Government Executive - Authors - Molly M. Peterson

Dems seeking retroactive coverage for hurricane victims

Molly M. Peterson — Mon, 28 Nov 2005 00:00:00 -0500

The proposal would apply to property owners who suffered hurricane flood damage this year but did not have flood insurance policies because their property was not located in federally designated flood areas that are subject to mandatory purchase requirements. To be eligible, those property owners would have to have purchased other types of hazard insurance before Hurricane Katrina struck.

Rep. Gene Taylor, D-Miss., introduced the temporary buy-in proposal in September as a stand-alone bill, and Rep. Melvin Watt, D-N.C., has included similar provisions in a larger hurricane relief package introduced earlier this month. Watt, who chairs the Congressional Black Caucus, also tried to attach the buy-in proposal to a flood insurance overhaul bill during last week's House Financial Services Committee markup.

"These were people who were outside the floodplain," said Watt, whose amendment failed on a 34-32 vote after more than an hour of contentious debate. "There wasn't any reason for these people to buy flood insurance."

The flood program, administered by the Federal Emergency Management Agency, offers low-cost flood insurance to property owners in high-risk areas, provided they take steps to mitigate flood damage. Watt said his amendment was prompted in part by FEMA's announcement that, starting Dec. 1, it would stop subsidizing hotel rooms for hurricane evacuees. He said providing some of those evacuees with retroactive flood insurance would be a "humanitarian gesture."

But Republicans said allowing retroactive coverage for some homeowners would turn the whole concept of insurance on its head. "If we did this, why would anybody buy health insurance? Why would anybody buy auto insurance? Why would anybody buy fire insurance?" said Rep. Jeb Hensarling, R-Texas. "We will rue the day that we did this."

Financial Services Capital Markets Subcommittee Chairman Richard Baker, R-La., agreed that the proposal would set a "difficult" precedent. Baker said it also would lead to an enormous increase in the amount of money that FEMA would have to borrow from the Treasury Department to pay out hurricane-related claims.

"I just don't know that we should go there," Baker said. "I am not opposed to this for any other reason than I do not believe it would be in the best interests of our constituents right now."

The flood program is funded by premiums and does not use taxpayer funds to pay claims or operating expenses. But FEMA is allowed to borrow funds from Treasury -- which it later repays with interest -- to pay catastrophic NFIP claims that exceed the flood program's budget. The House and Senate last week approved emergency legislation to increase FEMA's borrowing authority from $3.5 billion to $18.5 billion to pay claims related to hurricanes Katrina and Rita.

]]>

Panel criticizes FEMA's handling of flood insurance program

Molly M. Peterson — Wed, 19 Oct 2005 00:00:00 -0400

"Regrettably, I have had experience dealing with FEMA and the National Flood Insurance Program over the past two years, and given these interactions, I am very deeply concerned about FEMA's ability to handle not only flood insurance claims, but the other needs of the people affected by Hurricanes Katrina and Rita," Banking ranking member Paul Sarbanes, D-Md., said during a hearing.

David Maurstad, FEMA's acting Mitigation Division director and federal insurance administrator, said NFIP claims resulting from Hurricanes Katrina and Rita could exceed $22 billion, which would surpass the total amount of NFIP claims paid out since the program was created 37 years ago.

"We not only have a legal obligation to honor our commitments, but we have a moral obligation to provide the coverage we've promised to provide," Maurstad said.

But Sarbanes said many Maryland residents are still reeling from the effects of Hurricane Isabel -- which struck in 2003 -- and some have sued FEMA over their flood insurance settlements. "FEMA was clearly overwhelmed then, let alone now," Sarbanes said.

Sarbanes and Banking Economic Policy Subcommittee Chairman Jim Bunning, R-Ky., said FEMA has not implemented several provisions enacted as part of last year's NFIP reauthorization in response to problems that emerged after Isabel. One of those provisions required FEMA to establish, by Dec. 30, 2004, a process for flood insurance policyholders to appeal claims decisions.

Maurstad said FEMA is working "diligently" to implement a formal appeals process, but did not specify when it would be finished.

]]>

Senate bid fails to hike emergency responders funding

David Hatch and Molly M. Peterson — Wed, 14 Sep 2005 00:00:00 -0400

The amendment, offered by Sen. Debbie Stabenow, D-Mich., fell 58-40. It needed 60 votes to secure a waiver to budget rules. A similar amendment failed in July.

"I can't imagine we would send troops into battle overseas and the radios didn't work ... We are in the age of technology, Mr. President. There is no excuse for this," she said, referring to communications failures in the Gulf Coast. "It's our responsibility to make sure that the systems that failed do not fail again."

Senate Budget Chairman Judd Gregg, R-N.H., insisted the amendment was not related to Hurricane Katrina. "The breakdown in communications in the Katrina event was not an interoperability event," he said, insisting that damage to the telecom infrastructure along the Gulf Coast and a lack of electricity to recharge portable phones caused most of the problems. He also noted the spending would go to states unaffected by the hurricane. Gregg said the federal government has spent $2 billion to fix the communication problem.

Meanwhile, in the first congressional hearing to examine the government's response to Hurricane Katrina, former California GOP Gov. Pete Wilson said Congress should strengthen governors' emergency powers to waive state and federal regulations.

"Reinforce the governor's emergency powers to set anything aside -- state and federal statute and regulation -- that stands in the way of quick recovery," Wilson told the Senate Homeland Security and Governmental Affairs panel.

The committee is moving forward with its investigation despite House and Senate Republican leaders' announcement last week that they would establish a bipartisan, bicameral committee to investigate the rescue and response efforts.

Republicans and Democrats are squabbling over the scope and powers of the panel. Sen. Mark Dayton, D-Minn., who criticized the panel for not calling witnesses involved with the relief effort, said any attempt by Bush administration officials to "bypass this committee is unacceptable" and "part of the administration's cover-up."

]]>

Lawmaker working to boost spending bill for border security

Molly M. Peterson — Mon, 13 Jun 2005 00:00:00 -0400

"I think you'll see, within the next three weeks, a commitment made first in the context of the Homeland Security appropriations bill," Cornyn said during a briefing.

Cornyn noted that a growing number of non-Mexicans have been apprehended while trying to enter the United States through Mexico, raising concerns that terrorists could be exploiting vulnerabilities in the southern border.

"At a minimum," addressing that problem is "going to take a tremendous increase in the detention facilities that are available," Cornyn said. "We simply have to deal with that. We have no real credible threat of detention and deportation now for the overwhelming majority of people who come to our country illegally."

