Congressional Record EPLURIBUS UNUM United States 115th of America PROCEEDINGS AND DEBATES OF THE CONGRESS, SECOND SESSION Vol. 164 WASHINGTON, TUESDAY, JULY 10, 2018 No. 115 House of Representatives The House met at noon and was States to have their backs. But right middle of the night and sexually as- called to order by the Speaker pro tem- now we are not doing enough to protect sault her. So she reported this to the pore (Mr. FRANCIS ROONEY of Florida). them while they are overseas. This will Peace Corps, and they assured her that change with the Sam Farr and Nick these men were just joking. No sur- f Castle Peace Corps Reform Act spon- prise, the harassment continued. DESIGNATION OF SPEAKER PRO sored by myself and JOE KENNEDY of Finally, she made the decision to re- TEMPORE Massachusetts. turn to America. She could no longer The SPEAKER pro tempore laid be- Many returning volunteers, like Sara bear the constant hostile environment. fore the House the following commu- Thompson, struggle to receive the med- The Peace Corps recorded her reason nication from the Speaker: ical care they need while they are in a for leaving as difficulty in adapting to foreign country. Sara’s troubles began the culture. In other words, the sexual WASHINGTON, DC, July 10, 2018. when the Peace Corps prescribed a assaults were her fault. I hereby appoint the Honorable FRANCIS medication called mefloquine to pro- Are you kidding me? ROONEY to act as Speaker pro tempore on tect her from malaria. But during her Sexual assault and harassment this day. service in Burkina Faso, she began to should never be excused as joking and PAULD. RYAN, have horrific nightmares and struggled should never be brushed off as a cul- Speaker of the House of Representatives. with her mental health. When she tural norm. f turned to the Peace Corps for help, the Mr. Speaker, as a former judge and medical officer excused her symptoms co-chairman of the Victims’ Rights MORNING-HOUR DEBATE by simply saying: You are not adjust- Caucus, I would point out that sexual The SPEAKER pro tempore. Pursu- ing well. assault is never the fault of the victim. ant to the order of the House of Janu- The nausea and nightmares contin- This bill creates new trainings and ary 8, 2018, the Chair will now recog- ued. With no support from the Peace safeguards to protect volunteers from nize Members from lists submitted by Corps, she started to research the prob- sexual assault and harassment. It also the majority and minority leaders for lems. It was then she realized the ma- makes the Office of Victim Advocacy a morning-hour debate. laria medicine the Peace Corps had permanent establishment. The Chair will alternate recognition given her was making her sick. But Then there is Peace Corps volunteer between the parties. All time shall be today she still deals with these medical Jennifer Mamola. Early one morning, equally allocated between the parties, issues and feels abandoned by our Jennifer was walking with two friends and in no event shall debate continue Peace Corps. to a bus stop. Out of nowhere, a drunk beyond 1:50 p.m. Each Member, other Peace Corps volunteer Nick Castle driver ran into them. One volunteer than the majority and minority leaders died in rural China after an inefficient, was killed. Both of Jennifer’s legs were and the minority whip, shall be limited under-equipped, and unresponsive broken. So she returned home to Amer- to 5 minutes. Peace Corps-led medical team made ica still bedridden and loaded on pain f gross mistakes in treating his illness. medication. She faced an uphill battle The Sam Farr and Nick Castle Peace of endless bureaucracy to receive treat- AMERICA’S PEACE CORPS VOLUN- Corps Reform Act establishes criteria ment and surgeries. After months of TEERS—OUR AMBASSADORS for in-country medical doctors and en- fighting government bureaucrats, she ABROAD sures that they have the resources they was finally granted treatment. The SPEAKER pro tempore. The need to take care of our volunteers. Far too often volunteers fall between Chair recognizes the gentleman from Giving our volunteers the best medical the cracks and are forced to pay exor- Texas (Mr. POE) for 5 minutes. care possible is an absolute necessity bitant medical bills out of pocket until Mr. POE of Texas. Mr. Speaker, when they are serving America. the Department of Labor decides to America’s Peace Corps volunteers are There is more. A brave volunteer told cover their medical situation. So this our angels abroad. They represent the me recently about the daily sexual har- bill would provide medical coverage to very best about America. They give assment she experienced while she returning volunteers while they wait years of their lives to help people they served overseas. In broad daylight, men for the Department of Labor to give have never met in some of the most re- would grope and threaten her as she them the medical benefits they de- mote areas of the world. walked home from school. One after- serve. Often this means putting their own noon at the market, the cashier threat- The changes in this bill will go a long safety at risk, expecting the United ened to break into her house in the way in keeping our volunteers safe. E b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. S U HO Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. with D RO H5993 P B2 H D F . C B K S D lotter on VerDate Sep 11 2014 00:09 Jul 11, 2018 Jkt 079060 PO 00000 Frm 00001 Fmt 4634 Sfmt 0634 E:\CR\FM\A10JY7.000 H10JYPT1 H5994 CONGRESSIONAL RECORD—HOUSE July 10, 2018 The bill provides Peace Corps volun- Pursuant to clause 1, rule I, the Jour- 13. Montenegro teers critical information regarding nal stands approved. 14. Netherlands the country that they are going to 15. Norway f 16. Portugal serve in. It also requires the Peace Corps to provide volunteers with access PLEDGE OF ALLEGIANCE 17. Slovak Republic 18. Slovenia to medical doctors while they are over- The SPEAKER pro tempore. Will the 19. Spain seas. And it makes the Sexual Assault gentlewoman from North Carolina (Ms. 20. Turkey Advisory Council and Office of Victims’ FOXX) come forward and lead the House f Advocacy permanent. It also extends in the Pledge of Allegiance. volunteers’ medical benefits upon their Ms. FOXX led the Pledge of Alle- REUNITE IMMIGRANT FAMILIES return home until their coverage kicks giance as follows: (Mr. KILDEE asked and was given in from the Department of Labor. I pledge allegiance to the Flag of the permission to address the House for 1 Mr. Speaker, we must not continue United States of America, and to the Repub- minute.) to send our volunteers out into the lic for which it stands, one nation under God, Mr. KILDEE. Mr. Speaker, a Federal world without adequate protections indivisible, with liberty and justice for all. court has ordered the Trump adminis- against harm. Give them a qualified f tration to reunite every child under 5 medical doctor, and we must have an years old who is separated from his or effective healthcare system to take NATO: BELLY UP TO THE BAR her family by today. Unfortunately, care of them when they return. Our (Mr. POE of Texas asked and was the Trump administration has no plan government should fight for our Peace given permission to address the House for family reunifications and will fail Corps volunteers, not fight against for 1 minute and to revise and extend to reunite as many as half of those them. his remarks.) children who were taken from their And that is just the way it is. Mr. POE of Texas. Mr. Speaker, this parents. This is completely unaccept- f week President Trump will join our al- able. lies for the important NATO summit. Last week I visited some of those RECESS At the top of this list must be coun- young children, one who looked about 6 The SPEAKER pro tempore. Pursu- tering Russia’s aggression and impe- months old and many who were 3 and 4. ant to clause 12(a) of rule I, the Chair rialism against our allies and the U.S. At the facility I visited, caseworkers declares the House in recess until 2 But to achieve this, everyone must there were calling detention facilities p.m. today. contribute to the cause. Of the 29 na- around the country to locate those par- Accordingly (at 12 o’clock and 6 min- tions within NATO, only 8 members— ents. They had to call the facilities to utes p.m.), the House stood in recess. including the United States—are meet- try to find the parents. Many of them f ing the 2 percent of GDP pledge for de- did. fense spending. But it is clear that the administra- b 1400 For years, there has been a historical tion had no plan other than to separate AFTER RECESS problem of excuses made for non- these kids from their parents as a tac- The recess having expired, the House compliance by some of our NATO al- tic to try to dissuade people who are was called to order by the Speaker pro lies. President Trump is right to blunt- seeking shelter from violence from tempore (Mr. BANKS of Indiana) at 2 ly encourage our friends to meet their coming to the United States. Shame on p.m. obligations to deter Czar Putin. them. Neighbors in Texas ask me: Why does This will be a dark period in our his- f the United States spend more money tory. It is a sad day. PRAYER defending some European countries than the countries do themselves? f The Chaplain, the Reverend Patrick J. Conroy, offered the following prayer: Fair question. RECOGNIZING BETTY WALKER Mr. Speaker, I support NATO, but Merciful God, we give You thanks for (Ms. FOXX asked and was given per- our NATO allies would do well to stop giving us another day. mission to address the House for 1 criticizing the U.S. commitment to Bless the Members of this people’s minute.) NATO and, rather, fully fulfill their House with wisdom and the courage to Ms. FOXX. Mr. Speaker, I rise to rec- commitment to our mutual defense. It address the pressing difficulties of our ognize Betty Walker of Roaring Gap, is time to belly up to the bar and pay time. You know each one personally, North Carolina. This remarkable and their share. through and through, and how they re- talented woman has been the coordi- And that is just the way it is. late with one another. nator for the Alleghany Memorial Hos- Help them to know You. Impel them Mr. Speaker, I include in the RECORD pital Thrift Shop for 15 years. the 29 countries and whether they are by Your spirit to act justly and walk Betty began volunteering at the meeting their 2 percent guideline or humbly with You. May their actions Thrift Shop in 2000 and became coordi- not. and those of our government be nator in 2003. During her time as coor- marked by kindness and decency, espe- NATOMEMBERSMEETING2%GUIDELINE dinator, Betty has expanded and ren- cially toward those who are most vul- 1. United States ovated the Thrift Shop in addition to nerable among us. 2. United Kingdom managing its volunteers. Inspire all of our citizens, as well, to 3. Greece The Alleghany Memorial Hospital 4. Estonia look first to their blessings, and then Thrift Shop opened in 1991 and has 5. Poland charitably, to the work of this people’s 6. Lithuania raised nearly $1 million for Alleghany House. Each Member chooses to serve 7. Latvia Memorial Hospital. Those funds are ex- another day; may each serve with 8. Romania tremely important in this small coun- honor and merit the appreciation of NATOMEMBERSNOTMEETINGTHE2%GUIDELINE ty. those whom they serve. 