S128 CONGRESSIONAL RECORD — SENATE January 6, 2009 

(2) STATUTE OF LIMITATIONS.—An action 

may be commenced under this subsection 

not later than the earlier of— 

(A) 5 years after the date on which the alleged violation occurred; or 

(B) 3 years after the date on which the alleged violation was or should have been reasonably discovered by the aggrieved individual. 

(3) NONEXCLUSIVE REMEDY.—The remedy 

provided under this subsection shall be in addition to any other remedies available to the 

individual. 

(b) CIVIL PENALTIES.— 

(1) IN GENERAL.—Any person who the Attorney General determines has violated any 

section of this Act or of any amendments 

made by this Act shall be subject, in addition to any other penalties that may be prescribed by law— 

(A) to a civil penalty of not more than 

$5,000 for each such violation; and 

(B) to a civil penalty of not more than 

$50,000, if the violations have occurred with 

such frequency as to constitute a general 

business practice. 

(2) DETERMINATION OF VIOLATIONS.—Any 

willful violation committed contemporaneously with respect to the Social Security 

numbers of 2 or more individuals by means of 

mail, telecommunication, or otherwise, shall 

be treated as a separate violation with respect to each such individual. 

(3) ENFORCEMENT PROCEDURES.—The provisions of section 1128A of the Social Security 

Act (42 U.S.C. 1320a–7a), other than subsections (a), (b), (f), (h), (i), (j), (m), and (n) 

and the first sentence of subsection (c) of 

such section, and the provisions of subsections (d) and (e) of section 205 of such Act 

(42 U.S.C. 405) shall apply to a civil penalty 

action under this subsection in the same 

manner as such provisions apply to a penalty 

or proceeding under section 1128A(a) of such 

Act (42 U.S.C. 1320a–7a(a)), except that, for 

purposes of this paragraph, any reference in 

section 1128A of such Act (42 U.S.C. 1320a–7a) 

to the Secretary shall be deemed to be a reference to the Attorney General. 

SEC. 11. FEDERAL INJUNCTIVE AUTHORITY. 

In addition to any other enforcement authority conferred under this Act or the 

amendments made by this Act, the Federal 

Government shall have injunctive authority 

with respect to any violation by a public entity of any provision of this Act or of any 

amendments made by this Act. 

By Mr. KERRY: 

S. 142. A bill to amend titles XIX and 

XXI of the Social Security Act to ensure that every uninsured child in 

America has health insurance coverage, and for other purposes; to the 

Committee on Finance. 

MR. KERRY. Mr. President, today I 

am introducing the Kids Come First 

Act, legislation to ensure every child 

in America has access to health care 

coverage. The Kids Come First Act is 

the first bill I am introducing in the 

111th Congress because I believe that 

insuring all children must be at the top 

of the agenda this Congress. 

Long-term health care reform is 

vital, but we must also do all that we 

can now to make sure our children 

have access to health care. That is why 

I have incorporated the Small Business 

Children’s Health Education Act as 

part of Kids First this Congress. 

The 111th Congress faces many challenges, from the economic situation at 

home to the continuing conflicts in the 

Middle East. But perhaps no issue 

bears more directly on the lives of 

more Americans than health care reform. Today, nearly 46 million Americans are uninsured, including 11 million children. Health care has become a 

slow-motion disaster that is ruining 

lives and bankrupting families all over 

the country. We cannot stand by as the 

ranks of the uninsured rise and American families find themselves in peril. 

Children from low income households 

are three times as likely to be uninsured and more than 60 percent of uninsured children have at least one parent 

working full time. As we continue to 

face uncertain economic times we must 

do more for the children of this country who lack health coverage. Too 

many families are struggling with how 

to make ends meet. This is the time to 

take one worry off their plate and 

make health insurance available for all 

children. 