Cornyn said Senate Homeland Security Appropriations Subcommittee Chairman Judd Gregg, R-N.H., has indicated he is "willing to pull from other sources of homeland security money to deal with this in a credible fashion."

He said Senate GOP leaders and the White House also are committed to improving border security. "We've been talking with the White House, and I know they are very close to arriving at a comprehensive policy to accomplish not just the president's principles for a temporary worker program, but also address the security issues as well," Cornyn said.

He said he expects the White House to provide a "more comprehensive vision of how all this will work" in the next few weeks.

"What the president has heard from a number of members of Congress who are very interested in seeing his program succeed -- people like me -- is that in order for the American people and Congress to accept the idea of a temporary worker program, it has to be coupled with enhanced security," he said.

Cornyn added that he and Sen. Jon Kyl, R-Ariz., plan to introduce a comprehensive immigration package by July 1. Cornyn said he also plans to re-introduce legislation this year to create a "North American Investment Fund" aimed at boosting economic development in Mexico.

]]>

Ex-TSP chief says private Social Security accounts face steep challenge

Molly M. Peterson — Fri, 06 May 2005 00:00:00 -0400

"The administration's plan for universal [individual accounts] is not feasible and it should not survive the process of responsible congressional hearings," Francis Cavanaugh, who served as executive director of the Federal Retirement Thrift Investment Board from 1986 to 1994, told the House Financial Services Monetary Policy Subcommittee.

Cavanaugh said there are "considerable dissimilarities" between the Bush administration's plan and the Thrift Savings Plan, which is often cited as a model for the proposed Social Security investment accounts.

While only the federal government administers the TSP, Cavanaugh said the Social Security individual account proposal would create administrative burdens for many types of companies, especially small businesses.

"Since most businesses have fewer than 10 employees, they do not have the experience or administrative resources to support the new plan," Cavanaugh said. He also noted the TSP is "balanced to the penny every day," while the Social Security system is never balanced.

Cavanaugh argued diversifying Social Security trust fund investments would be less disruptive to financial markets and yield higher returns than the current system or Bush's plan. He said a trust-fund alternative also would involve less government influence over private companies and save tens of billions of dollars a year in administrative costs.

Financial Services Monetary Policy Subcommittee Chairwoman Deborah Pryce, R-Ohio, said the TSP is a "great start for any discussion on saving Social Security."

]]>

Reducing patent backlog could take years, agency official says

Molly M. Peterson — Tue, 26 Apr 2005 00:00:00 -0400

"The current backlog is about 490,000 applications -- the highest ever," Dudas said during a Senate Judiciary Intellectual Property Subcommittee hearing on overhauling the patent system.

Dudas said PTO has received a record number of patent applications every year for the past 20 years, but did not begin hiring in record numbers until this year.

PTO received $1.6 billion in FY05, $342 million more than it received in FY04. Dudas said PTO is using much of that increase to hire 860 new examiners this year, for a total of about 4,400.

"Three years down the line, four years down the line, the hiring we're doing will have an effect," Dudas said, noting that it takes an average of 28 months for PTO to decide whether to grant a patent. He said for more complex subjects, such as data-processing technologies, the average patent pendency is about three years.

"Without fundamental changes in the way [PTO] operates, the average pendency in these areas could double by 2008," Dudas said.

Judiciary ranking member Patrick Leahy, D-Vt., noted that PTO receives more than 350,000 patent applications annually and approved 187,000 applications in 2004.

"That is more than 500 approved patents every single day, and I think that could be a matter for concern," Leahy said. "When non-innovative inventions are patented, some patent-holders fear they will spend more time litigating than they do innovating."

Leahy said lawmakers should consider modifying the process to allow for patent challenges "before costly, highly technical litigation is required." Judiciary Intellectual Property Subcommittee Chairman Orrin Hatch, R-Utah, said there is a "high degree of agreement" among stakeholders on the need for a post-grant review process.

But Hatch noted that "significant differences remain" on other issues, including whether to change the rules by which patent holders can obtain injunctive relief against patent infringers.

]]>

FCC Chairman Powell announces resignation

Molly M. Peterson and Drew Clark — Fri, 21 Jan 2005 00:00:00 -0500

During his tenure, Powell completed rules regarding telecommunications competition, promoted the transition to digital television, resolved the conflict over interference between police department radios and some cellular phones, and promoted new technologies such as Internet telephony.

Powell also dramatically expanded the amount of spectrum devoted to unlicensed wireless communication, attempted to free cable modem service from tight regulation and stepped up enforcement of laws against "indecent" content on television and radio.

As part of the transition to digital television, the FCC required an anti-piracy technology called the "broadcast flag" and sanctioned other content protection measures on cable television. Powell also attempted to loosen the rules limiting how many media outlets one company could own in any city. But lawmakers have tinkered with the rules and an appellate court has delayed implementation.

His resignation comes at a time when lawmakers and courts are reviewing major telecommunications issues. The FCC's cable modem ruling was overturned by the 9th U.S. Circuit Court of Appeals, but the Supreme Court is reviewing that decision.

Powell started at the FCC as a President Clinton appointee to one of the GOP seats, and President Bush named him chairman. Possible successors include Michael Gallagher, head of the National Telecommunications and Information Administration in the Commerce Department; FCC Commissioner Kevin Martin; Janice Obuchowski, a telecom consultant who served in the Commerce Department under former President George H.W. Bush, and Becky Klein, a former head of the Texas Public Utility Commission who ran unsuccessfully for Congress in 2004.

Rep. Cliff Stearns, R-Fla., who chairs the Trade and Consumer Protection Subcommittee of the House Energy and Commerce Committee, commended Powell's efforts to deregulate the telecommunications industry and crack down on broadcasters who air indecent material. Stearns also lauded Powell's role in relaxing media ownership restrictions.

"It was a difficult job that often made him a target for criticism, but I believe that Chairman Powell's leadership on many of these issues will serve the industry and American consumers very well in the years to come," Stearns said.

Michael Calabrese, vice president and director of spectrum policy at the New America Foundation, said Powell left "one significant positive legacy" by encouraging open access to the public airwaves for high-speed Internet services.

"On most other issues, however, Powell's tenure has radically changed the nation's media and telecom policy direction in ways that damage both our economy and our democracy," Calabrese said.

]]>

Senate orientation will aim to bridge partisan divide

Molly M. Peterson — Fri, 05 Nov 2004 00:00:00 -0500

Although this year's freshman class will change the Senate's political landscape by increasing the GOP majority, its members are gearing up for an orientation they say will place more emphasis on building bipartisan relationships than previous Senate orientations.

