Prepared Floor Statement of Senator Chuck Grassley of Iowa

Ranking Member, Senate Judiciary Committee

On the Motion to Invoke Cloture on the Nomination of

Cornelia Pillard, to be U.S. Circuit Judge for the District of Columbia Circuit

Tuesday, November 12, 2013

 

Mr. President,

 

I'm speaking in opposition to the motion to invoke cloture on the nominee for the D.C. Circuit, Cornelia Pillard.  Although her record makes clear her views are well outside the mainstream on a host of issues, I'm not going to focus on those concerns today.

 

I'm going to focus instead on the standard the Democrats established in 2006.  Based on that standard, the court's caseload makes clear that the workload simply doesn't justify adding judges, particularly when those additional judges cost approximately $1 million per year, per judge.

 

I have walked through the statistics several times now.

 

The bottom line is this: the data overwhelmingly supports the conclusion that the D.C. Circuit is underworked.  Everyone knows this is true.  That circuit does not need any more judges.

 

Take for instance, the appeals filed and appeals terminated.

 

In both categories, the D.C. Circuit ranks last.  And in both categories the D.C. Circuit is less than half the national average.

 

To provide some perspective on this, compare the D.C. Circuit to the 11th.  After another judge took senior status last week, both courts now have eight active judges.

 

If we don't confirm any more judges to either court, and the numbers remain the same as last year, the 11th Circuit will have 875 appeals filed per active judge.  Compare that to the 149 appeals filed per active judge in D.C., which also has eight active judges.  Again, that's 875 for the 11th Circuit, compared to 149 for D.C. Circuit.

 

Now, some might argue we shouldn't look only at "active judges" because those averages will change if and when we confirm more judges to the 11th Circuit.

 

Suppose we fill each judgeship on the 11th Circuit and each judge on the D.C. Circuit as the Democrats want to do.  If we fill them all, there would be 583 Appeals filed per judge for the 11th Circuit, and only 108 for D.C.

 

The 11th Circuit has over five times the caseload.

 

This is why everyone who has looked at this objectively understands the caseload for the D.C. Circuit is stunningly low.

 

This is why the current judges on the court have written to me and said things like: "If any more judges were added now, there wouldn't be enough work to go around."

 

Now, some of my friends on the other side recognize that the D.C. Circuit's caseload is low, but they claim that the caseload numbers don't take into account the "complexity" of the court's docket.

 

They argue the D.C. Circuit hears more "administrative appeals" than other circuits.  And they claim these administrative appeals are more complex.

This argument is nonsense.  Here is why.

 

I've heard my colleagues argue repeatedly that the D.C. Circuit's docket is complex because "43%" of its docket is made up of "administrative appeals."

But of course, that is a high percentage, of a very small number.

 

When you look at the actual number of these so-called "complex" cases per judge, the Second Circuit has almost twice as many as the D.C. Circuit.

 

In 2012, there were 512 "administrative appeals" filed in D.C.

 

In the Second Circuit, there were 1,493.

 

Stated differently, in D.C., there were only 64 administrative appeals per active judge.

 

The Second Circuit has nearly twice as many with 115.

 

Again, that's 64 administrative appeals per active judge in DC.

As opposed to the Second Circuit which has almost twice as many, with 115.

 

So, this entire argument about "complexity" is nonsense, and the other side knows it.

 

Now, let me raise another question regarding caseload.

 

If these cases were really that hard -

 

If these cases were really so "complex" -

Then why in the world would the D.C. Circuit take the entire summer off?

 

And I'm not talking about just a couple weeks in August.  They don't hear any cases for the entire summer.

 

The D.C. Circuit has so few cases on their docket, that they don't hear any cases from the middle of May until the second week of September.

This past term, the last case they heard before taking the summer off was on May 16th.  The court didn't hear another case until September 9th, almost four months later.

The bottom line is this: everyone knows this court doesn't have enough cases as it is.  Let alone if we were to add more judges.

 

This is why when you ask the current judges for their candid assessment, they write:

"if any more judges were confirmed now, there wouldn't be enough work to go around."

 

Now, while I'm discussing this caseload issue, I want to remind my colleagues of a little bit history.

 

In 2006, the Democrats on the Judiciary Committee blocked Peter Keisler's nomination to the D.C. Circuit.

 

They blocked Mr. Keisler's nomination based on the court's caseload.  Since that time, by the standard the other side established, the court's caseload has declined sharply.

 

We didn't set this standard.  The Democrats did.

 

I recognize that the other side wants to rewrite history.  They try to compare John Robert's second nomination to the circuit, which passed fairly easily, with the current nomination.  What they conveniently forget, in a misleading way, is that they blocked Keisler's nomination after the Roberts' nomination.

 

I recognize the other side hopes we forget that they established these rules and precedents.

I recognize the other side finds those rules inconvenient today.

 

But these are not reasons to ignore the rules and standards they established.

 

There is simply no legitimate reason that the other side should not embrace today the very standard they established in 2006.

 

So, under the standard established by the Democrats in 2006, these nominations aren't needed.

 

According to the current judges themselves, these judges aren't needed.

 

And according to the Chief Judge of the D.C. Circuit - a Clinton appointee - the senior judges are contributing the equivalent of an additional 3.25 judges.  As a result, the court already has the equivalent of 11.25 judges - more than the authorized number.

