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WITHDRAWAL SHEET
Ronald Reagan Library
Collection: Cicconi, James W.: Files
Archivist: dlb/bcb
File Folder: [Coceini Memos, Jul - Dec 1982] [5 of 7]
Date: 2/19/98
Cicconi
OA 10793 Box I
DOCUMENT
SUBJECT/TITLE
DATE
RESTRICTION
NO. AND TYPE
1. memo
JW Cicconi to James A.Baker, III re Legislative
11/11/82
P5
Package Designed to Create Jobs, 2p.
2. memo
JW Cicconi to James A.Baker, III re Senator Hatch's
11/22/82
PS
Displaced Workers Bill, 1p.
as 10/19/00
RESTRICTION CODES
Presidential Records Act [44 U.S.C. 2204(a)]
Freedom of Information Act [5 U.S.C. 552(b)]
P-1 National security classified information [(a)(1) of the PRA].
F-1 National security classified information [(b)(1) of the FOIA].
P-2 Relating to appointment to Federal office [(a)(2) of the PRA].
F-2 Release could disclose internal personnel rules and practices of an agency [(b)(2) of the
P-3 Release would violate a Federal statute [(a)(3) of the PRA].
FOIA].
P-4 Release would disclose trade secrets or confidential commercial or financial information
F-3 Release would violate a Federal statue [(b)(3) of the FOIA].
[(a)(4) of the PRA].
F-4 Release would disclose trade secrets or confidential commercial or financial information
P-5 Release would disclose confidential advice between the President and his advisors, or
[(b)(4) of the FOIA).
between such advisors [(a)(5) of the PRA).
F-8 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the
P-8 Release would constitute a clearly unwarranted invasion of personal privacy [(a)(6) of
FOIA].
the PRA].
F-7 Release would disclose information compiled for law enforcement purposes ((b)(7) of
the FOIA].
C. Closed in accordance with restrictions contained in donor's deed of gift.
F-8 Release would disclose information concerning the regulation of financial institutions
[(b)(8) of the FOIA].
F-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of
the FOIA].
WITHDRAWAL SHEET
Ronald Reagan Library
Collection: Cicconi, James W.: Files
Archivist: dlb/bcb
File Folder: [Coccini Memos, Jul - Dec 1982] [5 of 7]
Date: 2/19/98
OA 10793
DOCUMENT
SUBJECT/TITLE
DATE
RESTRICTION
NO. AND TYPE
1. memo
JW Cicconi to James A.Baker, III re Legislative
11/11/82
P5
Package Designed to Create Jobs, 2p.
2. memo
JW Cicconi to James A.Baker, III re Senator Hatch's
11/22/82
P5
Displaced Workers Bill, 1p.
RESTRICTION CODES
Presidential Records Act [44 U.S.C. 2204(a)]
Freedom of Information Act [5 U.S.C. 552(b)]
P-1 National security classified information [(a)(1) of the PRA].
F-1 National security classified information [(b)(1) of the FOIA].
P-2 Relating to appointment to Federal office [(a)(2) of the PRA].
F-2 Release could disclose internal personnel rules and practices of an agency [(b)(2) of the
P-3 Release would violate a Federal statute [(a)(3) of the PRA].
FOIA].
P-4 Release would disclose trade secrets or confidential commercial or financial information
F-3 Release would violate a Federal statue [(b)(3) of the FOIA].
[(a)(4) of the PRA].
F-4 Release would disclose trade secrets or confidential commercial or financial information
P-5 Release would disclose confidential advice between the President and his advisors, or
[(b)(4) of the FOIA].
between such advisors [(a)(5) of the PRA].
F-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the
P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(a)(6) of
FOIA].
the PRA].
F-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of
the FOIA].
C. Closed in accordance with restrictions contained in donor's deed of gift.
F-8 Release would disclose information concerning the regulation of financial institutions
[(b)(8) of the FOIA].
F-9 Release would disclose geological or geophysical information concerning wells ((b)(9) of
the FOIA].
THE WHITE HOUSE
WASHINGTON
November 1, 1982
MEMORANDUM FOR LYNN WOOD
FROM:
Jim Cicconi
fun
SUBJECT:
Attached Resume
I am forwarding the attached resume on James M. Mead for
your files. He was disappointed about the prospects for
a position, but I reminded him top, full-time openings
were rare. I also mentioned that we thought it better to
be frank with people so as not to leave them hanging, but
that we'd be happy to keep his resume on file just in case.
October 19, 1982
Mr. Jim Cicconi
The White House
Washington, D.C.
Dear Jim,
Thank you very much for your interest. It is very kind of you.
With best wishes.
James M. Mead
2455 P Street 7 mail N.W. 7
Washington, DC 20007
202-338-8537
PS:
I WAS ASKED ABOUT CONTRIBUTIONS. OVER THE
YEARS I HAVE CONTRIBUTED TO INDIVIDUALS,
IE: DICK SCHWEIKER, JACK ECKERD OF
FLORIDA AMONG OTHERS.
IN 1980 I CONTRIBUTED TO GEORGE BUSH.
I HAVE JUST CONTRIBUTED TO SENATOR
LUGAR, SENATOR DURÉNBERGER,
CONGRESSMAN CHENEY AND TO PORTER
HOPKINS OF MARYLAND FOR HIS RACE.
PPS:
THIS IS THE FIRST RESUMÉ, I THINK,
THAT I HAVE EVER PREPARED. A
NEW EXPERIENCE. MAYBE MY
TYPING IS WHERE MY REAL STRENGTH
LIES. GOES BACK TD MY NEWSPAPER DAYS.
OCTOBER 1982
JAMES M. MEAD
2455 P Street N.W.
Washington, DC 20007
202-338-8537
BORN:
11/4/28
Erie, Pennsylvania
FAMILY STATUS:
Married on 8/22/53 to Sally Zurn of Erie, PA
Children: E. Scott, Sara G., Hope M.
EDUCATION:
1956-1958
University of Virginia Graduate School of
Business Administration
Degree: Master of Business Administration
1947-1951
Princeton University
Degree: Bachelor of Arts in Economics
1944-1947
Phillips Academy, Andover, MA
College Preparatory
MILITARY SERVICE: 1951-1953
U.S. Marine Corps
lst. Lieutenant
WORK EXPERIENCE: 9/77-8/82 Kidder, Peabody & Co. Inc.
Vice President & Office Manager
Washington Office
7/79-8/82
Baltimore Office
9/77-7/79
10/59-9/77
Merrill Lynch Pierce Fenner & Smith
Vice President & Office Manager
Trenton, NJ Office
1/69-9/77
York, Pa Office
12/66-1/69
Institutional & Retail Salesperson
Philadelphia Office
10/59-12/66
6/58-10/59 New Jersey National Bank, Trenton, NJ
Credit Analyst, Commercial Loans
9/54-9/56
Erie, PA Daily & Sunday Times
Advertising Space Salesperson
8/53-9/54
U.S. Senator James H. Duff
R-PA
Administrative Aide
J.M.Mead
10/82
AFFILIATIONS:
Business:
Director, Times Publishing Company, Erie, PA
Publishes Daily and Sunday Newspapers in Erie, PA
Publishes Daily Newspaper in Warren, PA
Publishes Weekly Newspapers in Erie County (PA)
Publishes Semiweekly Newspaper in Lake County (California)
Cable Television in Erie, PA
Social:
Springdale Golf Club of Princeton, NJ
Nassau Club of Princeton, NJ
Miscellaneous: Executive Committee, Alumni Council
Phillips Academy, Andover, MA 1973-1976
Princeton University Schools & Scholarship Committee
Philadelphia, PA 1962-1966
Executive Committee, Friends of Princeton Football
1972-1976
Trustee, Graduate Board of Trustees
The Cap And Gown Club of Princeton University
J.M.Mead
10/82
ADDENDA: Godson and Namesake of the Late U.S. Senator James M. Mead D-NY
U.S. Senate
1939-1947
U.S. House of Representatives
1919-1939
Chairman of the Federal Trade Commission
1952-1954
Brother of Mary Mead Flanagin
White House Press Secretary James Hagerty Staff
1956-1960
Republican National Committee Staff
1955-1956
Son-in-law of Pennsylvania Supreme Court Justice Samuel J. Roberts
Justice Roberts will be elevated to Chief Justice on January 1, 1983
Justice Roberts served as Erie County (PA) Republican Chairman
Served on Staff of Late U.S. Senator and Pennsylvania Governor
James H. Duff (Republican)
1953-1954
Volunteer: Philadelphia Committee to Elect Richard Nixon
1960
REFERENCES:
Secretary of Health & Human Services Richard S. Schweiker
Secretary of the Treasury Donald T. Regan
Former Republican Pennsylvania Governor Raymond P. Shafer
Coopers & Lybrand 202-822-4000
George I. Bloom
Former Pennsylvania Republican State Chairman
115 North Street
Harrisburg, PA 17101
717-236-8081
THE WHITE HOUSE
WASHINGTON
November 1, 1982
MEMORANDUM FOR KEN DUBERSTEIN
FROM:
Jim Cicconi nign
SUBJECT:
Air Force Congressional Relations Position
As I understand it, you may be consulted regarding the
congressional relations job in the Department of the Air
Force. In case you are asked, I have heard very good things
about General Storey, who is one of the candidates. An
outside person I know has termed him one of the best
congressional relations people he has dealt with.
THE WHITE HOUSE
WASHINGTON
November 1, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi
you
An
SUBJECT:
Housing Situation
Don Hovde has reported to CCEA that the housing situation
is showing marked improvement. Among other things, he
said:
--
FHA loan applications are running at 14,500 per week.
This translates to 745,000 loans per year, matching
the highs of the '77-'79 period.
--
Around 50% of such applications are for refinancing,
a step "which will help the financial condition of
S&L's by clearing out deadwood." Another 25% of the
loans consist of new housing starts.
--
Hovde stated the S&L's are "getting healthier over-
night." They are now offering 12 3/4% mortgages
(vs. 14 1/2% offered in early October). This has
caused some mortgage bankers to close their doors in
order to process the large backlog of loan applications
they have received.
While the FHA application figures above should be viewed
cautiously since only 25% represent new housing starts,
Hovde feels the large amount of refinancing is a sign that
housing is beginning a steady recovery. He says it is a
necessary "cleaning out" of the system that will be followed
by further signs of progress.
As you know, some reference to the above was contained in
the President's remarks while on the Western trip. A fact
sheet was also apparently sent to Ed Meese, though it has
not yet been circulated.
CC: Richard Darman
THE WHITE HOUSE
WASHINGTON
L
November 1, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi Am
SUBJECT:
Yen-Dollar Relationship
Last week CCEA discussed papers prepared on the yen-dollar
relationship. The subject arose largely in response to
allegations by U.S. businesses that the yen is being
purposely undervalued in order to enhance Japanese exports.
Beryl Sprinkel admitted that the yen has not only depre-
ciated against the dollar, but has also fallen vis a vis
European currencies. However, he maintains there is no
evidence the Japanese are manipulating the yen to keep it
undervalued; in fact, he is convinced the Japanese govern-
ment wants the yen to go back up. The Japanese have
apparently taken a series of interventionist steps designed
to strengthen the yen, causing their official reserves to
go down. Though such steps may indicate the intentions of
the government, they have not been significant enough to
notably strengthen the yen.
