E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 104 CONGRESS, SECOND SESSION

Vol. 142 WASHINGTON, FRIDAY, SEPTEMBER 20, 1996 No. 131 House of Representatives

The House met at 9 a.m. and was THE JOURNAL Whereas a failure of the Committee to re- called to order by the Speaker pro tem- The SPEAKER pro tempore. The lease the outside counsel’s report before the pore [Mr. MILLER of Florida]. adjournment of the 104th Congress will seri- Chair has examined the Journal of the ously undermine the credibility of the Ethics last day’s proceedings and announces f Committee and the integrity of the House of to the House his approval thereof. Representatives: Therefore, be it Pursuant to clause 1, rule I, the Jour- Resolved, That the Committee on Stand- DESIGNATION OF THE SPEAKER nal stands approved. ards of Official Conduct shall release to the PRO TEMPORE f public the outside counsel’s report on Speak- er Newt Gingrich—including any conclu- The SPEAKER pro tempore laid be- PLEDGE OF ALLEGIANCE sions, recommendations, attachments, ex- fore the House the following commu- The SPEAKER pro tempore. Will the hibits or accompanying material—no later nication from the Speaker: than Wednesday, September 25, 1996. gentleman from Mississippi [Mr. MONT- WASHINGTON, DC, GOMERY] come forward and lead the The SPEAKER pro tempore. Under September 20, 1996. House in the Pledge of Allegiance. rule IX, a resolution offered from the I hereby designate the Honorable DAN MIL- Mr. MONTGOMERY led the Pledge of floor by a Member other than the ma- LER to act as Speaker pro tempore on this jority leader or the minority leader as day. Allegiance as follows: NEWT GINGRICH, I pledge allegiance to the Flag of the a question of privileges of the House Speaker of the House of Representatives. United States of America, and to the Repub- has immediate precedence only at a lic for which it stands, one nation under God, time or place designated by the Chair f indivisible, with liberty and justice for all. in the legislative schedule within 2 leg- f islative days. The Chair will announce PRAYER ANNOUNCEMENT OF INTENTION TO that designation at a later date. OFFER RESOLUTION RAISING A determination as to whether the The Reverend Dr. Ronald F. Chris- resolution constitutes a question of tian, office of the bishop, Evangelical QUESTION OF PRIVILEGES OF THE HOUSE privilege will be made at a later time. Lutheran Church in America, Washing- f ton, DC, offered the following prayer: Mr. LEWIS of Georgia. Mr. Speaker, Almighty God, with Your mercy new pursuant to clause 2 of rule IX, I here- DRUG USE SKYROCKETING UNDER to us every day irrespective of our na- by give notice of my intention to offer PRESIDENT CLINTON ture, and with Your grace provided to a resolution which raises a question of (Mr. BURR asked and was given per- each one alike without regard to need, the privileges of the House. mission to address the House for 1 we pray, give to each one of us, O God, The form of the resolution is as fol- minute and to revise and extend his re- Your gift of peace, so that our lives lows: marks.) will be an example of Your righteous- Whereas on December 6, 1995, the Commit- Mr. BURR. Mr. Speaker, America is ness. tee on Standards of Official Conduct agreed to appoint an outside counsel to conduct an losing the war against drugs. As a fa- Give to our Nation, O God, the ear- independent, nonpartisan investigation of al- ther of two young children, I under- nest search for justice, so that our con- legations of ethical misconduct by Speaker stand the fear felt by every parent as versations and actions will show a de- Newt Gingrich; they send their kids off to school each sire for what is right. Whereas, after an eight-month investiga- morning. Give to those ordained with respon- tion, that outside counsel has submitted an Over the past several years, this ad- sibility for leadership a sense of awe extensive document containing the results of ministration—through its irresponsible his inquiry; and a spirit of humility that will offer Whereas the report of the outside counsel actions and indifferent words—has cre- thoughtful and useful commentary on cost the taxpayers $500,000; ated a world where drug use is not only behalf of those without voice. Whereas the public has a right—and Mem- blatantly ignored but is often the And give to us all a measure of Your bers of Congress have a responsibility—to ex- source of careless chuckles and love, so that compassion can be our amine the work of the outside counsel and thoughtless jokes. This is not the envi- benchmark for honor, kindness the wa- reach an independent judgment concerning ronment I want my children to grow up terline for friendship, patience the the merits of the charges against the Speak- er; in—drug use is not funny. starting pole of brother and sisterhood, Whereas these charges have been before But worse than the rhetoric is the and hope the finish line for our lives. the Ethics Committee for more than two record. Actions speak louder than Amen. years; words, Mr. Speaker. President Clinton

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

H10723 H10724 CONGRESSIONAL RECORD — HOUSE September 20, 1996 has eliminated drug agent after drug 12, 1995, the gentlewoman from Califor- you understand why they also brought agent. The number of people pros- nia [Ms. WATERS] is recognized for 60 the guns in with them. ecuted for Federal drug charges has minutes as the designee of the minor- We wondered in south central Los dropped and programs have been cut. I ity leader. Angeles, where are these guns coming ask you, how many times have you Ms. WATERS. Mr. Speaker, I come from? They were not simply handguns, heard the President of the United today to continue my discussion on the they are Uzis and AK–47’s, sophisti- States tell your children to ‘‘Just say matter of the San Jose Mercury News cated weapons brought in by the same ‘no’?’’ article that revealed the dumping of CIA operatives because they had to en- President Clinton’s abandonment of cocaine into south-central Los Angeles force bringing the profits back in. strict, effective drug policy has led our by CIA operatives, cocaine that was About this time when you saw more young people down a disturbing road of spread among the Cripps and Bloods and more guns coming into the com- skyrocketing drug use. Jokes on MTV gang members and eventually in cities munity, you also saw more and more are not acceptable and reckless dis- throughout this Nation. killings, more and more violence. Now regard from the bully pulpit is inexcus- I am spending a lot of time on this we know what was going on. The drugs able. issue because I believe it is important out in our communities on consign- ment were being put out to the gangs f for the citizens of this country to know and understand how this country finds and others; if they did not bring the THE ADMONISHMENT COMMITTEE itself with crack addiction, crime, profits back, the guns were brought in (Mrs. SCHROEDER asked and was crack-born babies, hospitals overloaded so that they could enforce the control. given permission to address the House with overdoses of crack cocaine, turf You got killed. People were sent out to kill others. The killings just mount- for 1 minute and to revise and extend wars, all of this devastation. Where did ed in south central Los Angeles, and her remarks.) it come from? Who caused it? This arti- people said what are they fighting Mrs. SCHROEDER. Mr. Speaker, I cle, or these series of articles that were about? What are these drive-by am amazed. I think it is time we start done by the San Jose Mercury News shootings about? What is this gang calling the Committee on Standards of must be focused on. Mr. Gary Webb, warfare about? And people said oh, it is Official Conduct the admonishment the author of the series, is a Pulitzer about the colors; some like red, some committee. Yesterday they issued ad- Prize winning journalist. like blue, well, you know it was about monishment No. 6 for our Speaker, and This is not a fly-by-night journalist. drugs. It was about crack cocaine in- they went on to say in there, which I This is not someone who just thought troduced into our communities by peo- this up and decided they would write find really quite amazing, the commit- ple who brought it in with a purpose. tee concludes that the Speaker’s con- something. He spent over a year inves- Why did they do this? According to duct of allowing the routine presence tigating the leads that came to him. Mr. Blandon, he is on record under in his office of Mr. Jones demonstrates And what did he uncover? It is abso- oath testifying at a trial that, yes, he a continuing pattern of lax administra- lutely startling. Mr. Gary Webb discov- was a CIA operative but he was also en- tion and poor judgment that has con- ered that in the late 1970’s, 1979, early gaged in funding the war in Nicaragua. cerned this committee in the past with 1980’s, two CIA operatives, Mr. Danilo He was one of those that helped form the other five admonishments. Blandon and one other gentlemen the army of the Contras, the FDN. He They go on to say: Accordingly, the found their way into south-central Los came from Nicaragua. He was the son committee directs you to take imme- Angeles. They connected up with a gen- of a very rich Nicaraguan. They were diate steps not only to prevent the re- tleman, a young man named Ricky involved with Somoza and part of the currence of similar incidents and en- ‘‘Freeway’’ Ross. They began to supply Somoza government. When they were sure compliance with standards but to him with tons of cocaine. That cocaine overthrown by the Sandinistas, they guard against the appearance of impro- was cooked into crack. Those are the went out and formed their own army priety. rocks that plague our communities working with our Government. Now, I think everyone in America today. They formed their own army and ought to ask for the same standards. Prior to the introduction of cocaine then they had to supply them. They When you get stopped for a speeding by Mr. Blandon and Mr. Meneses, co- had to get the guns to them; they had ticket, until you get six admonish- caine was not a factor in minority to feed the soldiers; they had to clothe ments I guess they are never really neighborhoods, in the inner cities. Co- the soldiers. They had to put together going to do anything. I would say the caine was the drug of the elite, of the an Army. And, yes, they had a lot of way Members of Congress get treated is more well-to-do, of kind of the rich and support from the right wing, from con- how an average citizen should be treat- the famous. It was expensive. It could servatives right here in the Congress of ed. I find it absolutely amazing that not be afforded by poor people, and it the United States who set out to get the rules can be thrown over with such was really not a factor in poor commu- the citizens of this Nation to use their great abandonment. nities. It was only when the CIA hard-earned dollars to help fund that f operatives, working with Ricky Ross, war. discovered that you could cook it and That effort was resisted by many in SPECIAL ORDERS you could put it into crack form, that this House, but they persisted. But The SPEAKER pro tempore. Under it could be sold cheaply because you long before they got any dollars, there the Speaker’s announced policy of May could spread it around. You could get was money flowing to the FDN and to 12, 1995, and under a previous order of more out of it. the so-called resistance armies. the House, the following Members will And so they began to cook up the Where did that money come from? be recognized for 5 minutes each. crack. They put it out into the commu- We know now that that money was f nities on consignment. What does that coming from the sale of drugs to the mean? Prior to this time, you had to citizens of America, the profits of The SPEAKER pro tempore. Under a have money to get into the drug busi- which went back down to fund the previous order of the House, the gen- ness. If you wanted to be a drug dealer, FDN, working with Nicaraguans con- tleman from California [Mr. FILNER] is you had to go and buy cocaine. You nected with Somoza, Nicaraguans that recognized for 5 minutes. bought it by the kilos oftentimes. But were embraced by the right wing of [Mr. FILNER addressed the House. when these CIA operatives started to America. His remarks will appear hereafter in work with Ricky Ross, they eliminated America’s children, American citi- the Extensions of Remarks.] the need to have money to invest to be- zens exposed, crack cocaine fed into f come a drug dealer. They put it out on the neighborhoods in order to get consignment. money to fund the FDN and the other COCAINE IN SOUTH-CENTRAL LOS armies resisting, fighting against the b ANGELES 0915 Sandinistas. The SPEAKER pro tempore. Under When you understand this consign- It is an outrageous plot. It is an un- the Speaker’s announced policy of May ment spread of cocaine and crack, then conscionable plot. How would anybody September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10725 ever dream up this kind of madness? was selling all of these drugs. He is in At this time, before continuing, how- Mr. Maneses, directly connected to the prison now because he was set up by ever, I would like to yield to the gen- Cali drug cartel, got into this country the man who was selling him the drugs. tleman from New York, another one and was given citizenship, even though Ricky Ross was contacted by Mr. that is engaged in this battle, Con- people in our Government knew he was Blandon years later, just a couple of gressman MAJOR OWENS. a murderer. years ago, asking him to get back into Mr. OWENS. Mr. Speaker, I want to Since when do we let murderers and the trade. Ricky Ross said to me that thank the gentlewoman from Califor- criminals into this Nation? I guess we he told him, ‘‘I do not want to get back nia for taking up this special order. let them in when they are going to do in the trade.’’ He was called any num- It is very not that we understand the bidding of those who have decided ber of times by Mr. Blandon, who told that this is a window of opportunity; they can get support by allowing crimi- him how easy it would be. Ricky Ross the San Diego Mercury has given us nals and crooks to come in to sell told me, he said to him, ‘‘I am trying that opportunity by bringing together drugs to fund the Army that they want to go straight. I am trying to build a some very important facts by exploring to fund. studio. I am trying to have a cultural some court records and doing some Everybody needs to read the San program. I am trying to find dollars to interviews, and they have the embryo Jose Mercury news series under the bring the young people in and work here of a truth that is very important banner of ‘‘The Dark Alliance.’’ This is with them and get some programs and for our community. not simply a story about allegations; activities going for the many young I was asked a question by several re- these are facts, names, places, dates. man who are very vulnerable, young porters yesterday, Why is this matter I decided once I had read it that I was men who could be approached by drug so important now? What difference going to find out more. I have devel- dealers who would take a chance.’’ does it make? The crack cocaine epi- oped a communication with Gary Webb Mr. Blandon continued until Ricky demic is out there. What difference is who wrote the story. I am in touch Ross and two of his friends decided it going to make it these people are with him almost daily, asking ques- they were going to take another punished or not? tions. chance, and they went down to San This is not about punishing a handful Following the Democratic Conven- Diego to pick up a truck loaded with of people; this is about seizing this win- tion, after I read the information, I 100 kilos of drugs supplied to them dow of opportunity to fully expose one flew back to Los Angeles and I went to again by Mr. Blandon. When they got of the ways in which the African-Amer- San Diego and I visited Ricky ‘‘Free- to the appointed spot, Mr. Blandon ican community has been victimized, way’’ Ross, one of the young men who handed him the keys, they opened the one of the ways in which the inner-city is a principal in this story, an African- truck, stepped in, and the DEA agents community has been victimized. We American young male who sold drugs, and others swooped down upon them, have been victimized in so many dif- ferent ways, starting with 232 years of who got his drugs from Blandon and arresting him. He has been convicted slavery for which nobody was com- Maneses, a young man who had a 10- and he is awaiting his sentence. pensated, that free labor, 232 years year relationship with Blandon, a Ricky Ross should have known bet- ter. You do not get to go off without where we could not acquire property, young man who had been to Blandon’s punishment when you perform these 232 years where family structures were homes both in Rialto, CA, and in Flor- kinds of criminal acts. He should not not permitted. You could not pass ida, a young man who knew Blandon’s have been involved in the trafficking of down traditions. That is just one of the wife, who had done business with both drugs. And he is going to have to do ways we were victimized. of them. The young man who had a time, and so be it. Now the colored victimization takes long-term relationship because he was But what about Blandon? He has been place in various forms. We have the the recipient of the many kilos and the selling, he is in the records if you victimization through neglect. They do tons of cocaine that had been brought check them. They have known about not have any policies or programs into south central Los Angeles. him since 1974. He is now on the payroll which allow our cities to get their fair I went to San Diego. I went to the of the DEA. He is an informant now for share of the tax dollar. We do not have San Diego metropolitan detention fa- the DEA. any programs which can help cities, al- cility, a Federal facility where Mr. Oh, they paid him $166,000 in the past though cities are where most of the Rick ‘‘Freeway’’ Ross is now incarcer- year. Mr. Blandon, the drug dealer who people in America live. We have an ated. I spent time with him and I asked introduced cocaine in large amounts anticity attitude in part of the Con- him about the article. I asked him into the black community into south gress, especially the other body, and about details in the article. He con- central Los Angeles, that spread across then we are victimized by blunders by firmed that and more. this Nation, now in many cities wheth- Government programs and Government He described to me the first time he er we are talking about Harlem or the agencies. They make mistakes that had ever seen an Uzi and how it was Bronx, St. Louis, Philadelphia, in mess up programs, and then the people given to him and his friends. And then southern cities, Mr. Blandon connected who are the beneficiaries of those pro- he described how they continued to to Mr. Maneses and the Cali Cartel who grams, they are the ones who suffer as bring in the arms, and they had an ex- flew drugs from Colombia, airplanes a result of badly run programs. tensive arsenal. It went so far until Mr. that land in Texas, in Arkansas, right b 0930 Blandon and his friends even tried to in our own country, is free. He is under give them a grenade launcher. Ricky the protection of the DEA. He is one of Here is victimization again, probably Ross said, ‘‘My God, what do we need their people. He is hired by them. He is by conspiracy, conspiracy. There was with a grenade launcher?’’ an informant. an agenda that they had, an agenda They had everything they needed. And so I guess Mr. Blandon goes free which they felt was more important They had scramblers so that when they because he can go and encourage, so- than the welfare of the people in the talked on the telephone they could not licit, and get another young black male inner cities, more important than the be eavesdropped on. They had money involved in selling drugs, point the welfare of people in the African Amer- counters. They counted money 24 hours DEA to them, get a bust as if he has ican communities. So masses of people a day. At one point in this 10-year pe- done something, while he remains free in the inner cities and African Amer- riod, they made $54 million in 1 year. to do what he wants to do. ican communities have been put at They were making $2 million a day of- It is outrageous. We have got to do jeopardy because they felt it was nec- tentimes, $1 to $2 million a day just something about it. The Congressional essary to make an emergency deal in with Blandon and this gentleman who Black Caucus has decided to appoint order to get funds to finance a war in was selling drugs. me chair of a special task force, and we Nicaragua, the Contras against the And the story goes on and on and on are going to move to get investiga- Sandinista government. naming individuals, identifying situa- tions. We have got some updating that Let us just take a look at the se- tions. we are going to do, and we are going to quence when the Contras first launched Ricky Ross is in prison not because come to this floor on a regular basis their war against the Nicaraguan Gov- he was apprehended during the time he and we are going to give those updates. ernment which was in control of the H10726 CONGRESSIONAL RECORD — HOUSE September 20, 1996 Sandinistas. At that time there was no ecutor, they have been clearly estab- they have got to have it, and then on American aid. There was no aid from lished by the joint investigation and and on it goes to the point where they this country officially, no American the joint hearings of the Senate and become murderers, prostitutes, they aid passed by the Congress. the House. They are clearly estab- war against each other, they kill each When they first launched the war, we lished. Nobody refutes the fact that other, shoot down innocent people. certainly supplied money through the Oliver North was the mastermind of a Murder on a mass scale in our big various back door mechanisms that are scheme, hatched in the basement of the cities, and policymakers look at the available, through the CIA, their pock- White House and then carried out, cities and say there is something ge- ets deep but not deep enough to keep which was to supply money to fund the netically wrong with the African- financing a war in Nicaragua intermi- Contras. American people. You have the bell nably without some kind of new device. How did they do it then? They went curve theory being promulgated, that We certainly probably supplied money to sell weapons to Iran. While public they have low IQ’s. There is nothing to the Contras through El Salvador, policies were protesting that Iran was you can do about it. where we were funding the El Salvador an evil empire, Iran was a terrorist na- All these theories are there because Government, and the records show that tion and we would do no business with the truth is not known. So what Con- the connection between the El Sal- Iran, the deal was being hatched in the gresswoman WATERS is doing is impor- vador drug trade and the key people in basement of the White House to sell tant, to just get the truth out there, El Salvador with the Nicaraguan drug weapons to Iran. the fact that the inner-city collapse of trade and the people involved in this And they did it. They sold weapons to the social order, collapse of families is story is a very close knit record. There Iran, and they used the profits from partially due to the blunders of the is a connection there that comes up the weapons sold to Iran to fund the Government, partially due to the ne- again and again. Contras. That is in phase 3. That is so glect of the Government and partially So we were doing that through these well established in fact. due to the conspiracy, a conspiracy in back door methods, but that was not Nobody was punished for it. Oliver which the Government has partici- enough. They needed more money. This North came into the hearings and pated. Dealing drugs is probably the is then the first period of the Contra acted as if he was America’s chief Boy lowest form of conspiracy that we have war against the Sandinistas. They Scout. He stood up to them and flab- seen yet that our Government has par- needed more money. So here was an op- bergasted a set of people that should ticipated in. portunity to sell drugs in the cities of not have been flabbergasted by his tac- I would like to come back later and America and take those profits and tics, but he stood up to them and said talk about reparations and why it is fund the Contras. And the CIA and he did it and he did it for America, but important to talk about this, so we can American Government agents were it was done. Nobody denied the fact talk about getting to the bottom of needed to allow the Contras to get this that we went so far as to develop a deal this with an investigation that the CIA avenue of funding from the cities of with the evil Iranian Government in director, Mr. DEUTSCH, has said he has America. order to generate profits for the already launched. But there will be We were all surprised at the swiftness Contras, to fund the war in Nicaragua. other investigations, getting to the with which crack cocaine came into If we did it on the tail end, there is bottom of it, so that we can establish the inner-city communities. Yes, there no reason to believe we did not have that a great deal of harm has been done had been a drug problem for years, we the same kind of fanaticism and the here, a great wrong has been done and have a problem with marijuana, a prob- same kind of extremist reasoning did some reparations are necessary for this lem with heroin. It took decades for not take place at the beginning. Only reason; many other reasons why rep- the problems of marijuana and heroin they did not have an Iran Contra deal. arations are necessary, but certainly to really take a foothold in the com- They had a crack cocaine deal that for this reason. munities. They were actually on their started in Los Angeles with one set. I Ms. WATERS. Mr. Speaker, I yield to way out. You had a decline in the use am sure at the same time they had an- the gentlewoman from Texas [Ms. of drugs in inner city communities at other set of people who started in New JACKSON-LEE]. the point where crack cocaine entered. York, on the east coast. It was not nec- Ms. JACKSON-LEE of Texas. I thank Crack cocaine entered, and for $5 you essarily spread from Los Angeles. They the gentlewoman from California. I could get that high, and it began this probably spread from both ends of the could not help as I was working in my spread as an epidemic which continues Nation. office, to hear the gentlewoman from until this day. Probably the Nica- But this was to earn money when California and then my colleague, the raguan forces are not financing it or there was no other means to earn gentleman from New York, speak behind it today, but what happened money, given the fact that at the tail about a topic that is moving fast was they had an opportunity to fund an end they were willing to go so far, and across the Nation. For those individ- infrastructure. They built their own in- almost got an indictment of the Presi- uals who are not un-American but sim- frastructure as a result of the opportu- dent of the United States, who kept ply are asking the question, who does nities given them by the CIA and Nica- saying he did not remember, and I will the flag fly for. Who does the flag fly raguan drug connection in the early not go into all that. Of course Oliver for? I want to commend the gentle- days of the distribution of the crack North came in and was pretty much ex- woman from California for her leader- cocaine. onerated in terms of, ‘‘He did it, but so ship and her persistence and persever- So you had that era and then you had what?’’ He ran for Senator and almost ance on trying to answer the question a period where we officially, Congress, won a Senate seat in a neighboring for many young Americans across the authorized money for the Contras. $100 State here. Things were that bad. Nation, African-Americans, Hispanics, million we started out with under But he did it, and we know that prof- Anglos, Asians, anyone who wants to Reagan, authorizing money for the its to fund the Contras was the objec- believe that this country does work for Contras, $100 million. So we officially, tive. So why can we not believe, why us. openly began to fund the Contras for a can we not accept the fact that profits This is a frightening expose´ that has period. to fund the Contras was also an objec- come out in the recent weeks, and we And then we cut that off. I was in the tive at the beginning of the Contra recognize that this Nation has many Congress at that time. We cut off the war, and that objective was met on the responsibilities. In fact, in the Con- funding for the Contras. The $100 mil- backs of the people of the African- stitution it indicates that it has a re- lion plus was cut off. It was no more. American community, the inner city sponsibility of commerce. In the Con- And then what happened? We had the communities. stitution it indicates that there is a Iran Contra deal from the basement of Crack cocaine, a drug epidemic un- constitutional responsibility to defend the White House, we know as a fact. like any that has ever probably existed the safety and sanctity of this Nation. It is important to know that these in the history of the world. For $5 you So certainly anyone who would facts because these facts have been can get a high. For $5 you can begin argue, as MAJOR OWENS has said, and clearly established by the special pros- the process of addicting people so that come before congressional hearings and September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10727 talk about the need for clandestine op- What would we say about that? What And as I said, to close, Congress- erations to protect the sanctity of this would you say if crimes were done in woman WATERS, it is interesting to Nation, would cause individuals in Con- Iowa, blatant crimes, and someone is read this article and to note when we gress and others to try to be sensitive set up in a fabulous house in Florida? begin to think of the so-called changes to that, to try to understand what the Here we have got the story, right here, in welfare and the vigorous debate that needs were to protect this Nation, why clearly exposing this situation. many of us raised to disagree with this we needed to be in Nicaragua and why Interestingly enough, this gen- welfare reform because it did not ad- we needed to be doing clandestine oper- tleman, Mr. Blandon, was paid more dress educating and providing bridges ations. But behind those words by the than $166,000 over the past 18 months, for changes, here we are noted by this likes of an Oliver North, behind the records show, for his help in the war on article out of the San Jose Mercury White House of the 1980’s, controlled by drugs. The help in the war on drugs, I News that it was not uncommon to the Republicans, we now find a dev- would imagine that may be, though move 2 to 3 million dollars’ worth of astating and decided and directed ef- this is not a time and place for frivol- crack in 1 day. It was not unusual to fort to poison the lives of young Afri- ity or humor, his help is to direct it move this amount of money, and our can-Americans, inner-city youths in into communities good friend, Mr. Ross, who is here, indi- this Nation. ‘‘Nothing epitomizes the drug war’s cated that the biggest problem they I know that we can be accused of cry- uneven impact on black Americans had was counting the money. ing wolf, making hysterical calls for more clearly that the intertwined Now we say that the new policy of investigations, suggesting that this lives,’’ here we come with the other many of my Republican friends, ‘‘just country is in the hands of those on the player, ‘‘of Ricky Donnelly Ross, a say no or do not do it,’’ we have been other side of the law. high school dropout who became L.A.’s saying that. We join you in that. That I would hope that good thinking peo- premier crack wholesaler, and his is not a drug policy. That has nothing ple would just take a moment, and I suave cocaine supplier,’’ remember to do with this blatant activity that think, as the Congresswoman has indi- now, direct from Colombia, ‘‘Danilo causes the need for our work to ensure cated, and my colleague from New Blandon, who has a master’s degree in that this never happens again and that, York, Gary Webb is not a fly-by-night marketing,’’ as written by Gary Webb, as well, the truth be told for our young writing for purposes of grandeur. This ‘‘and was one of the top civilian leaders people. is a well researched report. That report in California of an anti-Communist Mr. OWENS. This ‘‘just say no’’ slo- clearly names the names and focuses us guerrilla Army formed by the U.S. gan; was it not originated about the on the issues. Central Intelligence Agency called the same time that the other hand of the ‘‘Danilo Blandon is the Johnny FDN. It became known to most Ameri- Government, the CIA, was encouraging Appleseed of crack cocaine in Califor- cans as the Contras.’’ the sale of drugs? nia,’’ so noted in the report written in There goes the very connection that Ms. JACKSON-LEE of Texas. Abso- the San Jose Mercury News, ‘‘The drives our message day after day. That lutely. In the 1980’s the big cry was—— Crips’ and Bloods’ first direct-connect is why as we go home to our districts, Mr. OWENS. The 1980’s, same time. to the cocaine cartels of Colombia.’’ as I will leave today, and face constitu- Ms. JACKSON-LEE of Texas. Same This Danilo Blandon, the first connect ents on talk shows and in town hall time, ‘‘just say no,’’ while at the same to inner-city gangs of crack cocaine or meetings, the cry becomes, ‘‘Why us?’’ time we had a Government orchestrat- cocaine out of Colombia. ing, bringing in tons and tons of drugs b 0945 Remember when we begin to talk and at the cost of some $2 million a about a drug structure? There is really The cry becomes, why us? The cry be- day, resulting in the amounts of about no drug structure that can really com- comes, who does the flag fly for? And 2 million to $3 million a day. pare to the cartels in Colombia, cartels so I am here to support the gentle- And let me say to you, Congress- signifying major corporate structure, woman from California, Ms. WATERS, woman WATERS, I really take my hat an infrastructure that permeates the and Senator BOXER and join my col- off to you because when I see these entire Nation. This was their contact. leagues who believe there is a better numbers, and as you have said, we do Not someone down the street, not America and would want a thorough not know where it will lead, we are someone across the country in New investigation. talking about 2 to 3 million dollars’ York, but Danilo Blandon out of Co- In a meeting with the CIA Director worth of crack in 1 day in one commu- lumbia. yesterday we have both requested and nity, and I think that is the magnitude ‘‘The tons of cut-rate cocaine he received commitment for a very of what you have been saying, what we brought into black L.A. in the 1980’s strong, positive, and a noncoverup in- join you in saying, what I have been and early 1990’s became millions of vestigation. The words I used was to saying and what we need to have all of rocks of crack, which spawned new leave no stone unturned, for that would America understand. crack markets wherever they landed. be the only basis upon which we have a Ms. WATERS. I thank the gentle- ‘‘On a tape made by the Drug En- better America. woman for joining us in the sharing of forcement Administration in July 1990, Now, let me simply say as I close, information in this particular hour, Blandon casually mentioned the flood this is not an indictment across the and I appreciate the cooperation from of cocaine that corresponded through board, from my perspective, of all all of the members of the Congres- the streets of South-Central Los Ange- agencies who are responsible for up- sional Black Caucus and particularly les during the previous decade,’’ in the holding the law. It does say that behav- from those of you who would take time 1980’s. ior caused actions which we would not from your schedules to make sure we ‘‘ ‘These people have been working be proud of, and so I think it is impor- share this information with the people with me 10 years,’ Blandon said. ‘I’ve tant that the CIA’s Inspector General of the United States. sold them about 2,000 or 4,000 kilos. I do announced on August 6 that it will con- Let me just continue here sharing not know. I do not remember how duct an internal inquiry into an air the information of the series because it many.’ ’’ Some 2,000 to 4,000 kilos of base at Mena, AR, that was reportedly is so important to understand why we drugs coming in from Colombia into used in the mid-1980’s to fly guns to the must ask for an investigation. one community then permeate, go Contras and drugs into Louisiana. We have not just asked for an inves- throughout the Nation. There is another location, Houston, in tigation because we do not know what ‘‘But unlike the thousands of young Texas, close to the border and also a we are able to get from whom. We have blacks now serving long Federal prison city that may be subject to this kind of asked the Justice Department for an sentences for selling mere handfuls of intrusion. The base, according to investigation, we have asked the CIA the drug, Blandon is a free man. He has former national security officer, staff- for an investigation, we asked the a spacious new home in Nicaragua and er, Roger Morris, was run by the CIA Speaker of this House to get an inves- a business exporting precious woods, and DEA informant named Barry tigation going with the Permanent Se- courtesy of the United States Govern- Seale, who was murdered by Colombian lect Committee on Intelligence. We ment.’’ gun men in Baton Rouge in 1996. have asked other committee chairs H10728 CONGRESSIONAL RECORD — HOUSE September 20, 1996 who we believe have some oversight to records show Senate investigators were rector. Everybody wants to cooperate, join in the investigation. trying to determine why the U.S. at- they say. The proof of the pudding is in We also have a resolution, or resolu- torney in San Francisco, Joseph the eating. tions, asking for a select committee, Rosanello, had given $36,000 back to a I think we have to be prepared to which we may have to have at some Nicaragua cocaine dealer arrested by move at the right time to do whatever point if we find that we run into road- the FBI. The money was returned, we have to do I order to continue, in blocks. court records show, after two Contra order to approach it from a different It is important for us to go in all of leaders—unbelievable—two Contra direction, and so this is a beginning. these directions so that we can reap in- leaders sent letters to the court swear- We start with this possibility of inves- formation and get to the bottom of ing that the drug dealer had given the tigation by the CIA, or rather by the what is going on. Let me tell you—— cash to buy weapons for guerrillas, had Inspector General. We have gotten Mr. OWENS. Will the gentlewoman been given the cash to buy weapons for word from NEWT GINGRICH, who re- yield for 1 minute? guerrillas. Rosanello said it was cheap- sponded to me and wrote me a letter Ms. WATERS. Yes, I yield. er to give the money back than to dis- indicating that he indeed was going to Mr. OWENS. Is it true that the Jus- prove that claim. The Justice Depart- proceed with the chair of the Perma- tice Department has already concluded ment flipped out to prevent us from nent Select Committee on Intelligence, that they do not need to investigate? getting access to people, records, find- the gentleman from Texas, Mr. COM- Ms. WATERS. The first response we ing out anything about it, recalled BEST, in opening an investigation. I am received from the Justice Department Jack Blum, former chief counsel to the very pleased, and I would like to thank was their preliminary inquiry did not Senate subcommittee that investigated Mr. NEWT GINGRICH, and I would like to reveal any of the facts of this article. allegations of cocaine Contra traffick- read that letter into the RECORD. He However, they were going to start an ing. ‘‘It was one of the most frustrating says: investigation with the Inspector Gen- exercises that I could ever recall,’’ said DEAR MAXINE: Thank you for your letter eral, and of course when we met with Jack Blum. regarding a recent series of articles that ap- the CIA Director last evening, he con- Now, Jack Blum was the former chief peared in the San Jose Mercury News that firmed that that investigation had counsel to the Senate subcommittee alleged CIA involvement in the introduction, started. We talked to him about our that investigated these allegations of financing and distribution of crack cocaine concerns about that investigation. We Contra cocaine trafficking. Again let in Los Angeles. I have asked House Perma- nent Select Committee on Intelligence chair- said that nobody believes that the CIA, me repeat. He said, ‘‘It was one of the first of all, will investigate itself, and man, Larry Combest, to investigate the alle- most frustrating exercises that I can gations contained in these articles, and I un- he assured us that the Inspector Gen- ever recall.’’ It was not until 1989, a few derstand he has already begun to do so. In eral was independent. months after the Contra Sandinista addition, I understand the Director of We also said to him that attempts in war ended and 5 years after Meneses, Central Intelligence, John Deutch, has asked the past had only gotten the kind of re- the big drug dealer, moved from the pe- the CIA Inspector General to investigate this sponse that said we cannot respond be- ninsula to a ranch in Costa Rica that matter despite his own rejection of the sub- cause of national security, and we did the U.S. Government decided, oh, it is stance of the allegations. Assuming the Clin- ton administration will cooperate with our not want an investigation that would time to take some action, sort of, with come back telling us that we cannot efforts, I am hopeful that the chairman Com- a wink. Federal prosecutors in San best investigation as well as the CIA IG in- get information because of national se- Francisco finally charged Mr. Meneses quiry, will reveal whether or not the allega- curity interests. with conspiracy to distribute, they tions contained in the Mercury News articles Third, we said to him we do not want said, 1 kilo of cocaine in 1984, a year in are true or false. Thank you again for your an investigation where you come back which he was working publicly with interest in this matter. Sincerely, Newt with the report under national security FDA. Gingrich, Speaker of the House. interests you can only share with us So, when we talk about investiga- b 1000 and not with the public. It is important tion, we know what we are going to run for it to be shared with the public. We into, walls of secrecy, Justice Depart- Let me just say to the gentleman discovered that the CIA Director has ment shutdown. So we do not trust from New York that, because of our the authority to make that public. He anybody. persistence, things are beginning to also has the authority not to make it I yield to the gentlewoman from happen. As you know, the drug czar public, and this is one thing we are Texas. came out and called for an investiga- going to have to insist on. Ms. JACKSON-LEE of Texas. If the tion. As you know, not only do we have Mr. OWENS. So the Justice Depart- gentlewoman will yield, I imagine, and this letter and this movement by the ment will not conduct its own inde- I just want to pose a question to you in gentleman from Georgia, NEWT GING- pendent investigation; it is going to co- being complete, therefore, as you men- RICH, and the movement by the CIA. operate with the CIA Inspector Gen- tion these stumbling blocks that have Civil rights organizations, the NAACP, eral? occurred in times past. I recall the Se- Mr. Kweisi Mfume; mayors, Mayor Ms. WATERS. That is right, that is lect Committee on Assassinations that Kurt Schmoke, Mayor Wellington exactly what is going on. When we first dealt with the assassinations of King Webb; many groups up in Pennsylva- heard a response from Janet Reno of and Kennedy, and people are still hav- nia. In Los Angeles, the county board the Justice Department, she indicated ing questions about those issues, that of supervisors just passed a resolution that she could not comment because of it is necesary then to cast a broad net calling on the President to get involved an open case. Now what we are hearing to try and reach every agency that in an investigation. is, oh, since the CIA has decided that might be involved: CIA, DEA, FBI, Jus- So because of our persistence, even indeed it would hold an investigation tice Department, and then hearings. though the major media tried to ignore by way of the Inspector General, she is Is that my understanding that you us, would not carry the stories, when now saying that she supports that in- think is necessary after reviewing we held the Congressional Black Cau- vestigation and would await the re- those materials with us of past inves- cus weekend, 3,000 people showed up to sults, the results of which we are sup- tigations? our workshop demanding hearings, de- posed to get in 60 days. Ms. WATERS. Well, I think we have manding investigations. My own paper, Why an investigation, why must we to be in this for the long haul. This is the Los Angeles Times, did not even insist on this? People say but you have not something that is going to reap us carry that meeting, even though a done this before, you had investiga- any substantial answers in the short Member from Los Angeles was in the tions before. Let us take a look for a period of time. We are going to run forefront of the effort. moment at what happened. into walls of secrecy; I just anticipate Mr. Speaker, we finally are getting a In 1988 one 1988 investigation by a that. I anticipate that we are not going little bit of network attention, but so U.S. Senate subcommittee ran into a to be satisfied. far most people are not able to read wall of official secrecy at the Justice However, we have gotten representa- about this in their local newspapers. It Department. In that case congressional tions of cooperation from the CIA Di- has not been reproduced. It has not September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10729 been paid attention to. But because of limited amount of money, and they who are involved in investigations. But our persistence, we are finally making have all these gangs that they can play I want to put everybody on record, as something happen. against each other. There are the Co- we move through these investigations, Again, we are going to have to be in lombians and the Dominicans in New that I had better not see any attempts, this for the long haul. We are going to York, and the so-called Jamaican any attempts to violate me or anybody have to organize in our communities. Posse. What is happening is that the else involved in this work. We are not We are going to have to get our labor people behind all this, they play one going to move with fear, we are not organizations, our community groups, group off against another. When it gets going to stop doing our work, because our church groups, to reproduce this too hot for one, they shift the action to of anybody who tries to intimidate us. and pass it out, reproduce. We have al- another, and it just goes on and on for- I just want to put anybody on record ready printed thousands of copies. Peo- ever. who thinks they may be able to stop us ple are clamoring for them. I do want to caution the gentle- with intimidation that I have no fear. Their local newspapers will not carry woman from California that we must Mr. OWENS. You have the over- the story. Their local television sta- keep the heat on, because the CIA is whelming support of the African-Amer- tions will not carry the story. But we quite a formidable foe. We may have a ican community. Our community over- are getting it out, and I would like the seeming acceptance of cooperation whelmingly supports this effort. They Congressional Black Caucus to con- now. They want to investigate this want to see the truth come out. They tinue to develop this network, working fully. Certainly you may be confronted want to get to the heart of this prob- through the churches, working through with a stone wall, as you were in the lem. private organizations, to spread the case of Haiti, where the CIA actually Ms. WATERS. That is absolutely cor- word, to get the information out. financed the people who stopped our rect. Let me also just say that, while I would like to ask the gentleman, in troops from going in early in the im- Mr. Dole is making a part of his cam- a colloquy here, the gentleman from plementation of the President’s Hai- paign, the priority part of his cam- New York, to describe, if he will, even tian policy, and we had to wait for paign, a discussion on drugs, I do not though he alluded to it and spoke to months and months after that. More understand how he can talk about the devastation in our communities, and more people died, because we have drugs and not even mention this rev- and I have alluded to it or talked about been stopped from initiating a peaceful elation that came out August 18, 19, it, and I will continue to talk about it. process for changing the government in and 20. If you want to talk about drugs, I do not know if people really under- Haiti. you cannot dismiss this revelation, stand what is going on in many of The very person who did that, Eman- this series entitled ‘‘The Dark Alli- these cities, perhaps in parts of your uel Constans, who confessed that the ance.’’ It names names, dates, and own district, with crack cocaine addic- CIA paid him to do it, and he was in places. tion. How bad is it? I yield to the gen- charge, was held in jail for a while in Mr. Speaker, I know what is going tleman from New York [Mr. OWENS]. this country and now he has been re- on. Mr. Dole is using this as a cam- Mr. OWENS. Mr. Speaker, the serious leased. He is free in Queens, NY, for paign issue, and they are playing with problems we face with the African- some strange reason. They do not ex- us one more time, the ‘‘just say no’’ American community in most inner plain why he is released. They will not kind of attitude. It is time to find an- cities, one of the problems is no jobs. explain why the papers that were cap- other political issue to whip people up But I think more important than the tured from this same organization about. fact that there are no jobs is the drug when the United States troops went I do not want Mr. Dole or anybody problem, which is more devastating, into Haiti, why those papers will not be else playing with my community on because the drug problem leads to released to the Haitian Government. this issue. We have been harmed criminal activity, including murder. They have a way of suddenly deciding enough. We have been harmed by a The drug problem decimates families. that whatever is not in the interests of lack of a war, we have been harmed by The drug problem leaves a legacy of ba- national security they will withhold. the Reagan policies, we have been bies. We are back to a problem of ba- The danger is that we will get a stone harmed by the Bush policies, we have bies in the hospitals who are being wall here if the outrage of the Amer- been harmed by a policy that allowed abandoned, and many of these babies ican people is not expressed. If we do the funding of a war, the FDN, the have problems as a result of their not understand the connection between Contras, on the backs of my children, mothers being addicted, and there are what has happened here and the on the backs of the young people of the high health costs. It devastates the present political cry that President inner cities. I do not want anybody community in many ways. Clinton is the cause of drugs being used playing with me on this issue. Mr. Speaker, we have had people on by more young people now, and just do Let me just send a warning to Mr. the one hand in the housing projects not do it, please just say no; if you are Dole: If you stay out on that campaign call for a National Guard to intervene going to deal with that kind of surface trail, you ignore this issue, I am going in order to deal with the fact that the political situation without going deep to find you, Mr. Dole, and I am going housing projects, certain projects are and thoroughly investigating this, you to ask you publicly, why, then, are you inundated with drug dealers. At the are really not dealing with what is not not talking about the genesis of crack same time, other factions within the jeopardizing just the inner cities, but it cocaine? Why are you not talking housing projects would be very much is jeopardizing youth everywhere. It about the spread of cocaine in the against it because it is their sons, their spreads from the inner cities all over. I inner city by CIA operatives under sons who are involved in the drug hope we will pursue it relentlessly. Reagan and under Bush? Why do you trade. Ms. WATERS. I thank the gentleman ignore the fact that we now have some- It is a problem that is interwoven so for reminding us of the kind of work thing that we can investigate? much into the community until you and the kind of time we are going to If you are serious about why young cannot separate it out. There is a lot of have to put in on this issue. people have increased their use of money flowing from the drug dealers Let me just say this, are your drugs, if you are serious about getting that is held out to people for invest- warnings about the stonewalling joined at the bottom of this, you will take up ment, and on and on it goes. They are with warnings that I am getting all this issue. Not only will you join us in in charge. They are the kingpins. They over about the danger of being involved the investigation, you will tell the Re- have an infrastructure now. in this kind of issue? People are won- publicans further, who are in charge, What started with the Nicaraguan dering about my security and whether not only investigate it in the Select trade and the encouragement of the or not I am afraid that something may Committee on Intelligence but all the CIA, the CIA does not have to be in- not happen. committees that have any kind of over- volved anymore. They allowed it to Let me just say this from the floor of sight, any kind of jurisdiction. make enough money to build their own Congress: I do not fear anybody. I am I challenge you today, Mr. Dole, to infrastructure, so they have an infra- aware, as we look through the records, not just play with this issue, but to do structure which has a seemingly un- that people have died mysteriously the right thing and help us get to the H10730 CONGRESSIONAL RECORD — HOUSE September 20, 1996 bottom, and help us to understand how eral system. Yesterday in a hearing the stead of going up to 40 percent, to re- we are going to repair the harm, how gentleman from Virginia, Mr. PAYNE, a strict Government spending. We took we are going to deal with the devasta- Democrat, and the gentleman from the savings from that and we increased tion, how we are going to deal with the Oklahoma, J.C. WATTS, a Republican, Pell grants to the highest level ever, crack-addicted babies, how we are introduced a bill. In the hearing there grants for poor children that achieve going to deal with the guns that you were about 15 different witnesses, Re- and do well in school, but for some cir- support being used in this country, publicans and Democrats, appointed cumstance, they do not have the coming into our communities. and asked to come by Republicans and wherewithal to go to college. f Democrats. I do not mind my tax dollars going to They identified over nine programs pay for that, Mr. Speaker, because WHAT IS THE CORRECT within their communities that were there are some disadvantaged children DEFINITION OF ‘‘CUTS’’? working on antidrug and against juve- in this world that work hard, that want The SPEAKER pro tempore. Under nile justice. When the question was a piece of the American dream, and I the Speaker’s announced policy of May asked, how many of them had those think that it is part of government’s 12, 1995, the gentleman from California programs in all of their districts, none role to make sure that those children [Mr. CUNNINGHAM] is recognized for 60 of them had any one of the other eight are taken care of. minutes as the designee of the major- in their particular district, but the one With those savings from the direct ity leader. that worked, they were focusing on and lending program, we took and in- REPUBLICANS SUPPORT INVESTIGATION INTO they were using. creased student loans through the pri- ORIGIN OF ILLEGAL DRUG SUPPLY Mr. Speaker, what the Republicans vate sector by 50 percent. Did we cut Mr. CUNNINGHAM. Mr. Speaker, have tried to do is direct the money to education? No, sir. We drove the money many of us do support the investiga- the local level, down to the people that down to the children that need it, the tion, because a lot of the drugs, about have the Zip Code, that know the real poor children, in Pell grants, to the 90 percent of them, were purported to problems of their particular commu- children that need the student loans to go out of Mena, ARK, when President nity; not something one-size-fits-all, go to school. Clinton was Governor. If you look at like the Federal Government does, and What we cut is the liberals’ precious the Mena chronicles, in which a lot of mandates that you will do this. If Head bureaucracy here in River City, in those drugs went out, Malek, who was Start works, do it. If drug-free schools Washington, DC, and we took those then Governor Clinton’s chief inves- work, do it. But the emphasis is driv- savings and we drove it to where it is tigator and coroner, ruled that two ing the money down to the local dis- supposed to go in the first place, at a children that were killed on tracks had tricts, to the school teachers, to the much higher rate than 23 cents on a smoked a lot of marijuana and fell parents, to the school boards, to the ju- dollar. asleep. The parents got upset. They venile justice groups, and letting them Let me give another good example, had outside forensics come in, and the handle the problem. Mr. Speaker: AmeriCorps, another children were stabbed to death. great program, according to the Presi- Since then, 18 people that were going b 1015 dent. Everything that this Congress to testify against Governor Clinton, The Federal Government has 760 Fed- has argued over in the 2 years, Mr. Malek, the judge appointed by then- eral education programs. Just imagine Speaker, is power. That is what the Governor Clinton, and the district at- trying to fund that. Every one of them American people are upset about. torney, who also canceled the grand has administrations. Every one of them Power to spend money from Washing- jury investigation, 18 people have been has bureaucracies. Every one of them ton, DC, so you can send it down to murdered. Yes, we look forward to that has paperwork that comes down to the your local interest groups so that they investigation. States that affects the 95 percent that Mr. Speaker, I came here today to think you are a great guy or a great are raised at State and local levels, talk about something that a lot of peo- lady, so you can get reelected, so then just because they have to use the funds ple do not talk about. I think it is a le- you have got the majority, so you have on bureaucratic redtape, on paperwork gitimate issue for both sides, both for got the power. that not only goes to their State de- conservatives and liberals, on what And over here is a bureaucracy, partment of educations, the Governor, does it really mean to cut; what is cut- whether it is a direct lending program, and then has to travel back to Wash- ting and what is being cut, or the dif- whether it is a First Lady’s govern- ferences, at least, in definition. I would ington, DC, 23 cents on the dollar, Mr. ment bureaucracy health care system, like to clarify some of those. Speaker. You could not compete in or all the other programs that they First of all, Mr. Speaker, in edu- business like that, and you cannot purport, they want the power to spend cation, 95 percent of education is paid work education systems with 23 cents the money in Washington, DC. for by State and local revenues. Only on the dollar. AmeriCorps is a classic example. about 5 percent of education in our Let me give some classic examples of They want the dollars to come up here country is paid for by Federal dollars. how government wastes money and so that they can rain them down to dif- That 5 percent of the dollars, do not that the other side of the aisle says ferent people saying, ‘‘Look what good misunderstand me, is no small amount. that Republicans are cutting edu- guys we are.’’ Where does the money The Department of Education, for ex- cation. Let me define the term ‘‘cut.’’ come from? Is there a cut? ample, has an annual budget of about The President’s direct-lending govern- In the first place, the money is taken $35 billion, and that is a B, with a bil- ment student loan program was capped from the American taxpayer. Second, lion. So 5 percent is not a small at 10 percent in a pilot project. That 10 the average volunteer in AmeriCorps amount of change. percent cost $1 billion a year more, just gets $29,000. In Baltimore, just a hoot The problem is, we are getting as lit- to administer, than private lending in- and a holler from here, the average was tle, especially in the district of the stitutions to do it. GAO conducted a $50,000 per volunteer. gentleman from New York [Mr. OWENS] study, said it is going to cost $5 billion Can we do it better than that, Mr. who just spoke, we are getting as little more just to collect those student Speaker? Absolutely. It is wasted dol- as 23 cents out of every Federal dollar loans. lars. Why? You pay somebody $50,000 back to the classroooms. Why? Twen- When the Government shut down, the for painting a fence, or pulling weeds, ty-three cents on a dollar for every tax President says, ‘‘Hey, this is one of my that is more than many of the steel- dollar. Did God create those dollars? cornerstones. I want government to workers, that is more than many of No. He has to take it from hardworking spend the money down and have the your teachers make. I think we can American taxpayers. It comes to Wash- power to give it out, and I want to do better invest that, instead of letting ington, DC, and then goes back to the that.’’ So at conference, we let it go to the Federal Government, just because people that they took it from, at only 40 percent. they want the ability to spend the 23 cents on a dollar. Why is that? But what the liberals did not see is, money, force it down. And, yes, we This Republican Conference identi- we put in the language that capped the wanted to eliminate it and use the dol- fied 760 education programs in the Fed- administrative fees at 10 percent, in- lars more wisely. September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10731 Let me give another example. They work, do away with the rules and regu- even teach our children high skills, say, ‘‘DUKE, why do you hate Goals lations, let us establish our local pro- then think about that delta that the 2000?’’ I don’t hate Goals 2000. As a grams and we can do it better.’’ Mr. liberals talk about so much, about the matter of fact, I think the standards Speaker, I have yet to go to a gradua- successful and the poor, that delta, the that are lauded in Goals 2000 are pretty tion where you have students that do difference between. That is going to noteworthy. I mean, to say that you well, either on a high school or a col- grow even higher if we don’t have a want to have the best math standards lege level, that you do not have parent system to train our children in the fu- and the best math scores in the world involvement, you do not have the ture. We can do that through private is a pretty noteworthy and laudable teachers that are lauded by the parents enterprise, which we are doing now. standard. But if you read the bill, Mr. and by the students, and that team- Let me give you a good example. In Speaker, in Goals 2000, there are 43 in- work and that fellowship. Yes, it does my district, I have a school called stances in the bill that say States take a village to raise a child, and I am Scripps Ranch. Scripps Ranch, we built ‘‘will,’’ and if you are a lawyer, or even a Republican. But the problem is, and we got private enterprise to invest the American people, you understand under the Clinton plan, it takes an- in it. We put fiber optics in it when the the difference between ‘‘will’’ and other village to pay for it. We can do it school was built. We have computers in ‘‘shall’’ in any legal document. ‘‘Will’’ better and we can afford to send other every single classroom that the chil- is a mandate; the State will have to do villages’ dollars down into education dren use and other high-technology this. where we can give the teachers the equipment, both in science, in math, What is one of the 43 ‘‘wills’’ of the money they need to teach our children and yes, in the arts as well. The stu- 760 programs, Federal programs? Just and ask for quality teachers. dents, those that are vocationally one little tiny one. You have to estab- Those are just a few of the reasons. I bound, are using those computers. lish a board at a local level. You have could literally go on all day on dif- They are actually designing modular to establish an education program. ferent examples of what we have done. housing units that they sell to other They say, ‘‘DUKE, you are able to es- But you say, ‘‘DUKE, you’ve shown schools so that they can buy more tablish that local program. I mean, some of the problems. What is your vi- equipment for themselves. Those that isn’t that what you purport? You want sion for education?’’ are college-bound, the students in ar- education, you want teachers, you Mr. Speaker, as chairman of the Sub- chitecture or design, are using those want parents, you want students and committee on Early Childhood, Youth computers. They have redesigned the the administration to establish exactly and Families of the Committee on Edu- entire school. And both unions—union what they are doing.’’ You have to es- cation, I want to do for education what is not a dirty word—unions and private tablish a separate board. They have to John F. Kennedy did for the space pro- enterprise are hiring those children in report this program to the principal. gram. We can do that. We can do that the summer and giving them OJT in My wife happens to be one of those as a nation. We can make an invest- job areas so that they will have a bet- principals, has a doctorate in education ment in education. Not cut it. Liberals ter preparation when they leave high in Encinitas. She then has to give it to have been cutting education for the school. the superintendent. All of this paper- last 40 years because they have been Take a look at a school like Mira work from the superintendent then has spending it on bureaucracy. They have Mesa that I have in my district that to go to Governor Wilson in the State been taking your tax dollars, sending it does not have any of that. Think of the Department of Education in the State to Washington, and returning it at a difference in the opportunity for the of California. very low rate. That is wrong. That is children at Scripps versus the children Think about all this paper flow from cutting education. We are increasing at another school that do not have just the schools in my district. Now education and the resources. How do those opportunities. It is exponential. think about all the paper flow from all you do that? What is your vision, then? What can we do? the schools in the State of California First of all, in the telecommuni- A charter school is a school started going to Sacramento. Now visualize all cations bills, Mr. Speaker, we put in up by teachers, parents, or local groups of that paperwork, all of that time and the language that encourages the that is free from the Federal regula- energy that is going to all of the State AT&T’s, the Baby Bell’s, Apple, IBM tions, and they teach the basics, read- capitals to be reviewed. with the computer programs, to be able ing, writing, arithmetic or math, and What has to happen on a State cap- to invest in our schools. Mr. Speaker, vocational skills. ital level? There has to be a bureauc- less than 12 percent of our schools in What about choice? The voucher sys- racy at a State level, Mr. Speaker, to this Nation, the richest nation in the tem is often talked about. I think the receive and to review, to see if it is in world, less than 12 percent of its class- Federal Government, Mr. Speaker, compliance with the Federal regula- rooms have a single phone jack. We mandates too much. I do not believe tions and the other ‘‘wills’’ that come have had hearings where major rep- that there is choice in schools right forward in Goals 2000. resentatives from industry have told us now. When my wife taught in a dif- And then what does the State do with that over 80 percent of the jobs, both ferent district, my children traveled it? The State takes that same body of vocational and those that are profes- every day with her to that school. paperwork and sends it back here to sional-bound to colleges, are going to b River City, to Washington DC, to a require high-technology equipment and 1030 giant $35 billion bureaucracy in the De- a high-technology education to meet That is choice. They did not have to partment of Education. They review it the needs of the 21st century. I only go to the school in the District. They to see if it falls within those 43 ‘‘wills’’ have 12 percent of the schools that are participated at Fletcher Elementary and some of those ‘‘shalls.’’ After they even wired for a phone jack to put in with the program for special education have done it, there is more paperwork those systems. So what we did is en- children, because they asked them to that goes down that the administrators courage the Baby Bell’s, the AT&T’s, help these special education children. have to handle, that paperwork goes the Alcoa that lays the fiber optics, to And that was choice. back and forth. And think of the time, be able to invest in our schools. The I think we should at least offer the waste and energy; is it any wonder that President jumps up and says, Look at option to States and localities and the United States is number 13 of all 13 V-chip. V-chip, yeah, it’s good. But the local communities. If they want to use industrialized nations in education, but idea in the bill we passed is going to it, then do it, but not to mandate it yet we are purported to spend more on enable us, let industry build up those from the Federal Government. Chris- education. We do not spend more, Mr. schools, let them put in the fiber op- tine Whitman, in New Jersey, has done Speaker, on education. We spend about tics, let them put in the computers, let a good job with it; Governor Engler; one-fourth of what is purported be- them work with the local districts so Governor Weld. Wisconsin has a vouch- cause the rest goes to bureaucracy. that that computer is not obsolete in 6 er program. It works. It may not work What we did is, the Governors came months. in an inner city where you have great to us and said to the committee, ‘‘Send When you have teachers that don’t transportation costs that are going to us the money, do away with the paper- know how to turn on a computer or take away from that education system. H10732 CONGRESSIONAL RECORD — HOUSE September 20, 1996 Again, the money should go to the to help children, and I think that is a drug czar from 154 staff to 25, and then local district and let the parents, the big difference. in his next statement on MTV makes a teachers, the administrators and the But drug-safe schools. In 1994 and 1995 statement, ‘‘I would have inhaled if I local groups that are in that zip code, Democrats controlled. They controlled could,’’ is that the message we want to because they know the particular prob- the House, they controlled the Senate, come across to our children in this Na- lems that go on. Mr. Speaker, and they controlled the tion? What is another function? Education, White House. The request for safe and Agents that are going out every day Mr. Speaker, is, I think, pretty close to drug-free schools was $598.2 million. in our schools say there is not a case a wherewithal that is going to save Let me repeat it for you, $598.2 million. where the kids do not laugh and say, this country. It does not mean that the The Democrats in the Congress, they well, the President does it. Is that the Federal Government has to do it. It controlled the House, the Senate and message that we want to send to our does not mean that the taxpayers the White House, cut to $487.2 million. children? Is that the message that we ought to send their taxes to Washing- In 1995 the request was for $660 million want to send with this nation’s highest ton and have it turned around at such for safe and drug-free schools. Demo- medical officer, Joycelyn Elders, who a low rate. It is ludicrous. crats cut it $194 million. came across and said she wanted to le- What about illegal immigration? In We did not cut safe and drug-free galize drugs in this country? I do not the State of California I have over, and schools. We funded it at the same level, think that is the message we want to listen to this, Mr. Speaker, I have over and we sent the money to the local dis- send to our youth. 400,000 illegals, kindergarten through tricts and said if it works for you, do This President cut the Coast Guard. 12th grade. Four hundred thousand, at it, and fund it. Do not fund it at only One of our most effective stops of drugs a cost of $5,000 each per year. That is 23 cents on the dollar, but fund it if it entering this country, especially in over $2.2 billion a year that comes out works, because that is a program you Florida and in California, is through of California’s education fund; $2.2 bil- need to save for children. our Coast Guard. He cut that $328 mil- lion. Let me give you some fraud, waste lion. We put the money back in, Mr. We could put a computer and fiber and abuse in that particular program Speaker. optics into every schoolroom in the that we rooted out. In Michigan, Drug Foreign operations, State Depart- State of California. We could upgrade Czar Bob Peterson found $81,000 spent ment International Narcotics Control to where education for American citi- on a giant plastic teeth and tooth- Program. We increased it $35 million zens and their children and student brushes for safe and drug-free schools. that the President cut. DOD operations loans are cheaper in the State of Cali- They said if children brush their teeth, was cut by the President. Where? For fornia. But, no, we have been mandated they are not going to do drugs. It went drug interdiction. from the Federal Government that we to fund bicycle pumps. It funded sex When we take a look across the board have to supply this education. education consultants at Clemsford at where this administration has cut The school lunch program, just for High School in Massachusetts; they drug interdiction, he even cut the illegals, costs $1.2 million a day, and spent $1,000 to present a compulsory at- White House drug testing program. we need to address that, Mr. Speaker. tendance on hot, sexy, and safer pro- And, just, what, 3 weeks ago, in the It is another problem within our grams for students. Washington Times and the Washington Fairfax County, just right next to us schools that we have to face on a daily Post and papers across this country, it here in Washington, DC, spent $176,000 basis. was found out that in the White House for staff to spend a weekend on Mary- So I look at the cost of education, staff was using cocaine, heroin, and land’s Eastern Shore. They spent funds what the Federal Government is kill- hallucinogens. And, guess what, the for lumber to build steps for an aero- ing and cutting in education every sin- President did away with the White bics class and funded a field trip to gle day for the last 40 years, and we Deep Run Lodge for the board of edu- House drug testing program before need to change that, Mr. Speaker. We cation. that, even when he was warned by the can do better as a nation. We can in- That is not what the money is meant FBI that these people were going to go vest in education, and we need to do it for, Mr. Speaker, and that is what we on his staff. No wonder he took away at the local level. are changing, is getting the money the drug testing program. And it is a Let me talk about some of the things down to the local groups. fact, it is not just a statement. that my colleagues on the other side of Commerce, Justice, and State appro- We have lost great support in our war the aisle said that we cut. Let me give priations, drug enforcement. My col- against drugs, Mr. Speaker, and Repub- you a good example of the lies, the de- leagues were talking about a study licans are putting that back. We ele- ceit, the misconceptions and the rhet- into contra and drug dealings. What vate the war threat in the National Se- oric that comes out about cutting. Senator Dole has been campaigning curity Council, restore funding for The other side of the aisle will say around the country with is that drug interdiction efforts, restore funding on that Republicans cut safe and drug-free use since the Clinton administration the ONDCP staff for policy support lost schools. We put the money in a block started, the use in our high schools, is in 1993, restore for intelligence gather- grant, again to the States, and if safe up 143 percent, an increase. When Ron- ing that we lost between 1993 and 1995. and drug-free schools works in that ald Reagan and George Bush were in So, yes, we have a critical problem. particular district, they can fund it; if the White House, drug use went down When we talk to lawyers, Mr. Speaker, Head Start works. 50 percent. and go to your lawyers in your local Now, get this. The Department of Yes, say no to drugs. With parents, it district, and ask them what the No. 1 Education, the Department of Edu- worked. It helped. Was it the where- issue for juvenile justice, if they could cation, not exactly a right-wing con- withal? Absolutely not, but I think stop it, what would they do, and I bet servative group, did a study and said there was an awareness that the Nation 99 percent of them will say stop the across this Nation you can take two had a problem. flow of drugs into our schools and into children, one in Head Start, the other Remember Noriega and the interdic- our Nation. not, and at the end of the training tion that we used in Colombia and And those that are on it, let us help there is no difference in the results. other countries in stopping and going them get off it with our treatment cen- But yet in San Diego we have a pretty after the drug cartels? That was effec- ters. I know that personally because of good Head Start Program. It works tive. But is that by itself going to stop my own son who was in a drug treat- good in San Diego. the war that we have on drugs? Abso- ment center, Mr. Speaker, and it But across the Nation it only depends lutely not. Are treatment centers? In worked. But when he checked in, the on the ability of the administrators, our schools, are the safe and drug-free staff there, Dr. Sambs, said, ‘‘Duke, the teachers and the parents within schools and the DARE by themselves? there is only about 10 percent of these that zip code if that is going to succeed No. It takes a compromise of a lot of kids that are not going to come back or not. So what we do is send the different groups to make it work. to this facility.’’ money down to the local district and When we have a President his first But we can save some of those kids. say use the money where it is effective week in the White House who cuts the My son was one of those: Drug free September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10733 since 1986. And he even dates the on the dollar for education. They do CONFERENCE REPORT ON H.R. 3666, daughter of a judge, so I guess he has not want to send it to Washington, DC, DEPARTMENTS OF VETERANS to stay straight now. But it has been a Mr. Speaker, and only get 30 cents of a AFFAIRS AND HOUSING AND success program, and there are other dollar back down to welfare recipients. URBAN DEVELOPMENT, AND children like him across the Nation. They want it effective. INDEPENDENT AGENCIES APPRO- Mr. Speaker, we talk about education They want a lean, mean government PRIATIONS ACT, 1997 and the importance. I taught and that walks beside its people, that helps Mr. LEWIS of California (during the coached at Hinsdale High School out- them and gets off of their back. And special order of the gentleman from side of Chicago. Evanston, Nutria are there is a legitimate reason to have Connecticut, Mr. SHAYS) submitted the two other very fine schools in this Na- Federal help. Poor children. There is a following conference report and state- tion with good teachers. But you go legitimate need in medical research for ment on the bill (H.R. 3666) making ap- just a short distance away, Mr. Speak- AIDS and for cancer and Alzheimer’s propriations for the Departments of er, and you will go through 41⁄2 miles of and other diseases. Veterans Affairs and Housing and 1 States cannot do that, and that is Federal housing projects. In that 4 ⁄2 Urban Development, and for sundry miles, those kids do not carry books, why the speaker was insistent that our independent agencies, boards, commis- they carry guns. Their icons are pimps priority was to increase the dollars for sions, corporations, and offices for the and prostitutes and drug dealers. medical research in the HHS bill, de- fiscal year ending September 30, 1997, The illegitimacy rate is above 50 per- manded it. And in many cases we took and for other purposes: cent for those children. The only male the dollars out of programs that some of us did not want, but overall it was a CONFERENCE REPORT (H. REPT. 104–812) figure they ever see is an older male The Committee of Conference on the dis- that impregnates the unmarried daugh- good program. Mr. Speaker, in 2 years people say, agreeing votes of the two Houses on the ter. That daughter has a child, then amendments of the Senate to the bill (H.R. they get welfare. And the only male well, DUKE, is it really worth it to stay 3666) ‘‘making appropriations for the Depart- in Congress? Is it really worth all of figure they see is that figure. And usu- ments of Veterans Affairs and Housing and the battles that you go through? And I ally it is the grandmother that raises Urban Development, and for sundry inde- want to tell you it is one of the most pendent agencies, boards, commissions, cor- the child. difficult things I have ever done includ- porations, and offices for the fiscal year end- And then if it is a male child, where ing fighting in combat for my country ing September 30, 1997, and for other pur- does that child end up? Where does he because you make an honest effort. poses,’’ having met, after full and free con- go? Usually, the only family that many ference, have agreed to recommend and do You know a system, Medicare, is going of these kids have are gangs. And we recommend to their respective Houses as fol- broke. My mother, who lives in Escon- are seeing the problem in our country lows: dido, is not going to have the system if of juvenile justice and juvenile delin- That the Senate recede from its amend- we do not preserve it and save it. My ments numbered 11, 60, 107, and 112. quency grow exponentially across the little mom, my little Irish mom who That the House recede from its disagree- Nation. fits under my arm, you think we are ment to the amendments of the Senate num- So education, a hope for a job, put- bered 1, 2, 3, 5, 8, 12, 13, 15, 17, 19, 21, 22, 23, going to do anything to taint that? Or ting resources into education, not 24, 25, 26, 27, 28, 30, 31, 32, 36, 37, 38, 39, 42, 44, my children in the future? 45, 46, 48, 49, 50, 51, 52, 53, 54, 55, 56, 61, 62, 63, wasting them on Federal bureaucracy, But yet if we do not save it, and add and purporting to do that, I think, is a 64, 65, 66, 69, 71, 73, 74, 75, 76, 77, 78, 79, 82, 85, the dollars that we need to over a pe- 86, 87, 88, 90, 92, 93, 94, 96, 97, 98, 99, 100, 101, noteworthy task, Mr. Speaker. riod of time, we go from $4,800 to $7,300. 103, 104, 106, 108, 109, 110, 114, 115, 116, and What have we done in this Congress? That is not a cut, Mr. Speaker. And the agree to the same. The Speaker of the House holds up a most difficult thing in this body is to Amendment numbered 4: That the House recede from its disagree- bucket of ice. The last icebox where sit up and listen to all the dema- you had to put ice in it was in 1937, but ment to the amendment of the Senate num- goguery, to the smoke and mirrors, to bered 4, and agree to the same with an yet the Democrats have been, under the scare tactics when someone is say- amendment, as follows: Democrat leadership for 40 years, have ing you are cutting Medicare, when In lieu of the sum proposed by said amend- been delivering ice to this body for 40 someone is saying that you are cutting ment, insert: $700,000,000; and the Senate years, two times a day. Two times a education and what you are doing is agree to the same. day. Do you know what that bucket of Amendment numbered 6: cutting their precious bureaucracy. That the House recede from its disagree- ice cost? $500,000 a year. Why do the unions dump large ment to the amendment of the Senate num- Did we conduct a 5-year study? No. amounts, $35 million, into their cam- bered 6, and agree to the same with an Did we retrain the ice deliverers? No. paigns? Because they know and they amendment, as follows: We just went cold turkey. We cut it. want a centralized government and the In lieu of the sum proposed by said amend- And can we save dollars in this body, power. What we want to do, Mr. Speak- ment, insert: $61,207,000; and the Senate Mr. Speaker? Absolutely. Right on agree to the same. er, is turn that power away from the Amendment numbered 7: down the line. For parking places for Federal Government and turn it back That the House recede from its disagree- lobbyists that we cut. We cut the size to the American people. ment to the amendment of the Senate num- of the bureaucracy and sold a building That is a vision. In that we can in- bered 7, and agree to the same with an and saved taxpayer dollars. That buck- crease education dollars, and we can do amendment, as follows: et means about 400 families that can the rest of the things that we purport In lieu of the sum proposed by said amend- receive the Bob Dole tax relief. to do. ment, insert: $827,584,000; and the Senate I want to thank you, Mr. Speaker. I agree to the same. b 1045 Amendment numbered 9: think that the American people, when That the House recede from its disagree- And the Bob Dole tax relief, let us the elections are coming up on Novem- ment to the amendment of the Senate num- take a look at it. A family of four, two ber 5, whether you are Republican or bered 9, and agree to the same with an children, earning $30,000, will receive a Democrat, take a look at the issues amendment, as follows: tax relief package of 86 percent of their and take a look at the values, the char- In lieu of the matter stricken and inserted taxes are going to be eliminated, 86 acter; take a look at the believability by said amendment, insert: $250,858,000, of percent. And under this administra- which $32,100,000 shall be for the replacement of the system and what we are trying hospital at Travis Air Force Base, Fairfield, tion, if the tax system continues with- to do. It is trying to make a better California, and shall not be released for obliga- out the Bob Dole tax relief, you can America, to preserve Medicare, to pre- tion prior to January 1, 1998, unless action is send that 86 percent tax increase right serve the environment; not cut it but taken by Congress specifically making such to IRS. to cut the Federal bureaucracy that is funds available, and all funds appropriated We are going to rip it out by the taking away the dollars, that is taking under the above hearing are; and the Senate roots, Mr. Speaker. We are going to away the American dream. agree to the same. Amendment numbered 10: have a safer, fairer tax for the Amer- Let us give the dollars back to the That the House recede from its disagree- ican people because they do not want pockets of the people so that we can ment to the amendment of the Senate num- to send the valuable dollars to Wash- improve education and the other sys- bered 10, and agree to the same with an ington, DC and only get 23 cents back tems. amendment, as follows: H10734 CONGRESSIONAL RECORD — HOUSE September 20, 1996 In lieu of the sum proposed by said amend- than contracts for projects developed under sec- ed, if the owner of such project filed notice of ment, insert: $175,000,000; and the Senate tion 202 of the Housing Act of 1959, as amended: intent to extend the low-income affordability re- agree to the same. Provided further, That of the total amount pro- strictions of the housing, or transfer to a quali- Amendment numbered 14: vided under this head, $190,000,000 shall be for fied purchaser who would extend such restric- That the House recede from its disagree- assistance under the United States Housing Act tions, on or before November 1, 1993; and of ment to the amendment of the Senate num- of 1937 (42 U.S.C. 1437) to relocate residents of which, up to $100,000,000 may be used for rental bered 14, and agree to the same with an properties (i) that are owned by the Secretary assistance to prevent displacement of families amendment, as follows: and being disposed of; (ii) that are discontinu- residing in projects whose owners prepay their In lieu of the matter inserted by said ing section 8 project-based assistance; or (iii) mortgages; and the balance of which shall be amendment, insert the following: subject to special workout assistance team inter- available from the effective date of this Act for DEVELOPMENT AND ADDITIONAL NEW SUBSIDIZED vention compliance actions; for the conversion sales to preferred priority purchasers: Provided HOUSING of section 23 projects to assistance under section further, That with the exception of projects de- For assistance for the purchase, construction, 8; for funds to carry out the family unification scribed in clauses (1), (2), or (3) of the preceding acquisition, or development of additional public program; and for the relocation of witnesses in proviso, the Secretary shall, notwithstanding and subsidized housing units for low income connection with efforts to combat crime in pub- any other provision of law, suspend further families under the United States Housing Act of lic and assisted housing pursuant to a request processing of preservation applications which 1937, as amended (‘‘the Act’’ herein) (42 U.S.C. from a law enforcement or prosecution agency: have not heretofore received approval of a plan 1437), not otherwise provided for, $1,039,000,000, Provided further, That of the total amount of action: Provided further, That $150,000,000 of to remain available until expended: Provided, made available under this head, $50,000,000 amounts recaptured from interest reduction pay- That of the total amount provided under this shall be made available to nonelderly disabled ment contracts for section 236 projects whose head, $645,000,000 shall be for capital advances, families affected by the designation of a public owners prepay their mortgages during fiscal including amendments to capital advance con- housing development under Section 7 of such year 1997 shall be rescinded: Provided further, tracts, for housing for the elderly, as authorized Act or the establishment of preferences in ac- That an owner of eligible low-income housing by section 202 of the Housing Act of 1959, as cordance with section 651 of the Housing and may prepay the mortgage or request voluntary amended, and for project rental assistance, and Community Development Act of 1992 (42 U.S.C. termination of a mortgage insurance contract, amendments to contracts for project rental as- 13611). so long as said owner agrees not to raise rents for sixty days after such prepayment: Provided sistance, for supportive housing for the elderly PRESERVING EXISTING HOUSING INVESTMENT further, That such developments have been de- under section 202(c)(2) of the Housing Act of For operating, maintaining, revitalizing, reha- 1959; and $194,000,000 shall be for capital ad- termined to have preservation equity at least bilitating, preserving, and protecting existing equal to the lesser of $5,000 per unit or $500,000 vances, including amendments to capital ad- housing developments for low income families, vance contracts, for supportive housing for per- per project or the equivalent of eight times the the elderly, and the disabled, $5,750,000,000, to most recently published monthly fair market sons with disabilities, as authorized by section remain available until expended: Provided, That rent for the area in which the project is located 811 of the Cranston-Gonzalez National Afford- of the total amount made available under this as the appropriate unit size for all of the units able Housing Act, and for project rental assist- head, $2,900,000,000 shall be available for pay- in the eligible project: Provided further, That ance, and amendments to contracts for project ments to public housing agencies and Indian the Secretary may modify the regulatory agree- rental assistance, for supportive housing for housing authorities for operating subsidies for ment to permit owners and priority purchasers persons with disabilities as authorized by sec- low-income housing projects as authorized by to retain rental income in excess of the basic tion 811 of the Cranston-Gonzalez National Af- section 9 of the United States Housing Act of rental charge in projects assisted under section fordable Housing Act: Provided further, That 1937, as amended (42 U.S.C. 1437g): Provided 236 of the National Housing Act, for the purpose the Secretary may designate up to 25 percent of further, That of the total amount made avail- of preserving the low and moderate income the amounts earmarked under this paragraph able under this head, $2,500,000,000 shall be character of the housing: Provided further, for section 811 of the Cranston-Gonzalez Na- available for modernization of existing public That eligible low-income housing shall include tional Affordable Housing Act for tenant-based housing projects as authorized under section 14 properties meeting the requirements of this para- assistance, as authorized under that section, in- of the United States Housing Act of 1937, as graph with mortgages that are held by the State cluding such authority as may be waived under amended (42 U.S.C. 14371), of which $10,000,000 agency as a result of a sale by the Secretary the next proviso, which assistance is five years shall be for carrying out activities under section without insurance which immediately before the in duration: Provided further, That the Sec- 6(j) of the United States Housing Act of 1937 sale would have