.
    Going forward, there are still a number of reports and 
other actions expected over the course of the year as a result 
of the Act. The Postal Service will be issuing a report in July 
on how it plans to reorganize itself, including its workforce 
and facilities network, to meet the new service standards it 
set last year. In addition, the Regulatory Commission is 
working to set new Postal Service accounting standards, to 
prepare its first annual report on whether the Postal Service 
is operating in compliance with the Act, and to publish a year-
end report on the status and history of the Postal Service's 
universal service obligation and monopoly.
    Witnesses: John E. Potter, Postmaster General/CEO, U.S. 
Postal Service; Dan G. Blair, Chairman, Postal Regulatory 
Commission.
Agencies in Peril: Are We Doing Enough To Protect Federal IT and Secure 
        Sensitive Information (March 12, 2008)
    The hearing will examine select agencies' compliance with 
and implementation of the Federal Information Security 
Management Act (FISMA) that was passed under Title III of the 
E-Government Act of 2002. In addition, the hearing will review 
OMB's and agency CIOs ability to measure and track progress in 
implementing information security policies and procedures. The 
hearing focused on what constructive and proactive measures 
Congress, OMB, and agencies can undertake to cost-effectively 
secure government information systems.
    Witnesses: Hon. Karen Evans, Administrator of E-Government 
and Information Technology, Office of Management and Budget; 
Gregory Wilshusen, Director, Information Security Issues, 
Government Accountability Office; Tim Bennett, President, Cyber 
Security Industry Alliance; Hon. Robert Howard, Department of 
Veteran Affairs; Susan Swart, Chief Information Officer, 
Department of State; Daren Ash, Chief Information Officer, 
Nuclear Regulatory Commission; Phil Heneghan, Chief Information 
Security Officer, U.S. Agency for International Development.
Addressing Iran's Nuclear Ambitions (April 24, 2008)
    The focus of the hearing is what the most effective policy 
options are regarding Iran moving forward.
    Witnesses: Mr. Jeffrey Feltman, Principal Deputy Assistant 
Secretary for Near Eastern Affairs, U.S. Department of State; 
Ms. Patricia McNerney, Principal Deputy Assistant Secretary for 
International Security and Nonproliferation, U.S. Department of 
State; Hon. Dennis Ross, Counselor and Ziegler Distinguished 
Fellow, Washington Institute for Near East Policy, and Former 
Middle East envoy in both George H.W. Bush and Bill Clinton 
Administrations; Hon. Stephen Rademaker, Senior Counsel, 
Barbour Griffith and Rogers, LLC, and Former Assistant 
Secretary of Arms Control and Nonproliferation under President 
George W. Bush, and Former National Security Advisor to Senate 
Majority Leader Bill Frist; Dr. Graham Allison, Director of the 
Belfer Center for Science and International Affairs and Douglas 
Dillon Professor of Government, Harvard University's John F. 
Kennedy School of Government, and Former Special Advisor to 
Secretary of Defense under President Reagan, and Former 
Assistant Secretary of Defense for Policy and Plans under 
President Clinton; Dr. Jim Walsh, Research Associate, 
Massachusetts Institute of Technology, and Former Executive 
Director of the Managing the Atom Project, Belfer Center for 
Science and International Affairs at Harvard University's John 
F. Kennedy School of Government.
National Archives Oversight: Protecting Our Nation's History for Future 
        Generations (May 14, 2008)
    This hearing will serve as the only Senate oversight 
hearing of the National Archives since at least 1997. It will 
provide a forum for the National Archives and outside groups to 
address Congress about previous accomplishments providing 
public access to Federal records, present challenges 
transitioning to electronic records management, and future 
opportunities to increase open access worldwide through the use 
of information technology.
    Witnesses: Hon. Allen Weinstein, Ninth Archivist of the 
United States, National Archives and Records Administration. 
Weinstein was accompanied by Adrienne Thomas, Deputy Archivist 
of the United States; Linda Koontz, Director, Information 
Management Issues, Government Accountability Office; Paul 
Brachfeld, Inspector General, National Archives and Records 
Administration; Patrice McDermott, Director, 
OpenGovernment.org; Thomas Blanton, Director, National Security 
Archives; Dr. Jim Henderson, Former State Archivist, State of 
Maine; Dr. Martin Sherwin, Pulitzer Prize-winning American 
Historian and University Professor of History, George Mason 
University.
Addressing the U.S.-Pakistan Strategic Relationship (June 12, 2008)
    The focus of the hearing is what the most effective policy 
options are regarding Pakistan.
    Witnesses: Don Camp, Principal Deputy Assistant Secretary 
of State for South and Central Asian Affairs, U.S. Department 
of State; K. Alan Kronstadt, Specialist in South Asian Affairs, 
Foreign Affairs, Defense and Trade Division, Congressional 
Research Service; Lisa Curtis, Senior Research Fellow, Asian 
Studies Center, The Heritage Foundation; Dr. Stephen P. Cohen, 
Senior Fellow, Foreign Policy Studies, The Brookings 
Institution; Michael Krepon, Co-Founder, The Henry L. Stimson 
Center.
In the Red: Addressing the Nation's Financial Challenges (June 26, 
        2008)
    The hearing will examine the results of the fiscal year 
2007 audit of the U.S. Government's consolidated financial 
statements and the status of the Federal Government's fiscal 
condition. The hearing will also focus on the government's 
reported long term fiscal challenge highlighted in the 2007 
audit report and the government's first ever clean opinion on 
the Statement of Social Insurance.
    Witnesses: Gene Dodaro, Comptroller General, Government 
Accountability Office; Danny Werfel, Acting Controller, Office 
of Management and Budget; Kenneth Carfine, Fiscal Assistant 
Secretary, U.S. Department of Treasury; Hon. David Walker, CEO 
and President, Peterson Foundation; Robert Bixby, CEO, Concord 
Coalition; James Horney, Director, Federal Fiscal Policies, 
Center on Budget and Policy Priorities; Hon. Maurice McTigue, 
Vice President, Mercatus Center at George Mason University, 
Regulatory Studies and Government Accountability Program.
Improving Federal Program Management Using Performance Information 
        (July 24, 2008)
    The hearing will consider what performance data government 
agencies have been collecting and measuring under key 
performance-based reform initiatives such as GPRA; the focus on 
performance as the centerpiece of the current Administration's 
President Management Agenda (PMA); and the Office of Management 
and Budget's (OMB) push for integration of budget and 
performance data using the Program Assessment and Rating Tool 
(PART). The hearing will examine will examine the use of 
performance information in decisionmaking and resource 
allocation at Federal agencies. It will explore where and how 
performance information is successfully used in managing 
government programs and what remains to be done to support its 
more comprehensive use across government. Finally, the hearing 
will attempt to lay out what a new management reform strategy 
for the 21st Century might include.
    Witnesses: Hon. Martin O'Malley, Governor of Maryland; 
Bernice Steinhardt, Director for Strategic Issues, Government 
Accountability Office (GAO); Marcus C. Peacock, Deputy 
Administrator, U.S. Environmental Protection Agency (EPA); 
former official at Office of Management and Budget (OMB); Dr. 
Donald F. Kettl, Director of Fels Institute of Government and 
Robert A. Fox Professor of Leadership, University of 
Pennsylvania; James (``Jim'') Dyer, Chief Financial Officer and 
Performance Improvement Officer, Nuclear Regulatory Commission 
(NRC); Scott Pace, Associate Administrator for Program Analysis 
and Evaluation and Performance Improvement Officer, National 
Aeronautics and Space Administration (NASA); Daniel Tucker, 
Deputy Assistant Secretary for Budget and Performance 
Improvement Officer, U.S. Department of Veterans Affairs (VA).
Offline and Off-budget: The Dismal State of Information Technology 
        Planning in the Federal Government (July 31, 2008)
    The hearing will highlight the current management, 
reporting, and oversight of the Federal Government's IT 
portfolio. The first panel will discuss the major reasons why 
agencies rebaseline their projects, whether appropriate 
guidance is in place, and what the Federal Government can do to 
make sure IT projects are delivered on-time and on-budget. The 
second panel will take a solutions-oriented approach to 
ensuring high-cost mission critical IT investments are 
effectively managed.
    Witnesses: Karen Evans, Administrator for E-Government and 
Information Technology, Office of Management and Budget; Paul 
Denett, Administrator for Federal Procurement Policy, Office of 
Management and Budget; Dave Powner, Director, Information 
Management, Government Accountability Office; Al Grasso, Chief 
Executive Officer, Mitre Corporation; Dr. Norm Brown, Executive 
Director, Center for Program Transformation; Tom Jarrett, 
Secretary of the Department of Technology and Information, 
State of Delaware.
Reducing the Undercount in the 2010 Census (September 23, 2008)
    The hearing will examine the Census Bureau's plans to 
achieve a complete and accurate count in the 2010 Census. 
Specific topics to be discussed are the significance of 
partnerships to ensuring accurate counts; the importance of 
culturally appropriate outreach; challenges to reaching and 
counting ethnic and racial minorities; the impact of the 
current immigration debate on future response rates to the 
decennial census; and the Bureau's efforts to ensure a diverse 
workforce.
    Witnesses: Hon. Steven H. Murdock, Director, U.S. Census 
Bureau; Robert Goldenkoff, Director, Strategic Issues, U.S. 
Government Accountability Office; Hon. Kenneth Prewitt, Former 
Census Director Roderick Harrison, Director Databank, Joint 
Center for Political and Economic Studies; Karen Narasaki, 
President and Executive Director, Asian American Justice 
Center; Joseph Salvo, Director, Population Division, New York 
City Department of City Planning; and Arturo Vargas, Executive 
Director, National Association of Latino Elected and Appointed 
Officials.
Addressing Cost Growth of Major Department of Defense Weapons Systems 
        (September 25, 2008)
    This hearing will look at how and why the majority of the 
Department of Defense's (DOD) major weapons systems have 
experienced $295 billion in cost overruns and average schedule 
delays of 2 years. DOD's major weapon programs are some of the 
most expensive discretionary spending items in the Federal 
budget. A recent Government Accountability Office (GAO) study 
determined that the number of DOD's weapons programs that 
experience cost overruns and schedule delays has grown 
considerably since FY 2000. The reasons for these delays and 
cost growths must be thoroughly investigated in order to 
improve efficiency and curb wasteful spending. This hearing 
will examine the factors responsible for these delays and cost 
overruns and identify potential legislative solutions Congress 
can undertake.
    Witnesses: Hon. James I. Finley, Deputy Under Secretary of 
Defense for Acquisition and Technology, U.S. Department of 
Defense; Michael J. Sullivan, Director, Acquisition Sourcing 
Management, U.S. Government Accountability Office; Steve L. 
Schooner, Associate Professor of Law and Co-Director of the 
Government Procurement Law Program, The George Washington 
University Law School; Clark A. Murdock, Senior Adviser, 
International Security Program, Center for Strategic and 
International Studies.

                            II. Legislation

    The following bills were considered by the Subcommittee on 
Federal Financial Management, Government Information, and 
International Security during the 110th Congress:

MEASURES REFERRED TO THE SUBCOMMITTEE UPON WHICH HEARINGS WERE HELD OR 
                         OTHER ACTION WAS TAKEN

    S. 171--A bill to designate the facility of the United 
States Postal Service located at 301 Commerce Street in 
Commerce, Oklahoma, as the ``Mickey Mantle Post Office 
Building.''
    S. 194--A bill to designate the facility of the United 
States Postal Service located at 1300 North Frontage Road West 
in Vail, Colorado, as the ``Gerald R. Ford, Jr. Post Office 
Building.''
    S. 219--A bill to designate the facility of the United 
States Postal Service located at 152 North 5th Street in 
Laramie, Wyoming, as the ``Gale W. McGee Post Office.''
    S. 295--Servitude and Emancipation Archival Research 
ClearingHouse Act or the SEARCH Act--Directs the Archivist of 
the United States to establish, as part of the National 
Archives, a national database consisting of historic records of 
servitude and emancipation in the United States to assist 
African Americans in researching their genealogy. Requires the 
National Historical Publications and Records Commission to 
maintain the database.
    S. 303--A bill to designate the facility of the United 
States Postal Service located at 324 Main Street in Grambling, 
Louisiana, shall be known and designated as the ``Coach Eddie 
Robinson Post Office Building.''
    S. 412--A bill to designate the facility of the United 
States Postal Service located at 2633 11th Street in Rock 
Island, Illinois, as the ``Lane Evans Post Office Building.''
    S. 597--A bill to amend title 39, United States Code, to 
extend the authority of the United States Postal Service to 
issue a semipostal to raise funds for breast cancer research. 
Extends through December 31, 2011, provisions requiring the 
U.S. Postal Service to issue a special postage stamp for First-
Class mail that costs not less than 15 percent more than the 
regular First-Class stamp to contribute funding for breast 
cancer research. Requires the National Institutes of Health 
(NIH) and the Department of Defense (DOD) to annually report to 
Congress and the Government Accountability Office (GAO) on the 
use of any such funding, including a description of any 
significant advances or accomplishments.
    S. 619--Fair and Accurate Representation Act of 2007--
Amends Federal census law to direct the Secretary of Commerce 
to adjust census figures as necessary so that illegal aliens 
are not counted for purposes of the apportionment of 
Representatives in Congress.
    S. 1134--Transparency in Federal Funding Act of 2007--
Requires each cabinet-level department and independent agency 
that administers a program containing an earmark in the 
preceding year to disclose annually to Congress whether any 
portion of such earmarked funds were retained by the agency or 
any other organization tasked with distributing them.
    S. 1390--Perpetual Purple Heart Stamp Act--Directs the 
Postmaster General to provide for the issuance of a forever 
stamp (a stamp that meets First-Class postage requirements even 
if postage rates increase) to honor the sacrifices of the men 
and women of the Armed Forces who have been awarded the Purple 
Heart.
    S. 1444--Supply Our Soldiers Act of 2007--Directs the 
Secretary of Defense to provide for a program under which 
postal benefits are provided to a member of the Armed Forces 
who is on active duty and who is either: (1) serving in Iraq or 
Afghanistan; or (2) hospitalized at a military medical facility 
as a result of such service. Provides the postal benefits in 
the form of coupons or other evidence of credit (vouchers) to 
use for postal-free mailings.
    S. 1457--Mail Delivery Protection Act of 2007--Prohibits 
the U.S. Postal Service from contracting for the delivery of 
mail on any route with one or more families per mile. Allows 
existing contracts to remain in effect until terminated by 
their terms and to be renewed one or more times. (Chapter 52 of 
title 39, U.S. Code, was repealed by P.L. 109-435, the Postal 
Accountability and Enhancement Act.)
    S. 1539--A bill to designate the post office located at 309 
East Linn Street, Marshalltown, Iowa, as the ``Major Scott 
Nisely Post Office.''
    S. 1596--A bill to designate the facility of the United 
States Postal Service located at 103 South Getty Street in 
Uvalde, Texas, as the ``Dolph S. Briscoe, Jr. Post Office 
Building.''
    S. 1713--A bill to provide for the issuance of a 
commemorative postage stamp in honor of Rosa Parks.
    S. 2107--A bill to designate the facility of the United 
States Postal Service located at 570 Broadway in Bayonne, New 
Jersey, as the ``Dennis P. Collins Post Office Building.''
    S. 2110--A bill to designate the facility of the United 
States Postal Service located at 427 North Street in Taft, 
California, as the ``Larry S. Pierce Post Office.''
    S. 2150--A bill to designate the facility of the United 
States Postal Service located at 4320 Blue Parkway in Kansas 
City, Missouri, as the ``Wallace S. Hartsfield Post Office 
Building.''
    S. 2534--A bill to designate the facility of the United 
States Postal Service located at 2650 Dr. Martin Luther King 
Jr. Street, Indianapolis, Indiana, as the ``Julia M. Carson 
Post Office Building.''
    S. 2583--Improper Payments Elimination and Recovery Act of 
2008--Amends the Improper Payments Information Act of 2002 to 
require the head of each Federal agency to: (1) annually review 
all agency programs and identify those programs and activities 
that may be susceptible to significant improper payments; and 
(2) report on agency actions to reduce and recover improper 
payments. Defines ``improper payment'' as any payment that 
should not have been made, that was made in an incorrect or 
duplicate amount, or that was made to an ineligible recipient. 
Requires the Director of the Office of Management and Budget 
(OMB) to: (1) provide guidance to agencies for reducing 
improper payments, addressing risks, and establishing 
appropriate prepayment and postpayment internal controls; and 
(2) prepare an annual report with an identification of the 
compliance status of each agency in identifying improper 
payments and the delinquent programs responsible for the 
agency's status. Requires Federal agencies with outlays of $1 
million or more to conduct a recovery audit of all programs and 
activities to assist in recouping improper payments. Requires: 
(1) each agency's Inspector General to report each fiscal year 
on agency compliance with the Improper Payments Information Act 
of 2002 and this Act; (2) the head of an agency determined not 
to be in compliance for two consecutive fiscal years to expend 
available appropriations on intensified compliance; and (3) an 
agency determined not to be in compliance for three consecutive 
fiscal years, with a delinquent program reported for two of 
those years consecutively, to transfer 5 percent of the 
appropriations for each of delinquent program to the Treasury. 
Suspends appropriations to agencies that have an improper 
payment rate greater than 15 percent for three consecutive 
fiscal years until the agency's Inspector General certifies 
that sufficient changes have been implemented to warrant 
resumed authorization of appropriations.
    S. 2600--A bill to provide for the designation of a single 
ZIP code for Windsor Heights, Iowa.
    S. 2622--A bill to designate the facility of the United 
States Postal Service located at 11001 Dunklin Road in St. 
Louis, Missouri, as the ``William `Bill' Clay Post Office.''
    S. 2626--A bill to designate the facility of the United 
States Postal Service located at 160 East Washington Street in 
Chagrin Falls, Ohio, as the ``Sergeant Michael M. Kashkoush 
Post Office Building.''
    S. 2673--A bill to designate the facility of the United 
States Postal Service located at 10799 West Alameda Avenue in 
Lakewood, Colorado, as the ``Felix Sparks Post Office 
Building.''
    S. 2675--A bill to designate the facility of the United 
States Postal Service located at 201 West Greenway Street in 
Derby, Kansas, as the ``Sergeant Jamie O. Maugans Post Office 
Building.''
    S. 2725--A bill to designate the facility of the United 
States Postal Service located at 6892 Main Street in 
Gloucester, Virginia, as the ``Congresswoman Jo Ann S. Davis 
Post Office.''
    S. 3015--A bill to designate the facility of the United 
States Postal Service located at 18 S. G Street, Lakeview, 
Oregon, as the ``Dr. Bernard Daly Post Office Building.''
    S. 3082--A bill to designate the facility of the United 
States Postal Service located at 1700 Cleveland Avenue in 
Kansas City, Missouri, as the ``Reverend Earl Abel Post Office 
Building.''
    S. 3241--A bill to designate the facility of the United 
States Postal Service located at 1717 Orange Avenue in Fort 
Pierce, Florida, as the ``CeeCee Ross Lyles Post Office 
Building.''
    S. 3309--A bill to designate the facility of the United 
States Postal Service located at 2523 7th Avenue East in North 
Saint Paul, Minnesota, as the Mayor William ``Bill'' Sandberg 
Post Office Building.
    S. 3317--A bill to designate the facility of the United 
States Postal Service located at 101 West Main Street in 
Waterville, New York, as the ``Corporal John P. Sigsbee Post 
Office.''
    S. 3350--A bill to provide that claims of the United States 
to certain documents relating to Franklin Delano Roosevelt 
shall be treated as waived and relinquished in certain 
circumstances. Declares that any claim of the United States to 
certain property relating to Franklin Delano Roosevelt, his 
family, or staff shall be treated as having been waived and 
relinquished on the day before any person makes a gift of such 
property to the National Archives and Records Administration. 
Specifies such property as any part of the collection of 
documents, papers, and memorabilia relating to Roosevelt, or 
any member of his family or staff, which was originally in the 
possession of Grace Tully and retained by her at the time of 
her death, and included in her estate.
    S. 3384--Information Technology Investment Oversight 
Enhancement and Waste Prevention Act of 2008--Revises the 
requirement that each head of an executive agency identify, in 
strategic information resources management plans, any major 
information acquisition programs (or phase or increment) that 
have significantly deviated from the cost, performance, or 
schedule goals established for the program. Requires each 
Federal agency head primarily responsible for the information 
technology (IT) investment project under review, and the 
Director of the Office of Management and Budget (OMB), to 
jointly designate at least five of the agency's most mission 
critical IT investment projects (or fewer, under certain 
circumstances) as core IT investment projects or core projects, 
after considering specified criteria. Requires the Chief 
Information Officer (CIO) of the Federal agency primarily 
responsible for the IT investment project under review, after 
receiving a quarterly report from the project manager, to 
determine if the project has significantly deviated, in cost, 
schedule, or performance variance, at least 20 percent from the 
Original Baseline. Requires a report of any significant 
deviation to the appropriate congressional committees and to 
the Government Accountability Office (GAO). Requires the 
agency's CIO, similarly, to: (1) determine if the project has 
grossly deviated, in cost, schedule, or performance variance, 
at least 40 percent from the Original Baseline; and (2) report 
such a deviation to the appropriate congressional committees 
and GAO if the agency head does not. Specifies remedial actions 
in the event of a gross deviation. Requires each agency head to 
establish a program meeting specified requirements to improve 
the agency's IT processes. Requires the Administrator of the 
Office of Electronic Government and Information and Technology 
at OMB (the E-Gov Administrator) to establish a small group of 
individuals (IT Strike Force) to assist agencies in avoiding 
significant and gross deviations in the cost, schedule, and 
performance of IT investment projects. Requires the E-Gov 
Administrator to carry out certain activities upon determining 
that there is reasonable cause to believe that a major IT 
investment project is likely to significantly or grossly 
deviate, including the receipt of inconsistent or missing data.
    S. 3477--Presidential Historical Records Preservation Act 
of 2008--Authorizes appropriations for the National Historical 
Publications and Records Commission for FY 2010. Requires the 
Archivist of the United States, with the recommendation of the 
Commission, to make grants to eligible entities on a 
competitive basis to promote the historical preservation of, 
and public access to, historical records and documents relating 
to any President who does not have a presidential archival 
depository currently managed and maintained by the Federal 
Government pursuant to the Presidential Libraries Act of 1955. 
Defines eligible entities as specified tax-exempt organizations 
or state or local governments. Prohibits the use of grants for 
the maintenance, operating costs, or construction of any 
facility to house the historical records or documents. 
Prohibits the Commission from considering or recommending a 
grant application unless an entity establishes that it has met 
certain factors, including: (1) ensuring the preservation of, 
and access to, such historical works and collections of 
historical sources at no charge to the public; (2) having 
educational programs that make the use of such documents part 
of the entity's mission; and (3) having funds from non-federal 
sources in support of the entity's efforts to promote such 
preservation and access.
    S. Res. 111--A resolution expressing the sense of the 
Senate that the Citizen's Stamp Advisory Committee should 
recommend to the Postmaster General that a commemorative stamp 
be issued honoring the life of Oskar Schindler.
    S. Res. 269--A resolution expressing the sense of the 
Senate that the Citizens' Stamp Advisory Committee should 
recommend to the Postmaster General that a commemorative 
postage stamp be issued in honor of former United States 
Representative Barbara Jordan.
    S. Res. 273--A resolution expressing the sense of the 
Senate that the United States Postal Service should issue a 
semipostal stamp to support medical research relating to 
Alzheimer's disease.
    S. Res. 283--A resolution expressing the sense of the 
Senate that the United States Postal Service should discontinue 
the practice of contracting out mail delivery services.
    S. Res. 497--A resolution expressing the sense of the 
Senate that public servants should be commended for their 
dedication and continued service to the Nation during Public 
Service Recognition Week, May 5 through 11, 2008.
    S. Res. 680--A resolution to authorize the production of 
records by the Permanent Subcommittee on Investigations of the 
Committee on Homeland Security and Governmental Affairs.
    S. Con. Res. 22--A concurrent resolution expressing the 
sense of the Congress that the Citizens' Stamp Advisory 
Committee should recommend to the Postmaster General that a 
commemorative postage stamp be issued to promote public 
awareness of Down syndrome.
    S. Con. Res. 44--A concurrent resolution expressing the 
sense of Congress that a commemorative postage stamp should be 
issued honoring Rosa Louise McCauley Parks.
    H.R. 390--Preservation of Records of Servitude, 
Emancipation, and Post-Civil War Reconstruction Act--Requires 
the Archivist of the United States to: (1) establish, as part 
of the National Archives, an electronically searchable database 
of historic records of servitude, emancipation, and post-Civil 
War reconstruction contained within Federal agencies, including 
the Southern Claims Commission Records, Records of the 
Freedmen's Bank, Slave Impressments Records, Slave Payroll 
Records, and the Slave Manifest, for genealogical and 
historical research; and (2) preserve relevant records. 
Requires the National Historical Publications and Records 
Commission to provide grants to states, colleges and 
universities, and genealogical associations to preserve records 
and establish databases of local records of such information. 
Requires such databases to be maintained by entities designated 
by the National Historical Publications and Records Commission.
    H.R. 414--To designate the facility of the United States 
Postal Service located at 60 Calle McKinley, West in Mayaguez, 
Puerto Rico, as the ``Miguel Angel Garcia Mendez Post Office 
Building.''
    H.R. 437--To designate the facility of the United States 
Postal Service located at 500 West Eisenhower Street in Rio 
Grande City, Texas, as the ``Lino Perez, Jr. Post Office.''
    H.R. 1236--To amend title 39, United States Code, to extend 
the authority of the United States Postal Service to issue a 
semipostal to raise funds for breast cancer research.
    H.R. 1260--To designate the facility of the United States 
Postal Service located at 6301 Highway 58 in Harrison, 
Tennessee, as the ``Claude Ramsey Post Office.''
    H.R. 1335 --To designate the facility of the United States 
Postal Service located at 508 East Main Street in Seneca, South 
Carolina, as the ``S/Sgt Lewis G. Watkins Post Office 
Building.''
    H.R. 1425--To designate the facility of the United States 
Postal Service located at 4551 East 52nd Street in Odessa, 
Texas, as the ``Staff Sergeant Marvin ``Rex'' Young Post Office 
Building.''
    H.R. 1434--To designate the facility of the United States 
Postal Service located at 896 Pittsburgh Street in Springdale, 
Pennsylvania, as the ``Rachel Carson Post Office Building.''
    H.R. 1617--To designate the facility of the United States 
Postal Service located at 561 Kingsland Avenue in University 
City, Missouri, as the ``Harriett F. Woods Post Office 
Building.''
    H.R. 1722--To designate the facility of the United States 
Postal Service located at 601 Banyan Trail in Boca Raton, 
Florida, as the ``Leonard W. Herman Post Office.''
    H.R. 1734--To designate the facility of the United States 
Postal Service located at 630 Northeast Killingsworth Avenue in 
Portland, Oregon, as the ``Dr. Martin Luther King, Jr. Post 
Office.''
    H.R. 2025--To designate the facility of the United States 
Postal Service located at 11033 South State Street in Chicago, 
Illinois, as the ``Willye B. White Post Office Building.''
    H.R. 2077--To designate the facility of the United States 
Postal Service located at 20805 State Route 125 in Blue Creek, 
Ohio, as the ``George B. Lewis Post Office Building.''
    H.R. 2078--To designate the facility of the United States 
Postal Service located at 14536 State Route 136 in Cherry Fork, 
Ohio, as the ``Staff Sergeant Omer T. `O.T.' Hawkins Post 
Office.''
    H.R. 2089--To facilitate the restoration of the native 
ecosystem on Santa Rosa Island within Channel Islands National 
Park, and for other purposes.
    H.R. 2127--To designate the facility of the United States 
Postal Service located at 408 West 6th Street in Chelsea, 
Oklahoma, as the ``Clem Rogers McSpadden Post Office 
Building.''
    H.R. 2276--To designate the facility of the United States 
Postal Service located at 203 North Main Street in Vassar, 
Michigan, as the ``Corporal Christopher E. Esckelson Post 
Office Building.''
    H.R. 2563--To designate the facility of the United States 
Postal Service located at 309 East Linn Street in Marshalltown, 
Iowa, as the ``Major Scott Nisely Post Office.''
    H.R. 2765--To designate the facility of the United States 
Postal Service located at 44 North Main Street in Hughesville, 
Pennsylvania, as the ``Master Sergeant Sean Michael Thomas Post 
Office.''
    H.R. 3196--To designate the facility of the United States 
Postal Service located at 20 Sussex Street in Port Jervis, New 
York, as the ``E. Arthur Gray Post Office Building.''
    H.R. 3297--To designate the facility of the United States 
Postal Service located at 950 West Trenton Avenue in 
Morrisville, Pennsylvania, as the ``Nate DeTample Post Office 
Building.''
    H.R. 3308--To designate the facility of the United States 
Postal Service located at 216 East Main Street in Atwood, 
Indiana, as the ``Lance Corporal David K. Fribley Post 
Office.''
    H.R. 3325--To designate the facility of the United States 
Postal Service located at 235 Mountain Road in Suffield, 
Connecticut, as the ``Corporal Stephen R. Bixler Post Office.''
    H.R. 3382--To designate the facility of the United States 
Postal Service located at 200 North William Street in 
Goldsboro, North Carolina, as the ``Philip A. Baddour, Sr. Post 
Office.''
    H.R. 3468--To designate the facility of the United States 
Postal Service located at 1704 Weeksville Road in Elizabeth 
City, North Carolina, as the ``Dr. Clifford Bell Jones, Sr. 
Post Office.''
    H.R. 3518--To designate the facility of the United States 
Postal Service located at 1430 South Highway 29 in Cantonment, 
Florida, as the ``Charles H. Hendrix Post Office Building.''
    H.R. 3532--To designate the facility of the United States 
Postal Service located at 5815 McLeod Street in Lula, Georgia, 
as the ``Private Johnathon Millican Lula Post Office.''
    H.R. 3530--To designate the facility of the United States 
Postal Service located at 1400 Highway 41 North in Inverness, 
Florida, as the ``Chief Warrant Officer Aaron Weaver Post 
Office Building.''
    H.R. 3569--To designate the facility of the United States 
Postal Service located at 16731 Santa Ana Avenue in Fontana, 
California, as the ``Beatrice E. Watson Post Office Building.''
    H.R. 3572--To designate the facility of the United States 
Postal Service located at 4320 Blue Parkway in Kansas City, 
Missouri, as the ``Wallace S. Hartsfield Post Office 
Building.''
    H.R. 3721--To designate the facility of the United States 
Postal Service located at 1190 Lorena Road in Lorena, Texas, as 
the ``Marine Gunnery Sgt. John D. Fry Post Office Building.''
    H.R. 3730--United States-India Interparliamentary Exchange 
Act of 2007--Establishes the United States-India 
Interparliamentary Exchange Group.
    H.R. 3803--To designate the facility of the United States 
Postal Service located at 3100 Cashwell Drive in Goldsboro, 
North Carolina, as the ``John Henry Wooten, Sr. Post Office 
Building.''
    H.R. 3911--To designate the facility of the United States 
Postal Service located at 95 Church Street in Jessup, 
Pennsylvania, as the ``Lance Corporal Dennis James Veater Post 
Office.''
    H.R. 3936--To designate the facility of the United States 
Postal Service located at 116 Helen Highway in Cleveland, 
Georgia, as the ``Sgt. Jason Harkins Post Office Building.''
    H.R. 3974--To designate the facility of the United States 
Postal Service located at 797 Sam Bass Road in Round Rock, 
Texas, as the ``Marine Corps Corporal Steven P. Gill Post 
Office Building.''
    H.R. 3988--To designate the facility of the United States 
Postal Service located at 3701 Altamesa Boulevard in Fort 
Worth, Texas, as the ``Master Sergeant Kenneth N. Mack Post 
Office Building.''
    H.R. 4010--To designate the facility of the United States 
Postal Service located at 100 West Percy Street in Indianola, 
Mississippi, as the ``Minnie Cox Post Office Building.''
    H.R. 4166--To designate the facility of the United States 
Postal Service located at 701 East Copeland Drive in Lebanon, 
Missouri, as the ``Steve W. Allee Carrier Annex.''
    H.R. 4185--To designate the facility of the United States 
Postal Service located at 11151 Valley Boulevard in El Monte, 
California, as the ``Marisol Heredia Post Office Building.''
    H.R. 4203--To designate the facility of the United States 
Postal Service located at 3035 Stone Mountain Street in 
Lithonia, Georgia, as the ``Specialist Jamaal RaShard Addison 
Post Office Building.''
    H.R. 4210--To designate the facility of the United States 
Postal Service located at 401 Washington Avenue in Weldon, 
North Carolina, as the ``Dock M. Brown Post Office Building.''
    H.R. 4211--To designate the facility of the United States 
Postal Service located at 725 Roanoke Avenue in Roanoke Rapids, 
North Carolina, as the ``Judge Richard B. Allsbrook Post 
Office.''
    H.R. 4240--To designate the facility of the United States 
Postal Service located at 10799 West Alameda Avenue in 
Lakewood, Colorado, as the ``Felix Sparks Post Office 
Building.''
    H.R. 4342--To designate the facility of the United States 
Postal Service located at 824 Manatee Avenue West in Bradenton, 
Florida, as the ``Dan Miller Post Office Building.''
    H.R. 4454--To designate the facility of the United States 
Postal Service located at 3050 Hunsinger Lane in Louisville, 
Kentucky, as the ``Iraq and Afghanistan Fallen Military Heroes 
of Louisville Memorial Post Office Buildin,'' in honor of the 
servicemen and women from Louisville, Kentucky, who died in 
service during Operation Enduring Freedom and Operation Iraqi 
Freedom.
    H.R. 4774--To designate the facility of the United States 
Postal Service located at 10250 John Saunders Road in San 
Antonio, Texas, as the ``Cyndi Taylor Krier Post Office 
Building.''
    H.R. 5135--To designate the facility of the United States 
Postal Service located at 201 West Greenway Street in Derby, 
Kansas, as the ``Sergeant Jamie O. Maugans Post Office 
Building.''
    H.R. 5168--To designate the facility of the United States 
Postal Service located at 19101 Cortez Boulevard in 
Brooksville, Florida, as the ``Cody Grater Post Office 
Building.''
    H.R. 5220--To designate the facility of the United States 
Postal Service located at 3800 SW. 185th Avenue in Beaverton, 
Oregon, as the ``Major Arthur Chin Post Office Building.''
    H.R. 5395--To designate the facility of the United States 
Postal Service located at 11001 Dunklin Drive in St. Louis, 
Missouri, as the ``William `Bill' Clay Post Office Building.''
    H.R. 5400--To designate the facility of the United States 
Postal Service located at 160 East Washington Street in Chagrin 
Falls, Ohio, as the ``Sgt. Michael M. Kashkoush Post Office 
Building.''
    H.R. 5477--To designate the facility of the United States 
Postal Service located at 120 South Del Mar Avenue in San 
Gabriel, California, as the ``Chi Mui Post Office Building.''
    H.R. 5479--To designate the facility of the United States 
Postal Service located at 117 North Kidd Street in Ionia, 
Michigan, as the ``Alonzo Woodruff Post Office Building.''
    H.R. 5483--To designate the facility of the United States 
Postal Service located at 10449 White Granite Drive in Oakton, 
Virginia, as the ``Private First Class David H. Sharrett II 
Post Office Building.''
    H.R. 5506--To designate the facility of the United States 
Postal Service located at 369 Martin Luther King Jr. Drive in 
Jersey City, New Jersey, as the ``Bishop Ralph E. Brower Post 
Office Building.''
    H.R. 5517--To designate the facility of the United States 
Postal Service located at 7231 FM 1960 in Humble, Texas, as the 
``Texas Military Veterans Post Office.''
    H.R. 5528--To designate the facility of the United States 
Postal Service located at 120 Commercial Street in Brockton, 
Massachusetts, as the ``Rocky Marciano Post Office Building.''
    H.R. 5631--To designate the facility of the United States 
Postal Service located at 1155 Seminole Trail in 
Charlottesville, Virginia, as the ``Corporal Bradley T. Arms 
Post Office Building.''
    H.R. 5975--To designate the facility of the United States 
Postal Service located at 101 West Main Street in Waterville, 
New York, as the ``Cpl. John P. Sigsbee Post Office.''
    H.R. 6061--To designate the facility of the United States 
Postal Service located at 219 East Main Street in West 
Frankfort, Illinois, as the ``Kenneth James Gray Post Office 
Building.''
    H.R. 6085--To designate the facility of the United States 
Postal Service located at 42222 Rancho Las Palmas Drive in 
Rancho Mirage, California, as the ``Gerald R. Ford Post Office 
Building.''
    H.R. 6092--To designate the facility of the United States 
Postal Service located at 101 Tallapoosa Street in Bremen, 
Georgia, as the ``Sergeant Paul Saylor Post Office Building.''
    H.R. 6208--To designate the facility of the United States 
Postal Service located at 1100 Town and Country Commons in 
Chesterfield, Missouri, as the ``Lance Corporal Matthew P. 
Pathenos Post Office Building.''
    H.R. 6226--To designate the facility of the United States 
Postal Service located at 300 East 3rd Street in Jamestown, New 
York, as the ``Stan Lundine Post Office Building.''
    H.R. 6437--To designate the facility of the United States 
Postal Service located at 200 North Texas Avenue in Odessa, 
Texas, as the ``Corporal Alfred Mac Wilson Post Office.''
    H. Con. Res. 307--Expressing the sense of Congress that 
Members' Congressional papers should be properly maintained and 
encouraging Members to take all necessary measures to manage 
and preserve these papers.

                              GAO REPORTS

    GAO-07-274, Federal Capital: Three Entities' Implementation 
of Capital Planning Principles Is Mixed, (02/23/2007)
    GAO-07-361, 2010 Census: Census Bureau Should Refine 
Recruiting and Hiring Efforts and Enhance Training of Temporary 
Field Staff, (04/27/2007)
    GAO-07-736, 2010 Census: Census Bureau Has Improved the 
Local Update of Census Addresses Program, but Challenges 
Remain, (06/14/2007)
    GAO-07-717, U.S. Postal Service: Mail Processing 
Realignment Efforts Under Way Need Better Integration and 
Explanation, (06/21/2007)
    GAO-07-536, Homeland Security: Departmentwide Integrated 
Financial Management Systems Remain a Challenge, (06/21/2007)
    GAO-07-769, Small Business Administration: Additional 
Measures Needed to Assess 7(a) Loan Program's Performance, (07/
13/2007)
    GAO-07-913, Department of Homeland Security: Challenges in 
Implementing the Improper Payments Information Act and 
Recovering Improper Payments, (09/19/2007)
    GAO-08-79, Information Technology: Census Bureau Needs to 
Improve Its Risk Management of Decennial Systems, (10/05/2007)
    GAO-08-45, U.S. Postal Service, Agencies Distribute Fund-
raising Stamp Proceeds and Improve Reporting, (10/30/2007)
    GAO-08-77, Improper Payments: Weakness in USAID's and 
NASA's Implementation of the Improper Payments Information Act 
and Recovery Auditing, (11/09/2007)
    GAO-08-41, U.S. Postal Service Facilities: Improvements in 
Data Would Strengthen Maintenance and Alignment of Access to 
Retail Services, (12/10/2007)
    GAO-O8-16, DOD Travel Improper Payments: Fiscal Year 2006 
Reporting Was Incomplete and Planned Improvement Efforts Face 
Challenges, (12/14/2007)
    GAO-08-197, Federal Real Property: Strategy Needed to 
Address Agencies' Long-standing Reliance on Costly Leasing, 
(01/24/2008)
    GAO-08-349, Federal Real Property: Corps of Engineers Needs 
to Improve Reliability of Its Real Property Disposal Data, (05/
09/2008)
    GAO-08-599, U.S. Postal Service: Mail-Related Recycling 
Initiatives and Possible Opportunities for Improvement, (06/03/
2008)
    GAO-08-787, U.S. Postal Service: Data Needed to Assess the 
Effectiveness of Outsourcing, (07/24/2008)
    GAO-08-925, Information Technology: Agencies Need to 
establish Comprehensive Policies to Address Changes to 
Projects' Cost, Schedule, and Performance Goals, (07/31/2008)
    GAO-08-432, Grants Management: Attention Needed to Address 
Undisbursed Balances in Expired Grant Accounts, (08/29/2008)
    GAO-08-996, U.S. Postal Service: New Delivery Performance 
Measures Could Enhance Managers' Pay for Performance Program, 
(09/10/2008)
                SUBCOMMITTEE ON OVERSIGHT OF GOVERNMENT

