[Senate Hearing 109-336]
[From the U.S. Government Publishing Office]
S. Hrg. 109-336
NOMINATIONS OF DAVID A. SAMPSON, TO BE DEPUTY SECRETARY AND JOHN J.
SULLIVAN, TO BE GENERAL COUNSEL OF THE
DEPARTMENT OF COMMERCE
=======================================================================
HEARING
before the
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED NINTH CONGRESS
FIRST SESSION
__________
MAY 18, 2005
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED NINTH CONGRESS
FIRST SESSION
TED STEVENS, Alaska, Chairman
JOHN McCAIN, Arizona DANIEL K. INOUYE, Hawaii, Co-
CONRAD BURNS, Montana Chairman
TRENT LOTT, Mississippi JOHN D. ROCKEFELLER IV, West
KAY BAILEY HUTCHISON, Texas Virginia
OLYMPIA J. SNOWE, Maine JOHN F. KERRY, Massachusetts
GORDON H. SMITH, Oregon BYRON L. DORGAN, North Dakota
JOHN ENSIGN, Nevada BARBARA BOXER, California
GEORGE ALLEN, Virginia BILL NELSON, Florida
JOHN E. SUNUNU, New Hampshire MARIA CANTWELL, Washington
JIM DeMint, South Carolina FRANK R. LAUTENBERG, New Jersey
DAVID VITTER, Louisiana E. BENJAMIN NELSON, Nebraska
MARK PRYOR, Arkansas
Lisa J. Sutherland, Republican Staff Director
Christine Drager Kurth, Republican Deputy Staff Director
David Russell, Republican Chief Counsel
Margaret L. Cummisky, Democratic Staff Director and Chief Counsel
Samuel E. Whitehorn, Democratic Deputy Staff Director and General
Counsel
Lila Harper Helms, Democratic Policy Director
C O N T E N T S
----------
Page
Hearing held on May 18, 2005..................................... 1
Statement of Senator Hutchison................................... 3
Statement of Senator Lott........................................ 1
Statement of Senator Bill Nelson................................. 23
Statement of Senator Rockefeller................................. 2
Witnesses
Sampson, Dr. David A., Nominee to be Deputy Secretary of the
Department of Commerce......................................... 3
Prepared statement........................................... 5
Biographical information..................................... 6
Sullivan, John J., Nominee to be General Counsel of the
Department of Commerce......................................... 15
Prepared statement........................................... 16
Biographical information..................................... 17
Appendix
Response to written questions submitted to Dr. David A. Sampson
by:
Hon. Daniel K. Inouye........................................ 28
Hon. Frank R. Lautenberg..................................... 29
Hon. David Vitter............................................ 27
NOMINATIONS OF DAVID A. SAMPSON, TO BE DEPUTY SECRETARY AND JOHN J.
SULLIVAN, TO BE GENERAL COUNSEL OF THE DEPARTMENT OF COMMERCE
----------
WEDNESDAY, MAY 18, 2005
U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 10:10 a.m. in
room SR-253, Russell Senate Office Building, Hon. Trent Lott
presiding.
OPENING STATEMENT OF HON. TRENT LOTT,
U.S. SENATOR FROM MISSISSIPPI
Senator Lott. The hearing will now come to order. Today's
hearing will be short, so I will forego a lengthy statement so
that the nominees can answer any questions that may need to be
addressed to them by the Committee Members. I urge other
Senators that may be here just to submit their statements for
the record.
Although, Senator Rockefeller, if you would like to speak
at great length, certainly you would be recognized to do so.
On April 4, 2005, the President nominated Dr. David Sampson
to be Deputy Secretary of Commerce. Dr. Sampson currently
serves as Assistant Secretary of Commerce for Economic
Development. We welcome Dr. Sampson and his family.
Are they here?
Dr. Sampson. Yes, sir.
Senator Lott. Let us recognize this good-looking family out
here. How many have we got lined up there?
Dr. Sampson. My wife and twin sons, John and Matt.
Senator Lott. All right. Oh, double trouble, no question
about that.
[Laughter.]
Senator Lott. But thank you, Mrs. Sampson, for sacrificing
to allow your husband to serve his country in this way. But I
hope you find some enjoyment in it too.
Today's witnesses may have learned a little bit about the
importance of fish to Members of this Committee. I did have a
large chart with a smiling fish so you would think National
Marine Fisheries Service every morning, Dr. Sampson. But I
decided that you had been briefed in advance to the importance
of fisheries.
Both witnesses' full statements will be made a part of the
record. Dr. Sampson, again, we congratulate you.
And also, Mr. Sullivan, you currently serve as Deputy
General Counsel of the Defense Department. And you clerked for
Justice Souter. And we welcome you and your family here this
morning. Are they here? Could we recognize them?
Mr. Sullivan. Thank you, Senator. Yes. I have my mother-in-
law with me, Grace Rodriguez, and my two boys, Jack and Teddy
Sullivan.
Senator Lott. Well, they look very sharp in those fancy
ties and coats.
Congratulations to both of you. This is a credit to you to
be recognized, to be nominated for these very important
positions. Mr. Sullivan, both you and Dr. Sampson, you are
going to have very critical positions at the Department of
Commerce. Of course, this Committee will be following your
activities very closely.
May I yield to Senator Rockefeller for any opening comments
you would like to make?
STATEMENT OF HON. JOHN D. ROCKEFELLER IV,
U.S. SENATOR FROM WEST VIRGINIA
Senator Rockefeller. Well, I will be brief, Mr. Chairman,
as I always am. I did not have a chance to talk to Mr.
Sullivan, but I had a wonderful conversation with Dr. Sampson.
And we discussed the importance of manufacturing, the
importance of jobs, the importance of what do you do when
people 48 years old, you know--and nobody has really good
answers. But it was a sensitization--is that the right word?
Sensitivity training.
And the Department of Commerce is huge for West Virginia.
We actually discovered yesterday that we have the seventh
largest inland port in America.
Senator Lott. Where is that?
Senator Rockefeller. Huntington, it is very big.
International trade, we discussed, and the importance of
having fair trade, as well as free trade. Sometimes it is easy
to say both, but hard to differentiate when it comes to the
practice of it. We work very, very closely with you. I
expressed to you the importance of just you, as an individual,
to this country and to my state.
Trent Lott and I share a lot of the same kinds of problems
and urgencies. And so I discussed these things with you. And we
had a very, very good conversation, I thought.
Mr. Sullivan, your task, obviously, is tremendously
important.
You are a lawyer, are you not, Trent?
Senator Lott. Used to be.
Senator Rockefeller. And I am not. But that is a large
responsibility on your part. So we tend to try and work closely
with you all. And we need you. And you need us, to a certain
extent. And it should produce a productive relationship. I am
very glad that you are both here, as well as your families.
Dr. Sampson. Thank you, Senator.
Mr. Sullivan. Thank you, Senator.
Senator Lott. We are honored to have with us this morning
to speak on behalf of Dr. Sampson, I believe, Senator Kay
Bailey Hutchison, who is a very valued Member of this
Committee.
Senator Hutchison, we would be glad to open with your
statement and, after that, have you join us, if you can, at the
podium.
STATEMENT OF HON. KAY BAILEY HUTCHISON,
U.S. SENATOR FROM TEXAS
Senator Hutchison. Well, thank you, Mr. Chairman. I am very
pleased to be here to introduce my long-time friend. I have
worked with him for a long time in Texas. And now he is going
to be nominated for the position of Deputy Secretary of
Commerce. He is an assistant secretary now and has done a
terrific job as the principal advisor on policy development to
the Secretary. He has established funding priorities to find
grant investment policy guidelines. And in his role as
directing operations of the Economic Development
Administration, he initiated a reorganization of that part of
the Commerce Department for the first time in the 37 years of
the Department of Commerce history.
Also, in addition to his professional background, he has a
wonderful track record of vision and character and commitment
to whatever job he holds. Before he assumed his present job at
the Department of Commerce, he was involved in economic
development activities at the state level in Texas. He was
appointed by then Governor Bush to serve as Vice Chairman of
the Texas Strategic Economic Development Planning Commission
and then later chaired the Texas Council on Workforce and
Economic Competitiveness.
So I think he has had deep experience in exactly what we
want the Commerce Department to do. And that is find ways to
create a better economic climate in our country and create more
jobs and keep our industry in America and make sure that we
have a healthy business climate in our country.
Dr. Sampson was the president and CEO of the Arlington
Chamber of Commerce before he came into government. He led an
aggressive business development and retention program there and
was known as an effective leader throughout our state. He is a
graduate of David Lipscomb University and earned his doctorate
at Abilene Christian University. He currently resides in
Northern Virginia, but I think his heart is still in Texas. And
it is my honor to introduce him, someone that I know will do a
great job for our country at this very important time in our
economic period.
Senator Lott. Well, thank you, honored colleague. We are
very proud of the work you do. We know that you have pride in
this nominee. I mean, it sounds like he has an excellent
background and credentials. I am really pleased to learn of his
experience in economic development and his knowledge of a
variety of issues at the Commerce Department. When you look at
the Commerce Department, it has a huge jurisdictional
responsibility, all the way from trade to fisheries and other
economic development. It is a very important department. And we
have to have good, strong leadership there.
So, Dr. Sampson, we will be glad to hear from you at this
point.
STATEMENT OF DR. DAVID A. SAMPSON, NOMINEE TO BE
DEPUTY SECRETARY OF THE DEPARTMENT OF COMMERCE
Dr. Sampson. Thank you, Mr. Chairman. I am honored to
appear before you as the President's nominee to be Deputy
Secretary of the U.S. Department of Commerce. And I am deeply
grateful to the President for the opportunity to serve and his
confidence. And I appreciate Secretary Gutierrez's confidence
and support, as well. And I also want to thank the Members of
this Committee for their courtesies in visiting with me over
the past couple of months.