Two Senate Republicans and two Democrats are working with leadership to imbue the four-day program with more of a "retreat" atmosphere, according to Senate aides.

"As new members come in, he thinks it's important that they start off on the foot of thinking in terms of working together," said a spokeswoman for Sen. Lamar Alexander, R-Tenn.

Alexander is working with Sens. Thomas Carper, D-Del., Mark Pryor, D-Ark., and George Voinovich, R-Ohio, to organize the program, which begins Sunday, Nov. 14. The orientation will include crash courses on a wide range of subjects, led by as many as 20 "faculty" senators from both sides of the aisle.

The program is designed to create "more of a human element," according to a Carper aide, who said previous freshman orientations have been somewhat dry and technical. "This is basically an effort to try to build bipartisanship from day one -- to build human relationships between new senators and old senators so this place can function in a less partisan atmosphere," Carper's aide said.

The newly elected senators will stay at the same hotel, share meals and ride together to the Capitol each day, according to Carper's aide. Carper plans to stay at that hotel during the orientation program, and several other faculty senators also are considering staying there, the aide added.

The organizers also have discussed assigning two Senate "mentors" -- one Republican and one Democrat -- to each newly elected senator as the orientation draws to a close. "And there's been some talk about doing a retreat with the mentors and the new senators in January, for a day and a half," Carper's aide said.

Noting that Alexander, Carper and Voinovich are former governors and Pryor is a former state attorney general, aides said the four senators are largely modeling this year's program on the freshman orientations typically organized by the National Governors Association and the National Association of Attorneys General.

"NGA works very hard to be a bipartisan institution, and I think that being former governors and having to get things done gives Sen. Alexander and Sen. Carper and Sen. Voinovich a different perspective," Alexander's spokeswoman said.

The spokeswoman noted that Alexander has collaborated with Carper and other Democrats on clean air legislation, a compromise Internet tax bill and other issues. As governor, Alexander also had to bridge partisan differences with a Democrat-controlled state legislature.

"He feels that the intersection of principles is an important part of the process," Alexander's spokeswoman said.

Orientation for new House members begins Nov. 13 in Washington and will continue through the week of the lame duck session. Additionally, the biennial orientation session for new House members hosted in Boston by the Harvard Kennedy School of Government and Institute of Politics is scheduled for Nov. 29-Dec. 2. The Heritage Foundation, which also holds orientation sessions for new members, will hold its retreat in Baltimore Jan. 17-18.

]]>

Federal bank examiners could get new post-employment restrictions

Molly M. Peterson — Tue, 21 Sep 2004 00:00:00 -0400

The Coleman-Levin bill would require senior examiners who retire from their jobs at the Office of the Comptroller of the Currency and other federal banking regulatory agencies to wait at least one year before taking positions at the banks for which they once had oversight responsibility.

House Financial Services Oversight and Investigations ranking member Luis Gutierrez, D-Ill., introduced a similar bill last week. Financial Services Oversight and Investigations Subcommittee Chairwoman Sue Kelly, R-N.Y., is co-sponsoring that bill.

A one-year cooling-off period is among the recommendations included in a staff report Levin issued last July, following the subcommittee's year-long investigation into allegations that Riggs Bank had violated anti-money laundering laws. Comptroller of the Currency John Hawke also has urged lawmakers to enact a one-year cooling off period.

The report raised conflict-of-interest questions about a former OCC examiner who took an executive level job with Riggs shortly after retiring from OCC in 2002.

"Federal bank examiners are our first line of defense against money laundering and terrorist financing at U.S. banks, and we can't allow their independence to be undermined by the lure of a job at the banks they oversee," Levin said last week.

The Coleman-Levin bill falls under the jurisdiction of the Senate Banking Committee, which will examine the proposal as part of its broader inquiry into terrorist financing, according to a committee spokesman.

"We've held quite a few hearings on terror finance, and we think we will hold another couple of hearings prior to adjournment," the spokesman said. "It's a process we're moving through, and this is part of it."

A House aide familiar with the Gutierrez-Kelly bill said that legislation is not identical to the Senate bill, but is meant to cover the same ground. "I think there's a really large group of members who really think this needs to be done now," the House aide said.

The aide added that Gutierrez and Kelly hope to include their legislation in a package of proposals the House Financial Services Committee expects to mark up later this month to implement the recommendations of the 9/11 Commission. The Financial Services Committee also plans to hear testimony from Treasury officials Wednesday on 9/11-related proposals.

"We're having discussions with the [banking] agencies and working with committee staff to make changes and accommodate any concerns they may have," the House aide said of the Gutierrez-Kelly bill. "We're working out the details to make sure it captures the appropriate universe without being overzealous in scope."

]]>

IT groups back temporary patent office user fee boost

Molly M. Peterson — Tue, 14 Sep 2004 00:00:00 -0400

"We feel the movement they've made is incremental, but it's a good step in the right direction," Ralph Hellmann, the Information Technology Industry Council's senior vice president of government relations, said Monday of the PTO appropriations language. Hellmann said Commerce-Justice-State Appropriations Subcommittee Chairman Judd Gregg, R-N.H., is expected to include that language as part of the base text of the spending bill.

The Appropriations Committee is scheduled to mark up the Commerce-Justice-State bill Wednesday. Aides to Gregg and the Appropriations Committee did not immediately return calls seeking comment.

A stand-alone bill approved by the House in March calls for a long-term PTO fee increase and a mechanism to ensure that none of those fees would be diverted to other federal agencies. The Senate Judiciary Committee approved the House-passed bill in April, but the legislation stalled after Senate appropriators raised concerns about the fee provisions.

Supporters have said the bill would enable PTO to fund fully its strategic plan for improving its efficiency and reducing a backlog of hundreds of thousands of pending patent applications.

Hellmann said Gregg's expected compromise language, which would expire at the end of fiscal 2005, is "not ideal," but would help PTO hire additional staff and take other steps to speed up the patent approval process.

"We want a longer term solution, but we can work down the road about how to institutionalize a longer term agreement," Hellmann said. He added that Senate appropriators "understand what we're trying to get at," but they have to operate in "one-year increments."

But two intellectual property organizations last week urged Senate appropriators not to incorporate a PTO fee increase into the spending bill without providing a long-term mechanism to prevent those fees from being channeled to other agencies.

