[Senate Hearing 108-1017]
[From the U.S. Government Publishing Office]
S. Hrg. 108-1017
NOMINATIONS TO THE U.S. DEPARTMENT OF
COMMERCE, THE NATIONAL TRANSPORTATION
SAFETY BOARD, THE CONSUMER PRODUCT
SAFETY COMMISSION, THE FEDERAL MARITIME COMMISSION AND THE SAINT
LAWRENCE
SEAWAY DEVELOPMENT CORPORATION
=======================================================================
HEARING
before the
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED EIGHTH CONGRESS
SECOND SESSION
__________
MARCH 30, 2004
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
U.S. GOVERNMENT PUBLISHING OFFICE
00-000 PDF WASHINGTON : 2016
-----------------------------------------------------------------------
For sale by the Superintendent of Documents, U.S. Government Publishing
Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800;
DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC,
Washington, DC 20402-0001
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED EIGHTH CONGRESS
SECOND SESSION
JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska ERNEST F. HOLLINGS, South
CONRAD BURNS, Montana Carolina, Ranking
TRENT LOTT, Mississippi DANIEL K. INOUYE, Hawaii
KAY BAILEY HUTCHISON, Texas JOHN D. ROCKEFELLER IV, West
OLYMPIA J. SNOWE, Maine Virginia
SAM BROWNBACK, Kansas JOHN F. KERRY, Massachusetts
GORDON H. SMITH, Oregon JOHN B. BREAUX, Louisiana
PETER G. FITZGERALD, Illinois BYRON L. DORGAN, North Dakota
JOHN ENSIGN, Nevada RON WYDEN, Oregon
GEORGE ALLEN, Virginia BARBARA BOXER, California
JOHN E. SUNUNU, New Hampshire BILL NELSON, Florida
MARIA CANTWELL, Washington
FRANK R. LAUTENBERG, New Jersey
Jeanne Bumpus, Republican Staff Director and General Counsel
Robert W. Chamberlin, Republican Chief Counsel
Kevin D. Kayes, Democratic Staff Director and Chief Counsel
Gregg Elias, Democratic General Counsel
C O N T E N T S
----------
Page
Hearing held on March 30, 2004................................... 1
Statement of Senator Breaux...................................... 3
Statement of Senator Hollings.................................... 2
Statement of Senator McCain...................................... 1
Statement of Senator Nelson...................................... 4
Letter dated March 29, 2004 to Hon. John McCain and Hon.
Ernest Hollings from Senator Bob Graham, U.S. Senator from
Florida.................................................... 4
Witnesses
Anderson, Hon. A. Paul, Nominated to be a Commissioner, Federal
Maritime Commission............................................ 38
Prepared statement........................................... 39
Biographical information..................................... 40
Brennan, Hon. Joseph E., Nominated to be a Commissioner, Federal
Maritime Commission............................................ 46
Prepared statement........................................... 47
Biographical information..................................... 48
Hersman, Deborah A. P., Nominated to be a Member, National
Transportation Safety Board.................................... 17
Prepared statement........................................... 18
Biographical information..................................... 19
Kassinger, Hon. Theodore W., Nominated to be Deputy Secretary,
U.S. Department of Commerce.................................... 7
Prepared statement........................................... 8
Biographical information..................................... 9
McGregor, Jack E., Nominated to be a Member of the Advisory
Board, Saint Lawrence Seaway Development Corporation........... 54
Prepared statement........................................... 54
Biographical information..................................... 55
Mica, Hon. John L., U.S. Representative from Florida............. 6
Moore, Hon. Thomas H., Nominated to be a Commissioner, U.S.
Consumer Product Safety Commission............................. 25
Letter dated March 26, 2004 to Hon. John McCain from Hal
Stratton, Chairman, U.S. Consumer Product Safety Commission 26
Prepared statement........................................... 28
Biographical information..................................... 31
Shays, Hon. Christopher, U.S. Representative from Connecticut.... 2
Appendix
Commercial Vehicle Safety Alliance, prepared statement........... 70
Rockefeller IV, Hon. John D., U.S. Senator from West Virginia,
prepared statement............................................. 69
Shaw, Jr., Hon. E. Clay, prepared statement...................... 69
NOMINATIONS TO THE
U.S. DEPARTMENT OF COMMERCE,
THE NATIONAL TRANSPORTATION SAFETY
BOARD, THE CONSUMER PRODUCT SAFETY
COMMISSION, THE FEDERAL MARITIME
COMMISSION AND THE SAINT LAWRENCE
SEAWAY DEVELOPMENT CORPORATION
----------
TUESDAY, MARCH 30, 2004
U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 2:35 p.m. in room
SR-253, Russell Senate Office Building, Hon. John McCain,
Chairman of the Committee, presiding.
OPENING STATEMENT OF HON. JOHN McCAIN,
U.S. SENATOR FROM ARIZONA
The Chairman. Good afternoon. The Commerce Committee meets
today to consider the nominations of six individuals who have
been nominated by the President to serve our country in very
important positions.
This Committee takes its advice and consent role very
seriously, and I will note that each of the nominees has
responded in detail to the Committee's request for biographical
and financial data. I've had the opportunity to review your
responses to the Committee questionnaire, and I look forward to
moving your nominations quickly.
We have, appearing before the Committee today: Theodore
Kassinger, to be Deputy Secretary of Commerce; Debbie Hersman,
to be a Member of the National Transportation Safety Board;
Thomas Moore, to be a Commissioner of the Consumer Product
Safety Commission; Paul Anderson and Joseph Brennan, to be
Federal Maritime Commissioners; and Jack McGregor, to be a
Member of the Saint Lawrence Seaway Development Corporation.
I thank the nominees for being here today. I know your
nominations are a great honor and your families are very proud.
Please feel free to introduce any family members who are
present before we begin your remarks.
And Senator Hollings?
Senator Hollings. Thank you, Mr. Chairman. Let me yield to
Congressman Shays. He's busier than I am.
[Laughter.]
The Chairman. Congressman Shays, we welcome----
Mr. Shays. Senator, I'm----
The Chairman. Well, could I just ask Senator Nelson, do you
have any----
Senator Nelson. No, I just----
The Chairman. Thank you.
Congressman Shays, welcome. Thank you for coming.
STATEMENT OF HON. CHRISTOPHER SHAYS,
U.S. REPRESENTATIVE FROM CONNECTICUT
Mr. Shays. Thank you. It's an honor to be here, Senators.
Mr. Chairman, Senator Hollings, distinguished Senators from
Louisiana and Florida, I am grateful for the opportunity to
introduce my good friend and neighbor, Jack McGregor, who has
been nominated by the President to the Advisory Board of the
Saint Lawrence Seaway Development Corporation.
Jack has been a corporate and civic leader in my home town
of Bridgeport, Connecticut, for many years. In his varied and
distinguished career, he has repeatedly broken new ground and
made dreams realities. From founding the Pittsburg Penguins
hockey team and the Bridgeport Bluefish baseball team, to
leading both a major water utility and oil company, to helping
Governor Rowland's transition in Connecticut when he was first
elected, November 1994, to serving as an elected official in
Pennsylvania for two four-year terms as a state senator, Jack
has repeatedly shown himself to be both a skillful leader and
effective team player. Jack McGregor always gets the job done,
and I know he will continue to serve his country as he has
served his community, with extraordinary distinction.
I thank you for your consideration of this very worthy
appointee and my friend, Jack McGregor.
The Chairman. Thank you, Congressman Shays, for coming over
to say some very nice comments about this fine American, and we
thank you for being here. And you're always welcome here,
Congressman Shays.
Mr. Shays. Thank you all.
The Chairman. Thank you.
Could the other nominees join us at the table--which would
be the Honorable Theodore Kassinger, Deborah Hersman, Thomas
Moore, Paul Anderson, Joseph E. Brennan and--Mr. McGregor, if
you would just stay where you are.
And I think that Senator Hollings and then Senator Nelson
would like to make some remarks.
STATEMENT OF HON. ERNEST F. HOLLINGS,
U.S. SENATOR FROM SOUTH CAROLINA
Senator Hollings. Thank you very, very much, Mr. Chairman.
I'd like to, of course, once again----
The Chairman. Senator Breaux, also.
Senator Hollings.--welcome our friend, Governor Brennan.
I'm proud to support, and we all are proud to support his
nomination.
And let me say, an extended word, and not too extended, I
ask that my full statement be included, Mr. Chairman.
The Chairman. Without objection.
Senator Hollings. But Debbie Hersman, she has a bachelor of
arts, political science, and bachelor of arts, international
studies at VPI, a master of science, conflict analysis and
resolution at George Mason, and she has had a graduate degree
in conflict analysis serving on this Committee for the past 5
years.
[Laughter.]
Senator Hollings. She has really been a tremendous
assistance to the Committee. She has taken over the oversight
of truck and bus safety, pipeline safety, hazardous materials,
transportation safety, even assisted on aviation matters, rail,
ports, and trucking. And, most of all, she has led our thinking
and progress on Amtrak. She has more or less been Mrs. Amtrak,
we know, on the Committee, because she's not only advised both
sides--and the distinguished Chairman, who's got a different
view, supposedly, of Amtrak--but she's been objective, and she
has been persistent, and she's stayed up long hours with her
independent thinking, looking at all sides of the issue. And
allowing she not only has got the technological points down
fine, but she's got also the political points. She understands
both, and that's a rare combination, and I couldn't be stronger
in my recommendation for her confirmation.
And I thank the Chairman.
The Chairman. Thank you very much, Senator Hollings, and I
share your very high opinion of Ms. Hersman. We may have had
disagreements, but those disagreements were not uninformed, and
I appreciate the great work she did.
Senator Nelson--or Senator Breaux, would you like to make
any remarks?
STATEMENT OF HON. JOHN B. BREAUX,
U.S. SENATOR FROM LOUISIANA
Senator Breaux. Well, thank you, Mr. Chairman. And I would
make comments about two of our nominees that I've had the
privilege of working with, Thomas Moore, who was on my staff as
a legislative director a long time ago, and then moved on to
government service on the Consumer Products Safety Commission,
and has done a terrific job in that capacity, and in the sense
that he was recognized and appointed, and then reappointed
again, and that speaks of his ability and understanding of the
process. He was appointed first in 1994, then renominated for a
full term in 1996, and he's back with us again and brings a
stability and intelligence to that very important commission
that is so necessary and so needed. So I enthusiastically
support his renomination to that position.
And with regard to Debbie Hersman, I would just say that I
think Senator Hollings has said it all very well. I mean, it's
a person that has worked well with all members of the
Commission--I mean, the Committee, and now will serve as a
member of the Transportation Safety Board. And, you know, some
would say, well, you need someone who's a mechanical engineer,
who knows how to get into the crash site and determine what
happened. And I think that there's more than just that. That's
part of it. But serving on the National Transportation Services
Safety Board also has a requirement that you can understand the
law, understands the Congress, understands how we got where we
are in all these areas. You can always hire engineers to look
at the mechanical failures, but to know the whole total
process, the big picture, if you will, how to interact and be
responsible to the Congress, is something that is incredibly
important, and Debbie obviously brings that ability to this
position. And I enthusiastically support her nomination and
look forward to working with her.
The Chairman. Thank you very much.
Senator Nelson?
STATEMENT OF HON. BILL NELSON,
U.S. SENATOR FROM FLORIDA
Senator Nelson. Thank you, Mr. Chairman.
I'm here to speak for Paul Anderson. I know a number of
you, and you certainly have our support. I had the privilege of
serving in the House with then-Congressman Brennan. And Paul is
a Floridian.
I want to introduce his father. Mr. Anderson, why don't you
stand up and--thank you for coming.
Mr. Chairman, I give, to you and Senator Hollings, a letter
from Senator Graham, also supporting the nominee.
The Chairman. Without objection, it'll be made part of the
record.
Senator Nelson. Thank you.
[The letter referred to follows:]
United States Senate
Washington DC, March 29, 2004
Hon. John McCain,
Chairman,
Senate Committee on Commerce, Science, and Transportation,
Washington, DC.
Hon. Earnest Hollings,
Ranking Member,
Senate Committee on Commerce, Science, and Transportation,
Washington, DC.
Dear Chairman McCain and Ranking Member Hollings:
I am in full support of the nomination of Alan Paul Anderson to be
a Federal Maritime Commissioner. I have known Paul Anderson for almost
20 years and I am sure that he will be an outstanding asset to the
Commission in its efforts to regulate transportation in the oceanborne
commerce of our Nation.
Paul Anderson's professional background, both in the maritime
industry and elsewhere, qualify him to be an effective Commissioner.
Paul worked in Port Everglades, Florida for nine years with Hvide
Marine, a maritime support and transportation business. During his time
with Hvide, Paul was actively involved in marketing and public affairs
and maritime trade associations; he also served as Assistant to Hvide's
Chairman and CEO. Paul's exposure to the business realities of the
maritime industry will be of great value in helping the Commission
execute its mission.
Paul's background also includes significant experience with
government. He gained valuable exposure to the local, state, and
Federal levels of government through his service as the Vice President
for Government Relations at JM Family Enterprises, a diversified
automobile business headquartered in Deerfield Beach, Florida. Paul
also served for several years as a Special Assistant to United States
Senator Paula Hawkins.
Paul has a long record of public service and leadership in the
state of Florida, and has been actively involved in his community for
many years. He has served on numerous boards, including the Broward
Community College Board of Trustees, the Broward Education Foundation,
the Florida Chamber, and the Junior Achievement of South Florida Board
of Directors, as well as on the boards of other charitable
organizations and maritime industry groups.
The mission of the Federal Maritime Commission is to foster and
protect an efficient and nondiscriminatory ocean transportation system.
Alan Paul Anderson will ably fulfill that goal. I support his
nomination without reservation.
Sincerely,
Bob Graham,
Unites States Senator.
Senator Nelson. Maritime issues are not anything new, not
to Paul, going way back to the time that he had served in the
employ of a major shipping company that is located in our
state. And he has been extremely involved in public and
community service, and I can name them all, from the Board of
Governors of the Chamber, and so forth, Florida Tax Watch. It's
been a rather stellar community service record. And that
includes things like the Board of Trustees on one of our
community colleges in Florida, and serving in a statewide
capacity, the Florida Association of Community College
Trustees. And then he gets involved in trying to help out kids
through a statewide public-private partnership, offering
mentoring to high-risk children, at-risk children in Florida.
He's had quite a bit of government experience, formerly as
an assistant to U.S. Senator Paula Hawkins, and then as press
secretary to then Congressman Connie Mack. He is a devoted
sports fan. We both had the privilege of serving on the Orange
Bowl Committee.
And so, Mr. Chairman, I'm very happy to be here and lend a
word on behalf of his nomination.
Thank you.
The Chairman. Thank you very much.
Before we begin our opening statements, I'd like to ask
that each of the members, starting with you, Mr. Moore, would
recognize your family members in the audience so we can thank
them for being here in support of your nominations.
Mr. Moore. Thank you very much, Mr. Chairman. Most of my
family are out of town today, but I would like to thank my
staff, who are here to support me, very much, and I also would
like to thank Commissioner Mary Graul.
The Chairman. Is she here?
Mr. Moore. She's here, yes.
The Chairman. Thank you very much.
Mr. Moore. Yes.
The Chairman. Thank you, Mr. Moore.
Governor Brennan?
Governor Brennan. Mr. Chairman, with me today is my wife
Connie, if she may stand, with my son, Joe, and my young
sister, Mary.
The Chairman. Welcome, Mary. Welcome to the family. Thank
you, sir.
Mr. Kassinger?
Mr. Kassinger. Senator McCain, I'm glad that I'm able to be
joined by my wife Ruth and two of my three daughters, Anna----
The Chairman. Would you stand, please, so we----
Mr. Kassinger.--Anna and Austin.
The Chairman. Congratulations.
Mr. McGregor?
Mr. McGregor. Mr. Chairman, my family is back home in
Connecticut covering for me today.
[Laughter.]
The Chairman. They're not trying to get through that
traffic jam. Ms. Hersman will take care of that for you.
[Laughter.]
The Chairman. Ms. Hersman?
Ms. Hersman. Thank you, Senator McCain. As a staffer, this
was always my favorite part of nomination hearings, and today
is no different. My husband Neil is here with me today, and my
two sons, Taylor----
The Chairman. Would you stand, please?
Ms. Hersman.--and Wilson is announcing himself.
[Laughter.]
Ms. Hersman. My father, Walt, and his wife, Inga Hersman.
The Chairman. Welcome.
Ms. Hersman. My sister, Valerie, and her husband, Cary, and
my husband's family, the Plummers, my in-laws, and my sister-
and brother-in-law.
The Chairman. Would you all please stand? Welcome.
Mr. Anderson?
Mr. Anderson. Thank you, Mr. Chairman. And thank you,
Senator Nelson. He has already introduced my dad, who's here,
but I do want to reintroduce him again today. Perry Anderson,
here from California, is a distinguished veteran and retired
marine officer, and I'm glad to have my dad here for today.
Thank you.
The Chairman. Mr. Anderson, welcome twice----
[Laughter.]
The Chairman.--and thank you for your----
Mr. Anderson. I'd also----
The Chairman.--thank you for your service to our country.
Mr. Anderson. Mr. Chairman, I also recognize my colleagues
that are here, Chairman Steve West, Chairman of the FMC, and
Commissioners Rebecca Dye and Hal Creel, who you all know so
well, and I thank them and the rest of the staff that's here
today.
The Chairman. I thank them for being here.
In no particular order, we'll begin with the Honorable
Theodore Kassinger. And I would like the witnesses to know that
their statements will be made part of the record.
By the way, I saw Congressman Mica. Congressman Mica, would
you like to just come up and sit here? I know you wanted to
introduce one of the nominees. And thank you for coming over.
Please go ahead.
STATEMENT OF HON. JOHN L. MICA,
U.S. REPRESENTATIVE FROM FLORIDA
Mr. Mica. Thank you, Mr. Chairman.
I just came, actually, to speak either for or against Paul
Anderson, whichever would help the most.
[Laughter.]
Mr. Mica. Mr. Chairman, Ranking Member, I've known Paul for
over two decades, and I tell you, I'm so proud of him. He has a
distinguished career, and it started over here as a Senate
staffer, when I was Chief of Staff for Senator Hawkins from
Florida. And he has had a great career in the private sector
and the maritime industry. He's an absolute credit. And I tell
you, if he was my own son today I wouldn't be any prouder. So I
leave him in your good hands.
Thank you.
The Chairman. Thank you very much, Congressman Mica. And
those were very kind words.
Mr. Kassinger, welcome.
STATEMENT OF HON. THEODORE W. KASSINGER, NOMINATED TO BE DEPUTY
SECRETARY, U.S. DEPARTMENT OF COMMERCE
Mr. Kassinger. Thank you, Mr. Chairman, Senator Hollings,
Members of the Committee. I'm honored to appear before you
today as the President's nominee to serve as the Deputy
Secretary of the U.S. Department of Commerce.
I'm grateful to President Bush for providing me this
opportunity to serve the public, and I deeply appreciate the
continued confidence and support shown to me by Secretary
Evans. I wish to thank this Committee, as well, for the
courtesy it has extended to me in my current position and with
respect to this nomination.
The Deputy Secretary of the Commerce Department effectively
serves as the agency's Chief Operating Officer, overseeing the
Department's some 40,000 employees and $6 billion budget. The
Deputy Secretary also acts as the Secretary's advisor and
surrogate, providing additional leadership for the Department's
broad and complex responsibilities and activities. From
internal administration to marine fisheries to international
trade, the census, and various other scientific, technological,
environmental, and economic areas, the Department, every day,
addresses a multitude of important challenges an opportunities.
With the support of the Committee, the talented management team
of the Department, and the Department's hardworking employees,
I am confident that I can continue the good work of former
Deputy Secretary Bodman, and emulate Secretary Evans'
commitment to excellence in our work in all of these areas.
If confirmed by the Senate, I would bring substantial
relevant experience and knowledge to the position of Deputy
Secretary. For the past 3 years, I have been privileged to
serve as the Department's General Counsel. As the agency's
Chief Legal Officer, I have provided legal advice and guidance
to the Secretary and other senior Department officials on the
full range of issues entrusted to the Department. And I have
regularly represented the Department in policymaking councils
within the Administration.
Prior to joining the Department, I practiced law for 16
years, and also served as a staff member of the Senate
Committee on Finance and with two Federal agencies.
I think I, as a result, enjoy good familiarity with the
Commerce Department's operations and programs. I also know that
staying abreast of matters before the Department requires a
willingness to learn something new every day about what we do.
I welcome that challenge and will continue to work hard to
satisfy the high standard of achievement expected by the
President, the Secretary, and this Committee.
During the remainder of this term, the Secretary and I will
maintain the Department's focus on economic growth and job
creation. We will continue, also, to strive to open foreign
markets, to ensure compliance with trade agreements, and to
foster technological innovation, intellectual property
protection, effective export controls, wise stewardship of
natural resources, and sound economic statistics. I look
forward to working with this Committee on these and any other
matters.
Mr. Chairman, before closing, I would like to take this
opportunity to thank you and other Members of this Committee,
especially Senator Hollings, Senator Stevens, and Senator
Snowe, for your help in enacting the NOAA Corps legislation. I
understand the House passed H.R. 2584 last night, clearing the
way for that bill to go to the President and, hopefully, for
NOAA Corps appointments and promotions to resume in the normal
course in the near future. I assure you that we have worked
hard to fix what was a broken system, but I am confident that
with the enactment of H.R. 2584, NOAA Corps will return to
effective operations under much strengthened oversight and
administrative processes.
In conclusion, permit me to reiterate my gratitude for
being asked to serve the public in this new role. I am
especially fortunate to benefit in this endeavor from the
support of my family and friends; most particularly, my family.
Thank you for the opportunity to introduce them.
That concludes my statement. I'd be happy to respond to any
questions.
[The prepared statement and biographical information of Mr.
Kassinger follow:]
Prepared Statement of Hon. Theodore W. Kassinger, Nominee for the
Position of Deputy Secretary, U.S. Department of Commerce
Mr. Chairman, Senator Hollings, and Members of the Committee,
I am honored to appear before you today as the President's nominee
to serve as Deputy Secretary of the U.S. Department of Commerce. I am
grateful to President Bush for providing me this opportunity to serve
the public, and I deeply appreciate the continued confidence and
support shown to me by Secretary Evans. I wish to thank this Committee
as well for the courtesy it has extended to me in my current position
and with respect to this nomination.
The Deputy Secretary of the Department of Commerce effectively
serves as the agency's chief operating officer, overseeing the
Department's nearly 40,000 employees and $6 billion budget. The Deputy
Secretary also acts as the Secretary's advisor and surrogate, providing
additional leadership for the Department's broad and complex
responsibilities and activities. From internal administration to marine
fisheries to international trade, the Census, and various other
scientific, environmental, technological, and economic areas, the
Department addresses every day a multitude of important challenges and
opportunities. With the support of the Committee, the talented
management team at the Department, and the Department's hard-working
employees, I am confident that I can continue the good work of former
Commerce Deputy Secretary Bodman and emulate Secretary Evans'
commitment to excellence in our work in all of these areas.
If confirmed by the Senate, I would bring substantial relevant
experience and knowledge to the position of Deputy Secretary. For the
past three years, I have been privileged to serve as the Department's
General Counsel. As the agency's chief legal officer, I have provided
legal advice and guidance to the Secretary and other senior Commerce
officials on the full range of issues entrusted to the Department, and
I have regularly represented the Department in policy-making councils
within the Administration.
Before joining the Department, I practiced law in the private
sector for nearly 16 years, representing and counseling clients engaged
in a wide variety of international trade regulatory matters and
proceedings, business transactions, litigation, and arbitrations. I
have also had the privilege of serving on the staff of the Senate
Committee on Finance and as an attorney at both the Department of State
and the U.S. International Trade Commission. My public service and
private practice have taught me much about the Department and its
sister Federal agencies and their interactions with the private sector.