Today I would like to be able to give you a better sense of
what I hope to accomplish as Deputy Secretary of Commerce, if
given that opportunity. And let me begin by stating my very
strong commitment to the core mission of the Department of
Commerce.
At the Department, we serve the American people by helping
to create the right conditions for economic growth and
expanding opportunity. We promote innovation. We foster
entrepreneurship. We enhance competitiveness, and we encourage
environmental stewardship. The Deputy Secretary of the
Department of Commerce effectively serves as the agency's chief
operating officer, overseeing the Department's 38,000 employees
and $6.5 billion budget. And I also understand the Deputy
Secretary acts as the Secretary's primary advisor and
surrogate.
As you have mentioned, the Department addresses a wide
range of very important challenges to our Nation's economy
every day from marine fisheries to international trade, the
census, and various other scientific, environmental,
technological, and economic areas.
With the support of the Committee and the hardworking men
and women of the Department, I am confident that I can maintain
the high standards set by my predecessors and support Secretary
Gutierrez's commitment to excellence. If confirmed by the
Senate, I will try to bring my valuable experience to the
Office of the Deputy Secretary. I am very proud of the track
record that EDA has accomplished over the past 4 years and I am
very appreciative of both the career and political staff that I
have had the honor to work with.
During my tenure, I have learned a lot about the Department
of Commerce in interacting with other bureaus. But I clearly
recognize that there is a lot still to learn. I welcome that
challenge. I, if confirmed, will support the Secretary as he
directs the Department's focus on economic growth and job
creation. We will open foreign markets. We will insist that our
trading partners comply with the full terms of their agreements
with us. We will foster technological innovation. We will
defend intellectual property rights. And we will implement
effective export controls. We will promote the wise stewardship
of our natural resources and oversee the collection of sound
economic statistics to inform good policy.
And if confirmed, I look forward to working with this
Committee on these and other matters.
In closing, I have been literally blessed with family,
friends, and opportunity. And I am equally grateful especially
for my wife Karen and my sons Matt and John for their support.
Mr. Chairman, thank you again for this opportunity to
appear before the Committee and for your consideration of my
nomination. And I would be pleased to respond to any questions
the Committee may have.
[The prepared statement of Dr. Sampson follows:]
Prepared Statement of Dr. David A. Sampson, Nominee to be Deputy
Secretary of the Department of Commerce
Mr. Chairman, Senator Inouye, and Members of the Committee,
I am honored to appear before you as the President's nominee to
become Deputy Secretary of the U.S. Department of Commerce. I am
grateful to President Bush for the opportunity to serve. And I deeply
appreciate Secretary Gutierrez's confidence and support. Let me also
thank the Members of this Committee.
Today, I would like to give you a better sense of what I hope to
accomplish as Deputy Secretary of Commerce, if given that opportunity.
Let me begin by stating my strong commitment to the core mission of the
Department of Commerce. At the Department, we serve the American people
by helping to create the right conditions for economic growth and
expanded opportunity. We promote innovation. We foster
entrepreneurship. We enhance competitiveness. And we encourage
environmental stewardship.
The Deputy Secretary of the Department of Commerce effectively
serves as the Agency's chief operating officer, overseeing the
Department's 38,000 employees and $6.5 billion budget. The Deputy
Secretary also acts as the Secretary's primary advisor and surrogate.
The Department addresses a wide range of important challenges every
day: From marine fisheries to international trade, the Census, and
various other scientific, environmental, technological, and economic
areas, the Department's work takes place on a global basis.
With the support of the Committee, and the hardworking men and
women of the Department, I am confident that I can maintain the high
standards set by my predecessors and support Secretary Gutierrez's
commitment to excellence.
If confirmed by the Senate, I would bring valuable experience and
knowledge to the office of Deputy Secretary. For the past four years, I
have served as the Assistant Secretary for Economic Development.
Our primary focus has been achieving results for people-in-need
through leading-edge, market-based economic development strategies in
partnership with distressed regions and communities. At the same time,
we have also focused on embedding good management practices at EDA.
I am proud that EDA was one of the first federal programs to adopt
a fully functioning Balanced Scorecard system. This system has helped
EDA to execute our strategy to raise performance throughout the
organization. And it has helped us to deliver stronger results for the
American people.
The Balanced Scorecard played a large role in driving EDA's success
when the President's Office of Management and Budget evaluated our
performance with their Program Assessment Rating Tool (PART). Overall,
EDA scored in the top tiers of federal programs.
Also, as you know, the Congress reauthorized EDA in 2004. During
the past several years, EDA's job creation efforts have been greatly
strengthened by a pattern of increased private sector leverage of
federal grant dollars. We understand that an economic development
project does not begin to approach its potential until the private
sector joins the enterprise through investment and involvement.
During my tenure at EDA, one of the President's early statements
has been a guiding objective. He said ``every American who is looking
for work should be able to find a job.'' That mission has been my focus
since the day I was confirmed as Assistant Secretary. The Committee can
be confident that it will remain my primary goal as Deputy Secretary.
Several of the positions I held prior to joining the Department had
a particular bearing on my preparation to serve effectively as Deputy
Secretary.
Most recently, I served as President & Chief Executive Officer of
the Arlington, Texas Chamber of Commerce. Concurrently, I served within
then-Governor Bush's Administration by leading the Texas Council on
Workforce and Economic Competitiveness as Chairman and serving as Vice
Chair of the Texas Strategic Economic Development Planning Commission.
My experience in the public and private sectors has taught me that
the Federal Government can play an important role in economic
development and the creation of jobs by fostering the conditions that
allow the private sector to thrive and increase employment.
While I am now familiar with the full Department's operations and
programs, I know that the job of staying well-informed never ends. I
welcome that challenge, And I will dedicate myself to meeting the high
expectations for our Department from the President, the Secretary, and
this Committee.
If confirmed, I will support the Secretary as he directs the
Department's focus on economic growth and job creation. We will open
foreign markets. We will insist that our trading partners comply with
the full terms of our trade agreements. We will foster technological
innovation. We will defend intellectual property rights. We will
implement effective export controls. We will promote the wise
stewardship of our natural resources. And we will oversee the
collection of sound economic statistics. If confirmed, I look forward
to working with this Committee on these and other matters.
In closing, I have been richly blessed with family, friends, and
opportunity. I am deeply grateful, especially for my wife Karen and my
twin sons, Matt and John.
Mr. Chairman, thank you again for this opportunity to appear before
you today, and for your consideration of my nomination. I would be
pleased to respond to any questions you may have.
______
A. BIOGRAPHICAL INFORMATION
1. Name: David Allan Sampson.
2. Position to which nominated: Deputy Secretary of Commerce.
3. Date of Nomination: April 4, 2005.
4. Address: Residence: information not released to the public.
Office: 1401 Constitution Avenue, NW, Washington, DC 20230.
5. Date and Place of Birth: July 2, 1957 in Washington, Indiana.
6. Provide the name, position, and place of employment for your
spouse (if married) and the names and ages of your children (including
stepchildren and children by a previous marriage).
Spouse: Karen Nichols Sampson is a social worker. She is
currently employed as a Schedule C appointee at the Department
of Health and Human Services as Special Assistant to the
Commissioner, The Commission on Children, Youth, and Families.
Children: John David Sampson, 11 years old; Matthew Nicholas
Sampson, 11 years old.
7. List all college and graduate degrees. Provide year and school
attended.
David Lipscomb University, Nashville, TN, BA, 1978.
New Orleans Baptist Theological Seminary, M. Div., 1982.
Abilene Christian University, Abilene, TX, D. Min, 1991.
8. List all management-level jobs held and any non-managerial jobs
that relate to the position for which you are nominated.
Vice President of Business Services, The Arlington Chamber,
Arlington, Texas from 1992-1995.
President and CEO, The Arlington Chamber, Arlington, Texas from
1995-2001.
Assistant Secretary of Commerce for Economic Development, U.S.
Department of Commerce, from 2001-present.
9. List any advisory, consultative, honorary, or other part-time
service or positions with Federal, State, or local governments, other
than those listed above, within the last five years.
Board of Directors, Texas Association of Business and Chambers
of Commerce, from 1998-2000.
Texas Council on Workforce and Economic Competitiveness,
Austin, Texas. State Commission, Chairman, 1999-2001.
10. List all positions held as an officer, director, trustee,
partner, proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, or other business, enterprise,
educational or other institution within the last five years.
General Partner, T BAR 4 Cattle Company, Gaineville, Texas.
Partnership dissolved in December 2001 per ethics agreement
when nominated for Assistant Secretary of Commerce for Economic
Development.
11. Please list each membership you have had during the past ten
years or currently hold with any civic, social, charitable,
educational, political, professional, fraternal, benevolent, or
religious organization, private club, or other membership organization.
Include dates of membership and any positions you have held with any
organization. Please note whether any such club or organization
restricts membership on the basis of sex, race, color, religion,
national origin, age, or handicap.
Rotary Club of Arlington, Texas from 1983-1999.
Arlington Ministerial Association, Arlington, Texas from 1982-
1991. President in 1985.
Shady Valley Golf Club, Arlington, Texas from 1983-2001.
Arlington Choral Society Board of Directors from 1984-1985.
President in 1985.
Arlington Chamber of Commerce from 1985-1991. Member of the
Board of Directors.
International Churchill Society from 1984-present.
Park Row Church of Christ from 1982-2001.
None of the above listed organizations restricts membership on
the basis of sex, race, color, religion, national origin, age,
or handicap.