                   MANAGEMENT, THE FEDERAL WORKFORCE,

                      AND THE DISTRICT OF COLUMBIA

                       Chairman: Daniel K. Akaka

              Ranking Minority Member: George V. Voinovich

                              I. Hearings

    The Subcommittee on Oversight of Government Management, the 
Federal Workforce, and the District of Columbia held the 
following 00 hearings during the 110th Congress:
Lost in Translation: A Review of the Federal Government's Efforts to 
        Develop a Foreign Language Strategy (January 25, 2007)
    The hearing reviewed the Federal Government's efforts to 
improve the nation's language proficiency. According to the 
2000 Census, only 9.3 percent of Americans speak both their 
native language and another language fluently, compared with 56 
percent of citizens in the European Union. The inability of 
Federal law enforcement officers, intelligence officers, 
scientists, and military personnel to interpret information 
from foreign sources, as well as interact with foreign 
nationals, presents a threat to their mission and to the well 
being of our nation. It also risks the nation's economic 
security as U.S. companies lose an estimated $2 billion a year 
due to inadequate cultural understanding.
    In 2006, the Administration launched the National Security 
Language Initiative (NSLI) to coordinate efforts among the 
Intelligence Directorate and the Departments of Defense, 
Education, and State to address our national security language 
needs. However, hearing found shortfalls in NSLI, namely that 
the program was not sustainable, it lacks input from all 
stakeholders, and fails to address both national and economic 
security needs.
    Witnesses: Panel I: Mr. Michael Dominguez, Principal Deputy 
Under Secretary of Defense for Personnel Readiness, U.S. 
Department of Defense; Ms. Holly Kuzmich, Deputy Chief of Staff 
to Secretary Spellings, U.S. Department of Education; Mr. 
Everette Jordan, Director, National Virtual Translation Center, 
on behalf of the Federal Bureau of Investigations; Panel II: 
Ms. Rita Oleksak, President, American Council on the Teaching 
of Foreign Languages; Mr. Michael Petro, Vice President and 
Director of Business and Government Policy, The Committee for 
Economic Development; and Dr. Diane Birckbichler, Director of 
the Foreign Language Center, Ohio State University.
Private Health Records: Privacy Implications of the Federal 
        Government's Health Information Technology Initiative (February 
        1, 2007)
    The hearing is intended to review the Federal Government's 
efforts to include privacy protections in the development of a 
nationwide interoperable health information technology (IT) 
strategy. Studies show that the use of health IT can save 
money, reduce medical errors, and improve the delivery of 
health services. As a result, in 2004, President Bush called 
for the widespread adoption of interoperable electronic health 
records within 10 years and issued an executive order that 
established the position of the National Coordinator for Health 
Information Technology. The National Coordinator is charged 
with developing and implementing a strategic plan to guide the 
nationwide implementation of interoperable health IT in both 
the public and private sectors.
    Two months later, the Department of Health and Human 
Services (HHS) released a framework for strategic action to 
promote health IT, which calls on all levels of government to 
work with the private sector to stimulate change in the health 
care industry. In turn, the Office of Personnel Management 
(OPM) began to use its leverage as the administrator of the 
Federal Employees Health Benefit Program (FEHBP), which covers 
approximately eight million Federal employees, retirees, and 
their dependents, to expand the use of health IT. OPM, through 
its annual Call Letter to carriers, has been encouraging 
carriers to increase the use of electronic health records, 
electronic prescribing, and other health IT-related provisions.
    In 2005, a Harris Interactive survey showed that 70 percent 
of Americans were concerned that an electronic medical records 
system would lead to sensitive medical records being exposed 
due to weak electronic security. Government Accountability 
Office (GAO) was asked to review the efforts of HHS and the 
National Coordinator to protect personal health information. 
GAO's report, which was released at the hearing, found that 
while HHS and the National Coordinator have taken steps to 
study the protection of personal health information, an overall 
strategy is needed to identify milestones for integrating 
privacy into the health IT framework; ensure privacy is fully 
addressed; and address key challenges associated with the 
nationwide exchange of information.
    The hearing highlighted the need for HHS to integrate 
privacy into the nationwide health IT infrastructure and the 
loopholes in the Health Insurance Portability and 
Accountability Act that need to be addressed in order to move 
forward with health IT and protect the private health 
information of Federal employees and all Americans.
    Witnesses: Panel I: Dr. Rob Kolodner, Interim National 
Coordinator for Health Information Technology, U.S. Department 
of Health and Human Services; Mr. Daniel Green, Deputy 
Assistant Director, Center for Employee and Family Support 
Policy, Strategic Human Resources Policy Division, Office of 
Personnel Management; Panel II: Mr. David Powner, Director 
Information Technology Management Issues, U.S. Government 
Accountability Office; Ms. Linda Koontz, Director Information 
Management Issues, U.S. Government Accountability Office; Mr. 
Mark A. Rothstein, Herbert F. Boehl, Chair of Law and Medicine 
and the Director of the Institute for Bioethics, Health Policy 
and Law, University of Louisville School of Medicine; and Dr. 
Carol Diamond, Managing Director, Markle Foundation.
A Review of the Transportation Security Administration Personnel System 
        (March 5, 2007)
    The purpose of the hearing is to review the personnel 
management system for Transportation Security Administration 
(TSA) screeners and non-screeners. To secure the aviation 
industry after the terrorist attacks on September 11, 2001, 
Congress passed the Aviation and Transportation Security Act 
(ATSA), which, among other things, created TSA and federalized 
the aviation screening workforce. The Act required TSA to 
follow the personnel system for the Federal Aviation 
Administration (FAA), but the agency was allowed to employ, 
appoint, discipline, terminate, and fix the compensation, 
terms, and conditions of employment for Transportation Security 
Officers (TSOs) without regard to other laws. A year later, 
Congress passed the Homeland Security Act to merge 22 agencies, 
including TSA, into a Department of Homeland Security (DHS) in 
an effort to improve the Federal Government's ability to 
prevent and respond to terrorist attacks. The Homeland Security 
Act also provided broad personnel flexibility to DHS in order 
to quickly respond to threats and ensure that the Secretary had 
the flexibility to move resources as needed. However, the Act 
provided that DHS employee would have an independent and fair 
appeals process, full whistleblower rights, and collective 
bargaining. TSA was not included in this personnel system and 
as a result TSOs were left without many of the statutory 
protections for DHS employees.
    Since 2001, TSA has faced high attrition rates, high 
numbers of workers compensation claims, and low employee 
morale. The hearing reviewed steps that TSA had taken to 
address these workforce issues, but also examined the claim by 
employee representatives that giving TSOs the same rights and 
protections as other employees at the FAA or DHS would solve 
the problems.
    Witnesses: Panel I: Hon. Kip Hawley, Assistant Secretary of 
Homeland Security, Transportation Security Administration, 
Department of Homeland Security; and Panel II: Mr. John Gage, 
National President, American Federation of Government Employees
A Review of U.S. International Efforts to Secure Radiological Materials 
        (March 13, 2007)
    The hearing reviewed efforts by the U.S. Department of 
Energy (DOE) and U.S. Nuclear Regulatory Commission (NRC) to 
secure radiological materials through the IAEA and other 
multilateral organizations. The hearing also reviewed findings 
of the U.S. Government Accountability Office in its report, 
DOE's International Radiological Threat Reduction Program Needs 
to Focus Future Efforts on Securing the Highest Priority 
Radiological Sources.''
    Witnesses: Panel I: Mr. Richard Stratford, Director, Office 
of Nuclear Energy, Safety, and Security, U.S. Department of 
State, Mr. Andrew Bieniawski, Associate Deputy Administrator, 
National Nuclear Security Administration, U.S. Department of 
Energy, Ms. Janice Dunn Lee, Director, Office of International 
Programs, U.S. Nuclear Regulatory Commission, Mr. Eugene 
Aloise, Director, Natural Resources and Environment, U.S. 
Government Accountability Office, Panel II: Dr. Brian Dodd, 
President, Health Physics Society, Dr. Charles Ferguson, Fellow 
for Science and Technology, Council on Foreign Relations, and 
Mr. Joel Lubenau, Certified Health Physicist.
Safeguarding the Merit Systems Principles: A Review of the Merit 
        Systems Protection Board and the Office of Special Counsel 
        (March 22, 2007)
    The purpose of the hearing was to review how the Merit 
Systems Protection Board (MSPB) and the Office of Special 
Counsel (OSC) were meeting their statutory mission and discuss 
each agency's reauthorization request. Both MSPB and OSC were 
created by the Civil Service Reform Act of 1978 to safeguard 
the merit system principles and to help ensure that Federal 
employees are free from discriminatory, arbitrary, and 
retaliatory actions, especially against those who step forward 
to disclose government waste, fraud, and abuse. These 
protections are essential so that employees can perform their 
duties in the best interests of the American public. The 
enforcement of the merit system principles by MSPB and OSC 
helps ensure that the Federal Government is an employer of 
choice.
    Over the past few years, both agencies have been criticized 
for failing to live up to their mission. For example, the most 
recent Federal employee satisfaction survey conducted by OSC 
shows that less than five percent of the respondents reported 
any degree of satisfaction with the results obtained by OSC 
while more than 92 percent were dissatisfied. Both agencies 
have also been criticized for their activities with respect to 
the interpretation of the Whistleblower Protection Act and 
other prohibited personnel practices, including protections 
against sexual orientation discrimination. The hearing reviewed 
MSPB's and OSC's interpretation and application of these laws, 
Federal employee views of each agency, and the legislative 
proposals submitted by each agency to be included in their 
reauthorization bill.
    Witnesses: Hon. Neil McPhie, Chairman, U.S. Merit Systems 
Protection Board, and Hon. Scott Bloch, Special Counsel, U.S. 
Office of Special Counsel.
Understanding the Realities of REAL ID: A Review of Efforts To Secure 
        Drivers' Licenses and Identification Cards (March 26, 2007)
    The Subcommittee held a hearing to review the proposed 
regulations released by the Department of Homeland Security 
(DHS) on March 1, 2007, implementing the REAL ID Act of 2005. 
REAL ID was enacted in response to the terrorist attacks on 
September 11, 2001, and the recommendation of the 9-11 
Commission for the Federal Government set standards for issuing 
sources of identification, such as drivers' licenses. In 
December 2004, Congress passed the Intelligence Reform and 
Terrorism Prevention Act (IRTPA) to establish a negotiated 
rulemaking process among the Federal Government, State, and 
local governments, privacy groups, and other stakeholders to 
develop standards for drivers' licenses and identification 
cards. Shortly thereafter, Congress passed the REAL ID Act, 
without any congressional hearings, which replaced the 
negotiated rulemaking process of the IRTPA.
    Concerns about REAL ID have been raised by state and local 
government officials as it is an unfunded mandate estimated to 
cost nearly $17.2 billion and by privacy advocates who believe 
the Act poses a real threat to privacy and civil liberties. As 
a result, over half of the nation's state legislatures, 28, 
have introduced or passed legislation expressing concern or 
calling for the repeal of REAL ID. Two states, Maine and Idaho, 
have passed legislation to opt out of complying with REAL ID. 
The hearing reviewed the proposed regulations to implement the 
program and the need for Federal funding, flexibility to states 
in implementing the Act, and the need for improvements to 
protect privacy and civil liberties.
    Witnesses: Panel I: Hon. Richard C. Barth, Ph.D., Assistant 
Secretary for the Office of Policy Development, Department of 
Homeland Security; Panel II: Hon. Leticia Van de Putte, Texas 
State Senator and President, National Conference of State 
Legislatures; Hon. Mufi Hannemann, Mayor, City and County of 
Honolulu Hawaii (accompanied by Mr. Dennis Kamimura, Licensing 
Administrator, City and County of Honolulu); Mr. David Quam, 
Director of Federal Relations, National Governors Association; 
Mr. Timothy Sparapani, Legislative Counsel for Privacy Rights, 
American Civil Liberties Union; and Mr. Jim Harper, Director of 
Information Policy Studies, The Cato Institute
Federal Government's Role in Empowering Americans to Make Informed 
        Financial Decisions (April 30, 2007)
    This oversight hearing examined the status and 
effectiveness of Federal financial literacy programs, including 
the Financial Literacy and Education Commission, of which 
Senator Akaka has been a strong supporter.
    Government and private studies, statistics, and national 
surveys indicate that far too many Americans of all ages lack 
the knowledge to make informed decisions regarding their 
personal finances. Lack of understanding and uncertainty about 
financial matters and decision-making leaves individuals 
vulnerable to negative consequences, which include excessive 
credit card and household debt, payment of excessive fees, and 
an inability to save for retirement, a first home, education, 
or other long-term goals. Financial decision-making has become 
so complicated that most individuals would benefit from further 
financial education.
    The hearing highlighted the need for continued investment 
in expanding financial literacy. It heard that Federal efforts 
to date have been positive though more Federal investment could 
improve consumer financial literacy. The hearing also 
highlighted the need to invest more in early financial literacy 
education in elementary and secondary schools in order to 
create a foundation for young Americans to make informed 
financial decisions.
    Witnesses: Panel I: Sheila C. Bair, Chairman, Federal 
Deposit Insurance Corporation; Panel II: Morgan Brown, 
Assistant Deputy Secretary for Innovation and Improvement, 
Department of Education; Dan Iannicola, Jr., Deputy Assistant 
Secretary for the Office of Financial Education, Department of 
the Treasury; Robert F. Danbeck, Associate Director of Human 
Resources Products and Services, Office of Personnel 
Management; Yvonne D. Jones, Director of Financial Markets and 
Community Investment, Government Accountability Office; Stephen 
Brobeck, Executive Director, Consumer Federation of America; 
Robert F. Duvall, President and CEO, National Council on 
Economic Education.
Managing the Department of Homeland Security: A Status Report on Reform 
        Efforts by the Under Secretary for Management (May 10, 2007)
    The purpose of the hearing was to review the Department of 
Homeland Security's (DHS) management challenges, the status of 
the development of a comprehensive management strategy for the 
Department, and needed improvements.
    The March 2003 formation of DHS, which is the third-largest 
cabinet agency, was the largest restructuring of the Federal 
Government since the creation of the Department of Defense in 
1947. DHS continues to face significant management and 
organizational challenges. In particular, the hearing 
highlighted the Department's human capital challenges, 
including improving employee recruitment, retention, and 
morale; the Department's inadequate acquisitions oversight, 
particularly with large-scale projects such as the Coast 
Guard's Deepwater project and Customs and Border Protection's 
Secure Border Initiative; and DHS's difficulty creating 
integrated and effective financial management and information 
technology systems.
    Witnesses: Paul Schneider, Under Secretary for Management, 
DHS, and David Walker, Comptroller General, Government 
Accountability Office (GAO).
Evaluating the Progress and Identifying Obstacles in Improving the 
        Federal Government's Security Clearance Process (May 17, 2007)
    This hearing assessed progress in addressing the 
longstanding backlog of security clearance investigations and 
the overall timeliness of the clearance process. The hearing 
examined obstacles to reducing backlogs and completing 
clearances in a timely manner, as well as roadblocks to 
improving the security clearance process, including but not 
limited to budgetary, human capital, and technology issues.
    The number of clearance requests from the Department of 
Defense (DOD) skyrocketed after the terrorist attacks of 
September 11, 2001. In 2005, the Government Accountability 
Office (GAO) placed the Department of Defense Security 
Clearance process on the GAO High Risk List due to a mounting 
backlog of clearance requests as well as DOD's inability to 
manage the backlog. In February 2005, DOD transferred its 
investigative function to the Office of Personnel Management's 
Federal Investigative Services Division (OPM/FISD). However, 
many security clearances still take in excess of one year to 
complete.
    The hearing found that the players in the clearance process 
were struggling to meet timeliness benchmarks established under 
the Intelligence Reform and Terrorism Prevention Act (IRTPA). 
Some of the challenges that OPM appears to face are an outdated 
clearance process that relies heavily on paper, and inadequate 
technology that slows the process considerably.
    Witnesses: Panel I: Hon. Clay Johnson, Deputy Director for 
Management, Office of Management and Budge; Kathy Dillaman, 
Associate Director, Federal Investigative Services Division, 
Office of Personnel Management; Robert Andrews, Deputy Under 
Secretary of Defense for Counterintelligence and Security, 
accompanied by Kathleen Watson, Director, Defense Security 
Service; Derek Stewart, Director of Military and Civilian 
Personnel Issues, U.S. Government Accountability Office; Panel 
II: Tim Sample, President, Intelligence and National Security 
Alliance; Doug Wagoner, Chief Operating Officer, Sentrillion, 
representing the Information Technology Association of America.
Up, Up, and Away! Growth Trends in Health Care Premiums for Active and 
        Retired Federal Employees (May 18, 2007)
    The hearing assessed the impact of rising health care 
premiums on Federal workers and retirees, the use of the Office 
of Personnel Management's (OPM) negotiating authority on health 
care premiums, and ways health care premiums could be reduced. 
The Government Accountability Office released a report 
``Federal Employee Health Benefits Program: Premium Growth has 
Slowed, and Varies among Participating Plans'' in December 
2006. The report and the hearing criticized OPM for deciding 
not to apply for the Medicare Part D employer subsidy, for 
which it is eligible. Furthermore, OPM denied the Postal 
Service the opportunity to apply for the subsidy as an 
independent government agency operating with out any 
appropriated funds. The answers provided to the Chairman and 
Ranking Member did not satisfy the criticisms and the witness 
from OPM admitted that premium rates would have dropped should 
OPM have applied for the subsidy.
    Witnesses: Panel I: Nancy Kichak, Associate Director and 
Chief Actuary, Strategic Human Resources Policy Division, U.S. 
Office of Personnel Management; John Dicken, Director, Health 
Care Team, U.S. Government Accountability Office; Panel II: 
Stephen Gammarino, Senior Vice President, national Programs, 
Blue Cross Blue Shield Association; Alan Lopatin, Legislative 
Counsel, National Active and Retired Federal Employees 
Association
GAO Personnel Reform: Does it Meet Expectations? (May 22, 2007)
    The Subcommittee held a joint hearing with the House 
Subcommittee on the Federal Workforce, Postal Service, and the 
District of Columbia to examine the personnel system for the 
Government Accountability Office (GAO) and the implementation 
of the GAO Human Capital Reform Act of 2004, which allowed GAO 
to decouple employee pay increases from the General Schedule 
and implement a pay for performance system.
    Over the last 15 months, Congress has conducted oversight, 
and more recently, investigated the implementation of GAO's new 
personnel system to determine if it meets the aforementioned 
criteria and whether or not it should be replicated government-
wide. The hearing reviewed information discovered by the 
investigation and concerns regarding the fact that GAO 
employees who were meeting and exceeding expectations in 2006 
and 2007 did not receive the annual across the board increase 
that all other Federal employees received; the lack of 
transparency in the new GAO personnel system and employee 
involvement in the development of the system; and the lack of 
due process for analysts in Band II who were not placed in Band 
IIB.
    Witnesses: Panel I: Hon. David Walker, Comptroller General, 
Government Accountability Office; Ms. Anne Wagner, General 
Counsel, Personnel Appeals Board, Government Accountability 
Office; Panel II: Mr. Ronald Stroman, Managing Director, Office 
of Opportunity and Inclusiveness, Government Accountability 
Office; Mr. Curtis Copeland, Specialist in American National 
Government, Congressional Research Service; Mr. Jon 
Shimabukuro, Attorney, American Law Division, Congressional 
Research Service; Ms. Jane K. Weizmann, Senior Consultant, 
Watson Wyatt Worldwide; Dr. Charles H. Fay, Professor of Human 
Resource Management, Rutgers University School of Management 
and Labor Relations; Mr. Max Stier, President and CEO, 
Partnership for Public Service; Mr. Greg Junemann, 
International Federation of Technical and Professional 
Engineers; Dr. Barry J. Seltser, Former Director, Center for 
Design, Government Accountability Office; and Ms. Janice M. 
Reece, Former General Counsel, Personnel Appeals Board, 
Government Accountability Office
DHS's Acquisition Organization: Who is Really in Charge? (June 7, 2007)
    This hearing examined the Department of Homeland Security's 
(DHS) acquisition organization and looked at the current state 
of the Department's acquisition management. In particular, this 
focused on the relationship between the Office of the Chief 
Procurement Officer (CPO), the Chief Acquisition Officer (CAO), 
and individual acquisition organizations within DHS, as well as 
lessons learned from problematic acquisitions, including 
Deepwater.
    The formation of the Department of Homeland Security was 
the single largest restructuring of the Federal Government 
since the creation of the Department of Defense in 1947, 
bringing together 22 Federal agencies and offices. In fiscal 
year 2006, DHS spent over $15 billion on contracts for goods 
and services, making it third in line behind the Departments of 
Defense and Energy in contract spending. Several of the 
agencies that were brought together under DHS already had their 
own acquisition organizations which stayed largely intact. All 
but two of these organizations--the U.S. Coast Guard and the 
Secret Service--were brought under partial authority of DHS's 
Chief Acquisition Officer.
    The hearing found that despite the complex acquisition 
organization at DHS, there was good cooperation between 
component agencies and the Office of Procurement Operations, 
headed by the CPO. The hearing heard testimony from the Coast 
Guard, which credited increased focus on acquisitions, 
especially in the Deepwater contract, in improving acquisition 
outcomes. The Subcommittee, however, remained concerned that 
better oversight may be needed in other large contracts, 
especially SBInet. Overall, the hearing found that DHS suffers 
from the same acquisition management challenges that face the 
rest of the Federal Government, especially in the acquisition 
workforce.
    Witnesses: Paul Schneider, Under Secretary for Management, 
Department of Homeland Security; John P. Hutton, Director, 
Acquisition and Sourcing Management, Government Accountability 
Office; Rear Admiral John P. Currier, Assistant Commandant for 
Acquisition, United States Coast Guard.
Assessing Telework Policies and Initiatives in the Federal Government 
        (June 12, 2007)
    The hearing examined the current government-wide telework 
policies and ways that agencies can improve participation and 
utilization of this program. The Subcommittee also solicited 
input on improving the Telework Enhancement Act of 2007 (S. 
1000), introduced by Senators Ted Stevens and Mary Landrieu and 
referred to your Subcommittee, to expand telework eligibility 
and establish a position at each agency for the development and 
implementation of telework programs. Telework policies have 
been slowed due to resistance from agency leaders and managers. 
However, witnesses cited the need for robust telework policies 
to improve agency recruitment and retention of a talented 
workforce, reduce overall traffic congestion and commute times, 
reduce environmental pollutants, and save agencies money on 
overhead costs.
    Witnesses: Panel I: Daniel Green, Deputy Associate 
Director, Center for Employee and Family Support Policy, Office 
of Personnel Management; Hon. Jon Dudas, Under Secretary of 
Commerce for Intellectual Property and Director, U.S. Patent 
and Trademark Office; Stan Kaczmarczyk, Principal Deputy 
Associate Administrator for Government-Wide Policy, General 
Services Administration; Bernice Steinhardt, Director of 
Strategic Issues, Government Accountability Office; Panel II: 
Tom Davison, Trustee of the Board, Federal Managers 
Association; Stephen O'Keeffe, Executive Officer, Telework 
Exchange; David Isaacs, Government Affairs Director, Hewlett-
Packard, Inc.
From Warehouse to Warfighter: An Update On Supply Chain Management at 
        DOD (July 10, 2007)
    The hearing focused on the progress made by the Department 
of Defense (DOD) in improving supply chain management since the 
Subcommittee's last hearing on July 25, 2006. In particular, 
the hearing examined at progress in implementing the Supply 
Chain Management Improvement Plan, and the status of 
initiatives in that plan, with a focus on Joint Theater 
Logistics.
    The goal of supply chain management is to deliver the 
``right items to the right place at the right time'' to the 
warfighter. The Department of Defense (DOD) relies on a number 
of individual processes and activities, which collectively make 
up supply chain management to purchase, produce, and deliver 
products and services to operational military forces during 
wartime or contingency operations. Since the 1990's, the 
Government Accountability Office (GAO) has identified DOD's 
supply chain management as a high-risk area because of high 
inventory levels and a supply system that is not responsive 
enough to the needs of the warfighter.
    The hearing found that much progress has been made in 
improving supply chain management, including the implementation 
of Joint Theater Logistics, more needs to be done. The hearing 
highlighted the need for increased coordination between the 
many players in the supply chain, as well as the need to 
develop specific objectives and plans to give the Department 
direction in moving forward with future supply chain 
initiatives.
    Witnesses: Hon. Jack Bell, Deputy Under Secretary for 
Logistics, Department of Defense; General Norton Schwartz, U.S. 
Air Force, Commander, U.S. Transportation Command; Lieutenant 
General Dail, U.S. Army, Director, Defense Logistics Agency; 
Bill Solis, Director, Defense Capabilities and Management, 
Government Accountability Office.
Great Expectations: Assessments, Assurances, and Accountability in the 
        Mayor's Proposal to Reform the District of Columbia's Public 
        School System (July 19, 2007)
    The hearing examined D.C. Mayor Adrian Fenty's recently 
approved proposal to assume control of the D.C. Public Schools 
(DCPS) and review his implementation plan, establish 
expectations, and ensure accountability in this effort. While 
they had not fully developed plans for reforming the schools, 
the Mayor's leadership team discussed ways in which they 
planned to bring about changes to the physical structures 
within the school system, the quality of the teachers, and the 
overall administration of the system. The Chairman was pleased 
with the ongoing efforts of the Mayor and his leadership team. 
He and the Ranking Member requested that the Government 
Accountability Office conduct a short-term and long-term study 
of the reform efforts in the system, and they plan to hold 
future oversight hearings.
    Witnesses: Hon. Adrian Fenty, Mayor of the District of 
Columbia; Ms. Michelle Rhee, Chancellor of Education for the 
District of Columbia; Mr. Robert C. Bobb, President of the 
State Board of Education; Mr. Victor Reinoso, Acting Deputy 
Mayor for Education for the District of Columbia; Ms. Deborah A 
Gist, State Superintendent of Education; and Mr. Allen Y. Lew, 
Executive Director of the Office of Public Education Facilities 
Modernization for D.C. Public Schools.
Building a Stronger Diplomatic Presence (August 1, 2007)
    The first part of this hearing examined what the State 
Department has done to address staffing needs and its ability 
to direct resources to areas of the world that present the 
greatest diplomatic challenges. It will also examine steps 
taken by the Department to develop a staff with the linguistic, 
cultural, and management skills necessary to meet these 
challenges. The hearing also heard the views and 
recommendations of knowledgeable representatives from the 
diplomatic and audit communities on how the U.S. can promote 
greater American participation in international organizations.
    Witnesses: Panel I: Ambassador Heather Hodges, Acting 
Director General, Department of State, Mr. James Warlick, 
Principal Deputy Assistant Secretary, Bureau of International 
Organizations, Department of State; Panel II: Mr. Jess T. Ford, 
Director, Foreign Affairs Management, International Affairs and 
Trade, U.S. Government Accountability Office, Mr. Thomas 
Melito, Director, Multilateral Organizations and International 
Finance, International Affairs and Trade, U.S. Government 
Accountability Office; Panel III: Mr. John Naland, President, 
American Foreign Service Association, Ambassador Thomas Boyatt, 
Ambassador, Retired, President and CEO, Foreign Affairs Council 
and Ms. Deborah Derrick, Executive Director, Better World 
Campaign, United Nations Foundation.
The Role of Federal Executive Boards in Pandemic Preparedness 
        (September 28, 2007)
    The hearing examined a recent Government Accountability 
Report (GAO) report entitled ``The Federal Workforce: 
Additional Steps Needed to Take Advantage of Federal Executive 
Boards' Ability to Contribute to Emergency Operations'' (GAO-
07-515). The Office of Personnel Management (OPM) and the 
Federal Emergency Management Agency testified that they have 
been working together since 2004 to develop a strategic plan to 
use Federal Executive Boards in the overall response effort to 
a public health, natural, or man-made disaster, and are close 
to finishing the strategic plan. The Federal Executive Board 
(FEBs) witnesses from around the country testified that 
inconsistencies in resources and organizational structures were 
weaknesses that hindered their efforts to keep the Federal 
communities prepared and informed in the event of an emergency.
    The Chairman was very interested in seeing a final copy of 
OPM's strategic plan for FEBs. He and the Ranking Member also 
asked the GAO to conduct a report on the preparedness of 
Federal agencies in the event of a pandemic.
    Witnesses: Panel I: Ms. Bernice Steinhardt, Director 
Strategic Issues, Government Accountability Office; Mr. Kevin 
Mahoney, Associate Director, Human Capital Leadership and Merit 
System Accountability Division, Office of Personnel Management; 
Mr. Art Cleaves, Regional Administrator, Region 1, Federal 
Emergency Management Agency; Panel II: Mr. Ray Morris, 
Executive Director, Federal Executive Board of Minnesota; Ms. 
Kimberly Ainsworth, Executive Director, Greater Boston Federal 
Executive Board; and Mr. Michael Goin, Executive Director, 
Cleveland Federal Executive Board.
Preparing the National Capital Region for a Pandemic (October 2, 2007)
    The hearing reviewed the efforts being made by the District 
of Columbia, Maryland, Virginia, the OGM Subcommittee, the 
local jurisdictions, and the Federal Government to prepare the 
National Capital Region for a pandemic influenza outbreak. This 
was the third OGM Subcommittee hearing on strategic planning 
and preparedness in the National Capital Region (NCR) in the 
past two years, and was the second in a series of three 
hearings the Subcommittee is holding on pandemic influenza 
preparedness. The witnesses testified to the pandemic response 
plans in the region and the steps being taken to address 
overall preparedness of the NCR in the event of such an 
emergency. The witnesses discussed three main areas related to 
pandemic influenza preparedness: funding and support of 
emergency response for pandemic planning in the NCR, evaluating 
the development and exercising of strategic plans, and the 
issues related to treatment in the event of an outbreak.
    According to the State of Virginia, they would be ready if 
a pandemic outbreak were to occur. However, the same confidence 
was not express by the other witnesses leading the Chairman to 
believe that more needed to be done to prepare the region for 
hospital surge capacity, triage protocols, and overall 
communication between the Federal Government and the local 
governments.
    Witnesses: Dr. Kevin Yeskey, M.D. Deputy Assistant 
Secretary, Office of Preparedness and Emergency Operations, 
U.S. Department of Health and Human Services; Mr. Chris 
Geldart, Director, Office of National Capital Region, 
Department of Homeland Security; Mr. Darrell Darnell, Director, 
Homeland Security and Emergency Management, District of 
Columbia; Mr. Robert Mauskapf, Director Emergency Operations, 
Planning and Logistics, Virginia Department of Health.
Forestalling the Coming Pandemic: Infectious Disease Surveillance 
        Overseas (October 4, 2007)
    The hearing examined a number of U.S.-funded programs to 
help developing countries, particularly those at risk for 
pandemic disease outbreaks, to conduct emerging disease 
surveillance. Such surveillance is conducted in order to 
identify disease threats and to take measures to isolate them 
before they spread to other countries.
    Witnesses: Panel I: David Gootnick, Director, International 
Affairs and Trade, U.S. Government Accountability Office (GAO), 
Dr. Ray Arthur, Director, Global Disease Detection Operations 
Center, CDC, Dr. Kimothy Smith, DHS, Colonel Ralph Erickson, 
Director, Department of Defense Global Emerging Infections 
System (GEIS), Walter Reed Army Institute of Research, Dr. Kent 
Hill, Assistant Administrator for Health, US Agency for 
International Development (USAID); Panel II: Mr. Nathan 
Flesness, Executive Director, International Species Information 
System (ISIS) Office, Dr. Daniel Janies, Assistant Professor, 
Department of Biomedical Informatics, Ohio State University 
Medical Center and Dr. James Wilson, Director, Division of 
Integrated Biodefense, Imaging Science and Information Systems 
Center (ISIS), Georgetown University.
The Perils of Politics in Government: A Review of the Scope and 
        Enforcement of the Hatch Act (October 18, 2007)
    The purpose of this hearing is to examine the scope of the 
Hatch Act, how it is enforced, and whether the Act needs to be 
enhanced or clarified.
    The Hatch Act restricts the political activity of employees 
of the Federal Government, the District of Columbia, and 
certain state and local employees. The purposes of the Hatch 
Act include ensuring that Federal resources are not directed 
for partisan political goals; promoting a merit-based Federal 
civil service system, rather than a political spoils system; 
and protecting Federal employees from being coerced to 
participate in political activities.
    The hearing highlighted uneven enforcement of the Hatch 
Act, which in recent years has been enforced against civil 
servants for relatively trivial actions while high-level 
appointees and White House officials effectively are insulated 
from punishment. Additionally, the hearing underscored the need 
to ensure that Federal employees receive complete and accurate 
information to understand their obligations under the Hatch 
Act.
    Witnesses: Panel I: James Byrne, Deputy Special Counsel, 
U.S. Office of Special Counsel; Ana Galindo-Marrone, Hatch Act 
Unit Chief, U.S. Office of Special Counsel; Chad Bungard, 
General Counsel, Merit Systems Protection Board; Panel II: 
Colleen Kelley, National President, National Treasury Employees 
Union; John Gage, National President, American Federation of 
Government Employees; and Thomas Devine, Legal Director, 
Government Accountability Project.
Human Capital Needs of the U.S. Customs and Border Protection ``One 
        Face at the Border'' Initiative (November 13, 2007)
    The hearing reviewed the results of a Government 
Accountability Office (GAO) report on the traveler inspection 
process at land and air ports of entry, entitled Border 
Security: Despite Progress, Weaknesses in Traveler Inspections 
Exist at Our Nation's Ports of Entry (GAO-08-219).
    The hearing highlighted serious weaknesses in the traveler 
inspection process at ports of entry revealed by GAO's review. 
The central cause of these weaknesses is a critical shortage of 
CBP officers, which has led to CBP cutting back on training and 
proactive inspection activities. Additionally, the 
understaffing is leading to forced overtime and contributing to 
low morale and high turnover rates.
    Senator Akaka noted that CBP officers do not receive the 
same law enforcement benefits that law enforcement officers in 
Border Patrol and other agencies receive, and he stated that 
Congress should remedy that inequity to help CBP attract and 
retain qualified officers.
    Witnesses: Panel I: Paul Morris, Executive Director, 
Admissibility Passenger Programs, Office of Field Operations, 
U.S. Customs and Border Protection (CBP), Department of 
Homeland Security; Richard Stana, Director, Homeland Security 
and Justice Issues, GAO; Panel II: Colleen Kelley, National 
President, National Treasury Employees Union.
Not a Matter of ``If'' But of ``When'': The Status of U.S. Response 
        Following a RDD Attack (November 15, 2007)
    The Subcommittee held a joint hearing with the Ad Hoc 
Subcommittee on State, Local, and Private Sector Preparedness 
and Integration on November 15, 2007.
    The hearing examined our national level of preparedness to 
respond to a terrorist attack using a radiological dispersion 
device or ``dirty bomb'' and, in particular, at how the U.S. 
Department of Homeland Security coordinates with other agencies 
within the Federal Government, such as the Department of Energy 
and Department of Health and Human Services, as well as 
coordination with and capabilities of regional, State and local 
governments to respond to a dirty bomb attack.
    Witnesses: Mr. Eugene Aloise, Director, Natural Resources 
and Environment, U.S. Government Accountability Office (GAO), 
Mr. Glenn M. Cannon, Assistant Administrator for Disaster 
Operations, Federal Emergency Management Agency, U.S. 
Department of Homeland Security (DHS), Dr. Steven Aoki, Deputy 
Undersecretary of Energy for Counterterrorism, Department Of 
Energy/National Nuclear Security Administration, Thomas P. 
Dunne, Associate Administrator for Homeland Security, 
Environmental Protection Agency (EPA), Dr. Kevin Yeskey, Deputy 
Assistant Secretary for Preparedness and Response, Department 
of Health and Human Services (HHS), accompanied by Dr. Richard 
J. Hatchett, Associate Director for Radiation Countermeasures 
Research and Emergency Preparedness, at the National Institute 
for Allergy and Infectious Diseases (NIAID), National 
Institutes of Health, HHS, Dr. Thomas Tenforde, National 
Council on Radiation Protection and Measurements, Mr. Wayne 
Tripp, Domestic Preparedness Equipment Training Assistance 
Program, and Mr. Ken Murphy, Oregon Department of Emergency 
Management.
Prioritizing Management: Implementing Chief Management Officers at 
        Federal Agencies (December 13, 2007)
    The hearing examined recent legislative and agency action 
to improve management at Federal agencies through the 
establishment of Chief Management Officers (CMO), and reviewed 
a recent Government Accountability Office (GAO) report 
entitled, ``Organizational Transformation: Implementing Chief 
Operating Officer/Chief Management Officer Positions in Federal 
Agencies'' (GAO-08-34). Mr. Johnson and Mr. Walker engaged in a 
lively debate about the importance of a second deputy secretary 
for management, and whether such a position was necessary 
especially as the Federal Government transitions to a new 
administration. The Chairman and Ranking Member continued to 
see a need for management to be addressed by a dedicated senior 
level agency official.
    Witnesses: Mr. Clay Johnson, Deputy Director for 
Management, White House Office of Management and Budget; Mr. 
Paul Brinkley, Deputy Under Secretary for Business 
Transformation, Department of Defense; and Mr. David Walker, 
Comptroller General, Government Accountability Office.
Management and Oversight of Contingency Contracting in Hostile Zones 
        (January 24, 2008)
    This oversight hearing examined the issue of war zone 
contingency contracting, which has long suffered from runaway 
costs due to fraud, waste, and abuse.
    For more than a decade, the Government Accountability 
Office (GAO) has reported shortcomings in oversight of 
contractors who support deployed forces. GAO noted that 
commanders and other military personnel who are most 
responsible for contractor oversight continue to receive little 
or no training either as part of their pre-deployment training 
or their professional military education on how to fulfill this 
duty. GAO and the Special Inspector General for Iraq 
Reconstruction also have found similar problems within the 
Department of State (DOS) and within the U.S. Agency for 
International Development (USAID); these problems also were 
explored in the hearing.
    The hearing highlighted the need to solve problems caused 
by inadequate staffing in contracting and contract management 
at DOD; better train military and civilian personnel for future 
contingency operations; better equip the government to handle 
reconstruction and stabilization; and improve the DOD, DOS, and 
USAID operational planning.
    Witnesses: Panel I: Stuart W. Bowen, Jr., Special Inspector 
General for Iraq Reconstruction; William M. Solis, Director, 
Defense Capabilities and Management, U.S. Government 
Accountability Office; Carole F. Coffey, Assistant Director, 
Defense Capabilities and Management Team, U.S. Government 
Accountability Office; Dina L. Rasor, Director, and co-author 
Betraying our Troops: The Destructive Results of Privatizing 
War; Robert H. Bauman, Investigator, Follow the Money Project, 
and co-author Betraying our Troops: The Destructive Results of 
Privatizing War; and First Sergeant Perry Jefferies, U.S. Army 
(Ret.). Panel II: Confronting Inter-Agency Challenges: 
Recommendations - Hon. P. Jackson (``Jack'') Bell, Deputy Under 
Secretary for Logistics and Materiel Readiness, Department of 
Defense; General David M. Maddox, U.S. Army (Ret.), Former 
Commander-in-Chief, U.S. Army Europe; Member of the Gansler 
Commission; Ambassador John Herbst, Coordinator for 
Reconstruction and Stabilization, Department of State; William 
H. Moser, Deputy Assistant Secretary for Logistics Management, 
Department of State; and James R. Kunder, Acting Deputy 
Assistant Administrator, U.S. Agency for International 
Development.
Building and Strengthening the Federal Acquisition Workforce (February 
        14, 2008)
    The hearing examined the current status of the Federal 
Government's acquisition workforce by focusing on initiatives 
underway to recruit, train, and retain acquisition personnel. 
Despite the billions of dollars spent government-wide on 
procurement, it is increasingly difficult to fill the ranks of 
the Federal acquisition workforce to oversee and manage Federal 
contracts. This category of Federal employees is in high demand 
but suffers from high turnover. In recruiting and retaining 
these employees, agencies also face stiff competition from the 
private sector and from other agencies.
    The Government Accountability Office and other experts 
agree that the acquisition workforce cannot adequately meet the 
government's needs. Like much of the Federal Government, the 
acquisition workforce faces tough challenges in the years to 
come as over half of the workforce will be eligible to retire 
in the next 10 years, according to the Federal Acquisition 
Institute (FAI).
    The Subcommittee found that the Office of Federal 
Procurement Policy, along with the Federal Acquisition 
Institute and the Defense Acquisition University (DAU) are all 
working to address these workforce challenges including 
additional certification requirements, training programs and 
internship programs. However, much more remains to be improved 
to address this issue.
    Witnesses: Hon. Paul A. Denett, Administrator, Office of 
Federal Procurement Policy, Office of Management and Budget; 
Frank J. Anderson, Jr., President, Defense Acquisition 
University, Department of Defense; and Karen A. Pica, Director, 
Federal Acquisition Institute, General Services Administration.
Government-wide Intelligence Community Management Reforms: Ensuring 
        Effective Congressional Oversight and the Role of the 
        Government Accountability Office (February 29, 2008)
    This hearing examined how to improve oversight and 
accountability of the intelligence community (IC).
    In the years since September 11, 2001, and with the passage 
of the Intelligence Reform and Terrorism Prevention Act of 2004 
(IRTPA), the IC has undergone extensive restructuring. IRTPA 
created a Director of National Intelligence (DNI) with broad 
responsibility across Federal departments and agencies for 
information sharing, collection, and analysis. The DNI has 
proposed a series of additional community-wide management 
reforms to implement a common performance management system; 
create a civilian joint-duty program; modernize the community's 
business practices, including reforming the process for 
granting security clearances; establish an equal opportunity 
and diversity program; establish new acquisition processes; and 
develop a community-wide information sharing environment.
    With these reforms, the need for effective oversight of the 
intelligence community has never been greater. The witnesses 
addressed how to enhance congressional oversight of the 
intelligence community and, in particular, the role the 
Government Accountability Office (GAO), as Congress's 
investigative arm, could play in reviewing ongoing IC 
management reforms.
    The Intelligence Community Auditing Act (S. 82), introduced 
by Chairman Akaka was discussed at the hearing. S. 82 would 
reaffirm GAO's authority to perform audits and evaluations of 
financial transactions, programs, and activities of elements of 
the intelligence community, and to obtain the documents needed 
to do so.
    Witnesses: Hon. David M. Walker, Comptroller General, 
Government Accountability Office (GAO); Marvin C. Ott, 
Professor of National Security Policy, National War College, 
National Defense University; Steven Aftergood, Director, 
Government Secrecy Project, Federation of American Scientists; 
Frederick M. Kaiser, Specialist in American National 
Government, Government and Finance Division, Congressional 
Research Service; and Ronald A. Marks, Senior Vice President 
for Government Relations, Oxford Analytica, Inc.
On the Path to Great Educational Results for the District's Public 
        Schools? (March 14, 2008)
    This hearing was a status update of the major reform effort 
underway within the District of Columbia Public Schools.
    Chairman Akaka and Ranking Member Voinovich requested that 
the Government Accountability Office (GAO) conduct a short-term 
and long-term evaluation of the reforms. GAO testified about 
its initial findings, which generally praised the District for 
its efforts to establish a foundation for the reforms. However, 
GAO criticized the Chancellor and Deputy Mayor for Education 
for not putting together a long-term strategic plan for the 
reforms. The Chancellor and Deputy Mayor testified that they 
believe action is needed more urgently than planning.
    Witnesses: Cornelia Ashby, Director, Education, Workforce, 
and Income Security Issues, U.S. Government Accountability 
Office; Michelle Rhee, Chancellor, District of Columbia Public 
Schools; Victor Reinoso, Deputy Mayor for Education, District 
of Columbia; Deborah A. Gist, State Superintendent of 
Education, District of Columbia; Allen Y. Lew, Executive 
Director, Office of the Public Education and Facilities 
Modernization for the District of Columbia Public Schools; John 
W. Hill, Chief Executive Officer, Federal City Council; and 
Jane Hannaway, Director, Education Policy Center, Urban 
Institute.
Managing Diversity of Senior Leadership in the Federal Workforce and 
        the Postal Service (April 3, 2008)
    The hearing examined diversity in the Senior Executive 
Service (SES) of the Federal Government, in terms of women, 
racial and ethnic minorities, and persons with disabilities in 
the SES. Legislation to improve SES diversity, S. 2148/H.R. 
3774, the Senior Executive Diversity Assurance Act of 2007 was 
an important focus on the hearing.
    The Government Accountability Office presented findings 
from its ongoing report evaluating diversity in the SES, the 
Office of Personnel Management discussed its efforts to improve 
the diversity of the SES, and associations representing senior 
executives testified to the importance of diversity in the SES 
and the need for an SES resource office within the Office of 
Personnel Management (OPM).
    The hearing also examined diversity in the senior ranks of 
the Postal Career Executive Service, and the equivalent career 
executive positions in the Postal Regulatory Commission, the 
U.S. Postal Inspection Service, and the U.S. Postal Service 
Office of the Inspector General. Although the Administration 
expressed concerns with S. 2148/H.R. 3774, witnesses' testimony 
clearly demonstrated diversity in the SES could be improved.
    Witnesses: Nancy Kichak, Associate Director and Chief 
Actuary, Strategic Human Resources Policy Division, U.S. Office 
of Personnel Management; Susan LaChance, Vice President of 
Employee Development & Diversity, U.S. Postal Service; George 
H. Stalcup, Director of Strategic Issues, U.S. Government 
Accountability Office; Katherine Siggerud, Director of Physical 
Infrastructure, U.S. Government Accountability Office; Steven 
W. Williams, Secretary and Chief Administrative Officer, Postal 
Regulatory Commission; Ronald Stith, Assistant Inspector 
General for Mission Support, U.S. Postal Service, Office of 
Inspector General; Nicole A. Johnson, Assistant Chief Inspector 
Investigations and Security Support, U.S. Postal Inspection 
Service; Bray Barnes, Acting Chief Human Capital Officer, 
Department of Homeland Security; Carmen Walker, Deputy Officer, 
Office for Civil Rights & Civil Liberties, Department of 
Homeland Security; William Bransford, General Counsel, Senior 
Executives Association; William Brown, President, African 
American Federal Executives Association; Rhonda Trent, 
President, Federally Employed Women; Dr. Carson Eoyang, 
Executive Director, Asian American Government Executives 
Network; Jose Osegueda, President, National Association of 
Hispanic Federal Executives; and Darlene Young, President, 
Blacks in Government.
Beyond Control: Reforming Export Licensing Agencies for National 
        Security and Economic Interests (April 24, 2008)
    The purpose of the hearing was to examine the structure of 
the Federal government agencies that are responsible for 
licensing controlled exports, what kinds of processes they have 
in place for doing so, how those structures can help or impede 
decision making related to those licenses, and any 
recommendations for improving the export control processes.
    The Federal agencies overseeing U.S. exports of military 
and dual-use technology must weigh national security, foreign 
policy, and economic interests in determining whether 
technology may be exported. The Export Administration Act and 
the Arms Export Control Act provide the statutory basis for 
making these evaluations and were created to prevent the 
Nation's enemies from gaining a military advantage. The context 
of export controls has changed since modern export regulations 
originally were put in place, before and during the Cold War. 
Since then, rapid globalization, decentralized networks of 
enemy non-state actors, and quickly advancing, more accessible 
advanced technology, have presented new challenges to U.S. 
national security and economic interests.
    At the hearing, Chairman Akaka stated that the U.S. export 
control system has not been adapted for a globalized world. The 
hearing highlighted many of the management problems that plague 
the organizations charged with administering export controls 
over both munitions and dual-use technology. The witnesses 
provided a number of recommendations to improve U.S. export 
controls.
    Witnesses: Ambassador Stephen D. Mull, Acting Assistant 
Secretary for Political-Military Affairs, Department of State; 
Beth M. McCormick, Acting Director, Defense Technology Security 
Administration, Department of Defense; Matthew S. Borman, 
Deputy Assistant Secretary, Bureau of Industry and Security, 
Department of Commerce; Ann Calvaresi Barr, Director, 
Acquisition and Sourcing Management, Government Accountability 
Office; William A. Reinsch, President, National Foreign Trade 
Council; Daniel B. Poneman, Principal, The Scowcroft Group; and 
Edmund B. Rice, President, Coalition for Employment through 
Exports.
The Impact of Implementation: A Review of the REAL ID Act and the 
        Western Hemisphere Travel Initiative (April 29, 2008)
    This hearing examined how the Federal Government is 
preparing, with regard to staffing, infrastructure, and 
planning, to implement REAL ID and the Western Hemisphere 
Travel Initiative (WHTI).
    The 9-11 Commission report recommended that the Federal 
Government set standards identification documents including 
drivers' licenses. In addition, the Commission concluded that 
U.S. citizens, as well as non-citizens, should be required to 
carry documents allowing their identity and citizenship to be 
securely verified when entering the United States. The REAL ID 
Act of 2005 governs the implementation of the standards for 
identification documents. The WHTI created pursuant to the 
Intelligence Reform and Terrorism Prevention Act of 2004 
(IRTPA), governs the implementation of required verification of 
identity and citizenship to enter the United States.
    Concerns have been raised about both REAL ID and WHTI. 
State and local government officials are deeply concerned about 
REAL ID because it is an unfunded mandate. Moreover, privacy 
advocates believe that REAL ID does not sufficiently protect 
the personal information that will be contained in 
identification documents and linked State databases. Eighteen 
States have passed laws either prohibiting compliance with REAL 
ID or resolutions expressing opposition to REAL ID.
    The chief concerns over the WHTI requirements are the 
impact the new requirements will have on travel, trade, and the 
economy of border areas, as many travelers do not have 
passports or other acceptable documents. In addition, there 
have been concerns about alerting travelers of the WHTI 
requirements in a timely fashion and the impact WHTI may have 
on legitimate travel and trade. The hearing revealed that 
problems of funding, privacy, and overall planning for REAL ID 
and WHTI have not yet been resolved.
    Witnesses: Hon. Stewart A. Baker, Assistant Secretary, 
Office of Policy Directorate, U.S. Department of Homeland 
Security; Derwood K. Staeben, Senior Advisor, Western 
Hemisphere Travel Initiative, Bureau of Consular Affairs, U.S. 
Department of State; Hon. Donna Stone, President, National 
Conference of State Legislatures; David Quam, Director of 
Federal Relations, National Governors Association; Caroline 
Fredrickson, Director, American Civil Liberties Union, 
Washington Legislative Office; Roger J. Dow, President and CEO, 
Travel Industry Association; Angelo I. Amador, Director of 
Immigration Policy, U.S. Chamber of Commerce; and Sophia Cope, 
Staff Attorney; and Ron Plesser Fellow, Center for Democracy 
and Technology.
From Candidates to Change Makers: Recruiting and Hiring the Next 
        Generation of Federal Employees (May 8, 2008)
    The hearing examined the challenges of improving the 
recruiting and hiring processes for Federal Government jobs in 
order to meet the challenge created by the large number of 
Federal employees eligible to retire in the next 5 years.
    The Office of Personnel Management (OPM) testified to the 
work it is doing with the Chief Human Capital Officers Council 
to develop the best practices for hiring, succession planning, 
and strategic human capital plans to recruit new hires. OPM 
further discussed the need for modernized information 
technology systems at agencies to move candidates quickly 
through the process.
    The Nuclear Regulatory Commission testified about its 
robust effort to attract highly-talented scientific and 
technical employees from diverse backgrounds. The second panel 
of witnesses testified to the need for improvements across 
agencies to expedite the hiring process, improve communication, 
and adhere closely to the Merit System Principles.
    Witnesses: Robert Goldenkoff, Director of Strategic Issues, 
Government Accountability Office; Angela Bailey, Deputy 
Associate Director, Talent and Capacity Policy Center, 
Strategic Human Resources Division, Office of Personnel 
Management; John Crum, Acting Director, Office of Policy and 
Evaluation, Merit Systems Protection Board; James McDermott, 
Chief Human Capital Officer, Nuclear Regulatory Commission; 
John Gage, National President, American Federation of 
Government Employees, Colleen M. Kelley, National President, 
National Treasury Employees Union; Dan Solomon, Chief Executive 
Officer, Virilion, Inc.; Max Stier, President and Chief 
Executive Officer, Partnership for Public Service; and Donna M. 
Matthews, Principal, Federal Sector Programs, Hewitt 
Associates, LLC.
National Security Bureaucracy for Arms Control, Counterproliferation, 
        and Nonproliferation: The Role of the Department of State--Part 
        I (May 15, 2008)
    The purpose of this hearing was to examine the 
organizational structures within the State Department 
responsible for arms control, counterproliferation, and 
nonproliferation; the responsiveness of those structures to and 
processes for optimizing national efforts and implementing 
policy and international regimes; human capital challenges; and 
any recommendations for improving the arms control, 
counterproliferation, and nonproliferation bureaucracies.
    The State Department's ``T'' bureau contains the 
organizational elements that oversee the areas of arms control, 
nonproliferation, and counterproliferation. The State 
Department was not always the lead agency for these issues. The 
Arms Control and Disarmament Agency (ACDA) was established in 
1961 to address the growing international security threat of 
nuclear weapons. This agency was independently led by a 
director who could take issues directly to the President. There 
remain many lingering concerns about the consequences of the 
decision to disestablish ACDA and merge its functions into the 
State Department.
    The hearing highlighted the dissolution of ACDA and 
problems with the current organizational structure at the State 
Department. In July 2005, Secretary of State Condoleezza Rice 
reorganized the bureaus supporting the Under Secretary of State 
for Arms Control and International Security within the T bureau 
in order to address the threat of weapons of mass destruction.
    Witnesses reported that the 2005 reorganization resulted in 
a reduction of the number and capabilities of existing staff to 
handle arms control and nonproliferation matters. All witnesses 
provided recommendations that would strengthen this 
organization. The viability of an independent arms control and 
nonproliferation agency was also discussed by the witnesses.
    Witnesses: Hon. Thomas Graham, Jr., former Acting Director, 
Arms Control and Disarmament Agency; Andrew K. Semmel, former 
Deputy Assistant Director, Nuclear Nonproliferation Policy and 
Negotiations, Department of State; and Hon. Norman A. Wulf, 
former Deputy Assistant Director, Nonproliferation and Arms 
control, Arms Control and Disarmament Agency, Department of 
State.
Security Clearance Reform: The Way Forward (May 22, 2008)
    This hearing provided an update to the Subcommittee 
regarding progress made to date in addressing the longstanding 
backlog of security clearance investigations, and focused on 
new reforms outlined by the Administration in a report released 
on April 30, 2008. This was the fifth in a series of hearings 
regarding the clearance process.
    The number of security clearance requests that the 
Department of Defense now processes, primarily for contractors, 
has greatly increased over the past 7 years. In 2005, the 
Government Accountability Office (GAO) placed the Department of 
Defense Security Clearance process on the GAO High-Risk List 
due to a mounting backlog of clearance requests as well as 
DOD's inability to manage the backlog. In response DOD 
transferred the investigative role for clearances to the Office 
of Personnel Management (OPM), which has made some improvements 
in the backlog and processing times. However, the Subcommittee 
found that OPM continues to rely on antiquated technology 
systems and cumbersome processes to conduct investigations.
    Over the course of 2008, the President directed DOD, the 
Office of Management and Budget (OMB), and the Office of the 
Director of National Intelligence (ODNI) to submit plans for 
improving the security clearance process, leading to the 
creation of the Joint Security and Suitability Reform Team and 
their issuance of a report with several recommendations for 
reform.
    That report, which was presented to the Subcommittee, laid 
out goals to improve the process, most notably increasing 
automation and continuously reevaluating clearances to 
eliminate periodic reinvestigations. After testimony on both 
proposed improvements, as well as ongoing problems with the 
process, the Subcommittee committed to continued oversight of 
this issue.
    Witnesses: Brenda S. Farrell, Director, Defense 
Capabilities and Management, Government Accountability Office; 
Hon. Clay Johnson, III, Deputy Director for Management, Office 
of Management and Budget; Beth McGrath, Principal Deputy Under 
Secretary of Defense for Business Transformation, Department of 
Defense; John Fitzpatrick, Director, Specialty Security Center, 
Office of the Director of National Intelligence; and Kathy L. 
Dillaman, Associate Director, Federal Investigative Services 
Division, Office of Personnel Management.
Non-Foreign COLA: Finding an Equitable Solution (May 29, 2008)
    The purpose of the field hearing at the Oahu Veterans 
Center in Honolulu, Hawaii, was to review various proposals, 
including S. 3013, the Non-Foreign Area Retirement Equity 
Assurance Act, to phase-out the non-foreign cost-of-living 
allowance (COLA) and replace it with locality pay for Federal 
civilian employees living in Alaska, Hawaii, and the U.S. 
territories.
    The Office of Personnel Management presented justification 
for the need for action, its proposal, and concerns with 
provisions in S. 3013. The second panel of witnesses offered 
perspectives from local employees endorsing the need for 
improved retirement equity while preserving take-home pay in 
any conversion process away from non-foreign cost-of-living 
allowance to locality pay.
    Witnesses: Chuck D. Grimes, Deputy Associate Director, 
Strategic Human Resources Policy Division, Office of Personnel 
Management; Bradley Bunn, Program Executive Officer, National 
Security Personnel System, Department of Defense; Jo Ann 
Mitchell, Manager, Accounting Services, U.S. Postal Service; 
Joyce Matsuo, President, Oahu COLA Defense Committee, Inc.; 
Sharon Warren, President, COLA Defense Committee of Anchorage, 
Inc.; Manuel Q. Cruz, President, COLA Defense Committee of 
Guam; Michael Fitzgerald, President, Chapter 187, NAVFAC 
Hawaii, Federal Managers Association; and Terry Kaolulo, 
President, Hawaii State Association of Letter Carriers.
National Security Bureaucracy for Arms Control, Counterproliferation, 
        and Nonproliferation: The Role of the Department of State--Part 
        II (June 6, 2008)
    This hearing was the Subcommittee's second hearing to 
examine the organizational structures within the State 
Department responsible for arms control, counterproliferation, 
and nonproliferation.
    The hearing went into a great deal of detail about the 2005 
reorganization of the bureaus supporting the Under Secretary of 
State for Arms Control and International Security within the 
State Department's ``T'' bureau, which is responsible for arms 
control, nonproliferation, and counterproliferation. In 
particular, the hearing highlighted the human capital 
challenges confronting the T bureau.
    Witnesses: Patricia A. McNerney, Principal Deputy Assistant 
Secretary, Bureau of International Security and 
Nonproliferation, Department of State, and Linda S. 
Taglialatela, Deputy Assistant Secretary for Human Resources, 
Department of State.
Management Challenges Facing the Federal Protective Service: What Is At 
        Risk? (June 19, 2008)
    This hearing examined a GAO report that highlighted serious 
staffing and management challenges within the Federal 
Protective Service (FPS).
    With responsibility for protecting approximately nearly 
9,000 Federal facilities nationwide, FPS plays a critical role 
in the defense of terrorism and other criminal activity.
    The GAO report revealed numerous problems that undermine 
FPS's ability to protect Federal buildings, including 
understaffing, poor morale and high attrition, budget and 
equipment problems, and poor oversight of contract security 
guards.
    Although Congress, through an amendment that Senator 
Clinton offered and Chairman Akaka cosponsored, recently placed 
a floor on the number of FPS employees and required FPS to 
raise fees to cover the costs, the hearing made clear that 
further action is needed to improve FPS management and 
operations.
    Witnesses: Gary W. Schenkel, Director, Federal Protective 
Service, U.S. Immigration and Customs Enforcement; Mark L. 
Goldstein, Director, Physical Infrastructure Issues, Government 
Accountability Office; David Wright, President, American 
Federation of Government Employees (AFGE), Local 918 (Federal 
Protective Service).
A Domestic Crisis With Global Implications: Reviewing the Human Capital 
        Crisis at the State Department (July 16, 2008)
    The State Department testified about its efforts to address 
concerns raised in two State Department Inspector General 
reports on the Bureau of Human Resources, which included more 
than 60 recommendations to address the Department's failing 
human capital efforts. The State Department witnesses were 
questioned on the success of addressing staffing and management 
needs in foreign or civil service through the Transformational 
Diplomacy Initiative (TDI).
    The second pnel of witnesses offered criticism of the 
current Administration's approach to investing in diplomatic 
readiness and offered recommendations for the next 
Administration.
    Witnesses: Panel I: Ambassador Harry Thomas, Director 
General of the Foreign Service and Director of Human Resources, 
U.S. Department of State; Linda Taglialatela, Deputy Assistant 
Secretary, Bureau of Human Resources, Department of State; 
Panel II: John Naland, President, American Foreign Service 
Association; and Ambassador Ronald Neumann (Ret.), President, 
American Academy of Diplomacy.
Improving Performance: A Review of Pay-for-Performance Systems in the 
        Federal Government (July 22, 2008)
    The purpose of this hearing was to discuss the many reform 
efforts to transition employees out of Title 5 personnel system 
and into pay-for-performance systems.
    The Office of Personnel Management and representative 
agencies testified to the importance and successes of pay-for-
performance systems and responded to questions and concerns 
from the Chairman about the use of quotas and forced 
distribution of ratings in the performance evaluation process.
    The second panel of witnesses offered criticisms of the 
systems suggesting that efforts to elicit higher performance 
lacked transparency and fairness, leading to lower morale and 
less confidence in the system.
    Witnesses: Panel I: Hon. Linda Springer, Director, U.S. 
Office of Personnel Management; Richard Spires, Deputy 
Commissioner for Operational Support, Internal Revenue Service; 
Gale Rossides, Deputy Administrator, Transportation Security 
Administration; Ronald Sanders, Chief Human Capital Officer, 
Office of the Director of National Intelligence; Bradley Bunn, 
Program Executive Officer, National Security Personnel System, 
Department of Defense; J. Christopher Mihm, Managing Director, 
Strategic Issues, Government Accountability Office; Panel II: 
Carol Bonosaro, President, Senior Executives Association; John 
Gage, National President, American Federation of Government 
Employees; Colleen M. Kelley, National President, National 
Treasury Employees Union; Jonathan D. Bruel, Executive 
Director, IBM Center for the Business of Government; and Dr. 
Charles Fay, Professor of Human Resources Management, Rutgers 
University School of Management.
A Reliance on Smart Power--Reforming the Foreign Assistance Bureaucracy 
        (July 31, 2008)
    The purpose of this hearing was to examine the 
organizational structures of the State Department responsible 
for coordinating and leading U.S. foreign assistance; their 
missions; the processes in place for optimizing national 
efforts; the responsiveness of those structures to and 
processes for implementing policy; human capital challenges; 
issues related to the 2006 foreign assistance reorganization at 
the Department; and any recommendations for improving the 
foreign assistance bureaucracy.
    In January 2006, Secretary of State Condoleezza Rice 
announced her intention to more closely align the U.S. Agency 
for International Development (USAID) with the State 
Department. This action, which became known as the ``F 
Process,'' was intended to ensure more effective use of 
resources in meeting policy objectives. The State Department's 
F Bureau has become the primary entity within the U.S. 
Government for coordinating U.S. foreign assistance.
    There have been many ongoing concerns with this 
reorganization such as concerns over a continuing lack of a 
strategic plan, too many agencies and programs providing aid 
overseas without adequate coordination, the militarization of 
foreign assistance, and unresolved human capital challenges at 
USAID.
    At the hearing, Chairman Akaka stated that improving the 
organizational and human capital issues would help the next 
Presidential administration better focus its efforts overseas 
and strengthen national security. There was broad agreement 
among the witnesses that management and coordination must 
improve and that human capital challenges need more attention.
    Witnesses: Richard L. Greene, Deputy Director for U.S. 
Foreign Assistance, Department of State; Leo Hindery, Jr., Vice 
Chairman, Helping to Enhance the Livelihood of Persons around 
the Globe (HELP) Commission; Dr. Gordon Adams, Distinguished 
Fellow, The Henry L. Stimson Center; Anne C. Richard, Vice 
President for Government Relations and Advocacy, International 
Rescue Committee; Sam A. Worthington, President and Chief 
Executive Officer, InterAction; and Dr. Gerald Hyman, Senior 
Adviser and President of Hills Program on Governance, Center 
for Strategic and International Studies.
Managing the Challenges of the Federal Government Transition (September 
        10, 2008)
    In 2008, the Federal Government faced an unprecedented 
transition challenge, with major government reorganizations and 
the creation of the Department of Homeland Security since the 
last presidential transition. Additionally, the transition to 
the next Administration will take place during a time with 
great economic and national security risks and major management 
challenges across the Federal Government. Therefore, it was 
essential that the outgoing Administration ensured that 
agencies laid the groundwork for transitioning to a new 
Administration, without letting management planning and human 
capital planning lag.
    The hearing focused on ensuring that the Bush 
Administration was planning and preparing adequately for a 
smooth transition so that agencies could avoid a management 
vacuum after much of the political leadership leaves in January 
2009. The hearing also examined whether any changes are needed 
to the vetting and appointment process to get appointees 
confirmed more quickly.
    The Subcommittee heard testimony from three of the 
principal agencies involved in the transition. The Office of 
Management and Budget informed the Subcommittee that the Deputy 
Director for Management had been working closely with agency 
heads to undertake extensive transition planning, especially 
the identification of career individuals to take on leadership 
roles until successors were appointed. The Office of Government 
Ethics and the General Services Agency assured the Subcommittee 
that they were adequately equipped to handle the incoming 
transition teams and expeditiously handle the required ethics 
certifications.
    Witnesses: Gene L. Dodaro, Acting Comptroller General, 
Government Accountability Office; Hon. Clay Johnson, III, 
Deputy Director for Management, Office of Management and 
Budget; Hon. Robert Cusick, Director, Office of Government 
Ethics; and Gail T. Lovelace, Chief Human Capital Officer, 
General Services Administration.
Keeping the Nation Safe through the Presidential Transition (September 
        18, 2008)
    This hearing examined the Department of Homeland Security's 
(DHS) planning for the upcoming presidential transition. In 
particular, the hearing reviewed a June 2008 report by the 
National Academy of Public Administration (NAPA) entitled, 
Addressing the 2009 Presidential Transition at the Department 
of Homeland Security.
    The Federal Government faces significant challenges as it 
prepares for the first presidential transition since the 
attacks of Sepatember 11, 2001. Smooth functioning during the 
transition is critical, as there may be a heightened risk of 
terrorist attack during the time around the presidential 
transition. The challenges of the transition will be especially 
acute for DHS. DHS has been on the Government Accountability 
Office's high-risk list since its formation in 2003, and this 
will be its first presidential transition.
    The hearing made clear that DHS is taking transition 
planning seriously and was working to address problems that 
could undermine a smooth transition. However, it also was clear 
that high turnover and a large number of career executive 
vacancies would make the presidential transition especially 
challenging.
    Witnesses: Hon. Elaine Duke, Under Secretary for 
Management, Department of Homeland Security; Frank Chellino, 
Chairman, NAPA Panel for the U.S. Congress and U.S. Department 
of Homeland Security; Patricia McGinnis, President and Chief 
Executive Officer, Council for Excellence in Government; and 
John Rollins, Specialist in Terrorism and National Security, 
Congressional Research Service.
A Reliance on Smart Power--Reforming the Public Diplomacy Bureaucracy 
        (September 23, 2008)
    The purpose of this hearing was to examine the structures 
of the State Department responsible for coordinating U.S. 
public diplomacy, their missions, processes in place for 
implementing U.S. policy, the responsiveness of the 
organizational structures and processes to the executive 
branch's public diplomacy policies, human capital challenges, 
and any recommendations for improving public diplomacy.
    Public diplomacy, also known as strategic communication, is 
generally defined as the promotion of U.S. national interests 
through understanding, informing, and influencing foreign 
audiences. These foreign audiences are not always government 
officials with whom our diplomats engage. Instead, public 
diplomacy most frequently seeks to influence a foreign public's 
opinion in support of our national policies and objectives. In 
1999, the U.S. Information Agency, the lead U.S. public 
diplomacy agency, was merged into the State Department. Most of 
its functions, with the exception of the Broadcasting Board of 
Governors (BBG) and associated networks, became what is now 
known as the ``R'' Bureau. Challenges affecting U.S. public 
diplomacy include interagency coordination, the usefulness of 
the existing public diplomacy strategy, and human capital.
    Mr. Midura, a State Department witness, informed the 
Subcommittee that the modernization of public diplomacy is a 
top priority of the State Department. Private witnesses 
addressed not only the important role of the American public in 
public diplomacy, but also dysfunctional staffing arrangements, 
training gaps, the involvement of the private sector, and the 
viability of having an official in the White House directing 
government-wide public diplomacy efforts.
    Witnesses: Christopher Midura, Acting Director, Office of 
Policy, Planning, and Resources for Public Diplomacy and Public 
Affairs, Department of State; Ambassador Scott H. Delisi, 
Director, Career Development and Assignments, Bureau of Human 
Resources, Department of State; Rick A. Ruth, Director, Office 
of Policy and Evaluation, Bureau of Education and Cultural 
Affairs, Department of State; Peter Kovach, Director, Global 
Strategic Engagement Center, Department of State; Hon. Douglas 
K. Bereuter, President and Chief Executive Officer, The Asia 
Foundation; Ambassador Elizabeth F. Bagley, Vice Chairman, U.S. 
Advisory Commission on Public Diplomacy; Stephen M. Chaplin, 
Senior Adviser, The American Academy of Diplomacy; Hon. Ronna 
A. Freiberg, Former Director of Congressional and 
Intergovernmental Affairs, U.S. Information Agency; and Hon. 
Jill A. Schuker, Fellow, University of Southern California--
Center for Public Diplomacy.

