[House Report 108-159]
[From the U.S. Government Publishing Office]
108th Congress Rept. 108-159
HOUSE OF REPRESENTATIVES
1st Session Part 2
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BURMESE FREEDOM AND DEMOCRACY ACT OF 2003
_______
July 11, 2003.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Sensenbrenner, from the Committee on Judiciary, submitted the
following
R E P O R T
[To accompany H.R. 2330]
[Including cost estimate of the Congressional Budget Office]
The Committee on the Judiciary, to whom was referred the
bill (H.R. 2330) to sanction the ruling Burmese military junta,
to strengthen Burma's democratic forces and support and
recognize the National League of Democracy as the legitimate
representative of the Burmese people, and for other purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill do pass.
The amendment adopted by this committee is identical to the
text reported by the Committee on International Relations shown
in their report filed June 17, 2003 (Rept. 108-159, Part 1).
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for the Legislation.......................... 2
Hearings......................................................... 2
Committee Consideration.......................................... 2
Vote of the Committee............................................ 2
Committee Oversight Findings..................................... 2
New Budget Authority and Tax Expenditures........................ 3
Congressional Budget Office Cost Estimate........................ 3
Performance Goals and Objectives................................. 6
Constitutional Authority Statement............................... 6
Section-by-Section Analysis and Discussion....................... 6
Changes in Existing Law Made by the Bill, as Reported............ 6
Markup Transcript................................................ 7
Purpose and Summary
The Committee on the Judiciary received a secondary
referral of H.R. 2330 to considerthe immigration provisions in
section 6 of the bill. The purpose of section 6 of H.R. 2330 is to
expand the current ban prohibiting Burmese leaders from receiving U.S.
visas. For the purpose and summary of other sections of H.R. 2330, see
H. Rept. 108-159, Part I, filed by the Committee on International
Relations, which had the primary referral of the bill.
Background and Need for the Legislation
PROCEDURAL BACKGROUND
H.R. 2330 was introduced on June 4, 2003, and referred to
the Committee on International Relations, and in addition to
the Committees on Ways and Means, Financial Services, and the
Judiciary, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned. The
Committee on International Relations reported the bill by voice
vote on June 12, 2003, and filed its Committee report (H. Rept.
108-159, Part I) on June 17, 2003.
The Committees on Ways and Means, Financial Services, and
the Judiciary were each granted an extension for further
consideration of such provisions as fall within the
jurisdiction of the committee concerned ending not later than
July 11, 2003.
NEED FOR LEGISLATION
Burma is ruled by a military junta that seized power by
force in 1988 and currently calls itself the State Peace and
Development Council (SPDC). Although the National League for
Democracy (NLD) won the majority of National Assembly seats in
a free and fair election in 1990, the junta nullified the
results and imprisoned NLD leaders. The military regime has
committed numerous other human rights abuses, such as large-
scale forced labor and the reported use of rape as a weapon
against insurgencies by ethnic minorities. Section 6 of H.R.
2330 would ban current and former leaders of the SPDC from
obtaining a U.S. visa or entry into the U.S.
Hearings
No hearings were held in the Committee on the Judiciary on
H.R. 2330.
Committee Consideration
On July 9, 2003, the Committee met in open session and
ordered favorably reported the bill HR. 2330, with an
amendment, by voice vote, a quorum being present. The amendment
consists of the text of the bill as reported by the Committee
on International Relations.
Vote of the Committee
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee notes that there
were no recorded votes during the committee consideration of
H.R. 2330.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee reports that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives is inapplicable because section 6 of this
legislation does not provide new budgetary authority or
increased tax expenditures.
Congressional Budget Office Cost Estimate
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, the Committee sets forth, with
respect to section 6 of the bill, H.R. 2330, the following
estimate and comparison prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974:
July 11, 2003.
Hon. F. James Sensenbrenner, Jr.,
Chairman, Committee on the Judiciary,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2330, the Burmese
Freedom and Democracy Act of 2003.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Annabelle
Bartsch.
Sincerely,
Douglas Holtz-Eakin,
Director.
Enclosure.
H.R. 2330--Burmese Freedom and Democracy Act of 2003
Summary: H.R. 2330 would ban all imports from Burma until
the State Peace and Development Council (SPDC), the military
regime of Burma, has made substantial and measurable progress
to end violations of human rights, implement a democratic
government, and meet its obligations under international
counter-narcotics agreements. Under the bill, the President may
terminate the restrictions upon the request of a democratically
elected government in Burma or waive them in the national
interest. By reducing net imports, and thus reducing federal
tax receipts from duties on such imports, CBO estimates that
enacting H.R. 2330 would reduce federal revenues by $2 million
in 2003, by $60 million over the 2003-2008 period, and by $123
million over the 2003-2013 period, net of income and payroll
tax offsets.