While I now enjoy good familiarity with the Commerce Department's
operations and programs, I also know that staying abreast of matters
before the Department requires a willingness to learn something new
every day about what we do. I welcome that challenge and opportunity,
and will continue to work hard to satisfy the high standard of
achievement expected by the President, the Secretary, and this
Committee.
During the remainder of this term, the Secretary and I will
maintain the Department's focus on economic growth and job creation. We
will also continue to strive to open foreign markets, to ensure
compliance with trade agreements, and to foster technological
innovation, intellectual property protection, effective export
controls, wise stewardship of natural resources, and sound economic
statistics. I look forward to working with this Committee on these and
many other matters.
In closing, permit me to reiterate my gratitude for being asked to
serve the public in this new role. I am especially fortunate to benefit
in this endeavor from the support of my family and friends, and most
particularly my wife and my daughters.
Thank you again for this opportunity to appear before you today,
and for your consideration of my nomination.
I would be pleased to respond to any questions you may have.
______
a. biographical information
1. Name: (include any former names or nick names used.) Theodore
William Kassinger (Ted).
2. Position to which nominated: Deputy Secretary of the U. S.
Department of Commerce.
3. Date of nomination: February 26, 2004.
4. Address: (List current place of residence and office addresses.)
Residence: Information not released to the public.
Office: Room 5870, U.S. Department of Commerce, 14th Street and
Constitution Ave. NW, Washington, DC 20230.
5. Date and place of birth: January 26, 1953; Atlanta, GA.
6. Marital status: (include maiden name of wife or husband's name.)
Married--Ruth Good (wife's maiden name)
7. Names and ages of children: (Include stepchildren and children
from previous marriages.)
------------------------------------------------------------------------
Name Age
------------------------------------------------------------------------
Anna L. Kassinger 17
Austen Kassinger 15
Alice C. Kassinger 11
------------------------------------------------------------------------
8. Education: (List secondary and higher education institutions,
dates attended, degree received and date degree granted.)
------------------------------------------------------------------------
Degree
Name of School Dates Attended Date Degree Granted
------------------------------------------------------------------------
University of Georgia September 1975 to J.D. June 1978
June 1978
University of Georgia June 1970-Jnne B.L.A June 1975
1975
Athens (GA) High September 1968- none (skipped senior year)
School June 1970
------------------------------------------------------------------------
9. Employment Record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)
------------------------------------------------------------------------
Title Name of Employer Location Dates Employment
------------------------------------------------------------------------
Law clerk U.S. Dept of HEW Atlanta, GA June 1976-May
1977
Summer Associate Smith, Currie & Atlanta, GA June 1977-August
Hancock 1977
Instructor UGA Business School Athens, GA September 1977-
June 1978
Attorney-Advisor U.S. International Washington, August 1978-April
Trade DC l980
Commission
Attorney-Advisor U.S. Dept. of State Washington, April 1980-
DC October 1981
International U.S. Senate Washington, October 1981-June
Trade Counsel Committee DC 1985
on Finance
Associate (1985- Vinson & Elkins LLP Washington, July 1985-
1989) DC February 2001
Partner (1990-
2001)
Instructor Georgetown Law Washington, January 1987-
Center DC December 1987
Senior Advisor U.S. Dept. of Washington, February 2001-May
to the Commerce DC 2001
Secretary
General Counsel U.S. Dept. of Washington, May 2001 to
Commerce DC present
------------------------------------------------------------------------
10. Government experience: (list any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.) None.
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprieto1, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.)
Vinson & Elkins LLP--Partner (1990-2001)
Ford's Theatre Society--Trustee (1998-2001)
The Concord Hill School--Trustee (1995-2001)
University of Georgia School of Law Board of Visitors (1999-
2001)
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)
District of Columbia Bar
Georgia Bar
American Bar Association
The Nature Conservancy
13. Political affiliations and activities:
(a) List all offices with a political party which you have held
or any public office for which you have been a candidate.
None.
(b) List all memberships and offices held in and services
rendered to all political parties or election committees during
the last 10 years.
Bush-Cheney 2000 Presidential Campaign: Assisted policy
staff of campaign.
Bush/Cheney Presidential Transition: Served as
coordinator of Commerce Department Transition Team.
Dole for President Campaign 1996: Volunteer.
(c) Itemize all political contributions to any individual,
campaign organization, political party, political action
committee, or similar entity of $500 or more for the past 10
years.
------------------------------------------------------------------------
Name Amount
------------------------------------------------------------------------
National Good Government Fund $546
National Good Government Fund $525
Vinson & Elkins Texas PAC $911
Vinson &Elkins Texas PAC $1,000
Vinson & Elkins Texas PAC $2,304
Vinson & Elkins Texas PAC $970
Vinson & Elkins Texas PAC $1,100
Vinson & Elkins Texas PAC $1,465
Vinson & Elkins Texas PAC $1,803
Vinson & Elkins Texas PAC $1,520
Vinson & Elkins Texas PAC $1,668
Dole for President $1,000
George W. Bush Presidential Campaign $1,000
Republican National Committee $1,000
Bush-Cheney Recount Fund $500
------------------------------------------------------------------------
14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)
College Honorary: Gridiron Secret Society, Blue Key, Omicron
Delta Kappa, Senior Superlative. Skipped senior year of high
school to join University Honors Program.
Awarded Law School scholarship.
15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.)
``Antidumping Duty Investigations,'' in Law and Practice of
United States International Trade Regulation, Oceana
Publications (1987, 1989, 1996 update with Rosemary E. Gwynn)
Basic Documents of International Economic Law (chapters on
the GATT Antidumping Code, Subsidies Code, Standards Code, and
Procurement Code), CCH International and Westlaw (1990)
``The Trade Agenda of the 98th Congress,'' Federal Bar News
and Journal (1983)
``Recombinant DNA and Technology Assessment,'' 11 Ga. L.
Rev. 785 (1978) (co-author with Benna Solomon)
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated.
Copies attached. (Not available at time of printing.)
17. Selection:
(a) Do you know why you were chosen for this nomination by the
President?
I believe President Bush determined that my skills and experience
would enable me to perform successfully the responsibilities of Deputy
Secretary.
(b) What do you believe in your background or employment experience
affirmatively qualifies you for this particular appointment?
For the past three years, I have served first as Senior Advisor to
Secretary Evans and then as General Counsel to the Department of
Commerce. In those positions I have worked closely with Secretary
Evans, Deputy Secretary Bodman, and other senior agency officials on
matters involving every part of the Department's varied
responsibilities. I have regularly represented the Department in inter-
agency activities, including policy-making committees operating at the
most senior levels of government. I have also worked successfully with
Members of Congress and Congressional staff on matters involving the
Department. This experience, combined with my prior experience in law
practice and government, provides me with both broad and deep knowledge
of a wide range of the Department's programs as well as public policy
issues that come before the Department. With respect to the management
responsibilities of the Deputy Secretary, I have worked closely with
senior Department officials on management and administrative issues
over the past three years. In addition to managing the Office of the
General Counsel, I also handled substantial administrative
responsibilities for my former law firm, itself a large business
enterprise. I thus believe I have acquired the skills and experience
necessary to carry out the duties of the Deputy Secretary.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations, or business organizations if you
are confirmed by the Senate?
Yes, I did so upon entering government service in 2001. As noted
below, I have maintained assets in a 401(k) pension plan sponsored by
Vinson & Elkins LLP.
2. Do you have any plans, commitments or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, explain. No.
3. Do you have any plans, commitments or agreements after
completing government service to resume employment, affiliation or
practice with your previous employer, business firm, association or
organization? No.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients or customers.
I have maintained assets in a 401(k:) pension plan sponsored by
Vinson & Elkins LLP, consistent with the plan's standard option and the
practice of other former partners.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
I have addressed potential conflicts of interests in an Ethics
Agreement into which I have entered with the Department of Commerce
(copy attached).
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated?
The Commerce Department's ethics officials, together with the
Office of Government Ethics, have advised me of the possible conflicts
of interest that might arise from my prior business arrangements and
current investments. Implementation of the Ethics Agreement will
resolve the potential conflicts that those officials identified. I am
unaware of any other such potential conflict of interest.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat or modification of any legislation or affecting the
administration and execution of law or public policy.
During the course of my law practice prior to 2001, I regularly
represented clients in a variety of administrative proceedings and in
connection with matters pending before or involving consideration by
Federal agencies, including the Departments of Commerce, Treasury,
Defense, and State; the International Trade Commission; and the Office
of the U.S. Trade Representative. These matters included, for example,
antidumping and countervailing duty investigations; other trade law
investigations; export licenses and investigations; economic sanctions
regulations; and regulation of foreign investments. I also participated
in several matters for which my firm or I registered as lobbyists, or
that indirectly related to legislative or rulemaking matters. These
included advocacy concerning customs user fees, the sale of the Naval
Petroleum Reserves, economic sanctions legislation, imports of ammonium
nitrate from Russia, and financial aid to Russia.
From time to time in my capacity as General Counsel, I have
represented the Department of Commerce in testimony before and
discussions with Members of Congress and their staffs concerning
pending legislation and other public policy matters.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.)
I have worked with government ethics counsel to identify potential
conflicts and to address appropriately those conflicts through the
Ethics Agreement (copy attached). I have no trust or other agreements
relevant to these matters. I will continue to act upon the advice of
the Department's ethics counsel to avoid conflicts of interest that
might arise, recusing myself from matters as appropriate.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of the Government Ethics concerning
potential conflicts of interest or any legal impediments to your
serving in this position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
for unprofessional conduct by, or been the subject of a complaint to
any court, administrative agency, professional association,
disciplinary committee, or other professional group? If so, provide
details. No.
2. Have you ever been investigated, arrested, charged or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation or ordinance,
other than a minor traffic offense? If so, provide details. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in interest in an administrative agency
proceeding or civil litigation? If so, provide details.
I have not been an officer of any business. None of the non-profit
corporations for which I previously served as trustee were involved in
such proceedings during my tenure, to my knowledge. During my time as a
partner in Vinson & Elkins LLP, the firm was occasionally involved as a
party in interest in civil litigations, but I was not personally
involved or implicated in any such proceedings.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination. None.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines set by congressional committees for information?
Yes, within the bounds of my authority.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, to include technical experts and career employees with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Please explain how you will review regulations issued by your
department/agency, and work closely with Congress, to ensure that such
regulations comply with the spirit of the laws passed by Congress.
I will instruct the General Counsel and the heads of agencies
within the Department of Commerce to advise me of all regulations that
are economically significant or relate to matters of controversy.
Within the Department of Commerce, the General Counsel serves as
Regulatory Policy Officer and overseer of the Department's regulatory
activities. Having served as the General Counsel, I am well situated to
work with the General Counsel to ensure that the rules issued by the
Department of Commerce comply with both the spirit and letter of the
laws passed by Congress.
5. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. How have your previous professional experience and education
qualifies you for the position for which you have been nominated?
In my position as the General Counsel of the Department of
Commerce, a position I have held for over three years, I have managed
over 250 lawyers who are charged with providing legal advice to all
agencies and bureaus within the Department. This position has provided
me the unusual opportunity to acquire an in-depth knowledge of the
programs and issues of all components of the Department. I have
provided both legal and policy advice to Secretary Evans, Deputy
Secretary Bodman, and to all the various Under Secretaries and
Assistant Secretaries, and have extensive knowledge of all the bureaus
within the Department, including the management challenges faced by
each. I have traveled with Secretary Evans both domestically and
internationally, have engaged in discussions with foreign government
representatives and private sector leaders on a wide variety of topics,
and have assisted in the development of policy on a myriad of sensitive
issues before the Department. Further, before assuming the position of
General Counsel, I practiced law for 16 years with a major
international law firm. That experience exposed me to a wide variety of
transactional and public policy matters, particularly involving
international trade and other commercial matters. I believe these
previous professional experiences qualify me to be Deputy Secretary of
Commerce.
2. Why do you wish to serve in the position for which you have been
nominated?
I continue to support the ideas and vision articulated by President
Bush and Secretary Evans for promoting U.S. commercial interests, for
creating the conditions in which the American economy thrives, and for
exercising wise stewardship of our Nation's natural resources. I wish
to contribute to the success of the Department's mission by continuing
to contribute the knowledge and experience I have gained to public
service.
3. What goals have you established for your first two years in this
position, if confirmed?
Assist Secretary Evans to achieve the goals that he sets.
Continue the great strides made under former Deputy
Secretary Bodman in focusing attention on improving work place
safety and emergency operations plans.
Implement the President's Manufacturing Initiative.
Formulate the budget for Fiscal Year 2006, and work to
obtain enactment of the Fiscal Year 2005 budget.
Ensure prompt and effective implementation of the
reorganization plan for the International Trade Administration,
especially with respect to the new Assistant Secretary for
Manufacturing and Services.
Evaluate the forthcoming recommendations of the Oceans
Commission and initiate appropriate action on those
recommendations.
Continue progress in deploying information technologies to
improve internal Departmental operations and especially to
facilitate public participation in agency rulemaking and grant
issuance processes.
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
I believe that I generally possess the experience and skills that
are necessary to carry out the responsibilities of the Deputy
Secretary. I expect nevertheless to learn much from both my colleagues
among the Department's personnel as well as other Deputy Secretaries
throughout the Executive Branch. I expect to seek their advice and
counsel, and I believe they will be helpful to me in learning my new
job.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when should society's
problems be left to the private sector, and what standards should be
used to determine when a government program is no longer necessary.
The Federal Government is entrusted with defending the national
security and promoting economic security, conducting international
trade and other diplomatic relations with foreign states, defending
individual liberty including rights granted under the Constitution and
Federal laws, and working with state and local governments and the
private sector to provide for the common welfare, including wise
stewardship of the Nation's natural resources. The government has an
important role to play in working with the private sector where
necessary to ensure competitive opportunity, to promote free
enterprise, and to protect public health, safety, and the environment.
Government programs should be established and continually evaluated
based on need, cost effectiveness, and alternative means of
accomplishing the same ends.
6. Describe the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated.
The Department of Commerce has a continuing commitment to creating
conditions for both economic growth and employment opportunity by
promoting innovation, entrepreneurship and competitiveness, and by
serving as responsible stewards of our Nation's natural resources. The
Commerce Department's major programs focus on its partnership with
American businesses in maintaining a prosperous and productive America.
The Department will continue to maintain its record of innovation in
manufacturing, communications, and measurement that has helped sustain
U.S. leadership in the international marketplace.
7. What do you believe to be the top three challenges facing the
department/agency and why?
Three top challenges will be: (1) effecting continual improvement
in the effectiveness and efficiency of the Department's programs in a
time of constrained budgetary resources; (2) adapting the Department's
programs and policy initiatives to address effectively current
challenges posed by the international competitive environment, so that
U.S. businesses and workers will continue to succeed; and (3)
furthering oceans research and effective management of our marine
environment backed by public consensus.
The reasons why these three challenges are particularly important
include, respectively:
(1) Prosecuting the war on terror and providing adequately for the
national defense and homeland security will require hard budgetary
choices and particularly close attention to management of available
funds over the next few years.
(2) Negotiating and implementing effective trade agreements will
continue to form a key part of maintaining U.S. export competitiveness.
At the same time, the government can undertake numerous steps at home
to ensure that U.S. workers and businesses remain the world's most
productive and innovative. The Department has begun to reorganize to
meet these challenges more effectively, but seeking continuous
improvement in its own operations will be essential to meeting the
needs of today's economy.
(3) The forthcoming report of the Oceans Commission should provide
new focus to what we know--and do not know about the oceans, including
competition for uses of our coastal zones and marine resources. Few
subjects are as important or contentious, and a critical task of the
Department in the coming years will be to develop our knowledge of
these issues and collaborative approaches to effective resource
management. For example, the Department has made great strides in the
past three years to move regulation of marine fisheries away from
litigation into more positive, community-accepted, ecosystem-based
management approaches, with tangible success. Nevertheless, pressures
on fishing stocks arising from various natural and human sources
require continued focus on scientific research, public outreach, and
innovative solutions this critical aspect of our oceans resources is to
be managed in a sustainable manner that meets the needs of diverse
stakeholders.
8. In reference to question number six, what factors in your
opinion have kept the department/agency from achieving its missions
over the past several years?
The Department continually makes progress in pursuit of its
missions, and by definition those missions are never completed.
Individual programs within the agency face particular challenges,
however. For example, the expiration of the Export Administration Act
requires the Bureau of Industry and Security to operate under emergency
authority while seeking new authorizing legislation. Expired and
sometimes outdated statutory authorizations in other areas similarly
inhibit optimal implementation of agency programs. Although the
Department has made much progress over the past three years in reducing
litigation, the National Marine Fisheries Service remains the target of
recurrent legal challenges, sometimes resulting in conflicting judicial
mandates.
9. Who are the stakeholders in the work of this agency?
The Commerce Department's mission and programs are directed to the
benefit of all Americans. As a Department first established in 1903
with broad authority to foster, to promote, and to develop the foreign
and domestic commerce and the manufacturing and fishery industries of
the United States, we work with a broad spectrum of commercial
interests in a wide variety of contexts. We also have important
responsibilities in connection with the census, environmental
stewardship, and economic development, and work closely with the States
and local governments on these and a host of other issues.
10. What is the proper relationship between your position, if
confirmed, and the stakeholders identified in question number nine?
The Deputy Secretary is a public servant with the special
responsibility of ensuring that the Department's programs are carried
out and managed in a manner that provides the greatest benefits to the
American public. This responsibility requires a relationship with the
various stakeholders that always keeps the public interest as the
primary guidepost.
11. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices.
(a) What do you believe are your responsibilities, if confirmed, to
ensure that your agency has proper management and accounting controls?
If I am confirmed as Deputy Secretary, it will be my ultimate
responsibility on behalf of Secretary Evans to ensure that the
Department's program managers have instituted robust management and
accounting controls and to hold each manager accountable for his or her
performance.
(b) What experience do you have in managing a large organization?
Prior to arriving at the Commerce Department in 2001, I was a
partner in Vinson & Elkins LLP, a large, multinational law firm with
over 700 lawyers and annual revenues exceeding $300 million. I chaired
and participated in numerous management-related committees; carried out
various individual assignments related to strategic analysis and
planning; and supervised various lawyers and other personnel in the
provision of legal services to clients.
As General Counsel of the Commerce Department since 2001, I have
administered a budget of approximately $30 million and managed over 250
lawyers and 12 office heads covering the diverse legal disciplines
involved in Commerce programs. I have also regularly participated in
personnel, budgetary, and other management decisions involving the
entire Department, working closely with the Secretary, Deputy
Secretary, and Chief Financial Officer in that regard.
12. The Government Performance and Results Act requires all
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.
(a) What benefits, if any, do you see in identifying performance
goals and reporting on your progress in achieving those goals?
Identifying performance goals and reporting on the progress in
achieving them ensures that public resources are devoted to
appropriate, meaningful ends, with accountability for the outcome. At a
time when the potential demand for budget resources often exceeds what
is available, it is critical that we measure the performance of
agencies to ensure that they are accomplishing their goals and that
continued funding of their programs represents the best use of scarce
Federal funds.
(b) What steps could Congress consider taking when an agency fails
to achieve its performance goals? Should these steps include the
elimination, privatization, downsizing or consolidation of departments
and/or programs?
The steps should respond to the reasons why the agency has failed
to achieve its goals. If experience shows that a particular program is
no longer worthwhile or its purpose simply cannot be achieved in a
cost-effective manner, then elimination or restructuring of the
programs may well be warranted. In other cases, Departmental managers
working in cooperation with auditors from the Office of the Inspector
General may be able to devise less radical measures to raise the
performance of a worthwhile program to an acceptable level.
(c) What performance goals do you believe should be applicable to
your personal performance, if confirmed?
The Deputy Secretary's performance should be measured by the
success of the Department in managing its resources in a way that
provides the best opportunity for the Department to carry out its
mission.
13. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
I believe in leading by example, and by encouraging employees to
seek satisfaction in their jobs through learning and accepting
responsibility for serving others well. I am unaware of any employee
complaint ever having been brought against me.
14. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please describe.
Having spent four years on the staff of the Senate Finance
Committee, I have an especially deep respect for the responsibilities
of Members of Congress. I expect to have a professional working
relationship with Congress that is expressed through regular, two way
communication, backed by mutual desire to assist both the Members and
the Department to fulfill their respective duties. During my tenure as
General Counsel, I have made every effort to be responsive to requests
from Members of Congress and their staff.
15. Please explain what you believe to be the proper relationship
between yourself, if confirmed, and the Inspector General of your
department/agency.
The Inspector General performs an invaluable service in helping to
protect the American public's interests and investments in the
Department of Commerce. He possesses an autonomous set of ``eyes and
ears'' within Commerce, and I intend to listen carefully to his advice
about what Commerce needs to do to detect and to prevent fraud, waste
and abuse. As Deputy Secretary, if confirmed, I would also listen
closely to his recommendations about what we need to do to promote
economy, efficiency and effectiveness in the operations of the
Department.
16. In the areas under the department/agency's jurisdiction, what
legislative action(s) should Congress consider as priorities? Please
state your personal views.
In addition to providing appropriations for the Department by the
end of the Fiscal Year, I would urge Congress to reauthorize the
Economic Development Administration and to renew the Export
Administration Act, and to approve new fee legislation for the Patent
and Trademark Office.
17. Within your area of control, will you pledge to develop and
implement a system that allocates discretionary spending in an open
manner through a set affair and objective established criteria? If yes,
please state what steps you intend to take and a time frame for their
implementation. If not, please explain why.
Yes. It is my impression that virtually all policy officials within
the Department already allocate discretionary funding guided by fair
and objective, established criteria, such as are published in notices
of funding availability for grants. Over the past year the Department
has worked to improve the grants award process with measurable success,
and I will continue to support such efforts, including expansion of the
eGrant program that permits applicants to submit much of their
paperwork online.
The Chairman. Thank you, Mr. Kassinger.
Ms. Hersman?
STATEMENT OF DEBORAH A. P. HERSMAN, NOMINATED TO BE A MEMBER,
NATIONAL TRANSPORTATION SAFETY BOARD
Ms. Hersman. Mr. Chairman, Senator Breaux, the rest of the
Members of the Committee, I'd like to begin by thanking you for
your support of my nomination. It's a special privilege for me
to be sitting on this side of the table--and, if I might add, a
little bit scary--after serving the Committee for 5 years.
It's an honor to have the support of Senator Daschle and to
have been nominated by President Bush. I'll do my best to
ensure that the National Transportation Safety Board continues
making transportation safer by learning lessons from every
accident that they investigate.
The NTSB has enjoyed bipartisan support because of their
independence, the quality and dedication of their staff, and
the important contributions that they have made to the
transportation system in this country and around the world.
NTSB recommendations resulted in escape lighting in aircraft
cabins, improved school-bus construction, child safety seats in
automobiles, railroad passenger-car safety improvements, and
fire-resistant materials in aircraft cabins. The tireless work
of the investigators in often difficult conditions has resulted
in recommendations that have ultimately saved thousands of
lives. I look forward to advancing transportation safety if I
am confirmed.
I'd like to say a few words of thanks to my family and
friends. Without their support, I would not be here before you
today. Thank you for allowing me to introduce them earlier,
Senator McCain.
I thought I might mention that my dad is a retired Air
Force general. He was a test pilot and a fighter pilot, and my
love for transportation surely began with him, as I soloed in a
single-engine Piper before I had a driver's license.
My husband, Neil, is the very best thing in my life. He's
my high school sweetheart, and he's a great dad. Often, he has
to do the evening routine with the boys alone, since I'm not
home for dinner most nights. He has always been supportive of
me, and my love for him grows every day.
And now for my work family. I've enjoyed every day of my 12
years as a Congressional staffer. I spent 7 years working in
the House for Congressman Bob Wise, of West Virginia, before
coming to the Senate.