12. Have you ever been a candidate for public office? I have never
been a candidate for public office.
13. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years.
George W. Bush for Governor, 1998, $1,000.
George W. Bush, Bush for President, Inc., 2000, $1,000.
George W. Bush, Bush-Cheney 2004, (primary) Inc., $2,000.
14. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements.
Air Force Commendation Medal.
Debate Scholarship, David Lipscomb University in 1975.
Paul Harris Fellow, Rotary International, in 1998.
Distinguished Alumni Award, David Lipscomb University, College
of Arts and Humanities, in 2003.
15. Please list each book, article, column, or publication you have
authored, individually or with others, and any speeches that you have
given on topics relevant to the position for which you have been
nominated. Do not attach copies of these publications unless otherwise
instructed.
Articles written while CEO of the Arlington Chamber:
Doing a Checkup on Arlington's Health, Arlington Star-Telegram,
2/6/97.
The Values of Doing Business, Arlington Star-Telegram, 3/11/
97.
GM Plant's Future Depends on its Workers, Arlington Star-
Telegram, 3/18/97.
Are More Jobs Not Always Better, Arlington Star-Telegram, 4/1/
97.
Giving Commerce Department Legs to Stand on in Texas, Arlington
Star-Telegram, 4/15/97.
Arlington, Let's Stay on this Economic Trail, Arlington Star-
Telegram, 6/3/97.
What Makes Economic Growth Run? It's No Mystery, Arlington
Star-Telegram, 10/14/97.
The U.S. Needs Fast-track Trade Authority, Arlington Star-
Telegram, 10/21/97.
The Cloud on Texas' Bright Economic Horizon, Arlington Star-
Telegram, 1/21/98.
Community Colleges Are the Key, Arlington Star-Telegram, 3/24/
98.
Tomorrow's Workforce Depends on Quality of Today's Education,
Arlington Star-Telegram, 8/4/98.
Why Be Concerned about Economic Development Anyway, Arlington
Star-Telegram, 8/18/98.
GM Plant Called up to Bat Once Again, Arlington Star-Telegram,
12/8/98.
Don't Forget Tax Credits in Building Knowledge-based Economy,
Arlington Star-Telegram, 3/23/99.
Keeping the Economic Engines Running, Arlington Star-Telegram,
5/11/99.
Setting Texas' Economic Development Program on the Right Road,
Arlington Star-Telegram, 2/8/00.
Tiny Technology Means Big Gains for City, Arlington Star-
Telegram, 2/22/00.
Globalization, Sumo Wrestlers and Sprinters, Arlington Star-
Telegram, 4/4/00.
GM Arlington Going for World Class, Arlington Star-Telegram,
5/2/00.
Economy Looks to the Future, but Our Degree Plans Don't,
Arlington Star-Telegram, 8/22/00.
Developing the Community and Work Force Means More Wealth, Less
Poverty, Arlington Star-Telegram, 12/27/00.
What Are Texas' Top Business Communities Seeking? Arlington
Star-Telegram, 2/13/01.
A Model for Education in the New Economy, Arlington Star-
Telegram.
Texas Strategic Economic Development Plan, 1998-2008.
Texas Strategic Economic Development Planning Commission, 10/
30/98.
Speeches while serving as Assistant Secretary
Opening Statement of David A. Sampson,
Nominee to be Assistant Secretary of Commerce for Economic
Development,
Committee on Environment and Public Works,
United States Senate,
Washington, D.C., July 25, 2001.
Remarks of David A. Sampson,
U.S.-Mexican Border Summit,
The University of Texas--Pan American,
Edinburg, TX, August 24, 2001.
Remarks of David A. Sampson,
Council for Urban Economic Development,
Philadelphia, PA, September 10, 2001.
Remarks of David A. Sampson,
Department of Labor Region 1,
Conference Newark, NJ, October 26, 2001.
Testimony of David A. Sampson,
Committee on Environment and Public Works,
United States Senate,
Washington, D.C., November 1, 2001.
Remarks of David A. Sampson,
U.S./Mexico Strategic Alliance Conference,
Juarez, Mexico,
November 7, 2001.
Remarks of David A. Sampson,
EDA Austin Regional Office Southwestern Region,
Mid-Year Training Conference Oklahoma City, OK, November 8,
2001.
Remarks of David A. Sampson,
Christ's Haven for Children Dinner,
Dallas, TX, November 16, 2001.
Remarks of David A. Sampson,
National Indian Economic Development Conference,
Oklahoma City, OK, December 6, 2001.
Remarks of David A. Sampson,
National Governors Association,
Workforce Development Policy Forum,
New Orleans, LA, December 7, 2001.
Remarks of David A. Sampson,
An Economic Strategy for the 21st Century,
January 8, 2002.
Remarks of David A. Sampson,
Department of Labor Region IV,
Leadership Roundtable,
January 11, 2002.
Remarks of David A. Sampson,
National Association of State Workforce Board Chairs,
February 23, 2002.
Remarks of David A. Sampson,
National Association of Counties,
Annual Legislative Conference,
March 2, 2002.
Testimony of David A. Sampson,
U.S. Senate Committee on Environment and Public Works,
Brownfields Revitalization,
March 6, 2002.
Remarks of David A. Sampson,
Arkansas Workforce Investment Board,
March 19, 2002.
Remarks of David A. Sampson,
International Consuls Ball,
March 23, 2002.
Remarks of David A. Sampson,
EDA Philadelphia Region,
Economic Development Conference,
April 6, 2002.
Remarks of David A. Sampson,
MAPDD Annual Conference,
May 2, 2002.
Remarks of David A. Sampson,
EDA Chicago Regional Office Annual Conference,
May 9, 2002.
Remarks of David A. Sampson,
New York State Economic Development Council Meeting,
May 24, 2002.
Remarks of David A. Sampson,
National Governors Association,
Georgia Eastern Region Competitiveness Summit,
June 6, 2002.
Remarks of David A. Sampson,
David Lipscomb University,
July 9, 2002.
Remarks of David A. Sampson,
Department of Labor Workforce Innovation 2002 Conference,
July 9, 2002.
Remarks of David A. Sampson,
Texas Workforce Commission Conference,
Dallas, Texas,
September 4, 2002.
Remarks of David A. Sampson,
EDA Seattle Regional Office Regional Forum,
San Diego, California,
September 5, 2002.
Remarks of David A. Sampson,
S.W. Florida Hispanic Chamber of Commerce,
The White House,
September 19, 2002.
Remarks of David A. Sampson,
International Economic Development Council,
Oakland, California,
September 23, 2002.
Remarks of David A. Sampson,
Abilene Christian University,
Abilene, Texas,
September 30, 2002.
Remarks of David A. Sampson,
Abilene Civic Leaders Meeting,
Abilene, Texas,
September 30, 2002.
Remarks of David A. Sampson,
National Association of Development Organizations,
NADO 35th Annual Training Conference,
Reno, Nevada,
October 1, 2002.
Remarks of David A. Sampson,
State Science and Technology Institute Conference,
Dearborn, Michigan,
October 3, 2002.
Remarks of David A. Sampson,
East Mississippi Business Development Corporation,
Meridian, Mississippi,
October 14, 2002.
Remarks of David A. Sampson,
Association of University Research Parks 17th Annual
Conference,
New Orleans, Louisiana,
October 31, 2002.
Remarks of David A. Sampson,
Tech Transfer Showcase,
Patuxent River, Maryland,
November 12, 2002.
Remarks of David A. Sampson,
EDA Austin Office Regional Forum,
Santa Fe, New Mexico,
December 12, 2002.
Remarks of David A. Sampson,
Ft. Walton Rotary Club,
Ft. Walton Beach, Florida,
January 29, 2003.
Remarks of David A. Sampson,
American Water Works Association and Water Environment
Federation 2003 Joint Management Conference,
Dallas, Texas,
February 10, 2003.
Remarks of David A. Sampson,
National Association of Workforce Boards,
Washington, D.C.,
March 4, 2003.
Remarks of David A. Sampson,
International Economic Development Council,
IEDC Economic Development Summit,
Washington, D.C.,
March 6, 2003.
Remarks of David A. Sampson,
National Association of Regional Councils,
Washington Policy Conference,
Washington, D.C.,
March 17, 2003.
Remarks of David A. Sampson,
Embracing Regional Collaboration and Enhancing Community
Success Summit,
Dallas, Texas,
March 24, 2003.
Remarks of David A. Sampson,
Portland, Oregon Business Alliance,
Washington, D.C.,
April 10, 2003.
Remarks of David A. Sampson,
Federal Reserve Bank of Kansas City,
Center for the Study of Rural America,
April 28, 2003.
Remarks of David A. Sampson,
Commonwealth North,
Anchorage, Alaska,
May 28, 2003.
Remarks of David A. Sampson,
Organization for Economic Cooperation and Development
Territorial Development Policy Committee High Level Meeting,
June 25, 2003.
Remarks of David A. Sampson,
Pittsburgh Technology Council,
Pittsburgh, Pennsylvania,
July 9, 2003.
Remarks of David A. Sampson,
Balanced Scorecard Summit,
Washington, D.C.,
September 16, 2003.
Remarks of David A. Sampson,
Governor's Homeland Security Conference,
Virginia Military Institute,
October 29, 2003.
Remarks of David A. Sampson,
ACCE Annual Conference,
Charlotte, North Carolina,
October 30, 2003.
Remarks of David A. Sampson,
Future Forward Economic Alliance Summit,
Boone, North Carolina,
November 20, 2003.
Remarks of David A. Sampson,
Council on Competitiveness Conference,
Cleveland, Ohio,
November 21, 2003.
Remarks of David A. Sampson,
Southwest Regional Conference,
San Antonio, Texas,
December 9, 2003.