                            II. Legislation

    The following bills were considered by the Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia during the 110th Congress:

                       MEASURES ENACTED INTO LAW

    P.L. 110-33, H.R. 2080--This bill amends the District of 
Columbia Home Rule Act to conform the District charter to 
revisions made by the Council of the District of Columbia 
relating to public education. H.R. 2080 also repeals the grant 
of authority to the Mayor and the District Council to establish 
the annual budget for the District's Board of Education, which 
also prohibits the Mayor and Council from specifying the 
amounts of and purposes for which funds may be expended. 
Further, H.R. 2080 repeals: (1) the authority of the Board to 
govern D.C. public schools; and (2) provisions for election of 
the Board. H.R. 2080 was introduced by Delegate Norton on May 
1, 2007 and referred to the House Committee on Oversight and 
Government Reform. The bill was cosponsored by Representative 
Tom Davis. On May 1, 2007, the House Committee on Oversight and 
Government Reform held hearings and reported the bill to the 
House of Representatives by voice vote. H.R. 2080 passed the 
House of Representatives on suspension of the rules by voice 
vote on May 8, 2007. H.R. 2080 was received in the Senate on 
May 9, 2007 and placed on the Senate Legislative Calendar under 
General Orders on May 9, 2007 (Calendar No. 145). The bill 
passed the Senate without amendment by unanimous consent on May 
22, 2007. H.R. 2080 was enacted on June 1, 2007. After 
enactment, on March 14, 2008, the Senate Committee on Homeland 
Security and Governmental Affairs Subcommittee on Oversight of 
Government Management, the Federal Workforce, and the District 
of Columbia held hearings on the bill.
    P.L. 110-372, S. 1046--The Senior Professional Performance 
Act of 2008 amends provisions relating to locality-based 
comparability payments for Federal employees to exempt senior-
level (SL) and scientific and professional personnel (ST) 
employees from limitations on total basic and comparability pay 
established at level III of the Executive Schedule. S. 1046 
further increases the rate of basic pay for certain senior-
level positions to level III.
    S. 1046 also permits a further increase to level II for 
agencies with a performance appraisal system that has been 
certified as making meaningful distinctions based on relative 
performance. S. 1046 protects employees who are transferred to 
an agency subject to existing pay limitations from pay 
reductions. Moreover, S. 1046 provides that appointments to 
positions classified above GS-15 may be made on approval of the 
appointee's qualifications by the Director of the Office of 
Personnel Management (OPM) on the basis of qualification 
standards developed by the agency involved in accordance with 
criteria prescribed by the Director. S. 1046 also prohibits a 
reduction in the rate of basic pay for certain senior-level 
positions as a result of amendments made by this Act.
    S. 1046 limits an agency's certification of performance 
appraisal systems to 24 months, with an additional extension of 
up to six months by the Director. S. 1046 additionally allows 
extensions of certifications scheduled to expire at the end of 
2008 or 2009. S. 1046 was introduced on March 29, 2007, by 
Senator Voinovich and was referred to the Homeland Security and 
Governmental Affairs Committee.
    S. 1046 was further referred to the Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia on June 6, 2007. On April 22, 2008 the 
bill was reported to the Senate by Senator Lieberman without 
amendment (S. Rept. 110-328) at which point it was placed on 
the Senate Legislative Calendar under General Orders (Calendar 
No. 703).
    The bill was passed by unanimous consent, with an amendment 
on July 11, 2008. S. 1046 was received in the House of 
Representatives on July 14, 2008 and referred to the House 
Committee on Oversight and Government Reform. S. 1046 was 
passed by the House of Representatives on September 26, 2008 by 
the Yays and Nays under suspension of the rules. S. 1046 was 
enacted on October 8, 2008.
    P.L. 110-250, S. 1245--This bill amends provisions of the 
Intelligence Reform and Terrorism Prevention Act of 2004 
relating to the implementation of a mutual aid agreement for 
the National Capital Region in the event of a regional or 
national emergency to: (1) remove the requirement that agents 
and volunteers acting on behalf of a regional organization or 
entity be committed (listed) in a mutual aid agreement in order 
to prepare for or respond to such an emergency; and (2) expand 
the list of organizations or entities authorized to enter into 
and be covered by such an agreement to include any governmental 
agency, authority, or institution within the Region.
    S. 1245 was introduced by Senator Cardin on April 26, 2007 
and was referred to the Homeland Security and Governmental 
Affairs Committee. The bill was cosponsored by Senators 
Mikulski, Warner and Webb. On June 6, 2007, the bill was 
further referred to Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of 
Columbia. On December 6, 2007, Senator Lieberman reported the 
bill to the Senate without amendment (S. Rept. 110-237) and S. 
1245 was placed on the Senate Legislative Calendar under 
General Orders (Calendar No. 525).
    S. 1245 passed the Senate by unanimous consent without 
amendment on December 12, 2007. On December 13, 2007, S. 1245 
was received in the House of Representatives. On June 9, 2008, 
the bill was agreed to by voice vote under suspension of the 
rules by the House of Representatives. S. 1245 was enacted on 
June 26, 2008.

   MEASURES FAVORABLY REPORTED BY THE SUBCOMMITTEE AND PASSED BY THE 
                                 SENATE

    S. 274--The Federal Employee Protection of Disclosures Act 
protects Federal employees who have lawfully disclosed credible 
evidence of waste, abuse, or gross mismanagement in the 
government. Also, S. 274 includes disclosure of national 
defense or the conduct of foreign affairs that the employee 
reasonably believes is direct evidence of waste, abuse or gross 
mismanagement disclosed to a Member or employee of Congress who 
is authorized to receive information of the type disclosed. S. 
274 excludes disclosures pertaining to policy decisions that 
lawfully exercise discretionary authority unless the disclosing 
employee reasonably believes that there is evidence of a 
violation of law or government waste, fraud, or abuse. The bill 
also codifies the legal standard for determining whether a 
whistleblower has a reasonable belief that a disclosure 
evidences governmental waste, fraud, or abuse, or a violation 
of law.
    S. 274 was introduced by Senator Akaka on January 11, 2007 
and referred to the Committee on Homeland Security and 
Governmental Affairs. The bill was cosponsored by Senators 
Carper, Collins, Durbin, Grassley, Kennedy, Lautenberg, Leahy, 
Levin, Lieberman, Mikulski, Pryor and Voinovich. The bill was 
further referred to the Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of Columbia 
on March 30, 2007. Senator Lieberman reported the bill to the 
Senate with an amendment in the nature of a substitute on 
November 15, 2007 (S. Rept. 110-232) and S. 274 was placed on 
the Senate Legislative Calendar under General Orders (Calendar 
No. 513). The substitute amendment of the Committee on Homeland 
Security and Governmental Affairs was agreed to by unanimous 
consent and the S 274 was passed by unanimous consent on 
December 17, 2007. The bill was received in the House of 
Representatives and held at the desk on December 17, 2007.
    S. 3013--The Non-Foreign Area Retirement Equity Assurance 
Act of 2008 revises Federal employee locality-based 
comparability payments provisions to include U.S. territories 
and possessions, including the Commonwealth of Puerto Rico and 
the Commonwealth of the Northern Mariana Islands, within a pay 
locality. S. 3013 sets forth maximum rates of pay for Senior 
Executive Service (SES) personnel in such areas. S. 3013 was 
introduced by Senator Akaka on May 13, 2008 with Senators 
Inouye, Murkowski and Stevens as cosponsors. The bill was 
referred to the Committee on Homeland Security and Governmental 
Affairs and further referred to the Subcommittee on Oversight 
of Government Management, the Federal Workforce, and the 
District of Columbia on June 19, 2008.
    Senator Lieberman reported S. 3013 to the Senate with 
amendments on September 11, 2008 (S. Rept. 110-456). At which 
time, it was placed on the Senate Legislative Calendar under 
General Orders (Calendar No. 954). The amendments proposed by 
the Committee on Homeland Security and Governmental Affairs 
were agreed to by unanimous consent and S. 3013 passed the 
Senate by unanimous consent on October 1, 2008. S. 3013 was 
received in the House and referred to the Committee on 
Oversight and Government Reform, and in addition to the 
Committee on Veterans' Affairs, for a period to be subsequently 
determined by the speaker on October 2, 2008.

MEASURES REFERRED TO THE SUBCOMMITTEE UPON WHICH HEARINGS WERE HELD OR 
                   OTHER LEGISLATIVE ACTION WAS TAKEN

    H.R. 404--The Federal Customer Service Enhancement Act of 
2008 requires the Director of the Office of Management and 
Budget (OMB) to prescribe guidance that establishes best 
practices to: (1) ensure that Federal agencies are providing 
high quality customer service; and (2) monitor customer service 
quality at Federal agencies. H.R. 404 was introduced to the 
House of Representatives by Representative Cuellar on January 
11, 2007 and referred to the House Committee on Oversight and 
Government Reform. The bill was cosponsored by Representatives 
John R. Carter, John J. Duncan, Jr., Virginia Foxx, Bob 
Goodlatte and Thaddeus G. McCotter.
    H.R. 404 was further referred to the Subcommittee on 
Government Management, Organization and Procurement. After 
hearings on June 12, 2007, the House Committee on Oversight and 
Government Reform reported the bill out of committee with an 
amendment in the nature of a substitute by voice vote. After 
debate and tabling, H.R. 404 was passed by the House of 
Representatives on suspension of the rules by the Yeas and Nays 
on July 23, 2007. H.R. 404 was received in the Senate on July 
24, 2007 and referred to the Committee on Homeland Security and 
Governmental Affairs. The bill was further referred to the 
Subcommittee on Oversight of Government Management, the Federal 
Workforce, and the District of Columbia on August 22, 2007. On 
October 1, 2008, Senator Lieberman reported the bill to the 
Senate with an amendment in the nature of a substitute without 
a written report. H.R. 404 was placed on the Senate Legislative 
Calendar under General Orders (Calendar No. 1107).
    H.R. 3774--The Senior Executive Service Diversity Assurance 
Act requires the Director of the Office of Personnel Management 
(OPM) to establish within OPM the Senior Executive Service 
Resource Office to make recommendations to the Director with 
respect to regulations, and to provide guidance to agencies, 
concerning the structure, management, and diverse composition 
of the Senior Executive Service (SES). H.R. 3774 was introduced 
by Representative Danny Davis on October 9, 2007. 
Representatives William Lacy Clay, Steve Cohen, Elijah 
Cummings, Charles Gonzalez, Alcee Hastings, Ruben Hinojosa, 
Henry Johnson, Jr., Dennis Kucinich, Stephen Lynch, James 
Moran, Eleanor Holmes Norton, and John Sarbanes cosponsored the 
bill.
    H.R. 3774 was referred to the House Committee on Oversight 
and Government Reform and further referred to the Subcommittee 
on Federal Workforce, Post Office, and the District of Columbia 
on October 11, 2007. On April 3, 2008, The Senate Committee on 
Homeland Security and Governmental Affairs, Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia held hearings. The Subcommittee 
forwarded the bill to the Committee on Oversight and Government 
Reform by voice vote on April 15, 2008. The Full Committee held 
hearings and reported the bill to the House of Representatives 
with amendment by voice vote on May 1, 2008 (H. Rept. 110-672). 
The bill was placed on the Union Calendar (Calendar No. 423) on 
May 22, 2008 and passed the House of Representatives as amended 
by voice vote on June 3, 2008. H.R. 3774 was received in the 
Senate and referred to the Committee on Homeland Security and 
Governmental Affairs on Jun 4, 2008. The bill was further 
referred to Subcommittee on Oversight of Government Management, 
the Federal Workforce, and the District of Columbia on June 19, 
2008.
    S. 717--Indentification Security Enhancement Act of 2007 
repeals title II of the Real ID Act of 2005. S. 717 prohibits 
Federal agencies from accepting state-issued driver's licenses 
and personal identification cards after specified deadlines 
unless such identification conforms to the minimum standards 
promulgated under this Act. The bill further directs the 
Secretary of Homeland Security to: (1) establish by regulation 
minimum standards for acceptance of state-issued driver's 
licenses and personal identification cards by Federal agencies; 
(2) establish a negotiated rulemaking process before publishing 
such standards; and (3) award grants to states to assist them 
in conforming to such standards. Senator Akaka introduced the 
bill on February 28, 2007. S. 717 was cosponsored by Senators 
Alexander, Baucus, Kerry, Leahy, McCaskill, Sununu, and Tester. 
On introduction, S. 717 was referred to the Committee on the 
Judiciary. Committee on Homeland Security and Governmental 
Affairs Subcommittee on Oversight of Government Management, the 
Federal Workforce, and the District of Columbia held hearings 
on the bill on S. 717.
    S. 967--The Federal Supervisor Training Act of 2007 revises 
provisions relating to specific training programs for Federal 
agency supervisors. The bill requires the head of Federal 
agencies to establish training programs with instructor-based 
training to supervisors on employee development, managing 
unacceptable performance, employee rights and mentoring new 
supervisors. S. 967 was introduced into the Senate on March 22, 
2007 by Senator Akaka and referred to the Committee on Homeland 
Security and Governmental Affairs. The bill was further 
referred to the Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of Columbia 
on March 30, 2007. S. 967 was reported out of Committee by 
Senator Lieberman with amendments on October 1, 2008 (S. Rept. 
110-523). The bill was placed on the Senate Legislative 
Calendar under General Orders on October 1, 2008 (Calendar No. 
1100).
    S. 1000--The Telework Enhancement Act of 2007 requires the 
head of each executive agency to establish a policy for 
eligible employees to telework, notify them of their 
eligibility. S. 1000 mandates that the policy should not 
diminish employee performance, requires a written agreement to 
participate with terms of compliance, excludes employee's whose 
official duties require daily physical presence and the use of 
telework as part of the agency's continuity of operations in 
the event of an emergency. The bill establishes that the agency 
must have a training program regarding teleworking, make no 
distinctions between teleworkers and non-teleworkers for 
performance appraisals and consults with the Office of 
Personnel Management (OPM) regarding guidelines and performance 
metrics. S. 1000 was introduced by Senator Stevens on March 27, 
2007 with Senators Coleman, Landrieu, and Voinovich as 
cosponsors. The bill was referred to the Committee on Homeland 
Security and Governmental Affairs at introduction and further 
referred to the Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of Columbia 
on June 6, 2007. S. 1000 was reported to the Senate with an 
amendment in the nature of a substitute (S. Rept. 110-526) on 
October 1, 2008 and was placed on the Senate Legislative 
Calendar under General Orders (Calendar No. 1101).
    S. 1446--The National Capital Transportation Amendments Act 
of 2007 amends the National Capital Transportation Act of 1969 
to authorize the Secretary of Transportation to provide 
additional funding through grants to the Washington 
Metropolitan Area Transit Authority (WMATA) to finance in part 
the capital and preventive maintenance projects included in the 
Capital Improvement Program. S. 1446 subjects such grants to 
specified limitations and conditions. S. 1446 also prohibits 
funding to the WMATA until it notifies the Secretary that 
certain amendments to the Washington Metropolitan Area Transit 
Authority Compact have taken effect, including: (1) requiring 
that all local payments for the cost of operating and 
maintaining the adopted regional rail system are made from 
dedicated funding sources (i.e., funding which is earmarked or 
required under state or local law to be used to match Federal 
appropriations authorized under this Act for payments to the 
WMATA); (2) establishing the Office of the Inspector General of 
WMATA; and (3) expanding the WMATA Board of Directors to 
include four additional Directors appointed by the 
Administrator of General Services.
    S. 1446 further authorizes appropriations in increments 
over ten fiscal years beginning in FY 2009. Moreover, the bill 
establishes within WMATA the Office of Inspector General. 
Requires the Inspector General to make specified reports on 
Office activities: (1) semiannually, to the WMATA Board of 
Directors and General Manager who shall transmit reports to the 
appropriate committees or subcommittees of Congress; and (2) 
annually, to the Governors of Maryland and Virginia, the Mayor 
of the District of Columbia, and Congress. Finally, S. 1446 
requires the Comptroller General to study and report to 
Congress on the use of funds provided under this Act. S. 1446 
was introduced by Senator Cardin on May 22, 2007. Senator 
Lieberman reported the bill to the Senate on October 3, 2007 
without amendment (S. Rept. 110-188). S. 1446 was placed on the 
Senate Legislative Calendar under General Orders on the same 
day (Calendar No. 402).
    S. 1924--The Federal Firefighters Fairness Act of 2008 
establishes that specified diseases, including heart disease, 
lung disease, tuberculosis, hepatitis, human immunodeficiency 
virus, and specified cancers, of Federal employees in fire 
protection activities shall be presumed to be proximately 
caused by such employment; (2) the disability or death of such 
an employee due to such a disease shall be presumed to result 
from personal injury sustained while in the performance of 
duty; and (3) such presumptions may be rebutted by a 
preponderance of the evidence. S. 1924 was introduced in the 
Senate by Senator Carper on August 1, 2007. Senators Bingaman, 
Brown, Cantwell, Casey, Collins, Dodd, Durbin, Isakson, 
Kennedy, Kerry, Landrieu, Lieberman, McCaskill, Menendez, 
Murray, Sanders, Snowe, Warner and Whitehouse cosponsored the 
bill. The bill was referred to the Committee on Homeland 
Security and Governmental Affairs on August 1, 2007 and further 
referred to the Subcommittee on Oversight of Government 
Management, the Federal Workforce and the District of Columbia 
on August 22, 2007. Senator Lieberman reported the bill to the 
Senate with an amendment in the nature of a substitute on 
October 1, 2008 (S. Rept. 110-520) and it was placed on the 
Senate Legislative Calendar under General Orders (Calendar No. 
1102).
    S. 2148--The Senior Executive Service Diversity Assurance 
Act requires the Director of the Office of Personnel Management 
(OPM) to establish within OPM the Senior Executive Service 
Resource Office to make recommendations to the Director with 
respect to regulations, and to provide guidance to agencies, 
concerning the structure, management, and diverse composition 
of the Senior Executive Service (SES). S. 2148 was introduced 
by Senator Akaka on October 4, 2007 and referred to the 
Committee on Homeland Security and Governmental Affairs on 
October 4, 2007 and further referred to the Subcommittee on 
Oversight of Government Management, the Federal Workforce and 
the District of Columbia on October 18, 2007. The Subcommittee 
on Oversight of Government Management, the Federal Workforce 
and the District of Columbia held hearings on April 3, 2008. 
Senator Lieberman reported the bill out of the Full Committee 
to the Senate on October 1, 2008 (S. Rept. 110-517). S. 2148 
was placed on the Senate Legislative Calendar under General 
Orders (Calendar No. 1108).

     MEASURES WHICH DID NOT ADVANCE BEYOND REFERRAL TO SUBCOMMITTEE

    H.R. 985--The Whistleblower Protection Enhancement Act of 
2007 expands the types of whistleblower disclosures protected 
from personnel reprisals to include disclosures without 
restriction as to time, place, form, motive, context, forum, or 
prior disclosures made to any person by an employee or 
applicant for employment, including a disclosure made in the 
ordinary course of an employee's duties, that the employee or 
applicant reasonably believes is a violation of any law. H.R. 
985 was introduced by Representative Henry Waxman on February 
12, 2007. Representatives Gary Ackerman, Thomas Allen, Howard 
Berman, Bruce Braley, William Lacy Clay, John Conyers, Jr., Jim 
Cooper, Elijah Cummings, Danny Davis, Tom Davis, Keith Ellison, 
Steve Israel, Paul Kanjorski, Dennis Kucinich, Zoe Lofgren, 
Carolyn Maloney, Betty McCollum, John McHugh, George Miller, 
Christopher Murphy, Jerrold Nadler, Eleanor Holmes Norton, Todd 
Platts, Allyson Schwartz, Christopher Shays, Chris Van Hollen, 
Diane Watson, Peter Welch, and John Yarmuth cosponsored the 
bill. H.R. 985 was referred to the Committee on Oversight and 
Government Reform and the Committee on Armed Services on 
February 2, 2007. The Committee on Oversight and Government 
Management held hearings and reported the bill with amendment 
to the House of Representatives by the Yeas and Nays on 
February 14, 2007 (H. Rept. 110-42). The Committee on Armed 
Services referred H.R. 985 to the Subcommittee on Readiness on 
February 14, 2007. The Committee on Armed Services discharged 
the bill on March 9, 2007, at which time it was placed on the 
Union Calendar (Calendar No. 18). On March 12, 2007, 
Representative John Tierney received unanimous consent that the 
Committee on Oversight and Government Reform could submit a 
supplemental report (H. Rept. 110-42, Part II). H.R. 985 passed 
the House of Representatives by the Yeas and Nays on special 
rules (H. Res. 239). H.R. 985 was received in the Senate and 
referred to the Committee on Homeland Security and Governmental 
Affairs and further referred to Subcommittee on Oversight of 
Government Management, the Federal Workforce, and the District 
of Columbia on June 6, 2007.
    H.R. 4106--Telework Improvements Act of 2008 requires: (1) 
the head of each executive agency to establish a policy under 
which employees may be authorized to telework; (2) such 
policies to conform to telework regulations prescribed by the 
Administrator of General Services; and (3) such policies to 
ensure that all employees are authorized to telework to the 
maximum extent possible and without diminishing employee 
performance or agency operations. H.R. 4106 was introduced in 
the House of Representatives by Danny Davis on November 7, 
2007. Representatives William Lacy Clay, Elijah Cummings, Tom 
Davis, Stephen Lynch, James Moran, Eleanor Holmes Norton, John 
Sarbanes, Henry Waxman, and Frank Wolf cosponsored the bill. 
H.R. 4106 was referred to the House Committee on Oversight and 
Government Reform on November 7, 2007 and further referred to 
the Subcommittee on Federal Workforce, Post Office, and the 
District of Columbia on November 14, 2007. The Subcommittee 
held hearings and forwarded the bill to the Full Committee with 
amendment by voice vote on February 28, 2008. The Committee on 
Oversight and Government Reform held hearings on March 13, 2008 
and reported the bill to the House of Representatives as 
amended by voice vote on March 13, 2008. H.R. 4106 was reported 
by the Committee on Oversight and Government Report (H Rept. 
110-663) and placed on the Union Calendar on May 21, 2008 
(Calendar No 416). H.R. 4106 passed the House of 
Representatives as amended by voice vote under suspension of 
the rules on June 3, 2008. On June 4, 2008, H.R. 4106 was 
received in the Senate and referred to the Committee on 
Homeland Security and Governmental Affairs. On Jun 19, 2008, 
the Committee referred H.R. 4106 to the Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia.
    H.R. 4108--This bill requires the Office of Personnel 
Management (OPM) to provide regulations governing 
determinations of ineligibility for appointment to a position 
in an executive agency because of deliberate failure to 
register with the selective service to provide exceptions for: 
(1) the appointment of an individual who was discharged or 
released from active duty in the armed forces under honorable 
conditions; and (2) the appointment or continued employment of 
an individual who has reached 31 years of age. Representative 
George Miller introduced H.R. 4108 in the House of 
Representatives on November 7, 2007. Representative Darrell 
Issa cosponsored the bill. The bill was referred to the House 
Committee on Oversight and Government Reform. The Committee 
held hearings and reported H.R. 4108 to the House of 
Representatives by voice vote on November 8, 2007 (H. Rept. 
110-479). The bill was placed on the Union Calendar (Calendar 
No. 295) on December 10, 2007 and agreed to with amendment 
under suspension of the rules by voice vote on December 11, 
2007. H.R. 4108 was received in the Senate and referred to the 
Senate Committee on Homeland Security and Governmental Affairs 
on December 12, 2007. On February 27, 2008, the bill was 
further referred to the Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of 
Columbia.
    H.R. 5781--The Federal Employees Paid Parental Leave Act of 
2008 allows Federal employees to substitute any available paid 
leave for any leave without pay available for either the: (1) 
birth of a child; or (2) placement of a child with the employee 
for either adoption or foster care. Makes available for any of 
the 12 weeks of leave an employee is entitled to for such 
purposes: (1) four administrative weeks of paid parental leave 
in connection with the birth or placement involved; and (2) any 
accumulated annual or sick leave. Representative Carolyn 
Maloney introduced the bill to the House of Representatives on 
April 14, 2008. Representatives Howard Berman, Elijah Cummings, 
Danny Davis, Tom Davis, Rosa DeLauro, Keith Ellison, Chaka 
Fattah, Bob Filner, Kirsten Gillibrand, Al Green, Steny Hoyer, 
Dennis Kucinich, John Lewis, Betty McCollum, George Miller, 
James Moran, John Sanbanes, Janice Schakowsky, Jose Serrano, 
Chris Van Hollen, and Lynn Woolsey. H.R. 5781 was referred to 
the Committee on Oversight and Government Reform and the 
Committee on House Administration. The Committee on Oversight 
and Government Reform referred the bill to the Subcommittee on 
Federal Workforce, Post Office, and the District of Columbia on 
April 15, 2008, which held hearings on April 16, 2008 and 
forwarded the bill back to the Full Committee. The Committee on 
Oversight and Government Reform held hearings and reported the 
bill to the House of Representatives by the Yeas and Nays on 
April 16, 2008 (H. Rept. 110-624). House Administration 
discharged H.R. 5781 on May 8, 2008 and was placed on the Union 
Calendar (Calender No. 389). The Committee on Oversight and 
Government Reform filed a supplemental report on June 17, 2008 
(H. Rept. 110-624, Part II). H.R. 5781 passed the House by the 
Yeas and Nays on June 19, 2008). On June 20, 2008, H.R. 5781 
was received in the Senate and was referred to the Committee on 
Homeland Security and Governmental Affairs. The bill was 
further referred to the Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of 
Columbia.
    S. 61--Clinical Social Workers' Recognition Act of 2007 
amends Federal law concerning Federal workers' compensation to 
authorize the use of clinical social workers to conduct 
evaluations to determine work-related emotional and mental 
illnesses. S. 61 was introduced by Senator Inouye on January 4, 
2007 and referred to the Committee on Homeland Security and 
Governmental Affairs. On March 30, 2007, the bill was further 
referred to the Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of 
Columbia.
    S. 80--Executive Branch Family Leave Act entitles a Federal 
employee of the executive branch to paid leave of: (1) eight 
weeks for giving birth; (2) at least five days for a father for 
the birth of a child; (3) at least five days for adopting a 
child; and (4) eight hours during any 12-month period to 
accompany a child to medical or school appointments. Senator 
Stevens introduced the bill on January 4, 2007 with Senators 
Collins, Hutchinson, Inouye, and Murkowski as cosponsors. The 
bill was referred to the Committee on Homeland Security and 
Governmental Affairs at introduction and further referred to 
the Subcommittee on Oversight of Government Management, the 
Federal Workforce, and the District of Columbia on March 30, 
2007.
    S. 920--Rhode Island Federal Worker Fairness Act of 2007 
states that the wage schedules and rates applicable to 
prevailing rate employees in the Narragansett Bay, Rhode 
Island, wage area shall be the same as the wage schedules and 
rates applicable to prevailing rate employees in the Boston, 
Massachusetts, wage area. Senator Reed, with Senator Whitehouse 
as a cosponsor, introduced S. 920 on March 20, 2007. On the day 
of introduction, S. 920 was referred to the Committee on 
Homeland Security and Government Affairs. On March 30, 2007, 
the Committee referred the bill to the Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia.
    S. 960--Public Service Academy Act of 2007 establishes in 
the Department of Homeland Security (DHS) a U.S. Public Service 
Academy for the instruction in and preparation for public 
service of selected individuals. Sets forth provisions relating 
to: (1) key personnel positions and faculty and departments; 
(2) student qualifications and requirements for admission; (3) 
procedures for the appointment of students to the Academy by 
Members of Congress and the President; (4) curriculum 
standards; and (5) study abroad requirements. S. 960 requires 
each Academy student to sign an agreement with respect to 
length of public service. Imposes tuition and cost repayment 
requirements for Academy students who fail to graduate or 
accept or complete assigned public service. The bill also 
establishes a Board of Visitors to inquire into the efficiency 
and effectiveness of the operations of the Academy. The bill 
further requires the tuition of each Academy student to be 
fully subsidized. Finally, S. 960 provides for public (80 
percent) and private funding for the Academy. The bill was 
introduced on March 22, 2007 by Senator Clinton. Senators 
Baucus, Bayh, Biden, Boxer, Brown, Cantwell, Cardin, Casey, 
Coleman, Hutchinson, Inouye, Kennedy, Landrieu, Lautenberg, 
Levin, Lincoln, Menendez, Mikulski, Murray, Pryor, Rockefeller, 
Specter and Stabenow cosponsored the bill. The bill was 
referred to the Committee on Homeland Security and Governmental 
Affairs and, on March 30, 2007, referred to the Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia.
    S. 1045--Federal Workforce Performance Appraisal and 
Management Improvement Act of 2007 revises provisions relating 
to the establishment of performance appraisal systems by 
certain Federal agencies. The bill requires agencies to 
establish one or more new performance appraisal systems to 
promote high performance. S. 1045 also revises provisions 
relating to the responsibilities of the Office of Personnel 
Management (OPM) for the development of performance appraisal 
systems. S. 1045 further revises provisions relating to 
specific mandatory training programs for supervisors. Finally, 
S. 1045 revises provisions relating to Federal employee pay 
rates and systems with respect to employees, whose performance 
rating is below the fully successful level to, among other 
things, prohibit a pay increase for such employees. The bill 
was introduced by Senator Voinovich on March 29, 2007 and 
referred to the Committee on Homeland Security and Governmental 
Affairs. The bill was further referred to the Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia on June 6, 2007.
    S. 1221--Countdown to Coverage Act of 2007 provides that if 
legislation ensuring accessible, affordable, and meaningful 
health insurance for all Americans is not enacted before the 
adjournment sine die of the 111th Congress: (1) Federal 
contributions under the Federal Employees Health Benefits 
(FEHB) Program for Members of Congress shall be prohibited; and 
(2) Members shall pay 100 percent of all premiums for such 
Programs. The bill also requires the Institute of Medicine to 
notify the Office of Personnel Management (OPM), the Secretary 
of the Senate, and the Chief Administrative Officer (CAO) of 
the House of Representatives: (1) that such legislation has not 
been enacted, if it has not been; and (2) the dates and 
adjustments required to take effect under this Act. S. 1221 
further requires, upon receipt of such notice, OPM, the 
Secretary, and the CAO to make such adjustments. The bill was 
introduced on April 25, 2007 by Senator Kerry and referred to 
the Committee on Homeland Security and Governmental Affairs. S. 
1221 was further referred to the Subcommittee on Oversight of 
Government Management, the Federal Workforce, and the District 
of Columbia on June 6, 2007.
    S. 1345--Clarification of Federal Employment Protections 
Act repudiates, in order to dispel any public confusion, any 
assertion that Federal employees are not protected from 
discrimination on the basis of sexual orientation. S. 1345 
prohibits any Federal employee who has authority to take, 
direct others to take, recommend, or approve any personnel 
action, from discriminating for or against any Federal employee 
or applicant for Federal employment on the basis of sexual 
orientation. The bill further affirms that, in the absence of 
such prohibition, discrimination against Federal employees and 
applicants for Federal employment on the basis of sexual 
orientation is already prohibited under current law. Senator 
Akaka introduced the bill on May 9, 2007 with Senators Brown, 
Clinton, Collins, Feingold, Leahy, Levin, and Lieberman as 
cosponsors. On introduction S. 1345 was referred to the 
Committee on Homeland Security and Governmental Affairs. Then, 
further referred to the Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of Columbia 
on June 6, 2007.
    S. 1354--Law Enforcement Officers Retirement Equity Act 
redefines the term ``law enforcement officer'' under provisions 
of the Federal Employees Retirement System (FERS) and the Civil 
Service Retirement System (CSRS) to include: (1) Federal 
employees not otherwise covered by such term whose duties 
include the investigation or apprehension of suspected or 
convicted individuals and who are authorized to carry a 
firearm; and (2) such employees of the Internal Revenue Service 
(IRS) whose duties are primarily the collection of delinquent 
taxes and the securing of delinquent returns. S. 1354 also 
requires that such service which is performed by an incumbent 
law enforcement officer be treated: (1) on or after the 
enactment date of this Act, for all purposes, as service 
performed as a law enforcement officer, irrespective of how 
such service is treated under the following; and (2) before, 
on, or after such date, for purposes of CSRS and FERS, as 
service performed as such an officer, but only if an 
appropriate written election is submitted to the Office of 
Personnel Management (OPM) five years after such date or before 
separation from government service, whichever is earlier. 
Senator Mikulski introduced S. 1354 on May 10, 2007 with 
Senators Boxer, Cardin, Clinton, Feinstein, Leahy, Sanders, and 
Schumer as cosponsors. S. 1354 was referred to the Committee on 
Homeland Security and Governmental Affairs on introduction and 
then referred to the Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of Columbia 
on June 6. 2007.
    S. 1357--A bill to amend the Law Enforcement Pay Equity Act 
of 2000 to permit certain annuitants of the retirement programs 
of the United States Park Police and United States Secret 
Service Uniformed Division to receive the adjustments in 
pension benefits to which such annuitants would otherwise be 
entitled as a result of the conversion of members of the United 
States Park Police and United Sates Secret Service Uniformed 
Division to a new salary schedule under the amendments made by 
such Act. (Thus permits cost-of-living adjustments in pension 
benefits for annuitants of the U.S. Park Police and the U.S. 
Secret Service Uniformed Division for payments made in 2007 and 
in subsequent years.) Senator Mikulski introduced the bill on 
May 10, 2007 with Senators Warner and Webb as cosponsored. On 
May 10, 2007, the bill was referred to the Committee on 
Homeland Security and Governmental Affairs. S. 1357 was further 
referred to the Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of Columbia 
on June 6, 2007.
    S. 1456--The Federal Employees Electronic Personal Health 
Records Act of 2007 amends Federal civil service law to require 
each contract between the Office of Personnel Management (OPM) 
and a qualified carrier offering a health benefit plan for 
Federal employees to provide for establishment and maintenance 
of electronic personal health records for each individual and 
family member enrolled in the plan. S. 1456 further requires 
such records to be: (1) in a standard electronic format, 
available for electronic access through the Internet; and (2) 
based on the Federal messaging and health vocabulary standards 
endorsed by the Office of the National Coordinator for Health 
Information Technology, the American Health Information 
Community, or the Secretary of Health and Human Services. The 
bill was introduced on May 23, 2007 by Senator Carper and 
cosponsored by Senator Voinovich. On introduction, S. 1456 was 
referred to the Committee on Homeland Security and Governmental 
Affairs. S. 1456 was further referred to the Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia on June 6, 2007.
    S. 1490--Federal Employees Electronic Personal Health 
Records Act of 2007 amends Federal civil service law to require 
each contract between the Office of Personnel Management (OPM) 
and a qualified carrier offering a health benefit plan for 
Federal employees to provide for establishment and maintenance 
of electronic personal health records for each individual and 
family member enrolled in the plan. S. 1490 further requires 
such records to be: (1) in a standard electronic format, 
available for electronic access through the Internet; and (2) 
based on the Federal messaging and health vocabulary standards 
endorsed by the Office of the National Coordinator for Health 
Information Technology, the American Health Information 
Community, or the Secretary of Health and Human Services. The 
bill was introduced on May 24, 2007 by Senator Carper and 
cosponsored by Senator Voinovich. On introduction, S. 1456 was 
referred to the Committee on Homeland Security and Governmental 
Affairs. S. 1456 was further referred to the Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia on June 6, 2007.
    S. 1649--Military Family Support Act of 2007 directs the 
Office of Personnel Management (OPM) to establish a program to 
authorize a caregiver (a Federal employee at least 21 years of 
age capable of providing care to a child or other dependent 
family member of a member of the Armed Forces) to use: (1) any 
available sick leave for the provision of such care in the same 
manner as annual leave is used; and (2) any Federal leave 
available to that caregiver as though that period of caregiving 
is a medical emergency. Requires the service member for whom 
the caregiving is provided to be performing service in support 
of a contingency operation or in situations for which hostile 
fire or imminent danger pay is authorized and to designate the 
caregiver for his or her family. On June 19, 2007, Senator 
Feingold introduced S. 1649 with Senators Casey, Coleman, 
Kennedy, and Mikulski as cosponsors. On introduction, S. 1649 
was referred to the Committee on Homeland Security and 
Governmental Affairs. S. 1649 was further referred to the 
Subcommittee on Oversight of Government Management, the Federal 
Workforce, and the District of Columbia on July 13, 2007.
    S. 1795--The Improving Access to Workers' Compensation for 
Injured Federal Workers Act amends the Federal Employees' 
Compensation Act to include nurse practitioners and physician 
assistants as eligible providers of medical, surgical, and 
hospital services and supplies under such Act. Senator Kennedy 
introduced the S. 1795 on July 17, 2007. The bill was 
cosponsored by Senators Collins, Craig, Harkin, Isakson, 
Murkowski, Sanders, Sununu, Tester, and Whitehouse. On 
introduction, S. 1795 was referred to the Committee on Homeland 
Security and Governmental Affairs. S. 1795 was further referred 
to the Subcommittee on Oversight of Government Management, the 
Federal Workforce, and the District of Columbia on August 22, 
2007.
    S. 2003--A bill to facilitate the part-time reemployment of 
annuitants, and for other purposes. S. 2003 allows a Federal 
agency head to waive the application of civil service 
retirement system and Federal employee retirement system 
provisions restricting annuities and pay upon reemployment with 
respect to an annuitant employed as a limited time appointee, 
but prohibits waiving such provisions with respect to an 
annuitant for more than: (1) 520 hours of service performed 
during the six months following the individual's annuity 
commencing date; (2) 1040 hours of service performed during any 
12-month period; or (3) 6240 hours of service performed during 
the individual's lifetime. Senator Collins introduced S. 2003 
on August 2, 2007. Senators Voinovich and Warner cosponsored 
the bill. On introduction, S. 2003 was referred to the 
Committee on Homeland Security and Governmental Affairs. S. 
2003 was further referred to the Subcommittee on Oversight of 
Government Management, the Federal Workforce, and the District 
of Columbia on August 22, 2007.
    S. 2197--The Federal Labor-Management Partnership Act of 
2007 establishes the Federal Labor-Management Partnership 
Council to advise the President on matters involving labor-
management relations in the executive branch. Includes among 
the Council's activities: (1) supporting the creation of local 
labor-management partnership councils that promote partnership 
efforts; (2) collecting and disseminating information about and 
providing guidance on such efforts; (3) using the expertise of 
individuals, inside and outside the Federal Government, to 
foster partnership arrangements in the executive branch; and 
(4) proposing statutory changes to improve the civil service to 
better serve the public and carry out the mission of the 
various agencies. Senator Akaka introduced S. 2197 on October 
18, 2007 with Senators Carper and Clinton as cosponsors. On 
introduction, S. 2197 was referred to the Committee on Homeland 
Security and Governmental Affairs. S. 2197 was further referred 
to the Subcommittee on Oversight of Government Management, the 
Federal Workforce, and the District of Columbia on December 12, 
2007.
    S. 2446--The Citizenship Processing Backlog Reduction Act 
of 2007 authorizes the Secretary of Homeland Security to waive 
the application of provisions relating to annuities and pay on 
reemployment or any similar legal provision under a government 
retirement system on a case-by-case basis for an annuitant 
reemployed on a temporary basis if: (1) such waiver is 
necessary due to an emergency involving a direct threat to life 
or property or other unusual circumstances; or (2) the 
annuitant is employed in a position that provides assistance to 
the Secretary with a substantial backlog of naturalization 
petitions or assistance for processing petitions filed from 
January 31-July 30, 2007. S. 2446 further provides that an 
annuitant as to whom such a waiver is in effect shall not be 
considered an employee for purposes of any government 
retirement system. Senator Schumer introduced S. 2446 on 
December 11, 2007 with Senator Hagel as cosponsor. On 
introduction, S. 2446 was referred to the Committee on Homeland 
Security and Governmental Affairs. S. 2446 was further referred 
to the Subcommittee on Oversight of Government Management, the 
Federal Workforce, and the District of Columbia on February 27, 
2008.
    S. 3140--The Federal Employees Paid Parental Leave Act of 
2008 allows Federal employees to substitute any available paid 
leave for any leave without pay available for either the: (1) 
birth of a child; or (2) placement of a child with the employee 
for either adoption or foster care. The bill also makes 
available for any of the 12 weeks of leave an employee is 
entitled to for such purposes: (1) four administrative weeks of 
paid parental leave in connection with the birth or placement 
involved; and (2) any accumulated annual or sick leave. S. 3140 
further authorizes the Director of the Office of Personnel 
Management (OPM) to increase the amount of paid parental leave 
available to up to eight administrative workweeks, based on the 
consideration of: (1) the benefits provided to the Federal 
Government of offering increased paid parental leave, including 
enhanced recruitment and retention of employees; (2) the cost 
to the Federal Government of increasing the amount of paid 
parental leave that is available to employees; (3) trends in 
the private sector and in state and local governments with 
respect to offering paid parental leave; and (4) the Federal 
Government's role as a model employer. S. 3140 amends the 
Congressional Accountability Act of 1995 to allow the same 
substitution for covered congressional employees. The bill also 
amends the Family and Medical Leave Act of 1993 to allow the 
same substitution for Government Accountability Office (GAO) 
and Library of Congress employees. Senator Webb introduced S. 
3140 on June 16, 2008. Senators Cardin, Casey, Clinton, Durbin, 
Inouye, Kerry, Lautenberg, Lieberman, McCaskill, Menendez, 
Mikulski, Obama, Sanders, Schumer, Stabenow, Tester, and Warner 
cosponsored the bill. On introduction, S. 3160 was referred to 
the Committee on Homeland Security and Governmental Affairs. S. 
3140 was further referred to the Subcommittee on Oversight of 
Government Management, the Federal Workforce, and the District 
of Columbia on July 21, 2008.
    S. 3163--The Military Family Support Act directs the Office 
of Personnel Management (OPM) to establish a program to 
authorize a caregiver (a Federal employee at least 18 years of 
age capable of providing care to a child or other dependent 
family member of a member of the Armed Forces) to use: (1) any 
available sick leave for the provision of such care in the same 
manner as annual leave is used; and (2) any Federal leave 
available to that caregiver as though that period of caregiving 
is a medical emergency. S. 3163 further requires the program 
to: (1) provide a process for reasonable notice of the need for 
leave; and (2) protect employees from discrimination or 
retaliation for the use of leave under this Act and provide the 
opportunity to appeal a denial of its use. The bill also 
requires the service member for whom the caregiving is provided 
to be performing service in support of a contingency operation 
or in situations for which hostile fire or imminent danger pay 
is authorized and to designate the caregiver for his or her 
family. Senator Feingold introduced the bill on June 19, 2008 
with Senator Casey as a cosponsor. On introduction, S. 3163 was 
referred to the Committee on Homeland Security and Governmental 
Affairs. S. 3163 was further referred to the Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia on July 21, 2008.