The Kids Come First Act calls for a 

Federal-State partnership to mandate 

health coverage to every child in 

America. The proposal makes states an 

offer they can’t refuse. The Federal 

Government will pay for the most expensive part: enrolling all low-income 

children in Medicaid, automatically. In 

return, the States will pay to expand 

coverage to higher income children. 

Under this legislation, States will save 

more than $6 billion a year, and every 

child will have access to healthcare. 

I think it is unacceptable that in the 

greatest country in the world, millions 

of children are denied access to the 

health care they need. The Kids Come 

First Act expands health care coverage 

for children up to the age of 21. 

Through expanding the programs that 

work, such as Medicaid and SCHIP, we 

can cover every uninsured child. 

Insuring children improves their 

health and helps families cover the spiraling costs of medical care. Covering 

all kids will help reduce avoidable hospitalizations by 22 percent and replace 

expensive critical care with inexpensive preventative care. Also, when children get the medical attention they 

need, they do better in school. 

To pay for the expansion of health insurance for children, the Kids Come 

First Act includes a provision that provides the Secretary of Treasury with 

the authority to raise the highest income tax rate of 35 percent to a rate 

not higher than 39.6 percent in order to 

offset the costs. Prior to the enactment 

of the Economic Growth and Tax Relief 

Reconciliation Act of 2001, the top marginal rate was 39.6 percent. Less than 

one percent of taxpayers pay the top 

rate and for 2009, this rate only affects 

individuals with income above $372,950. 

In addition to expanding access to 

health insurance, we need to improve 

enrollment of eligible children. In February 2007, the Urban Institute reported that among those eligible for 

the State Children’s Health Insurance 

Program, children whose families are 

self-employed or who work for small 

business concerns are far less likely to 

be enrolled. Specifically, one out of 

every four eligible children with parents working for a small business or 

are self-employed are not currently enrolled. This compares with just 1 out of 

every 10 eligible children whose parents 

work for a large firm. 

We need to do a better job of informing and educating America’s small 

business owners and employees of the 

options that may be available for covering uninsured children. To that effect, the Kids Come First Act includes 

a provision that creates an intergovernmental task force, consisting of the 

Administrator of the Small Business 

Administration, the Secretary of 

Health and Human Services, the Secretary of Labor and the Secretary of 

Treasury, to conduct a campaign to enroll kids of small business employees 

who are eligible for SCHIP and Medicaid but are not currently enrolled. To 

educate America’s small businesses on 

the availability of SCHIP and Medicaid, the task force will make use of 

the Small Business Administration’s 

business partners, including the Service Corps of Retired Executives, the 

Small Business Development Centers, 

Certified Development Companies, and 

Women’s Business Centers, and with 

chambers of commerce across the 

country. 

Additionally, the Small Business Administration is directed to post SCHIP 

and Medicaid eligibility criteria and 

enrollment information on its website, 

and to report back to the Senate and 

House Committees on Small Business 

regarding the status and successes of 

the task force’s efforts to enroll eligible kids. 

Health care for our children is a top 

priority that we must address. I believe 

it can be done in a fiscally responsible 

manner. We must invest our resources 

in our future by improving health care 

for children. 

Since I first introduced the Kids 

Come First Act in the 109th Congress, 

more than 500,000 people have shown 

their support for the bill by becoming 

Citizen Cosponsors and another 20,000 

Americans called into our ‘‘Give Voices 

to Our Values’’ hotline to share their 

personal stories. 

It is clear that providing health care 

coverage for our uninsured children is 

a priority for our nation’s workers, 

businesses, and health care community. They know, as I do, that further 

delay only results in graver health 

problems for America’s children. Their 

future, and ours, depends on us doing 

better. I urge my colleagues to support 

and help enact the Kids Come First Act 

during this Congress. 

By Mr. KERRY: 

S. 143. A bill to amend the Internal 

Revenue Code of 1986 to provide for a 

college opportunity tax credit; to the 

Committee on Finance. 