Remarks of David A. Sampson,
National Congress for Community Economic Development,
Washington, D.C.,
March 9, 2004.
Remarks of David A. Sampson,
National Rural Development Partnership,
Policy Consultation,
Rural Cabinet Meeting,
Arlington. Virginia,
March 17, 2004.
Remarks of David A. Sampson,
Internal Economic Development Council,
Washington, D.C.,
March 19, 2004.
Remarks of David A. Sampson,
Greater Waterbury Chamber of Commerce,
Waterbury, Connecticut,
March 24, 2004.
Remarks of David A. Sampson,
32nd Annual New Mexico First Town Hall Dinner,
April 15, 2004.
Remarks of David A. Sampson,
National Baseball Hall of Fame,
Cooperstown, New York,
May 10, 2004.
Remarks of David A. Sampson,
Council on Competitiveness Conference,
Coeur d' Alene, Idaho,
May 27, 2004.
Remarks of David A. Sampson,
Texas Workforce Commission,
Austin, Texas,
June 23, 2004.
Remarks of David A. Sampson,
Casper Area Economic Alliance Annual Dinner,
Casper, Wyoming,
June 26, 2004.
Remarks of David A. Sampson,
West Texas Legislative Summit,
San Angelo, Texas,
August 5, 2004.
Remarks of David A. Sampson,
``The Innovation Continuum''--A Conference Hosted by the
Council On Competitiveness & Rensselaer Polytechnic Institute,
Troy, New York,
September 8, 2004.
Remarks of David A. Sampson,
Kansas City Area Development Council,
Quarterly Meeting,
Kansas City, Missouri,
September 16, 2004.
Remarks of David A. Sampson,
OECD World Forum of Key Indicators,
Palermo, Italy,
November 12, 2004.
Remarks of David A. Sampson,
OECD International Conference on Innovation and Regional
Development,
Tuscany, Italy,
November 25, 2004.
Remarks of David A. Sampson,
St. Louis Regional Competitiveness Summit,
St. Louis, Missouri,
February 17, 2005.
Remarks of David A. Sampson,
White House Briefing to the National Congress of American
Indians,
Washington, D.C.,
March 2, 2005.
Remarks of David A. Sampson,
SBA Conference ``Pulling it Together: The Role of
Entrepreneurship in Economic Development'' Conference,
Washington, D.C.,
March 7, 2005.
Remarks of David A. Sampson,
Downtown Waco, Inc. Dinner,
Waco, Texas,
March 9, 2005.
Remarks of David A. Sampson,
National Council on Community Economic Development,
NCCED 10th Annual Policy Summit,
Washington, D.C.,
March 14, 2005.
Remarks of David A. Sampson,
National League of Cities,
``Congressional Cities Conference,''
Washington, D.C.,
March 14, 2005.
Remarks of David A. Sampson,
International Economic Development Council,
General Session,
Washington, D.C.,
March 15, 2005.
Periodicals written while serving as Assistant Secretary:
Technology Fuels Growth,
Op-Ed Page,
Albuquerque Journal
Albuquerque, New Mexico,
December 16, 2002.
A Message from David A. Sampson,
Economic Development America,
Spring 2004.
A Message from David A. Sampson,
Economic Development America,
Summer 2004.
A World of Opportunity: The Case for Optimism in the Worldwide
Economy,
Economic Development America,
Fall 2004.
Our Universities: Accelerators for Economic Growth,
Economic Development America,
Winter 2004.
16. Please identify each instance in which you have testified
orally or in writing before Congress in a non-governmental capacity and
specify the subject matter of each testimony: None.
B. POTENTIAL CONFLICTS OF INTEREST
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers: None.
2. Do you have any commitments or agreements, formal or informal,
to maintain employment, affiliation, or practice with any business,
association, or other organization during your appointment? No.
3. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated: None.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last 5 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated: None.
5. Describe any activity during the past 5 years in which you have
been engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy.
None prior to commencing my service with this Administration.
During my Federal Government service I have helped draft or edit
letters to Members of Congress and Senators, appeared before
Congressional Committees, and met with Members of Congress, Senators,
and Congressional staff regarding the Administration position on
various issues, including legislation.
I served as the Administration's point person on behalf of the
``Economic Development Administration Reauthorization Act of 2004.'' In
that capacity, I met with individual Members of Congress and their
staff to discuss the bill and testified before Congressional
Committees.
In February 2005, President Bush proposed the ``Strengthening
America's Communities Initiative'' in his FY06 Budget Submission. As
Assistant Secretary of Commerce for Economic Development, I have met
with Members of Congress and their staff to explain the proposal and
testified before the House Subcommittee on Federalism and the Census,
as well as the House Transportation Subcommittee on Economic
Development and Public Buildings.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
I will consult with ethics officials of the Department of Commerce
and take whatever action is deemed necessary and appropriate to resolve
or avoid any potential conflict of interest.
C. LEGAL MATTERS
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject to any court, administrative agency,
professional association, disciplinary committee, or other professional
group? No.
2. Have you ever been investigated, arrested, charged, or held by
an Federal, State, or other law enforcement authority of any Federal,
State, county, or municipal entity, other than for a minor traffic
offense?
In June 2003, the Department of Commerce Office of Inspector
General (OIG) received an anonymous complaint alleging that I had
violated conflict of interest rules relative to the award of an EDA
grant to the University of Texas at Arlington Technology Incubator. The
OIG, after a thorough investigation, found that the allegation had no
merit, and in fact, found unequivocally, that I took no action to
affect the award of the grant, and there was no violation of law or
regulation by the agency.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere of any criminal violation other than a minor traffic
offense? No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination.
Over the past 4 years, I have led the Economic Development
Administration through significant change, including a reorganization,
the introduction of investment policy guidelines and funding priorities
for its activities, the implementation of a balanced scorecard, and
application of rigorous performance management of personnel. While this
resulted in a dramatic improvement of EDA's overall performance (as
evidenced in OMB's PART analysis rating EDA as the highest performer
among Federal Government's 18 community and economic development direct
grant programs), it also resulted in a 20 percent reduction of
headquarters staff. It is possible that some internal and external
groups that opposed these management initiatives may take issue with my
nomination.
6. Have you ever been accused, formally or informally, of sexual
harassment or discrimination on the basis of sex, race, religion, or
any other basis? If so, please explain.
As the head of a bureau at the Department of Commerce, I am
ultimately responsible for all personnel decisions taken by all
supervisors in the bureau. It is my understanding that during my four
years at the Department, only one employee initiated a discrimination
case against the Department through the administrative process open to
all federal employees. Four other cases existed at the time I became
Assistant Secretary. These were settled or dismissed, and one is
pending decision. There have been no findings of discrimination.
D. RELATIONSHIP WITH THE COMMITTEE
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees?
If confirmed by the Senate, I will make it a high priority to
ensure the department complies with deadlines set by congressional
committees.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures?
If confirmed by the Senate, I will make it a priority to ensure
that the department protects congressional witnesses and whistle
blowers from reprisal.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee?
If confirmed by the Senate, I will make it a priority to ensure the
Committee has access to witnesses and subject matter experts to assist
in your oversight and policy development responsibilities.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so?
If confirmed by the Senate, it will be a personal priority to make
myself available to appear and provide testimony before Congressional
Committees.
Senator Lott. Thank you, Dr. Sampson.
Let us go ahead with John Sullivan and his testimony on
behalf of his nomination to be General Counsel of the
Department of Commerce. I read your resume. It is very
interesting. You certainly have plenty of legal experience and
good experience working as the Deputy General Counsel at the
Department of Defense.
I also noted that you served as a law clerk to Judge John
Minor Wisdom of the Fifth Circuit Court of Appeals----
Mr. Sullivan. That is correct, Senator.
Senator Lott. in New Orleans, Louisiana. Whether you agree
with his decisions or not, he certainly has a well-earned
reputation for having some of the brightest and subsequently
most successful law clerks of just about any appellate court
judge in this country. So just the fact that you clerked with
him probably boosts your credentials even more.
Mr. Sullivan. Thank you very much, Senator. It was a great
honor to----
Senator Lott. Well, having said that, we would be glad to
hear your statement this morning.
STATEMENT OF JOHN J. SULLIVAN, NOMINEE TO BE GENERAL COUNSEL OF
THE DEPARTMENT OF COMMERCE
Mr. Sullivan. Thank you, Mr. Chairman, Members of the
Committee. I am honored to appear before you today as the
President's nominee to serve as the General Counsel of the U.S.
Department of Commerce. I am grateful and honored that
President Bush has given me this opportunity. And I am deeply
gratified by the confidence and support shown to me by
Secretary Gutierrez.
I would also like to thank this Committee and its staff for
the courtesies they have extended to me in this confirmation
process.
The General Counsel of the Department of Commerce is the
agency's chief legal officer, providing advice to the Secretary
and senior officials as they perform their vital work. The
breadth of the Department's responsibilities and activities are
reflected in the complex legal environment in which it
operates. Competently handling the complex legislative and
regulatory issues faced daily in the Department, from the
regulation of international trade to management of marine
fisheries and a multitude of other functions, all those issues
will present a formidable challenge, but one that I welcome.
If confirmed by the Senate, I believe I will bring
substantial relevant experience to the position of General
Counsel. In 20 years of law practice, I have had the privilege
of serving in a wide variety of positions, as a law clerk to
Judge John Minor Wisdom in New Orleans and to Supreme Court
Justice David H. Souter of New Hampshire and was counselor to
the assistant attorney general in charge of the Office of Legal
Counsel at the Justice Department.
