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REVENUE RECONCILIATION ACT OF 1997


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REVENUE RECONCILIATION ACT OF 1997
(Senate - June 26, 1997)

Text of this article available as: TXT PDF [Pages S6440-S6473] REVENUE RECONCILIATION ACT OF 1997 The Senate continued with the consideration of the bill. Amendment No. 537 Mr. DOMENICI. How much time do I have on the amendment? The PRESIDING OFFICER. Forty-four minutes. Mr. DOMENICI. And the opposition has 44 minutes? The PRESIDING OFFICER. Sixty minutes. Mr. DOMENICI. So we have used 16. Actually, unless Senator Lautenberg has anything further to say, I believe I have stated the case for the Domenici-Lautenberg amendment No. 537. Does Senator Gramm want to offer an amendment to the amendment? Mr. GRAMM. I think Senator Biden is going to offer an amendment first, and after his amendment is disposed of, then I will have an amendment, as will several other people. Mr. BIDEN addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Mr. BIDEN. Madam President, I wonder if the Democratic manager would yield me time off the bill. Mr. DOMENICI. The Senator has time on his amendment. Mr. BIDEN. Parliamentary inquiry. Can I get time in my own right? Mr. DOMENICI. I yield back my time. The PRESIDING OFFICER. The time is controlled by Senator Domenici and Senator Roth. Mr. LAUTENBERG. I yield back my time. The PRESIDING OFFICER. Is all time yielded back? Mr. DOMENICI. We yielded back our time. Mr. BIDEN addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Amendment No. 539 to Amendment No. 537 Mr. BIDEN. Madam President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report. The assistant legislative clerk read as follows: The Senator from Delaware [Mr. Biden], for himself and Mr. Gramm, proposes an amendment numbered 539 to amendment No. 537. Mr. BIDEN. Madam President, I ask that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: On page 43 of the amendment, strike lines 14 through 21 and insert the following: ``(5) with respect to fiscal year 2001-- ``(A) for the discretionary category: $537,677,000,000 in new budget authority and $558,460,000,000 in outlays; and ``(B) for the violent crime reduction category: $4,355,000,000 in new budget authority and $5,936,000,000 in outlays; ``(6) with respect to fiscal year 2002-- ``(A) for the discretionary category: $546,619,000,000 in new budget authority and $556,314,000,000 in outlays; and ``(B) for the violent crime reduction category: $4,455,000,000 in new budget authority and $4,485,000,000 in outlays; as adjusted in strict conformance with subsection (b).''. (2) Transfers into the fund.--On the first day of the following fiscal years, the following amounts shall be transferred from the general fund to the Violent Crime Reduction Trust Fund-- (A) for fiscal year 2001, $4,355,000,000; and (B) for fiscal year 2002, $4,455,000,000. Mr. BUMPERS. Will the Senator from Delaware yield for an inquiry for a moment? Mr. BIDEN. I would be happy to. Mr. BUMPERS. Could the managers of this bill tell us how many second- degree amendments there are to this process? I assume we are on the second-degree amendment process; is that correct? The PRESIDING OFFICER. That is correct. Mr. BUMPERS. Could the managers tell us how many second-degree amendments they anticipate on this? Mr. DOMENICI. I do not know. Mr. GRAMM. I believe there will be four. Senator Biden will offer one for himself. Once that is adopted, I will offer a second-degree amendment. And [[Page S6441]] then we have two other Senators who want to offer second-degree amendments, so they will be seriatim. Mr. BUMPERS. Then there are five, because I have one also. I am just wondering if we could get some kind of sequence so we know how they are going to be offered so we do not spend the rest of our lives waiting. Mr. DOMENICI. I say to the Senator, you can be assured there will be four ahead of you, if you would like to be fifth. Mr. BUMPERS. I thank the Senator for his courtesy. Mr. GRAMM. Why don't you do yours last? Mr. DOMENICI. That is what I said. Mr. BIDEN. Madam President, the second-degree amendment I have at the desk is very simple and straightforward. The Senator from New Mexico is introducing a budget process amendment, and what the amendment of Senator Gramm and myself does is, quite frankly, it merely extends the crime law trust fund for the extension of this agreement. I am told by the staffs of the majority and minority that in the budget process agreement that was agreed to with the administration, there is a line on page 90 of the concurrent resolution of the budget fiscal year 1998. On page 90, it says, ``Retain current law on separate crime caps at levels shown in the agreement tables.'' All we are doing here is extending the crime law trust fund. We are not making judgments on how that will be disbursed within the trust fund. We are just extending the trust fund to the extent of this agreement. And, Madam President, as I offer this amendment, we are maintaining a commitment to one of the few specific ways the reconciliation package can, by virtue of the type of legislation it is, maintain a commitment. The commitment we made was to fight violent crime. And, ironically, it is working. It is working. And so for us now to extend the violent crime trust fund, let it expire 2 years before this budget agreement expires, means we are going to be back at it again in the year 2000 or before, fighting over something we now know works. So I realize we can take a long time debating this. But the bottom line is this: We are not suggesting, as the Senator from New Mexico knows, how this trust fund money within the caps will be disbursed; merely that we have the continuation of the trust fund as long as the budget agreement to the year 2002. Of all the priorities addressed in this budget package, I believe that none is more important than continuing our fight against violent crime and violence against women. The amendment I am offering, along with Senator Gramm seeks to maintain this commitment in one of the few specific ways this reconciliation package can--by virtue of the type of legislation this is--maintain this commitment. That is by extending the violent crime control trust fund will continue through the end of this budget resolution, fiscal year 2002. Senator Byrd, more than anyone, deserves credit for the crime law trust fund. Senator Byrd worked to develop an idea that was simple as it was profound--as he called on us to use the savings from the reductions in the Federal work force of 272,000 employees to fund one of the Nation's most urgent priorities: fighting the scourge of violent crime. Senator Gramm was also one of the very first to call on the Senate to ``put our money where our mouth was.'' Too often, this Senate has voted to send significant aid to State and local law enforcement--but, when it came time to write the check, we did not find nearly the dollars we promised. Working together in 1993, Senator Byrd, myself, Senator Gramm, and other Senators passed the violent crime control trust fund in the Senate. And, in 1994, it became law in the Biden crime law. Since then, the dollars from the crime law trust fund have: Helped add more than 60,000 community police officers to our streets; helped shelter more than 80,000 battered women and their children; focussed law enforcement, prosecutors, and victims service providers on providing immediate help to women victimized by someone who pretends to love them; forced tens of thousands of drug offenders into drug testing and treatment programs, instead of continuing to allow them to remain free on probation with no supervision and no accountability; constructed thousands of prison cells for violent criminals; and brought unprecedented resources to defending our Southwest border-- putting us on the path to literally double the number of Federal border agents over just a 5-year period. The results of this effort are already taking hold: According to the FBI's national crime statistics, violent crime is down and down significantly--leaving our nation with its lowest murder rate since 1971; the lowest violent crime total since 1990; and the lowest murder rate for wives, ex-wives, and girlfriends at the hands of their intimates to an 18-year low. In short, we have proven able to do what few thought possible--by being smart, keeping our focus, and putting our ``money where our mouths'' are--we have actually cut violent crime. Today, our challenge is to keep our focus and to stay vigilant against violent crime. Today, the Biden-Byrd-Gramm amendment before the Senate offers one modest step toward meeting that challenge: By assuring that the commitment to fighting crime and violence against women will continue for the full duration of this budget resolution. By assuring that the violent crime control trust fund will continue-- in its current form which provides additional Federal assistance without adding 1 cent to the deficit--through 2002. The Biden-Gramm amendment offers a few very simple choices: Stand up for cops--or don't; stand up for the fight against violence against women--or don't; and stand up for increased border enforcement--or don't. Every Member of this Senate is against violence crime--we way that in speech after speech. Now, I urge all my colleagues to back up with words with the only thing that we can actually do for the cop walking the beat, the battered woman, the victim of crime--provide the dollars that help give them the tools to fight violent criminals, standup to their abuser, and restore at least some small piece of the dignity taken from them at the hands of a violent criminal. Let us be very clear of the stakes here--frankly, if we do not continue the trust fund, we will not be able to continue such proven, valuable efforts as the violence against women law. Nothing we can do today can guarantee that we, in fact, will continue the Violence Against Women Act when the law expires in the year 2000. But, mark my words, if the trust fund ends, the efforts to provide shelter, help victims, and get tough on the abusers and barterers will wither on the vine. Passing the amendment I offer today will send a clear, unambiguous message that the trust fund should continue and with it, the historic effort undertaken by the Violence Against Women Act that says by word, deed, and dollar that the Federal Government stands with women and against the misguided notion that ``domestic'' violence is a man's ``right'' and ``not really a crime.'' I urge my colleagues to support the Biden-Gramm amendment. At the appropriate time--and I am not quite sure yet when is appropriate--I will ask for the yeas and nays on this. But make no mistake about it, what we are voting on here is whether or not we are going to commit now to the extension of the trust fund, the violent crime trust fund, for the extent of this agreement. That is all this does. That is everything it does, but that is all it does. Mr. DOMENICI addressed the Chair. The PRESIDING OFFICER (Mr. Bennett). The Senator from New Mexico. Amendment No. 537, Withdrawn Mr. DOMENICI. Mr. President, I withdraw my amendment. The PRESIDING OFFICER. The amendment is withdrawn. The amendment (No. 537) was withdrawn. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. Under the previous order, the Senator from West Virginia is recognized. [[Page S6442]] Amendment No. 540 (Purpose: To eliminate tax deductions for advertising and promotion expenditures relating to alcoholic beverages and to increase funding for programs that educate and prevent the abuse of alcohol among our Nation's youth) Mr. BYRD. Mr. President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report. The assistant legislative clerk read as follows: The Senator from West Virginia [Mr. Byrd] proposes an amendment numbered 540. Mr. BYRD. Mr. President, I ask unanimous consent that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the end of the bill, add the following: TITLE --ALCOHOL ADVERTISING RESPONSIBILITY ACT SEC. 01. SHORT TITLE. This title may be cited as the ``Alcohol Advertising Responsibility Act''. SEC. 02. FINDINGS AND PURPOSES. (a) Findings.--Congress finds that-- (1) alcohol is used by more Americans than any other drug; (2) it is estimated that the costs to society from alcoholism and alcohol abuse were approximately $100,000,000,000 in 1990 alone. (3) in 1995, the alcoholic beverage industry spent $1,040,300,000 on advertising, while the National Institute for Alcohol Abuse and Alcoholism was funded at only $181,445,000; (4) more than 100,000 deaths each year in the United States result from alcohol-related causes; (5) 41.3 percent of all traffic facilities in 1995, or 17,274 deaths, were alcohol related; (6) in addition to severe health consequences, alcohol misuse is involved in approximately 30 percent of all suicides, 50 percent of homicides, 68 percent of manslaughter cases, 52 percent of rapes and other sexual assaults, 48 percent of robberies, 62 percent of assaults, and 49 percent of all other violent crimes; (7) approximately 30 percent of all accidental deaths are attributable to alcohol abuse; (8) alcohol advertising may influence children's perceptions toward an inclinations to consume alcoholic beverages; (9) 26 percent of eighth graders, 40 percent of tenth graders, and 51 percent of twelfth graders report having used alcohol in the past month; and (10) college presidents nationwide view alcohol abuse as their paramount campus-life problem. (b) Purposes.--The purposes of this title are-- (1) to repeal the existing tax subsidization for expenses incurred to promote the consumption of alcoholic beverages; (2) to reduce the amount of alcohol advertising to which our Nation's youth are exposed; and (3) to increase funding for those programs that educate and prevent the abuse of alcohol among our Nation's youth. SEC. 03. DISALLOWANCE OF DEDUCTION FOR ADVERTISING AND PROMOTION EXPENSES RELATING TO ALCOHOLIC BEVERAGES. (a) In General.--Part IX of subchapter B of chapter 1 (relating to items not deductible) is amended by adding at the end of the following: SEC. 280I. ADVERTISING AND PROMOTION EXPENDITURES RELATING TO ALCOHOLIC BEVERAGES. ``(a) In General.--No deduction otherwise allowable under this chapter shall be allowed for any amount paid or incurred to advertise or promote by any means any alcoholic beverage. ``(b) Alcoholic Beverage.--For purposes of this section, the term `alcoholic beverage' means any item which is subject to tax under subpart A, C, or D of part I of subchapter A of chapter 51 (relating to taxes on distilled spirits, wines, and beer).''. (b) Conforming Amendment.--The table of sections for part IX of subchapter B of chapter 1 is amended by adding at the end the following: ``Sec. 280I. Advertising and promotion expenditures relating to alcoholic beverages.''. (c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31 of the year in which this Act is enacted. SEC. 04. ALCOHOL ABUSE EDUCATION AND PREVENTION AMONG YOUTH. (a) In General.--Subject to subsection (c), there shall be transferred, from funds in the Treasury not otherwise appropriated, to the entities described in subsection (b) amounts to the extent specified under subsection (b). (b) Education and Prevention Programs.-- (1) Substance abuse and mental health services administration.--The amounts specified in this subsection shall be: (A) In general.--With respect to the Substance Abuse and Mental Health Services Administration, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to supplement substance abuse prevention activities authorized under section 501 of the Public Health Service Act (42 U.S.C. 290aa). (B) Use of funds.--Amounts provided to the Substance Abuse and Mental Health Services Administration under subparagraph (A) shall be used directly or through grants and cooperative agreements to carry out activities to prevent the use of alcohol among youth, including the development and distribution of public service announcements. (2) Centers for disease control and prevention.-- (A) In general.--With respect to the Centers for Disease Control and Prevention, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to carry out a comprehensive strategy to prevent alcohol-related disease and disability. (A) Required uses.--In carrying out the comprehensive strategy under subparagraph (A), the Centers for Disease Control and Prevention shall-- (i) enhance and expand State-based and national surveillance activities to monitor the scope of alcohol use among the youth of the United States; (ii) enhance comprehensive school-based health programs that focus on alcohol use prevention strategies; (iii) develop and distribute commercial advertising to prevent alcohol abuse among youth; and (iv) enhance and expand Fetal Alcohol Syndrome prevention activities throughout the United States. (3) National highway traffic safety administration.--With respect to the National Highway Traffic Safety Administration, and in addition to any funds authorized from the Highway Trust Fund, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to carry out programs under sections 402, 403, and 410 of title 23, United States Code, and to develop and implement a paid media campaign targeting high-risk youth populations to improve the balance of media messages related to alcohol impaired driving. (4) Indian health service.--With respect to the Indian Health Service, $40,000,000 for fiscal year 1998, $60,000,000 for fiscal year 1999, $60,000,000 for fiscal year 2000, $70,000,000 for fiscal year 2001, and $70,000,000 for fiscal year 2002, to supplement the programs that such Service is authorized to carry out pursuant to titles II and III of the Public Health Service Act (42 U.S.C. 202 et seq., 241 et seq.). (c) Authority to Transfer Funds.--The Committee on Appropriations of the House of Representatives and the Committee on appropriations of the Senate, acting through appropriations Acts, may transfer the amount specified under subsection (b) in each fiscal year among the entities referred to in such subsection. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, would the Chair indulge me momentarily? I protect my right to the floor. The PRESIDING OFFICER. The Senator from West Virginia will be protected in his right to the floor. Mr. DURBIN addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia has the floor. Mr. BYRD. I thank the Chair. Mr. President, last Friday negotiators from the tobacco industry and State attorneys general announced the landmark agreement addressing the impact of tobacco use on our Nation, particularly our young people. Although this important deal will likely face many obstacles and has a long way to go toward implementation, it is an unprecedented first step toward curbing tobacco use and paying for the harm caused by that use. This process has caused our Nation to focus on an important public health danger and is an important step in working toward a meaningful solution. While I applaud the action being taken to address the pernicious health effects of tobacco, I am concerned that its evil twin, which also has a staggering impact on our Nation, is to a large measure being ignored. Mr. President, the cost of alcohol abuse to our country is staggering. According to the National Institute on Alcohol Abuse and Alcoholism of the National Institutes of Health, alcohol is used by more Americans than any other drug. And the results are devastating. The flood tide of alcohol causes more than 100,000 deaths each year in the United States. Alcohol abuse and alcoholism imposes approximately $100 billion in cost each year on society. Links have been found between alcohol abuse and cirrhosis of the liver, as well as other harmful health conditions. Alcohol is a contributing factor in assaults, murders and other violent crimes, including fatal drinking and driving accidents. At the bottom of every empty bottle is another family in crisis, another career being destroyed, or another dream washed away. [[Page S6443]] The amendment I am offering today would eliminate the tax deduction for alcoholic beverage advertising expenditures. In addition, it would increase funding for a number of programs that educate and prevent the abuse of alcohol among our Nation's youth. What should be of the utmost of our concern in our Nation is the impact of alcohol on our children and our grandchildren. I am introducing this amendment on behalf of the children who died because they were drinking and driving, and on behalf of the millions of children who are drinking right now without the full appreciation of what they are doing to themselves and what they could potentially do to others. Alcohol is the drug of choice among teenagers. Mr. President, more specifically, and looking at this chart compiled by the National Center on Addiction and Substance Abuse, the use of alcohol by our Nation's youth is highlighted among different age groups, including children between the ages of 12 and 17. Among children between the ages of 16 and 17, 69.3 percent have at one point in their lifetimes experimented with alcohol. Clearly, as made evident by these alarming statistics, alcohol is the leading problem among teenagers--not marijuana, not cocaine. In the last month, approximately 8 percent of the Nation's eighth graders have been drunk--have been drunk. We are talking about eighth graders, 13 years old--13-year-olds. I never heard of such a thing when I was in my teens, as a young man, or in my middle age. We are talking about eighth graders, 13-year-olds. Every State has a law prohibiting the sale of alcohol to individuals under the age of 21. How is it then that two out of every three teenagers who drink report that they can buy their own alcoholic beverages? The youth of this country, who at the delicate age of 15 should be enriching their minds with schoolwork, improving their bodies with exercise, and discovering the wonders of life through God and family values, instead are experimenting and endangering themselves with booze. Junior and senior high school students drink 35 percent of all wine coolers and consume 1.1 billion cans of beer a year. I know, because I pick some of them up off my lawn--I am talking about the beer cans, not the young people. I will repeat what is common knowledge to us all: Every State has a law prohibiting the sale of alcohol to individuals under the age of 21. Alcohol is a factor in the three leading causes of death for 15- to 24- year-olds--the three leading causes--accidents, homicides, suicide. In approximately 50 percent to 60 percent of youth suicides, alcohol is involved. Links have been shown between alcohol use and teen pregnancies and sexually transmitted diseases. Eighty percent of the teenagers do not know that a can of beer has the same amount of alcohol as a shot of whiskey or a glass of wine. By the time they are in college, 40 percent have binged on alcohol during the previous 2 weeks. In 1994, 8.9 percent--almost 95,000--of the clients admitted to alcohol treatment programs that received at least part of their funding from the State were under the age of 21, including over 1,000 under the age of 12. And 31.9 percent of youth under the age of 18 in long-term State-operated juvenile institutions were under the influence of alcohol at the time of their arrest. While our Nation's education system needs repair, it seems that our society has been successful in teaching these kids something. The problem is that what we have taught them is deadly. Drinking impairs one's judgment. We all know that. Nobody will dispute that. Alcohol mixed with teenage driving is a lethal, a lethal combination. We read about it all the time in the Washington Post, the Washington Times, and every newspaper in the land. In 1995, there were 1,666 alcohol-related fatalities of children between the ages of 15 and 19. The total number of alcohol-related fatalities that year was 17,274. Mr. President, for many years I have taken the opportunity, when addressing groups of young West Virginians, to warn them about the dangers of alcohol. I supported legislative efforts to discourage people, particularly young people, from drinking any alcohol. For example, 2 years ago I authored an amendment that requires States to pass the zero-tolerance laws that will make it illegal for persons under the age of 21 to drive a motor vehicle if they have a blood alcohol level greater than .02 percent. This legislation not only helps to save lives but it also sends a message to our Nation's youth that drinking and driving is wrong, that it is a violation of the law, and that it will be appropriately punished. Unfortunately and tragically, we all know someone, whether it is a family member or a friend or an acquaintance, whose life has been cut short by a drunk driver. These are senseless losses that are devastating to the families and the friends who are left behind. As if the aforementioned statistics about youth alcohol use and the results of that use are not frightening enough, young people who consume alcohol are more likely to use other drugs. On the chart to my left, Senators will note these statistics, compiled by the National Center on Addiction and Substance Abuse at Columbia University, statistics which show that 37.5 percent of young people who have consumed alcohol have used some other illicit drug, versus only 5 percent of young people who have never consumed alcohol; 26.7 percent of those who have consumed alcohol have tried marijuana, versus 1.2 percent of those who have never consumed alcohol; 5 percent of youths who have partaken of alcohol have tried cocaine, while only 0.1 of 1 percent of those who do not drink have used cocaine. So it is not a question that is even debatable that youths who drink alcohol are more likely to use other drugs. Mr. President, as the aforementioned facts and figures indicate, alcohol exacts a tremendous cost on our society. These costs are not always clear-cut. For example, consider the costs of the lost productivity of a person showing up at work on a Monday morning with a hangover and inadequately performing his or her job, perhaps making a mistake that results in injury. How many of us would like to ride in the automobile that was made on such a Monday morning? How many of us would like to fly on the airplane whose maintenance man or woman, whose mechanic was on a binge the previous day? While there is no way to accurately gauge the enormous costs that alcohol exacts upon our society, there can be no doubt that the pleasures of alcohol consumption exacts a considerable price on our Nation. The purpose of the amendment that I introduce today is simple. My proposal would simply tell all producers of alcoholic beverages that they can no longer deduct the costs of their advertising expenditures on those products from their Federal income tax liability. While advertising is generally deductible as a legitimate business expense, I believe there exists a moral, legitimate reason to create an exception for producers of alcoholic beverages whose products exact such considerable costs on our society. My proposal would not make illegal any advertising of alcoholic beverages. It does not say that any advertising of alcoholic beverages is unconstitutional. It does not attempt to ban such advertisements, nor would it create any additional Federal bureaucracy to regulate alcohol products. Rather, it would simply end the American taxpayers' subsidization of alcohol advertising by amending the Internal Revenue Code of 1986 to include a disallowance of any deduction for any amount paid or incurred to advertise or promote by any means any alcoholic beverage. This is not a sin tax. It is, rather, an end to the sin subsidy that has left American taxpayers footing the bill for both alcohol advertising and the high health care costs inflicted on society by alcohol consumption. Now there may be those who argue that it is wrong to single out alcohol advertising expenses. I counter that with the question: What other product, with the possible exception of tobacco, costs society $100 billion each year? What other product results in more than 100,000 deaths each year in the United States? The statistics are indeed staggering. Mr. President, in these complicated times, the innocence of youth, the innocence of youth is dashed away at an early age by the irreverent messages spewing from the television set. Profanity and violence on television programming are interrupted only by the aggressive commercials seeking to influence viewers in the name of profit. [[Page S6444]] Our impressionable youth, pressured by the self-indulgent motives of revenue-hungry corporations are bombarded by countless images glorifying an unrealistic view of reality, often insincerely portraying alcoholic beverages as an ingredient for ideal lifestyles. Our children are besieged with the message that if you drink you will attract beautiful women, if you drink you will be popular, if you drink you will excel at sports. Are these the images of reality or do they leave out something important? Do they leave out some important facts about alcohol consumption? What about the negative and all too prevalent results of alcohol consumption--the hangovers that result in lost productivity, the tragic deaths, the injuries caused by a drunk behind the wheel, the hospital visits for alcohol poisoning, the horrible effects of cirrhosis of the liver and the families torn apart by alcohol abuse. The industry indicates that their advertisements do not target young people, although this is debatable. A January Wall Street Journal article, detailing a competitive media reporting survey commissioned by the Journal, found that beer advertisements are often aired during programs that are watched by large numbers of adolescents. The findings of this survey are extremely disturbing. In one example, referenced in the article, a beer ad ran during the airing of a popular cartoon show on the MTV station of which 69 percent of the audience was comprised of children under the age of 21. Mr. President, I ask unanimous consent to have printed in the Record the Wall Street Journal article. There being no objection, the article was ordered to be printed in the Record, as follows: [From the Wall Street Journal] Are Beer Ads on Beavis and Butt-Head Aimed at Kids? (By Sally Beatty) When a commercial for Schlitz Malt Liquor appeared last year on MTV during ``My So-Called Life,'' a show about teenage girls, beer maker Stroh called the airing an aberration. Even as the ad helped launch a Federal Trade Commission probe into alcohol advertising to children, Stroh said it had a longtime policy of aiming ads only at adults of legal drinking age; MTV said the ad ran by mistake because of a last-minute programming switch. In fact, the commercial was hardly an isolated event. Despite the beer industry's insistence that it doesn't target kids, its commercials regularly wash over underage viewers. A survey by Competitive Media Reporting for the Wall Street Journal showed that during one arbitrarily chosen week--the first week of September--youths under the drinking age made up the majority of the audience for beer commercials on several occasions. For instance, Molson beer was advertised during a 10 p.m. episode of ``Beavis & Butt-Head,'' the popular MTV cartoon series about two obnoxious teens. Fully 69% of all the episode's viewers that night were under 21--the legal drinking age in all 50 states--according to Nielsen Media Research's widely used ratings data. Molson, which is marketed in the U.S. by Philip Morris's Miller Brewing, also advertised on MTV's racy youth dating show, ``Singled Out,'' just after 7 p.m., when 52% of the audience was under 21. And Stroh advertised Schlitz Malt Liquor during MTV's prime-time music-video show at 8:30 p.m., when 56% of the audience was under 21. That same week, Adolph Coors ran two ads on the Black Entertainment Television channel after 8 p.m., when 65% of the audience wasn't old enough to drink. Also that week, Anheuser-Busch ran an ad for its Budweiser brand just after 8:30 p.m. on BET during music-video programming, when 70% of the audience was under 21. These commercials look like clear violations of the chief beer industry trade group's own guidelines for TV ads. ``Beer advertising . . . should not be placed in magazines, newspapers, television programs, radio programs or other media where most of the audience is reasonably expected to be below the legal purchase age,'' states the Beer Institute's published ``advertising and marketing guidelines.'' The industry is pointing to these guidelines in an aggressive lobbying effort against proposed new federal restrictions of beer and liquor advertising. The number of ads reaching kids is ``very troubling,'' says Jodie Bernstein, director of the FTC's bureau of consumer protection and a top official involved with its ongoing probe into alcohol marketing to kids on television. Her bureau enforces laws banning unfair or deceptive ad practices, including a statute that says it's unfair to aim ads at people who aren't legally able to buy the products. A company that runs afoul of such laws can face fines, orders to pull ads and regular FTC screening of future advertising. Ms. Bernstein won't comment on the FTC's probe. However, she says that in any investigation, the commission would look first at whether alcohol advertisers are ``following their own guidelines.'' For example, ``Is it OK if [the percentage of underage viewers] gets up to 70% once in a while? I don't think it's OK.'' And she says the commission would ``never act on just one episode or one mistake--we would act on the pattern.'' Brewers and TV executives insist that it doesn't make sense to evaluate beer ads on a single night's audience. ``Any attempt to analyze the beer industry's media-buying practices by examining only selected broadcast media buys during a one- week period is misleading and simplistic,'' said Miller Brewing in a statement responding to questions about the survey. Miller added that more than 75 percent of the broadcast audience reached by the programming it buys is over 21. At Stroh, officials argue that there's a difference between putting ads in front of kids and targeting them explicitly. ``We understand that when an ad is run it's going to be seen by some people who are under 21 years of age, whether it's a billboard, in a magazine or on TV,'' says Stroh general counsel George Kuehn. ``That does not mean we target the group that is under 21.'' Whether the beer industry advertises to kids became a hotly debated question after the liquor industry last year abandoned its longstanding guidelines banning TV ads. That sparked a national uproar over exposing kids to alcohol ads-- putting the beer industry in the spotlight. In Congress, Rep. Joseph P. Kennedy II (D., Mass.) has introduced legislation that would ban most forms of alcohol advertising from 7 a.m. to 10 p.m., require health warnings on print, radio and TV ads and require alcohol ads that run in publication with a 15% or more youth readership to appear only in black-and-white text. There are already signs that brewers and Madison Avenue are worried about the threat of regulation of beer ads. No. 1 brewer Anheuser-Busch revealed last month that it quietly pulled all its beer advertising from MTV, saying it hoped to ``ensure that our intent is not misperceived in today's climate.'' The Madison Avenue's main trade group, the American Association of Advertising Agencies, recently abandoned its longtime stand against restrictions on ads for products like alcohol and cigarettes. It proposed setting up a new self-regulation committee, warning that the industry otherwise faces a government crackdown on ads for beer and other adult products. But setting reliable guidelines for such ads remains tricky. TV executives argue that Nielsen ratings aren't reliable measures of kid viewership--even though the ratings are the TV industry's gold standard for gauging the cost of ad time. Says John Popkowski, executive vice president in charge of ad sales at MTV Networks: ``If you pick one show on an isolated night you might find one that's an aberration statistically,'' since cable channels' viewership is sometimes relatively small. On the E! Channel, for instance, Miller Brewing ran a Foster's ad on Sept. 2, just before 7:30 p.m., during the show ``Melrose Place.'' That night, 41% of the show's audience was under 21, according to Nielsen. But David T. Cassaro, senior vice president in charge of ad sales for E! Entertainment Television, says that from July 1 to Sept. 29 between 7 p.m. and 8 p.m., only about 28% of E! Entertainment's audience was under 21. Overall, Mr. Cassaro adds, only 19% of E! Entertainment's total audience isn't old enough to drink. ``With networks like BET the numbers are so small that they jump all over the place,'' adds John Goldman, a spokesman for Adolph Coors. ``You take as much care as you can but the programming changes often.'' Mr. Goldman says that in the third quarter, the over-21 audience reached by BET between 7 p.m. and 8 p.m. ranged from 80% to 43%. Mr. Goldman adds that Coors doesn't buy MTV as a matter of company policy. ``We want to avoid any misperception that we're aiming at an underage audience.'' Mr. BYRD. Mr. President, looking at another chart to my left, this chart demonstrates competitive media reporting estimates that the alcoholic beverage industry spent more than $1 billion on alcohol advertising in 1995. In contrast, in 1995, the Federal investment in the National Institute on Alcohol Abuse and Alcoholism was a mere $189.8 million for alcohol research. Does the industry expect us to believe that it would spend this huge amount of money--$1.1 billion--if it were not getting something for that money? Some may argue that this legislation would adversely affect the advertising industry by forcing producers of alcoholic beverages to eliminate their advertising expenditure. Poppycock. I do not believe that this would be the case. Alcoholic beverage producers spend large amounts of money to advertise their products because it encourages people to consume their product and it, therefore, increases sales. Eliminating the advertising deduction will not eliminate the fundamental business practice. By making these advertisements less profitable, this amendment may reduce the overall amount of alcohol advertising in our society. However, let there be no doubt that the alcohol ads will keep on running. You [[Page S6445]] can bet your bottom dollar on that. They will. The difference, however, will be that the American taxpayer will no longer be subsidizing this activity and that the money will go, instead, to getting the other side of the alcohol story out. That is what we need to start doing. We need to start now getting the other side of the alcohol story out. It is perhaps not the most popular thing politically to attempt to do here, but it needs to be done. This amendment is all the more necessary because, last year, the Distilled Spirits Council of the United States decided to reject its self-imposed ban on advertising hard liquor on television and radio. I decried this decision by the Distilled Spirits Council because it is a step backward at a time when our Nation is working to curb alcohol abuse. Now hard liquor advertisements will be flowing over the airwaves. This is not the direction in which our Nation should be moving. According to the Joint Committee on Taxation, the elimination of the tax deduction would result in $2.9 billion in savings over 5 years. My amendment targets the savings from the elimination of the disallowance to programs to prevent alcohol abuse among our Nation's young people and to educate children about alcohol. The Substance Abuse and Mental Health Services Administration would be given increased funds to supplement programs to prevent the use of alcohol among young people and to fund a media campaign designed to counteract the constant bombardment to which our children are subjected daily by alcohol advertisements. It is important to give our children information about the risks associated with the consumption of alcohol. We should not sit idly by and leave unchallenged the messages of alcoholic beverage advertisements that only good things happen to those who drink alcohol. This amendment will also direct funding to the Centers for Disease Control and Prevention to carry out a comprehensive strategy to prevent alcohol-related disease and disability. The CDC would be given authority to enhance and expand fetal alcohol syndrome prevention activities throughout the Nation. According to the NIAAA, fetal alcohol syndrome is estimated to affect from one to three children out of every 1,000 live births. To address the distressing problem of alcohol-impaired driving, the National Highway Traffic Safety Administration's alcohol-impaired driving incentive grant program, previously known as section 410, would receive additional funding. Funding is also made available to NTSA to launch a media campaign about the perils of driving under the influence. The Indian Health Service will receive funding for its alcohol abuse programs to address the issue of alcohol abuse, which has such a devastating effect on the first Americans. I don't refer to them as native Americans. I don't refer to them as native Americans. I am a native American. If I am not a native American, of what country am I a native? I refer to them as the original Americans, or the first Americans. The harm that alcoholic beverages cause our Nation is not a second- rate hangover, but a serious affliction that kills more than 100,000 people each year. By adopting this amendment, we would be making a positive effort to improve the health of our Nation, particularly of our children, and to send a sober message to those who are capitalizing on profits generated by recklessly advertising alcoholic beverages through far-reaching and seductive means, such as television. We should act in the best interests of the American people and announce ``last call'' to those who have been receiving tax breaks for peddling booze, take a step in the right direction and begin to repair some of the damage brought by alcohol in this country. Let us begin by putting a cork in the tax loophole that has left American taxpayers picking up the tab for the alcohol industry. Now, Mr. President, I am very well aware that a point of order will be made, or can be made. I am well aware of that. But I think the debate has to start at some point. I think that point is now. We hear a great deal about tobacco and we hear a great deal about children, about children's health. I hope those who support those programs and talk much about them would support this effort. We are talking here about children's health. We are talking here about something that kills 100,000 people every year. I am not seeking to ban alcohol. I am not seeking to regulate alcohol. I am simply seeking to end the subsidization by the taxpayers of this country of alcohol. Think about it. Think about it on your way home tonight as you drive out the George Washington Parkway and see someone in front of you wobbling from one side of the road to the other. Think again. Suppose your wife is up at Tyson's Corner getting ready to drive home with the children and that same fellow who was in front of your car wobbling may kill your wife and your children. So let's start talking about it. Let's start airing the subject here. Let's stop putting it behind the curtain, putting it under the rug, saying it is taboo. It is not. It is not taboo. Think about our children, our grandchildren. This is the product that kills other people. Tobacco may kill me. Tobacco may kill the individual who smokes it. But alcohol may not kill the person who imbibes; it may kill the innocent--the driver in the other car. So I hope that Senators will support my amendment. As I say, I am sure that there is a process or a motion available, but I am accustomed to those things. I say let the Senate work its will. I yield the floor. Mr. ROTH addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Mr. ROTH. I yield 5 minutes to the distinguished Senator from Kentucky. The PRESIDING OFFICER. The Senator from Kentucky is recognized. Mr. McCONNELL. Mr. President, I thank the chairman of the Finance Committee for yielding me a few moments. I listened very carefully to my good friend and colleague from West Virginia and to his observations about the dangers of drinking and driving, with which I completely concur. Of course, representing Kentucky, as my friend from West Virginia knows, not only do we have 60,000 tobacco growers, which is, of course, the subject of a number of amendments that may come on this bill; we are also the home of bourbon. If this kind of whiskey is not made in Kentucky, it cannot be called bourbon. Let me suggest that there are no industries--and I checked with the Finance Committee staff--that have been singled out by law and, as a result of being singled out, are not allowed to deduct their expenses for advertising. So this would be a first. To begin with, as a matter of tax policy, certain kinds of legal industries are not allowed to deduct their advertising, and others are. There is also--while we are thinking of both cigarettes and alcohol-- another important distinction. There is no argument that misuse of alcohol is a problem in this country. As a Senator from a tobacco- producing State, I never make the argument that smoking cigarettes is good for you. Obviously, it isn't. But there are many in the medical profession who would say that the consumption of alcohol, if used properly--properly--is actually good for you. I am not a physician, I can't make that argument, but there is a growing argument being made by many in the medical community that a certain amount of alcohol, properly used, is actually good for you health, not bad for your health. So we have here a legal product, Mr. President, which, arguably, if properly used, might actually be good for you, which the distinguished Senator from West Virginia, I gather, is saying when misused, of course, is clearly a terrible thing and a disaster not only for the person misusing it, but for others who may be affected by that, and that because a product may be misused, the Government should step in and say: Your advertising is not allowed. Regardless of how you may feel about this---- Mr. BYRD. Will the Senator yield? Mr. McCONNELL. Yes. Mr. BYRD. For a correction only. My amendment does not say your advertising will not be allowed. I am not saying that at all. The alcohol industry may continue to advertise. I am just saying, let's stop the subsidization of that advertising, the subsidization by the taxpayers. Mr. McCONNELL. I thank the Senator. I think I did understand his [[Page S6446]] amendment to disallow a deductibility for advertising, which would make this the only industry of which the Finance Committee is aware where such deductibility would be disallowed. Aside from my home State and the product, which, if properly used, might actually be good for you, I wonder if my friend from West Virginia doesn't share my concern that once we go in this direction, we might find other activities that some may find offensive being subject to the same kinds of efforts to disallow deductibility for certain kinds of business expenses. I think, for example, West Virginia and Kentucky used to trade back and forth in terms of coal production. One year West Virginia would be first; the next year Kentucky would be the first. Alas, neither are first anymore. Wyoming is. But there are many Americans who think, as a result of the burning of coal, that the area is polluted and that, as a result of that, people contract lung problems. In fact, there is an initiative by the Clinton administration just announced this week which the Senator from West Virginia and I both have serious reservations about designed to cut down on air pollution--so the argument goes--so there will be less lung disease. I wonder, if we go down this path of trying to pick out which industries' deductions for certain kinds of business expenses are to be allowed or not allowed based upon our judgment about what is harmful to the public, whether or not somebody might come in and say, ``Well, we shouldn't allow production costs associated with the mining of coal to be deductible because, after all, the burning of coal leads to the pollution of the air, which then leads to lung disease, which then leads to death.'' I just am concerned that this is a step in the wrong direction. I understand fully the concerns of the Senator from West Virginia, and I share them. I think the use of alcohol leads to a great deal of tragedy. But I hope we will not single out this legal industry producing a product, which, if properly used, many people in the medical field feel is actually good for you, for this kind of selective treatment on deductibility. Finally, let me say that I am not an expert on the budget deal. But it is clear that there is a lot of momentum in this body to hold the deal together, and this is clearly not part of the budget deal. I hope that the proposal will not be approved, in all due respect to my good friend and colleague from West Virginia. I hope this would not become part of the measure before us. I yield the floor. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, may I say that I fully understand the economic impact of the tobacco industry on the State of the distinguished Senator who has just spoken. West Virginia grows good tobacco crops as well, and the income from those tobacco crops certainly impact upon many families in many counties of West Virginia. We are talking about here, though, a product that results in the maiming and in the killing of people--innocent men, women, and children. The distinguished Senator from Kentucky mentions the carbon dioxide emissions and other greenhouse gas emissions and possible implications of those emissions on health. People who breathe that air may well, indeed, suffer an adverse impact on their health. But they don't go out and maim. They don't go out and drive an automobile, lose their proper judgment, and end up killing innocent people. They do not go home and abuse their spouses if they smoke cigarettes or if they breathe air blown from them. They don't go home and abuse their children. They don't go home and assault and batter the other members of their family. I am talking about a product that we all know--it is not just this Senator's opinion. We all know when we read the daily newspapers about the effects of drinking and driving. We all read the newspapers in the spring following the graduation exercises at high schools, and we read, with horror, the stories of a few young people who get into an automobile and wrap that automobile around a telephone pole and they are all killed or maimed--maimed for life. That is what we are talking about. I am not talking about singling out an industry. I am talking about an industry that creates a product that is hurtful--not just hurtful to the person who uses it, but endangers, as I said already, the lives of others. We all know that. But I do appreciate the fact that the Senator is from Kentucky, and I respect him for that, and I respect his viewpoint and count him and his fellow Kentuckians as good neighbors. I yield the floor. Mr. ROTH. How much time would the Senator from Montana like? Mr. BURNS. Probably no more than 5 minutes. Mr. ROTH. I yield 5 minutes to the Senator from Montana. The PRESIDING OFFICER. The Senator from Montana. Mr. BURNS. I thank my friend from Delaware. Mr. President, no one on this floor makes his case with such passion as my friend from West Virginia. We have a couple of things in common that we will not go into here. But I also know from where he comes. And when you start talking about this issue of singling out something, then we have to look at probably the real facts. First, there is the presumption in this amendment that somehow the advertising is evil or bad, or that it wreaks health problems on the American people. There is no question in anybody's mind across this land that the abuse of alcohol is one of our greatest problems--no doubt. Yet, there is no scientific evidence that would even suggest the casual relationship between advertising and abuse. In order to get to the root of the problem of alcoholism and all of the problems that it brings, study after study after study has been made in the relationship of advertising. In fact, during the 1980's, when the advertising for alcohol products was increasing, actual consumption per capita actually was decreasing. So not only does advertising not impact abuse, it doesn't even impact the overall consumption. Singling out a product is not, I don't think, what fair tax law is about. So let's be upfront about it, because I am familiar with the broadcast industry. It has economic impacts on small business. It has economic impacts. And once we start singling out products, do we start talking about red meat, eggs, or sugar? Where do we draw the line? The impact it might have on the national pastime? We could say, ``OK, we don't need it in the broadcasting industry. We can all pay for pay-per- view''--the impact on an industry within itself. And the list goes on and on trying to explain to our constituents why different things happen and cost more, because there is a decrease in advertising support in free television. That also brings us our weather, our farm reports, our news, our emergency conditions. All of these things that are supported by free over-the-air broadcasts will be impacted if this amendment is successful. The industry has taken steps to limit or try to curb the abuse that alcohol has on a person or individual. There is no doubt about it. And in some areas some would say it is even working. I know that all of us want a tax cut. All of us want a balanced budget. But to single out and start limiting an ad tax or deductibility for legal products is not the right approach. It is not the right approach--not on a legal product. So I urge my colleagues to oppose this. It is unwarranted. I think it is unwise. And I am not real sure, it might have some constitutional overtones because advertising is still freedom of speech. It cannot be treated differently than any other form. The Senator from West Virginia makes a point. It is the abuse of the product. The advertising has very little to do with the abuse of the product. Thank you, and I urge the defeat of this amendment. I yield the floor. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, the Senator talks about red meat, eggs, and sugar. The Honorable Senator is my friend. Who ever heard of anybody eating red meat, eggs, and sugar, and getting out in the car and having that car plunge into a tree, weave all across the road, and kill and maim other people? Red meat doesn't cause an individual to drive drunk and get in the car and [[Page S6447]] drive all over the highway. Eggs and sugar don't do that in their form as eggs and sugar, in their natural form. The Senator also, I think, made reference to the Federal Trade Commission in 1985, which found ``no reliable basis to conclude that alcohol advertising significantly affects consumption, let alone abuse.'' Well, let's see what the conclusions are from the effects of the mass media on the use and abuse of alcohol. The National Institute of Alcohol Abuse and Alcoholism, U.S. Department of Health and Human Services, Research Monograph-28, 1995: [The] preponderance of the evidence indicates that alcohol advertising stimulates higher consumption of alcohol by both adults and adolescents . . . It appears to be a contributing factor that increases drinking to a modest degree rather than being a major determinant. (Dr. Charles Adkins, Department of Communications, Michigan State University.) Now I shall quote Dr. Sally Casswell, Alcohol and Public Health Research Unit, School of Medicine, University of Aukland: [T]here is sufficient evidence to say that alcohol advertising is likely to be a contributing factor to overall consumption and other alcohol-related problems in the long term. Now quoting Dr. Joel Grube, Prevention Research Center: [A]lcohol advertising can influence children, particularly their beliefs about alcohol and, indirectly, their intentions to drink as adults. Finally, let me quote Dr. Esther Thorson, School of Journalism, University of Missouri: If research were designed to take account of what the advertiser is trying to do and if it examined the relationship between the specific structure of the message and the individual or group for whom that message is targeted, investigators probably would find ``whopping effects''. Mr. President, I appreciate the views that have been expressed by my friend from Montana and, as I have already indicated, by my friend from Kentucky. I appreciate their views, and I respect their views. Mr. President, I don't think there should be any doubts in the minds of any Senator or any person who is viewing this Chamber via that electronic eye that the drinking of alcohol affects the judgment of people, and that there are many other costs that are not tangible, that cannot be translated into dollars and cents-- the cost of lost productivity, the cost of broken homes, the cost of children abused. And I could go on. I have made my case, and I ask for the yeas and nays on my amendment. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. Mr. BYRD. I yield back the balance of my time. The PRESIDING OFFICER. The Senator from Delaware has the remaining time. Mr. ROTH. Mr. President, I yield back the remainder of my time, and I make the point of order that the pending amendment is not germane to the provisions of the reconciliation measure and I therefore raise a point of order against the amendment under section 305(b)(2) of the Budget Act. Mr. BYRD. Mr. President, I move to waive the point of order and ask for the yeas and nays on my motion. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. The PRESIDING OFFICER. There is an hour equally divided on the motion. Mr. BYRD. Mr. President, I yield back my time. Mr. ROTH. Mr. President, I yield back the balance of my time. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question is on agreeing to the motion to waive. The yeas and nays have been ordered. The clerk will call the roll. The bill clerk called the roll. Mr. McCAIN (when his name was called). Present. Mr. NICKLES. I announce that the Senator from Kansas [Mr. Roberts], is necessarily absent. The PRESIDING OFFICER. Are there any other Senators in the Chamber who desire to vote? The yeas and nays resulted--yeas 12, nays 86, as follows: [Rollcall Vote No. 136 Leg.] YEAS--12 Bumpers Byrd Cleland DeWine Glenn Hatch Helms Kennedy Rockefeller Sarbanes Thurmond Wellstone NAYS--86 Abraham Akaka Allard Ashcroft Baucus Bennett Biden Bingaman Bond Boxer Breaux Brownback Bryan Burns Campbell Chafee Coats Cochran Collins Conrad Coverdell Craig D'Amato Daschle Dodd Domenici Dorgan Durbin Enzi Faircloth Feingold Feinstein Ford Frist Gorton Graham Gramm Grams Grassley Gregg Hagel Harkin Hollings Hutchi

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REVENUE RECONCILIATION ACT OF 1997
(Senate - June 26, 1997)

Text of this article available as: TXT PDF [Pages S6440-S6473] REVENUE RECONCILIATION ACT OF 1997 The Senate continued with the consideration of the bill. Amendment No. 537 Mr. DOMENICI. How much time do I have on the amendment? The PRESIDING OFFICER. Forty-four minutes. Mr. DOMENICI. And the opposition has 44 minutes? The PRESIDING OFFICER. Sixty minutes. Mr. DOMENICI. So we have used 16. Actually, unless Senator Lautenberg has anything further to say, I believe I have stated the case for the Domenici-Lautenberg amendment No. 537. Does Senator Gramm want to offer an amendment to the amendment? Mr. GRAMM. I think Senator Biden is going to offer an amendment first, and after his amendment is disposed of, then I will have an amendment, as will several other people. Mr. BIDEN addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Mr. BIDEN. Madam President, I wonder if the Democratic manager would yield me time off the bill. Mr. DOMENICI. The Senator has time on his amendment. Mr. BIDEN. Parliamentary inquiry. Can I get time in my own right? Mr. DOMENICI. I yield back my time. The PRESIDING OFFICER. The time is controlled by Senator Domenici and Senator Roth. Mr. LAUTENBERG. I yield back my time. The PRESIDING OFFICER. Is all time yielded back? Mr. DOMENICI. We yielded back our time. Mr. BIDEN addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Amendment No. 539 to Amendment No. 537 Mr. BIDEN. Madam President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report. The assistant legislative clerk read as follows: The Senator from Delaware [Mr. Biden], for himself and Mr. Gramm, proposes an amendment numbered 539 to amendment No. 537. Mr. BIDEN. Madam President, I ask that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: On page 43 of the amendment, strike lines 14 through 21 and insert the following: ``(5) with respect to fiscal year 2001-- ``(A) for the discretionary category: $537,677,000,000 in new budget authority and $558,460,000,000 in outlays; and ``(B) for the violent crime reduction category: $4,355,000,000 in new budget authority and $5,936,000,000 in outlays; ``(6) with respect to fiscal year 2002-- ``(A) for the discretionary category: $546,619,000,000 in new budget authority and $556,314,000,000 in outlays; and ``(B) for the violent crime reduction category: $4,455,000,000 in new budget authority and $4,485,000,000 in outlays; as adjusted in strict conformance with subsection (b).''. (2) Transfers into the fund.--On the first day of the following fiscal years, the following amounts shall be transferred from the general fund to the Violent Crime Reduction Trust Fund-- (A) for fiscal year 2001, $4,355,000,000; and (B) for fiscal year 2002, $4,455,000,000. Mr. BUMPERS. Will the Senator from Delaware yield for an inquiry for a moment? Mr. BIDEN. I would be happy to. Mr. BUMPERS. Could the managers of this bill tell us how many second- degree amendments there are to this process? I assume we are on the second-degree amendment process; is that correct? The PRESIDING OFFICER. That is correct. Mr. BUMPERS. Could the managers tell us how many second-degree amendments they anticipate on this? Mr. DOMENICI. I do not know. Mr. GRAMM. I believe there will be four. Senator Biden will offer one for himself. Once that is adopted, I will offer a second-degree amendment. And [[Page S6441]] then we have two other Senators who want to offer second-degree amendments, so they will be seriatim. Mr. BUMPERS. Then there are five, because I have one also. I am just wondering if we could get some kind of sequence so we know how they are going to be offered so we do not spend the rest of our lives waiting. Mr. DOMENICI. I say to the Senator, you can be assured there will be four ahead of you, if you would like to be fifth. Mr. BUMPERS. I thank the Senator for his courtesy. Mr. GRAMM. Why don't you do yours last? Mr. DOMENICI. That is what I said. Mr. BIDEN. Madam President, the second-degree amendment I have at the desk is very simple and straightforward. The Senator from New Mexico is introducing a budget process amendment, and what the amendment of Senator Gramm and myself does is, quite frankly, it merely extends the crime law trust fund for the extension of this agreement. I am told by the staffs of the majority and minority that in the budget process agreement that was agreed to with the administration, there is a line on page 90 of the concurrent resolution of the budget fiscal year 1998. On page 90, it says, ``Retain current law on separate crime caps at levels shown in the agreement tables.'' All we are doing here is extending the crime law trust fund. We are not making judgments on how that will be disbursed within the trust fund. We are just extending the trust fund to the extent of this agreement. And, Madam President, as I offer this amendment, we are maintaining a commitment to one of the few specific ways the reconciliation package can, by virtue of the type of legislation it is, maintain a commitment. The commitment we made was to fight violent crime. And, ironically, it is working. It is working. And so for us now to extend the violent crime trust fund, let it expire 2 years before this budget agreement expires, means we are going to be back at it again in the year 2000 or before, fighting over something we now know works. So I realize we can take a long time debating this. But the bottom line is this: We are not suggesting, as the Senator from New Mexico knows, how this trust fund money within the caps will be disbursed; merely that we have the continuation of the trust fund as long as the budget agreement to the year 2002. Of all the priorities addressed in this budget package, I believe that none is more important than continuing our fight against violent crime and violence against women. The amendment I am offering, along with Senator Gramm seeks to maintain this commitment in one of the few specific ways this reconciliation package can--by virtue of the type of legislation this is--maintain this commitment. That is by extending the violent crime control trust fund will continue through the end of this budget resolution, fiscal year 2002. Senator Byrd, more than anyone, deserves credit for the crime law trust fund. Senator Byrd worked to develop an idea that was simple as it was profound--as he called on us to use the savings from the reductions in the Federal work force of 272,000 employees to fund one of the Nation's most urgent priorities: fighting the scourge of violent crime. Senator Gramm was also one of the very first to call on the Senate to ``put our money where our mouth was.'' Too often, this Senate has voted to send significant aid to State and local law enforcement--but, when it came time to write the check, we did not find nearly the dollars we promised. Working together in 1993, Senator Byrd, myself, Senator Gramm, and other Senators passed the violent crime control trust fund in the Senate. And, in 1994, it became law in the Biden crime law. Since then, the dollars from the crime law trust fund have: Helped add more than 60,000 community police officers to our streets; helped shelter more than 80,000 battered women and their children; focussed law enforcement, prosecutors, and victims service providers on providing immediate help to women victimized by someone who pretends to love them; forced tens of thousands of drug offenders into drug testing and treatment programs, instead of continuing to allow them to remain free on probation with no supervision and no accountability; constructed thousands of prison cells for violent criminals; and brought unprecedented resources to defending our Southwest border-- putting us on the path to literally double the number of Federal border agents over just a 5-year period. The results of this effort are already taking hold: According to the FBI's national crime statistics, violent crime is down and down significantly--leaving our nation with its lowest murder rate since 1971; the lowest violent crime total since 1990; and the lowest murder rate for wives, ex-wives, and girlfriends at the hands of their intimates to an 18-year low. In short, we have proven able to do what few thought possible--by being smart, keeping our focus, and putting our ``money where our mouths'' are--we have actually cut violent crime. Today, our challenge is to keep our focus and to stay vigilant against violent crime. Today, the Biden-Byrd-Gramm amendment before the Senate offers one modest step toward meeting that challenge: By assuring that the commitment to fighting crime and violence against women will continue for the full duration of this budget resolution. By assuring that the violent crime control trust fund will continue-- in its current form which provides additional Federal assistance without adding 1 cent to the deficit--through 2002. The Biden-Gramm amendment offers a few very simple choices: Stand up for cops--or don't; stand up for the fight against violence against women--or don't; and stand up for increased border enforcement--or don't. Every Member of this Senate is against violence crime--we way that in speech after speech. Now, I urge all my colleagues to back up with words with the only thing that we can actually do for the cop walking the beat, the battered woman, the victim of crime--provide the dollars that help give them the tools to fight violent criminals, standup to their abuser, and restore at least some small piece of the dignity taken from them at the hands of a violent criminal. Let us be very clear of the stakes here--frankly, if we do not continue the trust fund, we will not be able to continue such proven, valuable efforts as the violence against women law. Nothing we can do today can guarantee that we, in fact, will continue the Violence Against Women Act when the law expires in the year 2000. But, mark my words, if the trust fund ends, the efforts to provide shelter, help victims, and get tough on the abusers and barterers will wither on the vine. Passing the amendment I offer today will send a clear, unambiguous message that the trust fund should continue and with it, the historic effort undertaken by the Violence Against Women Act that says by word, deed, and dollar that the Federal Government stands with women and against the misguided notion that ``domestic'' violence is a man's ``right'' and ``not really a crime.'' I urge my colleagues to support the Biden-Gramm amendment. At the appropriate time--and I am not quite sure yet when is appropriate--I will ask for the yeas and nays on this. But make no mistake about it, what we are voting on here is whether or not we are going to commit now to the extension of the trust fund, the violent crime trust fund, for the extent of this agreement. That is all this does. That is everything it does, but that is all it does. Mr. DOMENICI addressed the Chair. The PRESIDING OFFICER (Mr. Bennett). The Senator from New Mexico. Amendment No. 537, Withdrawn Mr. DOMENICI. Mr. President, I withdraw my amendment. The PRESIDING OFFICER. The amendment is withdrawn. The amendment (No. 537) was withdrawn. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. Under the previous order, the Senator from West Virginia is recognized. [[Page S6442]] Amendment No. 540 (Purpose: To eliminate tax deductions for advertising and promotion expenditures relating to alcoholic beverages and to increase funding for programs that educate and prevent the abuse of alcohol among our Nation's youth) Mr. BYRD. Mr. President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report. The assistant legislative clerk read as follows: The Senator from West Virginia [Mr. Byrd] proposes an amendment numbered 540. Mr. BYRD. Mr. President, I ask unanimous consent that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the end of the bill, add the following: TITLE --ALCOHOL ADVERTISING RESPONSIBILITY ACT SEC. 01. SHORT TITLE. This title may be cited as the ``Alcohol Advertising Responsibility Act''. SEC. 02. FINDINGS AND PURPOSES. (a) Findings.--Congress finds that-- (1) alcohol is used by more Americans than any other drug; (2) it is estimated that the costs to society from alcoholism and alcohol abuse were approximately $100,000,000,000 in 1990 alone. (3) in 1995, the alcoholic beverage industry spent $1,040,300,000 on advertising, while the National Institute for Alcohol Abuse and Alcoholism was funded at only $181,445,000; (4) more than 100,000 deaths each year in the United States result from alcohol-related causes; (5) 41.3 percent of all traffic facilities in 1995, or 17,274 deaths, were alcohol related; (6) in addition to severe health consequences, alcohol misuse is involved in approximately 30 percent of all suicides, 50 percent of homicides, 68 percent of manslaughter cases, 52 percent of rapes and other sexual assaults, 48 percent of robberies, 62 percent of assaults, and 49 percent of all other violent crimes; (7) approximately 30 percent of all accidental deaths are attributable to alcohol abuse; (8) alcohol advertising may influence children's perceptions toward an inclinations to consume alcoholic beverages; (9) 26 percent of eighth graders, 40 percent of tenth graders, and 51 percent of twelfth graders report having used alcohol in the past month; and (10) college presidents nationwide view alcohol abuse as their paramount campus-life problem. (b) Purposes.--The purposes of this title are-- (1) to repeal the existing tax subsidization for expenses incurred to promote the consumption of alcoholic beverages; (2) to reduce the amount of alcohol advertising to which our Nation's youth are exposed; and (3) to increase funding for those programs that educate and prevent the abuse of alcohol among our Nation's youth. SEC. 03. DISALLOWANCE OF DEDUCTION FOR ADVERTISING AND PROMOTION EXPENSES RELATING TO ALCOHOLIC BEVERAGES. (a) In General.--Part IX of subchapter B of chapter 1 (relating to items not deductible) is amended by adding at the end of the following: SEC. 280I. ADVERTISING AND PROMOTION EXPENDITURES RELATING TO ALCOHOLIC BEVERAGES. ``(a) In General.--No deduction otherwise allowable under this chapter shall be allowed for any amount paid or incurred to advertise or promote by any means any alcoholic beverage. ``(b) Alcoholic Beverage.--For purposes of this section, the term `alcoholic beverage' means any item which is subject to tax under subpart A, C, or D of part I of subchapter A of chapter 51 (relating to taxes on distilled spirits, wines, and beer).''. (b) Conforming Amendment.--The table of sections for part IX of subchapter B of chapter 1 is amended by adding at the end the following: ``Sec. 280I. Advertising and promotion expenditures relating to alcoholic beverages.''. (c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31 of the year in which this Act is enacted. SEC. 04. ALCOHOL ABUSE EDUCATION AND PREVENTION AMONG YOUTH. (a) In General.--Subject to subsection (c), there shall be transferred, from funds in the Treasury not otherwise appropriated, to the entities described in subsection (b) amounts to the extent specified under subsection (b). (b) Education and Prevention Programs.-- (1) Substance abuse and mental health services administration.--The amounts specified in this subsection shall be: (A) In general.--With respect to the Substance Abuse and Mental Health Services Administration, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to supplement substance abuse prevention activities authorized under section 501 of the Public Health Service Act (42 U.S.C. 290aa). (B) Use of funds.--Amounts provided to the Substance Abuse and Mental Health Services Administration under subparagraph (A) shall be used directly or through grants and cooperative agreements to carry out activities to prevent the use of alcohol among youth, including the development and distribution of public service announcements. (2) Centers for disease control and prevention.-- (A) In general.--With respect to the Centers for Disease Control and Prevention, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to carry out a comprehensive strategy to prevent alcohol-related disease and disability. (A) Required uses.--In carrying out the comprehensive strategy under subparagraph (A), the Centers for Disease Control and Prevention shall-- (i) enhance and expand State-based and national surveillance activities to monitor the scope of alcohol use among the youth of the United States; (ii) enhance comprehensive school-based health programs that focus on alcohol use prevention strategies; (iii) develop and distribute commercial advertising to prevent alcohol abuse among youth; and (iv) enhance and expand Fetal Alcohol Syndrome prevention activities throughout the United States. (3) National highway traffic safety administration.--With respect to the National Highway Traffic Safety Administration, and in addition to any funds authorized from the Highway Trust Fund, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to carry out programs under sections 402, 403, and 410 of title 23, United States Code, and to develop and implement a paid media campaign targeting high-risk youth populations to improve the balance of media messages related to alcohol impaired driving. (4) Indian health service.--With respect to the Indian Health Service, $40,000,000 for fiscal year 1998, $60,000,000 for fiscal year 1999, $60,000,000 for fiscal year 2000, $70,000,000 for fiscal year 2001, and $70,000,000 for fiscal year 2002, to supplement the programs that such Service is authorized to carry out pursuant to titles II and III of the Public Health Service Act (42 U.S.C. 202 et seq., 241 et seq.). (c) Authority to Transfer Funds.--The Committee on Appropriations of the House of Representatives and the Committee on appropriations of the Senate, acting through appropriations Acts, may transfer the amount specified under subsection (b) in each fiscal year among the entities referred to in such subsection. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, would the Chair indulge me momentarily? I protect my right to the floor. The PRESIDING OFFICER. The Senator from West Virginia will be protected in his right to the floor. Mr. DURBIN addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia has the floor. Mr. BYRD. I thank the Chair. Mr. President, last Friday negotiators from the tobacco industry and State attorneys general announced the landmark agreement addressing the impact of tobacco use on our Nation, particularly our young people. Although this important deal will likely face many obstacles and has a long way to go toward implementation, it is an unprecedented first step toward curbing tobacco use and paying for the harm caused by that use. This process has caused our Nation to focus on an important public health danger and is an important step in working toward a meaningful solution. While I applaud the action being taken to address the pernicious health effects of tobacco, I am concerned that its evil twin, which also has a staggering impact on our Nation, is to a large measure being ignored. Mr. President, the cost of alcohol abuse to our country is staggering. According to the National Institute on Alcohol Abuse and Alcoholism of the National Institutes of Health, alcohol is used by more Americans than any other drug. And the results are devastating. The flood tide of alcohol causes more than 100,000 deaths each year in the United States. Alcohol abuse and alcoholism imposes approximately $100 billion in cost each year on society. Links have been found between alcohol abuse and cirrhosis of the liver, as well as other harmful health conditions. Alcohol is a contributing factor in assaults, murders and other violent crimes, including fatal drinking and driving accidents. At the bottom of every empty bottle is another family in crisis, another career being destroyed, or another dream washed away. [[Page S6443]] The amendment I am offering today would eliminate the tax deduction for alcoholic beverage advertising expenditures. In addition, it would increase funding for a number of programs that educate and prevent the abuse of alcohol among our Nation's youth. What should be of the utmost of our concern in our Nation is the impact of alcohol on our children and our grandchildren. I am introducing this amendment on behalf of the children who died because they were drinking and driving, and on behalf of the millions of children who are drinking right now without the full appreciation of what they are doing to themselves and what they could potentially do to others. Alcohol is the drug of choice among teenagers. Mr. President, more specifically, and looking at this chart compiled by the National Center on Addiction and Substance Abuse, the use of alcohol by our Nation's youth is highlighted among different age groups, including children between the ages of 12 and 17. Among children between the ages of 16 and 17, 69.3 percent have at one point in their lifetimes experimented with alcohol. Clearly, as made evident by these alarming statistics, alcohol is the leading problem among teenagers--not marijuana, not cocaine. In the last month, approximately 8 percent of the Nation's eighth graders have been drunk--have been drunk. We are talking about eighth graders, 13 years old--13-year-olds. I never heard of such a thing when I was in my teens, as a young man, or in my middle age. We are talking about eighth graders, 13-year-olds. Every State has a law prohibiting the sale of alcohol to individuals under the age of 21. How is it then that two out of every three teenagers who drink report that they can buy their own alcoholic beverages? The youth of this country, who at the delicate age of 15 should be enriching their minds with schoolwork, improving their bodies with exercise, and discovering the wonders of life through God and family values, instead are experimenting and endangering themselves with booze. Junior and senior high school students drink 35 percent of all wine coolers and consume 1.1 billion cans of beer a year. I know, because I pick some of them up off my lawn--I am talking about the beer cans, not the young people. I will repeat what is common knowledge to us all: Every State has a law prohibiting the sale of alcohol to individuals under the age of 21. Alcohol is a factor in the three leading causes of death for 15- to 24- year-olds--the three leading causes--accidents, homicides, suicide. In approximately 50 percent to 60 percent of youth suicides, alcohol is involved. Links have been shown between alcohol use and teen pregnancies and sexually transmitted diseases. Eighty percent of the teenagers do not know that a can of beer has the same amount of alcohol as a shot of whiskey or a glass of wine. By the time they are in college, 40 percent have binged on alcohol during the previous 2 weeks. In 1994, 8.9 percent--almost 95,000--of the clients admitted to alcohol treatment programs that received at least part of their funding from the State were under the age of 21, including over 1,000 under the age of 12. And 31.9 percent of youth under the age of 18 in long-term State-operated juvenile institutions were under the influence of alcohol at the time of their arrest. While our Nation's education system needs repair, it seems that our society has been successful in teaching these kids something. The problem is that what we have taught them is deadly. Drinking impairs one's judgment. We all know that. Nobody will dispute that. Alcohol mixed with teenage driving is a lethal, a lethal combination. We read about it all the time in the Washington Post, the Washington Times, and every newspaper in the land. In 1995, there were 1,666 alcohol-related fatalities of children between the ages of 15 and 19. The total number of alcohol-related fatalities that year was 17,274. Mr. President, for many years I have taken the opportunity, when addressing groups of young West Virginians, to warn them about the dangers of alcohol. I supported legislative efforts to discourage people, particularly young people, from drinking any alcohol. For example, 2 years ago I authored an amendment that requires States to pass the zero-tolerance laws that will make it illegal for persons under the age of 21 to drive a motor vehicle if they have a blood alcohol level greater than .02 percent. This legislation not only helps to save lives but it also sends a message to our Nation's youth that drinking and driving is wrong, that it is a violation of the law, and that it will be appropriately punished. Unfortunately and tragically, we all know someone, whether it is a family member or a friend or an acquaintance, whose life has been cut short by a drunk driver. These are senseless losses that are devastating to the families and the friends who are left behind. As if the aforementioned statistics about youth alcohol use and the results of that use are not frightening enough, young people who consume alcohol are more likely to use other drugs. On the chart to my left, Senators will note these statistics, compiled by the National Center on Addiction and Substance Abuse at Columbia University, statistics which show that 37.5 percent of young people who have consumed alcohol have used some other illicit drug, versus only 5 percent of young people who have never consumed alcohol; 26.7 percent of those who have consumed alcohol have tried marijuana, versus 1.2 percent of those who have never consumed alcohol; 5 percent of youths who have partaken of alcohol have tried cocaine, while only 0.1 of 1 percent of those who do not drink have used cocaine. So it is not a question that is even debatable that youths who drink alcohol are more likely to use other drugs. Mr. President, as the aforementioned facts and figures indicate, alcohol exacts a tremendous cost on our society. These costs are not always clear-cut. For example, consider the costs of the lost productivity of a person showing up at work on a Monday morning with a hangover and inadequately performing his or her job, perhaps making a mistake that results in injury. How many of us would like to ride in the automobile that was made on such a Monday morning? How many of us would like to fly on the airplane whose maintenance man or woman, whose mechanic was on a binge the previous day? While there is no way to accurately gauge the enormous costs that alcohol exacts upon our society, there can be no doubt that the pleasures of alcohol consumption exacts a considerable price on our Nation. The purpose of the amendment that I introduce today is simple. My proposal would simply tell all producers of alcoholic beverages that they can no longer deduct the costs of their advertising expenditures on those products from their Federal income tax liability. While advertising is generally deductible as a legitimate business expense, I believe there exists a moral, legitimate reason to create an exception for producers of alcoholic beverages whose products exact such considerable costs on our society. My proposal would not make illegal any advertising of alcoholic beverages. It does not say that any advertising of alcoholic beverages is unconstitutional. It does not attempt to ban such advertisements, nor would it create any additional Federal bureaucracy to regulate alcohol products. Rather, it would simply end the American taxpayers' subsidization of alcohol advertising by amending the Internal Revenue Code of 1986 to include a disallowance of any deduction for any amount paid or incurred to advertise or promote by any means any alcoholic beverage. This is not a sin tax. It is, rather, an end to the sin subsidy that has left American taxpayers footing the bill for both alcohol advertising and the high health care costs inflicted on society by alcohol consumption. Now there may be those who argue that it is wrong to single out alcohol advertising expenses. I counter that with the question: What other product, with the possible exception of tobacco, costs society $100 billion each year? What other product results in more than 100,000 deaths each year in the United States? The statistics are indeed staggering. Mr. President, in these complicated times, the innocence of youth, the innocence of youth is dashed away at an early age by the irreverent messages spewing from the television set. Profanity and violence on television programming are interrupted only by the aggressive commercials seeking to influence viewers in the name of profit. [[Page S6444]] Our impressionable youth, pressured by the self-indulgent motives of revenue-hungry corporations are bombarded by countless images glorifying an unrealistic view of reality, often insincerely portraying alcoholic beverages as an ingredient for ideal lifestyles. Our children are besieged with the message that if you drink you will attract beautiful women, if you drink you will be popular, if you drink you will excel at sports. Are these the images of reality or do they leave out something important? Do they leave out some important facts about alcohol consumption? What about the negative and all too prevalent results of alcohol consumption--the hangovers that result in lost productivity, the tragic deaths, the injuries caused by a drunk behind the wheel, the hospital visits for alcohol poisoning, the horrible effects of cirrhosis of the liver and the families torn apart by alcohol abuse. The industry indicates that their advertisements do not target young people, although this is debatable. A January Wall Street Journal article, detailing a competitive media reporting