The bottom line, according to Sprinkel, is that the Japanese
government is not deliberately depressing the yen, although
they have not yet taken the vigorous steps necessary to
strengthen it.
We will continue to apply quiet pressure on the Japanese
government to take stronger steps, though there does not
appear to be much optimism for a positive response in the
near term.
CC: Richard Darman
THE WHITE HOUSE
WASHINGTON
November 2, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi jum
SUBJECT:
Federal Budget
CCEA is considering an OMB proposal that, in short, would
involve placing all off-budget cash outlays on the budget.
This would mean we would have a cash budget that would
fully reflect all cash outlays, and which would also measure
the total of new federal borrowing each year. OMB argues
that we will never get a handle on off-budget expenditures
without doing this since they are not given the same
scrutiny. Stockman pointed out that there is also no
consistency between what is on and off-budget--50% of loans
are now on the budget, the rest are off.
CEA, Schweiker and Brock all expressed reservations about
doing this, arguing that it will increase perceptions of
how big the deficit is (even though we must still borrow
for off-budget items as well--$20B this year alone). They
say that by adding so much more to the deficit we may create
a feeling that the situation is hopeless.
CEA also argued that including direct loans in the budget,
especially those at market rates and to be repaid in full,
distorts the economic costs to the government. Another
example involves guaranteed loans which, on paper, may
resemble an outlay but actually cost the government nothing
if they do not go into default.
The CCEA will revisit this idea. Some thought may be given
to putting all types of federal credit in one "mini-budget,"
separate from the actual budget but assembled in one place
due to similarity and the need for close scrutiny.
THE WHITE HOUSE
WASHINGTON
November 4, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi
SUBJECT:
Specialty Steel Determination
For your information:
The subject of a specialty steel determination was dis-
cussed in senior staff this morning. Basically what
happened is that Brock prepared a memo for the President
on the subject that was circulated for comment. The memo
recommended that the President meet with representatives
of the U.S. industry very soon and
--
assure them that he would consider sympathetically
a Brock recommendation for a full period of relief;
and
--
put our trading partners on notice of our concern and
our willingness to impose emergency measures. Also,
if imports have not been dramatically reduced by
year's end, we would impose temporary import restric-
tions for the duration of the GATT 201 proceeding.
Clark had problems with the latter recommendation, as did
other agencies (who had not cleared it), and asked that
the matter be discussed between the agencies before it is
taken to the President.
It has apparently not yet been resolved, but must be set-
tled by November 16.
11/9
de
JAB
THE WHITE HOUSE
WASHINGTON
November 4, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi i jin
SUBJECT:
Final Returns of Texas State Races
The percentage totals of Texas state races are:
US SENATE
Bentsen
58.3
Collins
40.7
GOVERNOR
White
53.0
Clements
46.1
LT GOVERNOR
Hobby
58.2
Strake
40.7
ATTY GENERAL
Mattox
58.1
Meier
39.6
COMPTROLLER
Bullock
57.7
Richards
40.6
TREASURER
Richards
61.2
Clark
38.0
LAND COMM'R
Mauro
59.5
Glasscock 38.2
Over 3 million votes were cast. The official state estimate
was for a turnout of 2.5 million.
CC: Lee Atwater
Rich Williamson
Chase Untermeyer
THE WHITE HOUSE
WASHINGTON
November 5, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi
injury
SUBJECT:
LDC Debt Problems
CCEA and the President were given an update on the debt
problems of Argentina, Mexico, and Brazil, three nations
which are not earning sufficient foreign exchange to
service their debts. In summary, the key points were:
1.
Argentina: There is relatively good news here since
agreement has been reached with the IMF on all items
except for two minor ones. An IMF loan will probably
be approved by late December or early January, though
the Argentines will need "bridge" financing of about
$1.8B to tide them over till then. The IMF arrange-
ment has been explained to the Argentine public,
including the intention to hold inflation to 150%,
hold real wages to 5%, and hold down imports while
increasing exports. Our people now feel that the
problem is 90% solved, and that the political will to
follow through seems to be present. Argentina may be
able to pay back the IMF by March of 1984.
2.
Mexico: This is the most serious problem of the
three. It remains precarious because there has been
little progress toward an agreement with the IMF even
though such an agreement is vital. Mexico will need
$4B from the IMF over a 3-year period. One additional
note: Regan mentioned that a recent visit to Mexico
by David Rockefeller and Henry Kissinger was "counter-
productive" in that it sent the wrong signals to the
Mexican leadership.
3.
Brazil: The seriousness of this problem is not yet
widely known. Brazilian reserves are quite low, and
it is estimated that they will need financing of $3.5B
through the end of 1982.
Memorandum for James A. Baker, III
November 5, 1982
Page 2 of 2
Much of the problem of the above countries and other LDCs
is simply due to bad investments: they have put their
loan money into projects which have not produced the wealth
necessary to pay back the loans. Regan and Brock added
that, as a partial result of such problems, they feel that
the U.S. will have to substantially increase its contribution
to the IMF. The matter was reserved for a later decision,
however.
CC: Richard Darman
THE WHITE HOUSE
WASHINGTON
November 5, 1982
"MD
we
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi
SUBJECT:
Unemployment
which things
gabir
As you know, the unemployment rate is expected to increase
during the next several months. Our forecasts also indicate
that the rate will likely be over 9 1/2% through 1983, and
almost 9% during 1984.
With the prospect of high unemployment for the next two
years, it is, I feel, important not only that we formulate
policies which will specifically address the problem, but
also that the President be perceived as personally concerned
about unemployment and determined to do something about it.
As mentioned the other day, one idea would be for the
President to undertake a short series of visits to areas of
high unemployment. The visits could be characterized as an
attempt to personally view the problem, visit with those
most seriously affected, and discuss means of dealing with
it. The President could tour factories where layoffs are
threatened or where they have already occurred (with perhaps
more to follow), visit with local officials, and perhaps
have Q&A sessions with groups of unemployed workers. .]
Such sessions might, in some cases, be awkward or unpleasant;
however, it is important that the President convey an image
of being more personally and directly concerned about the
unemployed (as he is). His message, of course, is that we
are trying, we have already laid the groundwork, we are
looking at other possible measures to help, and that our top
priority is to put Americans back to work. The American
people, not just the unemployed, must feel that the President
is "on their side, that his concern for the unemployed and
his determination to help are beyond reproach Use of such
a strategy, combined with lack of a credible alternative
from the other party, is one of the reasons that FDR was able
to survive little progress on unemployment in 1936. In the
President's case, such an approach is important due to
problems we already have with the "fairness issue,' and in
order that the President's motives be above suspicion when
the inevitable fights begin with O'Neill over the specifics
of various "jobs" bills.
11/9
THE WHITE HOUSE
WASHINGTON
MKD
Whellwyn
November 5, 1982
think? JAB
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi in
SUBJECT:
Social Security and the Elderly
A suggestion for you to consider:
The President and the First Lady could perhaps have
Thanksgiving dinner with a group of people in a home for
the elderly. Such an action could have real symbolic
effect, and would be a way of confronting both the
"fairness issue" and fears about social security. I
realize, though, that this would entail a genuine
personal sacrifice on the President's part.
Another option would be for the President and First Lady
to simply visit such a home, or perhaps some elderly who
are hospitalized, during the Thanksgiving holiday period.
JAB:
Couldn 't we still do this
on next good out-of-town 12/9
trip ? Christmas? ye, yes for my Prepare sig a rite suggesting JAB T.M.D. is.
THE WHITE HOUSE
WASHINGTON
November 8, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi
S.
SUBJECT:
Medicare Cost Containment
As you know, the subject of controlling Medicare costs will
be discussed with the President on Wednesday. This has been
previously discussed in CCHR and can be summarized as follows:
The Problems
1. Medicare costs have increased dramatically since 1970.
For example:
1970
$ 9.3B
1975
20.8B
1980
47.3B
1985
94.8B (projected)
As you can see, these costs have become a major part of
the budget deficit problem in the out years. The trend
in recent years has been especially bad-- between 1975
and 1980, the annual increase in Medicare costs averaged
18%.
2. Currently, hospitals have no incentive to control costs.
The US government pays 40% of all hospital bills in the
country and, under Medicare, hospitals are paid whatever
they spend. This has, of course, resulted in hospital
cost increases which have run well ahead of the inflation
rate (as reflected in the CPI). In 1982, for example,
inflation in hospital costs was three times greater than
the overall inflation rate. It is argued that much of
this higher rate of increase is related to the above-
stated lack of cost control incentives, but a portion of
has also been used to fuel growth of 15-20% per year in
the hospital industry.
3. Medicare payments vary greatly without real difference
in the quality of care. For example, payments for a
heart attack (of similar nature and treatment) vary be-
tween $1500 and $9000; payments for cataract removal vary
between $450 and $2800.
Memorandum for James A. Baker, III
November 8, 1982
Page 2
Proposal for Prospective Payment
HHS is suggesting what amounts to a prospective payment system
whereby a hospital would have a good idea in advance what pay-
ments it can expect to receive for Medicare treatment. In short,
HHS would determine the proper payment level for 467 diagnosis
classifications, and would then make payments based on what the
diagnosis of a patient was at discharge plus a hospital-specific
adjustment formula (to account for differences in area costs
such as labor). HHS feels this would
a. provide hospitals with an incentive to hold down costs;
b. reward efficient delivery of services (since hospitals
could keep any surplus of payment over cost);
C. encourage hospitals to specialize, thus further re-
ducing costs while increasing quality;
d. limit the nearly automatic cost increases each year
(since all costs incurred are reimbursed) to a set
formula that would be devised to reflect legitimate
cost inflation plus an allowance for new technology.
Ancillary benefits of the proposal are that it reduces the
regulatory burden (simpler forms), allows Medicare to accurately
forecast expenditures (which cannot be done now with any relia-
bility), and is less complex to administer since there is one
set of payment levels.
Payment Classifications
Some examples of classifications for diagnosis were given in
the CCHR meeting. Though I had thought it would be impossible
to take into account all the variables, HHS seems to have done
a very convincing job. The classifications themselves are based
on an extensive Yale study, and include four factors: diagnosis,
age, treatment, and discharge status. While there is admittedly
some incentive for doctors to upgrade a diagnosis to obtain
higher payments, it is felt that this is not likely since it
would more directly involve a doctor's integrity. If it became
a problem, though, the auditors could easily focus on it.
Other Options
Other options considered were:
1. Per diems-- in essence, paying hospitals according to the
Memorandum for James A. Baker, III
November 8, 1982
Page 3
number of patients hospitalized each day. HHS dislikes
this because there is a built-in incentive for hospitals
to keep patients as long as possible, thereby running up
costs further.
2. Per capita payments for Medicare patients of $2,000 each,
the average Medicare patient cost. This option is being
pushed by the Hospital Association. HHS opposes it, ar-
guing that some hospitals will "skim" the less costly
patients and make a big profit, leaving the taxpayer
supported hospitals with the burden of handling the most
costly patients (those above the average $2,000 payment).