The bill also would require the Secretary of Treasury to
freeze the assets of members of the ruling party of Burma and
would require the Secretary of State to deny visas to the same.
Based on information from those agencies, CBO estimates that
enacting H.R. 2330 would not significantly affect federal
spending.
By banning all importers from Burma and freezing certain
Burmese funds and assets held by U.S. financial institutions,
H.R. 2330 would impose private-sector mandates as defined in
the Unfunded Mandates Reform Act (UMRA). Due to the lack of
information on the value of lost profits to importers resulting
from the ban, CBO cannot determine whether the aggregate direct
cost of the mandates would exceed the annual threshold for
private-sector mandates established in UMRA ($117 million in
2003, adjusted annually for inflation) in any of the first five
years the mandates would be in effect.
H.R. 2330 contains no intergovernmental mandates as defined
in UMRA and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2330 is shown in the following table.
CBO assumes that H.R. 2330 will be enacted by August 1, 2003.
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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CHANGES IN REVENUES \1\
Estimated revenues.............................................. -2 -11 -11 -12 -12 -12 -12 -12 -13 -13 -13
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\1\ CBO also estimates that enacting H.R. 2330 would have no significant impact on federal spending.
Basis of estimate
Revenues
H.R. 2330 would ban all U.S. imports from Burma until the
President of the United States has determined that certain
conditions outlined in the bill have been met by the SPDC. The
President would have the authority to lift or waive the ban
imposed by H.R. 2330; however, CBO assumes that the President
would not exercise this authority before 2013. Based on data
from the U.S. International Trade Commission on recent U.S.
imports from Burma, information from several government
agencies, and CBO's most recent forecast of total U.S. imports,
CBO estimates that enacting H.R. 2330 would reduce federal
revenues by $2 million in 2003, by $60 million over the 2003-
2008 period, and by $123 million over the 2003-2013 period, net
of income and payroll tax offsets.
In recent years, over half of all U.S. imports from Burma
have been knitted or crocheted clothing and apparel goods. The
remaining imports include apparel items not knitted or
crocheted, certain types of fish and crustaceans, goods made of
wood, certain precious and semiprecious stones and metals, and
woven fabrics and tapestries. In 2001 and 2002, roughly 80
percent of duties collected on these imports came from knitted
and crocheted articles.
CBO assumes that a portion of the banned imports would be
replaced with imports from other countries, especially in
southeast Asia, which face similar duty rates, while the
remaining portion would be displaced by duty-free goods or not
replaced at all. Substitution of apparel imports would be
partially limited because of existing quotas on imports from
other countries. These quotas on countries in the World Trade
Organization are set to expire at the end of 2004. CBO assumes,
even if H.R. 2330 is not enacted, that Burma's share of U.S.
imports would decrease significantly after that date.
CBO estimates that over the 2003-2013 period, enacting H.R.
2330 would decrease the dutiable value of U.S. imports by about
$1 billion. Assuming an average duty rate of about 16 percent,
the United States would forgo about $160 million in customs
duties over the period. This gross revenue loss would be
partially offset by higher revenues from income and payroll
taxes.
The President could remove the ban on imports upon the
request of a democratically elected government in Burma or he
could waive them if he determines and notifies Congress that to
do so is in the national interest. Should the ban be lifted,
U.S. companies would be allowed to resume importation of goods
produced, manufactured, grown, or assembled in Burma. It is
unclear whether or when the President would exercise the
authority to lift or waive the ban on imports from Burma. If
such an action were taken during the 2003-2013 period, then the
impact on federal revenues would be reduced accordingly.
Federal spending
The bill also would require the Secretary of Treasury to
freeze the assets of members of the ruling party of Burma and
would require the Secretary of State to deny visas to the same.
Based on information from those two agencies, CBO estimates
implementing H.R. 2330 would not significantly affect spending
by those departments.
The United States provides some assistance to the people of
Burma, about $7 million a year in grants to nongovernmental
organizations to support HIV/AIDS prevention and democracy
programs in Burma. The bill would not affect those programs.