 

So it seems pretty clear that the other side has run out of legitimate arguments in support of these nominations.  Perhaps that is why they are resorting to such cheap tactics.

 

Over the last couple of days, I've heard my colleagues on the other side actually come to the floor and argue that Republicans are opposing this nominee because of her gender.

 

That argument is offensive, but predictable.  We've seen this before.  When the other side runs out of legitimate arguments, their last line of defense is to accuse Republicans of opposing nominees based on gender or race.  It's an old and well-worn card.  And they play it every time.  The fact of the matter is that I've voted for 75 women nominated to the bench by President Obama, as well as a host other nominees of diverse backgrounds.

 

Those are the facts. But the other side isn't concerned with facts.  They are more interested in demagoguery and coarse rhetoric.

 

It's unfortunate.  Those types of personal attacks on members of the Senate are beneath this institution.

 

Now, given that there is no legitimate reason to fill these seats, why is the other side pushing these nominations so aggressively?  Why waste $3 million a year in taxpayer dollars?

 

Unfortunately, we don't have to guess.  We know the reason.

 

We've all heard the President pledge repeatedly, "If Congress won't act, I will."

 

What he means, of course, is that he will rule by Executive Fiat.

 

He won't go to Congress.

 

He won't negotiate.

 

He'll go around Congress.

 

He doesn't need legislators to enact legislation.

 

He'll just issue an Executive Order or issue new Agency rules.

 

Why bother with those pesky Senators and members of the House, when you can make law with the stroke of a pen?

 

In effect, the President is saying:

'If the Senate won't confirm who I want, when I want them, then I'll recess appoint them when the Senate isn't even in session';

 

'If Congress won't pass Cap and Trade fee increases, then I'll go around them and do the same thing through administrative action at the Environmental Protection Agency';

 

'If Congress won't pass gun control legislation, then I'll issue a series of Executive Orders';

 

That is what the President means when he says, "if Congress won't act, I will."

 

But remember, we have a system of checks and balances.

 

Under our system, when the President issues Orders by Executive Fiat, it's the courts that provide a check on his power.

 

It's the courts that decide whether the President is acting unconstitutionally.

 

So, the only way the President's plan works is if he stacks the deck in his favor.

 

The only way the President can successfully bypass Congress is if he stacks the court with ideological allies who will rubberstamp his Executive Orders.

 

There is no big secret here.  The other side hasn't been shy about this strategy.

 

Here is how the Washington Post described the strategy:

 

"Giving liberals a greater say on the D.C. Circuit is important for Obama as he looks for ways to circumvent the Republican-led House and a polarized Senate on a number of policy fronts through executive order and other administrative procedures."

 

Here is how another high profile administration ally put it:

 

"There are few things more vital on the president's second-term agenda.  With legislative priorities gridlocked in Congress, the president's best hope for advancing his agenda is through executive action, and that runs through the D.C. Circuit."

 

So the President is willing to waste $3 million in taxpayer dollars a year, every year, in order to bypass congress and make sure his Executive Orders don't lose in court.

 

Every member of this body should find that troubling.

 

Finally, I want to mention a couple points on the so-called "gang of 14" agreement.

 

First, by the very terms of that agreement, it applied only to those fourteen Senators for that specific Congress, the 109th.

 

Second, even though that agreement - by its own terms - expired at the end of the 109th Congress, just last week one of the members who was actually in the Senate back in 2005, determined that these nominations, in his judgment, constituted "extraordinary circumstances."

 

And third, in 2006, after the so-called "gang of 14" agreement, Senate Democrats created the Keisler Standard.

 

They blocked Peter Keisler based on caseload, after the so-called "gang of 14" agreement.  Peter Keisler waited in committee for over 900 days for a vote that never came.

 

These are the rules the other side established.  And now, when they are on the receiving end of those same rules, they want them changed.

 

Mr. President, we don't intend to play by two sets of rules around here.

 

And that brings me the constant threat from the Majority about changing the rules on the filibuster.

 

I've been in the Minority for a number of years.  I've also had the privilege of serving in the Majority for a number of years.

 

Many of those on other side who are clamoring for a rules change - and almost falling over themselves for it - have never served a single day in the Minority.

 

All I can say is this: be careful what you wish for.

 

I've come to the conclusion that that if the rules are changed, at least we Republicans will get to use them when we're back in the Majority.

 

Republicans had the chance seven or eight years ago to change the rules and we didn't.  And, I'd imagine we wouldn't be the first to change them in the future.

 

Remember, it was the Democrats who first used the filibuster to defeat circuit judges.  It was the Democrats who first used caseloads to defeat circuit judges.

 

So, if the Democrats are bent on changing the rules.  Go ahead.

 

There are a lot more Scalias and Thomases out there we'd love to put on the bench.

 

The nominees we'd nominate and confirm with 51 votes will interpret the Constitution as it was written.  They are not the type who would invent constitutional rights out of thin air.

 

I urge my colleagues to oppose cloture on the Pillard nomination.

 

I yield the floor.

 

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Friday, Nov. 8, 2013

WASHINGTON - Sen. Chuck Grassley of Iowa and Sen. Orrin Hatch of Utah today released enrollment data from the four health insurance companies participating in the Washington, D.C., exchange set up via the President's health care program.  The Obama Administration has refused to provide enrollment numbers to the American people.