I have been a partner in the law firm of Mayer, Brown, Rowe
and Maw here in the D.C. office. And as you mentioned, Senator,
my current position, I am the Deputy General Counsel of the
Defense Department. In all of these roles, in representing
clients in trial and appellate proceedings, complex regulatory
matters, and international business transactions, I believe I
have developed the skills and experience necessary to address
the legal changes facing the Commerce Department.
I also know that I have much to learn about the Department,
its programs, and the laws and regulations that govern its
operations. As I look forward to beginning this education, I
know that I will be well supported by the deep and talented
staff of career lawyers and other professionals at the
Department. I am confident that with their support I will
perform my duties with the skill and professionalism that
President Bush and you expect and deserve.
In this regard, there is no more important duty for the
General Counsel than to serve as the chief ethics lawyer for
the Department. Compliance with the letter and spirit of the
ethics laws is a top priority for Secretary Gutierrez. I share
a strong commitment to ensuring that the employees of the
Department act with the utmost integrity and honesty. And I
will strive to ensure that the Department's programs are
implemented in that spirit.
I also have a keen appreciation for the role of this
Committee and the other committees of the Congress in enacting
the laws under which the Department operates and in conducting
oversight of the manner in which those laws are executed. I
would welcome the opportunity to work with you as the
Department pursues its multiple missions.
Permit me to conclude by saying that I believe that public
service is a special privilege and responsibility. If
confirmed, I will commit my utmost energy, integrity, and
devotion to serving the President and the American people.
Thank you again for the opportunity to appear before you today
and for your consideration of my nomination.
I would be pleased to respond to any questions you may
have.
Senator Lott. Thank you.
[The prepared statement of Mr. Sullivan follows:]
Prepared Statement of John J. Sullivan, Nominee to be General Counsel
of the Department of Commerce
Mr. Chairman. Senator Inouye, Members of the Committee, I am
honored to appear before you today as the President's nominee to serve
as the General Counsel of the U.S. Department of Commerce. I am
grateful and honored that President Bush has given me this opportunity,
and I am deeply gratified by the confidence and support shown to me by
Secretary Gutierrez. I would also like to thank this Committee and its
staff for the courtesies they have extended to me.
The General Counsel of the Department of Commerce is the agency's
chief legal officer, providing advice to the Secretary and senior
officials as they perform their vital work. The breadth of the
Department's responsibilities and activities are reflected in the
complex legal environment in which it operates. Competently handling
the myriad legislative and regulatory issues faced daily in the
Department--from regulation of international trade to management of
marine fisheries and a multitude of other functions--will present a
formidable challenge, but one that I welcome.
If confirmed by the Senate, I believe I would bring substantial
relevant experience to the position of General Counsel. In 20 years of
law practice, I have had the privilege of serving in a wide variety of
positions: as a law clerk to Judge John Minor Wisdom and to Supreme
Court Justice David H. Souter; as Counselor to the Assistant Attorney
General in charge of the Office of Legal Counsel at the Justice
Department; as a partner in the international law firm of Mayer, Brown,
Rowe & Maw; and my current position as Deputy General Counsel of the
Department of Defense. In all of these roles--in representing clients
in trials and appellate proceedings, complex regulatory matters, and
international business transactions--I believe I have developed the
skills and experience necessary to address the legal challenges facing
the Commerce Department.
I also know that I have much to learn about the Department, its
programs, and the laws and regulations that govern its operations. As I
look forward to beginning this education, I know that I will be well
supported by the deep and talented staff of career lawyers and other
professionals at the Department. I am confident that, with their
support, I will perform my duties with the skill and professionalism
that President Bush and you expect and deserve.
In this regard, there is no more important duty for the General
Counsel than to serve as the chief ethics lawyer for the Department.
Compliance with the letter and spirit of the ethics laws is a top
priority for Secretary Gutierrez. I share his strong commitment to
ensuring that the employees of the Department act with the utmost
integrity and honesty, and I will strive to ensure that the
Department's programs are implemented in that spirit.
I also have a keen appreciation for the role of this Committee, and
the other Committees of the Congress, in enacting the laws under which
the Department operates and in conducting oversight of the manner in
which those laws are executed. I would welcome the opportunity to work
with you as the Department pursues its multiple missions.
Permit me to conclude by saying that I believe that public service
is a special privilege and responsibility. If confirmed, I will commit
my utmost energy, integrity and devotion to serving the President and
the American people. Thank you again for the opportunity to appear
before you today, and for your consideration of my nomination.
I would be pleased to respond to any questions you may have.
______
A. BIOGRAPHICAL INFORMATION
1. Name (Include any former names or nicknames used): John Joseph
Sullivan.
2. Position to which nominated: General Counsel of the United
States Department of Commerce.
3. Date of Nomination: May 10, 2005.
4. Address (List current place of residence and office addresses):
Residence: information not released to the public.
Office: Deputy General Counsel (Legal Counsel), United States
Department of Defense, Room 3B688, 1600 Defense Pentagon,
Washington, DC 20301-1600.
5. Date and Place of Birth: November 20, 1959: Boston, MA.
6. Provide the name, position, and place of employment for your
spouse (if married) and the names and ages of your children (including
stepchildren and children by a previous marriage).
Wife: Graciela Maria Rodriguez,
Partner, King & Spalding LLP,
1700 Pennsylvania Avenue, NW.,
Washington, DC 20006-4706.
Children: John Hugh Sullivan, 14,
Katherine Ann Sullivan, 11,
Edward Albert Sullivan, 8.
7. List all college and graduate degrees. Provide year and
school attended.
Brown University, A.B. in Political Science and History, 1981.
Columbia University School of Law, J.D., 1985.
8. List all management-level jobs held and any non-managerial jobs
that relate to the position for which you are nominated.
Deputy General Counsel, United States Department of Defense
(2004-present).
Partner, Mayer, Brown, Rowe & Maw (1997-2004).
Associate. Mayer, Brown & Platt (1993-1996).
Counselor to the Assistant Attorney General, Office of Legal
Counsel, United States Department of Justice (1991-1992).
Law Clerk, Justice David H. Souter, Supreme Court of the United
States (1990-1991).
Associate, Paul, Weiss, Rifkind, Wharton & Garrison (1987-
1990).
Law Clerk, Judge John Minor Wisdom, United States Court of
Appeals for the Fifth Circuit (1985-1986).
9. List any advisory, consultative, honorary or other part-time
service or positions with Federal, State, or local governments, other
than those listed above, within the last five years: None.
10. List all positions held as an officer, director, trustee,
partner, proprietor, agent, representative or consultant of any
corporation, company, firm, partnership, or other business, enterprise,
educational or other institution within the last five years.
Partner, Mayer, Brown, Rowe & Maw, 1997-2004.
11. Please list each membership you have had during the past ten
years or currently hold with any civic, social, charitable,
educational, political, professional, fraternal, benevolent or
religious organization, private club, or other membership organization.
Include dates of membership and any positions you have held with any
organization. Please note whether any such club or organization
restricts membership on the basis of sex, race, color, religion,
national origin, age or handicap.
Member, New York Bar, 1987-present.
Member, D.C. Bar, 1993-present.
Member, Federalist Society, 1990-present.
General Counsel, Phil Gramm for President, 1995.
Head Coach, Montgomery Youth Hockey Association, 1997-2004.
None of these organizations restricts membership on the basis
of sex, race, color, religion, national origin, age or
handicap.
12. Have you ever been a candidate for public office? If so,
indicate whether any campaign has any outstanding debt, the amount, and
whether you are personally liable for that debt: No.
13. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years.
Floyd, Charles, via Floyd for Congress Committee, 12/15/2003--
$500.00.
Ryan, Jack, via Jack Ryan for U.S. Senate, 02/06/2004--$500.00.
Bush, George W., via Bush for President Inc., 05/13/1999--
$1000.00.
Bush, George W., via Bush-Cheney 2004 (Primary) Inc., 05/29/
2003--$2000.00.
Bush, George W., via Bush-Cheney 2004 Compliance Committee
Inc., 08/18/2004--$2000.00.
Republican National Committee, 12/26/2003--$500.00.
Total Contributions: $6,500.00.
14. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals and any other special recognition
for outstanding service or achievements: None.
15. Please list each book. article, column, or publication you have
authored, individually or with others. and any speeches that you have
given on topics relevant to the position for which you have been
nominated. Do not attach copies of these publications unless otherwise
instructed.
``Federal Preemption: Two Renditions of a Fundamental Theme,''
Inside Litigation (October 1998); ``Appeals to the Supreme Court,''
Business and Commercial Litigation in Federal Courts (West 1998);
``Supreme Court Bypasses Airbag Preemption Case,'' Legal Opinion
Letter, Washington Legal Foundation (1996); Note, ``The Equal Access to
Justice Act in the Federal Courts,'' 84 Colum. L. Rev. 1089 (1984).
16. Please identify each instance in which you have testified
orally or in writing before Congress in a non-governmental capacity and
specify the subject matter of each testimony: None.
B. POTENTIAL CONFLICTS OF INTEREST
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers.
I continue to maintain an interest in a 401(k) savings plan
established by my former employer (Mayer, Brown, Rowe & Maw). As
disclosed in my attached financial disclosure form (SF-278), my account
is vested in diversified mutual funds and no contributions to this
account have been (or will be) made since the termination of my
employment in February 2004.
2. Do you have any commitments or agreements, formal or informal,
to maintain employment, affiliation or practice with any business,
association or other organization during your appointment? No.
3. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
If appointed to the position of General Counsel, I will take
actions necessary to avoid a conflict of interest with the duties of
that position. Specifically, within 90 days of appointment I will take
the following actions.
I will divest my stock holdings and the holdings of my spouse and
dependent children in the following companies:
Caremark Rx, Inc.