Estimated impact on the private sector: By banning all
Burmese imports and freezing certain Burmese assets held by
U.S. financial institutions, H.R. 2330 would impose private-
sector mandates as defined in UMRA; however, CBO cannot
determine the aggregate direct cost of the mandates.
Specifically, the bill would ban all imports from Burma.
The U.S. International Trade Commission estimates the value of
U.S. imports from Burma in 2002 at approximately $360 million.
CBO expects that importers would substitute goods from other
countries, mostly within the region, to compensate for a
portion of the trade loss with Burma. For the portion of trade
loss that is not made up through substitution, importers would
bear a cost oflost profits. Due to a lack of information on the
value of lost profits, CBO cannot determine the cost of the mandate.
In addition, H.R. 2330 would direct the Treasury Department
to freeze the assets of the Burmese regime held by U.S.
financial institutions after the institutions report such
holdings to the Office of Foreign Assets Control. Based on
information from government sources indicating that an
insignificant amount of assets would be affected, if any at
all, CBO expects U.S. financial institutions would incur
minimal costs as a result of the mandate.
Estimated impact on state, local, and tribal governments:
H.R. 2330 contains no intergovernmental mandates as defined in
UMRA and would impose no costs on state, local, or tribal
governments.
Previous CBO estimate: On June 19, 2003, CBO transmitted a
cost estimate for H.R. 2330, the Burmese Freedom and Democracy
Act of 2003, as reported by the House Committee on
International Relations on June 17, 2003. The two versions of
the bill are identical, as are the two cost estimates.
Estimate prepared by: Federal revenues: Annabelle Bartsch;
Federal costs: Joseph C. Whitehill; impact on state, local, and
tribal governments: Melissa Merrell; impact on the private
sector: Paine Piper/Bach.
Estimate approved by: G. Thomas Woodward, Assistant
Director for Tax Analysis; Robert A. Sunshine, Assistant
Director for Budget Analysis.
Performance Goals and Objectives
Section 6 of H.R. 2330 does not authorize funding.
Therefore, clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives is inapplicable.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds the authority for
section 6 of this legislation in article I, section 8, of the
Constitution.
Section-by-Section Analysis and Discussion
The following section-by-section analysis addresses section
6 of the bill on which the Committee on the Judiciary received
its referral.
Sec. 6. Expansion of visa ban
Section 6(a) authorizes the President to deny visas and
entry to the former and present leadership of the State Peace
and Development Council (SPDC) or the Union Solidarity
Development Association (USDA), the political arm of the SPDC.
The President currently has such authority to deny entry to
Burma's regime leaders under an October 3, 1996, Presidential
proclamation signed by President Clinton. That proclamation, as
authorized by section 212(f) of the Immigration and Nationality
Act, is still in effect and is currently being implemented by
the Secretary of State pursuant to the proclamation. Neither
the proclamation nor the Secretary of State's implementation of
the proclamation would be undermined by section 6(a) of H.R.
2330. Rather section 6(a) would codify that proclamation's
policy to ensure that visas for such political leaders continue
to be barred.
Section 6(a) also requires the Secretary of State to
coordinate on a biannual basis with European Union
representatives to ensure coordination of lists of individuals
banned from obtaining a European Union visa because of SPDC or
USDA leadership and those banned from receiving a U.S. visa for
the same reason. Section 6(b) requires the Secretary of State
to post on the State Department's web site the names of
individuals whose entry into the U.S. is banned.
Changes in Existing Law by the Bill, as Reported
The bill was referred to this committee for consideration
of such provisions of the bill and amendment as fall within the
jurisdiction of this committee pursuant to clause 1(k) of rule
X of the rules of the House of Representatives. The changes
made to existing law by the amendment reported by the Committee
on International Relations are shown in the report filed by
that committee (H. Rept. 108-159, Part 1). In compliance with
clause 3(e) of rule XIII of the Rules of the House of
Representatives, the Committee notes section 6 of H.R. 2330
makes no changes to existing law.
Markup Transcript
BUSINESS MEETING
----------
WEDNESDAY, JULY 9, 2003
House of Representatives,
Committee on the Judiciary,
Washington, DC.
Chairman Sensenbrenner. Pursuant to notice, I now call up
the bill H.R. 2330, the Burmese and Freedom and Democracy Act
of 2003 for purposes of markup and move its favorable
recommendation to the House. Without the objection, the bill
will be considered as read, considered as the original text for
purposes of amendment and open for amendment at any point.