been eligible low-income hous- retary may waive any provision of section 202 of and technical assistance for the inspection of ing under LIHPRHA: Provided further, That the Housing Act of 1959 and section 811 of the public housing units, contract expertise, and notwithstanding any other provision of law, National Affordable Housing Act (including the training and technical assistance directly or in- subject to the availability of appropriated provisions governing the terms and conditions of directly, under grants, contracts, or cooperative funds, each low-income family, and moderate- project rental assistance and tenant-based as- agreements, to assist in the oversight and man- income family who is elderly or disabled or is re- sistance) that the Secretary determines is not agement of public and Indian housing (whether siding in a low-vacancy area, residing in the necessary to achieve the objectives of these pro- or not the housing is being modernized with as- housing on the date of prepayment or voluntary grams, or that otherwise impedes the ability to sistance under this proviso) or tenant-based as- termination, and whose rent, as a result of a develop, operate or administer projects assisted sistance, including, but not limited to, an an- rent increase occurring no later than one year under these programs, and may make provision nual resident survey, data collection and analy- after the date of the prepayment, exceeds 30 per- for alternative conditions or terms where appro- sis, training and technical assistance by or to cent of adjusted income, shall be offered tenant- priate: Provided further, That of the total officials and employees of the department, and based assistance in accordance with section 8 or amount provided under this head $200,000,000 of public housing agencies and to residents in any successor program, under which the family shall be for the development or acquisition cost connection with the public and Indian housing shall pay no less for rent than it paid on such of public housing for Indian families, including program: Provided further, That of the total date: Provided further, That any family receiv- amounts for housing under the mutual help amount provided under this head, $350,000,000 ing tenant-based assistance under the preceding homeownership opportunity program under sec- shall be available for use in conjunction with proviso may elect (1) to remain in the unit of the tion 202 of the Act (42 U.S.C. 1437bb). properties that are eligible for assistance under housing and if the rent exceeds the fair market PREVENTION OF RESIDENT DISPLACEMENT the Low Income Housing Preservation and Resi- rent or payment standard, as applicable, the For activities and assistance to prevent the in- dent Homeownership Act of 1990 (LIHPRHA) or rent shall be deemed to be the applicable stand- voluntary displacement of low-income families, the Emergency Low-Income Housing Preserva- ard, so long as the administering public housing the elderly and the disabled because of the loss tion Act of 1987 (ELIHPA), of which $75,000,000 agency finds that the rent is reasonable in com- of affordable housing stock, expiration of sub- shall be available for obligation until March 1, parison with rents charged for comparable un- sidy contracts (other than contracts for which 1997 for projects (1) that are subject to a repay- assisted housing units in the market or (2) to amounts are provided under the head ‘‘Preserv- ment or settlement agreement that was executed move from the housing and the rent will be sub- ing Existing Housing Investment’’) or expiration between the owner and the Secretary prior to ject to the fair market rent of the payment of use restrictions, or other changes in housing September 1, 1995; (2) whose submissions were standard, as applicable, under existing program assistance arrangements, and for other pur- delayed as a result of their locations in areas rules and procedures: Provided further, That poses, $4,640,000,000, to remain available until that were designated as a Federal disaster area the tenant-based assistance made available expended: Provided, That of the total amount in a Presidential Disaster Declaration; or (3) under the preceding two provisos are in lieu of provided under this head, $3,600,000,000 shall be whose processing was, in fact or in practical ef- benefits provided in subsections 223(b), (c), and for assistance under the United States Housing fect, suspended, deferred, or interrupted for a (d) of the low Income Housing Preservation and Act of 1937 (42 U.S.C. 1437) for use in connection period of twelve months or more because of dif- Resident Homeownership Act of 1990: Provided with expiring or terminating section 8 subsidy fering interpretations, by the Secretary and an further, That any sales shall be funded using contracts: Provided further, That the Secretary owner or by the Secretary and a State or local the capital grant available under section may determine not to apply section 8 (o)(6)(B) of rent regulatory agency, concerning the timing of 220(d)(3)(A) of LIHPRHA: Provided further, the Act to housing vouchers during fiscal year filing eligibility or the effect of a presumptively That any extensions shall be funded using a 1997: Provided further, That of the total amount applicable State or local rent control law or reg- non-interest-bearing capital (direct) loan by the provided under this head, $850,000,000 shall be ulation on the determination of preservation Secretary not in excess of the amount of the cost for amendments to section 8 contracts other value under section 213 of LIHPRHA, as amend- of rehabilitation approved in the plan of action September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10735 plus 65 percent of the property’s preservation DRUG ELIMINATION GRANTS FOR LOW-INCOME reasonably achievable, quantifiable goals for equity and under such other terms and condi- HOUSING (INCLUDING TRANSFER OF FUNDS) measuring performance under the program over tions as the Secretary may prescribe: Provided For grants to public and Indian housing a three-year period, the extent of success an further, That any capital grant shall be limited agencies for use in eliminating crime in public agency has had in carrying out other com- to seven times, and any capital loan limited to housing projects authorized by 42 U.S.C. 11901– parable initiatives, and other appropriate cri- six times, the annual fair market rent for the 11908, for grants for federally assisted low-in- teria established by the Secretary): Provided project, as determined using the fair market rent come housing authorized by 42 U.S.C. 11909, and further, That from the foregoing $60,000,000, up for fiscal year 1997 for the areas in which the for drug information clearinghouse services au- to $5,000,000 shall be available for the Tenant project is located using the appropriate apart- thorized by 42 U.S.C. 11921–11925, $290,000,000, Opportunity Program, and up to $5,000,000 shall ment sizes and mix in the eligible project, except to remain available until expended, $10,000,000 be available for the Moving to Work Demonstra- where, upon the request of a priority purchaser, of which shall be for grants, technical assist- tion for public housing families. the Secretary determines that a greater amount ance, contracts and other assistance training, And the Senate agree to the same. Amendment numbered 20: is necessary and appropriate to preserve low-in- program assessment, and execution for or on be- half of public housing agencies and resident or- That the House recede from its disagree- come housing: Provided further, That section ment to the amendment of the Senate num- 241(f) of the National Housing Act is repealed ganizations (including the cost of necessary travel for participants in such training), bered 20, and agree to the same with an and insurance under such section shall not be amendment, as follows: offered as an incentive under LIHPRHA and $5,000,000 of which shall be used in connection with efforts to combat violent crime in public In lieu of the sum proposed by said amend- ELIHPA: Provided further, That up to ment, insert: $30,000,000; and the Senate $10,000,000 of the amount of $350,000,000 made and assisted housing under the Operation Safe Home program administered by the Inspector agree to the same. available by a preceding proviso in this para- Amendment numbered 29: General of the Department of Housing and graph may be used at the discretion of the Sec- That the House recede from its disagree- Urban Development, and $5,000,000 of which retary to reimburse owners of eligible properties ment to the amendment of the Senate num- shall be provided to the Office of Inspector Gen- for which plans of action were submitted prior bered 29, and agree to the same with an eral for Operation Safe Home: Provided further, to the effective date of this Act, but were not ex- amendment, as follows: That the term ‘‘drug-related crime’’, as defined ecuted for lack of available funds, with such re- In lieu of the matter stricken and inserted in 42 U.S.C. 11905(2), shall also include other imbursement available only for documented by said amendment, insert the following: types of crime as determined by the Secretary: costs directly applicable to the preparation of $976,840,000, of which $15,000,000 may be used Provided further, That notwithstanding section the plan of action as determined by the Sec- for additional retraining, relocation, permanent 5130(c) of the Anti-Drug Abuse Act of 1988 (42 retary, and shall be made available on terms change of station, and other activities related to U.S.C. 11909(c)), the Secretary may determine and conditions to be established by the Sec- downsizing only upon submission of a detailed not to use any such funds to provide public retary: Provided further, That, notwithstanding and specific, multi-year downsizing plan to the housing youth sports grants. Committee on Appropriations of the House of any other provision of law, a priority purchaser And the Senate agree to the same. may utilize assistance under the HOME Invest- Amendment numbered 16: Representatives and the Senate, and; and the ment Partnerships Act or the Low Income Hous- That the House recede from its disagree- Senate agree to the same. ing Tax Credit; Provided further, That projects ment to the amendment of the Senate num- Amendment numbered 33: That the House recede from its disagree- with approved plans of action which exceed the bered 16, and agree to the same with an ment to the amendment of the Senate num- limitations on eligibility for funding imposed by amendment, as follows: its Act may submit revised plans of action which In lieu of the sum proposed by said amend- bered 33, and agree to the same with an conform to these limitations by March 1, 1997 ment, insert: $67,000,000; and the Senate amendment, as follows: In lieu of the sum proposed by said amend- and retain the priority for funding otherwise agree to the same. ment, insert: $15,500,000; and the Senate applicable from the original date of approval of Amendment numbered 18: agree to the same. their plan of action, subject to securing any ad- That the House recede from its disagree- ment to the amendment of the Senate num- Amendment numbered 34: ditional necessary funding commitments by Au- That the House recede from its disagree- gust 1, 1997. bered 18, and agree to the same with an amendment, as follows: ment to the amendment of the Senate num- REVITALIZATION OF SEVERELY DISTRESSED PUBLIC In lieu of the matter inserted by said bered 34, and agree to the same with an HOUSING amendment, insert the following: amendment, as follows: Of the Amount provided under this heading, In lieu of the matter stricken and inserted For grants to public housing agencies for as- the Secretary of Housing and Urban Develop- by said amendment, insert the following: sisting in the demolition of obsolete public hous- ment may use up to $60,000,000 for grants to SEC. 201. EXTENDERS.—(a) PUBLIC HOUSING ing projects or portions thereof, the revitaliza- public housing agencies (including Indian hous- FUNDING FLEXIBILITY.—Section 201(a)(2) of the tion (where appropriate) of sites (including re- ing authorities), nonprofit corporations, and Departments of Veterans Affairs and Housing maining public housing units) on which such other appropriate entities for a supportive serv- and Urban Development, and Independent projects are located, replacement housing which ice program to assist residents of public and as- Agencies Appropriations Act, 1996 is amended will avoid or lessen concentrations of very low- sisted housing, former residents of such housing by striking ‘‘1996’’ and inserting ‘‘1997’’. (b) ONE-FOR-ONE REPLACEMENT OF PUBLIC income families, and tenant-based assistance in receiving tenant-based assistance under section AND INDIAN HOUSING.—Section 1002(d) of Public accordance with section 8 of the United States 8 of such Act (42 U.S.C. 1437f), and other low- Law 104–19 is amended by striking ‘‘before Sep- Housing Act of 1937; and for providing replace- income families and individuals to become self- tember 30, 1996’’ and inserting ‘‘on or before ment housing and assisting tenants to be dis- sufficient: Provided, That the program shall September 30, 1997’’. placed by the demolition, $550,000,000, to remain provide supportive services, principally for the (c) PUBLIC AND ASSISTED HOUSING RENTS, IN- available until expended, of which the Secretary benefit of public housing residents, to the elder- COME ADJUSTMENTS, AND PREFERENCES.—(1)(A) may use up to $2,500,000 for technical assist- ly and the disabled, and to families with chil- Section 402(a) of The Balanced Budget Down- ance, to be provided directly or indirectly by dren where the head of household would benefit grants, contracts or cooperative agreements, in- payment Act, I is amended— for the receipt of supportive services and in (i) by striking ‘‘effective for fiscal year 1996 cluding training and cost of necessary travel for working, seeking work, or in preparing for work participants in such training, by or to officials and no later than October 30, 1995’’ and insert- by participating in job training or educational ing ‘‘and subsection (f) of this section, effective and employees of the Department and of public programs: Provided further, That the supportive housing agencies and to residents: Provided, for fiscal year 1997’’; services may include congregate services for the (ii) in paragraphs (1), (2), and (4), by striking That no funds appropriated in this title shall be elderly and disabled, service coordinators, and ‘‘not less than $25, and may require a minimum used for any purpose that is not provided for coordinated educational, training, and other monthly rent of’’; and herein, in the Housing Act of 1937, in the Appro- supportive services, including academic skills (iii) in paragraph (3), by striking ‘‘not less priations Acts for Veterans Affairs, Housing and training, job search assistance, assistance relat- than $25 for the unit, and may require a mini- Urban Development, and Independent Agencies, ed to retaining employment, vocational and en- mum monthly rent of’’. for the fiscal years 1993, 1994, and 1995, and the trepreneurship development and support pro- (B) Section 230 of Public Law 104–134 is here- Omnibus Consolidated Rescissions and Appro- grams, transportation, and child care: Provided by repealed. priations Act of 1996: Provided further, That further, That the Secretary shall require appli- (2) Section 402(f) of The Balanced Budget none of such funds shall be used directly or in- cations to demonstrate firm commitments of Downpayment Act, I is amended by striking directly by granting competitive advantage in funding or services from other sources: Provided ‘‘fiscal year 1996’’ and inserting ‘‘fiscal years awards to settle litigation or pay judgments, un- further, That the Secretary shall select public 1996 and 1997’’. less expressly permitted herein: Provided fur- and Indian housing agencies to receive assist- (d) APPLICABILITY TO IHAS.—In accordance ther, That, notwithstanding any other provision ance under this head on a competitive basis, with section 201(b)(2) of the United States Hous- of law, the funds made available to the Housing taking into account the quality of the proposed ing Act of 1937, the amendments made by sub- Authority of New Orleans under HOPE VI for program (including any innovative approaches, sections (a), (b), and (c) shall apply to public purposes of Desire Homes, shall not be obligated the extent of the proposed coordination of sup- housing developed or operated pursuant to a or expended for on-site construction until an portive services, the extent of commitments of contract between the Secretary of Housing and independent third party has determined wheth- funding or services from other sources, the ex- Urban Development and an Indian housing au- er the site is appropriate. tent to which the proposed program includes thority. H10736 CONGRESSIONAL RECORD — HOUSE September 20, 1996

(e) STREAMLINING SECTION 8 TENANT-BASED Amendment numbered 41: (4) OTHER CONTRACTS.— ASSISTANCE.—Section 203(d) of the Departments That the House recede from its disagree- (A) PARTICIPATION IN DEMONSTRATION.—For a of Veterans Affairs and Housing and Urban De- ment to the amendment of the Senate num- contract covering an FHA-insured multifamily velopment, and Independent Agencies Appro- bered 41, and agree to the same with an housing project that expires during fiscal year priations Act, 1996 is amended by striking ‘‘fis- amendment, as follows: 1997 with rent levels that exceed the percentage cal year 1996’’ and inserting ‘‘fiscal years 1996 In lieu of the matter inserted by said described in paragraph (1) and after notice to and 1997’’. amendment, insert the following: the tenants, the Secretary shall, at the request (f) SECTION 8 FAIR MARKET RENTALS AND SEC. 211. SECTION 8 CONTRACT RENEWAL AU- of the owner of the project and after notice to DELAY IN REISSUANCE.—(1) The first sentence of THORITY. the tenants, include that multifamily housing section 403(a) of the Balanced Budget Down- (a) DEFINITIONS.—For purposes of this sec- project in the demonstration program under sec- payment Act, I, is amended by striking ‘‘1996’’ tion— tion 212 of this Act. The Secretary shall ensure (1) the term ‘‘expiring contract’’ means a con- and inserting ‘‘1997’’. that a multifamily housing project with an ex- tract for project-based assistance under section 8 (2) Section 403(c) of such Act is amended— piring contract in fiscal year 1997 shall be al- (A) by striking ‘‘fiscal year 1996’’ and insert- of the United States Housing Act of 1937 that lowed to be included in the demonstration. ing ‘‘fiscal years 1996 and 1997’’; and expires during fiscal year 1997; (B) EFFECT OF MATERIAL ADVERSE ACTIONS OR (2) the term ‘‘family’’ has the same meaning (B) by inserting before the semicolon the fol- OMISSIONS.—Notwithstanding paragraph (1) or as in section 3(b) of the United States Housing lowing: ‘‘for assistance made available during any other provision of law, the Secretary shall Act of 1937; fiscal year 1996 and October 1, 1997 for assist- not renew an expiring contract if the Secretary (3) the term ‘‘multifamily housing project’’ determines that the owner of the multifamily ance made available during fiscal year 1997’’. means a property consisting of more than 4 (g) SECTION 8 RENT ADJUSTMENTS.—Section housing project has engaged in material adverse dwelling units that is covered in whole or in financial or managerial actions or omissions 8(c)(2)(A) of the United States Housing Act of part by a contract for project-based assistance 1937 is amended— with regard to the project (or with regard to under section 8 of the United States Housing other similar projects if the Secretary determines (1) in the third sentence by inserting ‘‘, fiscal Act of 1937; that such actions or omissions constitute a pat- year 1996 prior to April 26, 1996, and fiscal year (4) the term ‘‘owner’’ has the same meaning as tern of mismanagement that would warrant sus- 1997’’ after ‘‘1995’’; in section 8(f) of the United States Housing Act (2) in the fourth sentence, by striking ‘‘For’’ of 1937; pension or debarment by the Secretary). and inserting ‘‘Except for assistance under the (5) the term ‘‘project-based assistance’’ means (C) TRANSFER OF PROPERTY.—For properties certificate program, for’’; rental assistance under section 8 of the United disqualified from the demonstration program be- (3) after the fourth sentence, by inserting the States Housing Act of 1937 that is attached to a cause of actions by an owner or purchaser in following new sentence: ‘‘In the case of assist- multifamily housing project; accordance with subparagraph (B), the Sec- ance under the certificate program, 0.01 shall be (6) the term ‘‘public agency’’ means a State retary shall establish procedures to facilitate the subtracted from the amount of the annual ad- housing finance agency, a local housing agency, voluntary sale or transfer of the property, with justment factor (except that the factor shall not or other agency with a public purpose and sta- a preference for tenant organizations and ten- be reduced to less than 1.0), and the adjusted tus; ant-endorsed community-based nonprofit and rent shall not exceed the rent for a comparable (7) the term ‘‘Secretary’’ means the Secretary public agency purchasers meeting such reason- unassisted unit of similar quality, type, and age of Housing and Urban Development; and able qualifications as may be established by the in the market area.’’; and (8) the term ‘‘tenant-based assistance’’ has the Secretary. The Secretary may include the trans- (4) in the last sentence, by— same meaning as in section 8(f) of the United fer of section 8 project-based assistance. (A) striking ‘‘sentence’’ and inserting ‘‘two States Housing Act of 1937. (5) TENANT PROTECTIONS.—Any family resid- sentences’’; and (b) SECTION 8 CONTRACT RENEWAL AUTHOR- ing in an assisted unit in a multifamily housing (B) inserting ‘‘, fiscal year 1996 prior to April ITY.— project that is covered by an expiring contract 26, 1996, and fiscal year 1997’’ after ‘‘1995’’. (1) IN GENERAL.—Notwithstanding section that is not renewed, shall be offered tenant- And the Senate agree to the same. 405(a) of the Balanced Budget Downpayment based assistance before the date on which the Amendment numbered 35: Act, I, upon the request of the owner of a multi- contract expires or is not renewed. That the House recede from its disagree- family housing project that is covered by an ex- SEC. 212. FHA MULTIFAMILY DEMONSTRATION ment to the amendment of the Senate num- piring contract, the Secretary shall use amounts AUTHORITY. bered 35, and agree to the same with an made available for the renewal of assistance (a) IN GENERAL.— amendment, as follows: under section 8 of the United States Housing (1) REPEAL.— At the end of the matter proposed by said Act of 1937 to renew the expiring contract as (A) IN GENERAL.—Section 210 of the Depart- amendment, insert the following: Any grant project-based assistance for a period of not more ments of Veterans Affairs and Housing and or assistance made under this section shall be than 1 year, at rent levels that are equal to Urban Development and Independent Agencies made in accordance with section 102 of the De- those under the expiring contract as of the date Appropriations Act, 1996 (110 Stat. 1321) is re- partment of Housing and Urban Development of which the contract expires, provided that pealed. Reform Act of 1989 on a competitive basis. those rent levels do not exceed 120 percent of the (B) EXCEPTION.—Notwithstanding the repeal And the Senate agree to the same. fair market rent for the market area in which under subparagraph (A), amounts made avail- Amendment numbered 40: the project is located. For a FHA-insured multi- able under section 210(f) the Departments of That the House recede from its disagree- family housing project with an expiring contract Veterans Affairs and Housing and Urban Devel- ment to the amendment of the Senate num- at rent levels that exceed 120 percent of the fair opment and Independent Agencies Appropria- bered 40, and agree to the same with an market rent for the market area, the Secretary tions Act, 1996 shall remain available for the amendment, as follows: shall provide, at the request of the owner, sec- demonstration program under this section In lieu of the matter inserted by said tion 8 project-based assistance, for a period of through the end of fiscal year 1997. amendment, insert the following: not more than 1 year, at rent levels that do not (2) SAVINGS PROVISIONS.—Nothing in this sec- SEC. 210. (a) FINANCING ADJUSTMENT FAC- exceed 120 percent of the fair market rent. tion shall be construed to affect any commit- TORS.—Fifty per centum of the amounts of (2) EXEMPTION FOR STATE AND LOCAL HOUSING ment entered into before the date of enactment budget authority, or in lieu thereof 50 per cen- AGENCY PROJECTS.—Notwithstanding paragraph of this Act under the demonstration program tum of the cash amounts associated with such (1), upon the expiration of a contract with rent under section 210 of the Departments of Veter- budget authority, that are recaptured from levels that exceed the percentage described in ans Affairs and Housing and Urban Develop- projects described in section 1012(a) of the Stew- that paragraph, if the Secretary determines that ment and Independent Agencies Appropriations art B. McKinney Homeless Assistance Amend- the primary financing or mortgage insurance for Act, 1996. (3) DEFINITIONS.—For purposes of this sec- ments Act of 1988 (Public Law 100–628, 102 Stat. the multifamily housing project that is covered tion— 3224, 3268) shall be rescinded, or in the case of by that expiring contract was provided by a public agency, the Secretary shall, at the re- (A) the term ‘‘demonstration program’’ means cash, shall be remitted to the Treasury, and quest of the owner and the public agency, renew the program established under subsection (b); such amounts of budget authority or cash re- the expiring contract— (B) the term ‘‘expiring contract’’ means a con- captured and not rescinded or remitted to the (A) for a period of not more than 1 year; and tract for project-based assistance under section 8 Treasury shall be used by State housing finance (B) at rent levels that are equal to those under of the United States Housing Act of 1937 that agencies or local governments or local housing the expiring contract as of the date on which expires during fiscal year 1997; agencies with projects approved by the Sec- the contract expires. (C) the term ‘‘family’’ has the same meaning retary of Housing and Urban Development for (3) Section 202, Section 811, and Section 515 as in section 3(b) of the United States Housing which settlement occurred after January 1, 1992, Projects. Notwithstanding paragraph (1), for Act of 1937; in accordance with such section. section 202 projects, section 811 projects and sec- (D) the term ‘‘multifamily housing project’’ (b) In addition to amounts otherwise provided tion 515 projects, upon the expiration of a sec- means a property consisting of more than 4 by this Act, $464,442 is appropriated to the De- tion 8 contract, the Secretary shall, at the re- dwelling units that is covered in whole or in partment of Housing and Urban Development quest of the owner, renew the expiring con- part by a contract for project-based assistance; for payment to the Utah Housing Finance Agen- tract— (E) the term ‘‘owner’’ has the same meaning cy, in lieu of amounts lost to such agency in (A) for a period of not more than 1 year; and as in section 8(f) of the United States Housing bond refinancings during 1994, for its use in ac- (B) at rent levels that are equal to those under Act of 1937; cordance with subsection (a). the expiring contract as of the date on which (F) the term ‘‘project-based assistance’’ means And the Senate agree to the same. the contract expires. rental assistance under section 8 of the United September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10737 States Housing Act of 1937 that is attached to a housing agency or nonprofit to act as a des- holders an the Association under such program, multifamily housing project; ignee, the Secretary may act as a designee. Each and consent by parties to any contractual (G) the term ‘‘Secretary’’ means the Secretary participation arrangement entered into under agreement which the Secretary proposes to mod- of Housing and Urban Development; and this subsection shall include a designee as the ify or discontinue, the Secretary or, except with (H) the term ‘‘tenant-based assistance’’ has primary partner. Any organization selected by respect to subparagraph (B), designee, subject to the same meaning as in section 8(f) of the Unit- the Secretary under this section shall have a the funding limitation in subsection (l), shall ed States Housing Act of 1937. long-term record of service in providing low-in- take not less than 1 of the actions specified in (b) DEMONSTRATION AUTHORITY.— come housing and meet standards of fiscal re- subparagraphs (G), (H), and (I) and may take (1) IN GENERAL.—Subject to the funding limi- sponsibility, as determined by the Secretary. any of the following actions: tation in subsection (l), the Secretary shall ad- (3) DESIGNEE PARTNERSHIPS.—For purposes of (A) REMOVAL OF RESTRICTIONS.— minister a demonstration program with respect any participation arrangement under this sub- (i) IN GENERAL.—Consistent with the purposes to multifamily projects— section, designees are encouraged to develop of this section, subject to the agreement of the (A) whose owners agree to participate; partnerships with each other, and to contract or owner of the project and after consultation with (B) with rents on units assisted under section subcontract with other entities, including— the tenants of the project, the Secretary or des- 8 of the United States Housing Act of 1937 that (A) public housing agencies; ignee may remove, relinquish, extinguish, mod- are, in the aggregate, in excess of 120 percent of (B) financial institutions; ify, or agree to the removal of any mortgage, the fair market rent of the market area in which (C) mortgage servicers; regulatory agreement, project-based assistance the project is located; and (D) nonprofit and for-profit housing organiza- contract, use agreement, or restriction that had (C) the mortgages of which are insured under tions; been imposed or required by the Secretary, in- the National Housing Act. (E) the Federal National Mortgage Associa- cluding restrictions on distributions of income (2) PURPOSE.—The demonstration program tion; which the Secretary or designee determines shall be designed to obtain as much information (F) the Federal Home Loan Mortgage Cor- would interfere with the ability of the project to as is feasible on the economic viability and re- poration; operate without above-market rents. habilitation needs of the multifamily housing (G) Federal Home Loan Banks; and (ii) ACCUMULATED RESIDUAL RECEIPTS.—The projects in the demonstration, to test various ap- (H) other State or local mortgage insurance Secretary or designee may require an owner of a proaches for restructuring mortgages to reduce companies or bank lending consortia. property assisted under the section 8 new con- the financial risk to the FHA Insurance Fund (e) LONG-TERM AFFORDABILITY.— struction/substantial rehabilitation program while reducing the cost of section 8 subsidies, (1) IN GENERAL.—After the renewal of a sec- under the United States Housing Act of 1937 to and to test the feasibility and desirability of— tion 8 contract pursuant to a restructuring apply any accumulated residual receipts toward (A) ensuring, to the maximum extent prac- under this section, the owner shall accept each effecting the purposes of this section. ticable, that the debt service and operating ex- offer to renew the section 8 contract, for a pe- (B) REINSURANCE.—With respect to not more penses, including adequate reserves, attributable riod of 20 years from the date of the renewal than 5,000 units within the demonstration dur- to such multifamily projects can be supported at under the demonstration, if the offer to renew is ing fiscal year 1997, the Secretary may enter the comparable market rent with or without on terms and conditions, as agreed to by Sec- into contracts to purchase reinsurance, or enter into participations or otherwise transfer eco- mortgage insurance under the National Housing retary or designee and the owner under a re- nomic interest in contracts of insurance or in Act and with or without additional section 8 structuring. the premiums paid, or due to be paid, on such rental subsidies; (2) AFFORDABILITY REQUIREMENTS.—Except as insurance, on such terms and conditions as the (B) utilizing section 8 rental assistance, while otherwise provided by the Secretary, in ex- Secretary may determine. Any contract entered taking into account the capital needs of the change for any mortgage restructuring under into under this paragraph shall require that projects and the need for adequate rental assist- this section, a project shall remain affordable any associated units be maintained as low-in- ance to support the low- and very low-income for a period of not less than 20 years. Afford- come units for the life of the mortgages, unless families residing in such projects; and ability requirements shall be determined in ac- waived by the Secretary for good cause. (C) preserving low-income rental housing af- cordance with guidelines established by the Sec- (C) PARTICIPATION BY THIRD PARTIES.—The retary or designee. The Secretary or designee fordability and availability while reducing the Secretary or designee may enter into such agree- may waive these requirements for good cause. long-term cost of section 8 rental assistance. ment, provide such concessions, incur such (f) PROCEDURES.— (c) GOALS.— costs, make such grants (including grants to (1) IN GENERAL.—The Secretary shall carry (1) NOTICE OF PARTICIPATION IN DEMONSTRA- cover all or a portion of the rehabilitation costs out the demonstration program in a manner TION.—Not later than 45 days before the date of expiration of an expiring contract (or such later for a project) and other payments, and provide that will protect the financial interests of the other valuable consideration as may reasonably date, as determined by the Secretary, for good Federal Government through debt restructuring be necessary for owners, lenders, services, third cause), the owner of the multifamily housing and subsidy reduction and, in the least costly parties, and other entities to participate in the project covered by that expiring contract shall fashion, address the goals of— demonstration program. The Secretary may es- notify the Secretary or designee and the resi- (A) maintaining existing affordable housing tablish performance incentives for designees. dents of the owner’s intent to participate in the stock in a decent, safe, and sanitary condition; (D) SECTION 8 ADMINISTRATIVE FEES.—Not- (B) minimizing the involuntary displacement demonstration program. withstanding any other provision of law, the of tenants; (2) DEMONSTRATION CONTRACT.—Upon receipt Secretary may make fees available from the sec- (C) taking into account housing market condi- of a notice under paragraph (1), the owner and tion 8 contract renewal appropriation to a des- tions; the Secretary or designee shall enter into a dem- ignee for contract administration under section (D) encouraging responsible ownership and onstration contract, which shall provide for ini- 8 of the United States Housing Act of 1937 for management of property; tial section 8 project-based rents at the same purposes of any contract restructured or re- (E) minimizing any adverse income tax impact rent levels as those under the expiring contract newed under the demonstration program. on property owners; and or, if practical, the budget-based rent to cover (E) FULL OR PARTIAL PAYMENT OF CLAIM.— (F) minimizing any adverse impacts on resi- debt service, reasonable operating expenses (in- Notwithstanding any other provision of law, the dential neighborhoods and local communities. cluding reasonable and appropriate services), Secretary may make a full payment of claim or (2) BALANCE OF COMPETING GOALS.—In deter- and a reasonable return to the owner, as deter- partial payment of claim prior to default. mining the manner in which a mortgage is to be mined solely by the Secretary. The demonstra- (F) CREDIT ENHANCEMENT.— restructured or a subsidy reduced under this tion contract shall be for the minimum term nec- (i) IN GENERAL.—The Secretary or designee subsection, the Secretary may balance compet- essary for the rents and mortgages of the multi- may provide FHA multifamily mortgage insur- ing goals relating to individual projects in a family housing project to be restructured under ance, reinsurance, or other credit enhancement manner that will further the purposes of this the demonstration program, but shall not be for alternatives, including retaining the existing section. a period of time to exceed 180 days, unless ex- FHA mortgage insurance on a restructured first (d) PARTICIPATION ARRANGEMENTS.— tended for good cause by the Secretary. mortgage at market value or using the multifam- (1) IN GENERAL.—In carrying out the dem- (g) PROJECT-BASED SECTION 8.—The Secretary ily risk-sharing mortgage programs, as provided onstration program, the Secretary may enter shall renew all expiring contracts under the under section 542 of the Housing and Commu- into participation arrangements with designees, demonstration as section 8 project-based con- nity Development Act of 1992. Any limitations under which the Secretary may provide for the tracts, for a period of time not to exceed 1 year, on the number of units available for mortgage assumption by designees (by delegation, by con- unless otherwise provided under subsection (h). insurance under section 542 shall not apply to tract, or otherwise) of some or all of the func- (h) DEMONSTRATION ACTIONS.— insurance issued for purposes of the demonstra- tions, obligations, responsibilities and benefits (1) DEMONSTRATION ACTIONS.—For purposes of tion program. of the Secretary. carrying out the demonstration program, and in (ii) MAXIMUM PERCENTAGE.—During fiscal (2) DESIGNEES.—In entering into any arrange- order to ensure that contract rights are not ab- year 1997, not more than 25 percent of the units ment under this subsection, the Secretary shall rogated, subject to such third party consents as in multifamily housing projects with expiring select state housing finance agencies, housing are necessary (if any), including consent by the contracts in the demonstration, in the aggre- agencies or nonprofits (separately or in conjunc- Government National Mortgage Association if it gate, may be restructured without FHA insur- tion with each other) to act as designees to the owns a mortgage insured by the Secretary, con- ance, unless otherwise agreed to by the owner of extent such agencies are determined to be quali- sent by an issuer under the mortgage-backed se- a project. fied by the Secretary. In locations where there is curities program of the Association, subject to (iii) CREDIT SUBSIDY.—Any credit subsidy no qualified state housing finance agency, the responsibilities of the issuer to its security costs of providing mortgage insurance shall be H10738 CONGRESSIONAL RECORD — HOUSE September 20, 1996 paid from amounts made available under sub- Appropriations Act, 1996 (110 Stat. 1321), for the (2) HOPWA.—The Secretary may transfer to section (l). costs (including any credit subsidy costs associ- the Housing Opportunities For Persons With (G) MORTGAGE RESTRUCTURING.— ated with providing direct loans or mortgage in- AIDS account up to $25,000,000, for use in addi- (i) IN GENERAL.—The Secretary or designee surance) of modifying and restructuring loans tion to amounts appropriated in such account. may restructure mortgages to provide a restruc- held or guaranteed by the Federal Housing Ad- And the Senate agree to the same. tured first mortgage to cover debt service and ministration, as authorized under this section, Amendment numbered 47: operating expenses (including a reasonable rate $10,000,000 is hereby appropriated, to remain That the House recede from its disagree- of return to the owner) at the market rent, and available until September 30, 1998. ment to the amendment of the Senate num- a second mortgage equal to the difference be- (m) REPORT TO CONGRESS.— bered 47, and agree to the same with an tween the restructured first mortgage and the (1) IN GENERAL.— amendment, as follows: mortgage balance of the eligible multifamily (A) QUARTERLY REPORTS.—Not less than every In lieu of the matter inserted by said housing project at the time of restructuring. 3 months, the Secretary shall submit to the Con- amendment, insert the following: (ii) CREDIT SUBSIDY.—Any credit subsidy costs gress a report describing and assessing the sta- SEC. 218. ACCOUNT TRANSITION. of providing a second mortgage shall be paid tus of the projects in the demonstration pro- The amounts of obligated balances in appro- from amounts made available under subsection gram. priations accounts, as set forth in title II of the (l). (B) FINAL REPORT.—Not later than 6 months Departments of Veterans Affairs and Housing (H) DEBT FORGIVENESS.—The Secretary or des- after the end of the demonstration program, the and Urban Development, and Independent ignee, for good cause and at the request of the Secretary shall submit to the Congress a final Agencies Appropriations Act, 1996 and prior owner of a multifamily housing project, may report on the demonstration program. Acts that are recaptured hereafter, to the extent forgive at the time of the restructuring of a (2) CONTENTS.—Each report submitted under not governed by the specific language in an ac- mortgage any portion of a debt on the project paragraph (1)(A) shall include a description count or provision in this Act, shall be held in that exceeds the market value of the project. of— reserve subject to reprogramming, notwithstand- (I) BUDGET-BASED RENTS.—The Secretary or (A) each restructuring proposal submitted by ing any other provision of law. designee may renew an expiring contract, in- an owner of a multifamily housing project, in- SEC. 219. TREATMENT OF CERTAIN PROPERTIES. cluding a contract for a project in which operat- cluding a description of the physical, financial, Notwithstanding any other provision of law, ing costs exceed comparable market rents, for a tenancy, and market characteristics of the rehabilitation activities undertaken in projects period of not more than 1 year, at a budget- project; using the Low-Income Housing Tax Credit allo- based rent that covers debt service, reasonable (B) the Secretary’s evaluation and reasons for cated to developments in the City of New Bruns- operating expenses (including all reasonable each multifamily housing project selected or re- wick, New Jersey, in 1991, are deemed to have and appropriate services), and a reasonable rate jected for participation in the demonstration met the requirements for rehabilitation in ac- of return to the owner, as determined solely by program; cordance with clause (ii) of the third sentence of the Secretary, provided that the contract does (C) the costs to the FHA General Insurance section 8(d)(2)(A) of the United States Housing not exceed the rent levels under the expiring and Special Risk Insurance funds; contract. The Secretary may establish a pref- (D) the subsidy costs provided before and after Act of 1937, as in effect before the date of the erence under the demonstration program for restructuring; enactment of this Act. budget-based rents for unique housing projects, (E) the actions undertaken in the demonstra- SEC. 220. AMENDMENT RELATING TO COMMUNITY such as projects designated for occupancy by el- tion program, including the third party arrange- DEVELOPMENT ASSISTANCE. derly families and projects in rural areas. ments made; and Section 105(a) of the Housing and Community (J) SECTION 8 TENANT-BASED ASSISTANCE.—For (F) the demonstration program’s impact on Development Act of 1974 (42 U.S.C. 5305(a)(8)) is not more than 10 percent of units in multifamily the owners of the projects, including any tax amended by striking ‘‘through 1997’’ and insert- housing projects that have had their mortgages consequences. ing ‘‘through 1998’’. restructured in any fiscal year under the dem- (3) CONTENTS OF FINAL REPORT.—The report SEC. 221. SECTION 236 PROGRAM AMENDMENTS. onstration, the Secretary or designee may pro- submitted under paragraph (1)(B) shall in- (a) Section 236(f)(1) of the National Housing vide, with the agreement of an owner and in clude— Act (12 U.S.C. 1715z-1), as amended by section consultation with the tenants of the housing, (A) the required contents under paragraph 405(d)(1) of the Balanced Budget Downpayment section 8 tenant-based assistance for some or all (2); and Act, I, and by section 228(a) of The Balanced of the assisted units in a multifamily housing (B) any findings and recommendations for Budget Downpayment Act, II, is amended— project in lieu of section 8 project-based assist- legislative action. (1) in the second sentence, by striking ‘‘the ance. Section 8 tenant-based assistance may And the Senate agree to the same. lower of (i)’’; only be provided where the Secretary determines Amendment numbered 43: (2) in the second sentence, by striking ‘‘or (ii) and certifies that there is adequate available That the House recede from its disagree- the fair market rental established under section and affordable housing within the local area ment to the amendment of the Senate num- 8(c) of the United States Housing Act of 1937 for and that tenants will be able to use the section bered 43, and agree to the same with an the market area in which the housing is located, 8 tenant-based assistance successfully. amendment, as follows: or (iii) the actual rent (as determined by the (2) OFFER AND ACCEPTANCE.—Notwithstanding In lieu of the matter inserted by said Secretary) paid for a comparable unit in com- any other provision of law, an owner of a amendment, insert the following: parable unassisted housing in the market area project in the demonstration must accept any SEC. 214. USES OF CERTAIN ASSISTED HOUSING in which the housing assisted under this section reasonable offer made by the Secretary or a des- AMOUNTS. is located, ’’; and ignee under this subsection. An owner may ap- (a) TRANSFER AUTHORITY.—The Secretary (3) by inserting after the second sentence the peal the reasonableness of any offer to the Sec- may transfer recaptured section 8 amounts from following: retary and the Secretary shall respond within 30 the Annual Contributions for Assisted Housing ‘‘However, in the case of a project which con- days of the date of appeal with a final offer. If account under Public Law 104–134 (approved tains more than 5,000 units, is subject to an in- the final offer is not acceptable, the owner may April 26, 1996; 110 Stat. 1321, 1321–265) and prior terest reduction payments contract, and is fi- opt out of the program. laws to the accounts and for the purposes set nanced under a State or local program, the Sec- (i) COMMUNITY AND TENANT INPUT.—In carry- forth in subsection (b). The amounts transferred retary may reduce the rental charge ceiling, but ing out this section, the Secretary shall develop under this section shall be made available for in no case shall the rent be below basic rent. For procedures to provide appropriate and timely use as prescribed under this section notwith- plans of action approved for Capital Grants notice, including an opportunity for comment standing section 8(bb) of the United States under the Low-Income Housing Preservation and timely access to all relevant information, to Housing Act of 1937. and Resident Homeownership Act of 1990 officials of the unit of general local government (b) RECEIVING ACCOUNTS.