CareFirst BlueCross BlueShield: two enrollees from Oct. 1, 2013, through Oct. 30, 2013.

Kaiser Permanente: three enrollees from Oct. 1, 2013, through Oct. 31, 2013.

UnitedHealthcare: no enrollment data from the exchange as of Nov. 4, 2013.

Aetna:  no enrollment data as of Oct. 24, 2013.

"A lot of Americans are getting cancellation notices from their current health care plan but they haven't been able to enroll in a new plan," Grassley said.  "The limbo and uncertainty are stressful for them, as they've been describing in emails to my office.  The chaos imposed on so many people is reason to at least delay the individual mandate, if not outright repeal it."

"With numbers like these, it's no wonder the Obama Administration hasn't wanted to release how many people have signed up for ObamaCare," said Hatch.  "With data from DC's four participating health plans in, there's been a whopping five people enrolled in the city's exchange. That's right five. Whether it's significant problems with the website, people being forced off the coverage they had or skyrocketing costs, these numbers are even more proof of what a disaster ObamaCare is and why it should be delayed."

On Oct. 24, 2013, Grassley and Hatch wrote to the four companies participating in the Washington, D.C., health care exchange.  The Washington, D.C., exchange has four major plans and so provides a snapshot of how Americans fare in trying to join the new exchanges.

Grassley and Hatch said news reports show problems with what are called "834 forms" that contain individual information that insurers use to enroll the individual in a health care plan.   Inaccurate or corrupted data would interfere with successful enrollment.  That has implications for when the Administration should enforce the individual mandate requiring enrollment.  It would be unfair to penalize people for not having health insurance when technical problems have impeded their enrollment, Grassley and Hatch said.

The responses the senators received are available here, here, here and here.

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Q:       Why is National Adoption Month observed in November?

A:        During this season of thanksgiving, millions of American households open their homes to friends and family from near and far.  We come together to celebrate cherished traditions that have been handed down for generations.  Hospitality, hearth and harvest come to mind as families gather at the table and give thanks.  As Americans make plans for the holiday feast, we can quibble about giblets in the gravy or whether to roast, deep fry or brine the turkey.  Each family enjoys its own unique traditions and family favorites on the Thanksgiving menu.  When it's all said and done, there's really no place like home.  That's why it's especially fitting to commemorate National Adoption Month in November.  Tens of thousands of foster children in America long to have a permanent place setting at their very own family's table on Thanksgiving Day and every other day of the year.  Last year, nearly 400,000 children lived in the U.S. foster care system.  Of those, nearly 102,000 awaited adoption.  More than 26,000 aged out of the system before ever securing a permanent place to call home.  Since 1990, National Adoption Month has helped to raise awareness for children awaiting adoption and appreciation for those who have answered the call to serve as foster or adoptive parents.  So many of us look forward to celebrating the homecoming of friends and family on Thanksgiving Day.  Just consider the hope-filled anticipation of a child longing to be welcomed home for good to a forever family.

 

Q:       What can be done to help more children awaiting adoption to find a permanent, loving home?

A: As co-founder and co-chair of the bipartisan Senate Caucus on Foster Youth, I've worked to raise public awareness and educate policymakers about the challenges facing foster youth, especially those who age out of the system with no long-term support structure in place.  Children and adolescents need stability, certainty and constancy in their lives.  A permanent, loving home provides the most nurturing foundation to help youth reach their fullest potential in society.  We should acknowledge foster youth throughout the year, not just November, and give thanks to parents who heed the call to adopt a child.  And, we can always do more to ensure that children who await adoption get the assistance they need, including support to stay in school and sustain their education.  Earlier this year, I introduced the Foster Youth Stamp Act of 2013 that would provide for the issuance and sale of a postal stamp by the U.S. Postal Service.  Revenue generated from the stamp would support state-based programs, including the Adoption Opportunities Program - which seeks permanent outcomes for foster care youth through adoption, guardianship or kinship care - and the State Court Improvement Program - which seeks to improve legal representation for youth and addresses caseloads and the court's role in achieving safe, stable, permanent homes for children in foster care.

 

Q:       What other legislative provisions have you championed to promote adoption?

A: As an outspoken advocate for "life, liberty and the pursuit of happiness" at the policymaking tables in Washington, I believe these founding principles apply especially to vulnerable children in our society.  I've worked with Iowa families, foster youth, child welfare advocates, court representatives and social workers to help identify financial, legal and bureaucratic roadblocks that make it difficult for kids to find a permanent, loving home through adoption, guardianship or reunification with their birth family.  Through congressional hearings and legislation, I've worked to raise awareness about the stability that adoption can bring to a child in need of a loving home as well as the public good adoption brings to society.

•         In 1997, I worked to advance the Adoption and Safe Families Act that is credited with doubling adoptions from foster care in many states.

•         As then-chairman of the tax-writing Senate Finance Committee, I secured an expansion of federal tax credit assistance in the 2001 tax law that increased qualified expenses for adoption from $5,000 to $10,000.  Today the tax credit is indexed for inflation and was made a permanent provision of the federal tax code earlier this year. Adoptive parents this year may apply $12,970 in qualified adoption expenses to their 2013 federal tax return.

•         In 2006, congressional hearings in the Senate Finance Committee led to the passage of the Child and Family Services Improvement Act that improved programs designed to help troubled families and increased caseworker visits for foster care youth.