[H.R. 2330 follows:]
Chairman Sensenbrenner. The Chair notes that this bill was
referred to this committee because of its jurisdiction over
immigration provisions at Section 6, and amendments should be
limited to that section. The Chair recognizes the gentleman
from Indiana, Mr. Hostettler, the Chairman of the Subcommittee
on Immigration for a brief 5 minutes to explain Section 6, and
would ask members to be brief because I would like to get this
bill out of here while a reporting quorum is present and before
we vote. Gentleman from Indiana.
Mr. Hostettler. Thank you, Mr. Chairman. Mr. Chairman, H.R.
2330, the Burmese Freedom and Democracy Act is a bipartisan
bill with the purpose of sanctioning the ruling Burmese
military junta in recognizing the National League of Democracy
as the legitimate representative of the Burmese people. This
committee has jurisdiction over Section 6 of the bill, as the
Chairman stated.
Section 6 or H.R. 2330 authorizes the President to deny
visas and entry to the former and present leadership of the
State Peace and Development Council, or SPDC, formerly known as
the State Law and Order Restoration Council or SLORC, or its
political arm, the Union Solidarity Development Association,
otherwise known as USDA. It requires the Secretary of State to
coordinate on a biannual basis with European Union
representatives to ensure a coordination of lists of
individuals banned from obtaining a European visa because of
SPDC or USDA leadership, and those banned from receiving a U.S.
visa for the same reason.
Finally, Section 6 requires the Secretary of State to post
on the state Department's website the names of individuals
whose entry into the U.S. is banned. For decades Burma has been
ruled by a highly authoritarian repressive military regime that
has operated through the use of arrests detention and
intimidation of political opponents. The junta has continued to
prevent the parliament elected in 1990 from convening. Leaders
and former leaders of such a regime should not be permitted to
enter the United States.
I ask committee members to support this section of the bill
and yield back the balance of my time.
Ms. Lofgren. Would the gentleman yield?
Mr. Hostettler. I yield to the gentlelady.
Mr. Lofgren. For a question. I mean I don't object to what
we're trying to accomplish here----
Chairman Sensenbrenner. The gentlewoman from California.
Ms. Lofgren. Should I move to strike the last word?
Chairman Sensenbrenner. The gentlewoman's reorganized.
Ms. Lofgren. I do think, however, that this section is
superfluous because the President already has the authority to
deny visas through his Secretary of State. He doesn't need
additional authority to do that, whereas, you know, it doesn't
look like we're requiring--perhaps we are requiringthe
publication of the bad guys' names on the Secretary's website----
Chairman Sensenbrenner. Will the gentlewoman yield?
Ms. Lofgren [continuing]. But they have the ability to do
that without a law.
Chairman Sensenbrenner. Would the gentlewoman yield? I
agree with what the gentlewoman has said. However, this bill
was referred to us on a sequential that expires on Friday. I
don't see why this Section 6 needs to have any amendments. I
don't see why it was put in there originally by the Committee
on International Relations, but because they did put it in
there and because visas are under our jurisdiction, we have the
sequential, and I would just suggest that we report this bill
out and file a committee report and we've done our duty.
Ms. Lofgren. Reclaiming my time, I'm not going to vote
against this, but I do think it would be important in the
committee report to note that the authority provided to the
President and Secretary of State under Section 6 exists without
this bill. I don't want to undercut the authority of the
President and the Secretary of State to make these judgments by
presuming or setting a precedent that we would need to pass a
law, and I would make that recommendation.
Chairman Sensenbrenner. If the gentlewoman will yield
further, the Chair will direct the staff to put that disclaimer
within the committee report, that we will file in a timely
manner.
Ms. Lofgren. Thank you.
Chairman Sensenbrenner. Without objection, opening
statements of other members will be included in the record at
this point.
Opening Statement of Congressman Steve King
Thank you, Chairman Sensenbrenner. Ask anyone what the
foundation of democracy is and they will tell you the freedom
to elect your leaders. The people of Burma held elections in
1990 to remove The State Peace and Development Council (SPDC),
however, SPDC refused to transfer power to the National League
for Democracy (NLD) forcing the people of Burma to live under
13 more years of a corrupt and oppressive regime.
The United States should not reward the illegitimate
government of Burma any longer. We must do all we can to ensure
that the elected National League for Democracy takes control of
Burma to ensure that the human rights of the Burmese people are
once again restored.
I urge you to vote for this bill. Thank you, Chairman
Sensenbrenner.
Mr. Watt. Mr. Chairman.
Chairman Sensenbrenner. Are there amendments?
