S10746 CONGRESSIONAL RECORD — SENATE November 20, 2008 

successful Federal program, exactly 

the kind of program that deserves expansion, especially because it supports 

rural economic development while 

helping to provide us with cleaner and 

more sustainable energy systems. Expanding this program to rural schools 

just makes sense—they foster rural 

economic development and should be 

able to take part in this transition to 

better energy systems and to realize 

the associated environmental and economic benefits. 

I urge my Senate colleagues to join 

me in passing this important legislation. 

By Mr. REID (for himself, Mr. 

MCCONNELL, Mr. LEAHY, Mr. 

HATCH, Mr. GRASSLEY, Mrs. 

FEINSTEIN, and Mr. BINGAMAN): 

S. 3711. A bill to authorize a cost of 

living adjustment for the Federal judiciary; considered and passed. 

Mr. REID. Mr. President, I ask unanimous consent that the text of the bill 

be printed in the RECORD. 

There being no objection, the text of 

the bill was ordered to be placed in the 

RECORD, as follows: 

S. 3711 

Be it enacted by the Senate and House of Representatives of the United States of America in 

Congress assembled, 

SECTION 1. COST OF LIVING ADJUSTMENT FOR 

THE FEDERAL JUDICIARY. 

Pursuant to section 140 of Public Law 97– 

92, justices and judges of the United States 

are authorized during fiscal year 2009 to receive a salary adjustment in accordance with 

section 461 of title 28, United States Code. 

By Mr. DURBIN (for himself and 

Mr. AKAKA): 

S. 3713: A bill to provide for the integration of the Captain James A. Lovell 

Federal Health Care Center and the 

Great Lakes Naval Health Clinic, and 

for other purposes; to the Committee 

on Armed Services. 

Mr. DURBIN. Mr. President, I ask 

unanimous consent that the text of the 

bill be printed in the RECORD. 

There being no objection, the text of 

the bill was ordered to be placed in the 

RECORD, as follows: 

S. 3713 

Be it enacted by the Senate and House of Representatives of the United States of America in 

Congress assembled, 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Captain 

James A. Lovell Federal Health Care Center 

Act of 2008’’. 

SEC. 2. TRANSFER OF PROPERTY. 

(a) TRANSFER.— 

(1) TRANSFER AUTHORIZED.—Upon the conclusion of a resource-sharing agreement between the Secretary of Defense and the Secretary of Veterans Affairs providing for the 

joint use by the Department of Defense and 

the Department of Veterans Affairs of a facility and supporting facilities in North Chicago, Illinois, and Great Lakes, Illinois, and 

for joint use of related medical personal 

property and equipment, the Secretary of 

Defense may transfer, without reimbursement, to the Department of Veterans Affairs 

the Navy ambulatory care center (on which 

construction commenced in July 2008), parking structure, and supporting facilities, and 

related medical personal property and equipment, located in Great Lakes, Illinois. 

(2) DESIGNATION OF JOINT USE FACILITY.— 

The facility and supporting facilities subject 

to joint use under the agreement and transfer under this subsection shall be designated 

as known as the ‘‘Captain James A. Lovell 

Federal Health Care Center’’. 

(b) REVERSION.— 

(1) IN GENERAL.—If any of the real and related personal property transferred pursuant 

to subsection (a) is subsequently used for 

purposes other than the purposes specified in 

the joint use specified in the resource-sharing agreement described in that subsection 

or otherwise determined by the Secretary of 

Veterans Affairs to be excess to the needs of 

the Department of Veterans Affairs, the Secretary of Veterans Affairs shall offer to 

transfer such property, without reimbursement, to the Secretary of Defense. Any such 

transfer shall be completed not later than 

one year after the acceptance of the offer of 

transfer. 

(2) REVERSION IN EVENT OF LACK OF FACILITIES INTEGRATION.— 

(A) WITHIN INITIAL PERIOD.—During the 5- 

year period beginning on the date of the 

transfer of the real and related personal 

property described in subsection (a), if the 

Secretary of Veterans Affairs and the Secretary of Defense jointly determine that the 

integration of the facilities described in that 

subsection should not continue, the real and 

related personal property of the Navy ambulatory care center, parking structure, and 

support facilities described in that subsection shall be transferred, without reimbursement, to the Secretary of Defense. Such 

transfer shall occur not later than 180 days 

after the date of such determination by the 

Secretaries. 

(B) AFTER INITIAL PERIOD.—After the end of 

the 5-year period described in subparagraph 

(A), if either the Secretary of Veterans Affairs or the Secretary of Defense determines 

that the integration of the facilities described in subsection (a) should not continue, 

the Secretary of Veterans Affairs shall 

transfer, without reimbursement, to the Secretary of Defense the real and related personal property described in paragraph (1). 