•         In 2008, I authored the Fostering Connections to Success and Increasing Adoptions law which increased federal incentives for states to move children from foster care to adoptive homes; made it easier for children to be adopted by relatives; made children with special needs eligible for federal adoption assistance; and, established new educational opportunities for youth who age out of foster care at age 18.

Q:       What is National Adoption Day?

A:        Since 2000, 44,500 families have finalized adoptions on National Adoption Day. Organizers single out the Saturday before Thanksgiving to raise public awareness and honor adoptive families across the country.  As Iowans count our blessings and celebrate family on Thanksgiving Day, let's remember the children in our communities who dream to find a family to call their own once and for all.  Have you, a family member, friend or neighbor considered adoption?  On behalf of the thousands of foster children whose single-most important wish upon the turkey's wishbone would be to take a seat at their very own family's Thanksgiving table, I encourage you to prayerfully consider the call if you're in a position to do so.

Thursday, November 7, 2013

WASHINGTON - Sen. Chuck Grassley of Iowa is seeking answers from the Obama administration on indications that Obamacare will bypass key anti-fraud protections.

"I am alarmed at indications that the Administration may try to exempt the Patient Protection and Affordable Care Act (PPACA) from certain federal anti-fraud provisions," Grassley wrote to top administration officials today.  "PPACA provides for billions of dollars in subsidies to be paid directly to insurance companies.  These taxpayer dollars should be subject to the full arsenal of civil and criminal anti-fraud protections provided by Congress."

Grassley's letter to Health and Human Services Secretary Kathleen Sebelius and Attorney General Eric Holder came amid statements that the administration does not consider qualified health plans and other programs related to the federally facilitated marketplace under the new health care law to be federal health care programs.  That appears to mean the Obamacare programs are not subject to federal anti-kickback statutes and the federal False Claims Act, one of the government's most effective tools against fraud, especially health care fraud in recent years.

Grassley raised these concerns at a Finance Committee hearing with Sebelius on Wednesday.  He asked her to explain her letter to a House member that the Obamacare health plans are not considered federal health care programs.  She suggested Medicare Advantage, for example, and Obamacare should be treated differently for federal anti-fraud protections.  Grassley believes both programs should be treated the same for anti-fraud purposes, since both involve direct payments from the government to private health care plans.

"Congress' intent to treat kickbacks under PPACA as False Claims Act violations is clear.  It cannot lawfully be nullified by the stroke of a pen through an administrative exemption," Grassley wrote today.  "If this nullification were allowed to stand, HHS would be removing a vital tool to investigate and prosecute fraud.  It undermines public confidence that the government is serious about protecting American taxpayer dollars from fraud, waste and abuse.   Intentionally attempting to strip away these vital protections by administrative fiat is extremely disturbing."

Grassley is the Senate author of the 1986 whistleblower amendments strengthening the federal False Claims Act, making it more effective than ever in exposing fraud against the government.

The text of Grassley's letter to Sebelius and Holder is available here.

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BIPARTISAN GROUP OF SENATORS JOINED BY SURVIVORS, RETIRED GENERAL, ADVOCATES KICK OFF FINAL TWO-WEEK PUSH FOR CREATING AN INDEPENDENT MILITARY JUSTICE SYSTEM -- DEFENSE BILL EXPECTED ON THE FLOOR BEFORE THANKSGIVING

Military Justice Improvement Act Will Be Offered as Amendment to Annual Defense Bill - The Change Required to Give Survivors of Sexual Assault in the Military a Fair Shot at Justice

 

Momentum Continues to Grow: Defense Advisory Committee Appointed by Secretary of Defense (DACOWITS panel) Recently Voted in Favor of Gillibrand Approach Without a Single Vote Against On the Heels of 3 Retired Generals Coming Out in Support

 

According to Pentagon Estimates, 25% of Women and 27% of Men Who Received Unwanted Sexual Contact Indicated the Offender Was Someone in Their Military Chain of Command -- More Than 26,000 Incidents of Sexual Assault or Unwanted Sexual Contact Occurred in 2012

 

Washington D.C. - U.S. Senators Kirsten Gillibrand (D-NY), Chuck Grassley (R-IA), Barbara Boxer (D-CA), Lisa Murkowski (R-AK), Richard Blumenthal (D-CT), Rand Paul (R-KY), Mazie Hirono (D-HI), Ted Cruz (R-TX), Jeanne Shaheen (D-NH), and Susan Collins (R-ME) kicked off their final two week push to create an independent, objective and non-biased military justice system with the 2014 National Defense Authorization Act (NDAA) expected to be debated on the floor before the Thanksgiving recess. The bipartisan Military Justice Improvement Act, to be offered as an amendment on the Senate floor to the Defense bill, is already publicly supported by 46 Senators, including 38 Democrats and 8 Republicans.

 

This common sense proposal seeks to reverse the systemic obstacles that numerous victims of military sexual assault have described in deciding whether to report the crimes committed against them due to the clear bias and inherent conflicts of interest posed by the military chain of command's current sole decision-making power over whether cases move forward to a trial. The Senators were joined by survivors of sexual assault in the military; a retired Brigadier General and former Pentagon appointee by the Obama administration; and advocates.