Outlook
It is clear to all that Medicare costs need to be brought under
some control. The same arguments that apply to cutting other
areas of the budget, like entitlements, also apply here with
the same degree of urgency. If that is accepted, then it can
be argued that the HHS "prospective payment proposal" is prob-
ably the best option for achieving the necessary incentives
to hold down costs.
From a political standpoint, the Hospital Association will
fight this proposal tooth and nail. The AMA, though it has
not committed itself fully yet (and Schweiker has some hope),
will probably also fight it. The insurance industry, on the
other hand, might well be an ally here since they might reason-
ably conclude that success in holding down Medicare costs would
also hold down all health care costs in a sort of ripple effect.
This plan will be presented to the President on Wednesday.
Once a decision has been made, and full details are revealed,
we will have a much better picture of its prospects in Congress.
CC: Richard Darman
THE WHITE HOUSE
WASHINGTON
November 9, 1982
MEMORANDUM FOR DAVE GERGEN
FROM:
Jim Cicconi
jur
SUBJECT:
Draft Materials for President's News
Conference
References to the Clean Air Act in the draft materials
include a note to the President regarding possible "use of
low-cost lime in lakes" to combat the acid rain problem.
The draft also mentions that "except for acid rain
provisions, the Senate bill is generally acceptable."
It is my understanding that EPA would be strongly opposed
to the above references. On the subject of using lime in
lakes, EPA says that, while this might be of some help in
smaller lakes, it is not an answer to the overall problem.
Kathleen Bennett at EPA told me that any reference to use
of lime in lakes would raise all sorts of questions that
we cannot now answer and could imply that we thought it
was an answer to acid rain in general. Regarding the
Senate bill, it is my understanding that EPA has serious
problems with several parts of the bill apart from the
acid rain provision.
CC: Richard Darman
Craig Fuller
Thank.
JAB
You asked what we
11/16 qe bottood there
THE WHITE HOUSE
might put into a
WASHINGTON
"jobs package
your
views
November 11, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi
June
SUBJECT:
Legislative Package Designed to Create Jobs
In addition to the transportation user fees proposal, which
would create an estimated 320,000 jobs, there are two other
proposals which look promising in terms of job creation.
They are:
1.
Converting extended unemployment benefits into an
optional employment cost reduction. This would apply
only in those high unemployment states where workers
are currently eligible for up to thirteen weeks of
extended benefits. While it sounds complicated, it
boils down to this: an unemployed worker can choose
to receive his extended benefits in voucher form; his
employer could then redeem the voucher to defray the
cost of that employee's wages. This would be a type
of job subsidy which would encourage firms to hire the
unemployed by reducing wage costs.
The number of jobs subsidized would be around one
million, though it is estimated that only 100,000 net
new jobs would be created in FY 1983. Cost in FY 1983
is estimated at $1.2B to $2.0B. Costs, and jobs created
or subsidized in FY 1984, would be about 1/3 of the
figures for 1983.
This option was attractive to CCEA, and a more detailed
paper was requested on it. It was also suggested that
the proposal could be funded by taxation of unemployment
benefits.
2.
Implementing a summer youth differential for the minimum
wage. In short, this option would allow a minimum wage
of $2.50/hr. instead of the current minimum wage of
$3.35/hr. for youth under the age of 22. The differen-
tial would apply only during the period May 1 through
September 30. The AFL-CIO, as you know, has always
opposed a lower minimum wage for youth, arguing that
it would result in the displacement of older workers.
That argument, however, would probably not apply to
this idea since displacement is very unlikely when the
differential applies only in summer months.
Memorandum for James A. Baker, III
November 11, 1982
Page 2 of 2
It is estimated that between 300,000 and 600,000 new
summer jobs would be created by this. The proposal
would not require federal outlays and would, in fact,
reduce the cost of our current summer youth program
by $75M.
The two proposals mentioned above are being seriously looked
into by CCEA on a "crash" basis.
THE WHITE HOUSE
WASHINGTON
November 12, 1982
MEMORANDUM FOR JOHN SCHROTE
FROM:
Jim Cicconi
SUBJECT:
Harold Montgomery
Attached is the resume of Harold Montgomery. He is a recent
graduate of Stanford and is interested in a job with the
Administration. While his main interest is in foreign
policy, he is interested in policy generally.
I know Harold's older brother, Phil, quite well. Harold is
a solid Republican and did volunteer work for Reagan-Bush
in 1980. I think he'd be very good in one of the staff
level policy positions we've had trouble placing Republicans
in, and I would appreciate any consideration you might give
him.
As I understand it, Anne Armstrong will also be sending
Helene a note recommending Harold.
Thanks.
HAROLD HENCH MONTGOMERY
ADDRESS:
6343 Kalani Place
Birthdate: September 20, 1959
Dallas, Texas
Height: 6'2"
75240
Weight: 170 lbs.
(214) 239-3667
7
OBJECTIVE:
To obtain a position in investment banking or consulting which will allow access to decision-
making processes.
EDUCATION:
Stanford University, BA in International Relations, awarded June, 1982.
Stanford University Overseas Campus, Florence Italy, Autumn, 1980.
Stanford University Overseas Campus, Cliveden England, Summer, 1980.
St. Mark's School of Texas, 1966-1978.
EXPERIENCE:
Resident Assistant, 558 Mayfield House, Stanford University.
Salaried University-student residence liaison, responsible for activities and residence of 53
undergraduates, 1981-82.
Research Associate, New Venture Consultants, Palo Alto, California.
Work in Management Consulting and Financial Analysis, Summer, 1981.
Intern, Office of the Secretary of State of the State of Texas, the Capitol, Austin. Special
Assistant to the Secretary, Speechwriting and Internal Policy Review, Summer 1979.
Research Associate with the Australian Department of the Interior Scientific Expedition to the
Northern Territory to study the Salt-Water Crocodile, Summer, 1978.
Research Associate with the Cornell University Scientific Expedition to Caripe, Venezuela to
study the Oilbird, Summer, 1977.
ACTIVITIES:
Contributing Editor, The Stanford Independent, 1981-1982.
Political Science Honor Society, 1982.
Biweekly Columnist, The Stanford Daily, 1981.
*
Economics Editor, The Stanford Journal of Economics and Political Science, 1981.
Travel to 28 States and 41 Foreign Countries on Six Continents, including People's Republic of
China, India, U.S.S.R., Hungary, Brazil, South Africa.
Living Experience in 5 Foreign Countries. (Australia, Great Britain, Italy, Spain, Venezuela.)
INTERESTS:
Natural History, Travel, Literature, Languages (Working Knowledge of Spanish and Italian),
Politics.
REFERENCES:
Available on Request to the Stanford University Career Planning and Placement Center.
THE WHITE HOUSE
WASHINGTON
November 12, 1982
MEMORANDUM FOR SENIOR STAFF
FROM:
Jim Cicconi
SUBJECT:
Senior Staff Meetings
There will be no senior staff meetings November 15, 16 or 17.
Meetings will resume November 18.
Thank you.
THE WHITE HOUSE
WASHINGTON
November 12, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi
yin
SUBJECT:
Judicial Meeting Decisions
The following significant actions were taken at Wednesday's
Judicial Selection Committee meeting:
1.
7th Circuit: A decision will need to be made on whether
to reject Judge Flaum, who has the strong support of
Percy and Thompson. This matter had been left on hold
until after the election. There is strong sentiment
to reject Flaum on the part of both Meese and Justice
(for philosophical reasons--Justice says he would be a
"John Paul Stevens type judge"). I asked that Rich
Williamson be informed and given a last chance to weigh
in on this.
2.
5th Circuit: As already mentioned, I spoke strongly
against naming Ben Toledano, arguing that the inevitable
furor over his racist background would hurt the President.
Fred then asked everyone on the Committee to express
their views, and the vote was 7-1 against Toledano.
Fred's next step will be to consult with you and Ed
Meese, and then have the President make the decision.
(FYI, I talked with Governor Treen before the meeting,
and he strongly supports Toledano.)
3.
Pennsylvania Judgeships and U.S. Attorney: I have
already briefed you on most of this. Fred has a draft
letter ready to send to Specter, but said he intends to
hold it until after Drew Lewis talks with you.
4.
Claims Court: Sherm Unger continues to have problems
with the ABA. The concerns are in their "integrity"
and "judicial temperament" categories. Justice is
independently trying to resolve the integrity questions;
if they do, the feeling is that we could then push it
through. Justice feels the ABA's "temperament" concerns
are a smokescreen for personal animosities.
5.
District Judgeships, E.D. Tennessee: Howard Baker was
holding on these until after the election. Since the
situation in that district is a bit of a problem, we
expect he will move soon.
Memorandum for James A. Baker, III
November 12, 1982
Page 2 of 2
One additional note: we are moving forward quickly with
those appointments where election changes would make post-
January confirmation more difficult. Examples are the
district judgeships in Ohio (Bell) and New Jersey (Bissell). -
THE WHITE HOUSE
WASHINGTON
November 16, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi his
SUBJECT:
Number of Federal Employees
You will recall that, in the wake of several news stories,
you raised the question as to whether we have actually
reduced the number of federal employees during the first
year of the Administration.
In response, Ed Meese asked that Don Devine prepare a report
for CCMA with the exact figures. At a later CCMA meeting,
however, Devine indicated that it was not possible to come
up with exact figures until some standard method of measur-
ing the number of employees is agreed on or imposed. He
pointed out, for example, that some agencies measure the
number of employees in FTE (full time equivalents), while
others use body count or some other method. It is uncertain
when a reliable report will be available, though they are
continuing to work on it.
Various estimates are available, though, and while not
exact, they indicate that we are meeting the President's
goal of reducing non-defense employment by 75,000. OPM
estimates that it has already been reduced by 31,000 "FTE
work years," and, if body count is used, the reduction
stands at 100,000 fewer employees (excluding defense) than
in January, 1981. Incidentally, over 90% of the 100,000
figure has been achieved through attrition, not RIFs.
any/
the net after
CC: Richard Darman
giving your in DOD's
minase civilian
answered JAB in sep. 511/23 meme
THE WHITE HOUSE
WASHINGTON
16 November 1982
TO: JAB III
FYI, you asked that I check into a
plan of Byron Donzis re radiating food.
I have arranged for him to meet with
Jay Keyworth on his ideas this Wed-
nesday. Jay will then get back to
me with an evaluation, and we'll
pursue further if necessary.
lie
THE WHITE HOUSE
WASHINGTON
16 November 1982
TO: JAB III
RE: Busing
For your information:
The Justice Department has filed an
amicus brief asking the Supreme Court
to review a Nashville busing case.
Justice wants the court to rule that
lower courts have the flexibility to
cancel busing/desegregation plans
that prove counter-productive (by
causing white flight, disrupting
education programs, etc.).
As I understand it, Justice has been
looking for the "right"case to take
to the Supreme Court. They apparently
feel this is it. The chances for
review by the court are greatly im-
proved by Justice's filing.
THE WHITE HOUSE
WASHINGTON
November 16, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi Am
SUBJECT:
Specialty Steel
For your information:
The decision memo on the specialty steel issue went to the
President yesterday morning. He has decided on Option 1.