                            III. GAO Reports

    The following reports were issued by the Government 
Accountability Office at the request of the Chairman/Ranking 
Member of the Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of Columbia 
during the 110th Congress:
    Human Capital: Diversity in the Federal SES and Processes 
for Selecting New Executives, GAO-09-110 (11/26/2008)
    Results Oriented Management: Opportunities Exist for 
Refining the Oversight and Implementation of the Senior 
Executive Performance-Based Pay System, GAO-09-82 (11/21/2008)
    Department of Homeland Security: A Strategic Approach Is 
Needed to Better Ensure the Acquisition Workforce Can Meet 
Mission Needs, GAO-09-30 (11/19/2008)
    Confirmation of Political Appointees: Eliciting Nominees' 
Views on Management Challenges within Agencies and across 
Government, GAO-09-194 (11/17/2008)
    Health Information Technology: HHS Has Taken Important 
Steps to Address Privacy Principles and Challenges, Although 
More Work Remains, GAO-08-1138 (09/17/2008)
    Information Sharing Environment: Definition of the Results 
to Be Achieved in Improving Terrorism-Related Information 
Sharing Is Needed to Guide Implementation and Assess Progress, 
GAO-08-492 (06/25/2008)
    Influenza Pandemic: Federal Agencies Should Continue to 
Assist States to Address Gaps in Pandemic Planning, GAO-08-539 
(06/19/2008)
    Homeland Security: The Federal Protective Service Faces 
Several Challenges That Hamper Its Ability to Protect Federal 
Facilities, GAO-08-683 (06/11/2008)
    Privacy: Agencies Should Ensure That Designated Senior 
Officials Have Oversight of Key Functions, GAO-08-603 (05/30/
2008)
    International Food Security: Insufficient Efforts by Host 
Governments and Donors Threaten Progress to Halve Hunger in 
Sub-Saharan Africa by 2015, GAO-08-680 (05/29/2008)
    Centers for Disease Control and Prevention: Human Capital 
Planning Has Improved, but Strategic View of Contractor 
Workforce Is Needed, GAO-08-582 (05/28/2008)
    Federal Disability Programs: More Strategic Coordination 
Could Help Overcome Challenges to Needed Transformation, GAO-
08-635 (05/20/2008)
    Human Capital: Corps of Engineers Needs to Update Its 
Workforce Planning Process to More Effectively Address Its 
Current and Future Workforce Needs, GAO-08-596 (05/07/2008)
    Department of Homeland Security: Better Planning and 
Assessment Needed to Improve Outcomes for Complex Service 
Acquisitions, GAO-08-263 (04/22/2008)
    Intellectual Property: Federal Enforcement Has Generally 
Increased, but Assessing Performance Could Strengthen Law 
Enforcement Efforts, GAO-08-157 (03/11/2008)
    Federal Workers' Compensation: Better Data and Management 
Strategies Would Strengthen Efforts to Prevent and Address 
Improper Payments, GAO-08-284 (02/26/2008)
    Supplemental Appropriations: Opportunities Exist to 
Increase Transparency and Provide Additional Controls, GAO-08-
314 (01/31/2008)
    Influenza Pandemic: Efforts Under Way to Address 
Constraints on Using Antivirals and Vaccines to Forestall a 
Pandemic, GAO-08-92 (12/21/2007)
    Border Security: Despite Progress, Weaknesses in Traveler 
Inspections Exist at Our Nation's Ports of Entry, GAO-08-219 
(11/05/2007)
    Organizational Transformation: Implementing Chief Operating 
Officer/Chief Management Officer Positions in Federal Agencies, 
GAO-08-34 (11/01/2007)
    Office of Personnel Management: Opportunities Exist to 
Build on Recent Progress in Internal Human Capital Capacity, 
GAO-08-11 (10/31/2007)
    Homeland Security: Federal Efforts Are Helping to Alleviate 
Some Challenges Encountered by State and Local Information 
Fusion Centers, GAO-08-35 (10/30/2007)
    Global Health: U.S. Agencies Support Programs to Build 
Overseas Capacity for Infectious Disease Surveillance, GAO-07-
1186 (09/28/2007)
    Department of Homeland Security: Improved Assessment and 
Oversight Needed to Manage Risk of Contracting for Selected 
Services, GAO-07-990 (09/17/2007)
    Defense Business Transformation: Achieving Success Requires 
a Chief Management Officer to Provide Focus and Sustained 
Leadership, GAO-07-1072 (09/05/2007)
    NASA: Progress Made on Strategic Human Capital Management, 
but Future Program Challenges Remain, GAO-07-1004 (08/08/2007)
    Defense Contract Management: DOD's Lack of Adherence to Key 
Contracting Principles on Iraq Oil Contract Put Government 
Interests at Risk, GAO-07-839 (07/31/2007)
    Military Personnel: Improved Quality Controls Needed over 
Servicemembers' Employment Rights Claims at DOL, GAO-07-907 
(07/20/2007)
    Human Capital: DOD Needs Better Internal Controls and 
Visibility over Costs for Implementing Its National Security 
Personnel System, GAO-07-851 (07/16/2007)
    Defense Logistics: Efforts to Improve Distribution and 
Supply Support for Joint Military Operations Could Benefit from 
a Coordinated Management Approach, GAO-07-807 (06/29/2007)
    Influenza Pandemic: Efforts to Forestall Onset Are Under 
Way; Identifying Countries at Greatest Risk Entails Challenges, 
GAO-07-604 (06/20/2007)
    Avian Influenza: USDA Has Taken Important Steps to Prepare 
for Outbreaks, but Better Planning Could Improve Response, GAO-
07-652 (06/11/2007)
    The Federal Workforce: Additional Steps Needed to Take 
Advantage of Federal Executive Boards' Ability to Contribute to 
Emergency Operations, GAO-07-515 (05/04/2007)
    Intellectual Property: Better Data Analysis and Integration 
Could Help U.S. Customs and Border Protection Improve Border 
Enforcement Efforts, GAO-07-735 (04/26/2007)
    Nuclear Nonproliferation: DOE's International Radiological 
Threat Reduction Program Needs to Focus Future Efforts on 
Securing the Highest Priority Radiological Sources, GAO-07-282 
(01/31/2007)
    Office of Personnel Management: Key Lessons Learned to Date 
for Strengthening Capacity to Lead and Implement Human Capital 
Reforms, GAO-07-90 (01/19/2007)
    DOD's High-Risk Areas: Progress Made Implementing Supply 
Chain Management Recommendations, but Full Extent of 
Improvement Unknown, GAO-07-234 (01/17/2007)
    Human Capital: Retirements and Anticipated New Reactor 
Applications Will Challenge NRC's Workforce, GAO-07-105 (01/17/
2007)
    Health Information Technology: Early Efforts Initiated but 
Comprehensive Privacy Approach Needed for National Strategy, 
GAO-07-238 (01/10/2007)
                PERMANENT SUBCOMMITTEE ON INVESTIGATIONS

                          Chairman: Carl Levin

                  Ranking Minority Member: Tom Coburn

    The following is the Activities Report of the Permanent 
Subcommittee on Investigations during the 110th Congress:

                        I. Historical Background

                      A. Subcommittee Jurisdiction

    The Permanent Subcommittee on Investigations was originally 
authorized by Senate Resolution 189 on January 28, 1948. At its 
creation in 1948, the Subcommittee was part of the Committee on 
Expenditures in the Executive Departments. The Subcommittee's 
records and broad investigative jurisdiction over government 
operations and national security issues, however, actually 
antedate its creation, since it was given custody of the 
jurisdiction of the former Special Committee to Investigate the 
National Defense Program (the so-called ``War Investigating 
Committee'' or ``Truman Committee''), chaired by Senator Harry 
S Truman during the Second World War. Today, the Subcommittee 
is part of the Committee on Homeland Security and Governmental 
Affairs.\1\
---------------------------------------------------------------------------
    \1\In 1952, the parent committee's name was changed to the 
Committee on Government Operations. It was changed again in early 1977, 
to the Committee on Governmental Affairs, and again in 2005, to the 
Committee on Homeland Security and Governmental Affairs, its present 
title.
---------------------------------------------------------------------------
    The Subcommittee has had 10 Chairmen: Senators Homer 
Ferguson of Michigan (1948), Clyde R. Hoey of North Carolina 
(1949-1952), Joseph R. McCarthy of Wisconsin (1953-1954), John 
L. McClellan of Arkansas (1955-1972), Henry M. Jackson of 
Washington (1973-1978), Sam Nunn of Georgia (1979-1980 and 
1987-1994), William V. Roth of Delaware (1981-1986 and 1995-
1996), Susan M. Collins of Maine (1997-2001); Carl Levin of 
Michigan (2001-2002); and Norm Coleman of Minnesota (2003-
present).
    Until 1957, the Subcommittee's jurisdiction focused 
principally on waste, inefficiency, impropriety, and illegality 
in government operations. Its jurisdiction has expanded 
considerably since then, however, today encompassing 
investigations within the broad ambit of the parent committee's 
responsibility for matters relating to the efficiency and 
economy of operations of all branches of the government, 
including matters related to: (a) waste, fraud, abuse, 
malfeasance, and unethical practices in government contracting 
and operations; (b) criminality or improper practices in labor-
management relations; (c) organized criminal activities 
affecting interstate or international commerce; (d) criminal 
activity affecting the national health, welfare, or safety, 
including investment fraud, commodity and securities fraud, 
computer fraud, and use of offshore banking and corporate 
facilities to carry out criminal objectives; (e) the 
effectiveness of present national security methods, staffing 
and procedures, and U.S. relationships with international 
organizations concerned with national security; (f) energy 
shortages, energy pricing, management of government-owned or 
controlled energy supplies; and relationships with oil 
producing and consuming countries; and (g) the operations and 
management of Federal regulatory policies and programs. While 
technically reduced to a subcommittee of a standing committee, 
the Subcommittee has long exercised its authority on an 
independent basis, selecting its own staff, issuing its own 
subpoenas, and determining its own investigatory agenda.
    The Subcommittee acquired its sweeping jurisdiction in 
several successive stages. In 1957--based on information 
developed by the Subcommittee--the Senate passed a Resolution 
establishing a Select Committee on Improper Activities in the 
Labor or Management Field. Chaired by Senator McClellan, who 
also chaired the Subcommittee at that time, the Select 
Committee was composed of eight Senators--four of whom were 
drawn from the Subcommittee on Investigations and four from the 
Committee on Labor and Public Welfare. The Select Committee 
operated for 3 years, sharing office space, personnel, and 
other facilities with the Permanent Subcommittee. Upon its 
expiration in early 1960, the Select Committee's jurisdiction 
and files were transferred to the Subcommittee on 
Investigations, greatly enlarging the latter body's 
investigative authority in the labor-management area.
    The Subcommittee's jurisdiction expanded further during the 
1960s and 1970s. In 1961, for example, it received authority to 
make inquiries into matters pertaining to organized crime and, 
in 1963, held the famous Valachi hearings described below, 
examining the inner workings of the Italian Mafia. In 1967, 
following a summer of riots and other civil disturbances, the 
Senate approved a Resolution directing the Subcommittee to 
investigate the causes of this disorder and to recommend 
corrective action. In January 1973, the Subcommittee acquired 
its national security mandate when it merged with the National 
Security Subcommittee. With this merger, the Subcommittee's 
jurisdiction was broadened to include inquiries concerning the 
adequacy of national security staffing and procedures, 
relations with international organizations, technology transfer 
issues, and related matters. In 1974, in reaction to the 
gasoline shortages precipitated by the Arab-Israeli war of 
October 1973, the Subcommittee acquired jurisdiction to 
investigate government operations involving the control and 
management of energy resources and supplies.
    In 1997, the full Committee on Governmental Affairs was 
charged by the Senate to conduct a special examination into 
illegal or improper activities in connection with Federal 
election campaigns during the 1996 election cycle. The 
Permanent Subcommittee provided substantial resources and 
assistance to this investigation, contributing to a greater 
public understanding of what happened, to subsequent criminal 
and civil legal actions taken against wrongdoers, and to 
enactment of campaign finance reforms in 2001.

                         B. Past Investigations

    Armed with its broad jurisdictional mandate, the 
Subcommittee has in recent years conducted investigations into 
a wide variety of topics of public concern, ranging from 
corporate misconduct, including the Senate's most in-depth 
investigation of the collapse of the Enron Corporation, to 
unfair energy prices, predatory lending, and tax evasion. The 
Subcommittee has also conducted investigations into numerous 
aspects of criminal wrongdoing, including money laundering, the 
narcotics trade, child pornography, labor racketeering, and 
organized crime activities. In addition, the Subcommittee has 
investigated a wide range of allegations of waste, fraud, and 
abuse in government programs and consumer protection issues, 
addressing problems ranging from food safety to Medicare fraud 
to mortgage ``flipping.''
    Most recently, under the leadership of Senator Coleman, the 
Subcommittee has focused on exposing corruption problems in the 
United Nations' Oil-for-Food Program, port and supply-chain 
security, credit counseling abuses, and Federal contractors 
with billions of dollars in unpaid taxes. At Senator Levin's 
request, the Subcommittee has also examined offshore tax 
abuses, the role of tax professionals in promoting abusive tax 
shelters, transparency and pricing problems in U.S. crude oil 
markets, abusive credit card practices, and the failure of U.S. 
bank regulators to crack down on possible money laundering 
practices at financial institutions like Riggs Bank.
    In 1998, the Subcommittee marked the 50th anniversary of 
the Truman Committee's conversion into a permanent subcommittee 
of the U.S. Senate.\2\ In the half-century of its existence, 
the Subcommittee's many successes have made clear to the Senate 
the importance of retaining a standing investigatory body 
devoted to keeping government not only efficient and effective, 
but also honest and accountable.
---------------------------------------------------------------------------
    \2\This anniversary also marked the first date upon which internal 
Subcommittee records generally began to become available to the public. 
Unlike most standing committees of the Senate whose previously 
unpublished records open after a period of 20 years has elapsed, the 
Permanent Subcommittee on Investigations, as an investigatory body, may 
close its records for 50 years to protect personal privacy and the 
integrity of the investigatory process. With this 50th anniversary, the 
Subcommittee's earliest records, housed in the Center for Legislative 
Archives at the National Archives and Records Administration, began to 
open seriatim. The records of the predecessor committee--the Truman 
Committee--were opened by Senator Nunn in 1980.
---------------------------------------------------------------------------
(1) Historical Highlights
    The Subcommittee's investigatory record as a permanent 
Senate body began under the Chairmanship of Republican Senator 
Homer Ferguson and his Chief Counsel (and future Attorney 
General and Secretary of State) William P. Rogers, as the 
Subcommittee inherited the Truman Committee's role in 
investigating fraud, waste and abuse in U.S. Government 
operations. This investigative work became particularly 
colorful under the chairmanship of Senator Clyde Hoey, a North 
Carolina Democrat who took the chair from Senator Ferguson 
after the 1948 elections. The last U.S. Senator to wear a long 
frock coat and wing-tipped collar, Mr. Hoey was a distinguished 
southern gentleman of the old school. Under his leadership, the 
Subcommittee won national attention for its investigation of 
the so-called ``five percenters,'' notorious Washington 
lobbyists who charged their clients 5 percent of the profits 
from any Federal contracts they obtained on the client's 
behalf. Given the Subcommittee's jurisdictional inheritance 
from the Truman Committee, it is perhaps ironic that the ``five 
percenters'' investigation raised allegations of bribery and 
influence-peddling that reached right into the White House and 
implicated members of President Harry Truman's staff. In any 
event, the fledgling Subcommittee was off to a rapid start.
    What began colorful soon became contentious. When 
Republicans returned to the Majority in the Senate in 1953, 
Wisconsin's junior Senator, Joseph R. McCarthy, became the 
Subcommittee's Chairman. Two years earlier, as Ranking Minority 
Member, Senator McCarthy had arranged for another Republican 
Senator, Margaret Chase Smith of Maine, to be removed from the 
Subcommittee. Senator Smith's offense, in Senator McCarthy's 
eyes, was her issuance of a ``Declaration of Conscience'' 
repudiating those who made unfounded charges and used character 
assassination against their political opponents. Although 
Senator Smith had carefully declined to name any specific 
offender, her remarks were universally recognized as criticism 
of Senator McCarthy's accusations that communists had 
infiltrated the State Department and other government agencies. 
Senator McCarthy retaliated by engineering Senator Smith's 
removal from the Subcommittee, replacing her with the newly-
elected Senator from California, Richard M. Nixon.
    Upon becoming Subcommittee Chairman, Senator McCarthy 
staged a series of highly publicized anti-communist 
investigations, culminating in an inquiry into communism within 
the U.S. Army, which became known as the Army-McCarthy 
hearings. During the latter portion of these hearings, in which 
the parent Committee examined the Wisconsin Senator's attacks 
on the Army, Senator McCarthy recused himself, leaving South 
Dakota Senator Karl Mundt to serve as Acting Chairman of the 
Subcommittee. Gavel-to-gavel television coverage of the 
hearings helped turn the tide against Senator McCarthy by 
raising public concern about his treatment of witnesses and 
cavalier use of evidence. In December 1954, in fact, the Senate 
censured Senator McCarthy for unbecoming conduct; in the 
following year, the Subcommittee adopted new rules of procedure 
that better protected the rights of witnesses. The Subcommittee 
also strengthened the rules ensuring the right of both parties 
on the Subcommittee to appoint staff, initiate and approve 
investigations, and review all information in the 
Subcommittee's possession.
    In 1955, Senator John McClellan of Arkansas began 18 years 
of service as Chairman of the Permanent Subcommittee on 
Investigations. Senator McClellan appointed the young Robert F. 
Kennedy as the Subcommittee's Chief Counsel. That same year, 
Members of the Subcommittee were joined by Members of the 
Senate Labor and Public Welfare Committee on a special 
committee to investigate labor racketeering. Chaired by Senator 
McClellan and staffed by Robert Kennedy and other Subcommittee 
staff members, this special committee directed much of its 
attention to criminal influence over the Teamsters Union, most 
famously calling Teamsters' leaders Dave Beck and Jimmy Hoffa 
to testify. The televised hearings of the special committee 
also introduced Senators Barry Goldwater and John F. Kennedy to 
the Nation, as well as leading to passage of the Landrum-
Griffin Labor Act.
    After the special committee completed its work, the 
Permanent Subcommittee on Investigations continued to 
investigate organized crime. In 1962, the Subcommittee held 
hearings during which Joseph Valachi outlined the activities of 
La Cosa Nostra, or the Mafia. Former Subcommittee staffer 
Robert Kennedy--who had by now become Attorney General in his 
brother's Administration--used this information to prosecute 
prominent mob leaders and their accomplices. The Subcommittee's 
investigations also led to passage of major legislation against 
organized crime, most notably the Racketeer Influenced and 
Corrupt Organizations (RICO) provision of the Crime Control Act 
of 1970. Under Chairman McClellan, the Subcommittee also 
investigated fraud in the purchase of military uniforms, 
corruption in the Department of Agriculture's grain storage 
program, securities fraud, and civil disorders and acts of 
terrorism. From 1962 to 1970, the Permanent Subcommittee on 
Investigations conducted an extensive probe of political 
interference in the awarding of government contracts for the 
Pentagon's ill-fated TFX (``tactical fighter, experimental''). 
In 1968, the Subcommittee also examined charges of corruption 
in U.S. servicemen's clubs in Vietnam and elsewhere around the 
world.
    In 1973, Senator Henry ``Scoop'' Jackson, a Democrat from 
Washington State, replaced Senator McClellan as the 
Subcommittee's Chairman. During these years, recalled Chief 
Clerk Ruth Young Watt--who served in that position from the 
Subcommittee's founding until her retirement in 1979--Ranking 
Minority Member Charles Percy, an Illinois Republican, was more 
active on the Committee than Chairman Jackson, who was often 
distracted by his Chairmanship of the Interior Committee and 
his active role on the Armed Services Committee.3 
Senator Percy worked closely in this regard with Georgia 
Democrat Sam Nunn, who subsequently succeeded Senator Jackson 
as Chairman in 1979. As Chairman, Senator Nunn continued the 
Subcommittee's investigations into the role of organized crime 
in labor-management relations and also investigated pension 
frauds.
---------------------------------------------------------------------------
    \3\It had not been uncommon in the Subcommittee's history for the 
Chairman and Ranking Minority Member to work together closely despite 
their partisan differences, but Senator Percy was unusually active in 
the Minority--a role that included chairing one investigation of the 
hearing aid industry.
---------------------------------------------------------------------------
    The regular reversals of political fortunes in the Senate 
of the 1980s and 1990s saw Senator Nunn trade chairmanship 
three times with Delaware Republican William Roth. Senator Nunn 
served from 1979 to 1980 and again from 1987 to 1995, while 
Senator Roth served from 1981 to 1986, and again from 1995 to 
1996. These 15 years saw a strengthening of the Subcommittee's 
bipartisan tradition in which investigations were initiated by 
either the Majority or Minority and fully supported by the 
entire Subcommittee. For his part, Senator Roth led a wide 
range of investigations into commodity investment fraud, 
offshore banking schemes, money laundering, and child 
pornography. Senator Nunn led inquiries into Federal drug 
policy, the global spread of chemical and biological weapons, 
abuses in Federal student aid programs, computer security, 
airline safety, and health care fraud. Senator Nunn also 
appointed the Subcommittee's first female counsel, Eleanore 
Hill, who served as Chief Counsel to the Minority from 1982 to 
1986 and then as Chief Counsel from 1987 to 1995. Ms. Hill 
subsequently served as Inspector General at the Department of 
Defense.
(2) Recent Investigations
    In January 1997, Republican Senator Susan Collins of Maine, 
became the first woman to Chair the Permanent Subcommittee on 
Investigations. Senator John Glenn of Ohio became the Ranking 
Minority Member. After Senator Glenn's retirement, Michigan 
Democrat Carl Levin succeeded him in January 1999, as the 
Ranking Minority Member. During Senator Collins' chairmanship, 
the Subcommittee conducted a number of investigations affecting 
Americans in their day-to-day lives, including investigations 
into mortgage fraud, phony credentials obtained through the 
Internet, deceptive mailings and sweepstakes promotions, day 
trading of securities, and securities fraud on the Internet. 
Senator Levin, while Ranking Minority Member, initiated an 
investigation into money laundering. At his request, the 
Subcommittee held hearings in 1999 on money laundering issues 
affecting private banking services provided to wealthy 
individuals, and in 2001 on how major U.S. banks providing 
correspondent accounts to offshore banks were being used to 
advance money laundering and other criminal schemes. Senator 
Collins chaired the Subcommittee until June 2001, when the 
Senate Majority party changed hands, and Senator Levin assumed 
the chairmanship. Senator Collins, in turn, became the Ranking 
Minority Member.
    During the 107th Congress, both Senator Collins and Senator 
Levin chaired the Subcommittee. In her 6 months chairing the 
Subcommittee at the start of the 107th Congress, Senator 
Collins held hearings examining issues related to cross border 
fraud, the improper operation of tissue banks, and Federal 
programs designed to fight diabetes. Over the following 18 
months, Senator Levin led a bipartisan investigation into Enron 
Corporation, which had collapsed into bankruptcy just before he 
became Chairman. The Subcommittee reviewed over 2 million pages 
of documents, conducted more than 100 interviews, held four 
hearings, and issued three bipartisan reports on the role 
played by Enron's Board of Directors, Enron's use of tax 
shelters, and how major U.S. financial institutions had 
contributed to Enron's accounting deceptions, corporate abuses, 
and ultimate collapse. The Subcommittee's investigative work 
contributed to passage of the Sarbanes-Oxley Act which enacted 
accounting and corporate reforms in July 2002. Senator Levin 
also advanced the money laundering investigation initiated 
while he was Ranking Minority Member and opened new 
investigations into offshore tax abuses, border security, and 
the pricing of gasoline and other fuels.
    In January 2003, at the start of the 108th Congress, 
Senator Collins became Chairman of the full Committee on 
Homeland Security and Governmental Affairs, and Republican 
Senator Norm Coleman of Minnesota became the Subcommittee 
Chairman. Over the next 2 years, Senator Coleman held 15 
hearings on topics of national and global concern including 
illegal file sharing on peer-to-peer networks, abusive 
practices in the credit counseling industry, the dangers of 
purchasing pharmaceuticals over the Internet, Federal 
contractors with billions of dollars in unpaid taxes, SARS 
preparedness, border security, and how Saddam Hussein abused 
the United Nations Oil-for-Food Program. At the request of 
Senator Levin, then Ranking Minority Member, the Subcommittee 
examined how some U.S. accounting firms, banks, investment 
firms, and tax lawyers were designing, promoting, and 
implementing abusive tax shelters across the country; and how 
some U.S. financial institutions were failing to comply with 
anti-money laundering controls mandated by the Patriot Act, 
using as a case history Riggs Bank accounts involving Augusto 
Pinochet, former President of Chile, and Equatorial Guinea, an 
oil-rich country in Africa.
    During the 110th Congress, Chairman Coleman held 13 
hearings on a wide range of topics, including three additional 
hearings on abuses associated with the United Nation's Oil-for-
Food Program, two hearings on Federal contractors who failed to 
pay billions of dollars in taxes, additional border security 
hearings focused on securing the global supply chain, two 
hearings on the Department of Defense (DOD) travel abuses, and 
two field hearings on consumers hurt by abusive tax refund 
loans or unfair energy pricing. At Senator Levin's request, the 
Subcommittee also held hearings on offshore tax abuses, which 
are responsible for $100 billion in unpaid taxes each year, and 
on U.S. money laundering vulnerabilities due to the failure of 
the States to obtain ownership information for the 2 million 
companies formed within their jurisdictions each year.
    In January 2007, Senator Levin once again became 
Subcommittee Chairman. During the 110th Congress, Senator Levin 
held 14 hearings on a wide range of topics, including two 
hearings on unfair credit card practices, a hearing on tax and 
accounting mismatches involving executive stock options, 
hearings on excessive speculation in the natural gas market and 
the crude oil market, and hearings on offshore tax abuses 
involving tax haven banks and non-U.S. persons ducking payment 
of U.S. taxes on U.S. stock dividends. At the request of 
Senator Coleman, then Ranking Minority Member, the Subcommittee 
also held hearings on Medicare and Medicaid health care 
providers who cheat on their taxes, the payment of Medicare 
claims tied to deceased doctors, abusive practices involving 
transit benefits, U.S. dirty bomb vulnerabilities, Federal 
payroll tax abuses, and problems involving the United Nations 
Development Program.
    The following pages describe the Subcommittee's work during 
the 110th Congress.