1. Albania In 2011, Betty and the shop’s volun- May all that is done this day be for 2. Belgium teers received the Governor’s Award Your greater honor and glory. 3. Bulgaria for Volunteer Service, which recognizes Amen. 4. Canada the top 20 volunteers in North Caro- E f 5. Croatia lina. US 6. Czech Republic Betty Walker is an extremely dedi- HO THE JOURNAL 7. Denmark cated volunteer, a role model for us all, ROD with ChTahire hSasP EexAaKmEiRne dp trhoe Jteomurpnoarle .o f Tthhee 891..0 .FG Hreaurnmncgaean ryy aAnllde ghaa nyp iClloaur ntyin is hfoerr tuncoamtem tuon citayll. B2P last day’s proceedings and announces 11. Italy this hardworking citizen one of its DH to the House his approval thereof. 12. Luxembourg own. F C B K S D lotter on VerDate Sep 11 2014 00:09 Jul 11, 2018 Jkt 079060 PO 00000 Frm 00002 Fmt 4634 Sfmt 0634 E:\CR\FM\K10JY7.002 H10JYPT1 July 10, 2018 CONGRESSIONAL RECORD—HOUSE H5995 MAVNI AND COMBATING LEGAL peals, who was nominated to the Su- cated at 6 Doyers Street in New York, IMMIGRATION preme Court in March of 2016. A cele- New York, as the ‘‘Mabel Lee Memorial (Mr. CORREA asked and was given brated judge who had more judicial ex- Post Office’’; permission to address the House for 1 perience under his belt than anyone H.R. 4574, to designate the facility of minute.) ever nominated to the Supreme Court the United States Postal Service lo- Mr. CORREA. Mr. Speaker, today I before, a graduate of Harvard College cated at 108 West Schick Road in rise to pose a simple question: What is and Harvard Law School, Judge Gar- Bloomingdale, Illinois, as the merit-based immigration? Because it land was often described as the most ‘‘Bloomingdale Veterans Memorial would seem that we have a different in- qualified person ever nominated to the Post Office Building’’; terpretation from that of our Presi- Court. H.R. 4646, to designate the facility of dent. But Senator MCCONNELLand the GOP the United States Postal Service lo- in the Senate vowed they would have cated at 1900 Corporate Drive in Bir- Panshu Zhao came to this country le- no hearings, no action, and no vote on mingham, Alabama, as the ‘‘Lance Cor- gally and joined the Army while pur- his nomination because there was an poral Thomas E. Rivers, Jr. Post Office suing a Ph.D. He came to our country election coming up in 9 months and the Building’’; to be an American and to contribute to people should be heard. This was un- H.R. 4685, to designate the facility of the greatness of our Nation just like precedented, but, fair enough, if that is the United States Postal Service lo- other generations before all of us. He is the new standard. cated at 515 Hope Street in Bristol, one of the more than 10,000 legal immi- Now, I have another constituent, Rhode Island, as the ‘‘First Sergeant P. grants offered a chance to become a Brett Kavanaugh of Chevy Chase, who Andrew McKenna Jr. Post Office’’; citizen through service and sacrifice. serves on the exact same court as H.R. 4722, to designate the facility of These legal immigrants enlist in our Judge Garland does and who has been the United States Postal Service lo- Armed Forces with vital skills. They nominated to the Supreme Court only 4 cated at 111 Market Street in have education, they are meritorious, months before a national election. He Saugerties, New York, as the ‘‘Maurice and they are needed. But this adminis- is a graduate of Yale College and Yale D. Hinchey Post Office Building’’; tration has now made going after legal Law School. But the Senate now says H.R. 4840, to designate the facility of immigrants one of its primary goals. that they are going to speed through the United States Postal Service lo- When they threaten to deport doctors hearings and a vote on Judge cated at 567 East Franklin Street in in the Army, the administration is Kavanaugh’s nomination. Oviedo, Florida, as the ‘‘Sergeant First going after legal immigrants. When Why? Is he better qualified? Class Alwyn Crendall Cashe Post Office ICE arrests green card holders over Not even Judge Kavanaugh would say Building’’. minor charges in their distant past, they are going after legal immigrants. that. f Why is it? If a soldier pursuing a Ph.D. does not COMMUNICATION FROM THE We have one-party control of the qualify for merit-based immigration, CLERK OF THE HOUSE House, the Senate, the White House, then who does? and the Supreme Court. This is nothing The SPEAKER pro tempore laid be- f but a power play here in Washington. fore the House the following commu- HONORING STATE They are doing it simply because they nication from the Clerk of the House of REPRESENTATIVE RON LOLLAR can do it, and it is wrong. Representatives: We should have one standard that OFFICEOFTHECLERK, (Mr. KUSTOFF of Tennessee asked governs nominations from both parties. HOUSEOFREPRESENTATIVES, and was given permission to address Washington, DC, July 10, 2018. the House for 1 minute.) f Hon. PAULD. RYAN, Mr. KUSTOFF of Tennessee. Mr. ANNOUNCEMENT BY THE SPEAKER The Speaker, House of Representatives, Speaker, I rise today to honor the life PRO TEMPORE Washington, DC. of my good friend, Tennessee State The SPEAKER pro tempore. Pursu- mDisEsiAoRn MgrRa.n StePdE AinK ECRl:a uPsuer s2u(ahn) to ft oR uthlee IpI eor-f Representative Ron Lollar, who passed ant to clause 4 of rule I, the following the Rules of the U.S. House of Representa- away on July 6, 2018, at the age of 69. enrolled bills were signed by Speaker tives, the Clerk received the following mes- Ron valiantly served his country as a pro tempore MCHENRY on Friday, July sage from the Secretary of the Senate on United States marine in the Vietnam 6, 2018: July 10, 2018, at 12:12 p.m.: war, receiving accolades, including the H.R. 1496, to designate the facility of Appointment: Vietnam Gallantry Cross and the Good the United States Postal Service lo- Commission on Social Impact Partner- Conduct Medal. cated at 3585 South Vermont Avenue in ships. With best wishes, I am Ron also served multiple terms on Los Angeles, California, as the ‘‘Marvin Sincerely, the Shelby County School Board and Gaye Post Office’’; KARENL. HAAS. was a strong advocate for education H.R. 2673, to designate the facility of f and agriculture as a member of the the United States Postal Service lo- Tennessee House of Representatives. cated at 514 Broadway Street in Pekin, RECESS To his wife, Brenda, and their three Illinois, as the ‘‘Lance Corporal Jordan The SPEAKER pro tempore. Pursu- children: I hope you take comfort in S. Bastean Post Office’’; ant to clause 12(a) of rule I, the Chair the memories of Ron and the legacy he H.R. 3183, to designate the facility of declares the House in recess subject to leaves behind. May his lifelong service the United States Postal Service lo- the call of the Chair. to our local community, to Tennessee, cated at 13683 James Madison Highway Accordingly (at 2 o’clock and 11 min- and to the United States never be for- in Palmyra, Virginia, as the ‘‘U.S. utes p.m.), the House stood in recess. gotten. Navy Seaman Dakota Kyle Rigsby Post f We will miss you. Office’’; b 1430 f H.R. 4301, to designate the facility of the United States Postal Service lo- AFTER RECESS SUPREME COURT NOMINEES cated at 201 Tom Hall Street in Fort The recess having expired, the House (Mr. RASKIN asked and was given Mill, South Carolina, as the ‘‘J. Elliot was called to order by the Speaker pro permission to address the House for 1 Williams Post Office Building’’; tempore (Mr. BANKS of Indiana) at 2 E minute.) H.R. 4406, to designate the facility of o’clock and 30 minutes p.m. OUS Mr. RASKIN. Mr. Speaker, I rep- the United States Postal Service lo- f H resent the Eighth Congressional Dis- cated at 99 Macombs Place in New with trict in Maryland, and I want to give York, New York, as the ‘‘Tuskegee Air- ANNOUNCEMENT BY THE SPEAKER OD you a tale of two of my constituents. men Post Office Building’’; PRO TEMPORE R B2P One is Merrick Garland of Bethesda, H.R. 4463, to designate the facility of The SPEAKER pro tempore. Pursu- H the chief judge of the D.C. Court of Ap- the United States Postal Service lo- ant to clause 8 of rule XX, the Chair D F C B K S D lotter on VerDate Sep 11 2014 00:09 Jul 11, 2018 Jkt 079060 PO 00000 Frm 00003 Fmt 4634 Sfmt 0634 E:\CR\FM\K10JY7.005 H10JYPT1 H5996 CONGRESSIONAL RECORD—HOUSE July 10, 2018 will postpone further proceedings The SPEAKER pro tempore. Is there sels, the final rule requirements go today on motions to suspend the rules objection to the request