This option is the one endorsed by USTR, Commerce, State,
and others. Under its terms, the President will request
a Section 201 investigation by the International Trade
Commission to determine whether increased imports have
caused serious injury to the domestic specialty steel
industry. If the ITC determines that imports have caused
serious injury, the President will then have the option of
imposing import restraints. Also, the Administration will
closely monitor imports during the Section 201 investiga-
tion: this implies the possibility of emergency action
under Section 301 if it is felt that imports will cause
extreme damage before the Section 201 investigation is
complete. Lastly, we will press the Europeans in new
negotiations to eliminate their subsidies.
THE WHITE HOUSE
WASHINGTON
17 November 1982
TO: JAB III
RE: David Paton
You'll recall that David Paton has
continued to contact you about HHS
proposals re the Medicare reimburse-
ment of optometrists. Paton and
other opthalmologists are incensed
about the regs.
FYI, at my request Chris DeMuth had
his staff do a detailed review of the
regs. I asked for this after Paton
sent you a very sharply worded response
to your letter on the regs (which Chris
had drafted).
Bottom line is that Chris is convinced
HHS' regs are reasonable. The final
regs will come over in the spring,
and OMB intends to approve them. No
doubt you'll hear more from Paton
between now and then, but his views
have received more than an ample
hearing and he's changed no one's
mind.
June
THE WHITE HOUSE
WASHINGTON
November 18, 1982
MEMORANDUM FOR ARAM BAKSHIAN
FROM:
Jim Cicconi AW
SUBJECT:
Radio Talk on Trade
Regarding the revised draft of the radio talk recently
circulated, I would suggest that the consequences of
protectionism are a bit overdrawn. On page 2, for example,
I feel it is an exaggeration to state that protectionism
and trade wars led to World War II. Admittedly, resource/
trade problems were a major factor in Japan's decision to
go to war in 1941; however, there were many other factors
at play, including militarism, which makes this a deceptive
analogy. Further, it could be argued that war with Japan
resulted more from U.S. trade sanctions imposed for foreign
policy reasons (which could in turn raise questions about
the consequences of our trade sanctions against the Soviet
Union).
On another point, the statement (on page 4 of the revised
draft) that the U.S. will seek to ensure that our industries
"can compete on an equal basis in international trade" is a
positive addition. The original draft sent the desired
subtle signals abroad, but did not have the necessary
signals for domestic consumption.
CC: Richard Darman
Revised
Document No.
WHITE HOUSE STAFFING MEMORANDUM
DATE: November 18
ACTION/CONCURRENCE/COMMENT DUE BY: c.o.b. TODAY
SUBJECT:
PRESIDENTIAL RADIO TALK RE TRADE
ACTION FYI
ACTION FYI
VICE PRESIDENT
FULLER
MEESE
GERGEN
BAKER
HARPER
DEAVER
JENKINS
STOCKMAN
MURPHY
CLARK
ROLLINS
DARMAN
P
SS
WILLIAMSON
DOLE
\
VON DAMM
DUBERSTEIN
BRADY/SPEAKES
FELDSTEIN
ROGERS
FIELDING
BAKSHIAN
Remarks:
Please provide any comments directly to Aram Bakshian by c.o.b.
today, with an information copy to my office.
Thank you.
Richard G. Darman
Assistant to the President
(x2702)
Response:
(Elliott)
November 18, 1982
10:30 a.m.
PRESIDENTIAL RADIO TALK: TRADE
SATURDAY, NOVEMBER 20, 1982
My fellow Americans. I've talked to you on a number of
occasions about the economic problems and opportunities our
Nation faces. But as you've probably heard on news reports,
America's problems are not unique. Other nations face very
severe economic difficulties. In fact, both developed and
developing countries alike have been in the grips of the longest
worldwide recession in post-war history.
That's bad news for all of us. When other countries don't
grow, they buy less from us and we see fewer jobs created at
home. When we don't grow, we buy less from them, which weakens
their economies, and, of course, their ability to buy from us.
It's a vicious cycle.
You can understand the danger of worldwide recession when
you realize how much is at stake. Exports account for over
5 million jobs in the United States. One out of every three
acres planted by American farmers produces crops for exports.
But because of their recessions, other countries are buying fewer
American farm products than usual. Our farmers are hurting, and
they're just one group.
So we are trying to turn this situation around. We are
reminding the world that, yes, we all have serious problems; but
our economic system, based on individual freedom, private
initiative and free trade, has produced more human progress than
Page 2
any other in history. It's in all our interests to preserve it,
protect it and strengthen it.
We are reminding our trading partners that preserving
individual freedom and restoring prosperity also requires
limiting Government intervention in the marketplace. The United
States took the lead, after World War II, in creating an
international trading and financial system that limited
Governments' ability to disrupt free trade across borders. We
did this because history had taught us an important lesson: free
trade serves the cause of economic progress; and it serves the
cause of world peace.
When governments get too involved in trade, economic costs
increase and political disputes multiply. Peace is threatened.
In the 1930's, the world experienced an ugly spectre:
protectionism and trade wars that eventually led to real wars and
unprecedented suffering and loss of life.
I hear some say today that we must run up the American flag
in defense of our markets. They would embrace protectionism
again and insulate our markets from world competition. The last
time the United States tried that, American boys soon followed
the American flag into World War II. I am old enough, and
hopefully wise enough, not to forget the lessons of those unhappy
years. The world must never live through such a nightmare again.
We are in the same boat with our free world trading
partners. If one partner shoots a hole in the boat, does it make
sense for the other one to shoot another hole in the boat? Some
say yes and call that getting tough. I call it stupid. We
Page 3
shouldn't be shooting holes, we should be working together to
plug them up. We must strengthen the boat of free markets and
free trade, SO it can lead the world to economic recovery and
greater political stability.
Here's how we are working to do that:
We insist on sound domestic policies at home that bring down
inflation and we expect no less in other countries. Through the
International Monetary Fund, the world institution that manages
money, we are putting pressure on other countries to correct
their domestic economic policies SO they will not have to
intervene in international trade and currency markets.
We remind other countries that as the U.S. leads the way out
of this worldwide recession, they will benefit as we buy more
goods from them. This will enable them to grow and buy more
goods from us an that will mean more jobs for all of us. That is
the way of free markets and free trade.
We will say no to protectionism, because it can only lead to
less jobs for them and less jobs for us. In just four days, the
trade ministers of virtually all the free world countries will
meet in Geneva, Switzerland, to seek ways to respond to the
challenges to the integrity of our international economic system.
We were instrumental in convening this international meeting
because we believe strongly that our trading system is at a
crossroads. Either free world countries go forward, and sustain
the drive toward more open markets, or, they slide back to the
mistakes of the 1930's, and succumb to the evils of more and more
government intervention.
Page 4
The United States will reject protectionist and defeatist
proposals. Instead, we will set new goals and lay out a program
for limiting government intervention in world markets.
We will lead with a clear sense of our own commercial
interests and a quiet determination to defend these interests.
We will ensure, through our actions at home and abroad, that U.S.
industries can compete on an equal basis in international trade.
Let no one misunderstand us: We are generous and farsighted in
our goals, but we intend to use our full power to achieve these
goals. We seek to plug the holes in the boat of free markets and
free trade and get it moving again in the direction of
prosperity. But our influence is big, and no one should mistake
our determination to use it if they seek to destroy the boat and
sink us all.
That's how the United States is working in the world on
behalf of freedom, economic prosperity and peace.
I'll be back again next week. Thanks for listening. God
bless you.
THE WHITE HOUSE
WASHINGTON
19 November 1982
TO: JAB III
RE: Sherm Unger
Unger has some real problems with
the ABA on two grounds: integrity
and judicial temperament. In the
last meeting, we felt that if Justice
could resolve the integrity questions
to our satisfaction, then we could
roll the ABA on the temperament
points (which are the ones that really
involve sour grapes on the part of
lawyers he's beaten).
Ed Schmults told me today that there
are three "integrity" points that
"are not insignificant", but which
would not be sufficient normally to
disqualify Unger. However, Schmults
thinks they're such that you should
be personally briefed on them before
deciding.
Fred Fielding will be in touch with
you soon to go over those concerns.
in
RGD
THE WHITE HOUSE
WASHINGTON
BRIEFING MEMORANDUM FOR THE PRESIDENT
Friday, November 19, 1982
9:30 a.m. (90 minutes)
The Cabinet Room
I.
PURPOSE
This is a continuation of the last budget meeting. It is
intended to focus on several substantial "loose ends" --
as suggested by the agenda below.
It is not a decision meeting. But your reactions/guidance
will be helpful in giving direction for further staff
work.
II. AGENDA
(1) Summary of where we left off -- after non-defense
guidance of November 12th.
(a) How do recommended cuts relate to cuts
previously sought from the Congress?
(b) What percentage of these are we likely to be
able to achieve politically?
(c) What are the economic implications of the
associated deficit projections?
(2) Additional issues affecting deficits and growth:
(a) Tax cut accleration
(b) Lewis plan re gas tax and infrastructure
(c) Social Security problem-solving
(d) Inflation or Budget Resolution Adjustment
for Defense
III. PARTICIPANTS
The President
George P. Shultz
Malcolm Baldrige
Donald T. Regan
David A. Stockman
Edwin Meese III
James A. Baker III
Michael K. Deaver
William P. Clark
Richard G. Darman
Martin S. Feldstein
Craig L. Fuller
Edwin L. Harper
Richard S. Williamson
harmon Unger - up for Judgeship - has
some people in the ABA shooting at him,
Justice says after investigations that there
is nothing to them 1 we should go
ahead & appoint him.
/ concur - no check on him has
shown him to be guilty of aughing
but being amount aggresset tough
The ABA hasmit come out against
him - they just wont make stolling a
recommendation after some
months. Its unfair; we should
appoint him now so The
lame duch wassion can approve
IC When ase we on this?
JABIE
THE WHITE HOUSE
WASHINGTON
November 22, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi
SUBJECT:
Senator Hatch's Displaced Workers Bill
You asked that I check into this legislation by Senator
Hatch with a view toward whether it might be the type of
bill we could endorse.
The bill, in short, provides federal funds for state-level
planning to deal with layoffs through counseling, retrain-
ing, etc. Workers would be eligible for such programs
when they apply for unemployment benefits if a state
counselor certified their need for retraining. The
authorization for FY 1983 is $300M.
Though there may be some points here we might develop
further, this bill, on the whole, is the type of "solution"
to a social problem that has caused much of our current
budget problem. The initial authorization of $300M would
probably balloon greatly in future years. In effect, Uncle
Sam might end up paying for much of the massive job re-
training that is inevitable over the next decade due to
basic changes in the U.S. economy.
The basic retraining of workers is more properly the respon-
sibility of the private sector: not just the responsibility
of those companies laying off workers, but also of those
companies who will be needing workers in the future. In the
case of the latter, the future of many companies, particu-
larly high tech industries, is tied to the availability of
trained workers. The role of government should be to
encourage this activity within the private sector, perhaps
through tax incentives/writeoffs or even partial funding of
startup costs.
I am going to discuss some possible alternatives on the
subject with Al Angrisani of DOL.