Chevron-Texaco Corp.
Citigroup Corp.
Comcast Corp.
Emerson Electric Co.
General Electric Company
International Business Machines Corp.
Procter & Gamble.
Until I have divested these interests, I will not participate
personally and substantially in a particular matter that will have a
direct and predictable effect on the above-referenced companies unless
my participation is permitted due to a regulatory exemption or conflict
of interest waiver.
My remaining financial interests do not require recusal from any
duties as General Counsel because they are covered by regulatory
exemptions to 18 U.S.C. Sec. 208 or are otherwise not conflicting
financial interests. However, in the event I obtain any interests that
require my disqualification from participating in particular matters as
General Counsel, I will comply with such disqualification requirements
unless my participation is permitted due to a regulatory exemption or
conflict of interest waiver.
In addition, I will not personally and substantially participate in
any particular matter in which my wife's law firm, King & Spalding LLP,
has a financial interest unless I am permitted to participate due to a
regulatory exemption or conflict of interest waiver. Furthermore,
pursuant to 5 CFR Sec. 2635.502, I will not participate in any
particular matter involving specific parties in which any client of my
spouse is or represents a party, unless I am permitted to participate
under ethics regulations.
I will issue a statement memorializing my recusals within 90 days
of my confirmation.
In the event my participation in a matter from which I am
disqualified is important to the government, I will seek advice from an
ethics official on means to resolve a conflict of interest.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last 5 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated: None.
5. Describe any activity during the past 5 years in which you have
been engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy.
I represented, on a pro bono basis, the Special Operations Warrior
Foundation, which sought a federal charter from Congress.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
If appointed to the position of General Counsel, I will take
actions necessary to avoid a conflict of interest with the duties of
that position. Specifically, within 90 days of appointment I will take
the following actions.
I will divest my stock holdings and the holdings of my spouse and
dependent children in the following companies:
Caremark Rx, Inc.
Chevron-Texaco Corp.
Citigroup Corp.
Comcast Corp.
Emerson Electric Co.
General Electric Company
International Business Machines Corp.
Procter & Gamble.
Until I have divested these interests, I will not participate
personally and substantially in a particular matter that will have a
direct and predictable effect on the above-referenced companies unless
my participation is permitted due to a regulatory exemption or conflict
of interest waiver.
My remaining financial interests do not require recusal from any
duties as General Counsel because they are covered by regulatory
exemptions to 18 U.S.C. Sec. 208 or are otherwise not conflicting
financial interests. However, in the event I obtain any interests that
require my disqualification from participating in particular matters as
General Counsel, I will comply with such disqualification requirements
unless my participation is permitted due to a regulatory exemption or
conflict of interest waiver.
In addition, I will not personally and substantially participate in
any particular matter in which my wife's law firm, King & Spalding LLP,
has a financial interest unless I am permitted to participate due to a
regulatory exemption or conflict of interest waiver. Furthermore,
pursuant to 5 CFR Sec. 2635.502, I will not participate in any
particular matter involving specific parties in which any client of my
spouse is or represents a party, unless I am permitted to participate
under ethics regulations.
I will issue a statement memorializing my recusals within 90 days
of my confirmation.
In the event my participation in a matter from which I am
disqualified is important to the government, I will seek advice from an
ethics official on means to resolve a conflict of interest.
C. LEGAL MATTERS
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority of any Federal,
State, county, or municipal entity, other than for a minor traffic
offense? No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination: None.
6. Have you ever been accused, formally or informally, of sexual
harassment or discrimination on the basis of sex, race, religion or any
other basis? No.
D. RELATIONSHIP WITH COMMITTEE
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted Committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
Senator Lott. Thank you very much, gentlemen.
I am pleased to recognize that Senator Bill Nelson from
Florida has recognized us. And in a moment I would recognize
him for a statement or any questions he would like to make.
Just one sort of statement and then a question for you, Dr.
Sampson. This is parochial perhaps in nature, but it certainly
involves a broad part of the country. I am from Pascagoula,
Mississippi. I grew up on the banks of the Pascagoula River
rowing in a small skiff six miles off the coast to the nearest
island, Round Island. I grew up fishing. I grew up next door to
shrimpers and oystermen and red snapper fishermen and
hardworking, great men and women, who worked tough hours but
are really great people, too. They were my neighbors. They were
my friends. They were my classmates.
And so for 36 years in my public career as a staff member,
as a Congressman and a Senator, I have been working to try to
be sensitive to particularly the Gulf of Mexico fisheries in
general, at all levels, conservation, sports, and commercial.
And I must confess my bent toward commercial because I do think
that they are farming the seas and are an important part of our
economy. They provide a lot of income to the economy and a good
living for the people that participate.
And, of course, they are like farmers of the land. They are
quite often influenced or affected by the weather and, you
know, overfishing, which they have to control. But for years, I
have been battling for fisheries in the Gulf, quite often a
pretty lonely battle and only with marginal success. The
National Marine Fisheries budget always shortchanges the Gulf.
Between 2003 and 2005, the portion of the NMFS going to the
Gulf of Mexico varied between 7 to 9 percent, only 7 to 9
percent, while the portion of the Nation's fish caught in the
Gulf of Mexico averaged 17 percent by weight, 21 percent by
value. Meanwhile, the percentage of NMFS budget being held at
headquarters has risen from 20 to 24 percent. It seems to me
like priorities are a little misplaced.
This is a Republican Administration. We are supposed to be
pushing more money out of this city of what is available into
where the rubber meets the road or the hook hits the water. And
that has not been happening. The other way has been what has
been happening.
Now I have met many times with the Secretary of Commerce.
Secretary Evans, when he left, he sent me a nice letter with a
fish at the bottom, drawn on the bottom of this letter. And I
gave him a fish tie as he left. And when I met with the new
Secretary, this was the point I emphasized.
But I have also met with the NMFS administrator, Bill
Hogarth, in March. I asked him to provide me with apportionment
by region of the Administration's 2006 request for NMFS, the
justification for it, how they are going to adjust this
inadequacy. And I have not received all of the information yet.
Now at the very minimum, you talk about respect, Mr.
Sullivan, for the Congress and the Committee. It seems to me
that while you may not be able to comply with our request for
the region, you could at least provide the information on what
the situation is and what the situation is going to be.
So here are my two questions for you, Dr. Sampson. One,
will you see to it I get this information? And two, will you
help us address this disparity in funding?
Dr. Sampson. With respect to your first question, Mr.
Chairman, being responsive to Members of Congress is a very
high priority for me, has been over the last 4 years. And I
will ensure that you receive a response very promptly to your
request for information.
With respect to your second question, I have lived all of
my adult life in Gulf Coast states. I went to graduate school
in New Orleans. I have lived all of my adult life in Texas. And
I am committed to working with the Gulf region to ensure the
funding needed to meet resource management needs is
appropriately allocated and look forward to working with you
and this Committee to that end, if I have the chance to serve.
Senator Lott. I will give you a map that shows the
apportionment by region. And I will be glad to have it blown up
for your wall, if you would like. But for now, I will give you
just this map.
Now Senator Hutchison from Texas and Senator Bill Nelson
from Florida and Senator Rockefeller from the north side of the
Gulf would all appreciate your cooperation.
[Laughter.]
Senator Rockefeller.
Senator Rockefeller. Thank you, Mr. Chairman.
Let me address this to both of you. During the Clinton
Administration, it was the Department of Commerce that was
meant to decide what was going to happen about steel policy.
Now when I bring up the word steel policy, Chairman Lott tends
to die, because he says, ``Here we go again.'' But I am not----
Senator Lott. I have been with you on occasion. Do not
forget that.
Senator Rockefeller. I know that. And I am not doing it for
the purpose of discussing steel. It is a philosophical point.
And there was a very interesting dynamic which caused a fairly
substantial rift, actually, between myself and President
Clinton for a number of years. And that is that the Department
of Commerce sort of discusses what should be our policy with
WTO, what should be our policy with the trade representatives,
that, too, but what should be our policy about making sure that
we keep manufacturing, that the steel industry remain healthy.
We understand that Brazil and China and others are--the
Department of Commerce's policy was pretty good. The problem
was that when we would have meetings of the steel caucus, it
was Secretary Ruben who became the Department of Commerce. And
he had decided that this was a completely open world for free
trade. And I understand that. One has to be a realist here. But
he spoke for the President. And in fact, he, I think,
influenced the President to back away from his commitment to
West Virginia to try and help our steel industry.
And the result was our steel industries have been through
bankruptcies and all kinds of situations. And relatively few
people are working. And I care about that because now, as
Governor, I literally--with Weirton Steel, which I think is the
eighth largest producer, they were about to close down because
of labor-management strife. And I went up with some people and
spent a number of weeks and actually turned it around, saved
it. And they became an ESOP, actually the largest ESOP. I don't
think United was an ESOP at that point.
But what was interesting is the fact that there is the
State Department, there is Treasury, there is monetary policy,
there are all kinds of other things. The Department of Commerce
economic decisions, manufacturing decisions, never stand on
their own, because in a sense they cannot, because they are
just part of the picture.
So once you say something is part of the larger picture,
then that tends to marginalize what you might be trying to
think of in the Department of Treasury or the Treasury of the
United States would say: Well, no we cannot do that because we
have this and that political problem, or somebody else would
say: Well, we have special problems with China or Brazil, other
things that we have to tend to.
And I am interested in your sort of reaction on the part of
each of you to that very real situation. I do not mimic the
situation, but it was one that turned out to be very
destructive to us.