 

The carefully crafted Military Justice Improvement Act moves the decision whether to prosecute any crime punishable by one year or more in confinement to independent, trained, professional military prosecutors, with the exception of 37 crimes that are uniquely military in nature, such as disobeying orders or going Absent Without Leave. The decision whether to prosecute the 37 serious crimes uniquely military in nature plus all crimes punishable by less than one year of confinement would remain within the chain of command. The bill does not amend Article 15 pertaining to non-judicial punishments.

 

According to the FY2012 SAPRO report released earlier this year by the Defense Department, an estimated 26,000 cases of unwanted sexual contact and sexual assaults occurred in FY2012, a 37% increase from FY2011. Another report released by the Defense Department this year showed that more than 1 in 5 female servicemembers reported experiencing unwanted sexual contact while serving in the military. Also according to the FY2012 SAPRO Report, 25% of women and 27% of men who received unwanted sexual contact indicated the offender was someone in their military chain of command. Further, 50% of female victims stated they did not report the crime because they believed that nothing would be done with their report. Even the current top military leadership admits the current system "has failed" and as Commandant of the Marine Corps General James F. Amos stated this year, victims do not come forward because "they don't trust the chain of command."

 

"America is home to the world's best and brightest, brave men and women who join the armed services for all the right reasons - to serve our country, defend all that we hold sacred, and make America's military the best the world has ever known," Senator Gillibrand said. "But too often, these brave men and women find themselves in the fight of their lives not off on some far-away battlefield, but right here on our own soil, within their own ranks and commanding officers, as victims of horrific acts of sexual violence. Our bipartisan bill takes this issue head on by removing decision-making from the chain of command, and giving that discretion to experienced trial counsel with prosecutorial experience where it belongs. That's how we will achieve accountability, justice and fairness."

 

"Sexual assault cases should be handled outside the chain of command to eliminate any potential bias and make victims more comfortable in coming forward," Senator Grassley said. "Sexual assault is a law-enforcement issue. When young adults commit to serving their country and defending our freedoms, they deserve to know their own rights will be protected, including access to justice."

 

"There is only one fundamental change that will ensure that a charge of sexual assault will be based on the evidence - not any other factor - and that is this bipartisan bill," Senator Boxer said.

 

"Our men and women in uniform put their blood, sweat and tears into defending American ideals, freedoms and protections at home and abroad; they deserve the same robust defenses in return," said Senator Murkowski (R-AK). "Too often, cases of sexual assault go unreported out of fear of retribution or that nothing will be done - this bill would increase confidence in the military judicial system.  Working to create an unbiased process would improve conditions for not only victims but for the accused."

 

Senator Blumenthal said, "By closing the small remaining vote gap in coming days, we can assure stronger justice to military sexual assault victims. Victims of this hideous, horrific crime deserve a fairer, more effective justice system - with decisions made by a trained, experienced prosecutor - so they will be better protected and encouraged to report sexual assaults. As the best and strongest military in history, our men and women in uniform deserve a justice system worthy of their excellence. Our legislation is vital to victim trust and confidence in military justice. I am proud to stand with Senator Gillibrand and this broad, bipartisan coalition of advocates and colleagues."

 

"The vast majority of our service members are honorable and upstanding individuals. In the instance when one is accused of a serious crime, especially one of assault in any form, the allegation needs to be taken seriously," Senator Paul said. "I support Sen. Gillibrand's amendment to not only protect the rights of victims, but also the rights of the accused. This is a necessary change to protect those who are protecting us."

 

"Our brave men and women in uniform deserve the basic opportunity to face a fair military justice system when reporting sexual assaults. The testimony of survivors is horrific and it is tragic that even more attacks go unreported," said Senator Hirono.

 

"I proudly support Senator Gillibrand's military justice improvement legislation, which only applies to the most serious crimes in the military, and will enable commanders to focus on their wartime mission and ensure that the rights of both victims and those accused of crimes are protected," said Senator Cruz. Our strongest allies have adopted similar military justice changes and their experience shows us that this can be done without harming the chain of command or military readiness. Senator Gillibrand is to be commended for her leadership on this issue and for accepting critical improvements to the amendment to ensure that crimes that are unique to the military will not be decided by lawyers."

 

"Sexual assault cannot be tolerated anywhere, including the military. Despite the fact that the Department of Defense has had a zero tolerance policy for 20 years, sexual assaults in the military continue to be a major problem," said Senator Shaheen. "We have to change the way the military investigates and prosecutes these cases. Our bipartisan legislation will implement smart and long overdue reforms."

 

"I have been terribly disturbed by a seemingly endless stream of allegations of sexual misconduct, and by the fact that, approximately nine years after I first publicly raised the issue of sexual assault with military leaders in 2004, the problem persists at such an alarming rate.  While I believe the vast, overwhelming majority of our military personnel are honorable individuals, we must ensure that justice is swift, fair, and certain for the criminals who have perpetrated these crimes," said Senator Collins.

 

The problem of sexual assault in the military is not new, neither are the pledges of "zero tolerance" from commanders, which date all the way back to then-Secretary of Defense Dick Cheney in 1992. The Military Justice Improvement Act would for the first time remove the decision whether to take a case to general court-martial completely out of the chain of command and give that discretion to experienced military prosecutors for all crimes punishable by one year or more in confinement, except crimes that are uniquely military in nature, such as disobeying orders or going AWOL.