— (LIHPRHA) or the Emergency Low Income affected, the community in which the project is (1) PREVENTION OF RESIDENT DISPLACEMENT.— Housing Preservation Act of 1987 (ELIHPA), the situated, and the tenants of the project. The Secretary may transfer to the Prevention of rental charge for each dwelling unit shall be at (j) TRANSFER OF PROPERTY.—The Secretary Resident Displacement account an amount up to the basic rental charge or such greater amount, shall establish procedures to facilitate the vol- $50,000,000, in addition to amounts in such ac- not exceeding the lower of (i) the fair market untary sale or transfer of multifamily housing count, that may be used to renew, under exist- rental charge determined pursuant to this para- projects under the demonstration to tenant or- ing terms and conditions, existing project-based graph, or (ii) the actual rent paid for a com- ganizations and tenant-endorsed community- section 8 contracts in effect before a Plan of Ac- parable unit in comparable unassisted housing based nonprofit and public agency purchasers tion was approved, so that these contracts ex- in the market area in which the housing as- meeting such reasonable qualifications as may pire 5 years from the date on which funds were sisted under this section is located, as represents be established by the Secretary. obligated for the Plan of Action approved under 30 percent of the tenant’s adjusted income, but (k) LIMITATION ON DEMONSTRATION AUTHOR- the Low Income Housing Preservation and Resi- in no case shall the rent be below basic rent.’’. ITY.—The Secretary shall carry out the dem- dent Homeownership Act of 1990 or the Emer- (b) Section 236(b) of the National Housing Act onstration program with respect to mortgages gency Low-Income Housing Preservation Act of is amended by adding the following new para- not to exceed 50,000 units. 1987. The Secretary shall transfer all amounts graph at the end: (l) FUNDING.—In addition to the $30,000,000 that the Secretary determines to be necessary for ‘‘(7) The Secretary shall determine whether made available under section 210 of the Depart- fiscal year 1997 for the purposes of this para- and under what conditions the provisions of ments of Veterans Affairs and Housing and graph before transferring any amounts under this subsection shall apply to mortgages sold by Urban Development and Independent Agencies any other paragraph in this subsection. the Secretary on a negotiated basis.’’. September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10739 (c) Section 236(g) of the National Housing Act cordance with the terms and conditions speci- Amendment numbered 91: is amended to read as follows: fied for such grants in the conference report and That the House recede from its disagree- ‘‘(g) The project owner shall, as required by joint explanatory statement of the committee of ment to the amendment of the Senate num- the Secretary, accumulate, safeguard, and peri- conference accompanying this Act (H.R. 3666); ; bered 91, and agree to the same with an odically pay the Secretary or such other entity and the Senate agree to the same. amendment, as follows: as determined by the Secretary and upon such Amendment numbered 72: In lieu of the sum proposed by said amend- terms and conditions as the Secretary deems ap- That the House recede from its disagree- ment, insert: $619,000,000; and the Senate propriate, all rental charges collected on a unit- ment to the amendment of the Senate num- agree to the same. by-unit basis in excess of the basic rental bered 72, and agree to the same with an Amendment numbered 95: charges. Unless otherwise directed by the Sec- amendment, as follows: That the House recede from its disagree- retary, such excess charges shall be credited to In lieu of the sum proposed by said amend- ment to the amendment of the Senate num- a reserve fund to be used by the Secretary to ment, insert: $1,900,000,000; and the Senate bered 95, and agree to the same with an make additional assistance payments as pro- agree to the same. amendment, as follows: vided in paragraph (3) of subsection (f). How- Amendment numbered 80: In lieu of the matter proposed by said ever, a project owner with a mortgage insured That the House recede from its disagree- amendment, insert: under this section may retain some or all of such ment to the amendment of the Senate num- SEC. 421. (a) The purpose of this section is to excess charges for project use if authorized by bered 80, and agree to the same with an provide for the special needs of certain children the Secretary and upon such terms and condi- amendment, as follows: of Vietnam veterans who were born with the tions as established by the Secretary.’’. In lieu of the matter proposed by said birth defect spina bifida, possibly as the result And, the matter under the heading ‘‘Fair amendment, insert: : Provided, That notwith- of the exposure of one or both parents to herbi- housing and equal opportunity, fair housing standing any other provision of this paragraph, cides during active service in the Republic of activities’’, on page 35, line 22, through page amounts appropriated herein shall be available Vietnam during the Vietnam era, through the 36, line 5 of the House engrossed bill is for obligation on October 1, 1996: Provided fur- provision of health care and monetary benefits. amended to read as follows: For contracts, ther, That the Director of the Federal Emer- (b)(1) Part II of title 38, United States Code, is grants, and other assistance, not otherwise pro- gency Management Agency (FEMA) shall sub- amended by inserting after chapter 17 the fol- vided for, as authorized by title VIII of the Civil mit to the appropriate committees of Congress lowing new chapter: Rights Act of 1968, as amended by the Fair within 120 days of enactment of this Act a com- ‘‘CHAPTER 18—BENEFITS FOR CHILDREN Housing Amendments Act of 1988, and section prehensive report on FEMA’s plans to reduce OF VIETNAM VETERANS WHO ARE BORN 561 of the Housing and Community Development disaster relief expenditures and improve man- WITH SPINA BIFIDA agement controls on the Disaster Relief Fund; Act of 1987, as amended, $30,000,000, to remain ‘‘Sec. and the Senate agree to the same. available until September 30, 1998, of which ‘‘1801. Definitions. Amendment numbered 81: $15,000,000 shall be to carry out activities pursu- ‘‘1802. Spina bifida conditions covered. That the House recede from its disagree- ant to section 561. No funds made available ‘‘1803. Health care. ment to the amendment of the Senate num- under this heading shall be used to lobby the ex- ‘‘1804. Vocational training and rehabilitation. bered 81, and agree to the same with an ecutive or legislative branches of the Federal ‘‘1805. Monetary allowance. Government in connection with a specific con- amendment, as follows: ‘‘1806. Effective date of awards. tract, grant or loan. In lieu of the sum proposed by said amend- ‘‘§ 1801. Definitions And the Senate agree to the same. ment, insert: $167,500,000; and the Senate Amendment numbered 57: agree to the same. ‘‘For the purposes of this chapter— That the House recede from its disagree- Amendment numbered 83: ‘‘(1) The term ‘child’, with respect to a Viet- ment to the amendment of the Senate num- That the House recede from its disagree- nam veteran, means a natural child of the Viet- bered 57, and agree to the same with an ment to the amendment of the Senate num- nam veteran, regardless of age or marital status, amendment, as follows: bered 83, and agree to the same with an who was conceived after the date on which the In lieu of the matter stricken and inserted amendment, as follows: veteran first entered the Republic of Vietnam by said amendment, insert: $542,000,000; and In Lieu of the sum proposed by said amend- during the Vietnam era. the Senate agree to the same. ment, insert: $206,701,000; and the Senate ‘‘(2) The term ‘Vietnam veteran’ means a vet- Amendment numbered 58: agree to the same. eran who performed active military, naval, or That the House recede from its disagree- Amendment numbered 84: air service in the Republic of Vietnam during ment to the amendment of the Senate num- That the House recede from its disagree- the Vietnam era. bered 58, and agree to the same with an ment to the amendment of the Senate num- ‘‘§ 1802. Spina bifida conditions covered bered 84, and agree to the same with an amendment, as follows: ‘‘This chapter applies with respect to all forms amendment, as follows: In lieu of the matter stricken and inserted and manifestations of spina bifida except spina In lieu of the matter proposed by said by said amendment, insert: $1,710,000,000; and bifida occulta. the Senate agree to the same. amendment, insert: The first sentence of sec- Amendment numbered 59: tion 1376(c) of the National Flood Insurance Act ‘‘§ 1803. Health care That the House recede from its disagree- of 1968, as amended (42 U.S.C. 4127(c)), is ‘‘(a) In accordance with regulations which ment to the amendment of the Senate num- amended by striking all after ‘‘this subsection’’ the Secretary shall prescribe, the Secretary shall bered 59, and agree to the same with an and inserting ‘‘such sums as may be necessary provide a child of a Vietnam veteran who is suf- amendment, as follows: through September 30, 1997 for studies under fering from spina bifida with such health care In lieu of the sum proposed by said amend- this title.’’. as the Secretary determines is needed by the ment, insert: $87,220,000; and the Senate And the Senate agree to the same. child for the spina bifida or any disability that agree to the same. Amendment numbered 89: is associated with such condition. Amendment numbered 67: That the House recede from its disagree- ‘‘(b) The Secretary may provide health care That the House recede from its disagree- ment to the amendment of the Senate num- under this section directly or by contract or ment to the amendment of the Senate num- bered 89, and agree to the same with an other arrangement with any health care pro- bered 67, and agree to the same with an amendment, as follows: vider. amendment, as follows: In lieu of the matter inserted by said ‘‘(c) For the purposes of this section— In lieu of the sum proposed by said amend- amendment, insert the following: Upon the ‘‘(1) The term ‘health care’— ment, insert: $2,875,207,000; and the Senate determination by the Administrator that such ‘‘(A) means home care, hospital care, nursing agree to the same. action is necessary, the Administrator may, with home care, outpatient care, preventive care, Amendment numbered 68: the approval of the Office of Management and habilitative care, case management, and respite That the House recede from its disagree- Budget, transfer not to exceed $177,000,000 of care; and ment to the amendment of the Senate num- funds made available in this Act to the National ‘‘(B) includes— bered 68, and agree to the same with an Aeronautics and Space Administration for the ‘‘(i) the training of appropriate members of a amendment, as follows: International Space Station between ‘‘Science, child’s family or household in the care of the In lieu of the sum proposed by said amend- aeronautics and technology’’ and ‘‘Human child; and ment, insert: $1,900,000,000; and the Senate space flight’’, to be merged with and to be avail- ‘‘(ii) the provisions of such pharmaceuticals, agree to the same. able for the same purposes, and for the same supplies, equipment, devices, appliances, Amendment numbered 70: time period, as the appropriation to which assistive technology, direct transportation costs That the House recede from its disagree- transferred: Provided, That such authority to to and from approved sources of health care, ment to the amendment of the Senate num- transfer may not be used unless for higher prior- and other materials as the Secretary determines bered 70, and agree to the same with an ity items than those for which originally appro- necessary. amendment, as follows: priated: Provided further, That the Adminis- ‘‘(2) The term ‘health care provider’ includes Restore the matter stricken by said trator of the National Aeronautics and Space specialized spina bifida clinics, health care amendment, amended to read as follows: Administration shall notify the Congress plans, insurers, organizations, institutions, and $136,000,000 for making grants for the construc- promptly of all transfers made pursuant to this any other entity or individual who furnishes tion of wastewater and water treatment facili- authority. health care that the Secretary determines au- ties and the development of groundwater in ac- And the Senate agree to the same. thorized under this section. H10740 CONGRESSIONAL RECORD — HOUSE September 20, 1996 ‘‘(3) The term ‘home care’ means outpatient rently. The child shall elect (in such form and such additional disability or death were service- care, habilitative and rehabilitative care, pre- manner as the Secretary may prescribe) the pro- connected. For purposes of this section, a dis- ventive health services, and health-related serv- gram under which the child is to receive assist- ability or death is a qualifying additional dis- ices furnished to an individual in the individ- ance. ability or qualifying death if the disability or ual’s home or other place of residence. ‘‘(2) The aggregate period for which a child death was not the result of the veteran’s willful ‘‘(4) The term ‘hospital care’ means care and may receive assistance under this section and misconduct and— treatment for a disability furnished to an indi- chapter 35 of this title may not exceed 48 months ‘‘(1) the disability or death was caused by vidual who has been admitted to a hospital as (or the part-time equivalent thereof). hospital care, medical or surgical treatment, or a patient. ‘‘§ 1805. Monetary allowance examination furnished the veteran under any ‘‘(5) The term ‘nursing home care’ means care law administered by the Secretary, either by a ‘‘(a) The Secretary shall pay a monthly allow- and treatment for a disability furnished to an Department employee or in a Department facil- ance under this chapter to any child of a Viet- individual who has been admitted to a nursing ity as defined in section 1701(3)(A) of this title, nam veteran for any disability resulting from home as a resident. and the proximate cause of the disability or spina bifida suffered by such child. ‘‘(6) The term ‘outpatient care’ means care death was— ‘‘(b)(1) The amount of the allowance paid to and treatment of a disability, and preventive a child under this section shall be based on the ‘‘(A) carelessness, negligence, lack of proper health services, furnished to an individual other degree of disability suffered by the child, as de- skill, error in judgment, or similar instance of than hospital care or nursing home care. termined in accordance with such schedule for fault on the part of the Department in furnish- ‘‘(7) The term ‘preventive care’ means care rating disabilities resulting from spina bifida as ing the hospital care, medical or surgical treat- and treatment furnished to prevent disability or the Secretary may prescribe. ment, or examination; or illness, including periodic examinations, immu- ‘‘(2) The Secretary shall, in prescribing the ‘‘(B) an event not reasonably foreseeable; or nizations, patient health education, and such rating schedule for the purposes of this section, ‘‘(2) the disability or death was proximately other services as the Secretary determines nec- establish three levels of disability upon which caused by the provision of training and rehabili- essary to provide effective and economical pre- the amount of the allowance provided by this tation services by the Secretary (including by a ventive health care. section shall be based. service-provider used by the Secretary for such ‘‘(8) The term ‘habilitative and rehabilitative ‘‘(3) The amounts of the allowance shall be purpose under section 3115 of this title) as part care’ means such professional, counseling, and $200 per month for the lowest level of disability of an approved rehabilitation program under guidance services and treatment programs (other prescribed, $700 per month for the intermediate chapter 31 of this title.’’; and than vocational training under section 1804 of level of disability prescribed, and $1,200 per (2) in the second sentence— this title) as are necessary to develop, maintain, month for the highest level of disability pre- (A) by redesignating that sentence as sub- or restore, to the maximum extent practicable, scribed. Such amounts are subject to adjustment section (b); the functioning of a disabled person. under section 5312 of this title. (B) by striking out ‘‘, aggravation,’’ both ‘‘(9) The term ‘respite care’ means care fur- ‘‘(c) Notwithstanding any other provision of places it appears; and nished on an intermittent basis for a limited pe- law, receipt by a child of an allowance under (C) by striking out ‘‘sentence’’ and substitut- riod to an individual who resides primarily in a this section shall not impair, infringe, or other- ing in lieu thereof ‘‘subsection’’. private residence when such care will help the wise affect the right of the child to receive any (b)(1) The amendments made by subsection (a) individual to continue residing in such private other benefit to which the child may otherwise shall take effect on October 1, 1996. residence. be entitled under any law administered by the (2) Section 1151 of title 38, United States Code ‘‘§ 1804. Vocational training and rehabilita- Secretary, nor shall receipt of such an allow- (as amended by subsection (a)), shall govern all tion ance impair, infringe, or otherwise affect the administrative and judicial determinations of ‘‘(a) Pursuant to such regulations as the Sec- right of any individual to receive any benefit to eligibility for benefits under such section that retary may prescribe, the Secretary may provide which the individual is entitled under any law are made with respect to claims filed on or after vocational training under this section to a child administered by the Secretary that is based on the effective date set forth in paragraph (1), in- of a Vietnam veteran who is suffering from the child’s relationship to the individual. cluding those based on original applications and spina bifida if the Secretary determines that the ‘‘(d) Notwithstanding any other provision of applications seeking to reopen, revise, recon- achievement of a vocational goal by such child law, the allowance paid to a child under this sider, or otherwise readjudicate on any basis is reasonably feasible. section shall not be considered income or re- claims for benefits under such section 1151 or ‘‘(b) Any program of vocational training for a sources in determining eligibility for or the any provision of law that is a predecessor of child under this section shall be designed in amount of benefits under any Federal or feder- such section. consultation with the child in order to meet the ally assisted program. (c) Notwithstanding subsection (b)(1), section 421(d), or any other provision of this Act, sec- child’s individual needs and shall be set forth in ‘‘§ 1806. Effective date of awards an individualized written plan of vocational re- tion 421 and this section shall not take effect ‘‘The effective date for an award of benefits habilitation. until October 1, 1997, unless legislation other under this chapter shall be fixed in accordance ‘‘(c)(1) A vocational training program for a than this Act is enacted to provide for a earlier with the facts found, but shall not be earlier child under this section— effective date. ‘‘(A) shall consist of such vocationally ori- than the date of receipt of application for the And the Senate agree to the same. ented services and assistance, including such benefits.’’. Amendment numbered 102: (2) The tables of chapters before part I and at placement and post-placement services and per- That the House recede from its disagree- the beginning of part II of such title are each sonal and work adjustment training, as the Sec- ment to the amendment of the Senate num- amended by inserting after the item referring to retary determines are necessary to enable the bered 102, and agree to the same with an chapter 17 the following new item: child to prepare for and participate in voca- amendment, as follows: tional training or employment; and ‘‘18. Benefits for Children of Viet- Restore the matter stricken by said ‘‘(B) may include a program of education at nam Veterans Who Are Born With amendment, amended to read as follows: an institution of higher education if the Sec- Spina Bifida ...... 1801’’. SEC. 427. The amount provided in title I for retary determines that the program of education (c) Section 5312 of title 38, United States Code, ‘‘Veterans Health Administration—Medical is predominantly vocational in content. is amended— Care’’ is hereby increased by $5,000,000. ‘‘(2) A vocational training program under this (1) in subsection (a)— And the Senate agree to the same. subsection may not include the provision of any (A) by striking out ‘‘and the rate of increased Amendment numbered 105: loan or subsistence allowance or any automobile pension’’ and inserting in lieu thereof ‘‘, the That the House recede from its disagree- adaptive equipment. rate of increased pension’’; and ment to the amendment of the Senate num- ‘‘(d)(1) Except as provided in paragraph (2) (B) by inserting after ‘‘on account of chil- ber 105, and agree to the same with an and subject to subsection (e)(2), a vocational dren,’’ the following: ‘‘and each rate of monthly amendment, as follows: training program under this section may not ex- allowance paid under section 1805 of this title,’’; In lieu of the matter stricken and inserted ceed 24 months. and by said amendment, insert the following: ‘‘(2) The Secretary may grant an extension of (2) in subsection (c)(1), by striking out ‘‘and SEC. 432. CALCULATION OF DOWNPAYMENT.— a vocational training program for a child under 1542’’ and inserting in lieu thereof ‘‘1542, and Section 203(b) of the National Housing Act (12 this section for up to 24 additional months if the 1805’’. U.S.C. 1709(b)) is amended by adding at the end Secretary determines that the extension is nec- (d) This section and the amendments made by thereof the following new paragraph: essary in order for the child to achieve a voca- this section shall take effect on January 1, 1997. ‘‘(10) ALASKA AND HAWAII.— tional goal identified (before the end of the first SEC. 422. (a) Section 1151 of title 38, United ‘‘(A) IN GENERAL.—Notwithstanding any other 24 months of such program) in the written plan States Code, is amended— provision of this subsection, with respect to a of vocational rehabilitation formulated for the (1) by striking out the first sentence and in- mortgage originated in the State of Alaska or child pursuant to subsection (b). serting in lieu thereof the following: the State of Hawaii and endorsed for insurance ‘‘(e)(1) A child who is pursuing a program of ‘‘(a) Compensation under this chapter and de- in fiscal year 1997, involve a principal obligation vocational training under this section and is pendency and indemnity compensation under not in excess of the sum of— also eligible for assistance under a program chapter 13 of this title shall be awarded for a ‘‘(i) the amount of the mortgage insurance under chapter 35 of this title may not receive as- qualifying additional disability or a qualifying premium paid at the time the mortgage is in- sistance under both such programs concur- death of a veteran in the same manner as if sured; and September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10741 ‘‘(ii)(I) in the case of a mortgage for a prop- appropriate requirements and procedures, in- (2) shall be equal to the lesser of— erty with an appraised value equal to or less cluding requirements and procedures governing (A) an amount equal to the amount the em- than $50,000, 98.75 percent of the appraised the indemnification of the Secretary by the ployee would be entitled to receive under section value of the property; Mortgagee.’’. 5595(c) of title 5, United States Code, if the em- ‘‘(II) in the case of a mortgage for a property And the Senate agree to the same. ployee were entitled to payment under such sec- with an appraised value in excess of $50,000 but Amendment numbered 111: tion; or not in excess of $125,000, 97.65 percent of the ap- That the House recede from its disagree- (B) an amount that shall not exceed $25,000 praised value of the property. ment to the amendment of the Senate num- ‘‘(III) in the case of a mortgage for a property bered 111, and agree to the same with an (3) shall not be a basis for payment, and shall with an appraised value in excess of $125,000, amendment, as follows: not be included in the computation, of any 97.15 percent of the appraised value of the prop- In lieu of the matter inserted by said other type of Government benefit; erty; or amendment, insert the following: (4) shall not be taken into account for pur- ‘‘(IV) notwithstanding subclauses (II) and SEC. 438. None of the funds appropriated or poses of determining the amount of any sever- (III), in the case of a mortgage for a property otherwise made available to the National Aero- ance pay to which an individual may be entitled with an appraised value in excess of $50,000 that nautics and Space Administration by this Act, under section 5595 of title 5, United States Code, is located in an area of the State for which the or any other Act enacted before the date of en- based on any other separation; actment of this Act, may be used by the Admin- average closing cost exceeds 2.10 percent of the (5) shall be considered payment for a vol- istrator of the National Aeronautics and Space average, for the State, of the sale price of prop- untary separation; and erties located in the State for which mortgages Administration to relocate aircraft of the Na- have been executed, 97.75 percent of the ap- tional Aeronautics and Space Administration (6) shall be paid from the appropriations or praised value of the property. based east of the Mississippi River to the Dry- funds available for payment of the basic pay of ‘‘(B) AVERAGE CLOSING COST.—For purposes of den Flight Research Center in California for the the employee. this paragraph, the term ‘average closing cost’ purpose of the consolidation of such aircraft. SUBSECTION E. EFFECT OF SUBSEQUENT means, with respect to a State, the average, for And the Senate agree to the same. EMPLOYMENT WITH THE GOVERNMENT mortgages executed for properties that are lo- Amendment numbered 113: That the House recede from its disagree- (1) An individual who has received a vol- cated within the State, of the total amounts (as untary separation incentive payment under this determined by the Secretary) of initial service ment to the amendment of the Senate num- bered 113, and agree to the same with an section and accepts any employment with the charges, appraisal, inspection, and other fees Government of the United States within five (as the Secretary shall approve) that are paid in amendment, as follows: In lieu of the matter inserted by said years after the date of the separation on which connection with such mortgages.’’. the payment is based shall be required to repay, SEC. 433. DELEGATION OF SINGLE FAMILY amendment, insert the following: prior to the individual’s first day of employ- MORTGAGE INSURING AUTHORITY TO DIRECT EN- SEC. 439. To promote and support management ment, the entire amount of the incentive pay- DORSEMENT MORTGAGEES.—Title II of the Na- reorganization of the National Aeronautics and ment to NASA. tional Housing Act (12 U.S.C. 1707 et seq.) is Space Administration. Subsection may be cited amended by adding at the end the following as the ‘‘National Aeronautics and Space Admin- (2) If the employment under paragraph (1) new section: istration Federal Employment Reduction Assist- above is with an Executive agency (as defined ‘‘DELEGATION OF INSURING AUTHORITY TO DIRECT ance Act of 1996.’’ by section 105 of title 5, United States Code), the ENDORSEMENT MORTGAGEES SUBSECTION B. DEFINITIONS United States Postal Service, or the Postal Rate ‘‘SEC. 256. (a) AUTHORITY.—The Secretary (1) For the purposes of this section— Commission, the Director of the Office of Per- may delegate, to one or more mortgages ap- (a) the term ‘‘Administrator’’ means the Ad- sonnel Management may, at the request of the proved by the Secretary under the direct en- ministrator of the National Aeronautics and head of the agency, waive the repayment if the dorsement program, the authority of the Sec- Space Administration; and individual involved possesses unique abilities (b) the term ‘‘employee’’ means an employee of retary under this Act to insure mortgages in- and is the only qualified applicant available for the National Aeronautics and Space Adminis- volving property upon which there is located a the position. tration serving under an appointment without dwelling designed principally for occupancy by (3) If the employment under paragraph (1) time limitation, who has been currently em- 1 to 4 families. above is with an entity in the legislative branch, ‘‘(b) CONSIDERATIONS.—In determining wheth- ployed with NASA for a continuous period of at the head of the entity or the appointing official er to delegate authority to a mortgage under least 12 months, except that such term does not may waive the repayment if the individual in- this section, the Secretary shall consider the ex- include— volved possesses unique abilities and is the only (1) a reemployed annuitant under subchapter perience and performance of the mortgage com- qualified applicant available for the position. pared to the default rate of all insured mort- III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for (4) If the employment under paragraph (1) gages in comparable markets, and such other above is with the judicial branch, the Director factors as the Secretary determines appropriate employees of the Government; (2) an employee who is in receipt of a specific of the Administrative Office of the United States to minimize risk of loss to the insurance funds notice of involuntary separation for misconduct Courts may waive the repayment if the individ- under this Act. ual involved possesses unique abilities and is the ‘‘(c) ENFORCEMENT OF INSURANCE REQUIRE- or unacceptable performance; (3) an employee who, upon completing an ad- only qualified applicant available for the posi- MENTS.— tion. ‘‘(1) IN GENERAL.—If the Secretary determines ditional period of service as referred to in sec- that a mortgage insured by a mortgagee pursu- tion 3(b)(2)(B)(ii) of the Federal Workforce Re- (5) For the purpose of this section, the term ant to delegation of authority under this section structuring Act of 1994 (Public Law 103–226; 108 ‘‘employment’’— was not originated in accordance with the re- Stat. 111), would qualify for a voluntary separa- (a) includes employment of any length or quirements established by the Secretary, and the tion incentive payment under section 3 of such under any type of appointment, but does not in- Secretary pays an insurance claim with respect Act; or clude employment that is without compensation; to the mortgage within a reasonable period spec- (4) an employee who has previously received and ified by the Secretary, the Secretary may require any voluntary separation incentive payment by the Federal Government under this Act or any (b) includes employment under a personal the mortgagee approved under this section to in- services contract. demnify the Secretary for the loss. other authority and has not repaid such pay- SUBSECTION F. EFFECT OF SUBSEQUENT ‘‘(2) FRAUD OR MISREPRESENTATION.—If fraud ment. or misrepresentation was involved in connection SUBSECTION C. INCENTIVE PAYMENT PROGRAM DISABILITY RETIREMENT with the origination, the Secretary may require In order to avoid or minimize the need for in- An employee who has received an incentive the mortgagee approved under this section to in- voluntary separations due to a reduction in payment is ineligible to receive an annuity for demnify the Secretary for the loss regardless of force, installation closure, reorganization, reasons of disability under applicable regula- when an insurance claim is paid. transfer of function, or other similar action af- tions, unless the incentive payment is repaid. ‘‘(d) TERMINATION OF MORTGAGEE’S AUTHOR- fecting the National Aeronautics and Space Ad- SUBSECTION G. ADDITIONAL AGENCY ITY ministration, the Administrator shall establish a .—If a mortgagee to which the Secretary has CONTRIBUTIONS TO THE RETIREMENT FUND made a delegation under this section violates program under which separation pay, subject to the requirements and procedures established by the availability of appropriated funds, may be (1) In addition to any other payments which the Secretary or the Secretary determines that offered to encourage eligible employees to sepa- it is required to make under subchapter III of other good cause exists, the Secretary may can- rate from service voluntarily (whether by retire- chapter 83 or chapter 84 of title 5, United States cel a delegation of authority under this section ment or resignation). Code, NASA shall remit to the Office of Person- to the mortgagee by giving notice to the mortga- SUBSECTION D. INCENTIVE PAYMENTS nel Management for deposit in the Treasury of gee. Such a cancellation shall be effective upon In order to receive a voluntary separation in- the United States to the credit of the Civil Serv- receipt of the notice by the mortgagee or at a centive payment, an employee must separate ice Retirement and Disability Fund an amount later date specified by the Secretary. A decision voluntarily (whether by retirement or resigna- equal to 15 percent of the final basic pay of each by the Secretary to cancel a delegation shall be tion) during the period of time for which the employee who is covered under subchapter III of final and conclusive and shall not be subject to payment of incentives has been authorized for chapter 83 or chapter 84 of title 5 to whom a vol- judicial review. the employee under the agency plan. Such sepa- untary separation incentive has been paid ‘‘(e) REQUIREMENTS AND PROCEDURES.—Before ration payments— under this Act. approving a delegation under this section, the (1) shall be paid in a lump sum after the em- (2) For the purpose of this section, the term Secretary shall issue regulations establishing ployee’s separation, and ‘‘final basic pay’’, with respect to an employee, H10742 CONGRESSIONAL RECORD — HOUSE September 20, 1996

means the total amount of basic pay which market value in accordance with Federal ap- ‘‘SUBPART C—GENERAL PROVISIONS’’; would be payable for a year of service by such praisal standards and procedures. and employee, computed using the employee’s final (4) TREATMENT OF LEASES.—The Adminis- (5) by inserting after section 703 the following rate of basic pay, and, if last serving on other trator of GSA may treat a lease of the property new subpart: than a full time basis, with appropriate adjust- within such 20-year period as a reconveyance if ‘‘SUBPART B—OTHER REQUIREMENTS ment therefor. the Administrator determines that the lease is being used to avoid application of paragraph ‘‘SEC. 711. STANDARDS RELATING TO BENEFITS SUBSECTION H. REDUCTION OF AGENCY FOR MOTHERS AND NEWBORNS. (b)(2). EMPLOYMENT LEVELS ‘‘(a) REQUIREMENTS FOR MINIMUM HOSPITAL (5) DEPOSIT OF PROCEEDS.—The Administrator (1) Total full time equivalent employment in STAY FOLLOWING BIRTH.— of GSA shall deposit any proceeds received NASA shall be reduced by one for each separa- ‘‘(1) IN GENERAL.—A group health plan, and a under this subsection in the special account es- tion of an employee who receives a voluntary health insurance issuer offering group health tablished pursuant to section 204(h)(2) of the separation incentive payment under this Act. insurance coverage, may not— The reduction will be calculated by comparing Federal Property and Administrative Services ‘‘(A) except as provided in paragraph (2)— the agency’s full time equivalent employment for Act of 1949 (40 U.S.C. 485(h)(2)). ‘‘(i) restrict benefits for any hospital length of the fiscal year in which the voluntary separa- (c) The exact acreage and legal description of stay in connection with childbirth for the moth- tion payments are made with the authorized full the real property to be conveyed under sub- er or newborn child, following a normal vaginal time equivalent employment for the prior fiscal section (a) shall be determined by a survey satis- delivery, to less than 48 hours, or year. factory to the Administrator of GSA. The cost of ‘‘(ii) restrict benefits for any hospital length (2) The Office of Management and Budget the survey shall be borne by the City of Dow- of stay in connection with childbirth for the shall monitor and take appropriate action nec- ney, California. mother or newborn child, following a caesarean (d) The Administrator of GSA may require essary to ensure that the requirements of this section, to less than 96 hours; or such additional terms and conditions in connec- section are met. ‘‘(B) require that a provider obtain authoriza- (3) The President shall take appropriate ac- tion with the conveyance under subsection (a) tion from the plan or the issuer for prescribing tion to ensure that functions involving more as the Administrator of GSA considers appro- any length of stay required under subparagraph than 10 full time equivalent employees are not priate to protect the interests of the United (A) (without regard to paragraph (2)). converted to contracts by reason of the enact- States. ‘‘(2) EXCEPTION.—Paragraph (1)(A) shall not (e) If the City at any time after the convey- ment of this section, except in cases in which a apply in connection with any group health plan ance of the property under subsection (a) noti- cost comparison demonstrates such contracts or health insurance issuer in any case in which fies the Administrator of GSA that the City no would be to the advantage of the Government. the decision to discharge the mother or her new- longer wishes to retain the property, it may con- (4) The provisions of subsections (1) and (3) of born child prior to the expiration of the mini- vey the property under the terms of subsection this section may be waived upon a determina- mum length of stay otherwise required under (b), or, it may revert all right, title, and interest tion by the President that— paragraph (1)(A) is made by an attending pro- in and to the property (including any facilities, (1) the existence of a state of war or other na- vider in consultation with the mother. equipment, or fixtures conveyed, but excluding tional emergency so requires; or ‘‘(b) PROHIBITIONS.—A group health plan, (2) the existence of an extraordinary emer- the value of any improvements made to the and a health insurance issuer offering group gency which threatens life, health, safety, prop- property by the City) to the United States, and health insurance coverage in connection with a erty, or the environment so requires. the United States shall have the right of imme- group health plan, may not— diate entry onto the property. ‘‘(1) deny to the mother or her newborn child SUBSECTION I. REPORTS And the Senate agree to the same. No later than March 31 of each fiscal year, eligibility, or continued eligibility, to enroll or to Amendment numbered 117: renew coverage under the terms of the plan, NASA shall submit to the Office of Personnel That the House recede from its disagree- solely for the purpose of avoiding the require- Management, who will subsequently report to ment to the amendment of the Senate num- ments of this section; the Committee on Governmental Affairs of the bered 117, and agree to the same with an Senate and the Committee on Government Re- ‘‘(2) provide monetary payments or rebates to amendment, as follows: mothers to encourage such mothers to accept form and Oversight of the House of Representa- In lieu of the matter proposed by said less than the minimum protections available tives a report which, with respect to the preced- amendment, insert: ing fiscal year, shall include— under this section; TITLE VI—NEWBORNS’ AND MOTHERS’ ‘‘(3) penalize or otherwise reduce or limit the (1) the number of employees who received vol- HEALTH PROTECTION ACT OF 1996 reimbursement of an attending provider because untary separation incentives; SEC. 601. SHORT TITLE. such provider provided care to an individual (2) the average amount of such incentives; This title may be cited as the ‘‘Newborns’ and participant or beneficiary in accordance with and, (3) the average grade or pay level of the em- Mothers’ Health Protection Act of 1996’’. this section; ‘‘(4) provide incentives (monetary or other- ployees who received incentives. SEC. 602. FINDING. Congress finds that— wise) to an attending provider to induce such SUBSECTION J. EFFECTIVE DATE (1) the length of post-delivery hospital stay provider to provide care to an individual partici- (1) The provisions of this section shall take ef- should be based on the unique characteristics of pant or beneficiary in a manner inconsistent fect on the date of enactment of this section. each mother and her newborn child, taking into with this section; or (2) No voluntary separation incentive under consideration the health of the mother, the ‘‘(5) subject to subsection (c)(3), restrict bene- this section may be paid based on the separation health and stability of the newborn, the ability fits for any portion of a period within a hospital of an employee after September 30, 2000. and confidence of the mother and the father to length of stay required under subsection (a) in SEC. 440. (a) Subject to the concurrence of the care for their newborn, the adequacy of support a manner which is less favorable than the bene- Administrator of the General Services Adminis- systems at home, and the access of the mother fits provided for any preceding portion of such tration (GSA) and notwithstanding section 707 and her newborn to appropriate follow-up stay. of Public Law 103–433, the Administrator of the health care; and ‘‘(c) RULES OF CONSTRUCTION.— National Aeronautics and Space Administration (2) the timing of the discharge of a mother ‘‘(1) Nothing in this section shall be construed may convey to the city of Downey, California, and her newborn child from the hospital should to require a mother who is a participant or ben- all right, title, and interest of the United States be made by the attending provider in consulta- eficiary— in and to a parcel of real property, including tion with the mother. ‘‘(A) to give birth in a hospital; or improvements thereon, consisting of approxi- ‘‘(B) to stay in the hospital for a fixed period mately 60 acres and known as Parcels III, IV, V, SEC. 603. AMENDMENTS TO THE EMPLOYEE RE- TIREMENT INCOME SECURITY ACT of time following the birth of her child. and VI of the NASA Industrial Plant, Downey, OF 1974 ‘‘(2) This section shall not apply with respect California. (a) IN GENERAL.—Part 7 of subtitle B of title to any group health plan, or any group health (b)(1) DELAY IN PAYMENT OF CONSIDERATION.— I of the Employee Retirement Income Security insurance coverage offered by a health insur- After the end of the 20-year period beginning on Act of 1974 (added by section 101(a) of the ance issuer, which does not provide benefits for the date on which the conveyance under sub- Health Insurance Port-ability and Accountabil- hospital lengths of stay in connection with section (a) is completed, the City of Downey ity Act of 1996) is amended— childbirth for a mother or her newborn child. shall pay to the United States an amount equal (1) by amending the heading of the part to ‘‘(3) Nothing in this section shall be construed to fair market value of the conveyed property as read as follows: as preventing a group health plan or issuer from of the date of the Federal conveyance. imposing deductibles, coinsurance, or other cost- ‘‘PART 7—GROUP HEALTH PLAN (2) EFFECT OF RECONVEYANCE BY THE CITY.— sharing in relation to benefits for hospital REQUIREMENTS’’; If the City of Downey reconveys all or any part lengths of stay in connection with childbirth for of the conveyed property during such 20-year (2) by inserting after the part heading the fol- a mother or newborn child under the plan (or period, the City shall pay to the United States lowing: under health insurance coverage offered in con- an amount equal to the fair market value of the ‘‘SUBPART A—REQUIREMENTS RELATING TO nection with a group health plan), except that reconveyed property as of the time of the re- PORTABILITY, ACCESS, AND RENEWABILITY’’; such coinsurance or other cost-sharing for any conveyance, excluding the value of any im- (3) by redesignating sections 704 through 707 portion of a period within a hospital length of provements made to the property by the City. as sections 731 through 734, respectively; stay required under subsection (a) may not be (3) DETERMINATION OF FAIR MARKET VALUE.— (4) by inserting before section 731 (as so redes- greater than such coinsurance or cost-sharing The Administrator of GSA shall determine fair ignated) the following new heading: for any preceding portion of such stay. September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10743