Such transfer shall occur not later than one 

year after the date of the determination by 

the Secretary concerned. 

SEC. 3. TRANSFER OF CIVILIAN PERSONNEL OF 

THE DEPARTMENT OF DEFENSE. 

(a) AUTHORIZATION FOR TRANSFER OF FUNCTIONS.— 

(1) IN GENERAL.—The Secretary of Defense 

may transfer to the Department of Veterans 

Affairs, and the Secretary of Veterans Affairs may accept from the Department of Defense, functions necessary for the effective 

operation of the Captain James A. Lovell 

Federal Health Care Center. 

(2) TREATMENT OF TRANSFERS.—Any transfer of functions under this subsection is a 

transfer of functions within the meaning of 

section 3503 of title 5, United States Code. 

(b) TERMS OF AGREEMENT.— 

(1) RESOURCE-SHARING AGREEMENT.—Any 

transfer of functions under subsection (a) 

shall be effectuated in a resource-sharing 

agreement between the Secretary of Defense 

and the Secretary of Veterans Affairs. 

(2) ELEMENTS.—Notwithstanding any other 

provision of law, including but not limited to 

any provisions of title 5, United States Code, 

relating to transfers of function or reductions-in-force, the agreement described in 

paragraph (1) shall be controlling and may 

make provision for— 

(A) the transfer of civilian employee positions of the Department of Defense identified 

in the agreement to the Department of Veterans Affairs and of the incumbent civilian 

employees in such positions; 

(B) the transition of transferred employees 

to pay, benefits, and personnel systems of 

the Department of Veterans Affairs in a 

manner which will not result in any reduction of pay, grade, or employment progression of any employee or any change in employment status for employees who have already successfully completed or are in the 

process of completing a one-year probationary period under title 5, United States 

Code; 

(C) the establishment of integrated seniority lists and other personnel management 

provisions that recognize an employee’s experience and training so as to provide comparable recognition of employees previously 

with the Department of Veterans Affairs and 

employees newly transferred to such Department; and 

(D) such other matters relating to civilian 

personnel management as the Secretary of 

Defense and the Secretary of Veterans Affairs consider appropriate. 

(c) PRESERVATION OF AUTHORITY.—Notwithstanding subsections (a) and (b), nothing in 

this section shall be construed as limiting 

the authority of the Secretary of Defense to 

establish civilian employee positions in the 

Department of Defense and utilize all civilian personnel authorities otherwise available 

to the Secretary if the Secretary determines 

that such actions are necessary and appropriate to meet mission requirements of the 

Department of Defense. 

SEC. 4. EXTENSION AND EXPANSION OF JOINT INCENTIVE FUND. 

(a) TEN-YEAR EXTENSION OF AUTHORITY FOR

JOINT INCENTIVES PROGRAM.—Paragraph (3) 

of section 8111(d) of title 38, United States 

Code, is amended by striking ‘‘2010’’ and inserting ‘‘2020’’. 

(b) FUNDING OF MAINTENANCE AND MINOR

CONSTRUCTION FROM THE JOINT INCENTIVE

FUND.—Paragraph (2) of such section is 

amended by adding at the end the following 

new sentence: ‘‘Such purposes shall include 

real property maintenance and minor construction projects that are not required to be 

specifically authorized by law under section 

8104 of this title and section 2805 of title 10.’’. 

SEC. 5. HEALTH CARE ELIGIBILITY FOR SERVICES AT THE CAPTAIN JAMES A. 

LOVELL FEDERAL HEALTH CARE 

CENTER. 

(a) IN GENERAL.—For purposes of eligibility for health care under chapter 55 of 

title 10, United States Code, the Captain 

James A. Lovell Federal Health Care Center 

authorized by this Act may be deemed to be 

a facility of the uniformed services to the extent provided in an agreement between the 

Secretary of Defense and the Secretary of 

Veterans Affairs under subsection (b). 

(b) ELEMENTS OF AGREEMENT.—Subsection 

(a) may be implemented through an agreement between the Secretary of Veterans Affairs and the Secretary of Defense. The 

agreement may— 

(1) establish an integrated priority list for 

access to available care at the facility described in subsection (a), integrating the respective priority lists of the Secretaries, 

taking into account categories of beneficiaries, enrollment program status, and 

such other factors as the Secretaries determine appropriate; 

(2) incorporate any resource-related limitations for access to care at that facility established by the Secretary of Defense for 

purposes of administering space-available 

eligibility for care in facilities of the uniformed services under chapter 55 of title 10, 

United States Code; 

(3) allocate financial responsibility for care 

provided at that facility for individuals who 

are eligible for care under both title 38, 

United States Code, and chapter 55 of title 

10, United States Code; and 


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November 20, 2008 CONGRESSIONAL RECORD — SENATE S10747 

(4) waive the applicability to that facility 

of any provision of section 8111(e) of title 38, 

United States Code, as specified by the Secretaries. 