 

Over the past several months, retired military leaders have come out in support of the proposal. Among others, Lt. General (Ret.) Claudia Kennedy - the first woman to reach the rank of three-star general in the U.S. Army; Brigadier General (Ret.) Loree Sutton- formerly the highest ranking psychiatrist in the U.S. Army; Brigadier General (Ret.) David McGinnis - who  most recently served as a President Obama appointee in the Pentagon as the Principal Deputy to the Assistant Secretary of Defense for Reserve Affairs from April 2009-Sept 2012; Former Vermont National Guard Adjutant General and Retired Air Force Major General Martha Rainville - served in the military for twenty-seven years, including fourteen years in command positions and the first woman in the history of the National Guard to serve as a state Adjutant General;  and Former Army JAG officer and former Congressman Patrick Murphy - served with the U.S. 82nd Airborne Division while stationed in Iraq from 2003-2004; all released statements or letters in support of this proposal

 

In September, the Defense Advisory Committee on Women in the Services (DACOWITS) voted overwhelmingly in support of removing the decision whether to prosecute sexual assaults and other serious crimes from the chain of command. Ten members voted in support of the measure, six abstained to study further, none voted against. DACOWITS was created in 1951 by then Secretary of Defense, George C.  Marshall. The Committee is composed of civilian and retired military women and men who are appointed by the Secretary of Defense to provide advice and recommendations on matters and policies relating to the recruitment and retention, treatment, employment, integration, and well-being of highly qualified professional women in the Armed Forces. Historically, DACOWITS' recommendations have been very instrumental in effecting changes to laws and policies pertaining to military women. Secretary Chuck Hagel was recently quoted as saying, "I have a put a premium on that advisory board."

 

Many of our allied modern militaries have reporting outside of the chain of command, such as Britain, Canada, Israel, Germany, Norway and Australia. For example, the British military has prosecutors making trial decisions for all crimes through the Service Prosecuting Authority (SPA) within Britain's Ministry of Defense. Four allied commanders recently testified to the Response Systems Panel that these changes to their military justice systems had no negative consequences to good order and discipline.

 

Just yesterday, three leading veterans groups -- the Service Women's Action Network (SWAN), Iraq and Afghanistan Veterans of America (IAVA), and Vietnam Veterans of America (VVA) - wrote an open letter calling on Congress to pass this bipartisan measure calling it, "a vote for our troops and a vote for a stronger military."

 

The Military Justice Improvement Act also:

 

  • Provides the offices of the military chiefs of staff with the authority and discretion to establish courts, empanel juries and choose judges to hear cases (i.e. convening authority).

 

  • This legislation does not amend Article 15. Commanding officers will still be able to order non-judicial punishment for lesser offenses not directed to trial by the prosecutors.

 

According to the FY2012 SAPRO report released earlier this year by the Defense Department, an estimated 26,000 cases of sexual assault or unwanted sexual contact occurred in FY2012, a 37% increase from FY2011. This number does not include incidents of sexual harassment. The Pentagon defines unwanted sexual contact as:  "...intentional sexual contact that was against a person's will or occurred when the person did not or could not consent. The term describes completed and attempted oral, anal, and vaginal penetration with any body part or object, and the unwanted touching of genitalia and other sexually related areas of the body."

 

Of the 3,374 total reports in 2012, 2,558 reports were unrestricted, which means they were actionable. Of those unrestricted reports, 27 percent were for rape, 35 percent were for abusive and wrongful sexual contact, and 28 percent were for aggravated sexual assault and sexual assault.  The remaining cases were for aggravated sexual contact, nonconsensual sodomy, indecent assault and attempts to commit those offenses.

 

Also according to the FY2012 SAPRO report, across the Services, 74% of females and 60% of males perceived one or more barriers to reporting sexual assault. 62% of victims who reported a sexual assault indicated they perceived some form of professional, social, and/or administrative retaliation.

The Senators were joined by Ariana Klay, a former Marine officer assigned to the prestigious Marine Barracks Washington, who graduated with honors from the U.S. Naval Academy in 2006 and subsequently served in Iraq, Ben Klay, served on active duty in the Marines from 2003 through 2007, and was a reservist in 2011, and testified to the Senate Armed Services Committee about his expertise on the military's mishandling of sexual offenses based on his time in the Marines, Nancy Duff Campbell, Co-President of the National Women's Law Center, and Brigadier General (Ret.) David L. McGinnis, former Principal Deputy to the Assistant Secretary of Defense for Reserve Affairs, U.S. Department of Defense, appointed by President Obama.

 

The Military Justice Improvement Act is supported by:

·         Iraq and Afghanistan Veterans of America (IAVA)

·         Vietnam Veterans of America (VVA)

·         Service Womens Action Network (SWAN)

·         Protect Our Defenders (POD)

·         National Women's Law Center

·         National Task Force to End Sexual and Domestic Violence Against Women

·         National Alliance to End Sexual Violence

·         National Research Center for Women & Families

·         Jacobs Institute of Women's Health

·         Our Bodies Ourselves

·         International Federation of Professional and Technical Engineers

·         Members of the National Alliance to End Sexual Violence

·         9to5

·         Baha'is of the United States

·         Equal Rights Advocates

·         Evangelical Lutheran Church in America

·         Federally Employed Women

·         Feminist Majority

·         Futures Without Violence

·         General Federation of Women's Clubs

·         GetEqual

·         Girls, Inc.