of the gen- into effect on August 23, 2018. on which a recorded vote or the yeas tleman from New York? Industry has been involved and will- and nays are ordered, or votes objected There was no objection. ing to address security concerns, but to under clause 6 of rule XX. Mr. KATKO. Mr. Speaker, I yield my- facilities should not have to bear the The House will resume proceedings self such time as I may consume. burden of implementing a final rule on postponed questions at a later time. Mr. Speaker, to comply with the proposal that has not yet been fully f Maritime Transportation Security Act vetted to understand the impacts of of 2002 and the Security and Account- the requirements. TRANSPORTATION WORKER IDEN- ability for Every Port Act of 2006, the H.R. 5729 requires the Secretary to TIFICATION CREDENTIAL AC- Coast Guard is establishing rules re- submit to Congress the comprehensive COUNTABILITY ACT OF 2018 quiring electronic readers for use at security assessment of the transpor- Mr. KATKO. Mr. Speaker, I move to high-risk vessel facilities. tation security card program, as re- suspend the rules and pass the bill The intent of the rule is to ensure quired in section 1(b) of Public Law (H.R. 5729) to restrict the department that, prior to being granted unescorted 114–278, before implementation of its in which the Coast Guard is operating access to a designated secure area, an final rule. Doing so will provide Con- from implementing any rule requiring individual will have his or her Trans- gress and stakeholders further infor- the use of biometric readers for bio- portation Worker Identification Cre- mation on any deficiencies in the effec- metric transportation security cards dential, or TWIC, authenticated. tiveness of the program. until after submission to Congress of The Coast Guard issued a proposed Mr. Speaker, I reserve the balance of the results of an assessment of the ef- rule to this effect in March 2013. The my time. fectiveness of the transportation secu- proposed rule limited the scope of the Ms. NORTON. Mr. Speaker, I yield rity card program, as amended. TWIC authentication requirements at myself such time as I may consume. The Clerk read the title of the bill. facilities to secure areas that handle Mr. Speaker, I rise in support of H.R. The text of the bill is as follows: certain dangerous cargos in bulk 5729, the Transportation Worker Identi- H.R. 5729 through a vessel-to-facility interface. fication Credential Accountability Act Be it enacted by the Senate and House of Rep- This was consistent with existing of 2018. resentatives of the United States of America in Coast Guard policy. Since 2002, when Congress passed the Congress assembled, Industry commented on the proposed Maritime Transportation Security Act, SECTION 1. SHORT TITLE. rule, and the Coast Guard also held problems have beset the Transpor- This Act may be cited as the ‘‘Transpor- four public meetings across the coun- tation Worker Identification Creden- tation Worker Identification Credential Ac- try and worked with the Transpor- tial card, or TWIC card, as it is called, countability Act of 2018’’. tation Security Administration to con- a maritime security credential. SEC. 2. RESTRICTION ON IMPLEMENTATION OF duct a pilot program. Since its inception, concerns and TRANSPORTATION WORKER IDENTI- FICATION CREDENTIAL BIOMETRIC The Coast Guard issued its final rule questions about the reliability of back- READER RULE. in August of 2016, with an implementa- ground check information, the efficacy The department in which the Coast Guard tion date of August 23, 2018. The service of fraud detection capabilities, and the is operating may not implement the rule en- noted that the final rule made a num- relatively high cost of the credential titled ‘‘Transportation Worker Identification ber of changes from the proposed rule, have been persistent shortfalls that the Credential (TWIC)–Reader Requirements’’ (81 including flexibility with regard to Department of Homeland Security has Fed. Reg. 57651), and may not propose or issue a notice of proposed rulemaking for purchase, installation, and use of elec- never gotten right. any revision to such rule except to extend its tronic readers; clarifying that the rule As explained by the bill’s sponsor, effective date, or for any other rule requiring only affects risk group A vessels and the Coast Guard issued a flawed final the use of biometric readers for biometric facilities; and eliminating the distinc- rule in 2016 for the use of TWIC card bi- transportation security cards under section tion between risk group B and C for ometric readers at high-risk maritime 70105(k)(3) of title 46, United States Code, be- both vessels and facilities. facilities. The Coast Guard issued this fore the end of the 60-day period beginning However, industry was surprised by rule despite Congress directing the De- on the date of the submission under para- the expanded scope of the final rule partment of Homeland Security in 2016 graph (5) of section 1(b) of Public Law 114–278 (130 Stat. 1411 to 1412) of the results of the as- where facility areas subject to the to conduct a ‘‘top-to-bottom’’ review of sessment required by that section. TWIC reader requirement went beyond the effectiveness of the entire TWIC SEC. 3. PROGRESS UPDATES. what was included in the proposed rule program. Not later than 30 days after the date of the and regulatory analysis accompanying If there was ever an example of the enactment of this Act, and every 90 days that rule. left hand not knowing what the right thereafter until the submission under para- The Coast Guard has acknowledged hand was doing, the issuance of this graph (5) of section 1(b) of Public Law 114–278 the discrepancy between the proposed reader rule was it. Considering the his- (130 Stat. 1411 et seq.) of the results of the as- and final rules. To date, the service has tory and pattern of mismanagement of sessment required by that section, the Sec- not been able to identify any security TWIC credentials, I agree with the pur- retary of Homeland Security shall report to the Committee on Homeland Security and benefits to the expanded scope of the pose of this legislation. It makes pru- the Committee on Transportation and Infra- final rule or definitively state how it dent sense to put a hold on any new structure of the House of Representatives will address industry concerns. TWIC rulemaking until such time that and the Committee on Commerce, Science, The Office of Management and Budg- the Department of Homeland Security and Transportation of the Senate regarding et recently completed its review of a completes its effectiveness review as the implementation of that section. proposed rule to delay the implementa- required by Congress. The SPEAKER pro tempore. Pursu- tion date of the TWIC reader require- Ensuring the security of high-risk ant to the rule, the gentleman from ments. The text of the proposed rule maritime facilities remains a vitally New York (Mr. KATKO) and the gentle- was released on June 22, 2018, 2 months important homeland security priority. woman from the District of Columbia prior to the implementation date. If the TWIC card is not up to the task, (Ms. NORTON) each will control 20 min- Unfortunately, the rule proposed it is best for Congress to understand utes. only partially addresses industry con- why and how the deficiencies might The Chair recognizes the gentleman cerns. It delays implementation of the best be resolved. from New York. requirements until August 23, 2021, for On the other hand, if it is determined E GENERALLEAVE two categories of facilities that handle that the best course of action is to US Mr. KATKO. Mr. Speaker, I ask certain dangerous cargo in bulk but do abandon the TWIC card, we need to O H unanimous consent that all Members not transfer it. However, for facilities evaluate alternative security measures with may have 5 legislative days in which to and vessels that handle certain dan- that might fill the gap immediately. OD revise and extend their remarks and in- gerous cargo in bulk and transfer that I urge my colleagues to join me and R B2P clude extraneous material on H.R. 5729, cargo to or from a vessel or from facili- support this noncontroversial legisla- H as amended. ties that receive large passenger ves- tion. D F C B K S D lotter on VerDate Sep 11 2014 00:09 Jul 11, 2018 Jkt 079060 PO 00000 Frm 00004 Fmt 4634 Sfmt 0634 E:\CR\FM\K10JY7.008 H10JYPT1 July 10, 2018 CONGRESSIONAL RECORD—HOUSE H5997 Mr. Speaker, I yield back the balance (7) the impact on the availability of re- seen the number of public companies of my time. search coverage for small issuers due to— fall to around 5,700. These statistics are Mr. KATKO. Mr. Speaker, I appre- (A) investment adviser concentration and concerning because they are similar to ciate the comments of my colleague consolidation, including any potential im- the data we saw in the 1980s when our pacts of fund-size on demand for investment from the District of Columbia. economy was less than half of its cur- research of small issuers; H.R. 5729 is a very straightforward (B) broker and dealer concentration and rent size. bill. It fixes something that needs to be consolidation, including any relationships For a myriad of reasons, the public fixed quickly, and I urge Members to between the size of the firm and allocation of model is no longer viewed as the most support it. resources for investment research into small attractive means of raising capital. In- Mr. Speaker, I yield back the balance issuers; stead, small and emerging growth com- of my time. (C) Securities and Exchange Commission panies are choosing to go public much The SPEAKER pro tempore. The rules; later in their lifecycle or, frankly, question is on the motion offered by (D) registered national securities associa- choosing not to go public at all. the gentleman from New York (Mr. tion rules; We must work to change that trajec- (E) State and Federal liability concerns; KATKO) that the House suspend the (F) the settlement agreements referenced tory, in my mind. In speaking to the rules and pass the bill, H.R. 5729, as in Securities and Exchange Commission Liti- New York Economic Club, SEC Chair- amended. gation Release No. 18438 (i.e., the ‘‘Global man Jay Clayton stated: ‘‘Regardless The question was taken; and (two- Research Analyst Settlement’’); and of the cause, the reduction in the num- thirds being in the affirmative) the (G) Directive 2014/65/EU of the European ber of U.S.