          II. Subcommittee Hearings During the 110th Congress

A. Credit Card Practices: Fees, Interest Charges, and Grace Periods 
        (March 7, 2007)
    The Subcommittee's first hearing in the 110th Congress 
focused on unfair credit card practices. Two years earlier, in 
2005, Senator Levin had initiated a Subcommittee investigation 
into credit cards by asking the Government Accountability 
Office (GAO) to conduct a study of credit card finance charges 
and disclosures to consumers. In 2006, GAO released a 125-page 
report which, for the first time in years, provided a detailed 
description of the various fees, interest rates, and disclosure 
practices associated with 28 popular credit cards at the six 
largest U.S. credit card issuers. On March 7, 2007 the 
Subcommittee held a hearing that focused on three fundamental 
credit card issues: fees, interest rates, and grace periods.
    The Subcommittee investigation determined that credit card 
issuers imposed a wide range of fees on card holders, including 
annual fees, late fees, over-the-limit fees, balance transfer 
fees, foreign exchange fees, and fees charged for paying a 
credit card bill over the telephone. Those high fees were made 
worse by the industry practice of including all fees in a 
consumer's outstanding balance so that the fees incurred 
interest charges. In other words, card issuers charged interest 
not only on funds lent to a consumer, but also on any fees 
assessed to a credit card account.
    The Subcommittee investigation also found that credit card 
issuers typically applied multiple interest rates to the same 
card, depending upon the circumstances. For example, the credit 
card industry typically used one interest rate for cash 
advances, another for regular purchases, a third for balance 
transfers, and if a cardholder paid late or exceeded a credit 
limit, the issuer often imposed a so-called penalty interest 
rate that could exceed 30 percent. These interest rates often 
varied over time, rising and falling with the prime rate. These 
multiple interest rates that changed over time made it nearly 
impossible for consumers to track their finance charges. In 
addition, when a consumer paid off a portion of a monthly 
balance, but not the entire amount owed, credit card issuers 
typically charged interest on the entire balance, including the 
portion paid on time.
    The Subcommittee investigation found that although many 
consumers thought that all credit cards provided them with a 
grace period before interest is charged, in fact, most credit 
card issuers did not provide a grace period to cardholders 
unless they paid their credit card balances in full each month. 
If a consumer owed any balance on a card from the prior month, 
there was typically no grace period provided for new purchases.
    The hearing presented testimony from two panels, 
representing credit cardholders and credit card issuers. The 
first panel heard from Wesley Wannemacher, a credit card user, 
and Alys Cohen, a staff attorney at the National Consumer Law 
Center. Mr. Wannemacher testified about his experiences with a 
credit card he had obtained in 2001, with a $3,000 credit 
limit. He used the card to pay for expenses mostly related to 
his wedding, and charged a total of about $3,200, exceeding the 
card's credit limit by $200. He spent the next 6 years trying 
to pay off the debt, averaging payments of about $1,000 per 
year. Evidence showed that, during those 6 years, he was 
charged about $4,900 in interest, $1,100 in late fees, and 
$1,500 in over-the-limit fees. He was hit 47 times with over-
the-limit fees, even though he went over the limit only 3 times 
and exceeded the limit by only $200. He was also assessed 
interest rates as high as 30 percent. Altogether, the fees and 
the interest charges added up to $7,500 which, on top of the 
original $3,200 credit card debt, produced total charges to him 
of $10,700. At the time of the hearing, he'd paid about $6,300 
on his $3,200 debt, but still owed $4,400. After Mr. 
Wannemacher agreed to testify before the Subcommittee, his 
credit card issuer, Chase Bank USA, forgave his entire 
outstanding debt.
    Ms. Cohen testified that exorbitant interest rates and 
multiple fees charged to already overburdened consumers are a 
growing source of financial hardship for American families. Ms. 
Cohen identified a list of abusive credit card practices, 
including burdensome fees, penalty interest rates, universal 
default practices, unfair allocation of payments, late payment 
triggers, unfair subprime credit cards, and mandatory 
arbitration clauses. She described penalty interest rates that 
dramatically increased a card's interest rate, and that were 
sometimes imposed for a single occasion of exceeding a credit 
limit or for a payment that was one day late. She noted that 
these penalty rates were applied, not just to future credit 
card transactions, but also to existing balances, which 
constituted a retroactive, unilateral change in the terms of 
the credit card loan. Ms. Cohen also criticized the practice of 
universal default, in which credit card lenders impose penalty 
rates, not for any conduct affecting the consumer's credit card 
account, but for conduct applicable only to other creditors. 
Ms. Cohen recommended a number of reforms to end these and 
other abuses.
    The second panel presented testimony from three leading 
credit card issuers: Bruce Hammonds, President of Bank of 
America Card Services; Richard Srednicki, CEO of Chase Bank 
USA; and Vikram Atal, Chairman and CEO of Citi Cards. Mr. 
Hammonds testified about how credit cards work and the benefits 
they provide. He testified that, under the current system, 
consumers are able to access money or shop anywhere in the 
world, merchants can sell merchandise to consumers they don't 
know or may never see, and transactions are processed safely 
and almost instantaneously. According to Mr. Hammonds, credit 
cards also help consumers build their credit histories, 
participate in reward programs, and obtain protection against 
transaction fraud and identity theft. Mr. Hammonds also 
testified that Bank of America prices its credit cards based 
upon four primary factors: competition, risk, return, and 
regulation. He explained that the risk of nonpayment was 
managed in three ways: by issuing cards to those who 
demonstrated the ability to repay, monitoring customers' 
behavior, and working with customers who are experiencing 
problems to give them opportunities to repay.
    Mr. Srednicki from Chase began his testimony with an 
apology to Mr. Wannemacher. He stated that Chase has policies 
and procedures in place to identify customers like Mr. 
Wannemacher, who have fallen into debt and are finding it 
difficult to work their way out. According to Mr. Srednicki, 
Chase policies and procedures failed to help Mr. Wannemacher, 
and he regretted it. Mr. Srednicki testified that Chase 
believed his case was an exception and not the rule, and that 
it was caused by human error, which is why they forgave the 
debt. Mr. Srednicki also announced that, as a result of the 
Wannemacher case, Chase had changed its policy on over-the-
limit fees for all of its 100 million credit card accounts, and 
would no longer charge more than three over-the-limit fees for 
a single instance of exceeding a credit limit.
    Mr. Srednicki testified that consumers use credit cards to 
manage cash flow, out of convenience, for protection, and for 
the special offers of credit cards. He explained that most of 
Chase customers fell into the industry categories of ``super-
prime'' and ``prime,'' and were fully able to pay their credit 
card bills. According to Mr. Srednicki, Chase was taking 
proactive steps to help improve the clarity of information 
disclosed to clients, and that 92 percent of Chase customers 
began and ended the year with the same or a better interest 
rate. Mr. Srednicki also referenced the 2006 GAO report finding 
that the total annual and penalty fees were roughly the same in 
2004 as they were in 1990, and that most bankruptcies occur--
not as a result of credit card debt, but primarily as a result 
of ``unforeseen adverse events such as job loss, divorce and 
uninsured illness.''
    Mr. Atal testified that, at Citi Cards, customer 
satisfaction drove their revenues, because lost customers were 
difficult to replace. He announced at the hearing that, to 
better serve their customers, Citi Cards had decided to stop 
using ``universal default'' practices, and would no longer 
impose penalty interest rates for conduct that applied only to 
another creditor. Mr. Atal also announced that Citi Cards would 
eliminate from its credit card agreements the clause allowing 
it to raise credit card rates ``at any time for any reason.'' 
Mr. Atal also described other services Citi Cards provided to 
clients, including customer alerts, financial literacy and 
consumer credit education, security and protection, 
disclosures, and hardship assistance, in order to treat 
consumers fairly and communicate with them in a clear and 
understandable way.
    After the hearing, in May 2007, Senator Levin introduced S. 
1395, The Stop Unfair Practices in Credit Cards Act, in order 
to combat the credit card abuses identified at the hearing. In 
2008, Senator Dodd introduced S. 3252, a Dodd-Levin credit card 
reform bill that incorporated most of the Levin bill as well as 
additional measures to stop credit card abuses.
B. Medicare Doctors Who Cheat on Their Taxes and What Should Be Done 
        About It (March 20, 2007)
    As part of the Subcommittee's continuing investigation of 
Federal contractors who are tax-delinquent, the Subcommittee 
examined the extent to which physicians and other health care 
providers who receive Medicare payments from the Federal 
Government also have unpaid tax debt. In addition, the 
Subcommittee investigated why the Centers for Medicare and 
Medicaid Services (CMS) had failed to establish systems to 
screen payments to Medicare health care providers to identify 
recipients with outstanding tax debt and subject them to levies 
under the Federal Payment Levy Program (FPLP). The Subcommittee 
held a hearing on these issues on March 20, 2007.
    At the hearing, GAO testified that more than 21,000 
physicians, health professionals, and suppliers who received 
payments from the Medicare Part B Program during the first 9 
months of 2005 owed more than $1 billion in unpaid Federal 
taxes. GAO also reported that Medicare physicians owed $33 
million in unpaid child support, $27 million in delinquent 
student loans, $22 million in unpaid State taxes, and $114 
million that was owed to Federal agencies. These other types of 
debt were not being collected, because CMS is statutorily 
exempt from collecting non-tax debt.
    GAO identified 40 specific instances of abusive or 
potentially criminal activity related to Medicare health care 
providers with unpaid taxes. These 40 cases included a 
physician who received more than $100,000 in Medicare payments, 
while owing nearly $1 million in back taxes; an ambulance 
company that received more than $1 million, while owing nearly 
$11 million in taxes; and a medical imaging company that 
received more than $1 million, while owing nearly $3 million in 
unpaid taxes.
    GAO also noted that, 6 years earlier, CMS had been cited 
for not participating in the FPLP tax levy program in a July 
2001 GAO report entitled, ``Tax Administration: Millions of 
Dollars Could Be Collected If IRS Levied More Federal 
Payments,'' GAO-01-711. GAO testified that CMS had failed to 
take any steps over the subsequent 6 years to establish the 
required FPLP screening procedures.
    IRS Commissioner Mark Everson then testified about the 
recent progress that has taken place in the FPLP program to 
increase the number of Federal payments screened for unpaid 
taxes. The overall result has been a dramatic increase in tax 
collections, which have more than tripled from $89 million in 
fiscal year 2003, to $299 million in fiscal year 2006. With 
respect to CMS payments to Medicare health care providers, 
Commissioner Everson stated that these payments were legally 
subject to levy, and that the Internal Revenue Service (IRS), 
Financial Management Service (FMS), and CMS had begun talks to 
evaluate the steps needed to include these payments in the 
FPLP.
    FMS Commissioner Kenneth R. Papaj testified that all levy 
collections have continued to increase due to improvements in 
the FPLP program. These improvements have included an increase 
in the types of payments that are being levied, more frequent 
screening of payments, and improved information enabling FMS to 
target tax levies successfully. He also testified that the 
issue of how to include Medicare payments in the FPLP had been 
taken up by the Federal Contractor Tax Compliance Task Force 
comprised of staff from IRS, FMS and CMS.
    Finally, Acting CMS Administrator Leslie V. Norwalk 
testified that CMS was in the process of implementing the 
HealthCare Integrated General Ledger Accounting System, which 
will simplify the Medicare payment process and make it feasible 
to impose levies under the FPLP. CMS expected to complete 
implementation of the new system in 2011.
    To deepen understanding of the extent of the problem, the 
Subcommittee asked GAO to conduct an expanded review of 
Medicare health care providers with unpaid taxes. On June 13, 
2008, the GAO released a report entitled, ``Medicare: Thousands 
of Medicare Providers Abuse the Federal Tax System,'' GAO-08-
618, which looked at an entire year of data from 2006 for 
health care providers in both the Medicare Part A and Part B 
Programs. Overall, GAO estimated that over 27,000 Medicare 
providers, or about 6 percent of all Medicare providers, had 
unpaid Federal taxes totaling over $2 billion. GAO also found 
instances of abusive and criminal activity in a 
nonrepresentative sample of 25 Medicare health care providers, 
often involving established businesses that had failed to remit 
their payroll taxes. The GAO report determined that CMS had no 
mechanism to prevent providers with substantial unpaid Federal 
taxes from becoming Medicare providers or receiving Medicare 
payments. In addition, because CMS was not participating in the 
FPLP, GAO estimated that the government had lost the 
opportunity to collect between $50 and $140 million in unpaid 
taxes from payments disbursed in 2006 alone.
    As a result of the Subcommittee's investigation, 
legislation was included in the Medicare Improvements for 
Patients and Providers Act of 2008, Public Law 110-275, to 
require CMS, over a 4-year period, to establish tax levy 
procedures for all Medicare payments to health care providers. 
CMS was required to begin screening a portion of those Medicare 
payments in 2008, and to increase the payments subject to levy 
until 100 percent were screened for unpaid taxes.
C. Transit Benefits: How Some Federal Employees Are Taking Uncle Sam 
        For a Ride (April 24, 2007)
    At the request of Senator Coleman, the Subcommittee 
initiated an investigation into reports that federally 
subsidized transit benefits in the form of Metrocheks and 
Smartrip cards, which were designed to be used only by Federal 
employees riding mass transit, were being sold to third parties 
in potential violation of Federal regulations. On April 24, 
2007, the Subcommittee held a hearing which disclosed that 
program abuses were occurring, and that internal controls to 
prevent such abuses were inadequate.
    Less than 10 years ago, the Federal transit benefits 
program was established to encourage Federal employees to use 
public transportation, like subways and buses, for the purpose 
of reducing road congestion, air pollution, gasoline 
consumption, and U.S. dependence on foreign oil. Nationwide, 
the program distributes about $250 million in Federal travel 
subsidies each year and encourages nearly 300,000 Federal 
employees to commute to work on mass transit systems, by 
supplying them with monthly benefits that can pay for subway 
tokens or bus passes. More than half of these employees work in 
the Nation's capital and supply nearly a third of the 1.1 
million daily trips taken on the local subway system. By 
getting these workers off the roads and into mass transit, the 
Federal transit benefit program was intended not only to 
support public transportation, but also benefit other Americans 
by lessening pollution, gasoline consumption, and wear and tear 
on roads.
    Federal employees using Metrocheks and Smartrip cards are 
required to certify under penalty of perjury that they will not 
sell or transfer their transit benefits to anyone else and that 
the amount received does not exceed their monthly commuting 
costs. No single Federal agency is responsible for overseeing 
the transit benefits program; instead, each participating 
Federal agency is responsible for ensuring that its own 
employees make proper use of the transit benefits received.
    A GAO investigation undertaken at the request of the 
Subcommittee determined that a variety of fraudulent and 
abusive practices affecting transit benefits were taking place 
in the Washington, D.C. metropolitan area. GAO identified, for 
example, Federal employees who were selling their transit cards 
on the Internet; falsifying benefit applications to claim 
excess benefits; claiming mass transit and parking benefits at 
the same time; distributing benefits to friends and family; and 
receiving benefits after leaving employment with the Federal 
Government. GAO identified specific Federal employees engaged 
in these practices and turned their cases over to their agency 
employers. GAO also found that these abuses occurred in part 
because Federal agencies lacked the necessary internal controls 
to detect and prevent abuses.
    GAO testified at the hearing about its findings. 
Representatives of Federal agencies also testified. They 
generally admitted abuses were occurring, and that each 
participating agency bore the responsibility for implementing 
internal controls to prevent them. These witnesses included 
Linda J. Washington, Acting Assistant Secretary for 
Administration, Department of Transportation; Calvin Scovel 
III, Inspector General for the Department of Transportation; 
Michael L. Rhodes, Director of Washington Headquarters 
Services, Department of Defense (DOD); and Acting DOD Inspector 
General Thomas Gimble. The hearing also disclosed that six 
different inspectors general, including the DOD IG, had 
previously audited use of transit benefits and concluded that 
the program controls were inadequate.
    In response to the hearing, the Transportation Department 
and other agencies agreed to tighten controls, consider 
specifying uniform application forms and internal controls 
across the country, and exercise better oversight of Federal 
transit benefits.
D. Executive Stock Options: Should the Internal Revenue Service and 
        Stockholders Be Given Different Information? (June 5, 2007)
    In 2007, the Subcommittee initiated an investigation into 
excessive executive pay and abusive practices involving 
compensation paid to U.S. corporate executives, including 
through stock options. In 2006, the average pay of chief 
executive officers (CEOs) at large U.S. public companies was 
$15.2 million, of which nearly half, $7.3 million, came from 
exercising stock options. In 2006, CEOs received nearly 400 
times the average pay earned by workers, and stock options were 
a key reason.
    On June 5, 2007, the Subcommittee held a hearing examining 
how current U.S. accounting and tax rules require stock option 
compensation expenses to be valued in different ways on 
corporate financial statements compared to corporate tax 
returns, and how, in most cases, corporations take stock option 
tax deductions that are far in excess of the stock option 
expenses recorded on their financial statements. Stock option 
compensation is currently the only type of compensation in 
which corporations are allowed to take tax deductions that 
exceed their book expenses. The Subcommittee investigation 
found that, by providing overly generous stock option tax 
deductions, Federal tax policy encouraged corporations to 
provide excessive stock option pay, fueled the pay gap between 
executives and workers, and enabled profitable corporations to 
avoid paying billions in taxes.
    At the hearing, the Subcommittee detailed the stock option 
book-tax difference at nine Fortune 500 companies. The data 
showed that the nine companies alone produced $1 billion more 
in tax deductions than the expenses shown on their books, even 
after using a new accounting rule requiring stock option 
compensation to be expensed on corporate financial statements.
    Three of the nine companies testified at the hearing: 
Stephen F. Bollenbach, Chairman of the Board of Directors of KB 
Home, a residential construction company; John S. Chalsty, 
Chairman of the Compensation Committee of Occidental Petroleum 
Corporation, an oil company; and William Y. Tauscher, Member 
and former Chairman of the Compensation Committee of Safeway, 
Inc., a large grocery chain. The data showed that KB Home had 
claimed a $143 million tax deduction for stock option expenses 
that, under the new accounting rule, would have totaled $11.5 
million, with the result that its tax deduction was 12 times 
bigger than its book expense. The data showed that Occidental 
Petroleum claimed a $353 million tax deduction for a stock 
option book expense that, under the new accounting rule, would 
have totaled just $29 million, a book-tax difference of more 
than 1,200 percent. The data also showed that Safeway claimed a 
$39 million tax deduction for a stock option book expense that 
would have totaled about $6.5 million, a difference of more 
than 600 percent. Altogether, the data showed that the nine 
companies took stock option tax deductions totaling $1.2 
billion, a figure five times larger than their combined stock 
option book expenses of $217 million. The corporate witnesses 
did not dispute these figures; instead, they explained that 
their corporations had simply complied with the required 
accounting and tax rules which are responsible for producing 
these disparate results.
    The second panel at the hearing presented testimony from 
government witnesses. Kevin M. Brown, Acting IRS Commissioner, 
presented a data analysis performed by the IRS at the request 
of the Subcommittee on the overall size and composition of the 
stock option book-tax difference. Using actual tax return 
information from schedules filed over 7 months from December 
31, 2004 to June 30, 2005, Mr. Brown reported that about 3,000 
companies had disclosed a book-tax difference related to stock 
option compensation, and overall, these companies had claimed 
$43 billion more in stock option tax deductions than book 
expenses. He also reported that approximately 250 companies 
accounted for 82 percent of the $43 billion in excess tax 
deductions. John W. White, Director of the Division of 
Corporation Finance of the U.S. Securities and Exchange 
Commission (SEC) testified that the dramatic growth of stock 
options as compensation was accompanied by abuses and deserved 
additional disclosure and transparency.
    In the last panel, three experts discussed the stock option 
book-tax difference. Lynn E. Turner, former SEC Chief 
Accountant, testified about how the disparity in U.S. 
accounting and tax rules had created an incentive for companies 
to maximize stock options in order to benefit from the income 
tax deductions while also minimizing expenses for financial 
reporting purposes. He noted the conflicting information 
reported to investors and the SEC versus the IRS. Mihir A. 
Desai, an associate professor at the Harvard University 
Graduate School of Business Administration, testified that the 
dual reporting system created incentives for corporations to 
maximize the deductions reported to tax authorities, while 
minimizing the expenses reported to investors. He noted that 
investors did not have access to the information being given to 
tax authorities or to the size of the book-tax discrepancy, 
which would help investors evaluate a company's actual economic 
performance. He also noted that the United States was an 
anomaly among its peers in its dependence on dual reporting, as 
most other countries have moved to align stock option tax and 
financial reporting without negative consequences. Finally, 
Jeff Mahoney, General Counsel to the Council of Institutional 
Investors, which represents corporate and union pension fund 
investors, testified that stock option compensation represented 
a true expense to corporations, that the existing policy 
encourages excessive stock option awards, and that it is simply 
bad tax policy to continue to allow profitable corporations to 
avoid payment of taxes by claiming large stock option tax 
deductions.
    In 2008, at the request of the Subcommittee, the IRS 
updated its data to provide analysis for a full year of stock 
option book-tax differences. The IRS determined that, for tax 
returns filed in 2004, the amount by which corporate stock 
option tax deductions exceeded the equivalent book expenses was 
$49 billion, up from the $43 billion announced at the hearing. 
In addition, the IRS determined that the excess stock option 
tax deductions for corporate returns filed in 2005 totaled $61 
billion.
    As a result of the Subcommittee investigation, on Sept. 28, 
2007, Senator Levin introduced legislation, S. 2116, to require 
stock option tax deductions to match, and not exceed, a 
corporation's book expense.
E. Excessive Speculation In The Natural Gas Market (June 25 and July 9, 
        2007)
    In June and July 2007, the Subcommittee held two days of 
hearings and released a 400-page bipartisan staff report which 
found excessive speculation in the natural gas market, using 
the case history of Amaranth Advisors LLC, a hedge fund which 
the report found had distorted 2006 U.S. natural gas prices 
through large speculative trades, traded in both regulated and 
unregulated energy commodity markets, and played each type of 
market off the other.
    The Subcommittee investigation detailed the reasons for 
relatively high prices and volatility in the natural gas 
futures markets in 2006, and demonstrated how excessive 
speculation by a single hedge fund had dominated the natural 
gas market and distorted natural gas futures prices. The 
investigation also examined the extent to which speculative 
trading on unregulated energy exchanges had contributed to the 
price distortions. The report presented landmark evidence 
demonstrating for the first time that regulated and unregulated 
energy commodity markets affected each other's prices and U.S. 
energy costs.
    The report also contained bipartisan recommendations to 
reduce excessive speculation in commodity markets, including by 
enacting legislation to close ``the Enron loophole.'' The Enron 
loophole, inserted at the request of Enron and others into U.S. 
legislation that was enacted into law, exempts from government 
oversight any electronic commodity exchange whose trading is 
limited to large traders of energy or metals commodities, on 
the theory that large traders have no need for government 
safeguards. As a result of this exemption, one of the largest 
U.S. energy exchanges, the Intercontinental Exchange (ICE), has 
operated without government oversight or regulation since its 
inception, even after it has become clear that its trades 
affect prices on regulated markets like the New York Mercantile 
Exchange (NYMEX). The report recommended eliminating this 
statutory exemption from government oversight.
    The first day of hearings, on June 25, presented three 
panels. On the first panel, three industry experts testified 
about the natural gas market: Arthur Corbin, President and CEO 
of the Municipal Gas Authority of Georgia, who testified on 
behalf of the American Public Gas Association; Paul N. Cicio, 
President of the Industrial Energy Consumers of America; and 
Sean Cota, President of the New England Fuel Institute. Each 
stated that Amaranth's large positions in the 2006 natural gas 
commodity markets had driven up natural gas prices beyond the 
levels of supply and demand, urged transparency in the 
unregulated over-the-counter energy markets, and advocated for 
enhanced authority for the Commodity Futures Trading Commission 
(CFTC) to prevent price manipulation and excessive speculation 
in energy markets. All three stated that U.S. energy prices 
were affected by trades in both the regulated commodity markets 
like NYMEX and unregulated electronic markets like ICE, and 
called for closing the Enron loophole.
    The second panel presented testimony from two academic 
experts, Professor Vince Kaminski, Jesse H. Jones Graduate 
School of Management at Rice University; and Professor Michael 
Greenberger, University of Maryland School of Law. Both 
supported the findings in the Subcommittee staff report, 
including the recommendation to close the Enron loophole.
    The final witness was Shane Lee, a former natural gas 
trader at Amaranth, who testified about Amaranth's natural gas 
trading practices. He admitted that the volume of Amaranth's 
trading was very large and took place in both regulated and 
unregulated markets, but disagreed that Amaranth's trading 
drove prices, and instead opined that the company merely 
responded to market forces. He supported extending reporting 
requirements and limits to unregulated exchanges.
    On July 9, 2007, the Subcommittee held the second day of 
hearings, focused on the role of market regulators to protect 
the public from commodity price manipulation and excessive 
speculation. The first panel heard from Dr. James Newsome, 
President and CEO of NYMEX, and Jeffrey C. Sprecher, Chairman 
of the Board and CEO of ICE. Dr. Newsome testified that the 
existing statutory framework was unworkable, because of the 
regulatory disparity between CFTC's authority over NYMEX, but 
not ICE. Mr. Sprecher agreed with the Subcommittee 
recommendations to increase the CFTC budget and enhance its 
access to trading information, but disagreed that new 
legislation was needed to fill a regulatory gap. The final 
witness was the CFTC, represented by the Hon. Walter L. Lukken, 
Acting Chairman, and the Hon. Michael V. Dunn, Commissioner. 
They explained the limitations on CFTC regulatory authority, 
including with respect to exempt commercial markets such as 
ICE, the absence of over-the-counter reporting obligations, and 
the CFTC's difficulty in detecting fraud and manipulation.
    In response to the Subcommittee's investigative work, on 
September 17, 2007, Senator Levin introduced S. 2058, the Close 
the Enron Loophole Act. In May 2008, legislation based upon the 
Levin bill was included in the 2008 farm bill and effectively 
closed the Enron loophole and subjected electronic commodity 
markets that affect prices to CFTC regulation and oversight. In 
late July 2007, both the CFTC and the Federal Energy Regulatory 
Commission filed civil complaints against Amaranth and its head 
energy trader Brian Hunter for manipulating prices in the 
natural gas market.
F. Dirty Bomb Vulnerabilities: Fake Companies, Fake Licenses, Real 
        Consequences (July 12, 2007)
    As part of the Subcommittee's continuing examination of 
nuclear and radiological threats to the United States, the 
Subcommittee initiated an investigation into certain aspects of 
the materials licensing policies and procedures of the Nuclear 
Regulatory Commission (NRC). To evaluate the effectiveness of 
these policies and procedures, GAO, in response to a 
Subcommittee request, agreed to establish a false company and 
test whether the NRC's licensing procedures were sufficient to 
guard against the aggregation and misuse of relatively low-
grade radioactive materials, including efforts to include these 
materials in a so-called ``dirty bomb.'' On July 12, 2007, the 
Subcommittee held a hearing and issued a bipartisan staff 
report on the results of the GAO exercise, the process by which 
parties obtain NRC materials licenses, the vulnerability of NRC 
materials licenses to counterfeiting and fraud, and 
recommendations to strengthen NRC safeguards.
    At the hearing, GAO was the first witness and testified 
about NRC licensing procedures and GAO's efforts to test those 
procedures. GAO explained that the NRC and certain ``Agreement 
States'' to which the NRC has delegated authority are 
responsible for regulating the possession and use of low-grade 
radiological materials within U.S. borders. GAO disclosed that 
the NRC and Agreement States use different licensing policies 
and procedures to issue about 1,000 new licenses each year 
allowing specified entities to possess and use certain 
radiological materials in a variety of medical and industrial 
fields.
    GAO then described how it used aliases and a dummy 
corporation to apply simultaneously for two materials 
licenses--one through an Agreement State and one from the NRC. 
GAO testified that the Agreement State, as part of its 
licensing process, insisted on interviews with company 
officials and a physical tour of the company's facilities. 
Satisfied with the Agreement State's safeguards, GAO withdrew 
its application. GAO reported that, in contrast, the NRC opted 
not to conduct a site visit or in-person interviews with 
company officials as part of its licensing procedure. According 
to the GAO, in less than 30 days, after exchanging a handful of 
phone calls and faxes with GAO's sham corporate executives, the 
NRC issued a materials license to its dummy corporation 
allowing it to take possession of radiological materials.
    GAO also testified that NRC materials licenses were 
singularly susceptible to counterfeiting. GAO described how, 
using off-the-shelf computer software, it electronically 
scanned the NRC license it had received and created a near-
identical facsimile. Using the counterfeit license, GAO then 
contracted with two different companies to purchase a number of 
radiological devices. GAO testified that the aggregate amount 
of radioactive materials that it had contracted to buy vastly 
exceeded the quantity authorized on the original NRC license, 
met the NRC's definition of a ``dangerous'' quantity, and could 
have been sufficient to construct a dirty bomb. GAO testified 
that it could have used the counterfeit NRC licenses to 
purchase virtually unlimited amounts of radioactive material. 
GAO offered a number of recommendations to strengthen NRC 
licensing procedures and combat counterfeit materials licenses.
    On the second hearing panel, Edward McGaffigan, Jr., NRC 
Commissioner, acknowledged that GAO had revealed flaws in the 
NRC's licensing procedures for possession and use of low-grade 
radioactive materials. He noted that applicants for these 
materials do not undergo the same degree of scrutiny as 
applicants for more dangerous radioactive materials. For 
example, he acknowledged that, when reviewing applications for 
low-grade radioactive materials, NRC licensing officers were 
authorized to exercise judgment on whether pre-licensing site 
visits were necessary. Regarding the vulnerability of materials 
licenses to modification or counterfeiting, McGaffigan 
acknowledged that GAO's work provided ``cause for concern.''
    In response to the Subcommittee's investigative work, the 
NRC proposed performing a retrospective examination of certain 
licenses issued by the NRC to verify that the licensees were 
legitimate; re-evaluating NRC licensing procedures and 
guidance; examining options to combat counterfeit licenses; and 
reevaluating security measures. After the hearing, the NRC 
established an ``Independent External Review Panel to Identify 
Vulnerabilities in the NRC's Materials Licensing Program,'' a 
``Materials Program Working Group,'' and a ``Pre-Licensing 
Guidance Working Group.'' The Independent Review Panel and NRC 
staff embraced virtually all of the Subcommittee staff report's 
recommendations. Most notably, the NRC recognized the need to 
suspend its ``good faith presumption'' that new applicants 
seeking radioactive materials were honest and hasten 
implementation of a National Source Tracking System and a Web-
Based Licensing System.
G. Medicaid Providers That Cheat on Their Taxes and What Should Be Done 
        About It (November 14, 2007)
    As part of the Subcommittee's continuing investigation into 
Federal contractors who are tax-delinquent, the Subcommittee 
examined the extent to which physicians and other health care 
providers who receive Medicaid payments from the 50 States, 
each payment of which includes some Federal funds, have unpaid 
Federal tax debt. As part of this investigation, the 
Subcommittee examined the complexity of the Medicaid payment 
system and how Medicaid payments could be screened to identify 
recipients with outstanding Federal tax debt and made subject 
to levies under the Federal Payment Levy Program (FPLP). The 
Subcommittee held a hearing on these issues on November 14, 
2007.
    At the request of the Subcommittee, GAO had initiated an 
evaluation of the unpaid Federal taxes owed by Medicaid health 
care providers. At the hearing, GAO testified that it had 
examined seven States accounting for 43 percent of Medicaid 
payments in FY 2006, and identified more than 30,000 providers, 
or about 5 percent of the total, who owed more than $1 billion 
in unpaid Federal taxes. GAO testified that more than half of 
the unpaid taxes were payroll taxes that employers had withheld 
from their employees and were required by law to remit to the 
Internal Revenue Service (IRS), but failed to do so. GAO 
estimated that, if the Federal Government had levied Medicaid 
payments in the seven selected States through the FPLP, it 
could have collected between $70 and $160 million in unpaid 
taxes.
    GAO identified 25 specific instances of abusive or 
potentially criminal activity related to Medicaid health care 
providers with unpaid taxes. Those 25 cases included a nursing 
home facility that received more than $39 million in Medicaid 
payments in FY 2006, while owing more than $16 million in back 
taxes, primarily from unremitted payroll taxes; a hospital that 
received more than $9 million from Medicaid, while owing nearly 
$5 million in taxes; and a medical clinic that received nearly 
$3 million, while owing nearly $1 million in unpaid taxes.
    GAO reported that, in addition to unpaid tax debt, Medicaid 
health care providers owed about $31 million in unpaid child 
support, $66 million in other Federal agency debt including 
delinquent student loans, and $5 million in unpaid State taxes. 
GAO explained that these other types of debt were not being 
collected, because Medicaid payments are not processed through 
Federal payment systems.
    The second hearing panel heard testimony from three Federal 
agencies: Linda Stiff, Acting IRS Commissioner; Kenneth R. 
Papaj, head of the Financial Management Service that operates 
the FPLP; and Dennis G. Smith, Director of the Center for 
Medicaid and State Operations at the Center for Medicare and 
Medicaid Services (CMS). Ms. Stiff and Mr. Papaj testified that 
Medicaid payments include both State and Federal components, 
are administered by the States under 50 different systems, and 
are currently not subject to the Federal Payment Levy Program 
(FPLP) because they are not considered ``Federal payments.'' 
Mr. Smith described the procedures under which CMS makes 
quarterly payments to the States which, in turn, use those 
Federal funds in their Medicaid programs, including by making 
payments to health care providers. All three witnesses 
testified that incorporating Medicaid payments into the FPLP 
would be complex and difficult, and would likely require a 
change in law. They also pledged, as a result of the 
Subcommittee's investigative work, to examine the issues more 
closely.
    In response to the Subcommittee's investigative work, in 
April 2008, Senators Coleman and Levin introduced S. 2843, the 
Medicaid Levy Enhancement Act, to authorize Federal tax levies 
on Medicaid payments to health care providers. The bill was 
referred to the Committee on Finance for further consideration.
H. Credit Card Practices: Unfair Interest Rate Increases (December 4, 
        2007)
    On December 4, 2007 the Subcommittee held its second 
hearing of the year examining abusive credit card practices. 
The hearing focused on the problem of unfair interest rate 
increases, in particular the industry practice of increasing 
interest rates even for card holders who have paid their credit 
card bills on time, stayed below their credit limits, and paid 
at least the minimum amount due. The hearing took testimony 
from both credit card holders and issuers.
    The first panel took testimony from three consumers who 
described their experiences. Janet Hard of Freeland, Michigan, 
testified that, in 2006, Discover increased her credit card 
interest rate from 18 percent to 24 percent, even though she 
had made payments to Discover on time and paid at least the 
minimum amount due for over 2 years. Discover applied the 24 
percent rate retroactively to her existing credit card debt of 
$8,300, increasing her minimum payments and increasing the 
amount that went to finance charges instead of the principal 
debt. The result was that, despite making steady payments 
totaling $2,400 over 12 months and keeping her purchases to 
less than $100, Ms. Hard's credit card debt decreased by only 
$350. According to Mrs. Hard, out of more than $5,600 that she 
paid to Discover over a longer period of time, more than $3,400 
went solely to interest charges. Ms. Hard testified that the 
unilateral interest rate increase imposed on her by Discover, 
despite her record of on-time payments, had caused great 
hardship for her family.
    Millard Glasshof of Milwaukee, Wisconsin, is a senior 
citizen on a fixed income. He testified that, for many years, 
he had made a $119 monthly payment to Chase Bank to pay off a 
$5,000 debt on a closed credit card account and was gradually 
reducing the amount owed. In December 2006, according to Mr. 
Glasshof, Chase suddenly increased his interest rate from 15 
percent to 17 percent, and then hiked it again to 27 percent. 
He said that Chase applied the new 27 percent rate 
retroactively to his existing debt, which meant that, out of 
his $119 payment, $114 went to pay finance charges and only $5 
went to reducing his principal debt. Due to the new high 
interest rates as well as the imposition of excessive fees, Mr. 
Glasshof testified that, despite his making payments totaling 
$1,300 over a 12-month period, his credit card debt did not go 
down at all.
    Bonnie Rushing of Naples, Florida, described her experience 
with a Bank of America credit card that carried an interest 
rate of about 8 percent. She testified that, in April 2007, 
despite a history of timely payments on her credit card debt, 
Bank of America nearly tripled her interest rate to 23 percent. 
According to Ms. Rushing, she had received no prior 
notification of the rate hike. Ms. Rushing testified that a 
bank representative told her she had no recourse other than to 
accept the increased interest rate, pay off the account with 
another credit card, or try to renegotiate an interest rate 
higher than the prior 8 percent rate. Ms. Rushing testified 
that she asked to close the account and pay off the existing 
debt at the prior 8 percent rate, but was told it was not an 
option. Ms. Rushing testified that she closed the account and, 
after complaining to the Florida Attorney General, the 
Subcommittee, and her card sponsor, she was able to get Bank of 
America to restore the 8 percent rate she had been paying.
    The second hearing panel heard from three leading credit 
card issuers: Bruce Hammonds, President of Bank of America Card 
Services; Roger Hochschild, President and Chief Operating 
Officer of Discover Financial Services; and Ryan Schneider, 
President for Card Services at Capital One. Mr. Hammonds 
described the benefits that credit cards provide to consumers 
and the need to use risk-based pricing to ensure that credit is 
widely available and reduce costs for the least risky 
borrowers. Mr. Hammond testified that credit card issuers 
employ different risk-based pricing strategies, and consumers 
can make informed choices among them. Mr. Hochschild testified 
that Discover's ability to make risk-based and default-based 
price adjustments to annual percentage rates allows them to 
offer credit to a wider segment of the public, and price credit 
at a level appropriate for each borrower. According to Mr. 
Hochschild, many credit card users have seen the costs of 
credit come down. Mr. Hochschild testified that changes in 
interest rates occur for several reasons, including changes 
driven by a customer's payment behavior and changes reflecting 
credit costs and risks to an issuer's credit card portfolio.
    Mr. Schneider testified that a flexible pricing structure 
is an essential tool in the safe and sound underwriting of 
open-ended, unsecured credit products. He testified that the 
ability to modify the terms of a credit card agreement to 
accommodate changes over time to the economy or the 
creditworthiness of consumers must be preserved as a matter of 
fiduciary responsibility. He testified that the consequences of 
imposing severe restrictions on the ability to reprice such 
loans in response to these changes could include significant 
reductions in the availability of credit to many and higher 
pricing for all, particularly for customers who pose a higher 
level of risk. Mr. Schneider testified that Capital One 
supported permitting consumers to reject a new interest rate in 
exchange for stopping the use of their card, and paying off 
their existing balance at their previous rate, and requiring a 
45-day advance repricing notification.
    In addition to the testimony of Ms. Hard, Mr. Glasshof, and 
Ms. Rushing, the hearing presented evidence that retroactive 
interest rate hikes on consumers with on-time payment histories 
were common in the credit card industry. Both Senator Levin's 
and Senator Dodd's credit card reform bills introduced in 2007 
and 2008, as described earlier, included provisions to end this 
type of unfair credit card practice.
I. Speculation In the Crude Oil Market (Joint Hearing, Permanent 
        Subcommittee on Investigations and the Subcommittee on Energy 
        of the Committee on Energy and Natural Resources) (December 11, 
        2007)
    In June 2006, the Subcommittee released a bipartisan staff 
report entitled, The Role of Market Speculation In Rising Oil 
and Gas Prices: A Need To Put The Cop Back On The Beat. It 
found that the traditional forces of supply and demand no 
longer fully accounted for rising prices and ongoing price 
volatility in the U.S. oil and gasoline markets. The report 
found that, in 2006, market speculation had also contributed to 
rising oil and gasoline prices, perhaps accounting for $20 out 
of a $70 barrel of oil. The report made a number of 
recommendations to increase market oversight and stop price 
manipulation and excessive speculation. In December 2007, the 
Subcommittee held a joint hearing with the Senate Subcommittee 
on Energy to examine further the reasons for rising U.S. oil 
prices despite adequate U.S. supplies of oil, and the role of 
speculative trades in elevating energy prices.
    The hearing focused on the role of speculators in driving 
up oil prices. Data was presented showing that, in recent 
years, the trading volume for oil futures contracts had 
increased dramatically, and the percentage of oil futures 
contracts held by speculators, as opposed to parties involved 
in the actual delivery of oil, had risen from approximately 15 
percent to nearly 45 percent. Speculators were defined as 
traders seeking to profit from an increase in price as opposed 
to those seeking to hedge their position in order to assure a 
stable supply of oil at a set price. The hearing also examined 
evidence of the extent to which the Administration's policy for 
adding oil to the Strategic Petroleum Reserve (SPR), regardless 
of price, had contributed to rising oil prices by depleting 
market supplies. This issue had been explored in detail by the 
Subcommittee years earlier in a 2003 report prepared by Senator 
Levin's staff. In addition, the hearing looked at the 
disproportionate impact of sweet crude oil deliveries in 
Cushing, Oklahoma on U.S. oil prices overall. That particular 
type of sweet crude oil provides the benchmark price for U.S. 
crude oil in standard futures contracts on the New York 
Mercantile Exchange (NYMEX), which means that changes in its 
price can cause price swings across the entire U.S. oil market.
    Four witnesses provided testimony about the likely cause of 
oil price increases. According to Guy F. Caruso, Administrator 
of the Energy Information Administration (EIA), research by 
EIA, CFTC, and other agencies indicated that recent oil price 
increases were caused by a confluence of multiple supply and 
demand factors: strong world economic growth, moderate supply 
growth from non-OPEC nations, OPEC production decisions, low 
spare production capacity, tight global commercial inventories, 
refining bottlenecks, and ongoing geopolitical risks. He 
discounted the role of speculative trades in producing rising 
oil prices.
    The other three witnesses disagreed. Fadel Gheit, a Wall 
Street energy analyst, testified that, in his view, oil prices 
were inflated by as much as 100 percent from excessive 
speculation in the oil markets. He noted that this view was 
supported by the current Energy Secretary, most OPEC ministers, 
and the heads of major international oil companies. He urged 
regulation of oil trading to improve transparency, discourage 
excessive speculation, and prevent conflicts of interest by 
traders. Edward N. Krapels, Director of Financial Energy Market 
Services at Energy Security Analysis, Inc., concurred that 
financial speculators were driving up oil prices and that the 
government should respond by increasing disclosure and 
regulating the market. Dr. Philip K. Vergleger, Jr., an oil 
expert and President of PK Verleger, LLC, likewise testified 
that speculation was responsible for driving up oil prices in 
commodity markets. He indicated that oil prices had also 
increased because of the increased demand fueled by the 
Administration's large purchase of sweet crude oil for the SPR.
    In February 2008, Senator Levin joined Senator Dorgan and 
others in introducing legislation, S. 2598, to place a 
moratorium on purchases of high-priced oil for the SPR. A 
similar House bill, H.R. 6022, was enacted into law a few 
months later.
J. United Nations Development Program: A Case Study of North Korea 
        (January 24, 2008)
    In 2007, as part of an ongoing inquiry into management 
issues at the United Nations (UN), the Subcommittee commenced 
an examination into allegations of mismanagement and misconduct 
in the operations of the United Nations Development Program 
(UNDP) in the Democratic People's Republic of Korea (DPRK). 
Over the course of its investigation, the Subcommittee 
collected voluminous documents and interviewed dozens of 
individuals, including persons from the U.S. Mission to the 
United Nations, UNDP, other U.N. organizations, financial 
institutions, and the DPRK's Permanent Mission to the United 
Nations.
    On January 24, 2008, the Subcommittee held a hearing and 
released a bipartisan staff report on its investigation. The 
report found that the UNDP had operated in North Korea with 
inappropriate staffing, questionable use of foreign currency 
instead of local currency, and insufficient administrative and 
fiscal controls. The report also showed how, in 2002, the DPRK 
government had used its relationship with the United Nations to 
execute deceptive financial transactions, moving over $2.7 
million of its own funds from Pyongyang to DPRK diplomatic 
missions abroad through a bank account intended to be used 
solely for UNDP activities and referencing UNDP in the wire 
transfer documentation. The report found that the UNDP also 
transferred U.N. funds to a company that, according to a letter 
from the U.S. State Department to UNDP, had ties to an entity 
involved in DPRK weapons activity. Additionally, the report 
found that, by preventing access to its audits and not 
submitting to the jurisdiction of the U.N. Ethics Office, the 
UNDP had impeded reasonable oversight and undermined its 
whistleblower protections.
    The hearing heard from three panels of witnesses. The first 
panel featured the Hon. Zalmay Khalilzad, U.S. Ambassador to 
the United Nations, and the Hon. Mark Wallace, U.S. Ambassador 
to the United Nations for Management and Reform. The two 
ambassadors discussed a number of U.N. reform efforts, 
including establishment of the Independent Audit Advisory 
Committee (IAAC); extension of the U.N. ethics code to apply to 
the overall U.N. system, including U.N. Funds and Programmes; 
ongoing work by the U.N. Procurement Task Force; and the U.N. 
Transparency and Accountability Initiative (UNTAI) aimed at 
ensuring that Funds and Programme funds are delivered 
efficiently and effectively.
    Both ambassadors discussed problems related to UNDP 
operations in North Korea. They noted that the UNDP operations 
had been shut down in March 2007, and a May 31, 2007 Board of 
Auditors preliminary inquiry had validated concerns that the 
UNDP acted in North Korea in violation of U.N. policies and 
rules by: (1) making payments in hard foreign currency; (2) 
utilizing staff provided by the North Korean government in core 
UNDP functions; and (3) failing to make adequate project site 
visits.
    The second panel featured GAO which has conducted a number 
of studies over the years on issues related to the United 
Nations. GAO testified that recent events demonstrated the 
continuing need to reform and modernize the United Nations in 
such areas as management, ethics, procurement, and 
accountability. GAO attributed the lack of progress in various 
budgetary, financial management, and administrative reforms to, 
in part, disagreements among member states about the priorities 
and importance of U.N. management reform efforts; the lack of 
comprehensive implementation plans for some management reform 
proposals; and administrative policies and procedures that 
complicate human resource reforms. GAO also testified that the 
governing bodies responsible for U.N. oversight, as well as 
member states, lacked full access to internal U.N. audit 
reports that identify and analyze critical issues.
    The third panel featured four key U.N. officials: Frederick 
Tipson, Director of the UNDP Liaison Office; David Lockwood, 
Deputy Director of the UNDP Bureau for Asia and the Pacific; 
David Morrison, UNDP Director of Communications; and Robert 
Benson, Director of the U.N. Ethics Office. The Subcommittee 
acknowledged the privileges and immunities of the United 
Nations and expressed appreciation that the U.N. witnesses had 
voluntarily agreed to brief the Subcommittee. The UNDP 
officials discussed the UNDP operations in DPRK, noting that 
the North Korean development projects presented a host of 
management and administrative challenges. Mr. Tipson noted 
that, contrary to some allegations, the evidence showed that 
the UNDP had not transferred hundreds of millions of dollars in 
hard currency to the North Korean Government. He stated that 
the objective of the UNDP as an organization must be to satisfy 
the standards of their major government supporters, and that 
the organization was sufficiently transparent and accountable 
to provide confidence in its operations. He agreed, however, to 
communicate to UNDP management concerns about the existing 
restrictions on access to UNDP and other U.N. audit reports.
    Mr. Benson briefed the Subcommittee on the establishment 
and jurisdiction of the U.N. Ethics Office of the United 
Nations Secretariat and its ability to review cases of 
retaliation against whistleblowers working at U.N. Funds and 
Programmes, such as UNDP. He noted that the U.N. Ethics Office 
had been established as a new and independent office within the 
U.N. Secretariat reporting directly to the Secretary-General. 
According to Mr. Benson, the new U.N. Ethics Office's 
jurisdiction was limited to the U.N. Secretariat, did not reach 
the U.N. Funds and Programmes, and could not protect UNDP 
whistleblowers. He noted that the heads of the U.N. Funds and 
Programmes had agreed to establish a single ethics code and 
oversight system, but that was outside his office.
K. Medicare Vulnerabilities: Payments for Claims Tied to Deceased 
        Doctors (July 9, 2008)
    As part of an ongoing investigation into waste, fraud, and 
abuse in the Medicare and Medicaid programs, on July 9, 2008, 
the Subcommittee held a hearing and released a bipartisan staff 
report on the payment by Medicare of durable medical equipment 
(DME) claims using identification numbers belonging to deceased 
physicians. Using Medicare data from 2000-2007, the report 
estimated that nearly half a million payments, totaling about 
$76 million, had been provided to medical equipment suppliers 
submitting claims using the identification numbers of 17,000 
deceased doctors, which is about half of the deceased doctor 
population.
    For many years, Medicare had required all medical claims to 
include an identifier for the prescribing physician. The 
identifier, until recently, was called the Unique Physician 
Identification Number (UPIN). In 2001, the Inspector General 
(IG) of the U.S. Department of Health and Human Services (HHS) 
issued a report alerting the Centers for Medicare and Medicaid 
Services (CMS) to failures in the UPIN system after finding 
that, in 1999 alone, over $90 million had been paid for medical 
equipment claims with invalid UPINs. In response, CMS 
instructed the contractors that maintained the UPIN registry to 
review the UPIN database, eliminate UPINs for deceased 
physicians, and keep the registry updated going forward. The 
contractors were also told to modify the claims process to bar 
payment of claims with invalid UPINs. CMS reported to the HHS 
IG that the needed UPIN reforms had been completed, but neither 
CMS nor its contractors ever tested them to ensure they worked. 
The Subcommittee's investigation showed that, despite the 2001 
reform effort, CMS continued to pay millions of dollars of 
Medicare claims referencing deceased physicians.
    The hearing took testimony from three agency officials 
about the problem: Herb Kuhn, CMS Deputy Administrator; Robert 
Vito, Regional HHS IG; and William E. Gray, Deputy Commissioner 
at the Social Security Administration (SSA). Mr. Vito discussed 
three consecutive HHS IG reports that had identified problems 
with inaccurate UPIN data, the most recent of which, in 2003, 
found that 52 percent of medical providers in the UPIN database 
had inaccurate information in at least one of the practice 
settings. Mr. Vito noted that CMS had decided to replace the 
UPIN system and was in the process of converting to a new 
National Provider Identifier (NPI) system, with stronger 
controls, including Social Security number verifications. He 
voiced concerns, however, that initial IG work had already 
identified invalid physician identifiers in the new NPI system 
and that additional studies were needed. Mr. Gray described 
SSA's procedures for providing death information to CMS on an 
electronic and automated systems, to facilitate contractor 
efforts to update the NPI system and remove identifiers for 
deceased physicians. Mr. Kuhn described CMS' efforts to ensure 
that invalid provider numbers are not used to perpetrate 
Medicare fraud, including its intent to work with the IG and 
SSA to ensure the NPI system was effective. CMS also committed 
to instituting software changes to bar payment of Medicare 
claims with invalid physician identifiers, and to testing those 
changes once they were in place to make sure they worked.
L. Tax Haven Banks and U.S. Tax Compliance (July 17 and 25, 2008)
    Since 2001, the Subcommittee has devoted investigative 
resources to exposing tax haven and tax shelter abuses that are 
undermining the integrity of the Federal tax system, diverting 
tens of billions of dollars each year from the U.S. Treasury, 
and shifting the tax burden from high income corporations and 
individuals onto the middle class. The Subcommittee has 
determined that offshore tax abuses alone result in an 
estimated revenue loss of $100 billion in unpaid taxes each 
year. In July 2008, the Subcommittee held two days of hearings 
and released a bipartisan staff report demonstrating how two 
offshore banks, UBS and LGT, had facilitated tax dodging by 
U.S. taxpayers and used offshore secrecy laws to hide the 
actions of both their clients and their own personnel.
    UBS AG is one of the largest financial institutions in the 
world, with headquarters in Switzerland and banking branches 
across the United States and other countries. LGT Bank is the 
leading private bank in Liechtenstein and is owned by the 
Liechtenstein royal family. The report released by the 
Subcommittee detailed how both banks opened accounts for U.S. 
clients and deliberately helped them hide assets, dodge taxes, 
and duck creditors and courts. At the hearing, UBS admitted 
helping over 19,000 U.S. taxpayers open Swiss bank accounts 
with about $18 billion in assets that were not disclosed to the 
IRS. UBS promised to close those accounts and no longer offer 
Swiss accounts to U.S. taxpayers without notifying the IRS of 
the account openings. With respect to LGT, the report presented 
seven case histories of U.S. persons who opened LGT accounts 
and used the services of the bank and its affiliates to conceal 
assets and engage in tax evasion. The hearing also presented a 
list of some of the deceptive practices used by the two tax 
haven banks and offered recommendations to stop the abuses.
    On the first day of hearings, a half dozen witnesses 
appeared before the Subcommittee. The opening panel took 
testimony from two U.S. Government officials involved in the 
fight against offshore tax abuse: Hon. Douglas H. Shulman, IRS 
Commissioner, and the Hon. Kevin O'Connor, Associate Attorney 
General at the U.S. Department of Justice (DOJ). Mr. Shulman 
discussed some of the tools used by the IRS to stop offshore 
tax evasion, including requests for information about foreign 
bank accounts made under tax treaties and tax information 
exchange agreements. He also discussed use of so-called ``John 
Doe summons,'' which are summons that request information 
related to a class of U.S. taxpayers who may be violating tax 
laws but cannot be identified by name. Mr. O'Connor discussed 
DOJ's role in combating offshore tax evasion through civil and 
criminal tax cases. He described DOJ efforts to pursue 
professionals who help create and promote offshore tax evasion 
schemes, including tax attorneys, accountants, and bankers. He 
also described DOJ's use of tax treaties, tax information 
exchange agreements, and Mutual Legal Assistance Treaties to 
obtain evidence.
    The hearing next accepted sworn testimony from Henrich 
Kieber, a former LGT employee who had provided over 12,000 
pages of internal LGT documents detailing accounts opened by 
U.S. persons. Because Mr. Kieber was in a witness protection 
program, the Subcommittee presented a video recording of his 
statement. In it, he described some of the tactics used by LGT 
to help clients keep assets out of the reach of tax 
authorities, such as transferring funds through shell 
corporations or foundations in an effort to confuse audit 
trails tracing wire transfers; requiring LGT bankers to use pay 
phones to contact clients; using pre-established code words for 
clients or accounts; and retaining account statements in 
Liechtenstein.
    On the next panel, two witnesses invoked their right to 
remain silent under the Fifth Amendment of the U.S. 
Constitution. The witnesses were Shannon Marsh, the son of a 
Florida construction company owner who had opened accounts in 
the names of four Liechtenstein foundations with combined 
deposits of nearly $50 million; and William Wu, a New York 
resident who established two Liechtenstein foundations at LGT, 
transferred substantial sums to them, and conducted a sham sale 
of his New York residence to an offshore company he secretly 
controlled. A third witness was Steven Greenfield, a New York 
toy importer with $30 million in offshore funds that LGT sought 
to have transferred to an LGT account. Mr. Greenfield attempted 
to assert his Fifth Amendment rights at the hearing through a 
letter from his lawyer, but was instructed of his need to 
appear in person at a subsequent hearing. A fourth witness, 
Peter S. Lowy, a California resident associated with a $68 
million LGT account held in the name of a Liechtenstein 
foundation and the subject of a Subcommittee subpoena, also 
committed to appear at the later hearing.
    The next witness was Martin Liechti, a Swiss citizen who 
was the head of UBS Wealth Management Americas in Switzerland 
and who had been detained in Florida for some weeks by DOJ as a 
material witness to UBS' activities in the United States. He 
had been subpoenaed by the Subcommittee to testify at the 
hearing, but also asserted his right to remain silent under the 
Fifth Amendment.
    The final witness was Mark Branson, the Chief Financial 
Officer of UBS Global Wealth Management and Business Banking in 
Switzerland. As a Swiss citizen residing outside of the United 
States, Mr. Branson was not subject to the Subcommittee's 
subpoena authority and appeared on a voluntary basis. Mr. 
Branson began his statement with an apology on behalf of UBS 
for its compliance failures and committed the bank to operating 
in the United States within the law. He stated that UBS 
intended to close all Swiss accounts that had been opened for 
U.S. accountholders without alerting the IRS, and that UBS 
would no longer open such accounts. He testified that UBS was 
working with U.S. authorities to identify the names of the U.S. 
accountholders who may have been engaged in tax fraud.
    The Subcommittee had also invited LGT to appear, but LGT 
was outside the reach of the Subcommittee's subpoena authority 
and chose not to attend the hearing.
    A week later, on July 25, the Subcommittee reconvened the 
hearing to take testimony from the two witnesses who had not 
appeared in person on July 17: Steven Greenfield and Peter 
Lowy. Both made appearances and asserted their rights to remain 
silent under the Fifth Amendment.
M. Payroll Tax Abuse: Businesses Owe Billions and What Needs To Be Done 
        About It (July 29, 2008)
    Consistent with the Subcommittee's ongoing interest in 
exposing schemes involving tax evasion, on July 29, 2008, the 
Subcommittee held a hearing on the problem of unpaid payroll 
taxes. Payroll taxes require businesses to withhold certain 
amounts from employee paychecks and remit those amounts to the 
IRS to pay individual Social Security and Medicare taxes. 
Businesses are also required to remit employer matching 
amounts. At the hearing, the Subcommittee released a GAO 
report, Tax Compliance: Businesses Owe Billions in Federal 
Payroll Taxes (GAO-08-617), which had been prepared at the 
request of the Subcommittee and which found that over 1.6 
million businesses owed in excess of $58 billion in unpaid 
Federal payroll taxes.
    At the hearing, the Subcommittee heard from two witnesses. 
The first witness was GAO which summarized its report. GAO 
stated that the total amount of unpaid payroll taxes had grown 
from $49 billion in 1998, to $59 billion in 2007, but estimated 
that more than half of the debt was uncollectible. GAO 
testified that much of the debt was attributable to repeat 
offenders, as the number of businesses with over 5 years of 
unpaid taxes had increased nearly three-fold, and the number 
with over 10 years of unpaid taxes had increased five-fold. GAO 
explained that, to collect the tax, the IRS had two primary 
enforcement tools, filing liens against the business and filing 
personal claims against the business' officers or owners, but 
often failed to utilize these tools in a timely or effective 
manner. GAO noted, for example, of the cases awaiting 
assignment to an IRS agent, 80 percent did not have a tax lien 
filed. In addition, of the individuals who were subject to a 
personal claim, 43 percent never made a payment. GAO noted that 
the failure to collect these payroll taxes gave tax-delinquent 
businesses a competitive advantage over honest companies, and 
also forced tax compliant taxpayers to pick up the tab.
    The next witness was Linda Stiff, IRS Deputy Commissioner 
for Services and Enforcement. She discussed the IRS' 
enforcement efforts and future plans to collect payroll taxes. 
She noted the collections problems posed by old debt and by 
businesses that were bankrupt or out of business. She announced 
the agency's intention to establish a new task force to better 
focus enforcement efforts on payroll tax collection and launch 
new research efforts to identify cost effective enforcement 
strategies.
    Senators Coleman and Levin made several recommendations to 
strengthen payroll tax collection. They included developing an 
expedited process to impose automatic tax liens and personal 
penalties against businesses and business officers who are 
repeat offenders; supporting the Levin-Coleman Tax Lien 
Simplification Act, S. 1124, to establish an electronic tax 
lien registry at the Federal level, which would save $570 
million over 10 years; and establishing performance metrics to 
measure payroll tax collection efforts.
N. Dividend Tax Abuse: How Offshore Entities Dodge Taxes on U.S. Stock 
        Dividends (September 11, 2008)
    In continuation of its efforts to combat offshore tax 
abuse, on September 11, 2008, the Subcommittee held a hearing 
and released a staff report on how major U.S. financial 
institutions have been helping offshore hedge funds and other 
non-U.S. persons dodge payment of U.S. taxes on U.S. stock 
dividends. The hearing showed how these financial institutions 
enabled their offshore clients to use complex derivative and 
stock loan transactions to recharacterize their taxable U.S. 
stock dividends as allegedly tax-free dividend equivalents or 
substitute dividend payments. According to the GAO, in 2003, 
$42 billion in U.S. stock dividend payments were sent abroad, 
but less than 5 percent, or $2 billion was paid as tax. The 
general tax rate for non-U.S. stockholders is 30 percent, 
unless their country of residence has a lower negotiated rate 
with the United States, usually 15 percent, which indicates 
that billions of dollars in tax revenue were being lost each 
year due to dividend tax abuses. To illustrate how this was 
happening, the report presented six case histories of large 
U.S. financial institutions engaging in such ``dividend 
enhancement'' practices. In addition, the report showed that 
the offshore hedge funds benefiting from these practices were, 
in large part, offshore in name only, while their main offices, 
key decision makers, and investment professionals were located 
in the United States.
    The hearing took testimony from four panels of witnesses. 
On the first panel, an international tax law expert, Professor 
Reuven S. Avi-Yonah from the University of Michigan School of 
Law, explained different dividend payment structures and how, 
despite the equivalent financial character among them, they are 
treated differently for tax purposes. He testified that, where 
there are multiple ways to achieve the same economic result, 
there is an open invitation for abuse by taxpayers to avoid 
taxation.
    The next panel featured witnesses from three offshore hedge 
funds: Joseph M. Manogue, Treasurer of Maverick Capital, Ltd.; 
Richard Potapchuck, Director of Treasury and Finance at 
Highbridge Capital Management; and Gary Wolfe, Managing 
Director of Angelo, Gordon and Co. All three acknowledged that 
their hedge funds had engaged in derivative transactions and 
stock loans to avoid payment of U.S. stock dividend taxes. Mr. 
Manogue testified that Maverick Capital had engaged in tax-free 
dividend transactions until 2007, when the financial 
institutions with whom they did the transactions suspended 
them, because the IRS was reviewing their legitimacy. Mr. 
Potapchuck testified that if the 30 percent withholding tax 
were to be applied to U.S. stock dividends, it would likely 
diminish the volume of stock dividends paid to non-U.S. 
investors who would shift to other tax-free dividend-paying 
securities investments. Mr. Wolfe testified that the swap 
transactions were carried out to maximize returns for 
investors, and that the tax benefits associated with swaps for 
non-U.S. investors were a significant factor in evaluating the 
overall return. All three witnesses also acknowledged that 
their offshore hedge funds had no employees or physical offices 
in the Cayman Islands where they were registered, and instead 
had all of their key decisionmakers in the United States.
    The next panel featured representatives from three large 
financial institutions engaged in tax-free dividend 
transactions with non-U.S. investors: John DeRosa, Managing 
Director and Global Tax Director at Lehman Brothers Inc.; 
Matthew Berke, Managing Director and Global Head of Equity Risk 
Management at Morgan Stanley and Co.; and Andrea Leung, Global 
Head of Synthetic Equity Finance at Deutsche Bank AG. All three 
testified that they believed their usage of swaps and stock 
loans that referenced dividend amounts was in compliance with 
U.S. tax laws. In their view, investors engaged in those 
transactions in order to gain leverage, obtain operational and 
other efficiencies, and execute strategies hidden from the 
scrutiny of competitors. Mr. Berke also acknowledged that the 
tax benefits were an attractive reason for engaging in the swap 
transactions.
    The final panel took testimony from the Hon. Douglas H. 
Shulman, IRS Commissioner. Mr. Shulman acknowledged that the 
IRS had observed swaps and stock loan transactions that were 
not being conducted for bona fide business purposes, but failed 
to issue guidance or take strong enforcement actions. He noted 
that the IRS had recently initiated an extensive review of the 
transactions to identify and put an end to abusive practices. 
He also stated that IRS was working with the Treasury 
Department to review, and modify if necessary, IRS Notice 97-
66, the primary guidance that permits investors to avoid 
withholding on the payment of dividends in certain securities 
lending deals, given that companies have been able to 
circumvent the original purpose of the notice.

         III. Legislative Activities During the 110th Congress

    The Permanent Subcommittee on Investigations does not have 
legislative authority, but because its investigations play an 
important role in bringing issues to the attention of Congress 
and the public, the Subcommittee's work frequently contributes 
to the development of significant legislative initiatives. The 
Subcommittee's activity during the 110th Congress was no 
exception, with Subcommittee hearings and Members playing 
prominent roles in the development of a number of legislative 
initiatives.
A. Credit Card Accountability Responsibility and Disclosure Act (S. 
        3252)
    On May 15, 2007, Senator Levin introduced S. 1395, the Stop 
Unfair Practices in Credit Cards Act, to put an end to the 
credit card abuses examined during the Subcommittee's hearings. 
In 2008, Senator Chris Dodd, Chairman of the Committee on 
Banking, Housing, and Urban Affairs, joined with Sen. Levin and 
others to introduce an even stronger bill, S. 3252, the Credit 
Card Accountability Responsibility and Disclosure Act. This 
Dodd-Levin bill incorporated almost all of the provisions from 
the Levin bill and added additional provisions from an earlier 
Dodd bill, resulting in the strongest consumer protections of 
any credit card reform bill in Congress.
    Among other provisions, the Dodd-Levin bill would prohibit 
interest charges on any portion of a credit card debt which the 
card holder paid on time during a grace period; prohibit 
interest rate hikes for cardholders who pay on time and meet 
their credit card obligations; require increased interest rates 
to apply only to future credit card debt, and not to debt 
incurred prior to the increase; prohibit the charging of 
interest on credit card transaction fees, such as late fees and 
over-the-limit fees; prohibit the charging of repeated over-
the-limit fees for a single instance of exceeding a credit card 
limit; require card issuers to offer consumers the option of 
operating under a fixed credit limit that cannot be exceeded; 
prohibit charging a fee to allow a credit card holder to make a 
payment on a credit card debt, whether payment is by mail, 
telephone, electronic transfer, or otherwise; and require 
payments to be applied first to the credit card balance with 
the highest rate of interest, and in a manner that would 
minimize finance charges.
    The bill was referred to the Banking Committee for further 
consideration.
B. Stop Tax Haven Abuse Act (S. 681)
    On February 17, 2007, Senators Levin, Coleman, and Obama 
introduced the Stop Tax Haven Abuse Act, a comprehensive bill 
to eliminate offshore tax haven and tax shelter abuses. This 
legislation arises from Subcommittee's 4 years of investigation 
into offshore tax havens, abusive tax shelters, and the 
professionals who design, market, and implement these tax 
dodges. The loss to the Treasury from offshore tax evasion 
alone approaches an estimated $100 billion per year, including 
$40 to $70 billion from individuals and another $30 to $50 
billion from corporations engaging in offshore tax evasion.
    Among other measures, the bill would strengthen penalties 
on tax shelter promoters; authorize the Treasury to take 
special measures against foreign jurisdictions and financial 
institutions that impede U.S. tax enforcement; establish 
rebuttable presumptions in tax enforcement cases that offshore 
companies and trusts are controlled by the U.S. persons who 
send or receive assets from them; and stop offshore trusts from 
claiming they can buy jewelry, artwork, or real estate for use 
by U.S. beneficiaries on a tax-free basis. It would also 
strengthen detection of offshore misconduct by requiring U.S. 
financial institutions to report certain offshore activities to 
the IRS; and require hedge funds and company formation agents 
to understand the identity of their offshore clients and report 
suspicious activity to U.S. law enforcement.
    In addition, Section 303 of the bill marked the first time 
that legislation had been introduced in Congress to prohibit 
the U.S. Patent and Trademark Office from issuing patents for 
``inventions'' to avoid taxes. The Patent Office has already 
issued numerous tax patents, and is considering hundreds more. 
Unscrupulous tax shelter promoters could claim a patent 
represents an official endorsement of an abusive tax product 
and use the patent to generate income. Tax patents issued for 
legitimate tax avoidance strategies could require taxpayers to 
pay a royalty fee to minimize their taxes, even though all 
persons ought to be able to use legal means to reduce their tax 
burden. Companies could even patent a legal method to minimize 
taxes and refuse to license the patent to competitors in order 
to prevent them from lowering their operating costs. Such tax 
patents could end up hindering productivity and competition. A 
companion bill was introduced in the House (H.R. 2136), and a 
prior bill was introduced in the last Congress (S. 2210). The 
bill was referred to the Senate Finance Committee for further 
consideration.
C. Tax Lien Simplification Act (S. 1124)
    On April 17, 2007, Senators Levin and Coleman introduced S. 
1124, the Tax Lien Simplification Act, to simplify and 
modernize the Federal tax lien system. The bill would create an 
electronic Federal tax lien registry on the Internet, available 
to the public at no cost, replacing the current antiquated 
system requiring Federal tax liens to be filed on paper in more 
than 4,000 locations across the country. According to the IRS, 
moving to this electronic registry would save taxpayers an 
estimated $570 million over 10 years.
    Tax liens are the principal means used by the IRS to 
collect funds from tax delinquents. Tax lien notices must be 
made public, and current law requires the IRS to file public 
notices on paper in more than 4,000 local recording offices, 
each with its own formatting requirements. An electronic 
national tax lien registry would simplify and standardize the 
filing process, reduce the incidence of lost and misfiled tax 
liens, make it easier for taxpayers to review their liens and 
fix errors, reduce staffing needs, allow the public to search 
the registry through the Internet at no cost, and enable the 
IRS to eliminate tax liens more quickly once they are paid. The 
bill would give the Treasury 2 years to establish the registry, 
but also allow continued use of the old system during a 
transition period.
    The bill was referred to the Finance Committee for further 
consideration.
D. The Medicare Improvements for Patients and Providers Act (Public Law 
        110-275)
    In response to a 2007 Subcommittee hearing revealing that 
over 30,000 Medicare health care service providers owed unpaid 
taxes exceeding $1 billion, on May, 3, 2007, Senators Coleman 
and Levin introduced S. 1307, the Medicare Provider 
Accountability Act. The Subcommittee hearing disclosed that, 
despite a legal requirement to do so, the Federal Government's 
lead agency in the Medicare program, the Centers for Medicare 
and Medicaid Services (CMS), had failed to subject Medicare 
payments to the Federal Payment Levy Program, which screens 
Federal payments and, if the recipient is tax-delinquent, takes 
a portion of the payment to reduce the recipient's outstanding 
tax debt. The Coleman-Levin bill sought to require CMS to meet 
certain deadlines for bringing Medicare payments into the levy 
program.
    In 2008, Congress enacted the Medicare Improvements for 
Patients and Providers Act to avert a payment reduction to 
physicians in Medicare. To help pay for the costs of this 
legislation, the bill included a provision based upon the 
Coleman-Levin bill. The enacted law requires Medicare, over a 
4-year period, to establish systems to apply the tax levy 
program to all Medicare payments, screen those payments to 
determine whether the recipients owe U.S. taxes, and retain a 
portion of the payments to be applied to recipients' 
outstanding tax debt. The resulting tax levies are expected to 
produce at least $335 million in tax revenues over 10 years.
E. Medicaid Levy Enhancement Act (S. 2843)
    On April 10, 2008, in response to a November 2007 
Subcommittee hearing revealing that over 30,000 Medicaid health 
care providers owed more than $1 billion in unpaid Federal 
taxes, Senators Coleman and Levin introduced S. 2843, the 
Medicaid Levy Enhancement Act.
    The Subcommittee hearing disclosed that Medicaid payments, 
which contain a mixture of Federal and State dollars, are 
currently not subject to the Federal Payment Levy Program which 
screens Federal payments and, if the recipient is tax-
delinquent, takes a portion of the payment to reduce the 
recipient's outstanding Federal tax debt. At the hearing, GAO 
testified that if tax levies had been applied to Medicaid 
payments in the seven States reviewed for the Subcommittee, the 
Federal Government could have collected between $70 and $160 
million in unpaid taxes in 2006 alone.
    The Coleman-Levin bill would amend the Federal tax levy law 
to authorize tax levies on Medicaid payments to health care 
providers. The bill was referred to the Committee on Finance 
for further consideration.
F. Ending Corporate Tax Favors For Stock Options Act (S. 2116)
    On September 28, 2007, after a Subcommittee investigation 
and hearing showing that, each year, corporations are claiming 
tens of billions of dollars in stock option tax deductions in 
excess of the stock option expenses shown on their books, 
Senator Levin introduced S. 2116, the Ending Corporate Tax 
Favors For Stock Options Act, to limit stock option tax 
deductions to the amounts recorded on company books as an 
expense.
    The bill would amend Section 83 of the tax code to require 
that corporate tax deductions for stock option compensation 
match, and not exceed, the stock option expenses shown on a 
corporation's financial statements. It would allow corporations 
to deduct stock option compensation in the same year it is 
recorded on the company books, without waiting for the options 
to be exercised; ensure research tax credits use the same stock 
option deduction when computing the ``wages'' eligible for that 
tax credit; and create a transition rule to phase in the new 
tax treatment. The bill would also eliminate favored treatment 
of corporate stock options under Section 162(m) of the tax code 
by making executive stock option deductions subject to that 
section's existing $1 million cap on allowable corporate tax 
deductions for compensation paid to the top executives of 
publicly held corporations.
    The bill was referred to the Finance Committee for further 
consideration.
G. Close the Enron Loophole Act (S. 2058) and 2008 Farm Bill (Public 
        Law 110-246)
    On September 17, 2007, Senator Levin introduced S. 2058, 
the Close the Enron Loophole Act, to eliminate an existing 
statutory provision that bars government regulation and 
oversight of key energy commodity exchanges. The legislation 
was a response to a Subcommittee investigation showing that 
commodity trades on unregulated markets like the 
Intercontinental Exchange (ICE) were affecting energy prices on 
regulated markets like the New York Mercantile Exchange 
(NYMEX), and that the lack of oversight invited price 
manipulation, excessive speculation, and inflated energy prices 
for U.S. consumers and businesses.
    The bill's key provision would close the so-called ``Enron 
loophole,'' a measure that was inserted at the behest of Enron 
and other large energy traders into the Commodity Futures 
Modernization Act of 2000 and enacted into law. Since 2000, the 
Enron loophole in Section 2(h)(3) of the Commodity Exchange Act 
has exempted from government oversight the electronic trading 
of energy commodities by large traders. Using as an example the 
Amaranth case history in which a single hedge fund dominated 
the 2006 U.S. natural gas market and inflated natural gas 
prices, the Subcommittee investigation demonstrated how the 
exemption created by the Enron loophole made it impossible for 
government regulators to prevent traders from distorting energy 
prices through large trades on unregulated exchanges. The bill 
would close the loophole and require any trading facility that 
functions as an energy exchange to be subject to CFTC oversight 
to prevent price manipulation and excessive speculation.
    The bill would also require the currently unregulated 
energy exchanges to comply with the same standards as the 
regulated futures exchanges, like NYMEX; require them to 
establish trading limits to prevent price manipulation and 
excessive speculation; provide a comprehensive new definition 
of energy commodities; and impose large-trader reporting 
requirements for trades of U.S. energy commodities on foreign 
exchanges so that U.S. regulators could monitor those trades 
for price manipulation and excessive speculation.
    In May 2008, provisions based upon the Levin bill and the 
Subcommittee's investigative work were included in the 2008 
farm bill, H.R. 6124, and enacted into law. These provisions, 
in Sections 13201-04 of the farm bill, effectively closed the 
Enron loophole, by making commodity trades that affect prices 
subject to CFTC regulation and oversight when made on an exempt 
electronic exchange, and by requiring the electronic exchanges 
that handle such trades to comply with the same key operating 
standards as regulated future exchanges.
H. Strategic Petroleum Reserve Fill Suspension and Consumer Protection 
        Act (S. 2598/H.R. 6022, Public Law 110-232)
    On February 6, 2008, Senators Dorgan, Bingaman, Levin, 
Collins, and others introduced S. 2598, the Strategic Petroleum 
Reserve Fill Suspension and Consumer Protection Act. In 2003, 
at Senator Levin's request, the Subcommittee issued a Minority 
staff report showing that an Administration policy of buying 
oil for the Strategic Petroleum Reserve (SPR) regardless of 
price was taking millions of barrels of oil off the market for 
the SPR, reducing private sector supplies, and pushing oil 
prices higher.
    On December 11, 2007, the Subcommittee held a joint hearing 
with the Subcommittee on Energy of the Committee on Energy and 
Natural Resources on rising crude oil prices and, again, raised 
questions about the Administration's SPR fill policy.
    In 2007 and 2008, crude oil prices had become very volatile 
and reached a record high of $126 per barrel, which led, in 
turn, to record high prices for fuels produced from crude oil, 
including gasoline, heating oil, diesel fuel, and jet fuel. 
These rising prices created new concerns about buying higher-
priced oil for the SPR and placing additional pressure on 
private sector supplies and U.S. oil prices. To relieve this 
pressure, the bill proposed a moratorium on filling the SPR 
until U.S. oil prices dropped below a specified level.
    On May 19, 2008, a similar companion House bill, H.R. 6022, 
was approved by Congress and became Public Law 110-232. The 
moratorium placed on SPR oil purchases remained in place for 
the rest of the year.
I. Oil Trading Transparency Act (S. 2995), and Close the London 
        Loophole Act (S. 3129)
    In mid-2008, Senator Levin introduced two additional bills 
with Senator Feinstein to address energy price manipulation and 
excessive speculation problems that were not resolved by the 
energy commodity provisions in the 2008 farm bill. Both of 
these bills focused on the issue of U.S. energy commodities, 
such as futures to buy or sell U.S.-produced crude oil and 
gasoline, that were traded on foreign exchanges outside the 
regulatory reach of the CFTC.
    The Subcommittee's investigative work had found that U.S. 
crude oil and gasoline futures were traded primarily on two 
exchanges, one in New York and the other in London. While the 
CFTC had clear authority to stop trading abuses on the New York 
exchange, its authority was less clear regarding U.S. energy 
futures traded on the London exchange. In addition, the 
Subcommittee's work showed that, under existing law, the CFTC 
obtained the information it needed to detect price manipulation 
and excessive speculation involving U.S. futures on foreign 
exchanges only through voluntary data-sharing agreements 
arranged with the relevant foreign regulators. In many 
instances, the CFTC could take an enforcement action against a 
U.S. trader on a foreign exchange to prevent manipulation or 
excessive speculation only with the cooperation and consent of 
the foreign regulator. The Levin-Feinstein bills were designed 
to close this ``London loophole'' by ensuring the CFTC had the 
same authority to detect, prevent, and punish price 
manipulation and excessive speculation for traders in the 
United States who traded energy commodities on foreign 
exchanges as the CFTC had for traders who traded on U.S. 
exchanges.
    On May 8, 2008, the first Levin-Feinstein bill, S. 2995, 
the Oil Trading Transparency Act, was introduced. This bill 
sought to require the CFTC to ensure that any foreign exchange 
operating a trading terminal in the United States for the 
trading of a U.S. energy commodity met two regulatory 
requirements that already applied to U.S. exchanges: (1) 
imposition of speculative trading limits to prevent price 
manipulation and excessive speculation; and (2) daily 
publication of trading information from the exchange to ensure 
market transparency. The bill would also require the CFTC to 
obtain information from the foreign exchange to enable it to 
determine how much trading in U.S. energy commodities was due 
to speculation.
    A month later, on June 12, 2008, the second Levin-Feinstein 
bill, S. 3129, the Close the London Loophole Act, was 
introduced. This legislation was more extensive than the first 
bill. In addition to requiring the CFTC to obtain agreements 
with foreign exchanges to impose position limits on U.S. energy 
commodities trades and provide daily trading information, the 
bill sought to strengthen the CFTC's oversight and enforcement 
capabilities by providing the CFTC with clear legal authority 
over U.S. traders directing trades through foreign exchanges. 
For example, the bill would make it clear that the CFTC had the 
authority to impose its own recordkeeping requirements on U.S. 
traders conducting trades on foreign exchanges, to direct those 
U.S. traders to reduce their holdings on a foreign exchange 
when those holdings exceeded applicable position limits, and to 
prosecute U.S. persons who manipulate or attempt to manipulate 
the price of a commodity in interstate commerce through trading 
on a foreign exchange.
    The two Levin-Feinstein bills sought to ensure that the 
U.S. Government had the information, authority, and enforcement 
tools needed to protect American markets from price 
manipulation and excessive speculation carried out through 
foreign exchanges. They also sought to ensure that U.S. energy 
traders would no longer be able to avoid CFTC oversight and 
enforcement authority by routing their trades through a foreign 
exchange. Both bills were referred to the Committee on 
Agriculture, Nutrition, and Forestry for further consideration.
J. Over-The-Counter Speculation Act (S. 3255)
    On July 10, 2008, Senators Levin and Feinstein introduced 
S. 3255, the Over-The-Counter Speculation Act, to give the CFTC 
oversight authority to stop price manipulation and excessive 
speculation in the currently unregulated over-the-counter (OTC) 
markets for commodity trades.
    The 2008 farm bill later enacted into law included 
provisions to impose CFTC regulation and oversight for the 
first time on electronic exchanges used by large commodity 
traders. Those provisions did not, however, apply to the rest 
of the OTC market, which involves commodity trades conducted 
through voice brokers, swap dealers, direct party-to-party 
negotiations, or other non-electronic means. Many of these OTC 
trades involve swap contracts that reference specified 
commodity prices and, due to the swaps close resemblance to 
futures contracts, have raised concerns that they might affect 
commodity prices on regulated futures markets.
    The bill would authorize the CFTC for the first time to 
gather and analyze OTC trading information, conduct inquiries 
into particular OTC trades, and, if appropriate, require 
traders to reduce their holdings to prevent price manipulation 
or excessive speculation. The bill would, in effect, enable the 
CFTC to police all types of OTC trades in a manner similar to 
futures trades, and ensure that traders could not avoid CFTC 
reporting requirements or trading limits by using swaps in the 
unregulated OTC market instead of futures on a regulated 
exchange.
    The bill was referred to the Committee on Agriculture, 
Nutrition, and Forestry for further consideration.
K. Prevent Excessive Speculation Act (S. 3577)
    On September 25, 2008, Senator Levin introduced S. 3577, 
the Prevent Excessive Speculation Act, together with Senator 
Harkin, Chairman of the Agriculture Committee, and Senator 
Bingaman, Chairman of the Energy Committee. This legislation 
represented their collective efforts to present the strongest 
and most workable measures to prevent excessive speculation and 
price manipulation in U.S. energy markets. The bill 
incorporated a number of measures from prior Levin-Feinstein 
bills and other legislation, while also adding new provisions. 
The bill's objectives were to close loopholes in the U.S. 
commodities laws that impeded U.S. oversight of U.S. energy 
trades on foreign exchanges and in the OTC markets; ensure that 
large commodity traders could not use those markets to avoid 
CFTC oversight or trading limits; and strengthen disclosure, 
oversight, and enforcement in all aspects of U.S. commodity 
markets to restore the financial regulation crucial to 
protecting American consumers, businesses, and economy from 
further energy and other pricing shocks.
    The bill proposed four sets of provisions. First, it would 
require the CFTC, rather than individual exchanges, to set 
position limits on the amount of futures contracts any trader 
can hold on regulated exchanges to prevent excessive 
speculation and price manipulation. Second, it would close the 
``London loophole'' by giving the CFTC the same authority to 
police traders in the United States who trade U.S. futures 
contracts on a foreign exchange as it has to police trades on 
U.S. exchanges, and by requiring foreign exchanges that want to 
install trading terminals in the United States to impose 
comparable position limits as the CFTC imposes on domestic 
exchanges to prevent excessive speculation and price 
manipulation. Third, the bill would close the ``swaps 
loophole'' by requiring traders in the over-the-counter energy 
markets to report large trades to the CFTC, and it would 
authorize the CFTC to set trading limits in the OTC markets to 
prevent excessive speculation and price manipulation. Finally, 
it would require the CFTC to revise the standards that allow 
certain traders who use futures markets to hedge their holdings 
so that those traders are bound by the same speculation limits 
that apply to everyone else.
    The Levin-Harken-Bingaman bill was referred to the 
Committee on Agriculture, Nutrition, and Forestry for further 
consideration.
L. Incorporation Transparency and Law Enforcement Assistance Act (S. 
        2956)
    On May 1, 2008, Senators Levin, Coleman, and Obama 
introduced S. 2956, the Incorporation Transparency and Law 
Enforcement Assistance Act, to address inadequate State 
incorporation practices that allow criminals to form new U.S. 
corporations without disclosing their identities and use those 
corporations to commit crimes, including terrorism, drug 
trafficking, money laundering, tax evasion, financial fraud, 
and corruption.
    The legislation was based upon a 2006 Subcommittee 
investigation as well as two GAO reports requested by the 
Subcommittee examining the problem of U.S. corporations with 
hidden owners. The Subcommittee investigation found that the 50 
States establish nearly two million U.S. companies each year 
without knowing who is behind them, inviting money laundering, 
tax evasion and other misuse of U.S. companies. During the 
Subcommittee's 2006 hearing, the Department of Justice, IRS, 
and Department of Treasury's Financial Crimes Enforcement 
Network each testified that the failure of States to collect 
beneficial ownership information for the legal entities they 
form has impeded Federal efforts to investigate and prosecute 
terrorism and other crimes.
    In response to the concerns expressed at the hearing, the 
National Association of Secretaries of State developed a 
proposal to strengthen State incorporation practices, but it 
fell far short of the needed reforms. Because the States 
appeared unable to resolve the problem on their own, S. 2956 
was introduced to set minimum standards for the States to 
acquire beneficial ownership information for the corporations 
or limited liability companies they form, and to provide that 
information to law enforcement in response to a subpoena or 
summons. The bill was referred to the Committee on Homeland 
Security and Governmental Affairs for further consideration.