Working for this Committee has truly been an honor. Senator
McCain and Senator Hollings have shared the title of Chairman
over the last few years; and, through their leadership, I
believe that this Committee is one of the best and most
respected in the Congress, with the finest staff, I might add.
[Laughter.]
Ms. Hersman. I have been----
The Chairman. Which is the reason for it all.
[Laughter.]
Ms. Hersman. But, seriously, I have been so fortunate to be
in the presence of titans on a regular basis. Among your ranks
are war heroes, Presidential candidates, great negotiators,
astronauts, Governors, women breaking through glass ceilings,
and even a few comedians and cowboys.
[Laughter.]
Ms. Hersman. My time here has been an absolute education.
My experience has altered my understanding of governance and
politics; but, more than anything, it has shaped my concept of
political courage and leadership.
I'd like to say a few words of thanks to Senator Hollings
for the opportunity to serve as a staffer on this Committee. He
always challenged me to think through issues to ensure that all
sides were understood, and to make decisions that are fair and
right, regardless of the consequences. While his tenure in the
Senate is coming to an end, it's up to all of us that have
worked for him to remember his lessons, to share his vision,
and, when the time comes, to have the courage that is his
trademark.
I also want to thank the rest of the Committee Members and
their staffs for the kindness and respect you're showed me over
the years. In particular, Senator Inouye and Senator Breaux and
their personal offices have treated me as one of their own.
Senator Inouye, I would say, ``mahalo.'' And to Senator Breaux,
``laissez les bon temps rouler.''
[Laughter.]
Ms. Hersman. My friends and colleagues attending this
hearing, both in front of the table and behind me, have been
such a large part of my life for the last 12 years. My time
here will no doubt be the highlight of my career. I'm deeply
grateful to each of you for your professionalism and your
dedication to doing the right thing, but, more importantly, for
your friendship. I will always proudly consider myself a member
of the Senate Commerce Committee family.
Thank you.
[The prepared statement and biographical information of Ms.
Hersman follow:]
Prepared Statement of Deborah A.P. Hersman, Member Designate,
National Transportation Safety Board
Mr. Chairman, Senator Hollings, I would like to begin by thanking
you and the members of this Committee for your support of my
nomination. It is a special privilege for me to be sitting on this side
of the table after serving the Committee for five years. It is an honor
to have the support of Senator Daschle and to have been nominated by
President Bush. I will do my best to ensure that the National
Transportation Safety Board continues making the transportation system
safer by learning lessons from every accident they investigate.
The NTSB has enjoyed bipartisan support because of their
independence, the quality and dedication of their staff, and the
important contributions they have made to the transportation system in
this country and around the world. NTSB recommendations have resulted
in floor level safety escape lighting in aircraft cabins, improved
school bus construction, child safety seats in automobiles, railroad
passenger car safety improvements, and fire resistant materials in
aircraft cabins. The tireless work of the investigators in difficult
conditions has resulted in recommendations that have ultimately saved
thousands of lives.
Transportation continues to be a keystone to the success and the
growth of our Nation. The Department of Transportation projects
tremendous growth in all areas of transportation The growth in
enplanements is projected to grow an average of 3.6 percent annually
during the next 12 years, with the number of large carrier domestic
enplanements reaching 738.4 million in 2015. The general aviation
active fleet is expected to grow by 35,000 aircraft in the next 15
years. Domestic tonnage of freight carried by all U.S. freight systems
will increase by 67 percent while international trade will nearly
double. Highway traffic will see increased users as the population
grows and heavier trucks will travel greater distances; railroad
mileage will double in the same time period and ocean-going vessel
tonnage will increase by 30 percent.
The exponential growth of traffic on all modes is important to our
Nation's economy, but safety must continue to be paramount to effective
utilization of the transportation system. The demands on capacity
facing our transportation system means a greater demand on the
resources of the Board as accidents become more complex and technical
in nature. For over 35 years, the work of the Board has made the
Nation's transportation system safer, but the impact of important
improvements in transportation safety also benefits the Nation's
economic health and the quality of life of all of our citizens.
I am very excited about the new opportunities ahead of me. The
chance to continue my public service in the field of transportation is
a gift. My work writing transportation legislation has been incredibly
rewarding, and I look forward to continuing to advance transportation
safety through the complimentary work of the Board.
I would like to say a few words of thanks to my family and friends,
without their support I would not be here before you today. My father,
Walt Hersman, and his wife, Inge, are here today. Dad is a retired Air
Force General, he was a test pilot and fighter pilot, and his career
afforded me the rare opportunity to grow up around the globe. My love
for transportation surely began with him, as I soloed in a twin engine
Piper at the age of 16, before I even had a driver's license. My
sister, Val, is my best friend, and she and her husband, Carey, are the
two people in this world that I can always count on. My husband's
family is here today as well. I couldn't have been more blessed than to
marry into the Plummer family, they are incredible people. My husband
Niel, is surely the very best thing in my life. He is my high school
sweetheart and every day I thank my lucky stars that we found each
other. We have two boys, Taylor and Wilson, and he is a great dad,
especially since I am not home for dinner many nights. He has always
been supportive of me and my love and respect for him grow every day.
Now, for my work family, I have enjoyed every day of my 12 years as
a Congressional staffer. I spent 7 great years working for Bob Wise of
West Virginia, he is a fine man and one of the most dedicated public
officials I have had the privilege of working with. I learned much from
him and my formative political years were spent studying his example.
Working for this Committee has truly been an honor. I believe that
this is one of the best and most respected Committees in Congress, and
with the finest staff. I have been fortunate to be in the presence of
titans on a regular basis. Whether it is has been high profile national
policy issues or parliamentary process, my time here has been an
absolute education. My experience has altered my understanding of
governance and politics, but more than anything, it has shaped my
concept of political courage and leadership.
Senator Hollings, I would like to thank you for the opportunity to
work for you on the Committee. You have always challenged me to think
through issues to ensure that all sides are understood, and to make
decisions that are fair and right, regardless of the consequences.
While your tenure in the Senate is coming to an end, it is up all of us
that have worked for you, to remember your lessons, share your vision,
and, when the time comes, have the courage that is your trademark.
I also want to thank the rest of the Committee members and their
staffs for all of the kindness and respect you have shown me over the
years. In particular, Senator Inouye and Senator Breaux and their
personal offices have treated me as one of their own--``mahalo'' and
``laissez les bon temps rouler'' respectively. Laysay le bon ton roulay
My friends and colleagues in front of me and behind me have been
such a large part of my life for the last 12 years. My time here will
no doubt be the highlight of my career. I'm deeply grateful to each of
you for your professionalism and your dedication to doing the right
thing, but most importantly, for your friendship and for allowing me to
be a part of your lives. I will always proudly consider myself a member
of the Senate Commerce Committee family.
Thank you.
______
a. biographical information
1. Name: (include any former names or nick names used.) Deborah
Anne Plummer Hersman (Debbie).
2. Position to which nominated: National Transportation Safety
Board.
3. Date of nomination: March 2, 2004.
4. Address: (List current place of residence and office addresses.)
Residence: Information not released to the public.
Office: 516 Dirksen Senate Office Building, Washington, DC
20510.
5. Date and place of birth: 05/07/1970; Edwards Air Force Base,
California.
6. Marital status: (include maiden name of wife or husband's name.)
Married to Philip Niel Plummer.
7. Names and ages of children: (Include stepchildren and children
from previous marriages.)
Taylor Niel Plummer, 3\1/2\, and Wilson Stephen Plummer, 1\1/2\
8. Education:
Secondary: Graduated in 1988 from Chantilly High School, Chantilly,
Virginia; Graduated from Virginia Tech, Blacksburg, VA, B.A. in
Political Science 1992 and B.A. in International Studies 1992;Graduated
from George Mason University, Fairfax, VA, M.S. in Conflict Analysis
and Resolution 1999.
9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates, of employment.)
D.C. Staff Director (1995 to 1999), Legislative Aide/Office
Manager (July 1993-1995), Legislative Correspondent (Dec. 1992
to July 1993), Scheduler (Aug. to Dec. 1992); Congressman Bob
Wise (D-WV), U.S. House of Representatives, 2167 Rayburn House
Office Building, Washington, DC 20515.
Senior Democratic Professional Staff, U.S. Senate, Committee on
Commerce, Science and Transportation, 516 Dirksen Senate Office
Building, Washington, DC 20510, 1999 to present.
10. Government experience:(List any advisory, consultative,
honorary or other part-time, service or positions with Federal, State,
or local governments, other than those listed above.)
Area Plans Review Task Force, Fairfax County, Virginia 2002
(appointed to a citizen panel to review local planning and zoning
applications and changes to the county comprehensive plan)
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.) None.
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)
College: Alpha Delta Pi Sorority, various positions; National
Residence Hall Honorary; Omnicron Delta Theta, National
Leadership Honorary; Phi Alpha Delta (pre-law fraternity), Vice
President.
Current: President, Southpointe Homeowners Association, Lorton,
Virginia.
13. Political affiliations and activities:
(a) List all offices with a political party which you have held
or any public office for which you have been a candidate.
None
(b) List all memberships and offices held in and services
rendered to all political parties or election committees during
the last 10 years.
Supported the election of Robert E. Wise to become
Governor of West Virginia by hosting a fundraiser.
(c) Itemize all political contributions to any individual,
campaign organization, political party, political action
committee, or similar entity of $500 or more for the past 10
years.
None.
14. Honors and awards:(List all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals. and any other
special recognitions for outstanding service or achievements.) None.
15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.) None.
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated.
None available. In the last 5 years, I have participated on panels
or given speeches to various transportation groups. Such presentations
have focused on a wide range of topics, from transportation safety to
passenger and freight transportation policy. It has been my practice
not to speak from a formal, typed text.
17. Selection:
(a) Do you know why you were selected for the position to which you
have been nominated by the President?
I believe I was chosen because of my experience in the areas of
transportation policy and safety. For over 10 years, I have been
involved in the regulation and oversight of the Nation's transportation
industries. In particular, I have been involved in drafting
transportation safety legislation for surface modes, including the
following laws: the Motor Carrier Safety Improvement Act of 1999 (P.L.
106-159) that created a new truck safety administration within the
Department of Transportation, the Pipeline Safety Improvement Act of
2002 (P.L. 107-355), and the Transportation Equity Act of the 21st
Century (P.L. 105-178)
(b) What in your background or employment experience do you believe
affirmatively qualifies you for this particular appointment?
Again, in addition to my experience in the areas of transportation
safety and policy, I believe that my experience as a Congressional
staffer affirmatively qualifies me for this appointment because I have
worked with the staff and members of NTSB and the Department of
Transportation for a number of years. I also understand how the work
that the NTSB performs impacts the legislative process as well as the
regulatory process and in turn how that improves the safety of our
transportation system. Finally, as a public servant, I understand the
importance of involving stakeholders in the process, having complete
and factual information, and communicating with the public.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations, or business organizations if you
are confirmed by the Senate? Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, please explain. No.
3. Do you have any plans, commitments, or agreements after
completing government service to resume employment, affiliation, or
practice with your previous employer, business firm, association, or
organization? No.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers. None.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
My husband is employed by Lockheed Martin. If Lockheed Martin is a
party to an accident investigation, I have agreed to recuse myself.
(See attached letter to William C. Love, Designated Agency Ethics
Official, NTSB.)
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent; that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated. None.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy.
I have been actively involved in the legislative process over the
last 10 years as a condition of my employment with the Senate Commerce
Committee from 1999 to present, and as a staffer for Rep. Robert E.
Wise from 1992-1999.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.)
See attached letter to William C. Love, Designated Agency Ethics
Official, NTSB.
6. Do you agree to. have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain. No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than for a minor traffic offense? If so, please explain. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain. No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain. No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination.
To the best of my knowledge, there is no further information that
should be disclosed in connection with my nomination.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees?
Yes, to the best of my abilities.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for: their testimony and disclosures?
Yes, to the best of my abilities.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee?
Yes, to the best of my abilities.
4. Please explain how if confirmed, you will review regulations
issued by your department/agency, and work closely with Congress, to
ensure that such regulations comply--with the spirit of the laws passed
by Congress.
The NTSB does not regulate transportation equipment, personnel, or
operations, and the rules it issues are primarily procedural. If any
concerns are raised by the Congress regarding NTSB's compliance with
the spirit of laws passed by Congress, I will, if confirmed, work with
my colleagues at the Board to address those concerns.
5. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. How does your previous professional experiences and education
qualify you for the position for which you have been nominated?
For over ten years, I have worked in the field of transportation
legislation. My jobs, and in particular, my current position, have
provided me a unique opportunity to focus on transportation safety
matters. I have worked with all parties expressing an interest in
safety legislation, including industry, labor, safety advocates,
Department of Transportation officials, safety experts, and the members
and staff of the National Transportation Safety Board (NTSB). This
exposure to the substance of the issues as well as an understanding of
the responsibilities and the effectiveness of the NTSB have provided an
excellent foundation to build on should 1 be confirmed to the position
for which I have been nominated.
2. Why do you wish to serve in the position for which you have been
nominated?
I wish to continue my chosen career in public service and work in
the field of transportation safety.
3. What goals have you established for your first two years in this
position, if confirmed?
My goals for my first two years in this position, if confirmed,
are: (1) to serve the agency and taxpayers well by being accessible and
providing accurate and timely information to the public, and (2) to
identify any areas that may produce safety benefits but have been
neglected due to lack of resources, interest, or time and work to
address those safety areas.
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
Most of my experience has been focused in the field of surface
transportation safety. Although I have been involved in aviation
matters, I would like to acquire a greater understanding of the
aviation safety issues facing the NTSB. If confirmed, I will work with
the staff at the NTSB, the Congress, and outside experts to become more
familiar with the relevant aviation issues.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when society's problems
should be left to the private sector, and what standards should be used
to determine when a government program is no longer necessary.
The government fills a critical role in our society by setting
standards. With respect to transportation safety and the private
sector, the government's role is to establish a safety net for the
public. Without Federal involvement there would likely be wide swings
in the levels of safety from one company to another that may not be
discovered until an accident occurs. Through the legislative process,
recommendations by the NTSB, public education, and other efforts, the
transportation system becomes safer every year. Regarding the standards
that should be used to determine when a government program is no longer
necessary, I believe that common sense and feedback from the public,
including the affected parties and Congress, would serve as good
indications of the relevance of any federal initiative.
6. Describe the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated.
I understand the mission and major operational objectives of the
NTSB to be the following: (1) to investigate and identify the probable
cause(s) of transportation accidents, (2) to make recommendations to
improve the safety of the transportation system, and (3) to serve as
the ``court of appeals'' for any airman, mechanic, or mariner when
certificate action is taken by the Federal Aviation Administration
(FAA) or the Commandant of the United States Coast Guard, when certain
civil penalties are assessed by the FAA.
7. What do you believe to be the top three challenges facing the
department/agency and why?
I believe the top three challenges facing the NTSB are: (1) timely
completion of accident investigations due to resource constraints, (2)
maintaining a quality workforce as the experienced, qualified
individuals retire; and (3) having an impact on the safety culture of
the transportation industry despite having no substantive regulatory
authority.
8. In reference to question number six, what factors in your
opinion have kept the department/agency from achieving its missions
over the past several years?
In my opinion the NTSB has generally achieved its goals. However
per my response in question seven, the timely completion of accident
investigation reports is critical. If more than two years have elapsed
between the accident and the report, the delay may serve as a
distraction from the quality of the work and the implementation of any
pertinent safety recommendations pending the outcome of the formal
findings.
9. Who are the stakeholders in the work of this department/agency?
The public, the transportation industry and its employees, federal
and state agencies, standard setting organizations, and the Congress.
10. What is the proper relationship between the position to which
you have been nominated, and the stakeholders identified in question
number nine?
An open, honest, but yet an unbiased relationship is appropriate
between the stakeholders and the position to which I have been
nominated.
11. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices.
(a) What do you believe are your responsibilities, if confirmed, to
ensure that your department/agency has proper management and accounting
controls?
It is my understanding that the Chairman is the chief executive and
administrative officer of the NTSB. To the extent that I will have
responsibility for financial management practices, I will seek to
ensure the accuracy, integrity, and accountability of the NTSB's
financial system(s).
(b) What experience do you have in managing a large organization?
I do not have experience managing an organization the size of the
NTSB. However I managed the budget and staff of Representative Wise's
office for four years. To the best of my knowledge, during that time,
all accounts were handled in a timely manner and all year-end office
and mail budgets were closed within their established allotments.
Systems of accountability were established for employees and
evaluations of staff were completed twice a year.
12. The Government Performance and Results Act requires all
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.
(a) What benefits, if any, do you see in identifying performance
goals and reporting on progress in achieving those goals?
It allows the reporting organization to conduct a self-assessment.
It also allows the Congress and other interested organizations to
evaluate the appropriateness of the performance goals that have been
set and the success in achieving these goals.
(b) What steps should Congress consider taking when a department/
agency fails to achieve its performance goals? Should these steps
include the elimination, privatization, downsizing, or consolidation of
departments and/or programs?
The steps that Congress should take with respect to the failure to
achieve the performance goals should be commensurate with the scope and
the causes of such failure.
(c) What performance goals do you believe should be applicable to
your personal performance, if confirmed?
If confirmed, my personal performance should be measured by my
integrity, capability, and contribution to the safety mission of the
NTSB.
13. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
My philosophy of supervisor/employee relationships is to hire
talented people, let them know what is expected and make myself
available and accessible. If problems arise, I try to identify them
immediately and communicate expectations. I know of no employee
complaints brought against me.
14. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please explain.
I believe my relationship with the Congress is good. I have spent
my professional career working in a bipartisan manner with the Members
and staff of the House and Senate on transportation safety matters.
15. Please explain what you believe to be the proper relationship
between yourself; if confirmed, and the Inspector General of your
department/agency.
I understand that the NTSB does not have its own IG, but often
interacts with the Department of Transportation Inspector General's
office. I expect my relationship, if confirmed, with the DOT IG and his
staff to be honest and open.
16. In the areas under the department/agency's jurisdiction to
which you have been nominated, what legislative action(s) should
Congress consider as priorities? Please state your personal views.
The NTSB has established a most wanted list of their top safety
recommendations. I would recommend that the Congress continue to
consider those recommendations as priorities for legislative oversight.
17. Within your area of control, will you pledge to develop and
implement a system that allocates discretionary spending in an open
manner through a set of fair and objective established criteria? If
yes, please explain what steps you intend to take and a time frame for
their implementation. If not, please explain why.
Yes. Although I am familiar with the general expenditures of the
NTSB, it is my understanding that most of the spending is for staff
salaries and travel costs. I am not familiar with the specific
financial obligations of the NTSB, but will work to comply with the
intent of the Committee's question.
Attachment
Deborah A. Hersman
March 12, 2004
William C. Love,
Designated Agency Ethics Official,
National Transportation Safety Board,
Washington, DC.
Dear Mr. Love:
The purpose of this letter is to describe the steps that I will
take to avoid any actual or apparent conflict of interest in the event
that I am confirmed for the position of Member of the National
Transportation Safety Board (NTSB).
As required by 18 U.S.C. Sec. 208(a), I will not participate
personally and substantially in any particular matter that has a direct
and predictable effect on my financial interests or those of any other
person whose interests ore imputed to me, unless I first obtain a
written waiver, pursuant to section 18 U.S.C. Sec. 208(b)(1),or qualify
for a regulatory exemption, pursuant to section 18 U.S.C.
Sec. 208(b)(2). I understand that the interests of my spouse; minor
children; any general partner of mine; any organization in which I
serve as officer, director, trustee, general partner or employee; and
any person or organization with which I am negotiating or hove an
arrangement concerning prospective employment are imputed to me.
My spouse is an employee of Lockheed Martin (Lockheed). He works as
a systems engineer for the Lockheed web technology group that provides
system development and operational maintenance support by which
Lockheed satisfies the worldwide imagery requirements of. its
governmental and nongovernmental customers. He does not work with
commercial or civil aeronautics. Through his employment, my spouse has
a financial interest in Lockheed, which includes Lockheed stock in his
401(k) retirement investment account. My spouse's financial interest in
Lockheed, for conflict of interest purposes, is imputed to me.
While Lockheed is known as a manufacturer of aeronautical equipment
and systems, the equipment and systems ore largely employed in aircraft
and aviation equipment operated in military, not commercial, civil
aviation applications. However, divisions or offices of Lockheed, in
which my spouse is not employed, work with and provide systems and
equipment that may be employed in civil/public transportation. Although
not a complete categorization or itemization of its products and
services, Lockheed, for example, works with: (1) air traffic control
and management systems; (2) air traffic management and air terminal
management systems; (3) air traffic radar systems; and (4) weather
sensor programs for the Federal Aviation Administration and a range of
foreign and local facilities. Lockheed also provides, through its
aircraft and logistic centers, aircraft maintenance, modification and
upgrades for military aircraft and limited work with commercial
aircraft. With regard to other modes of transportation, the Lockheed
rail systems division is developing positive train control systems'
technology intended for use in passenger and freight trains while
another Lockheed division provides marine vessel traffic management
systems.
Accordingly, so long as my spouse retains ownership of stock in
Lockheed, as required by 18 U.S.C. Sec. 208(a), I will not participate
personally and substantially in a particular matter that will have a
direct and predictable effect on Lockheed unless I first obtain a
written waiver. pursuant to section 18 U.S.C. Sec. 208(b)(1), or
qualify for a regulatory exemption, pursuant to 18 U.S.C.
Sec. 208(b)(2). In the event my spouse divests his stock in Lockheed
but continues to be an employee of Lockheed, pursuant to C.F.R.
Sec. 2635.502, I will not participate in any particular matter before
the Board involving specific parties in which Lockheed is or represents
a party, unless I am authorized to participate.
Sincerely,
Deborah A. Hersman.
The Chairman. Thank you very much, Ms. Hersman. I share
your admiration and appreciation for Senator Hollings, who has
really done a magnificent job, and I know the people of South
Carolina, as well as around the nation, are very grateful for
his service. We'll miss him very much.
Commissioner Moore? And would you pull the microphone close
to you so that the stenographer----
STATEMENT OF HON. THOMAS H. MOORE,
NOMINATED TO BE A COMMISSIONER,
U.S. CONSUMER PRODUCT SAFETY COMMISSION
Mr. Moore. I would like to offer, for the record, Mr.
Chairman, a copy of a letter of support from the Chairman of
our agency, Hal Stratton. Chairman Stratton, would be here in
support of my confirmation, but he's in China, on agency
business. But I have a copy of a letter here that he has made
available.
The Chairman. We'll put that in the record.
Mr. Moore. Thank you very much.
The Chairman. Thank you.
Mr. Moore. Thank you very much.
[The letter referred to follows:]
U.S. Consumer Product Safety Commission
Washington, DC, March 26, 2004
Hon. John McCain,
Chairman,
Committee on Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Dear Mr. Chairman:
On Tuesday, March 30, 2004, the Committee is scheduled to consider
Commissioner Thomas Moore for renomination to the U.S. Consumer Product
Safety Commission (CPSC). Regretfully, I am in China on Commission
business that day and will not be able to join my colleague on Capitol
Hill for his hearing. However, I would like to take this opportunity to
write in support of Commissioner Moore and to commend to you his record
of accomplishment at the CPSC.
I have worked with Commissioner Moore for nearly two years since my
appointment as Chairman of the Commission. He served as Acting Chairman
during the interim between the previous Chair and myself, and it was
under his leadership that the CSPC continued to maintain its vital
product safety and compliance functions.
With over eight years of experience in protecting America's
consumers, Commissioner Moore's steady hand has been invaluable at the
CPSC. He has a passion for his work and an unyielding commitment to our
mission. His years of experience in dealing with consumer safety issues
bring a critical perspective and seasoned judgment to the agency's
deliberations. While we do not agree on every issue that comes before
us, I always value Commissioner Moore's advice and counsel.
Thomas Moore is a professional dedicated to the highest standards
of public service. I urge the Committee to look positively on
Commissioner Moore's record of achievement at the CPSC. Thank you for
your consideration.