‘‘(d) NOTICE UNDER GROUP HEALTH PLAN.— (I) in section 732(b), by striking ‘‘section health insurance coverage in connection with a The imposition of the requirements of this sec- 706(c)(1)’’ and inserting ‘‘section 733(c)(1)’’; group health plan, may not— tion shall be treated as a material modification (J) in section 732(c)(1), by striking ‘‘section ‘‘(1) deny to the mother or her newborn child in the terms of the plan described in section 706(c)(2)’’ and inserting ‘‘section 733(c)(2)’’; eligibility, or continued eligibility, to enroll or to 102(a)(1), for purposes of assuring notice of such (K) in section 732(c)(2), by striking ‘‘section renew coverage under the terms of the plan, requirements under the plan; except that the 706(c)(3)’’ and inserting ‘‘section 733(c)(3)’’; and solely for the purpose of avoiding the require- summary description required to be provided (L) in section 732(c)(3), by striking ‘‘section ments of this section; under the last sentence of section 104(b)(1) with 706(c)(4)’’ and inserting ‘‘section 733(c)(4)’’. ‘‘(2) provide monetary payments or rebates to respect to such modification shall be provided by (4) The table of contents in section 1 of mothers to encourage such mothers to accept not later than 60 days after the first day of the such Act is amended by striking the items less than the minimum protections available first plan year in which such requirements relating to part 7 and inserting the follow- under this section; apply. ing: ‘‘(3) penalize or otherwise reduce or limit the reimbursement of an attending provider because ‘‘(e) LEVEL AND TYPE OF REIMBURSEMENTS.— ‘‘PART 7—GROUP HEALTH PLAN REQUIREMENTS Nothing in this section shall be construed to such provider provided care to an individual ‘‘SUBPART A—REQUIREMENTS RELATING TO prevent a group health plan or a health insur- participant or beneficiary in accordance with PORTABILITY, ACCESS, AND RENEWABILITY ance issuer offering group health insurance cov- this section; erage from negotiating the level and type of re- ‘‘Sec. 701. Increased portability through limita- ‘‘(4) provide incentives (monetary or other- imbursement with a provider for care provided tion on preexisting condition ex- wise) to an attending provider to induce such in accordance with this section. clusions. provider to provide care to an individual partici- ‘‘(f) PREEMPTION; EXCEPTION FOR HEALTH IN- ‘‘Sec. 702. Prohibiting discrimination against in- pant or beneficiary in a manner inconsistent SURANCE COVERAGE IN CERTAIN STATES.— dividual participants and bene- with this section; or ‘‘(1) IN GENERAL.—The requirements of this ficiaries based on health status. ‘‘(5) subject to subsection (c)(3), restrict bene- section shall not apply with respect to health ‘‘Sec. 703. Guaranteed renewability in multiem- fits for any portion of a period within a hospital insurance coverage if there is a State law (as de- ployer plans and multiple em- length of stay required under subsection (a) in fined in section 731(d)(1)) for a State that regu- ployer welfare arrangements. a manner which is less favorable than the bene- lates such coverage that is described in any of ‘‘SUBPART B—OTHER REQUIREMENTS fits provided for any preceding portion of such stay. the following subparagraphs: ‘‘Sec. 711. Standards relating to benefits for ‘‘(A) Such State law requires such coverage to ‘‘(c) RULES OF CONSTRUCTION.— mothers and newborns. provide for at least a 48-hour hospital length of ‘‘(1) Nothing in this section shall be construed stay following a normal vaginal delivery and at ‘‘SUBPART C—GENERAL PROVISIONS to require a mother who is a participant or ben- least a 96-hour hospital length of stay following ‘‘Sec. 731. Preemption; State flexibility; con- eficiary— a cesarean section. struction. ‘‘(A) to give birth in a hospital; or ‘‘(B) Such State law requires such coverage to ‘‘Sec.732. Special rules relating to group health ‘‘(B) to stay in the hospital for a fixed period provide for maternity and pediatric care in ac- plans. of time following the birth of her child. cordance with guidelines established by the ‘‘Sec. 733. Definitions. ‘‘(2) This section shall not apply with respect American College of Obstetricians and Gyne- ‘‘Sec. 734. Regulations.’’. to any group health plan, or any group health cologists, the American Academy of Pediatrics, insurance coverage offered by a health insur- (c) EFFECTIVE DATE.—The amendments made or other established professional medical asso- ance issuer, which does not provide benefits for by this section shall apply with respect to group ciations. hospital lengths of stay in connection with health plans for plan years beginning on or ‘‘(C) Such State law requires, in connection childbirth for a mother or her newborn child. after January 1, 1998. with such coverage for maternity care, that the ‘‘(3) Nothing in this section shall be construed hospital length of stay for such care is left to SEC. 604. AMENDMENTS TO THE PUBLIC HEALTH as preventing a group health plan or issuer from the decision of (or required to be made by) the SERVICE ACT RELATING TO THE imposing deductibles, coinsurance, or other cost- GROUP MARKET. attending provider in consultation with the sharing in relation to benefits for hospital (a) IN GENERAL.—Title XXVII of the Public mother. lengths of stay in connection with childbirth for Health Service Act (as added by section 102 of ‘‘(2) CONSTRUCTION.—Section 731(a)(1) shall a mother or newborn child under the plan (or the Health Insurance Portability and Account- not be construed as superseding a State law de- under health insurance coverage offered in con- ability Act of 1996) is amended— scribed in paragraph (1).’’. nection with a group health plan), except that (1) by amending the title heading to read as (b) CONFORMING AMENDMENTS.— such coinsurance or other cost-sharing for any (1) Section 731(c) of such Act (as added by sec- follows: portion of a period within a hospital length of tion 101 of the Health Insurance Portability and ‘‘TITLE XXVII—REQUIREMENTS RELATING stay required under subsection (a) may not be Accountability Act of 1996 and redesignated by TO HEALTH INSURANCE COVERAGE’’; greater than such coinsurance or cost-sharing the preceding provisions of this section) is (2) by redesignating subparts 2 and 3 of part for any preceding portion of such stay. amended by striking ‘‘Nothing’’ and inserting A as subparts 3 and 4 of such part; ‘‘(d) NOTICE.—A group health plan under this ‘‘Except as provided in section 711, nothing’’. (3) by inserting after subpart 1 of part A the part shall comply with the notice requirement (2) Section 732(a) of such Act (as added by following new subpart: under section 711(d) of the Employee Retirement Income Security Act of 1974 with respect to the section 101 of the Health Insurance Portability ‘‘Subpart 2—Other Requirements and Accountability Act of 1996 and redesignated requirements of this section as if such section by the preceding provisions of this section) is ‘‘SEC. 2704. STANDARDS RELATING TO BENEFITS applied to such plan. amended by inserting ‘‘(other than section 711)’’ FOR MOTHERS AND NEWBORNS. ‘‘(e) LEVEL AND TYPE OF REIMBURSEMENTS.— after ‘‘part’’. ‘‘(a) REQUIREMENTS FOR MINIMUM HOSPITAL Nothing in this section shall be construed to (3) Title I of such Act (as amended by section STAY FOLLOWING BIRTH.— prevent a group health plan or a health insur- 101 of the Health Insurance Portability and Ac- ‘‘(1) IN GENERAL.—A group health plan, and a ance issuer offering group health insurance cov- countability Act of 1996 and the preceding pro- health insurance issuer offering group health erage from negotiating the level and type of re- visions of this section) is further amended— insurance coverage, may not— imbursement with a provider for care provided (A) in the last sentence of section 4(b), by ‘‘(A) except as provided in paragraph (2)— in accordance with this section. striking ‘‘section 706(b)(2)’’, ‘‘section 706(b)(1)’’, ‘‘(i) restrict benefits for any hospital length of ‘‘(f) PREEMPTION; EXCEPTION FOR HEALTH IN- and ‘‘section 706(a)(1)’’ and inserting ‘‘section stay in connection with childbirth for the moth- SURANCE COVERAGE IN CERTAIN STATES.— 733(b)(2)’’, ‘‘section 733(b)(1)’’, and ‘‘section er or newborn child, following a normal vaginal ‘‘(1) IN GENERAL.—The requirements of this 733(a)(1)’’, respectively; delivery, to less than 48 hours, or section shall not apply with respect to health (B) in section 101(g), by striking ‘‘section ‘‘(ii) restrict benefits for any hospital length insurance coverage if there is a State law (as de- 706(a)(2)’’ and inserting ‘‘section 733(a)(2)’’; of stay in connection with childbirth for the fined in section 2723(d)(1)) for a State that regu- (C) in section 102(b), by striking ‘‘section mother or newborn child, following a cesarean lates such coverage that is described in any of 706(a)(1)’’ each place it appears and inserting section, to less than 96 hours, or the following subparagraphs: ‘‘section 733(a)(1), and by striking ‘‘section ‘‘(B) require that a provider obtain authoriza- ‘‘(A) Such State law requires such coverage to 706(b)(2)’’ and inserting ‘‘section 733(b)(2)’’; tion from the plan or the issuer for prescribing provide for at least a 48-hour hospital length of (D) in section 104(b)(1), by striking ‘‘section any length of stay required under subparagraph stay following a normal vaginal delivery and at 706(a)(1)’’ each place it appears and inserting (A) (without regard to paragraph (2)). least a 96-hour hospital length of stay following ‘‘section 733(a)(1); ‘‘(2) EXCEPTION.—Paragraph (1)(A) shall not a cesarean section. (E) in section 502(b)(3), by striking ‘‘section apply in connection with any group health plan ‘‘(B) Such State law requires such coverage to 706(a)(1)’’ and inserting ‘‘section 733(a)(1)’’; or health insurance issuer in any case in which provide for maternity and pediatric care in ac- (F) in section 506(c), by striking ‘‘section the decision to discharge the mother or her new- cordance with guidelines established by the 706(a)(2)’’ and inserting ‘‘section 733(a)(2)’’; born child prior to the expiration of the mini- American College of Obstetricians and Gyne- (G) in section 514(b)(9), by striking ‘‘section mum length of stay otherwise required under cologists, the American Academy of Pediatrics, 704’’ and inserting ‘‘section 731’’; paragraph (1)(A) is made by an attending pro- or other established professional medical asso- (H) in the last sentence of section 701(c)(1), by vider in consultation with the mother. ciations. striking ‘‘section 706(c)’’ and inserting ‘‘section ‘‘(b) PROHIBITIONS.—A group health plan, ‘‘(C) Such State law requires, in connection 733(c)’’; and a health insurance issuer offering group with such coverage for maternity care, that the H10744 CONGRESSIONAL RECORD — HOUSE September 20, 1996

hospital length of stay for such care is left to the decision of (or required to be made by) the (i) IN GENERAL.—The Secretary shall ensure the decision of (or required to be made by) the attending provider in consultation with the that members of the advisory panel include rep- attending provider in consultation with the mother. resentatives of public and private sector entities mother. ‘‘(2) CONSTRUCTION.—Section 2762(a) shall not having knowledge or experience in one or more ‘‘(2) CONSTRUCTION.—Section 2723(a)(1) shall be construed as superseding a State law de- of the following areas: not be construed as superseding a State law de- scribed in paragraph (1).’’. (I) Patient care. scribed in paragraph (1).’’. (b) CONFORMING AMENDMENTS.—Such part (as (II) Patient education. (b) CONFORMING AMENDMENTS.— so added) is further amended as follows: (III) Quality assurance. (1) Section 2721 of such Act (as added by sec- (1) In section 2744(a)(1), strike ‘‘2746(b)’’ and (IV) Outcomes research. (V) Consumer issues. tion 102 of the Health Insurance Portability and insert ‘‘2762(b)’’. (ii) REQUIREMENT.—The panel shall include (2) In section 2745(a)(1) (before redesignation Accountability Act of 1996) is amended— representatives of each of the following cat- (A) in subsection (a), by striking ‘‘subparts 1 under subsection (a)(1)), strike ‘‘2746’’ and in- egories: sert ‘‘2762’’. and 2’’ and inserting ‘‘subparts 1 and 3’’, and (I) Health care practitioners. (B) in subsections (b) through (d), by striking (3) In section 2746(b) (before redesignation (II) Health plans. ‘‘subparts 1 and 2’’ each place it appears and under subsection (a)(1))— (III) Hospitals. inserting ‘‘subparts 1 through 3’’. (A) by inserting ‘‘(1)’’ after the dash, and (IV) Employers. (2) Section 2723(c) of such Act (as added by (B) by adding at the end the following: (V) States. section 102 of the Health Insurance Portability ‘‘(2) Nothing in this part (other than section (VI) Consumers. and Accountability Act of 1996) is amended by 2751) shall be construed as requiring health in- (c) STUDIES.— inserting ‘‘(other than section 2704)’’ after surance coverage offered in the individual mar- (1) IN GENERAL.—The Secretary shall conduct ‘‘part’’. ket to provide specific benefits under the terms a study of— (A) the factors affecting the continuum of (c) EFFECTIVE DATE.—The amendments made of such coverage.’’. by this section shall apply with respect to group (c) EFFECTIVE DATE.—The amendments made care with respect to maternal and child health health plans for plan years beginning on or by this section shall apply with respect to care, including outcomes following childbirth; (B) the factors determining the length of hos- after January 1, 1998. health insurance coverage offered, sold, issued, renewed, in effect, or operated in the individual pital stay following childbirth; SEC. 605. AMENDMENTS TO THE PUBLIC HEALTH market on or after January 1, 1998. (C) the diversity of negative or positive out- SERVICE ACT RELATING TO THE IN- comes affecting mothers, infants, and families; DIVIDUAL MARKET. SEC. 606. REPORTS TO CONGRESS CONCERNING (D) the manner in which post natal care has CHILDBIRTH. (a) IN GENERAL.—Part B of title XXVII of the changed over time and the manner in which (a) FINDINGS.—Congress finds that— Public Health Service Act (as added by section that care has adapted or related to changes in (1) childbirth is one part of a continuum of ex- 111 of the Health Insurance Portability and Ac- the length of hospital stay, taking into ac- perience that includes prepregnancy, pregnancy countability Act of 1996) is amended— count— (1) by inserting after the part heading the fol- and prenatal care, labor and delivery, the imme- (i) the types of post natal care available and lowing: diate postpartum period, and a longer period of the extent to which such care is accessed; and adjustment for the newborn, the mother, and ‘‘Subpart 1—Portability, Access, and (ii) the challenges associated with providing the family; Renewability Requirements’’; post natal care to all populations, including (2) health care practices across this contin- vulnerable populations, and solutions for over- (2) by redesignating sections 2745, 2746, and uum are changing in response to health care fi- 2747 as sections 2761, 2762, and 2763, respec- coming these challenges; and nancing and delivery system changes, science (E) the financial incentives that may— tively; and clinical research, and patient preferences; (i) impact the health of newborns and moth- (3) by inserting before section 2761 (as so re- and ers; and designated) the following: (3) there is a need— (ii) influence the clinical decisionmaking of ‘‘Subpart 3—General Provisions’’; and (A) to examine the issues and consequences health care providers. (4) by inserting after section 2744 the follow- associated with the length of hospital stays fol- (2) RESOURCES.—The Secretary shall provide ing: lowing childbirth; to the advisory panel the resources necessary to (B) to examine the follow-up practices for carry out the duties of the advisory panel. ‘‘Subpart 3—Other Requirements mothers and newborns used in conjunction with (d) REPORTS.— ‘‘SEC. 2751. STANDARDS RELATING TO BENEFITS shorter hospital stays; (1) IN GENERAL.—The Secretary shall prepare FOR MOTHERS AND NEWBORNS. (C) to identify appropriate health care prac- and submit to the Committee on Labor and ‘‘(a) IN GENERAL.—The provisions of section tices and procedures with regard to the hospital Human Resources of the Senate and the Com- 2704 (other than subsections (d) and (f)) shall discharge of newborns and mothers; mittee on Commerce of the House of Representa- apply to health insurance coverage offered by a (D) to examine the extent to which such care tives a report that contains— health insurance issuer in the individual market is affected by family and environmental factors; (A) a summary of the study conducted under in the same manner as it applies to health insur- and subsection (c); ance coverage offered by a health insurance is- (E) to examine the content of care during hos- (B) a summary of the best practices used in suer in connection with a group health plan in pital stays following childbirth. the public and private sectors for the care of the small or large group market. (b) ADVISORY PANEL.— newborns and mothers; ‘‘(b) NOTICE REQUIREMENT.—A health insur- (1) IN GENERAL.—Not later than 90 days after (C) recommendations for improvements in pre- ance issuer under this part shall comply with the date of enactment of this Act, the Secretary natal care, post natal care, delivery and follow- the notice requirement under section 711(d) of of Health and Human Services (in this section up care, and whether the implementation of the Employee Retirement Income Security Act of referred to as the ‘‘Secretary’’) shall establish such improvements should be accomplished by 1974 with respect to the requirements referred to an advisory panel (referred to in this section as the private health care sector, Federal or State in subsection (a) as if such section applied to the ‘‘advisory panel’’)— governments, or any combination thereof; and such issuer and such issuer were a group health (A) to guide and review methods, procedures, (D) limitations on the databases in existence plan. and data collection necessary to conduct the on the date of the enactment of this Act. (2) DEADLINES.—The Secretary shall prepare ‘‘(c) PREEMPTION; EXCEPTION FOR HEALTH IN- study described in subsection (c) in a manner and submit to the Committees referred to in SURANCE COVERAGE IN CERTAIN STATES.— that is intended to enhance the quality, safety, ‘‘(1) IN GENERAL.—The requirements of this paragraph (1)— and effectiveness of health care services pro- (A) an initial report concerning the study con- section shall not apply with respect to health vided to mothers and newborns; ducted under subsection (c) and elements de- insurance coverage if there is a State law (as de- (B) to develop a consensus among the members scribed in paragraph (1), not later than 18 fined in section 2723(d)(1)) for a State that regu- of the advisory panel regarding the appropriate- months after the date of the enactment of this lates such coverage that is described in any of ness of the specific requirements of this title; Act; the following subparagraphs: and (B) an interim report concerning such study ‘‘(A) Such State law requires such coverage to (C) to prepare and submit to the Secretary, as and elements not later than 3 years after the provide for at least a 48-hour hospital length of part of the report of the Secretary submitted date of the enactment of this Act; and stay following a normal vaginal delivery and at under subsection (d), a report summarizing the (C) a final report concerning such study and least a 96-hour hospital length of stay following consensus (if any) developed under subpara- elements not later than 5 years after the date of a cesarean section. graph (B) or the reasons for not reaching such the enactment of this Act. ‘‘(B) Such State law requires such coverage to a consensus. (e) TERMINATION OF PANEL.—The advisory provide for maternity and pediatric care in ac- (2) PARTICIPATION.— panel shall terminate on the date that occurs 60 cordance with guidelines established by the (A) DEPARTMENT REPRESENTATIVES.—The Sec- days after the date on which the last report is American College of Obstetricians and Gyne- retary shall ensure that representatives from submitted under subsection (d). cologists, the American Academy of Pediatrics, within the Department of Health and Human And the Senate agree to the same. or other established professional medical asso- Services that have expertise in the area of mate- Amendment numbered 118: ciations. rial and child health or in outcomes research That the House recede from its disagree- ‘‘(C) Such State law requires, in connection are appointed to the advisory panel. ment to the amendment of the Senate num- with such coverage for maternity care, that the (B) REPRESENTATIVES OF PUBLIC AND PRIVATE bered 118, and agree to the same with an hospital length of stay for such care is left to SECTOR ENTITIES.— amendment, as follows: September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10745 In lieu of the matter proposed by said Secretary shall establish rules under which sub- health plan or health insurance coverage, a dol- amendment, insert: paragraph (B) is applied to such plan or cov- lar limitation on the total amount of benefits TITLE VII—PARITY IN THE APPLICATION erage with respect to mental health benefits by that may be paid with respect to such benefits OF CERTAIN LIMITS TO MENTAL substituting for the applicable annual limit an in a 12-month period under the plan or health HEALTH BENEFITS average annual limit that is computed taking insurance coverage with respect to an individ- into account the weighted average of the an- ual or other coverage unit. SEC. 701. SHORT TITLE. nual limits applicable to such categories. ‘‘(3) MEDICAL OR SURGICAL BENEFITS.—The This title may be cited as the ‘‘Mental Health ‘‘(b) CONSTRUCTION.—Nothing in this section term ‘medical or surgical benefits’ means bene- Parity Act of 1996’’. shall be construed— fits with respect to medical or surgical services, SEC. 702. AMENDMENTS TO THE EMPLOYEE RE- ‘‘(1) as requiring a group health plan (or as defined under the terms of the plan or cov- TIREMENT INCOME SECURITY ACT health insurance coverage offered in connection erage (as the case may be), but does not include OF 1974. with such a plan) to provide any mental health mental health benefits. (a) IN GENERAL.—Subpart B of part 7 of sub- benefits; or ‘‘(4) MENTAL HEALTH BENEFITS.—The term title B of title I of the Employee Retirement In- ‘‘(2) in the case of a group health plan (or ‘mental health benefits’ means benefits with re- come Security Act of 1974 (as added by section health insurance coverage offered in connection spect to mental health services, as defined under 603(a)) is amended by adding at the end the fol- with such a plan) that provides mental health the terms of the plan or coverage (as the case lowing new section: benefits, as affecting the terms and conditions may be), but does not include benefits with re- ‘‘SEC. 712. PARITY IN THE APPLICATION OF CER- (including cost sharing, limits on numbers of spect to treatment of substance abuse or chemi- TAIN LIMITS TO MENTAL HEALTH visits or days of coverage, and requirements re- cal dependency. BENEFITS. lating to medical necessity) relating to the ‘‘(f) SUNSET.—This section shall not apply to ‘‘(a) IN GENERAL.— amount, duration, or scope of mental health benefits for services furnished on or after Sep- ‘‘(1) AGGREGATE LIFETIME LIMITS.—In the case benefits under the plan or coverage, except as tember 30, 2001.’’. of a group health plan (or health insurance cov- specifically provided in subsection (a) (in regard ‘‘(b) CLERICAL AMENDMENT.—The table of erage offered in connection with such a plan) to parity in the imposition of aggregate lifetime contents in section 1 of such Act, as amended by that provides both medical and surgical benefits limits and annual limits for mental health bene- section 602 of this Act, is amended by inserting and mental health benefits— fits). after the item relating to section 711 the follow- ‘‘(A) NO LIFETIME LIMIT.—If the plan or cov- ‘‘(c) EXEMPTIONS.— ing new item: erage does not include an aggregate lifetime ‘‘(1) SMALL EMPLOYER EXEMPTION.— ‘‘Sec. 712. Parity in the application of certain limit on substantially all medical and surgical ‘‘(A) IN GENERAL.—This section shall not limits to mental health benefits.’’. benefits, the plan or coverage may not impose apply to any group health plan (and group any aggregate lifetime limit on mental health health insurance coverage offered in connection (c) EFFECTIVE DATE.—The amendments made benefits. with a group health plan) for any plan year of by this section shall apply with respect to group ‘‘(B) LIFETIME LIMIT.—If the plan or coverage a small employer. health plans for plan years beginning on or includes an aggregate lifetime limit on substan- ‘‘(B) SMALL EMPLOYER.—For purposes of sub- after January 1, 1998. tially all medical and surgical benefits (in this paragraph (A), the term ‘small employer’ means, SEC. 703. AMENDMENTS TO THE PUBLIC HEALTH paragraph referred to as the ‘applicable lifetime in connection with a group health plan with re- SERVICE ACT RELATING TO THE limit’), the plan or coverage shall either— spect to a calendar year and a plan year, an GROUP MARKET. ‘‘(i) apply the applicable lifetime limit both to employer who employed an average of at least 2 (a) IN GENERAL.—Subpart 2 of part A of title the medical and surgical benefits to which it but not more than 50 employees on business XXVII of the Public Health Service Act (as otherwise would apply and to mental health days during the preceding calendar year and added by section 604(a)) is amended by adding benefits and not distinguish in the application who employs at least 2 employees on the first at the end the following new section: of such limit between such medical and surgical day of the plan year. ‘‘SEC. 2705. PARITY IN THE APPLICATION OF CER- benefits and mental health benefits; or ‘‘(C) APPLICATION OF CERTAIN RULES IN DE- TAIN LIMITS TO MENTAL HEALTH ‘‘(ii) not include any aggregate lifetime limit TERMINATION OF EMPLOYER SIZE.—For purposes BENEFITS. on mental health benefits that is less than the of this paragraph— (a) IN GENERAL.— applicable lifetime limit. ‘‘(i) APPLICATION OF AGGREGATION RULE FOR ‘‘(1) AGGREGATE LIFETIME LIMITS.—In the case ‘‘(C) RULE IN CASE OF DIFFERENT LIMITS.—In EMPLOYERS.—Rules similar to the rules under of a group health plan (or health insurance cov- the case of a plan or coverage that is not de- subsections (b), (c), (m), and (o) of section 414 of erage offered in connection with such a plan) scribed in subparagraph (A) or (B) and that in- the Internal Revenue Code of 1986 shall apply that provides both medical and surgical benefits cludes no or different aggregate lifetime limits for purposes of treating persons as a single em- and mental health benefits— on different categories of medical and surgical ployer. ‘‘(A) NO LIFETIME LIMIT.—If the plan or cov- benefits, the Secretary shall establish rules ‘‘(ii) EMPLOYERS NOT IN EXISTENCE IN PRECED- erage does not include an aggregate lifetime under which subparagraph (B) is applied to ING YEAR.—In the case of an employer which limit on substantially all medical and surgical such plan or coverage with respect to mental was not in existence throughout the preceding benefits, the plan or coverage may not impose health benefits by substituting for the applicable calendar year, the determination of whether any aggregate lifetime limit on mental health lifetime limit an average aggregate lifetime limit such employer is a small employer shall be based benefits. that is computed taking into account the on the average number of employees that it is (B) LIFETIME LIMIT.—If the plan or coverage weighted average of the aggregate lifetime limits reasonably expected such employer will employ includes an aggregate lifetime limit on substan- applicable to such categories. on business days in the current calendar year. tially all medical and surgical benefits (in this ‘‘(2) ANNUAL LIMITS.—In the case of a group ‘‘(iii) PREDECESSORS.—Any reference in this paragraph referred to as the ‘applicable lifetime health plan (or health insurance coverage of- paragraph to an employer shall include a ref- limit’’), the plan or coverage shall either— fered in connection with such a plan) that pro- erence to any predecessor of such employer. ‘‘(i) apply the applicable lifetime limit both to vides both medical and surgical benefits and ‘‘(2) INCREASED COST EXEMPTION.—This sec- the medical and surgical benefits to which it mental health benefits— tion shall not apply with respect to a group otherwise would apply and to mental health ‘‘(A) NO ANNUAL LIMIT.—If the plan or cov- health plan (or health insurance coverage of- benefits and not distinguish in the application erage does not include an annual limit on sub- fered in connection with a group health plan) if of such limit between such medical and surgical stantially all medical and surgical benefits, the the application of this section to such plan (or benefits and mental health benefits; or plan or coverage may not impose any annual to such coverage) results in an increase in the ‘‘(ii) not include any aggregate lifetime limit limit on mental health benefits. cost under the plan (or for such coverage) of at on mental health benefits that is less than the ‘‘(B) ANNUAL LIMIT.—If the plan or coverage least 1 percent. applicable lifetime limit. includes an annual limit on substantially all ‘‘(d) SEPARATE APPLICATION TO EACH OPTION ‘‘(C) RULE IN CASE OF DIFFERENT LIMITS.—In medical and surgical benefits (in this paragraph OFFERED.—In the case of a group health plan the case of a plan or coverage that is not de- referred to as the ‘applicable annual limit’), the that offers a participant or beneficiary two or scribed in subparagraph (A) or (B) and that in- plan or coverage shall either— more benefit package options under the plan, cludes no or different aggregate lifetime limits ‘‘(i) apply the applicable annual limit both to the requirements of this section shall be applied on different categories of medical and surgical medical and surgical benefits to which it other- separately with respect to each such option. benefits, the Secretary shall establish rules wise would apply and to mental health benefits ‘‘(e) DEFINITIONS.—For purposes of this sec- under which subparagraph (B) is applied to and not distinguish in the application of such tion: such plan or coverage with respect to mental limit between such medical and surgical benefits ‘‘(1) AGGREGATE LIFETIME LIMIT.—The term health benefits by substituting for the applicable and mental health benefits; or ‘aggregate lifetime limit’ means, with respect to lifetime limit an average aggregate lifetime limit ‘‘(ii) not include any annual limit on mental benefits under a group health plan or health in- that is computed taking into account the health benefits that is less than the applicable surance coverage, a dollar limitation on the weighted average of the aggregate lifetime limits annual limit. total amount that may be paid with respect to applicable to such categories. ‘‘(C) RULE IN CASE OF DIFFERENT LIMITS.—In such benefits under the plan or health insur- ‘‘(2) ANNUAL LIMITS.—In the case of a group the case of a plan or coverage that is not de- ance coverage with respect to an individual or health plan (or health insurance coverage of- scribed in subparagraph (A) or (B) and that in- other coverage unit. fered in connection with such a plan) that pro- cludes no or different annual limits on different ‘‘(2) ANNUAL LIMIT.—The term ‘annual limit’ vides both medical and surgical benefits and categories of medical and surgical benefits, the means, with respect to benefits under a group mental health benefits— H10746 CONGRESSIONAL RECORD — HOUSE September 20, 1996

‘‘(A) NO ANNUAL LIMIT.—If the plan or cov- ‘‘(3) MEDICAL OR SURGICAL BENEFITS.—The TITLE I—DEPARTMENT OF VETERANS erage does not include an annual limit on sub- term ‘medical or surgical benefits’ means bene- AFFAIRS stantially all medical and surgical benefits, the fits with respect to medical or surgical services, VETERANS BENEFITS ADMINISTRATION plan or coverage may not impose any annual as defined under the terms of the plan or cov- Amendment No. 1: Appropriates limit on mental health benefits. erage (as the case may be), but does not include $18,671,259,000 for compensation and pensions ‘‘(B) ANNUAL LIMIT.—If the plan or coverage mental health benefits. as proposed by the Senate, instead of includes an annual limit on substantially all ‘‘(4) MENTAL HEALTH BENEFITS.—The term $18,497,854,000 as proposed by the House. medical and surgical benefits (in this paragraph ‘mental health benefits’ means benefits with re- Amendment No. 2: Appropriates referred to as the ‘applicable annual limit’), the spect to mental health services, as defined under $1,377,000,000 for readjustment benefits as plan or coverage shall either— the terms of the plan or coverage (as the case proposed by the Senate, instead of ‘‘(i) apply the applicable annual limit both to may be), but does not include benefits with re- $1,227,000,000 as proposed by the House. medical and surgical benefits to which it other- spect to treatment of substance abuse or chemi- Amendment No. 3: Limits the principal wise would apply and to mental health benefits cal dependency. amount of direct loans in the vocational re- and not distinguish in the application of such ‘‘(f) SUNSET.—This section shall not apply to habilitation loans program account to not to limit between such medical and surgical benefits benefits for services furnished on or after Sep- exceed $2,822,000 as proposed by the Senate, and mental health benefits; or tember 30, 2001.’’. ‘‘(ii) not include any annual limit on mental instead of not to exceed $1,964,000 as proposed (b) EFFECTIVE DATE.—The amendments made health benefits that is less than the applicable by the House. by this section shall apply with respect to group annual limit. VETERANS HEALTH ADMINISTRATION health plans for plan years beginning on or ‘‘(C) RULE IN CASE OF DIFFERENT LIMITS.—In Amendment No. 4: Delays the availability after January 1, 1998. the case of a plan or coverage that is not de- of $700,000,000 of the medical care appropria- scribed in subparagraph (A) or (B) and that in- And the Senate agree to the same. tion in the equipment and land and struc- cludes no or different annual limits on different JERRY LEWIS, tures object classifications until August 1, categories of medical and surgical benefits, the BARBARA F. VUCANOVICH, 1997, instead of delaying the availability of Secretary shall establish rules under which sub- JAMES T. WALSH, $570,000,000 as proposed by the House and paragraph (B) is applied to such plan or cov- DAVID L. HOBSON, $596,000,000 as proposed by the Senate. erage with respect to mental health benefits by JOE KNOLLENBERG, The conference agreement includes medi- substituting for the applicable annual limit on RODNEY P. cal care funding of $210,000 to expand services average annual limit that is computed taking FRELINGHUYSEN, at the existing community-based outpatient into account the weighted average of the an- BOB LIVINGSTON, clinic in Texarkana, Texas; and $400,000 for nual limits applicable to such categories. LOUIS STOKES, the homeless veterans domiciliary program ‘‘(b) CONSTRUCTION.—Nothing in this section ALAN B. MOLLOHAN, in Alaska, including the purchase of transi- shall be construed— JIM CHAPMAN, tional housing units (300,000) and the expan- ‘‘(1) as requiring a group health plan (or MARCY KAPTUR, sion of the domiciliary’s video-conferencing health insurance coverage offered in connection DAVID R. OBEY, capabilities ($100,000). with such a plan) to provide any mental health Managers on the Part of the House. Amendment No. 5: Appropriates $262,000,000 benefits; or for medical and prosthetic research as pro- ‘‘(2) in the case of a group health plan (or CHRISTOPHER S. BOND, posed by the Senate, instead of $257,000,000 health insurance coverage offered in connection CONRAD BURNS, proposed by the House. The house, in section with such a plan) that provides mental health TED STEVENS, 427 of the general provisions, increased this benefits, as affecting the terms and conditions RICHARD C. SHELBY, appropriation by $20,000,000—to a total of (including cost sharing, limits on numbers of ROBERT F. BENNETT, $277,000,000. The conference agreement de- visits or days of coverage, and requirements re- BEN NIGHTHORSE letes that general provision. lating to medical necessity) relating to the CAMPBELL, The committee of conference supports ad- amount, duration, or scope of mental health MARK O. HATFIELD, ditional research activity on osteoporosis benefits under the plan or coverage, except as BARBARA A. MIKULSKI, and related bone diseases, disorders which af- specifically provided in subsection (a) (in regard PATRICK J. LEAHY, fect both women and men. In 1993, VA medi- to parity in the imposition of aggregate lifetime J. BENNETT JOHNSTON, cal centers cared for hip fractures in 2,650 limits and annual limits for mental health bene- FRANK R. LAUTENBERG, veterans over 65 years of age. The average fits). J. ROBERT KERREY, length of acute hospital stay was approxi- ‘‘(c) EXEMPTIONS.— ROBERT C. BYRD, mately 25 days which resulted in a total of ‘‘(1) SMALL EMPLOYER EXEMPTION.—This sec- Managers on the Part of the Senate. 65,720 hospital days of care. The conferees tion shall not apply to any group health plan JOINT EXPLANATORY STATEMENT OF urge the VA to prepare a long-term strategy (and group health insurance coverage offered in THE COMMITTEE OF CONFERENCE for research in this area, including the co- connection with a group health plan) for any The managers on the part of the House and ordination of such efforts with the Depart- plan year of a small employer. ment of Defense and the National Institutes ‘‘(2) INCREASED COST EXEMPTION.—This sec- the Senate at the conference on the disagree- ing votes of the two Houses on the amend- of Health. tion shall not apply with respect to a group Amendment No. 6: Appropriates $61,207,000 health plan (or health insurance coverage of- ments of the Senate to the bill (H.R. 3666) making appropriations for the Departments for medical administration and miscellane- fered in connection with a group health plan) if ous operating expenses, instead of $59,207,000 the application of this section to such plan (or of Veterans Affairs and Housing and Urban Development, and for sundry independent as proposed by the House and $62,207,000 as to such coverage) results in an increase in the proposed by the Senate. cost under the plan (or for such coverage) of at agencies, boards, commissions, corporations, least 1 percent. and offices for the fiscal year ending Septem- DEPARTMENT ADMINISTRATION ‘‘(d) SEPARATE APPLICATION TO EACH OPTION ber 30, 1997, and for other purposes, submit Amendment No. 7: Appropriates $827,584,000 OFFERED.—In the case of a group health plan the following joint statement to the House for general operating expenses, instead of that offers a participant or beneficiary two or and the Senate in explanation of the effect of $823,584,000 as proposed by the House and more benefit package options under the plan, the action agreed upon by the managers and $813,730,000 as proposed by the Senate. The the requirements of this section shall be applied recommended in the accompanying report. House, in section 426 of the general provi- separately with respect to each such option. The language and allocations set forth in sions, increased this appropriation by ‘‘(e) DEFINITIONS.—For purposes of this sec- House Report 104–628 and Senate Report 104– $17,000,000—to a total of $840,584,000. The con- tion; 318 should be complied with unless specifi- ference agreement deletes that general pro- ‘‘(1) AGGREGATE LIFETIME LIMIT.—The term cally addressed to the contrary in the con- vision. ‘aggregate lifetime limit’ means, with respect to ference report and statement of the man- The conferees agree that the decrease of benefits under a group health plan or health in- agers. Report language included by the $16,146,000 below the budget estimate be ap- surance coverage, a dollar limitation on the House which is not changed by the report of plied against funds requested for the Veter- total amount that may be paid with respect to the Senate or the conference, and Senate re- ans Benefits Administration. The reduction such benefits under the plan or health insur- port language which is not changed by the to VBA reflects the conferees’ continuing ance coverage with respect to an individual or conference is approved by the committee of frustration with the lethargic approach to other coverage unit. conference. The statement of the managers, improving service to veterans, and is not in- ‘‘(2) ANNUAL LIMIT.—The term ‘annual limit’ while repeating some report language for tended to worsen the backlog of pending means, with respect to benefits under a group emphasis, does not intend to negate the lan- claims. The staffing requested for compensa- health plan or health insurance coverage, a dol- guage referred to above unless expressly pro- tion and pension claims processing is fully lar limitation on the total amount of benefits vided herein. In cases in which the House or funded. While the Secretary has discretion in that may be paid with respect to such benefits Senate have directed the submission of a re- applying the reduction, suggested areas in- in a 12-month period under the plan or health port, such report is to be submitted to both clude deferred relocation expenses, travel re- insurance coverage with respect to an individ- House and Senate Committees on Appropria- structuring plans which will not be imple- ual or other coverage unit. tions. mented, and cash awards and bonuses. September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10747 The conferees also agree not to earmark The Congress has provided for two ap- $200,000,000 for developing or acquiring public any specific level of funding to improve ac- proaches to this matter in the past few housing for Indian families. cess for contact by telephone, but support years. There is an authorization and a Appropriates $4,640,000,000 for the second this Veterans Benefits Administration’s re- $25,000,000 appropriation for an outpatient new account, called ‘‘Prevention of resident structuring initiative to improve service to clinic at Travis. Also, since 1991, a total of displacement,’’ to assure against the disrup- veterans. $22,600,000 has been appropriated for a hos- tive and painful effects of displacement that Amendment No. 8: Makes technical lan- pital to replace the one at Martinez. Because families may confront from losing their sub- guage change as proposed by the Senate. the hospital project began before the current sidized housing. The largest component of Amendment No. 9: Appropriates $250,858,000 authorization process was enacted, it is this—$3,600,000,000—is appropriated to extend for construction, major projects, instead of ‘‘grandfathered’’ and no authorization for it expiring rent subsidy contracts for one year. $245,358,000 as proposed by the House and is required. Appropriations for the remaining compo- $178,250,000 as proposed by the Senate. The language included in the bill delaying nents are: $850,000,000 for section 8 contract The conference agreement include the fol- the release of the funds prior to January 1, amendments, of which $50,000,000 is for rental lowing changes from the budget estimate: 1998, unless specific action is taken, will per- assistance contracts under the Low-Income ¥$42,600,000 for the new medical center and mit the Congress and the VA time to reas- Housing, Preservation and Resident Home- nursing home project in Brevard County, sess the available options and fully consider ownership Act of 1990 (LIHPRHA) and the Florida. the GAO recommendations. To assist in this Emergency Low-Income Housing Preserva- $15,100,000 for the renovation of psy- ¥ effort, the VA is to make a report to the tion Act of 1987 (ELIHPA); and $190,000,000 chiatric wards at the Perry Point, Maryland Congress with recommendations as how to for section 8 tenant-based certificates and VA Medical Center. best provide medical services to veterans in vouchers necessary to avoid resident dis- +$5,000,000 for an ambulatory care addition the area. The authorizing committees should placement, for witness relocation and family project at the Leavenworth, Kansas VA Med- review this situation and take whatever ac- unification activities, and for other pur- ical Center. tion regarding the construction authoriza- poses. ¥$15,500,000 for the renovation of facilities HUD requested $290,000,000 for certificate and relocation of medical school functions tion they deem appropriate. Amendment No. 10: Appropriates and voucher and rental assistance. Of this project at the Mountain Home, Tennessee amount, almost $100,000,000 was for purposes VA Medical Center. $175,000,000 for construction, minor projects, instead of $160,000,000 as proposed by the other than providing rental assistance, in- +$20,000,000 for the first phase of the spinal cluding such items as settlement of litiga- cord injury unit and energy center project at House and $190,000,000 as proposed by the Senate. The conferees urge the VA to give tion, counseling services and a new, pre- the Tampa, Florida VA Medical Center. viously unauthorized ‘‘Welfare-to-Work’’ ini- $12,400,000 for the $17,400,000 requested for priority to projects which will convert excess ¥ tiative. There is a trend at HUD to initiate the environmental improvements project at inpatient hospital space to outpatient care programs without Congressional approval the Pittsburgh (UD), Pennsylvania VA Medi- space needed to accommodate the increases and fund them with money appropriated for cal Center. in those activities. authorized programs. The conferees plan to ¥$18,200,000 for the environmental en- Amendment No. 11: Appropriates $12,300,000 carefully monitor HUD’s propensity to act hancements project at the Salisbury, North for the parking revolving fund as proposed without Congressional mandate. In the Carolina VA Medical Center. by the House, instead of zero as proposed by +$16,000,000 for the research addition the Senate. The conferees agree that these meantime, the Department is directed to project at the Portland, Oregon VA Medical funds are for the parking structure compo- present a budget request on a timely basis Center. nent of the ambulatory care addition project that outlines and justifies their priorities +$1,000,000 for the planning of an ambula- at the Cleveland VA Medical Center. and, if funds are available and the program is authorized, the Appropriations Committees tory care addition at the Lyons, New Jersey ADMINISTRATIVE PROVISION VA Medical Center. may provide funding after due consideration. +$2,300,000 for the planning and design of a Amendment No. 12: Inserts language pro- Appropriates $5,750,000,000 for the third new renovation/reconstruction of psychiatric posed by the Senate providing for the con- account, ‘‘Preserving existing housing in- care facilities project and the Murfreesboro, veyance of a portion of the grounds at the vestment,’’ which incorporates public and In- Tennessee VA Medical Center. Tuscaloosa VA Medical Center to the City of dian housing operating subsidies, moderniza- ¥5,000,000 of the $8,845,000 requested for the Tuscaloosa, Alabama. tion, and housing preservation activities advance planning fund. TITLE II—DEPARTMENT OF HOUSING under the LIHPRHA. A total of $2,900,000,000 ¥$5,000,000 of the $15,000,000 requested for AND URBAN DEVELOPMENT is earmarked for public and Indian housing operating subsidies, as proposed by the Sen- asbestos abatement. HOUSING PROGRAMS +$13,000,000 for the phase I development of ate; $2,500,000,000 is earmarked for mod- a new national cemetery in the Albany, New Amendment No. 13: Deletes HUD’s account ernization, as proposed by the Senate and York area. structure as proposed by the House and $350,000,000 is earmarked for LIHPRHA, in- +$1,258,000 to complete the design of a new stricken by Senate. Amendment number 14 stead of $500,000,000 as proposed by the Sen- national cemetery in Guilford Township, replaces it with a new structure that is more ate. Ohio. descriptive of the activities actually carried The conferees agree with the House report ¥$5,000,000 requested for the judgment out under the particular accounts. Many of language directing HUD to create perform- fund. the activities carried out in the following ac- ance targets for the use of funds made avail- The conference agreement includes the counts have been either merged into three able for technical assistance in the mod- budget request of $32,100,000 for the next more flexible categorical accounts and two ernization earmark and to report on whether funding increment of the replacement hos- specialized accounts or moved to the admin- these targets are achieved. pital at Travis Air Force Base, with bill lan- istrative provisions of this Title: annual con- The preservation program has been rede- guage delaying the release of said funds until tributions for assisted housing; housing for signed to reduce excessive program costs in January 1, 1998, unless action is taken by the special populations: elderly and disabled the form of equity take-outs, renovations Congress specifically making the funds housing; the flexible subsidy fund; rental and transactions costs. To protect residents available sooner. The House provided housing assistance; the public and Indian from possible displacement in the event an $32,100,000 for the Travis project and the Sen- housing certificate fund; public housing op- owner prepays the unpaid principal balance ate deleted such funds. erating fund; public housing capital fund; re- remaining on the mortgage, $100,000,000 is The conference committee recognizes that vitalization of severely distressed public earmarked for tenant-based assistance. In currently there exist several scenarios for housing (HOPE VII); and drug elimination addition, $75,000,000 is provided to fund providing medical care to veterans in this grants for low