Dr. Sampson. Well, Senator, obviously I cannot speak about
what happened in the previous Administration. What I would say
is that the President's 2001 steel initiative, I think, was a
very bold step. Secretary Evans was a critical player in
advising the President on that approach. And I know that
Secretary Gutierrez is a key member of the President's economic
team. The President has asked him to head the prosperity pillar
for the Security and Prosperity Partnership between Canada, the
U.S., and Mexico that is currently underway.
And this Administration is committed to a very strong and
robust steel, domestic steel, industry. And that will be the
goal toward which we will continue to work.
Senator Rockefeller. Which, before I call on Mr. Sullivan,
leads me to the second part of that, which is that you are
quite right that the President got very high marks in West
Virginia for doing the Section 201. But what happened
thereafter, almost nobody in West Virginia really understood,
or across the country understands where steel is produced. And
that is that Bob Zoellick, then USTR, took 95 percent of what
the Section 201 covered and exempted it from Section 201.
So that was little noticed. The 201 was greatly noticed.
But the effect was catastrophic. And it is that pull between
agencies and pull between larger and smaller priorities, which
is interesting to me.
Mr. Sullivan, do you have any point you want to----
Mr. Sullivan. Senator, the only observation I would make, I
really am new to the Department's issues and steel in
particular, but I have a lot of experience in my prior
government service with the interagency process and how it
works. And I am committed to helping Secretary Gutierrez
achieve his goals for the President. The President has
entrusted him with substantial responsibilities. And I am aware
of how the interagency process can work and sometimes not work.
And I am committed to helping Secretary Gutierrez in that
process.
Senator Rockefeller. OK. And did you have a----
Mr. Sampson. Senator, other than to say my next door
neighbor owns a steel company. And so I hear about this issue
not only here but at Little League ball games and across the
fence. So I am quite aware of the ramifications of our
decisions here in Washington on manufacturers and users of
steel policy.
Senator Rockefeller. I look forward to supporting you both.
Thank you.
Senator Lott. Thank you, Senator.
Senator Nelson?
STATEMENT OF HON. BILL NELSON,
U.S. SENATOR FROM FLORIDA
Senator Bill Nelson. Thank you, Mr. Chairman.
I just want to ask one question of Mr. Sampson. It is a
very important position. And I understand he is a tremendously
credentialed person for this high-level executive
responsibility of Number 2 in the Department.
I would just like your opinion. There is legislation that
has been filed by Senator Santorum of Pennsylvania. And what
the legislation does, it says that if there is a competitive
alternative to a government website, that the government cannot
compete with the competitive alternative. The obvious example
is in your Department. At the direction of President Bush upon
his inauguration, he directed that all the agencies of
government would come out with a website so that information
would be freely and quickly available to the people of the
United States.
This particular website for the National Weather Service
was especially helpful and critical when four hurricanes hit my
state within a 6-week period starting last hurricane season, as
a matter of fact. Now I do not know what the weather is like in
Pennsylvania, but I know getting information about hurricanes
can be a matter of life and death to people in Florida, as was
the case. As a matter of fact, there were recorded nine
billion, with a b, hits on the National Weather Service website
during that 6-week period of those hurricanes. That, by the
way, far exceeds the number of hits on any government website.
The most up until that point had been the six million hits on
the NASA website when the Rover landed on the surface of Mars.
Now what Senator Santorum's bill S. 786 would do would
require the elimination of the website because there is a
company in his state, AccuWeather, that offers the same
information. And so it would require that the government not be
in competition.
Now that is--I have laid out the case. Tell me what your
feelings are.
Mr. Sampson. Well, Senator, first of all, weather is a very
important part of our function. About 30 percent of the economy
of the United States is affected by the weather, not to mention
the life and safety issues that you have so clearly
articulated. I am not aware that the Administration has issued
a statement on the Santorum bill at this point. What I can tell
you is that, if confirmed by the Senate, I will be committed to
a very strong, robust national weather service complete system
at the Department of Commerce. And we will work to ensure that
information is readily available to the American citizens.
I am aware that this is an important issue. I have been
very broadly briefed on this. But as I said, I am not aware
that there is a statement of position on this particular bill
at this time, which I think was just recently filed.
Senator Nelson. OK. That is good enough. And I hope I do
not have to come see you in the future to remind you of your
statement today. Because I think reason and common sense will
prevail. Particularly, by the way, within 2 weeks we are now
entering the next hurricane season.
And Mr. Chairman, I would just say in passing that I want
to commend to you the service that NOAA does and the hurricane
trackers. I have flown on those hurricane hunters, in fact was
flying on the one when the first hurricane, Charlie, was south
of Cuba, as they are dropping the sondes in predesignated
points along the route, measuring all kinds of data. It comes
back to the airplane real time, is formulated and sent by
satellite to the National Hurricane Center, which then computes
the data which gives us so much of a better accuracy in
predicting the path and the ferociousness of a hurricane.
And I would commend to you on some of their propeller-
driven aircraft that they use for lower altitudes, they need
some more. So having been there and seen what the valuable
service is, I would commend that to you as you get into the
deliberations on those hurricane hunters.
Senator Lott. Senator Nelson, you do know where the Air
Force's hurricane hunters originate from, do you not?
Senator Nelson. Well, you must be telling me Mississippi.
Senator Lott. Keesler Air Force Base, Mississippi. We are
very proud of their work. And being the beneficiaries of some
hurricane attention, we share all of your concerns. And we
appreciate the service they provide.
Thank you very much, gentlemen. Congratulations to you for
being nominated. And best wishes in the confirmation process
and in your job when you are confirmed.
This hearing is adjourned.
[Whereupon, at 10:43 a.m., the hearing was adjourned.]
A P P E N D I X
Response to Written Questions Submitted by Hon. David Vitter to
Dr. David A. Sampson
Question. As you may know, Louisiana's crawfish industry has been
battered for years by imports of dumped crawfish tail meat from China.
There has been an antidumping duty order in place since 1997, but it
has been circumvented on a massive scale and Customs has collected only
about five percent of the antidumping duties owed to the United States.
Some of those duties have been provided to the domestic crawfish
industry under the Continued Dumping and Subsidy Offset Act (CDSOA) and
have played a vital role in allowing the industry to rebuild and remain
competitive.
In the past, nearly all of the duty collections have come from
``automatic liquidation'' of entries by shippers that do not have their
own individual duty deposit rates and have not asked the Department of
Commerce to conduct an administrative review of their entries. These
shippers have waived their right to review by Commerce and have thus
consented to the liquidation of their entries at the China-wide rate of
223.01 percent. Previously, Commerce has ordered Customs to perform
``automatic liquidation'' of such entries shortly after the deadline
for requesting an administrative review has lapsed. This year, without
any notice to the domestic industry, Commerce has reversed itself and
is refusing to issue the ``automatic liquidation'' instruction to
Customs with respect to entries made during 2003-2004. If Commerce
persists in this course, there will likely be virtually no CDSOA funds
available for the domestic crawfish industry this year. This will cause
serious additional damage to an industry which has already become the
poster child for poor enforcement of the antidumping laws. This single
case already accounts for more than 80 percent of all delinquent AD/CVD
duties.
As Deputy Secretary will you make assurances that the Department of
Commerce will take immediate action to expedite the issuance of the
``automatic liquidation'' instructions for 2003-2004? I would also like
for you to ensure that the domestic crawfish industry receives a full
and fair opportunity for notice and comment before Commerce changes its
prior practice on ``automatic liquidation'' in this case.
Answer. I appreciate your and your constituents' concerns regarding
the issuance of automatic liquidation instructions in the
administrative reviews of the antidumping duty order on crawfish from
China. This situation has arisen as a result of last summer's
reorganization of Import Administration and the fact that there was not
a consistent practice on the issuance of automatic liquidation
instructions in cases involving non-market economy (NME) countries
(such as China) among the three enforcement offices that were
responsible for conducting such cases prior to the reorganization.
As a result of the reorganization, the NME-related casework of
those three offices was consolidated into a single office--the Office
of Non-Market Economy Compliance. Since the consolidation, that office
has been working to ensure that uniform policies are applied across all
proceedings before it. With respect to the issuance of liquidation
instructions in cases involving non-market economy countries, the
prevailing practice was not to issue automatic liquidation instructions
at the outset of a proceeding, but rather to wait until the conclusion
of the proceeding. As you and your constituents know, a different
practice was previously followed for several years with respect to the
antidumping order on crawfish.
In the current crawfish review, in an effort to ensure consistency
across proceedings, a decision was made not to issue automatic
liquidation instructions at the outset of the review, in contrast to
the action taken in earlier reviews. I regret that your constituents
were not given an opportunity to comment on this change in practice,
and I have expressed my concerns about it to senior Import
Administration officials.
Import Administration will be issuing shortly a Federal Register
notice requesting public comments on whether its current practice on
the issuance of automatic liquidation instructions in NME proceedings
should be revised. This notice will allow your constituents an
opportunity to recommend changes to the current practice and offer
their suggestions on how the practice might be improved. I understand
that there may be conflicting views among various domestic industries
on this question, so I would encourage your constituents who are
interested in this issue to participate actively in this comment
process.
Finally, with respect to the duty collection issue you raised
during our recent conversation, U.S. Customs and Border Protection
(CBP) is responsible for collecting duties from U.S. importers of
crawfish tail meat from China. To the extent you have not already done
so, you or your staff may wish to contact appropriate officials within
the CBP to discuss the issue further.
______
Response to Written Questions Submitted by Hon. Daniel K. Inouye to
Dr. David A. Sampson
Question 1. Can you describe the progress and status of the
President's Manufacturing Initiative?
Answer. The ``Manufacturing in America Report'' included 57
recommendations to enhance U.S. manufacturing competitiveness.
Responsibility for these recommendations stretches across various
agencies and the Congress.