"Our members are willing to support raising fees to fund reforms at the PTO, but we must urge no fee increase unless the increase is accompanied by a long-term solution to fee diversion," Jeffrey Hawley, president of the Intellectual Property Owners Association, and Rick Nydegger, president of the Intellectual Property Law Association, wrote Thursday in a letter to Gregg, Appropriations Chairman Stevens, ranking member Robert Byrd, D-W.Va., and Commerce-Justice-State Appropriations Subcommittee ranking member Ernest (Fritz) Hollings, D-S.C.

Hawley and Nydegger added that limiting a PTO fee increase to one year would "undercut implementation of PTO's 21st Century Strategic Plan and prevent the office from setting in place the basic reforms needed to enhance quality and reduce pendency."

]]>

House chair calls for single anti-money laundering agency

Molly M. Peterson — Thu, 17 Jun 2004 00:00:00 -0400

"To those who resist this proposal, I would hope that there is at least recognition of the need to establish a vigilant watch tower above the vast expanse of bureaucracies that are currently responsible for the Bank Secrecy Act," Kelly said during a hearing on the Treasury Department's operations. "There must be a unifying center to our anti-money laundering efforts."

Dennis Schindel, Treasury's acting inspector general, said audits have revealed gaps in various regulators' monitoring of financial institutions' BSA compliance efforts.

"While it is evident from our work that Treasury takes its responsibilities very seriously, in almost every area we have audited we have identified problems significant enough to impact Treasury's ability to effectively carry out its role in combating terrorist financing and money laundering," Schindel said.

A recent report, for example, found that the Office of the Treasury Secretary was "not aggressive" in taking enforcement actions against thrifts found to be in "substantial noncompliance" with BSA requirements, according to Schindel.

Schindel said other audits have shown that Treasury's Financial Crimes Enforcement Network's database of suspicious activity reports has lacked critical information and contained inaccurate data. Schindel also said FinCEN must take "a more aggressive leadership role" in coordinating financial regulators' anti-money laundering efforts.

FinCEN Director William Fox said his office is establishing an examination program unit and taking other steps to strengthen its role in BSA compliance and improve coordination between agencies.

]]>

White House opposes creating oversight agency for housing enterprises

Molly M. Peterson — Mon, 05 Apr 2004 00:00:00 -0400

"It's not surprising for him at all," the spokesman said, noting that Shelby had raised "grave concerns" about the amendment to the bill's receivership provision but supported it during last week's markup in the interest of moving the bill forward.

"The future of the legislation is uncertain, but he'll continue to work to pass the bill based upon the principles outlined in his original proposal," Shelby's spokesman said.

Treasury Secretary John Snow and Housing and Urban Development Secretary Alphonso Jackson issued a joint statement Friday saying that the administration opposes the bill in its current form.

Shelby's bill would eliminate the Federal Housing Finance Board and HUD's Office of Federal Housing Enterprise Oversight, while creating a new, independent agency to oversee Fannie Mae, Freddie Mac and the Federal Home Loan Banks. The bill also would authorize the agency's director to place any of those GSEs in either a conservatorship or receivership in the event of a financial crisis.

Current law allows the Federal Housing Finance Board to place the Federal Home Loan Banks in receivership, but OFHEO, which oversees Fannie Mae and Freddie Mac, only has conservator powers. The receivership amendment, sponsored by Financial Institutions Subcommittee Chairman Robert Bennett, R-Utah, would give Congress 30 days to intervene in any attempt by the new regulator to place a GSE into receivership. Bennett said his amendment would prevent regulators from moving too aggressively to appoint a receiver to a troubled GSE.

Snow and Jackson said Shelby's bill, as introduced, would have been a "substantial step forward" in strengthening the oversight of the GSEs. "However, an amendment adopted by the committee ... would significantly weaken one of the core powers needed for a strong regulator," Snow and Jackson said. "The amendment could reinforce a false impression that the American taxpayer provides an implicit guarantee to these entities."

Shelby, like the administration, opposes the amendment and hopes to remove it as the bill moves through the Senate, according to Shelby's spokesman. Shelby also plans to hold further hearings on the receivership issue.

"It's a delicate balance, and it's more clear than ever that it's going to be very difficult to attract a consensus," Shelby's spokesman said.

]]>

Chairman says filling vacant SEC jobs has been difficult

Molly M. Peterson — Thu, 01 Apr 2004 00:00:00 -0500

Testifying on President Bush's fiscal 2005 budget request, Donaldson said the SEC currently has 525 vacant staff slots, and about 100 of those positions will be filled by the end of May. He said he expects to fill the remaining 425 vacancies by the end of the current fiscal year.

About 150 of the slots are for attorneys, and about 125 are accountant positions with starting salaries of about $70,000, according to Donaldson. He said a senior-level SEC accountant with 20-25 years' experience could earn an annual salary of more than $186,000.

House Commerce-Justice-State Appropriations Subcommittee Chairman Frank Wolf, R-Va., said he was "shocked" the SEC has not yet found enough "high-quality, capable" people to fill those jobs.

"I'm surprised that you're having trouble," Wolf said. "What you're doing is really exciting, it's important, it's public service, and that's a good salary ... I think there's something wrong, and I'm not really quite sure what it is."

Donaldson said recent salary increases, employee benefit enhancements and other changes have enabled the SEC to retain more employees than it had typically retained before the budget boost. He said the commission's turnover rate has dropped from 8 percent in FY01 to 1.5 percent in fiscal 2003.

"Notwithstanding improvements in retention, we continue to have vacancies," Donaldson said. He said recruiting qualified accountants to fill new jobs at the SEC has been particularly difficult, partly because private-sector accounting jobs in the Washington, D.C., area offer substantially higher salaries. The commission also is seeking accountants with a "very high level of accomplishment," Donaldson said.

"We have refused to hire employees simply to fill chairs, but rather are focused on hiring the best and most appropriate people to fill these important positions and are keenly focused on where each staff person can do the most good," Donaldson said.

In the meantime, the SEC also has increased the number of examiners, supervisors and support staff involved in the oversight of the $7 trillion mutual fund industry, from about 370 staff members to nearly 500.

"With this staffing increase, the SEC has increased the frequency of examinations of [mutual] funds and advisers posing the greatest compliance risks and is conducting more examinations targeted to areas of emerging compliance risk," Donaldson said.

But Wolf noted many people are "knocking down the doors to work for the FBI" and wondered why the SEC has not inspired the same response. "This is not just working on somebody's books," Wolf said. "This is really important stuff."

Wolf asked Donaldson to provide the subcommittee with job descriptions and other information about all the positions the SEC is seeking to fill. "Perhaps we could circulate that [information] and be of some help," Wolf said.