income housing. projects not being sold to priority purchasers area, including an outpatient clinic; a re- Amendment No. 14: Inserts language pro- that have approved plans of action. Finally, placement hospital, which includes an out- viding a new account structure as proposed $10,000,000 is provided to reimburse owners of patient clinic; dedication of additional beds by the Senate with modifications as de- eligible properties where plans of action for VA use at the Travis hospital; and utili- scribed below. were submitted prior to the effective date of zation of the Mather Air Force hospital for Appropriates $1,039,000,000 for a new ‘‘De- this Act, but were not executed because of veterans. The conference committee also velopment of additional new subsidized hous- insufficient funds. recognizes a recent General Accounting Of- ing’’ account instead of $969,464,442 as pro- To assist the Congress in making a deter- fice report which concludes that the Travis posed by the Senate. Incorporated into this mination of whether this program is the construction project is not justified and that account are the new construction housing most cost-effective way to provide affordable lower-cost alternatives should be more fully programs, including housing for the elderly housing opportunities to low-income fami- explored. However, the VA Secretary does under section 202, housing for the disabled lies, the conferees request the General Ac- not concur with the GAO report and its rec- under section 811, and public housing for In- counting Office (GAO) to evaluate and review ommendation, and continues to fully support dian families. Within the account, the program. As part of this evaluation, GAO the project. Further, the VA is currently de- $645,000,000 is provided for developing or ac- should review the level of compensation to veloping plans for restructuring the way quiring housing under the section 202 pro- the owner relative to the actual value of the health care services are provided in its Si- gram, $194,000,000 for developing or acquiring property, the level of rehabilitation grants erra Pacific network. housing under the section 811 program, and relative to the rehabilitation needs of the H10748 CONGRESSIONAL RECORD — HOUSE September 20, 1996 property and the problems of administering Amendment No. 20: Earmarks $30,000,000 OFFICE OF INSPECTOR GENERAL the program. Finally, because some of the is- for the Youthbuild program, instead of Amendment No. 32: Inserts a technical cor- sues are similar, GAO should evaluate $20,000,000 as proposed by the House and rection to the language as proposed by the whether there are lessons to be learned from $40,000,000 as proposed by the Senate. Senate. the experience with the preservation pro- Amendment No. 21: Inserts a technical cor- OFFICE OF FEDERAL HOUSING ENTERPRISE gram that can be applied to portfolio re- rection to the language as proposed by the OVERSIGHT engineering. Senate. Two accounts have been retained sepa- Amendment No. 33: Appropriates $15,500,000 FEDERAL HOUSING ADMINISTRATION rately because of their unique characteris- for the Office of Federal Housing Enterprise tics: the revitalization of severely distressed FHA-MUTUAL MORTGAGE INSURANCE PROGRAM Oversight (OFHEO) instead of $14,895,000 as public housing account and the drug elimi- ACCOUNT proposed by the House, and $15,751,000 as pro- nation grants for low income housing ac- Amendment No. 22: Transfers $350,595,000 posed by the Senate. count, as proposed by the House. In these ac- from FHA-mutual mortgage insurance guar- The conferees are concerned that this of- counts, $550,000,000 is appropriated to the se- anteed loan receipts for administrative ex- fice is a growing bureaucracy which has not verely distressed program, and $290,000,000 is penses as proposed by the Senate, instead of met its responsibilities to develop and imple- appropriated to the drug elimination grants $341,595,000 as proposed by the House. ment financial safety and soundness require- program to assist public housing authorities Amendment No. 23: Limits use of trans- ments for the two housing government spon- to fight drug problems in their communities. ferred funds to $343,483,000 for departmental sored enterprises (GSEs): the Federal Home Language is inserted to ensure that HOPE salaries and expenses as proposed by the Sen- Loan Mortgage Corporation (FHLMC) and VI funds are used for the purpose of revitaliz- ate, instead of $334,483,000 as proposed by the the Federal National Mortgage Association ing severely distressed public housing facili- House. (FNMA). ties. HUD attempted to provide funds to pre- Additonally, the conference agreement re- FHA-GENERAL AND SPECIAL RISK PROGRAM determined housing authorities to settle liti- quires the General Accounting Office (GAO) gation unconnected with the HOPE VI pro- ACCOUNT to audit the operations of OFHEO relating to gram. Furthermore, preferential scoring was Amendment No. 24: Transfers $207,470,000 staff organization, expertise, capacity and given to housing projects that included pro- from the FHA-General and Special Risk Pro- contracting to ensure that resources are ade- posals for an unauthorized program. HUD is gram account for administrative expenses to quate and are being used appropriately for directed to end such practices immediately. carry out the guaranteed and direct loan developing and implementing financial safe- Finally, in assessing public housing demoli- program as proposed by the Senate, instead ty and soundness requirements for FNMA tion/disposition applications, the conferees of $202,470,000, as proposed by the House. Of and FHLMC, as required under the Housing urge HUD to review closely the local housing this transfer, $203,299,000 is for departmental and Community Development Act of 1992. needs of a community, including shortages of salaries and expenses as proposed by the Sen- The matter is addressed in Amendment No. affordable housing for low-income families, ate instead of $198,299,000, as proposed by the 110. the size of the waiting list for the public House. ADMINISTRATIVE PROVISIONS housing, as well as the size of the local Amendment No. 25: Inserts a technical cor- Amendment No. 34: Deletes language pro- homeless population. rection to the language as proposed by the posed by the House and stricken by the Sen- COMMUNITY PLANNING AND Senate. ate regarding minimum rents, and inserts DEVELOPMENT GOVERNMENT NATIONAL MORTGAGE language proposed by the Senate to extend COMMUNITY DEVELOPMENT BLOCK GRANTS FUND ASSOCIATION administrative provisions from the fiscal Amendment No. 15: Deletes the language GUARANTEES OF MORTGAGE-BACKED SECURITIES year 1996 VA/HUD Appropriations Act, proposed by the House and stricken by the LOAN amended to include modified House language regarding minimum rents. The conference Senate to delay the availability of GUARANTEE PROGRAM ACCOUNT $300,000,000 of this appropriation until the agreement inserts language to allow mini- Amendment No. 26: Transfers $9,383,000 last day of the fiscal year. mum rents of up to $50 for public housing Consistent with Congressional efforts to from receipts generated by the GNMA-guar- and section 8 housing. The remaining exten- devolve greater authority to lower levels of antees of mortgage-backed securities for ad- sions of authority, as proposed by the Sen- government and to empower citizens to de- ministrative expenses necessary to carry out ate, are included in the provision including: velop self-help solutions within their respec- the guaranteed mortgage-backed securities suspension of the one-for-one replacement tive communities and neighborhoods, the program as proposed by the Senate, instead requirement, reforms to the public housing conferees recommend that HUD encourage of $9,101,000 as proposed by the House. modernization program, rent reforms, the re- States and entitlement communities to sup- Amendment No. 27: Limits use of transfer peal of federal preferences, suspension of sec- port neighborhood revitalization activities of $9,303,000 for salaries and expenses, as pro- tion 8(t) of the United States Housing Act of sponsored or administered by small non- posed by the Senate, instead of $9,101,000 as 1937, the ‘‘take one, take all’’ requirement, profit community-based entities. The John proposed by the House. suspension of certain notice requirements for Heinz Neighborhood Development Program Amendment No. 28: Inserts a technical cor- owners who participate in the certificate and is a model that states could follow. rection to the language as proposed by the voucher programs, suspension of section Amendment No. 16: Earmarks $67,000,000 Senate. 8(d)(1)(B), the ‘‘endless lease’’ requirement for grants to Indian tribes instead of MANAGEMENT AND ADMINISTRATION and retaining fair market rents at the 40th percentile of modest cost existing housing $61,400,000 as proposed by the House, and SALARIES AND EXPENSES $68,500,000 as proposed by the Senate. instead of the 45th percentile calculation. Amendment No. 17: Earmarks $1,500,000 for Amendment No. 29: Appropriates Additionally, the conference agreement a grant to the National American Indian $976,840,000 for departmental salaries and ex- modifies the manner in which administrative Housing Council (NAIHC) as proposed by the penses, as proposed by the Senate, instead of fees for tenant-based assistance are cal- Senate, instead of $1,000,000 as proposed by $919,147,000 as proposed by the House. The culated, delays the reissuance of section 8 the House. agreement also provides that $15,000,000 is vouchers and certificates by three months, Amendment No. 18: Earmarks $60,000,000 contingent on HUD providing to the House reduces annual adjustment factors by 1% for for grants promoting self-sufficiency for resi- and Senate Appropriations Committees a units where tenants do not move and limits dents of public housing, which is $10,000,000 strategic plan that results in reducing the high cost units. Finally, the conference above the level proposed by the Senate. Ear- full-time equivalent (FTE) employment level agreement extends for one year those re- marks up to $5,000,000 for the Tenant Oppor- to 7,500 in fiscal year 2000. Once the plan is forms made to the single family mortgage tunity Program and up to $5,000,000 for the reviewed, the additional funds will be made assignment program and reforms made to Moving-to-Work demonstration created in available to provide retraining programs for the disposition process of multifamily prop- the fiscal year 1996 appropriations measure. employees, to pay for related costs of person- erties and mortgages owned or held by the Funds for the Tenant Opportunity Pro- nel making permanent changes in station, Secretary. gram shall not be available for any purpose and other costs related to downsizing the De- Amendment No. 35: Amends language pro- until the Secretary certifies that the pro- partment. During this process, it will be ex- posed by the Senate to provide up to gram is working effectively. The conferees tremely important for senior management $20,000,000 of unobligated balances from the are concerned about reports of wasteful staff to engage in open discussions with the Nehemiah Housing Opportunity Grant pro- spending practices and allegedly fraudulent unions and career HUD employees. gram for activities to promote and imple- activities within the program, practices Amendment No. 30: Transfers $546,782,000 ment homeownership opportunities. which put the program at risk of elimination from various funds of the Federal Housing Amendment No. 36: Inserts language pro- altogether. Administration for salaries and expenses as posed by the Senate to cancel the indebted- Amendment No. 19: Earmarks $20,000,000 proposed by the Senate, instead of ness of the Greene County Rural Health Cen- for public housing authorities and other fed- $532,782,000 as proposed by the House. ter. erally-assisted low income housing programs Amendment No. 31: Transfers $9,383,000 Amendment No. 37: Inserts language pro- to reimburse law enforcement entities and to from funds of GNMA for salaries and ex- posed by the Senate to transfer all uncom- augment security services, as proposed by penses as proposed by the Senate, instead of mitted balances of excess rental charges to the Senate. $9,101,000 as proposed by the House. the flexible subsidy fund. September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10749 Amendment No. 38: Inserts language pro- in light of the families the projects serve. the AmeriCorps program, to not more than posed by the Senate which reduces by Many of the properties are home to elderly $214,000,000 as proposed by the Senate, in- $2,000,000 all uncommitted balances of au- and disabled families, and may be located in stead of $201,000,000 as proposed by the thorizations under section 236 of the Na- high-cost rental markets with little avail- House. tional Housing Act. able, affordable housing or are in rural areas Amendment No. 51: Inserts language pro- Amendment No. 39: Inserts language pro- with scarce housing resources. In most cases, posed by the Senate limiting funds for na- posed by the Senate which allows funds with- the projects are oversubsidized and are in tional direct programs to not more than held by HUD from the District of Columbia’s danger of defaulting on their mortgage if the $40,000,000. Department of Public and Assisted Housing section 8 payments are reduced to market Amendment No. 52: Limits funds for the (DPAH) to be used by DPAH’s successor levels, raising concerns of owner disinvest- Points of Light Foundation to not more than agency, the District of Columbia Housing ment, resident displacement, and govern- $5,500,000 as proposed by the Senate, instead Authority (DCHA), unless that agency is ment ownership, management and disposi- of $5,000,000 as proposed by the House. deemed troubled at the end of fiscal year tion of the housing inventory. To achieve Amendment No. 53: Limits funds for the 1998. deficit reduction and a balance budget, con- Civilian Community Corps to not more than Amendment No. 40: Inserts language pro- tinuing the existing subsidy arrangements is $18,000,000 as proposed by the Senate, instead posed by the Senate regarding financial ad- simply not an option. of $17,500,000 as proposed by the House. justment factors, amended to appropriate Amendment No. 42: Inserts language pro- Amendment No. 54: Limits funds for the $464,442 for the Utah Housing Finance Agen- posed by the Senate to waive section 282 of school-based and community-based service- cy to pay for amounts lost to the agency in the Cranston-Gonzalez National Affordable learning programs to not more than bond refinancings. Housing Act as it applies to Hawaiian Home $43,000,000 as proposed by the Senate, instead Amendment No. 41: Amends language pro- Lands. of $41,500,000 as proposed by the House. posed by the Senate regarding section 8 con- Amendment No. 43: Deletes language pro- COURT OF VETERANS APPEALS tract renewal authority repealing the sec- posed by the Senate allowing HUD to estab- Amendment No. 55: Deletes language pro- tion 8 Multifamily Housing Portfolio Re- lish a buyout plan to downsize the Depart- posed by the House and stricken by the Sen- structuring Demonstration created in the ment and inserts language authorizing the ate increasing the salaries and expenses ap- fiscal year 1996 VA/HUD Appropriations Act, Secretary to transfer from section 8 recap- propriation by $1,411,000. Public Law 104–134. The revised demonstra- tures, up to $50,000,000 to be used to fund Amendment No. 56: Earmarks $700,000 of tion does not nullify any agreements or pro- amendments for LIHPRHA contracts, and up the salaries and expenses appropraiton for posals that have been considered under the to $25,000,000 for housing opportunities for the pro bono representation program as pro- 1996 demonstration. Furthermore, to the ex- persons with AIDs (HOPWA). The conferees posed by the Senate, instead of $634,000 as tent those participants have requested ten- intend that the recaptured funds shall be proposed by the House. ant-based contracts, those units should not used first for LIHPRHA and remaining funds ENVIRONMENTAL PROTECTION AGENCY be counted under the cap included in this re- for HOPWA. vised demonstration. Amendment No. 44: Inserts language pro- SCIENCE AND TECHNOLOGY The revised demonstration is structured so posed by the Senate to require HUD to main- Amendment No. 57: Appropriates that several distinct processes can be set up tain public notice and comment rulemaking. $542,000,000 for science and technology activi- and their results evaluated. Stringent re- Amendment No. 45: Inserts language pro- ties instead of $538,500,000 as proposed by the porting requirements have been added so posed by the Senate to change the definition House and $545,000,000 as proposed by the Congress will know how the demonstration of ‘‘urban county’’ to include those counties Senate. is proceeding. that have a population of at least 210,000 per- The conferees are in agreement with the Given the uncertainty about how portfolio sons, that have experienced a population de- following changes to the budget request: reengineering will work, the conferees be- crease and have had a 100-year old federal +$2,150,000 for the Mickey Leland National lieve it is critical to be able to evaluate the naval installation closed by the Base Closure Urban Air Toxics Research Center. framework immediately. Furthermore, the and Realignment Commission. +$2,500,000 for the American Water Works information gathered through the dem- Amendment No. 46: Inserts language pro- Association Research Foundation. onstration will be valuable to the authoriz- posed by the Senate to promote fair housing +$700,000 for continued study of livestock ing committees as they craft legislation to: and free speech. and agricultural pollution abatement. (1) decrease the escalating costs of section 8 Amendment No. 47: Deletes language pro- +$750,000 for oil spill remediation research rental assistance; (2) prevent mortgage de- posed by the Senate to limit HUD from in- at the Louisiana Environmental Research faults; (3) protect against resident disloca- suring any section 220 projects under the Na- Center at McNeese State University. tion; and (4) resolve associated tax issues. tional Housing Act for more than $250,000,000 +$1,100,000 to continue the PM–10 study in Under the legislation, HUD is required to without sending a justification to the Con- the San Joaquin Valley, California. renew for up to one year all FHA-insured gress and inserts technical provisions to: 1) +$750,000 for continuation of the Resource mortgages with section 8 contracts with transition to the new account structure; 2) and Agriculture Policy Systems Program at rents at or below 120 percent of the fair mar- coordinate tax credits and section 8 assist- Iowa State University. ket rent for an area. This safe-harbor pro- ance allocated to projects in New Brunswick, +$1,500,000 for EPSCoR. vides HUD with the administrative ability to New Jersey; 3) extend the authority of the +$1,000,000 for a study of the salinity of the focus on those FHA-insured multifamily City of Los Angeles to use up to 25% of its Salton Sea by the University of Redlands. housing projects with significantly oversub- CDBG allocation for public services; 4) deter- +$1,200,000 for the lower Mississippi River sidized rents. Projects with contract rents mine rent level in the section 236 program; interagency cancer study (LMRICS). above 120 percent of fair market rent may and 5) revise the Fair Housing Initiatives +$750,000 for research on environmental have their section 8 contracts renewed at 120 Program (FHIP) to clarify that funds shall lung disease through the National Jewish percent of the fair market rent, enter into a not be used to lobby the Congress or execu- Center for Immunology and Respiratory mortgage workout, or participate in the tive branches of government. Medicine. demonstration. TITLE III—INDEPENDENT AGENCIES— +$1,000,000 for the Center for Air Toxics HUD is provided with flexible tools, includ- CORPORATION FOR NATIONAL AND Metals. ing reinsurance authority, the use of project- +$300,000 for the clean air status and trends COMMUNITY SERVICE based and tenant-based assistance, authority network (CASTNet) monitoring stations in to forgive debt, budget-based rents, the use NATIONAL AND COMMUNITY SERVICE PROGRAMS New England. of bifurcated mortgages, partial and full pay- OPERATING EXPENSES +$1,500,000 for the Water Environmental ment of claim authority, credit enhance- Amendment No. 48: Appropriates Research Foundation. ments, the ability to enter into risk-sharing $400,500,000 for national and community serv- +$1,000,000 for research on the health ef- arrangements and the sale of benefits and ice programs operating expenses as proposed fects of arsenic. burdens of FHA multifamily mortgage insur- by the Senate, instead of $365,000,000 as pro- +$5,000,000 for the Mine Waste Technology ance. posed by the House. The House, in section 427 Program. HUD is authorized to enter into contracts of the general provisions, reduced this appro- +$250,000 for research and development with qualified state housing finance agen- priation and the appropriation for the Office needs in onsite and alternative water and cies, local housing agencies, and nonprofits of Inspector General to zero. The conference wastewater systems through the National as a partner or as a designee to administer agreement deletes the part of that provision Decentralized Water Resources Capacity De- the program for HUD. HUD may contract which eliminates funding for the national velopment Project. and subcontract with private-sector entities service programs. ¥$17,600,000 from the Environmental Tech- who have the expertise and capacity nec- Amendment No. 49: Limits funds for edu- nology Initiative, leaving $10,000,000 for tech- essary to ensure that mortgage cational awards to not more than $59,000,000 nology verification activities. restructurings are handled to the best advan- as proposed by the Senate, instead of to not ¥$10,000,000 from the increase proposed for tage of the Federal government, the develop- more than $40,000,000 as proposed by the the climate change action plan. ment, the community and the residents. House. ¥$2,200,000 from the EMAP program. The importance of carrying out this dem- Amendment No. 50: Limits funds for grants ¥$7,000,000 from academic graduate fellow- onstration effectively cannot be overstated under the National Service Trust, including ships. H10750 CONGRESSIONAL RECORD — HOUSE September 20, 1996 ¥$20,398,000 as a general reduction. In +$2,500,000 for environmental justice activi- +$2,000,000 to demonstrate the latest tech- determing the level of general reduction ties. nology in utilizing reclaimed water from a under this account, the conferees note that +$4,550,000 for rural water technical assist- wastewater treatment facility in Silverton, directed reductions were not taken for en- ance activities in addition to the levels pro- Oregon. forcement and for hiring additional employ- vided in the budget request, including +$500,000 to continue the model coordi- ees. Rather, the conferees agree that this $2,100,000 for activities of the National Rural nated tribal water quality program in Wash- general reduction be taken on an equitable Water Association; $900,000 for RCAPs; ington State. basis from all intramural (salaries and ex- $150,000 for the GWPC; $350,000 for the Small +$400,000 to continue the Maui algal bloom penses) and extramural (contracts and Flows Clearinghouse; $1,000,000 for the Na- project. grants) activities at the Agency, including tional Environmental Training Center; and +$400,000 to continue support of the Ala management and support, research, enforce- $50,000 to establish a regional waste water Wai Canal water improvement demonstra- ment, regulatory activities and technical as- training center at Vermont Technical Col- tion project. sistance. lege. +$700,000 for the solar aquatic waste water The conferees encourage EPA to work with +$1,000,000 to continue the onsite treatment demonstration project in Ver- institutions of higher learning to establish wastewater treatment demonstration pro- mont. and operate small public water system tech- gram through the Small Flows Clearing- +$850,000 for the Nebraska municipal gov- nology assistance centers, the need for which house. ernments mandates initiative. was recognized in the recently enacted Safe +$2,500,000 for the Southwest Center for En- +$525,000 for an early childhood initiative Drinking Water Act Amendments. vironmental Research and Policy. in environmental education. The conferees support the continuation of +$700,000 to enable the Long Island Sound +$1,000,000 for a Federal contribution to the the Superfund Innovative Technology Eval- Office to continue the implementation of the New York City watershed protection pro- uation (SITE) program, which has been Sound’s long-term conservation and manage- gram. moved to the science and technology ac- ment plan. +$250,000 for the Nature Conservancy of count, at the budget request level. The pro- +$250,000 for a study of EPA’s Mobile Alaska for protection of the Kenai River wa- gram is expected to focus on the validation Source Emissions Factor Model to be con- tershed. and verification of the performance of inno- ducted by the National Academy of Sciences. +$1,500,000 for wastewater training grants vative technologies developed by the private +$500,000 for ongoing programs of the Ca- under section 104(g) of the Clean Water Act. sector that will serve to reduce remediation naan Valley Institute. +$200,000 to continue the cleanup of Five +$900,000 for continuing work on the water times and costs. Island Lake. Within 90 days of enactment of this Act, quality management plan for Skaneateles, +$500,000 for the Alabama Department of the conferees direct EPA to enter into an Owasco, and Otisco Lake watersheds. Environmental Management to conduct a +$300,000 for continuing work on the agreement with the National Academy of study on innovations in sewer system devel- Cortland County, New York aquifer protec- Sciences (NAS) to conduct a comprehensive opment and operation. tion plan. +$100,000 for a demonstration project on two-year study of the human health effects +$1,500,000 for the National Institute for of synthetic and naturally occurring sub- the use of oysters to improve water quality Environmental Renewal for development of in Chesapeake Bay tributaries. stances that may have an effect in humans an integrated environmental monitoring and that is similar to an effect produced by the +$1,000,000 for a small business compliance data management system. demonstration project pursuant to section hormone estrogen, and such other hormone +$3,000,000 for a sludge-to-oil-reactor related effects as EPA may designate. The 215 of the Small Business Regulatory En- (STORS) and nitrogen removal system dem- forcement Fairness Act of 1996. conferees expect this study will examine the onstration project in the San Bernardino occurrence, toxicological data, mechanisms +$1,000,000 for a grant program to assist es- Valley Municipal Water District. tablished conservancies to develop or com- of action, and relative risk of synthetic and +$1,250,000 for the South Shore Tahoe naturally occurring hormone related toxi- plete stream restoration or watershed man- Transportation demonstration. agement plans as approved by CALFED con- cants in the causation of human health prob- +$3,500,000 for the Lake Hollingsworth lake sistent with the Bay-Delta Category III Pro- lems. Because of the recent enactment of dredging technology demonstration, Lake- gram. The conferees expect that the Agen- provisions mandating the development of land, Florida. cy’s fiscal year 1998 budget estimates will screening programs for these substances, the +$5,000,000 for the West Palm Beach, Flor- identify in detail the funds and programs study should also address issues central to ida potable water reuse demonstration dedicated to implementation of the Bay- the development of a cost-effective screening project. program, including how to select and +$290,000 for an analysis of the perennial Delta Accord, and, in addition, expect that prioritize chemicals for testing, which test yield of good quality groundwater in the the Agency’s 1997 Operating Plan will iden- or tests to include in a screening program, Wadsworth Sub-basin for the town of tify the funding amounts provided all pro- and the most appropriate way to use the re- Fernley, Nevada. grams and projects which will serve to ad- sulting information in developing risk esti- +$2,000,000 for continuing work on the New vance or are consistent with the implemen- mates. If the EPA has already entered into York/New Jersey Dredge Decontamination tation of the Accord. an agreement or agreements with the NAS pilot study authorized by section 405 of the +$1,000,000 for the Michigan Biotechnology with regard to hormone related toxicants, Water Resources Development Act of 1992. Institute’s pilot program for commercializ- the EPA is expected to merge all such stud- +$900,000 for continuation of the Sac- ing environmental technologies of national ies into one report. The conferees expect ramento River Toxic Pollutant Control pro- strategic benefit. such study to be completed within two years gram, to be cost shared. +$200,000 for the Alabama Water and and ask the NAS to transmit the subsequent +$500,000 for the small water system coop- Wastewater Institute to train and upgrade report to the Committees on Appropriations erative initiative at Montana State Univer- waste treatment works operators and main- as well as to the EPA. Prior to release of the sity. tenance personnel as required by the Clean study and before proposing any regulations +$320,000 for the regional environmental fi- Water Act. or testing programs that address estrogen or nance centers. ¥$5,000,000 from the new sustainable devel- hormone related characteristics, the Agency +$300,000 for recycling and reuse tech- opment challenge grant program. is directed to thoroughly consult with the nology development at the Iowa Waste Re- ¥$43,500,000 from the ETI program. The NAS and to consider the findings and rec- duction Center. conferees agree that the design for the envi- ommendations of this study. The conferees +$1,000,000 for the non-profit For the Sake ronment (DfE) initiative should not be treat- expect that any written comments submit- of the Salmon to fund watershed coordina- ed as part of the ETI program and is thus not ted by the NAS on a proposed regulation, as tors for salmon protection in the Pacific included in this reduction. $48,000,000 from climate change action well as any EPA response to such comments, Northwest. ¥ plan programs. The conferees note that these will be published as part of any final EPA +$2,000,000 to continue the leaking above programs will remain funded at nearly rulemaking on this matter. ground storage tank demonstration in the Finally, the conferees agree that of the State of Alaska. $68,000,000, which is similar to that provided $35,000,000 transferred to science and tech- +$250,000 for the final year of EPA’s dem- in fiscal year 1996. $500,000 from the Gulf of Mexico program. nology from hazardous substance superfund, onstration program on the Potomac River’s ¥ $2,000,000 from EPA’s air programs. $2,500,000 is for the Gulf Coast Hazardous north branch of an acid mine drainage reme- ¥ ¥$1,000,000 from low priority programs spe- Substance Research Center. diation project. +$300,000 to continue the evaluation of cifically related to NAFTA. ENVIRONMENTAL PROGRAMS AND MANAGEMENT ground water quality in Missouri. ¥$2,500,000 from non-specific regulatory Amendment No. 58: Appropriates +$1,000,000 for a Missouri watershed initia- programs as outlined in the budget request. $1,710,000,000 for environmental programs and tive cooperative demonstration project with ¥$2,000,000 from the National Service Ini- management instead of $1,704,500,000 as pro- the Food and Agricultural Policy Research tiative. posed by the House and $1,731,000,000 as pro- Institute to link economic and environ- ¥$7,000,000 from the Montreal Protocol fa- posed by the Senate. mental data with ambient water quality. cilitation fund, thus level-funding this pro- The conferees are in agreement with the +$750,000 for the Lake Champlain manage- gram at the 1996 level. following changes to the budget request: ment plan. ¥$1,000,000 from the GLOBE program. September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10751 ¥$121,014,000 as a general reduction. In de- The conferees are aware that the EPA is $107,220,000 as proposed by the House and termining the level of general reduction under court order to make a decision on $27,220,000 as proposed by the Senate. under this account, the conferees note that whether to change the current National Am- Amendment No. 60: Inserts language pro- directed reductions were not taken for en- bient Air Quality Standard for Particulates. posed by the House and stricken by the Sen- forcement, management and support, or for The court has ordered the EPA to issue a ate which authorizes construction of a con- new hires. Rather, the conferees agree that proposed decision by November 29, 1996, and solidated research facility at Research Tri- this general reduction be taken on an equi- a final decision by June 28, 1997. The con- angle Park, North Carolina. Such authoriza- table basis from all intramural (salaries and ferees note that at present, there appears to tion provides for construction of this new fa- expenses) and extramural (contracts and be insufficient data available for the Agency cility through incrementally funded multi- grants) activities of the Agency, including to decide what changes, if any, should be year contracts at a total maximum cost of management and support, enforcement, reg- made to the current standard. In particular, $232,000,000, permits obligation of funds pro- ulatory activities and technical assistance. some scientists have concluded that current vided in this Act, and prohibits EPA from Of the amounts contained herein, the con- data do not adequately demonstrate causal- obligating monies in excess of those amounts ferees have provided up to $500,000 to con- ity or provide sufficient information to es- made available in Appropriations Acts. tinue efforts to ensure smooth implementa- tablish a specific new control strategy. The conferees note that of the $87,220,000, tion of notification of lead-based paint haz- Moreover, the EPA’s Clean Air Scientific Ad- $27,220,000 is available for necessary repair ards during real estate transactions, direct visory Committee is meeting soon to begin and maintenance costs at all EPA facilities, that no less than $300,000 be allocated to the to design its recommended particulate re- as well as renovation and construction costs Northeast States for Coordinated Air Use search program for the Agency. The con- for EPA’s new headquarters facilities. The Management to provide technical assistance ferees further note that, at EPA’s request, remaining $60,000,000, added to the $50,000,000 $18,800,000 has been included in the con- and policy guidance to its member States, appropriated in fiscal year 1996, provides ference agreement for research on particu- and expect that the National Environmental nearly one-half of the total construction late matter. Given that monitoring and re- Education and Training Foundation will be costs of this important and necessary new search into causality have only just begun, funded at the same ratio as it was during fis- research facility. cal year 1996. Within the amount provided the conferees believe it may be premature for the Office of Small and Disadvantaged for the Agency to promulgate new particu- HAZARDOUS SUBSTANCE SUPERFUND Business Utilization, the Agency is encour- late standards at this time. The conferees Amendment No. 61: Appropriates aged to make training grants to small, mi- encourage EPA to consider a ‘‘no change’’ $1,394,245,000 for hazardous substance nority and women-owned businesses for haz- option as part of its proposed decision due by superfund as proposed by the Senate instead ardous waste cleanup; for lead-based paint November 29, 1996, and for its final decision of $2,201,200,000 as proposed by the House, and abatement; for radon activities; and for un- due in June, 1997. The conferees expect to inserts language proposed by the Senate derground storage tank cleanup. continue to support the EPA’s research and which provides that $100,000,000 of the appro- The conferees note that the implementa- monitoring programs to develop the nec- priated amount shall not become available tion of new legislation on drinking water and essary data as quickly as possible. until September 1, 1997. food safety likely will require some redirec- The conferees are concerned regarding the Included in the appropriated level are the tion of EPA resources. Given that these bills practical utility of requiring the submittal following amounts: of more information from the regulated com- were only recently enacted, the Committees $906,238,000 for response action/cleanup ac- munity associated with EPA’s planned ex- on Appropriations were unable to consider tivities, including $36,754,000, the budget re- pansion of the Toxics Release Inventory associated funding requirements. The con- quest, for brownfields activities. (TRI). The conferees understand that the pa- ferees therefore expect EPA to address any $171,194,000, the budget request, for enforce- perwork burden on businesses and state and funding requirements for implementation of ment activities. local government associated with EPA re- these important statutes, such as drinking $124,874,000 for management and support, quirements has increased over the past year, water health effects research, in the Agen- including $11,000,000 to be transferred to the despite an initiative to reduce paperwork. cy’s operating plan. Office of Inspector General. Further, EPA has neither an integrated pro- The conferees recognize that leaking above $64,000,000 for the Agency for Toxic Sub- gram to manage information nor an inven- ground tanks storing petroleum or petro- stances and Disease Registry (ATSDR). tory of current reporting requirements on leum products pose complex challenges for Within this amount, the conferees direct the regulated community. Despite new infor- communities, and can threaten groundwater, that up to $4,000,000 be used for minority mation-gathering initiatives, EPA has pro- the most critical source of drinking water. health professions, no less than the fiscal posed no improvement in the collection, The conferees are concerned that EPA has year 1996 level be made available for continu- analysis, and communication of information yet to take substantive action on many rec- ation of the health effects study on the con- to the public on its own priorities, perform- ommendations made by the General Ac- sumption of Great Lakes fish, and $900,000 be ance, or the effectiveness of such initiatives counting Office in two reports. The conferees made available for continuation of the can- in improving the public’s ‘‘right-to-know.’’ cer cluster study in the Toms River area of strongly urge EPA to address gaps in the Moreover, EPA has not sufficiently consid- New Jersey. The conferees note in this re- program identified in the GAO reports, in- ered options to maximize the use of informa- gard that some $300,000 has previously been cluding secondary containment, overfill pre- tion already reported by facilities and avail- expended by ATSDR for this study, thus the vention, testing, inspection, compatibility, able to citizens locally under the federal $900,000 made available in this action will installation, corrosion protection, and struc- Emergency Planning and Community Right- bring to $1,200,000 the amount so far avail- tural integrity of petroleum tanks in excess to-Know Act (EPCRA) in its efforts to ex- able for this important activity. of 42,000 gallons. EPA is further urged to con- pand TRI to include more data on chemical $53,527,000 for the National Institute for sider ways of streamlining the administra- uses. tion of the above ground storage tank pro- The conferees thus direct a study by the Environmental Health Sciences (NIEHS), in- gram. General Accounting Office to: cluding $32,527,000 for research activities and The conferees direct the Agency to report (1) Identify options for improving the $21,000,000 for worker training. to the Committees on Appropriations on the right-to-know program to more effectively $30,000,000, the fiscal year 1996 level, for number of chemical waste landfills that have address community concerns regarding risks transfer to the Department of Justice. received waivers of the siting requirements associated with chemicals and to commu- $9,412,000, the budget request, for reimburs- under the Toxic Substances Control Act nicate risks to the public; able activities of other Federal agencies, in- (TSCA), pursuant to 40 CFR 761.75(c)(4), and (2) Evaluate EPA information management cluding the U.S. Coast Guard, NOAA, FEMA, describe in detail the process by which re- practices, their utility in implementing the OSHA and the Department of the Interior. quests for such waivers are considered and Government Performance and Results Act $35,000,000 to be transferred to the science approved. Further, the conferees encourage (GPRA), and their overall effectiveness in re- and technology account for necessary and the Agency to respond thoroughly to all ducing paperwork requirements. appropriate research activities. Of this comments filed by local governments and (3) Recommend ways to increase account- amount, the conferees note that $2,500,000 is knowledgeable parties on the TSCA permit ability among federal agencies in complying available for the Gulf Coast Hazardous Sub- application for PCB-waste disposal in Wayne with existing TRI reporting requirements. stance Research Center and direct that other County, Michigan, prior to any final action (4) Address the effectiveness of current such research centers be funded at an appro- on that application. mechanisms required under EPCRA at the priate level at least equal to the funding The conferees express their support for local level in providing existing information level provided in fiscal year 1996. EPA’s continued funding to allow the on chemicals to the public; and The conferees expect the Agency to quick- Sokaogon Chippewa Community to assess (5) Assess whether existing and new infor- ly act on the direction contained in the the environmental impacts of a proposed sul- mation requirements are designed to support House report regarding an ATSDR study in fide mine project. The conferees expect the the Agency’s planning, budgeting, and ac- Caldwell County, North Carolina. The con- EPA to work within existing funds to assist countability system that will implement ferees also direct that all fiscal year 1996 car- the Sokaogon Chippewa Community in their GPRA. ryover funds be applied to response action/ efforts to contribute adequate and up-to-date BUILDINGS AND FACILITIES cleanup activities. information to federal agencies reviewing Amendment No. 59: Appropriates $87,220,000 The conferees note that on June 4, 1996, the mine proposal. for buildings and facilities instead of EPA announced an administrative reform to H10752 CONGRESSIONAL RECORD — HOUSE September 20, 1996 allow interest to accrue on site-specific spe- ferees note that $28,000,000 is for multi-media and to that end the conferees direct the cial accounts in which Superfund settlement tribal general assistance grants or perform- Agency to develop a standard cost-share con- funds dedicated to specific site cleanups are ance partnership grants, at a Tribe’s request. sistent with fiscal year 1995. held. Under this new policy, accrued interest The conferees recognize that this level, Amendment No. 71: Inserts language as would directly benefit the Superfund site and which is the budget request, exceeds the au- proposed by the Senate which permits the the community where the site is located, and thorized ceiling of $15,000,000 included in the Administrator of EPA to make grants to prevent the funds which parties pay in set- Indian Environmental General Assistance States, from funds available for obligation in tlement from losing value over time. The Programs Act. The conferees also agree that, the State under title II of the Federal Water conferees applaud the Agency’s decision to within the amount provided for wetlands im- Pollution Control Act, as amended, for ad- move forward with this administrative re- plementation grants, EPA may make funds ministering the completion and closeout of a form which can control remedy costs, pro- available to states to assist them with the State’s construction grants program. The mote cost-effectiveness, decrease litigation, routine expenses of conducting section 404 conferees agree that this provision is needed increase fairness in the enforcement process, regulatory programs that have been assumed in many States due to the appropriation of and reduce transaction costs in the by the States. over $1,800,000,000 since 1991 for wastewater Superfund program. The conferees urge the Amendment No. 68: Provides $1,900,000,000 grant projects and in view of the expiration EPA, as well as the Department of Justice, of the appropriated amount for capitaliza- of the section 205(g) reserve for such manage- Office of Management and Budget, and the tion grants for State revolving funds to sup- ment activities. Department of the Treasury, to move for- port water infrastructure financing instead Amendment No. 72: Provides $1,900,000,000 ward to implement this administrative im- of $1,800,000,000 as proposed by the House and of the appropriated amount for capitaliza- tion grants for State revolving funds to sup- provement as soon as possible. $1,976,000,000 as proposed by the Senate. Finally, the conferees are concerned about Amendment No. 69: Inserts language pro- port water infrastructure financing instead of $1,800,000,000 as proposed by the House and the lack of progress at Pepe Field Superfund posed by the Senate which permits a specific $1,976,000,000 as proposed by the Senate. Site, Boonton, New Jersey. EPA is directed cost-shared grant to the State of Alaska to Amendment No. 73: Provides $1,275,000,000 be used for water supply infrastructure needs to finalize the remedial design immediately for drinking water State revolving funds as of rural and Alaska Native Villages. and to proceed with the construction rem- proposed by the Senate instead of $450,000,000 Amendment No. 70: Provides $136,000,000 of edy. as proposed by the House. Public Law 104–134 the appropriated amount for making specific Amendment No. 62: Provides $1,144,245,000 stipulated that drinking after SRF funds to- wastewater, water and groundwater protec- of the appropriated amount from the taling $725,000,000—$225,000,000 of which was tion infrastructure grants instead of superfund trust fund as proposed by the Sen- appropriated in fiscal year 1995 and $129,000,000 as proposed by the House and no ate instead of $1,951,200,000 as proposed by $500,000,000 of which was appropriated in fis- the House. funding as proposed by the Senate, and in- cal year 1996—would revert to the clean Amendment No. 63: Provides $64,000,000 of serts language proposed by the House and water SRF on August 1, 1996 unless author- the appropriated amount for the Agency for stricken by the Senate which makes such ization for the drinking water SRF was en- Toxic Substances and Disease Registry funds available in accordance with the terms acted prior to that date. This authorization (ATSDR) as proposed by the Senate instead and conditions set forth in the Conference was