survey commissioned by the Journal, found that beer advertisements are often aired during programs that are watched by large numbers of adolescents. The findings of this survey are extremely disturbing. In one example, referenced in the article, a beer ad ran during the airing of a popular cartoon show on the MTV station of which 69 percent of the audience was comprised of children under the age of 21. Mr. President, I ask unanimous consent to have printed in the Record the Wall Street Journal article. There being no objection, the article was ordered to be printed in the Record, as follows: [From the Wall Street Journal] Are Beer Ads on Beavis and Butt-Head Aimed at Kids? (By Sally Beatty) When a commercial for Schlitz Malt Liquor appeared last year on MTV during ``My So-Called Life,'' a show about teenage girls, beer maker Stroh called the airing an aberration. Even as the ad helped launch a Federal Trade Commission probe into alcohol advertising to children, Stroh said it had a longtime policy of aiming ads only at adults of legal drinking age; MTV said the ad ran by mistake because of a last-minute programming switch. In fact, the commercial was hardly an isolated event. Despite the beer industry's insistence that it doesn't target kids, its commercials regularly wash over underage viewers. A survey by Competitive Media Reporting for the Wall Street Journal showed that during one arbitrarily chosen week--the first week of September--youths under the drinking age made up the majority of the audience for beer commercials on several occasions. For instance, Molson beer was advertised during a 10 p.m. episode of ``Beavis & Butt-Head,'' the popular MTV cartoon series about two obnoxious teens. Fully 69% of all the episode's viewers that night were under 21--the legal drinking age in all 50 states--according to Nielsen Media Research's widely used ratings data. Molson, which is marketed in the U.S. by Philip Morris's Miller Brewing, also advertised on MTV's racy youth dating show, ``Singled Out,'' just after 7 p.m., when 52% of the audience was under 21. And Stroh advertised Schlitz Malt Liquor during MTV's prime-time music-video show at 8:30 p.m., when 56% of the audience was under 21. That same week, Adolph Coors ran two ads on the Black Entertainment Television channel after 8 p.m., when 65% of the audience wasn't old enough to drink. Also that week, Anheuser-Busch ran an ad for its Budweiser brand just after 8:30 p.m. on BET during music-video programming, when 70% of the audience was under 21. These commercials look like clear violations of the chief beer industry trade group's own guidelines for TV ads. ``Beer advertising . . . should not be placed in magazines, newspapers, television programs, radio programs or other media where most of the audience is reasonably expected to be below the legal purchase age,'' states the Beer Institute's published ``advertising and marketing guidelines.'' The industry is pointing to these guidelines in an aggressive lobbying effort against proposed new federal restrictions of beer and liquor advertising. The number of ads reaching kids is ``very troubling,'' says Jodie Bernstein, director of the FTC's bureau of consumer protection and a top official involved with its ongoing probe into alcohol marketing to kids on television. Her bureau enforces laws banning unfair or deceptive ad practices, including a statute that says it's unfair to aim ads at people who aren't legally able to buy the products. A company that runs afoul of such laws can face fines, orders to pull ads and regular FTC screening of future advertising. Ms. Bernstein won't comment on the FTC's probe. However, she says that in any investigation, the commission would look first at whether alcohol advertisers are ``following their own guidelines.'' For example, ``Is it OK if [the percentage of underage viewers] gets up to 70% once in a while? I don't think it's OK.'' And she says the commission would ``never act on just one episode or one mistake--we would act on the pattern.'' Brewers and TV executives insist that it doesn't make sense to evaluate beer ads on a single night's audience. ``Any attempt to analyze the beer industry's media-buying practices by examining only selected broadcast media buys during a one- week period is misleading and simplistic,'' said Miller Brewing in a statement responding to questions about the survey. Miller added that more than 75 percent of the broadcast audience reached by the programming it buys is over 21. At Stroh, officials argue that there's a difference between putting ads in front of kids and targeting them explicitly. ``We understand that when an ad is run it's going to be seen by some people who are under 21 years of age, whether it's a billboard, in a magazine or on TV,'' says Stroh general counsel George Kuehn. ``That does not mean we target the group that is under 21.'' Whether the beer industry advertises to kids became a hotly debated question after the liquor industry last year abandoned its longstanding guidelines banning TV ads. That sparked a national uproar over exposing kids to alcohol ads-- putting the beer industry in the spotlight. In Congress, Rep. Joseph P. Kennedy II (D., Mass.) has introduced legislation that would ban most forms of alcohol advertising from 7 a.m. to 10 p.m., require health warnings on print, radio and TV ads and require alcohol ads that run in publication with a 15% or more youth readership to appear only in black-and-white text. There are already signs that brewers and Madison Avenue are worried about the threat of regulation of beer ads. No. 1 brewer Anheuser-Busch revealed last month that it quietly pulled all its beer advertising from MTV, saying it hoped to ``ensure that our intent is not misperceived in today's climate.'' The Madison Avenue's main trade group, the American Association of Advertising Agencies, recently abandoned its longtime stand against restrictions on ads for products like alcohol and cigarettes. It proposed setting up a new self-regulation committee, warning that the industry otherwise faces a government crackdown on ads for beer and other adult products. But setting reliable guidelines for such ads remains tricky. TV executives argue that Nielsen ratings aren't reliable measures of kid viewership--even though the ratings are the TV industry's gold standard for gauging the cost of ad time. Says John Popkowski, executive vice president in charge of ad sales at MTV Networks: ``If you pick one show on an isolated night you might find one that's an aberration statistically,'' since cable channels' viewership is sometimes relatively small. On the E! Channel, for instance, Miller Brewing ran a Foster's ad on Sept. 2, just before 7:30 p.m., during the show ``Melrose Place.'' That night, 41% of the show's audience was under 21, according to Nielsen. But David T. Cassaro, senior vice president in charge of ad sales for E! Entertainment Television, says that from July 1 to Sept. 29 between 7 p.m. and 8 p.m., only about 28% of E! Entertainment's audience was under 21. Overall, Mr. Cassaro adds, only 19% of E! Entertainment's total audience isn't old enough to drink. ``With networks like BET the numbers are so small that they jump all over the place,'' adds John Goldman, a spokesman for Adolph Coors. ``You take as much care as you can but the programming changes often.'' Mr. Goldman says that in the third quarter, the over-21 audience reached by BET between 7 p.m. and 8 p.m. ranged from 80% to 43%. Mr. Goldman adds that Coors doesn't buy MTV as a matter of company policy. ``We want to avoid any misperception that we're aiming at an underage audience.'' Mr. BYRD. Mr. President, looking at another chart to my left, this chart demonstrates competitive media reporting estimates that the alcoholic beverage industry spent more than $1 billion on alcohol advertising in 1995. In contrast, in 1995, the Federal investment in the National Institute on Alcohol Abuse and Alcoholism was a mere $189.8 million for alcohol research. Does the industry expect us to believe that it would spend this huge amount of money--$1.1 billion--if it were not getting something for that money? Some may argue that this legislation would adversely affect the advertising industry by forcing producers of alcoholic beverages to eliminate their advertising expenditure. Poppycock. I do not believe that this would be the case. Alcoholic beverage producers spend large amounts of money to advertise their products because it encourages people to consume their product and it, therefore, increases sales. Eliminating the advertising deduction will not eliminate the fundamental business practice. By making these advertisements less profitable, this amendment may reduce the overall amount of alcohol advertising in our society. However, let there be no doubt that the alcohol ads will keep on running. You [[Page S6445]] can bet your bottom dollar on that. They will. The difference, however, will be that the American taxpayer will no longer be subsidizing this activity and that the money will go, instead, to getting the other side of the alcohol story out. That is what we need to start doing. We need to start now getting the other side of the alcohol story out. It is perhaps not the most popular thing politically to attempt to do here, but it needs to be done. This amendment is all the more necessary because, last year, the Distilled Spirits Council of the United States decided to reject its self-imposed ban on advertising hard liquor on television and radio. I decried this decision by the Distilled Spirits Council because it is a step backward at a time when our Nation is working to curb alcohol abuse. Now hard liquor advertisements will be flowing over the airwaves. This is not the direction in which our Nation should be moving. According to the Joint Committee on Taxation, the elimination of the tax deduction would result in $2.9 billion in savings over 5 years. My amendment targets the savings from the elimination of the disallowance to programs to prevent alcohol abuse among our Nation's young people and to educate children about alcohol. The Substance Abuse and Mental Health Services Administration would be given increased funds to supplement programs to prevent the use of alcohol among young people and to fund a media campaign designed to counteract the constant bombardment to which our children are subjected daily by alcohol advertisements. It is important to give our children information about the risks associated with the consumption of alcohol. We should not sit idly by and leave unchallenged the messages of alcoholic beverage advertisements that only good things happen to those who drink alcohol. This amendment will also direct funding to the Centers for Disease Control and Prevention to carry out a comprehensive strategy to prevent alcohol-related disease and disability. The CDC would be given authority to enhance and expand fetal alcohol syndrome prevention activities throughout the Nation. According to the NIAAA, fetal alcohol syndrome is estimated to affect from one to three children out of every 1,000 live births. To address the distressing problem of alcohol-impaired driving, the National Highway Traffic Safety Administration's alcohol-impaired driving incentive grant program, previously known as section 410, would receive additional funding. Funding is also made available to NTSA to launch a media campaign about the perils of driving under the influence. The Indian Health Service will receive funding for its alcohol abuse programs to address the issue of alcohol abuse, which has such a devastating effect on the first Americans. I don't refer to them as native Americans. I don't refer to them as native Americans. I am a native American. If I am not a native American, of what country am I a native? I refer to them as the original Americans, or the first Americans. The harm that alcoholic beverages cause our Nation is not a second- rate hangover, but a serious affliction that kills more than 100,000 people each year. By adopting this amendment, we would be making a positive effort to improve the health of our Nation, particularly of our children, and to send a sober message to those who are capitalizing on profits generated by recklessly advertising alcoholic beverages through far-reaching and seductive means, such as television. We should act in the best interests of the American people and announce ``last call'' to those who have been receiving tax breaks for peddling booze, take a step in the right direction and begin to repair some of the damage brought by alcohol in this country. Let us begin by putting a cork in the tax loophole that has left American taxpayers picking up the tab for the alcohol industry. Now, Mr. President, I am very well aware that a point of order will be made, or can be made. I am well aware of that. But I think the debate has to start at some point. I think that point is now. We hear a great deal about tobacco and we hear a great deal about children, about children's health. I hope those who support those programs and talk much about them would support this effort. We are talking here about children's health. We are talking here about something that kills 100,000 people every year. I am not seeking to ban alcohol. I am not seeking to regulate alcohol. I am simply seeking to end the subsidization by the taxpayers of this country of alcohol. Think about it. Think about it on your way home tonight as you drive out the George Washington Parkway and see someone in front of you wobbling from one side of the road to the other. Think again. Suppose your wife is up at Tyson's Corner getting ready to drive home with the children and that same fellow who was in front of your car wobbling may kill your wife and your children. So let's start talking about it. Let's start airing the subject here. Let's stop putting it behind the curtain, putting it under the rug, saying it is taboo. It is not. It is not taboo. Think about our children, our grandchildren. This is the product that kills other people. Tobacco may kill me. Tobacco may kill the individual who smokes it. But alcohol may not kill the person who imbibes; it may kill the innocent--the driver in the other car. So I hope that Senators will support my amendment. As I say, I am sure that there is a process or a motion available, but I am accustomed to those things. I say let the Senate work its will. I yield the floor. Mr. ROTH addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Mr. ROTH. I yield 5 minutes to the distinguished Senator from Kentucky. The PRESIDING OFFICER. The Senator from Kentucky is recognized. Mr. McCONNELL. Mr. President, I thank the chairman of the Finance Committee for yielding me a few moments. I listened very carefully to my good friend and colleague from West Virginia and to his observations about the dangers of drinking and driving, with which I completely concur. Of course, representing Kentucky, as my friend from West Virginia knows, not only do we have 60,000 tobacco growers, which is, of course, the subject of a number of amendments that may come on this bill; we are also the home of bourbon. If this kind of whiskey is not made in Kentucky, it cannot be called bourbon. Let me suggest that there are no industries--and I checked with the Finance Committee staff--that have been singled out by law and, as a result of being singled out, are not allowed to deduct their expenses for advertising. So this would be a first. To begin with, as a matter of tax policy, certain kinds of legal industries are not allowed to deduct their advertising, and others are. There is also--while we are thinking of both cigarettes and alcohol-- another important distinction. There is no argument that misuse of alcohol is a problem in this country. As a Senator from a tobacco- producing State, I never make the argument that smoking cigarettes is good for you. Obviously, it isn't. But there are many in the medical profession who would say that the consumption of alcohol, if used properly--properly--is actually good for you. I am not a physician, I can't make that argument, but there is a growing argument being made by many in the medical community that a certain amount of alcohol, properly used, is actually good for you health, not bad for your health. So we have here a legal product, Mr. President, which, arguably, if properly used, might actually be good for you, which the distinguished Senator from West Virginia, I gather, is saying when misused, of course, is clearly a terrible thing and a disaster not only for the person misusing it, but for others who may be affected by that, and that because a product may be misused, the Government should step in and say: Your advertising is not allowed. Regardless of how you may feel about this---- Mr. BYRD. Will the Senator yield? Mr. McCONNELL. Yes. Mr. BYRD. For a correction only. My amendment does not say your advertising will not be allowed. I am not saying that at all. The alcohol industry may continue to advertise. I am just saying, let's stop the subsidization of that advertising, the subsidization by the taxpayers. Mr. McCONNELL. I thank the Senator. I think I did understand his [[Page S6446]] amendment to disallow a deductibility for advertising, which would make this the only industry of which the Finance Committee is aware where such deductibility would be disallowed. Aside from my home State and the product, which, if properly used, might actually be good for you, I wonder if my friend from West Virginia doesn't share my concern that once we go in this direction, we might find other activities that some may find offensive being subject to the same kinds of efforts to disallow deductibility for certain kinds of business expenses. I think, for example, West Virginia and Kentucky used to trade back and forth in terms of coal production. One year West Virginia would be first; the next year Kentucky would be the first. Alas, neither are first anymore. Wyoming is. But there are many Americans who think, as a result of the burning of coal, that the area is polluted and that, as a result of that, people contract lung problems. In fact, there is an initiative by the Clinton administration just announced this week which the Senator from West Virginia and I both have serious reservations about designed to cut down on air pollution--so the argument goes--so there will be less lung disease. I wonder, if we go down this path of trying to pick out which industries' deductions for certain kinds of business expenses are to be allowed or not allowed based upon our judgment about what is harmful to the public, whether or not somebody might come in and say, ``Well, we shouldn't allow production costs associated with the mining of coal to be deductible because, after all, the burning of coal leads to the pollution of the air, which then leads to lung disease, which then leads to death.'' I just am concerned that this is a step in the wrong direction. I understand fully the concerns of the Senator from West Virginia, and I share them. I think the use of alcohol leads to a great deal of tragedy. But I hope we will not single out this legal industry producing a product, which, if properly used, many people in the medical field feel is actually good for you, for this kind of selective treatment on deductibility. Finally, let me say that I am not an expert on the budget deal. But it is clear that there is a lot of momentum in this body to hold the deal together, and this is clearly not part of the budget deal. I hope that the proposal will not be approved, in all due respect to my good friend and colleague from West Virginia. I hope this would not become part of the measure before us. I yield the floor. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, may I say that I fully understand the economic impact of the tobacco industry on the State of the distinguished Senator who has just spoken. West Virginia grows good tobacco crops as well, and the income from those tobacco crops certainly impact upon many families in many counties of West Virginia. We are talking about here, though, a product that results in the maiming and in the killing of people--innocent men, women, and children. The distinguished Senator from Kentucky mentions the carbon dioxide emissions and other greenhouse gas emissions and possible implications of those emissions on health. People who breathe that air may well, indeed, suffer an adverse impact on their health. But they don't go out and maim. They don't go out and drive an automobile, lose their proper judgment, and end up killing innocent people. They do not go home and abuse their spouses if they smoke cigarettes or if they breathe air blown from them. They don't go home and abuse their children. They don't go home and assault and batter the other members of their family. I am talking about a product that we all know--it is not just this Senator's opinion. We all know when we read the daily newspapers about the effects of drinking and driving. We all read the newspapers in the spring following the graduation exercises at high schools, and we read, with horror, the stories of a few young people who get into an automobile and wrap that automobile around a telephone pole and they are all killed or maimed--maimed for life. That is what we are talking about. I am not talking about singling out an industry. I am talking about an industry that creates a product that is hurtful--not just hurtful to the person who uses it, but endangers, as I said already, the lives of others. We all know that. But I do appreciate the fact that the Senator is from Kentucky, and I respect him for that, and I respect his viewpoint and count him and his fellow Kentuckians as good neighbors. I yield the floor. Mr. ROTH. How much time would the Senator from Montana like? Mr. BURNS. Probably no more than 5 minutes. Mr. ROTH. I yield 5 minutes to the Senator from Montana. The PRESIDING OFFICER. The Senator from Montana. Mr. BURNS. I thank my friend from Delaware. Mr. President, no one on this floor makes his case with such passion as my friend from West Virginia. We have a couple of things in common that we will not go into here. But I also know from where he comes. And when you start talking about this issue of singling out something, then we have to look at probably the real facts. First, there is the presumption in this amendment that somehow the advertising is evil or bad, or that it wreaks health problems on the American people. There is no question in anybody's mind across this land that the abuse of alcohol is one of our greatest problems--no doubt. Yet, there is no scientific evidence that would even suggest the casual relationship between advertising and abuse. In order to get to the root of the problem of alcoholism and all of the problems that it brings, study after study after study has been made in the relationship of advertising. In fact, during the 1980's, when the advertising for alcohol products was increasing, actual consumption per capita actually was decreasing. So not only does advertising not impact abuse, it doesn't even impact the overall consumption. Singling out a product is not, I don't think, what fair tax law is about. So let's be upfront about it, because I am familiar with the broadcast industry. It has economic impacts on small business. It has economic impacts. And once we start singling out products, do we start talking about red meat, eggs, or sugar? Where do we draw the line? The impact it might have on the national pastime? We could say, ``OK, we don't need it in the broadcasting industry. We can all pay for pay-per- view''--the impact on an industry within itself. And the list goes on and on trying to explain to our constituents why different things happen and cost more, because there is a decrease in advertising support in free television. That also brings us our weather, our farm reports, our news, our emergency conditions. All of these things that are supported by free over-the-air broadcasts will be impacted if this amendment is successful. The industry has taken steps to limit or try to curb the abuse that alcohol has on a person or individual. There is no doubt about it. And in some areas some would say it is even working. I know that all of us want a tax cut. All of us want a balanced budget. But to single out and start limiting an ad tax or deductibility for legal products is not the right approach. It is not the right approach--not on a legal product. So I urge my colleagues to oppose this. It is unwarranted. I think it is unwise. And I am not real sure, it might have some constitutional overtones because advertising is still freedom of speech. It cannot be treated differently than any other form. The Senator from West Virginia makes a point. It is the abuse of the product. The advertising has very little to do with the abuse of the product. Thank you, and I urge the defeat of this amendment. I yield the floor. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, the Senator talks about red meat, eggs, and sugar. The Honorable Senator is my friend. Who ever heard of anybody eating red meat, eggs, and sugar, and getting out in the car and having that car plunge into a tree, weave all across the road, and kill and maim other people? Red meat doesn't cause an individual to drive drunk and get in the car and [[Page S6447]] drive all over the highway. Eggs and sugar don't do that in their form as eggs and sugar, in their natural form. The Senator also, I think, made reference to the Federal Trade Commission in 1985, which found ``no reliable basis to conclude that alcohol advertising significantly affects consumption, let alone abuse.'' Well, let's see what the conclusions are from the effects of the mass media on the use and abuse of alcohol. The National Institute of Alcohol Abuse and Alcoholism, U.S. Department of Health and Human Services, Research Monograph-28, 1995: [The] preponderance of the evidence indicates that alcohol advertising stimulates higher consumption of alcohol by both adults and adolescents . . . It appears to be a contributing factor that increases drinking to a modest degree rather than being a major determinant. (Dr. Charles Adkins, Department of Communications, Michigan State University.) Now I shall quote Dr. Sally Casswell, Alcohol and Public Health Research Unit, School of Medicine, University of Aukland: [T]here is sufficient evidence to say that alcohol advertising is likely to be a contributing factor to overall consumption and other alcohol-related problems in the long term. Now quoting Dr. Joel Grube, Prevention Research Center: [A]lcohol advertising can influence children, particularly their beliefs about alcohol and, indirectly, their intentions to drink as adults. Finally, let me quote Dr. Esther Thorson, School of Journalism, University of Missouri: If research were designed to take account of what the advertiser is trying to do and if it examined the relationship between the specific structure of the message and the individual or group for whom that message is targeted, investigators probably would find ``whopping effects''. Mr. President, I appreciate the views that have been expressed by my friend from Montana and, as I have already indicated, by my friend from Kentucky. I appreciate their views, and I respect their views. Mr. President, I don't think there should be any doubts in the minds of any Senator or any person who is viewing this Chamber via that electronic eye that the drinking of alcohol affects the judgment of people, and that there are many other costs that are not tangible, that cannot be translated into dollars and cents-- the cost of lost productivity, the cost of broken homes, the cost of children abused. And I could go on. I have made my case, and I ask for the yeas and nays on my amendment. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. Mr. BYRD. I yield back the balance of my time. The PRESIDING OFFICER. The Senator from Delaware has the remaining time. Mr. ROTH. Mr. President, I yield back the remainder of my time, and I make the point of order that the pending amendment is not germane to the provisions of the reconciliation measure and I therefore raise a point of order against the amendment under section 305(b)(2) of the Budget Act. Mr. BYRD. Mr. President, I move to waive the point of order and ask for the yeas and nays on my motion. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. The PRESIDING OFFICER. There is an hour equally divided on the motion. Mr. BYRD. Mr. President, I yield back my time. Mr. ROTH. Mr. President, I yield back the balance of my time. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question is on agreeing to the motion to waive. The yeas and nays have been ordered. The clerk will call the roll. The bill clerk called the roll. Mr. McCAIN (when his name was called). Present. Mr. NICKLES. I announce that the Senator from Kansas [Mr. Roberts], is necessarily absent. The PRESIDING OFFICER. Are there any other Senators in the Chamber who desire to vote? The yeas and nays resulted--yeas 12, nays 86, as follows: [Rollcall Vote No. 136 Leg.] YEAS--12 Bumpers Byrd Cleland DeWine Glenn Hatch Helms Kennedy Rockefeller Sarbanes Thurmond Wellstone NAYS--86 Abraham Akaka Allard Ashcroft Baucus Bennett Biden Bingaman Bond Boxer Breaux Brownback Bryan Burns Campbell Chafee Coats Cochran Collins Conrad Coverdell Craig D'Amato Daschle Dodd Domenici Dorgan Durbin Enzi Faircloth Feingold Feinstein Ford Frist Gorton Graham Gramm Grams Grassley Gregg Hagel Harkin Hollings

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REVENUE RECONCILIATION ACT OF 1997


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REVENUE RECONCILIATION ACT OF 1997
(Senate - June 26, 1997)

Text of this article available as: TXT PDF [Pages S6440-S6473] REVENUE RECONCILIATION ACT OF 1997 The Senate continued with the consideration of the bill. Amendment No. 537 Mr. DOMENICI. How much time do I have on the amendment? The PRESIDING OFFICER. Forty-four minutes. Mr. DOMENICI. And the opposition has 44 minutes? The PRESIDING OFFICER. Sixty minutes. Mr. DOMENICI. So we have used 16. Actually, unless Senator Lautenberg has anything further to say, I believe I have stated the case for the Domenici-Lautenberg amendment No. 537. Does Senator Gramm want to offer an amendment to the amendment? Mr. GRAMM. I think Senator Biden is going to offer an amendment first, and after his amendment is disposed of, then I will have an amendment, as will several other people. Mr. BIDEN addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Mr. BIDEN. Madam President, I wonder if the Democratic manager would yield me time off the bill. Mr. DOMENICI. The Senator has time on his amendment. Mr. BIDEN. Parliamentary inquiry. Can I get time in my own right? Mr. DOMENICI. I yield back my time. The PRESIDING OFFICER. The time is controlled by Senator Domenici and Senator Roth. Mr. LAUTENBERG. I yield back my time. The PRESIDING OFFICER. Is all time yielded back? Mr. DOMENICI. We yielded back our time. Mr. BIDEN addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Amendment No. 539 to Amendment No. 537 Mr. BIDEN. Madam President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report. The assistant legislative clerk read as follows: The Senator from Delaware [Mr. Biden], for himself and Mr. Gramm, proposes an amendment numbered 539 to amendment No. 537. Mr. BIDEN. Madam President, I ask that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: On page 43 of the amendment, strike lines 14 through 21 and insert the following: ``(5) with respect to fiscal year 2001-- ``(A) for the discretionary category: $537,677,000,000 in new budget authority and $558,460,000,000 in outlays; and ``(B) for the violent crime reduction category: $4,355,000,000 in new budget authority and $5,936,000,000 in outlays; ``(6) with respect to fiscal year 2002-- ``(A) for the discretionary category: $546,619,000,000 in new budget authority and $556,314,000,000 in outlays; and ``(B) for the violent crime reduction category: $4,455,000,000 in new budget authority and $4,485,000,000 in outlays; as adjusted in strict conformance with subsection (b).''. (2) Transfers into the fund.--On the first day of the following fiscal years, the following amounts shall be transferred from the general fund to the Violent Crime Reduction Trust Fund-- (A) for fiscal year 2001, $4,355,000,000; and (B) for fiscal year 2002, $4,455,000,000. Mr. BUMPERS. Will the Senator from Delaware yield for an inquiry for a moment? Mr. BIDEN. I would be happy to. Mr. BUMPERS. Could the managers of this bill tell us how many second- degree amendments there are to this process? I assume we are on the second-degree amendment process; is that correct? The PRESIDING OFFICER. That is correct. Mr. BUMPERS. Could the managers tell us how many second-degree amendments they anticipate on this? Mr. DOMENICI. I do not know. Mr. GRAMM. I believe there will be four. Senator Biden will offer one for himself. Once that is adopted, I will offer a second-degree amendment. And [[Page S6441]] then we have two other Senators who want to offer second-degree amendments, so they will be seriatim. Mr. BUMPERS. Then there are five, because I have one also. I am just wondering if we could get some kind of sequence so we know how they are going to be offered so we do not spend the rest of our lives waiting. Mr. DOMENICI. I say to the Senator, you can be assured there will be four ahead of you, if you would like to be fifth. Mr. BUMPERS. I thank the Senator for his courtesy. Mr. GRAMM. Why don't you do yours last? Mr. DOMENICI. That is what I said. Mr. BIDEN. Madam President, the second-degree amendment I have at the desk is very simple and straightforward. The Senator from New Mexico is introducing a budget process amendment, and what the amendment of Senator Gramm and myself does is, quite frankly, it merely extends the crime law trust fund for the extension of this agreement. I am told by the staffs of the majority and minority that in the budget process agreement that was agreed to with the administration, there is a line on page 90 of the concurrent resolution of the budget fiscal year 1998. On page 90, it says, ``Retain current law on separate crime caps at levels shown in the agreement tables.'' All we are doing here is extending the crime law trust fund. We are not making judgments on how that will be disbursed within the trust fund. We are just extending the trust fund to the extent of this agreement. And, Madam President, as I offer this amendment, we are maintaining a commitment to one of the few specific ways the reconciliation package can, by virtue of the type of legislation it is, maintain a commitment. The commitment we made was to fight violent crime. And, ironically, it is working. It is working. And so for us now to extend the violent crime trust fund, let it expire 2 years before this budget agreement expires, means we are going to be back at it again in the year 2000 or before, fighting over something we now know works. So I realize we can take a long time debating this. But the bottom line is this: We are not suggesting, as the Senator from New Mexico knows, how this trust fund money within the caps will be disbursed; merely that we have the continuation of the trust fund as long as the budget agreement to the year 2002. Of all the priorities addressed in this budget package, I believe that none is more important than continuing our fight against violent crime and violence against women. The amendment I am offering, along with Senator Gramm seeks to maintain this commitment in one of the few specific ways this reconciliation package can--by virtue of the type of legislation this is--maintain this commitment. That is by extending the violent crime control trust fund will continue through the end of this budget resolution, fiscal year 2002. Senator Byrd, more than anyone, deserves credit for the crime law trust fund. Senator Byrd worked to develop an idea that was simple as it was profound--as he called on us to use the savings from the reductions in the Federal work force of 272,000 employees to fund one of the Nation's most urgent priorities: fighting the scourge of violent crime. Senator Gramm was also one of the very first to call on the Senate to ``put our money where our mouth was.'' Too often, this Senate has voted to send significant aid to State and local law enforcement--but, when it came time to write the check, we did not find nearly the dollars we promised. Working together in 1993, Senator Byrd, myself, Senator Gramm, and other Senators passed the violent crime control trust fund in the Senate. And, in 1994, it became law in the Biden crime law. Since then, the dollars from the crime law trust fund have: Helped add more than 60,000 community police officers to our streets; helped shelter more than 80,000 battered women and their children; focussed law enforcement, prosecutors, and victims service providers on providing immediate help to women victimized by someone who pretends to love them; forced tens of thousands of drug offenders into drug testing and treatment programs, instead of continuing to allow them to remain free on probation with no supervision and no accountability; constructed thousands of prison cells for violent criminals; and brought unprecedented resources to defending our Southwest border-- putting us on the path to literally double the number of Federal border agents over just a 5-year period. The results of this effort are already taking hold: According to the FBI's national crime statistics, violent crime is down and down significantly--leaving our nation with its lowest murder rate since 1971; the lowest violent crime total since 1990; and the lowest murder rate for wives, ex-wives, and girlfriends at the hands of their intimates to an 18-year low. In short, we have proven able to do what few thought possible--by being smart, keeping our focus, and putting our ``money where our mouths'' are--we have actually cut violent crime. Today, our challenge is to keep our focus and to stay vigilant against violent crime. Today, the Biden-Byrd-Gramm amendment before the Senate offers one modest step toward meeting that challenge: By assuring that the commitment to fighting crime and violence against women will continue for the full duration of this budget resolution. By assuring that the violent crime control trust fund will continue-- in its current form which provides additional Federal assistance without adding 1 cent to the deficit--through 2002. The Biden-Gramm amendment offers a few very simple choices: Stand up for cops--or don't; stand up for the fight against violence against women--or don't; and stand up for increased border enforcement--or don't. Every Member of this Senate is against violence crime--we way that in speech after speech. Now, I urge all my colleagues to back up with words with the only thing that we can actually do for the cop walking the beat, the battered woman, the victim of crime--provide the dollars that help give them the tools to fight violent criminals, standup to their abuser, and restore at least some small piece of the dignity taken from them at the hands of a violent criminal. Let us be very clear of the stakes here--frankly, if we do not continue the trust fund, we will not be able to continue such proven, valuable efforts as the violence against women law. Nothing we can do today can guarantee that we, in fact, will continue the Violence Against Women Act when the law expires in the year 2000. But, mark my words, if the trust fund ends, the efforts to provide shelter, help victims, and get tough on the abusers and barterers will wither on the vine. Passing the amendment I offer today will send a clear, unambiguous message that the trust fund should continue and with it, the historic effort undertaken by the Violence Against Women Act that says by word, deed, and dollar that the Federal Government stands with women and against the misguided notion that ``domestic'' violence is a man's ``right'' and ``not really a crime.'' I urge my colleagues to support the Biden-Gramm amendment. At the appropriate time--and I am not quite sure yet when is appropriate--I will ask for the yeas and nays on this. But make no mistake about it, what we are voting on here is whether or not we are going to commit now to the extension of the trust fund, the violent crime trust fund, for the extent of this agreement. That is all this does. That is everything it does, but that is all it does. Mr. DOMENICI addressed the Chair. The PRESIDING OFFICER (Mr. Bennett). The Senator from New Mexico. Amendment No. 537, Withdrawn Mr. DOMENICI. Mr. President, I withdraw my amendment. The PRESIDING OFFICER. The amendment is withdrawn. The amendment (No. 537) was withdrawn. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. Under the previous order, the Senator from West Virginia is recognized. [[Page S6442]] Amendment No. 540 (Purpose: To eliminate tax deductions for advertising and promotion expenditures relating to alcoholic beverages and to increase funding for programs that educate and prevent the abuse of alcohol among our Nation's youth) Mr. BYRD. Mr. President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report. The assistant legislative clerk read as follows: The Senator from West Virginia [Mr. Byrd] proposes an amendment numbered 540. Mr. BYRD. Mr. President, I ask unanimous consent that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the end of the bill, add the following: TITLE --ALCOHOL ADVERTISING RESPONSIBILITY ACT SEC. 01. SHORT TITLE. This title may be cited as the ``Alcohol Advertising Responsibility Act''. SEC. 02. FINDINGS AND PURPOSES. (a) Findings.--Congress finds that-- (1) alcohol is used by more Americans than any other drug; (2) it is estimated that the costs to society from alcoholism and alcohol abuse were approximately $100,000,000,000 in 1990 alone. (3) in 1995, the alcoholic beverage industry spent $1,040,300,000 on advertising, while the National Institute for Alcohol Abuse and Alcoholism was funded at only $181,445,000; (4) more than 100,000 deaths each year in the United States result from alcohol-related causes; (5) 41.3 percent of all traffic facilities in 1995, or 17,274 deaths, were alcohol related; (6) in addition to severe health consequences, alcohol misuse is involved in approximately 30 percent of all suicides, 50 percent of homicides, 68 percent of manslaughter cases, 52 percent of rapes and other sexual assaults, 48 percent of robberies, 62 percent of assaults, and 49 percent of all other violent crimes; (7) approximately 30 percent of all accidental deaths are attributable to alcohol abuse; (8) alcohol advertising may influence children's perceptions toward an inclinations to consume alcoholic beverages; (9) 26 percent of eighth graders, 40 percent of tenth graders, and 51 percent of twelfth graders report having used alcohol in the past month; and (10) college presidents nationwide view alcohol abuse as their paramount campus-life problem. (b) Purposes.--The purposes of this title are-- (1) to repeal the existing tax subsidization for expenses incurred to promote the consumption of alcoholic beverages; (2) to reduce the amount of alcohol advertising to which our Nation's youth are exposed; and (3) to increase funding for those programs that educate and prevent the abuse of alcohol among our Nation's youth. SEC. 03. DISALLOWANCE OF DEDUCTION FOR ADVERTISING AND PROMOTION EXPENSES RELATING TO ALCOHOLIC BEVERAGES. (a) In General.--Part IX of subchapter B of chapter 1 (relating to items not deductible) is amended by adding at the end of the following: SEC. 280I. ADVERTISING AND PROMOTION EXPENDITURES RELATING TO ALCOHOLIC BEVERAGES. ``(a) In General.--No deduction otherwise allowable under this chapter shall be allowed for any amount paid or incurred to advertise or promote by any means any alcoholic beverage. ``(b) Alcoholic Beverage.--For purposes of this section, the term `alcoholic beverage' means any item which is subject to tax under subpart A, C, or D of part I of subchapter A of chapter 51 (relating to taxes on distilled spirits, wines, and beer).''. (b) Conforming Amendment.--The table of sections for part IX of subchapter B of chapter 1 is amended by adding at the end the following: ``Sec. 280I. Advertising and promotion expenditures relating to alcoholic beverages.''