]]>

Bill would create new agency to oversee housing enterprises

Molly M. Peterson — Mon, 29 Mar 2004 00:00:00 -0500

The new agency would have one director, who would serve as chairman of the agency's four-member advisory board. The Treasury and HUD secretaries and Securities and Exchange Commission chairman would serve as the other three board members.

The new agency would have more regulatory power than OFHEO and the Federal Housing Finance Board now have. For example, the director would be authorized to place Fannie Mae, Freddie Mac or the Federal Home Loan Banks in either a conservatorship or receivership in the event of a financial crisis. Current law only gives the GSE regulators conservator powers.

"Receivership provisions will ultimately benefit the capital markets by providing a certain resolution process," Shelby said Friday. "The current law does not provide a clear resolution alternative, creates uncertainty and presents a moral hazard."

The bill would give the new regulator complete discretion over risk-based capital. The legislation would maintain the current 2.5 percent minimum capital standard for Fannie Mae and Freddie Mac but give the director the discretion to temporarily require the GSEs to meet a higher capital standard.

The legislation would prohibit the GSEs from launching new programs without approval from the new agency's director. It also would require the GSEs to provide the director with advanced notice of all plans for offering new products.

If the director determines that any planned product would undermine a GSE's safety and soundness, he could prohibit it from offering the product. But a GSE could offer the product if the director does not raise any objections within 30 days of being notified.

The bill would give the new regulator the same independent funding authority that banking regulators have under current law. The regulator would set its own budget, funded by annual assessments collected from the GSEs, and it would not require approval from Congress.

"I support the mission of Fannie Mae, Freddie Mac and the Federal Home Loan Banks," Shelby said. "My concern is that we must have a framework to ensure that these GSEs also operate in a safe and sound manner."

]]>

Approps, Judiciary panels reach patent fees agreement

Molly M. Peterson — Thu, 12 Feb 2004 00:00:00 -0500

"There are still a few issues to be resolved, but the big issue on this bill always has been the diversion of USPTO fees to unrelated programs," said Herb Wamsley, executive director of the Intellectual Property Owners Association.

House sources confirmed that an agreement had been reached, but declined to offer details. Wamsley, whose group was involved in the negotiations and supports the agreement, said the compromise language would establish a reserve fund for any fees collected by PTO in a given year that exceed Congress' appropriation to PTO for that year. Money in the reserve fund would then be rebated to the companies that paid the fees. But Wamsley said that if an annual PTO appropriation equaled or exceeded the amount of fee money collected by the agency, there would not be any rebates for that year.

"The important thing, in our view, is that we expect that you won't see a rebate every year," Wamsley said. "This rebate system is a way of preventing [fee] diversions, but the users don't want the money back. They just want to make sure all the money goes to the PTO."

Wamsley said the compromise language would be added to the bill as an amendment, most likely by Judiciary Chairman Sensenbrenner, when the PTO bill moved to the floor after the Presidents Day recess.

The compromise language would not affect the bill's modifications to the PTO fee schedule, which Wamsley said would probably increase the agency's fees by an average of 15 to 20 percent. The agreement also does not address concerns raised earlier this week by House Small Business Chairman Donald Manzullo, R-Ill., who told the House Rules Committee he hoped to offer a floor amendment that would freeze PTO fees at present levels for "small entities" -- including not-for-profit organizations such as colleges and universities. Manzullo told the panel that without his amendment, the legislation's revised fee structure would "crush the little guys," especially inventors at colleges and universities that had a limited budget for protecting their intellectual property. The Manzullo amendment prompted House leaders to pull the PTO bill from the floor this week; it had been scheduled for debate Wednesday.

House Judiciary Courts, the Internet and Intellectual Property Subcommittee Chairman Lamar Smith, R-Texas, the bill's chief sponsor, said lawmakers would examine the bill's potential impact on small businesses before it moved to the floor.

"We're taking the session break to iron out the details," Smith said Thursday. "In almost all cases, small businesses pay half as much in fees as large business. Under the proposed legislation, we will continue that precedent. One remaining issue is how much of the increase in fees small businesses will pay."

]]>

Home financing oversight agency warns of effects of budget delays

Molly M. Peterson — Wed, 21 Jan 2004 00:00:00 -0500

"The short-term continuing resolutions we are operating under prevent us from hiring the additional examiners, accountants and analysts we need to strengthen our oversight," Armando Falcon said during a hearing on OFHEO's December report on its special examination of the Freddie Mac accounting scandal.

Falcon said the short-term CRs also have prevented OFHEO from hiring the forensic accounting help it needs for its review of Fannie Mae, and he made an "urgent appeal" for the committee's assistance in obtaining OFHEO's requested 2004 funding levels.

"If a long-term CR is enacted which freezes OFHEO's budget at fiscal 2003 levels, we will need to scale back oversight at the very time that greater oversight has never been more urgent," said Falcon, whose office has entered into a consent agreement with Freddie Mac that requires Freddie Mac to pay $125 million in fines and modify its corporate governance.

Financial Services Committee Chairman Michael Oxley, R-Ohio, said he believes OFHEO is under-funded and "lacks many of the necessary powers" to provide adequate oversight of Freddie Mac and Fannie Mae. "I support additional funding for OFHEO so that it can fully examine the [government-sponsored enterprises] and hire a sufficient number of examiners to monitor these complex financial institutions," Oxley said.

Oxley said he is "encouraged" by Freddie Mac's current remediation efforts, and said many of the recommendations in OFHEO's report should be implemented. But he noted that an outside auditing firm, and not OFHEO, was the first to discover improper trading practices and earnings management at Freddie Mac.

"Director Falcon has presented an in-depth review of Freddie Mac, but the question remains -- where was OFHEO when these improper trades were taking place?" Oxley said.

Financial Services Capital Markets Subcommittee ranking member Paul Kanjorski, D-Pa., said he found it "very disturbing" that OFHEO had not picked up on those irregularities. "I don't know what we do about it, short of having maybe dual auditing or ... a change of auditors periodically," Kanjorski said.

]]>

Fate of omnibus bill unclear as House, Senate plan brief return

Molly M. Peterson and April Fulton — Mon, 01 Dec 2003 00:00:00 -0500

Objections are expected from both sides of the aisle, according to a spokeswoman for Minority Leader Tom Daschle, D-S.D., meaning final action on the remaining seven appropriations bills that were wrapped into the omnibus will be delayed until early next year.