By Mr. HARKIN: 

S. 3714. A bill to amend the Commodity Exchange Act to ensure that 

all agreements, contracts, and transactions with respect to commodities 

are carried out on a regulated exchange, and for other purposes; to the 

Committee on Agriculture, Nutrition, 

and Forestry. 

Mr. HARKIN. Mr. President, today, I 

am introducing legislation—the Derivatives Trading Integrity Act—which 

calls for establishing stronger standards of openness, transparency and integrity in the trading of financial 

swaps and other over-the-counter derivatives as a critical step toward rebuilding and restoring confidence in 

the financial system. With the total 

face value of swaps reaching a high of 

some $531 trillion at the middle of this 

year—8-and-a-half times the world 

GDP of $62 trillion—it is long past time 

for accountability in these markets. 

Over the years, the Commodity Futures Trading Commission and Congress have responded to concerns of the 

the swaps industry by allowing instruments that are in form and function futures contracts to be privately negotiated without the safeguards provided 

through exchange trading. 

The economic downturn in this country is forcing us to examine all contributing factors to the crisis in our financial markets. By restoring reasonable 

safeguards and regulation of swaps, including credit default swaps, along 

with all other futures contracts, this 

legislation will go a long way to restore confidence in the markets and reestablish soundness and integrity in 

the financial system. My bill will end 

the unregulated ‘‘casino capitalism’’ 

that has engendered great risks in 

swaps trading. And it will bring these 

transactions out into the sunlight 

where they can be monitored and appropriately and responsibly regulated. 

This legislation will establish authority and safeguards to ensure that parties can meet their obligations to manage and reduce danger and risk to the 

entire financial system and economy. 

Virtually all contracts now commonly referred to as swaps fall under 

the definition of futures contracts and 

function basically in the same manner 

as futures contracts. This bill amends 

the Commodity Exchange Act to eliminate the distinction in futures contracts among ‘‘excluded’’ and ‘‘exempt’’ commodities and regulated, exchange-traded commodities; futures 

contracts for all commodities would be 

treated the same. 

In addition, the bill eliminates the 

statutory exclusion of swap transactions from regulation, and it ends 

the Commodity Futures Trading Commission’s authority to exempt such 

transactions from the general requirement that a contract for the purchase 

or sale of a commodity for future delivery can only trade on a regulated board 

of trade. In effect, this means that all 

futures contracts must trade on a designated contract market or a derivatives transaction execution facility. 

Last month, the Senate Committee 

on Agriculture, Nutrition and Forestry 

heard dramatic testimony about the 

impact of unregulated financial derivatives on the U.S. economy. We have 

seen large negative consequences from 

the lack of price transparency and the 

failure to properly measure and 

collateralize the risk in trading overthe-counter derivatives. The problems 

have not been in the trading of financial futures on regulated futures markets, subject to the oversight of the 

Commodity Futures Trading Commission. 

This legislation I am introducing will 

establish the standards that all futures 

contracts trade on regulated exchange. 

The regulated exchanges will work 

with the Commodity Futures Trading 

Commission to ensure that trading on 

the exchange is fair and equitable and 

not subject to abuses. The Commodity 

Futures Trading Commission has the 

experience and expertise to oversee 

these matters. 

Bringing necessary openness, transparency, soundness, and integrity to 

trading in contracts which are now unregulated over-the-counter swaps and 

related derivatives is a key element in 

restoring trust and confidence in the financial system so that we can rebuild 

our economy on a solid foundation. 

Mr. President, I ask unanimous consent that the text of the bill be printed 

in the RECORD. 

There being no objection, the text of 

the bill was ordered to be printed in 

the RECORD, as follows: 

S. 3714 

Be it enacted by the Senate and House of Representatives of the United States of America in 

Congress assembled, 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Derivatives 

Trading Integrity Act of 2008’’. 

SEC. 2. REGULATION OF CERTAIN AGREEMENTS, 

CONTRACTS, AND TRANSACTIONS. 

(a) DEFINITIONS.—Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended— 

(1) by striking paragraphs (10), (11), (13), 

(14), and (33); and 

(2) by redesignating— 

(A) paragraph (12) as paragraph (10); 

(B) paragraphs (15) through (32) as paragraphs (11) through (28), respectively; and 

(C) paragraph (34) as paragraph (29). 