Of the 57 Recommendations, 21 have been initiated, some on an
ongoing basis:
1. Create an Assistant Secretary of Commerce for Manufacturing
and Services.
2. Create a new Office of Industry Analysis.
3. Establish a President's Manufacturing Council to provide
oversight and advice on the implementation of the Manufacturing
Initiative.
4. Coordinate Manufacturing Extension Partnership centers with
other Commerce programs.
5. Promote the protection of U.S. intellectual property abroad
by expanding cooperative efforts with developing country
trading partners.
6. Investigate aggressively allegations of theft of
intellectual property that would violate commitments made under
TRIPS or similar provisions of bilateral or regional
agreements.
7. Establish an Office of Investigations and Compliance within
Commerce.
8. Establish a Task Force within Commerce's Import
Administration to pursue the elimination of Foreign Unfair
Trade Practices.
9. Establish an office within Import Administration to
coordinate cases involving non-market economies.
10. Enhance the U.S. Government's efforts on behalf of U.S
manufacturing by consolidating Commerce Department export
promotion functions.
11. Accelerate implementation of the President's National
Export Strategy.
12. Review the existing structure of the U.S. foreign-trade
zone program to determine how it could be enhanced to provide a
greater incentive to manufacture in the U.S.
13. Promote health savings accounts.
14. Adopt and implement bar coding of medical products.
15. Reduce the burden of regulations on manufacturing
enterprises.
16. Create an interagency working group on manufacturing
research and development.
17. Encourage the Small Business Innovation Research and Small
Business Technology Transfer Programs to focus on
manufacturing.
18. Enact class-action reform.
19. Expand the reach of programs designed to provide technical
assistance.
20. Promote global recognition of U.S. technical standards.
21. Create an interagency federal task force to address the
structural economic challenges faced by manufacturing-dependent
communities.
Question 2. If manufacturing is such an important priority for the
Administration, why does the President continue to cut the
Manufacturing Extension Partnership, a program that assists small and
medium sized manufacturers become more competitive?
Answer. The fiscal discipline required in developing this budget
forced us to make some tough choices. The Administration proposes to
fund the Hollings Manufacturing Extension Partnership Program (Hollings
MEP) at $46.8 million, 50 percent of the FY 2005 grant level. At this
level, the Administration will maintain a national network of centers
while focusing funding based on centers' performance and need. The FY
2006 Budget is not intended to reduce the number of centers. One of the
strengths of the Hollings MEP network has been its utility to other
federal agencies; we will continue to aggressively pursue partnerships
to leverage the network. Last year, federal partners provided an
additional $7 million in funding to centers.
Question 3. Last year, the Congress passed a bill, S. 1134,
reauthorizing the Economic Development Administration. Could you please
update the Committee on the progress that has been made implementing
the Act including a timeline for Issuance of regulations?
Answer. EDA's regulations have been drafted and are in the final
stages of the clearance process.
Question 4. When do you expect the Administration will put forward
a nominee to head the Economic Development Administration?
Answer. The Administration is committed to the nomination of an
individual to serve as Assistant Secretary of Economic Development as
soon as possible. Such an announcement will be made by the White House.
Question 5. We have learned about a proposed buyout of staff at the
Economic Development Administration (EDA). Given the fact that the
Congress so far has shown no indication that it will approve the
consolidation of economic development agencies in the proposed
Strengthening America's Communities Initiative, do you think reducing
manpower is the wisest course? If manpower is reduced and
appropriations are not reduced, how will the EDA fulfill its mission as
required by Public Law 108-373?
Answer. A series of flat or decreasing budgets since FY 2002 for
salaries and expenses (S&E) combined with increasing costs for salaries
and inflation have required that EDA absorb approximately $1.2 million
annually from its S&E base, the equivalent of 10-11 FTE. Through FY
2004, savings realized from the Headquarters Restructuring combined
with other cost reduction measures have enabled EDA to operate within
the resources available.
EDA received another reduced budget in FY 2005. In order to
continue to effectively manage within the resources available this
fiscal year, EDA must reduce its workforce. In order to accomplish this
with the minimum adverse impact possible, EDA is proposing to offer
Voluntary Early Retirement Authority and Voluntary Separation Incentive
Payments (buyouts) for up to the amount of funds available.
While the Congress has not yet addressed an appropriation for the
Strengthening America's Communities Initiative, the House Commerce,
Justice and Science Appropriations Subcommittee FY 2006 mark for EDA
would appropriate $53 million less in program funding and $3.5 million
less in S&E funding than the FY 2005 levels. EDA must plan for this
significantly larger budget reduction of 12 percent, making the
accomplishment of buyouts in FY 2005 even more important for the Agency
to be able to continue to operate without adverse actions such as
furloughs or involuntary reductions.
______
Response to Written Questions Submitted by Hon. Frank R. Lautenberg to
David A. Sampson
Question 1. As you know, an independent Commission last year
released a comprehensive report on U.S. ocean policy. This report
included more than 200 recommendations on ways to improve U.S. ocean
policy. Have you reviewed this report? As you will have jurisdiction
over the National Oceanic and Atmospheric Administration, how do you
plan to incorporate some of these recommendations?
Answer. While I have not personally read the entire report of the
U.S. Commission on Ocean Policy, I have been briefed on the report and
I am familiar with its contents. In December 2004, the Administration
released its response to the Ocean Commission Report in the ``U.S.
Ocean Action Plan.'' This Action Plan identifies immediate, short-term,
and long-term actions that will provide the direction for the future of
U.S. ocean policy. Specifically, the Action Plan includes activities
that are designed to: improve Federal coordination; develop an ocean
research priorities plan and implementation strategy; build an ocean-
observing system; support market-based fisheries; and develop and
deploy new state-of-the-art research vessels. Along with the U.S. Ocean
Action Plan, the President signed an Executive Order that created a
Cabinet-Level Committee on Ocean Policy that will advise the President
on domestic policies concerning ocean-related matters. I am committed
to assist the Administration in the implementation of the U.S. Ocean
Action Plan and the recommendations of the Committee on Ocean Policy to
ensure the vitality of our ocean resources.
Question 2. Do you view our trade deficit as a problem?
Answer. The trade deficit is a matter of concern to the United
States, but not the only measure of the success of our economic
policies. Our strong GDP growth relative to the major regional
economies around the globe is a significant driver in our ability to
purchase goods and services from abroad. Slow economic growth in our
major trading partners has slowed the appetite for U.S. goods and
services. We must continue to promote expansionary growth policies in
those countries.
Additionally, We must continue to increase exports by improving the
competitiveness of American companies and leveling the playing field
for U.S. goods and services. We also need to increase domestic savings,
which the President is addressing through tax reforms.
Question 3. What steps is the Commerce Department taking to prepare
for the possible transfer of Community Development grants to the agency
from HUD?
Answer. The Department of Commerce has a team analyzing the
staffing, infrastructure and administrative requirements for the new
bureau. The Administration will develop projections for the Salaries
and Expense requirements of the Strengthening America's Communities
Initiative in conjunction with legislative authority granted by
Congress and recommendations from relevant federal agencies and various
stakeholders.
Question 4. What expertise exists at Commerce to administer the
CDBG program?
Answer. It should be noted that the President's Strengthening
America's Communities Initiative is not a consolidation of the CDBG
program into the Department of Commerce. The Initiative will transfer
funding for 18 community and economic development programs across the
Federal Government into one housed within the Department of Commerce.
We anticipate that the new program will incorporate the full range of
flexible uses available under all of the current grant programs. The
Strengthening America's Communities Initiative is not simply a
community development or a housing assistance program (a common use of
CDBG funding)--it is an extremely flexible community and economic
development program that can, at a community's discretion, provide
assistance associated with any number of different community needs or
local development priorities.
One of the key reasons the President selected the Department of
Commerce as the home for the new program is that of all the federal
departments engaged in community and economic development, the Commerce
Department has had the most success in leveraging the resources of the
private sector.
Furthermore, the Department of Commerce has a 40-year track record
of providing grants to both urban and rural areas in support of
community and economic development initiatives in all 50 states and
U.S. territories. The Department of Commerce manages a broad array of
grant programs in the Economic Development Administration, the Minority
Business Development Agency, the National Institute of Standards and
Technology and the National Oceanic and Atmospheric Administration.
Currently, Commerce manages an active $2.3 billion portfolio of
grants and loans specifically focused on community and economic
development, encompassing diverse types of projects such as public
works, economic adjustment, disaster recovery assistance, military base
realignment, strategic planning, and economic development research.
The Department also funds an extensive network of University
Centers, regional development councils, economic development districts,
and community development organizations, whose missions are to promote
community and economic and development initiatives. All this experience
will be incorporated into the Commerce Department's administration of
the President's initiative.
Question 5. I believe America's communities deserve the same
financial support and service from our government as the efforts to
rebuild in Afghanistan and Iraq. How do I respond to my constituents
who write me that we are cutting important domestic programs for
community and economic development, while spending more money abroad to
rebuild Iraq?
Answer. The President is proposing to focus scarce resources on
America's neediest communities. Currently there are 35 federal programs
in seven different agencies that address economic and community
development. In Fiscal Year (FY) 2005, Congress allocated $16.2 billion
to these programs. For FY 2006, the President is proposing to spend
$15.5 billion on these programs, a reduction of only 4 percent. This 4
percent reduction across community and economic development programs is
consistent with spending restraint in other non-defense, non-homeland
security areas. The FY 2006 Budget reflects the President's commitment
to providing the critical resources for our Nation's highest
priorities: fighting the war on terror, strengthening our homeland
defenses, and sustaining the momentum of our economic recovery.
Overall, the Budget focuses on priorities while targeting resources on
the most successful and results-oriented programs.