Sincerely,
Hal Stratton,
Chairman.
Mr. Moore. And I also have a full written statement that
I'd like to offer for the record.
The Chairman. All the written statements will be made part
of the record, without objection.
Mr. Moore. Thank you. Thank you. Thank you.
In terms of a summation of my statement, Mr. Chairman,
Ranking Members, and my dear friend, Senator Breaux, as you
know, I'm Thomas H. Moore----
The Chairman. Would you pull the microphone a little
closer, Mr. Moore? It's hard for the reporter----
Mr. Moore. All right.
The Chairman. Thank you. Thank you, sir.
Mr. Moore. I'm more than honored to be here before you
today as the President's nominee for reappointment as a Member
of the U.S. Consumer Product Safety Commission, CPSC. I bring
with me, I believe, unique qualifications for this position. I
have served as an incumbent Commissioner at CPSC for over 8
years. And during that time, I have worked diligently on behalf
of the American consumer. I have first-hand knowledge of the
agency's mission, its resources, and its excellent staff. By
the way, our Executive Director, Ms. Patsy Semple, is in the
audience today.
As a lawyer, former Senate Counsel, and former Acting
Chairman of the Commission, I understand both the breadth of
statutory authority of the Commission, as well as the practical
and monetary constraints on its work. In addition, during my
tenure as Acting Chairman, I was the agency's chief
spokesperson, and I was directly responsible for its
administrative operations.
The Commission is charged by Congress with the critical
responsibility of protecting the public against unreasonable
risk of injury and death associated with consumer products. Our
work has resulted in an almost 30 percent decline in the rate
of deaths and injuries related to hazardous consumer products
since 1974. Protecting life is, indeed, a crucial
responsibility, and one that I believe certainly requires
accountability, and strong and balanced leadership at the
Commissioner level.
Protecting the most vulnerable segments of our society is a
special interest of mine. Children, the elderly, the infirm,
low-income families, minorities, and those for whom English is
not their native language are often especially vulnerable to
hazardous consumer products. I think it is a reasonable
conclusion that if we concentrate on lowering the risk of
injury and deaths due to consumer products in these vulnerable
groups, overall reduction would be proportionately reflected.
Balancing the concerns of product safety in vulnerable
populations against product safety concerns in the population
as a whole will always be one of my most challenging tasks at
the Commission.
I also strongly feel that the role of the Commission is
essential to the U.S. marketplace in an increasingly
competitive international marketplace. The Commission should
have a leadership role in developing international consumer
product safety standards and enforcement compatibility so we
can enhance international trade and export opportunities
without lowering U.S. safety standards.
In closing, I believe that consumers must take some
responsibility for their own safety. I think that consumers
should be well-informed about the products they purchase, and
they should take reasonable care in using them. However, it is
clear to me that CPSC's role is to stand guard and to protect.
We cannot assure that all consumer products are designed
safely, but when we become aware that there are unreasonable
hazards, we must act, and take all appropriate steps to
eliminate them.
I also think that reasoned Commission action reflects a
pragmatic approach to resolving safety problems, and recognizes
that regulation is only one of many options that can be
employed to address safety issues. We will work actively to
achieve safety goals. And I expect, as is often the case,
industry will respond reasonably. But if safety is not the goal
of a certain industry or manufacturer, the Commission must
stand ready to protect the consumer expeditiously and without
compromise.
Mr. Chairman, during my time at the Commission, the CPSC
has played an important role in protecting the safety of the
American public. I believe that I have demonstrated a
consistent and responsible approach to consumer product safety
issues. I believe I have served the public well, and I want to
continue the work that we have begun. So I ask you to confirm
my nomination for another term as Commissioner on the Consumer
Product Safety Commission.
Thank you, and I would be pleased to respond to any
questions you may have, at this time or later.
[The prepared statement and biographical information of Mr.
Moore follow:]
Prepared Statement of Hon. Thomas H. Moore, Nominee for Commissioner,
U.S. Consumer Product Safety Commission
Mr. Chairman, Ranking member and members of the Committee, my name
is Thomas H. Moore and I am honored to be before you today as the
President's nominee for re-appointment as a member of the U.S. Consumer
Product Safety Commission (CPSC). I bring with me unique qualifications
for this position. I have served as an incumbent Commissioner at CPSC
for over 8 years and during that time I have worked diligently on
behalf of the American consumer. I have first hand knowledge of the
agency's mission, its resources and its excellent staff. As a lawyer,
former Senate Counsel, and former Acting Chairman of the Commission, I
understand both the breadth of the statutory authority of the
Commission as well as the practical and monetary constraints on its
work. In addition, during my tenure as Acting Chairman I was the
agency's chief spokesperson and I was directly responsible for its
administrative operations.
The Commission is charged by Congress with the critical
responsibility of protecting the public against unreasonable risk of
injury and death associated with consumer products. This is a crucial
responsibility because, often, without CPSC's intervention, the
consequences of exposure to the hazards associated with dangerous
products may literally be of a life and death nature for individual
consumers unknowingly in possession of unsafe consumer products. This
is also a very critical time for the Commission. Shrinking budgetary
resources and staff, plus increasingly more technologically complex
consumer product safety issues, place a very sharp focus on those in
leadership positions at the Commission. These are times that certainly
require accountability, and strong and balanced leadership at the
Commissioner level.
The Mission
CPSC's mission is to protect children and families against
unreasonable risk of injury and death from about 15,000 types of
consumer products. Our work has contributed significantly to the almost
30 percent decline in the rate of deaths and injuries related to
hazardous consumer products since the agency's inception. However,
despite significant reductions over the years, there remains on average
about 24,400 deaths and 33.4 million injuries each year related to
consumer products under CPSC's jurisdiction. These numbers represent
almost 9 deaths and 12,000 injuries per 100,000 people each year.
Moreover, the deaths, injuries, and property damage associated with
consumer products cost the Nation over $700 billion annually.
Some suggest that the modern, sophisticated marketplace of today
can effectively regulate itself for product safety and that the
government's role should be limited and secondary to market
considerations. Well, that is not my philosophy on the government's
responsibility and role with respect to consumer product safety. Very
simply put, competition and voluntary actions of today's businessmen do
not always suffice to safeguard the public interest. Unfortunately,
competition does not and will not inevitably take the form of a rivalry
to produce the safest product--the cheapest and most profitable, yes,
but not the safest. In today's complex marketplace it is going to be
exceedingly difficult for any amount of libertarian sophistry to
overwhelm the obvious facts of modern life. The role of the CPSC in
today's consumer product marketplace is compelling, substantial and
relevant and should not, at any time, be secondary to the responses of
the free enterprise system. CPSC should be an aggressive and proactive
guardian of consumer safety against unreasonable risk of injury or
death from consumer products.
Today, our reliance on consumer products in our lives is tremendous
and growing. We rely on manufactured mechanized and electrical devices
to assist us in too many of life's activities to mention--at play, at
work, in education, in travel, and particularly inside and outside of
the home: in food preparation, in cleaning and making repairs around
the home, in child-care, in trimming trees and grass, and on and on and
on. To further complicate matters, more and more of these products are
manufactured abroad. Manufacturers have an obligation to build a margin
of safety into all of their products and consumers have a
responsibility to be informed about products and to take reasonable
care in using them. Nevertheless, government should never waiver in its
role and its commitment to ensure that consumers are not unnecessarily
exposed to unsafe, hazardous consumer products.
Enforcement: An Important Tool
Aside from using its rulemaking authority, CPSC can act forcefully
and quickly to remove dangerous products from the marketplace through
two main enforcement activities. The first is in vigorously enforcing
its current regulations; and the second is in utilizing its Section 15
authority to achieve recalls or corrective action plans when it is
believed that a product meets the level of a substantial product
hazard.
I point out to you that in 2003 alone, the Commission obtained
about 280 recalls involving nearly 40 million product units. We also
completed 5 civil penalty cases that resulted in over $2 million in
fines for failure to report hazardous defects and other violations
associated with our various statutes and regulations.
Working with a manufacturer, distributor or retailer to recall
defective products is a primary mechanism in CPSC's continuous
undertaking to address product safety hazards. However, announcing the
recall is just one step in an overall process of eliminating the
hazards presented by unsafe products in consumer's homes. Ensuring the
removal of those unsafe products from potential consumer use is also
essential. Given the limitations presented by CPSC's resources, it is
tremendously important that the Commission maximize the effectiveness
of this particular aspect of the recall process.
For years, there have been questions and discussions about just how
effective the Commission has been in facilitating the removal of unsafe
products from consumer use: Is the unsafe product message being
effectively communicated to the public; are enough products being
effectively removed; and are there additional things that the
Commission can do? I think that there are certainly enough legitimate
questions surrounding the best method for determining what constitutes
an effective recall in any particular case to merit careful review.
In July 2001, the Consumer Federation of America (CFA) petitioned
the CPSC to require manufacturers (or distributors, retailers, or
importers) of products intended for children to provide a product
registration card along with every product sold. In March 2003, after
being briefed on the issue by CPSC staff and hearing presentations from
representatives of consumer groups and industry, a majority of the
Commission voted to deny the petition. While I am disappointed that we
did not begin the formal process that I believed was necessary to give
this issue the prominence it deserves, I do believe in the sincerity of
my fellow Commissioners in wanting to address certain issues raised by
that petition. To that end, in 2003, a multi-disciplinary team of CPSC
staff began exploring the issue of recall effectiveness. The team
developed a multi-stage plan to determine how best to address the way
we do recalls which included reviewing relevant research in this area
and scheduling a series of three meetings to obtain information on this
issue from outside stakeholders and experts. Later this year, CPSC
staff will make some recommendations related to the findings of their
exploration and I look forward to the Commission possibly taking
positive steps to address the long-standing issue of effectively
getting consumers to react to recall notifications.
Another issue in the enforcement area lies within the civil penalty
arena. I have supported, and continue to support, the raising or the
elimination of the monetary cap on civil penalties. While the cap does
rise periodically, the reality is that a $1.65 million fine means
nothing to many of the corporations we regulate. It is one thing to
limit the amount one consumer can recover against a company (and not a
position I necessarily support either), but it is quite another to so
severely limit the government's ability to penalize a company on behalf
of all consumers, thereby limiting the deterrent effect of civil
penalties.
Therefore, I commend this Senate committee and staff for its
efforts in this area. Senate bill S. 1261 which passed in the Senate on
September 30, 2003, has a provision that raises the civil penalty cap
from $1.65 million to $20 million. With such an increased potential
liability, perhaps some large companies would be less likely to try to
stall our agency by putting off reporting hazardous products. This
civil penalty cap is much more commensurate with the level of
accountability that some manufacturers should face for the harm that
their hazardous products can cause.
Reporting of a hazardous product to the Commission, in many
instances, is the very first step in a process that could result in the
elimination of the risk of a consumer suffering an injury or death
associated with that hazardous product. Companies should have every
incentive to report, including the possibility of paying a very high
price for their failure to do so.
Some Success Stories
The Commission's successes while I have been a Commissioner are a
major source of satisfaction for me. During my time at the Commission,
I have been very pleased to be involved in many positive Commission
initiatives.
By all current measures, CPSC provides both tremendous service and
tremendous value to the American people. Each year through reductions
in deaths, injuries, and other costs associated with unsafe products,
such as health care costs and property damage, CPSC saves the Nation
many times the agency's annual budget. As I indicated, our agency is
the major factor in the overall 30 percent decline in the rate of
deaths and injuries related to consumer products since 1974. During
that time, through our standards work, compliance efforts, industry
partnerships, and consumer information programs, there has been a 42
percent reduction in residential fire deaths, a 69 percent reduction in
consumer product-related electrocutions, a 36 percent reduction in
consumer product-related carbon monoxide deaths, an 87 percent
reduction in poisoning deaths of children younger than 5 years of age,
an 84 percent reduction in baby walker injuries and a 90 percent
reduction in crib-related deaths. We expect the annual number of deaths
and injuries prevented by just these examples to reduce societal costs
by over $15 billion.
Currently, the Commission collects information about product-
related injuries treated in hospital emergency rooms through our
National Electronic Injury Surveillance System or ``NEISS.'' This
unique system provides statistically valid national estimates of
product-related injuries from a probability sample of about 100
hospital emergency rooms. These estimates provide the data support for
many of the Commission's activities allowing the Commission to spot
hazard patterns, set priorities, and give direction to product safety
work. These estimates are also valuable to industry, which can use the
data to spot hazard patterns to help give direction to their own
product safety efforts.
In 2003, NEISS supplied about 350,000 product-related cases from
its sample of hospital emergency rooms. Several foreign governments
have modeled their national injury data collection systems after the
Commission's system. Additionally, in 2000, NEISS was expanded to
provide data on all trauma-related injuries. This expanded data
provides other Federal agencies, researchers, and the public with more
comprehensive information on injuries from all sources, not just
consumer products.
The Commission has also established a reporting system to capture
information on clothing-related burn injuries to children. In July
2003, to address any possible issues related to sleepwear burn
injuries, the Commission, in cooperation with the American Burn
Association, the Shriners Hospitals for Children, and the National
Association of State Fire Marshals, developed a new National Burn
Center Reporting system for collecting and sharing information on
clothing-related burn injuries to children under the age of 15. There
are over 100 burn centers nationwide that treat children and as of
March 2004, we had collected over 130 reports. I am very pleased that,
to this date, there are no reports of children suffering burn injuries
as a result of their complying sleepwear being ignited by a small open
flame.
Some Conclusions
Protecting the most vulnerable segments of our society is a special
interest of mine. Children, the elderly, the infirm, low-income
families, minorities, and those for whom English is not their native
language are often especially vulnerable to hazardous consumer
products. I think it is a reasonable conclusion that if we concentrate
on lowering the risk of injury and deaths due to consumer products in
these vulnerable groups, overall reductions would be proportionally
reflected. Balancing the concerns of product safety in vulnerable
populations, against product safety concerns in the population as a
whole, will always be one of my more challenging tasks at the
Commission.
I also strongly feel that the role of the Commission is essential
to the U.S. marketplace in an increasingly competitive international
marketplace. The Consumer Product Safety Commission and the marketplace
must work together to develop international consumer product safety
standards and enforcement compatibility so we can enhance international
trade and export opportunities without lowering U.S. safety standards.
Just as the Commission played an essential role in the development
of uniformity in domestic product safety standards and has thereby
minimized conflicting state and local regulations, that role should now
be expanded to working with industry and governments internationally to
harmonize safety standards. Such an effort could result in the
reduction of non-tariff trade barriers that varying international
safety standards can create.
Over the years, I have also given considerable advocacy to the idea
of a product safety research effort at the Commission. Most other
Federal health and safety agencies have research budgets that are a
vital part of their programs. Clearly, Congress envisioned research as
part of the Commission's safety efforts when it adopted the Consumer
Product Safety Act and established the Commission. The very first
Commission Annual Report in 1973 indicated that research was an
important component of the agency's work. The language in Section 5
(b)(1) of the Consumer Product Safety Act explicitly addresses
conducting research. Yet, for too many years, we have had to defer any
research program for lack of funding. Our staff tells me that a good
research project for the Commission would be to evaluate the
application of sensor technologies to address consumer product safety
hazards. A number of new sensor technology applications have been
introduced into the consumer marketplace in the past few years, but
applications that specifically address consumer product safety needs
have not been explored in depth within the manufacturing or safety
assurance communities.
In the area of ongoing issues of particular interest to me, I place
All Terrain Vehicles (ATVs) and flammability issues. From 1997 to 2001,
ATV-related injuries rose over 100 percent, from an estimated 52,800 to
110,100. Subgroups that had been associated with greater risk for
injury in 1997 continued to be at greater risk in 2001. These groups
include drivers under the age of 16, drivers with less than one year of
driving experience, drivers who drive fewer hours and recreational
drivers. I am particularly concerned about injuries and deaths
occurring as a result of adult-sized ATVs being operated by drivers
under the age of 16.
In August 2002, CFA and 8 other groups petitioned the Commission to
ban adult-sized four wheel ATVs which may be used by and/or sold for
children under age 16. In 2003, the Commission held a field hearing on
the ATV issue in West Virginia, a state where there is a high level of
ATV usage. Additionally, there were two other field meetings held in
New Mexico and Alaska. The Commission staff is currently evaluating the
CFA petition and all comments received and will submit a briefing
package on the petition to the Commission later this year.
The Commission staff is also developing new draft flammability
performance standards for upholstered furniture and mattresses for
consideration by the Commission. By reducing ignition propensity and
limiting fire growth, these standards would address the risk of fire
from open flame ignition for mattresses and small open flame ignition,
as well as, cigarette ignition of upholstered furniture. The Commission
staff plans to provide draft standards under which manufacturers and
importers would have the flexibility to use any designs or
constructions of products and materials that yield complying
performance. I anticipate that, later this year, staff will provide to
the Commission its recommendations of possible proposed rules and
alternatives on these flammability issues.
Addressing flammability issues have been very long and often very
frustrating processes for the Commission. There are many stakeholders
who have many different views on how these issues should most
effectively be addressed. I am very optimistic that most recent efforts
by all interested parties will allow for the type of progress we need
to address these very serious flammability issues.
Conclusion
In closing, I believe that consumers must take some responsibility
for their own safety. I think that consumers should be well informed
about the products they purchase and they should take reasonable care
in using them. However, it is clear to me that CPSC's role is to stand
guard and to protect. We cannot assure that all consumer products are
designed safely but when we become aware that there are unreasonable
hazards we must act and take all appropriate steps to eliminate them.
I also think that reasoned Commission action reflects a pragmatic
approach to resolving safety problems and recognizes that regulation is
only one of many options that can be employed to address safety issues.
We will work actively to achieve safety goals, and I expect, as is
often the case, industry will respond reasonably. But, if safety is not
the goal of a certain industry or manufacturer, the Commission must
stand ready to protect the consumer expeditiously and without
compromise.
Mr. Chairman, during my time at the Commission, the CPSC has played
an important role in protecting the safety of the American public. I
believe that I have demonstrated a consistent and responsible approach
to consumer product safety issues. I believe I have served the public
well and I want to continue the work that we have begun. So I ask you
to confirm my nomination for another term as a Commissioner on the
Consumer Product Safety Commission.
Thank you and I would be pleased to respond to any questions you
may have at this time.
______
a. biographical information
1. Name: (Include any former names or nick names used.) Thomas Hill
Moore.
2. Position to which nominated: Commissioner, U.S. Consumer Product
Safety Commission.
3. Date of nomination: March 11, 2004.
4. Address: (List current place of residence and office addresses.)
Residence: Information not released to the public.
Office: 4330 East West Highway, Bethesda, MD 20814.
5. Date and place of birth: February 2, 1937; Washington, Georgia.
6. Marital status: (Include maiden name of wife or husband's name.)
Married to--Adrienne Hartley Moore; Maiden name--Adrienne T.
Hartley.
7. Names and ages of children: (Include stepchildren and children
from previous marriages.)
Phyllis Moore Wiley--age 36; Thomas Carlton Moore--age 34.
8. Education: (List secondary and higher education institutions,
dates attended, degree received and date degree granted.)
Holland Law Center, University of Florida, 8/71 to 3/74, Juris
Doctor, 3/74
Jacksonville University, 9/65 to 4/71, B.S. Degree, 4/71
Matthew W. Gilbert High School, High School Diploma, 6/56
9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)
Commissioner, U.S. Consumer Product Safety Commission,
Bethesda, Maryland, 5/95 to present.
Legislative Counsel, United States Senate, Office of Senator
John B. Breaux, Washington, D.C., 10/88 to 4/95.
Government Relations Consultant, self-employment, Reston, VA,
5/86 to 10/88.
Executive Vice President, National Medical Association,
Washington, D.C., 3/85 to 4/86.
Director, Legislative Affairs, Allen, Rovin & Associates,
Washington, D.C., 3/83 to 3/85.
Staff Attorney, National Consumer Law Center, Washington, D.C.,
6/81 to 3/83.
Legislative Assistant, U.S. Senate, Office of Senator Richard
Stone, 6/77 to
1/81.
Assistant Dean, University of Florida College of Law, 3/74 to
5/77.
Postal Carrier, United States Post Office, Jacksonville,
Florida, 4/60 to 6/71.
10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.) None.
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.)
None, other than those listed above.
12. Memberships: (List all memberships and offices held m
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)
American Association of Retired People--member.
13. Political affiliations and activities:
(a) List all offices with a political party which you have held or
any public office for which you have been a candidate. None.
(b) List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years. None.
(c) Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years. None.
14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)
Book Award, Evidence Course--Law College.
Voted Most Outstanding Student Trial Lawyer, Practice Court--
Law College.
Selected to Board of Masters, Student High Court of Appeals,
University of Florida Student Government Association.
Earl Warren Legal Training Program Grant.
Independent Life Insurance Company Scholarship.
15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.) None.
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated.
(See attached speeches).
17. Selection:
(a) Do you know why you were chosen for this nomination by the
President?
I am a sitting Commissioner on the CPSC with over 8 years of
experience on the job. During that time I have worked diligently on
behalf of the American consumer.
(b) What do you believe in your background or employment experience
affirmatively qualifies you for this particular appointment?
My work on the Commerce Committee with Senator Breaux where I
handled consumer affairs, among other issues, and my over 8 years of
experience at the Commission make me uniquely qualified for this
appointment. I was Acting Chairman for nine months while we were
waiting for our current chairman to be confirmed. I have knowledge of
the substantive issues before the Commission and have had
administrative experience at the operational level of the agency.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations or business organizations if you
are confirmed by the Senate?
N/A Reappointment.
2. Do you have any plans, commitments or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, explain. No.
3. Do you have any plans, commitments or agreements after
completing government service to resume employment, affiliation or
practice with your previous employer, business firm, association or
organization?. No.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients or customers.
None as to myself. My wife wil1 begin receiving a pension next year
from AT&T.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated. None.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated? None.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat or modification of any legislation or affecting the
administration and execution of law or public policy. None.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.)
I will recuse myself from any matter before the Commission that may
present a potential conflict of interest and have included a copy of my
Ethics Agreement dated March 19, 2004.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a compliant to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, provide details. No.
2. Have you ever been investigated, arrested, charged or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation or ordinance,
other than a minor traffic offense? If so, please explain. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain. No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain. No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination. None.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, to include technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Please explain how if confirmed, you will review regulations
issued by your department/agency and work closely with Congress, to
ensure that such regulations comply with the spirit of the laws passed
by Congress.
Before the Commission votes on any new regulation our legal staff
does an analysis of the proposal to ensure that it meets our statutory
requirements. That memo is separate from the substantive package and is
an important component of Commission review. If confirmed I will
continue to encourage that those memos reflect the unbiased opinion of
our staff and that all views are reflected. Also substantive briefing
packages are made available on our website at the same time they are
distributed to the Commissioners, so that the public and affected
industries, as well as Members of Congress, have opportunities to point
out any objections they may have to a proposal. Additionally, the
Commission has a proposal out for public comment to begin a systematic
review of our older regulations to ensure consistency among them with
respect to accomplishing program goals.
5. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. How do your previous professional experiences and education
qualify you for the position for which you have been nominated?
Prior to coming to the agency I handled consumer issues for Senator
John Breaux on the Commerce Committee. It was there that I became
interested in the mission of the U.S. Consumer Product Safety
Commission. I have had the privilege of working at the Commission for
over 8 years. During that time I have been involved in every decision
made by the agency at the Commissioner level. I know the agency
mission, its resources and its excellent staff. As a lawyer, I
understand the breadth of the statutory authority of the Commission as
well as the practical and monetary constraints on its work. During my
tenure as Acting Chairman I was the agency spokesperson and was
responsible for administrative operations, in addition to my other
responsibilities.
2. Why do you wish to serve in the position for which you have been
nominated?