ORRIN G. HATCH
CHAIRMAN
United States Senate
COMMITTEE ON
LABOR AND HUMAN RESOURCES
November 9, 1982
Jim--
Here is some summary information
on S. 2650, the Displaced Worker Readjust-
ment Act.
The bill was suggested to Senator
Hatch by a Utah constituent who is also
prominent in the field of labor and
manpower economics.
If you have any further questions
or need for material, please do not
hesitate to call.
Kris Iverson
224-2550
II
97TH CONGRESS
2D SESSION
S.2650
To provide readjustment services to workers permanently displaced from their
jobs, and for other purposes.
IN THE SENATE OF THE UNITED STATES
JUNE 18 (legislative day, JUNE 8), 1982
Mr. HATCH introduced the following bill; which was read twice and referred to
the Committee on Labor and Human Resources
A
BILL
To provide readjustment services to workers permanently
displaced from their jobs, and for other purposes.
1
Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That this Act may be cited as the "Displaced Worker Read-
4 justment Act of 1982".
5
STATEMENT OF PURPOSE
6
SEC. 2. It is the purpose of this Act, through grants to
7 States, to facilitate the readjustment to new employment of
8 workers permanently displaced from their customary employ-
9 ment because of technological change, international competi-
2
1 tion, shifts in consumer preferences, business failures, and
2 other factors by-
3
(1) encouraging employers to give advance notice
4
of impending plant closings or mass layoffs,
5
(2) providing for cooperation between employers
6
and public agencies in facilitating transfer to new em-
7
ployment opportunities prior to layoff,
8
(3) developing and carrying out reemployment
9
plans to achieve readjustment for displaced workers,
10
(4) making available transition services to accom-
11
plish such readjustment, and
12
(5) using the period of unemployment compensa-
13
tion eligibility to carry out readjustment activities.
14
DEFINITIONS
15
SEC. 3. As used in this Act-
16
(1) The term "displaced worker" means any indi-
17
vidual who is laid off from regular employment, who
18
was previously steadily employed, and who has little
19
realistic probability of being rehired in that previous
20
employment or of being rehired, in a timely fashion, in
21
a job of equal pay and status, as determined by the
22
State.
23
(2) The term "Secretary" means the Secretary of
24
Labor.
S 2650 IS
3
1
(3) The term "State" includes the several States,
2
and the District of Columbia.
3
(4) The term "unemployed persons" means per-
4
sons who are without jobs and who want or are availa-
5
ble for work. The determination of whether persons are
6
without jobs shall be made in accordance with criteria
7
used by the Bureau of Labor Statistics, the Depart-
8
ment of Labor in defining persons as unemployed.
9
AUTHORIZATION OF APPROPRIATIONS
10
SEC. 4. There are authorized to be appropriated
11 $300,000,000 for the fiscal year 1983 and for each of the
12 succeeding three fiscal years to carry out the provisions of
13 this Act.
14
ALLOTMENT
15
SEC. 5. (a) From the amount appropriated for fiscal year
16 1983 under section 3, the Secretary shall-
17
(1) allot 50 per centum of such amounts on the
18
basis of the relative number of unemployed persons
19
during the calendar year 1982 within the State com-
20
pared to the total number of such persons in all States;
21
and
22
(2) allot 50 per centum of such amount on the
23
basis of the relative number of unemployed persons
24
who were unemployed for fifteen weeks or more during
S 2650 IS
4
1
the calendar year 1982 within the State compared to
2
the total number of such persons in all States.
3
(b) From the amount appropriated for fiscal year 1984
4 and each succeeding fiscal year the Secretary shall-
5
(1) allot to each State an amount which bears the
6
same ratio to 50 per centum of such amount as the
7
amount expended by that State in the fiscal year prior
8
to the fiscal year for which the determination is made,
9
for the uses described in section 6(1) bears to the total
10
amount SO expended for all States; and
11
(2) allot to each State an amount which bears the
12
same ratio to 50 per centum of such amount as the
13
amount expended by that State in the year preceding
14
the fiscal year for which the determination is made for
15
the purposes described in section 6(2) bears to the total
16
amount SO expended for all States.
17
(c) The portion of any State's allotment under subsec-
18 tion (a) or subsection (b) for a fiscal year, which the Secretary
19 determines will not be required for the period such allotment
20 is available for carrying out the purposes of this Act, shall be
21 available for reallotment from time to time, on such dates
22 during such period as the Secretary may fix, to other States
23 based on need and ability to expend the funds consistent with
24 the provisions of this Act and taking into account the propor-
25 tion of the original allotments made available to such States
S 2650 IS
5
1 under subsections (a) and (b), as the case may be, for such
2 year, but with such proportionate amount for any of such
3 other States being reduced to the extent it exceeds the sum
4 which the Secretary estimates such State needs and will be
5 able to use for such period for carrying out such portion of its
6 State application approved under this Act, and the total re-
7 duction shall be similarly reallotted among the States whose
8 proportionate amounts are not SO reduced. In carrying out
9 the requirements of this subsection, the Secretary shall take
10 into account the climatic conditions and such other relevant
11 factors as may be necessary to assure that no State loses
12 funds necessary to carry out the purposes of this Act. Any
13 amount reallotted to a State under this subsection during a
14 year shall be deemed part of its allotment under subsections
15 (a) and (b), as the case may be, for such year.
16
(d) Any allocation to a State may be reallocated only if
17 the Secretary provides thirty days advance notice to the chief
18 executive.
19
USES OF FUNDS
20
SEC. 6. Grants under this Act shall be used in accord-
21 ance with the provisions of this Act, by the States—
22
(1) for mass layoff and plant closing early warning
23
readjustment services programs; and
24
(2) unemployment insurance reemployability plan-
25
ning programs.
S 2650 IS
6
1
APPLICATIONS AND REQUIREMENTS
2
SEC. 7. (a) Each State desiring to receive an allotment
3 for a fiscal year under this Act, shall submit an application to
4 the Secretary. Each such application shall be in such form as
5 the Secretary shall require. Each such application shall-
6
(1) provide for the establishment and operation by
7
the State of an early warning readjustment service pro-
8
gram for displaced workers described in clause (2) and
9
an unemployment insurance reemployability planning
10
program for displaced workers described in clause (3),
11
which will be the joint responsibility of the State job
12
training council and the State department of employ-
13
ment security (or other similar agency designated by
14
the chief executive);
15
(2) describe the provisions for an early warning
16
readjustment service program designed to assure-
17
(A) that each employer within the State con-
18
templating closing a facility within the State em-
19
ploying more than twenty-five employees or
20
laying off more than twenty-five per centum of
21
the employees of any single facility within the
22
State will be eligible for the readjustment services
23
assisted under this Act if the employer provides at
24
least one hundred and eighty days notice of such
25
closing or layoff, except that the warning period
S 2650 IS
7
1
may be reduced to ninety days if the employer
2
provides persuasive evidence that knowledge prior
3
to the regular period was not available;
4
(B) that the notice required by an employer
5
under subclause (A) will be made to the State job
6
training council, the department of employment
7
security (or similar agency of the State as desig-
8
nated by the chief executive), the appropriate
9
local private industry council, or the appropriate
10
local office of the State employment service;
11
(C) that (i) the notice given by the employer
12
under subclause (B) will be forwarded to the chief
13
executive of the State promptly, and that upon re-
14
ceiving the notice the readjustment service of the
15
State assisted under this Act will take the initia-
16
tive in appointing and assembling a readjustment
17
committee consisting of representatives of the no-
18
tifying employer of the displaced workers of that
19
employer, the State department of employment
20
security (or similar agency as designated by the
21
chief executive), the local private industry council
22
and other appropriate public agencies and private
23
organizations; and (ii) where a collective-bargain-
24
ing agreement is in effect the representatives of
S 2650 IS
8
1
the labor organization will be included in such re-
2
adjustment committee;
3
(D) that the readjustment committee estab-
4
lished under subclause (C) will prepare a readjust-
5
ment plan which is satisfactory to both the em-
6
ployer and representatives of the displaced work-
7
ers, to and will be effective only if the chief ex-
8
ecutive approves of the plan;
9
(E) the readjustment services for displaced
10
workers will include-
11
(i) personal and family counseling;
12
(ii) career planning;
13
(iii) job search training;
14
(iv) job development;
15
(v) communication with other potential
16
employers;
17
(vi) on-the-job training by other employ-
18
ers;
19
(vii) on-the-job training in other estab-
20
lishments of the participating employer;
21
(viii) retraining in classroom settings;
22
(ix) relocation assistance; and
23
(x) other services with a high probabil-
24
ity of reducing the personal and economic
25
costs of readjustment; and
S 2650 IS
9
1
(3) provide for the establishment of an unemploy-
2
ment insurance reemployability planning program
3
under which-
4
(A) any claimant for unemployment insur-
5
ance benefits who is a displaced worker and
6
who-
7
(i) considers it unlikely that the claimant
8
will be rehired by the immediate previous
9
employer of such claimant, and
10
(ii) considers reemployment by other
11
employers in the local labor market of which
12
the claimant is a resident to be unlikely,
13
may participate in a reemployability program described
14
in this paragraph;
15
(B) the displaced worker claimant described
16
in subparagraph (A) may volunteer to participate
17
in the development of a reemployment plan during
18
the first six weeks of eligibility for unemployment
19
insurance benefits, and, if the claimant SO volun-
20
teers, will be required to report for an assessment
21
by a job service counselor and develop a reem-
22
ployment plan with the counselor;
23
(C) the reemployment plan will include-
S 2650 IS
10
1
(i) assurance from the previous employ-
2
er of a displaced worker of an early recall to
3
employment, if possible;
4
(ii) job search training leading to super-
5
vised job search and job development, includ-
6
ing the teaching of basic job seeking skills
7
relating to attitude development, interview-
8
ing skills, decisionmaking skills, self-evalua-
9
tion, labor market information, the use of
10
local resources for finding employment and
11
other appropriate skills leading to supervised
12
but self-directed employment search;
13
(iii) referral to an on-the-job training
14
program or classroom occupational and em-
15
ployability training except that not to exceed
16
50 per centum of the compensation paid for
17
on-the-job training may be paid for from fi-
18
nancial assistance paid under this Act;
19
(iv) development of a relocation plan
20
which includes assurances from an employer
21
in another community that work is available
22
to the claimant and such relocation plan may
23
include reimbursement for the cost of job
24
search activities with perspective employers,
25
transportation costs for the claimant, his
S 2650 IS
11
1
family and household furnishings, and allow-
2
ances for deposits and other costs associated
3
with relocation; and
4
(v) a statement by the employment
5
counselor that good and sufficient reasons
6
exist for some other alternative program for
7
the displaced worker,
8
(D) the State will, wherever practicable to
9
assure the continued participation of each dis-
10
placed worker claimant in the program assisted
11
under this Act, provide for conditioning the pay-
12
ment of unemployment insurance benefits on con-
13
tinued participation in the program, consistent
14
with the requirements of section 3304 of the In-
15
ternal Revenue Code of 1954;
16
(4) contain provisions describing the manner
17
in which the State will participate in an interstate
18
layoff and plant closing program established by
19
the Secretary;
20
(5) contain assurances that the State will
21
comply with the limitations contained in section 8;
22
and
23
(6) contain such other provisions as the Sec-
24
retary may reasonably require.