·         Hindu American Seva Communities

·         Institute for Science and Human Values, Inc.

·         Jewish Women International

·         Joyful Heart Foundation

·         National Capital Union Retirees

·         National Center on Domestic and Sexual Violence

·         National Coalition Against Domestic Violence

·         National Congress of Black Women, Inc

·         National Council of Churches

·         National Council of Jewish Women

·         National Council of Women's Organizations

·         National Organization for Women

·         National Women's Health Network

·         OWL-The Voice of Midlife and Older Women

·         Peaceful Families Project

·         Presbyterian Women in the Presbyterian Church (U.S.A.), Inc.

·         Religious Coalition for Reproductive Choice

·         SPART*A, an LGBT Military Organization

·         The National Congress of American Indians

·         United Church of Christ

·         Justice and Witness Ministries

·         V-Day

·         Woman's National Democratic Club

·         Women's Research & Education Institute

·         YWCA USA

 

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WASHINGTON, DC - In an effort to protect taxpayers, hold corporate wrongdoers accountable, and deter future fraud and abuse, U.S. Senators Jack Reed (D-RI) and Chuck Grassley (R-IA) are introducing legislation to rescind tax write-offs for illegal corporate behavior.  The bipartisan Government Settlement Transparency & Reform Act would close a loophole that has allowed some corporations to reap tax benefits from payments made at government direction stemming from settling misdeeds.

Corporations accused of illegal activity routinely settle legal disputes with the government out of court because it allows both the company and the government to avoid the time, expense, and uncertainty of going to trial.

Federal law prohibits companies from deducting public fines and penalties from their taxable income.  But under current law, offending companies may often write off any portion of a settlement that is not paid directly to the government as a penalty or fine for violation of the law.  This allows some companies to lower their tax bill by claiming settlement payments to non-federal entities as tax deductible business expenses.

The Reed-Grassley bill would require the government and the settling party to reach pre-filing agreements on how the settlement payments should be treated for tax purposes.  The bill clarifies the rules about what settlement payments are punitive and therefore non-deductible and increases transparency by requiring the government to file a return at the time of settlement to accurately reflect the tax treatment of the amounts  that will be paid by the offending party.

"A penalty is supposed to deter others because it causes pain to a company's bottom line.  If a company is paying thousands, millions, or even billions in fines, it shouldn't save money for those same misdeeds, it should be held accountable.  The law needs to change to ensure the punishment fits the crime.  Congress needs to close this settlement loophole," said Reed.

"A penalty should be meaningful or it won't have the deterrent effect it's supposed to have," Grassley said.  "This issue comes up regularly, and this bill would make deductibility clear going forward."

Summary: The Government Settlement Transparency & Reform Act (S. 1654)

Closes tax loophole that allows tax write-offs for corporate violations.

The bill would amend the tax code to deny tax deductions for certain fines, penalties, and other amounts related to a violation or investigation or inquiry into the potential violation of any law.

It amends subsection (f) of Section 162 of the Internal Revenue Code.  Amounts paid by corporations, which constitute restitution for damage caused by the violation of any law are exempted and remain deductible.  This section requires that nongovernmental entities which exercise self-regulatory powers be treated as government entities for purposes of disallowing deductions under this section. The bill requires the government to stipulate the tax treatment of the settlement agreement.

-end-

Tuesday, November 5, 2013

WASHINGTON - The Senate on Monday night unanimously passed legislation to extend whistleblower protection for employees who provide information to the Department of Justice related to criminal antitrust violations. U.S. Senators Patrick Leahy (D-Vt.) and Chuck Grassley (R-Iowa), chairman and ranking member of the Senate Judiciary Committee and coauthors of the Criminal Antitrust Anti-Retaliation Act, applauded the Senate's quick action on the bipartisan measure.

Approval of the bill comes just days after the Judiciary Committee unanimously reported it to the full Senate. Leahy and Grassley joined together last year to introduce the bill, and reintroduced the measure in January.

"I applaud the Senate for quickly passing bipartisan legislation that will improve the enforcement of the antitrust laws to protect consumers," Leahy said in a statement. "The Criminal Antitrust Anti-Retaliation Act makes whole employees who have been fired or discriminated against for blowing the whistle on criminal conduct. I urge the House to act quickly to pass this important bill."

"Current law encourages self-reporting of criminal antitrust activity, yet it doesn't provide any protections for innocent third-parties who blow the whistle on such activity.  Our bill strengthens the enforcement of criminal antitrust laws by adding a civil remedy for antitrust whistleblowers who are retaliated against," Grassley said.  "I appreciate the Senate's quick action on this bipartisan bill."

The bill is based on recommendations from a Government Accountability Office report released July 2011. It allows employees who believe they are victims of retaliation to file complaints with the Secretary of Labor, and provides for those employees to be reinstated to their former status if the Secretary finds in their favor. Leahy and Grassley authored similar whistleblower statutes as part of the Sarbanes-Oxley Act in 2002. A copy of the measure approved by the Senate on Monday can be found online.

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WASHINGTON - Senator Chuck Grassley is among two dozen senators urging the newly confirmed Chairman of the Federal Communications Commission (FCC), Tom Wheeler, to take steps to allow for the continuation of broadband infrastructure investment in rural America.