I wish to serve another term as Commissioner because the Commission
now faces a critical time of shrinking resources with increasingly more
technologically complex product safety issues. I think that my presence
on the Commission will improve the safety and well being of the
American public in their homes and communities. I provide a strong
persuasive presence which gives a needed balance to the Commission's
work. My experience of 8 years in the position will also provide some
stability to the Commission during a time of change and help the
Commission resolve long-standing, very complex consumer product safety
issues which are nearing critical decision-making stages.
3. What goals have you established for your first two years in this
position, if confirmed?
My goals are to continue the work that I have begun at the
Commission. My focus has been on fire issues and the hazards that
befall our most vulnerable citizens: children, the elderly, and less
affluent consumers. Now that the agency has a greater measure of
cooperation with industry on the issue, it is important to put out a
proposed rule on upholstered furniture flammability as soon as that is
possible and I will work with the other Commissioners and our staff to
accomplish that.
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
Based upon my experience in government service both on Capitol Hill
and at the Commission, I believe that I have developed and demonstrated
the necessary skills to continue to successfully carry out the position
of Commissioner.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when society's problems
should be left to the private sector, and what standards should be used
to determine when a government program is no longer necessary.
The statutes our agency administers give us fairly specific
guidance on when the agency should get involved in the private sector.
Our mission is to protect consumers from hazardous products circulating
in interstate commerce. These products often come from other countries
and can find their way into any State in the Union. This is a perfect
example of a mission that has to be handled at the Federal level. The
Federal government is uniquely qualified to police the world of
interstate commerce, recall hazardous products that are in national
distribution, stop products from entering our country that could pose a
danger to its citizens and set safety standards of national
applicability. Manufacturers would find it difficult, if not
impossible, to make products if every state had different product
safety standards. The States are uniquely qualified to deal with in-
state businesses reselling defective products in the secondary market,
such as thrift stores and flea markets.
A government program should be judged by whether its mission is
still valid and if it is setting, measuring and meeting goals to
accomplish that mission. I think the Government Results and Performance
Act has helped focus government program planning and resource
allocation in ways that enhance everyone's ability to determine whether
programs are achieving their missions.
6. Describe the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated.
The mission of the Commission is to protect the American public
from unreasonable risks of injury and death from about 15,000 types of
consumer products under its jurisdiction, to assist consumers in
evaluating the comparative safety of consumer products, to develop
uniform safety standards for consumer products, and to promote research
and investigation into the causes and prevention of product-related
deaths and injuries. Its safety initiatives are handled through three
major programmatic activities: hazard identification and reduction
activities, compliance and enforcement activities, and public
information and education activities. The major operational objective
of the Commission is to maintain effective product safety programs in
light of shrinking staff and programmatic resources. As is apparent in
most Federal government operations, maintaining and upgrading the
Commission's information technology capabilities and databases are
essential elements to the Commission's success as the Commission
becomes increasingly more dependent on these systems for its data
driven activities.
7. What do you believe to be the top three challenges facing the
department/agency and why?
In a world that requires more of our Federal budget to be spent on
security issues, limited resources, will continue to be a challenge for
most agencies, and particularly small ones, such as CPSC. We have
roughly 470 people to protect the entire nation from potential hazards
associated with 15,000 types of products. We have lost some of the
support we used to get from the U.S. Bureau of Customs & Border
Protection in stopping products at the docks because the national
security role of Customs has increased in recent years. For the last
few years we have had to postpone a number of improvements to our IT
systems and our testing and research laboratory because there just is
not enough money in our budget to fund them. However, our staff works
extremely hard and they find every resource they can to adjust to these
difficult budgetary times.
When national security issues face our citizens, and when there is
so much information of all kinds coming at consumers on a daily basis,
it is a continuing challenge to focus their attention on product safety
issues. One of the issues we are studying in our current recall
effectiveness review, is what we can do differently to make sure
consumers are informed about, and take action with regard to, hazardous
products before one of their loved ones becomes a casualty.
The agency is seeing an increase in issues related to the chemical
composition of products on the market, particularly those used by
children. Recently we have had to examine phthalates (a plastic
softener), chromated copper arsenate (CCA) used in pressure treating
wood in playground equipment, the chemical formulation of Teflon, and
flame-retardant chemicals that could be used to make upholstered
furniture more flame resistant. These issues are very complex, often
requiring peer review of staff results and consultations with other
Federal agencies. These issues take time and resources. We have had to
hire more toxicologists and other scientists to meet these increased
demands. These issues are extremely important and I am glad the agency
has been able to address them but they do increase the strain on our
already tight budget. Our challenge is to only tackle the issues that
pose the greatest dangers to our community and sometimes that is hard
to know at the outset, particularly when many of these issues come to
us by way of citizen petition.
8. In reference to question number six, what factors in your
opinion have kept the department/agency from achieving its missions
over the past several years?
I think that, given its budgetary limitations, the Commission, has
done a good job in achieving its mission. However, I also believe that
the Commission has the capability to do more to protect the public. I
find resources to be the major factor in limiting the Commission's
capabilities. As products are made in more technologically complex
ways, both our engineers and the product manufacturers are challenged
to isolate the precise cause of a product's safety-related malfunction.
We are finding more and more multiple failure modes in products. This
requires us to do more testing, to collect more product samples, and to
hire more outside experts to help us determine all the possible
components that play a role in product defects. With a shrinking
budget, we become less capable of swift product safety assessments and
become more dependent on outside analysis and conclusions.
I have also given considerable advocacy to the idea of a product
safety research effort at the Commission. Most other Federal health and
safety agencies have research budgets that are a vital part of their
programs. Clearly, Congress envisioned research as part of the
Commission's safety efforts when it adopted the Consumer Product Safety
Act and established the Commission. The very first Commission Annual
Report in 1973 indicated that research was an important component of
the agency's work. The language in Section 5(b)(1) of the Consumer
Product Safety Act explicitly addresses conducting research. Yet, for
too many years, we have had to defer any research program for lack of
funding.
9. Who are the stakeholders in the work of this department/agency?
Our primary stakeholders are American consumers. We also consider
industry (manufacturers, importers and retailers) to be stakeholders.
Both have organized subsets, such as national/regional consumer groups
and industry trade associations. To some extent the governments of the
countries that we trade with are stakeholders in that they have an
interest in their countries' products meeting American standards and in
trying to harmonize their standards with ours, whenever possible.
10. What is the proper relationship between the position to which
you have been nominated, and the stakeholders identified in question
number nine?
The proper relationship between a Commissioner and the stakeholders
is one that contemplates substantive and appropriate communications
between the parties related to consumer product safety issues. The
Commission is responsible for communicating safety-related information
to the public. In each of its major program activities the exchange of
information is critical. A Commissioner is responsible for implementing
policies, both individually, and collectively as a part of the
Commission, that allow for the free flow of product safety information
between relevant stakeholders and the Commission.
11. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices.
(a) What do you believe are your responsibilities, if confirmed to
ensure that your department/agency has proper management and accounting
controls?
In general, the Chairman of the agency has direct, day-to-day
operational oversight and control of our management and accounting
controls. During my senior staff briefings, the senior staff of the
agency will inform me of any steps they are taking in response to
problems they have identified and I seek periodic updates on those
issues until they have been satisfactorily resolved. When I was Acting
Chairman, all reports made to Congress and the Executive Branch and all
internal Inspector General and Program and Evaluation studies were sent
to my office for review of proposed remedial actions. I believe my
responsibility, as Commissioner, is to keep abreast of issues that are
brought to my attention and to follow up with staff to make sure any
problems have been resolved and to take any steps with regard to the
budget that may be necessary to fund those resolutions.
(b) What experience do you have in managing a large organization?
I was the Acting Chairman of the U.S. Consumer Product Safety
Commission for nine months and I have been a Commissioner (one of
three) there for over 8 years.
12. The Government Performance and Results Act requires all
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.
(a) What benefits, if any, do you see in identifying performance
goals and reporting on progress in achieving those goals?
Performance goals provide focus for the agency. They allow the
agency to align its activities and regulations with its missions,
design its budgets to reflect the strategic missions and use real
measurements of results to ascertain successes and identify areas for
improvement. Progress toward goals justifies appropriations and
authorizations for the agency.
(b) What steps should Congress consider taking when a department/
agency fails to achieve its performance goals? Should these steps
include the elimination, privatization, downsizing, or consolidation of
departments and/or programs?
First there should be a determination of why the department/agency
failed to achieve its performance goals and then a determination of
what the appropriate and prudent course of action should be. Any one of
the aforementioned steps might be prudent but Congress and the
department/agency both should be mindful that any action taken must
reflect what is in the public's interest, particularly when dealing
with health and safety agencies where results may take years to become
measurable.
(c) What performance goals do you believe should be applicable to
your personal performance, if confirmed?
All of the performance goals are applicable to a Commissioner's
personal performance. As the responsible parties for the agency's
policies, budget, and operational objectives, the Commissioners are
responsible for the performance of the agency. The success or failure
of the agency flows from the Commissioner's decision making. The
agency's measure is also the Commissioner's personal measure of his job
performance.
13. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
I believe in hiring good people and letting them do their jobs. I
am not a micromanager. I think that if you do a good job in the
recruiting process in identifying what qualities you want in an
employee and screen your applicants for those qualities that you should
have few on-the-job problems. I also think that if people are not doing
their jobs they need to be given an opportunity to improve, but if they
do not improve, they need to move on. As resources get scarcer, it is
imperative that people are doing the best job they can do and that
their 'Skills match the agency's needs.
No employee complaints have been brought against me.
14. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please explain.
As Legislative Assistant in the office of Senator Richard Stone and
Legislative Counsel in the office of Senator John Breaux, I have had
extensive working experience with Congress, Congressional Committees,
and Congressional staffers. As a Commissioner, over the last 8 years, I
have testified before both House and Senate authorizing committees on
reauthorization of the Commission and on other issues under the
jurisdiction of those committees. I have also testified before House
and Senate appropriators on the annual budget request at the annual
budget hearings for the Commission. Moreover, in the role of Acting
Chairman at the Commission from November, 2001 to August, 2002, I had
direct oversight over the office responsible for the Commission's
communications with Congress on many, many issues under the
Commission's jurisdiction. I feel that an open line of communication
between Congress and the office of a Commissioner is essential to good
congressional relations and I welcome inquiries and other
communications from all members of Congress.
15. Please explain what you believe to be the proper relationship
between yourself, if confirmed, and the Inspector General of your
department/agency.
The CPSC's Inspector General reports directly to the Chairman of
the agency and his reports are usually confidential. When I was Acting
Chairman the Inspector General kept my office informed of on-going
activities and sent me all reports, including audits and investigatory
reports. I, in turn, kept the other Commissioner informed of the
reports and the nature of the on-going investigations. I think all
Commissioners should have access to program audits as these are
necessary to fulfilling our role to make sure the agency is meeting its
mission.
16. In the areas under the department/agency's jurisdiction to
which you have been nominated, what legislative action(s) should
Congress consider as priorities? Please state your personal views.
The Commission was last authorized in 1990. The authorization of
the Commission should be a priority given that it has been 14 years
since the last authorization. Many Members feel that an agency that is
not authorized should not be appropriated. The Commission should not
continue to be in that vulnerable position.
I have supported, and continue to support, the raising or the
elimination of the monetary cap on civil penalties. Perhaps some
companies would be less likely to try to stall our agency by putting
off reporting hazardous products if we had penalties that were more
commensurate with the harm they can cause.
17. Within your area of control, will you pledge to develop and
implement a system that allocates discretionary spending in an open
manner through a set of fair and objective established criteria? If
yes, please explain what steps you intend to take and a time frame for
their implementation. If not, please explain why.
The agency currently has almost no discretionary funds to spend.
Our work is largely accomplished through the work of our scientists,
statisticians, engineers, investigators and other highly skilled
employees, which means that the bulk of our budget goes for salaries,
rent, telephone and other administrative support services. Because of
overall budget constraints, unfunded mandates and annual increases in
salaries, to name a few reasons, we have in recent years only been able
to obtain budget increases that cover most, if not all, of the increase
in our fixed costs. While we do have grant-making authority, we rarely
have money to make grants. About all we can fund are tiny contracts
(usually $500 per State) that we disburse through our State and Local
Partners Program to state agencies who help us conduct investigations
and inspections. This is a wonderful example of a federal-state
partnership program that gives us greater reach than we could possibly
have with just our small staff. Our State and local partners fill in
the gaps in states where we do not have a CPSC staff person stationed.
Most of our travel funds are dedicated to travel by our field
investigators, participation by our staff in voluntary standards
development and travel in support of litigation.
We request annual input from our stakeholders so they can comment
on what they think the agency's agenda and priorities should be for the
corning year. They also have an opportunity to review and comment on
our annual budget, Five-Year Strategic Plans and our annual Performance
Plans which outline the agency's strategic goals and indicate resources
we intend to spend in each area. For each budget submission, the
Commissioners review on-going projects and proposed changes to those
projects, and 1 will continue to review those budgets every year to
make sure that we are getting the most out of our limited resources.
The Chairman. Thank you very much.
Mr. Anderson?
STATEMENT OF HON. A. PAUL ANDERSON, NOMINATED TO BE A
COMMISSIONER, FEDERAL MARITIME COMMISSION
Mr. Anderson. Thank you, Mr. Chairman. Thank you for
scheduling this hearing today. Having been nominated by
President Bush to the Federal Maritime Commission, it is,
indeed, an honor and a privilege to appear before you and the
distinguished Members of the Commerce, Science, and
Transportation Committee.
I would like to convey my sincere gratitude to Senators
Nelson and Graham for their support for this nomination, and
also to Congressman Mica for his kind words.
I would also like to thank you for the opportunity to
introduce my father, who is here today, and also my mother, and
publicly convey to them that their spirit, love, and character
have guided me, and I am forever grateful.
I would also like to thank my friends that are here today
for their support and encouragement.
As the independent regulatory agency responsible for
overseeing ocean-borne transportation in the U.S. foreign
commerce, the Federal Maritime Commission works to ensure a
fair and competitive environment in which carriers, shippers,
and other stakeholders can operate with a minimum of government
intervention, while being protected from unfair foreign
shipping practices.
As this Committee knows firsthand, the ocean transportation
industry has changed dramatically since September 11. The
security and safety of our Nation's transportation
infrastructure is of critical importance to the free flow of
trade. While the Commission is not in the front line of
ensuring our security, it is committed to helping front-line
organizations ensure the safe and efficient movement of cargo
to and from the United States. With respect to transportation
security, I will fully support the efforts of the Commission
and other agencies to coordinate and integrate our resources to
ensure maximum protection of our maritime assets.
The maritime industry is well on its way to being one of
our country's few trillion dollar economic sectors. The Federal
Maritime Commission plays a vital role in this marketplace, and
will continue to ensure that the interests of the United States
operate on a level playing field with our competitors. During
my career, I have worked in several regulated industries,
including 9 years in the maritime sector. In this capacity,
many of the functions I performed were subject to maritime laws
and regulations administered by the Federal Maritime
Commission. My professional experience working with maritime
trade associations, such as American Waterways Operators and
the former American Institute of Merchant Shipping, promoting
the industry and playing a leadership role in guiding the
industry toward responsible public policy positions, will allow
me to make significant contributions to the Commission.
If confirmed by the Senate, I will work to fairly and
objectively fulfill the Federal Maritime Commission's statutory
responsibilities, while making every effort to listen to
Commission stakeholders, in order to reach balanced and well-
informed decisions in this sector that plays a vital role in
our country's economic development and security.
Thank you, Mr. Chairman, for the opportunity to appear
before you today, and I will be happy to answer any questions.
[The prepared statement and biographical information of Mr.
Anderson follow:]
Prepared Statement of Hon. A. Paul Anderson, Nominated to be a
Commissioner, Federal Maritime Commission
Mr. Chairman,
Thank you for scheduling this hearing today. Having been nominated
by President Bush to the Federal Maritime Commission, it is an honor
and a privilege to appear before you and the distinguished members of
the Commerce, Science, and Transportation Committee. I would like to
convey my sincere gratitude to Senator Nelson and Congressmen Shaw and
Mica for their introduction to the Committee.
During my life I have been truly blessed to have supportive family
and friends. I would like to recognize my father Perry Anderson, a
distinguished veteran and retired Marine officer who is here today from
California, and publicly convey to him and my mother that their spirit,
love and character have guided me and I am forever grateful. I would
also like to thank my friends who are here for their encouragement and
friendship.
As the independent regulatory agency responsible for overseeing
ocean borne transportation in U.S. foreign commerce, the Federal
Maritime Commission works to ensure a fair and competitive environment
in which carriers, shippers, and other stakeholders can operate with a
minimum of government intervention, while being protected from unfair
foreign shipping practices.
Working within its statutory framework, the Commission has
developed a regulatory system that allows for necessary oversight with
minimal disruption to the efficient flow of U.S. foreign commerce.
As this Committee knows first-hand, the ocean transportation
industry has changed dramatically since September 11, 2001. The
security and safety of our Nation's transportation infrastructure is of
critical importance to the free flow of trade. While the Commission is
not on the front-line of ensuring our security, it is committed to
helping front-line organizations ensure the safe and efficient movement
of cargo to and from the United States.
In this regard, the Commission's oversight of ocean common
carriers, ocean transportation intermediaries (``OTIs''), and marine
terminal operators, is a vital link in the effort to protect our
Nation's seaports.
With respect to transportation security, I will fully support the
efforts of the Commission and other agencies to coordinate and
integrate our resources to ensure maximum protection of our maritime
assets.
The maritime industry has seen dramatic changes in the past decade,
with the evolution of technology, global trade and intense competition.
Congress addressed many of these issues in 1998, when it passed the
Ocean Shipping Reform Act (OSRA). The Act amended the way the
Commission deals with service contracts, agreements, ocean
transportation intermediary licensing, tariffs, and other issues. Based
on the Commission's 2001 report on the impact of OSRA, it appears that
the Act is working well to encourage a more market-driven liner
shipping industry.
The maritime industry is well on its way to being one of our
country's few trillion dollar economic sectors. The Federal Maritime
Commission plays a vital role in this marketplace and will continue to
ensure that the interests of the United States operate on a level
playing field with our competitors.
During my career I have worked in several regulated industries,
including nine years in the maritime sector. In this capacity, many of
the functions I performed were subject to maritime laws and regulations
administered by the Federal Maritime Commission. My professional
experience working with maritime trade associations such as American
Waterways Operators (AWO) and the former American Institute of Merchant
Shipping (AIMS), promoting the industry and playing a leadership role
in guiding the industry toward responsible public policy positions,
will allow me to make significant contributions to the Commission.
If confirmed by the Senate, I will work to fairly and objectively
fulfill the Federal Maritime Commission's statutory responsibilities,
while making every effort to listen to Commission stakeholders in order
to reach balanced and well-informed decisions in this sector that plays
a vital role in our country's economic development and security.
Thank you, Mr. Chairman and distinguished Senators on the Committee
and your staff, for your time and consideration. I will be happy to
answer any questions that you may have for me at this time.
______
a. biographical information
1. Name: (Include any former names or nicknames used.) Alan Paul
Anderson.
2. Position to which nominated: Federal Maritime Commission.
3. Date of nomination: Apri1 10, 2003.
4. Address: (List current place of residence and office addresses.)
Residence: Information not released to the public.
Office: 2108 NE 18 Avenue, Wilton Manors, FL 33305.
5. Date and place of birth: Sept. 16, 1959, Beaufort, South
Carolina.
6. Marital status: (Include maiden name of wife or husband's name.)
Single.
7. Names and ages of children: (Include stepchildren and children
from previous marriages.)
Chase Frederick Kulp, Age 16.
8. Education: (List secondary and higher education institutions,
dates attended, degree received, and date degree granted.)
Harvard University, John F. Kennedy School of Government, 1997,
Program for Senior Managers in Government.
Bachelor of Science, University of Florida, 1982--attended
1979-82.
Menlo College, Menlo Park, CA--attended 1978.
San Clemente High School, graduated 1977, attended 1973-77.
9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)
1994-2003 Vice President Government Relations
JM Family Enterprises, Inc.
Deerfield Beach, Florida
1990-1994 Director, Public Affairs
Hvide Marine, Inc.
Port Everglades, Florida
1989-92 Assistant to the President
Hvide Marine, Inc.
Port Everglades, Florida
1987-1989 Manager, Marketing
Hvide Marine, Inc.
Port Everglades, Florida
9/96-11/96 Field Director
Bob Martinez for Governor
Tallahassee, Florida
5/86-9/86 Campaign Aide
Tom Gallagher for Governor
Miami, Florida
1983-1984 Special Assistant
United States Senator Paula Hawkins
Washington, DC
6/94-11/94 Press Secretary
U.S. Congressman Connie Mack Campaign
Fort Myers, Florida
11/84-5/86 Special Assistant
U.S. Senator Paula Hawkins
Winter Park, Florida
12/82-5/83 Account Executive
Snyder Varnadore Public Relations Worldwide, Inc.
Sarasota, Florida
7/82-11/82 Campaign Aide
Van B. Poole for United States Senate Campaign
Fort Lauderdale, Florida
10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.)
Broward County Consumer Affairs Board, 1990-1994.
United States Senator Connie Mack Academy Advisory Board, 1989-
2000.
Broward Community College Board of Trustees, 1999-2003.
Broward County Port Director Search Committee 2003.
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.)
Vice President, JM Family Enterprises, Inc.
Southeast Toyota Distributors LLC.
World Omni Financial Corporation, Inc.
JM&A, Inc.
Fidelity Insurance, Inc.
Member, Board of Directors, Giant Holdings, Inc.
Hvide Marine, Inc.
Board of Trustees, Broward Community College.
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)
Broward Community College Board of Trustees, 1999 to present,
Chair, Board of Trustees 1999-2000, Vice Chair, 2000-2001.
Broward Alliance, member, Board of Directors, 1997 to present,
Chair, Board of Directors, 2002-2003, Vice Chair, 2001-2002,
Secretary, 2000-2001, Treasurer, 1999, 2000.
Broward Education Foundation, 2002 to present.
Orange Bowl Committee, member, 2000 to present.
Tower Club, member, 1994-2003.
Broward Navy Days, member, Board of Directors, 1991-2003.
Museum of Discovery & Science, member, Board of Directors,
1996-2003.
Junior Achievement of South Florida, member, Board of
Directors, 1998-2003.
Coral Ridge Country Club, 2000 to present.
U.S. Senator Connie Mack's Academy Advisory Board 1989-2000.
Public Affairs Council, member, Board of Directors, 1998-2003.
Florida Chamber of Commerce, member, Board of Governors, 1998
to present.
Florida Tax Watch, member, Board of Directors, 2000-2003.
Floridian's for School Choice, member, Board of Directors,
1999-2003.
S.W.I.M. Fort Lauderdale, member, Board of Directors, 2000-
2003.
Fort Lauderdale Chamber of Commerce, member, Board of Trustees,
1995-2000.
American Waterways Operators, Chair, Public Affairs Committee,
1992-1994, Port Everglades Association, member, 1987-1994.
13. Political affiliations and activities:
(a) List all offices with a political party which you have held or
any public office for which you have been a candidate.
(b) List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years.
I have never run for public office. I have been affiliated with
political committees. I was an Alternate Delegate to the 1996
Republican National Convention representing Broward County, Florida. I
served on the Jeb Bush for Governor Finance Committee on his 1994,1998
and 2002 election campaigns. I served on U.S. Senator Connie Mack's
Finance Committee in 1988 and 1994. Additionally, I served on Tom
Gallagher for Insurance Commissioner Finance Committee in 2000 and Tom
Gallagher for Chief Financial Officer in Florida in 2002. In my
capacity as Vice President of Government Relations for JM Family
Enterprises I have participated in the RNC Eagle's and Team 100
program, the National Republican Congressional Committee, the
Democratic Congressional Campaign Committee, the Democratic Senatorial
Campaign Committee, the Republican Senatorial Campaign Committee, the
Republican Governor's Association, the Southern Legislative Conference,
the National Conference of State Legislators and the American
Legislative Exchange Council. I served as Treasurer of the JM Family
Associates Political Action Committee from 1994-2002.