-listed public companies is a rules were suspended and the bill, as Parliament and of the Council of 15 May 2014 serious issue for our markets and the amended, was passed. on markets in financial instruments and country more generally. To the extent A motion to reconsider was laid on amending Directive 2002/92/EC and Directive companies are eschewing our public the table. 2011/61/EU, as implemented by the European Union (‘‘EU’’) member states (‘‘MiFID II’’). markets, the vast majority of Main f (c) REPORT REQUIRED.—Not later than 180 Street investors will be unable to par- IMPROVING INVESTMENT RE- days after the date of the enactment of this ticipate in their growth. The potential SEARCH FOR SMALL AND Act, the Securities and Exchange Commis- lasting effects of such an outcome to EMERGING ISSUERS ACT sion shall submit to Congress a report that the economy and society are, in two includes— words, not good.’’ Mr. HUIZENGA. Mr. Speaker, I move (1) the results of the study required by sub- That is from SEC Chairman Jay to suspend the rules and pass the bill section (a); and (H.R. 6139) to require the Securities (2) recommendations to increase the de- Clayton. and Exchange Commission to carry out mand for, volume of, and quality of invest- I share Chairman Clayton’s concerns. ment research into small issuers, including We need to ensure that our capital a study to evaluate the issues affecting emerging growth companies and companies markets are open for innovators and the provision of and reliance upon in- considering initial public offerings. job creators, and we must work to vestment research into small issuers. The SPEAKER pro tempore. Pursu- rightsize regulations for smaller com- The Clerk read the title of the bill. The text of the bill is as follows: ant to the rule, the gentleman from panies as well. Michigan (Mr. HUIZENGA) and the gen- One way that Congress worked to lift H.R. 6139 tlewoman from California (Ms. MAXINE burdensome regulations and help small Be it enacted by the Senate and House of Rep- resentatives of the United States of America in WATERS) each will control 20 minutes. companies gain access to these capital Congress assembled, The Chair recognizes the gentleman markets was the bipartisan Jumpstart from Michigan. Our Business Startups Act, commonly SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Improving GENERALLEAVE known as the JOBS Act. Section 105 of Investment Research for Small and Emerg- Mr. HUIZENGA. Mr. Speaker, I ask the JOBS Act changed the ‘‘gun-jump- ing Issuers Act’’. unanimous consent that all Members ing rules’’ to provide an exception from SEC. 2. RESEARCH STUDY. may have 5 legislative days in which to the definition of an offer to allow for (a) STUDY REQUIRED.—The Securities and revise and extend their remarks and in- the publication or distribution by a Exchange Commission shall conduct a study clude extraneous materials on this bill. broker or dealer of a research report to evaluate the issues affecting the provision The SPEAKER pro tempore (Mr. about an emerging growth company of and reliance upon investment research into small issuers, including emerging KATKO). Is there objection to the re- that is the subject of a proposed public growth companies and companies consid- quest of the gentleman from Michigan? offering. ering initial public offerings. There was no objection. However, few investment banks have (b) CONTENTS OF STUDY.—The study re- Mr. HUIZENGA. Mr. Speaker, I yield published any pre-IPO research since quired under subsection (a) shall consider— myself such time as I may consume. passage of the JOBS Act, and research (1) factors related to the demand for such Mr. Speaker, initial public offerings, coverage, in general, on small issuers research by institutional and retail inves- or IPOs, have historically been one of continues to be an issue. This nega- tors; the most meaningful steps in the tively affects investor interest and (2) the availability of such research, in- cluding— lifecycle of a company. awareness in a company as well as its (A) the number and types of firms who pro- Going public was the ultimate goal trading liquidity and, therefore, does vide such research; for many entrepreneurs. You start a not allow the company to launch the (B) the volume of such research over time; business from scratch, build it into a way that it properly could. and successful enterprise, and then open up b 1445 (C) competition in the research market; an opportunity for the public to share (3) conflicts of interest relating to the pro- in your success. Going public not only This provision is intended to increase duction and distribution of investment re- affords companies many benefits, in- research, but, unfortunately, it has had search; cluding access to the capital markets, the opposite effect, and, instead, there (4) the costs of such research; but IPOs are also important to the in- has been a significant decline—we have (5) the impacts of different payment mech- vesting public. By completing an IPO, seen a significant decline over recent anisms for investment research into small issuers, including whether such research is a company is able to raise much-need- years in analyst research covering paid for by— ed capital for job creation and expan- small public companies. (A) hard-dollar payments from research sion opportunities, while allowing According to the U.S. Chamber, ‘‘61 clients; Main Street investors an opportunity percent of all companies listed on a (B) payments directed from the client’s to have an economic piece of the action major exchange with less than $100 mil- E US commission income (i.e., ‘‘soft dollars’’); or and the ability to participate in the lion market capitalization have no re- O (C) payments from the issuer that is the H growth phase of a company. search coverage at all.’’ ROD with situy(b6-j)oe wcatnn eyod f u,s nwuicoqhmu reee nsc-ehoaawrlcnlehen;d g, easn dfa vceetde rbayn -mowinnoerd- ouHr oNwaetvieorn, hoavse re xtpheer ipenascte dt wa o3 7d peecracdeenst, $7F50o rm eiqlluioitni,e st hwei tahv ear amgaer knuetm cbaepr boef lroew- B2P small issuers in obtaining research coverage; decline in the number of U.S.-listed search analysts covering that stock is DH and companies. Equally troubling, we have one, while equities above $750 million F C B K S D lotter on VerDate Sep 11 2014 00:55 Jul 11, 2018 Jkt 079060 PO 00000 Frm 00005 Fmt 4634 Sfmt 0634 E:\CR\FM\K10JY7.009 H10JYPT1 H5998 CONGRESSIONAL RECORD—HOUSE July 10, 2018 in market cap have an average of 12 re- Ms. MAXINE WATERS of California. HUIZENGA) that the House suspend the search analysts covering the stock. Mr. Speaker, I yield myself such time rules and pass the bill, H.R. 6139. Additionally, the amount of research as I may consume. The question was taken; and (two- written on small companies has de- Mr. Speaker, I rise in support of H.R. thirds being in the affirmative) the clined even as the percentage of indi- 6139, the Improving Investment Re- rules were suspended and the bill was vidual ownership in small cap compa- search for Small and Emerging Issuers passed. nies has gone up, has increased. Little Act. A motion to reconsider was laid on or no research coverage generally cor- I first would like to thank Mr. the table. responds with lower stock liquidity, HUIZENGA for working with me to de- f and reduced research coverage may velop a bipartisan approach to identi- particularly be disadvantageous to in- fying and addressing gaps in invest- THE LARRY DOBY CONGRES- dividual investors who have limited re- ment research coverage for small SIONAL GOLD MEDAL ACT search capabilities on their own. issuers. Mr. HUIZENGA. Mr. Speaker, I move In fact, one study published in June Investment research helps to raise to suspend the rules and pass the bill of 2017 in The Journal of Finance found investor awareness, understanding, and (H.R. 1861) to award a Congressional that an increase in the number of ana- interest about a company, which can, Gold Medal in honor of Lawrence Eu- lysts covering an industry improved in turn, promote liquidity and overall gene ‘‘Larry’’ Doby in recognition of the quality of analyst forecasts and in- trading in the company’s securities. his achievements and contributions to formation flow to investors. For that Unfortunately, research of small public American major league athletics, civil reason, it is important to examine cur- companies has been on the decline in rights, and the Armed Forces during rent SEC rules and regulations affect- recent years. World War II. ing the ability of investment research According to a report from Capital The Clerk read the title of the bill. coverage regarding these small issuers. IQ, nearly two-thirds of companies The text of the bill is as follows: The Treasury report on Capital Mar- with less than $100 million in market kets recommended a holistic review of capitalization have no research cov- H.R. 1861 the rules and regulations regarding re- erage at all. At a recent Capital Mar- Be it enacted by the Senate and House of Rep- search, including the global settle- kets, Securities, and Investment Sub- resentatives of the United States of America in Congress assembled, ment, to determine which provisions committee hearing, Tyler Gellasch, ex- should be retained, amended, or re- ecutive director of the Healthy Mar- SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘The Larry moved. kets Association, testified about some Doby Congressional Gold Medal Act’’. Our bipartisan bill, the Improving In- of the factors contributing to low re- vestment Research for Small and search coverage of small issuers. SEC. 2. FINDINGS. Congress finds that— Emerging Issuers Act would direct the According to Mr. Gellasch, one such (1) Larry Doby was born in Camden, South SEC to study and evaluate issues af- factor is the bundling of research and Carolina, on December 13, 1923, and moved to fecting the ability of emerging growth execution services by investment Paterson, New Jersey, in 1938, where he be- companies and other small issuers in banks, which ‘‘increases cost for inves- came a standout 4 sport athlete at Paterson obtaining research coverage, including tors and competitively disadvantages Eastside High School; SEC rules, FINRA rules, State and smaller independent research providers (2) Larry Doby attended Long Island Uni- Federal liability concerns, the 2003 versus their larger peers.’’ versity on a basketball scholarship before Global Research Analyst Settlements, H.R. 6139 directs the SEC to study enlisting in the United States Navy during World War II; and MiFID II. competition in the research market (3) upon his honorable discharge from the And not later than 180 days after en- and other factors affecting the avail- Navy in 1946, Larry Doby played baseball in actment of that, the SEC will be re- ability of research coverage for small the Negro National League for the Newark quired to submit to Congress a report issuers, including emerging growth Eagles; that includes the results of the study companies and companies considering (4) after playing the 1946 season, Larry and recommendations to assist these an initial public offering. It also di- Doby’s contract was purchased by the Cleve- emerging growth companies, or EGCs, rects SEC to consider any unique chal- land Indians of the American League on July and other small issuers to obtain re- lenges faced by minority women and 3, 1947; (5) on July 5, 1947, Larry Doby became the search coverage. veteran-owned businesses in obtaining first African-American to play in the Amer- Among the issues the SEC must con- research coverage. ican League; sider are factors related to the demand Finally, the bill directs the SEC to (6) Larry Doby played in the American for such research by institutional and report its findings to Congress within 6 League for 13 years, appearing in 1,533 games retail investors, cost considerations for months, along with recommendations and batting .283, with 253 home runs and 970 such research, and the impact on the to improve the quality and availability runs batted in; availability of research coverage for of investment research for small (7) Larry Doby was voted to 7 All-Star small issuers due to a variety of mar- issuers. This bipartisan effort will help teams, led the American League in home runs twice, and played in 2 World Series; ket and regulatory conditions. identify the barriers small businesses (8) in 1948, Larry Doby helped lead the The SEC’s report must include rec- face when attempting to get their Cleveland Indians to a World Series Cham- ommendations to increase the demand story out to investors in our public pionship over the Boston Braves and became for, volume of, and quality of invest- capital markets. the first African-American player to hit a ment research into small issuers, in- I would urge my colleagues to join home run in a World Series game; cluding EGCs. This legislation is sup- me in supporting this bill, and I yield (9) after his stellar playing career ended, ported by Biotechnology Industry Or- back the balance of my time. Larry Doby continued to make a significant ganization, also known as BIO; the U.S. Mr. HUIZENGA. Mr. Speaker, I want contribution to his community; Chamber of Commerce; Nasdaq; the Se- to, again, thank the ranking member (10) Larry Doby was a pioneer in the cause of civil rights and received honorary doc- curities Industry and Financial Mar- for her work on this and being able to torate degrees from Long Island University, kets Association, also known as move forward on this very important Princeton University, and Fairfield Univer- SIFMA; and the National Venture Cap- issue. And I, again, want to encourage sity; ital Association. all of our friends on all sides, on both (11) in 1978, Larry Doby became the man- I thank the ranking member, Ms. sides of the aisle, to be supportive of ager of the Chicago White Sox, only the sec- WATERS, for recognizing the impor- this. It is a very important thing as we ond African-American manager of a Major tance of this research in our capital figure out the situation with the IPOs League Baseball team; E US markets and working with me to ad- here in the United States. (12) Larry Doby was the Director of Com- O munity Relations for the New Jersey Nets of H dress this issue and being a cosponsor Mr. Speaker, I yield back the balance ROD with ofS toh iIs .u rge all of my colleagues to sup- ofT mhye tiSmPeE. AKER pro tempore. The thchiete yw Naysoa utditeohen ppalrly o Bginraavsmkolesvt;eb adan lildn Aas nsoucmiabteiro no,f iwnhneerre- B2P port this bill, and I reserve the balance question is on the motion offered by (13) Larry Doby was inducted to the Na- DH of my time. the gentleman from Michigan (Mr. tional Baseball Hall of Fame in 1998. F C B K S D lotter on VerDate Sep 11 2014 00:55 Jul 11, 2018 Jkt 079060 PO 00000 Frm 00006 Fmt 4634 Sfmt 0634 E:\CR\FM\K10JY7.012 H10JYPT1 July 10, 2018 CONGRESSIONAL RECORD—HOUSE H5999 SEC. 3. CONGRESSIONAL GOLD MEDAL. shadowed by the great Jackie Robin- Larry Doby became the first African (a) PRESENTATION AUTHORIZED.—The son. Doby himself was a pioneer in the American professional baseball player Speaker of the House of Representatives and civil rights movement, breaking the in the American League in July 1947, 3 the President pro tempore of the Senate color barrier in professional sports, and months after Jackie Robinson had be- shall make appropriate arrangements for the becoming the first African American to come the first African American pro- presentation, on behalf of Congress, of a gold medal of appropriate design, in honor of play in the American League. fessional baseball player in the Na- Larry Doby and in recognition of his As the Baseball Hall of Fame states, tional League. While the name, Jackie achievements and contributions to American Doby suffered the same indignities as Robinson, is known in almost every major league athletics, civil rights, and the Jackie Robinson, but his struggles did American household, Larry Doby did Armed Forces during World War II. not get the media attention Robinson not receive nearly as much media at- (b) DESIGNANDSTRIKING.—For the purpose received. Whether it was being forced tention, though he is every bit as de- of the presentation referred to in subsection to stay in separate hotels or eat in sep- serving. (a), the Secretary of the Treasury (referred arate restaurants on the road or not Larry Doby played an integral role in to in this Act as the ‘‘Secretary’’) shall being accepted by some of his team- breaking down the color barrier and in strike a gold medal with suitable emblems, mates, Doby persevered. In fact, Doby integrating the American League. devices, and inscriptions to be determined by the Secretary. broke the color barrier in the Amer- Larry Doby signed with the Cleveland (c) TRANSFER OF MEDAL AFTER PRESEN- ican League just 3 months after Jackie Indians in 1947, and at the time, was TATION.—Following the presentation of the Robinson made his major league debut. not even welcomed by his own team- gold medal in honor of Larry Doby pursuant During his professional career, he be- mates, several of whom refused to to subsection (a), the gold medal shall be came the first African American to hit shake his hand upon meeting him for given to his son, Larry Doby, Jr. a home run in the World Series, help- the first time. Outside of his own team, SEC. 4. DUPLICATE MEDALS. ing lead the Cleveland Indians to the Doby faced racism and prejudice from The Secretary may strike and sell dupli- 1948 World Series championship. He ap- opposing players and fans, having to cates in bronze of the gold medal struck pur- peared in seven all-star games and endure racial slurs and death threats. suant to section 2 under such regulations as went on to become only the second Af- Despite the adversity he faced, Doby the Secretary may prescribe, at a price suffi- cient to cover the cost thereof, including rican American to become a manager paved the way for countless African labor, materials, dies, use of machinery, and prior to being inducted into the Major American players with dignity and overhead expenses, and the cost of the gold League Baseball Hall of Fame in 1998. class. In 1948, Doby became one of the medal. Upon his number being retired by the first African American players to win a SEC. 5. STATUS OF MEDALS. Cleveland Indians, the great Hank World Series championship when the (a) NATIONAL MEDALS.—The medals struck Aaron said to Doby: ‘‘I want to thank Indians beat the Boston Braves. In under this Act are national medals for pur- you for all that you went through, be- game four of the series, he became the poses of chapter 51 of title 31, United States cause if it had not been for you, I first African American player to hit a Code. wouldn’t have been able to have the ca- home run in World Series history. He (b) NUMISMATIC ITEMS.