. (c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31 of the year in which this Act is enacted. SEC. 04. ALCOHOL ABUSE EDUCATION AND PREVENTION AMONG YOUTH. (a) In General.--Subject to subsection (c), there shall be transferred, from funds in the Treasury not otherwise appropriated, to the entities described in subsection (b) amounts to the extent specified under subsection (b). (b) Education and Prevention Programs.-- (1) Substance abuse and mental health services administration.--The amounts specified in this subsection shall be: (A) In general.--With respect to the Substance Abuse and Mental Health Services Administration, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to supplement substance abuse prevention activities authorized under section 501 of the Public Health Service Act (42 U.S.C. 290aa). (B) Use of funds.--Amounts provided to the Substance Abuse and Mental Health Services Administration under subparagraph (A) shall be used directly or through grants and cooperative agreements to carry out activities to prevent the use of alcohol among youth, including the development and distribution of public service announcements. (2) Centers for disease control and prevention.-- (A) In general.--With respect to the Centers for Disease Control and Prevention, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to carry out a comprehensive strategy to prevent alcohol-related disease and disability. (A) Required uses.--In carrying out the comprehensive strategy under subparagraph (A), the Centers for Disease Control and Prevention shall-- (i) enhance and expand State-based and national surveillance activities to monitor the scope of alcohol use among the youth of the United States; (ii) enhance comprehensive school-based health programs that focus on alcohol use prevention strategies; (iii) develop and distribute commercial advertising to prevent alcohol abuse among youth; and (iv) enhance and expand Fetal Alcohol Syndrome prevention activities throughout the United States. (3) National highway traffic safety administration.--With respect to the National Highway Traffic Safety Administration, and in addition to any funds authorized from the Highway Trust Fund, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to carry out programs under sections 402, 403, and 410 of title 23, United States Code, and to develop and implement a paid media campaign targeting high-risk youth populations to improve the balance of media messages related to alcohol impaired driving. (4) Indian health service.--With respect to the Indian Health Service, $40,000,000 for fiscal year 1998, $60,000,000 for fiscal year 1999, $60,000,000 for fiscal year 2000, $70,000,000 for fiscal year 2001, and $70,000,000 for fiscal year 2002, to supplement the programs that such Service is authorized to carry out pursuant to titles II and III of the Public Health Service Act (42 U.S.C. 202 et seq., 241 et seq.). (c) Authority to Transfer Funds.--The Committee on Appropriations of the House of Representatives and the Committee on appropriations of the Senate, acting through appropriations Acts, may transfer the amount specified under subsection (b) in each fiscal year among the entities referred to in such subsection. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, would the Chair indulge me momentarily? I protect my right to the floor. The PRESIDING OFFICER. The Senator from West Virginia will be protected in his right to the floor. Mr. DURBIN addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia has the floor. Mr. BYRD. I thank the Chair. Mr. President, last Friday negotiators from the tobacco industry and State attorneys general announced the landmark agreement addressing the impact of tobacco use on our Nation, particularly our young people. Although this important deal will likely face many obstacles and has a long way to go toward implementation, it is an unprecedented first step toward curbing tobacco use and paying for the harm caused by that use. This process has caused our Nation to focus on an important public health danger and is an important step in working toward a meaningful solution. While I applaud the action being taken to address the pernicious health effects of tobacco, I am concerned that its evil twin, which also has a staggering impact on our Nation, is to a large measure being ignored. Mr. President, the cost of alcohol abuse to our country is staggering. According to the National Institute on Alcohol Abuse and Alcoholism of the National Institutes of Health, alcohol is used by more Americans than any other drug. And the results are devastating. The flood tide of alcohol causes more than 100,000 deaths each year in the United States. Alcohol abuse and alcoholism imposes approximately $100 billion in cost each year on society. Links have been found between alcohol abuse and cirrhosis of the liver, as well as other harmful health conditions. Alcohol is a contributing factor in assaults, murders and other violent crimes, including fatal drinking and driving accidents. At the bottom of every empty bottle is another family in crisis, another career being destroyed, or another dream washed away. [[Page S6443]] The amendment I am offering today would eliminate the tax deduction for alcoholic beverage advertising expenditures. In addition, it would increase funding for a number of programs that educate and prevent the abuse of alcohol among our Nation's youth. What should be of the utmost of our concern in our Nation is the impact of alcohol on our children and our grandchildren. I am introducing this amendment on behalf of the children who died because they were drinking and driving, and on behalf of the millions of children who are drinking right now without the full appreciation of what they are doing to themselves and what they could potentially do to others. Alcohol is the drug of choice among teenagers. Mr. President, more specifically, and looking at this chart compiled by the National Center on Addiction and Substance Abuse, the use of alcohol by our Nation's youth is highlighted among different age groups, including children between the ages of 12 and 17. Among children between the ages of 16 and 17, 69.3 percent have at one point in their lifetimes experimented with alcohol. Clearly, as made evident by these alarming statistics, alcohol is the leading problem among teenagers--not marijuana, not cocaine. In the last month, approximately 8 percent of the Nation's eighth graders have been drunk--have been drunk. We are talking about eighth graders, 13 years old--13-year-olds. I never heard of such a thing when I was in my teens, as a young man, or in my middle age. We are talking about eighth graders, 13-year-olds. Every State has a law prohibiting the sale of alcohol to individuals under the age of 21. How is it then that two out of every three teenagers who drink report that they can buy their own alcoholic beverages? The youth of this country, who at the delicate age of 15 should be enriching their minds with schoolwork, improving their bodies with exercise, and discovering the wonders of life through God and family values, instead are experimenting and endangering themselves with booze. Junior and senior high school students drink 35 percent of all wine coolers and consume 1.1 billion cans of beer a year. I know, because I pick some of them up off my lawn--I am talking about the beer cans, not the young people. I will repeat what is common knowledge to us all: Every State has a law prohibiting the sale of alcohol to individuals under the age of 21. Alcohol is a factor in the three leading causes of death for 15- to 24- year-olds--the three leading causes--accidents, homicides, suicide. In approximately 50 percent to 60 percent of youth suicides, alcohol is involved. Links have been shown between alcohol use and teen pregnancies and sexually transmitted diseases. Eighty percent of the teenagers do not know that a can of beer has the same amount of alcohol as a shot of whiskey or a glass of wine. By the time they are in college, 40 percent have binged on alcohol during the previous 2 weeks. In 1994, 8.9 percent--almost 95,000--of the clients admitted to alcohol treatment programs that received at least part of their funding from the State were under the age of 21, including over 1,000 under the age of 12. And 31.9 percent of youth under the age of 18 in long-term State-operated juvenile institutions were under the influence of alcohol at the time of their arrest. While our Nation's education system needs repair, it seems that our society has been successful in teaching these kids something. The problem is that what we have taught them is deadly. Drinking impairs one's judgment. We all know that. Nobody will dispute that. Alcohol mixed with teenage driving is a lethal, a lethal combination. We read about it all the time in the Washington Post, the Washington Times, and every newspaper in the land. In 1995, there were 1,666 alcohol-related fatalities of children between the ages of 15 and 19. The total number of alcohol-related fatalities that year was 17,274. Mr. President, for many years I have taken the opportunity, when addressing groups of young West Virginians, to warn them about the dangers of alcohol. I supported legislative efforts to discourage people, particularly young people, from drinking any alcohol. For example, 2 years ago I authored an amendment that requires States to pass the zero-tolerance laws that will make it illegal for persons under the age of 21 to drive a motor vehicle if they have a blood alcohol level greater than .02 percent. This legislation not only helps to save lives but it also sends a message to our Nation's youth that drinking and driving is wrong, that it is a violation of the law, and that it will be appropriately punished. Unfortunately and tragically, we all know someone, whether it is a family member or a friend or an acquaintance, whose life has been cut short by a drunk driver. These are senseless losses that are devastating to the families and the friends who are left behind. As if the aforementioned statistics about youth alcohol use and the results of that use are not frightening enough, young people who consume alcohol are more likely to use other drugs. On the chart to my left, Senators will note these statistics, compiled by the National Center on Addiction and Substance Abuse at Columbia University, statistics which show that 37.5 percent of young people who have consumed alcohol have used some other illicit drug, versus only 5 percent of young people who have never consumed alcohol; 26.7 percent of those who have consumed alcohol have tried marijuana, versus 1.2 percent of those who have never consumed alcohol; 5 percent of youths who have partaken of alcohol have tried cocaine, while only 0.1 of 1 percent of those who do not drink have used cocaine. So it is not a question that is even debatable that youths who drink alcohol are more likely to use other drugs. Mr. President, as the aforementioned facts and figures indicate, alcohol exacts a tremendous cost on our society. These costs are not always clear-cut. For example, consider the costs of the lost productivity of a person showing up at work on a Monday morning with a hangover and inadequately performing his or her job, perhaps making a mistake that results in injury. How many of us would like to ride in the automobile that was made on such a Monday morning? How many of us would like to fly on the airplane whose maintenance man or woman, whose mechanic was on a binge the previous day? While there is no way to accurately gauge the enormous costs that alcohol exacts upon our society, there can be no doubt that the pleasures of alcohol consumption exacts a considerable price on our Nation. The purpose of the amendment that I introduce today is simple. My proposal would simply tell all producers of alcoholic beverages that they can no longer deduct the costs of their advertising expenditures on those products from their Federal income tax liability. While advertising is generally deductible as a legitimate business expense, I believe there exists a moral, legitimate reason to create an exception for producers of alcoholic beverages whose products exact such considerable costs on our society. My proposal would not make illegal any advertising of alcoholic beverages. It does not say that any advertising of alcoholic beverages is unconstitutional. It does not attempt to ban such advertisements, nor would it create any additional Federal bureaucracy to regulate alcohol products. Rather, it would simply end the American taxpayers' subsidization of alcohol advertising by amending the Internal Revenue Code of 1986 to include a disallowance of any deduction for any amount paid or incurred to advertise or promote by any means any alcoholic beverage. This is not a sin tax. It is, rather, an end to the sin subsidy that has left American taxpayers footing the bill for both alcohol advertising and the high health care costs inflicted on society by alcohol consumption. Now there may be those who argue that it is wrong to single out alcohol advertising expenses. I counter that with the question: What other product, with the possible exception of tobacco, costs society $100 billion each year? What other product results in more than 100,000 deaths each year in the United States? The statistics are indeed staggering. Mr. President, in these complicated times, the innocence of youth, the innocence of youth is dashed away at an early age by the irreverent messages spewing from the television set. Profanity and violence on television programming are interrupted only by the aggressive commercials seeking to influence viewers in the name of profit. [[Page S6444]] Our impressionable youth, pressured by the self-indulgent motives of revenue-hungry corporations are bombarded by countless images glorifying an unrealistic view of reality, often insincerely portraying alcoholic beverages as an ingredient for ideal lifestyles. Our children are besieged with the message that if you drink you will attract beautiful women, if you drink you will be popular, if you drink you will excel at sports. Are these the images of reality or do they leave out something important? Do they leave out some important facts about alcohol consumption? What about the negative and all too prevalent results of alcohol consumption--the hangovers that result in lost productivity, the tragic deaths, the injuries caused by a drunk behind the wheel, the hospital visits for alcohol poisoning, the horrible effects of cirrhosis of the liver and the families torn apart by alcohol abuse. The industry indicates that their advertisements do not target young people, although this is debatable. A January Wall Street Journal article, detailing a competitive media reporting survey commissioned by the Journal, found that beer advertisements are often aired during programs that are watched by large numbers of adolescents. The findings of this survey are extremely disturbing. In one example, referenced in the article, a beer ad ran during the airing of a popular cartoon show on the MTV station of which 69 percent of the audience was comprised of children under the age of 21. Mr. President, I ask unanimous consent to have printed in the Record the Wall Street Journal article. There being no objection, the article was ordered to be printed in the Record, as follows: [From the Wall Street Journal] Are Beer Ads on Beavis and Butt-Head Aimed at Kids? (By Sally Beatty) When a commercial for Schlitz Malt Liquor appeared last year on MTV during ``My So-Called Life,'' a show about teenage girls, beer maker Stroh called the airing an aberration. Even as the ad helped launch a Federal Trade Commission probe into alcohol advertising to children, Stroh said it had a longtime policy of aiming ads only at adults of legal drinking age; MTV said the ad ran by mistake because of a last-minute programming switch. In fact, the commercial was hardly an isolated event. Despite the beer industry's insistence that it doesn't target kids, its commercials regularly wash over underage viewers. A survey by Competitive Media Reporting for the Wall Street Journal showed that during one arbitrarily chosen week--the first week of September--youths under the drinking age made up the majority of the audience for beer commercials on several occasions. For instance, Molson beer was advertised during a 10 p.m. episode of ``Beavis & Butt-Head,'' the popular MTV cartoon series about two obnoxious teens. Fully 69% of all the episode's viewers that night were under 21--the legal drinking age in all 50 states--according to Nielsen Media Research's widely used ratings data. Molson, which is marketed in the U.S. by Philip Morris's Miller Brewing, also advertised on MTV's racy youth dating show, ``Singled Out,'' just after 7 p.m., when 52% of the audience was under 21. And Stroh advertised Schlitz Malt Liquor during MTV's prime-time music-video show at 8:30 p.m., when 56% of the audience was under 21. That same week, Adolph Coors ran two ads on the Black Entertainment Television channel after 8 p.m., when 65% of the audience wasn't old enough to drink. Also that week, Anheuser-Busch ran an ad for its Budweiser brand just after 8:30 p.m. on BET during music-video programming, when 70% of the audience was under 21. These commercials look like clear violations of the chief beer industry trade group's own guidelines for TV ads. ``Beer advertising . . . should not be placed in magazines, newspapers, television programs, radio programs or other media where most of the audience is reasonably expected to be below the legal purchase age,'' states the Beer Institute's published ``advertising and marketing guidelines.'' The industry is pointing to these guidelines in an aggressive lobbying effort against proposed new federal restrictions of beer and liquor advertising. The number of ads reaching kids is ``very troubling,'' says Jodie Bernstein, director of the FTC's bureau of consumer protection and a top official involved with its ongoing probe into alcohol marketing to kids on television. Her bureau enforces laws banning unfair or deceptive ad practices, including a statute that says it's unfair to aim ads at people who aren't legally able to buy the products. A company that runs afoul of such laws can face fines, orders to pull ads and regular FTC screening of future advertising. Ms. Bernstein won't comment on the FTC's probe. However, she says that in any investigation, the commission would look first at whether alcohol advertisers are ``following their own guidelines.'' For example, ``Is it OK if [the percentage of underage viewers] gets up to 70% once in a while? I don't think it's OK.'' And she says the commission would ``never act on just one episode or one mistake--we would act on the pattern.'' Brewers and TV executives insist that it doesn't make sense to evaluate beer ads on a single night's audience. ``Any attempt to analyze the beer industry's media-buying practices by examining only selected broadcast media buys during a one- week period is misleading and simplistic,'' said Miller Brewing in a statement responding to questions about the survey. Miller added that more than 75 percent of the broadcast audience reached by the programming it buys is over 21. At Stroh, officials argue that there's a difference between putting ads in front of kids and targeting them explicitly. ``We understand that when an ad is run it's going to be seen by some people who are under 21 years of age, whether it's a billboard, in a magazine or on TV,'' says Stroh general counsel George Kuehn. ``That does not mean we target the group that is under 21.'' Whether the beer industry advertises to kids became a hotly debated question after the liquor industry last year abandoned its longstanding guidelines banning TV ads. That sparked a national uproar over exposing kids to alcohol ads-- putting the beer industry in the spotlight. In Congress, Rep. Joseph P. Kennedy II (D., Mass.) has introduced legislation that would ban most forms of alcohol advertising from 7 a.m. to 10 p.m., require health warnings on print, radio and TV ads and require alcohol ads that run in publication with a 15% or more youth readership to appear only in black-and-white text. There are already signs that brewers and Madison Avenue are worried about the threat of regulation of beer ads. No. 1 brewer Anheuser-Busch revealed last month that it quietly pulled all its beer advertising from MTV, saying it hoped to ``ensure that our intent is not misperceived in today's climate.'' The Madison Avenue's main trade group, the American Association of Advertising Agencies, recently abandoned its longtime stand against restrictions on ads for products like alcohol and cigarettes. It proposed setting up a new self-regulation committee, warning that the industry otherwise faces a government crackdown on ads for beer and other adult products. But setting reliable guidelines for such ads remains tricky. TV executives argue that Nielsen ratings aren't reliable measures of kid viewership--even though the ratings are the TV industry's gold standard for gauging the cost of ad time. Says John Popkowski, executive vice president in charge of ad sales at MTV Networks: ``If you pick one show on an isolated night you might find one that's an aberration statistically,'' since cable channels' viewership is sometimes relatively small. On the E! Channel, for instance, Miller Brewing ran a Foster's ad on Sept. 2, just before 7:30 p.m., during the show ``Melrose Place.'' That night, 41% of the show's audience was under 21, according to Nielsen. But David T. Cassaro, senior vice president in charge of ad sales for E! Entertainment Television, says that from July 1 to Sept. 29 between 7 p.m. and 8 p.m., only about 28% of E! Entertainment's audience was under 21. Overall, Mr. Cassaro adds, only 19% of E! Entertainment's total audience isn't old enough to drink. ``With networks like BET the numbers are so small that they jump all over the place,'' adds John Goldman, a spokesman for Adolph Coors. ``You take as much care as you can but the programming changes often.'' Mr. Goldman says that in the third quarter, the over-21 audience reached by BET between 7 p.m. and 8 p.m. ranged from 80% to 43%. Mr. Goldman adds that Coors doesn't buy MTV as a matter of company policy. ``We want to avoid any misperception that we're aiming at an underage audience.'' Mr. BYRD. Mr. President, looking at another chart to my left, this chart demonstrates competitive media reporting estimates that the alcoholic beverage industry spent more than $1 billion on alcohol advertising in 1995. In contrast, in 1995, the Federal investment in the National Institute on Alcohol Abuse and Alcoholism was a mere $189.8 million for alcohol research. Does the industry expect us to believe that it would spend this huge amount of money--$1.1 billion--if it were not getting something for that money? Some may argue that this legislation would adversely affect the advertising industry by forcing producers of alcoholic beverages to eliminate their advertising expenditure. Poppycock. I do not believe that this would be the case. Alcoholic beverage producers spend large amounts of money to advertise their products because it encourages people to consume their product and it, therefore, increases sales. Eliminating the advertising deduction will not eliminate the fundamental business practice. By making these advertisements less profitable, this amendment may reduce the overall amount of alcohol advertising in our society. However, let there be no doubt that the alcohol ads will keep on running. You [[Page S6445]] can bet your bottom dollar on that. They will. The difference, however, will be that the American taxpayer will no longer be subsidizing this activity and that the money will go, instead, to getting the other side of the alcohol story out. That is what we need to start doing. We need to start now getting the other side of the alcohol story out. It is perhaps not the most popular thing politically to attempt to do here, but it needs to be done. This amendment is all the more necessary because, last year, the Distilled Spirits Council of the United States decided to reject its self-imposed ban on advertising hard liquor on television and radio. I decried this decision by the Distilled Spirits Council because it is a step backward at a time when our Nation is working to curb alcohol abuse. Now hard liquor advertisements will be flowing over the airwaves. This is not the direction in which our Nation should be moving. According to the Joint Committee on Taxation, the elimination of the tax deduction would result in $2.9 billion in savings over 5 years. My amendment targets the savings from the elimination of the disallowance to programs to prevent alcohol abuse among our Nation's young people and to educate children about alcohol. The Substance Abuse and Mental Health Services Administration would be given increased funds to supplement programs to prevent the use of alcohol among young people and to fund a media campaign designed to counteract the constant bombardment to which our children are subjected daily by alcohol advertisements. It is important to give our children information about the risks associated with the consumption of alcohol. We should not sit idly by and leave unchallenged the messages of alcoholic beverage advertisements that only good things happen to those who drink alcohol. This amendment will also direct funding to the Centers for Disease Control and Prevention to carry out a comprehensive strategy to prevent alcohol-related disease and disability. The CDC would be given authority to enhance and expand fetal alcohol syndrome prevention activities throughout the Nation. According to the NIAAA, fetal alcohol syndrome is estimated to affect from one to three children out of every 1,000 live births. To address the distressing problem of alcohol-impaired driving, the National Highway Traffic Safety Administration's alcohol-impaired driving incentive grant program, previously known as section 410, would receive additional funding. Funding is also made available to NTSA to launch a media campaign about the perils of driving under the influence. The Indian Health Service will receive funding for its alcohol abuse programs to address the issue of alcohol abuse, which has such a devastating effect on the first Americans. I don't refer to them as native Americans. I don't refer to them as native Americans. I am a native American. If I am not a native American, of what country am I a native? I refer to them as the original Americans, or the first Americans. The harm that alcoholic beverages cause our Nation is not a second- rate hangover, but a serious affliction that kills more than 100,000 people each year. By adopting this amendment, we would be making a positive effort to improve the health of our Nation, particularly of our children, and to send a sober message to those who are capitalizing on profits generated by recklessly advertising alcoholic beverages through far-reaching and seductive means, such as television. We should act in the best interests of the American people and announce ``last call'' to those who have been receiving tax breaks for peddling booze, take a step in the right direction and begin to repair some of the damage brought by alcohol in this country. Let us begin by putting a cork in the tax loophole that has left American taxpayers picking up the tab for the alcohol industry. Now, Mr. President, I am very well aware that a point of order will be made, or can be made. I am well aware of that. But I think the debate has to start at some point. I think that point is now. We hear a great deal about tobacco and we hear a great deal about children, about children's health. I hope those who support those programs and talk much about them would support this effort. We are talking here about children's health. We are talking here about something that kills 100,000 people every year. I am not seeking to ban alcohol. I am not seeking to regulate alcohol. I am simply seeking to end the subsidization by the taxpayers of this country of alcohol. Think about it. Think about it on your way home tonight as you drive out the George Washington Parkway and see someone in front of you wobbling from one side of the road to the other. Think again. Suppose your wife is up at Tyson's Corner getting ready to drive home with the children and that same fellow who was in front of your car wobbling may kill your wife and your children. So let's start talking about it. Let's start airing the subject here. Let's stop putting it behind the curtain, putting it under the rug, saying it is taboo. It is not. It is not taboo. Think about our children, our grandchildren. This is the product that kills other people. Tobacco may kill me. Tobacco may kill the individual who smokes it. But alcohol may not kill the person who imbibes; it may kill the innocent--the driver in the other car. So I hope that Senators will support my amendment. As I say, I am sure that there is a process or a motion available, but I am accustomed to those things. I say let the Senate work its will. I yield the floor. Mr. ROTH addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Mr. ROTH. I yield 5 minutes to the distinguished Senator from Kentucky. The PRESIDING OFFICER. The Senator from Kentucky is recognized. Mr. McCONNELL. Mr. President, I thank the chairman of the Finance Committee for yielding me a few moments. I listened very carefully to my good friend and colleague from West Virginia and to his observations about the dangers of drinking and driving, with which I completely concur. Of course, representing Kentucky, as my friend from West Virginia knows, not only do we have 60,000 tobacco growers, which is, of course, the subject of a number of amendments that may come on this bill; we are also the home of bourbon. If this kind of whiskey is not made in Kentucky, it cannot be called bourbon. Let me suggest that there are no industries--and I checked with the Finance Committee staff--that have been singled out by law and, as a result of being singled out, are not allowed to deduct their expenses for advertising. So this would be a first. To begin with, as a matter of tax policy, certain kinds of legal industries are not allowed to deduct their advertising, and others are. There is also--while we are thinking of both cigarettes and alcohol-- another important distinction. There is no argument that misuse of alcohol is a problem in this country. As a Senator from a tobacco- producing State, I never make the argument that smoking cigarettes is good for you. Obviously, it isn't. But there are many in the medical profession who would say that the consumption of alcohol, if used properly--properly--is actually good for you. I am not a physician, I can't make that argument, but there is a growing argument being made by many in the medical community that a certain amount of alcohol, properly used, is actually good for you health, not bad for your health. So we have here a legal product, Mr. President, which, arguably, if properly used, might actually be good for you, which the distinguished Senator from West Virginia, I gather, is saying when misused, of course, is clearly a terrible thing and a disaster not only for the person misusing it, but for others who may be affected by that, and that because a product may be misused, the Government should step in and say: Your advertising is not allowed. Regardless of how you may feel about this---- Mr. BYRD. Will the Senator yield? Mr. McCONNELL. Yes. Mr. BYRD. For a correction only. My amendment does not say your advertising will not be allowed. I am not saying that at all. The alcohol industry may continue to advertise. I am just saying, let's stop the subsidization of that advertising, the subsidization by the taxpayers. Mr. McCONNELL. I thank the Senator. I think I did understand his [[Page S6446]] amendment to disallow a deductibility for advertising, which would make this the only industry of which the Finance Committee is aware where such deductibility would be disallowed. Aside from my home State and the product, which, if properly used, might actually be good for you, I wonder if my friend from West Virginia doesn't share my concern that once we go in this direction, we might find other activities that some may find offensive being subject to the same kinds of efforts to disallow deductibility for certain kinds of business expenses. I think, for example, West Virginia and Kentucky used to trade back and forth in terms of coal production. One year West Virginia would be first; the next year Kentucky would be the first. Alas, neither are first anymore. Wyoming is. But there are many Americans who think, as a result of the burning of coal, that the area is polluted and that, as a result of that, people contract lung problems. In fact, there is an initiative by the Clinton administration just announced this week which the Senator from West Virginia and I both have serious reservations about designed to cut down on air pollution--so the argument goes--so there will be less lung disease. I wonder, if we go down this path of trying to pick out which industries' deductions for certain kinds of business expenses are to be allowed or not allowed based upon our judgment about what is harmful to the public, whether or not somebody might come in and say, ``Well, we shouldn't allow production costs associated with the mining of coal to be deductible because, after all, the burning of coal leads to the pollution of the air, which then leads to lung disease, which then leads to death.'' I just am concerned that this is a step in the wrong direction. I understand fully the concerns of the Senator from West Virginia, and I share them. I think the use of alcohol leads to a great deal of tragedy. But I hope we will not single out this legal industry producing a product, which, if properly used, many people in the medical field feel is actually good for you, for this kind of selective treatment on deductibility. Finally, let me say that I am not an expert on the budget deal. But it is clear that there is a lot of momentum in this body to hold the deal together, and this is clearly not part of the budget deal. I hope that the proposal will not be approved, in all due respect to my good friend and colleague from West Virginia. I hope this would not become part of the measure before us. I yield the floor. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, may I say that I fully understand the economic impact of the tobacco industry on the State of the distinguished Senator who has just spoken. West Virginia grows good tobacco crops as well, and the income from those tobacco crops certainly impact upon many families in many counties of West Virginia. We are talking about here, though, a product that results in the maiming and in the killing of people--innocent men, women, and children. The distinguished Senator from Kentucky mentions the carbon dioxide emissions and other greenhouse gas emissions and possible implications of those emissions on health. People who breathe that air may well, indeed, suffer an adverse impact on their health. But they don't go out and maim. They don't go out and drive an automobile, lose their proper judgment, and end up killing innocent people. They do not go home and abuse their spouses if they smoke cigarettes or if they breathe air blown from them. They don't go home and abuse their children. They don't go home and assault and batter the other members of their family. I am talking about a product that we all know--it is not just this Senator's opinion. We all know when we read the daily newspapers about the effects of drinking and driving. We all read the newspapers in the spring following the graduation exercises at high schools, and we read, with horror, the stories of a few young people who get into an automobile and wrap that automobile around a telephone pole and they are all killed or maimed--maimed for life. That is what we are talking about. I am not talking about singling out an industry. I am talking about an industry that creates a product that is hurtful--not just hurtful to the person who uses it, but endangers, as I said already, the lives of others. We all know that. But I do appreciate the fact that the Senator is from Kentucky, and I respect him for that, and I respect his viewpoint and count him and his fellow Kentuckians as good neighbors. I yield the floor. Mr. ROTH. How much time would the Senator from Montana like? Mr. BURNS. Probably no more than 5 minutes. Mr. ROTH. I yield 5 minutes to the Senator from Montana. The PRESIDING OFFICER. The Senator from Montana. Mr. BURNS. I thank my friend from Delaware. Mr. President, no one on this floor makes his case with such passion as my friend from West Virginia. We have a couple of things in common that we will not go into here. But I also know from where he comes. And when you start talking about this issue of singling out something, then we have to look at probably the real facts. First, there is the presumption in this amendment that somehow the advertising is evil or bad, or that it wreaks health problems on the American people. There is no question in anybody's mind across this land that the abuse of alcohol is one of our greatest problems--no doubt. Yet, there is no scientific evidence that would even suggest the casual relationship between advertising and abuse. In order to get to the root of the problem of alcoholism and all of the problems that it brings, study after study after study has been made in the relationship of advertising. In fact, during the 1980's, when the advertising for alcohol products was increasing, actual consumption per capita actually was decreasing. So not only does advertising not impact abuse, it doesn't even impact the overall consumption. Singling out a product is not, I don't think, what fair tax law is about. So let's be upfront about it, because I am familiar with the broadcast industry. It has economic impacts on small business. It has economic impacts. And once we start singling out products, do we start talking about red meat, eggs, or sugar? Where do we draw the line? The impact it might have on the national pastime? We could say, ``OK, we don't need it in the broadcasting industry. We can all pay for pay-per- view''--the impact on an industry within itself. And the list goes on and on trying to explain to our constituents why different things happen and cost more, because there is a decrease in advertising support in free television. That also brings us our weather, our farm reports, our news, our emergency conditions. All of these things that are supported by free over-the-air broadcasts will be impacted if this amendment is successful. The industry has taken steps to limit or try to curb the abuse that alcohol has on a person or individual. There is no doubt about it. And in some areas some would say it is even working. I know that all of us want a tax cut. All of us want a balanced budget. But to single out and start limiting an ad tax or deductibility for legal products is not the right approach. It is not the right approach--not on a legal product. So I urge my colleagues to oppose this. It is unwarranted. I think it is unwise. And I am not real sure, it might have some constitutional overtones because advertising is still freedom of speech. It cannot be treated differently than any other form. The Senator from West Virginia makes a point. It is the abuse of the product. The advertising has very little to do with the abuse of the product. Thank you, and I urge the defeat of this amendment. I yield the floor. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, the Senator talks about red meat, eggs, and sugar. The Honorable Senator is my friend. Who ever heard of anybody eating red meat, eggs, and sugar, and getting out in the car and having that car plunge into a tree, weave all across the road, and kill and maim other people? Red meat doesn't cause an individual to drive drunk and get in the car and [[Page S6447]] drive all over the highway. Eggs and sugar don't do that in their form as eggs and sugar, in their natural form. The Senator also, I think, made reference to the Federal Trade Commission in 1985, which found ``no reliable basis to conclude that alcohol advertising significantly affects consumption, let alone abuse.'' Well, let's see what the conclusions are from the effects of the mass media on the use and abuse of alcohol. The National Institute of Alcohol Abuse and Alcoholism, U.S. Department of Health and Human Services, Research Monograph-28, 1995: [The] preponderance of the evidence indicates that alcohol advertising stimulates higher consumption of alcohol by both adults and adolescents . . . It appears to be a contributing factor that increases drinking to a modest degree rather than being a major determinant. (Dr. Charles Adkins, Department of Communications, Michigan State University.) Now I shall quote Dr. Sally Casswell, Alcohol and Public Health Research Unit, School of Medicine, University of Aukland: [T]here is sufficient evidence to say that alcohol advertising is likely to be a contributing factor to overall consumption and other alcohol-related problems in the long term. Now quoting Dr. Joel Grube, Prevention Research Center: [A]lcohol advertising can influence children, particularly their beliefs about alcohol and, indirectly, their intentions to drink as adults. Finally, let me quote Dr. Esther Thorson, School of Journalism, University of Missouri: If research were designed to take account of what the advertiser is trying to do and if it examined the relationship between the specific structure of the message and the individual or group for whom that message is targeted, investigators probably would find ``whopping effects''. Mr. President, I appreciate the views that have been expressed by my friend from Montana and, as I have already indicated, by my friend from Kentucky. I appreciate their views, and I respect their views. Mr. President, I don't think there should be any doubts in the minds of any Senator or any person who is viewing this Chamber via that electronic eye that the drinking of alcohol affects the judgment of people, and that there are many other costs that are not tangible, that cannot be translated into dollars and cents-- the cost of lost productivity, the cost of broken homes, the cost of children abused. And I could go on. I have made my case, and I ask for the yeas and nays on my amendment. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. Mr. BYRD. I yield back the balance of my time. The PRESIDING OFFICER. The Senator from Delaware has the remaining time. Mr. ROTH. Mr. President, I yield back the remainder of my time, and I make the point of order that the pending amendment is not germane to the provisions of the reconciliation measure and I therefore raise a point of order against the amendment under section 305(b)(2) of the Budget Act. Mr. BYRD. Mr. President, I move to waive the point of order and ask for the yeas and nays on my motion. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. The PRESIDING OFFICER. There is an hour equally divided on the motion. Mr. BYRD. Mr. President, I yield back my time. Mr. ROTH. Mr. President, I yield back the balance of my time. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question is on agreeing to the motion to waive. The yeas and nays have been ordered. The clerk will call the roll. The bill clerk called the roll. Mr. McCAIN (when his name was called). Present. Mr. NICKLES. I announce that the Senator from Kansas [Mr. Roberts], is necessarily absent. The PRESIDING OFFICER. Are there any other Senators in the Chamber who desire to vote? The yeas and nays resulted--yeas 12, nays 86, as follows: [Rollcall Vote No. 136 Leg.] YEAS--12 Bumpers Byrd Cleland DeWine Glenn Hatch Helms Kennedy Rockefeller Sarbanes Thurmond Wellstone NAYS--86 Abraham Akaka Allard Ashcroft Baucus Bennett Biden Bingaman Bond Boxer Breaux Brownback Bryan Burns Campbell Chafee Coats Cochran Collins Conrad Coverdell Craig D'Amato Daschle Dodd Domenici Dorgan Durbin Enzi Faircloth Feingold Feinstein Ford Frist Gorton Graham Gramm Grams Grassley Gregg Hagel Harkin Hollings Hutchi