unfortunately not completely until of $59,000,000 for ATSDR as proposed by the Report and statement of managers accom- shortly after that date, but too late to pre- House. panying this Act. vent the movement of funds to the clean Amendment No. 64: Deletes language pro- The conferees direct that such grants be water SRF. Noting that the clean water SRF posed by the House and stricken by the Sen- used for the following projects in the follow- thus received an infusion of $725,000,000 just ate which provided that $861,000,000 of the ap- ing amounts: prior to the beginning of fiscal year 1997, the propriated level be available for obligation $2,550,000 for continued wastewater needs conferees have agreed to reduce the 1997 only upon enactment of future appropria- in Bristol County, Mass.; clean water SRF appropriation by this tions legislation that specifically makes $40,000,000 for continued wastewater needs amount and use the funds to increase the these funds available for obligation. in Boston, Mass.; drinking water SRF over the $550,000,000 they Amendment No. 65: Deletes language pro- $8,500,000 for continued wastewater needs have otherwise agreed upon as the appro- posed by the House and stricken by the Sen- in New Orleans, La.; priate fiscal year 1997 level. ate which provided that $1,200,000 of the ap- $11,000,000 for continued water development The conferees note further, however, that propriated amount be made available for the needs of the Mojave Water Agency, Calif.; because the authorization for the drinking ATSDR to conduct a cancer cluster study in $8,500,000 for continued development of the water State revolving fund did not actually the Toms River area of the State of New Jer- Des Plaines River system TARP activity in occur until just prior to the Senate complet- sey. The conferees have provided an addi- Chicago, Ill.; ing action on the 1997 appropriation legisla- tional $900,000 for this study included in the $16,000,000 for continuation of the Rouge tion, neither Appropriations Committee was appropriated amount for the ATSDR. River National Wet Weather Project; able to review fully and make accommoda- Amendment No. 66: Appropriates $60,000,000 $13,600,000 for continuing clean water im- tion for all new provisions of this legislation. for the leaking underground storage tank provements at Onondaga Lake; While the conferees expect that the funds trust fund as proposed by the Senate instead $5,400,000 for wastewater improvements in provided for clean water State revolving of $66,500,000 as proposed by the House. the East Cooper Area of Berkeley County, fund capitalization grants will be distributed S.C.; STATE AND TRIBAL ASSISTANCE GRANTS by the Agency in a manner similar to such $2,000,000 for sewer infrastructure improve- distribution in prior years, the funds pro- Amendment No. 67: Appropriates ments in Kodiak, Ak.; vided for drinking water State revolving $2,875,207,000 for state and tribal assistance $8,000,000 for water quality improvements fund capitalization grants should be distrib- grants instead of $2,768,207,000 as proposed by to Tanner Creek in Portland, Ore.; uted to all eligible governmental agencies the House and $2,815,207,000 as proposed by $2,850,000 for water treatment facility re- and should be used solely for such capitaliza- the Senate. placement and improvements for the Agua tion grants and grants for public water sys- From within the appropriated level, the Sana Water Users Association, N.M.; tem expenditures. conferees agree to the following amounts: $5,000,000 for wastewater treatment im- Amendment No. 74: Deletes language pro- $625,000,000 for clean water State revolving provements in Middlebury, Vt.; posed by the House and stricken by the Sen- fund capitalization grants. $1,750,000 for wastewater treatment im- ate which stipulated that if legislation au- $1,275,000,000 for drinking water State re- provements in O’Neil, Neb.; thorizing a drinking water State revolving volving fund capitalization grants. $5,000,000 for the Taney County, Mo. Com- fund is not enacted prior to June 1, 1997, the $100,000,000 for architectural, engineering, mon Sewer District for its wastewater im- funds appropriated for a drinking water planning, design, construction and related provements project; State revolving fund shall immediately be- activities in connection with the construc- $2,000,000 for the Northeast Ohio Regional come available for making capitalization tion of high priority water and wastewater Sewer District wet weather pollution abate- grants under title VI of the Federal Water facilities in the area of the United States- ment program; Pollution Control Act, as amended. This pro- Mexico border. $1,700,000 for nine wastewater improvement vision became moot when such legislation $50,000,000 for cost-shared grants to the projects in Essex County, Mass., including was enacted on August 6, 1996. State of Texas to improve wastewater treat- $1,000,000 for the South Essex Sewage Dis- Amendment No. 75: Inserts language pro- ment for colonias. trict; posed by the Senate which provides that the $15,000,000 for cost-shared grants to the $1,000,000 for water delivery system im- funds made available in Public Law 103–327 State of Alaska to address water supply and provements in the Virgin Valley Water Dis- for a grant to the City of Bangor, Maine wastewater infrastructure needs of rural and trict, Nev.; and shall be available to that city as a grant for Alaska Native Villages. $1,150,000 for waste water improvement meeting combined sewer overflow require- $136,000,000 for special needs wastewater needs in Franklin, Huntington, and ments. treatment and groundwater protection infra- Clearfield Counties, Pennsylvania. Amendment No. 76: Inserts language pro- structure grants. The conferees are in agreement that the posed by the Senate which provides that $674,207,000 for state and tribal program/ Agency should work with the grant recipi- States which have not received funds allot- categorical grants. Of this amount, the con- ents on appropriate cost-share agreements ted from the $725,000,000 (that, pursuant to September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10753 law, became available on August 1, 1996) dur- shrub replacement except in public parks, of $168,000,000 as proposed by the House and ing fiscal year 1996, may still be eligible for and recreational facilities, has been deleted $166,733,000 as proposed by the Senate. reallotment of 1996 funds as long as they re- without prejudice, in order to give the Agen- Amendment No. 82: Appropriates $4,673,000 ceive their allotment of the August 1, 1996 cy an opportunity to address the issue of for the Office of Inspector General as pro- funds during fiscal year 1997. controlling disaster relief expenditures in a posed by the Senate instead of $4,533,000 as ADMINISTRATIVE PROVISION comprehensive manner. The conferees are proposed by the House. troubled by the findings of a recent Inspector Amendment No. 83: Appropriates Amendment No. 77: Deletes language pro- General report, upon which the Senate $206,701,000 for emergency management plan- posed by the House and stricken by the Sen- amendment was based, which found substan- ning and assistance instead of $209,101,000 as ate which would have permitted the transfer tial sums have been awarded from the disas- proposed by the House and $199,101,000 as pro- of funds made available to any Environ- ter relief fund to restore golf courses, eques- posed by the Senate. mental Protection Agency account to be trian trails, and the like. While the Stafford The conferees are in agreement with the transferred to the Science and Technology Act may not disallow such expenditures, the following changes to the budget request: account for necessary research activities, conferees believe such disbursements may +$500,000 for a comprehensive analysis and subject to applicable reprogramming re- not be appropriate and can no longer be ac- plan of all evacuation alternatives for the quirements. commodated. There are many other exam- New Orleans metropolitan area. The conferees note that this provision was ples of opportunities for reducing disaster re- +$3,400,000 for costs associated with the re- intended to give the Agency flexibility in lief expenditures and improving management placement and upgrade of emergency re- providing for new research found necessary controls on the fund, some of which can be sponse vehicles and equipment. The con- and appropriate for a particular EPA pro- implemented administratively, and some of ferees agree that much of FEMA’s equipment gram which was not known or specifically which require statutory changes. is obsolete and in need of repair or replace- provided for when the budget was developed The conferees note that the FEMA Direc- ment, and understand that there will be a and the appropriations process completed. tor testified before the Senate committee significant long-term cost associated with Because of the time lapse between the begin- earlier this year that he would submit by Oc- the upgrade of such equipment. This addi- ning and end of each fiscal year’s overall tober 1, 1996, a proposal for controlling disas- tional $3,400,000 appropriation, for example, process, specific research which was not ter relief expenditures. Because it appears will only provide adequate resources to re- planned for or given a low priority at the be- likely that this commitment will not be place UHF/VHF radios and ancillary equip- ginning of the budget process may become met, the conferees have included a statutory ment. In light of the great needs to upgrade necessary or of much greater importance provision requiring such a submission within equipment and thus provide better response near the end of the fiscal year. This provi- 120 days of enactment of this Act. support to disaster events, the Agency is di- sion would have permitted limited transfers Last year, FEMA established a disaster re- rected to provide a comprehensive list on a among EPA accounts to accommodate the sources board to oversee the process of devel- priority basis of all needs in this regard, in- changing research needs of the Agency in oping and reviewing disaster relief funding cluding the purchase of necessary vehicles this circumstance. requests for activities not associated with a and equipment of MERS and MATTS, as well In lieu of adopting this provision at this specific disaster. The conferees are con- as new systems such as the MIDAS system. time, the conferees direct that the Agency cerned that the board has a significant The first such list should be submitted along review their potential need for such a provi- amount of autonomy in deciding whether or with the fiscal year 1998 budget request and sion and advise the Committees on Appro- not to charge a particular non-disaster spe- should then be updated throughout each year priations on the results of this review prior cific activity to the fund, and wish to be on an as-needed basis. to Congressional hearings on the fiscal year kept apprised of all activities of the board +$1,700,000 to complete the Earthquake 1998 budget request. through reports detailing any decisions made Hazard Mitigation Program with the City of to charge additional non-disaster specific ac- Portland, Oregon and the Oregon Depart- EXECUTIVE OFFICE OF THE PRESIDENT tivities to the fund. The first such report ment of Geology and Mineral Industries COUNCIL ON ENVIRONMENTAL QUALITY AND should be submitted along with the fiscal (DOGAMI). OFFICE OF ENVIRONMENTAL QUALITY year 1998 budget request. The conferees agree to up to $2,000,000 for Amendment No. 78: Appropriates $2,436,000 The conferees are aware of efforts in the FEMA’s participation in appropriate pre-dis- for the Council on Environmental Quality State of California to develop a disaster re- aster mitigation efforts. The conferees agree and Office of Environmental Quality as pro- sponse system to integrate local, regional, with FEMA’s Director that mitigation ac- posed by the Senate instead of $2,250,000 as state, and federal emergency management tivities can ultimately save significant sums proposed by the House. organizations through the sharing of inter- from past-disaster clean-up and response ac- tions and that the Agency should be taking FEDERAL EMERGENCY MANAGEMENT AGENCY related data applications which will aid and accelerate efficient planning, coordination, an increasingly active role in developing and Amendment No. 79: Appropriates and response to disaster. FEMA is directed participating in pre-disaster mitigation pro- $1,320,000,000 for disaster relief as proposed to work with the State in the development of grams. Such programs range in scope from by the Senate instead of $1,120,000,000 as pro- this system and determine the type of assist- the development and/or funding of mitiga- posed by the House. ance, both technical and financial, which tion plans for communities to participation Amendment No. 80: Deletes language pro- would be of greatest help to the State in this with industries, insurers, building code offi- posed by the Senate and inserts in lieu there- effort. cials, government agencies, engineers, re- of language which requires the Director of Finally, the conferees note that urban searchers and others in developing systems the Federal Emergency Management Agency search and rescue (USAR) is a critical ele- and facilities to test structures in disaster- to submit a comprehensive report regarding ment of effective response to earthquakes like circumstances. The conferees under- disaster relief expenditures and management and other disasters, and are very supportive stand that these activities will require an in- controls within 120 days of enactment of this of this program. However, the conferees are fusion of considerable up-front financial sup- Act. Language is also inserted which makes concerned that not all of the FEMA USAR port as well as the possible movement over all disaster relief funds appropriated in this teams are considered fully operational at time of disaster relief funds to pre-disaster Act available for immediate obligation. this time, and note that the geographical programs, and the Agency is expected to use The conferees have provided $1,320,000,000 distribution of the teams appears to be inad- up to the $2,000,000 provided herein in an ap- in disaster relief funds for fiscal year 1997, equate, particularly in the Midwest. In addi- propriate manner to begin the process of and have included language making all such tion, the conferees are aware of concerns movement toward a meaningful pre-disaster funds immediately available for obligation. that current funding for each of the teams mitigation program. Expenditure of these When the 1997 appropriation is added to the may be insufficient. The conferees therefore funds may not, however, be made until sub- $3,700,000,000 appropriated in prior years and direct FEMA to report within 60 days of en- mission to the Committees on Appropria- still available for obligation, FEMA will actment of this Act on, (1) the appropriate tions of an appropriate pre-disaster mitiga- have in excess of $5,000,000,000 to respond to number and geographical distribution of tion spending plan. both past and anticipated 1996 disaster situa- USAR teams, (2) the process for discontinu- The conferees note the Administration’s tions, including the recent Hurricane Fran. ing support to teams which are not fully September 12, 1996 submission of a budget The conferees have been assured that this operational, and the Agency’s plans to dis- amendment for counter-terrorism activities level of available disaster relief funds makes continue such teams, and (3) funding require- for several agencies, including FEMA, total- a disaster supplemental appropriation un- ments for a viable program. As a replace- ing $1,097,000,000. The conferees strongly sup- necessary at this time. ment for inadequately funded or not fully port counter-terrorism activities, such as The conferees have agreed to a statutory operational USAR teams, FEMA is further grants to state and local emergency respond- provision requiring FEMA to submit a com- directed to establish at least one new USAR ers for specialized training and equipment, prehensive report within 120 days of enact- team, taking into account adequate finan- consequence management planning and co- ment of this Act on its plans to reduce disas- cial support, operational abilities, and geo- ordination, and field training and exercises. ter relief expenditures and improve manage- graphical distribution, as quickly as possible The conferees direct FEMA to propose appro- ment controls on the disaster relief fund. but no later than 180 days of enactment of priate funding levels for necessary counter- The Senate amendment prohibiting the ex- this Act. terrorism activities in its operating plan. penditure of disaster relief funds for the re- Amendment No. 81: Appropriates Amendment No. 84: Inserts language pro- pair of yacht harbors or golf courses, tree or $167,500,000 for salaries and expenses instead posed by the Senate, with a technical H10754 CONGRESSIONAL RECORD — HOUSE September 20, 1996 change, which permits FEMA to spend such for fiscal year 1997 and that additional fund- provision which gives the NASA Adminis- sums as are necessary during fiscal year 1997 ing will be included in the fiscal year 1998 trator authority to transfer up to $177,000,000 to conduct natural disaster studies consist- budget submission. among accounts. ent with law. The technical change refers to With the exception of the $5,000,000 reduc- The conferees have deleted the administra- the citation of law, 42 U.S.C. 4127(c), in lieu tion to GLOBE, the conferees are directing tive provision which will allow for payments of the citation referred to in the Senate no specific reduction to Mission to Planet of up to $25,000 to employees who volunteer amendment. Earth programs. for separation from NASA. Instead the con- Amendment No. 85: Inserts language pro- The conferees agree to provide an addi- ferees have included a general provision posed by the Senate which extends the au- tional $10,000,000 for education programs. In- (Section 439) which will allow for payments thorization for the National Flood Insurance cluded in the increase is $300,000 for upgrades of up to $25,000 to employees who volunteer Fund program for one year until September to the Mobile Aeronautics Education Lab- for separation, provides for repayment to the 30, 1997. oratory, $250,000 is provided for a feasibility government of the separation incentive if GENERAL SERVICES ADMINISTRATION study to create a national residential high the employee accepts reemployment with school at Lewis Research Center, $250,000 is CONSUMER INFORMATION CENTER FUND the Government or receives an annuity for provided to begin replication of the Science, disability, requires an additional agency Amendments Nos. 86 and 87: Deletes House Engineering, Mathematics, and Aeronautics contribution to the Civil Service Retirement language providing for a limitation of Academy program, and $300,000 is for the and Disability Fund, reduces full-time equiv- $2,602,000 on administrative expenses and in- Classroom of the Future’s Astronomy Vil- alent employment levels, and requires NASA serts Senate language modifying the House lage Program to increase the learning effec- to report to the Office of Personnel Manage- provision establishing a gift fund for the pur- tiveness of the Classroom by assessing and ment by March 31 of each fiscal year on the pose of defraying costs of operations of the improving student scientific inquiry abili- execution of this provision. Consumer Information Center. ties. In place of the separation incentive admin- The conferees agree that the Consumer In- The conferees designated $10,000,000 for mu- istrative provision, the conferees have also formation Center is to take over responsibil- seum programs. It is the intent of the con- included an administrative provision provid- ity for production and distribution of the ferees that $8,000,000 is to be used for the pur- ing transfer authority to NASA. It is the in- Consumer Resource Handbook in addition to poses outlined on page 82 of House Report tent of the conferees that this authority will other duties it currently performs. The con- 104–628. An additional $2,000,000 is provided be used to transfer funds between the ferees further agree to include bill language for initial development of a national proto- Science, Aeronautics and Technology ac- which authorizes the Consumer Information type space education curriculum. This cur- count and the Human Space Flight account Center to accept private sector donations to riculum shall be designated to heighten stu- to the extent required for development/con- defray the costs of printing, publishing, and dent interest and involvement in science, struction to maintain the schedule of the distributing consumer information and edu- technology and space programs by utilizing space station program. To ensure that there cational material, and undertaking the education and technology base of NASA is no adverse effect on any NASA program, consumer information activities. and the nation’s science museum and plan- the conferees provide general transfer au- NATIONAL AERONAUTICS AND SPACE etarium network. The conferees expect thority of up toe $177,000,000 to be used at the ADMINISTRATION NASA to provide approximately $1,000,000 of discretion of the Administrator and subject HUMAN SPACE FLIGHT these funds to the Bishop Museum, Honolulu, to the case-by-case approval by the House The conferees fully support deployment of Hawaii for development of the curriculum, and Senate Appropriations Committees. The the space station but recognize the funds ap- with the remainder to be spent on replica- conferees note that this authority is re- propriated by this Act for the development tion and distribution of the curriculum to quired because the current split between de- of the space station may not be adequate to educational institutions nationwide. velopment/construction funding and science cover all potential contractual commitments MISSION SUPPORT funding is not properly phased. should the program be terminated for the The conferees direct the NASA Adminis- NATIONAL SCIENCE FOUNDATION convenience of the Government. Accord- trator to submit a multi-year workforce re- RESEARCH AND RELATED ACTIVITIES ingly, if the space station is terminated for structuring plan on how NASA will achieve Amendment No. 90: Appropriates the convenience of the Government, addi- its stated fiscal year 2000 full-time equiva- $2,432,000,000 for Research and Related Ac- tional appropriated funds may be necessary lent (FTE) goal with the agency’s fiscal year tivities, as proposed by the Senate instead of to cover such contractual commitments. In 1998 budget and updated annually with budg- $2,431,110,000 as proposed by the House. the event of such termination, it would be et submissions through fiscal year 2000. This The conferees agree that the reduction the intent of the conferees to provide such plan shall: 1) outline a timetable for restruc- from the budget request, $40,000,000, is to be additional appropriations as may be nec- turing the workforce at NASA Headquarters allocated by the National Science Founda- essary to provide fully for termination pay- and field Centers; 2) incorporate annual FTE tion in accordance with its internal proce- ments in a manner which avoids impacting targets by broad occupational categories and dures for resource allocation, subject to ap- the conduct of other ongoing NASA pro- address how these targets reflect the respec- proval by the House and Senate Committees grams. tive missions of Headquarters and the field on Appropriations. SCIENCE, AERONAUTICS AND TECHNOLOGY Centers; 3) describe personnel initiatives, Of the increase provided for Research and Amendment No. 88: Appropriates such as relocation assistance, early retire- Related Activities above the fiscal year 1996 $5,762,100,000 for Science, Aeronautics and ment incentives, and career transition as- level, the conferees direct the National Technology, as proposed by the Senate, in- sistance which NASA will use to achieve per- Science Foundation to make available up to stead of $5,662,100,000 as proposed by the sonnel reductions. The plan shall minimize $1,400,000 to pay any tariff duties assessed on House. social and economic impacts, using ‘‘reduc- the Gemini project, consistent with Senate The conference agreement reflects the fol- tions in force’’ to the minimum extent prac- language under the Major Research Equip- lowing changes from the budget request: ticable. Consistent with applicable law and ment account. In providing these funds, the a general reduction of $95,000,000; regulation, NASA shall provide advance no- conferees direct the Foundation to place GLOBE is reduced by $5,000,000; tice of separations to employees and local them in reserve prior to all directorate allo- an increase of $4,000,000 for cardiac imag- entities and appropriate assistance to af- cations made in conjunction with their fiscal ing; fected employees. year 1997 operating plan. an increase of $4,000,000 for the space radi- The conferees are concerned about NASA’s The conferees note that government policy ation program; plans to delay the Consolidated Space Oper- in the area of duties and/or tariffs on sci- an increase of $2,000,000 for high speed civil ations Contract. In particular, the conferees entific instruments is under review with re- transport research; note the potential increased costs associated gard to this program and encourage the U.S. an increase of $5,000,000 for the WindSat with this delay. Given these potential costs, Customs Service to act in a responsive man- program; the conferees ask NASA to provide, within 90 ner by recognizing that any assessed duties an increase of $12,000,000 for radar satellite; days, the rationale behind the decision to on this program will be paid by an arm of the an increase of $10,000,000 for museum pro- delay and to outline its plans for the Con- U.S. government, in this case the National grams; solidated Space Operations Contract. Science Foundation, and will do nothing to an increase of $12,000,000 for advanced The conferees direct NASA to implement a increase the net financial position of the space transportation; Wallops 2000 plan for NASA activities at United States Government. an increase of $10,000,000 for the TIMED Wallops Island which maintains sufficient The conferees are in receipt of a report by program; and agency investment to ensure stabilization, the National Science Foundation, requested an increase of $10,000,000 for education pro- as well as full utilization, of the Wallops by the House and Senate Committees on Ap- grams. workforce. propriations, which addresses the possible The conferees have agreed to provide ADMINISTRATIVE PROVISIONS addition of a new Navy-owned, university-op- $12,000,000 for a new start for the Light SAR Amendment No. 89: Replaces Senate ad- erated Class 1 Oceanographic Research Ves- program. The conferees understand that this ministrative provision providing for pay- sel to the academic fleet. The report con- amount of funding is in conformance with ments of up to $25,000 to employees who vol- cludes that there is not current need to re- NASA’s expected execution of this program unteer for separation from NASA with a new place any of the four large general purpose September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10755 oceanographic ships currently in the aca- offspring of Vietnam veterans with spina ate prohibiting the Environmental Protec- demic fleet because all of these ships have 10 bifida, and to offset the cost of such benefits tion Agency from using its funds to allow to 30 years of service life remaining. While by requiring that there be an element of the importation of PCB waste to be inciner- the conferees on the Department of Defense fault as a precondition for entitlement to ated in the United States. Appropriations Bill for fiscal year 1997 have compensation for a disability or death re- Amendment No. 104: Deletes language pro- agreed to provide funding for construction of sulting from health care or certain other posed by the House and stricken by the Sen- a new large vessel, such a vessel is not need- services furnished by VA, amended to delay ate prohibiting the Environmental Protec- ed at this time and the cost of operating the the effective date until October 1, 1997, un- tion Agency from using hazardous substance ship will most likely exacerbate an already less legislation is enacted to provide for an superfund funding to implement any retro- constrained budget. Therefore, the conferees earlier effective date. This delay will provide active liability discount reimbursement. direct the Office of Naval Research to work the committees of jurisdiction an oppor- Amendment No. 105: Deletes language pro- with the University-National Oceanographic tunity to address this matter. posed by the House and stricken by the Sen- Laboratory System through its normal re- Amendment No. 96: Deletes language pro- ate simplifying downpayment methods on view process to ensure that the vessel will fit posed by the House and stricken by the Sen- FHA-insured loans, and inserts language pro- the needs of the oceanographic community ate prohibiting the payment of salaries of posed by the Senate regarding the calcula- and takes into consideration the overall bal- personnel who approve acquisition of super- tion of a downpayment on an FHA mortgage ance between research funding and ship oper- computing equipment when the Department originated in Alaska or Hawaii and delegat- ations funding. of Commerce has determined that the equip- ing single family mortgage insuring author- ment is being offered at other than fair ity to direct endorsement mortgagees, MAJOR RESEARCH EQUIPMENT value. amended to limit the applicability of the The conferees do not agree with the Senate The National Center for Atmospheric Re- downpayment provisions to fiscal year 1997. direction to use $1,400,000 of funding in the search (NCAR), which is operated largely Amendment No. 106: Deletes language pro- Major Research Equipment account to pay with support from the National Science posed by the House and stricken by the Sen- U.S. Customs duties assessed on the Gemini Foundation, has been conducting a competi- ate prohibiting the National Aeronautics and Telescope project. The conferees have ad- tion for the acquisition of a new supercom- Space Administration from continued par- dressed this issue elsewhere in the report. puter. NCAR, in its bid process, selected a ticipation in a joint Russia-France-United EDUCATION AND HUMAN RESOURCES computer offered by a Japanese company. On States cooperative life sciences experiment Amendment No. 91: Appropriates August 20, 1996, the Department of Com- program known as Bion 11 and Bion 12. Amendment No. 107: Deletes language pro- $619,000,000 for Education and Human Re- merce announced that it was initiating an posed by Senate regarding compliance by the sources, instead of $612,000,000 as proposed by investigation to determine whether Japanese Environmental Protection Agency with the House and $624,000,000 as proposed by the vector supercomputers were being dumped in the United States. Included in this investiga- international obligations under the World Senate. Trade organization. The House bill contained The conference agreement includes the fol- tion was a bid submitted in the NCAR pro- no similar provision. lowing reductions: curement. On that same date, the National Science Foundation requested that the The conferees have deleted, without preju- (1) $2,000,000 from grants for graduate fel- dice, language expressing the sense of the lowships; NCAR procurement be held in abeyance. On September 11, 1996, the U.S. Inter- Senate that EPA should provide a full and (2) $5,000,000 from grants for undergraduate national Trade Commission determined in a open administrative process in the formula- curriculum development; preliminary investigation that there is a rea- tion of any final rule regarding the importa- (3) $2,500,000 from K–12 curriculum and as- sonable indication that a U.S. industry is tion of reformulated and conventional gaso- sessment development; and threatened with material injury by reason of line. The conferees note that, in response to (4) $3,000,000 from research, evaluation and imports of vector supercomputers that are a dispute settlement finding against the communication. allegedly sold at less than fair value. As a re- United States by the World Trade organiza- The conferees agree that these reductions sult of this determination, the Department tion, the United States informed the WTO on are provided as guidance to the National of Commerce will continue to conduct its June 19, 1996 that the U.S. intends to meet Science Foundation; these funding levels are antidumping investigation on imports of its international obligations with respect to subject to established reprogramming proce- such equipment, with a preliminary deter- the EPA requirements on imported reformu- dures, subject to the approval of both the mination expected by January 6, 1997, and a lated and conventional gasoline. The con- House and Senate Appropriations Commit- final determination by March 1997. ferees recognize that EPA has initiated an tees. Amendment No. 97: Deletes language pro- open process to examine any and all options Funding for Informal Science is increased posed by the House and stricken by the Sen- for compliance with international obliga- by $10,000,000 which will result in a total of ate prohibiting NASA from providing funds tions of the United States in which a key cri- $36,000,000 for this vitally important pro- for the National Center for Science Literacy, terion will be fully protecting public health gram. The conferees expect that these addi- Education and Technology at the American and the environment, and fully support such tional funds will be used to support and Museum of Natural History. an open process and the involvement of in- strengthen systemic reform efforts funded Amendment Nos. 98–100: Deletes language terested environmental and industrial orga- elsewhere in this account. In addition, the proposed by the House and stricken by the nizations. conferees request that the National Science Senate prohibiting the use of funds made However, the conferees expect that this Foundation report back to the Committees available by this Act for any institution of process will not result in the reinstatement on Appropriations of the House and Senate higher education which excludes Reserve Of- of the rule title ‘‘Regulations of Fuels and on its plans for implementing this direction. ficer Training Corps or military recruiting Fuel Additives: Individual Foreign Refinery Funding for EPSCoR is increased by from its campus or any entity that fails to Baseline Requirements for Reformulated $2,500,000 for a total of $38,410,000. The in- comply with reporting requirements of law Gasoline’’ proposed on May 3, 1994 (59 Fed. crease for EPSCoR is to be used for advanced concerning the employment of certain veter- Reg. 84), or one similar to it. Further, the computing, networking and joint projects. ans. conferees direct the Administrator of the En- Amendment No. 101: Deletes language pro- vironmental Protection Agency, in evaluat- SALARIES AND EXPENSES posed by the House and stricken by the Sen- ing any option for compliance with inter- Amendment No. 92: Appropriates ate increasing VA’s medical care appropria- national obligations, to: (1) take fully into $134,310,000 for salaries and expenses as pro- tion by $40,000,000 and general operating ex- account the protection of public health and posed by the Senate instead of $125,200,000 as penses appropriation by $17,000,000, offset by the environment and the international obli- proposed by the House. an across-the-board reduction of 0.4 percent. gations of the United States as a member of NEIGHBORHOOD REINVESTMENT CORPORATION The conferees note that scorekeeping credit the World Trade Organization; (2) ensure PAYMENT TO THE NEIGHBORHOOD was not given for the offset. that the compliance review process does not REINVESTMENT CORPORATION Amendment No. 102: Deletes language pro- result in the degradation of gasoline quality Amendment No. 93: Appropriates $49,900,000 posed by the House and stricken by the Sen- required by the Clean Air Act with respect to ate increasing VA’s medical care appropria- for payment to the neighborhood reinvest- conventional and reformulated gasoline; (3) tion by $20,000,000 and medical and prosthetic ment corporation as proposed by the Senate not recognize individual foreign refiner base- research appropriation by $20,000,000, offset instead of $50,000,000 as proposed by the lines unless the Administrator determines by eliminating all funds for the Corporation House. that the issues of auditing, inspection of for- for National and Community Service; and in- eign facilities, and enforcement have been TITLE IV—GENERAL PROVISIONS serts language increasing the medical care adequately addressed; and (4) provide a full Amendment No. 94: Inserts language pro- appropriation carried in title I by $5,000,000. and open administrative process in the for- posed by the Senate modifying the travel ex- This amount, together with the funds carried mulation of any final rule. pense limitation in section 401 to accommo- in title I under the medical care heading, Amendment No. 108: Inserts language pro- date the change to budget estimates, includ- will provide $17,013,447,000 for medical care, posed by the Senate permitting fiscal year ing object classifications, which have been an increase of $5,000,000 above the Adminis- 1997 and prior year funds provided under sec- rounded to the nearest million dollars. tration’s budget request. tion 320(g) of the Federal Water Pollution Amendment No. 95: Inserts language pro- Amendment No. 103: Deletes language pro- Control Act, as amended, to be used for im- posed by the Senate authorizing benefits for posed by the House and stricken by the Sen- plementation (rather than just development) H10756 CONGRESSIONAL RECORD — HOUSE September 20, 1996 of conservation and management plans made gage-backed securities loan guarantee pro- made as soon as possible to the Internal Rev- pursuant to this section. gram account as proposed by the Senate. enue Code, specifically subtitle K of the In- Amendment No. 109: Inserts language pro- TITLE VI—NEWBORNS’ AND MOTHERS’ ternal Revenue Code of 1986 (as added by sec- posed by the Senate requiring a plan for the HEALTH PROTECTION ACT OF 1996 tion 401(a) of the Health Insurance Port- allocation of VA health care resources so Amendment No. 117: The conference agree- ability Accountability Act of 1996), in order veterans have similar access to such care re- ment includes the Senate amendment with to fully implement these provisions as part gardless of where they live. modifications, including the deletion of off- of chapter 100 of the Code. The conferees recognize that precipitous sets. It incorporates the requirements of the TITLE VII—PARITY IN THE APPLICATION changes in allocations amongst VA’s facili- provision and the authority to enforce the OF CERTAIN LIMITS TO HEALTH BENE- ties could be very difficult for individual fa- requirements into the new part 7 of subtitle FITS cilities to manage. While the conferees sup- B of ERISA and the new title XXVII of the Amendment No. 118. The conference agree- port VA’s efforts to amend its resource allo- Public Health Service Act as established by ment includes the Senate amendment with cation methodology based on a capitation P.L. 104–191. It does not include the excep- modifications. It incorporates the require- model—which is intended to bring about a tion to the requirement for the 48-hour or 96- ment into the new part 7 of subtitle B of more equitable distribution of resources— hour minimum stay in the case that the plan title I of ERISA and the new title XXVII of they expect the Department to ensure that provides for post-delivery follow-up care. It the Public Health Service Act as established fiscal year 1997 serve as a ‘‘bridge’’ in moving adds a prohibition that a health plan cannot by Public Law 104–191. The construction to the new system so as to provide an adjust- restrict benefits for any portion of the re- ment period for facilities to adapt to the new quired minimum 48-hour or 96-hour stay in a clause has been modified to state that noth- model. The conferees further expect that no manner which is less favorable than the ben- ing in this section shall be construed as— veteran currently receiving care by the VA efits providing for any preceding portion of (1) requiring a group health plan (or health will be denied VA health care services as a such stay. In addition, the conference agree- insurance coverage offered in connection result of the new allocation methodology. ment provides that nothing in this provision with such a plan) to provide any mental The VA is to prepare a report by January 31, is intended to be construed as preventing a health benefits; or 1997, on its progress in adjusting to and im- group health plan or issuer from imposing (2) in the case of such a plan or coverage pacts of the new methodology, and be pre- coinsurance, deductibles, or other cost-shar- that provides such mental health benefits, as pared to discuss this matter during the fiscal ing in relation to benefits for hospital affecting the terms and conditions (including year 1998 budget hearings. lengths of stay in connection with childbirth cost sharing, the limits on numbers of visits Amendment No. 110: Inserts language pro- for a mother or newborn child under the plan or days of coverage, and requirements relat- posed by the Senate requiring a General Ac- (or under health insurance coverage offered ing to medical necessity) relating to the counting Office audit on staffing and con- in connection with a group health plan), ex- amount, duration, or scope of mental health tracting of the Office of Federal Housing En- cept that such coinsurance or other cost- benefits under the plan or coverage, except terprise Oversight. sharing for any portion of a period within a as specifically provided in regard to parity in Amendment No. 111: Amends language pro- hospital length of stay required under sub- the imposition of aggregate lifetime limits posed by the Senate prohibiting the consoli- section (a) may not be greater than such co- and annual limits for mental health benefits. dation of NASA aircraft based east of the insurance or cost-sharing for any preceding This language affirms the intent of conferees Mississippi River to the Dryden Flight Re- portion of such stay. It is the intent of the that group health plans and issuers retain search Center. conferees that cost-sharing not be used in a the flexibility, consistent with the require- Amendment No. 112: Deletes language pro- manner that circumvents the objectives of ments of the Act, to define the scope of bene- posed by the Senate revising the name of the this title. It provides for a modification to fits, establish cost-sharing requirements, and Japan-United States Friendship Commis- the notice requirements by conforming them to impose limits on hospital days and out-pa- sion. to the summary of material modifications tient visits. Parity of mental health services Amendment No. 113: Inserts new language under ERISA. In general, it conforms the with medical and surgical services defined on separation incentive payments for NASA provision relating to preemption to State under a group health plan is limited solely to personnel which had been included in the laws to the Health Insurance Portability and any aggregate dollar life-time limit and any Senate bill as an administrative provision Accountability Act of 1996. Notwithstanding annual dollar limit under such a plan. The and modifies the language to restrict its ap- section 731(a)(1) of ERISA and sections conference agreement clarifies that the re- plicability. Modifies language proposed by 2723(a)(1) and 2762 of the Public Health Serv- quirements apply to each group health plan, the Senate authorizing the conveyance of ice Act, the new provisions shall not preempt and, in the case of a group health plan that certain real property under the jurisdiction a State law that requires health insurance offers two or more benefit packages, the par- of NASA to the City of Downey, California, coverage to include coverage for maternity ity requirements shall be applied separately amended to assign certain responsibilities to and pediatric care in accordance with guide- with respect to each such option. In addi- the Administrator of the General Services lines established by the American College of tion, the conference agreement applies an Administration. Obstetricians and Gynecologists, the Amer- exemption to small employers as defined in The conferees intend that the concurrence ican Academy of Pediatrics, or other estab- the Health Insurance Portability and Ac- of the Administrator of the General Services lished professional medical associations. In countability Act; adds certain definitions; Administration in the conveyance by NASA addition, those sections shall not be con- and applies the requirements of the provision of Parcels III through VI of the NASA Indus- strued as superseding a State law that leaves to group health plan years beginning on or trial Plant, Downey, California to the City of decisions regarding the appropriate hospital after January 1, 1998. The agreement does Downey shall be based upon completion of a length of stay in connection with childbirth not include the Senate language relating to disposal screening for possible utilization of entirely to the attending provider in con- effective dates for the Federal Employee sultation with the mother. In addition, it is the subject parcels by other Federal agencies Health Benefit Plan. initiated by GSA on September 10, 1996. Fur- the intent of the conferees that, consistent It is the intent of the conferees that a de- thermore, it is the intent of the conferees with section 704 (redesignated as section 731) tailed series of conforming changes shall be that nothing in this amendment shall pre- of ERISA and section 2723 of the Public made as soon as possible to the Internal Rev- vent the City of Downey from entering into Health Service Act, the application of the enue Code, specifically subtitle K of the In- ground leases for periods in excess of 20 years preemption provision should permit the op- ternal Revenue Code of 1986 (as added by sec- in order to secure construction financing eration of any State law or provision which tion 401(a) of the Health Insurance Port- without triggering the reconveyance provi- requires more favorable treatment of mater- ability and Accountability Act of 1996), in sion. nity coverage under health insurance cov- order to fully implement these provisions as TITLE V—SUPPLEMENTALS erage than that required under this title. It is the intent of the conferees that health part of chapter 100 of the Code. Amendment No. 114: Inserts new heading as plans have sufficient flexibility to encourage The conferees intend that a limit be con- proposed by the Senate. or specify that attending providers follow sidered to apply to ‘‘substantially all medi- DEPARTMENT OF VETERANS AFFAIRS nationally recognized guidelines for mater- cal and surgical benefits’’ if it applies to at VETERANS BENEFITS ADMINISTRATION nal and perinatal care in determining when least two-thirds of all the medical and sur- gical benefits covered under the group health Amendment No. 115: Inserts language ap- early discharge is medically appropriate. plan’s benefit package. propriating a supplemental amount of Throughout the title, the conferees have $100,000,000 for compensation and pensions as used the term ‘‘hospital length of stay’’ to It is the intent of the conferees that, con- proposed by the Senate. indicate that a requirement for coverage of a sistent with section 704 (redesignated as sec- 48-hour stay following vaginal delivery and a tion 731) of ERISA and section 2723 of the DEPARTMENT OF HOUSING AND URBAN 96-hour length of stay following a cesarean Public Health Service Act, the application of DEVELOPMENT section delivery is triggered by any delivery the preemption provision should permit the GOVERNMENT NATIONAL MORTGAGE in connection with hospital care, regardless operation of any State law or provision ASSOCIATION of whether the delivery is in a hospital inpa- which requires more favorable treatment of Amendment No. 116: Inserts language pro- tient or outpatient setting. mental health benefits under health insur- viding additional 1996 commitment authority It is the intent of the conferees that a de- ance coverage than that required under this of $20,000,000,000 in the guarantees of mort- tailed series of conforming changes shall be section. September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10757 CONFERENCE TOTAL—WITH COMPARISONS The message also announced that the and the money and the influence back The total new budget (obligational) au- Senate had passed with amendments in home where it belongs. That is where thority for the fiscal year 1997 recommended which the concurrence of the House is we are attempting to empower people by the Committee of Conference, with com- requested, bills of the House of the fol- back home, because we have, one, faith parisons to the fiscal year 1996 amount, the lowing titles: in their ability to make the right deci- 1997 budget estimates, and the House and Senate bills for 1997 follow: H.R. 3068. An act to accept the request of sions but, also, that they will make the the Prairie Island Indian Community to re- New budget (obligational) decisions that are necessary for them voke their charter of incorporation issued authority, fiscal year in their own local communities. under the Indian Reorganization Act; 1996 ...... $82,442,966,000 When we set out on this journey al- Budget estimates of new H.R. 3159. An act to amend title 49, United most a year ago today, we were run- (obligational) authority, States Code, to authorize appropriations for ning on a Contract With America; 8 re- fiscal year 1997 ...... 