—For purposes of reer that I had.’’ also helped the Indians win a franchise sections 5134 and 5136 of title 31, United In addition to that, though, his sto- record, 111 games, and the American States Code, all medals struck under this ried baseball career, Doby also served League pennant in 1954, and was the Act shall be considered to be numismatic items. in the United States Navy during American League RBI leader and home World War II. In fact, Larry Doby took run champion. The SPEAKER pro tempore. Pursu- time away from professional sports in After playing with the Indians, Doby ant to the rule, the gentleman from order to serve his country, eventually had a long and successful baseball ca- Michigan (Mr. HUIZENGA) and the gen- being stationed in the Pacific theater. reer playing with the Chicago White tlewoman from California (Ms. MAXINE He was honorably discharged from the Sox, the Detroit Tigers, and the Drag- WATERS) each will control 20 minutes. military in 1946. ons before retiring in 1962. The Chair recognizes the gentleman Larry Doby led a humble yet coura- Following his retirement, he served from Michigan. geous life. His achievements in helping as a manager for various teams and be- GENERALLEAVE break the color barrier in professional came the second African American Mr. HUIZENGA. Mr. Speaker, I ask sports make him worthy of the highest manager in the majors with the Chi- unanimous consent that all Members civilian award that Congress can offer. cago White Sox. He also served as a di- have 5 legislative days to revise and ex- I urge my colleagues to support H.R. rector with the New Jersey Nets in the tend their remarks and to include ex- 1861, the Larry Doby Congressional NBA. In 1998, he was elected to the Na- traneous materials on this bill. Gold Medal Act. Again, I want to tional Baseball Hall of Fame by the The SPEAKER pro tempore. Is there thank all of my colleagues who sup- hall’s Veterans Committee. objection to the request of the gen- ported this legislation and helped His athletic contributions to major tleman from Michigan? make this day possible. I especially league baseball are, without a doubt, There was no objection. want to thank my great friend, Mr. impressive and admirable, but Larry Mr. HUIZENGA. Mr. Speaker, I yield PASCRELL, for his dedication to recog- Doby’s tenacity, determination, and as much time as he may consume to nizing Larry Doby with the Congres- his role as a pioneer in the face of tre- the gentleman from Ohio (Mr. sional Gold Medal. mendous hardship to integrate baseball RENACCI). I encourage my colleagues to support are deserving of the utmost recognition Mr. RENACCI. Mr. Speaker, I rise this legislation. and respect. today to urge support for H.R. 1861, the Ms. MAXINE WATERS of California. I would urge all of my colleagues to Larry Doby Congressional Gold Medal Mr. Speaker, I yield myself such time join me in passing this legislation to Act. as I may consume. recognize Larry Doby with the Con- Over the last 2 years, my good friend Mr. Speaker, I am pleased to rise gressional Gold Medal. And let me just say, more than any- and colleague, Representative BILL today in support of H.R. 1861, legisla- body, I think that my colleague, Mr. PASCRELL, and I have had the privilege tion to posthumously award the Con- of sharing the inspirational story of gressional Gold Medal to Larry Doby in PASCRELL, must again be commended and recognized for the fact that he in- Larry Doby with our friends and col- recognition of his athletic and civil sisted that this should take place, that leagues in the House of Representa- rights achievements. this gold medal should be presented on tives. Through those conversations, But I must say that we would not be behalf of Larry Doby, and so it is be- more than 290 Members of the House here today but for Mr. PASCRELL, who cause of him that we find ourselves agreed that Larry Doby deserved to be has been dedicated and committed to OUSE awarded the Congressional Gold Medal, the proposition that Larry Doby should heMrer .t oSdpaeya.k er, I reserve the balance of H the highest civilian award that Con- be recognized for his tremendous talent with gress can award. and for his tremendous contribution my time. OD Larry Doby’s legacy is one known not only to athletics but to civil rights b 1500 R B2P well to northeast Ohio and to Cleve- and other efforts that he was involved Mr. HUIZENGA. Mr. Speaker, I re- H landers, but it is one that is often over- in. serve the balance of my time. D F C B K S D lotter on VerDate Sep 11 2014 00:55 Jul 11, 2018 Jkt 079060 PO 00000 Frm 00007 Fmt 4634 Sfmt 0634 E:\CR\FM\A10JY7.006 H10JYPT1 H6000 CONGRESSIONAL RECORD—HOUSE July 10, 2018 Ms. MAXINE WATERS of California. many. I knew his family very well, as Ms. MAXINE WATERS of California. Mr. Speaker, it is my pleasure to yield well as Larry. He knew it, too. Larry Mr. Speaker, I have no additional such time as he may consume to the once said: ‘‘I knew being accepted was speakers, and I yield back the balance gentleman from New Jersey (Mr. PAS- going to be hard, but I knew I was in- of my time. CRELL), the lead Democratic sponsor of volved in a situation that was going to Mr. HUIZENGA. Mr. Speaker, I yield this bill, who has been tireless in his bring opportunities to other Blacks.’’ myself the balance of my time. efforts to bring this legislation to the Besides being a pioneer, Larry Doby Mr. Speaker, what an incredible floor. was no slouch on the diamond. He story that we see here. Mr. PASCRELL. Mr. Speaker, I rise played 13 years. He led the Indians to I, too, want to congratulate both today to honor Larry Doby, a sports their last World Series in 1948, and I re- Congressman PASCRELL, as well as Con- legend, a pioneer of American civil mind Mr. RENACCI of that point. They gressman RENACCI for their work on rights, a man who proudly served his are due. He was voted to seven all-star this. country, and a fellow native of the teams. When it was all done, he fin- As I was doing a little research and streets of my hometown, Paterson, ished with 253 home runs, nearly a hearing the stories and looking at New Jersey, where he was a star thousand RBIs, and a cool lifetime .283 Wikipedia and some other things, it led multisport athlete at Eastside High batting average. to lots of different places. The amazing School, well known for his character. Even when he was retired, Larry athleticism of this man was clear—the Mr. Speaker, I thank Chairman Doby continued to break barriers. As fact that he was 17 when he started HUIZENGA for the work that he did, Mr. RENACCIpointed out, in 1978, he be- playing baseball professionally; the tirelessly trying to get enough signa- came manager of the Chicago White fact that he played basketball profes- tures, both last year and this year—a Sox. He became only the second Afri- sionally; the fact that he went on to be great job—and I know the brothers and can American manager of a major a major force in two different sports, sisters in Ohio are very proud of him. league team. both with the New Jersey Nets as well I thank MAXINEWATERS, who made it His play on the field might have been as with the White Sox as a player and very, very possible to bring this to the good enough by itself, but for his abil- as a manager—well deserved and, un- floor today, my deepest, deepest ity and for his courage, Larry Doby fortunately, as has been pointed out, thanks. was rightly elected to the National far too long in the making. Larry Doby served in the United Baseball Hall of Fame in 1998. I made Mr. Speaker, I commend my col- States Navy in the Pacific during that trip to Cooperstown, as many leagues for their tenacity in going World War II. After an honorable dis- folks from Ohio and many people from after this. It is not easy to get 300 of charge in 1946, he returned to New Jer- Paterson, New Jersey, did. I was filled your colleagues in this body to agree sey to pursue his career in baseball with pride watching this product of on anything. That it is Tuesday would with the Newark Eagles after being Paterson ascend to the Parthenon of be difficult to get them to agree on, scouted at Hinchliffe Stadium in America’s game. much less awarding a Gold Medal. So Paterson. Hinchliffe Stadium is now in But even after he was finished in kudos and thanks to those gentlemen the historic district of Paterson, the baseball, Larry Doby wasn’t finished. who worked so hard. same field I played on as a kid, which He continued to make significant con- Again, as I said, one of the things gave me the delusions of making it to tributions to his community. He served that struck me is the camaraderie that the major leagues—almost, but not as the director of community relations it sounds like he and Jackie Robinson quite. We were proud that Larry Doby for the National Basketball Associa- had—speaking on the phone often; achieved that greatness. tion’s New Jersey Nets, where he was In 1946, Larry helped the Eagles win deeply involved with building several being the first two members of their the Negro World Series championship inner-city youth programs. This was a race to break that color barrier in over the legendary Satchel Paige— special, special person, Mr. Speaker. their respective leagues—what a won- think about that—and the Kansas City This bipartisan bill would post- derful story that is. Monarchs. Larry Doby hit .372, with humously award Larry Doby with a Congratulations to the Doby family one home run, five RBIs, and three sto- Congressional Gold Medal, the highest and to my colleagues. len bases in that world series. award bestowed by the United States Mr. Speaker, I yield back the balance Many believed Larry Doby would be Congress on extraordinary individuals. of my time. the first to break Major League Base- It is right recognition for Larry Doby’s The SPEAKER pro tempore (Mr. ball’s infamous color barrier, but we athletic feats, his courageous leader- MITCHELL). The question is on the mo- know what happened. On April 15, 1947, ship, the opportunities he created for tion offered by the gentleman from Jackie Robinson took to the field in others, and the inspiration he gave to Michigan (Mr. HUIZENGA) that the Ebbets Field; and on July 5, 1947, Larry millions. House suspend the rules and pass the Doby integrated the American League H.R. 