Mr. KERRY. Mr. President, today I 

am introducing the College Opportunity Tax Credit Act of 2009. This legislation creates a new tax credit that 


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January 6, 2009 CONGRESSIONAL RECORD — SENATE S129 

will put the cost of higher education in 

reach for American families. 

According to a recent College Board 

report tuition is rising at both public 

and private institutions. On average, 

the tuition at a private college this 

year is $25,143, up 5.9 percent from last 

year, and the tuition at a public college $6,585, up 6.4 percent from last 

year. 

Unfortunately, neither student aid 

funds nor family incomes are keeping 

pace with increasing tuition and fees. 

In my travels around Massachusetts, I 

frequently hear from parents concerned 

they will not be able to pay for their 

children’s college. These parents know 

that earning a college education will 

result in greater earnings for their 

children and they desperately want to 

ensure their kids have the greatest opportunities possible. 

In 1997, the Congress implemented 

two new tax credits to make college affordable—the HOPE and the Lifetime 

Learning credits. These tax credits 

have put college in reach for families, 

but I believe we can do more. 

The HOPE and Lifetime Learning 

credits are not refundable, and therefore a family of four must have an income over $30,000 in order to receive 

the maximum credit. Almost half of 

families with college students fail to 

receive the full credit because their income is too low. In order to receive the 

full benefit of the Lifetime Learning 

credit, a student has to spend $10,000 a 

year on tuition and fees. This is more 

than $3,000 the average annual public 4- 

year college tuition more than three 

times the average annual tuition of a 2- 

year community college. About 56 percent of college students attend schools 

with tuition and fees under $9,000. 

In 2004, I proposed a refundable tax 

credit to help pay for the cost of 4 

years of college. Currently the HOPE 

credit applies only to the first 2 years 

of college. The College Opportunity 

Tax Credit Act of 2009 helps students 

and parents afford all four years of college. It also builds on the proposal I 

made in 2004 by incorporating some of 

the suggestions made by experts at a 

Finance Committee hearing held during the 109th Congress. My legislation 

creates a new credit, the College Opportunity Tax Credit, COTC, that replaces the existing HOPE credit and 

Lifetime Learning credit and ultimately makes these benefits more generous. 

The COTC has two components. The 

first provides a refundable tax credit 

for a student enrolled in a degree program at least on a half-time basis. It 

would provide a 100 percent tax credit 

for the first $2,000 of eligible expenses 

and a 50 percent tax credit for the next 

$4,000 of expenses. The maximum credit 

would be $4,000 each year per student. 

The second provides a nonrefundable 

tax credit for part-time students, graduate students, and other students that 

do not qualify for the refundable tax 

credit. It provides a 40 percent credit 

for the first $1,000 of eligible expenses 

and a 20 percent credit for the next 

$3,000 of expenses. 

Both of these credits can be used for 

expenses associated with tuition and 

fees. The same income limits that 

apply to the HOPE credit and the Lifetime Learning credit apply to the 

COTC. These amounts are indexed for 

inflation, as are the eligible amounts 

of expenses. This legislation is only for 

taxable years beginning in 2009 and 2010 

in order to make colleges affordable 

during these difficult financial times. 

It will also give the Congress additional time to work on a permanent solution to help with the rising cost of a 

college education. 

The College Opportunity Tax Credit 

Act of 2009 simplifies the existing credits that make higher education more 

affordable and will enable more students to be eligible for tax relief. I understand that many of my colleagues 

are interested in making college more 

affordable. I look forward to working 

with my colleagues to make a refundable tax credit for college education a 

reality this Congress. 

By Mr. KERRY (for himself and 

Mr. ENSIGN): 

S. 144. A bill to amend the Internal 

Revenue Code of 1986 to remove cell 

phones from listed property under section 280F; to the Committee on Finance. 