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REVENUE RECONCILIATION ACT OF 1997
(Senate - June 26, 1997)

Text of this article available as: TXT PDF [Pages S6440-S6473] REVENUE RECONCILIATION ACT OF 1997 The Senate continued with the consideration of the bill. Amendment No. 537 Mr. DOMENICI. How much time do I have on the amendment? The PRESIDING OFFICER. Forty-four minutes. Mr. DOMENICI. And the opposition has 44 minutes? The PRESIDING OFFICER. Sixty minutes. Mr. DOMENICI. So we have used 16. Actually, unless Senator Lautenberg has anything further to say, I believe I have stated the case for the Domenici-Lautenberg amendment No. 537. Does Senator Gramm want to offer an amendment to the amendment? Mr. GRAMM. I think Senator Biden is going to offer an amendment first, and after his amendment is disposed of, then I will have an amendment, as will several other people. Mr. BIDEN addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Mr. BIDEN. Madam President, I wonder if the Democratic manager would yield me time off the bill. Mr. DOMENICI. The Senator has time on his amendment. Mr. BIDEN. Parliamentary inquiry. Can I get time in my own right? Mr. DOMENICI. I yield back my time. The PRESIDING OFFICER. The time is controlled by Senator Domenici and Senator Roth. Mr. LAUTENBERG. I yield back my time. The PRESIDING OFFICER. Is all time yielded back? Mr. DOMENICI. We yielded back our time. Mr. BIDEN addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Amendment No. 539 to Amendment No. 537 Mr. BIDEN. Madam President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report. The assistant legislative clerk read as follows: The Senator from Delaware [Mr. Biden], for himself and Mr. Gramm, proposes an amendment numbered 539 to amendment No. 537. Mr. BIDEN. Madam President, I ask that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: On page 43 of the amendment, strike lines 14 through 21 and insert the following: ``(5) with respect to fiscal year 2001-- ``(A) for the discretionary category: $537,677,000,000 in new budget authority and $558,460,000,000 in outlays; and ``(B) for the violent crime reduction category: $4,355,000,000 in new budget authority and $5,936,000,000 in outlays; ``(6) with respect to fiscal year 2002-- ``(A) for the discretionary category: $546,619,000,000 in new budget authority and $556,314,000,000 in outlays; and ``(B) for the violent crime reduction category: $4,455,000,000 in new budget authority and $4,485,000,000 in outlays; as adjusted in strict conformance with subsection (b).''. (2) Transfers into the fund.--On the first day of the following fiscal years, the following amounts shall be transferred from the general fund to the Violent Crime Reduction Trust Fund-- (A) for fiscal year 2001, $4,355,000,000; and (B) for fiscal year 2002, $4,455,000,000. Mr. BUMPERS. Will the Senator from Delaware yield for an inquiry for a moment? Mr. BIDEN. I would be happy to. Mr. BUMPERS. Could the managers of this bill tell us how many second- degree amendments there are to this process? I assume we are on the second-degree amendment process; is that correct? The PRESIDING OFFICER. That is correct. Mr. BUMPERS. Could the managers tell us how many second-degree amendments they anticipate on this? Mr. DOMENICI. I do not know. Mr. GRAMM. I believe there will be four. Senator Biden will offer one for himself. Once that is adopted, I will offer a second-degree amendment. And [[Page S6441]] then we have two other Senators who want to offer second-degree amendments, so they will be seriatim. Mr. BUMPERS. Then there are five, because I have one also. I am just wondering if we could get some kind of sequence so we know how they are going to be offered so we do not spend the rest of our lives waiting. Mr. DOMENICI. I say to the Senator, you can be assured there will be four ahead of you, if you would like to be fifth. Mr. BUMPERS. I thank the Senator for his courtesy. Mr. GRAMM. Why don't you do yours last? Mr. DOMENICI. That is what I said. Mr. BIDEN. Madam President, the second-degree amendment I have at the desk is very simple and straightforward. The Senator from New Mexico is introducing a budget process amendment, and what the amendment of Senator Gramm and myself does is, quite frankly, it merely extends the crime law trust fund for the extension of this agreement. I am told by the staffs of the majority and minority that in the budget process agreement that was agreed to with the administration, there is a line on page 90 of the concurrent resolution of the budget fiscal year 1998. On page 90, it says, ``Retain current law on separate crime caps at levels shown in the agreement tables.'' All we are doing here is extending the crime law trust fund. We are not making judgments on how that will be disbursed within the trust fund. We are just extending the trust fund to the extent of this agreement. And, Madam President, as I offer this amendment, we are maintaining a commitment to one of the few specific ways the reconciliation package can, by virtue of the type of legislation it is, maintain a commitment. The commitment we made was to fight violent crime. And, ironically, it is working. It is working. And so for us now to extend the violent crime trust fund, let it expire 2 years before this budget agreement expires, means we are going to be back at it again in the year 2000 or before, fighting over something we now know works. So I realize we can take a long time debating this. But the bottom line is this: We are not suggesting, as the Senator from New Mexico knows, how this trust fund money within the caps will be disbursed; merely that we have the continuation of the trust fund as long as the budget agreement to the year 2002. Of all the priorities addressed in this budget package, I believe that none is more important than continuing our fight against violent crime and violence against women. The amendment I am offering, along with Senator Gramm seeks to maintain this commitment in one of the few specific ways this reconciliation package can--by virtue of the type of legislation this is--maintain this commitment. That is by extending the violent crime control trust fund will continue through the end of this budget resolution, fiscal year 2002. Senator Byrd, more than anyone, deserves credit for the crime law trust fund. Senator Byrd worked to develop an idea that was simple as it was profound--as he called on us to use the savings from the reductions in the Federal work force of 272,000 employees to fund one of the Nation's most urgent priorities: fighting the scourge of violent crime. Senator Gramm was also one of the very first to call on the Senate to ``put our money where our mouth was.'' Too often, this Senate has voted to send significant aid to State and local law enforcement--but, when it came time to write the check, we did not find nearly the dollars we promised. Working together in 1993, Senator Byrd, myself, Senator Gramm, and other Senators passed the violent crime control trust fund in the Senate. And, in 1994, it became law in the Biden crime law. Since then, the dollars from the crime law trust fund have: Helped add more than 60,000 community police officers to our streets; helped shelter more than 80,000 battered women and their children; focussed law enforcement, prosecutors, and victims service providers on providing immediate help to women victimized by someone who pretends to love them; forced tens of thousands of drug offenders into drug testing and treatment programs, instead of continuing to allow them to remain free on probation with no supervision and no accountability; constructed thousands of prison cells for violent criminals; and brought unprecedented resources to defending our Southwest border-- putting us on the path to literally double the number of Federal border agents over just a 5-year period. The results of this effort are already taking hold: According to the FBI's national crime statistics, violent crime is down and down significantly--leaving our nation with its lowest murder rate since 1971; the lowest violent crime total since 1990; and the lowest murder rate for wives, ex-wives, and girlfriends at the hands of their intimates to an 18-year low. In short, we have proven able to do what few thought possible--by being smart, keeping our focus, and putting our ``money where our mouths'' are--we have actually cut violent crime. Today, our challenge is to keep our focus and to stay vigilant against violent crime. Today, the Biden-Byrd-Gramm amendment before the Senate offers one modest step toward meeting that challenge: By assuring that the commitment to fighting crime and violence against women will continue for the full duration of this budget resolution. By assuring that the violent crime control trust fund will continue-- in its current form which provides additional Federal assistance without adding 1 cent to the deficit--through 2002. The Biden-Gramm amendment offers a few very simple choices: Stand up for cops--or don't; stand up for the fight against violence against women--or don't; and stand up for increased border enforcement--or don't. Every Member of this Senate is against violence crime--we way that in speech after speech. Now, I urge all my colleagues to back up with words with the only thing that we can actually do for the cop walking the beat, the battered woman, the victim of crime--provide the dollars that help give them the tools to fight violent criminals, standup to their abuser, and restore at least some small piece of the dignity taken from them at the hands of a violent criminal. Let us be very clear of the stakes here--frankly, if we do not continue the trust fund, we will not be able to continue such proven, valuable efforts as the violence against women law. Nothing we can do today can guarantee that we, in fact, will continue the Violence Against Women Act when the law expires in the year 2000. But, mark my words, if the trust fund ends, the efforts to provide shelter, help victims, and get tough on the abusers and barterers will wither on the vine. Passing the amendment I offer today will send a clear, unambiguous message that the trust fund should continue and with it, the historic effort undertaken by the Violence Against Women Act that says by word, deed, and dollar that the Federal Government stands with women and against the misguided notion that ``domestic'' violence is a man's ``right'' and ``not really a crime.'' I urge my colleagues to support the Biden-Gramm amendment. At the appropriate time--and I am not quite sure yet when is appropriate--I will ask for the yeas and nays on this. But make no mistake about it, what we are voting on here is whether or not we are going to commit now to the extension of the trust fund, the violent crime trust fund, for the extent of this agreement. That is all this does. That is everything it does, but that is all it does. Mr. DOMENICI addressed the Chair. The PRESIDING OFFICER (Mr. Bennett). The Senator from New Mexico. Amendment No. 537, Withdrawn Mr. DOMENICI. Mr. President, I withdraw my amendment. The PRESIDING OFFICER. The amendment is withdrawn. The amendment (No. 537) was withdrawn. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. Under the previous order, the Senator from West Virginia is recognized. [[Page S6442]] Amendment No. 540 (Purpose: To eliminate tax deductions for advertising and promotion expenditures relating to alcoholic beverages and to increase funding for programs that educate and prevent the abuse of alcohol among our Nation's youth) Mr. BYRD. Mr. President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report. The assistant legislative clerk read as follows: The Senator from West Virginia [Mr. Byrd] proposes an amendment numbered 540. Mr. BYRD. Mr. President, I ask unanimous consent that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the end of the bill, add the following: TITLE --ALCOHOL ADVERTISING RESPONSIBILITY ACT SEC. 01. SHORT TITLE. This title may be cited as the ``Alcohol Advertising Responsibility Act''. SEC. 02. FINDINGS AND PURPOSES. (a) Findings.--Congress finds that-- (1) alcohol is used by more Americans than any other drug; (2) it is estimated that the costs to society from alcoholism and alcohol abuse were approximately $100,000,000,000 in 1990 alone. (3) in 1995, the alcoholic beverage industry spent $1,040,300,000 on advertising, while the National Institute for Alcohol Abuse and Alcoholism was funded at only $181,445,000; (4) more than 100,000 deaths each year in the United States result from alcohol-related causes; (5) 41.3 percent of all traffic facilities in 1995, or 17,274 deaths, were alcohol related; (6) in addition to severe health consequences, alcohol misuse is involved in approximately 30 percent of all suicides, 50 percent of homicides, 68 percent of manslaughter cases, 52 percent of rapes and other sexual assaults, 48 percent of robberies, 62 percent of assaults, and 49 percent of all other violent crimes; (7) approximately 30 percent of all accidental deaths are attributable to alcohol abuse; (8) alcohol advertising may influence children's perceptions toward an inclinations to consume alcoholic beverages; (9) 26 percent of eighth graders, 40 percent of tenth graders, and 51 percent of twelfth graders report having used alcohol in the past month; and (10) college presidents nationwide view alcohol abuse as their paramount campus-life problem. (b) Purposes.--The purposes of this title are-- (1) to repeal the existing tax subsidization for expenses incurred to promote the consumption of alcoholic beverages; (2) to reduce the amount of alcohol advertising to which our Nation's youth are exposed; and (3) to increase funding for those programs that educate and prevent the abuse of alcohol among our Nation's youth. SEC. 03. DISALLOWANCE OF DEDUCTION FOR ADVERTISING AND PROMOTION EXPENSES RELATING TO ALCOHOLIC BEVERAGES. (a) In General.--Part IX of subchapter B of chapter 1 (relating to items not deductible) is amended by adding at the end of the following: SEC. 280I. ADVERTISING AND PROMOTION EXPENDITURES RELATING TO ALCOHOLIC BEVERAGES. ``(a) In General.--No deduction otherwise allowable under this chapter shall be allowed for any amount paid or incurred to advertise or promote by any means any alcoholic beverage. ``(b) Alcoholic Beverage.--For purposes of this section, the term `alcoholic beverage' means any item which is subject to tax under subpart A, C, or D of part I of subchapter A of chapter 51 (relating to taxes on distilled spirits, wines, and beer).''. (b) Conforming Amendment.--The table of sections for part IX of subchapter B of chapter 1 is amended by adding at the end the following: ``Sec. 280I. Advertising and promotion expenditures relating to alcoholic beverages.''. (c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31 of the year in which this Act is enacted. SEC. 04. ALCOHOL ABUSE EDUCATION AND PREVENTION AMONG YOUTH. (a) In General.--Subject to subsection (c), there shall be transferred, from funds in the Treasury not otherwise appropriated, to the entities described in subsection (b) amounts to the extent specified under subsection (b). (b) Education and Prevention Programs.-- (1) Substance abuse and mental health services administration.--The amounts specified in this subsection shall be: (A) In general.--With respect to the Substance Abuse and Mental Health Services Administration, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to supplement substance abuse prevention activities authorized under section 501 of the Public Health Service Act (42 U.S.C. 290aa). (B) Use of funds.--Amounts provided to the Substance Abuse and Mental Health Services Administration under subparagraph (A) shall be used directly or through grants and cooperative agreements to carry out activities to prevent the use of alcohol among youth, including the development and distribution of public service announcements. (2) Centers for disease control and prevention.-- (A) In general.--With respect to the Centers for Disease Control and Prevention, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to carry out a comprehensive strategy to prevent alcohol-related disease and disability. (A) Required uses.--In carrying out the comprehensive strategy under subparagraph (A), the Centers for Disease Control and Prevention shall-- (i) enhance and expand State-based and national surveillance activities to monitor the scope of alcohol use among the youth of the United States; (ii) enhance comprehensive school-based health programs that focus on alcohol use prevention strategies; (iii) develop and distribute commercial advertising to prevent alcohol abuse among youth; and (iv) enhance and expand Fetal Alcohol Syndrome prevention activities throughout the United States. (3) National highway traffic safety administration.--With respect to the National Highway Traffic Safety Administration, and in addition to any funds authorized from the Highway Trust Fund, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to carry out programs under sections 402, 403, and 410 of title 23, United States Code, and to develop and implement a paid media campaign targeting high-risk youth populations to improve the balance of media messages related to alcohol impaired driving. (4) Indian health service.--With respect to the Indian Health Service, $40,000,000 for fiscal year 1998, $60,000,000 for fiscal year 1999, $60,000,000 for fiscal year 2000, $70,000,000 for fiscal year 2001, and $70,000,000 for fiscal year 2002, to supplement the programs that such Service is authorized to carry out pursuant to titles II and III of the Public Health Service Act (42 U.S.C. 202 et seq., 241 et seq.). (c) Authority to Transfer Funds.--The Committee on Appropriations of the House of Representatives and the Committee on appropriations of the Senate, acting through appropriations Acts, may transfer the amount specified under subsection (b) in each fiscal year among the entities referred to in such subsection. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, would the Chair indulge me momentarily? I protect my right to the floor. The PRESIDING OFFICER. The Senator from West Virginia will be protected in his right to the floor. Mr. DURBIN addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia has the floor. Mr. BYRD. I thank the Chair. Mr. President, last Friday negotiators from the tobacco industry and State attorneys general announced the landmark agreement addressing the impact of tobacco use on our Nation, particularly our young people. Although this important deal will likely face many obstacles and has a long way to go toward implementation, it is an unprecedented first step toward curbing tobacco use and paying for the harm caused by that use. This process has caused our Nation to focus on an important public health danger and is an important step in working toward a meaningful solution. While I applaud the action being taken to address the pernicious health effects of tobacco, I am concerned that its evil twin, which also has a staggering impact on our Nation, is to a large measure being ignored. Mr. President, the cost of alcohol abuse to our country is staggering. According to the National Institute on Alcohol Abuse and Alcoholism of the National Institutes of Health, alcohol is used by more Americans than any other drug. And the results are devastating. The flood tide of alcohol causes more than 100,000 deaths each year in the United States. Alcohol abuse and alcoholism imposes approximately $100 billion in cost each year on society. Links have been found between alcohol abuse and cirrhosis of the liver, as well as other harmful health conditions. Alcohol is a contributing factor in assaults, murders and other violent crimes, including fatal drinking and driving accidents. At the bottom of every empty bottle is another family in crisis, another career being destroyed, or another dream washed away. [[Page S6443]] The amendment I am offering today would eliminate the tax deduction for alcoholic beverage advertising expenditures. In addition, it would increase funding for a number of programs that educate and prevent the abuse of alcohol among our Nation's youth. What should be of the utmost of our concern in our Nation is the impact of alcohol on our children and our grandchildren. I am introducing this amendment on behalf of the children who died because they were drinking and driving, and on behalf of the millions of children who are drinking right now without the full appreciation of what they are doing to themselves and what they could potentially do to others. Alcohol is the drug of choice among teenagers. Mr. President, more specifically, and looking at this chart compiled by the National Center on Addiction and Substance Abuse, the use of alcohol by our Nation's youth is highlighted among different age groups, including children between the ages of 12 and 17. Among children between the ages of 16 and 17, 69.3 percent have at one point in their lifetimes experimented with alcohol. Clearly, as made evident by these alarming statistics, alcohol is the leading problem among teenagers--not marijuana, not cocaine. In the last month, approximately 8 percent of the Nation's eighth graders have been drunk--have been drunk. We are talking about eighth graders, 13 years old--13-year-olds. I never heard of such a thing when I was in my teens, as a young man, or in my middle age. We are talking about eighth graders, 13-year-olds. Every State has a law prohibiting the sale of alcohol to individuals under the age of 21. How is it then that two out of every three teenagers who drink report that they can buy their own alcoholic beverages? The youth of this country, who at the delicate age of 15 should be enriching their minds with schoolwork, improving their bodies with exercise, and discovering the wonders of life through God and family values, instead are experimenting and endangering themselves with booze. Junior and senior high school students drink 35 percent of all wine coolers and consume 1.1 billion cans of beer a year. I know, because I pick some of them up off my lawn--I am talking about the beer cans, not the young people. I will repeat what is common knowledge to us all: Every State has a law prohibiting the sale of alcohol to individuals under the age of 21. Alcohol is a factor in the three leading causes of death for 15- to 24- year-olds--the three leading causes--accidents, homicides, suicide. In approximately 50 percent to 60 percent of youth suicides, alcohol is involved. Links have been shown between alcohol use and teen pregnancies and sexually transmitted diseases. Eighty percent of the teenagers do not know that a can of beer has the same amount of alcohol as a shot of whiskey or a glass of wine. By the time they are in college, 40 percent have binged on alcohol during the previous 2 weeks. In 1994, 8.9 percent--almost 95,000--of the clients admitted to alcohol treatment programs that received at least part of their funding from the State were under the age of 21, including over 1,000 under the age of 12. And 31.9 percent of youth under the age of 18 in long-term State-operated juvenile institutions were under the influence of alcohol at the time of their arrest. While our Nation's education system needs repair, it seems that our society has been successful in teaching these kids something. The problem is that what we have taught them is deadly. Drinking impairs one's judgment. We all know that. Nobody will dispute that. Alcohol mixed with teenage driving is a lethal, a lethal combination. We read about it all the time in the Washington Post, the Washington Times, and every newspaper in the land. In 1995, there were 1,666 alcohol-related fatalities of children between the ages of 15 and 19. The total number of alcohol-related fatalities that year was 17,274. Mr. President, for many years I have taken the opportunity, when addressing groups of young West Virginians, to warn them about the dangers of alcohol. I supported legislative efforts to discourage people, particularly young people, from drinking any alcohol. For example, 2 years ago I authored an amendment that requires States to pass the zero-tolerance laws that will make it illegal for persons under the age of 21 to drive a motor vehicle if they have a blood alcohol level greater than .02 percent. This legislation not only helps to save lives but it also sends a message to our Nation's youth that drinking and driving is wrong, that it is a violation of the law, and that it will be appropriately punished. Unfortunately and tragically, we all know someone, whether it is a family member or a friend or an acquaintance, whose life has been cut short by a drunk driver. These are senseless losses that are devastating to the families and the friends who are left behind. As if the aforementioned statistics about youth alcohol use and the results of that use are not frightening enough, young people who consume alcohol are more likely to use other drugs. On the chart to my left, Senators will note these statistics, compiled by the National Center on Addiction and Substance Abuse at Columbia University, statistics which show that 37.5 percent of young people who have consumed alcohol have used some other illicit drug, versus only 5 percent of young people who have never consumed alcohol; 26.7 percent of those who have consumed alcohol have tried marijuana, versus 1.2 percent of those who have never consumed alcohol; 5 percent of youths who have partaken of alcohol have tried cocaine, while only 0.1 of 1 percent of those who do not drink have used cocaine. So it is not a question that is even debatable that youths who drink alcohol are more likely to use other drugs. Mr. President, as the aforementioned facts and figures indicate, alcohol exacts a tremendous cost on our society. These costs are not always clear-cut. For example, consider the costs of the lost productivity of a person showing up at work on a Monday morning with a hangover and inadequately performing his or her job, perhaps making a mistake that results in injury. How many of us would like to ride in the automobile that was made on such a Monday morning? How many of us would like to fly on the airplane whose maintenance man or woman, whose mechanic was on a binge the previous day? While there is no way to accurately gauge the enormous costs that alcohol exacts upon our society, there can be no doubt that the pleasures of alcohol consumption exacts a considerable price on our Nation. The purpose of the amendment that I introduce today is simple. My proposal would simply tell all producers of alcoholic beverages that they can no longer deduct the costs of their advertising expenditures on those products from their Federal income tax liability. While advertising is generally deductible as a legitimate business expense, I believe there exists a moral, legitimate reason to create an exception for producers of alcoholic beverages whose products exact such considerable costs on our society. My proposal would not make illegal any advertising of alcoholic beverages. It does not say that any advertising of alcoholic beverages is unconstitutional. It does not attempt to ban such advertisements, nor would it create any additional Federal bureaucracy to regulate alcohol products. Rather, it would simply end the American taxpayers' subsidization of alcohol advertising by amending the Internal Revenue Code of 1986 to include a disallowance of any deduction for any amount paid or incurred to advertise or promote by any means any alcoholic beverage. This is not a sin tax. It is, rather, an end to the sin subsidy that has left American taxpayers footing the bill for both alcohol advertising and the high health care costs inflicted on society by alcohol consumption. Now there may be those who argue that it is wrong to single out alcohol advertising expenses. I counter that with the question: What other product, with the possible exception of tobacco, costs society $100 billion each year? What other product results in more than 100,000 deaths each year in the United States? The statistics are indeed staggering. Mr. President, in these complicated times, the innocence of youth, the innocence of youth is dashed away at an early age by the irreverent messages spewing from the television set. Profanity and violence on television programming are interrupted only by the aggressive commercials seeking to influence viewers in the name of profit. [[Page S6444]] Our impressionable youth, pressured by the self-indulgent motives of revenue-hungry corporations are bombarded by countless images glorifying an unrealistic view of reality, often insincerely portraying alcoholic beverages as an ingredient for ideal lifestyles. Our children are besieged with the message that if you drink you will attract beautiful women, if you drink you will be popular, if you drink you will excel at sports. Are these the images of reality or do they leave out something important? Do they leave out some important facts about alcohol consumption? What about the negative and all too prevalent results of alcohol consumption--the hangovers that result in lost productivity, the tragic deaths, the injuries caused by a drunk behind the wheel, the hospital visits for alcohol poisoning, the horrible effects of cirrhosis of the liver and the families torn apart by alcohol abuse. The industry indicates that their advertisements do not target young people, although this is debatable. A January Wall Street Journal article, detailing a competitive media reporting survey commissioned by the Journal, found that beer advertisements are often aired during programs that are watched by large numbers of adolescents. The findings of this survey are extremely disturbing. In one example, referenced in the article, a beer ad ran during the airing of a popular cartoon show on the MTV station of which 69 percent of the audience was comprised of children under the age of 21. Mr. President, I ask unanimous consent to have printed in the Record the Wall Street Journal article. There being no objection, the article was ordered to be printed in the Record, as follows: [From the Wall Street Journal] Are Beer Ads on Beavis and Butt-Head Aimed at Kids? (By Sally Beatty) When a commercial for Schlitz Malt Liquor appeared last year on MTV during ``My So-Called Life,'' a show about teenage girls, beer maker Stroh called the airing an aberration. Even as the ad helped launch a Federal Trade Commission probe into alcohol advertising to children, Stroh said it had a longtime policy of aiming ads only at adults of legal drinking age; MTV said the ad ran by mistake because of a last-minute programming switch. In fact, the commercial was hardly an isolated event. Despite the beer industry's insistence that it doesn't target kids, its commercials regularly wash over underage viewers. A survey by Competitive Media Reporting for the Wall Street Journal showed that during one arbitrarily chosen week--the first week of September--youths under the drinking age made up the majority of the audience for beer commercials on several occasions. For instance, Molson beer was advertised during a 10 p.m. episode of ``Beavis & Butt-Head,'' the popular MTV cartoon series about two obnoxious teens. Fully 69% of all the episode's viewers that night were under 21--the legal drinking age in all 50 states--according to Nielsen Media Research's widely used ratings data. Molson, which is marketed in the U.S. by Philip Morris's Miller Brewing, also advertised on MTV's racy youth dating show, ``Singled Out,'' just after 7 p.m., when 52% of the audience was under 21. And Stroh advertised Schlitz Malt Liquor during MTV's prime-time music-video show at 8:30 p.m., when 56% of the audience was under 21. That same week, Adolph Coors ran two ads on the Black Entertainment Television channel after 8 p.m., when 65% of the audience wasn't old enough to drink. Also that week, Anheuser-Busch ran an ad for its Budweiser brand just after 8:30 p.m. on BET during music-video programming, when 70% of the audience was under 21. These commercials look like clear violations of the chief beer industry trade group's own guidelines for TV ads. ``Beer advertising . . . should not be placed in magazines, newspapers, television programs, radio programs or other media where most of the audience is reasonably expected to be below the legal purchase age,'' states the Beer Institute's published ``advertising and marketing guidelines.'' The industry is pointing to these guidelines in an aggressive lobbying effort against proposed new federal restrictions of beer and liquor advertising. The number of ads reaching kids is ``very troubling,'' says Jodie Bernstein, director of the FTC's bureau of consumer protection and a top official involved with its ongoing probe into alcohol marketing to kids on television. Her bureau enforces laws banning unfair or deceptive ad practices, including a statute that says it's unfair to aim ads at people who aren't legally able to buy the products. A company that runs afoul of such laws can face fines, orders to pull ads and regular FTC screening of future advertising. Ms. Bernstein won't comment on the FTC's probe. However, she says that in any investigation, the commission would look first at whether alcohol advertisers are ``following their own guidelines.'' For example, ``Is it OK if [the percentage of underage viewers] gets up to 70% once in a while? I don't think it's OK.'' And she says the commission would ``never act on just one episode or one mistake--we would act on the pattern.'' Brewers and TV executives insist that it doesn't make sense to evaluate beer ads on a single night's audience. ``Any attempt to analyze the beer industry's media-buying practices by examining only selected broadcast media buys during a one- week period is misleading and simplistic,'' said Miller Brewing in a statement responding to questions about the survey. Miller added that more than 75 percent of the broadcast audience reached by the programming it buys is over 21. At Stroh, officials argue that there's a difference between putting ads in front of kids and targeting them explicitly. ``We understand that when an ad is run it's going to be seen by some people who are under 21 years of age, whether it's a billboard, in a magazine or on TV,'' says Stroh general counsel George Kuehn. ``That does not mean we target the group that is under 21.'' Whether the beer industry advertises to kids became a hotly debated question after the liquor industry last year abandoned its longstanding guidelines banning TV ads. That sparked a national uproar over exposing kids to alcohol ads-- putting the beer industry in the spotlight. In Congress, Rep. Joseph P. Kennedy II (D., Mass.) has introduced legislation that would ban most forms of alcohol advertising from 7 a.m. to 10 p.m., require health warnings on print, radio and TV ads and require alcohol ads that run in publication with a 15% or more youth readership to appear only in black-and-white text. There are already signs that brewers and Madison Avenue are worried about the threat of regulation of beer ads. No. 1 brewer Anheuser-Busch revealed last month that it quietly pulled all its beer advertising from MTV, saying it hoped to ``ensure that our intent is not misperceived in today's climate.'' The Madison Avenue's main trade group, the American Association of Advertising Agencies, recently abandoned its longtime stand against restrictions on ads for products like alcohol and cigarettes. It proposed setting up a new self-regulation committee, warning that the industry otherwise faces a government crackdown on ads for beer and other adult products. But setting reliable guidelines for such ads remains tricky. TV executives argue that Nielsen ratings aren't reliable measures of kid viewership--even though the ratings are the TV industry's gold standard for gauging the cost of ad time. Says John Popkowski, executive vice president in charge of ad sales at MTV Networks: ``If you pick one show on an isolated night you might find one that's an aberration statistically,'' since cable channels' viewership is sometimes relatively small. On the E! Channel, for instance, Miller Brewing ran a Foster's ad on Sept. 2, just before 7:30 p.m., during the show ``Melrose Place.'' That night, 41% of the show's audience was under 21, according to Nielsen. But David T. Cassaro, senior vice president in charge of ad sales for E! Entertainment Television, says that from July 1 to Sept. 29 between 7 p.m. and 8 p.m., only about 28% of E! Entertainment's audience was under 21. Overall, Mr. Cassaro adds, only 19% of E! Entertainment's total audience isn't old enough to drink. ``With networks like BET the numbers are so small that they jump all over the place,'' adds John Goldman, a spokesman for Adolph Coors. ``You take as much care as you can but the programming changes often.'' Mr. Goldman says that in the third quarter, the over-21 audience reached by BET between 7 p.m. and 8 p.m. ranged from 80% to 43%. Mr. Goldman adds that Coors doesn't buy MTV as a matter of company policy. ``We want to avoid any misperception that we're aiming at an underage audience.'' Mr. BYRD. Mr. President, looking at another chart to my left, this chart demonstrates competitive media reporting estimates that the alcoholic beverage industry spent more than $1 billion on alcohol advertising in 1995. In contrast, in 1995, the Federal investment in the National Institute on Alcohol Abuse and Alcoholism was a mere $189.8 million for alcohol research. Does the industry expect us to believe that it would spend this huge amount of money--$1.1 billion--if it were not getting something for that money? Some may argue that this legislation would adversely affect the advertising industry by forcing producers of alcoholic beverages to eliminate their advertising expenditure. Poppycock. I do not believe that this would be the case. Alcoholic beverage producers spend large amounts of money to advertise their products because it encourages people to consume their product and it, therefore, increases sales. Eliminating the advertising deduction will not eliminate the fundamental business practice. By making these advertisements less profitable, this amendment may reduce the overall amount of alcohol advertising in our society. However, let there be no doubt that the alcohol ads will keep on running. You [[Page S6445]] can bet your bottom dollar on that. They will. The difference, however, will be that the American taxpayer will no longer be subsidizing this activity and that the money will go, instead, to getting the other side of the alcohol story out. That is what we need to start doing. We need to start now getting the other side of the alcohol story out. It is perhaps not the most popular thing politically to attempt to do here, but it needs to be done. This amendment is all the more necessary because, last year, the Distilled Spirits Council of the United States decided to reject its self-imposed ban on advertising hard liquor on television and radio. I decried this decision by the Distilled Spirits Council because it is a step backward at a time when our Nation is working to curb alcohol abuse. Now hard liquor advertisements will be flowing over the airwaves. This is not the direction in which our Nation should be moving. According to the Joint Committee on Taxation, the elimination of the tax deduction would result in $2.9 billion in savings over 5 years. My amendment targets the savings from the elimination of the disallowance to programs to prevent alcohol abuse among our Nation's young people and to educate children about alcohol. The Substance Abuse and Mental Health Services Administration would be given increased funds to supplement programs to prevent the use of alcohol among young people and to fund a media campaign designed to counteract the constant bombardment to which our children are subjected daily by alcohol advertisements. It is important to give our children information about the risks associated with the consumption of alcohol. We should not sit idly by and leave unchallenged the messages of alcoholic beverage advertisements that only good things happen to those who drink alcohol. This amendment will also direct funding to the Centers for Disease Control and Prevention to carry out a comprehensive strategy to prevent alcohol-related disease and disability. The CDC would be given authority to enhance and expand fetal alcohol syndrome prevention activities throughout the Nation. According to the NIAAA, fetal alcohol syndrome is estimated to affect from one to three children out of every 1,000 live births. To address the distressing problem of alcohol-impaired driving, the National Highway Traffic Safety Administration's alcohol-impaired driving incentive grant program, previously known as section 410, would receive additional funding. Funding is also made available to NTSA to launch a media campaign about the perils of driving under the influence. The Indian Health Service will receive funding for its alcohol abuse programs to address the issue of alcohol abuse, which has such a devastating effect on the first Americans. I don't refer to them as native Americans. I don't refer to them as native Americans. I am a native American. If I am not a native American, of what country am I a native? I refer to them as the original Americans, or the first Americans. The harm that alcoholic beverages cause our Nation is not a second- rate hangover, but a serious affliction that kills more than 100,000 people each year. By adopting this amendment, we would be making a positive effort to improve the health of our Nation, particularly of our children, and to send a sober message to those who are capitalizing on profits generated by recklessly advertising alcoholic beverages through far-reaching and seductive means, such as television. We should act in the best interests of the American people and announce ``last call'' to those who have been receiving tax breaks for peddling booze, take a step in the right direction and begin to repair some of the damage brought by alcohol in this country. Let us begin by putting a cork in the tax loophole that has left American taxpayers picking up the tab for the alcohol industry. Now, Mr. President, I am very well aware that a point of order will be made, or can be made. I am well aware of that. But I think the debate has to start at some point. I think that point is now. We hear a great deal about tobacco and we hear a great deal about children, about children's health. I hope those who support those programs and talk much about them would support this effort. We are talking here about children's health. We are talking here about something that kills 100,000 people every year. I am not seeking to ban alcohol. I am not seeking to regulate alcohol. I am simply seeking to end the subsidization by the taxpayers of this country of alcohol. Think about it. Think about it on your way home tonight as you drive out the George Washington Parkway and see someone in front of you wobbling from one side of the road to the other. Think again. Suppose your wife is up at Tyson's Corner getting ready to drive home with the children and that same fellow who was in front of your car wobbling may kill your wife and your children. So let's start talking about it. Let's start airing the subject here. Let's stop putting it behind the curtain, putting it under the rug, saying it is taboo. It is not. It is not taboo. Think about our children, our grandchildren. This is the product that kills other people. Tobacco may kill me. Tobacco may kill the individual who smokes it. But alcohol may not kill the person who imbibes; it may kill the innocent--the driver in the other car. So I hope that Senators will support my amendment. As I say, I am sure that there is a process or a motion available, but I am accustomed to those things. I say let the Senate work its will. I yield the floor. Mr. ROTH addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Mr. ROTH. I yield 5 minutes to the distinguished Senator from Kentucky. The PRESIDING OFFICER. The Senator from Kentucky is recognized. Mr. McCONNELL. Mr. President, I thank the chairman of the Finance Committee for yielding me a few moments. I listened very carefully to my good friend and colleague from West Virginia and to his observations about the dangers of drinking and driving, with which I completely concur. Of course, representing Kentucky, as my friend from West Virginia knows, not only do we have 60,000 tobacco growers, which is, of course, the subject of a number of amendments that may come on this bill; we are also the home of bourbon. If this kind of whiskey is not made in Kentucky, it cannot be called bourbon. Let me suggest that there are no industries--and I checked with the Finance Committee staff--that have been singled out by law and, as a result of being singled out, are not allowed to deduct their expenses for advertising. So this would be a first. To begin with, as a matter of tax policy, certain kinds of legal industries are not allowed to deduct their advertising, and others are. There is also--while we are thinking of both cigarettes and alcohol-- another important distinction. There is no argument that misuse of alcohol is a problem in this country. As a Senator from a tobacco- producing State, I never make the argument that smoking cigarettes is good for you. Obviously, it isn't. But there are many in the medical profession who would say that the consumption of alcohol, if used properly--properly--is actually good for you. I am not a physician, I can't make that argument, but there is a growing argument being made by many in the medical community that a certain amount of alcohol, properly used, is actually good for you health, not bad for your health. So we have here a legal product, Mr. President, which, arguably, if properly used, might actually be good for you, which the distinguished Senator from West Virginia, I gather, is saying when misused, of course, is clearly a terrible thing and a disaster not only for the person misusing it, but for others who may be affected by that, and that because a product may be misused, the Government should step in and say: Your advertising is not allowed. Regardless of how you may feel about this---- Mr. BYRD. Will the Senator yield? Mr. McCONNELL. Yes. Mr. BYRD. For a correction only. My amendment does not say your advertising will not be allowed. I am not saying that at all. The alcohol industry may continue to advertise. I am just saying, let's stop the subsidization of that advertising, the subsidization by the taxpayers. Mr. McCONNELL. I thank the Senator. I think I did understand his [[Page S6446]] amendment to disallow a deductibility for advertising, which would make this the only industry of which the Finance Committee is aware where such deductibility would be disallowed. Aside from my home State and the product, which, if properly used, might actually be good for you, I wonder if my friend from West Virginia doesn't share my concern that once we go in this direction, we might find other activities that some may find offensive being subject to the same kinds of efforts to disallow deductibility for certain kinds of business expenses. I think, for example, West Virginia and Kentucky used to trade back and forth in terms of coal production. One year West Virginia would be first; the next year Kentucky would be the first. Alas, neither are first anymore. Wyoming is. But there are many Americans who think, as a result of the burning of coal, that the area is polluted and that, as a result of that, people contract lung problems. In fact, there is an initiative by the Clinton administration just announced this week which the Senator from West Virginia and I both have serious reservations about designed to cut down on air pollution--so the argument goes--so there will be less lung disease. I wonder, if we go down this path of trying to pick out which industries' deductions for certain kinds of business expenses are to be allowed or not allowed based upon our judgment about what is harmful to the public, whether or not somebody might come in and say, ``Well, we shouldn't allow production costs associated with the mining of coal to be deductible because, after all, the burning of coal leads to the pollution of the air, which then leads to lung disease, which then leads to death.'' I just am concerned that this is a step in the wrong direction. I understand fully the concerns of the Senator from West Virginia, and I share them. I think the use of alcohol leads to a great deal of tragedy. But I hope we will not single out this legal industry producing a product, which, if properly used, many people in the medical field feel is actually good for you, for this kind of selective treatment on deductibility. Finally, let me say that I am not an expert on the budget deal. But it is clear that there is a lot of momentum in this body to hold the deal together, and this is clearly not part of the budget deal. I hope that the proposal will not be approved, in all due respect to my good friend and colleague from West Virginia. I hope this would not become part of the measure before us. I yield the floor. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, may I say that I fully understand the economic impact of the tobacco industry on the State of the distinguished Senator who has just spoken. West Virginia grows good tobacco crops as well, and the income from those tobacco crops certainly impact upon many families in many counties of West Virginia. We are talking about here, though, a product that results in the maiming and in the killing of people--innocent men, women, and children. The distinguished Senator from Kentucky mentions the carbon dioxide emissions and other greenhouse gas emissions and possible implications of those emissions on health. People who breathe that air may well, indeed, suffer an adverse impact on their health. But they don't go out and maim. They don't go out and drive an automobile, lose their proper judgment, and end up killing innocent people. They do not go home and abuse their spouses if they smoke cigarettes or if they breathe air blown from them. They don't go home and abuse their children. They don't go home and assault and batter the other members of their family. I am talking about a product that we all know--it is not just this Senator's opinion. We all know when we read the daily newspapers about the effects of drinking and driving. We all read the newspapers in the spring following the graduation exercises at high schools, and we read, with horror, the stories of a few young people who get into an automobile and wrap that automobile around a telephone pole and they are all killed or maimed--maimed for life. That is what we are talking about. I am not talking about singling out an industry. I am talking about an industry that creates a product that is hurtful--not just hurtful to the person who uses it, but endangers, as I said already, the lives of others. We all know that. But I do appreciate the fact that the Senator is from Kentucky, and I respect him for that, and I respect his viewpoint and count him and his fellow Kentuckians as good neighbors. I yield the floor. Mr. ROTH. How much time would the Senator from Montana like? Mr. BURNS. Probably no more than 5 minutes. Mr. ROTH. I yield 5 minutes to the Senator from Montana. The PRESIDING OFFICER. The Senator from Montana. Mr. BURNS. I thank my friend from Delaware. Mr. President, no one on this floor makes his case with such passion as my friend from West Virginia. We have a couple of things in common that we will not go into here. But I also know from where he comes. And when you start talking about this issue of singling out something, then we have to look at probably the real facts. First, there is the presumption in this amendment that somehow the advertising is evil or bad, or that it wreaks health problems on the American people. There is no question in anybody's mind across this land that the abuse of alcohol is one of our greatest problems--no doubt. Yet, there is no scientific evidence that would even suggest the casual relationship between advertising and abuse. In order to get to the root of the problem of alcoholism and all of the problems that it brings, study after study after study has been made in the relationship of advertising. In fact, during the 1980's, when the advertising for alcohol products was increasing, actual consumption per capita actually was decreasing. So not only does advertising not impact abuse, it doesn't even impact the overall consumption. Singling out a product is not, I don't think, what fair tax law is about. So let's be upfront about it, because I am familiar with the broadcast industry. It has economic impacts on small business. It has economic impacts. And once we start singling out products, do we start talking about red meat, eggs, or sugar? Where do we draw the line? The impact it might have on the national pastime? We could say, ``OK, we don't need it in the broadcasting industry. We can all pay for pay-per- view''--the impact on an industry within itself. And the list goes on and on trying to explain to our constituents why different things happen and cost more, because there is a decrease in advertising support in free television. That also brings us our weather, our farm reports, our news, our emergency conditions. All of these things that are supported by free over-the-air broadcasts will be impacted if this amendment is successful. The industry has taken steps to limit or try to curb the abuse that alcohol has on a person or individual. There is no doubt about it. And in some areas some would say it is even working. I know that all of us want a tax cut. All of us want a balanced budget. But to single out and start limiting an ad tax or deductibility for legal products is not the right approach. It is not the right approach--not on a legal product. So I urge my colleagues to oppose this. It is unwarranted. I think it is unwise. And I am not real sure, it might have some constitutional overtones because advertising is still freedom of speech. It cannot be treated differently than any other form. The Senator from West Virginia makes a point. It is the abuse of the product. The advertising has very little to do with the abuse of the product. Thank you, and I urge the defeat of this amendment. I yield the floor. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, the Senator talks about red meat, eggs, and sugar. The Honorable Senator is my friend. Who ever heard of anybody eating red meat, eggs, and sugar, and getting out in the car and having that car plunge into a tree, weave all across the road, and kill and maim other people? Red meat doesn't cause an individual to drive drunk and get in the car and [[Page S6447]] drive all over the highway. Eggs and sugar don't do that in their form as eggs and sugar, in their natural form. The Senator also, I think, made reference to the Federal Trade Commission in 1985, which found ``no reliable basis to conclude that alcohol advertising significantly affects consumption, let alone abuse.'' Well, let's see what the conclusions are from the effects of the mass media on the use and abuse of alcohol. The National Institute of Alcohol Abuse and Alcoholism, U.S. Department of Health and Human Services, Research Monograph-28, 1995: [The] preponderance of the evidence indicates that alcohol advertising stimulates higher consumption of alcohol by both adults and adolescents . . . It appears to be a contributing factor that increases drinking to a modest degree rather than being a major determinant. (Dr. Charles Adkins, Department of Communications, Michigan State University.) Now I shall quote Dr. Sally Casswell, Alcohol and Public Health Research Unit, School of Medicine, University of Aukland: [T]here is sufficient evidence to say that alcohol advertising is likely to be a contributing factor to overall consumption and other alcohol-related problems in the long term. Now quoting Dr. Joel Grube, Prevention Research Center: [A]lcohol advertising can influence children, particularly their beliefs about alcohol and, indirectly, their intentions to drink as adults. Finally, let me quote Dr. Esther Thorson, School of Journalism, University of Missouri: If research were designed to take account of what the advertiser is trying to do and if it examined the relationship between the specific structure of the message and the individual or group for whom that message is targeted, investigators probably would find ``whopping effects''. Mr. President, I appreciate the views that have been expressed by my friend from Montana and, as I have already indicated, by my friend from Kentucky. I appreciate their views, and I respect their views. Mr. President, I don't think there should be any doubts in the minds of any Senator or any person who is viewing this Chamber via that electronic eye that the drinking of alcohol affects the judgment of people, and that there are many other costs that are not tangible, that cannot be translated into dollars and cents-- the cost of lost productivity, the cost of broken homes, the cost of children abused. And I could go on. I have made my case, and I ask for the yeas and nays on my amendment. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. Mr. BYRD. I yield back the balance of my time. The PRESIDING OFFICER. The Senator from Delaware has the remaining time. Mr. ROTH. Mr. President, I yield back the remainder of my time, and I make the point of order that the pending amendment is not germane to the provisions of the reconciliation measure and I therefore raise a point of order against the amendment under section 305(b)(2) of the Budget Act. Mr. BYRD. Mr. President, I move to waive the point of order and ask for the yeas and nays on my motion. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. The PRESIDING OFFICER. There is an hour equally divided on the motion. Mr. BYRD. Mr. President, I yield back my time. Mr. ROTH. Mr. President, I yield back the balance of my time. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question is on agreeing to the motion to waive. The yeas and nays have been ordered. The clerk will call the roll. The bill clerk called the roll. Mr. McCAIN (when his name was called). Present. Mr. NICKLES. I announce that the Senator from Kansas [Mr. Roberts], is necessarily absent. The PRESIDING OFFICER. Are there any other Senators in the Chamber who desire to vote? The yeas and nays resulted--yeas 12, nays 86, as follows: [Rollcall Vote No. 136 Leg.] YEAS--12 Bumpers Byrd Cleland DeWine Glenn Hatch Helms Kennedy Rockefeller Sarbanes Thurmond Wellstone NAYS--86 Abraham Akaka Allard Ashcroft Baucus Bennett Biden Bingaman Bond Boxer Breaux Brownback Bryan Burns Campbell Chafee Coats Cochran Collins Conrad Coverdell Craig D'Amato Daschle Dodd Domenici Dorgan Durbin Enzi Faircloth Feingold Feinstein Ford Frist Gorton Graham Gramm Grams Grassley Gregg Hagel Harkin Hollings

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REVENUE RECONCILIATION ACT OF 1997
(Senate - June 26, 1997)

Text of this article available as: TXT PDF [Pages S6440-S6473] REVENUE RECONCILIATION ACT OF 1997 The Senate continued with the consideration of the bill. Amendment No. 537 Mr. DOMENICI. How much time do I have on the amendment? The PRESIDING OFFICER. Forty-four minutes. Mr. DOMENICI. And the opposition has 44 minutes? The PRESIDING OFFICER. Sixty minutes. Mr. DOMENICI. So we have used 16. Actually, unless Senator Lautenberg has anything further to say, I believe I have stated the case for the Domenici-Lautenberg amendment No. 537. Does Senator Gramm want to offer an amendment to the amendment? Mr. GRAMM. I think Senator Biden is going to offer an amendment first, and after his amendment is disposed of, then I will have an amendment, as will several other people. Mr. BIDEN addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Mr. BIDEN. Madam President, I wonder if the Democratic manager would yield me time off the bill. Mr. DOMENICI. The Senator has time on his amendment. Mr. BIDEN. Parliamentary inquiry. Can I get time in my own right? Mr. DOMENICI. I yield back my time. The PRESIDING OFFICER. The time is controlled by Senator Domenici and Senator Roth. Mr. LAUTENBERG. I yield back my time. The PRESIDING OFFICER. Is all time yielded back? Mr. DOMENICI. We yielded back our time. Mr. BIDEN addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Amendment No. 539 to Amendment No. 537 Mr. BIDEN. Madam President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report. The assistant legislative clerk read as follows: The Senator from Delaware [Mr. Biden], for himself and Mr. Gramm, proposes an amendment numbered 539 to amendment No. 537. Mr. BIDEN. Madam President, I ask that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: On page 43 of the amendment, strike lines 14 through 21 and insert the following: ``(5) with respect to fiscal year 2001-- ``(A) for the discretionary category: $537,677,000,000 in new budget authority and $558,460,000,000 in outlays; and ``(B) for the violent crime reduction category: $4,355,000,000 in new budget authority and $5,936,000,000 in outlays; ``(6) with respect to fiscal year 2002-- ``(A) for the discretionary category: $546,619,000,000 in new budget authority and $556,314,000,000 in outlays; and ``(B) for the violent crime reduction category: $4,455,000,000 in new budget authority and $4,485,000,000 in outlays; as adjusted in strict conformance with subsection (b).''. (2) Transfers into the fund.--On the first day of the following fiscal years, the following amounts shall be transferred from the general fund to the Violent Crime Reduction Trust Fund-- (A) for fiscal year 2001, $4,355,000,000; and (B) for fiscal year 2002, $4,455,000,000. Mr. BUMPERS. Will the Senator from Delaware yield for an inquiry for a moment? Mr. BIDEN. I would be happy to. Mr. BUMPERS. Could the managers of this bill tell us how many second- degree amendments there are to this process? I assume we are on the second-degree amendment process; is that correct? The PRESIDING OFFICER. That is correct. Mr. BUMPERS. Could the managers tell us how many second-degree amendments they anticipate on this? Mr. DOMENICI. I do not know. Mr. GRAMM. I believe there will be four. Senator Biden will offer one for himself. Once that is adopted, I will offer a second-degree amendment. And [[Page S6441]] then we have two other Senators who want to offer second-degree amendments, so they will be seriatim. Mr. BUMPERS. Then there are five, because I have one also. I am just wondering if we could get some kind of sequence so we know how they are going to be offered so we do not spend the rest of our lives waiting. Mr. DOMENICI. I say to the Senator, you can be assured there will be four ahead of you, if you would like to be fifth. Mr. BUMPERS. I thank the Senator for his courtesy. Mr. GRAMM. Why don't you do yours last? Mr. DOMENICI. That is what I said. Mr. BIDEN. Madam President, the second-degree amendment I have at the desk is very simple and straightforward. The Senator from New Mexico is introducing a budget process amendment, and what the amendment of Senator Gramm and myself does is, quite frankly, it merely extends the crime law trust fund for the extension of this agreement. I am told by the staffs of the majority and minority that in the budget process agreement that was agreed to with the administration, there is a line on page 90 of the concurrent resolution of the budget fiscal year 1998. On page 90, it says, ``Retain current law on separate crime caps at levels shown in the agreement tables.'' All we are doing here is extending the crime law trust fund. We are not making judgments on how that will be disbursed within the trust fund. We are just extending the trust fund to the extent of this agreement. And, Madam President, as I offer this amendment, we are maintaining a commitment to one of the few specific ways the reconciliation package can, by virtue of the type of legislation it is, maintain a commitment. The commitment we made was to fight violent crime. And, ironically, it is working. It is working. And so for us now to extend the violent crime trust fund, let it expire 2 years before this budget agreement expires, means we are going to be back at it again in the year 2000 or before, fighting over something we now know works. So I realize we can take a long time debating this. But the bottom line is this: We are not suggesting, as the Senator from New Mexico knows, how this trust fund money within the caps will be disbursed; merely that we have the continuation of the trust fund as long as the budget agreement to the year 2002. Of all the priorities addressed in this budget package, I believe that none is more important than continuing our fight against violent crime and violence against women. The amendment I am offering, along with Senator Gramm seeks to maintain this commitment in one of the few specific ways this reconciliation package can--by virtue of the type of legislation this is--maintain this commitment. That is by extending the violent crime control trust fund will continue through the end of this budget resolution, fiscal year 2002. Senator Byrd, more than anyone, deserves credit for the crime law trust fund. Senator Byrd worked to develop an idea that was simple as it was profound--as he called on us to use the savings from the reductions in the Federal work force of 272,000 employees to fund one of the Nation's most urgent priorities: fighting the scourge of violent crime. Senator Gramm was also one of the very first to call on the Senate to ``put our money where our mouth was.'' Too often, this Senate has voted to send significant aid to State and local law enforcement--but, when it came time to write the check, we did not find nearly the dollars we promised. Working together in 1993, Senator Byrd, myself, Senator Gramm, and other Senators passed the violent crime control trust fund in the Senate. And, in 1994, it became law in the Biden crime law. Since then, the dollars from the crime law trust fund have: Helped add more than 60,000 community police officers to our streets; helped shelter more than 80,000 battered women and their children; focussed law enforcement, prosecutors, and victims service providers on providing immediate help to women victimized by someone who pretends to love them; forced tens of thousands of drug offenders into drug testing and treatment programs, instead of continuing to allow them to remain free on probation with no supervision and no accountability; constructed thousands of prison cells for violent criminals; and brought unprecedented resources to defending our Southwest border-- putting us on the path to literally double the number of Federal border agents over just a 5-year period. The results of this effort are already taking hold: According to the FBI's national crime statistics, violent crime is down and down significantly--leaving our nation with its lowest murder rate since 1971; the lowest violent crime total since 1990; and the lowest murder rate for wives, ex-wives, and girlfriends at the hands of their intimates to an 18-year low. In short, we have proven able to do what few thought possible--by being smart, keeping our focus, and putting our ``money where our mouths'' are--we have actually cut violent crime. Today, our challenge is to keep our focus and to stay vigilant against violent crime. Today, the Biden-Byrd-Gramm amendment before the Senate offers one modest step toward meeting that challenge: By assuring that the commitment to fighting crime and violence against women will continue for the full duration of this budget resolution. By assuring that the violent crime control trust fund will continue-- in its current form which provides additional Federal assistance without adding 1 cent to the deficit--through 2002. The Biden-Gramm amendment offers a few very simple choices: Stand up for cops--or don't; stand up for the fight against violence against women--or don't; and stand up for increased border enforcement--or don't. Every Member of this Senate is against violence crime--we way that in speech after speech. Now, I urge all my colleagues to back up with words with the only thing that we can actually do for the cop walking the beat, the battered woman, the victim of crime--provide the dollars that help give them the tools to fight violent criminals, standup to their abuser, and restore at least some small piece of the dignity taken from them at the hands of a violent criminal. Let us be very clear of the stakes here--frankly, if we do not continue the trust fund, we will not be able to continue such proven, valuable efforts as the violence against women law. Nothing we can do today can guarantee that we, in fact, will continue the Violence Against Women Act when the law expires in the year 2000. But, mark my words, if the trust fund ends, the efforts to provide shelter, help victims, and get tough on the abusers and barterers will wither on the vine. Passing the amendment I offer today will send a clear, unambiguous message that the trust fund should continue and with it, the historic effort undertaken by the Violence Against Women Act that says by word, deed, and dollar that the Federal Government stands with women and against the misguided notion that ``domestic'' violence is a man's ``right'' and ``not really a crime.'' I urge my colleagues to support the Biden-Gramm amendment. At the appropriate time--and I am not quite sure yet when is appropriate--I will ask for the yeas and nays on this. But make no mistake about it, what we are voting on here is whether or not we are going to commit now to the extension of the trust fund, the violent crime trust fund, for the extent of this agreement. That is all this does. That is everything it does, but that is all it does. Mr. DOMENICI addressed the Chair. The PRESIDING OFFICER (Mr. Bennett). The Senator from New Mexico. Amendment No. 537, Withdrawn Mr. DOMENICI. Mr. President, I withdraw my amendment. The PRESIDING OFFICER. The amendment is withdrawn. The amendment (No. 537) was withdrawn. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. Under the previous order, the Senator from West Virginia is recognized. [[Page S6442]] Amendment No. 540 (Purpose: To eliminate tax deductions for advertising and promotion expenditures relating to alcoholic beverages and to increase funding for programs that educate and prevent the abuse of alcohol among our Nation's youth) Mr. BYRD. Mr. President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report. The assistant legislative clerk read as follows: The Senator from West Virginia [Mr. Byrd] proposes an amendment numbered 540. Mr. BYRD. Mr. President, I ask unanimous consent that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the end of the bill, add the following: TITLE --ALCOHOL ADVERTISING RESPONSIBILITY ACT SEC. 01. SHORT TITLE. This title may be cited as the ``Alcohol Advertising Responsibility Act''. SEC. 02. FINDINGS AND PURPOSES. (a) Findings.--Congress finds that-- (1) alcohol is used by more Americans than any other drug; (2) it is estimated that the costs to society from alcoholism and alcohol abuse were approximately $100,000,000,000 in 1990 alone. (3) in 1995, the alcoholic beverage industry spent $1,040,300,000 on advertising, while the National Institute for Alcohol Abuse and Alcoholism was funded at only $181,445,000; (4) more than 100,000 deaths each year in the United States result from alcohol-related causes; (5) 41.3 percent of all traffic facilities in 1995, or 17,274 deaths, were alcohol related; (6) in addition to severe health consequences, alcohol misuse is involved in approximately 30 percent of all suicides, 50 percent of homicides, 68 percent of manslaughter cases, 52 percent of rapes and other sexual assaults, 48 percent of robberies, 62 percent of assaults, and 49 percent of all other violent crimes; (7) approximately 30 percent of all accidental deaths are attributable to alcohol abuse; (8) alcohol advertising may influence children's perceptions toward an inclinations to consume alcoholic beverages; (9) 26 percent of eighth graders, 40 percent of tenth graders, and 51 percent of twelfth graders report having used alcohol in the past month; and (10) college presidents nationwide view alcohol abuse as their paramount campus-life problem. (b) Purposes.--The purposes of this title are-- (1) to repeal the existing tax subsidization for expenses incurred to promote the consumption of alcoholic beverages; (2) to reduce the amount of alcohol advertising to which our Nation's youth are exposed; and (3) to increase funding for those programs that educate and prevent the abuse of alcohol among our Nation's youth. SEC. 03. DISALLOWANCE OF DEDUCTION FOR ADVERTISING AND PROMOTION EXPENSES RELATING TO ALCOHOLIC BEVERAGES. (a) In General.--Part IX of subchapter B of chapter 1 (relating to items not deductible) is amended by adding at the end of the following: SEC. 280I. ADVERTISING AND PROMOTION EXPENDITURES RELATING TO ALCOHOLIC BEVERAGES. ``(a) In General.--No deduction otherwise allowable under this chapter shall be allowed for any amount paid or incurred to advertise or promote by any means any alcoholic beverage. ``(b) Alcoholic Beverage.--For purposes of this section, the term `alcoholic beverage' means any item which is subject to tax under subpart A, C, or D of part I of subchapter A of chapter 51 (relating to taxes on distilled spirits, wines, and beer).''. (b) Conforming Amendment.--The table of sections for part IX of subchapter B of chapter 1 is amended by adding at the end the following: ``Sec. 280I. Advertising and promotion expenditures relating to alcoholic beverages.''. (c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31 of the year in which this Act is enacted. SEC. 04. ALCOHOL ABUSE EDUCATION AND PREVENTION AMONG YOUTH. (a) In General.--Subject to subsection (c), there shall be transferred, from funds in the Treasury not otherwise appropriated, to the entities described in subsection (b) amounts to the extent specified under subsection (b). (b) Education and Prevention Programs.-- (1) Substance abuse and mental health services administration.--The amounts specified in this subsection shall be: (A) In general.--With respect to the Substance Abuse and Mental Health Services Administration, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to supplement substance abuse prevention activities authorized under section 501 of the Public Health Service Act (42 U.S.C. 290aa). (B) Use of funds.--Amounts provided to the Substance Abuse and Mental Health Services Administration under subparagraph (A) shall be used directly or through grants and cooperative agreements to carry out activities to prevent the use of alcohol among youth, including the development and distribution of public service announcements. (2) Centers for disease control and prevention.-- (A) In general.--With respect to the Centers for Disease Control and Prevention, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to carry out a comprehensive strategy to prevent alcohol-related disease and disability. (A) Required uses.--In carrying out the comprehensive strategy under subparagraph (A), the Centers for Disease Control and Prevention shall-- (i) enhance and expand State-based and national surveillance activities to monitor the scope of alcohol use among the youth of the United States; (ii) enhance comprehensive school-based health programs that focus on alcohol use prevention strategies; (iii) develop and distribute commercial advertising to prevent alcohol abuse among youth; and (iv) enhance and expand Fetal Alcohol Syndrome prevention activities throughout the United States. (3) National highway traffic safety administration.--With respect to the National Highway Traffic Safety Administration, and in addition to any funds authorized from the Highway Trust Fund, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to carry out programs under sections 402, 403, and 410 of title 23, United States Code, and to develop and implement a paid media campaign targeting high-risk youth populations to improve the balance of media messages related to alcohol impaired driving. (4) Indian health service.--With respect to the Indian Health Service, $40,000,000 for fiscal year 1998, $60,000,000 for fiscal year 1999, $60,000,000 for fiscal year 2000, $70,000,000 for fiscal year 2001, and $70,000,000 for fiscal year 2002, to supplement the programs that such Service is authorized to carry out pursuant to titles II and III of the Public Health Service Act (42 U.S.C. 202 et seq., 241 et seq.). (c) Authority to Transfer Funds.--The Committee on Appropriations of the House of Representatives and the Committee on appropriations of the Senate, acting through appropriations Acts, may transfer the amount specified under subsection (b) in each fiscal year among the entities referred to in such subsection. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, would the Chair indulge me momentarily? I protect my right to the floor. The PRESIDING OFFICER. The Senator from West Virginia will be protected in his right to the floor. Mr. DURBIN addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia has the floor. Mr. BYRD. I thank the Chair. Mr. President, last Friday negotiators from the tobacco industry and State attorneys general announced the landmark agreement addressing the impact of tobacco use on our Nation, particularly our young people. Although this important deal will likely face many obstacles and has a long way to go toward implementation, it is an unprecedented first step toward curbing tobacco use and paying for the harm caused by that use. This process has caused our Nation to focus on an important public health danger and is an important step in working toward a meaningful solution. While I applaud the action being taken to address the pernicious health effects of tobacco, I am concerned that its evil twin, which also has a staggering impact on our Nation, is to a large measure being ignored. Mr. President, the cost of alcohol abuse to our country is staggering. According to the National Institute on Alcohol Abuse and Alcoholism of the National Institutes of Health, alcohol is used by more Americans than any other drug. And the results are devastating. The flood tide of alcohol causes more than 100,000 deaths each year in the United States. Alcohol abuse and alcoholism imposes approximately $100 billion in cost each year on society. Links have been found between alcohol abuse and cirrhosis of the liver, as well as other harmful health conditions. Alcohol is a contributing factor in assaults, murders and other violent crimes, including fatal drinking and driving accidents. At the bottom of every empty bottle is another family in crisis, another career being destroyed, or another dream washed away. [[Page S6443]] The amendment I am offering today would eliminate the tax deduction for alcoholic beverage advertising expenditures. In addition, it would increase funding for a number of programs that educate and prevent the abuse of alcohol among our Nation's youth. What should be of the utmost of our concern in our Nation is the impact of alcohol on our children and our grandchildren. I am introducing this amendment on behalf of the children who died because they were drinking and driving, and on behalf of the millions of children who are drinking right now without the full appreciation of what they are doing to themselves and what they could potentially do to others. Alcohol is the drug of choice among teenagers. Mr. President, more specifically, and looking at this chart compiled by the National Center on Addiction and Substance Abuse, the use of alcohol by our Nation's youth is highlighted among different age groups, including children between the ages of 12 and 17. Among children between the ages of 16 and 17, 69.3 percent have at one point in their lifetimes experimented with alcohol. Clearly, as made evident by these alarming statistics, alcohol is the leading problem among teenagers--not marijuana, not cocaine. In the last month, approximately 8 percent of the Nation's eighth graders have been drunk--have been drunk. We are talking about eighth graders, 13 years old--13-year-olds. I never heard of such a thing when I was in my teens, as a young man, or in my middle age. We are talking about eighth graders, 13-year-olds. Every State has a law prohibiting the sale of alcohol to individuals under the age of 21. How is it then that two out of every three teenagers who drink report that they can buy their own alcoholic beverages? The youth of this country, who at the delicate age of 15 should be enriching their minds with schoolwork, improving their bodies with exercise, and discovering the wonders of life through God and family values, instead are experimenting and endangering themselves with booze. Junior and senior high school students drink 35 percent of all wine coolers and consume 1.1 billion cans of beer a year. I know, because I pick some of them up off my lawn--I am talking about the beer cans, not the young people. I will repeat what is common knowledge to us all: Every State has a law prohibiting the sale of alcohol to individuals under the age of 21. Alcohol is a factor in the three leading causes of death for 15- to 24- year-olds--the three leading causes--accidents, homicides, suicide. In approximately 50 percent to 60 percent of youth suicides, alcohol is involved. Links have been shown between alcohol use and teen pregnancies and sexually transmitted diseases. Eighty percent of the teenagers do not know that a can of beer has the same amount of alcohol as a shot of whiskey or a glass of wine. By the time they are in college, 40 percent have binged on alcohol during the previous 2 weeks. In 1994, 8.9 percent--almost 95,000--of the clients admitted to alcohol treatment programs that received at least part of their funding from the State were under the age of 21, including over 1,000 under the age of 12. And 31.9 percent of youth under the age of 18 in long-term State-operated juvenile institutions were under the influence of alcohol at the time of their arrest. While our Nation's education system needs repair, it seems that our society has been successful in teaching these kids something. The problem is that what we have taught them is deadly. Drinking impairs one's judgment. We all know that. Nobody will dispute that. Alcohol mixed with teenage driving is a lethal, a lethal combination. We read about it all the time in the Washington Post, the Washington Times, and every newspaper in the land. In 1995, there were 1,666 alcohol-related fatalities of children between the ages of 15 and 19. The total number of alcohol-related fatalities that year was 17,274. Mr. President, for many years I have taken the opportunity, when addressing groups of young West Virginians, to warn them about the dangers of alcohol. I supported legislative efforts to discourage people, particularly young people, from drinking any alcohol. For example, 2 years ago I authored an amendment that requires States to pass the zero-tolerance laws that will make it illegal for persons under the age of 21 to drive a motor vehicle if they have a blood alcohol level greater than .02 percent. This legislation not only helps to save lives but it also sends a message to our Nation's youth that drinking and driving is wrong, that it is a violation of the law, and that it will be appropriately punished. Unfortunately and tragically, we all know someone, whether it is a family member or a friend or an acquaintance, whose life has been cut short by a drunk driver. These are senseless losses that are devastating to the families and the friends who are left behind. As if the aforementioned statistics about youth alcohol use and the results of that use are not frightening enough, young people who consume alcohol are more likely to use other drugs. On the chart to my left, Senators will note these statistics, compiled by the National Center on Addiction and Substance Abuse at Columbia University, statistics which show that 37.5 percent of young people who have consumed alcohol have used some other illicit drug, versus only 5 percent of young people who have never consumed alcohol; 26.7 percent of those who have consumed alcohol have tried marijuana, versus 1.2 percent of those who have never consumed alcohol; 5 percent of youths who have partaken of alcohol have tried cocaine, while only 0.1 of 1 percent of those who do not drink have used cocaine. So it is not a question that is even debatable that youths who drink alcohol are more likely to use other drugs. Mr. President, as the aforementioned facts and figures indicate, alcohol exacts a tremendous cost on our society. These costs are not always clear-cut. For example, consider the costs of the lost productivity of a person showing up at work on a Monday morning with a hangover and inadequately performing his or her job, perhaps making a mistake that results in injury. How many of us would like to ride in the automobile that was made on such a Monday morning? How many of us would like to fly on the airplane whose maintenance man or woman, whose mechanic was on a binge the previous day? While there is no way to accurately gauge the enormous costs that alcohol exacts upon our society, there can be no doubt that the pleasures of alcohol consumption exacts a considerable price on our Nation. The purpose of the amendment that I introduce today is simple. My proposal would simply tell all producers of alcoholic beverages that they can no longer deduct the costs of their advertising expenditures on those products from their Federal income tax liability. While advertising is generally deductible as a legitimate business expense, I believe there exists a moral, legitimate reason to create an exception for producers of alcoholic beverages whose products exact such considerable costs on our society. My proposal would not make illegal any advertising of alcoholic beverages. It does not say that any advertising of alcoholic beverages is unconstitutional. It does not attempt to ban such advertisements, nor would it create any additional Federal bureaucracy to regulate alcohol products. Rather, it would simply end the American taxpayers' subsidization of alcohol advertising by amending the Internal Revenue Code of 1986 to include a disallowance of any deduction for any amount paid or incurred to advertise or promote by any means any alcoholic beverage. This is not a sin tax. It is, rather, an end to the sin subsidy that has left American taxpayers footing the bill for both alcohol advertising and the high health care costs inflicted on society by alcohol consumption. Now there may be those who argue that it is wrong to single out alcohol advertising expenses. I counter that with the question: What other product, with the possible exception of tobacco, costs society $100 billion each year? What other product results in more than 100,000 deaths each year in the United States? The statistics are indeed staggering. Mr. President, in these complicated times, the innocence of youth, the innocence of youth is dashed away at an early age by the irreverent messages spewing from the television set. Profanity and violence on television programming are interrupted only by the aggressive commercials seeking to influence viewers in the name of profit. [[Page S6444]] Our impressionable youth, pressured by the self-indulgent motives of revenue-hungry corporations are bombarded by countless images glorifying an unrealistic view of reality, often insincerely portraying alcoholic beverages as an ingredient for ideal lifestyles. Our children are besieged with the message that if you drink you will attract beautiful women, if you drink you will be popular, if you drink you will excel at sports. Are these the images of reality or do they leave out something important? Do they leave out some important facts about alcohol consumption? What about the negative and all too prevalent results of alcohol consumption--the hangovers that result in lost productivity, the tragic deaths, the injuries caused by a drunk behind the wheel, the hospital visits for alcohol poisoning, the horrible effects of cirrhosis of the liver and the families torn apart by alcohol abuse. The industry indicates that their advertisements do not target young people, although this is debatable. A January Wall Street Journal article, detailing a competitive media reporting survey commissioned by the Journal, found that beer advertisements are often aired during programs that are watched by large