The omnibus bill includes the Transportation-Treasury appropriations bill, which contains language granting white-collar federal employees a 4.1 percent average pay raise in 2004.

There are no scheduled roll call votes in the Senate and it is unlikely efforts will be made to seek agreements on floor time for either class action reform or pension legislation, said a spokeswoman for Senate Majority Leader Bill Frist, R-Tenn. Agreements were made in the waning hours of last week on these two items, but much work remains, aides said.

Frist will be giving a speeches in Tennessee this week, and will also travel to New York to participate in a Christmas charity program, a spokesman said. Daschle will be in New York Tuesday to promote his new book on the "Charlie Rose Show" and Comedy Central's "Daily Show," his spokeswoman said. He will be in South Dakota the rest of the week for book signings and fundraisers.

Besides voting on the omnibus, the House is expected next Monday to cast a final vote on a bipartisan bill to combat unsolicited commercial e-mail, a spokesman for Speaker Dennis Hastert, R-Ill., said Monday. A compromise version of the "Controlling the Assault of Non-Solicited Pornography and Marketing Act" passed the House last month on a 392-5 vote.

The Senate, which had unanimously approved its version of the bill in October, signed off on the House changes last Tuesday. But the Senate made minor technical changes that require another House vote before Congress can send the bill to President Bush, according to a spokeswoman for Senate Commerce Communications Subcommittee Chairman Conrad Burns, R-Mont.

]]>

House leaders asked to referee patent fee fight

Molly M. Peterson — Thu, 13 Nov 2003 00:00:00 -0500

"America is on the verge of a robust and vigorous economic period of growth, but the potential inability of the U.S. Patent and Trademark Office to handle new patents could limit that growth," the lawmakers, all members of the House Republican High-Tech Working Group, told Hastert and Delay.

A spokesman for Hastert said that the speaker had not yet had a chance to comment on the letter. A DeLay spokesman could not be reached for comment Wednesday.

The bipartisan "Patent and Trademark Fee Modernization Act," which the Judiciary Committee approved in July, would raise various PTO user fees by an average of 15 percent. It also would require all PTO funds to be credited to a PTO account within the Treasury Department, while authorizing the PTO director to use all fee revenue for agency operations.

Judiciary Courts, the Internet and Intellectual Property Subcommittee Chairman Lamar Smith, R-Texas, the bill's chief sponsor, said the lawmakers had sent the letter because high-tech companies had indicated that they would not support the legislation unless it included language ensuring that the fees would be used for technology-related purposes within the PTO.

Appropriations Committee leaders oppose that language, because it would eliminate the requirement that congressional appropriators set the agency's funding levels.

"We will encourage our members to vote against the bill," an Appropriations Committee spokesman said Wednesday.

The Appropriations spokesman said the PTO had done "quite well" in terms of budget allocations from the committee, and argued that although the agency generated its own revenue, its budget should not bypass congressional appropriators.

"It's a slippery slope," the spokesman said. "Once you take the PTO off-budget, where do you stop?"

But Ralph Hellmann, the Information Technology Industry Council's senior vice president for government relations, said that, unlike most other federal agencies, the PTO did not receive general Treasury subsidies.

"This is 100 percent funded by the companies who pay the fees," Hellmann said. "We think it's a bit of a different bird."

Smith, who organized the letter to DeLay and Hastert, said supporters of the legislation "hope to reach an agreement with the Appropriations Committee to allow PTO fees to be used for PTO purposes."

Fifteen other House Republicans signed the letter, including Judiciary Chairman John Sensenbrenner, R-Wisc., Energy and Commerce Chairman W.J. "Billy" Tauzin, R-La., Science Chairman Sherwood Boehlert, R-N.Y., Homeland Security Chairman Chris Cox, R-Calif., Government Reform Chairman Tom Davis, R-Va., Rules Chairman David Dreier, R-Calif., Agriculture Chairman Bob Goodlatte, R-Va., International Relations Chairman Henry Hyde, R-Ill., and Resources Chairman Richard Pombo, R-Calif.

]]>

FTC, FCC energized by 'do not call' list appellate ruling

Molly M. Peterson — Wed, 08 Oct 2003 00:00:00 -0400

"With the decision of last night, we can proceed on all cylinders," Muris said, referring to the ruling handed down by the 10th U.S. Circuit Court of Appeals in Denver.

"The team rides again," said FCC Chairman Michael Powell, who joined Muris at a news conference.

Powell cautioned that the registry was "not completely out of the woods" because the appeals court had yet to decide the case on the merits. But Powell said he was becoming increasingly confident that the appeals court, which Tuesday stayed U.S. District Judge Edward Nottingham's injunction blocking implementation of the list, ultimately would overturn Nottingham's decision that the list was unconstitutional.

"I just refuse to believe that the Constitution of the United States shuts down the consumers' ability to protect the sanctity of their homes," Powell said.

Nottingham ruled last month that the list violated telemarketers' free speech rights because it prohibited them from making calls of a commercial nature to consumers who had registered their telephone numbers on the list, but did not bar organizations seeking charitable or political contributions from calling those consumers.

"I think the court's wise decision puts us back in full automated mode again," Powell said of the appeals court ruling. Nottingham's rulings did not preclude the FCC from enforcing its existing rules aimed at protecting consumers from unwanted telemarketing calls. But Muris and Powell have said those rulings would have prevented the FTC from sharing the do-not-call registry directly with the FCC.

The FCC does not yet have access to the FTC's registry database, because the FTC is in the process of reactivating its automated system for sharing the list, according to Muris. "It's not like turning on and off a light," Muris said. "It will take a little while." But very shortly, he said, his agency will able to share the list with the FCC.

Muris noted the appeals court placed the case on an "extremely fast schedule," ordering the FTC to file its opening briefs by Oct. 17 and setting oral arguments for Nov. 10. Muris said he did not expect any other legal developments to block the list again between now and the appeals court's ruling on the merits.

Consumers who have not already added their telephone numbers to the do-not-call list can do so beginning Thursday morning, Muris said. Telemarketers who have not obtained the list can gain access to it beginning Friday morning.

"Telemarketers who already have the list are expected to comply immediately," Muris said. "Those who do not yet have it will be given until Oct. 17 to come into compliance."

]]>

Patent Office chief questioned about alleged lobbying

Molly M. Peterson — Wed, 01 Oct 2003 00:00:00 -0400

"It has come to my attention that some in the USPTO have contacted technology companies and urged these company representatives to lobby the Congress to take the United States Patent and Trademark Office outside the federal budget process, a position the administration opposes," Wolf said in a letter to Rogan. The letter was dated last Thursday, but was sent today, according to an Appropriations Committee spokesman.