Mr. KERRY. Mr. President, today 

Senator ENSIGN and I are reintroducing 

the MOBILE Cell Phone Act of 2009, 

Modernize Our Bookkeeping in the Law 

for Employee’s Cell Phone Act of 2009. 

Last Congress, 60 Senators cosponsored 

this legislation which would update the 

tax treatment of cell phones and mobile communication devices. 

During the past 20 years, the use of 

cell phone and mobile communication 

devices has skyrocketed. Cell phones 

are no longer viewed as an executive 

perk or a luxury item. They no longer 

resemble suitcases or are hardwired to 

the floor of an automobile. Cell phone 

and mobile communication devices are 

now part of daily business practices at 

all levels. 

In 1989, Congress passed a law which 

added cell phones to the definition of 

listed property under section 280F(d)(4) 

of the Internal Revenue Code of 1986. 

Treating cell phones as listed property 

requires substantial documentation in 

order for cell phones to benefit from 

accelerated depreciation and not be 

treated as taxable income to the employee. This documentation is required 

to substantiate that the cell phone is 

used for business purposes more than 50 

percent of the time. Generally, listed 

property is property that inherently 

lends itself to personal use, such as 

automobiles. 

Back in 1989, cell phone technology 

was an expensive technology worthy of 

detailed log sheets. At that time, it 

was difficult to envision cell phones 

that could be placed in a pocket or 

handbag. Congress was skeptical about 

the daily business use of cell phones. 

Technological advances have revolutionized the cell phone and mobile 

communication device industries. 

Twenty years ago, no one could have 

imagined the role BlackBerries play in 

our day-to-day communications. Cell 

phones and mobile communication devices are now widespread throughout 

all types of businesses. Employers provide their employees with these devices 

to enable them to remain connected 24 

hours a day, 7 days a week. The cost of 

the devices has been reduced and most 

providers offer unlimited airtime for 

one monthly rate. 

Recently, the Internal Revenue Service reminded field examiners of the 

substantiation rules for cell phones as 

listed property. The current rule requires employers to maintain expensive and detailed logs, and employers 

caught without cell phone logs could 

face tax penalties. 

The MOBILE Cell Phone Act of 2009 

updates the tax treatment of cell 

phones and mobile communication devices by repealing the requirement 

that employers maintain detailed logs. 

The tax code should keep pace with 

technological advances. There is no 

longer a reason that cell phones and 

mobile communication devices should 

be treated differently than office 

phones or computers. Last, Congress 60 

Senators cosponsored this legislation. I 

urge my colleagues to support this 

commonsense change. 

By Mr. KOHL (for himself, Mr. 

VITTER, Mr. LEAHY, Mr. FEINGOLD, Mr. SCHUMER, Ms. 

KLOBUCHAR, Mr. DORGAN, and 

Mr. ROCKEFELLER): 

S. 146. A bill to amend the Federal 

antitrust laws to provide expanded coverage and to eliminate exemptions 

from such laws that are contrary to the 

public interest with respect to railroads; to the Committee on the Judiciary. 

Mr. KOHL. Mr. President, I rise 

today to introduce legislation essential 

to restoring competition to the nation’s crucial freight railroad sector. 

Freight railroads are essential to shipping a myriad of vital goods, everything from coal used to generate electricity to grain used for basic foodstuffs. But for decades the freight railroads have been insulated from the 

normal rules of competition followed 

by almost all other parts of our economy by an outmoded and unwarranted 

antitrust exemption. So today I am introducing along with my colleagues, 

Senators VITTER, LEAHY, FEINGOLD, 

SCHUMER, ROCKEFELLER, DORGAN and 

KLOBUCHAR, the Railroad Antitrust Enforcement Act of 2009. This legislation 

will eliminate the obsolete antitrust 

exemptions that protect freight railroads from competition. This legislation is identical to the legislation that 

was reported out of the Judiciary Committee in the last Congress without 

dissent. 

Our legislation will eliminate obsolete antitrust exemptions that protect 


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