1861, The Larry Doby Congres- bill, H.R. 1861. with the Cleveland Indians, 71 years sional Gold Medal Act, I introduced The question was taken; and (two- ago last week. with my friend Representative JIM thirds being in the affirmative) the Being second did not make his chal- RENACCIis a big deal. rules were suspended and the bill was lenge any less difficult or his courage I also thank the Senate sponsors of passed. any less remarkable. Larry was also the companion legislation: Senators A motion to reconsider was laid on treated to horrible racism. Even some ROB PORTMAN, ROBERT MENENDEZ, the table. of his teammates shunned him. Larry CORY BOOKER, SHERROD BROWN, TIM f Doby took that abuse wherever he SCOTT, and LINDSEYGRAHAM. OPTIONS MARKETS STABILITY went. Since coming to Congress, I have ACT Imagine that burden. Imagine the tried to support the legacy of Larry courage it would take to stand in front Doby. We passed an act of Congress to Mr. HUIZENGA. Mr. Speaker, I move of that every day, and yet he handled name the post office in Paterson after to suspend the rules and pass the bill the adversity with bottomless him. We worked hard to make sure he (H.R. 5749) to require the appropriate strength, poise, and dignity. was recognized by the United States Federal banking agencies to increase There was no interleague play back Postal Service with a beautiful postage the risk-sensitivity of the capital in 1947 and certainly no ESPN. Base- stamp. treatment of certain centrally cleared ball fans from American League only We are fortunate to have heroes who options, and for other purposes, as areas—like northern Ohio, Michigan, inspire us to achieve our best and lead amended. E US and around Washington, D.C.—would our communities towards positive The Clerk read the title of the bill. O ROD with H npthleaevy eA.r m Itbe ewr iaacsba lnLe a Lrteroay g sDueeoe bpJyaa rwckkhsoi.e i nRtoebgirnastoend cmohfu.a nnTigtoeyd.,a Tayn,h dew steeh aaatrr eei s u pwnrihotauetdr s w tieon n roeeuecdro gmcnooimrzee- BTeh iet etneaxctt eodf b tyh teHh e.bR Si.le l5n 7ai4st9e a asn fdo Hlloouwses :o f Rep- B2P The poise and courage of Larry Doby Lawrence Eugene Doby as one of those resentatives of the United States of America in DH was a source of inspiration for so heroes. Congress assembled, F C B K S D lotter on VerDate Sep 11 2014 00:55 Jul 11, 2018 Jkt 079060 PO 00000 Frm 00008 Fmt 4634 Sfmt 0634 E:\CR\FM\K10JY7.016 H10JYPT1 July 10, 2018 CONGRESSIONAL RECORD—HOUSE H6001 SECTION 1. SHORT TITLE. may have 5 days in which to revise and market volatility, therefore making it This Act may be cited as the ‘‘Options extend their remarks and to include ex- more expensive for individuals and in- Markets Stability Act’’. traneous material on the bill. stitutions to hedge their positions SECTION 2. RULEMAKING. The SPEAKER pro tempore. Is there through the use of options contracts. Within 180 days of the date of enactment of objection to the request of the gen- As I pointed out, Mr. Speaker, that is this Act, the Board of Governors of the Fed- eral Reserve System, the Federal Deposit In- tleman from Michigan? exactly the opposite of what the intent surance Corporation, and the Comptroller of There was no objection. of the Dodd-Frank Act was in this the Currency shall, jointly, issue a proposed Mr. HUIZENGA. Mr. Speaker, I yield area. rule, and finalize such rule within 360 days of myself such time as I may consume. Although the Basel Committee the date of enactment of this Act, to adopt Mr. Speaker, I rise today in support agreed to replace CEM by January of a methodology for calculating the of H.R. 5749, the Options Markets Sta- 2017 with a more risk-sensitive method counterparty credit risk exposure, at de- bility Act, which would adjust the risk known as the standardized approach fault, of a depository institution, depository institution holding company, or affiliate sensitivity of the capital treatment of for measuring counterparty credit risk, thereof to a client arising from a guarantee centrally cleared options. or SA-CCR, exposures, the Board of provided by the depository institution, de- Mr. Speaker, I congratulate my Governors of the Federal Reserve has pository institution holding company, or af- friend from Illinois and fellow member not yet implemented SA-CCR, and the filiate thereof to a central counterparty in of the Financial Services Committee, transition is not imminent. respect of the client’s performance under an Mr. HULTGREN, for his tireless work on To remedy these problems, H.R. 5749, exchange-listed derivative contract cleared this. Mr. Speaker, it may come as no the Options Markets Stability Act in- ttho rtohueg hr istkha-bta cseedn taranld cloeuvnertaegrpea-bratyse dp ucraspuiatnatl surprise that this may not be the most troduced by Representative HULTGREN rules applicable to depository institutions exciting portion of the work that is and Representative FOSTER, two col- and depository institution holding compa- done in our committee, it is not nec- leagues from Illinois, will help allevi- nies under parts 3, 217, and 324 of title 12, essarily the most sexy of issues that we ate the unnecessary adverse impact of Code of Federal Regulations. In issuing such deal with, but it is extremely impor- the current exposure method, or CEM, rule, the Board of Governors of the Federal tant. I appreciate the work of the gen- on the listed options market. Reserve System, the Federal Deposit Insur- tleman as well as members on the com- This legislation would require the ance Corporation, and the Comptroller of the mittee from all sides. Federal Reserve Board, Office of the Currency shall consider— As I said, Mr. Speaker, options are Comptroller of the Currency, and the (1) the availability of liquidity provided by incredibly useful and powerful risk Federal Deposit Insurance Corporation market makers during times of high vola- tility in the capital markets; mitigation tools that can help protect to implement a risk-adjusted approach (2) the spread between the bid and the an investor’s financial portfolio. From to value centrally cleared options as it quote offered by market makers; buying puts to hedge the downside risk relates to capital rules to better and (3) the preference for clearing through cen- of owning a stock to writing covered more accurately reflect exposure and tral counterparties; calls to collect income and cap poten- promote options market-making activ- (4) the safety and soundness of the finan- tial losses, listed options strategies are ity. cial system and financial stability, including protective tools employed by indi- Specifically, the bill changes how the the benefits of central clearing; vidual investors, institutions, and pen- calculation of the CEM on options con- (5) the safety and soundness of individual institutions that may centrally clear ex- sion funds. tracts is calculated on their notional change-listed derivatives or options on be- But options do have a sensitivity to face value rather than through a risk- half of a client, including concentration of the price of the underlying stock such adjusted value, which reflects actual market share; that, at any given point in time, the exposures. (6) the economic value of delta weighting a value of an option will respond dif- counterparty’s position and netting of a ferently to changes in the price of the b 1515 counterparty’s position; option’s underlying shares. By changing this calculation, it will (7) the inherent risk of the positions; Increased volatility in equity mar- incentivize the use of hedged positions (8) barriers to entry for depository institu- kets during recent months has revealed and would reduce the amount of capital tions, depository institution holding compa- that certain bank capital requirements required to place these positions and nies, affiliates thereof, and entities not af- filiated with a depository institution or de- using the current exposure method—or reduce overall exposure. pository institution holding company to cen- CEM, as it is known—from the Basel Market-maker liquidity is critical to trally clear exchange-listed derivatives or Committee on Banking Supervision vibrant options markets, and the options on behalf of market makers; discourages the use of central clearing, knock-on effects are increased costs to (9) the impact any changes may have on which is a central tenet of the Dodd- investors, a heightened possibility of the broader capital regime and aggregate Frank Act. This is actually counter- market dislocation during volatile en- capital in the system; and intuitive and the reason why we are vironments, and the discouragement of (10) consideration of other potential fac- here today trying to fix that. centrally cleared products that help tors that impact market making in the ex- Title VII of the Dodd-Frank Act re- limit the systemic risk that we are all change-listed options market, including changes in market structure. quires derivatives, including options, trying to eliminate. SEC. 3. REPORT TO CONGRESS. to be centrally cleared in order to take This bipartisan bill, which passed the At the end of the 5-year period beginning advantage of the risk-mitigating bene- Financial Services Committee by a on the date the final rule is issued under sec- fits of clearing. As a result, the role of vote of 54–0, is a modest adjustment to tion 2, the Board of Governors of the Federal clearing members, or houses, and the the risk- and leverage-based capital Reserve System shall submit to the Com- amount of transactions cleared by rules to better take into account the mittee on Financial Services of the House of these institutions has expanded signifi- actual risk of clearing options. Representatives and the Committee on cantly. I commend my colleagues, Rep- Banking, Housing, and Urban Affairs of the Senate a report detailing the impact of the However, businesses and end users resentative HULTGREN and Representa- final rule during such period on the factors which use these options to manage tive FOSTER, for their bipartisan work described under paragraphs (1) through (10) business risks can only trade through a on this important bill, and I urge all of of section 2. clearing member, as they are unable to my colleagues to vote in favor of H.R. The SPEAKER pro tempore. Pursu- access clearinghouses directly. 