Wolf said such a lobbying effort would be "unproductive and divisive as the committee works to support" the administration's fiscal 2004 budget request. In a handwritten note at the bottom of the letter, Wolf also told Rogan: "This is very important. Have you been lobbying companies in opposition to the position of the administration? If so, you are doing wrong."

Officials from the PTO and the House Judiciary Committee were unavailable to comment on the letter.

At issue is a provision in the bipartisan "United States Patent and Trademark Fee Modernization Act," which the Judiciary Committee approved in July. The bill would increase patent user fees by an average of 15 percent, which Wolf said would increase the PTO's fee revenue by $192 million. The legislation also would prevent congressional appropriators from diverting any of the agency's fee revenue to unrelated programs.

Bill sponsors have said the legislation would help to improve patent and trademark quality and reduce application backlogs. Appropriations Committee leaders oppose the section of the bill that would modify PTO funding because it would "strike the requirement" that appropriators determine their funding levels, according to the committee spokesman.

"Basically, the authorizers would set their funding levels, which is a mistake," the spokesman said.

Wolf said the Commerce Department, "with the support" of the Office of Management and Budget, also opposes that section despite its general support for the enactment of fee revisions. "The department cannot support enactment of the bill in its current form because the resultant funding level for the USPTO and the removal of the USPTO from the appropriations process are inconsistent with the president's budget for fiscal 2004," the Commerce Department said in a June 12 letter to the committee, as quoted in Wolf's letter to Rogan.

Noting that appropriators have increased the PTO's budget by more 36 percent since 2000, Wolf also told Rogan that PTO officials have been "unable to provide a detailed justification to the committee on how a proposed fee increase of $192 million ... or the $1.203 billion requested in the president's budget" would be allocated. Wolf asked Rogan to submit that information to the Appropriations Committee by Friday.

]]>

Homeland Security flooded with antiterror tech plans

Molly M. Peterson — Mon, 30 Jun 2003 00:00:00 -0400

The Homeland Security Department has received more than 3,300 responses to last month's solicitation of a wide array of innovative counterterrorism technologies, Homeland Security Secretary Tom Ridge said on Monday.

"There are several million dollars available to the private sector," Ridge said during the first meeting of the department's 18-member Homeland Security Advisory Council. "What we're looking for right now is some off-the-shelf technologies that we may use in a variety of different venues."

The department had set a June 13 deadline for one-page technology proposals, including for contamination detectors, data-management applications and satellite communications tools. Homeland security officials now are evaluating those proposals, according to Charles McQueary, the department's undersecretary for science and technology. McQueary said his division has received an additional 500-plus unsolicited proposals through e-mail.

In order to encourage private-sector innovation, Ridge said the department is planning to establish a "Homeland Security Department award" that would be similar to the Commerce Department's Malcolm Baldrige National Quality Award.

"I think it's very important for us to recognize the quality and the ingenuity in the private sector, as well as best practices," Ridge told the council. He added that the council will be charged with helping the department establish criteria for the award and a review process to select candidates.

Ridge said the council will take various other steps to help the department reach out to the private sector. He also asked for the council's help in developing a homeland security "lexicon" to ensure that all the federal, state, local and private-sector players are "singing off the same song sheet" when they discuss risk management, critical infrastructure and other complex topics.

"Interoperability isn't just communications and equipment," Ridge said. "Interoperability is making sure that everybody understands concepts and definitions, up and down the line."

William Webster, a former director of both the FBI and CIA, said one of the council's "most significant" tasks will be to help the department improve its ability to communicate with state and local government agencies and emergency "first responders."

"We have never ... in our federal system, really addressed that issue, and now we must," said Webster, who is vice chairman of the council.

Former Rep. Lee Hamilton, D-Ind., who now serves as director of the Woodrow Wilson International Center for Scholars, said budget issues will be another key concern for the council. "Are we spending enough money to prepare fire, police, rescue and medical agencies to handle another catastrophic attack? I do not believe that we are," Hamilton said.

A Homeland Security Advisory Council member, he cited a recent estimate by a Council on Foreign Relations task force that the federal government plans to spend $27 billion on first responders over the next five years.

"After talking to a number of my former colleagues on the Hill, I think it's a safe bet that that figure will rise dramatically in the years ahead, and it probably should," Hamilton said.

]]>

E-gov chief urges administration to offer incentives to CIOs

Molly M. Peterson — Tue, 24 Jun 2003 00:00:00 -0400

Bush administration officials must look for ways to prevent federal agencies' chief information officers from "burning out" as they work to improve cybersecurity and address a wide range of other technology issues, the Office of Management and Budget's (OMB) e-government administrator told a House panel on Tuesday.

"We're trying to drive an awful lot of transformation, and these have become some of the most stressful jobs," Mark Forman said during a House Government Reform subcommittee hearing on cybersecurity.

Forman said much of that stress stems from the sweeping management reforms that must be implemented in order to better protect agencies' information systems from cyberattack.

"I'm not quite sure yet how you keep people from burning out, although that is something we're going to have to start looking at more and more," he said.

Rep. Candice Miller, R-Mich., agreed, raising concerns that agencies may be losing a large amount of "institutional knowledge" as their CIOs leave through a "revolving door" for higher paying private-sector jobs.

Forman said the administration has asked Congress for a "performance fund" to give federal CIOs a greater incentive to remain on the job. "I think that will help a tremendous amount," he said.

The administration also is trying to "significantly empower" the CIOs to make a "business case" for how federal IT dollars should be spent, Forman said.

"What really is at the heart of getting the federal government more secure is what we're doing with the infrastructure, networks, telecommunications, the basic computing platforms that we're using," Forman said. "I think we're fine with resources. The challenge is that there is a lot of work, and it takes time."

Pointing to OMB's May 16 report to Congress on federal government information security reform, Forman said federal agencies have made progress in identifying and fixing longstanding problems. He noted that in fiscal 2002, for example, risk assessments had been performed on 65 percent of federal information systems, and 62 percent of federal systems had an "up-to-date security plan."

"But there's much work that remains before we can say IT systems are adequately secured in the federal government," Forman said, noting that more than half of the largest federal agencies have reported at least one "material weakness" related to information security.

Rep. Adam Putnam, R-Fla., chairman of the Technology, Information Policy, Intergovernmental Relations and the Census Subcommittee, said lawmakers share a "bipartisan frustration" over the cybersecurity problems plaguing federal agencies.