(c) Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years.
Tom Gallagher for Senate Campaign--$1,000
Tom Gallagher for Chief Financial Officer Campaign--$500
Jeb Bush for Governor 1994--$500, 1998--$1,000, 2002--$1,000
George Bush for President 2000--$2,000
14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)
U.S. Coast Guard Distinguished Civilian Service Award, 2000.
Freedom Award, Broward Navy Days, 1998.
Public Affairs Council First Fellow, Public Affairs Institute,
2002.
15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.) None.
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated. None.
17. Selection:
(a) Do you know why you were selected for the position to which you
have been nominated by the President?
Professional curriculum fit the required experience for the Federal
Maritime Commission.
(b) What in your background or employment experience do you believe
affirmatively qualifies you for this particular appointment?
Previous maritime experience with a U.S. diversified maritime
company and participation in the industry at the national level and
management and leadership experience.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations, or business organizations if you
are confirmed by the Senate? Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, explain. No.
3. Do you have any plans, commitments, or agreements after
completing government service to resume employment, affiliation, or
practice with your previous employer, business firm, association, or
organization? No.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers. None.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
I am not aware of any.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated?
I am not aware of any.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy.
In my position as Vice President of Government Relations for JM
Family Enterprises during the last nine years my responsibility was to
advocate on behalf of the company at the local, state, and Federal
governments positions consistent with the goals of the corporation. JM
Family Enterprises, Inc. is a $7.8 billion diversified automotive
company headquartered in Deerfield Beach, FL and ranked by Forbes as
the 13th largest privately held company in the United States. In
January 2002, it was ranked No.14 by a survey in Fortune magazine of
the 100 Best Companies to Work For in the United States. Southeast
Toyota Distributors, LLC, is the Nation's largest franchised
distributor of Toyota vehicles. Other JM Family core companies include:
World Omni Financial Corp., offering a complete range of automotive
financial products and services and JM&A Group, providing warranty and
insurance products and services to automobile dealerships throughout
the country. In addition, JM Lexus is the largest volume retail
dealership of Lexus cars and sport utility vehicles in the country.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.)
While I am not aware of any conflicts, if one were to arise I would
seek advice of agency counsel and if advised would recuse myself or
take the appropriate actions to resolve the conflict.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain. No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than for a minor traffic offense? If so, please explain. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain.
Not that I am aware of.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain. None.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination. None.
e. relationship with committee
l. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Please explain how if confirmed, you will review regulations
issued by your department/agency, and work closely with Congress, to
ensure that such regulations comply with the spirit of the laws passed
by Congress.
I will faithfully follow the guidelines and protocols for reviewing
regulations with Congress and ensuring that any regulation complies
with the spirit of the laws passed by Congress.
5. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. How does your previous professional experiences and education
qualify you for the position for which you have been nominated?
I believe the combination of my education and professional career
has qualified me to serve on the Federal Maritime Commission. My nine
years in the maritime industry where I worked for a diversified
maritime transportation company with tanker, offshore supply vessel,
tug and barge and tugboat operations combined with my involvement with
major maritime trade associations have given me the necessary
experience to serve in the capacity as Commissioner. Additionally, my
subsequent experience with a diversified automobile company and as a
community leader serving as the elected leader of several large
professional and educational organizations has continued to build upon
my experience in management and leadership of organizations.
2. Why do you wish to serve in the position for which you have been
nominated?
I am honored to be considered to serve on the Federal Maritime
Commission, in the public sector and working in an industry that is
critical to the economic well being of our country.
3. What goals have you established for your first two years in this
position, if confirmed?
I will faithfully execute the responsibilities of a Commissioner
and the goals set forth by the Agency and the policies enacted by
Congress for the Commission.
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
I believe my career has prepared me to perform the duties of this
position.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when society's problems
should be left to the private sector, and what standards should be used
to determine when a government program is no longer necessary.
I believe the role of government is to ensure the safety of its
citizens, to provide the protection of their rights, support a national
infrastructure, protect the environment and support a system of free
enterprise. The government should enact laws that give clear guidelines
with which the private sector has to operate and allow for fair market
competition. Our laws traditionally have the intent of allowing for the
market place to grow freely and allow for continuous development of
free and uninhibited trade. Any program that is not supporting the
mission of the program or the intent should be reviewed to determine if
is effective. If the dynamics of society have changed or it has become
outdated then it should have its mission changed, consolidated into a
department or program that may have a similar function or de-
authorized.
6. Describe the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated.
The core mission is administering the 1984 Shipping Act and the
Ocean Shipping Reform Act of 1998 which includes the protection of U.S.
Commerce from discriminatory or unfair trade practices by foreign owned
or controlled carriers, licensing OTI's, ensuring financial
responsibility of cruise lines to compensate passengers in the event of
injury or non-performance and a forum for dispute resolution between
parties in the maritime industry.
7. What do you believe to be the top three challenges facing the
department/agency and why?
Continued reluctance by the governments of our major trading
partners to maintain a level playing field in their shipping laws and
policies, changing dynamics of world trade patterns and the
understanding of the mission of the Commission by the audiences it
serves.
8. In reference to question number six, what factors in your
opinion have kept the department/agency from achieving its missions
over the past several years?
I am not sure that I am in a position to say that the Commission
did not achieve its mission.
9. Who are the stakeholders in the work of this department/agency?
Domestic and international carriers, ocean transportation
intermediaries (OTI's), the United States Senate and House of
Representatives, the Executive Branch and all parties that might be
regulated or influenced by the functions of the Commission.
10. What is the proper relationship between the position to which
you have been nominated, and the stakeholders identified in question
number nine?
I believe it is important to work to achieve a comprehensive
understanding of the industry, laws and policies of the Commission and
be a fair, impartial and interactive Commissioner in dealing with all
matters related to the Commission and its Stakeholders.
11. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices.
(a) What do you believe are your responsibilities, if confirmed, to
ensure that your department/agency has proper management and accounting
controls?
It is my understanding that the Chairman of the Commission is
responsible for oversight and management of the finances of the
Commission. However, I would be diligent in reviewing the annual
operating budget and, if asked, provide insight and give input to the
development of same. I have had extensive experience with developing
and managing budgets and will use my professional experience, if called
upon, to assist in this area.
(b) What experience do you have in managing a large organization?
I have been the Chairman of the Board and held other officer
positions of two large organizations and have managed a multi-million
dollar annual department budget for the past nine years.
12. The Government Performance and Results Act requires all
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.
(a) What benefits, if any, do you see in identifying performance
goals and reporting on progress in achieving those goals?
Measuring the performance of any organization is an important
management tool and I am a strong believer in utilizing benchmarks and
performance results.
(b) What steps should Congress consider taking when a department/
agency fails to achieve its performance goals? Should these steps
include the elimination, privatization, downsizing, or consolidation of
departments and/or programs?
I believe that the Agency should be reviewed by the appropriate
committee(s) and a determination should be made based on the dynamics
that caused the agency not to perform.
(c) What performance goals do you believe should be applicable to
your personal performance, if confirmed?
I believe performance standards for individual Commissioners are
related to the overall performance of the organization. Meeting the
goals of the organization should be directly correlated to the overall
performance of the Commission.
13. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
I believe in a relationship that allows for personal growth of
employees by providing leadership, delegating responsibility, setting
performance standards and allowing the employee to thrive in an esprit
de corps atmosphere. I have never had any employee complaints against
me.
14. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please explain.
I have had many work related and personal relationship with
Congress including my employ in Congress. I have maintained many
relationships with current and former Members of Congress. I have
worked with Committees on several issues over the last 20 years in my
professional capacity as Director of Public Affairs for Hvide Marine,
Inc. and Vice President of Government Relations for JM Family
Enterprises, Inc. and its subsidiary companies.
15. Please explain what you believe to be the proper relationship
between yourself, if confirmed, and the Inspector General of your
department/agency.
I believe that there is a proper balance between the actual
operation of an agency and the oversight of an agency including the
role of an Inspector General. I would work with any requests from an
Inspector General and treat them with respect in their effort to carry
out their responsibilities.
16. In the areas under the department/agency's jurisdiction to
which you have been nominated, what legislative action(s) should
Congress consider as priorities? Please state your personal views.
The Ocean Shipping Reform Act of 1998 addressed many, if not most,
of the current issues related to the FMC and its responsibilities. The
maritime industry has been, like most industries, impacted by the rapid
change in technology and the dynamics of world events. The recent
changes by Congress have been effective in addressing these changes.
This was summarized in a Notice of Inquiry on the impact of OSRA and
the resulting published report in September 2001.
17. Within your area of control, will you pledge to develop and
implement a system that allocates discretionary spending in an open
manner through a set of fair and objective established criteria? If
yes, please explain what steps you intend to take and a time frame for
their implementation. If not, please explain why.
From the information that I have been provided and easy access to
public information that the public has to public agencies and
government, I think the process for discretionary spending is very
transparent and available to both the internal (Congress) and external
(the public) audiences of the agency. Having stated this, I will work
within the structure of the Commission to act in a manner that is
ethically and fiscally prudent with respect to discretionary spending.
The Chairman. Thank you very much.
Governor Brennan?
STATEMENT OF HON. JOSEPH E. BRENNAN, NOMINATED TO BE A
COMMISSIONER, FEDERAL MARITIME COMMISSION
Governor Brennan: Thank you very much, Mr. Chairman. It's a
pleasure to appear before you as a nominee for the Federal
Maritime Commission. I have served on this Commission since
1999, and I welcome the opportunity to continue in a second
term. Today, I have some very brief comments.
The Commission is an independent agency that regulates
common carriers in the foreign water-borne commerce of the
United States. The industry regulated by the Commission is
important, clearly, to this economy. Some $500 billion worth of
goods are moved annually in containers going in and out of this
country.
The Commission has numerous functions. For example, the
Commission has the authority to take counteraction when the
laws or policies of a foreign government unfairly and adversely
U.S. shipping. Recently, the Commission has evaluated certain
maritime practices in China, such as access to inland points.
Last December, the Bush Administration signed a new bilateral
maritime agreement with China, and this agreement may end these
unfair practices in China. Although the Commission is an
independent agency, I believe it should give strong
consideration when dealing with restrictive maritime practice
of other nations to the views of the Executive Branch which
guides U.S. foreign policy.
The Commission also investigates possible statutory
violations, such as mis-descriptions of cargo in operation
without a bond, license, or tariff. It ensures that passenger
vessel operators have adequate funds to compensate passengers
in the event of nonperformance or injury. Furthermore, the
Commission protects against carrier agreements that might take
undue advantage of the antitrust exemption given to ocean
carriers.
There are also, before the Commission, several exemption
petitions filed by non-vessel operating common carriers. The
petitions ask for an exemption from tariff publication or the
ability to enter into confidential contracts, just as vessel
operating carriers do. I believe the Commission recognizes the
important role that NVOs play in the industry, and the
significance of the changes sought by these exemption
petitions. The Commission is thoroughly reviewing the petitions
and some 500 comments in the record, and is examining all of
its options under the law.
In closing, I would like to note that while the two
nominees today for the Federal Maritime Commission are a
Democrat, and my friend, Paul Anderson, a Republican, the
Commission acts as a truly nonpartisan body, especially when
compared to the time I spent in the state legislature and in
the Congress. In fact, being on the Commission is most like the
4 years I spent as attorney general of Maine, where you just,
sort of, call them down the middle.
I want to thank you very much for considering my
nomination. I'd be delighted to try to respond to any
questions.
[The prepared statement and biographical information of
Governor Brennan follow:]
Prepared Statement of Hon. Joseph E. Brennan, Commissioner,
Federal Maritime Commission
Mr. Chairman and members of the Committee, it is a pleasure to
appear before you as a nominee for the Federal Maritime Commission. I
have served on the Commission since 1999 and would welcome the
opportunity to continue for a second term. Today I have some brief
comments on the overall role of the Commission.
The Federal Maritime Commission is an independent agency that
regulates common carriers in the foreign waterborne commerce of the
U.S. This industry regulated by the Commission is important to the
United States economy. Some $500 billion worth of goods move annually
in containers shipped to and from U.S. ports.
The Commission has numerous functions. For example, the Commission
has the authority to take counteraction when the laws of a foreign
government unfairly and adversely affect U.S. shipping. Recently the
Commission has evaluated certain maritime practices in China, such as
access to inland points. Last December the administration signed a new
bilateral maritime agreement with China, and this agreement may end the
alleged unfair practices in China. Although the Commission is an
independent agency, I believe it should give strong consideration, when
dealing with restrictive maritime practice of other nations, to the
views of the executive branch, which guides U.S. foreign policy.
The Commission also investigates possible statutory violations,
such as misdescriptions of cargo and operation without a bond, license,
or tariff. It ensures that passenger-vessel operators have adequate
funds to compensate passengers in the event of nonperformance or
injury. Furthermore, the Commission protects against carrier agreements
that might take undue advantage of the antitrust exemption given to
ocean carriers.
There are also before the Commission several exemption petitions
filed by non-vessel-operating common carriers. The petitions ask for an
exemption from tariff publication or the ability to enter into
confidential contracts, just as vessel-operating carriers do. I believe
the Commission recognizes the important role that NVOs play in the
industry and the significance of the changes sought by these exemption
petitions. The Commission is thoroughly reviewing the petitions and the
some 500 comments in the record and is examining all of its options
under the law.
In closing, I would like to note that, while the two nominees today
for the Federal Maritime Commission are a Democrat and a Republican,
the Commission acts as a truly non-partisan body, especially when
compared to the time I spent in the state legislature and in the
Congress. In fact, being on the Commission is most like the four years
I served as attorney general in Maine, where you just call them down
the middle. Thank you for considering my nomination. I would be happy
to answer any questions.
______
a. biographical information
1. Name: (Include any former names or nicknames used.) Joseph
Edward Brennan (Joe).
2. Position to which nominated: Commissioner of the Federal
Maritime Commission.
3. Date of nomination: March 12, 2004.
4. Address: (List current place of residence and office addresses.)
Residence: Information not released to the public.
Office: Federal Maritime Commission, 800 North Capitol Street,
N.W., Suite 1032, Washington, DC 20573.
5. Date and place of birth: 11/2/34; Portland, Maine.
6. Marital status: (Include maiden name of wife or husband's name.)
Married to Constance LaPointe Brennan.
7. Names and ages of children: (Include stepchildren and children
from previous marriages.)
Joseph E. Brennan, Age 34; Tara E. Brennan, Age 32.
8. Education:(List secondary and higher education institutions,
dates attended, degree received, and date degree granted.)
Cheverus High School, Diploma, 1948-1952
Boston College, B.S., 1952-53, 1955-1958
University of Maine School of Law, J.D., 1960-63
9. Employment record:(List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)
United States Army, 1953-55
Teacher, Oxford High School, Oxford, Maine, 1959
Sales representative, P. Lorrilard Co. Portland, Maine, 1959-60
Operator of beach concession, self-employed, 1961-62
Library aide, Univ. of Maine School of Law library, 1960-63
Solo legal practice, Portland, Maine, 1963-73
State representative, Maine House of Representatives, 1965-71
County attorney, Cumberland County, Maine, 1971-73
State senator, Maine State Senate, 1973-74
State attorney general, State of Maine, 1974-78
Governor of Maine, 1979-86
Member of Congress, U.S. House of Representatives, 1987-91
Of counsel attorney, Verner Liipfert, Washington, D.C., 1991-94
Commissioner, Federal Maritime Commission, 1999 to present
10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with federal, state,
or local governments, other than those listed above.)
State representative, Maine House of Representatives, 1965-71
County attorney, Cumberland County, Maine, 1971-73
State senator, Maine State Senate, 1973-74
State attorney general, State of Maine, 1974-78
Governor of Maine, 1979-86
Member of Congress, U.S. House of Representatives, 1987-91
11. Business relationships:(List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.) None.
12. Memberships:(List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)
Maine Bar Association American Legion Amvets
Irish-American Society
Cathedral of the Immaculate Conception Parish
13. Political affiliations and activities:
(a) List all offices with a political party which you have held or
any public office for which you have been a candidate.
I have held no office in a political party. I have been a candidate
and elected to all offices listed for Question 10. I have also been a
candidate for the U.S. Senate.
(b) List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years.
I have been a member of the Democratic Party and have supported
candidates of my . party for 40 years, but I have held no office in the
Party.
(c) Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of$500 or more for the past 10 years.
None of $500 or more.
14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)
I have received honorary degrees or awards from the following
institutions:
Bowdoin College
University of Maine
St. Joseph's College
University of New England
Thomas College
Boston College Alumni Award
Military medal--National Defense Medal and Good Conduct. U.S.
Army, 1953-55
15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.)
During a number of campaigns for public office, various op-ed
pieces of mine were published, none dealing with the Federal Maritime
Commission.
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated.
I have attached two copies of the three speeches that I have given
on the topic of the Federal Maritime Commission:
(1) Remarks before the National Customs Brokers and Forwarders
Association of America, Inc., Tucson, Arizona, March 14, 2000.
(2) Remarks before conference of Lloyd's List Events on
Mediterranean Sea Transport and Logistics, Marseille, France,
November 12, 2002.
(3) Remarks in briefings of International Management and
Development Institute, Copenhagen, Denmark, April 24, 2003, and
Oslo, Norway, April 25, 2003.
17. Selection:
(a) Do you know why you were selected for the position to which you
have been nominated by the President?
I was interested in continuing to serve on the Commission, and I
believe that the President was advised that I could serve effectively.
(b) What in your background or employment experience do you believe
affirmatively qualifies you for this particular appointment?
I have served as a commissioner of the Federal Maritime Commission
since November 17, 1999. Before that time, I served four years in the
U.S. House of Representatives on the Committee for Merchant Marine and
Fisheries, which had certain oversight responsibilities over the
maritime industry. I have also have substantial public policy
experience as a district attorney, attorney general, and governor of
Maine.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations, or business organizations if you
are confirmed by the Senate? Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, please explain. No.
3. Do you have any plans, commitments, or agreements after
completing government service to resume employment, affiliation, or
practice with your previous employer, business firm, association, or
organization? No.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable?
I intend to serve the full term.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers. None.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated. None.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated. None.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy.
From 1991-94, I was with the law firm of Verner Liipfert Bernhard
McPherson Hand of Washington, D.C. During that period, I occasionally
met with members of Congress on issues such as a space station,
possible asbestos legislation, and consumer issues. To the best of my
knowledge, none of these meetings dealt with the responsibilities of
the Federal Maritime Commission.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.)
There are none.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain. No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than for a minor traffic offense? If so, please explain.
I have never been convicted of a crime. I have never been charged
with a crime.
Approximately 50 years ago, as a teenager, I was detained by the
police. There were no charges filed, no court action, and no conviction
record. This may have taken place before my 18th birthday.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain.
Yes. (1) Spickler v. Brennan. Alleged that I illegally attached
real estate. Dismissed upon summary judgment motion; found to be
without merit. (2) Brennan v. Brennan. Divorce proceedings; resolved
amicably. Sept. 22, 1976. Both of above suits were brought in
Cumberland County Superior Court, Portland, Maine.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain. No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination.
I am not aware of any unfavorable information. I believe that my
background as listed in answer to Questions A.9 and A.17 may speak to
favorable information.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees?
Yes, to the best of my ability.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures?
Yes, to the best of my ability.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Please explain how if confirmed, you will review regulations
issued by your department/agency, and work closely with Congress, to
ensure that such regulations comply with the spirit of the laws passed
by Congress.
I will work with the agency's executive director and all staff to
assess the effectiveness of the agency's regulations in terms of both
the letter and the spirit of the law. I will also encourage the
agency's continued efforts to inform Congress of the agency's
regulatory functions by means of reports and congressional testimony.
5. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. How does your previous professional experiences and education
qualify you for the position for which you have been nominated?
I served four years in the U.S. House of Representatives as a
member of the Subcommittee on Merchant Marine and Fisheries. I also
have substantial experience in public policy as a state legislator,
state attorney general, governor, and member of Congress.
2. Why do you wish to serve in the position for which you have been
nominated?
I have had a long and very active interest in public policy. I
believe that I can use my experience in Congress and other high
government positions, as well as my experience in the practice of law,
to make a positive contribution to carrying out the mission of the
Federal Maritime Commission.
3. What goals have you established for your first two years in this
position, if confirmed?
My basic goal would be to carry out the mandate of the Commission
as set out by Congress. In broad terms, this involves insuring a fair,
efficient, and competitive system of oceanborne transportation in the
foreign commerce of the United States.
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
I am not aware of any.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when society's problems
should be left to the private sector, and what standards should be used
to determine when a government program is no longer necessary.
I believe that government should not be involved in matters that
freely acting individuals can best take care of themselves. I also
recognize that government does have a responsibility to help those in
need, such as the elderly, the disabled, and children. Government
recognizes this responsibility today with Social Security, Medicare,
and programs that help children of low-income families.
I think government has a role in assuring a safe workplace for its
citizens, and I believe it is meeting that responsibility.
I think that government involvement can go too far. For example, in
my home state of Maine, the state used to operate liquor stores. I
believe that the private sector is capable of selling liquor under
appropriate regulation that protects against sales to minors or visibly
intoxicated people.
I think that government can help business by guaranteeing loans to
business. This has been done in Maine to help create economic
development and jobs.
Before we enact legislation or adopt a regulation, the question
must first be asked, ``Is this law or regulation necessary?'' Then a
second question should be, ``Will the burden imposed by the proposed
law or regulation outweigh the good that might be done?'' The test must
be one of balance. This same standard--whether the burden imposed
outweighs the good intended--should also be used to weigh whether or
not an existing law or regulation should be repealed.
In short, government should become involved in the private sector
when the private sector is not itself protecting the public interest,
public health, and public safety, and we must always be cognizant of
the balance between the burden imposed and the good intended.
6. Describe the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated.
The Commission insures reasonable commercial practices by shippers,
common carriers, transportation intermediaries, and marine terminal
operators in the foreign oceanborne commerce of the U.S. The FMC is
working to prevent anticompetitive practices and certain other
commercial conduct prohibited by the Shipping Act of 1984 and other
statutes administered by the agency. Because the law gives ocean common
carriers a limited immunity from the antitrust laws, the Commission
must monitor conference agreements and discussion agreements entered
into by ocean common carriers. If an ocean carrier agreement is likely,
by a reduction in competition, to produce an unreasonable reduction in
transportation service or an unreasonable increase in transportation
cost, the Commission may seek to prevent the agreement from taking
effect. The Commission also licenses ocean transportation
intermediaries and requires that certain passenger vessel operators
prove adequate financial ability to pay judgments for personal injury
or death of passengers or to repay fares in the event of
nonperformance.
7. What do you believe to be the top three challenges facing the
department/agency and why?
I believe the main challenges for the Commission are the petitions
filed by ocean transportation intermediaries seeking exemptions from
various provisions of the Shipping Act of 1984, the rulemaking on
changing the level of financial security for the passenger vessel
security program, and the rulemaking that would change the agency's
rules as to the filing of carrier agreements. These are all key areas
of the Commission's work.
8. In reference to question number six, what factors in your
opinion have kept the department/agency from achieving its missions
over the past several years?
I believe the Commission has been able to achieve its mission in
recent years. The Commission has, for example, carefully scrutinized
possible unfair shipping practices in the People's Republic of China,
as well as laws and regulations relating to Japanese ports. Both
matters are the subject of pending rulemakings at the agency. The
Commission continues to review information reports filed by Japanese
and U.S.-flag carriers on the effects of Japanese port practices and
changes to Japanese laws and regulations. The Commission has also been
effective in monitoring U.S. ocean shipping to uncover any unreasonable
or otherwise prohibited practices under the Shipping Act of 1984. In
the past Fiscal Year, the Commission collected approximately $3 million
in fines and penalties.