                    IV. Reports, Prints, and Studies

A. Excessive Speculation in the Natural Gas Markets, June 25, 2007 
        (Report Prepared by the Majority and Minority Staffs and 
        released in conjunction with the Subcommittee Hearing on June 
        25, 2007) (Printed in June 25th and July 9th hearing record.)
    Since 2001, the Subcommittee has been examining the 
structure, operation, and pricing mechanisms of U.S. energy 
markets. In June 2006, the Subcommittee issued a report, The 
Role of Market Speculation in Rising Oil and Gas Prices: A Need 
to Put the Cop Back on the Beat analyzing the extent to which 
the increasing amount of financial speculation in energy 
markets had contributed to the steep rise in energy prices over 
the past few years. The report concluded, ``Speculation has 
contributed to rising U.S. energy prices,'' but also that 
``gaps in available market data'' made quantification of the 
speculative component problematic.
    Shortly after the Subcommittee issued its report in 2006, 
the natural gas market entered a period of extreme price 
volatility punctuated by the collapse in September 2006 of 
Amaranth LLC (``Amaranth''), one of the largest hedge funds in 
the natural gas market. From the last week in August to the 
middle of September 2006, Amaranth's natural gas positions lost 
over $2 billion in value, precipitating the liquidation of the 
entire portfolio of the $8 billion fund.
    The collapse followed a period in late summer when natural 
gas prices began falling. For example, the price of the NYMEX 
futures contract to deliver natural gas in October 2006 fell 
from a high of $8.45 per MMBtu in late July to just under $4.80 
per MMBtu in September, the lowest level for that contract in 
over 2 years. Throughout this period, despite the price change, 
the market fundamentals of supply and demand were largely 
unchanged. Natural gas supplies were plentiful, and the amount 
of natural gas in storage remained higher than average 
throughout the summer and into the early fall.
    In October 2006, the Subcommittee began its investigation 
into the falling prices for natural gas and Amaranth's 
collapse. The Subcommittee analyzed millions of natural gas 
transactions from trading records obtained from NYMEX and ICE, 
the two principal exchanges for energy commodities, and from 
Amaranth and other traders. In addition, the Subcommittee 
conducted numerous interviews of natural gas market 
participants, including natural gas traders, producers, 
suppliers, and hedge fund managers, as well as exchange 
officials, regulators, and energy market experts. NYMEX, ICE, 
Amaranth and many traders cooperated with detailed inquiries. 
The Subcommittee also reviewed commodity market statutes and 
regulations, and researched a variety of legal issues.
    This investigation culminated in a hearing and the release 
of a 400-page bipartisan staff report on June 25, 2007. The 
trading records examined by the Subcommittee disclosed that, 
from early 2006 until its September collapse, Amaranth had 
dominated trading in the U.S. natural gas financial markets. 
Amaranth had held as many as 100,000 natural gas contracts in a 
single month, representing 1 trillion cubic feet of natural 
gas, or 5 percent of the natural gas used in the entire United 
States in a year. At times Amaranth controlled 40 percent of 
all of the outstanding contracts in the NYMEX exchange for 
natural gas in the winter season (October 2006 through March 
2007), including as much as 75 percent of the outstanding 
contracts to deliver natural gas in November 2006.
    The report found that Amaranth's large positions and trades 
caused significant price movements in key natural gas futures 
prices and price relationships. For example, Amaranth's 
purchases of contracts to deliver natural gas in the winter 
months, in conjunction with Amaranth's sales of natural gas 
contracts for delivery in the summer months, drove winter 
prices far above summer prices. These differences between 
winter and summer prices, called ``price spreads,'' were far 
higher in 2006 than in previous years--until the collapse of 
Amaranth, when the price spreads returned to more normal 
levels. On several specific dates, Amaranth's massive trades 
were responsible for large jumps in the price differences 
between the futures contracts for March and April 2007. Traders 
interviewed by the Subcommittee said that during the spring and 
summer of 2006 the differences between winter and summer prices 
were ``clearly out-of-whack,'' at ``ridiculous'' levels, and 
unjustified by supply or demand.
    The report found that many market participants were harmed 
by Amaranth's massive speculative trading. For example, 
utilities that provide gas-powered electricity or heating to 
homes, schools, and hospitals, and some industries that use 
natural gas in manufacturing paid inflated prices. Many of 
their costs were passed onto consumers.
    The report also found that the current regulatory system 
was unable to prevent Amaranth's excessive speculation in the 
2006 natural gas market. Under current law, NYMEX is required 
to monitor the positions of its traders to determine whether a 
trader's positions are too large. If a trader's position 
exceeds pre-set ``accountability levels,'' the exchange may 
require a trader to reduce its positions. The Amaranth case 
history demonstrated two critical flaws. First, NYMEX had no 
routine access to information about a trader's positions on 
ICE, the other principal commodity exchange, in determining 
whether a trader's positions were too large. It was therefore 
impossible under the current system for NYMEX to have a 
complete and accurate view of a trader's position in 
determining whether it was too large.
    Second, the case history showed that, even if NYMEX ordered 
a trader to reduce its positions on NYMEX, that trader could 
simply shift its positions to ICE where no limits applied. The 
case history showed that is precisely what Amaranth did after 
NYMEX finally told Amaranth, in August 2006, to reduce its 
positions in two contracts nearing expiration. NYMEX's 
instructions to Amaranth did nothing to reduce Amaranth's size, 
but simply caused Amaranth's trading to move from a regulated 
market to an unregulated one.
    The evidence provided in the report showed that NYMEX and 
ICE were functionally equivalent markets. Natural gas traders 
used both markets, employing coordinated trading strategies. In 
many instances the trading volumes on ICE were comparable to or 
greater than the volumes on NYMEX. Traders used the natural gas 
contract on NYMEX, called a futures contract, in the same way 
they used the natural gas contract on ICE, called a swap, for 
risk management and economic purposes. The data also showed 
that prices on one exchange affected the prices on the other. 
Given their equivalence, the report concluded there was no 
sound basis for one exchange to be regulated and the other not.
    The report also explained that the disparity in regulation 
between NYMEX and ICE was a result of the so-called ``Enron 
Loophole'' in the Commodity Exchange Act. The Enron Loophole, 
which was inserted into the law in 2000 at the request of Enron 
and others, exempts electronic energy exchanges such as ICE 
from CFTC oversight and regulation. Unlike NYMEX, there are no 
limits on the trading on ICE, and no routine government 
oversight. The Amaranth case history demonstrated that the 
disparity in regulation of the two markets prevented the CFTC 
and the exchanges from fully analyzing market transactions, 
understanding trading patterns, and compiling accurate pictures 
of trader positions and market concentration; it required them 
to make regulatory judgments on the basis of incomplete and 
inaccurate information; and it impeded their authority to 
detect, prevent, and punish market manipulation and excessive 
speculation.
    The report's landmark analysis of NYMEX and ICE trades 
demonstrated the interconnectedness of the two markets, and the 
inherent problems with regulating one of them but not the 
other. To repair the broken regulatory system, the report 
offered a number of recommendations. First, the report 
recommended that Congress close the Enron Loophole to require 
unregulated exchanges, such as ICE, to comply with the same 
statutory obligations as regulated markets, such as NYMEX. The 
report also recommended that the CFTC, if given additional 
legal authority, monitor both ICE and NYMEX and conduct 
oversight of aggregate trading positions in both markets. 
Third, the report recommended that Congress increase the CFTC 
budget and authorize user fees on the commodity traders to 
provide the additional staff and technology needed to conduct 
stronger oversight and put a stop to price manipulation and 
excessive speculation in the commodity markets.
B. Dirty Bomb Vulnerabilities, July 12, 2007 (Report Prepared by the 
        Majority and Minority Staffs and released in conjunction with 
        the Subcommittee's Hearing on July 12, 2007) (Printed in July 
        12th hearing record.)
    On July 12, 2007, as part of its ongoing examination of 
nuclear and radiological threats to the United States, the 
Subcommittee released a bipartisan report prepared by the 
Majority and Minority staffs summarizing the Subcommittee's 
investigation into certain vulnerabilities related to the 
materials licensing policies and procedures of the Nuclear 
Regulatory Commission (NRC) and offering several 
recommendations to strengthen NRC safeguards. This report was 
released in conjunction with a Subcommittee hearing on the same 
date.
    The report focused on the process by which parties obtain 
NRC materials licenses, the vulnerability of NRC materials 
licenses to counterfeiting and fraud, and several long-standing 
weaknesses in the NRC licensing procedures. The report also 
described a GAO effort, undertaken at the request of the 
Subcommittee, to test whether the NRC's licensing procedures 
were sufficient to guard against the aggregation and misuse of 
relatively low-grade radioactive materials, including efforts 
to include these materials in a so-called ``dirty bomb''--a 
conventional bomb used to disburse radioactive materials.
    The report explained that the NRC and certain ``Agreement 
States'' to which the NRC has delegated authority are 
responsible for regulating the possession and use of low-grade 
radiological materials within U.S. borders. The report detailed 
the procedures used by the NRC and Agreement States to issue 
licenses allowing applicants to possess and use certain 
radiological materials available in a variety of medical and 
industrial fields. The report also described how GAO used 
aliases and a sham corporation to test the effectiveness of 
those procedures. The sham corporation applied simultaneously 
for two materials licenses--one through an Agreement State and 
one from the NRC. Because the Agreement State, as part of its 
licensing process, insisted on interviews with company 
officials and a physical tour of the company's facilities, GAO 
withdrew its application. In contrast, because the NRC opted 
not to conduct a site visit or in-person interviews with the 
sham company's officials, GAO's sham corporation was able in 
less than 30 days to obtain an official NRC license to take 
possession of radiological materials. The report described how 
GAO then used off-the-shelf computer software to electronically 
scan the NRC license, create a near-identical facsimile, and 
use that counterfeit license to contract with two different 
companies to purchase radiological devices. The report showed 
how GAO used the counterfeit license to circumvent restrictions 
on the quantity of radioactive materials it was permitted to 
purchase, and concluded that GAO could have purchased enough 
radioactive materials to meet the NRC's definition of a 
``dangerous'' quantity--enough to build a dirty bomb.
    The report also detailed past reports from GAO, the NRC 
Inspector General, and this Subcommittee which identified 
problems and made recommendations to strengthen the NRC 
licensing procedures to prevent abuses. The report analyzed the 
NRC's response to those recommendations as well as ongoing 
licensing vulnerabilities. The report offered several 
recommendations to further strengthen NRC licensing procedures, 
including urging the NRC to: (1) reevaluate the apparent good-
faith presumption that pervades its licensing process; (2) 
regulate Category 3 sources more stringently by physically 
inspecting applicants' facilities before the issuance of a 
Category 3 materials license, and considering including 
Category 3 sources in the proposed National Source Tracking 
System; and (3) acting quickly to establish a Web-Based 
Licensing System to ensure that source materials can be 
obtained only in authorized amounts by legitimate users.
    In response to the Subcommittee's hearing and report, the 
NRC proposed performing a retrospective examination of certain 
licenses issued by the NRC to verify that the licensees were 
legitimate; re-evaluating NRC licensing procedures and 
guidance; and examining options to combat counterfeit licenses; 
and reevaluating security measures. The NRC also established an 
``Independent External Review Panel to Identify Vulnerabilities 
in the NRC's Materials Licensing Program,'' a ``Materials 
Program Working Group,'' and a ``Pre-Licensing Guidance Working 
Group.'' The Independent Review Panel and NRC staff embraced 
virtually all of the report's recommendations. Most notably, 
the NRC recognized the need to suspend its ``good faith 
presumption'' that new applicants seeking radioactive materials 
were honest and hasten the implementation of a National Source 
Tracking System and a Web-Based Licensing System.
C. United Nations Development Program: A Case Study of North Korea, 
        January 24, 2008 (Report Prepared by the Majority and Minority 
        Staffs and released in conjunction with the Subcommittee's 
        Hearing on January 24, 2008) (Printed in January 24th hearing 
        record.)
    Since 2004, the Subcommittee has conducted a bipartisan 
investigation into evidence of waste, fraud, and mismanagement 
in United Nations programs and operations. The first phase of 
that investigation examined the United Nations Oil-for-Food 
Program and resulted in four Subcommittee hearings and five 
staff reports disclosing widespread problems with that program. 
In 2007, the Subcommittee commenced an examination into 
allegations of mismanagement and misconduct in the operations 
of the United Nations Development Program (UNDP) in the 
Democratic People's Republic of Korea (DPRK). On January 24, 
2008, the Subcommittee released a bipartisan staff report 
summarizing its investigation. That report was released in 
conjunction with a Subcommittee hearing on the same day.
    The report contained a number of findings of fact and 
recommendations. It found, for example, that the UNDP had 
operated in North Korea with inappropriate staffing, 
questionable use of foreign currency instead of local currency, 
and insufficient administrative and fiscal controls. The report 
found that the UNDP's DPRK office was staffed in large part 
with North Korean nationals who were selected by the DPRK, 
contrary to UNDP policy; and that the UNDP had paid the 
salaries of local staff directly to the North Korean government 
without ensuring that the monies were disbursed to the workers 
and despite suspicions that the DPRK was, in the words of one 
UNDP official, ``skimming'' money from the payments. The report 
also found that the UNDP paid salaries and other expenses in 
convertible currencies, such as U.S. Dollars or Euros, rather 
than in the local currency, contrary to UNDP's best practices; 
and UNDP was allowed to conduct on-site project visits only 
with prior notice and in the company of North Korean officials, 
again contrary to UNDP's best practices.
    In addition, a Subcommittee review of a UNDP internal audit 
revealed that nearly half of the UNDP projects in North Korea 
were conducted under a National Execution Strategy that 
ostensibly required direct payments to the host government for 
the implementation of UNDP projects. The Subcommittee learned, 
however, that by agreement with North Korea, UNDP maintained 
control of most of the projects' financing and management. UNDP 
officials explained to the Subcommittee that, by directly 
controlling funds that were ostensibly slated to be managed 
nationally, UNDP accomplished two objectives: it respected 
sensitivities about national sovereignty and formal control 
over projects within a country's borders, and it executed the 
projects using UNDP management and controls. In the case of the 
UNDP program in North Korea, however, this strategy also led to 
confusion over the amount of direct payments actually made to 
North Korea. In sum, UNDP operations in North Korea were 
carried out under significant constraints that undermined its 
standard administrative, fiscal, and program controls.
    The report also showed how, in 2002, the DPRK government 
had used its relationship with the United Nations to execute 
deceptive financial transactions, by moving over $2.7 million 
of its own funds from Pyongyang to DPRK diplomatic missions 
abroad through a bank account intended to be used solely for 
UNDP activities and by referencing UNDP in the wire transfer 
documentation. UNDP has stated that the wire transfers were 
wholly unrelated to its development projects, and North Korean 
officials have confirmed that the funds originated with the 
DPRK Ministry of Foreign Affairs and were not related to the 
UNDP. North Korean officials explained to the Subcommittee that 
these transfers occurred soon after President George Bush's 
2002 State of the Union address in which he described North 
Korea as part of an ``axis of evil,'' that they expected 
sanctions against their country; and used the UNDP-related 
account as a more secure channel to fund their embassies 
abroad. The report also found that the UNDP had transferred 
U.N. funds to a company that, according to a letter from the 
U.S. State Department to UNDP, had ties to an entity involved 
in DPRK weapons activity.
    Finally, the report found that, by preventing access to its 
audits and not submitting to the jurisdiction of the U.N. 
Ethics Office, the UNDP had impeded reasonable oversight and 
undermined its whistleblower protections. The UNDP had 
commissioned four audits of its North Korean operations in 
1999, 2001, 2004, and 2007. Problems were identified in all 
four. The first three audits were nonpublic and, in accordance 
with UNDP policy, unavailable for review even by nations 
serving on the UNDP Executive Board. After repeated requests, 
UNDP made an exception to this policy and, in 2007, showed the 
audit reports to the U.S. Mission to the United Nations, whose 
personnel were allowed to read but not copy them. The 
Subcommittee obtained copies from other sources and found the 
audits to be of great assistance in examining UNDP operations 
in North Korea. In addition, the Subcommittee spoke with Artjon 
Shkurtaj, former Operations Manager of the UNDP office in 
Pyongyang, who had raised concerns about management and 
operational deficiencies. After raising these concerns, Mr. 
Shkurtaj's UNDP employment contract was not renewed. He filed a 
complaint with the U.N. Ethics Office claiming retaliation. The 
U.N. Ethics Office determined that, although Mr. Shkurtaj had 
established ``a prima facie case of retaliation,'' it lacked 
jurisdiction to decide his claim and the UNDP declined a 
request to voluntarily submit the Shkurtaj matter for a U.N. 
Ethics Office review. The report found that these actions had 
undermined confidence among U.N. employees that U.N. 
whistleblowers who speak out about U.N. mismanagement would be 
protected from retribution. In November 2007, the U.N. 
Secretary General issued a bulletin requiring each U.N. agency 
to establish its own ethics office or submit to the 
jurisdiction of the U.N. Ethics Office within the Secretariat.
    The report offered several recommendations to strengthen 
UNDP management. First, the report recommended that the UNDP 
provide U.N. member states with unfettered access to UNDP audit 
reports. The report recommended that UNDP approve a pending 
proposal to grant routine access to UNDP Executive Board 
members to UNDP audit reports, and broaden the proposal to 
allow access to past audit reports, photocopying of the 
reports, and release of audit information to the public, absent 
exceptional circumstances. Second, the report recommended that 
the UNDP ensure that whistleblowers do not face retaliation for 
disclosing improper conduct. Third, the report recommended that 
the UNDP take steps to ensure that its name and resources are 
not used as cover for non-U.N. activities. In particular, UNDP 
should require host countries to establish a bank account 
designated for exclusive use on UNDP development projects, 
prohibit the deposit of any other funds in the account, and 
mandate, as a condition precedent for the receipt of 
development aid, that the host country designate UNDP as a 
secondary account signatory and authorize the financial 
institution to grant UNDP access to all account documentation 
so that UNDP can monitor the account activity. Finally, the 
report recommended that, prior to making payments to a vendor, 
UNDP take steps to ensure the vendor is not associated with 
illicit activity, including by checking U.N. lists of suspect 
entities. The report also recommended that Congress and the 
U.S. State Department press for each of the suggested reforms.
D. Medicare Vulnerabilities: Payments for Claims Tied to Deceased 
        Doctors, July 9, 2008 (Report Prepared by the Majority and 
        Minority Staffs and released in conjunction with the 
        Subcommittee's Hearing on July 9, 2008) (Printed in July 9th 
        hearing record.)
    As part of its continuing efforts to uncover waste, fraud, 
and abuse in the Medicare and Medicaid programs, on July 9, 
2008, the Subcommittee released a bipartisan staff report on 
the payment by Medicare of durable medical equipment (DME) 
claims using identification numbers belonging to deceased 
physicians. Using Medicare data from 2000 to 2007, the report 
estimated that nearly half a million Medicare payments, 
totaling at least $76 million, had been provided to medical 
equipment suppliers submitting DME claims that used identifiers 
for at least 17,000 deceased doctors, which is about half of 
the deceased doctor population. The Subcommittee held a hearing 
on the same day.
    The report explained that Medicare regulations require DME 
claims to contain certain information in order to qualify for 
payment, including the identification number of the prescribing 
medical provider. That identifier, until recently, was called 
the Unique Physician Identification Number (UPIN). In 2001, the 
Inspector General (IG) of the U.S. Department of Health and 
Human Services (HHS) issued a report alerting the Centers for 
Medicare and Medicaid Services (CMS) to failures in the UPIN 
system after finding that, in 1999 alone, over $90 million had 
been paid for medical equipment claims with invalid UPINs. In 
response, in 2002, CMS instructed the contractors that 
maintained the UPIN registry to review the UPIN database, 
eliminate UPINs for deceased physicians, and keep the registry 
updated going forward. The contractors were also told to modify 
the claims process to bar payment of claims with invalid UPINs. 
CMS reported to the HHS IG that the needed UPIN reforms had 
been completed, but neither CMS nor its contractors ever tested 
them to ensure they worked. The Subcommittee's investigation 
showed that, despite the 2002 reforms, CMS continued to pay 
millions of dollars of Medicare claims referencing UPINs for 
deceased physicians.
    The report summarized the Subcommittee's investigation, and 
offered a number of findings and recommendations. The report 
estimated that, from 2000 to 2007, Medicare paid between $76 
million and $92 million for hundreds of thousands of DME claims 
that contained identification numbers assigned to an estimated 
16,500 to 18,200 deceased physicians. About 51,000 of those 
claims, or 16 percent of the total, valued at roughly $4 
million, contained UPINs for doctors who had died ten or more 
years before the service date on the claims. The report cited 
one instance in which a UPIN belonging to a deceased physician 
in Florida was used for 484 claims between November 2005 and 
November 2006, totaling more than $544,000, even though the 
corresponding physician had died in 1999. In another instance, 
the UPIN assigned to a doctor who died in 2001, was used on 
more than 3,800 claims submitted between 2002 and 2007, 
resulting in Medicare payments of more than $354,000.
    The report noted that these problems were not new to CMS, 
which had been alerted to them in the HHS IG's 2001 report. The 
report found, however, that the 2002 procedures put into place 
by CMS to ensure that DME claims with UPINs of deceased 
physicians would be rejected, were ineffective in resolving the 
problem, and HHS and CMS personnel failed to perform the 
reviews or audits needed to ensure the procedures were working. 
In fact, 63 percent of the claims identified by the 
Subcommittee as using deceased physician UPINs were paid with 
dates of service after April 1, 2002, the date after which 
Medicare was supposed to reject such claims. The report also 
found that, as of May 2008, the UPINs of an estimated 2,000 to 
2,900 deceased physicians remained active, and the continuing 
inability of CMS payment systems to reject claims containing 
deceased physician identifiers rendered Medicare vulnerable on 
a continuing basis to millions of dollars in improper claims 
each year.
    The report offered several recommendations to stop the 
abuses. First, it recommended that CMS strengthen its 
procedures to deactivate physician identifier numbers after a 
physician died, and develop a quality control program to ensure 
those deactivations are taking place within a specified period 
of time after CMS receives notice of a physician's death, such 
as 90 days. Second, the report recommended initiating periodic 
audits of the Medicare physician registry to test whether 
identifiers assigned to deceased physicians have been 
deactivated and of Medicare payment records to test whether 
claims containing deceased physician identifiers were rejected. 
Third, the report recommended that CMS consider instituting 
additional procedures and audits to ensure the prompt 
deactivation of identifiers assigned to Medicare service 
providers who have stopped providing services for other reasons 
than death, such as licensure revocation or retirement, 
including automatic deactivation of any identifier that has not 
been used in a Medicare claim within a specified time period, 
such as 12 months.
E. Tax Haven Banks and U.S. Tax Compliance, July 17, 2008 (Report 
        Prepared by the Majority and Minority Staffs and released in 
        conjunction with the Subcommittee's Hearing on July 17, 2008) 
        (Printed in the July 17th and 25th hearing records.)
    As part of its ongoing efforts to combat offshore tax 
abuse, on July 17, 2008, the Subcommittee released a staff 
report showing how two tax haven banks, LGT Bank in 
Liechtenstein and UBS in Switzerland, helped U.S. clients evade 
U.S. taxes by opening offshore accounts, concealing their 
assets, and using financial services in ways that did not alert 
U.S. authorities to the existence of their foreign accounts. 
The Subcommitee released the report in conjunction with two 
days of hearings.
    The report summarized the Subcommittee's investigation and 
offered a number of findings and recommendations. First, it 
highlighted eight case histories of U.S. clients with offshore 
accounts at LGT or UBS. It described, for example, the Marshes 
of Florida who hid $49 million in four Liechtenstein 
foundations over 20 years; William Wu who concealed ownership 
of his assets, including his New York residence, using an 
elaborate offshore structure; the Lowys of California who used 
shell companies and a Delaware corporation to hide their 
beneficial interest in a Liechtenstein foundation with $68 
million in assets; a father and son who met LGT private 
bankers, including a Liechtenstein Prince, to discuss 
transferring $30 million in offshore funds from the Bank of 
Bermuda to LGT; and Igor Olenifcoff, a California real estate 
magnate who worked with a UBS private banker to hide $200 
million in assets in Switzerland and Liechtenstein.
    The report found that offshore bank secrecy laws and 
practices were serving as a cloak, not only for client 
misconduct, but also for misconduct by banks colluding with 
clients to evade taxes, dodge creditors, and defy court orders. 
The report found that, from at least 2000 to 2007, LGT and UBS 
employed banking practices that could facilitate, and did 
result in, tax evasion by their U.S. clients, including 
assisting those clients to open accounts in the names of 
offshore entities; advising clients on complex offshore 
structures to hide ownership of assets; using client code 
names; and disguising asset transfers into and from accounts. 
In addition, the report found that, since 2001, LGT and UBS had 
collectively maintained thousands of U.S. client accounts with 
billions of dollars in assets that had not been disclosed to 
the IRS. UBS alone had admitted maintaining accounts in 
Switzerland for an estimated 19,000 U.S. clients with assets 
valued at $18 billion, while the IRS has identified at least 
100 accounts with U.S. clients at LGT.
    Finally, the report found that LGT and UBS had assisted 
their U.S. clients in structuring their foreign accounts to 
avoid required reporting to the IRS under the so-called 
Qualified Intermediary (QI) Program, which requires 
participating foreign financial institutions to report and 
withhold tax on U.S. source income paid to foreign bank 
accounts. The report described how the banks had allowed U.S. 
clients who sold their U.S. securities to continue to hold 
undisclosed accounts or to open new accounts in the name of 
offshore shell corporations which they secretly owned. The 
report found that the banks used these banking practices to 
keep accounts secret from the IRS and thereby facilitated tax 
evasion by their U.S. clients.
    The report contained numerous recommendations to stop tax 
haven banks from facilitating U.S. tax evasion. Those 
recommendations included penalizing tax haven banks that 
impeded U.S. tax enforcement by terminating their QI status; 
enacting legislation allowing the Treasury to bar such banks 
from doing business with U.S. financial institutions; and 
enacting legislation extending from 3 years to 6 years the 
amount of time the IRS has after a tax return is filed to 
assess additional tax if the case involves an offshore tax 
haven with secrecy laws. The report also recommended 
strengthening the QI reporting program by requiring QI 
participants to file 1099 Forms with the IRS for: (1) all U.S. 
persons who are clients (whether or not the client has U.S. 
securities or receives U.S. source income); and (2) accounts 
beneficially owned by U.S. persons, even if the accounts are 
held in the name of a foreign corporation, trust, foundation, 
or other entity. In addition, the report recommended closing 
the ``QI-KYC Gap'' by expressly requiring QI participants to 
apply to their QI reporting obligations all information 
obtained through their Know-Your-Customer procedures, including 
the identification of all beneficial owners of an account.
F. Dividend Tax Abuse: How Offshore Entities Dodge Taxes on U.S. Stock 
        Dividends, September 11, 2008 (Report Prepared by the Majority 
        and Minority Staffs and released in conjunction with the 
        Subcommittee's Hearing on September 11, 2008) (Printed in Sept. 
        11th hearing record.)
    As part of its ongoing efforts to combat offshore tax 
abuse, on September 11, 2008, the Subcommittee released a staff 
report exposing practices at nearly a dozen financial 
institutions showing how U.S. financial institutions knowingly 
developed, marketed, and implemented a wide range of 
transactions aimed at enabling their non-U.S. clients to dodge 
payment of U.S. dividend taxes. The Subcommittee released the 
report in conjunction with a hearing held the same day.
    Foreigners who invest in the United States are exempt from 
many U.S. taxes--they do not pay taxes on interest earned on 
money deposited in a U.S. bank, nor do they pay taxes on 
capital gains. However, if they invest in a U.S. company and 
the stock pays a dividend, U.S. law requires the foreign 
investor to pay a tax on the dividend. Dividends sent abroad 
are subject to tax at a rate of 30 percent in most countries, 
and 15 percent in countries having a tax treaty with the United 
States. The report found that many non-U.S. clients escape 
paying the required tax through the assistance of U.S. 
financial institutions.
    The report summarized the Subcommittee's investigation and 
offered a number of findings and recommendations. It first 
described six case histories of dividend tax abuse, involving 
Lehman Brothers, Morgan Stanley, Deutsche Bank, UBS, Merrill 
Lynch, and Citigroup. Using a variety of complex financial 
instruments, primarily involving equity swaps and stock loans, 
these U.S. financial institutions structured transactions to 
enable their non-U.S. clients to enjoy all of the economic 
benefits of owning shares of U.S. stock, including receiving 
dividends, without paying the tax applicable to those 
dividends. These structured transactions increased the amount 
of dividend returns obtained by some of their non-U.S. clients 
by 30 percent or more.
    Additionally, the report found that U.S. financial 
institutions frequently cooperated with offshore hedge funds to 
negotiate and carry out abusive dividend tax transactions. 
Offshore hedge funds actively sought these abusive 
transactions, negotiated the terms of the arrangements with the 
financial institutions, and at times played one financial 
institution against another to elicit the largest possible tax 
reduction. The report also found that many of the offshore 
hedge funds benefiting from these tax dodges did not maintain 
physical offices or investment professionals in their offshore 
locations, and instead operated primarily under the control of 
U.S. persons serving as the fund's general partner or 
investment manager. In these cases, U.S. hedge fund managers 
and their employees often played key roles in facilitating the 
offshore dividend tax abuse.
    The report found that, as a result of the offshore dividend 
tax abuses, billions of dollars in U.S. taxes that should have 
been paid into the Treasury were lost. For example, the report 
cited Morgan Stanley data indicating that, over a 7-year period 
from 2000-2007, its dividend tax transactions enabled clients 
to escape payment of U.S. dividend taxes totaling more than 
$300 million. In another example, the investment manager of a 
group of related offshore hedge funds, Maverick Capital 
Management, calculated that over an 8-year period, from 2000 to 
2007, it had entered into ``U.S. Dividend Enhancements'' with a 
variety of firms that enabled it to escape paying U.S. dividend 
taxes totaling nearly $95 million.
    The report also found that the responsible Federal 
agencies, the Treasury Department and the IRS, had failed to 
prevent or punish dividend tax abuse. The agencies had failed 
to publish for 10 years final regulations to address abusive 
stock loans, failed to clarify existing regulations related to 
abusive equity swaps, and failed to take enforcement actions 
against participating financial institutions or their clients. 
The report found that, while the instances of abuse multiplied, 
the silence and inaction of the Treasury Department and the IRS 
encouraged the spread of offshore dividend tax abuse.
    The report offered several recommendations to end dividend 
tax abuses, including by enacting legislation to make it clear 
that non-U.S. persons cannot avoid U.S. dividend taxes by using 
a swap or stock loan to disguise dividend payments, and by 
eliminating the different tax rules for U.S. stock dividends, 
dividend equivalent payments, and dividend substitute payments, 
and making them all equally taxable as dividends. The report 
also recommended that the IRS complete its ongoing review of 
dividend-related transactions and take civil enforcement action 
against taxpayers and U.S. financial institutions that 
knowingly participated in abusive transactions aimed at dodging 
U.S. taxes on stock dividends. In addition, to stop misuse of 
equity swap transactions to dodge U.S. dividend taxes, the 
report recommended that the IRS issue a new regulation to make 
dividend equivalent payments under equity swap transactions 
taxable to the same extent as U.S. stock dividends. To stop 
misuse of stock loan transactions to dodge U.S. dividend taxes, 
the report recommended that the IRS issue a new regulation to 
make clear that inserting an offshore entity into a stock loan 
transaction does not eliminate U.S. tax withholding obligations 
for stock dividends.
G. Medicare Vulnerabilities: The Use of Diagnosis Codes in DME Claims 
        (Report Prepared by the Minority Staff of the Permanent 
        Subcommittee on Investigations on September 24, 2008 and 
        released in conjunction with the Subcommittee's Hearing on July 
        9, 2008) (Printed in July 9th hearing record.)
    As part of its ongoing efforts to uncover waste, fraud, and 
abuse in the Medicare and Medicaid programs, on September 24, 
2008, the Subcommittee released a Minority staff report on the 
use of diagnosis codes in claims for durable medical equipment 
(DME). Medicare DME claims include diagnosis codes identifying 
the ailment of the Medicare beneficiary purchasing the medical 
equipment. In order to determine if those diagnoses codes could 
be used to prevent waste, fraud or abuse, the Subcommittee 
examined data related to millions of DME claims. This review 
uncovered numerous claims using invalid diagnosis codes and 
diagnosis codes that, while valid, appeared unrelated to the 
claimed medical equipment.
    The report summarized the Subcommittee's investigation and 
offered several findings and recommendations. The report 
described the Subcommittee's examination of DME claims data 
from 1995 to 2006. This review found $4.8 billion in Medicare 
payments for 60 million DME items in which the claims contained 
diagnosis codes that were invalid, blank, or impossible to 
process. To further test these DME claims, the Subcommittee 
conducted a detailed review of a subset of 2,000 claims, in 
which the Subcommittee could verify only 30 percent of the 
claims as legitimate. The report noted that many of the 
unverified claims contained indicators of fraudulent activity, 
such as the identification number of a doctor who had died 
years earlier or of doctors who denied that they had prescribed 
the indicated items or treated the indicated patients. The 
review also uncovered DME claims that paid for medical 
equipment or supplies that appeared wholly unrelated to the 
listed ailment. For example, the Subcommittee reviewed hundreds 
of thousands of claims paid by Medicare for blood glucose test 
strips, which are used by diabetics to test their blood-sugar 
levels, and found many with diagnosis codes unrelated to 
diabetes, listing such ailments as chronic airway obstruction, 
bubonic plague, leprosy, or cholera.
    In addition to these findings, the report identified a 
number of procedural and regulatory issues. It found, for 
example, that Medicare rules governing the use of diagnostic 
codes on DME claims had been inconsistent over time, and that 
some of the Medicare claims data on diagnosis codes was 
incorrect or outdated. The report also found that Medicare had 
not used diagnosis codes effectively in the claims review 
process. The report noted that Medicare limited its analysis to 
the presence of a valid diagnosis code, and failed to use the 
diagnosis codes to evaluate the validity or medical necessity 
of the claim being presented. The report found that diagnosis 
codes could be used in many instances to detect and prevent 
fraudulent, wasteful, or abusive claims.
    The report provided several recommendations to CMS in light 
of the Subcommittee's findings. First, the report recommended 
that CMS strengthen its claims review process to ensure that 
all diagnosis codes submitted on claims be not only valid, but 
medically related to the claimed DME supplies, and that claims 
with invalid or incorrect codes are rejected and returned to 
the biller for correction. The report also recommended that CMS 
consider developing procedures to link diagnosis codes with 
medical procedures to prevent and reject improper payments. The 
report recommended that CMS also consider developing procedures 
to link DME claims with corresponding claims for doctor visits 
and medical treatment. Finally, the report recommended that CMS 
strengthen its oversight of its payment contractors, including 
by imposing penalties for making improper payments or failing 
to maintain reliable data.