"It's vital that all Iowans have access to good and reliable communications services," Grassley said.  "In today's economy, opportunities for Iowans and our communities in business, economic development, education, health care and other areas are created by access to robust broadband.  The FCC and Congress should ensure that the service is available to all Iowans, including those in rural areas."

Grassley, along with Senators Jon Tester, John Barrasso, Mark Pryor, Kelly Ayotte, Mark Begich, Deb Fischer, Max Baucus, Tim Johnson, James Inhofe, Robert Casey, Pat Roberts, Mark Udall, Michael Enzi, Jeanne Shaheen, Mike Crapo, Jeff Merkely , Lisa Murkowski, Michael Bennet, Saxby Chambliss, Heidi Heitkamp, Johnny Isakson, James Risch, Jerry Moran, John Hoeven and John Boozman, requested action from the FCC to immediately take steps to re-establish predictability, sufficiency and transparency in the Universal Service Fund program so that the small businesses that serve rural America can resume critical investments in rural broadband.

This letter is following up on other letters Grassley has sent to the FCC regarding this matter, several of which can be found here.

Following is a copy of the text of the letter.  Click here for a signed copy of the letter.

 

November 1, 2013

 

The Honorable Tom Wheeler

Federal Communications Commission

445 12th Street, SW

Washington, DC 20554

 

Dear Chairman Wheeler:

We commend the Federal Communications Commission (FCC) for recently making changes to its 2011 Universal Service Fund (USF) reform order to begin the immediate deployment of broadband to rural areas served by price cap companies.  Additionally, we appreciate the FCC's decision to temporarily relieve the impacts of Quantile Regression Analysis (QRA) on small rate-of-return carriers.  However, we remain concerned the reform order is limiting the ability of small rate-of-return carriers to provide rural consumers with the broadband service they need to compete in today's global economy.

The 2011 USF reform order's lack of predictability is resulting in declining private sector investment in hard-to-reach rural areas, which threatens the long-standing requirements that consumers in rural and high cost areas should have access to telecommunications and information services that are reasonably comparable to those services provided in urban areas.  We urge the Commission to take immediate steps to re-establish predictability, sufficiency and transparency in the USF program so that these small businesses can resume critical investments in rural broadband.  At the same time, we believe this process should neither upset nor slow implementation of Phase II of the Connect America Fund for consumers in areas served by larger carriers.

The Universal Service Fund provides small rate-of-return regulated telecom carriers with support to keep consumer rates affordable in high cost areas.  These small companies use a limited number of public and private loan programs to make long-term capital investments to expand the reach and effectiveness of broadband in hard-to-serve rural areas.  Both potential borrowers and lenders have indicated hesitation in moving forward with loans for broadband infrastructure improvements due to the uncertainties created by the reform order.

One of the main causes of uncertainty is the reform order's Quantile Regression Analysis (QRA) approach to providing high-cost support for rural companies.  A recent analysis by former FCC Chief Economist Simon Wilkie underscores this uncertainty, noting that the QRA caps and redistributes USF support in arbitrary and unpredictable ways, fails to provide incentives for broadband deployment, and generates regulatory uncertainty that is discouraging investment.  While we appreciate the FCC's recent steps to temporarily relieve the impacts of the QRA approach, more must be done to resolve the lingering uncertainty it creates.

The benefits to health, education and economic development from robust broadband infrastructure will be delayed or denied for many rural Americans unless the Commission finds a way to re-establish predictability and transparency in the USF program through re-examination of the QRA approach and other common-sense steps that enable rural carriers to respond to consumer demand for broadband.  We appreciate your attention to this matter, and we look forward to your response.

Sen. Chuck Grassley of Iowa today made the following comment on the announcement that SAC Capital Advisors has agreed to plead guilty to insider trading violations.  Grassley, Ranking Member of the Judiciary Committee, has urged the Securities and Exchange Commission and the Justice Department to crack down on Wall Street wrongdoing.

"According to media reports, the last time a major Wall Street firm entered a guilty plea was 1989.   That makes you wonder what happened to prosecution over the last 24 years.  I'm looking for continued focus on strong prosecution, including admissions of wrongdoing.  Letting up on Wall Street wrong-doers is part of what led to the financial crisis in the first place."

Friday, November 1, 2013

Senator Chuck Grassley made the following comment after U.S. Department of Agriculture Animal and Plant Health Inspection Service released a final comprehensive rule on bovine spongiform encephalopathy (BSE).  The rule had been in the works for several years, but stalled within various agencies of the federal government.

During the delay in publishing a final rule, a number of countries placed non-science based restrictions on U.S. beef imports.  For example, some countries don't allow U.S. beef over 30 months old into their country.  Some of these nations use the fact that the United States had not formally adopted a comprehensive BSE rule to justify their own unfair trade barriers. In February 2012, Grassley led a bipartisan group of senators pressing the administration to issue the comprehensive BSE rule.

Here's Grassley's comment on the final rule.

"Beef producers have been waiting years for the Department of Agriculture to issue the BSE comprehensive rule.  By having this rule in place, the United States can now show leadership around the world and give the U.S. Trade Representative and the Department of Agriculture a stronger position to press other nations to follow the World Organization for Animal Health's guidelines and adopt science-based BSE policies.  When nations base their decisions on sound science, more markets will be expanded or opened to U.S. beef."

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