Mr. Watt. Mr. Chairman.
Chairman Sensenbrenner. Gentleman from North Carolina.
Mr. Watt. I move to strike the last word.
Chairman Sensenbrenner. The gentleman is recognized for 5
minutes.
Mr. Watt. Mr. Chairman. I know the Chairman wants to move
this bill quickly, and I'm not trying to delay the movement of
it. I actually want to just call to the attention of the
Chairman a provision that really is not under the jurisdiction
of our committee, but in hopes that the Chairman will advise
the committee that has jurisdiction over this, that there are
some substantial adverse impacts on North Carolina, and I'm
sure Mr. Coble will join me in this.
In Section 3 of the bill, talking about items that are
grown in Burma, 80 percent of the world's teak is grown in
Burma. It is an import that the furniture industry in North
Carolina finds imperative, and the furniture industry in North
Carolina is now in the process of, seems to be in the process
of following the same downhill slide that the textile and
apparel industry in North Carolina followed over the last 10 to
20 years, which is to say if you look at the amount of
furniture purchased in this country that was produced elsewhere
in the world. It has grown from under 10 percent in 1990 to
over 45 percent in 2002, and because North Carolina is the--was
the furniture manufacturing capital of the world, that has had
a substantial impact on our economy and on employment in North
Carolina, and plants are closing. If we take away the ability
of furniture manufacturers in North Carolina to use the teak
wood that is grown in Burma and can't be really grown
effectively anywhere else, we are going to have an added
devastating impact.
So I just hope the Chairman will--and this could really be
addressed by changing one word in the bill. That word happens
not to be under our jurisdiction and we can't do anything about
it here, but I hope the Chairman will help me and Mr. Coble
deliver that message to whoever the leadership is so that they
might consider the impact on----
Chairman Sensenbrenner. If the gentleman will yield, I
agree with the gentleman's concern, and I certainly would be
supportive of such an amendment on the floor and also in the
Rules Committee in making that amendment an order.
Mr. Watt. I thank the Chairman and I yield back the balance
of my time.
Chairman Sensenbrenner. Are there amendments to Section 6
of the bill?
Ms. Jackson Lee. Mr. Chairman.
Chairman Sensenbrenner. Gentlewoman from Texas, Ms. Jackson
Lee.
Ms. Jackson Lee. Mr. Chairman, and I did not hear the
complete statement of the distinguished Chairman of the
Subcommittee on Immigration and Claims, but I was looking at a
provision in the legislation that deals with the listing of
those that the European Union would deny visas to, and it seems
that this language is asking to coordinate with the State
Department a list of names as well, requires the Secretary of
State to post on the State Department's website the names of
individuals whose entry into the United States is banned.
I'm trying to determine is there going to be oversight on
this list? Is this list then to be transferred to the Homeland
Security? What is the basis of them being banned? What is the
ultimate results of this gathering of this information? I'm not
sure if Mr. Hostettler knows about this provision in particular
dealing with the visas?
Mr. Hostettler. If the gentlelady will yield?
Ms. Jackson Lee. I'll be happy to yield.
Mr. Hostettler. This is, my understanding, an unprecedented
but necessary requirement that this part individuals who have
been a part of this regime be known in a more public fashion as
to being denied entry into the United States.
Ms. Jackson Lee. So this is just a listing procedure at
this time?
Mr. Hostettler. Yes.
Ms. Jackson Lee. And I thank the--reclaiming my time, one
of the issues that comes up when you begin to establish lists,
and certainly I believe that there is great question with the
leadership in Burma and great concern, is the oversight on the
list, who's on the list, who's not on the list, and the
utilization of this list in coordination with the European
Union, not knowing the basis upon which they list these
individuals, whether they are listing only government
officials, whether they are listing activists, whether they're
listing academicians. And so I would raise a question about
this provision and would want to look further on it, and may
ultimately have an amendment on this particular point. I yield
back.
Chairman Sensenbrenner. Are there amendments?
[No response.]
Chairman Sensenbrenner. There are no amendments. A
reporting quorum is present. The question is on the motion to
report the bill, H.R. 2330 favorably. Those in favor will say
aye.
Opposed, no.
The ayes have it. The motion to report favorably is agreed
to. Without objection, the Chairman is authorized to move to go
to conference pursuant to House rules. Without objection, the
staff is directed to make any technical and conforming changes.
And all members will be given two days as provided by House
rules in which to submit additional dissenting, supplemental or
minority views.