S 2650 IS
12
1
(b) The Secretary shall approve any application which
2 meets the requirements of subsection (a), and shall not disap-
3 prove any application submitted under subsection (a) without
4 first affording the State an opportunity for a hearing.
5
LIMITATIONS ON USES OF FUNDS UNDER THIS ACT
6
SEC. 8. (a) No grant under this Act may be used by the
7 State or may be used by any other person with which the
8 State makes arrangements to carry out the provisions of this
9 Act to pay compensation to any displaced worker not de-
10 scribed in the application submitted under section 7 or to
11 make payments for living expenses of the displaced worker
12 claimant under the reemployability plan described in such ap-
13 plication.
14
(b) No State may use more than 15 per centum of the
15 amount received by the State in each fiscal year for adminis-
16 trative expenses.
17
AUDIT
18
SEC. 9. (a) Each State shall provide such fiscal control
19 and fund accounting procedures as may be necessary to
20 assure the proper disbursal of and accounting for Federal
21 funds paid to the State under this Act, including procedures
22 for monitoring the assistance provided under this Act and
23 provide that at least every year each State shall prepare an
24 audit of its expenditures of amounts received under this Act.
25 Each audit required under this subsection shall be conducted
S 2650 IS
13
1 by an entity independent of any agency administering activi-
2 ties or services carried out under this Act and shall be con-
3 ducted in accordance with generally accepted accounting
4 principles. Within thirty days after submit a copy of such
5 audit to the Secretary.
6
(b) The Comptroller General of the United States shall,
7 from time to time, evaluate the expenditures by the State of
8 grants under this Act in order to assure that expenditures are
9 consistent with the provisions of this Act to determine the
10 effectiveness of the State in accomplishing the purposes of
11 this Act.
12
PAYMENTS TO STATES
13
SEC. 10. (a) From its allotment under section 5, the
14 Secretary shall make payments to each State in accordance
15 with section 203 of the Intergovernmental Cooperation Act
16 of 1968 (42 U.S.C. 4213), for use under this Act.
17
(b) Payments to a State from its allotment for any fiscal
18 year must be expended by the State in such fiscal year.
19
NONDISCRIMINATION PROVISIONS
20
SEC. 11. (a) No person shall on the ground of race,
21 color, national origin, or sex be excluded from participation
22 in, be denied the benefits of, or be subjected to discrimination
23 under, any program or activity funded in whole or in part
24 with funds made available under this Act. Any prohibition
25 against discrimination on the basis of age under the Age Dis-
S 2650 IS
14
1 crimination Act of 1975 or with respect to an otherwise
2 qualified handicapped individual as provided in section 504 of
3 the Rehabilitation Act of 1973 shall also apply to any such
4 program or activity.
5
(b) Whenever the Secretary determines that a State that
6 has received a payment under this Act has failed to comply
7 with subsection (a) of this section or an applicable regulation,
8 he shall notify the chief executive of the State and shall re-
9 quest him to secure compliance. If within a reasonable period
10 of time, not to exceed sixty days, the chief executive fails or
11 refuses to secure compliance, the Secretary is authorized to
12 (1) refer the matter to the Attorney General with a recom-
13 mendation that an appropriate civil action be instituted, (2)
14 exercise the powers and functions provided by title VI of the
15 Civil Rights Act of 1964, the Age Discrimination Act of
16 1975 or section 504 of the Rehabilitation Act of 1973, as
17 may be applicable, or (3) take such other action as may be
18 provided by law.
19
(c) When a matter is referred to the Attorney General
20 pursuant to subsection (b) of this section, or whenever he has
21 reason to believe that the State is engaged in a pattern or
22 practice in violation of the provisions of this section, the At-
23 torney General may bring a civil action in any appropriate
24 United States district court for such relief as may be appro-
25 priate, including injunctive relief.
o
S 2650 IS
FACT SHEET
DISPLACED WORKER READJUSTMENT ACT
Purposes
to motivate employers to give advance notice of mass layoffs and plant closings
SO that:
1. joint management-labor-community committees can plan readjustment
2. readjustment to new employment can occur in advance to layoffs
to use period of unemployment insurance eligibility to achieve and carry out
individual reemployment plans for displaced workers
Need
3.9 million, or over two out of every five individuals unemployed nationwide
have been laid off without expectation of recall; this is a flow rather than
a stock: of those with little or no hope of recall, 54% have been unemployed
less than 15 weeks, 36% over 14 weeks, and 18% over 26 weeks
6,500 individuals in Utah alone were affected by plant closings and mass layoffs
from October 1981 to March 1982
Employers are frequently reluctant to give advance notice of major cutbacks or
closings.
Laid off workers too often exhaust unemployment compensation before taking
necessary readjustment measures.
Services
personal and family counseling
job search training, job development and placement
on-the-job and classroom training
relocation -- experience indicates about 10% will request relocation assistance
other services
bill provides for approx. 150,000 individuals to be served at an average cost
of $2000
Activation
voluntary state participation
voluntary employer participation
voluntary worker participation for first 6 weeks; state flexibility to require
participation thereafter
page 2
Incentives
state receives additional federal funds
employer receives assistance for worker readjustment
worker receives faster return to full earning potential without income
maintenance
Those Involved
workers
employers
unions
governors
employment service
state job training councils
local private industry councils
7-8-82
SUMMARY OF PROVISIONS OF S. 2650
Authorization -- $300 million for four years
Allotment -- 50% on the basis of the relative number of unemployed workers
50% on the basis of the relative number of long-term unemployed
For FY 1984 and the succeeding two years, half of the state grant
can be used for the "early warning readjustment services" and the
other half for unemployment insurance reemployability planning"
programs.
The Secretary of Labor has the power to reallocate funds if he
determines that the formula misallocates money to states where
it is not needed.
Block grants to states are not automatic -- a state must apply for funds.
A state's application for funds must include:
1. establishment and operation of an "early warning readjustment service
program"
-- all employers with 25 or more employees are eligible if they
layoff 25% of the workforce of a single facility and give
six months advance notice of that layoff to the state
-- the readjustment service of the state (joint responsibility of
the state job training council and the state employment security
office) appoints a "readjustment committee" consisting of
employer representatives, displaced worker representatives,
state employment security agency, local private industry council,
other public or private organizations, and labor unions where there
is a collective bargaining agreement in effect
-- the "readjustment committee" submits a readjustment plan to be
approved by the governor which includes: personal and family
counseling, career planning, job search training, job development,
communication with other employers, on-the-job training, classroom
retraining, relocation assistance, and other assistance reducing
the personal and economic costs of readjustment
2. establishment of an "unemployment insurance reemployability planning
program"
-- any displaced worker who applies for unemployment compensation
may participate in a reemployability program after an assessment
of his present and future opportunities by an employment service
counselor during the first six weeks of UI eligibility (also
voluntary)
-- participation in this voluntary reemployability program would make
the worker eligible for referral to the various retraining programs
approved in the "readjustment plan"
-- the state may choose to require participation of the worker in the
reemployability program as a condition for receiving UI benefits
June 17, 1982
CONGRESSIONAL RECORD - SENATE
7033
UNCLE SAM MONUMENT
bers employed as recently as last year
ment committee, the objective being
Mr. D'AMATO. Mr. President, today
and as a result workers must make
to achieve readjustment before rather
I am pleased to be introducing legisla-
major adjustments in their lives and
than after layoffs.
tion which would authorize the Secre-
working careers.
Second, the bill requires of all unem-
tary of the Interior to enter into a CO-
This body had addressed unemploy-
ployment insurance recipients an early
operative agreement to maintain the
ment problems in the past with such
assessment of reemployment pros-
gravesite of Samuel "Uncle Sam"
devices as the Trade Adjustment Act.
pects. Those whose reemployment
Wilson and to erect and maintain tab-
Such programs were. however. pallia-
probabilities are low may be required
lets or markers at his gravesite in
tives. They provided financial assist-
to engage in reemployment planning
Troy, N.Y.
ance but did little to achieve readjust-
and training to carry out such a plan,
For many years, the people of Troy
ment and reemployment. The dis-
depending on State rules and proce-
worked assiduously to gain recognition
placed worker provisions of S. 2036
dures.
from the Federal Government that
help, and I support this measure, but
Uncle Sam maintained a home in
these provisions come into action only
I readily acknowledge that my pro-
Troy. On September 15, 1961, the
after the layoffs or plant closing have
posal may not have all of the answers,
occurred.
though I believe that the basic con-
Senate approved a resolution saluting
Three States have already imple-
cepts in this legislation are sound.
"Uncle Sam" Wilson of Troy, N.Y., as
mented comprehensive programs for
Hearings should be held at the earliest
the progenitor of America's national
the readjustment and reemployment
possible time, both in Washington and
symbol of "Uncle Sam."
in other States, to hear from witnesses
I ask unanimous consent that a copy
of dislocated workers, including sys-
of this resolution be printed in the
tems of advance notice of mass layoffs
with experience in administering such
RECORD.
and plant closures. It is time we in
programs as well as those who will be
There being no objection, the resolu-
Congress also look at the larger issue
affected by such a proposal.
tion was ordered to be printed in the
of worker displacement and investi-
It is time we acknowledged the dis-
RECORD, as follows:
gate ways of incorporating the efforts
placed worker problem differs from
"UNCLE SAM"
of existing agencies with employers to
the unemployment problem. Each re-
address it.
Whereas in a world largely hostile to the
quires a different solution. For the
Despite the lack of a U.S. legislative
idea of freedom we must keep alive the
latter, I wholeheartedly support the
cherished values of our way of life; and
model, there is a substantial experi-
President's program of tax, spending,
Whereas at a moment in our history when
ence to draw upon from our Canadian
and regulatory reductions. This policy
we need all our sense of purpose and capa.
neighbors. Since 1963, Canada has had
addresses the disease of economic
bility to match the challenge of disciplined
in effect a series of sticks and carrots
"stagflation" and recession to create
communism some say that our national
to win advance notice from employers
new growth-oriented industries and
symbol of "Uncle Sam" is archaic and
of intended mass layoffs and plant
jobs. The economy is also aided
should be disowned; and
closings. Such notice triggers forma-
Whereas the symbol of "Uncle Sam" was
through an increase in the supply of
tion of a joint management-labor-gov-
evoked out of the needs of a young Nation,
highly skilled workers prepared to fill
and is linked to a grassroots character,
ernment committee to design and
these new positions. The Training for
Samuel Wilson, of Troy. New York, who
carry out a readjustment plan with
Jobs Act (S. 2036) provides training
still represents the strength and Idealism
the goal of obtaining other jobs for
opportunities for the economically dis-
that made up the greatest Nation in the
the workers before the layoff occurs.
advantaged, those with barriers to em-
world; and
Additionally, a number of forward-
ployment, and displaced workers, but a
Whereas the years 1766 to 1854, the years
looking and socially conscious compa-
in which Samuel Wilson lived, witnessed the
more systematic, prevention-oriented
nies, when faced by need to close a
birth and glorious progress of the United
approach is needed to assist potential-
plant, have given prior notice to em-
States, spanning as they did the period
ly long-term unemployed workers, em-
before the Declaration of Independence to
ployees and their communities and
ployers, and our economy adjust to
the emergence of the United States as a
have worked out plans and procedures
our changing economy and period of
world power, and
to ease the displacement effects.
reindustrialization. I hope Senators
Whereas no congressional action has ever
There are some aspects of the Canadi-
will review my proposal and join me as
been taken to make the symbol of that
an approach which would be unac-
American tradition. the symbol of "Uncle
a cosponsor. The amount of time and
ceptable on the American industrial
Sam," official and permanent: Therefore be
effort we devote to this program will
scene, but along with the experiences
it
bring significant economic rewards
Resolved by the Senate (the House of Rep-
of these U.S. companies, it is an im-
and savings both in terms of reducing
resentatives concurring). That the Congress
pressive model from which many prac-
salutes "Uncle Sam" Wilson, of Troy, New
tical lessons can be drawn.
extended Income maintenance pay-
Employers are understandably reluc-
ments and in promoting one of our
York. as the progenitor of America's nation-
tant to admit publicly to their employ-
best national resources-our labor
al symbol of "Uncle Sam".
force.