9. Who are the stakeholders in the work of this department/agency?
The main stakeholders are vessel-operating carriers, non-vessel-
operating common carriers, freight forwarders, shippers, marine
terminal operators, and U.S. consumers generally.
10. What is the proper relationship between the position to which
you have been nominated, and the stakeholders identified in question
number nine?
The Federal Maritime Commission has a quasi-judicial role with
regard to complaints before the Commission and a quasi-legislative
function regarding the promulgation of regulations. Commissioners make
decisions based on Federal law, and those decisions affect the daily
operations of industry participants.
11. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices.
(a) What do you believe are your responsibilities, if confirmed, to
ensure that your department/agency has proper management and accounting
controls?
I would not have a direct role in this area, because the Chairman
of the Federal Maritime Commission is responsible for the financial
management of the agency. I would support his or her efforts to use the
financial resources of the agency most efficiently.
(b) What experience do you have in managing a large organization?
1 have managed organizations of considerable size and complexity as
the county attorney for Cumberland County in Maine (1971-73), attorney
general of Maine (1974-78), and governor of Maine (1979-86).
12. The Government Performance and Results Act requires all
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.
(a) What benefits, if any, do you see in identifying performance
goals and reporting on progress in achieving those goals?
While the Commission's functions are determined by statute, the
identification of performance goals, as well as reports to Congress on
the success in achieving those goals, can help the agency and Congress
to assess the agency's overall performance. Such goals and reporting
may lead to a more efficient regulatory process, increased compliance
with the law, fair and efficient enforcement, better use of technology,
and more efficient management of the agency.
(b) What steps should Congress consider taking when a department/
agency fails to achieve its performance goals? Should these steps
include the elimination, privatization, downsizing, or consolidation of
departments and/or programs?
The latter steps are available to Congress as possible remedies for
failed performance by a department or agency. Elimination, downsizing,
etc. may be warranted in some circumstances, while in others a lack of
funding or personnel may be the cause of failed agency performance. I
believe that Congress should take action that addresses the problem at
issue, dealing with each case individually.
(c) What performance goals do you believe should be applicable to
your personal performance, if confirmed?
I believe that, broadly speaking, my performance goals are to
administer relevant Federal laws and regulations impartially and, where
appropriate, to improve the fair and efficient administration of the
law and public policy.
13. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
I believe that it is essential to hire and to promote the best
people one can find. I think it is critical to listen to staff and to
support them, but also to remember that it is ultimately my
responsibility as a commissioner to carry out my independent judgment.
I believe it is important to publicly recognize quality work by staff
and likewise to address promptly any work that is not of the quality
that the people of the United States have a right to expect from their
public servants. To the best of my knowledge, no employee complaint has
been brought against me during my some 30 years in high-level,
supervisory positions.
14. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please explain.
I served four years in the U.S. Congress, where I was privileged to
work with numerous members, many of whom still serve in Congress.
15. Please explain what you believe to be the proper relationship
between yourself, if confirmed, and the Inspector General of your
department/agency.
As a commissioner, I am available to assist the Office of the
Inspector General in its monitoring of the efficiency, effectiveness,
and any abuse in the programs of the Commission. Fair consideration
must be given to any recommendations presented by the IG for the
management and operations of the agency.
16. In the areas under the department/agency's jurisdiction to
which you have been nominated, what legislative action(s) should
Congress consider as priorities? Please state your personal views.
The level of financial security for nonperformance by a passenger
vessel is a regulatory matter, but the amount of casualty coverage is
set by statute. Congress may wish to consider increasing the level of
coverage for casualty (death or injury during a cruise) or allowing the
Commission to establish an adequate level by rule. The statute
currently sets casualty coverage for cruise lines at $20,000 (46 U.S.C.
App. 817d). This level of coverage may be inadequate to compensate
passengers who suffer death or injury on a cruise.
17. Within your area of control, will you pledge to develop and
implement a system that allocates discretionary spending in an open
manner through a set of fair and objective established criteria? If
yes, please explain what steps you intend to take and a time frame for
their implementation. If not, please explain why.
I believe that such matters are outside of my area of control. The
chairman of the Federal Maritime Commission is charged with the fair
and objective allocation of discretionary spending, and I can assist
him or her in that function as needed.
The Chairman. Thank you, Governor.
Mr. McGregor?
STATEMENT OF JACK E. McGREGOR, NOMINATED TO BE A MEMBER OF THE
ADVISORY BOARD, SAINT LAWRENCE
SEAWAY DEVELOPMENT CORPORATION
Mr. McGregor. Chairman McCain, Senator Hollings, and
Members of the Committee, it's an honor to be here before you.
Thank you for the opportunity to meet with you as you consider
my nomination by President Bush to the Advisory Board of the
Saint Lawrence Seaway Development Corporation.
My background includes four different corporate leadership
positions, nine years of public service, extensive experience
with regulatory and administrative processes, familiarity with
some transportation issues, and active strategic planning
participation on several boards of substantial institutions and
companies, all over a professional career encompassing 41
years.
If confirmed, my goals will be to work with fellow board
members, the Seaway Development Corporation's administrator,
and Members of Congress to help ensure the long-term safety,
security, reliability, competitiveness, and enhancement of
trade development of the Saint Lawrence Seaway.
The seaway is nearly 50 years old, and has experienced
diminishing traffic in recent years. It is my hope that, with
fellow board members and the agency's leadership, we can help
develop a roadmap for the waterway's next 50 years.
I'll be pleased to respond to any questions you and your
colleagues may have, Mr. Chairman.
[The prepared statement and biographical information of Mr.
McGregor follow:]
Prepared Statement of Jack E. McGregor, Nominee for Advisory Board,
Saint Lawrence Seaway Development Corporation
Chairman McCain, Senator Hollings, and members of the Committee, it
is an honor to be here before you. Thank you for the opportunity to
meet with you as you consider my nomination by President Bush to the
Advisory Board of the Saint Lawrence Seaway Development Corporation.
My background includes four different corporate leadership
positions, nine years of public service, extensive experience with
regulatory and administrative processes, a familiarity with some
transportation issues, and active strategic-planning participation on
several Boards of substantial institutions and companies, all over a
professional career encompassing 41 years.
If confirmed, my goals will be to work with fellow Board members,
the Seaway Development Corporation's Administrator, and members of
Congress to help ensure the long-term safety, security, reliability,
competitiveness, and enhancement of trade development of the Saint
Lawrence Seaway.
The Seaway is nearly 50 years old, and has experienced diminishing
traffic in recent years. It is my hope that with fellow Board members
and the agency's leadership, we can help develop a roadmap for the
waterway's next 50 years.
I will be pleased to answer any questions you and your colleagues
may have, Mr. Chairman.
______
a. biographical information
1. Name: (Include any former names or nicknames used.) Jack Edwin
McGregor.
2. Position to which nominated: Advisory Board Member, St. Lawrence
Seaway Development Corporation.
3. Date of nomination: November 25, 2003.
4. Address: (List current place of residence and office addresses.)
Residence: Information not released to the public.
Office: 1115 Broad Street, Bridgeport, CT 06604
5. Date and place of birth: September 22, 1934; Kittanning; PA.
6. Marital status: Married, Mary-Jane Foster.
7. Names and ages of children: (Include maiden name of wife or
husband's name.)
Nancy D. McGregor, 45; Douglas H. McGregor, 44; Elisabeth M.
Ives, 43; Heather M. Worthington, 41.
Stepchildren: DeVer F. Warner, 19; Margaret R. Warner, 17.
8. Education: (List secondary and higher education institutions,
dates attended, degree received, and date degree granted.)
Wilkinsburg High School, 1949-52, Academic, June 1952
Yale University, 1952-56, B.S., June 1956
University of Pittsburgh School of Law, 1959-62, LL.B., June
1962
9. Employment Record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)
1956-59--Second and then First Lieutenant, U.S. Marine Corps.;
Quantico VA, Camp LeJeune NC, U.S. Navy 6th Fleet (Atlantic and
Mediterranean), Arlington VA
1959-61--Captain, U.S. Marine Corps Reserve
1959-62--Pitt Law Library Staff Assistant (part-time while in
law school)
1960--Rockwell Manufacturing Co., Pittsburgh, PA--summer
research intern
1961--Alcoa, Pittsburgh, PA--summer research intern
1962-70--State Senator, Commonwealth of Pennsylvania,
Harrisburg, PA
1962-68--Associate, law firm of Reed Smith, Pittsburgh, PA
1966-70--President, Pittsburgh Penguins, Pittsburgh, PA
1970-71--Associate, Reed Smith, Washington, D.C.
1971--Assistant Legal Adviser, U.S. Department of State
1972--General Counsel, U.S. Pay Board, U.S.. Office of Economic
Stabilization
1972-74--General Counsel and then Vice President and General
Counsel, Potomac Electric Power Company, Washington, D.C.
1974-79--Vice President and General Counsel and then Executive
Vice President and Chief Operating Officer, Carey Energy Corp.
and New England Petroleum Corp., New York, NY
1979-85--President, Hampton-Douglas Corp., International Water
Resources, Ltd., and Caribbean Basin Corp., all in Bedford, NY
and New York, NY
1985-95--Executive Vice President, then President and Chief
Operating Officer, then President and C.E.O. of Aquarion
Company (formerly The Hydraulic Company), Bridgeport, CT
1995 to present--Of Counsel, law firm of Cohen and Wolf, P.C.,
Bridgeport, Connecticut
10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.)
Borough of Forest Hills, PA, Election Board Member, 1960-62
Pennsylvania Arts Commission, 1966-70
Director, N.Y.C. Off-Track Betting Corp., 1978-81
Member, State of Connecticut's Team Bridgeport, 1995-96
see Paragraph 9 above, 1956-59 and 1962-72
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.)
Governor, National Hockey League
President and Director, Pittsburgh Penguins Hockey Club
Trustee, Barnum Museum
Trustee, Greater Bridgeport YMCA
Trustee, Mystic Aquarium
Director, N.Y.C. Off-Track Betting Corp.
President and Director, National Association of Water Companies
Trustee, Seven Springs, Inc.
Trustee, Point Park College
Trustee, Fairfield University
Trustee, University of Bridgeport
Trustee, Yale-New Haven Hospital
Trustee, Western Pennsylvania School for the Deaf
General Counsel and later Vice President, Potomac Electric
Power Company
General Counsel and later Executive Vice President and Chief
Operating Officer, Carey Energy Corp. and New England Petroleum
Corp.
President, Hampton-Douglas Corp.
President, International Water Resources, Ltd.
President, Caribbean Basin Corp.
Chairman and Director, Bridgeport Regional Business Council
Director, The Bank Mart
Director, People's Bank
Director, Bay State Gas Company
Director, Physicians Health Services, Inc.
President and COO, later CEO, Bridgeport Hydraulic Company
Executive Vice President, later Chief Operating Officer, then
President and CEO, Director, The Hydraulic Company, later
Aquarion Company
Director, Aquarion Water Company; Director, CDG Technology,
Inc.
Director, Connecticut Committee of Regional Planning
Association; Director, Atlantic League of Professional Baseball
Clubs, Inc.
Managing Member, Bridgeport Bluefish Professional Baseball
Club, LLC
Managing Member, Bridgeport Waterfront Investors, LLC
Managing Member, Freeborn Investors LLC
Managing Member, Westchester Baseball LLC
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)
Connecticut Bar Association
District of Columbia Bar Association
Greater Bridgeport Bar Association
Allegheny County Bar Association
Pennsylvania Bar Association
American Bar Association; Delta Kappa Epsilon
Aspetuck Fish and Game Club
Skull and Bones; Mory's Association
Congregational Church of Easton
St. Timothy's Episcopal Church of Fairfield
Edgewood Presbyterian Church
Chevy Chase Presbyterian Church
Greenfield Hill Congregational Church
Bedford Presbyterian Church
Marine Corps League
Order of the Coif
Country Club of Fairfield
Chevy Chase Club
Brooklawn Country Club
Connecticut Golf Club
Bedford Golf and Tennis Club
Columbia Country Club
Edgewood Country Club
Racquet & Tennis Club
Yale Club of NYC
Yale Club of Western Pennsylvania
Edgewood Community Club
F Street Club
13. Political affiliations and activities:
(a) Offices held--Pennsylvania State Senator, 1962-70; Member,
Forest Hills Election Board, 1960-62
(b) Memberships and offices held in political parties or election
committees in last 10 years--Member, Republican Party; Vice Chairman,
Congressman Christopher Shays Finance Committee; Member, Re-Elect
Governor Rowland Finance Committee; Co-Chairman, Governor-Elect Rowland
Transition Committee; Member, Re-Elect Lt. Governor Rell Finance
Committee; Member, Torres Finance Committee; Member, Connecticut
Republicans Finance Committee
(c) Political contributions aggregating $500 or more from 1994 to
date:
Americans for Common Sense Gov't PAC (Shays) $5,000
Aquarion PAC (Aquarion Water Co.) $2,740
Big Tent PAC (Specter) $500
BridgePac (Bridgeport GOP) $3,000
Committee for Responsible Gov't PAC (Whitman) $1,000
NAWC PAC (Nat'l Ass'n of Water Cos.) $1,400
Amicone for Mayor $2,500 (Jt.Ckg.); $2,500
Bernhard for State Rep. $500
Blumenthal for A.G. $500 (Jt.Ckg.); $250
Boyle for Probate Court $500
Burnham for Senate $900
Bush-Cheney Recount Fund $1,000
Bush for President $3,000
Caruso for Probate Court $1,100
CT Republican Federal Campaign Committee $2,600
CT Republicans $20,150
Curwen for State Rep. $500
Dole for President $1,000
Easton Republicans $525
Friends of Giuliani $1,000
Ganim for Mayor $1,000 (Jt.Ckg.); $2,400
Guman for Mayor $500 (Jt.Ckg.); $250
Hammers for State Senate $500
Harkins for State Rep. $525
Hastert for Congress $500
Hatch for President $1,000
Hatch for Senate $2,500
Jeffords for Senate $2,000
Johnson for Congress $500
Kemp for Vice President $500
Larson for Congress $600 (Jt.Ckg.); $100
Lazio for Senate $750
Lieberman for President $1,000
Maloney for Congress $750 (Jt.Ckg.); $400
Martensen for City Council $1,000
McKinney for State Senate $1,250
Metsopoulus for 1st Selectman $1,050
Mulrow for Comptroller $2,000 (Jt.Ckg.); $1,500
National Republican Senatorial Committee $6,350
Newton for State Rep. $250 (Jt.Ckg.); $250
Nielsen for Congress $4,250
Norton for Congress $1,000
O'Connor for Congress $500
Pataki for Governor $1,000 (Jt.Ckg.); $1,000
Penn for State Senate $750 (Jt.Ckg.); $1,700
Rell for Lt. Governor $450 (Jt.Ckg.); $2,825
Republican Governors Association $1,000
Republican National Committee $2,430
Republican Senatorial Inner Circle $1,500
Restiano for Mayor $2,000 (Jt.Ckg.); $500
Rowland for Governor $1,000 (Jt.Ckg.); $7,350
Scarpetti for State Senate $500
Schiavone for Mayor $500
Shays for Congress $1,500 (Jt.Ckg.); $7,300
Simmons for Congress $900
Spano for County Exec.$750 (Jt.Ckg.)
Specter for Senate $2,000
Stone for State Rep. $525
Torres for Mayor $2,250
14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)
Honorary Doctor of Laws, Quinnipiac University
Entrepreneur of the Year, Greater Bridgeport Junior Chamber of
Commerce
Good Scout Award, Eastern Fairfield County, Boy Scouts of
America
University of Pittsburgh Medallion of Distinction
Member, President Reagan's Business Task Force to Grenada
Businessman of the Year, Allegheny County;
Order of the Coif
Outstanding State Legislator (Rutgers Univ.). Scholarships
included Regular NROTC and Yale Club of Pittsburgh, to Yale,
and full scholarship from University of Pittsburgh School of
Law
15. Published Writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.)
Note--Broadcast Licensee's Past Conduct as a Determinant of the
Public Interest, 23 University of Pittsburgh Law Review 157-171
Book Note--Andrew Johnson, President on Trial, 23 University of
Pittsburgh Law Review 256-57
Recent Decision: Taxation--Bond Premium Amortization Deduction,
22 University of Pittsburgh Law Review 639-43
Article--Problems of U.S. Participation in the European Common
Market, Co-Author, U.S. Participation and the Constitution, 23
University of Pittsburgh Law Review 637-58.
During the course of forty-one professional years, I have written
occasional letters to the editor of local newspapers responding to
assorted issues.
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated.
None on topics relevant to the position for which I have been
nominated.
17. Selection:
(a) Do you know why you were selected for the position to which you
have been nominated by the President?
My understanding is that I was selected for this position because
of my prior experience of nine years of public service, my familiarity
with transportation issues relating to petroleum products, my extensive
experiences with regulatory and administrative processes, and my
participation on 27 different Boards of substantial institutions and
companies over a professional career encompassing 41 years.
(b) What in your background or employment experience do you believe
affirmatively qualifies you for this particular appointment?
In my 8 years service as a Pennsylvania State Senator and chairman
of the Senate's Federal Relations Committee, I was actively involved in
Great Lake States Compact initiatives. In my 4 years with the National
Hockey League, I interfaced with several Canadian industry and
government leaders. In my 3 years in the electric utility industry and
10 years in the drinking water industry, I was actively engaged in many
administrative and regulatory proceedings. In my one year with the
Federal Government, I was actively engaged in administrative rule
making proceedings. In my 5 years in the oil industry and then 7 years
of active involvement in oil-related projects, I was regularly exposed
to maritime transportation matters. My participation on 27 different
Boards as a director or trustee of substantial institutions and
companies over a professional career encompassing 41 years also
affirmatively qualifies me for this position. My exposure to and
experience with environmentally sensitive economic projects in 3
different northeastern states adds a timely dimension to my
qualifications. Finally, my experience in supervising military and law
enforcement personnel is another added dimension of my relevant
experiences.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations, or business organizations if you
are confirmed by the Senate?
It has been my understanding that I need not sever my of Counsel
relationship with my law firm nor my Managing Member relationships with
my two investment/development firms should I be confirmed for this
Advisory Board position. Should the Senate be of a different view, I
would have to reconsider my availability for this position.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, explain.
I have no commitments or agreements to pursue outside employment
during my service with the government, but I hope to do so, as set
forth in B(1) above.
3. Do you have any plans, commitments, or agreements after
completing government service to resume employment, affiliation, or
practice with your previous employers, business firms, associations, or
organizations?
After completing this particular government service, I hope to
continue my professional relationships as noted in B(1) above but have
no commitments nor agreements to do so.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable?
If confirmed, I expect to serve at the pleasure of the President.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers.
I have no financial arrangements nor deferred compensation
agreements with business associates, clients or customers other than
(a) 50 percent equity in the investment and development firm of
Freeborn Investors, LLC; (b) 29 percent equity in the sports
development firm of Westchester Baseball, LLC; (c) 20 percent of law
firm fees received from clients generated by me; and (d) pensions from
three previous employers, set forth in my financial disclosures in
Section G(1) and (8) below. My spouse holds an identical percentage in
(a) and (b).
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
I have no investments, obligations, liabilities, or other
relationships that could involve current or potential conflicts of
interest.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
I have had no such business relationship, dealing, or financial
transaction for myself, a client, or as agent, in the past 10 years.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy.
In 1994-95, I served as Chairman of the Bridgeport Regional
Business Council, which attempts to influence public policy regarding
regional economic development matters. Until 1995, I was active in the
National Association of Water Companies (NAWC) and served as its
President in 1994; NAWC attempts to influence the administration and
execution of law and public policy relating to the investor-owned
drinking water industry. I've engaged in no other lobbying activities
in the past 10 years.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.)
(Not Applicable)
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain. No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than for a minor traffic offense? If so, please explain. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain.
Yes. See below.
(a) In my capacity as General Counsel of the U.S. Pay Board in
1971-72, I participated in the rule-making proceedings of that
administrative agency. In my capacity as Vice President and General
Counsel of Potomac Electric Power Company in 1971-74, I was involved in
several administrative proceedings with the Public Service Commissions
in Maryland, Virginia, and the District of Columbia, and in some civil
litigation. In my capacity as Vice President and General Counsel, then
Executive Vice President and Chief Operating Officer, of Carey Energy
Corp. and New England Petroleum Corp. in 1974-79, I was involved in
some administrative proceedings with the New York Public Service
Commission and several civil litigation matters, which included parties
such as Libyan National Oil Company, National Iranian Oil Company, Con
Edison of N.Y., and Long Island Lighting Company.
(b) In my capacity of director at People's Bank and The Bank Mart,
I was one of a class of defendants in some nuisance litigation and, in
the case of Bank Mart, was one of 15 former directors of a savings bank
sued by the FDIC for alleged negligence. The bank failed 3 or so years
after I left its Board to go on the People's Bank Board. The complaint,
brought in 1995, regarded Board approval of certain real estate
development loans in the 1980s over a 7-year period, 3 of which I had
served on. the Board but not on its Loan Review Committee. FDIC, as
Receiver for The Bank Mart v. Barbara A. Bodine as Executrix of the
Estate of Richard P. Bodine, et al., U.S. District Court, District of
Connecticut Docket No. 3:95 CV563AHN, was settled in 1998.
(c) While serving as Executive Vice President of The Hydraulic
Company (THC), beginning in 1985, and President of its Bridgeport
Hydraulic Company (BHC) water utility subsidiary, commencing 1986, the
company initiated administrative proceedings before the Connecticut
Department of Public Utility Control (DPUC) to increase water service
rates as follows:
Effective Date of Rate Cases for BHC:
9/16/86
6/1/89
1/1/91
8/1/93
Additionally, BHC's Stamford Water Company (SWC) subsidiary
initiated similar proceedings before the DPUC to increase water service
rates as follows:
Effective Date of Rate Cases for SWC:
7/29/85
12/30/86
8/28/91
Also, while serving as Executive Vice President of THC, and
President of its BHC water utility subsidiary, the DPUC in December
1986 concluded an investigation of BHC's meter testing and meter test
reporting practices by entering into a settlement agreement with the
Company. Under the settlement, BHC submitted a management control plan
regarding the meter testing function and agreed to donate $15,000 to a
local charity.
In October 1987, while serving as Executive Vice President and a
Director of THC and President of its BHC water company subsidiary, the
DPUC ordered seven utilities including BHC and SWC to show cause why
the rates should not be reduced to pass on to customers benefits to
lower Federal taxes resulting from the Tax Reform Act of 1986. Under
the terms of a negotiated settlement, BHC and SWC agreed to decrease
their water rates by 1.02 percent and 6.3 percent, respectively.
In 1988, while serving as the President and a Director of THC and
Chairman and CEO of the company's Timco lumber processing subsidiary,
the New Hampshire Department of Environmental Services issued an
administrative order for excessive carbon monoxide emissions from
Timco's co-generation facility. In January 1989 Timco submitted to the
DES a preliminary plan to bring the plant into compliance with
applicable regulations.
In 1989, YMC, Inc., a subsidiary of SRK, Inc., disclosed to the EPA
certain facts concerning testing conducted and reported in 1986 and in
1987 in a manner that violated a laboratory contract with the EPA.
After cooperating fully with the EPA's investigation, YWC subsequently
entered a guilty plea and was fined and agreed to pay the expenses of
DOJ and to temporarily withdraw from the contract laboratory program
until YWC was acquired by The Hydraulic Company, while I was serving as
President and CEO and a Director of THC, which occurred on December 7,
1990.
While serving as President and CEO and a Director of THC, on
February 16, 1990 the company's Timco subsidiary received a notice of
violation in testing requirements from the USEPA relating to its co
generation facility's air emissions. Timco renovated the facility to
comply with DES emission standards. A settlement relating to Timco's
emissions was signed in 1991 by the USEPA, the DES and Timco, and Timco
paid a $4,000 fine to settle the matter.