"The weaknesses identified are weaknesses that would be significantly reduced if approved procedures and protocols or best practices were actually followed," Putnam said.

He noted, for example, that General Accounting Office audits have found that some federal information systems have never been tested in a production environment, and some agencies have failed to install patches on systems "for months after known vulnerabilities are identified."

"These rudimentary lapses are not acceptable," Putnam said. "While some progress is clearly being made at federal agencies, going from an 'F' to a 'D' isn't saying much."

]]>

House committee orders study of passenger screening system

Molly M. Peterson — Tue, 17 Jun 2003 00:00:00 -0400

"This is a very complicated new system," Minnesota Democrat Martin Olav Sabo said of the Computer Assisted Passenger Pre-screening System II (CAPPS II), which would screen airline passengers' data from various sources and check it against a "no fly" list of suspected terrorists.

Raising concerns that the system could be overly intrusive and mistakenly "red flag" law-abiding travelers, Sabo offered the new CAPPS II provisions during the panel's consideration of a $29.4 billion spending bill for the Homeland Security Department. The Transportation Security Administration within the department is overseeing the CAPPS II effort.

The spending package recommends that TSA spend $1.7 billion on passenger-screening activities, including $35 million for CAPPS II. But Sabo's amendment, which the panel adopted by voice vote, would require the General Accounting Office to extensively review CAPPS II before any of those funds could be spent.

For example, GAO would have to study whether CAPPS, drawing information from government and private databases, could mistakenly identify a significant number of passengers as potential terrorists. GAO also would have to determine that there are "no specific privacy concerns" raised by the technology before congressional appropriators could release the fiscal 2004 funds.

Kentucky Republican Harold Rogers, chairman of the Homeland Security Appropriations Subcommittee, supported Sabo's amendment but said its privacy language is "overly broad" and might have to be modified as the bill makes its way through Congress.

The amendment also would direct the National Academy of Sciences to provide Congress with recommendations, by Dec. 31, 2003, of "practices, procedures, regulations or legislation" that could help ensure that CAPPS II does not adversely affect travelers' privacy and civil liberties. Rogers called the Dec. 31 deadline "unrealistic" and said it probably would have to be modified to give the academy more time to study the CAPPS II system.

]]>

Homeland spending bill approved in closed session

Molly M. Peterson — Thu, 12 Jun 2003 00:00:00 -0400

After a 9-7 party-line vote to close the meeting, the panel approved the spending bill by voice vote, according to a committee spokesman who declined to provide any other information about what occurred during the closed session.

The spokesman said the decision to close the meeting to the public was based on a "longstanding practice" of excluding the public from subcommittee sessions that deal with "sensitive" information, mainly in the areas of defense, energy and water.

But Democrats argued that the homeland security spending provisions did not include any classified or sensitive information.

"The only thing we do when we close a meeting is deny the public [information] that I think they have a right to," said Appropriations ranking member David Obey, D-Wis.

Democrats also charged that the Homeland Security Department has not been forthcoming with information about its activities. Rep. Martin Olav Sabo, D-Minn., said he was "very concerned" about the department's "lack of structure" in providing Congress with "even the most basic information."

Obey said he detected "some kind of arrogance" among Homeland Security officials with regards to sharing information with Congress. "I think they have an obligation to respect the fact that Congress has the power of the purse," Obey said.

The $29.4 billion package approved Thursday would be an increase of more than $1 billion over President Bush's 2004 budget request, and $535 million over 2003 levels, according to Homeland Security Appropriations Subcommittee Chairman Harold Rogers, R-Ky.

Programs for first responders would be funded at $4.4 billion under the bill, which is $888 million more than Bush requested. The legislation also provides nearly $5.2 billion for the Transportation Security Administration, which is a $360 million increase over Bush's request. Another provision would fund border security programs at $9 billion, which is a $400 million increase over 2003 levels.

But Obey said the Coast Guard and many other agencies need more money to protect the nation from terrorist threats. Obey said Democrats had originally planned to offer an amendment adding $500 million to the spending package, including $100 million for Coast Guard activities.

Obey said "substantial incompetence" among Homeland Security Department personnel had prompted him to think twice about offering the amendment. "There is such a legitimate concern about the ability of the agency to use its money effectively ... that I'm hesitant to appropriate one dime," Obey said.

He also complained during the open portion of the meeting that Democrats have been "systematically shut down" in their attempts to offer alternatives to GOP-favored legislation to include more low-income families in the child tax credit. "We've seen this time and time again," Obey said.

]]>

Energy uses tech tools to protect radioactive shipments

Molly M. Peterson — Tue, 10 Jun 2003 00:00:00 -0400

In response to the war on terrorism, the Energy Department's online tools and communications systems for facilitating global and domestic shipments of radioactive materials have expanded over the past couple of years to protect those shipments from potential threats.

"These tools were originally deployed in order to ensure safe and compliant transportation [of radioactive materials]," Steven Hamp, a program manager with Energy's National Transportation Program (NTP), said during a homeland security conference sponsored by E-Gov.

"Now, there's much more emphasis on cost efficiency and security issues," he added. "These same tools that were originally deployed for one reason are now being expanded to address the more common [security] focus of today."

One component of the Automated Transportation Management System, for example, helps Energy officials select the most responsible trucking firms for transporting radioactive materials. "You don't let just anybody transport this," Hamp said, noting that the application originally was designed as an accident-prevention tool. "We didn't want the carriers to have high accident rates."

But now the program includes background checks on all drivers, company histories and ownership, and other security measures. "There's a variety of criteria now that we've implemented ... and that information is accessible [online] at all of our shipping sites," he said.

He added that the satellite-based Transportation Tracking and Communications (TRANSCOM) system also is playing an increasing role in homeland security. That system enables officials to track, on a "near real-time basis," trucks, rails and barges that are toting radioactive materials and are equipped with global positioning systems, according to Hamp.

"There are about 450 trained users for this system across the country, both federal and state," Hamp said. "It's a very effective tool for knowing where a shipment is at any given time, and if there was an emergency, the communications aspect of this system allows a very quick interface with [state and local] first responders."

Hamp said that system, and several other NTP information and communications networks, increasingly are being used as counterterrorism measures.

Noting that Energy makes only about 4,600, or less than 1 percent, of the nation's 3 million annual shipments of radioactive material, Hamp said those tools also are available for use by other shippers.

"All the tools that we use are declassified," Hamp said, adding that many state agencies also use them. "They are open and available for others to review."

]]>