Agreed to September 15, 1961.
ees, suppliers, customers, and competi-
tors that they are in difficulty suffi-
Mr. President, I ask unanimous con-
By Mr. HATCH:
cient to threaten major cutbacks or
sent that the text of the bill be print-
S. 2650. A bill to provide readjust-
even cessation of operations. Similarly,
ed in the RECORD.
ment services to workers permanently
employees hope against hope. When
There being no objection, the bill
displaced from their jobs, and for
laid off, they do not admit, even to
was ordered to be printed in the
other purposes; to the Committee on
themselves, that recall is unlikely.
RECORD, as follows:
Labor and Human Resources.
They all too often exhaust their un-
S. 2650
DISPLACED WORKER READJUSTMENT ACT OF 1982
employment compensation waiting to
Mr. HATCH. Mr. President, of the
be recalled. Only when all income
Be it enacted by the Senate and House of
nearly 6 million Americans who have
Representatives of the United States of
stops do they panic and start seriously
America in Congress assembled, That this
lost their jobs, almost 4 million have
to make new plans, but by then they
Act may be cited as the "Displaced Worker
been permanently displaced In my
have no resources to carry them over
Readjustent Act of 1982".
own State of Utah, unemployment has
the necessary, painful readjustment.
STATEMENT OF PURPOSE
jumped precipitously during the past
The bill I am introducing today at.
few months primarily because major
tempts to tackle these twin problems.
Sec. 2. It is the purpose of this Act,
manufacturing plants, mines, smelters,
First the bill provides incentives for
through grants to States. to facilitate the
steel mills, and other employers have
employees to voluntarily give advance
readjustment to new employment of work-
ers permanently displaced from their cus-
made large-scale layoffs. Many of
notice of plant closings and mass lay.
tomary employment because of technologi-
those employers. as with others across
offs and provides for readjustment
cal change. international competition, shifts
the country. are unlikely. in the fore-
planning through a joint manage-
in consumer preferences, business failures,
seeable future. to reach the same num-
ment-labor-State and local govern-
and other factors by-
S7034
CONGRESSIONAL RECORD
June 17, 1982
(1) encouraging employers to give advance
the provisions of this Act and taking into ac.
displaced workers of that employer. the
notice of impending plant closings or mass
count the proportion of the original allot-
State Department of Employment Security
layoffs.
ments made available to such States under
(or similar agency as designated by the chief
(2) providing for cooperation between em-
subsections (a) and (b), as the case may be.
executive). the local private industry council
ployers and public agencies in facilitating
for such year, but with such proportionate
and other appropriate public agencies and
transfer to new employment opportunities
amount for any of such other States being
private organizations: and (ii) where a col-
prior to layoff,
reduced to the extent It exceeds the sum
lective bargaining agreement is in effect the
(3) developing and carrying out reemploy.
which the Secretary estimates such State
representatives of the labor organization
ment plans to achieve readjustment for dis-
needs and will be able to use for such period
will be included in such readjustment com-
placed workers.
for carrying out such portion of its States
mittee:
(4) making available transition services to
application approved under this Act, and
(D) that the readjustment committee es-
accomplish such readjustment, and
the total reduction shall be similarly reallot-
tablished under subclause (C) will prepare a
(5) using the period of unemployment
ted among the States whose proportionate
readjustment plan which is satisfactory to
compensation eligibility to carry out read-
amounts are not so reduced. In carrying out
both the employer and representatives of
justment activities
the requirements of this subsection. the
the displaced workers, to and will be effec-
DEFINITIONS
Secretary shall take into account the cli-
tive only If the chief executive approves of
matic conditions and such other relevant
Sec. 3. As used in this Act-
the plan:
factors as may be necessary to assure that
(1) The term "displaced worker" means
(E) the readjustment services for dis-
no State loses funds necessary to carry out
any individual who is laid off from regular
placed workers will include-
the purposes of this Act. Any amount real-
employment, who was previously steadily
(1) personal and family counseling:
lotted to the State under this subsection
employed and who has little realistic prob-
(ii) career planning.
during a year shall be deemed part of its al-
ability of being rehired in that previous em-
(iii) job search training.
lotment under subsections (a) and (b), as
ployment or of being rehired, in a timely
(iv) job development:
the case may be, for such year.
fashion in a job of equal pay and status, as
(v) communication with other potential
(d) Any allocation to a State may be real-
determined by the State.
employers:
located only if the Secretary provides 30
(2) The term "Secretary" means the Sec-
(vi) on-the-job training by other employ-
days advance notice to the chief executive.
retary of Labor.
ers:
(3) The term "State" includes the several
USES OF FUNDS
(vii) on-the-job training in other establish-
States, and the District of Columbia.
Stc. 6. Grants under this Act shall be used
ments of the participating employer.
(4) The term "unemployed persons"
in accordance with the provisions of this
(viii) retraining in classroom settings;
means persons who are without jobs and
Act, by the States-
(ix) relocation assistance; and
who want or are available for work. The de-
(1) for mass layoff and plant closing early
(x) other services with a high probability
termination of whether persons are without
warning readjustment services programs;
of reducing the personal and economic costs
jobs shall be made in accordance with crite-
and
of readjustment; and
ria used by the Bureau of Labor Statistics,
(2)
unemployment
insurance
(3) provide for the establishment of an un-
the Department of Labor in defining per-
reemployability planning programs.
employment insurance reemployability
sons as unemployed.
-APPLICATIONS AND REQUIREMENTS
planning program under which-
AUTHORIZATION OF APPROPRIATIONS
Src. 7. (a) Each State desiring to receive
(A) any claimant for unemployment insur-
Sec. 4. There are authorized to be appro-
an allotment for a fiscal year under this
ance benefits who is a displaced worker and
who-
priated $300,000,000 for the fiscal year-1983
Act, shall submit an application to the Sec-
retary. Each such application shall be in
(1) considers it unlikely that the claimant
and for each of the succeeding three fiscal
such form as the Secretary shall require.
will be rehired by the immediate previous
years to carry out the provisions of this Act.
Each such application shall-
employer of such claimant, and
ALLOTMENT
(1) provide for the establishment and op-
(ii) considers reemployment by other em-
Sec. 5. (a) From the amount appropriated
eration by the State of an early warning re-
ployes in the local labor market of which
for fiscal year 1983 under section 3, the Sec-
adjustment service program for displaced
the claimant is a resident to be unlikely.
retary shall-
workers described in clause (2) and an un-
may participate in a reemployability pro-
(1) allot 50 per centum of such amounts
employment insurance reemployability
gram described in this paragraph:
on the basis of the relative number of un-
planning program for displaced workers de-
(B) the displaced worker claimant de-
employed persons during the calendar year
scribed in clause (3), which will be the joint
scribed in subparagraph (A) may volunteer
1982 within the State compared to the total
responsibility of the State Job Training
to participate in the development of a reem-
number of such persons in all States; and
Counsel and the State Department of Em-
ployment plan during the first 6 weeks of
(2) allot 50 per centum of such amount on
ployment Security (or other similar agency
eligibility for unemployment insurance
the basis of the relative number of unem-
designated by the chief executive);
benefits, and, if the claimant so volunteers,
ployed persons who were unemployed for 15
(2) describe the provisions for an early
will be required to report for an assessment
weeks or more during the calendar year
warning readjustment service program de-
by a job service counselor and develop a re-
1982 within the State compared to the total
signed to assure-
employment plan with the counselor,
number of such persons in all States.
(A) that each employer within the State
(C) the reemployment plan will include-
(b) From the amount appropriated for
contemplating closing a facility within the
(1) assurance from the previous employer
fiscal year 1984 and each succeeding fiscal
State employing more than 25 employees or
of a displaced worker of an early recall to
year the Secretary shall-
laying off more than 25 per centum of the
employment, if possible:
(1) allot to each State an amount which
employees of any single facility within the
(ii) job search training leading to super-
bears the same ratio to 50 per centum of
State will be eligible for the readjustment
vised job search and job development. in-
such amount as the amount expended by
services assisted under this Act if the em-
cluding the teaching of basic job seeking
that State in the fiscal year prior to the
ployer provides at least 180 days notice of
skills relating to attitude development, in-
fiscal year for which the determination is
such closing or layoff. except that the warn-
terviewing skills, decisionmaking skills, self
made. for the uses described in section 6(1)
ing period may be reduced to 90 days if the
evaluation. labor market information the
bears to the total amount so expended for
employer provides pursuasive evidence that
use of local resources for finding employ-
all States and
knowledge prior to the regular period was
ment and other appropriate skills leading to
(2) allot to each State an amount which
not available;
supervised but self-directed employment
bears the same ratio to 50 per centum of
(B) that the notice required by an employ-
search;
such amount as the amount expended by
er under subclause (A) will be made to the
(Ш) referral to an on-the-job training pro-
that State in the year preceding the fiscal
State Job Training Council. the Department
gram or classroom occupational and employ-
year for which the determination is made
of Employment Security (or similar agency
ability training except that not to exceed 50
for the purposes described in section 6(2)
of the State as designated by the chief ex.
per centum of the compensation paid for
bears to the total amount so expended for
ecutive), the appropriate local private indus-
on-the-job training may be paid for from fi-
all States.
try council. or the appropriate local office
nancial assistance paid under this Act:
(c) The portion of any States's allotment
of the State Employment Service:
(iv) development of a relocation plan
under subsection (a) or subsection (b) for a
(C) that (i) the notice given by the em-
which includes assurances from an employ.
fiscal year. which the Secretary determines
ployer under subclause (B) will be forward-
er in another community that work is avail-
will not be required for the period such al-
ed to the chief executive of the State
able to the claimant and such relocation
lotment is available for carrying out the
promptly. and that upon receiving. the
plan may include reimbursement for the
purposes of this Act. shall be available for
notice the readjustment service of the State
cost of Job search activities with perspective
reallotment from time to time, on such
assisted under this Act will take the Initia-
employers. transportation costs for the
dates during such period as the Secretary
tive in appointing and assembling a read-
claimant. his family and household furnish-
may fix. to other States based on need and
justment committee consisting of repre-
ings. and allowances for deposits and other
ability to expend the funds consistent with
sentatives of the notifying employer of the
costs associated with relocation: and
June 17, 1982
CONGRESSIONAL RECORD
7035
(v) a statement by the employment coun-
tion under. any program or activity funded
PURPOSE OF THE LEGISLATION
celor that good and sufficient reasons exist
in whole or in part with funds made availa-
This bill would amend subsection 252(j) of
for some other alternative program for the
ble under this Act. Any prohibition against
the Energy Policy and Conservation Act
displaced worker.