1992 No legal proceedings
1993 No legal proceedings
1994 No legal proceedings
1995 No legal proceedings
Note: On October 1, 1995, I became Chairman of the Board of
Aquarion Company, successor to THC, and under a management succession
plan relinquished my responsibilities as President and CEO. I served as
Chairman until October 1996, whereupon I continued to serve as a
Director of Aquarion and its BHC water company subsidiary. Since 1999,
I have served on the Board of Aquarion Water Company, its successor.
On October 1, 1996, while serving as a Director of BHC, its
Ridgefield Water Company, which was subsequently merged into the
company's BHC subsidiary, entered into a consent agreement with the
State of Connecticut DEP relating to certain water supply sources
located in the town of Ridgefield. The consent agreement requires BHC
to meet various milestones on certain dates in order to St. Lawrence
Seaway Deve1opment Corporation Advisory Board bring the Ridgefield
water supply system into compliance with DEP water diversion
regulations.
While serving as a Director of Aquarion on March 26, 1997, the
company sold its IEA subsidiary to American Environmental Network. On
February 26, 1997, an employee of IEA filed suit in New Jersey Superior
Court, Docket No. L 130-997, alleging her employment had been
terminated because of pregnancy. On April 27, 1997, Aquarion was named
a defendant. There was no finding of liability against Aquarion, and
due to AEN's bankruptcy, the suit did not proceed.
1998 No legal proceedings
While serving as a Director of Aquarion Company, in a complaint
filed in the Connecticut Superior Court in 1999 against the Company's
Main Street South subsidiary, plaintiffs alleged damages from a leaking
underground storage tank located on property owned by the Company. The
matter was resolved through a settlement agreement reached among the
parties in 2003.
While serving as a Director of Aquarion Water Company, in a
complaint filed in the Connecticut Superior Court, Bridgeport, dated
June 20, 2000, and revised on September 20, 2000, three plaintiffs
commenced action against Aquarion alleging the Company overcharged for
water service by permitting an oversized water meter to remain
installed at a property site for 10 years. In October 1998, after being
informed of the problem Aquarion installed a smaller meter. The matter
was resolved through a settlement agreement in October 2002.
While serving as a Director of Aquarion Water Company, on or about
January 31, 2002, the Company was served with a complaint by an
employee that had been filed with the Connecticut Commission of Human
Rights & Opportunities alleging discrimination on the basis of race and
sex when she was suspended pending further investigation of job
performance. Subsequently the employee was terminated. While Aquarion
denied all of the material allegations, the matter was resolved through
a confidential settlement agreement and all claims against the Company
were dismissed.
While serving as a Director of Aquarion Water Company, in 2003, a
plaintiff filed a series of lawsuits arising from the condemnation of
an easement by the Connecticut Department of Transportation (DOT) and
the subsequent installation of a fire hydrant on the easement area by
Aquarion. The action against Aquarion, the DOT, and the City of
Stamford was filed in a complaint dated January 31, 2003. In this case,
the DOT took by eminent domain a 5-foot wide easement along the front
yard of the plaintiff in a project implementing various improvements to
the street. During the course of the project, Aquarion relocated an
existing fire hydrant from the existing sidewalk on the front of the
property into the newly acquired easement area on the street side of
plaintiff's picket fence. The hydrant was moved approximately 4 feet
from its prior location. Underlying plaintiff's claims against Aquarion
is his contention that the placement of a fire hydrant on the easement
area was unlawful and constituted a trespass. Aquarion denies all
material allegations and the matter is still pending.
(d) Additional civil litigation: Jack E. McGregor v, Carol D.
McGregor; Bridgeport Superior Court Docket .No. FA-01-02818825, marital
dissolution matter, final divorce decree entered March 6, 1992; William
M. Robinson, Trustee v. Hein, Bridgeport Superior Court Docket No. CV-
92-02998935--I was witness and primary beneficiary in this breach-of
contract action, settled in February 2003; served papers on January 30,
2004 regarding a Petition before the Supreme Court of the State of New
York, County of Westchester, for a Judgment to annul a Special
ordinance adopted by Yonkers City Council in October 2003 permitting
construction of a professional baseball park, because of some alleged
flaws in the environmental review process. Index No. 04-1386--the suit
names as defendants the Mayor, City Council, Yonkers Industrial
Development Agency, other City officials, and Westchester Baseball,
LLC--nominee is a Managing Member of the last named defendant.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination. None.
e. relationship with committee
1. Will you ensure that your board/commission complies with
deadlines for information set by congressional committees?
To the best of my ability.
2. Will you ensure that your board/commission does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures?
To the best of my ability.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. How do your previous professional experiences and education
qualify you for the position for which you have been nominated?
In my 8 years service as a Pennsylvania State Senator and Chairman
of the Senate's Federal Relations Committee, I was actively involved in
Great Lake States Compact initiatives. In my 4 years with the National
Hockey League, I interfaced with several Canadian industry and
government leaders. In my 3 years in the electric utility industry and
10 years in the drinking water industry, I was actively engaged in many
administrative and regulatory proceedings. In my one year with the
Federal Government, I was actively engaged in administrative rule
making proceedings. In my 5 years in the oil industry and then 7 years
in oil-related projects, I was regularly exposed to maritime
transportation matters. My participation on 27 different Boards as a
director or trustee of substantial institutions and companies over a
professional career encompassing 41 years also affirmatively qualifies
me for this position. My exposure to and experience with
environmentally sensitive economic projects in 3 different northeastern
states adds a timely dimension to my qualifications. Finally, my
experience in supervising military and law enforcement personnel is
another added dimension of my relevant experiences.
My bachelor of science undergraduate degree, my law degree, my
military service, my 9 years of public service, and in depth, multi-
faceted careers in the private sector provide me with the ability to
work with the senior leadership of the SLSDC. The SLSDC, as a wholly-
owned government corporation, operates much like a private sector
company. I intend to use my experiences to help the agency meet its
strategic, performance, and operational goals.
2. Why do you wish to serve in the position for which you have been
nominated?
Because of the opportunity to serve my country and my interest in
the subject matters the position encompasses.
3. What goals have you established for your first two years in this
position, if confirmed?
My goals are to work with the SLSDC Administrator to ensure the
long-term reliability and competitiveness of the St. Lawrence Seaway.
The waterway is nearly 50 years old and has experienced diminishing
traffic results in recent years. I intend to work with my fellow
Advisory Board members and the agency leadership to help develop a
roadmap for the waterway's next 50 years.
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
I need to develop a better understanding of the complexities
inherent in commercial navigation on the St. Lawrence Seaway System. I
understand the waterway is unique and different from any other waterway
in the United States. For example, the waterway is shared with Canada,
only attracts a limited and specialized vessel fleet, does not move
containers, and is not utilized by U.S. flag vessels. Through
interaction with agency staff, my fellow Board members, and the key
stakeholders in the Great Lakes Seaway System region, I will develop
the knowledge.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when society's problems
should be left to the private sector, and what standards should be used
to determine when a government program is no longer necessary.
The principal role of government should be the preservation of
individual and societal liberties, the enhancement of individual and
societal security, the education of its citizens, a sound monetary
policy, modest regulatory oversight of an otherwise free, market-driven
economy, and reasonable regulation of land use, of the environment, of
transportation, and of food and health minimum standards. Government
should not engage in ventures that can more effectively and efficiently
be undertaken by the private sector. Standards that should be used to
determine when a government program is no longer necessary include
whether the program is appropriate for the targeted benefit, whether
the private sector could manage and invest in the program more
efficiently, whether public support for the program is adequate to
justify its cost, and whether the public benefit at least equates to
the public expenditures.
6. Describe the current mission, major programs, and major
operational objectives of the board/commission to which you have been
nominated.
The SLSDC, a wholly-owned government corporation and an operating
administration of the U.S. Department of Transportation, is responsible
for the operations and maintenance of the U.S. portion of the St
Lawrence Seaway between Montreal and Lake Erie. This responsibility
includes managing vessel traffic control in areas of the St. Lawrence
River and Lake Ontario as well as maintaining and operating the two
U.S. Seaway locks located in Massena, New York. In addition, the SLSDC
performs trade development functions designed to enhance Great Lakes
St. Lawrence Seaway System utilization.
Maritime commerce on the Seaway System, which is a critical
transportation link to and from the agricultural and industrial
heartland of North America, annually generates more than 150,000 U.S.
jobs, $4.3 billion in personal income, $3.4 billion in transportation-
related business revenue, and $1.3 billion in federal, state, and local
taxes.
The SLSDC coordinates its activities with its Canadian counterpart,
the St. Lawrence Seaway Management Corporation (SLSMC), particularly
with respect to navigational rules and regulations, overall day-to-day
operations, traffic management, navigation aids, safety, environmental
programs, operating dates, and trade development programs. The unique
binational nature of the Seaway System requires 24-hour, year-round
coordination between the two Seaway entities. SLSDC annual performance
and strategic plans include goals and objectives for safety,
reliability, trade development, and management accountability.
7. What do you believe to be the top three challenges facing the
board/commission and why?
Three of the top challenges facing the SLSDC and its board are (1)
working with the Congress to ensure sufficient operations and
maintenance funding for the agency, including enhanced security
precautions in the post 9/11 era; (2) working with the U.S. Army Corps
of Engineers and the Canadian Seaway entity on the completion of the
on-going Great Lakes St. Lawrence Seaway Study; and (3) working with
industry to recapture grain, steel, and iron ore trade levels that have
been eroding over the past decade.
8. In reference to question number six, what factors in your
opinion, have kept the board/commission from achieving its missions
over the past several years?
Although I'm not familiar with the present Board's interaction with
agency staff, members of Congress, and key stakeholders, the SLSDC's
Advisory Board members should be fully engaged with all three groups to
help the agency attain more effective funding and new trade for the
binational waterway.
9. Who are the stakeholders in the work of this board/commission?
The key stakeholders for the St. Lawrence Seaway include: (1) U.S.
and Canadian commercial navigation interests, including ports,
terminals, carriers, importers, exporters, and labor; (2) foreign
customers, primarily in Europe, South America, and North Africa; (3)
members of Congress and other state and local leaders in the eight-
state Great Lakes region; and (4) those law enforcement and homeland
security personnel in the region pertinent to GLSL Seaway security.
10. What is the proper relationship between the position to which
you have been nominated, and the stakeholders identified in question
number nine?
One of the key roles of the SLSDC Advisory Board is to assist the
Administrator in working to establish new business contacts that could
result in future commercial business for the waterway. The agency does
not directly negotiate contracts, but does serve to facilitate trade
between all stakeholders. In my role as a member of the Advisory Board,
I intend to increase the agency's contacts database.
11. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
I have generally followed a supervisory model of initial mentoring,
then fairly full delegation, coupled with an oversight style of devil's
advocacy. No employee complaints have been brought against me in my 41
years of professional life.
12. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please explain.
I have not had a working relationship with Congress, although I
have supervised the work of lobbyists who in turn had a working
relationship with congressional committees.
13. In the areas under the board/commission jurisdiction to which
you have been nominated, what legislative action(s) should Congress
consider as priorities? Please state your personal views.
As mentioned in the answer to question number 7, the Congress
should focus some attention on ensuring the long-term viability of the
Seaway System. Over the past decade, the SLSDC has received minimal
funding increases that barely offset its mandatory pay and benefit
increases, leaving the agency with little to no funding for key capital
maintenance projects. A careful review of possible need for security
enhancement funding should also be undertaken. The waterway is nearing
its 50th year of operation and should have a long-term capital plan
that the Congress is committed to funding. In addition, the Congress,
through its work with the U.S. Army Corps of Engineers, needs to
carefully consider any navigational improvements recommended by the
Corps in its on-going study.
14. Please discuss your views on the appropriate relationship
between a voting member of an independent board or commission and the
wishes of a particular president.
A voting member of an independent board should be sensitive to the
wishes of a president, should be willing to rethink his own views
should they be at odds with those of his appointing power, but should
vote his conscience (and be prepared to relinquish his position) should
he not be able to reconcile his vies with those of the President.
The Chairman. Thank you very much.
Ms. Hersman, there has been an allegation in the press that
there's now not enough aviation expertise on the NTSB. Have you
heard about that?
Ms. Hersman. Yes, sir, I have.
The Chairman. And your response?
Ms. Hersman. Well, I am concerned, because I've spent a lot
of time on multiple modes of transportation, including
aviation, since I've been here, worked on safety issues, such
as the H-60 issue, security issues. After 9/11, I became much
more involved in aviation. But since November 2001, the board
has only launched from headquarters on one major aviation
incident, and that was Charlotte. During that same time,
they've launched on numerous surface transportation incidents--
the tanker truck explosion in Baltimore, Staten Island Ferry,
and the Baltimore Water Taxi. So I think it's important to be
well-rounded on all of these modes, and understand safety.
The work of the investigation is really done by the
professionals of the board. There's 400 staff there, and I will
rely on them, I'm sure, on all investigations, to give me
excellent advice. I hope that I can bring an expertise to the
board on surface transportation issues, particularly railroad
issues, that they have not had for some time. And I will
continue to do my best to get up to speed on all issues, as I
have when I've worked for this Committee.
Thank you.
The Chairman. Thank you.
Mr. Kassinger, what's your view of climate change?
Mr. Kassinger. I share the President's view that it's----
The Chairman. Pardon me?
Mr. Kassinger. Senator, I share the President's view that
it's a matter of serious concern, and it's something that we
ought to devote, as we are, substantial resources to
understanding and addressing. The government currently spends
upwards of $5 billion on a combination of research into
climate-change causes and related scientific issues and
technologies to address the contributors to climate change,
including emissions of carbon dioxide and other contributors to
the emissions into the atmosphere.
I think that the Commerce Department, as you know, has led
the Climate Change Research Group. That effort is about to be
manifested in an incredibly detailed, comprehensive program
that gained high praise from the National Science Foundation,
and the National Research Council, recently. It would be the
first time in history that the Government's efforts in the
climate change area will have been consolidated and focused not
only on producing excellent science, but directing that science
to matters that are important to decisionmakers in the
Congress, as well as in the executive branch.
As you also--just one other point, sir--I think that one of
the most important programs we have in the Commerce
Department--again, reflecting our concern about the importance
of this issue--is the Global Observation System that Admiral
Lautenbacher has conceived and is implementing through NOAA at
the end of this coming month, in April. We'll be leaders in
Tokyo, at the World Conference that will launch this--on a
global basis, this Climate Change Observation program that will
develop a great deal of additional information that will help
us address the issues.
The Chairman. Do you know when the--what year the first
report will be made to Congress?
Mr. Kassinger. From the Climate Change Research Program?
The reports, in my recollection, will be rolling out, I think,
the first one, as early as next year, but I'll get back to you
on that.
The Chairman. Maybe we're not talking about the same
proposal, Mr. Kassinger. We have received no reports from the
Administration, and the proposal that we read that was in the
nice, glossy, pink binder--the first report is the year 2012.
Well, it's obvious the position of the Administration on this
issue has been very disappointing. We've not seen any concrete
action. So far, we've heard of a lot of research and a lot of
study.
The National Academy of Sciences overwhelmingly believes
that, one, climate change is real and is a growing threat. And
the view of--overwhelming view of the scientific community and
the world on this is that this Administration is doing little
to nothing about it. I hope that--I probably can't change the
position of the Commerce Department or the Administration, but
we're going to pay a very heavy price for the inattention to
this issue on the part of the Administration.
You just mentioned Admiral Lautenbacher. I believe it was
before this Committee, he said, ``Well, all you need to do is
go to sleep for''--30 years, it was? Yes, ``go to sleep for 30
years,'' anybody who's interested in climate change.
It's hurting us in the near term because of the damage
that's being done to the Earth's atmosphere and the Earth, and
it's hurting us internationally, because the view of Europeans
and the world community concerning our lack of seriously
addressing this issue. So I hope that maybe you'll come up with
a little better information and a little bit better strategy
than what we've seen so far. I've been in this issue for a
long, long time. You're not doing enough.
Mr. McGregor and Mr. Brennan--excuse me--Mr. Anderson and
Governor Brennan, what do you think of the Jones Act?
Mr. Anderson. Mr. Chairman, I believe very strongly in the
Jones Act. I spent 9 years with a company that was exclusively
a Jones Act operating company, carrying liquid petroleum
products, chemical products, tug and barge operations in the
United States. I think it's a very important part of our
country's efforts to maintain a domestic fleet and shipbuilding
base.
The Chairman. Do you think there should be exceptions to
the Jones Act, Mr. Anderson?
Mr. Anderson. With respect to what, Mr. Chairman?
The Chairman. Any exceptions.
Mr. Anderson. Well, there are some exceptions to the Jones
Act. I'm familiar with a couple that I actually participated
in. One was a Wrecked Vessel Act project which joined two
wrecked vessels, and we needed an exemption to the Jones Act.
Another one was for some vessels that----
The Chairman. How about for cruise ships?
Mr. Anderson. I think it would depend on the circumstances,
Mr. Chairman.
The Chairman. Governor Brennan?
Governor Brennan: I'd say, first, we deal strictly with the
foreign water-borne commerce, so we don't deal with the Jones
Act, but I did deal with it, to a certain extent, when I served
in the House. And, in many senses, the issue was treated as
sort of the sacred cow. I didn't see it changing a great deal.
So that's about where I am at it.
The Chairman. What are the major challenges that you see,
Governor Brennan, particularly in light of this threat of
terrorism that's associated with our ports and our maritime
activity?
Governor Brennan: I think it is a very serious threat, and
the Commission has worked with naval intelligence, worked with
the various subsets of Homeland Security, including the Coast
Guard and Customs, but we don't have a lot of troops on the
ground. We have about five people actually on the ground making
observations in five major ports. But we do have a lot of
commercial data, a lot of information, and we see ourselves in
a really important supportive role to try to help the agencies
that actually do the policing.
The Chairman. Mr. Anderson?
Mr. Anderson. Yes, sir. Mr. Chairman, I believe that it is
a very important for our country to have port security and
maritime security. And as my colleague, Commissioner Brennan,
mentioned, we--as an agency, don't play a front-line role. We
are a support agency. We have quite a bit of commercial
information, where we licence and bond ocean transportation
intermediaries. We have had meetings, as late as yesterday,
with TSA, Customs, and some other security agencies to work out
ways with which we can share the information that we have in an
effort to support our security efforts of the country.
The Chairman. Thank you. Congratulations to all of you, and
we will move your nominations as quickly as possible so that
you can get to work, or back to work.
Thank you very much. This hearing is adjourned.
[Whereupon, at 3:20 p.m., the hearing was adjourned.]
A P P E N D I X
Prepared Statement of Hon. John D. Rockefeller IV,
U.S. Senator from West Virginia
Mr. Chairman, Senator Hollings and to my colleagues, as we hold
many nomination hearings in this Committee, and we say many things
about the nominees, usually in praise of them, but at times questioning
them. This nomination is a personal one for many of us, as we have all
watched Debbie work tirelessly on behalf of us and our constituents.
Before I discuss all of the reasons that Debbie is absolutely the
right person for this position, I want to proudly state she is a West
Virginian. Both of her parents were raised in Roane County, West
Virginia. In addition, she has many proud relatives in Spencer and
Charleston, West Virginia. I know that the people of West Virginia
share my pride in all of Debbie's accomplishments.
Before coming to the Senate Commerce Committee, Debbie worked for
then Congressman Wise of West Virginia in many capacities, including
chief of staff. Governor Wise called me to support her nomination, and
we wholeheartedly agreed that there was no better person for the job.
Debbie has spent a career working for the people of West Virginia, and
I know the entire country will benefit from her presence on the
National Transportation Safety Board.
Each of us has had to call on the National Transportation Safety
Board, or watched on CNN, the work that they do in sifting through a
disaster site and in dealing with family members following an aviation
tragedy. We rely on their independence to provide Congress and the
transportation regulatory agencies recommendations to improve safety.
It is a critical role that they play, and one divorced from politics
and partisanship. The National Transportation Safety Board deals with
situations where tragedies affect many people and that makes it all the
more important that we select someone with both the technical knowledge
to contribute to the board's work and the human compassion needed in
the context of these tragedies. Debbie melds these two important
requirements in a particularly special manner.
Each Board Member is an independent source of knowledge and
information. While the Board votes on matters, and we hope that all
agree on the safety recommendations, each is charged with independently
making a decision based on the facts and analysis of its expert staff.
A small agency, with some 429 employees, its expertise and knowledge is
recognized around the world.
Debbie, who has worked on this Committee for five years, has worked
with all of us on transportation safety and regulatory issues, using
her expertise and talents to push for improvements. Her primary focus
has been surface transportation, but I know that she has spent a
considerable amount of time on aviation safety issues, and helped with
aviation security matters following 9/11. I know she worked on the
highway bill while a House staff member, and that knowledge will help
her in her new position.
Her talents, wit, charm and expertise will be sorely missed. I wish
you the best of luck in your new position, and while none of us hope to
see you about a tragedy in our states, we know that whatever the
situation, the NTSB will be in good hands with Debbie there.
______
Prepared Statement of Hon. E. Clay Shaw, Jr.
Mr. Chairman, Senator Hollings, Members of the Committee:
I'm proud to be here this afternoon with my Florida colleagues in
support for the nomination of Mr. Alan Paul Anderson for the Federal
Maritime Commission.
This is a special opportunity for me, for not only is Paul Anderson
a constituent, but he's a friend. Paul is a resident of Florida's 22nd
congressional district where he has lived and worked for many years.
Paul's commitment to South Florida is evident in the number of
organizations and affiliations he associates himself. Whether it's as a
trustee for Broward Community College, the Broward Alliance or the
Broward Education Foundation, Paul serves his community and state well.
Today, you consider his name for the Federal Maritime Commission.
Up until his work with JM Family Enterprises Inc., where he served as
vice president of government relations, Paul was employed for 8 years
with Hvide Marine, Inc. based at Port Everglades, Florida. There Paul
served as manager of marketing, assistant to the president and director
of public affairs.
Hvide Marine was a U.S. flag diversified marine transportation
company with tanker, offshore supply vessel, tug and barge and tug boat
operations in the U.S. and international markets. In his capacity, Paul
represented Hvide to the national maritime trade associations assisting
the industry in facing the many public policy challenges.
With a distinguished background in business and the marine
industry, I believe Paul Anderson will be a tremendous asset to the
Federal Maritime Commission.
I'm honored to be here today and speak on behalf of my friend, Paul
Anderson.
Thank you, Mr. Chairman.
______
Commercial Vehicle Safety Alliance
Washington, DC, March 29, 2004
Senator John McCain,
Chairman,
Senate Committee on Commerce, Science, and Transportation,
Washington, DC.
Dear Mr. Chairman:
On behalf of the Commercial Vehicle Safety Alliance, I am writing
to recommend the Committee approve the nomination of Deborah A. Hersman
to serve as a member of the National Transportation Board.
CVSA is an association of truck and bus safety enforcement
officials and industry representatives in Canada, Mexico and the United
States. We have worked with Ms. Hersman in her capacity as the
Democratic Senior Professional Staff Member for the Surface
Transportation and Merchant Marine Subcommittee of the Senate Commerce,
Science, and Transportation Committee on a number of important
commercial vehicle safety legislative issues.
We believe she is well qualified to fill the position for the NTSB
member term expiring at the end of this year. In our experience working
with her on the Motor Carrier Safety Improvement Act of 1999, Mexican
border safety issues, and the process currently underway to reauthorize
the Transportation Equity Act for the 21st Century, we have found her
to be knowledgeable on transportation matters and willing to listen to
all sides of an issue. She works hard to seek consensus and bipartisan
solutions that enhance public safety and prevent the recurrence of
transportation related accidents. These qualifications will help to
ensure a cooperative working relationship between the NTSB, the
Administration, the Congress private industry and the publ1c.
Again, in the interest of transportation safety we hope you and the
Committee approve Ms. Hersman's nomination to serve as a member of the
National Transportation Safety Board.
Sincere1y,
Stephen F. Campbell,
Executive Director.
[all]
This page intentionally left blank.