numbers of adolescents. The findings of this survey are extremely disturbing. In one example, referenced in the article, a beer ad ran during the airing of a popular cartoon show on the MTV station of which 69 percent of the audience was comprised of children under the age of 21. Mr. President, I ask unanimous consent to have printed in the Record the Wall Street Journal article. There being no objection, the article was ordered to be printed in the Record, as follows: [From the Wall Street Journal] Are Beer Ads on Beavis and Butt-Head Aimed at Kids? (By Sally Beatty) When a commercial for Schlitz Malt Liquor appeared last year on MTV during ``My So-Called Life,'' a show about teenage girls, beer maker Stroh called the airing an aberration. Even as the ad helped launch a Federal Trade Commission probe into alcohol advertising to children, Stroh said it had a longtime policy of aiming ads only at adults of legal drinking age; MTV said the ad ran by mistake because of a last-minute programming switch. In fact, the commercial was hardly an isolated event. Despite the beer industry's insistence that it doesn't target kids, its commercials regularly wash over underage viewers. A survey by Competitive Media Reporting for the Wall Street Journal showed that during one arbitrarily chosen week--the first week of September--youths under the drinking age made up the majority of the audience for beer commercials on several occasions. For instance, Molson beer was advertised during a 10 p.m. episode of ``Beavis & Butt-Head,'' the popular MTV cartoon series about two obnoxious teens. Fully 69% of all the episode's viewers that night were under 21--the legal drinking age in all 50 states--according to Nielsen Media Research's widely used ratings data. Molson, which is marketed in the U.S. by Philip Morris's Miller Brewing, also advertised on MTV's racy youth dating show, ``Singled Out,'' just after 7 p.m., when 52% of the audience was under 21. And Stroh advertised Schlitz Malt Liquor during MTV's prime-time music-video show at 8:30 p.m., when 56% of the audience was under 21. That same week, Adolph Coors ran two ads on the Black Entertainment Television channel after 8 p.m., when 65% of the audience wasn't old enough to drink. Also that week, Anheuser-Busch ran an ad for its Budweiser brand just after 8:30 p.m. on BET during music-video programming, when 70% of the audience was under 21. These commercials look like clear violations of the chief beer industry trade group's own guidelines for TV ads. ``Beer advertising . . . should not be placed in magazines, newspapers, television programs, radio programs or other media where most of the audience is reasonably expected to be below the legal purchase age,'' states the Beer Institute's published ``advertising and marketing guidelines.'' The industry is pointing to these guidelines in an aggressive lobbying effort against proposed new federal restrictions of beer and liquor advertising. The number of ads reaching kids is ``very troubling,'' says Jodie Bernstein, director of the FTC's bureau of consumer protection and a top official involved with its ongoing probe into alcohol marketing to kids on television. Her bureau enforces laws banning unfair or deceptive ad practices, including a statute that says it's unfair to aim ads at people who aren't legally able to buy the products. A company that runs afoul of such laws can face fines, orders to pull ads and regular FTC screening of future advertising. Ms. Bernstein won't comment on the FTC's probe. However, she says that in any investigation, the commission would look first at whether alcohol advertisers are ``following their own guidelines.'' For example, ``Is it OK if [the percentage of underage viewers] gets up to 70% once in a while? I don't think it's OK.'' And she says the commission would ``never act on just one episode or one mistake--we would act on the pattern.'' Brewers and TV executives insist that it doesn't make sense to evaluate beer ads on a single night's audience. ``Any attempt to analyze the beer industry's media-buying practices by examining only selected broadcast media buys during a one- week period is misleading and simplistic,'' said Miller Brewing in a statement responding to questions about the survey. Miller added that more than 75 percent of the broadcast audience reached by the programming it buys is over 21. At Stroh, officials argue that there's a difference between putting ads in front of kids and targeting them explicitly. ``We understand that when an ad is run it's going to be seen by some people who are under 21 years of age, whether it's a billboard, in a magazine or on TV,'' says Stroh general counsel George Kuehn. ``That does not mean we target the group that is under 21.'' Whether the beer industry advertises to kids became a hotly debated question after the liquor industry last year abandoned its longstanding guidelines banning TV ads. That sparked a national uproar over exposing kids to alcohol ads-- putting the beer industry in the spotlight. In Congress, Rep. Joseph P. Kennedy II (D., Mass.) has introduced legislation that would ban most forms of alcohol advertising from 7 a.m. to 10 p.m., require health warnings on print, radio and TV ads and require alcohol ads that run in publication with a 15% or more youth readership to appear only in black-and-white text. There are already signs that brewers and Madison Avenue are worried about the threat of regulation of beer ads. No. 1 brewer Anheuser-Busch revealed last month that it quietly pulled all its beer advertising from MTV, saying it hoped to ``ensure that our intent is not misperceived in today's climate.'' The Madison Avenue's main trade group, the American Association of Advertising Agencies, recently abandoned its longtime stand against restrictions on ads for products like alcohol and cigarettes. It proposed setting up a new self-regulation committee, warning that the industry otherwise faces a government crackdown on ads for beer and other adult products. But setting reliable guidelines for such ads remains tricky. TV executives argue that Nielsen ratings aren't reliable measures of kid viewership--even though the ratings are the TV industry's gold standard for gauging the cost of ad time. Says John Popkowski, executive vice president in charge of ad sales at MTV Networks: ``If you pick one show on an isolated night you might find one that's an aberration statistically,'' since cable channels' viewership is sometimes relatively small. On the E! Channel, for instance, Miller Brewing ran a Foster's ad on Sept. 2, just before 7:30 p.m., during the show ``Melrose Place.'' That night, 41% of the show's audience was under 21, according to Nielsen. But David T. Cassaro, senior vice president in charge of ad sales for E! Entertainment Television, says that from July 1 to Sept. 29 between 7 p.m. and 8 p.m., only about 28% of E! Entertainment's audience was under 21. Overall, Mr. Cassaro adds, only 19% of E! Entertainment's total audience isn't old enough to drink. ``With networks like BET the numbers are so small that they jump all over the place,'' adds John Goldman, a spokesman for Adolph Coors. ``You take as much care as you can but the programming changes often.'' Mr. Goldman says that in the third quarter, the over-21 audience reached by BET between 7 p.m. and 8 p.m. ranged from 80% to 43%. Mr. Goldman adds that Coors doesn't buy MTV as a matter of company policy. ``We want to avoid any misperception that we're aiming at an underage audience.'' Mr. BYRD. Mr. President, looking at another chart to my left, this chart demonstrates competitive media reporting estimates that the alcoholic beverage industry spent more than $1 billion on alcohol advertising in 1995. In contrast, in 1995, the Federal investment in the National Institute on Alcohol Abuse and Alcoholism was a mere $189.8 million for alcohol research. Does the industry expect us to believe that it would spend this huge amount of money--$1.1 billion--if it were not getting something for that money? Some may argue that this legislation would adversely affect the advertising industry by forcing producers of alcoholic beverages to eliminate their advertising expenditure. Poppycock. I do not believe that this would be the case. Alcoholic beverage producers spend large amounts of money to advertise their products because it encourages people to consume their product and it, therefore, increases sales. Eliminating the advertising deduction will not eliminate the fundamental business practice. By making these advertisements less profitable, this amendment may reduce the overall amount of alcohol advertising in our society. However, let there be no doubt that the alcohol ads will keep on running. You [[Page S6445]] can bet your bottom dollar on that. They will. The difference, however, will be that the American taxpayer will no longer be subsidizing this activity and that the money will go, instead, to getting the other side of the alcohol story out. That is what we need to start doing. We need to start now getting the other side of the alcohol story out. It is perhaps not the most popular thing politically to attempt to do here, but it needs to be done. This amendment is all the more necessary because, last year, the Distilled Spirits Council of the United States decided to reject its self-imposed ban on advertising hard liquor on television and radio. I decried this decision by the Distilled Spirits Council because it is a step backward at a time when our Nation is working to curb alcohol abuse. Now hard liquor advertisements will be flowing over the airwaves. This is not the direction in which our Nation should be moving. According to the Joint Committee on Taxation, the elimination of the tax deduction would result in $2.9 billion in savings over 5 years. My amendment targets the savings from the elimination of the disallowance to programs to prevent alcohol abuse among our Nation's young people and to educate children about alcohol. The Substance Abuse and Mental Health Services Administration would be given increased funds to supplement programs to prevent the use of alcohol among young people and to fund a media campaign designed to counteract the constant bombardment to which our children are subjected daily by alcohol advertisements. It is important to give our children information about the risks associated with the consumption of alcohol. We should not sit idly by and leave unchallenged the messages of alcoholic beverage advertisements that only good things happen to those who drink alcohol. This amendment will also direct funding to the Centers for Disease Control and Prevention to carry out a comprehensive strategy to prevent alcohol-related disease and disability. The CDC would be given authority to enhance and expand fetal alcohol syndrome prevention activities throughout the Nation. According to the NIAAA, fetal alcohol syndrome is estimated to affect from one to three children out of every 1,000 live births. To address the distressing problem of alcohol-impaired driving, the National Highway Traffic Safety Administration's alcohol-impaired driving incentive grant program, previously known as section 410, would receive additional funding. Funding is also made available to NTSA to launch a media campaign about the perils of driving under the influence. The Indian Health Service will receive funding for its alcohol abuse programs to address the issue of alcohol abuse, which has such a devastating effect on the first Americans. I don't refer to them as native Americans. I don't refer to them as native Americans. I am a native American. If I am not a native American, of what country am I a native? I refer to them as the original Americans, or the first Americans. The harm that alcoholic beverages cause our Nation is not a second- rate hangover, but a serious affliction that kills more than 100,000 people each year. By adopting this amendment, we would be making a positive effort to improve the health of our Nation, particularly of our children, and to send a sober message to those who are capitalizing on profits generated by recklessly advertising alcoholic beverages through far-reaching and seductive means, such as television. We should act in the best interests of the American people and announce ``last call'' to those who have been receiving tax breaks for peddling booze, take a step in the right direction and begin to repair some of the damage brought by alcohol in this country. Let us begin by putting a cork in the tax loophole that has left American taxpayers picking up the tab for the alcohol industry. Now, Mr. President, I am very well aware that a point of order will be made, or can be made. I am well aware of that. But I think the debate has to start at some point. I think that point is now. We hear a great deal about tobacco and we hear a great deal about children, about children's health. I hope those who support those programs and talk much about them would support this effort. We are talking here about children's health. We are talking here about something that kills 100,000 people every year. I am not seeking to ban alcohol. I am not seeking to regulate alcohol. I am simply seeking to end the subsidization by the taxpayers of this country of alcohol. Think about it. Think about it on your way home tonight as you drive out the George Washington Parkway and see someone in front of you wobbling from one side of the road to the other. Think again. Suppose your wife is up at Tyson's Corner getting ready to drive home with the children and that same fellow who was in front of your car wobbling may kill your wife and your children. So let's start talking about it. Let's start airing the subject here. Let's stop putting it behind the curtain, putting it under the rug, saying it is taboo. It is not. It is not taboo. Think about our children, our grandchildren. This is the product that kills other people. Tobacco may kill me. Tobacco may kill the individual who smokes it. But alcohol may not kill the person who imbibes; it may kill the innocent--the driver in the other car. So I hope that Senators will support my amendment. As I say, I am sure that there is a process or a motion available, but I am accustomed to those things. I say let the Senate work its will. I yield the floor. Mr. ROTH addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Mr. ROTH. I yield 5 minutes to the distinguished Senator from Kentucky. The PRESIDING OFFICER. The Senator from Kentucky is recognized. Mr. McCONNELL. Mr. President, I thank the chairman of the Finance Committee for yielding me a few moments. I listened very carefully to my good friend and colleague from West Virginia and to his observations about the dangers of drinking and driving, with which I completely concur. Of course, representing Kentucky, as my friend from West Virginia knows, not only do we have 60,000 tobacco growers, which is, of course, the subject of a number of amendments that may come on this bill; we are also the home of bourbon. If this kind of whiskey is not made in Kentucky, it cannot be called bourbon. Let me suggest that there are no industries--and I checked with the Finance Committee staff--that have been singled out by law and, as a result of being singled out, are not allowed to deduct their expenses for advertising. So this would be a first. To begin with, as a matter of tax policy, certain kinds of legal industries are not allowed to deduct their advertising, and others are. There is also--while we are thinking of both cigarettes and alcohol-- another important distinction. There is no argument that misuse of alcohol is a problem in this country. As a Senator from a tobacco- producing State, I never make the argument that smoking cigarettes is good for you. Obviously, it isn't. But there are many in the medical profession who would say that the consumption of alcohol, if used properly--properly--is actually good for you. I am not a physician, I can't make that argument, but there is a growing argument being made by many in the medical community that a certain amount of alcohol, properly used, is actually good for you health, not bad for your health. So we have here a legal product, Mr. President, which, arguably, if properly used, might actually be good for you, which the distinguished Senator from West Virginia, I gather, is saying when misused, of course, is clearly a terrible thing and a disaster not only for the person misusing it, but for others who may be affected by that, and that because a product may be misused, the Government should step in and say: Your advertising is not allowed. Regardless of how you may feel about this---- Mr. BYRD. Will the Senator yield? Mr. McCONNELL. Yes. Mr. BYRD. For a correction only. My amendment does not say your advertising will not be allowed. I am not saying that at all. The alcohol industry may continue to advertise. I am just saying, let's stop the subsidization of that advertising, the subsidization by the taxpayers. Mr. McCONNELL. I thank the Senator. I think I did understand his [[Page S6446]] amendment to disallow a deductibility for advertising, which would make this the only industry of which the Finance Committee is aware where such deductibility would be disallowed. Aside from my home State and the product, which, if properly used, might actually be good for you, I wonder if my friend from West Virginia doesn't share my concern that once we go in this direction, we might find other activities that some may find offensive being subject to the same kinds of efforts to disallow deductibility for certain kinds of business expenses. I think, for example, West Virginia and Kentucky used to trade back and forth in terms of coal production. One year West Virginia would be first; the next year Kentucky would be the first. Alas, neither are first anymore. Wyoming is. But there are many Americans who think, as a result of the burning of coal, that the area is polluted and that, as a result of that, people contract lung problems. In fact, there is an initiative by the Clinton administration just announced this week which the Senator from West Virginia and I both have serious reservations about designed to cut down on air pollution--so the argument goes--so there will be less lung disease. I wonder, if we go down this path of trying to pick out which industries' deductions for certain kinds of business expenses are to be allowed or not allowed based upon our judgment about what is harmful to the public, whether or not somebody might come in and say, ``Well, we shouldn't allow production costs associated with the mining of coal to be deductible because, after all, the burning of coal leads to the pollution of the air, which then leads to lung disease, which then leads to death.'' I just am concerned that this is a step in the wrong direction. I understand fully the concerns of the Senator from West Virginia, and I share them. I think the use of alcohol leads to a great deal of tragedy. But I hope we will not single out this legal industry producing a product, which, if properly used, many people in the medical field feel is actually good for you, for this kind of selective treatment on deductibility. Finally, let me say that I am not an expert on the budget deal. But it is clear that there is a lot of momentum in this body to hold the deal together, and this is clearly not part of the budget deal. I hope that the proposal will not be approved, in all due respect to my good friend and colleague from West Virginia. I hope this would not become part of the measure before us. I yield the floor. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, may I say that I fully understand the economic impact of the tobacco industry on the State of the distinguished Senator who has just spoken. West Virginia grows good tobacco crops as well, and the income from those tobacco crops certainly impact upon many families in many counties of West Virginia. We are talking about here, though, a product that results in the maiming and in the killing of people--innocent men, women, and children. The distinguished Senator from Kentucky mentions the carbon dioxide emissions and other greenhouse gas emissions and possible implications of those emissions on health. People who breathe that air may well, indeed, suffer an adverse impact on their health. But they don't go out and maim. They don't go out and drive an automobile, lose their proper judgment, and end up killing innocent people. They do not go home and abuse their spouses if they smoke cigarettes or if they breathe air blown from them. They don't go home and abuse their children. They don't go home and assault and batter the other members of their family. I am talking about a product that we all know--it is not just this Senator's opinion. We all know when we read the daily newspapers about the effects of drinking and driving. We all read the newspapers in the spring following the graduation exercises at high schools, and we read, with horror, the stories of a few young people who get into an automobile and wrap that automobile around a telephone pole and they are all killed or maimed--maimed for life. That is what we are talking about. I am not talking about singling out an industry. I am talking about an industry that creates a product that is hurtful--not just hurtful to the person who uses it, but endangers, as I said already, the lives of others. We all know that. But I do appreciate the fact that the Senator is from Kentucky, and I respect him for that, and I respect his viewpoint and count him and his fellow Kentuckians as good neighbors. I yield the floor. Mr. ROTH. How much time would the Senator from Montana like? Mr. BURNS. Probably no more than 5 minutes. Mr. ROTH. I yield 5 minutes to the Senator from Montana. The PRESIDING OFFICER. The Senator from Montana. Mr. BURNS. I thank my friend from Delaware. Mr. President, no one on this floor makes his case with such passion as my friend from West Virginia. We have a couple of things in common that we will not go into here. But I also know from where he comes. And when you start talking about this issue of singling out something, then we have to look at probably the real facts. First, there is the presumption in this amendment that somehow the advertising is evil or bad, or that it wreaks health problems on the American people. There is no question in anybody's mind across this land that the abuse of alcohol is one of our greatest problems--no doubt. Yet, there is no scientific evidence that would even suggest the casual relationship between advertising and abuse. In order to get to the root of the problem of alcoholism and all of the problems that it brings, study after study after study has been made in the relationship of advertising. In fact, during the 1980's, when the advertising for alcohol products was increasing, actual consumption per capita actually was decreasing. So not only does advertising not impact abuse, it doesn't even impact the overall consumption. Singling out a product is not, I don't think, what fair tax law is about. So let's be upfront about it, because I am familiar with the broadcast industry. It has economic impacts on small business. It has economic impacts. And once we start singling out products, do we start talking about red meat, eggs, or sugar? Where do we draw the line? The impact it might have on the national pastime? We could say, ``OK, we don't need it in the broadcasting industry. We can all pay for pay-per- view''--the impact on an industry within itself. And the list goes on and on trying to explain to our constituents why different things happen and cost more, because there is a decrease in advertising support in free television. That also brings us our weather, our farm reports, our news, our emergency conditions. All of these things that are supported by free over-the-air broadcasts will be impacted if this amendment is successful. The industry has taken steps to limit or try to curb the abuse that alcohol has on a person or individual. There is no doubt about it. And in some areas some would say it is even working. I know that all of us want a tax cut. All of us want a balanced budget. But to single out and start limiting an ad tax or deductibility for legal products is not the right approach. It is not the right approach--not on a legal product. So I urge my colleagues to oppose this. It is unwarranted. I think it is unwise. And I am not real sure, it might have some constitutional overtones because advertising is still freedom of speech. It cannot be treated differently than any other form. The Senator from West Virginia makes a point. It is the abuse of the product. The advertising has very little to do with the abuse of the product. Thank you, and I urge the defeat of this amendment. I yield the floor. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, the Senator talks about red meat, eggs, and sugar. The Honorable Senator is my friend. Who ever heard of anybody eating red meat, eggs, and sugar, and getting out in the car and having that car plunge into a tree, weave all across the road, and kill and maim other people? Red meat doesn't cause an individual to drive drunk and get in the car and [[Page S6447]] drive all over the highway. Eggs and sugar don't do that in their form as eggs and sugar, in their natural form. The Senator also, I think, made reference to the Federal Trade Commission in 1985, which found ``no reliable basis to conclude that alcohol advertising significantly affects consumption, let alone abuse.'' Well, let's see what the conclusions are from the effects of the mass media on the use and abuse of alcohol. The National Institute of Alcohol Abuse and Alcoholism, U.S. Department of Health and Human Services, Research Monograph-28, 1995: [The] preponderance of the evidence indicates that alcohol advertising stimulates higher consumption of alcohol by both adults and adolescents . . . It appears to be a contributing factor that increases drinking to a modest degree rather than being a major determinant. (Dr. Charles Adkins, Department of Communications, Michigan State University.) Now I shall quote Dr. Sally Casswell, Alcohol and Public Health Research Unit, School of Medicine, University of Aukland: [T]here is sufficient evidence to say that alcohol advertising is likely to be a contributing factor to overall consumption and other alcohol-related problems in the long term. Now quoting Dr. Joel Grube, Prevention Research Center: [A]lcohol advertising can influence children, particularly their beliefs about alcohol and, indirectly, their intentions to drink as adults. Finally, let me quote Dr. Esther Thorson, School of Journalism, University of Missouri: If research were designed to take account of what the advertiser is trying to do and if it examined the relationship between the specific structure of the message and the individual or group for whom that message is targeted, investigators probably would find ``whopping effects''. Mr. President, I appreciate the views that have been expressed by my friend from Montana and, as I have already indicated, by my friend from Kentucky. I appreciate their views, and I respect their views. Mr. President, I don't think there should be any doubts in the minds of any Senator or any person who is viewing this Chamber via that electronic eye that the drinking of alcohol affects the judgment of people, and that there are many other costs that are not tangible, that cannot be translated into dollars and cents-- the cost of lost productivity, the cost of broken homes, the cost of children abused. And I could go on. I have made my case, and I ask for the yeas and nays on my amendment. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. Mr. BYRD. I yield back the balance of my time. The PRESIDING OFFICER. The Senator from Delaware has the remaining time. Mr. ROTH. Mr. President, I yield back the remainder of my time, and I make the point of order that the pending amendment is not germane to the provisions of the reconciliation measure and I therefore raise a point of order against the amendment under section 305(b)(2) of the Budget Act. Mr. BYRD. Mr. President, I move to waive the point of order and ask for the yeas and nays on my motion. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. The PRESIDING OFFICER. There is an hour equally divided on the motion. Mr. BYRD. Mr. President, I yield back my time. Mr. ROTH. Mr. President, I yield back the balance of my time. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question is on agreeing to the motion to waive. The yeas and nays have been ordered. The clerk will call the roll. The bill clerk called the roll. Mr. McCAIN (when his name was called). Present. Mr. NICKLES. I announce that the Senator from Kansas [Mr. Roberts], is necessarily absent. The PRESIDING OFFICER. Are there any other Senators in the Chamber who desire to vote? The yeas and nays resulted--yeas 12, nays 86, as follows: [Rollcall Vote No. 136 Leg.] YEAS--12 Bumpers Byrd Cleland DeWine Glenn Hatch Helms Kennedy Rockefeller Sarbanes Thurmond Wellstone NAYS--86 Abraham Akaka Allard Ashcroft Baucus Bennett Biden Bingaman Bond Boxer Breaux Brownback Bryan Burns Campbell Chafee Coats Cochran Collins Conrad Coverdell Craig D'Amato Daschle Dodd Domenici Dorgan Durbin Enzi Faircloth Feingold Feinstein Ford Frist Gorton Graham Gramm Grams Grassley Gregg Hagel Harkin Hollings Hutchi

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REVENUE RECONCILIATION ACT OF 1997
(Senate - June 26, 1997)

Text of this article available as: TXT PDF [Pages S6440-S6473] REVENUE RECONCILIATION ACT OF 1997 The Senate continued with the consideration of the bill. Amendment No. 537 Mr. DOMENICI. How much time do I have on the amendment? The PRESIDING OFFICER. Forty-four minutes. Mr. DOMENICI. And the opposition has 44 minutes? The PRESIDING OFFICER. Sixty minutes. Mr. DOMENICI. So we have used 16. Actually, unless Senator Lautenberg has anything further to say, I believe I have stated the case for the Domenici-Lautenberg amendment No. 537. Does Senator Gramm want to offer an amendment to the amendment? Mr. GRAMM. I think Senator Biden is going to offer an amendment first, and after his amendment is disposed of, then I will have an amendment, as will several other people. Mr. BIDEN addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Mr. BIDEN. Madam President, I wonder if the Democratic manager would yield me time off the bill. Mr. DOMENICI. The Senator has time on his amendment. Mr. BIDEN. Parliamentary inquiry. Can I get time in my own right? Mr. DOMENICI. I yield back my time. The PRESIDING OFFICER. The time is controlled by Senator Domenici and Senator Roth. Mr. LAUTENBERG. I yield back my time. The PRESIDING OFFICER. Is all time yielded back? Mr. DOMENICI. We yielded back our time. Mr. BIDEN addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Amendment No. 539 to Amendment No. 537 Mr. BIDEN. Madam President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report. The assistant legislative clerk read as follows: The Senator from Delaware [Mr. Biden], for himself and Mr. Gramm, proposes an amendment numbered 539 to amendment No. 537. Mr. BIDEN. Madam President, I ask that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: On page 43 of the amendment, strike lines 14 through 21 and insert the following: ``(5) with respect to fiscal year 2001-- ``(A) for the discretionary category: $537,677,000,000 in new budget authority and $558,460,000,000 in outlays; and ``(B) for the violent crime reduction category: $4,355,000,000 in new budget authority and $5,936,000,000 in outlays; ``(6) with respect to fiscal year 2002-- ``(A) for the discretionary category: $546,619,000,000 in new budget authority and $556,314,000,000 in outlays; and ``(B) for the violent crime reduction category: $4,455,000,000 in new budget authority and $4,485,000,000 in outlays; as adjusted in strict conformance with subsection (b).''. (2) Transfers into the fund.--On the first day of the following fiscal years, the following amounts shall be transferred from the general fund to the Violent Crime Reduction Trust Fund-- (A) for fiscal year 2001, $4,355,000,000; and (B) for fiscal year 2002, $4,455,000,000. Mr. BUMPERS. Will the Senator from Delaware yield for an inquiry for a moment? Mr. BIDEN. I would be happy to. Mr. BUMPERS. Could the managers of this bill tell us how many second- degree amendments there are to this process? I assume we are on the second-degree amendment process; is that correct? The PRESIDING OFFICER. That is correct. Mr. BUMPERS. Could the managers tell us how many second-degree amendments they anticipate on this? Mr. DOMENICI. I do not know. Mr. GRAMM. I believe there will be four. Senator Biden will offer one for himself. Once that is adopted, I will offer a second-degree amendment. And [[Page S6441]] then we have two other Senators who want to offer second-degree amendments, so they will be seriatim. Mr. BUMPERS. Then there are five, because I have one also. I am just wondering if we could get some kind of sequence so we know how they are going to be offered so we do not spend the rest of our lives waiting. Mr. DOMENICI. I say to the Senator, you can be assured there will be four ahead of you, if you would like to be fifth. Mr. BUMPERS. I thank the Senator for his courtesy. Mr. GRAMM. Why don't you do yours last? Mr. DOMENICI. That is what I said. Mr. BIDEN. Madam President, the second-degree amendment I have at the desk is very simple and straightforward. The Senator from New Mexico is introducing a budget process amendment, and what the amendment of Senator Gramm and myself does is, quite frankly, it merely extends the crime law trust fund for the extension of this agreement. I am told by the staffs of the majority and minority that in the budget process agreement that was agreed to with the administration, there is a line on page 90 of the concurrent resolution of the budget fiscal year 1998. On page 90, it says, ``Retain current law on separate crime caps at levels shown in the agreement tables.'' All we are doing here is extending the crime law trust fund. We are not making judgments on how that will be disbursed within the trust fund. We are just extending the trust fund to the extent of this agreement. And, Madam President, as I offer this amendment, we are maintaining a commitment to one of the few specific ways the reconciliation package can, by virtue of the type of legislation it is, maintain a commitment. The commitment we made was to fight violent crime. And, ironically, it is working. It is working. And so for us now to extend the violent crime trust fund, let it expire 2 years before this budget agreement expires, means we are going to be back at it again in the year 2000 or before, fighting over something we now know works. So I realize we can take a long time debating this. But the bottom line is this: We are not suggesting, as the Senator from New Mexico knows, how this trust fund money within the caps will be disbursed; merely that we have the continuation of the trust fund as long as the budget agreement to the year 2002. Of all the priorities addressed in this budget package, I believe that none is more important than continuing our fight against violent crime and violence against women. The amendment I am offering, along with Senator Gramm seeks to maintain this commitment in one of the few specific ways this reconciliation package can--by virtue of the type of legislation this is--maintain this commitment. That is by extending the violent crime control trust fund will continue through the end of this budget resolution, fiscal year 2002. Senator Byrd, more than anyone, deserves credit for the crime law trust fund. Senator Byrd worked to develop an idea that was simple as it was profound--as he called on us to use the savings from the reductions in the Federal work force of 272,000 employees to fund one of the Nation's most urgent priorities: fighting the scourge of violent crime. Senator Gramm was also one of the very first to call on the Senate to ``put our money where our mouth was.'' Too often, this Senate has voted to send significant aid to State and local law enforcement--but, when it came time to write the check, we did not find nearly the dollars we promised. Working together in 1993, Senator Byrd, myself, Senator Gramm, and other Senators passed the violent crime control trust fund in the Senate. And, in 1994, it became law in the Biden crime law. Since then, the dollars from the crime law trust fund have: Helped add more than 60,000 community police officers to our streets; helped shelter more than 80,000 battered women and their children; focussed law enforcement, prosecutors, and victims service providers on providing immediate help to women victimized by someone who pretends to love them; forced tens of thousands of drug offenders into drug testing and treatment programs, instead of continuing to allow them to remain free on probation with no supervision and no accountability; constructed thousands of prison cells for violent criminals; and brought unprecedented resources to defending our Southwest border-- putting us on the path to literally double the number of Federal border agents over just a 5-year period. The results of this effort are already taking hold: According to the FBI's national crime statistics, violent crime is down and down significantly--leaving our nation with its lowest murder rate since 1971; the lowest violent crime total since 1990; and the lowest murder rate for wives, ex-wives, and girlfriends at the hands of their intimates to an 18-year low. In short, we have proven able to do what few thought possible--by being smart, keeping our focus, and putting our ``money where our mouths'' are--we have actually cut violent crime. Today, our challenge is to keep our focus and to stay vigilant against violent crime. Today, the Biden-Byrd-Gramm amendment before the Senate offers one modest step toward meeting that challenge: By assuring that the commitment to fighting crime and violence against women will continue for the full duration of this budget resolution. By assuring that the violent crime control trust fund will continue-- in its current form which provides additional Federal assistance without adding 1 cent to the deficit--through 2002. The Biden-Gramm amendment offers a few very simple choices: Stand up for cops--or don't; stand up for the fight against violence against women--or don't; and stand up for increased border enforcement--or don't. Every Member of this Senate is against violence crime--we way that in speech after speech. Now, I urge all my colleagues to back up with words with the only thing that we can actually do for the cop walking the beat, the battered woman, the victim of crime--provide the dollars that help give them the tools to fight violent criminals, standup to their abuser, and restore at least some small piece of the dignity taken from them at the hands of a violent criminal. Let us be very clear of the stakes here--frankly, if we do not continue the trust fund, we will not be able to continue such proven, valuable efforts as the violence against women law. Nothing we can do today can guarantee that we, in fact, will continue the Violence Against Women Act when the law expires in the year 2000. But, mark my words, if the trust fund ends, the efforts to provide shelter, help victims, and get tough on the abusers and barterers will wither on the vine. Passing the amendment I offer today will send a clear, unambiguous message that the trust fund should continue and with it, the historic effort undertaken by the Violence Against Women Act that says by word, deed, and dollar that the Federal Government stands with women and against the misguided notion that ``domestic'' violence is a man's ``right'' and ``not really a crime.'' I urge my colleagues to support the Biden-Gramm amendment. At the appropriate time--and I am not quite sure yet when is appropriate--I will ask for the yeas and nays on this. But make no mistake about it, what we are voting on here is whether or not we are going to commit now to the extension of the trust fund, the violent crime trust fund, for the extent of this agreement. That is all this does. That is everything it does, but that is all it does. Mr. DOMENICI addressed the Chair. The PRESIDING OFFICER (Mr. Bennett). The Senator from New Mexico. Amendment No. 537, Withdrawn Mr. DOMENICI. Mr. President, I withdraw my amendment. The PRESIDING OFFICER. The amendment is withdrawn. The amendment (No. 537) was withdrawn. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. Under the previous order, the Senator from West Virginia is recognized. [[Page S6442]] Amendment No. 540 (Purpose: To eliminate tax deductions for advertising and promotion expenditures relating to alcoholic beverages and to increase funding for programs that educate and prevent the abuse of alcohol among our Nation's youth) Mr. BYRD. Mr. President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report. The assistant legislative clerk read as follows: The Senator from West Virginia [Mr. Byrd] proposes an amendment numbered 540. Mr. BYRD. Mr. President, I ask unanimous consent that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the end of the bill, add the following: TITLE --ALCOHOL ADVERTISING RESPONSIBILITY ACT SEC. 01. SHORT TITLE. This title may be cited as the ``Alcohol Advertising Responsibility Act''. SEC. 02. FINDINGS AND PURPOSES. (a) Findings.--Congress finds that-- (1) alcohol is used by more Americans than any other drug; (2) it is estimated that the costs to society from alcoholism and alcohol abuse were approximately $100,000,000,000 in 1990 alone. (3) in 1995, the alcoholic beverage industry spent $1,040,300,000 on advertising, while the National Institute for Alcohol Abuse and Alcoholism was funded at only $181,445,000; (4) more than 100,000 deaths each year in the United States result from alcohol-related causes; (5) 41.3 percent of all traffic facilities in 1995, or 17,274 deaths, were alcohol related; (6) in addition to severe health consequences, alcohol misuse is involved in approximately 30 percent of all suicides, 50 percent of homicides, 68 percent of manslaughter cases, 52 percent of rapes and other sexual assaults, 48 percent of robberies, 62 percent of assaults, and 49 percent of all other violent crimes; (7) approximately 30 percent of all accidental deaths are attributable to alcohol abuse; (8) alcohol advertising may influence children's perceptions toward an inclinations to consume alcoholic beverages; (9) 26 percent of eighth graders, 40 percent of tenth graders, and 51 percent of twelfth graders report having used alcohol in the past month; and (10) college presidents nationwide view alcohol abuse as their paramount campus-life problem. (b) Purposes.--The purposes of this title are-- (1) to repeal the existing tax subsidization for expenses incurred to promote the consumption of alcoholic beverages; (2) to reduce the amount of alcohol advertising to which our Nation's youth are exposed; and (3) to increase funding for those programs that educate and prevent the abuse of alcohol among our Nation's youth. SEC. 03. DISALLOWANCE OF DEDUCTION FOR ADVERTISING AND PROMOTION EXPENSES RELATING TO ALCOHOLIC BEVERAGES. (a) In General.--Part IX of subchapter B of chapter 1 (relating to items not deductible) is amended by adding at the end of the following: SEC. 280I. ADVERTISING AND PROMOTION EXPENDITURES RELATING TO ALCOHOLIC BEVERAGES. ``(a) In General.--No deduction otherwise allowable under this chapter shall be allowed for any amount paid or incurred to advertise or promote by any means any alcoholic beverage. ``(b) Alcoholic Beverage.--For purposes of this section, the term `alcoholic beverage' means any item which is subject to tax under subpart A, C, or D of part I of subchapter A of chapter 51 (relating to taxes on distilled spirits, wines, and beer).''. (b) Conforming Amendment.--The table of sections for part IX of subchapter B of chapter 1 is amended by adding at the end the following: ``Sec. 280I. Advertising and promotion expenditures relating to alcoholic beverages.''. (c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31 of the year in which this Act is enacted. SEC. 04. ALCOHOL ABUSE EDUCATION AND PREVENTION AMONG YOUTH. (a) In General.