                   V. Requested and Sponsored Reports

    In connection with its investigations, the Subcommittee 
makes extensive use of the resources and expertise of the 
Government Accountability Office (GAO), the Offices of 
Inspectors General (OIGs) at various Federal agencies, and 
other entities. During the 110th Congress, the Subcommittee 
requested a number of reports and studies on issues of 
importance to Congress and to U.S. consumers. Most of these 
reports have already been described in connection with 
Subcommittee hearings. Several additional reports that were of 
particular interest, and that were not covered by Subcommittee 
hearings, are the following.
A. Highway Bridge Program: Clearer Goals and Performance Measures 
        Needed for a More Focused and Sustainable Program (GAO-08-
        1043), September 10, 2008
    The August 1, 2007, collapse of a Minnesota bridge raised 
urgent questions about bridge safety nationwide, as well as 
efforts by the U.S. Department of Transportation (DOT) to 
prioritize resources to address varying bridge safety problems. 
The Subcommittee and the Senate Committee on Environment and 
Public Works made a joint request to GAO to evaluate how 
Federal, State, and local transportation officials carry out 
the Highway Bridge Program (HBP), the primary source of Federal 
funding for bridges. GAO's report examined: (1) how the HBP 
addresses bridge conditions, (2) how States use HBP funds and 
select bridge projects for funding, (3) what data indicate 
about bridge conditions and the HBP's impact, and (4) the 
extent to which the HBP aligns with principles GAO developed, 
based on prior work and Federal laws and regulations, for re-
examining surface transportation programs.
    GAO found, based on information gathered during bridge 
inspections that are generally conducted every 2 years, that 
the HBP classifies bridge conditions as deficient or not; 
assigns each bridge a sufficiency rating reflecting its 
structural adequacy, safety, serviceability, and relative 
importance; and uses that information to distribute funding to 
States. While each State's HBP apportionment amount is largely 
determined by bridge conditions and bridges generally must be 
below a certain condition threshold to qualify for HBP funding, 
other bridges are also eligible for HBP funds because States 
may use the funds for a broad array of other purposes, such as 
bridge systematic preventive maintenance projects. States have 
discretion in how they choose to spend HBP funds and select 
bridge projects in a variety of ways.
    GAO found that bridge conditions, as measured by the number 
of deficient bridges and average sufficiency rating, improved 
from 1998 through 2007. However, the impact of the HBP on that 
improvement was difficult to determine, in part, because (1) 
the program provides only a share of what States spend on 
bridges and there are no comprehensive data for State and local 
spending on bridges, and (2) HBP funds can, in some cases, be 
used for a variety of bridge projects without regard to a 
bridge's deficiency status or sufficiency rating.
    GAO determined that the HBP lacks focus, performance 
measures, and sustainability. For example, the program's 
statutory goals are not focused on a clearly identified Federal 
or national interest, but rather have expanded from improving 
deficient bridges to supporting seismic retrofitting, 
preventive maintenance, and many other projects, thus expanding 
the Federal interest to potentially include almost any bridge 
in the country. In addition, GAO found that the program lacks 
measures linking funding to performance and is not financially 
sustainable, given the anticipated deterioration of the 
Nation's bridges and the declining purchasing power of funding 
currently available for bridge maintenance, rehabilitation, and 
replacement.
B. Tax Administration: Comparison of the Reported Tax Liabilities of 
        Foreign- and U.S.-Controlled Corporations, 1998-2005 (GAO-08-
        957), July 24, 2008
    The Subcommittee has a longstanding interest in tax abuse 
issues involving U.S. corporations, including corporations that 
use transfer pricing strategies to shift profits offshore to 
avoid the payment of U.S. taxes. In three prior reports, GAO 
examined U.S. corporations that reported paying little or no 
tax, and examined differences in those corporations that were 
U.S. versus foreign-controlled. Subcommittee Chairman Levin, 
Senator Dorgan, and the Joint Committee on Taxation asked GAO 
to update its previous reports by comparing: (1) the tax 
liabilities of U.S.-controlled corporations (USCC) and foreign-
controlled domestic corporations (FCDC)--including those 
reporting zero tax liabilities for 1998 through 2005 (the 
latest available data); and (2) the characteristics of those 
USCCs and FCDCs such as age, size, and industry.
    The data collected by GAO indicated that the majority of 
corporations reviewed had reported no tax liability for the 
years 1998 to 2005. During this 8-year period, GAO found that 
over 1.2 million USCCs paid no tax (67 percent of returns), 
despite total gross receipts of $2.1 trillion; and that over 
38,000 FCDCs that paid no tax (65 percent of returns) despite 
total gross receipts of $435 billion. In addition, GAO found 
that about 72 percent of large FCDCs versus 55 percent of large 
USCCs had reported no tax liability for at least 1 year over 
the 8 years studied.
    GAO also found that, by most measures in the report, FCDCs 
reported lower tax liabilities than USCCs. A greater percentage 
of large FCDCs reported no tax liability in a given year from 
1998 through 2005. For all corporations, a higher percentage of 
FCDCs reported no tax liabilities than USCCs through 2001, but 
differences after 2001 were not statistically significant. Most 
large FCDCs and USCCs that reported no tax liability in 2005 
also reported that they had no current-year income. A smaller 
proportion of these corporations had losses from prior years 
and tax credits that eliminated any tax liability. By another 
measure, large FCDCs were more likely to report no tax 
liability over multiple years than large USCCs. In 2005, 
comparisons of FCDCs and USCCs based on ratios of reported tax 
liabilities to gross receipts or total assets showed that FCDCs 
reported less tax than USCCs.
    GAO found that FCDCs and USCCs differed in age, size, and 
industry. FCDCs were younger than USCCs in that a greater 
percentage had been incorporated for 3 years or less from 1998 
through 2005. In 2005, FCDCs were larger on average than USCCs 
in that they reported higher average gross receipts and assets 
than USCCs. A comparison by industry in 2005 showed that large 
FCDCs were relatively more concentrated in manufacturing and 
wholesale trade, while large USCCs were more evenly distributed 
across industries. GAO did not attempt to determine the extent 
to which these factors and others, such as transfer pricing 
abuses, explained the differences in tax liabilities.
C. Tax Compliance: Federal Grant and Direct Assistance Recipients Who 
        Abuse the Federal Tax System (GAO-08-31), November 16, 2007
    Since 2004, the Subcommittee has conducted an ongoing 
investigation into Federal contractors who bid for and receive 
Federal dollars for their work, while simultaneously owing 
substantial unpaid taxes. To expand the focus of this 
investigation, the Subcommittee, as well as the full Committee, 
asked GAO to examine noncompliant taxpayers who simultaneously 
did business with or received benefits from the Federal 
Government through Federal Grant programs. The resulting GAO 
report was the latest in a series of GAO reports examining 
weaknesses in the Federal Payment Levy Program and other 
Federal programs and controls that have allowed tens of 
thousands of Federal contractors and Medicare providers to 
receive government money while owing billions of dollars in 
unpaid taxes. The Subcommittee asked GAO to examine the extent 
of this problem for entities who receive Federal Grants or 
direct assistance, including by providing the magnitude of 
taxes owed, examples of grant recipients involved in abusive or 
potentially criminal activity, and the efforts being made to 
prevent delinquent taxpayers from participating in such 
programs.
    GAO determined that while most recipients of Federal Grant 
and direct assistance payments pay their Federal taxes, as of 
September 30, 2006, tens of thousands of recipients 
collectively owed about $790 million in unpaid Federal taxes. 
GAO's data included over 2,000 individuals and organizations 
that received $124 billion of payments directly from the 
Federal Government and who owed more than $270 million of 
unpaid taxes (almost 6 percent of such recipients) and about 
37,000 landlords participating in HUD's Section 8 tenant-based 
housing program who owed an estimated $520 million of unpaid 
taxes (almost 4 percent of such landlords). GAO indicated that 
the $790 million estimate is likely substantially understated, 
because GAO's analysis excluded the 80 percent of Federal 
Grants that are directly given to State and local governments 
which, in turn, disburse the grants to the ultimate recipients.
    GAO presented 20 cases of grant and direct assistance 
recipients who had high tax debt and who appeared to be engaged 
in abusive or potential criminal activity related to the 
Federal tax system, including failure to remit individual 
income taxes or payroll taxes to the IRS. Willful failure to 
remit payroll taxes is a felony under U.S. law, and GAO 
provided evidence that some of the individuals associated with 
some of the recipients had diverted payroll tax money to their 
personal use or to help fund their businesses. GAO referred the 
20 cases to the IRS for additional investigation and 
enforcement action, as appropriate.
    GAO also recommended that the Office of Management and 
Budget consider requiring Federal agencies that issue grants or 
make direct assistance payments take affirmative steps to 
determine whether any of their applicants have unpaid tax debt.
D. Tax Compliance: Some Hurricanes Katrina and Rita Disaster Assistance 
        Recipients Have Unpaid Federal Taxes (GAO-08-101R), November 
        16, 2007
    In further support of the Subcommittee's ongoing 
investigation into persons who do business with or receive 
benefits from the Federal Government while owing Federal taxes, 
the Subcommittee and full Committee asked GAO to examine the 
extent to which tax delinquent persons received benefits from 
the Individuals and Households Program (IHP) operated by the 
Federal Emergency Management Agency (FEMA) following Hurricanes 
Katrina and Rita. IHP is a Federal direct assistance program 
authorized by the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (Stafford Act). GAO agreed to 
determine, to the extent practical, the estimated magnitude of 
Federal taxes owed by individuals receiving IHP disaster 
assistance benefit payments following Hurricanes Katrina and 
Rita; and provide examples of abusive or criminal activity 
related to the Federal tax system by IHP recipients with unpaid 
Federal taxes.
    GAO conducted its estimate by cross referencing IRS tax 
debts in excess of $100 as of September 30, 2005 with IHP 
disaster assistance benefit payments for Hurricanes Katrina and 
Rita. It found that about 80,000 of the 1.5 million individuals 
(about 5 percent) who received disaster assistance benefits for 
Hurricanes Katrina and Rita owed over $700 million in unpaid 
Federal taxes prior to those hurricanes. GAO reported that FEMA 
officials stated that they do not screen disaster applicants 
for existing tax debts because there is no legal requirement to 
do so.
    GAO also presented five IHP recipient case histories of 
abusive and criminal activity. These recipients had tax debts 
ranging from about $400,000 to over $2 million, and several had 
a history of failing to file tax returns for several years 
prior to the hurricane disasters. GAO also identified instances 
in which IHP recipients attempted to transfer property to avoid 
IRS seizure. For example, one IHP recipient in the oil and gas 
industry had forged a third party's signature to illegally 
transfer land. Another IHP recipient, a lawyer, transferred a 
large quantity of stock to a family member while the IRS was 
taking collection actions against the lawyer.
E. Medicare: Covert Testing Exposes Weaknesses in the Durable Medical 
        Equipment Supplier Screening Process (GAO-08-955), July 3, 2008
    In connection with the Subcommittee's ongoing investigation 
into waste, fraud, and abuse in the Medicare and Medicaid 
programs, the Subcommittee asked GAO to examine vulnerabilities 
in Medicare's enrollment process for suppliers of durable 
medical equipment, prosthetics, orthotics, and supplies 
(DMEPOS). Due to weaknesses in the DMEPOS enrollment and 
inspection process, CMS has found that sham companies have been 
able to enroll in the program and fraudulently bill Medicare 
for unnecessary or nonexistent supplies. CMS has estimated 
that, from April 2006 through March 2007, Medicare has made $1 
billion in improper payments for DMEPOS supplies, in part due 
to fraud by the enrolled suppliers.
    GAO tested CMS's processes by creating two fictitious 
DMEPOS suppliers, applying for Medicare billing numbers, and 
completing electronic test billings. GAO reported that it was 
able easily to establish two fictitious DMEPOS companies using 
undercover names and bank accounts. GAO reported that its 
fictitious companies applied for and were able to win approval 
for Medicare billing privileges despite having no clients or 
inventory. GAO reported that CMS had initially denied the 
applications in part because of a lack of inventory, but 
undercover GAO investigators then fabricated contracts with 
nonexistent wholesale suppliers to convince CMS and its 
contractor, the National Supplier Clearinghouse (NSC), that the 
companies had access to DMEPOS items.
    As a result of these simple methods of deception, both 
fictitious DMEPOS companies obtained Medicare billing numbers. 
After requesting an electronic billing enrollment package and 
obtaining passwords from CMS, GAO was then able to successfully 
complete Medicare's test billing process for the Virginia 
office. GAO was unable to complete test billing for the 
Maryland office, however, because CMS has not sent the 
necessary passwords. However, if real criminals had been in 
charge of the fictitious companies, they would have been clear 
to bill Medicare for potentially millions of dollars worth of 
nonexistent supplies.
    After concluding the test, GAO recommended that CMS and 
associated contractors initiate procedures beyond the current 
paperwork reviews to conduct more rigorous oversight of DMEPOS 
suppliers to ensure their legitimacy.
F. Premium Class Travel: Internal Control Weaknesses Governmentwide Led 
        to Improper and Abusive Use of Premium Class Travel (GAO-07-
        1268), September 28, 2007
    In conjunction with its work to uncover waste, fraud, and 
abuse in the Federal Government, the Subcommittee has conducted 
an ongoing inquiry into problems with Federal travel programs 
and expenses. Previous GAO reports undertaken at the request of 
the Subcommittee disclosed improper premium class travel at the 
Department of Defense (DOD) and the Department of State 
(State). In this report, the Subcommittee asked GAO to examine 
whether similar improper travel existed in the rest of the 
Federal Government. In response, GAO undertook a study to 
determine the magnitude of premium class travel government-
wide, and the extent to which such travel was improper; the 
existence of internal control weaknesses that contributed to 
improper and abusive premium class travel; and specific 
examples of improper and abusive premium class travel.
    GAO found that Federal employees on official government 
travel were expected to follow published guidelines related to 
when and how premium (first and business) class travel should 
be undertaken. Due to the high cost of premium class travel, 
Federal Travel Regulations (FTR) issued by the General Services 
Administration (GSA) provide specific guidelines to restrict 
premium class use. GAO reported that, according to GSA data, 
the government fare for business class travel is typically more 
than 5 times the price of coach class travel for comparable 
routes, with some tickets costing more than 10 times as much.
    GAO reported that the Federal Government spent over $230 
million on about 53,000 premium class tickets from July 1, 
2005, through June 30, 2006. GAO determined that breakdowns in 
internal controls and a weak controled environment resulted in 
at least $146 million in improper first and business class 
travel government-wide. Based on statistical sampling, GAO 
estimated that 67 percent of premium class travel was not 
properly authorized, justified, or both. While business class 
travel accounted for 96 percent of all premium class travel, 
GAO found that many agencies did not track, and thus did not 
know the extent of, business class travel. GAO noted that 
Office of Management and Budget (OMB) and GSA also did not 
require reporting of business class travel. GAO also found 
large differences in premium class guidance government-wide, 
with some agencies issuing less restrictive guidance that were 
tailored for executive travel.
    GAO made two recommendations to prevent improper premium 
travel. GAO recommended that agencies: (1) improve internal 
controls to properly authorize and justify premium class 
travel, including prohibiting subordinates or the travelers 
themselves from authorizing premium class travel, and (2) 
establish procedures to require compiling government-wide data 
and monitoring of the extent of premium class travel, including 
business class.
G. Governmentwide Purchase Cards: Actions Needed to Strengthen Internal 
        Controls to Reduce Fraudulent, Improper, and Abusive Purchases 
        (GAO-08-333), March 14, 2008
    In conjunction with its work uncovering waste, fraud, and 
abuse in the Federal Government, the Subcommittee requested 
that GAO analyze credit card transactions at certain agencies 
to (1) determine whether internal control weaknesses existed in 
the government purchase card program; and (2) if so, identify 
examples of fraudulent, improper, and abusive activity. To 
conduct this review, GAO asked agencies to provide 
documentation on selected transactions to establish that the 
purchase had been properly authorized and that when the good or 
service was delivered, an individual other than the cardholder 
received and signed for it. Using a statistical sample of 
purchase card transactions from July 1, 2005, through June 30, 
2006, GAO estimated that nearly 41 percent of the transactions 
failed to meet either of these basic internal control 
standards. Using a second sample of transactions over $2,500, 
GAO found a similar failure rate--that agencies could not 
demonstrate that 48 percent of these large purchases met 
standards for proper authorization, independent receipt and 
acceptance, or both.
    GAO also presented case studies showing how the breakdowns 
in these internal controls resulted in fraudulent, improper, or 
abusive purchase card use. These examples included instances in 
which government cardholders used government purchase cards to 
subscribe to Internet dating services, buy video iPods for 
personal use, and pay for lavish dinners. In one case, a 
cardholder used the government purchase card program to 
embezzle over $642,000 over 6 years from the Department of 
Agriculture's Forest Service firefighting fund. This cardholder 
was sentenced to 21 months in prison and ordered to pay full 
restitution. GAO also determined that agencies were unable to 
locate 458 items of 1,058 total accountable and pilferable 
items totaling over $2.7 million that GAO selected for testing. 
These missing items, which GAO considered to be lost or stolen, 
included computer servers, laptop computers, iPods, and digital 
cameras. For example, the Department of the Army could not 
adequately account for 256 items making up 16 server 
configurations, each of which cost nearly $100,000.
H. Information Security: Protecting Personally Identifiable Information 
        (GAO-08-343), January 25, 2008
    In May 2006, a laptop computer containing the personal data 
of millions of veterans was stolen from the home of an employee 
of the Department of Veterans Affairs (VA). This incident 
raised a host of concerns regarding the security of personal 
information on Federal systems compromised by the loss or theft 
of equipment or by unauthorized access. The Subcommittee's 
Ranking Member Senator Coleman and Representative Susan Davis 
made a joint request that GAO: (1) identify the Federal laws 
and guidance issued to protect personally identifiable 
information from unauthorized use or disclosure; and (2) 
describe agencies' progress in developing policies and 
procedures under recent Office of Management and Budget 
guidance to protect personally identifiable information that is 
either accessed remotely or physically transported outside an 
agency's secured physical perimeter.
    The loss of personally identifiable information can result 
in substantial harm, embarrassment, and inconvenience to 
individuals and may lead to identity theft or other fraudulent 
use of the information. Prior GAO evaluations had exposed 
weaknesses in the Federal Government's efforts to protect 
personally identifiable information. In this evaluation, GAO 
found that of the 24 major agencies, 22 had developed policies 
requiring personally identifiable information to be encrypted 
on mobile computers and devices. Fifteen of the agencies had 
policies to use a ``time-out'' function for remote access and 
mobile devices requiring user reauthentication after 30 minutes 
of inactivity. Eleven agencies had established policies to log 
computer-readable data extracts for databases holding sensitive 
information and erase the data within 90 days after extraction.
    At the conclusion of GAO's review, OMB announced in 
November 2007, that agencies that did not complete certain 
privacy and security requirements had received a downgrade in 
their scores for progress in electronic government initiatives. 
According to OMB, it will continue working with agencies to 
help them strengthen their information security and privacy 
programs, especially as they relate to the protection of 
personally identifiable information.
I. Combating Nuclear Smuggling: DNDO Has Not Yet Collected Most of the 
        National Laboratories' Test Results on Radiation Portal 
        Monitors in Support of DNDO's Testing and Development Program 
        (GAO-07-347R), March 9, 2007
    As part of its effort to evaluate U.S. safeguards against 
nuclear and radiological threats, the Subcommittee has examined 
government efforts to prevent a nuclear weapon or radiological 
dispersal device (a ``dirty bomb'') from being smuggled into 
the United States. The Department of Homeland Security (DHS), 
through its Domestic Nuclear Detection Office (DNDO), has lead 
responsibility for conducting the research, development, 
testing, and evaluation of radiation detection equipment that 
can be used to detect smuggled nuclear or radiological 
materials. As of 2007, most of DNDO's work on radiation 
detection equipment has focused on the development and use of 
radiation detection portal monitors, which are larger-scale 
equipment that can screen vehicles, people, and cargo entering 
the United States. Current portal monitors, made of polyvinyl 
toluene plastic (PVTs), can detect the presence of radiation 
but cannot distinguish between benign radiological materials 
(NORM) such as ceramic tile, and dangerous materials such as 
highly enriched uranium (HEU). DNDO plans to replace PVTs with 
the next generation of portal monitors, known as Advanced 
Spectroscopic Portals (ASP), with the hope that ASPs will be 
able to more specifically identify radiological and nuclear 
materials within a shipping container. Given that this plan 
would require a multibillion dollar investment and coordination 
with State and local governments, the Subcommittee, the full 
Committee, the House Committee on Energy and Commerce, and the 
House Committee on Homeland Security made a joint request to 
GAO to assess the advantages and disadvantages of this planned 
approach.
    GAO's report examined the extent to which DNDO has: (1) 
compiled previous test results from the national laboratories 
on commercially available portal monitors, and (2) provided 
State and local authorities with information on the technical 
performance characteristics and operation of radiation 
detection equipment. GAO reported that DNDO was in the process 
of planning how to develop a database with PVT test reports to 
gauge how well they detect radiological and nuclear material 
and how environmental conditions and other factors may affect 
PVT performance. GAO reported that DNDO was also improving its 
efforts to provide technical and operational information about 
radiation portal monitors to State and local authorities. For 
example, DNDO recently helped to establish a Website that, 
among other features, includes information for State and local 
officials on radiation detection equipment products and 
performance requirements. GAO reported that some State 
representatives, particularly those from States with less 
experience conducting radiation detection programs, would like 
to see DNDO provide more prescriptive advice on what types of 
radiation detection equipment to deploy and how to use it.
J. Nuclear Security: NRC and DHS Need to Take Additional Steps to 
        Better Track and Detect Radioactive Materials (GAO-08-598), 
        June 19, 2008
    As part of its effort to evaluate U.S. safeguards against 
nuclear and radiological threats, the Subcommittee has devoted 
resources to evaluating the government's ability to detect and 
track nuclear materials in the United States, including low-
grade radioactive materials that could be used to build a 
``dirty bomb'' a device using conventional explosives to 
disperse radioactive material. During the 110th Congress, the 
Subcommittee and the House Committee on Energy and Commerce 
made a joint request to GAO to assess certain policies and 
practices of the Nuclear Regulatory Commission (NRC) and 
Department of Homeland Security (DHS) related to tracking and 
detecting nuclear materials, including: (1) the NRC's progress 
in implementing recommendations, made by GAO in 2003, to 
strengthen U.S. capabilities in this area; (2) other steps the 
NRC has taken to improve its ability to detect and track 
nuclear materials; (3) the capability of the DHS Customs and 
Border Protection (CBP) to detect radioactive materials at land 
ports of entry, and (4) the capability of the CBP to verify 
that such materials were appropriately licensed prior to 
entering the United States.
    GAO determined that NRC had implemented three of the six 
recommendations from GAO's 2003 report. GAO reported that the 
NRC had worked with the 35 States to which it has ceded primary 
authority to regulate radioactive materials to: (1) identify 
sealed sources (radioactive materials sealed in a capsule) of 
greatest concern; (2) enhance requirements to secure 
radioactive sources; and (3) ensure security requirements are 
implemented. GAO reported that, in contrast, NRC had made only 
limited progress toward implementing recommendations to: (1) 
modify its process for issuing licenses to ensure that 
radioactive materials cannot be purchased by those with no 
legitimate need for them; (2) determine how to effectively 
mitigate the potential psychological effects of malicious use 
of such materials; and (3) examine whether certain radioactive 
sources should be subject to more stringent regulations.
    Beyond acting on GAO's recommendations, GAO reported that 
the NRC had taken four additional steps to improve its ability 
to track radioactive materials. First, NRC created an interim 
national database to monitor the licensed sealed sources 
containing materials that pose the greatest risk of being used 
in a dirty bomb. Second, NRC is developing a National Source 
Tracking System to replace that interim database and provide 
more comprehensive, updated information on potentially 
dangerous sources. GAO also reported, however, that this system 
has been delayed by 18 months and is not expected to be fully 
operational until January 2009. Third, NRC is developing a Web-
Based Licensing System that will include more comprehensive 
information on all sources and materials that require NRC or 
State approval to possess. Finally, NRC is developing a license 
verification system that will draw information from the other 
new systems to enable officials and vendors to verify that 
those seeking to bring radioactive materials into the country 
or purchase them are licensed to do so. GAO noted, however, 
that the various systems are more than 3 years behind schedule 
and initially may not include the licensing information on 
radioactive materials regulated by Agreement States--which 
represent over 80 percent of all U.S. licenses for such 
materials. GAO reported that the delays in the development and 
deployment of these systems are especially consequential 
because NRC has identified them as key to improving the control 
and accountability of radioactive materials. Finally, GAO 
reported that, while the CBP has a comprehensive system in 
place to detect radioactive materials entering the United 
States at land borders, some equipment that is used to protect 
CBP officers is in short supply.
K. Supply Chain Security: Examinations of High-Risk Cargo at Foreign 
        Seaports Have Increased, but Improved Data Collection and 
        Performance Measures Are Needed (GAO-08-187), January 25, 2008
    The Container Security Initiative (CSI) of the Customs and 
Border Protection (CBP) aims to identify and examine high-risk 
U.S.-bound cargo through inspections at foreign seaports. GAO 
reported in 2003 and 2005 that CSI helped to enhance homeland 
security, and recommended actions to strengthen the program. 
The Subcommittee, full Committee, the Senate Committee on 
Commerce and the House Committee on Energy and Commerce made a 
joint request to GAO to update its prior work and assess how 
CBP has: (1) contributed to strategic planning for supply chain 
security, (2) strengthened CSI operations, and (3) evaluated 
CSI operations.
    GAO determined that CBP reached an important target of 
operating CSI in 58 foreign seaports, and thereby having 86 
percent of all U.S.-bound cargo containers pass through CSI 
seaports in fiscal year 2007. Also, CBP has increased CSI 
staffing levels closer to those called for in its staffing 
model and in prior GAO recommendations. GAO reported, however, 
that CBP still faces staffing challenges because of its partial 
dependence on a temporary workforce and inability to identify 
sufficient numbers of qualified staff. Also, while CBP has been 
able to reach most foreign seaports, hurdles to cooperation 
remain at some of them, such as restrictions on CSI teams 
witnessing examinations. GAO reported that CBP refined overall 
CSI performance measures, but has not fully developed 
performance measures and annual targets for core CSI functions, 
such as the examination of high-risk containers before they are 
placed on vessels bound for the United States. GAO concluded 
that these weaknesses in CBP's data collection and performance 
measures potentially limit the information available on overall 
CSI effectiveness.
L. Supply Chain Security: U.S. Customs and Border Protection Has 
        Enhanced Its Partnership with Import Trade Sectors, but 
        Challenges Remain in Verifying Security Practices (GAO-08-240), 
        April 25, 2008
    The Customs and Border Protection (CBP) is responsible for 
ensuring the security of cargo containers shipped into the 
United States. To strike a balance between security and 
commerce, CBP oversees the Customs-Trade Partnership Against 
Terrorism (C-TPAT) program. C-TPAT aims to secure the flow of 
goods bound for the United States by developing a voluntary 
antiterrorism partnership with stakeholders of the 
international trade community comprised of importers; customs 
brokers; air, sea, and land carriers; and other logistics 
service providers such as freight consolidators and nonvessel 
common carriers. Member companies agree to allow CBP to 
validate their security practices and, in exchange, they are 
awarded benefits, such as reduced scrutiny of their cargo. CBP 
gained additional responsibility for the C-TPAT program when 
the Security and Accountability For Every Port (or SAFE Port) 
Act of 2006 established a statutory framework for it and added 
new components to it.
    A prior review by GAO of the C-TPAT program found multiple 
managerial and operational weaknesses. The Subcommittee, full 
Committee, Senate Committee on Commerce, and House Committee on 
Energy and Commerce made a joint request that GAO assess CBP's 
progress in overcoming those weaknesses, including progress in: 
(1) improving its benefit award policies for C-TPAT members, 
(2) addressing challenges in validating members' security 
practices, and (3) addressing management and staffing 
challenges.
    GAO found that CBP had taken steps to improve the C-TPAT 
program, but challenges remained. GAO reported that CBP had 
strengthened its policies for granting benefits to importers, 
C-TPAT's largest member sector, but is working to improve its 
policies for members in other trade sectors. With regard to the 
C-TPAT security validation process, GAO reported that CBP was 
unable to verify that partnership members had security 
practices that met the minimum criteria. For example, CBP did 
not have internal controls to consistently ensure that when 
security specialists made recommendations in validation 
reports, appropriate actions were taken to follow up those 
recommendations. As a result, CBP could not be certain that the 
C-TPAT member companies who were shipping containers under 
reduced security agreements were using adequate security 
practices. Finally, GAO reported that CBP had embarked on plans 
to improve managing and staffing.
    GAO made recommendations for specific improvements which 
CBP agreed to implement.
M. Supply Chain Security: CBP Works with International Entities to 
        Promote Global Customs Security Standards and Initiatives, but 
        Challenges Remain (GAO-08-538), August 15, 2008
    As part of the responsibility of the Customs and Border 
Protection (CBP) to ensure the security of cargo containers 
shipped into the United States, CBP is involved with efforts to 
establish an international system of mutual recognition of 
customs security practices based on the adoption of uniform, 
international standards. The Subcommittee, full Committee, 
Senate Committee on Commerce, and House Committee on Energy and 
Commerce made a joint request to GAO to evaluate: (1) actions 
taken by CBP to develop and implement international supply 
chain security standards, (2) actions taken by CBP with 
international partners to achieve mutual recognition of customs 
security practices, and (3) issues CBP and foreign customs 
administrations anticipate in implementing 100 percent scanning 
of U.S.-bound container cargos.
    GAO reported that, to develop and implement international 
supply chain security standards, CBP has taken a lead role in 
working with foreign customs administrations and the World 
Customs Organization (WCO). Through the Container Security 
Initiative (CSI), CBP places staff at foreign seaports to work 
with host nation customs officials to identify high-risk 
container cargo bound for the United States, and through the 
Customs-Trade Partnership Against Terrorism (C-TPAT), CBP forms 
voluntary partnerships to enhance security measures with 
international businesses involved in oceangoing trade with the 
United States. GAO reported that, in collaboration with 11 
other members of the WCO, CBP has developed the Framework of 
Standards to Secure and Facilitate Global Trade (SAFE 
Framework). The SAFE Framework was adopted by the 173 WCO 
member customs administrations in June 2005; and as of July 
2008, 154 had signed letters of intent to implement the 
standards. More specifically, CBP has signed mutual recognition 
arrangements with New Zealand, Jordan and Canada, and 
anticipates an agreement in 2009 with the European Commission, 
which represents the 27 member nations of the European Union.
    GAO reported that recent U.S. laws, such as The 
Implementing Recommendations of the 9/11 Commission Act of 2007 
(9/11 Act)--requiring that 100 percent of U.S.-bound container 
cargo be scanned at foreign seaports--may affect worldwide 
adoption of international standards. CBP and some foreign 
partners have stated that, unless additional resources are made 
available, 100 percent scanning could not be met. GAO reported 
that CBP and European custom administration officials have said 
that 100 percent scanning may result in a lower level of 
security if customs officers are diverted from focusing on 
high-risk container cargo. Under the current risk-management 
system, for example, the scanned images of high-risk containers 
are to be reviewed in a very detailed manner. However, 
according to WCO and industry officials, if all containers are 
to be scanned, the reviews may not be as thorough. Further, a 
European customs administration reported that 100 percent 
scanning could have a negative impact on the flow of commerce 
and also would affect trade with developing countries 
disproportionately.
N. United Nations Organizations: Oversight and Accountability Could Be 
        Strengthened by Further Instituting International Best 
        Practices (GAO-07-597), June 18, 2007
    As part of the Subcommittee's ongoing investigation into 
United Nations management issues, the Subcommittee's Ranking 
Minority Member, Senator Coleman, and the House Committee on 
Foreign Affairs' Ranking Minority Member, Representative Ileana 
Ros-Lehtinen, asked GAO to examine the progress of the United 
Nations in implementing a range of management, oversight, and 
accountability reforms designed, in part, to ensure that 
resources are used effectively and efficiently. In particular, 
GAO examined the extent to which: (1) selected U.N. internal 
audit offices had implemented professional standards for 
performing audits and investigations; (2) selected U.N. 
evaluation offices had implemented U.N. evaluation standards; 
and (3) selected U.N. governing bodies were provided with 
information about the results of U.N. oversight practices.
    GAO reported that the six U.N. internal audit offices 
reviewed had made progress in implementing international 
auditing standards, they had not fully implemented key 
components of the standards. GAO reported that the audit 
offices lacked completed organization wide risk-management 
frameworks, which are essential in identifying the areas with 
the greatest vulnerability to waste, fraud, and abuse, and 
three audit offices lacked sufficient staff to cover high-risk 
areas of the organization. GAO also reported that some of the 
audit offices had not fully implemented quality assurance 
processes, which include activities such as external peer 
reviews; and some did not have professional investigators.
    GAO reported that the six U.N. evaluation offices reviewed 
were working toward implementation of U.N. evaluation 
standards, but had not fully implemented them. GAO reported 
that most of the evaluation offices lacked sufficient resources 
and expertise to manage and conduct evaluations, especially at 
the country level, which impacted their ability to conduct 
high-quality and strategically important evaluations. In 
addition, GAO reported that most of the evaluation offices had 
not fully implemented quality assurance processes relating to 
areas such as evaluation methodology, scope, evidence, and 
findings. GAO also reported that all of the evaluation offices 
were working toward fully establishing mechanisms that 
systematically follow up and report on the status of their 
recommendations.
    GAO reported that the U.N. governing bodies responsible for 
oversight of the audit and evaluation offices lacked full 
access to internal audit reports and most lacked direct 
information from the audit offices about the sufficiency of 
their resources and capacity to conduct their work. GAO noted 
that access to that information would provide greater insights 
into the offices' operations and help identify critical 
systemic weaknesses. In addition, GAO reported that, with one 
exception, the audit committees that GAO examined were 
generally not accountable to their governing bodies, and some 
were composed of senior U.N. management officials.
O. United Nations: Progress on Management Reform Efforts Has Varied 
        (GAO-08-84), November 14, 2007
    As part of the Subcommittee's ongoing investigation into 
United Nations management issues, the Subcommittee asked GAO to 
update a 2006 GAO report which had found that United Nations 
management reforms were progressing slowly. In response, GAO 
evaluated U.N. management reform initiatives in five areas--
ethics, oversight, procurement, management operations of the 
Secretariat, and management of U.N. programs and activities 
(known as mandates); and also identified factors that had 
slowed the pace of reform efforts.
    Overall, GAO found mixed progress in U.N. management reform 
efforts. In the area of ethics, GAO found that the U.N. Ethics 
Office had made substantial progress in staffing its office and 
implementing a whistleblower protection policy, as well as some 
progress in developing ethics standards and collecting and 
analyzing financial disclosure forms. In the area of oversight, 
GAO found that member states had made some progress when they 
created an Independent Audit Advisory Committee, which is 
expected to be operational by January 2008. Additionally, the 
Office of Internal Oversight Services (OIOS) had improved the 
oversight capacity of individual divisions, including through 
internal audit and investigations. GAO noted, however, that 
U.N. funding arrangements continude to constrain the 
independence of OIOS and its ability to audit high-risk areas.
    In the area of procurement, GAO found that some progress 
had been made, noting the development of a comprehensive 
training program for procurement staff. GAO also noted, 
however, that the U.N. had made little or no progress in 
establishing an independent bid protest system. GAO found that 
some progress had been made in reforming management operations 
at the U.N. Secretariat, highlighting improvements to human 
resource functions and information technology. In contrast, GAO 
found little or no progress had been made in reforming the 
U.N.'s internal justice system for resolving and adjudicating 
staff grievances and safeguarding the rights of staff members, 
certain budgetary and financial management functions, and the 
delivery of certain services. Finally, GAO found that, despite 
some limited initial actions, the U.N.'s review of U.N. 
programs and activities had not advanced, due in part to a lack 
of support by many member states.
    GAO reported that various factors had slowed the pace of 
U.N. management reforms, and predicted that a number of reforms 
would be unable to move forward until those factors were 
addressed. GAO identified four main factors slowing reforms: 
(1) disagreements among member states on the priorities and 
importance of U.N. management reform efforts, (2) the lack of 
comprehensive implementation plans for some management reform 
proposals, (3) administrative policies and procedures that 
continue to complicate the process of implementing certain 
complex human resource initiatives, and (4) competing U.N. 
priorities, such as the proposal to reorganize the Department 
of Peacekeeping Operations, that limit the capacity of General 
Assembly members to address management reform issues.
P. Selected Agencies Use of Criminal Background Checks for Determining 
        Responsibility (GAO-07-215R), January 12, 2007
    As part the Subcommittee's ongoing interest in uncovering 
and preventing contractor waste and fraud affecting the Federal 
Government, the Subcommittee asked GAO to research certain 
agency policies and practices for making responsibility 
determinations before awarding contracts, including any agency 
use of criminal background checks. Responsibility 
determinations for Federal contractors include an assessment of 
a number of specific elements including a contractor's 
technical capability, past performance, financial capability, 
and business ethics and integrity. In its report, GAO sought to 
(1) identify agency policies and practices for making 
contractor responsibility assessments, and the conditions under 
which agencies conduct criminal background checks; (2) 
determine how contracting officers use the Excluded Parties 
List System (EPLS) to make responsibility assessments and 
identify any planned improvements to the EPLS; and (3) 
determine the number of fraud investigations in which the 
contractor or its principals had a prior criminal background.
    GAO found that Federal agencies base their policies and 
practices for making contractor responsibility determinations 
on the Federal Acquisition Regulation (FAR) and their own 
supplements to the FAR. The FAR specifies a number of factors 
to consider in making responsibility determinations, but does 
not require a criminal background check. GAO reported that 
contracting officers also used the EPLS system to determine if 
a particular contractor was excluded from eligibility to bid on 
a contract. GAO reported that contracting officers said they 
generally searched the EPLS by using (1) an identifying number 
such as the Data Universal Numbering System (DUNS) or a 
Taxpayer Identification Number, or (2) the name of either the 
firm or an individual.
    GAO described how the EPLS list was compiled. GAO reported 
that officials said their agencies received allegations of 
irregularities from many sources including contracting 
officers, oversight organizations such as the Defense Contract 
Management Agency, agency or contractor employees, competitors, 
other Federal agencies, whistleblower cases, and hotlines. 
Agencies assigned investigations of fraud to internal criminal 
investigative units, such as the Office of Inspector General, 
which coordinate with their General Counsel offices to report 
indictments or evidence to initiate suspensions and convictions 
to initiate debarment proceedings.
    GAO reported that, according to agency officials, 
information on whether investigations included company 
employees or principals with a prior criminal history may be 
contained in the case files if it is a part of the information 
collected in developing the investigation. For example, at DOJ, 
prior criminal history checks are a routine part of case 
development. However, the case files are narrative in nature 
and, therefore, obtaining the information would require a case-
by-case analysis. GAO was thus unable to determine the number 
of fraud investigations in which the contractor or its 
principals had a prior criminal background.
Q. Terrorist Watch List Screening: Opportunities Exist to Enhance 
        Management Oversight, Reduce Vulnerabilities in Agency 
        Screening Processes, and Expand Use of the List (GAO-08-110) 
        October 11, 2007
    The Terrorist Screening Center (TSC) of the Federal Bureau 
of Investigation (FBI) maintains a consolidated watch list of 
known or suspected terrorists and sends records from the list 
to agencies to support terrorism-related screening. Because the 
list is an important tool for combating terrorism and because 
there have been complaints and criticisms about its 
effectiveness, the Subcommittee, the full Committee, and the 
House Committee on Homeland Security made a joint request to 
GAO to examine: (1) the standards for including individuals on 
the list, (2) the outcomes of encounters with individuals on 
the list, (3) potential vulnerabilities and efforts to address 
them, and (4) actions taken to promote effective terrorism-
related screening.
    To conduct this work, GAO reviewed documentation obtained 
from and interviewed officials at TSC, the FBI, the National 
Counterterrorism Center, the Department of Homeland Security 
(DHS), and other agencies that perform terrorism-related 
screening. GAO found that the FBI and intelligence community 
use standards of reasonableness to evaluate individuals for 
nomination to the consolidated watch list. GAO reported that 
agencies generally list individuals with known links to 
terrorism as well as individuals who are reasonably suspected 
of having possible links to terrorism. Because the list 
includes individuals with possible, but not known, links to 
terrorism, being on the list does not automatically prohibit 
the issuance of a visa or entry into the United States. 
Instead, agency officials are required to assess the threat 
that a particular person poses to determine what action to 
take, if any.
    GAO reported that, as of May 2007, the consolidated watch 
list contained approximately 755,000 records. GAO found that, 
from December 2003 through May 2007, screening and law 
enforcement agencies encountered individuals who were 
positively matched to watch list records approximately 53,000 
times. Many of the same individuals were matched multiple 
times. The encounters resulted in a wide array of actions, 
including arrests, denials of entry into the United States, 
and, most often, questioning and release. GAO reported that, 
within the Federal community, there is general agreement that 
the watch list has helped to combat terrorism by (1) providing 
screening and law enforcement agencies with information to help 
them respond appropriately during encounters, and (2) helping 
law enforcement and intelligence agencies track individuals on 
the watch list and collect information about them for use in 
conducting investigations and in assessing threats.
    Regarding potential vulnerabilities, GAO reported that TSC 
sends records daily from the watch list to screening agencies. 
GAO noted, however, that some records are not sent, partly 
because screening against them may not be needed to support the 
respective agency's mission or may not be possible due to the 
requirements of various computer programs used to check 
individuals against watch list records. GAO reported that some 
listed persons had passed undetected through agency screening 
processes and were not identified, for example, until after 
they had boarded and flew on an aircraft or were processed at a 
port of entry and admitted into the United States. TSC and 
other Federal agencies have ongoing initiatives to help reduce 
these potential vulnerabilities, including efforts to improve 
computerized name-matching programs and the quality of watch 
list data.
    GAO reported that, although the Federal Government has made 
progress in promoting effective terrorism-related screening, 
additional screening opportunities remain untapped within both 
the Federal and private sectors. GAO found that the government 
lacked an up-to-date strategy and implementation plan for 
optimizing use of the terrorist watch list, and clear lines of 
authority and responsibility. GAO concluded that an up-to-date 
strategy and implementation plan, supported by a clearly 
defined leadership or governance structure, would provide a 
platform to establish government-wide screening priorities, 
address privacy and civil liberties issues, identify problems, 
implement reforms, and assess progress.
R. Additional GAO reports that assisted the Subcommittee during the 
        110th Congress include the following, which have already been 
        described in connection with the Subcommittee's hearings.
     LThousands of Medicaid Providers Abuse the Tax 
System (GAO-08-17), November 14, 2007
     LMedicare: Thousands of Medicare Providers Abuse 
the Federal Tax System (GAO-08-618), June 13, 2008
     LTax Compliance: Businesses Owe Billions in 
Federal Payroll Taxes (GAO-08-617), July 27, 2008
S. Additional GAO reports that assisted the Subcommittee during the 
        110th Congress include the following, which were requested by 
        multiple parties and which lie within the primary jurisdiction 
        of other committees.
     LNuclear Nonproliferation: Progress Made in 
Improving Security at Russian Nuclear Sites, but the Long-term 
Sustainability of U.S.-Funded Security Upgrades Is Uncertain 
(GAO-07-404), February 28, 2007
     LOil and Gas Royalties: Royalty Relief Will Cost 
the Government Billions of Dollars but Uncertainty Over Future 
Energy Prices and Production Levels Make Precise Estimates 
Impossible at this Time (GAO-07-590R), April 12, 2007
     LGlobal Nuclear Energy Partnership: DOE Should 
Reassess Its Approach to Designing and Building Spent Nuclear 
Fuel Recycling Facilities (GAO-08-483), April 22, 2008
                AD HOC SUBCOMMITTEE ON STATE, LOCAL, AND

              PRIVATE SECTOR PREPAREDNESS AND INTEGRATION

                        Chairman: Mark L. Pryor

                Ranking Minority Member: John E. Sununu

                              I. Hearings

1. Private Sector Preparedness--Part I: Defining the Problem and 
        Proposing Solutions (June 21, 2007)
    Witnesses: Mr. Alfonso Martinez-Fonts, Assistant Secretary, 
Private Sector Office, U.S. Department of Homeland Security 
(DHS); Mr. Marko Bourne, Director, Policy and Program Analysis, 
Federal Emergency Management Agency (FEMA), U.S. Department of 
Homeland Security (DHS); Mr. Duane Ackerman, Chair, Task Force 
on Business Response, Business Executives for National 
Security; Honorable John Breaux, Former Senator, Co-Chair, Task 
Force on Business Response, Business Executives for National 
Security; Dr. Richard Andrews, Senior Advisor for Homeland 
Security, National Center for Crisis and Continuity 
Coordination.
    The purpose of this hearing was to examine the status of 
public-private collaboration in preparing for and responding to 
national catastrophes. For economic reasons, businesses have 
long had their own contingency plans in place. Similarly, 
Federal, State, and local governments have long operated 
emergency management agencies to cope with hazardous material 
accidents, disasters caused by extreme weather, and terrorist 
incidents. However, the September 11, 2001 terrorist attacks, 
combined with Hurricanes Katrina and Rita of 2005, shined a 
spotlight on the fact that the private sector and public 
disaster management agencies rarely coordinate their actions. 
These tragedies revealed problems ranging from an inability of 
potential donor companies to find a government point of contact 
to accept donated materials, to logistics management that 
stopped privately-owned trucks from delivering goods to 
disaster zones, to private sector technicians denied access to 
the critical infrastructure they were sent to disaster zones to 
repair.
    A number of post-September 11, 2001, bills have briefly 
mentioned the topic of private sector preparedness. Most of 
these references instruct DHS or FEMA to ``work with the 
private sector'' on projects without providing any guidance on 
the specific goals that public-private cooperation should 
achieve. The only piece of legislation, at the time of the 
hearing, with a specific private sector title was S. 4, 
Implementing the 9/11 Commission Recommendations, now Public 
Law 110-53. The 9/11 Commission recommended that Congress 
provide a set of voluntary preparedness and contingency 
planning standards that companies could choose to adopt. Public 
Law 110-53 instructs the private sector on how to meet 
standards set by the government. However, the law does not 
instruct the government on how to cooperate with the private 
sector to improve logistics, contracting, training exercises, 
or point of contact authorities.
    In June 2006, the non-partisan Business Executives for 
National Security (BENS) formed a task force to address public-
private coordination. The task force identified the factors 
that hindered public-private cooperation in preparedness and 
response, and analyzed them in a report entitled, ``Getting 
Down to Business: An Action Plan for Public-Private Disaster 
Response Coordination.'' The three main findings of this report 
are: (1) that the private sector must be integrated 
systematically into national preparedness and response efforts, 
(2) that commercial supply chains can provide a wider range of 
goods and services than government entities, and (3) that 
businesses require more predictable regulatory and legal regime 
to be effective in contributing to government response efforts. 
The findings of this report have sparked debate and increased 
interest in public-private partnerships.
    The Subcommittee received testimony from five witnesses, 
each providing a different perspective. DHS discussed the 
activities of its private sector outreach office. FEMA offered 
testimony on the steps it has taken to improve coordination 
with the private sector on logistics and on FEMA's adoption of 
some private sector best practices. The BENS witnesses 
discussed the findings and recommendations of their report. 
Finally, a representative of the National Center for Crisis and 
Continuity Coordination presented a State and local government 
perspective.
    The sole panel consisted of five witnesses. Mr. Alfonso 
Martinez-Fonts discussed DHS's outreach activities and 
relationship with private sector advisory councils. Mr. Marko 
Bourne explained a number of new initiatives such as efforts 
with the private sector. FEMA was implementing to better 
coordinate response activities with the private sector. Mr. 
Duane Ackerman discussed the main criteria that must be 
satisfied to re-establish continuity of community in the wake 
of a disaster, including effective communication methods, 
logistics, and regulatory authority. He also recommended some 
steps that could be taken to coordinate Emergency Operations 
Centers (EOCs) that exist at all levels of government, and 
Business Operations Centers (BOCs) of large corporations such 
as Wal-Mart and Home Depot. Hon. John Breaux, representing 
Business Executives for National Security, discussed the 
regulatory and legislative steps that the government can take 
to improve coordination with the private sector. He highlighted 
some recommendations that have already been incorporated into 
policy by FEMA or DHS, and identified additional action steps 
that could further national preparedness efforts.The fifth 
witness was Dr. Richard Andrews who recently completed a survey 
of States' activities to integrate the private sector into 
planning and response councils. He discussed his findings, 
including the factors that facilitate public-private 
cooperation at the State level and those that hinder it.
2. Private Sector Preparedness--Part II: Protecting Our Critical 
        Infrastructure (July 12, 2007)
    Witnesses: Colonel Robert Stephan, Assistant Secretary for 
the Office of Critical Infrastructure Protection, U.S. 
Department of Homeland Security (DHS); Ms. Eileen Larence, 
Director of Homeland Security and Justice Issues Division, U.S. 
Government Accountability Office (GAO); Colonel Kenneth Watson, 
Vice President, Partnership for Critical Infrastructure 
Security and Senior Manager, Critical Infrastructure Insurance 
Group, Cisco Systems.
    The purpose of this hearing was to examine the state of 
public-private collaboration in identifying, prioritizing, and 
protecting our country's critical infrastructure.
    Critical infrastructure is defined as the array of physical 
assets, functions, information, and systems that support 
activities that are crucial to the day-to-day functioning and 
security of our country. It includes socioeconomic functions 
ranging from the transportation of goods and people, to 
communications, financial services, and electricity 
distribution. These functions are often so interconnected that 
an attack or accident affecting one could have ramifications 
for many. However, for purposes of protection and risk 
analysis, they have been divided into 17 individual sectors.
    The 17 sectors and their lead Federal coordinating agencies 
include: Sector and Department/Agency
    Ag/food/farming, Agriculture; Banking and Finance, 
Treasury; Drinking Water/Water Treatment, EPA; Public Health 
and Healthcare, HHS; Defence Industrial Base, Defence; National 
Monuments and Landmarks, Interior; Energy (includes both 
electricity and oil/natural gas), Energy; Transportation 
(includes rail, highways, maritime, air, and public mass 
transit), Postal and Shipping, Information Technology, 
Telecommunications, Nuclear reactors, Material, and Waste, 
Chemical, Emergency Services, Dams, Commercial Facilities, and 
Government Facilities, all under DHS.
    A variety of Congressional statutes and Presidential 
Directives have placed the responsibility of coordinating the 
Nation's critical infrastructure protection efforts with DHS. 
In response, DHS issued the National Infrastructure Protection 
Plan (NIPP) on June 30, 2006. The NIPP is a base plan that 
serves as a road map for how DHS and other relevant 
stakeholders should use risk management principles to 
prioritize protection activities within and across various 
sectors. It required government agencies and corresponding 
private sector leaders in each of 17 critical sectors to form 
advisory councils to direct preparedness efforts and submit a 
sector-wide plan to DHS.
    This hearing focused on both the general issue of public-
private coordination for Critical Infrastructure Protection, 
and on how well the sector specific plans contribute to a 
broader strategy for critical infrastructure protection. The 
sole panel consisted of three witnesses. Colonel Robert Stephan 
discussed the activities of DHS Critical Infrastructure 
Protection Office. He also gave an overview of his Department, 
the NIPP, and the Department's relationship with the 17 
sectors. GAO representative Ms. Eileen Larence presented the 
results of its recent investigation into the NIPP and 17 
sector-specific plans. Third, Colonel Kenneth Watson, a 
representative of the Partnership for Critical Infrastructure 
Security, the body coordinating the efforts of all 17 sector-
specific coordinating councils, testified and identified 
strengths and weaknesses in the public-private relationship.
3. Pandemic Influenza: State and Local Efforts to Prepare (October 3, 
        2007)
    Witnesses: Hon. Rear Admiral W. Craig Vanderwagen, 
Assistant Secretary for Preparedness and Response, U.S. 
Department of Health and Human Services (DHHS); Dr. Tilman 
Jolly, Associate Chief Medical Officer, U.S. Department of 
Homeland Security (DHS); Dr. Paul Halverson, Director and State 
and Health Officer, Arkansas Department of Health; Mr. 
Christopher Pope, Director of Homeland Security and Emergency 
Management, New Hampshire Department of Safety; Ms. Yvonne 
Madlock, National Association for County and City Health 
Officials.
    The purpose of this hearing was to determine whether and 
how the Federal Government can help facilitate State and local 
preparedness for pandemic flu. Although the avian flu strain 
has not yet achieved the ability to transmit through person-to-
person contact, increased transmission among poultry 
populations has raised concerns that a mutation could cause a 
human flu pandemic. It is critical that we identify in advance 
the problems State and local partners would face in responding 
to this crisis.
    Panel one consisted of two Federal witnesses. Rear Admiral 
Craig Vanderwagen discussed the progress of the DHHS Office of 
Preparedness and Response, as well steps his office is taking 
to coordinate public health preparedness across all levels of 
government. Dr. Tilman Jolly reported on the progress of the 
new DHS Office of Health Affairs in coordinating with relevant 
departments within DHS (such as FEMA, the Private Sector 
Office, the Office of Critical Infrastructure Protection, the 
Homeland Security Advisory Council, etc.) as well as with other 
Federal agencies, and State and local agencies.
    Panel two consisted of State and local witnesses. Dr. Paul 
Halverson, from the Arkansas Department of Health, discussed a 
variety of State pandemic flu planning concerns. Mr. 
Christopher Pope, from the New Hampshire Department of Health, 
commented on the considerations of State and regional emergency 
planners in planning for pandemic flu. As a former fire chief, 
he has a unique perspective on the role of first responders in 
a health crisis. Ms. Yvonne Madlock, from the National 
Association for County and City Health Officials, described the 
pandemic flu planning considerations from the county 
perspective.
4. Not a Matter of ``If,'' But of ``When'': The Status of U.S. Response 
        Following a RDD Attack (November 15, 2007)
    A joint hearing was held with the Oversight of Governmental 
Management, the Federal Workforce, and the District of Columbia 
Subcommittee and the Ad Hoc Subcommittee on State, Local, and 
Private Sector Preparedness and Integration.
    Witnesses: Mr. Eugene E. Aloise, Director, Natural 
Resources and Environment, U.S. Government Accountability 
Office (GAO); Mr. Glenn M. Cannon, Assistant Administrator for 
Disaster Operations, Federal Emergency Management Agency 
(FEMA), U.S. Department of Homeland Security (DHS); Dr. Steven 
Aoki, Ph.D., Deputy Undersecretary of Energy for 
Counterterrorism, Department of Energy/National Nuclear 
Security Administration (NNSA), U.S. Department of Energy 
(DOE); Dr. Kevin Yeskey, M.D., Deputy Assistant Secretary for 
Preparedness and Response, U.S. Department of Health and Human 
Services (DHHS), accompanied by: Dr. Richard J. Hatchett, MD, 
Associate Director for Radiation Countermeasures Research and 
Emergency Preparedness, National Institute for Allergy and 
Infectious Disease (NIAID), National Institute of Health (NIH), 
U.S. Department of Health and Human Services (DHHS); Mr. Thomas 
P. Dunne, Associate Administrator for Homeland Security, 
Environmental Protection Agency (EPA); Mr. Kenneth Murphy, 
Director, Oregon Department of Emergency Management; Mr. Wayne 
Tripp, Program Manager, Domestic Preparedness Equipment 
Training Assistance Program; Dr. Thomas Tenforde, National 
Council on Radiation Protection and Measurements.
    The hearing examined our national level of preparedness to 
respond to a terrorist attack using a radiological dispersion 
device (RDD) or ``dirty bomb.'' The hearing looked specifically 
at how DHS coordinates with other agencies within the Federal 
Government, such as DOE and DHHS, and the capabilities these 
and other agencies have to address the health and environmental 
consequences of such an attack. The hearing examined the 
ability of regional, State, and local governments to respond to 
a dirty bomb attack.
    The first panel was comprised of representatives from 
Federal agencies that have responsibility under the ``Nuclear/
Radiological Incident Annex'' of the National Response Plan for 
radiological preparedness and response. In its September 2006 
report entitled ``Federal Efforts to Respond to Nuclear and 
Radiological Threats and to Protect Emergency Response 
Capabilities Could be Strengthened,'' the GAO examined the 
capabilities of one of those agencies, the DOE. GAO concluded 
that physical security measures in place at DOE's two key 
emergency response facilities may not be adequate to protect 
them against a terrorist attack. Further, GAO found that key 
tools that could be used to help detect radiological threats in 
U.S. cities more quickly and to measure radiation levels after 
a radiological attack to assist in, and reduce the costs of 
cleanup efforts are not being used because neither agency 
charged with radiological response, DOE and DHS, has mission 
responsibility for funding and conducting such surveys.
    First, Mr. Eugene Aloise discussed GAO's findings of the 
report, NNSA's response, and relevant developments since the 
report was issued in 2006. Next, Mr. Glenn Cannon discussed how 
DHS would coordinate the Federal response to a RDD attack, 
using as examples the results of the recent TOPOFF IV national 
exercise, and other means to ensure that the Federal response 
is well coordinated. He also explained what capabilities DHS 
maintains to conduct the requisite analyses, including dose 
reconstruction for medical interventions for victims of the 
attack, and technical nuclear forensics to determine the origin 
of material used in the attack, in line with the National 
Planning Scenario #11, Radiological Attack--Radiological 
Dispersal Device. Mr. Glenn Cannon ended his testimony with how 
DHS coordinates with State and local level entities in the 
aftermath of a RDD attack. Third, DOE representative Dr. Steven 
Aoki discussed the capabilities that NNSA has to respond to a 
radiological attack, measures it has taken to implement the 
recommendations of the September 2006 GAO report, and how it 
would coordinate with DHS, the EPA, and State and local 
governments in the aftermath of such an attack. Also, he 
explained the capabilities NNSA has to perform analyses to help 
identify doses received by individuals to facilitate 
appropriate medical intervention, and to help identify the 
source of radioactive material used in such an attack. The 
fourth witness, Dr. Kevin Yeskey accompanied by Dr. Richard 
Hatchett, testified on DHHS's preparedness specific to 
radiation events and the initial observations by DHHS through 
its participation in the TOPOFF IV exercise, which involved 
several simulated attacks using Radiologic Dispersal Devices. 
Fifth, Mr. Thomas Dunne discussed the capabilities EPA has to 
take over a site that has been contaminated by radiation 
following such an attack, how it would handle the turnover from 
DOE, and how EPA would coordinate with State and local entities 
to ensure that the public is aware of such clean-up activities. 
He also discussed the technologies EPA has available to conduct 
such a cleanup, using as examples the results of the recent 
TOPOFF IV national exercise, in line with the National Planning 
Scenario #11, Radiological Attack--Radiological Dispersal 
Device.
    The second panel included implementers of preparedness and 
protection plans who gave their views on the successes and 
continuing challenges of RDD response at the State and local 
levels. Critical infrastructure owner/operators have worked 
closely with local law enforcement officials to increase 
perimeter security. The hearing looked at ``hard protections'' 
as well as advances in technology, employee screening, and 
medical response procedures. It also examined the training 
programs in place to ensure that first responders can identify 
and respond quickly to an RDD detonation site.
    On the second panel, Mr. Kenneth Murphy, representing 
Oregon Department of Emergency Management, testified on the 
coordination of response efforts between local, State, and 
private sector entities and the Federal Government during the 
recent TOPOFF IV exercise. He also discussed lessons learned 
related to first responders as well as recommendations for 
improving the participation of the private sector in RDD 
preparedness and response efforts. Next, Mr. Wayne Tripp, 
representing the Domestic Preparedness Equipment Technical 
Assistance Program, discussed the types of radiological 
detection equipment available, the proficiency of responders, 
and community and hospital decontamination programs that could 
help prevent the spread of radiological materials in the 
aftermath of a RDD attack. Finally, Dr. Thomas Tenforde 
discussed the findings of NCRP's landmark 2001 report 
``Management of Terrorist Events Involving Radioactive 
Material'' and subsequent work in this area, including the 
psychosocial effects of a radiological terrorist incident, 
public communication in the aftermath of such an incident, and 
any regional, State, and local level coordination of public 
outreach and preparedness efforts.
5. The New Madrid Seismic Zone: Whose Fault Is It Anyway? (December 4, 
        2007)
    Witnesses: Mr. Glenn M. Cannon, Assistant Administrator for 
Disaster Operations, Federal Emergency Management Agency 
(FEMA), U.S. Department of Homeland Security (DHS); Dr. Jack 
Hayes, Director, National Earthquake Hazard Reduction Program 
(NEHRP), National Institute of Standards and Technology (NIST); 
Dr. David Applegate, Senior Science Advisor for Earthquakes and 
Geological Hazards, U.S. Geological Survey (USGS); Mr. David 
Maxwell, Director, Arkansas Department of Emergency Management; 
Mr. Callen Hayes, Crisis Management Coordinator, Memphis Light, 
Gas, and Water.
    The purpose of this hearing was to assess mitigation and 
response plans in the event of an earthquake along the New 
Madrid fault line. The hearing focused on the predicted outcome 
of a significant earthquake in this region and the efforts of 
Federal, State, and local officials to prepare for such an 
event. The hearing also examined Federal Guidance to State and 
local officials as well as the ways in which States were 
forming regional partnerships in advance of this situation.
    In the first panel, Mr. Glenn Cannon testified about FEMA's 
development and execution of interagency plans, policies, and 
procedures for response operations to an earthquake along the 
New Madrid fault line. He offered information about 
coordination among the relevant Federal agencies that are 
involved in the mitigation, planning and response efforts in 
regard to an earthquake along the New Madrid fault line as well 
as coordination with State and local governments. Next, Dr. 
Jack Hayes spoke about the state of coordination between 
Federal agencies and improvements NIST has made since taking on 
primary responsibility for NEHRP. He also discussed the 
division of responsibilities in regard to planning, mitigation, 
and response efforts of an earthquake along the New Madrid 
fault line. Third, Dr. David Applegate, from the USGS, gave an 
overview of his work in monitoring and notification of seismic 
activity. He testified about the differences between the New 
Madrid fault line and other fault lines around the country--
especially those physical differences in geology and the 
psychosocial differences in communities.
    In the second panel, Arkansas Department of Emergency 
Management Director, Mr. David Maxwell, offered information 
about preparedness efforts at the State level and coordination 
of those efforts with local first responders and government 
officials. He also testified about regional efforts to mitigate 
the risk posed by a major earthquake along the New Madrid fault 
line. Next, Mr. Callen Hayes spoke about the work that Memphis 
Light, Gas and Water has done in terms of preparing for, 
mitigating the effects of and responding to an earthquake along 
the New Madrid fault line. As a critical infrastructure 
representative he offered information about the risks posed by 
the earthquake hazard and how those risks have influenced 
Memphis, Light, Gas and Water's business plan.
6. Is Housing Too Much to Hope For?: FEMA's Disaster Housing Strategy 
        (Mar. 4, 2008)
    A joint hearing was held with the Ad Hoc Subcommittee on 
Disaster Recovery and the Ad Hoc Subcommittee on State, Local, 
and Private Sector Preparedness and Integration.
    Witnesses: Admiral Harvey E. Johnson, Jr., Deputy 
Administrator, Federal Emergency Management Agency (FEMA), U.S. 
Department of Homeland Security (DHS); Dr. Howard Frumkin, 
Director, National Center for Environmental Health Agency for 
Toxic Substances and Diseases, Center for Disease Control 
(CDC); Mr. Milan Ozdinec, Deputy Assistant Secretary, Public 
Housing and Voucher Programs, U.S. Department of Housing and 
Urban Development (HUD).
    This hearing examined FEMA's progress towards the 
completion of the National Disaster Housing Strategy, which was 
required by Public Law 109-295, the Post Katrina Emergency 
Management and Reform Act (PKEMRA). The hearing looked at the 
strategy itself, the Disaster Housing Assistance Program's 
(DHAP) transition progress, the formaldehyde testing and 
evaluation of FEMA temporary housing units, and other post-
disaster housing options.
    In panel one Admiral Harvey Johnson addressed FEMA's 
overarching plan to provide emergency and long-term recovery 
housing to victims of natural and man-made disasters, 
particularly the timeframe for resolving the question of travel 
trailer use, as well as how this and other issues have delayed 
production of the National Disaster Housing Strategy. Second, 
Dr. Howard Frumkin discussed CDC's collaboration with FEMA to 
complete the formaldehyde testing of 519 travel trailers, park 
models, and mobile homes, as well as the timeframe for applying 
the findings beyond the initial test cases. Third, Mr. Milan 
Ozdinec addressed HUD's involvement in providing disaster 
related housing, including the progress of the current 
activities, HUD's future roles and responsibilities in disaster 
housing, and HUD's involvement in the development and 
implementation of the National Disaster Housing Strategy.
7. Focus on Fusion Centers: A Progress Report (April 17, 2008)
    Witnesses: Captain Charles Rapp, Director, Maryland 
Coordination and Analysis Center; Mr. Matthew Bettenhausen, 
Homeland Security Advisor, State of California; Mr. Russell 
Porter, Director, Iowa Intelligence Fusion Center; Ms. Eileen 
Larence, Director, Homeland Security and Justice, U.S. 
Government Accountability Office (GAO); Mr. Vance Hitch, Chief 
Information Officer, U.S. Department of Justice (DOJ); Mr. Jack 
Tomarchio, Principal Deputy Assistant Secretary, Office of 
Intelligence and Analysis, U.S. Department of Homeland Security 
(DHS).
    The purpose of this hearing was to assess the role of the 
Federal Government in coordinating with and providing guidance 
to fusion centers. It examined the successes of fusion centers 
in facilitating information sharing between various Federal and 
State partners as well as remaining challenges to fusion center 
missions, collaboration, or sustainability.
    In panel one Maryland Coordination and Analysis Center 
representative Captain Charles Rapp testified on day-to-day 
management, benchmarks for success, coordination between 
satellite fusion centers within States and between centers 
across the country, as well as next steps for fusion centers. 
Mr. Matthew Bettenhausen testified about achievement of 
coordinated Federal support for the Nation's fusion centers, 
his evaluation of cooperation between local and State fusion 
centers as well as inter-state information sharing, and the 
integration of critical infrastructure concerns and private 
sector partners into the intelligence gathering process. He 
also assessed the factors that contribute to a successful 
fusion center and offered recommendations on improving the 
network of fusion centers. Mr. Russell Porter discussed day-to-
day management at the Iowa Intelligence Fusion Center as well 
as next steps for fusion centers.
    In panel two, GAO's Ms. Eileen Larence assessed the factors 
that contribute to a successful fusion center and those that 
inhibit fusion center creation or maintenance. She also spoke 
about whether and how the Federal Government should continue to 
assist fusion center development. DOJ's Mr. Vance Hitch and 
DHS's Mr. Jack Tomarchio both testified on how to best achieve 
coordinated Federal support for State and local fusion centers. 
They spoke specifically of the factors that contribute to a 
successful information sharing center that enhances law 
enforcement priorities.
8. It Takes a Village: Community Preparedness (June 5, 2008)
    Witnesses: Mr. Dennis Schrader, Deputy Administrator, 
National Preparedness Directorate, Federal Emergency Management 
Agency (FEMA), U.S. Department of Homeland Security (DHS); Mr. 
Russell Decker, Director, Office of Homeland Security and 
Emergency Management and First Vice President of the 
International Association of Emergency Managers; Ms. Suzy 
DeFrancis, Chief Public Affairs Officer, American Red Cross.
    The purpose of the hearing was to assess the ability of 
various Federal and non-Federal outreach programs to prepare 
our citizens and communities for natural or man-made disasters. 
The Subcommittee was interested in determining whether 
additional communications and outreach programs are necessary, 
and if so, what types of approaches best achieve the goal of 
enabling private citizens to contribute to an overarching 
homeland security strategy.
    FEMA's Mr. Dennis Schrader gave an overview of Ready.gov 
and the Citizen Corps programs. Second, from the International 
Association of Emergency Managers, Mr. Russell Decker gave an 
overview of local preparedness programs. Third, Ms. Suzy 
DeFrancis gave an overview of the American Red Cross 
preparedness programs. All the witness testified about the 
factors that contribute to successful community preparedness 
programs and their recommendations for continued improvement of 
the network of programs.
9. Mission Possible: FEMA's Future Preparedness Planning (September 24, 
        2008)
    Witnesses: Mr. Marko Bourne, Director, Policy and Program 
Analysis, Federal Emergency Management Agency (FEMA), U.S. 
Department of Homeland Security (DHS); Ms. Nancy Dragani, 
President, National Emergency Management Association (NEMA); 
Mr. Larry Gispert, President, International Association of 
Emergency Managers (IAEM); Ms. Jane Bullock, Former Chief of 
Staff, Federal Emergency Management Agency (FEMA), U.S. 
Department of Homeland Security (DHS).
    The purpose of this hearing was to assess FEMA's planning 
as it relates to preparedness programs. The hearing focused on 
FEMA's mission plans and processes as well as the agency's 
efforts to involve State and local partners in policy changes.
    Mr. Marko Bourne testified on FEMA's coordination with 
State and local preparedness partners. He discussed the role of 
the 10 FEMA Regional offices and their outreach to State and 
local governments. Mr. Marko Bourne spoke of the ability of 
FEMA and State and local emergency managers to respond and 
coordinate response efforts in the event of a natural disaster 
during periods of political change. Next, Ms. Nancy Dragani 
testified on behalf of NEMA about State-level preparedness 
planning and coordination of efforts with stakeholders at all 
levels of government. She also discussed the ways in which FEMA 
can continue to support its State and local partners over the 
coming year. Third, Mr. Larry Gispert testified on behalf of 
IAEM on local-level preparedness planning and coordination of 
efforts with stakeholders at all levels of government. Fourth, 
former FEMA chief of staff, Ms. Jane Bullock, discussed best 
practices in remaining prepared for disasters during periods of 
political change. She discussed how FEMA, along with State and 
local partners, could adapt preparedness programs and 
activities to any potential changes in policy, regional 
coordination, and organization.