(b) EXCLUSIONS.—Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is amended— 

(1) by striking subsections (d), (e), (g), (h), 

and (i); and 

(2) by redesignating subsection (f) as subsection (d). 

(c) RESTRICTION OF FUTURES TRADING TO

CONTRACT MARKETS OR DERIVATIVES TRANSACTION EXECUTION FACILITIES.—Section 4 of 

the Commodity Exchange Act (7 U.S.C. 6) is 

amended— 

(1) in subsection (a), in the matter preceding paragraph (1), by striking ‘‘Unless exempted by the Commission pursuant to subsection (c), it shall’’ and inserting ‘‘It shall’’; 

(2) by striking subsection (c); and 

(3) by redesignating subsection (d) as subsection (c). 

(d) EXEMPT BOARDS OF TRADE.—Section 5d 

of the Commodity Exchange Act (7 U.S.C. 7a– 

3) is repealed. 

SEC. 3. CONFORMING AMENDMENTS. 

(a) Section 1a of the Commodity Exchange 

Act (7 U.S.C. 1a) (as amended by section 

2(a)(2)) is amended— 

(1) in paragraph (10)(A)(x), by striking 

‘‘(other than an electronic trading facility 

with respect to a significant price discovery 

contract)’’; 

(2) in paragraph (25)— 

(A) in subparagraph (C), by inserting ‘‘and’’ 

after the semicolon at the end; 

(B) in subparagraph (D), by striking ‘‘; 

and’’ and inserting a period; and 

(C) by striking subparagraph (E); and 

(3) in paragraph (27), by striking ‘‘section 

2(c), 2(d), 2(f), or 2(g) of this Act’’ and inserting ‘‘subsection (c) or (d) of section 2’’. 

(b) Section 2(c) of the Commodity Exchange Act (7 U.S.C. 2(c)) is amended— 

(1) in paragraph (1)— 

(A) in the matter preceding subparagraph 

(A), by striking ‘‘5d,’’; and 

(B) in subparagraph (F), by striking ‘‘in an 

excluded commodity’’; and 

(2) in paragraph (2)(B)(i)(II)— 

(A) in item (cc), by striking ‘‘section 1a(20) 

of this Act’’ each place it appears and inserting ‘‘section 1a(16)’’; and 

(B) in item (dd), by striking ‘‘section 

1a(12)(A)(ii) of this Act’’ and inserting ‘‘section 1a(10)(A)(ii)’’. 

(c) Section 4a of the Commodity Exchange 

Act (7 U.S.C. 6a) is amended— 

(1) in subsection (a)— 

(A) in the first sentence, by striking ‘‘or on 

electronic trading facilities with respect to a 

significant price discovery contract’’; and 

(B) in the second sentence, by striking ‘‘or 

on an electronic trading facility with respect 

to a significant price discovery contract,’’; 

(2) in subsection (b)— 

(A) in paragraph (1), by striking ‘‘or electronic trading facility with respect to a significant price discovery contract’’; and 

(B) in paragraph (2), in the matter preceding the proviso, by striking ‘‘or electronic 

trading facility with respect to a significant 

price discovery contract’’; and 

(3) in subsection (e)— 

(A) in the first sentence— 

(i) in the matter preceding the proviso— 

(I) by striking ‘‘or by any electronic trading facility’’; 

(II) by striking ‘‘or on an electronic trading facility’’; and 

(III) by striking ‘‘or electronic trading facility’’; and 

(ii) in the proviso, by striking ‘‘or electronic trading facility’’; and 

(B) in the second sentence, in the matter 

preceding the proviso, by striking ‘‘or electronic trading facility with respect to a significant price discovery contract’’. 

(d) Section 4g(a) of the Commodity Exchange Act (7 U.S.C. 6g(a)) is amended by 

striking ‘‘and in any significant price discovery contract traded or executed on an 

electronic trading facility or’’. 

(e) Section 4i of the Commodity Exchange 

Act (7 U.S.C. 6i) is amended— 

(1) in the matter preceding paragraph (1), 

by striking ‘‘or any significant price discovery contract traded or executed on an 

electronic trading facility’’; and 

(2) in the matter following paragraph (2), 

by striking ‘‘or electronic trading facility’’. 

(f) Section 5a of the Commodity Exchange 

Act (7 U.S.C. 7a) is amended— 

(1) in subsection (b)(2)— 

(A) in subparagraph (D)(ii), by inserting 

‘‘or’’ after the semicolon at the end; 

(B) in subparagraph (E), by striking ‘‘; or’’ 

and inserting a period; and 


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