discrimination on the basis of age under the
(EPCA) by changing the expiration date of
(D) the State will, wherever practicable to
Age Discrimination Act of 1975 or with re-
section 252 from July 1, 1982. to June 30,
assure the continued participation of each
spect to an otherwise qualified handicapped
1985. The extension would continue the
displaced worker claimant in the program
individual as provided in section 504 of the
antitrust defense afforded by section 252(f)
assisted under this Act, provide for condi-
Rehabilitation Act of 1973 shall also apply
of EPCA to United States oil companies par-
tioning the payment of unemployment in-
to any such program or activity.
ticipation in the Agreement on an Interna-
surance benefits on continued participation
(b) Whenever the Secretary determines
tional Energy Program (IEP), thus facilitat-
in the program. consistent with the require-
that a State that has received a payment
ing their continued participation in the IEP.
ments of section 3304 of the Internal Reve-
under this Act has failed to comply with
nue Code of 1954;
subsection (a) of this section or an applica-
BACKGROUND
(4) contain provisions describing the
ble regulation. he shall notify the chief ex-
The IEP originally was signed in 1974 as
manner in which the State will participate
ecutive of the State and shall request him
the result of an effort by the United States
in an interstate layoff and plant closing pro-
to secure compliance. If within a reasonable
to promote cooperation among major indus-
gram established by the Secretary:
period of time, not to exceed 60 days. the
trial countries in reducing dependence on
(5) contain assurances that the State will
chief executive fails or refuses to secure
imported oil. There are presently 21 signa-
comply with the limitations contained in
compliance, the Secretary is authorized to
tories to the IEP. consisting of most of the
section 8: and
(1) refer the matter to the Attorney Gener-
principal industrialized oil consuming na-
(6) contain such other provisions as the
al with a recommendation that an appropri-
tions. The IEP provided for creation of the
Secretary may reasonably require.
ate civil action be instituted, (2) exercise the
International Energy Agency (IEA) as an
(b) The Secretary shall approve any appli-
powers and functions privided by title VI of
autonomous entity within the Organization
cation which meets the requirements of sub-
the Civil Rights Act of 1964. the Age Dis-
for Economic Cooperation and Development
section (a), and shall not disapprove any ap-
crimination Act of 1975 or section 504 of the
and. under the auspices of the IEA. of an in-
plication submitted under subsection (a)
Rehabilitation Act of 1973. as may be appli-
ternational oil sharing system for use
without first affording the State an oppor-
cable. or (3) take such other action as may
during oil supply emergencies. and an infor-
tunity for a hearing.
be provided by law.
mation system on the International oil
LIMITATIONS ON USES OF FUNDS UNDER THIS
(c) When a matter is referred to the Attor-
market. It also required each country to es-
ACT
ney General pursuant to subsection (b) of
tablish an emergency petroleum storage
SEC. 8. (a) No grant under this Act may be
this section, or whenever he has reason to
program. and to have a means for restrain-
used by the State or may be used by any
believe that the State Is engaged in a pat-
ing demand for petroleum products in the
other person with which the State makes
tern or pactice in violation of the provisions
event of an interruption of petroleum sup-
arrangements to carry out the provisions of
of this section, the Attorney General may
plies to the IEP countries.
this Act to pay compensation to any dis-
bring a civil action in any appropriate
Section 252 of the EPCA sets out proce-
placed worker not described in the applica-
United States district court for such relief
dures applicable to the development or car-
tion submitted under section 7 or to make
as may be appropriate, including injunctive
rying out of voluntary agreements and
payments for living expenses of the dis-
relief.
plans of action to implement the allocation
placed worker claimant under the reem-
and information provisions of the IEP.
ployability plan described in such applica-
By Mr. McCLURE (by request):
Under this authority, effective March 21,
tion.
S. 2651. A bill to extend the expira-
1976. United States oil companies entered
(b) No State may use more than 15 per
tion date of section 252 of the Energy
into the Voluntary Agreement and Plan of
centum of the amount received by the State
Policy and Conservation Act; to the
Action to Implement the International
in each fiscal year for administrative ex-
Committee on Energy and Natural Re-
Energy Program (the Voluntary Agree-
penses.
sources.
ment) (41 F.R. 13998, April 1. 1976). At pres-
ent. 21 United States oil companies. includ-
AUDIT
EXTENSION OF SECTION 252 OF THE ENERGY
ing both major international oil companies
Sec. 9. (a) Each State shall provide such
POLICY AND CONSERVATION ACT
and independent oil companies. are partici-
fiscal control and fund accounting proce-
Mr. McCLURE. Mr. President, at
pants in the Voluntary Agreement.
dures as may be necessary to assure the
the request of the administration, I in-
The antitrust defense provided in section
proper disbursal of and accounting for Fed-
troduce a bill to extend the expiration
252(f) is essential to the participation of
eral funds paid to the State under this Act,
date of section 252 of the Energy
United States oil companies in the Volun-
including procedures for monitoring the as-
Policy and Conservation Act until
tary Agreement and. through it, in the IEP.
sistance provided under this Act and provide
The IEP, in turn, can fuction effectively
that at least every year each State shall pre-
June 30, 1985. I ask unanimous con-
pare an audit of its expenditures of amounts
sent that the text of the bill and the
only with participation by United States
and foreign oil companies which are pri-
received under this Act. Each audit required
letter of transmittal be printed in the
mary sources of information about condi-
under this subsection shall be conducted by
RECORD.
tions in the international oil market and
an entity independent of any agency admin-
There being no objection, the mate-
would be the primary actors in redistribut-
istering activities or services carried out
rial was ordered to be printed in the
ing oil if the IEP's emergency sharing provi-
under this Act and shall be conducted in ac-
cordance with generally accepted account-
RECORD, as follows:
sions were activiated.
S. 2651
This bill simply extends to June 30. 1985,
ing principles. Within 30 days after submit a
the effectiveness of the section 252 antitrust
copy of such audit to the Secretary.
Be it enacted by the Senate and House of
(b) The Comptroller General of the
Representatives of the United States of
defense, thereby synchronizing its expira-
United States shall, from time to time,
America in Congress assembled, That sec-
tion with that of Titles I and II of EPCA.
evaluate the expenditures by the State of
tion 252(j) of the Energy Policy and Conser-
and assuring continuity of U.S. company
participation in the IEP. All of the other
grants under this Act in order to assure that
vation Act (42 U.S.C. $ 6272(j)) is amended
expenditures are consistent with the provi-
by striking "July 1, 1982" and inserting in
conditions and safeguards presently incor-
porated in that section will remain un-
sions of this Act to determine the effective-
its place "June 30, 1985".
changed.
ness of the State in accomplishing the pur-
poses of this Act.
DEPARTMENT OF ENERGY.
COST AND BUDGET DATA
PAYMENTS TO STATES
Washington, D.C., June 17, 1982.
Enactment of this legislation would cause
SEC. 10. (a) From its allotment under sec-
Hon. GEORGE BUSH,
no apparent Increase in budgetary require-
tion 5. the Secretary shall make payments
President of the Senate,
ments for the Department of Energy.
to each State in accordance with section 203
Washington, D.C.
Sincerely,
of the Intergovernmental Cooperation Act
DEAR MR. PRESIDENT: Enclosed Is proposed
R. TENNEY JOHNSON.
of 1968 (42 U.S.C. 4213). for use under this
legislation "[t]o extend the expiration date
General Counsel
Act.
of section 252 of the Energy Policy and Con.
(b) Payments to a State from its allotment
servation Act."
By Mr. DANFORTH (for him-
for any fiscal year must be expended by the
This proposed legislation is part of the
self, Mr. TSONGAS, Mr. BAKER.
State in such fiscal year.
Department of Energy Legislative Program
Mr. GOLDWATER. Mr. HAYAKA-
for the 97th Congress. The Office of Man-
NONDISCRIMINATION PROVISIONS
agement and Budget advises that, from the
WA. Mr. LAXALT, Mr. BRADLEY.
SEC. 11. (a) No person shall on the ground
standpoint of the Administration's program.
Mr. CRANSTON, Mr. MATSUNAGA,
of race, color, national origin, or sex be ex.
there is no objection to the presentation of
Mr. PELL, AND Mr. SASSER):
cluded from participation in. be denied the
this legislation for the consideration of the
S.J. Res. 202. A joint resolution to
benefits of. or be subjected to discrimina-
Congress.
express the sense of the Congress of
THE WHITE HOUSE
WASHINGTON
22 November 1982
TO: JAB III
RE: Relations with Organized Labor
For your information:
Preliminary word from AFL-CIO is that
they have no problem with Patricia
Diaz Dennis for the NLRB post. Also,
the AFL-CIO says it has no objection
to our nominations (Mahone and Miller)
to the Federal Labor Relations Author-
ity. The Teamsters have said the same.
As I understand it, all the above
have solid Reagan/conservative creden-
tials, yet we're not drawing strong
opposition from labor.
Contrast this with Dotson-- even though
the concede we may win, labor is going
all-out to defeat him. Lots of blood,
but zero policy difference on the NLRB.
IC
Jim:
I don't mean to beat a dead house:
I
know you already perceive This point.
This is just fuel for future arguments
I guess. jum
THE WHITE HOUSE
WASHINGTON
November 22, 1982
MEMORANDUM FOR SENIOR STAFF
FROM:
Jim Cicconi
SUBJECT:
Senior Staff Meetings
There will be no senior staff meetings November 24, 25, 26,
and 29. Meetings will resume November 30.
Thank you.
THE WHITE HOUSE
WASHINGTON
22 Nov 1982
TO: JAB III
RE: District Judgeship, S.D. Texas
For your information:
Sen. Tower has decided to recommend
Ricardo Hinojosa for the vacant
district judgeship in Brownsville.
Tower recognizes that Ricardo
may have a problem with the ABA
due to the fact he has not practiced
law for as long as the ABA likes;
he feels this can be overcome,
though. Ricardo feels he can get
the ABA's support also.
Jim
THE WHITE HOUSE
WASHINGTON
November 22, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
Jim Cicconi
SUBJECT:
Canadian Trucking
You may recall that differences developed between the U.S.
and Canada over entry standards for trucking. In effect,
a change in U.S. law eased standards for Canadian truckers
to operate in the U.S., while at the same time, Canadian
standards on U.S. truckers were not eased. This put U.S.
truckers at a disadvantage. While we were looking into
the matter, the ICC imposed a moratorium on new certificates
to Canadian truckers.
In September, when he signed the Bus Regulatory Reform Act,
the President eased the moratorium. Negotiations started
with Canada soon after (you may recall that this decision
was discussed in senior staff).
This month, the U.S. and Canada reached agreement on an
understanding calling for equal treatment for truckers of
both nations. The President will soon lift the moratorium
completely in response to this.