5749. ant to the rule, the gentleman from The risk-based and leverage-based Mr. Speaker, I reserve the balance of Michigan (Mr. HUIZENGA) and the gen- capital requirements for banks have my time. E tlewoman from California (Ms. MAXINE made it cost prohibitive for clearing Ms. MAXINE WATERS of California. US WATERS) each will control 20 minutes. members to expand their derivatives Mr. Speaker, I yield myself such time O H The Chair recognizes the gentleman clearing services when there is higher as I may consume. with from Michigan. volume. As a result, liquidity providers Mr. Speaker, I rise in support of H.R. OD GENERALLEAVE who depend on banks to centrally clear 5749, which is a tailored, bipartisan so- R B2P Mr. HUIZENGA. Mr. Speaker, I ask their options are having trouble pro- lution to the problems facing our Na- H unanimous consent that all Members viding liquidity during instances of tion’s options markets. D F C B K S D lotter on VerDate Sep 11 2014 00:55 Jul 11, 2018 Jkt 079060 PO 00000 Frm 00009 Fmt 4634 Sfmt 0634 E:\CR\FM\A10JY7.007 H10JYPT1 H6002 CONGRESSIONAL RECORD—HOUSE July 10, 2018 Options are a type of derivative con- work on this and so many other impor- equity options contracts demanded by tract that provide investors with the tant things on the Financial Services the market. right to buy or sell stock or other secu- Committee and the Capital Markets, The market-makers who provide li- rities at some point in the future. Ac- Securities, and Investment Sub- quidity for listed options are indirectly cording to the Chicago Board Options committee. constrained by the bank capital rules Exchange, which supports the bill, I also want to begin by giving special from fulfilling their role in maintain- bank affiliates that clear options on thanks to Leader MCCARTHY for pro- ing price stability. behalf of large traders have been re- viding time for consideration of the Op- Key financial regulators have under- stricting their services because of the tions Markets Stability Act. This legis- scored these issues. CFTC Chairman current bank capital calculation and lation is very important to a number of Giancarlo noted in testimony before resulting costs. stakeholders in Illinois, but also to the House Appropriations Committee As a consequence, they argue that market stability as a whole and the in- that: ‘‘We have some anecdotal infor- large options traders, known as mar- vestors who depend on having access to mation that shows that, during the re- ket-makers, are not readily able to reliable products. cent market volatility, the supple- trade when investors need them to and I also do want to thank Chairman mentary leverage ratio impacted larger are having to charge more when they HENSARLING and Ranking Member market-makers’ ability to take on cer- do trade. There are also fewer market- WATERS. Without their support, my tain positions, thus exacerbating mar- makers overall and more trading activ- legislation would not have received a ket volatility. The SLR is not specifi- ity concentrated among the top five unanimous vote in the Financial Serv- cally mandated in Title VII of Dodd- firms. ices Committee, and I am grateful for Frank, and it has had the opposite ef- H.R. 5749 would direct the bank regu- their help; and my colleague, BILLFOS- fect intended: pushing trades away lators to consider this problem while TER, as well, for his help. from central clearing.’’ still focusing on the benefits of bank Title VII of the Dodd-Frank Act re- Chairman Powell has noted that the capital to reduce systemic risk. quires derivatives, including options, current exposure method generally Now, I am aware that the Federal Re- to be centrally cleared in order to take treats potential future credit exposures serve just proposed to significantly advantage of the risk-mitigating bene- on derivatives as a fixed percentage of change banks’ capital requirements, in- fits. the notional amount, which ignores cluding through a rollback of the sup- Liquidity providers, many of which whether a derivative is margined and plementary leverage ratio. If the Fed’s are in Illinois, can trade only through undervalues netting benefits. proposals are finalized, FDIC-insured a clearing member; they cannot access The problem is that banking regu- banks could shed as much as $121 bil- clearinghouses directly. As a result, lators are taking far too long to actu- lion in capital, making it more likely the role of clearing members and the ally address the issues in our deriva- that one of the Wall Street megabanks amount of transactions cleared by tives markets. Our options markets are will fail in a future downturn and cause these institutions has expanded signifi- encountering liquidity issues now be- untold damage to the economy. cantly. cause of the poorly calibrated capital On top of that, the President signed The risk-based and leverage-based rules. Investors do not have the luxury into law S. 2155, which will recklessly capital requirements for bank clearing of waiting any longer on our bank reg- reduce capital and other requirements members makes it cost prohibitive to ulators. on the Nation’s largest banks. I am provide clearing services for listed op- Finally, this legislation has a long very concerned with these develop- tions. This is especially acute when list of supporters: Cboe Global Mar- ments and urge our regulators to en- there is higher than expected volume. kets, the Options Clearing Corporation, sure the safety and soundness of Chicago Trading Company, one of the NASDAQ, NYSE, CME Group, SIFMA, megabanks and our financial system. key liquidity providers for listed op- the Futures Industry Association, IMC, H.R. 5749 would make sure that this tions, wrote in a letter to the Treasury Chicago Trading Company, TD is the case for bank capital associated Department last summer that: ‘‘These Ameritrade, just to name a handful. with cleared options. Specifically, the requirements force banks to direct cap- A vote in support of the Options Mar- bill would require the bank regulators ital away from the exchange-listed, kets Stability Act is a vote in support to conduct a rulemaking after consid- centrally cleared options market, of listed options and central-clearing ering several important factors, includ- thereby hindering our ability to pro- that is a cornerstone of Dodd-Frank. It ing the safety and soundness of the fi- vide liquidity and acting in direct con- is a vote in support of maintaining op- nancial system, financial stability, and travention of a core principle of post- tions for investors and their ability to the impact of the changes on the crisis regulation: strengthening ex- manage risk in volatile markets. broader capital regime. change-based trading and central clear- Ms. MAXINE WATERS of California. Unlike the introduced version of the ing, especially for many derivatives Mr. Speaker, I have no further speak- bill, which would only reduce capital, that were previously traded on an over- ers, and I yield back the balance of my the bill, as amended, would direct the the-counter basis.’’ regulators to increase capital for The Options Markets Stability Act, time. riskier derivatives. as amended, requires Federal banking Mr. HUIZENGA. Mr. Speaker, I have It also would create a retrospective regulators to more accurately measure no further speakers. I encourage my rule review so that, 5 years after imple- counterparty risk by adjusting the colleagues to vote for H.R. 5749, and I mentation, the regulators would study risk- and leverage-based capital rules, yield back the balance of my time. the impact of their rule. and requires them to provide a report The SPEAKER pro tempore. The So I want to thank Representative to Congress about these changes 5 question is on the motion offered by FOSTER and Representative HULTGREN years after they go into effect. the gentleman from Michigan (Mr. for working together to promote trad- While market participants have long HUIZENGA) that the House suspend the ing in our options markets without expressed concern about the current rules and pass the bill, H.R. 5749, as sacrificing bank safety and soundness. capital requirements for listed options, amended. I encourage my colleagues to join me volatility in equity markets earlier The question was taken. in supporting H.R. 5749, and I reserve this year exposed the extent to which The SPEAKER pro tempore. In the the balance of my time. existing rules are restricting liquidity opinion of the Chair, two-thirds being Mr. HUIZENGA. Mr. Speaker, I yield when it is needed the most. in the affirmative, the ayes have it. as much time as he may consume to Volatility contributes to an increase Mr. HUIZENGA. Mr. Speaker, on that E US the gentleman from Illinois (Mr. in volume of listed options because of I demand the yeas and nays. O with H iHtUaLl TMGRaErNk)e,t st,h eS vecicuer ictiheasi,r aonf dt hIen vCeaspt-- ahned ignet etrheseti r byp omsiatrioknest. paHrotwiceivpearn,t st htoe TThhee ySePaEs AanKdE nRa ypsr ow etreem oprodreer.e dP. ursu- OD ment Subcommittee. binding capital constraint under cur- ant to clause 8 of rule XX, further pro- R B2P Mr. HULTGREN. Mr. Speaker, I want rent rules makes it cost prohibitive to ceedings on this motion will be post- DH to thank Chairman HUIZENGA for his centrally clear the increased volume of poned. F C B K S D lotter on VerDate Sep 11 2014 00:55 Jul 11, 2018 Jkt 079060 PO 00000 Frm 00010 Fmt 4634 Sfmt 0634 E:\CR\FM\K10JY7.020 H10JYPT1
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