--Subject to subsection (c), there shall be transferred, from funds in the Treasury not otherwise appropriated, to the entities described in subsection (b) amounts to the extent specified under subsection (b). (b) Education and Prevention Programs.-- (1) Substance abuse and mental health services administration.--The amounts specified in this subsection shall be: (A) In general.--With respect to the Substance Abuse and Mental Health Services Administration, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to supplement substance abuse prevention activities authorized under section 501 of the Public Health Service Act (42 U.S.C. 290aa). (B) Use of funds.--Amounts provided to the Substance Abuse and Mental Health Services Administration under subparagraph (A) shall be used directly or through grants and cooperative agreements to carry out activities to prevent the use of alcohol among youth, including the development and distribution of public service announcements. (2) Centers for disease control and prevention.-- (A) In general.--With respect to the Centers for Disease Control and Prevention, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to carry out a comprehensive strategy to prevent alcohol-related disease and disability. (A) Required uses.--In carrying out the comprehensive strategy under subparagraph (A), the Centers for Disease Control and Prevention shall-- (i) enhance and expand State-based and national surveillance activities to monitor the scope of alcohol use among the youth of the United States; (ii) enhance comprehensive school-based health programs that focus on alcohol use prevention strategies; (iii) develop and distribute commercial advertising to prevent alcohol abuse among youth; and (iv) enhance and expand Fetal Alcohol Syndrome prevention activities throughout the United States. (3) National highway traffic safety administration.--With respect to the National Highway Traffic Safety Administration, and in addition to any funds authorized from the Highway Trust Fund, $120,000.000 for fiscal year 1998, $180,000,000 for fiscal year 1999, $180,000,000 for fiscal year 2000, $210,000,000 for fiscal year 2001, and $210,000,000 for fiscal year 2002, to carry out programs under sections 402, 403, and 410 of title 23, United States Code, and to develop and implement a paid media campaign targeting high-risk youth populations to improve the balance of media messages related to alcohol impaired driving. (4) Indian health service.--With respect to the Indian Health Service, $40,000,000 for fiscal year 1998, $60,000,000 for fiscal year 1999, $60,000,000 for fiscal year 2000, $70,000,000 for fiscal year 2001, and $70,000,000 for fiscal year 2002, to supplement the programs that such Service is authorized to carry out pursuant to titles II and III of the Public Health Service Act (42 U.S.C. 202 et seq., 241 et seq.). (c) Authority to Transfer Funds.--The Committee on Appropriations of the House of Representatives and the Committee on appropriations of the Senate, acting through appropriations Acts, may transfer the amount specified under subsection (b) in each fiscal year among the entities referred to in such subsection. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, would the Chair indulge me momentarily? I protect my right to the floor. The PRESIDING OFFICER. The Senator from West Virginia will be protected in his right to the floor. Mr. DURBIN addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia has the floor. Mr. BYRD. I thank the Chair. Mr. President, last Friday negotiators from the tobacco industry and State attorneys general announced the landmark agreement addressing the impact of tobacco use on our Nation, particularly our young people. Although this important deal will likely face many obstacles and has a long way to go toward implementation, it is an unprecedented first step toward curbing tobacco use and paying for the harm caused by that use. This process has caused our Nation to focus on an important public health danger and is an important step in working toward a meaningful solution. While I applaud the action being taken to address the pernicious health effects of tobacco, I am concerned that its evil twin, which also has a staggering impact on our Nation, is to a large measure being ignored. Mr. President, the cost of alcohol abuse to our country is staggering. According to the National Institute on Alcohol Abuse and Alcoholism of the National Institutes of Health, alcohol is used by more Americans than any other drug. And the results are devastating. The flood tide of alcohol causes more than 100,000 deaths each year in the United States. Alcohol abuse and alcoholism imposes approximately $100 billion in cost each year on society. Links have been found between alcohol abuse and cirrhosis of the liver, as well as other harmful health conditions. Alcohol is a contributing factor in assaults, murders and other violent crimes, including fatal drinking and driving accidents. At the bottom of every empty bottle is another family in crisis, another career being destroyed, or another dream washed away. [[Page S6443]] The amendment I am offering today would eliminate the tax deduction for alcoholic beverage advertising expenditures. In addition, it would increase funding for a number of programs that educate and prevent the abuse of alcohol among our Nation's youth. What should be of the utmost of our concern in our Nation is the impact of alcohol on our children and our grandchildren. I am introducing this amendment on behalf of the children who died because they were drinking and driving, and on behalf of the millions of children who are drinking right now without the full appreciation of what they are doing to themselves and what they could potentially do to others. Alcohol is the drug of choice among teenagers. Mr. President, more specifically, and looking at this chart compiled by the National Center on Addiction and Substance Abuse, the use of alcohol by our Nation's youth is highlighted among different age groups, including children between the ages of 12 and 17. Among children between the ages of 16 and 17, 69.3 percent have at one point in their lifetimes experimented with alcohol. Clearly, as made evident by these alarming statistics, alcohol is the leading problem among teenagers--not marijuana, not cocaine. In the last month, approximately 8 percent of the Nation's eighth graders have been drunk--have been drunk. We are talking about eighth graders, 13 years old--13-year-olds. I never heard of such a thing when I was in my teens, as a young man, or in my middle age. We are talking about eighth graders, 13-year-olds. Every State has a law prohibiting the sale of alcohol to individuals under the age of 21. How is it then that two out of every three teenagers who drink report that they can buy their own alcoholic beverages? The youth of this country, who at the delicate age of 15 should be enriching their minds with schoolwork, improving their bodies with exercise, and discovering the wonders of life through God and family values, instead are experimenting and endangering themselves with booze. Junior and senior high school students drink 35 percent of all wine coolers and consume 1.1 billion cans of beer a year. I know, because I pick some of them up off my lawn--I am talking about the beer cans, not the young people. I will repeat what is common knowledge to us all: Every State has a law prohibiting the sale of alcohol to individuals under the age of 21. Alcohol is a factor in the three leading causes of death for 15- to 24- year-olds--the three leading causes--accidents, homicides, suicide. In approximately 50 percent to 60 percent of youth suicides, alcohol is involved. Links have been shown between alcohol use and teen pregnancies and sexually transmitted diseases. Eighty percent of the teenagers do not know that a can of beer has the same amount of alcohol as a shot of whiskey or a glass of wine. By the time they are in college, 40 percent have binged on alcohol during the previous 2 weeks. In 1994, 8.9 percent--almost 95,000--of the clients admitted to alcohol treatment programs that received at least part of their funding from the State were under the age of 21, including over 1,000 under the age of 12. And 31.9 percent of youth under the age of 18 in long-term State-operated juvenile institutions were under the influence of alcohol at the time of their arrest. While our Nation's education system needs repair, it seems that our society has been successful in teaching these kids something. The problem is that what we have taught them is deadly. Drinking impairs one's judgment. We all know that. Nobody will dispute that. Alcohol mixed with teenage driving is a lethal, a lethal combination. We read about it all the time in the Washington Post, the Washington Times, and every newspaper in the land. In 1995, there were 1,666 alcohol-related fatalities of children between the ages of 15 and 19. The total number of alcohol-related fatalities that year was 17,274. Mr. President, for many years I have taken the opportunity, when addressing groups of young West Virginians, to warn them about the dangers of alcohol. I supported legislative efforts to discourage people, particularly young people, from drinking any alcohol. For example, 2 years ago I authored an amendment that requires States to pass the zero-tolerance laws that will make it illegal for persons under the age of 21 to drive a motor vehicle if they have a blood alcohol level greater than .02 percent. This legislation not only helps to save lives but it also sends a message to our Nation's youth that drinking and driving is wrong, that it is a violation of the law, and that it will be appropriately punished. Unfortunately and tragically, we all know someone, whether it is a family member or a friend or an acquaintance, whose life has been cut short by a drunk driver. These are senseless losses that are devastating to the families and the friends who are left behind. As if the aforementioned statistics about youth alcohol use and the results of that use are not frightening enough, young people who consume alcohol are more likely to use other drugs. On the chart to my left, Senators will note these statistics, compiled by the National Center on Addiction and Substance Abuse at Columbia University, statistics which show that 37.5 percent of young people who have consumed alcohol have used some other illicit drug, versus only 5 percent of young people who have never consumed alcohol; 26.7 percent of those who have consumed alcohol have tried marijuana, versus 1.2 percent of those who have never consumed alcohol; 5 percent of youths who have partaken of alcohol have tried cocaine, while only 0.1 of 1 percent of those who do not drink have used cocaine. So it is not a question that is even debatable that youths who drink alcohol are more likely to use other drugs. Mr. President, as the aforementioned facts and figures indicate, alcohol exacts a tremendous cost on our society. These costs are not always clear-cut. For example, consider the costs of the lost productivity of a person showing up at work on a Monday morning with a hangover and inadequately performing his or her job, perhaps making a mistake that results in injury. How many of us would like to ride in the automobile that was made on such a Monday morning? How many of us would like to fly on the airplane whose maintenance man or woman, whose mechanic was on a binge the previous day? While there is no way to accurately gauge the enormous costs that alcohol exacts upon our society, there can be no doubt that the pleasures of alcohol consumption exacts a considerable price on our Nation. The purpose of the amendment that I introduce today is simple. My proposal would simply tell all producers of alcoholic beverages that they can no longer deduct the costs of their advertising expenditures on those products from their Federal income tax liability. While advertising is generally deductible as a legitimate business expense, I believe there exists a moral, legitimate reason to create an exception for producers of alcoholic beverages whose products exact such considerable costs on our society. My proposal would not make illegal any advertising of alcoholic beverages. It does not say that any advertising of alcoholic beverages is unconstitutional. It does not attempt to ban such advertisements, nor would it create any additional Federal bureaucracy to regulate alcohol products. Rather, it would simply end the American taxpayers' subsidization of alcohol advertising by amending the Internal Revenue Code of 1986 to include a disallowance of any deduction for any amount paid or incurred to advertise or promote by any means any alcoholic beverage. This is not a sin tax. It is, rather, an end to the sin subsidy that has left American taxpayers footing the bill for both alcohol advertising and the high health care costs inflicted on society by alcohol consumption. Now there may be those who argue that it is wrong to single out alcohol advertising expenses. I counter that with the question: What other product, with the possible exception of tobacco, costs society $100 billion each year? What other product results in more than 100,000 deaths each year in the United States? The statistics are indeed staggering. Mr. President, in these complicated times, the innocence of youth, the innocence of youth is dashed away at an early age by the irreverent messages spewing from the television set. Profanity and violence on television programming are interrupted only by the aggressive commercials seeking to influence viewers in the name of profit. [[Page S6444]] Our impressionable youth, pressured by the self-indulgent motives of revenue-hungry corporations are bombarded by countless images glorifying an unrealistic view of reality, often insincerely portraying alcoholic beverages as an ingredient for ideal lifestyles. Our children are besieged with the message that if you drink you will attract beautiful women, if you drink you will be popular, if you drink you will excel at sports. Are these the images of reality or do they leave out something important? Do they leave out some important facts about alcohol consumption? What about the negative and all too prevalent results of alcohol consumption--the hangovers that result in lost productivity, the tragic deaths, the injuries caused by a drunk behind the wheel, the hospital visits for alcohol poisoning, the horrible effects of cirrhosis of the liver and the families torn apart by alcohol abuse. The industry indicates that their advertisements do not target young people, although this is debatable. A January Wall Street Journal article, detailing a competitive media reporting survey commissioned by the Journal, found that beer advertisements are often aired during programs that are watched by large numbers of adolescents. The findings of this survey are extremely disturbing. In one example, referenced in the article, a beer ad ran during the airing of a popular cartoon show on the MTV station of which 69 percent of the audience was comprised of children under the age of 21. Mr. President, I ask unanimous consent to have printed in the Record the Wall Street Journal article. There being no objection, the article was ordered to be printed in the Record, as follows: [From the Wall Street Journal] Are Beer Ads on Beavis and Butt-Head Aimed at Kids? (By Sally Beatty) When a commercial for Schlitz Malt Liquor appeared last year on MTV during ``My So-Called Life,'' a show about teenage girls, beer maker Stroh called the airing an aberration. Even as the ad helped launch a Federal Trade Commission probe into alcohol advertising to children, Stroh said it had a longtime policy of aiming ads only at adults of legal drinking age; MTV said the ad ran by mistake because of a last-minute programming switch. In fact, the commercial was hardly an isolated event. Despite the beer industry's insistence that it doesn't target kids, its commercials regularly wash over underage viewers. A survey by Competitive Media Reporting for the Wall Street Journal showed that during one arbitrarily chosen week--the first week of September--youths under the drinking age made up the majority of the audience for beer commercials on several occasions. For instance, Molson beer was advertised during a 10 p.m. episode of ``Beavis & Butt-Head,'' the popular MTV cartoon series about two obnoxious teens. Fully 69% of all the episode's viewers that night were under 21--the legal drinking age in all 50 states--according to Nielsen Media Research's widely used ratings data. Molson, which is marketed in the U.S. by Philip Morris's Miller Brewing, also advertised on MTV's racy youth dating show, ``Singled Out,'' just after 7 p.m., when 52% of the audience was under 21. And Stroh advertised Schlitz Malt Liquor during MTV's prime-time music-video show at 8:30 p.m., when 56% of the audience was under 21. That same week, Adolph Coors ran two ads on the Black Entertainment Television channel after 8 p.m., when 65% of the audience wasn't old enough to drink. Also that week, Anheuser-Busch ran an ad for its Budweiser brand just after 8:30 p.m. on BET during music-video programming, when 70% of the audience was under 21. These commercials look like clear violations of the chief beer industry trade group's own guidelines for TV ads. ``Beer advertising . . . should not be placed in magazines, newspapers, television programs, radio programs or other media where most of the audience is reasonably expected to be below the legal purchase age,'' states the Beer Institute's published ``advertising and marketing guidelines.'' The industry is pointing to these guidelines in an aggressive lobbying effort against proposed new federal restrictions of beer and liquor advertising. The number of ads reaching kids is ``very troubling,'' says Jodie Bernstein, director of the FTC's bureau of consumer protection and a top official involved with its ongoing probe into alcohol marketing to kids on television. Her bureau enforces laws banning unfair or deceptive ad practices, including a statute that says it's unfair to aim ads at people who aren't legally able to buy the products. A company that runs afoul of such laws can face fines, orders to pull ads and regular FTC screening of future advertising. Ms. Bernstein won't comment on the FTC's probe. However, she says that in any investigation, the commission would look first at whether alcohol advertisers are ``following their own guidelines.'' For example, ``Is it OK if [the percentage of underage viewers] gets up to 70% once in a while? I don't think it's OK.'' And she says the commission would ``never act on just one episode or one mistake--we would act on the pattern.'' Brewers and TV executives insist that it doesn't make sense to evaluate beer ads on a single night's audience. ``Any attempt to analyze the beer industry's media-buying practices by examining only selected broadcast media buys during a one- week period is misleading and simplistic,'' said Miller Brewing in a statement responding to questions about the survey. Miller added that more than 75 percent of the broadcast audience reached by the programming it buys is over 21. At Stroh, officials argue that there's a difference between putting ads in front of kids and targeting them explicitly. ``We understand that when an ad is run it's going to be seen by some people who are under 21 years of age, whether it's a billboard, in a magazine or on TV,'' says Stroh general counsel George Kuehn. ``That does not mean we target the group that is under 21.'' Whether the beer industry advertises to kids became a hotly debated question after the liquor industry last year abandoned its longstanding guidelines banning TV ads. That sparked a national uproar over exposing kids to alcohol ads-- putting the beer industry in the spotlight. In Congress, Rep. Joseph P. Kennedy II (D., Mass.) has introduced legislation that would ban most forms of alcohol advertising from 7 a.m. to 10 p.m., require health warnings on print, radio and TV ads and require alcohol ads that run in publication with a 15% or more youth readership to appear only in black-and-white text. There are already signs that brewers and Madison Avenue are worried about the threat of regulation of beer ads. No. 1 brewer Anheuser-Busch revealed last month that it quietly pulled all its beer advertising from MTV, saying it hoped to ``ensure that our intent is not misperceived in today's climate.'' The Madison Avenue's main trade group, the American Association of Advertising Agencies, recently abandoned its longtime stand against restrictions on ads for products like alcohol and cigarettes. It proposed setting up a new self-regulation committee, warning that the industry otherwise faces a government crackdown on ads for beer and other adult products. But setting reliable guidelines for such ads remains tricky. TV executives argue that Nielsen ratings aren't reliable measures of kid viewership--even though the ratings are the TV industry's gold standard for gauging the cost of ad time. Says John Popkowski, executive vice president in charge of ad sales at MTV Networks: ``If you pick one show on an isolated night you might find one that's an aberration statistically,'' since cable channels' viewership is sometimes relatively small. On the E! Channel, for instance, Miller Brewing ran a Foster's ad on Sept. 2, just before 7:30 p.m., during the show ``Melrose Place.'' That night, 41% of the show's audience was under 21, according to Nielsen. But David T. Cassaro, senior vice president in charge of ad sales for E! Entertainment Television, says that from July 1 to Sept. 29 between 7 p.m. and 8 p.m., only about 28% of E! Entertainment's audience was under 21. Overall, Mr. Cassaro adds, only 19% of E! Entertainment's total audience isn't old enough to drink. ``With networks like BET the numbers are so small that they jump all over the place,'' adds John Goldman, a spokesman for Adolph Coors. ``You take as much care as you can but the programming changes often.'' Mr. Goldman says that in the third quarter, the over-21 audience reached by BET between 7 p.m. and 8 p.m. ranged from 80% to 43%. Mr. Goldman adds that Coors doesn't buy MTV as a matter of company policy. ``We want to avoid any misperception that we're aiming at an underage audience.'' Mr. BYRD. Mr. President, looking at another chart to my left, this chart demonstrates competitive media reporting estimates that the alcoholic beverage industry spent more than $1 billion on alcohol advertising in 1995. In contrast, in 1995, the Federal investment in the National Institute on Alcohol Abuse and Alcoholism was a mere $189.8 million for alcohol research. Does the industry expect us to believe that it would spend this huge amount of money--$1.1 billion--if it were not getting something for that money? Some may argue that this legislation would adversely affect the advertising industry by forcing producers of alcoholic beverages to eliminate their advertising expenditure. Poppycock. I do not believe that this would be the case. Alcoholic beverage producers spend large amounts of money to advertise their products because it encourages people to consume their product and it, therefore, increases sales. Eliminating the advertising deduction will not eliminate the fundamental business practice. By making these advertisements less profitable, this amendment may reduce the overall amount of alcohol advertising in our society. However, let there be no doubt that the alcohol ads will keep on running. You [[Page S6445]] can bet your bottom dollar on that. They will. The difference, however, will be that the American taxpayer will no longer be subsidizing this activity and that the money will go, instead, to getting the other side of the alcohol story out. That is what we need to start doing. We need to start now getting the other side of the alcohol story out. It is perhaps not the most popular thing politically to attempt to do here, but it needs to be done. This amendment is all the more necessary because, last year, the Distilled Spirits Council of the United States decided to reject its self-imposed ban on advertising hard liquor on television and radio. I decried this decision by the Distilled Spirits Council because it is a step backward at a time when our Nation is working to curb alcohol abuse. Now hard liquor advertisements will be flowing over the airwaves. This is not the direction in which our Nation should be moving. According to the Joint Committee on Taxation, the elimination of the tax deduction would result in $2.9 billion in savings over 5 years. My amendment targets the savings from the elimination of the disallowance to programs to prevent alcohol abuse among our Nation's young people and to educate children about alcohol. The Substance Abuse and Mental Health Services Administration would be given increased funds to supplement programs to prevent the use of alcohol among young people and to fund a media campaign designed to counteract the constant bombardment to which our children are subjected daily by alcohol advertisements. It is important to give our children information about the risks associated with the consumption of alcohol. We should not sit idly by and leave unchallenged the messages of alcoholic beverage advertisements that only good things happen to those who drink alcohol. This amendment will also direct funding to the Centers for Disease Control and Prevention to carry out a comprehensive strategy to prevent alcohol-related disease and disability. The CDC would be given authority to enhance and expand fetal alcohol syndrome prevention activities throughout the Nation. According to the NIAAA, fetal alcohol syndrome is estimated to affect from one to three children out of every 1,000 live births. To address the distressing problem of alcohol-impaired driving, the National Highway Traffic Safety Administration's alcohol-impaired driving incentive grant program, previously known as section 410, would receive additional funding. Funding is also made available to NTSA to launch a media campaign about the perils of driving under the influence. The Indian Health Service will receive funding for its alcohol abuse programs to address the issue of alcohol abuse, which has such a devastating effect on the first Americans. I don't refer to them as native Americans. I don't refer to them as native Americans. I am a native American. If I am not a native American, of what country am I a native? I refer to them as the original Americans, or the first Americans. The harm that alcoholic beverages cause our Nation is not a second- rate hangover, but a serious affliction that kills more than 100,000 people each year. By adopting this amendment, we would be making a positive effort to improve the health of our Nation, particularly of our children, and to send a sober message to those who are capitalizing on profits generated by recklessly advertising alcoholic beverages through far-reaching and seductive means, such as television. We should act in the best interests of the American people and announce ``last call'' to those who have been receiving tax breaks for peddling booze, take a step in the right direction and begin to repair some of the damage brought by alcohol in this country. Let us begin by putting a cork in the tax loophole that has left American taxpayers picking up the tab for the alcohol industry. Now, Mr. President, I am very well aware that a point of order will be made, or can be made. I am well aware of that. But I think the debate has to start at some point. I think that point is now. We hear a great deal about tobacco and we hear a great deal about children, about children's health. I hope those who support those programs and talk much about them would support this effort. We are talking here about children's health. We are talking here about something that kills 100,000 people every year. I am not seeking to ban alcohol. I am not seeking to regulate alcohol. I am simply seeking to end the subsidization by the taxpayers of this country of alcohol. Think about it. Think about it on your way home tonight as you drive out the George Washington Parkway and see someone in front of you wobbling from one side of the road to the other. Think again. Suppose your wife is up at Tyson's Corner getting ready to drive home with the children and that same fellow who was in front of your car wobbling may kill your wife and your children. So let's start talking about it. Let's start airing the subject here. Let's stop putting it behind the curtain, putting it under the rug, saying it is taboo. It is not. It is not taboo. Think about our children, our grandchildren. This is the product that kills other people. Tobacco may kill me. Tobacco may kill the individual who smokes it. But alcohol may not kill the person who imbibes; it may kill the innocent--the driver in the other car. So I hope that Senators will support my amendment. As I say, I am sure that there is a process or a motion available, but I am accustomed to those things. I say let the Senate work its will. I yield the floor. Mr. ROTH addressed the Chair. The PRESIDING OFFICER. The Senator from Delaware. Mr. ROTH. I yield 5 minutes to the distinguished Senator from Kentucky. The PRESIDING OFFICER. The Senator from Kentucky is recognized. Mr. McCONNELL. Mr. President, I thank the chairman of the Finance Committee for yielding me a few moments. I listened very carefully to my good friend and colleague from West Virginia and to his observations about the dangers of drinking and driving, with which I completely concur. Of course, representing Kentucky, as my friend from West Virginia knows, not only do we have 60,000 tobacco growers, which is, of course, the subject of a number of amendments that may come on this bill; we are also the home of bourbon. If this kind of whiskey is not made in Kentucky, it cannot be called bourbon. Let me suggest that there are no industries--and I checked with the Finance Committee staff--that have been singled out by law and, as a result of being singled out, are not allowed to deduct their expenses for advertising. So this would be a first. To begin with, as a matter of tax policy, certain kinds of legal industries are not allowed to deduct their advertising, and others are. There is also--while we are thinking of both cigarettes and alcohol-- another important distinction. There is no argument that misuse of alcohol is a problem in this country. As a Senator from a tobacco- producing State, I never make the argument that smoking cigarettes is good for you. Obviously, it isn't. But there are many in the medical profession who would say that the consumption of alcohol, if used properly--properly--is actually good for you. I am not a physician, I can't make that argument, but there is a growing argument being made by many in the medical community that a certain amount of alcohol, properly used, is actually good for you health, not bad for your health. So we have here a legal product, Mr. President, which, arguably, if properly used, might actually be good for you, which the distinguished Senator from West Virginia, I gather, is saying when misused, of course, is clearly a terrible thing and a disaster not only for the person misusing it, but for others who may be affected by that, and that because a product may be misused, the Government should step in and say: Your advertising is not allowed. Regardless of how you may feel about this---- Mr. BYRD. Will the Senator yield? Mr. McCONNELL. Yes. Mr. BYRD. For a correction only. My amendment does not say your advertising will not be allowed. I am not saying that at all. The alcohol industry may continue to advertise. I am just saying, let's stop the subsidization of that advertising, the subsidization by the taxpayers. Mr. McCONNELL. I thank the Senator. I think I did understand his [[Page S6446]] amendment to disallow a deductibility for advertising, which would make this the only industry of which the Finance Committee is aware where such deductibility would be disallowed. Aside from my home State and the product, which, if properly used, might actually be good for you, I wonder if my friend from West Virginia doesn't share my concern that once we go in this direction, we might find other activities that some may find offensive being subject to the same kinds of efforts to disallow deductibility for certain kinds of business expenses. I think, for example, West Virginia and Kentucky used to trade back and forth in terms of coal production. One year West Virginia would be first; the next year Kentucky would be the first. Alas, neither are first anymore. Wyoming is. But there are many Americans who think, as a result of the burning of coal, that the area is polluted and that, as a result of that, people contract lung problems. In fact, there is an initiative by the Clinton administration just announced this week which the Senator from West Virginia and I both have serious reservations about designed to cut down on air pollution--so the argument goes--so there will be less lung disease. I wonder, if we go down this path of trying to pick out which industries' deductions for certain kinds of business expenses are to be allowed or not allowed based upon our judgment about what is harmful to the public, whether or not somebody might come in and say, ``Well, we shouldn't allow production costs associated with the mining of coal to be deductible because, after all, the burning of coal leads to the pollution of the air, which then leads to lung disease, which then leads to death.'' I just am concerned that this is a step in the wrong direction. I understand fully the concerns of the Senator from West Virginia, and I share them. I think the use of alcohol leads to a great deal of tragedy. But I hope we will not single out this legal industry producing a product, which, if properly used, many people in the medical field feel is actually good for you, for this kind of selective treatment on deductibility. Finally, let me say that I am not an expert on the budget deal. But it is clear that there is a lot of momentum in this body to hold the deal together, and this is clearly not part of the budget deal. I hope that the proposal will not be approved, in all due respect to my good friend and colleague from West Virginia. I hope this would not become part of the measure before us. I yield the floor. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, may I say that I fully understand the economic impact of the tobacco industry on the State of the distinguished Senator who has just spoken. West Virginia grows good tobacco crops as well, and the income from those tobacco crops certainly impact upon many families in many counties of West Virginia. We are talking about here, though, a product that results in the maiming and in the killing of people--innocent men, women, and children. The distinguished Senator from Kentucky mentions the carbon dioxide emissions and other greenhouse gas emissions and possible implications of those emissions on health. People who breathe that air may well, indeed, suffer an adverse impact on their health. But they don't go out and maim. They don't go out and drive an automobile, lose their proper judgment, and end up killing innocent people. They do not go home and abuse their spouses if they smoke cigarettes or if they breathe air blown from them. They don't go home and abuse their children. They don't go home and assault and batter the other members of their family. I am talking about a product that we all know--it is not just this Senator's opinion. We all know when we read the daily newspapers about the effects of drinking and driving. We all read the newspapers in the spring following the graduation exercises at high schools, and we read, with horror, the stories of a few young people who get into an automobile and wrap that automobile around a telephone pole and they are all killed or maimed--maimed for life. That is what we are talking about. I am not talking about singling out an industry. I am talking about an industry that creates a product that is hurtful--not just hurtful to the person who uses it, but endangers, as I said already, the lives of others. We all know that. But I do appreciate the fact that the Senator is from Kentucky, and I respect him for that, and I respect his viewpoint and count him and his fellow Kentuckians as good neighbors. I yield the floor. Mr. ROTH. How much time would the Senator from Montana like? Mr. BURNS. Probably no more than 5 minutes. Mr. ROTH. I yield 5 minutes to the Senator from Montana. The PRESIDING OFFICER. The Senator from Montana. Mr. BURNS. I thank my friend from Delaware. Mr. President, no one on this floor makes his case with such passion as my friend from West Virginia. We have a couple of things in common that we will not go into here. But I also know from where he comes. And when you start talking about this issue of singling out something, then we have to look at probably the real facts. First, there is the presumption in this amendment that somehow the advertising is evil or bad, or that it wreaks health problems on the American people. There is no question in anybody's mind across this land that the abuse of alcohol is one of our greatest problems--no doubt. Yet, there is no scientific evidence that would even suggest the casual relationship between advertising and abuse. In order to get to the root of the problem of alcoholism and all of the problems that it brings, study after study after study has been made in the relationship of advertising. In fact, during the 1980's, when the advertising for alcohol products was increasing, actual consumption per capita actually was decreasing. So not only does advertising not impact abuse, it doesn't even impact the overall consumption. Singling out a product is not, I don't think, what fair tax law is about. So let's be upfront about it, because I am familiar with the broadcast industry. It has economic impacts on small business. It has economic impacts. And once we start singling out products, do we start talking about red meat, eggs, or sugar? Where do we draw the line? The impact it might have on the national pastime? We could say, ``OK, we don't need it in the broadcasting industry. We can all pay for pay-per- view''--the impact on an industry within itself. And the list goes on and on trying to explain to our constituents why different things happen and cost more, because there is a decrease in advertising support in free television. That also brings us our weather, our farm reports, our news, our emergency conditions. All of these things that are supported by free over-the-air broadcasts will be impacted if this amendment is successful. The industry has taken steps to limit or try to curb the abuse that alcohol has on a person or individual. There is no doubt about it. And in some areas some would say it is even working. I know that all of us want a tax cut. All of us want a balanced budget. But to single out and start limiting an ad tax or deductibility for legal products is not the right approach. It is not the right approach--not on a legal product. So I urge my colleagues to oppose this. It is unwarranted. I think it is unwise. And I am not real sure, it might have some constitutional overtones because advertising is still freedom of speech. It cannot be treated differently than any other form. The Senator from West Virginia makes a point. It is the abuse of the product. The advertising has very little to do with the abuse of the product. Thank you, and I urge the defeat of this amendment. I yield the floor. Mr. BYRD addressed the Chair. The PRESIDING OFFICER. The Senator from West Virginia. Mr. BYRD. Mr. President, the Senator talks about red meat, eggs, and sugar. The Honorable Senator is my friend. Who ever heard of anybody eating red meat, eggs, and sugar, and getting out in the car and having that car plunge into a tree, weave all across the road, and kill and maim other people? Red meat doesn't cause an individual to drive drunk and get in the car and [[Page S6447]] drive all over the highway. Eggs and sugar don't do that in their form as eggs and sugar, in their natural form. The Senator also, I think, made reference to the Federal Trade Commission in 1985, which found ``no reliable basis to conclude that alcohol advertising significantly affects consumption, let alone abuse.'' Well, let's see what the conclusions are from the effects of the mass media on the use and abuse of alcohol. The National Institute of Alcohol Abuse and Alcoholism, U.S. Department of Health and Human Services, Research Monograph-28, 1995: [The] preponderance of the evidence indicates that alcohol advertising stimulates higher consumption of alcohol by both adults and adolescents . . . It appears to be a contributing factor that increases drinking to a modest degree rather than being a major determinant. (Dr. Charles Adkins, Department of Communications, Michigan State University.) Now I shall quote Dr. Sally Casswell, Alcohol and Public Health Research Unit, School of Medicine, University of Aukland: [T]here is sufficient evidence to say that alcohol advertising is likely to be a contributing factor to overall consumption and other alcohol-related problems in the long term. Now quoting Dr. Joel Grube, Prevention Research Center: [A]lcohol advertising can influence children, particularly their beliefs about alcohol and, indirectly, their intentions to drink as adults. Finally, let me quote Dr. Esther Thorson, School of Journalism, University of Missouri: If research were designed to take account of what the advertiser is trying to do and if it examined the relationship between the specific structure of the message and the individual or group for whom that message is targeted, investigators probably would find ``whopping effects''. Mr. President, I appreciate the views that have been expressed by my friend from Montana and, as I have already indicated, by my friend from Kentucky. I appreciate their views, and I respect their views. Mr. President, I don't think there should be any doubts in the minds of any Senator or any person who is viewing this Chamber via that electronic eye that the drinking of alcohol affects the judgment of people, and that there are many other costs that are not tangible, that cannot be translated into dollars and cents-- the cost of lost productivity, the cost of broken homes, the cost of children abused. And I could go on. I have made my case, and I ask for the yeas and nays on my amendment. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. Mr. BYRD. I yield back the balance of my time. The PRESIDING OFFICER. The Senator from Delaware has the remaining time. Mr. ROTH. Mr. President, I yield back the remainder of my time, and I make the point of order that the pending amendment is not germane to the provisions of the reconciliation measure and I therefore raise a point of order against the amendment under section 305(b)(2) of the Budget Act. Mr. BYRD. Mr. President, I move to waive the point of order and ask for the yeas and nays on my motion. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. The PRESIDING OFFICER. There is an hour equally divided on the motion. Mr. BYRD. Mr. President, I yield back my time. Mr. ROTH. Mr. President, I yield back the balance of my time. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question is on agreeing to the motion to waive. The yeas and nays have been ordered. The clerk will call the roll. The bill clerk called the roll. Mr. McCAIN (when his name was called). Present. Mr. NICKLES. I announce that the Senator from Kansas [Mr. Roberts], is necessarily absent. The PRESIDING OFFICER. Are there any other Senators in the Chamber who desire to vote? The yeas and nays resulted--yeas 12, nays 86, as follows: [Rollcall Vote No. 136 Leg.] YEAS--12 Bumpers Byrd Cleland DeWine Glenn Hatch Helms Kennedy Rockefeller Sarbanes Thurmond Wellstone NAYS--86 Abraham Akaka Allard Ashcroft Baucus Bennett Biden Bingaman Bond Boxer Breaux Brownback Bryan Burns Campbell Chafee Coats Cochran Collins Conrad Coverdell Craig D'Amato Daschle Dodd Domenici Dorgan Durbin Enzi Faircloth Feingold Feinstein Ford Frist Gorton Graham Gramm Grams Grassley Gregg Hagel Harkin Hollings

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