                            II. Legislation

    S. 47--Law Enforcement Assistance Force Act of 2007 or the 
``LEAF Act''
    Senator John Ensign (R-NV) introduced S. 47 on January 4, 
2007. The bill was referred to the Senate Homeland Security and 
Governmental Affairs Committee. S. 47 aimed to establish a Law 
Enforcement Assistance Force in the Department of Homeland 
Security to facilitate the contributions of retired law 
enforcement officers during major disasters. It was referred to 
the Subcommittee on State, Local, and Private Sector 
Preparedness and Integration on March 30, 2007.
                AD HOC SUBCOMMITTEE ON DISASTER RECOVERY

                              I. Hearings

1. GAO's Analysis of the Gulf Coast Recovery: A Dialogue on Removing 
        the Obstacles to the Recovery Effort, April 12, 2007 (Printed, 
        134 pp. S. Hrg. 110-292.)
    Witnesses: Mr. Stanley Czerwinski, Director of Strategic 
Issues, U.S. Government Accountability Office (GAO); Chairman 
Donald Powell, Federal Coordinator for Gulf Coast Rebuilding, 
U.S. Department of Homeland Security (DHS); Ms. Donna Fraiche, 
Chairman, Long-Term Community Planning Task Force, Louisiana 
Recovery Authority; Hon. John Thomas Longo, Mayor, City of 
Waveland, Mississippi; Dr. Edward J. Blakely, Executive 
Director for Recovery Management, City of New Orleans; Mr. 
Ernie Broussard, Executive Director, Cameron Parish Planning 
and Development Authority.
    The Subcommittee's first hearing featured GAO's preliminary 
findings on Gulf Coast Recovery efforts. GAO's significant 
findings are that:
    (1) A relatively small portion of Federal Gulf Coast 
assistance is targeted to long-term rebuilding, while estimates 
of loss suggest great need;
    (2) Two key Federal programs (Public Assistance and 
Community Development Block Grants (CDBG)) that provide long-
term rebuilding resources use different approaches;
    (3) Louisiana and Mississippi target the majority of their 
CDBG funds to homeowners, but differ in policies and 
procedures;
    (4) Louisiana's homeowner assistance program aims to 
restore a displaced population;
    (5) Mississippi's homeowner assistance program aims to 
compensate losses;
    (6) Louisiana and Mississippi are engaged in planning 
activities, while the Federal Government has assumed a 
coordination role.
    The first panel highlighted several key rebuilding issues 
and challenges facing the Gulf Coast. The Federal Coordinator 
responded to these issues and described his office's efforts to 
coordinate and lead rebuilding efforts, including measuring 
progress and providing oversight.
    The second panel provided the Subcommittee with information 
on how States and localities have developed and implemented 
policies regarding rebuilding issues, such as the use of CBDG 
funds for housing. The Director of Disaster Recovery for the 
Mississippi Development Authority accepted an invitation to 
attend, but was unable to join the hearing due to an unforeseen 
work obligation. Because the Mississippi Emergency Management 
Agency (MEMA) and the Mississippi Governor's Office of Recovery 
and Renewal were unable to provide a replacement, the 
Subcommittee accepted a statement from Mr. Bryan McDonald, 
Executive Director of the Mississippi Governor's Office of 
Recovery and Renewal, and was placed on the record.
    The second half of this panel provided the Subcommittee 
with a range of local government, non-profit, and other 
perspectives. Specifically, these panelists shared first-hand 
knowledge of rebuilding issues, including the Federal Emergency 
Management Agency's Public Assistance Program, local planning 
efforts, and challenges facing local decisionmakers such as 
mayors and parish presidents.
2. Beyond Trailers: Creating a More Flexible, Efficient, and Cost-
        Effective Federal Disaster Housing Program, April 24, 2007 
        (Printed, 165 pp. S. Hrg. 110-302)
    Witnesses: Mr. David E. Garratt, Acting Director of 
Recovery, Federal Emergency Management Agency (FEMA), U.S. 
Department of Homeland Security (DHS); Mr. Robert Hebert, 
Director of Hurricane Recovery , Charlotte County, Florida; Ms. 
Sheila Crowley, President and Chief Executive Officer, National 
Low Income Housing Coalition; Colonel William Croft (Retired), 
Director of Response and Recovery, The Shaw Group, Inc.; Mr. 
Matthew Jakacki, Inspector of Gulf Coast Recovery, Federal 
Emergency Management Agency (FEMA), U.S. Department of Homeland 
Security (DHS); Mr. Gil Jamieson, Deputy Director for Gulf 
Coast Recovery, Federal Emergency Management Agency (FEMA), 
U.S. Department of Homeland Security (DHS); Major General John 
R. D'Araujo, Jr. (U.S. Army Retired), Primary Selection 
Officer, Alternative Housing Pilot Program; Mr. Andres Dunany, 
Founding Principa, Dunany, Plater-Qyberk and Company, 
Architects and Town Planners; Mr. John Badman III, Chief 
Executive Officer, RE: Formed Systems, Inc.
    The hearing examined the Stafford Act's disaster housing 
program.
    The first panel addressed the Alternative Housing Pilot 
Project grant. The panel focused upon the Katrina Cottage 
program, Congress' original intent in creating it, program 
implementation by FEMA, and the award allocations, of which 
there are questions as to whether it satisfies Congressional 
intent. As a result of some of the challenges FEMA faced while 
delivering disaster housing assistance, Congress created the 
Alternative Housing Pilot Program in the fourth emergency 
supplemental appropriations bill last year to better serve 
housing needs and spur new alternatives to the traditional 
trailers. This pilot program received $400 million for the 
``hardest hit areas'' from the 2005 hurricanes. The program's 
goals were to provide immediate housing to evacuees and to 
prompt FEMA to look beyond its existing model, which only 
permits temporary housing projects.
    The second panel addressed problems with trailers and 
rental assistance provided under the Stafford Act through FEMA. 
The panel focused on Section 408 assistance, which is also 
referred to as the Individual and Households Program (IHP). In 
the first year after Hurricanes Katrina and Rita, FEMA's 
attempts to transition people from the 403 Sheltering Program 
to the 408 Housing Program caused significant problems. Many 
individuals were forced out of their disaster housing when FEMA 
determined that their homes did not meet Section 408's damage 
requirements, although a subsequent lawsuit reversed many of 
these evictions.
    Louisiana has 56,668 disaster victims in trailers and 9,412 
receiving rental assistance. Mississippi has 27,198 victims 
living in trailers and 557 receiving rental assistance. These 
are very high numbers for events that occurred nearly two years 
ago. Problems with FEMA's trailer program include locating 
sites for multi-trailer ``parks,'' park maintenance, utility 
hookup difficulties, and trailer procurement/storage/
distribution. Inefficiencies in the latter category led to 
thousands of trailers wasting away, as evidenced by the 
situation in Hope, Arkansas.
3. The Road Home? An Examination of the Goals, Costs, Management, and 
        Impediments Facing Louisiana's Road Home Program, May 24, 2007 
        (Printed, 232 pp. S. Hrg. 110-249.)
    Witnesses: Mr. Donald E. Powell, Federal Coordinator for 
Gulf Coast Rebuilding, U.S. Department of Homeland Security 
(DHS); Mr. Nelson Bregon, Assistant Deputy Secretary, U.S. 
Department of Housing and Urban Development (HUD); Mr. David 
Maurstad, Mitigation Directorate, Federal Emergency Management 
Agency (FEMA), U.S. Department of Homeland Security (DHS); Mr. 
Walter Thomas, Resident, Lower 9th Ward; Ms. Connie Uddo, 
Administrator, St. Paul Beacon of Hope Organization; Ms. Debbie 
Gordon, President, Chimneywood Homeowner's Association; Mr. 
Frank Silvestri, Co-Chairman, Citizens' Road Home Action Team, 
Frank Trapani, President, New Orleans Metropolitan Association 
of Realtors; Mr. Andy Kopplin, Executive Director, Louisiana 
Recovery Authority; Ms. Suzie Elkins, Executive Director, 
Office of Community Development; Isabel Reiff, Senior Vice 
President, Social Programs and Strategic Communications, ICF
    The hearing examined problems caused by the use of project 
worksheets by FEMA's Public Assistance Program. We heard from 
FEMA, as well as from State officials and parish leaders. The 
panels discussed concerns and frustrations directly from 
program applicants, as well as the shortcomings of Federal and 
State governmental actors charged with administering the 
program. The Subcommittee examined issues ranging from 
underestimated rebuilding costs to delays caused by the 
requirement of numerous documents. The hearing highlighted the 
impact of these problems on the Gulf Coast recovery as well as 
recoveries from past storms.
    The first panel addressed problems that FEMA has identified 
with the Project Worksheets process as well as steps FEMA has 
taken to address the related concerns of State and local 
applicants. This DHS panel also indicated the time needed to 
complete appeals of FEMA decisions as well as the time needed 
to complete project worksheets and allocate money to the State.
    The second panel addressed problems that their parishes 
experienced with the Public Assistance Program and its use of 
project worksheets. They discussed the impact of project 
worksheets on local recovery efforts and on overall allocations 
of public assistance dollars. They also highlighted the most 
pressing problems with the program as they see them, and made 
recommendations that they believe could improve the 
administration of the program and make it easier to navigate.
    The third panel discussed their roles as State-level 
administrators of the Public Assistance Program. They addressed 
the impact of project worksheets on rebuilding and repairing 
State-run public buildings and critical infrastructure. This 
panel also focused on the role they play in the administrative 
process and the difficulties presented by project worksheets in 
disbursing Federal funds to local entities.
4. FEMA's Project Worksheets: Addressing a Prominent Obstacle to the 
        Gulf Coast Rebuilding, July 10, 2007. (Printed, 92 pp. S. Hrg. 
        110-404)
    Witnesses: Hon. C. Ray Nagin, Mayor, City of New Orleans; 
Kevin Davis, President, St. Tammary Parish, Louisiana; Colonel 
Jeff Smith, Acting Director, Governor's Office of Homeland 
Security and Emergency Preparedness; Mr. Bryan McDonald, 
Executive Director, Mississippi Governor's Office of Recovery 
and Renewal; Mr. Mark Merritt, Senior Vice President of 
Response and Recovery, James Lee Witt Associates; Mr. James 
Walke, Director, Public Assistance Division, Disaster 
Assistance Directorate, Federal Emergency Management Agency 
(FEMA), U.S. Department of Homeland Security (DHS)
    The purpose of this hearing was to hear testimony on FEMA's 
administration of its Public Assistance Program, which focused 
on project worksheets that by all accounts have become a major 
obstacle to Gulf Coast rebuilding efforts and rebuilding 
efforts of past disasters. Many issues ranging from 
underestimated rebuilding projects to the requirement to 
produce huge numbers of documents, have resulted in enormous 
delays in reimbursements from the Public Assistance Program to 
localities working feverishly to rebuild important public 
infrastructure. The hearing highlighted the impact of this 
problem on the Gulf Coast Recovery, as well as recoveries from 
past storms.
    The first and second panel addressed problems that the 
parishes experienced with FEMA's Public Assistance Program and 
its use of project worksheets. The witnesses discussed the 
impact of project worksheets on Gulf Coast recovery efforts and 
on overall allocations of public assistance dollars.
    Panel three discussed issues that FEMA had identified with 
the Project Worksheets process as well as steps FEMA has taken 
to address the related concerts of State and local applicants. 
Mr. Walke also addressed the timeline it takes to complete 
appeals of FEMA decisions, and the average time it takes to 
complete project worksheets and allocate money to a State.
5. The State and Federal Response to Storm Damage and Erosion in 
        Alaska's Coastal Villages, Oct. 11, 2007. Field Hearing in 
        Anchorage, Alaska. (Printed, 140 pp. S. Hrg. 110-486)
    Witnesses: Brigadier General John W. Peabody, Commander, 
Pacific Ocean Division, U.S. Army Corps of Engineers; Mr. John 
Madden, Director, Division of Homeland Security and Emergency 
Management, State of Alaska; Ms. Susan Reinertson, Regional 
Administrator, Federal Emergency Management Agency Region X 
(FEMA), U.S. Department of Homeland Security (DHS); Ms. Colleen 
E. Swan, Tribal Administrator, Kivalina Alaska; Stanley Tom, 
Tribal Administrator, Newtok, Alaska; Mr. Tony Weyiouana Sr., 
Village Transportation Planner, Shishmaref, Alaska; Mr. Steve 
Ivanoff, Village Transportation Planner, Unalakleet, Alaska
    This field hearing's purpose was to discuss State and 
Federal efforts to prevent and respond to the massive storm 
damage and erosion that Alaska's coastal villages are suffering 
at an alarming rate. The Army Corps of Engineers and a 2003 
Government Accountability Office (GAO) report found that 
flooding and erosion impact an estimate of 184 out of 213, or 
86 percent, of Alaska Native villages are threatened by 
erosion, and have found that Kivalina, Shishmaref and Newtok 
must be relocated within the next 10 years due to the severity 
of the damage in those villages. The cost of relocating these 
villages ranges from $100 million to $400 million.
    Federal, State and local entities share responsibility for 
protecting these areas from flooding and erosion. The U.S. Army 
Corps of Engineers is responsible for planning and constructing 
stream bank and shoreline erosion protection and flood control 
structures. Most recently, they have supplied Kivalina with 
super sacs to protect their shoreline during large storms. The 
Army Corps has also built an erosion mitigation wall along the 
shore in Shishmaref. Other Federal agencies such as the 
Department of Transportation and Housing and Urban Development 
have the responsibility to protect certain infrastructure from 
flooding and erosion.
    The State Division of Emergency Services responds to State 
disaster declarations when communities require assistance. 
Local governments such as the North Slope Borough have also 
funded erosion and flood protection projects. Alaska Native 
villages have traditionally faced difficulties qualifying for 
assistance under some Federal programs because of the cost/
benefit analysis. The cost of construction in remote Alaska 
villages is very high, making it more difficult for these areas 
to meet the Corps' cost/benefit requirements.
    The GAO report offers several alternatives for Congress to 
consider when responding to the needs of these villages.
    1. Expand the Role of the Denali Commission by directing 
that Federal funding for flood and erosion projects go through 
the commission. The commission could set priorities and 
establish programs for flood and erosion projects that would 
otherwise not qualify for funding under the Corps. Additional 
funding for the Denali Commission may be required for this 
alternative. The Denali Commission has been hesitant to take on 
this role for fear that it would stretch their funds too thin, 
making it difficult to respond to other needs in rural Alaska 
such as health clinics.
    2. Direct the Corps to include social and environmental 
factors in their cost/benefit analysis for flooding and erosion 
projects in Alaska Native villages, including subsistence 
living. This alternative could have an impact on the amount of 
fund and resources that the Corps has available for these 
projects, depending on the number of villages that may qualify 
for a study or project under this alternative.
    3. Waive the Federal cost-sharing requirement for flooding 
and erosion projects in Alaska native villages. This is done in 
some cases already, but not all. In cases where cost sharing is 
not exempt, it is usually 50-50.
    4. Authorize the bundling of funds from various agencies. 
This would reduce administrative costs by consolidating 
administrative functions.
    All the witnesses discussed the problems of erosion in 
Alaska, as well as actions currently being taken to curtail the 
effects of erosion. All suggested possible solutions for the 
future.
6. Post-Catastrophic Crisis: Addressing the Dramatic Need and Scant 
        Availability of Mental Health Care in the Gulf Coast, Oct. 31, 
        2007. (Printed, 176 pp. S. Hrg. 110-481)
    Witnesses: Ms. Kathryn Power, M.Ed., Director, Center for 
Mental Health Services, Substance Abuse and Mental Health 
Services; Dr. Anthony Speier, Director, Disaster Mental Health 
Operations, Louisiana Office of Mental Health; Dr. Jan 
Kasofsky, Executive Director, Capital Area Human Services 
District; Dr. Kevin U. Stephens, M.D., J.D., Director, New 
Orleans Health Department; Dr. Ronald Kessler, Professor of 
Health Care Policy, Harvard Medical School; Dr. Howard Osofsky, 
M.D., Ph.D., Chairman, Department of Psychiatry, LSU Health 
Sciences Center; Dr. Mark Townsend, M.D., Director of 
Psychiatry, Medical Center of Louisiana at New Orleans.
    The purpose of this hearing was to examine the ongoing 
mental health crisis in the Gulf Coast region. As communities 
struggle to recover, survivors continue to suffer with mental 
health problems ranging from slight depression to suicidal 
thoughts. In the time since Hurricanes Katrina and Rita, mental 
illness rates have steadily increased as the long-term 
realities of the recovery become part of everyday life for 
survivors. The traumatic events of Hurricane Katrina--loss of 
homes, jobs, death of loved ones, separating of families--took 
a heavy toll on survivors, resulting in Post-Traumatic Stress 
Disorder (PTSD), nightmares, and other immediate symptoms of 
distress. Furthermore, the frustratingly slow pace of recovery 
combined with inadequate mental health resources has resulted 
in a growing, unparalleled public mental health crisis among 
the survivors. This lack of mental health infrastructure has 
emerged as among the most critical issues facing the recovery, 
rebuilding, and restoration of lives. Harvard professor of 
health care policy Dr. Ronald Kessler recently told the 
Washington Post, ``It's really stunning in juxtaposition to . . 
. other disasters, or after people have been raped or mugged.'' 
Typically, ``people have a lot of trouble the first night and 
the first month afterward. Then you see a lot of improvement. 
However, with the rebuilding process in New Orleans going 
slowly, residents are in this stage of where there are a lot of 
people just kind of giving up.''
    The first panel was Ms. Kathryn Power who discussed studies 
Substance Abuse and Mental Health Services Administration 
(SAMHSA) has undertaken to document the extent and severity of 
mental health illness in the Gulf Coast, as well as the steps 
SAMHSA has taken to improve the situation. She also discussed 
funding, legal, and regulatory obstacles that have prevented 
the mental health needs of survivors from being met.
    Witnesses on the second panel discussed problems from the 
State and local perspective. Dr. Anthony Speier discussed 
obstacles he encountered with funding and related challenges. 
Dr. Jan Kasofsky highlighted the impact of personnel shortages 
on the quality of mental health care in the affected region. 
She also discussed the ways in which her organization has 
struggled to meet mental health challenges head-on. Last, Dr. 
Kevin Stephens discussed the overall mental health situation in 
Louisiana, including the lack of facilities, beds, and 
physicians. He also discussed the emotional impact of the 
hurricanes on first responders.
    The last panel addressed the mental impact of the 
hurricanes on survivors from a provider perspective. Each of 
the witnesses on this panel had studied the effect of 
catastrophes on mental health. Dr. Ronald Kessler discussed the 
work of the Hurricane Katrina Advisory Group and shared his 
findings. He also addressed the issue of how this catastrophe 
differs from other catastrophes of similar force. Dr. Howard 
Osofsky discussed the overall lack of resources and its impact 
on survivors and on children in particular. He shared the 
difficulty he had in navigating the Federal system, and 
discussed how the lack of funding impacts recovery in the short 
and long term. Last, Dr. Mark Townsend addressed the ability of 
the existing medical infrastructure and personnel to meet the 
mental health needs of hurricane survivors. He gave his 
perspective as a practitioner and administrator of a mental 
health facility.
7. Host Communities: Analyzing the Role and Needs of Communities That 
        Take in Disaster Evacuees in the Wake of Major Disasters and 
        Catastrophes, Dec. 3, 2007. Field Hearing in Baton Rouge, 
        Louisiana. (Printed, 104 pp. S. Hrg. 110-487.)
    Witnesses: Mr. Melvin ``Kip'' Holden, Mayor-President, City 
of Baton Rouge, Louisiana; Mr. Randy Roach, Mayor, Lake 
Charles, Louisiana; Mayson Foster, Mayor, City of Hammond, 
Louisiana; Ms. Mary Hawkins Butler, Mayor, City of Madison, 
Mississippi; Mr. Sid Hebert, Sheriff, Iberia Parish, Louisiana; 
Mr. Robert Eckels, County Judge, Harris County, Texas; Mr. 
Raymond Jetson, Chief Executive Officer, Louisiana Family 
Recovery Corps; Ms. Kim Boyle, Chair, Louisiana Recovery 
Authority Health Care Committee; Mr. Greg Davis, Commissioner, 
Cajundome.
    This hearing focused on host communities that received mass 
influxes of evacuees fleeing Hurricanes Katrina and Rita, and 
examined how Congress could provide adequate assistance to meet 
these communities' needs. Cities, localities, and States who 
accept large numbers of evacuees face short-term and long-term 
challenges, and the Subcommittee explored the toll that a host 
community bears after a catastrophic event.
    The first panel was mayors who discussed how their cities, 
parishes and towns were impacted by the large number of 
Hurricanes Katrina and Rita evacuees.
    The second panel consisted of witnesses from organizations 
and groups that provided services to evacuees and helped 
transition evacuees into their new communities.
8. Is Housing Too Much to Hope For?: FEMA's Disaster Housing Strategy, 
        Mar. 4, 2008 (Printed, 76 pp. S. Hrg. 110-681)
    A joint hearing was held with the Ad Hoc Subcommittee on 
Disaster Recovery and the Ad Hoc Subcommittee on State, Local, 
and Private Sector Preparedness and Integration.
    Witnesses: Admiral Harvey E. Johnson, Jr., Deputy 
Administrator, Federal Emergency Management Agency (FEMA), U.S. 
Department of Homeland Security (DHS); Dr. Howard Frumkin, 
Director, National Center for Environmental Health Agency for 
Toxic Substances and Diseases, Center for Disease Control 
(CDC); Mr. Milan Ozdinec, Deputy Assistant Secretary, Public 
Housing and Voucher Programs, U.S. Department of Housing and 
Urban Development (HUD).
    This hearing examined FEMA's progress towards the 
completion of the National Disaster Housing Strategy, which was 
required by P.L. 109-295, the Post Katrina Emergency Management 
and Reform Act (PKEMRA). The hearing looked at the strategy 
itself, the Disaster Housing Assistance Program's (DHAP) 
transition progress, the formaldehyde testing and evaluation of 
FEMA temporary housing units, and other post-disaster housing 
options.
    In panel one Admiral Harvey Johnson addressed FEMA's 
overarching plan to provide emergency and long-term recovery 
housing to victims of natural and man-made disasters, 
particularly the timeframe for resolving the question of travel 
trailer use, as well as how this and other issues have delayed 
production of the National Disaster Housing Strategy. Second, 
Mr. Howard Frumkin discussed CDC's collaboration with FEMA to 
complete the formaldehyde testing of 519 travel trailers, park 
models, and mobile homes, as well as the timeframe for applying 
the findings beyond the initial test cases. Third, Mr. Milan 
Ozdinec addressed HUD's involvement in providing disaster 
related housing, including the progress of the current 
activities, HUD's future roles and responsibilities in disaster 
housing, and HUD's involvement in the development and 
implementation of the National Disaster Housing Strategy.
9. Major Disaster Recovery: Assessing FEMA's Performance Since Katrina, 
        July 17, 2008. (Printed, 104 pp. S. Hrg. 110-704.)
    Witnesses: Major General Tod Bunting, Kansas Adjutant 
General, Director, Kansas Emergency Management and Homeland 
Security; Mr. Stephen Sellers, Deputy Director, Regional 
Operations Division, California Governor's Office of Emergency 
Services; Mr. David Maxwell, Director, Arkansas Department of 
Emergency Management; Mr. James Bassham, Director, Tennessee 
Emergency Management Agency; Admiral Harvey E. Johnson, Jr., 
Deputy Administrator, Federal Emergency Management Agency 
(FEMA), U.S. Department of Homeland Security (DHS)
    The objective of this hearing was to get a direct post-
disaster assessment of FEMA's efforts in key areas of post 
disaster operations, ranging from their initial response to the 
recovery activities that are in some cases still under way. We 
heard from the emergency managers who handled the State 
response for the following disasters: (1) the May 4, 2007 F-5 
tornado in Greensburg, Kansas; (2) the October 2007 California 
wildfires; (3) the February 5, 2008 tornadoes in Arkansas; and 
(4) the February 5, 2008 tornadoes in Tennessee. These were 
some of the largest disasters to have occurred in the United 
States since Hurricane Katrina. Each storm required a 
significant Federal response as a result of the States being 
overwhelmed.
    The hearing highlighted FEMA's progress or lack of progress 
with respect to the initial recovery activities. We also heard 
about any new and innovative recovery approaches taken by the 
impacted States and FEMA, including ideas for further 
improvement in Federal-State response to disasters.
    Witnesses on the first panel analyzed FEMA's performance 
during the response and recovery from the State and local 
perspective. These emergency managers highlighted three areas 
where they thought FEMA's performance and collaboration was 
particularly successful and three areas FEMA's efforts were 
weak. They highlighted FEMA's performance with regard to 
coordination and support, disaster housing assistance, and the 
Public Assistance Program which replaces damaged public 
infrastructure. Included in each testimony were detailed damage 
assessments, numbers of evacuees, and dollar figures for the 
declared disasters. The witnesses described unique challenges 
between their office and FEMA with regard to coordination and 
communication between the agency throughout the process.
    Major General Bunting discussed the experiences of the EF-5 
tornado that hit Kansas on May 4, 2007. This severe storm wiped 
out the city of Greensburg so his testimony focused on FEMA's 
recovery efforts. Mr. Stephen Sellers highlighted the October 
2007 California wildfires and the evacuation of nearly a half 
million people. He also discussed the lengthy waiting period 
for FEMA mobile homes. Mr. David Maxwell addressed the February 
5, 2007 tornado in Arkansas and the extensive damage. He 
focused on FEMA's recovery effort on the 500 homes that were 
destroyed and the 938 families that were displaced nationwide. 
Last, Mr. James Bassham discussed the February 5, 2007 
tornadoes in Tennessee resulting in 33 deaths.
    The second panel was Admiral Johnson of FEMA. He discussed 
specific challenges faced during recently declared disasters 
and unique improvements the agency has made since Hurricane 
Katrina. He also discussed the challenges that lie ahead for 
FEMA.
10. Planning for Post-Catastrophe Housing Needs: Has FEMA Developed an 
        Effective Strategy for Housing Large Numbers of Citizens 
        Displaced by Disaster? July 30, 2008. (Printed, 76 pp. S. Hrg. 
        110-749)
    Witnesses: Admiral Harvey E. Johnson, Jr., Deputy 
Administrator, Federal Emergency Management Agency (FEMA), U.S. 
Department of Homeland Security (DHS); Mr. David Garratt, 
Acting Director of Recovery Efforts, Federal Emergency 
Management Agency (FEMA), U.S. Department of Homeland Security 
(DHS); Mr. Jan Opper, Associate Deputy Assistant Secretary for 
Disaster Policy and Management, Department of Housing and Urban 
Development (HUD).
    The objective of this hearing was to determine whether 
FEMA's National Disaster Housing Strategy complies with the 
legal requirements imposed by the Post-Katrina Emergency Reform 
Act of 2006 and to answer the question in the hearing's title, 
which is whether the strategy is an effective post-catastrophic 
disaster housing plan.
    We also considered whether the Hurricane Pam simulation in 
2004 led to efforts to develop a catastrophic disaster housing 
strategy. Second, we inquired as to whether such a strategy was 
in place when Hurricanes Katrina and Rita struck in 2005, and, 
if not, what the consequences did the absence of such a 
strategy have. Third, if no catastrophic disaster housing 
strategy was in place when the 2005 hurricanes struck, we asked 
whether an effort was made to develop and implement such a 
strategy in the immediate aftermath of the hurricanes.
    Admiral Johnson made up panel one and he discussed whether 
FEMA and other agencies have developed a strategy that would 
successfully meet housing needs following a disaster that 
displaces large numbers of people.
    The second panel discussed the drafting and editing of the 
strategy. Mr. Garratt has been identified as the key FEMA 
housing official responsible for drafting the strategy. Mr. 
Opper has been produced by HUD as the key official for that 
department's editing and contribution to the strategy.
    Mr. Garratt was questioned on missing information from the 
strategy including seven programs and planning descriptions 
legally required by PKEMRA. He was also questioned on detailed 
funding proposals called for in PKEMRA and by Senator Landrieu 
at the March 4, 2008 SDR hearing. Mr. Garratt was asked to 
discuss how the strategy's emphasis on individual, State and 
local responsibility workable in catastrophic disasters which 
overwhelm their capacities severely enough to require Federal 
leadership.
    Mr. Opper was questioned on how the strategy addresses and 
plans for HUD programs such as the Disaster Housing Assistance 
Program and affordable housing for low income citizens. Both 
were asked questions regarding timing and preparation of the 
strategy.
11. Lessons Learned: Ensuring the Delivery of Donated Goods to 
        Survivors of Catastrophes, July 31, 2008. Joint hearing with 
        House Committee on Homeland Security Subcommittee on Emergency 
        Communications, Preparations and Response. (Printed, 86 pp. 
        Serial No. 110-134)
    Witnesses: Mr. Eric Smith, Assistant Administrator for 
Logistics Management, Federal Emergency Management Agency 
(FEMA), U.S. Department of Homeland Security (DHS); Mr. Carlos 
Castillo, Assistant Administrator for Disaster Assistance, 
Federal Emergency Management Agency (FEMA), U.S. Department of 
Homeland Security (DHS); Mr. Barney Brasseux, Deputy 
Commissioner of Federal Acquisition Service, Federal Emergency 
Management Agency (FEMA), U.S. Department of Homeland Security 
(DHS); Mr. Paul Rainwater, Executive Director, Louisiana 
Recovery Authority; Mr. Bill Stallworth, Executive Director, 
East Biloxi Coordination and Relief Center; Ms. Valerie Keller, 
Chief Executive Officer, The Acadiana Outreach Center; Mr. 
Ollie Davidson, Member of Donations Management Committee, 
National Voluntary Organizations Active in Disaster
    The purpose of this hearing was to consider testimony from 
FEMA, State officials, and nonprofit relief organizations 
involved in the distribution of donated goods to disaster 
victims. CNN reported on June 11, 2008, that FEMA had 
transferred approximately $18.5 million worth of goods 
originally intended for victims of Hurricanes Katrina and Rita 
to other Federal agencies and several States outside the 
hurricane-affected region. This happened after FEMA classified 
the supplies as ``surplus'' and turned them over to U.S. 
General Services Administration (GSA) for re-distribution 
according to the Federal Government's process for disposition 
of excess property.
    A significant number of hurricane victims along the Gulf 
Coast have an ongoing need for cookware, bedding, cleaning 
supplies, and other household items of the type that were given 
away. After they were classified as surplus, GSA contacted 
Louisiana's State Agency for Surplus Property, which declined 
the supplies. They were subsequently re-distributed. Upon 
learning what had happened, the Louisiana Recovery Authority 
contacted FEMA to express its desire for the goods on behalf of 
nonprofits operating in the State. Many of these supplies have 
been voluntarily re-directed to nonprofits in Louisiana and 
Mississippi since then.
    This hearing examined breakdowns that occurred in the 
communications system and supply chain at the Federal and State 
levels, as well as the method of interaction between Federal, 
State, and voluntary agencies involved in recovery. We heard 
from Federal agencies about the supplies they offered to the 
States, and how they went about informing the States that 
supplies were available to disaster victims in the wake of the 
storms. We also heard from witnesses representing State 
recovery agencies and nonprofit organizations about their roles 
in the process and the impact these delays in aid delivery have 
had on disaster victims. Last, we examined the procedure by 
which FEMA goes about offering and delivering these supplies to 
States in need.
    FEMA witnesses on the first panel were respectively 
responsible for managing and distributing donated goods, 
overseeing FEMA assistance to disaster victims, and disposing 
of surplus Federal property.
    Witnesses on the second panel described conditions on the 
ground for disaster victims and highlighted their efforts to 
gain access to these supplies.
12. After Action: A Review of the Combined Federal, State, and Local 
        Activities to Respond and Recover from Hurricanes Gustav and 
        Ike, Sept. 23, 2008. (Printed, 153 pp. S. Hrg. 110-827)
    Witnesses: Mr. Reggie Dupre, Jr., Louisiana State Senate 
District 20; Ms. Lyda Ann Thomas, Mayor of Galveston, Texas; 
Mr. Cedric Glover, Mayor of Shreveport, Louisiana; Mr. Bill 
White, Mayor of Houston, Texas; Lieutenant Governor Mitch 
Landrieu, Louisiana Lieutenant Governor; Lieutenant Governor 
David Dewhurst, Texas Lieutenant Governor; Admiral Harvey E. 
Johnson, Jr., Deputy Administrator, Federal Emergency 
Management Agency (FEMA), U.S. Department of Homeland Security 
(DHS); Chief Ed Hecker, Chief of Engineers and Commanding 
General, Homeland Security Division, U.S. Army Corps of 
Engineers
    The objective of this hearing was to assess the joint 
response and recovery efforts to Hurricanes Gustav and Ike. We 
heard from FEMA, the Army Corps of Engineers, and State and 
local officials about their efforts before and after these 
storms made landfall. The hearing evaluated the effectiveness 
of the Federal programs that were used, coordination between 
Federal, State, and local officials, and the impact of the 
storms on the lives of the citizens who lived through them and 
their aftermath. We learned about the areas where government 
was effective as well as those where it fell short.
    Witnesses on the first panel analyzed Federal performance 
during the response and recovery phases from the local 
perspective. They were asked to highlight three areas where 
they thought FEMA and the Corps' performance and collaboration 
was particularly successful and three areas where those efforts 
were relatively weak. Senator Dupre represented Lafourche and 
Terrebonne Parishes in Louisiana, where Hurricane Gustav made 
landfall and where Hurricane Ike's storm surge flooded tens of 
thousands of homes. Mayors Thomas and Mayor White discussed the 
damage their communities experienced from Hurricane Ike and the 
response measures undertaken to mitigate loss of life and 
property. Shreveport opened several shelters for Hurricane 
Gustav evacuees from Louisiana and Hurricane Ike evacuees from 
Louisiana and Texas. Mayor Glover spoke on behalf of host 
communities.
    Witnesses on the second panel analyzed FEMA and the Corps' 
performance during the response and recovery from the State 
perspective. They were also asked to highlight three successes 
and three failures during the response and recovery phases. 
Particular attention was devoted to intergovernmental 
coordination and communication throughout these emergencies.
    The third panel consisted of Admiral Johnson and Chief Ed 
Hecker. Admiral Johnson discussed specific challenges faced 
during Hurricanes Gustav and Ike, ongoing performance 
improvements, and the challenges that lie ahead for FEMA. Chief 
Ed Hecker addressed the role of the Corps in flood protection 
and emergency response, including construction and maintenance 
of levees and infrastructure, generator supply during power 
outages, and the Blue Roof Program which sends Corps-contracted 
work crews to disaster victims' homes to repair roof damage.
13. Assessing the Effectiveness of Agricultural Disaster Assistance 
        Programs in the Wake of the 2008 Midwest Floods, Hurricane 
        Gustav, and Hurricane Ike, Sept. 24, 2008. Joint hearing with 
        the Senate Agriculture Committee. (Printed, 149 pp. S. Hrg. 
        110-798)
    Witnesses: Mr. Chuck Conner, Deputy Secretary, U.S. 
Department of Agriculture; Dr. Mike Strain, Louisiana 
Agriculture Commissioner, Louisiana Department of Agriculture; 
Ms. Barb Prather, Executive Director, Northeast Iowa Food Bank; 
Mr. Lyle Asell, Special Assistant to the Director on 
Agriculture, Iowa Department of Natural Resources, Mr. Dickie 
Ellender, Southwest Louisiana Sugarcane Farmer; Ms. Natalie 
Jayroe, Director, Second Harvest Food Bank; Mr. John Harkwick, 
Northeast Louisiana Cotton Farmer
    This joint hearing's purpose was to hear testimony from the 
U.S. Department of Agriculture (USDA), and State and local 
emergency managers to assess the effectiveness of the joint 
response to and recovery from the 2008 Midwest floods, and 
Hurricanes Gustav and Ike. The goal was to assess the 
activities USDA and its State and local partners took prior to 
and after landfall of these storms. We analyzed the 
effectiveness of the Federal programs that were used, the 
coordination between Federal, State, and local officials, and 
the impact on the lives of the citizens who lived through the 
storms and their aftermath. It is estimated that Hurricane 
Gustav has caused an estimated $700 million in lost revenue 
damage to Louisiana's agriculture farm gate value. Louisiana's 
fisheries suffered an estimated $100 million in lost revenue.
    The USDA has five permanent disaster programs to provide a 
payment to farmers when an agricultural natural disaster is 
declared by the Secretary of Agriculture: The Livestock 
Indemnity Program; the Livestock Forage Disaster Program; 
Emergency Assistance for Livestock, Honey Bees and Farm Raised 
Fish; the Tree Assistance Program and the Supplemental Revenue 
Assistance Payments (SURE) program. These five programs and 
crop insurance are the only two mechanisms farmers can rely on 
to help them. In Louisiana, most farmers only purchase 
catastrophic insurance, which is the lowest coverage of crop 
insurance provided. This is because crop insurance is based on 
historical losses and unfortunately, Louisiana has a high loss 
record which makes premiums high and out of economically 
justified reach for Louisiana farmers. For instance, it is 
estimated that to cover soybeans at the same rate, it is 4 
times as expensive in Louisiana than in Iowa. It is double the 
cost to purchase crop insurance at the same rate for cotton and 
corn as well.
    The recently enacted Farm Bill included for the first time 
in over 25 years a permanent agriculture disaster program to 
help move Congress away from ad-hoc disaster packages. The SURE 
program ties a farmer's disaster payment to the level of crop 
insurance a farmer purchased. This is to provide an incentive 
for farmers to purchase high levels of insurance. However, in 
Louisiana, with most of our farmers purchasing the lowest level 
of insurance, the SURE program will be of limited or no help. 
The SURE payment cannot exceed $100,000.
    Panel one discussed USDA's response to these disasters 
through nutrition programs, conservation programs, and 
commodity programs, including crop insurance and credit 
programs. The witnesses gave a review of USDA's actions and 
performance in disaster response and recovery. Panel one gave 
information about damage assessments and dollar figures for the 
declared disasters.
    Panel two discussed the experiences with the USDA's 
disaster relief programs including Federal crop insurance, food 
and nutrition services, disaster food stamps, and the disaster 
housing relief. Both panels described challenges regarding 
coordination and communication among Federal, State, and local 
agencies throughout the process.

    II. Legislation referred to the Ad Hoc Subcommittee on Disaster 
                          Recovery for review

    S. 87: A bill to permit the cancellation of certain loans 
under the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act. Introduced on 1/4/2007 by Senator Vitter. This 
bill amends the Community Disaster Loan Act of 2005 to permit 
the cancellation of certain loans under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act. (Makes this Act 
effective as if enacted as part of the Community Disaster Loan 
Act of 2005.)
    S. 253: Disaster Loan Fairness Act of 2007. Introduced on 
1/10/2007 by Senator Landrieu. This bill will permit the 
cancellation of certain loans under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act, and for other 
purposes.
    S. 664: Local Government Disaster Relief Act of 2007. 
Introduced on 2/16/2007 by Senator Landrieu. This bill will 
provide adequate funding for local governments harmed by 
Hurricanes Katrina or Rita of 2005.
    S. 925: A bill to provide for funding assistance under 
section 406 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5172) to a State or local 
government for the acquisition of real property for the purpose 
of the replacement of certain public facilities based on 
reasonable reliance of cost estimates provided by the Federal 
Emergency Management Agency. Introduced on 3/2/2007 by Senator 
Landrieu.
    S. 2006: Rate Payer Recovery Act of 2007. Introduced on 8/
3/2007 by Senator Landrieu. This bill is designated to provide 
for disaster assistance for power transmission and distribution 
facilities, and for other purposes.
    S. 2335: Case Management Services Improvement Act of 2007. 
Introduced on 11/13/2007 by Senator Landrieu. This bill will 
amend the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act to provide adequate case management services.
    S. 2789: A bill to amend the Emergency Supplemental 
Appropriations Act for Defense, the Global War on Terror, and 
Hurricane Recovery, 2006 to authorize the Federal Emergency 
Management Agency to provide additional assistance to State and 
local governments for utility costs resulting from the 
provision of temporary housing units to evacuees from Hurricane 
Katrina and other hurricanes. Introduced on 3/31/2008 by 
Senator Landrieu.
    S. 3176: Disaster Recovery Substance Abuse Mental Health 
Treatment Act of 2008--Amends the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act to authorize the President 
to provide mental health and substance abuse services to 
individuals affected by a major disaster to relieve or prevent 
mental health or substance abuse problems caused or aggravated 
by that disaster or its aftermath. Introduced on 6/23/2008 by 
Senator Landrieu.