87,820,371,000 fiscal years 1997, 1998, and 1999 for the Na- tional Transportation Safety Board, and for forms on the opening day of the session House bill, fiscal year 1997 83,995,260,000 and 10 reforms in the first 100 days. I Senate bill, fiscal year 1997 84,810,153,000 other purposes; Conference agreement, fis- H.R. 3378. An act to amend the Indian remember some in the editorial boards cal year 1997 ...... 84,800,283,000 Health Care Improvement Act to extend the would say how could I be part of this Conference agreement demonstration program for direct billing of ‘‘Contract With America,’’ as if I had compared with: Medicare, Medicaid, and other third party done something wrong. The more I New budget payors; thought about it, I thought what an ab- (obligational) author- H.R. 3539. An act to amend title 49, United surdity. We are passing eight reforms. ity, fiscal year 1996 ...... +2,357,317,000 States Code, to reauthorize programs of the Budget estimates of new Federal Aviation Administration, and for We are passing 10 major issues in the (obligational) author- other purposes; and first 100 days; and it does not criticize ity, fiscal year 1997 ...... ¥3,020,088,000 H.R. 3723. An act to amend title 18, United President Clinton, it does not criticize House bill, fiscal year States Code, to protect proprietary economic then the majority in Congress, our col- 1997 ...... +805,023,000 information, and for other purposes. leagues on the other side of the aisle. It Senate bill, fiscal year The message also announced that the is a positive plan for America. 1997 ...... ¥9,870,000 Senate insists upon its amendment to So I wondered whey they asked the JERRY LEWIS, the bill (H.R. 3539) ‘‘An Act to amend question. I proceeded to respond by BARBARA F. VUCANOVICH, title 49, United States Code, to reau- simply asking them: What do you JAMES T. WALSH, thorize programs of the Federal Avia- think of the majority party’s Contract DAVID L. HOBSON, With America, the 8 things they want JOE KNOLLENBERG, tion Administration, and for other pur- RODNEY P. poses,’’ requests a conference with the to do on the opening day of Congress; FRELINGHUYSEN, House on the disagreeing votes of the the 10 things they want to do in the BOB LIVINGSTON, two Houses thereon, and appoints, Mr. first 100 days? And I just enjoyed the LOUIS STOKES, PRESSLER, Mr. STEVENS, Mr. MCCAIN, silence. And I said is it not amazing ALAN B. MOLLOHAN, Mr. HOLLINGS, and Mr. FORD, to be the that the minority party then, this Re- JIM CHAPMAN, conferees on the part of the Senate. publican Party, knew what it wanted MARCY KAPTUR, The message also announced that the to do, said then it would do, and was DAVID R. OBEY, proud of that effort? Managers on the Part of the House. Senate had passed a bill of the follow- ing title, in which the concurrence of When we got elected people said we CHRISTOPHER S. BOND, the House is requested: used this contract to get elected but we CONRAD BURNS, S. 39. An act to amend the Magnuson Fish- would not seek to implement it be- TED STEVENS, ery Conservation and Management Act to cause it might be too controversial and RICHARD C. SHELBY, authorize appropriations, to provide for sus- take on some of the special interests ROBERT F. BENNETT, tainable fisheries, and for other purposes. BEN NIGHTHORSE that had been entrenched so long in CAMPBELL, f Washington and we might stir up some things. We clearly stirred up some MARK O. HATFIELD, NEW REPUBLICAN MAJORITY BARBARA A. MIKULSKI, things, but for the good of the Nation. CHANGES DIRECTION OF THE PATRICK J. LEAHY, Mr. Rabin, for former Prime Minister NATION J. BENNETT JOHNSTON, of Israel said: Politicians are elected FRANK R. LAUTENBERG, The SPEAKER pro tempore (Mr. MIL- by adults to represent the children. J. ROBERT KERREY, LER of Florida). Under the Speaker’s This is about what kind of world they ROBERT C. BYRD, announced policy of May 12, 1995, the Managers on the Part of the Senate. going to have. gentleman from Connecticut [Mr. Mr. Speaker, we set out to imple- f SHAYS] is recognized for 60 minutes. ment these eight reforms the first day MESSAGE FROM THE SENATE Mr. SHAYS. Mr. Speaker, I appre- of Congress. The first was a bill that, A message from the Senate by Mr. ciate the opportunity to follow my col- Mr. Speaker, you and I worked on Lundregan, one of its clerks, an- league from California, and also appre- closely: Getting Congress under all the nounced that the Senate had passed ciate your willingness to take your laws that we impose on everyone else. without amendment bills of the House time. I know you probably are getting We were exempted for OSHA, civil of the following titles: ready to get back to your district. I rights, fair labor practices, the 40-hour H.R. 2464. An act to amend Public Law 103– will not take my full hour. I am not work week. We put ourselves under the 93 to provide additional lands within the going to tell you how much time I will same laws as everyone else. What a State of Utah for the Goshute Indian Res- take, but I think it will be signifi- great way to start that Congress. ervation, and for other purposes; cantly less than that. We also reduced the size of commit- H.R. 2512. An act to provide for certain Mr. Speaker, I cannot tell you what tees by a third, reducing the staff by a benefits of the Pick-Sloan Missouri River it is like to think about what we have third. We reduced by $220 million the basin program to the Crow Creek Sioux done in the last 2 years, because I have size of our budget. So we started to set Tribe, and for other purposes; H.R. 2982. An act to direct the Secretary of tremendous pride and satisfaction and the example. We were going to ask gov- the Interior to convey the Carbon Hill Na- gratitude that I have had the oppor- ernment to do with less. We were going tional Fish Hatchery to the State of Ala- tunity to serve in Congress and to be to start with our own Congress. bama; part of this new majority that really And so we saved in the last 2 years H.R. 3120. An act to amend title 18, United has attempted, and I think succeeded, $420 million. Our budget is actually States Code, with respect to witness retalia- in changing the direction that this $220 million less than it was 2 years tion, witness tampering and jury tampering; country is headed. ago. So not only did we not add money and H.R. 3287. An act to direct the Secretary of I think we are starting to end 40 for inflation, we actually are spending the Interior to convey the Crawford National years of bloated government, ineffi- $220 million less; and over 2 years saved Fish Hatchery to the city of Crawford, Ne- cient government, ineffective govern- the taxpayers almost a half a billion in braska. ment and starting to turn the power expenditures. H10758 CONGRESSIONAL RECORD — HOUSE September 20, 1996 We got rid of absurd perks like the Now, why would we balance the budg- the election. Case closed. Unfortu- ice bucket. I am embarrassed to sug- et? Because in the last 22 years our na- nately, with that kind of attitude, gest that we even had the ice buckets, tional debt has gone up 10 times, from Medicare will continue to go deeper but before the refrigerators we had ice, $480 billion to $5.2 trillion. Not doubled, and deeper into the direction that it is but after the refrigerators we had ice. not tripled, not quadrupled; 10 times in headed which is literally bankruptcy. We had 28 people in this Congress that 22 years in a time of relative peace. b 1100 would go around and drop off an ice And getting back to Mr. Rabin, he bucket to everyone, even though we said we are elected to represent our How do I know that? Because we have had ice in our refrigerators. We elimi- children. Just think what we are doing one report from the administration nated that kind of absurdity and others by ignoring that. We have taken a debt that says, last year, that Medicare as well. that was $480 billion and allowed it to would go bankrupt in the year 2002. We We privatized some of the operations grow to $5.2 trillion, and guess who then had them come back to us and of Congress, making it more efficient pays for it? Our kids. That is the prob- then so what did we do? What did this and effective and making it more log- lem of deficit spending. We are asking Congress do? This Congress tried to ical. There were times when we needed someone else to pay for what we get to save Medicare, to preserve and protect, to use an office for extreme times of enjoy and what we get to consume. basically to defend the system against mail going out, and other times there Now, we do not have a fetish with bankruptcy. Medicare is health care for was not enough mail going out. Yet we balancing the budget. In other words the elderly and for the disabled, and so hired enough people to maximize for this is not the end-all and be-all. That what did we do? We devised a very im- when we had that kind of workload. is simply not it. But how do you build portant plan that saves this program. We got rid of proxy voting. Proxy a strong structure on a foundation that In the process, we did not cut, but al- voting was an interesting concept. It is crumbling? Getting our financial lowed the program to increase. was a sheet of paper that the chairman house in order is the financial basis on This is the most important thing I had in his pocket and he would take which we built smart, sensible, caring think I need to say. We allowed Medi- the sheet out of his pocket and when programs. care to grow from about $178 to $289 an amendment was offered by his own So that is what we are about. We are billion, a 60-percent increase from last party that he did not like, the chair- about building smart, caring, sensible year now to the 6th year in the year man—I say ‘‘he’’ because until this programs and getting rid of a whole 2002. We allowed it to grow 60 percent. year there was never a woman that was host of programs that have been there Some said, you have a lot more seniors. chair of a committee—and the chair- for so long that they do not make It is true. On a per senior basis we man would take it out, and he would sense. They are just kind of like that allow it to grow 49 percent. From have the list of all of his committee ice bucket that we got rid of. It is sym- $4,800, to $7,100. members and he would vote for them. bolic, but think of how stupid it was to So on a per person basis we are allow- That was called proxy voting. It was have the ice bucket every day coming ing Medicare to grow significantly in right on his list. So the chairman was to our office when we have refrigera- terms of total dollars, 7 percent more so powerful that he could even thwart tion in our office. Spending $400,000 a each year, 60 percent total in the the will of his own party and the will of year for those ice buckets times two, course of the difference between last his members because he always had $800,000 in the course of 2 years for year to the 7th year, and on a per per- enough in his pocket to defeat the something dumb. son basis it is going from $4,800 to amendment. So we did that, and we Now, you can relate to getting rid of $7,100. So we put lots more money into proceeded after the opening day of the an ice bucket because it did not have a the program. But we were able to save session to do things like voting for a particularly good sounding name, but the program. balanced budget amendment. there are a host of programs that we How did we save the program? We did The press got back into it. They said have. not save it by increasing the copay- how could we be for what was really a The point about the ice bucket is ment. We did not save it by increasing positive plan for America. Those 8 re- simply this: Most people can under- the deductible. And we did not save it forms on opening day; the 10 reforms in stand the waste that exists there. But by increasing the premium. Seniors the first 100 days; asking how we could then there are programs that we have were going to be asked to pay 31.5 per- be supportive of something that did not in a variety of departments and agen- cent of their premium. We did not ask criticize Congress or the President. A cies that are just as wasteful. They that that increase and the taxpayers positive plan. We said we would do it have good-sounding names. They may would continue to pay 68.5 percent. and we started to do it. And then they be in the Education Department or What did we do to save the program? said, ‘‘Well, you used it to get elected they may be in HUD, but they end up We allowed the private sector to come but you are not going to implement being very small programs that have in and compete on a fair basis with a it.’’ no critical mass and most of the money fee-for-service system and offer better Mr. Speaker, we voted for a balanced gets gobbled up by the administration programs. If a senior wanted to, a sen- budget amendment. They said that was and gets consumed by the executive ior could continue to get their tradi- easy. Anyone could vote for an amend- branch. tional fee-for-service program with no ment. But you are not going to vote to I am not blaming this Government, I increase in copayment, no increase in balance the budget. And then we start- am blaming the process, and I am actu- the deductible or the premium. But we ed to vote to balance the budget. ally critical of the fact that we failed allowed the private sector to come in, We dealt with tort reform and mal- to eliminate these programs for so long and the only way the private sector practice reform of some of these issues until now. We are getting rid of some was allowed to come into the program that the President vetoed, saving Medi- programs with good-sounding names under our legislation was if they of- care and so on. We proceeded to bal- that simply have no critical mass and fered eye care, if they offered dental ance the Federal budget and make do not accomplish anything. So we are care, if they offered maybe a rebate on some tough decisions. balancing the Federal budget to get the copayment, deductible. Some were We have three primary objectives. our financial house in order so that we going to pay the premium and some We want to get our financial house in have a strong foundation to do smart, even said they could pay the Medigap order and balance the Federal budget; sensible programs. in some parts of the country. There is we want to save our trust funds, par- We are trying to save our trust funds, so much money in Medicare that the ticularly Medicare, for future genera- particularly Medicare. Medicare is fas- private sector said they knew that tions; and, we want to transform this cinating. We are told in this political they could offer better programs than caretaking social and corporate and ag- environment we are never to talk the traditional Medicare system. ricultural welfare state into a caring about Medicare, because it is called the Then we could have seniors simply opportunity society. That is what we third rail. You talk about Medicare, say, I like my Medicare system, but if wanted to do, and that is what we set people on the other side can demagog I can get eye care and dental care out to do. it, and then you get hurt and you lost under the new Medicare system and I September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10759 can get a rebate on the copayment or spoken out so often, we know today I would certainly never say to my the premium and actually maybe even that Medicare is losing $22 million each daughter, ‘‘you do not need an edu- have my Medigap covered, I am going day, $22 million each day. We know cation,’’ and I certainly would not say to go into that program. that next year it will lose $36 million to her, ‘‘you do not need a job because A senior goes into that program. each day and in the year after it will I will be there.’’ What a destructive They get the eye care, the dental care. lose $60 million each day unless we thing to do. But that is what govern- They get the rebate on their copay- save this program by slowing its ment does. We do not do it for welfare, ment and deductible. They have more growth and taking the money that we for people who do not have education money. They even get money for pre- slow, that $270 million, that savings, and the poor who have children. We do scription drugs. Not a bad deal, the co- and plow it right back into the pro- it for corporations. We have certain tax payment and deductible and premium gram. That is what we are doing. write-offs, which I call corporate loop- did not go up. We did not increase the copayment, holes, and others call it that as well. It But let us say for some reason they the deductible, or the premium and we is really, in my judgment, programs did not like the new program. Maybe saved Medicare until at least the year that make large corporations depend- they did not like that HMO. Maybe 2010. What to me was really surprising ent on government, and they do not they did not like the doctors. Maybe was how the President could call $270 need to be. It is the reason why lobby- they did not like the attitude or the billion a cut. I illustrate it, whatever ists become so important in this coun- billing process. Maybe there was a rea- opportunity I get, in saying that if I try, because if government was not so son they did not like it. For the next 24 told my daughter that she could buy a important, if it was not doing things months we allowed seniors to go back car for $18,000 but I told her it had to be for welfare, for businesses and agri- into their traditional fee-for-service a full-sized car for $18,000, she could not culture, et cetera, and it was not so in- program. have bucket seats, she could not have trusive in your life, lobbyists would I suspect someone may have said, I power windows and she could not have not be so important in our life. am staying in my fee-for-service. I do a CD, she could not have those things. We want to make government less in- not want to think about getting any- I did not want her to buy a smaller car trusive. We want to make it smaller. thing better. So they would never have with those things. It had to be a good, And we simply want to end the welfare gone into the program to start with. large car that I wanted her to own. So that is destroying individuals. It is de- I said, consistent with my trying to But say someone who is younger might stroying corporations, and it is de- teach you how to do your own thing, have gone into the program. Then they stroying the farmer. We are trying to you will go buy your own car. help each become independent. That is did not like it, they could go back. So I give her the $18,000 or tell her it Then they could get another program why we passed the freedom to farm is available. She spends a week looking bill. We are allowing farmers to farm, that they thought was better. and comes back all excited and says, What was the big mistake that we not telling them they do not have to ‘‘Dad, I found the car of my dreams. I had in our program. We made a big farm and then they are given a subsidy. just love it, Dad, And, Dad, it has a sun mistake. One big mistake. We saved They can compete. They can maximize roof and leather seats and it even has a the return on their farm. We are get- $270 billion. I thought, that is a mis- CD.’’ And I say to her, my daughter take? But that is what the President ting the Government out of the way. Jeramy, I say, ‘‘Jeramy, I told you you We are getting the government to be said. He did not call it a savings. He could not do those things. I told you less supportive of things that are sim- called it a cut. So did my colleagues on not to get a car with all those extras. ply not necessary for corporations be- the other side of the aisle. Instead of I told you to get a full-sized car.’’ She cause we want them to compete with- allowing the program to grow at 10 per- says, ‘‘Dad, I did, I got a full-sized car out a lot of rules and regulations, ex- cent a year we said it would grow at 7 but I got all those extras and here is cept for health and safety and environ- percent a year. We put 60 percent more $2,000 back because I did not spend mental reasons. In the process, we are into the system. We gave a 49-percent $18,000, I only spent $16,000.’’ And it trying to strengthen people. We are increase per beneficiary. But we saved would have been just as absurd if I had trying to help individuals grow the $270 billion. That is, in my judgment, done this: I am ashamed of you for get- seeds and not give them the food. something we should be very, very ting all these extras in the car and That is why I am so supportive of our proud of. doing it and cutting $2,000. That would welfare reform bill. What a destructive I am happy about the bill that the be absurd. That is no different than thing to have four, not three, four gen- chairman, the gentleman from Califor- what the President did. erations of people on welfare. They are nia [Mr. LEWIS], is bringing forward. We did not cut Medicare. It grew 7 doing what their parents did and they There is more money in it for HOPWA, percent a year, 60 percent from the last are doing what their grandparents did. housing opportunities for people with year to the 7th year, 49 percent per They are staying on welfare because AIDS. He had said on the floor of the beneficiary from $4,800 to $7,100, but we they were never taught to dream. They House that we would try to address gave them no increase in copayment or were not given the kind of push they that problem. I understand there is deductible, no increase in the pre- needed and they were not given the more money for EPA that both sides mium, but what did we do? We gave kind of care they needed. could agree on and a program that I am them choice, lots of choice. They will We had job training programs that very supportive of, national service. I get better care, and we saved the pro- did not work because these were job look forward to getting this bill and gram because we got $270 billion of sav- training programs that said, you come debating it because at the same time ings, not cuts, $132 million of it to go in here and stay a bit of time. We teach we are still slowing the growth and into Medicare, part A and $138 million you something and then you are out on saving significant sums. to do and be available for Medicare, your own. Our job training programs, Mr. Speaker, just to conclude my part B, which gets me to the third area our career bill is designed so dif- point about Medicare, we did not in- of concern. ferently. It is designed to say, we want crease the copayment, the deductible, The third area of concern is simply to give you the day care, the job train- or the premium. We gave seniors that we are trying to change this care- ing, and we are going to follow you choice just like we have as Federal em- taking society into a caring society. through work. Six months from now we ployees and we saved $270 billion. That The way we do that is to make govern- are still going to be on your back. We $270 billion, half of which, as the ment smaller and to empower people. are going to be pushing, encouraging Speaker knows because he led this All of those in our own family that we you. fight, of the $270 billion, we put $132 love dearly, we try to teach them to The State of Connecticut has welfare billion right back into Medicare, part grow the seeds. The people we love the reform, and it is very caring legisla- A and the $138 billion was available for most, the people we care about the tion. It is the kind of reason why we Medicare, part B. We were looking to most, we do not give them something. passed our bill in Washington. The car- save the program. We teach them, we help them, we push ing legislation is this. We have 2 As the Speaker knows, because he them. We encourage them to grow as tracks, those who we think are employ- has been a leader in this field and has individuals. able and those who are not. Maybe H10760 CONGRESSIONAL RECORD — HOUSE September 20, 1996 they have mental challenges. Maybe b 1115 of my colleagues who serve on the com- they do not speak English well enough So we have that bill, and he finally mittees that would have done that, and now so we have to teach them English. signed it. this is what I found. What they were They have reasons why it may not be Well, we want to help people off of recommending and ultimately what we easy for them to get a job right away. dependency in government, corpora- did until the President vetoed it: We But for the vast majority, we say, you tions and agriculture; we want to give allowed the school lunch program to are going to have to work. And Con- them the job training as it relates to grow from $5.2 to $6.8 billion. Only in necticut says, 21 months. And it does it individuals, we want to give them the Washington when you go from $5.2 to this way: It helps people get the job. It day care, and we want to allow them to $6.8 billion do people call it a ‘‘cut.’’ allows them, this is really terrific, it work in their business, still keeping The President calls it a cut, I have con- does not penalize them for getting a some of their welfare benefits for a pe- stituents who think I cut it, but when job. They still can keep their entire riod of time in health care. the learned it grew from $5.2 to $6.8 bil- welfare cash payment, they still keep I am kind of drawing to a close, Mr. lion, they find that that is very accept- their health care for the 21 months. So Speaker, but I do want to address this able. they get a job, they establish them- whole issue because we have had a lot What did we do? The program is to selves for 2 years, they have this extra of people criticizing this Congress, and grow at 5.2 percent more a year. We money coming in because they have for me, it is probably one of the most said, it should grow at 4.5 percent more their jobs plus they have the actual difficult things to contemplate. For the a year, seven-tenths of a percent reduc- welfare benefits plus they get the first time in the history of Congress, tion in the growth. And what did we health care benefits. Congress is doing major heavy lifting. allow local communities to do? We cut Mr. Speaker, I remember in a Com- We are taking on some of the biggest the bureaucracy in Washington, which mittee on the Budget meeting one time and most powerful special interest saved more than the money that we re- you pointed out one reason why people groups to move this country to be more duced in the growth. Then we gave to do not get off welfare is because they caring and less a caretaker. Those who local communities and we allowed the lose their health care. I remember in want this Government to continue to State of Connecticut to say, for in- the dialogue that we had on the Com- be a caretaker are objecting to changes stance, that the school where my mittee on the Budget, the point was that we are making. daughter goes to school and where her made that people should be able to Now, we passed and slowed the dad, who makes a good salary, and her keep their health care when they are growth of some of our entitlements, mother, who makes a good salary, can pushed off of welfare so that they are but one of the ways that we are going find we do very well, my daughter’s not tempted to stay on welfare. So we to balance the budget is to slow some lunch is subsidized 17 cents by the Fed- push them in that direction. runaway programs, and in the process eral Government, every student in the of slowing these runaway programs, country, 17 cents, rich or poor, wealthy One bill that was controversial in like the Earned Income Tax Credit, the communities and poor communities, 17 this session was the minimum wage school lunch program, the student loan cents. bill. I am so proud of how the Repub- program, Medicare, Medicaid, the stu- We allowed the State of Connecticut lican Party dealt with that issue be- dent loan program actually is not run- and every other State to say, we want cause two-thirds of our party does not ning away. We are actually going along the money that is going to the wealthy agree with that issue. They think that with exact numbers of loans that we communities to continue for the poor the minimum wage is too much of an did schedule to do; we are just continu- kids in the wealthy communities, but intrusion on business. One-third sup- ing it. not for the wealthy kids in the wealthy ported it and a vast majority of people But let us take the Earned Income communities. We then allow them to on the other side supported it. But we Tax Credit. It is a payment made to take that money and put it into know that we had to do something else people who do not make enough Bridgeport and Norwalk and Stamford, if we were going to pass the minimum money, but are working to really sup- for instance, in my Fourth Congres- wage, and that was to have some sig- port themselves, so instead of paying sional District, the district I represent, nificant and meaningful tax cuts to taxes to the Federal Government, they for kids who are poor in relatively poor small businesses who employ those who pay Social Security, but instead of communities. are considered the most unemployable, paying other taxes, they actually get a Bridgeport is a working class, mid- tax credits for those on welfare, tax cash payment from the Government dle-income community, but it has a lot credits for those who simply do not that, if they do not pay enough taxes of poor people, and some kids do not have the work experience to actually or any taxes, they do not just get a re- get a breakfast, some kids do not get a be yet credible to the employer. duction in their tax, they actually get dinner, they get that lunch. We do not They know they might have to spend a payment from the Federal Govern- want to take away that lunch. We want a year or two to train that person be- ment. to give them a breakfast, and we want cause they are not well-educated and We allow that program to go from 19 to give them a lunch and a dinner for not well-trained and they need the billion to 25 billion, but our colleagues those kids, and a kid in one of my sub- training. It is a cost to the business. on the other side of the aisle say that urban communities who is well-to-do They actually are discouraged from program, the Earned Income Tax Cred- should not be subsidized. doing it under the present system until it, tax credits for the working poor, So we did not cut the school lunch we passed our tax cut bill, $8 billion. that we are destroying the program, program. We allowed it to grow from Our tax cut bill took some of the cutting the program. Only in Washing- $5.2 to $6.8 billion. things that we had in terms of our tax ton when you go from 19 million to 25 The student loan program is the one cuts when we were trying to pass the million do people call it a ‘‘cut.’’ that really gets me. $24 billion last tax cut legislation earlier, which the I mean, it is absurd. It is a growing year; that is what we spent, $36 billion President vetoed. Because the Presi- program and a very important pro- in the seventh year. Those of you who dent did veto our 7-year balanced budg- gram. We did decide that it should are thinking mathematically know we et bill, he did veto our changes to Med- apply to income levels of $28,000 or less, increased it 50 percent. Only in Wash- icare with no increase in the copay- not income levels of $36,000 or less. ington when you go from $24 billion to ment, the deductible, the premium and The school lunch program: I will $36 billion would people call it a ‘‘cut.’’ lots of choice and a savings of $270 bil- never forget watching the President But my colleagues on the other side of lion, put right back into Medicare. He visit a school, trying to frighten the the aisle call it a ‘‘cut,’’ the President vetoed it. He vetoed Medicaid reform. students and also the American people calls it a ‘‘cut.’’ It is simply not true. He vetoed welfare reform, but finally that we were cutting the school lunch There is another word for when you the third time he decided he could sup- program. I got pretty upset that we say things are not true. It is not right port it. That bill we passed was basi- would cut the school lunch program, for the President of the United States cally the same bill that we had given thinking we had done it. When I got to go around the country and simply him the first two times. back, I could not wait to speak to some not say things that are not factually September 20, 1996 CONGRESSIONAL RECORD — HOUSE H10761 incorrect, in fact, factually so incor- have done some very, very heavy lift- passed the line item veto, we passed rect that he knows that. He knows that ing. They have put, in a sense, their po- not imposing expenditures on local the student loan program is going from litical careers on the line for the good governments and State governments, $24 to $36 billion. of the country. the so-called unfunded mandate, bill, Now what we did do to save money is, We were told early on, when we got we passed welfare reform. We have we got rid of the direct student loan elected, the best way to get reelected is changed welfare as we know it; it hap- program. This was a government stu- to avoid controversy, controversy is pened under our watch because of what dent program that, basically, we tied it conceived as the enemy of the incum- we did. We have passed major changes down by getting rid of it? No, we bent. We had a freshman class and a in health care. We have passed the clamped it down to 10 percent of all number of senior members and rank telecomm bill that will create 3 million student loans. That is what we did, and and file members of this conference jobs. We passed the Freedom to Farm this is a direct student loan program that said, I do not want to be back if bill. There are just so many other bills, that the administration tried to tell us being back means we continue to allow the immigration bill that we hope to was cheaper than doing it through the the country to go bankrupt, if coming pass before we adjourn, and we have banks. back means we ignore saving Medicare helped get our country’s financial The only problem was they had not from bankruptcy, because, remember house in order. factored in all the people that the gov- now, the President vetoed our Medicare I have never ever been more proud to ernment had to hire to manage the stu- plan. be part of this institution. dent loans. So when you had a local He vetoed it last year when we f college give a direct student loan by- thought the plan was going to go bank- passing the bank, you would think it rupt by the year 2002. Now we know it SPECIAL ORDERS GRANTED would save money. But then who had is going to go bankrupt by the end of By unanimous consent, permission to to administer that student loan? You the year 2000. We know we are losing address the House, following the legis- got it, the Federal Government, and $22 million a day in Medicare, we are lative program and any special orders the Federal Government did it with losing $36 billion next year, projected, heretofore entered, was granted to: twice as many people as the banks and and $60 billion the year after that, (The following Members (at the re- at twice the cost. every day. quest of Mrs. SCHROEDER) to revise and So we just simply said, we have got Who is going to deal with that prob- extend their remarks and include ex- to make sure we do not get too deep lem? Are my colleagues on the other traneous material:) into that program because it is going side of the aisle going to do that kind Mr. FILNER, for 5 minutes, today. to be so expensive that we are going to of heavy lifting? How could they pos- Ms. WATERS, for 60 minutes, today be spending more on administrative sibly when they demagogue? How can (The following Member (at the re- costs than we should. We saved billions they possibly do that if they simply op- quest of Mr. SHAYS) to revise and ex- of dollars by slowing and condensing pose getting our financial house in tend his remarks and include extra- that program. We did try and failed. order and balancing the budget and neous material:) We did try and failed to say that from taking on the tough decisions? Mr. WOLF, for 5 minutes on Septem- graduation to the first 6 months, when And so, Mr. Speaker, I just would ber 24. like to end with the basic concept that you do not pay back the loan yet, your f grace period, the taxpayers pay the in- the people we love the most, the people terest on that loan. We said the stu- we care about the most, we try to EXTENSION OF REMARKS dents should. teach them to grow the seed and to be By unanimous consent, permission to I am proud of the fact that we asked better Americans. We try to free them revise and extend remarks was granted students to play a role in this process. up to compete in a very competitive to: Six months after they graduate they environment. We try to help those who (The following Member (at the re- cannot help themselves, but not help start paying back their 10-year or 15- quest of Mrs. SCHROEDER) and to in- year loan. In a basic 10-year loan, for those who can help themselves. Those clude extraneous material:) that can help themselves need to be en- the average loan, we were asking the Mr. MENENDEZ. students to pay $9 more a month. That couraged to be on their own, to work (The following Members (at the re- and to study and to grow as individ- is the price of a pizza. But where I live, quest of Mr. SHAYS) and to include ex- it is the price of a movie and a small uals. traneous matter:) This Congress has taken on heavy Coke. I have no problem saying to Mr. BLUMENAUER. lifting, and I hope and pray, whether someone after they graduated from col- Mr. BONO. they are Republicans or Democrats, I lege or graduate school, 6 months after Mr. DINGELL. they graduate, they start to pay the will say it this way: Those who have f loan back. It costs them $9 more a done the heavy lifting, those who have month. dealt squarely with the problems, those ENROLLED BILLS SIGNED who have not demagogued the issues, I have no problem saying you do not Mr. THOMAS, from the Committee those who have tried to serve this have to go to a movie maybe once a on House Oversight, reported that that country with courage, those are the month. You may not be going to get committee had examined and found people who should be reelected and re- that pizza, for the good of the country, truly enrolled bills and a joint resolu- turned here; and if those are the people so you do not have to pay a big debt tion of the House of the following ti- who are defeated, think of what the later on. tles, which were thereupon signed by We are trying to get our financial message will be. Those who survive, the Speaker: house in order. It ends with the two who were doing the heavy lifting, will points: Medicaid has grown from $89 to say: ‘‘I had better not do that again,’’ H.R. 1772. An act to authorize the Sec- retary of the Interior to acquire certain in- $127 billion. Again, only in Washington and those who were critical of this terests in the Waihee Marsh for Inclusion in when you go from $89 to $127 billion do heavy lifting, those who may dema- the Oahu National Wildlife Refuge Complex; people call it a ‘‘cut,’’ but my col- gogue the issue, are in there saying, H.R. 2909. An act to amend the Silvio O. leagues on the other side of the aisle ‘‘Well, I had better just continue what Conte National Fish and Wildlife Refuge Act call it a ‘‘cut.’’ It is a significant in- I am doing,’’ and that unfortunately is to provide that the Secretary of the Interior crease in spending, and then, as I have what has happened for the last 20 may acquire lands for purposes of that Act already pointed out, Medicare is grow- years. only by donation or exchange, or otherwise ing from $178 billion to $289 billion, This is a crossroad in our country. I with the consent of the owner of the lands; hope, I pray, that the true story will H.R. 3675. An act making appropriations $4,800 per senior to $7,100 per senior. for the Department of Transportation and Mr. Speaker, you have been very pa- get out about the extraordinary job related agencies for the fiscal year ending tient. I am drawing to a close. My big- this Congress has done. We passed con- September 30, 1997, and for other purposes; gest concern of all is that I have col- gressional accountability, we pass gift H.R. 3676. An act to amend title 18, United leagues on this side of the aisle who ban, we passed lobby disclosure, we States Code, to clarify the intent of Congress H10762 CONGRESSIONAL RECORD — HOUSE September 20, 1996 with respect to the Federal carjacking prohi- Mr. BLILEY: Committee on Commerce. TIME LIMITATION OF REFERRED bition; H.R. 4083. A bill to extend certain programs BILL H.R. 3802. An act to amend section 552 of under the Energy Policy and Conservation title 5, United States Code, popularly known Act through September 30, 1997 (Rept. 104– Pursuant to clause 5 of rule X the fol- as the Freedom of Information Act, to pro- 814). Referred to the Committee of the Whole lowing action was taken by the Speak- vide for public access to information in an House on the State of the Union. er: electronic format, and for other purposes; H.R. 2740. Referral to the Committee on and f Commerce extended for a period ending not H.J. Res. 191. Joint resolution to confer later than September 27, 1996. honorary citizenship of the United States on H.R. 3217. Referral to the Committee on Agnes Gonxha Bojaxhiu, also known as REPORTS OF COMMITTEES ON PRI- Resources extended for a period ending not Mother Teresa. VATE BILLS AND RESOLUTIONS later than September 27, 1996. f Under clause 2 of rule XIII, reports of f SENATE ENROLLED BILLS SIGNED committees were delivered to the Clerk PUBLIC BILLS AND RESOLUTIONS The SPEAKER announced his signa- for printing and reference to the proper ture to enrolled bills of the Senate of calendar, as follows: Under clause 5 of rule X and clause 4 of rule XXII, public bills and resolu- the following titles: Mr. HYDE: Committee on the Judiciary. tions were introduced and severally re- S. 1636. An act to designate the United H.R. 1031. A bill for the relief of Oscar Salas- States Courthouse under construction at 1030 Velazquez; with an amendment (Rept. 104– ferred as follows: Southwest 3rd Avenue, Portland, Oregon, as 810). Referred to the Committee of the Whole By Mr. BLUMENAUER: the ‘‘Mark O. Hatfield United States Court- House. H.R. 4128. A bill to amend title 23, United house’’, and for other purposes; and Mr. HYDE: Committee on the Judiciary. States Code, concerning eligibility for grants S. 1995. An act to authorize construction of H.R. 1087. A bill for the relief of Nguyen Quy to implement alcohol-impaired driving the Smithsonian Institution National Air An and Nguyen Ngoc Kim Quy; with amend- counter measures; to the Committee on and Space Museum Dulles Center at Wash- ments (Rept. 104–811). Referred to the Com- Transportation and Infrastructure. ington Dulles International Airport, and for mittee of the Whole House. By Mr. HOKE: other purposes. H.R. 4129. A bill to enforce the constitu- Mr. HYDE: Committee on the Judiciary. f tional right to the free exercise of religion; H.R. 4025. A bill for the relief of the estate of to the Committee on the Judiciary. ADJOURNMENT Gail E. Dobert (Rept. 104–813). Ordered to be H.R. 4130. A bill to enforce the constitu- printed. Mr. SHAYS. Mr. Speaker, I move tional right to the free exercise of religion; to the Committee on the Judiciary, and in that the House do now adjourn. f addition to the Committee on Economic and The motion was agreed to; accord- Educational Opportunities, for a period to be ingly (at 12 o’clock and 27 minutes REPORTED BILLS SEQUENTIALLY subsequently determined by the Speaker, in p.m.), under its previous order, the each case for consideration of such provi- House adjourned until Monday, Sep- REFERRED sions as fall within the jurisdiction of the tember 23, 1996, at 12 noon. Under clause 5 of rule X. bills and re- committee concerned. f ports were delivered to the Clerk for f printing, and bills referred as follows: REPORTS OF COMMITTEES ON ADDITIONAL SPONSORS PUBLIC BILLS AND RESOLUTIONS Mr. SHUSTER: Committee on Transpor- Under clause 4 of rule XXII, sponsors tation and Infrastructure. H.R. 3217. A bill to Under clause 2 of rule XIII, reports of were added to public bills and resolu- committees were delivered to the Clerk provide for ballast water management to prevent the introduction and spread of non- tions as follows: for printing and reference to the proper indigenous species into the waters of the H.R. 2209: Mr. SERRANO calendar, as follows: United States, and for other purposes; with H.R. 2223: Mr. DEUTSCH, Mr. MENENDEZ, Mr. Mr. LEWIS of California: Committee of an amendment; referred to the Committee FUNDERBURK, Mr. EVANS, Mr. LIPINSKI, and Conference. Conference report on H.R. 3666. on Science for a period ending not later than Mr. OLVER. A bill making appropriations for the Depart- September 27, 1996, for consideration of such H.R. 3012: Mr. COMMINGS and Mr. SCOTT. ments of Veterans Affairs and Housing and provisions of the amendment recommended H.R. 3632: Mr. MINGE. Urban Development, and for sundry inde- by the Committee on Transportation and In- H.R. 3633: Mr. MINGE. pendent agencies, boards, commissions, cor- frastructure as fall within the jurisdiction of H.R. 3725: Mr. SERRANO. porations, and offices for the fiscal year end- the Committee on Science pursuant to H. Res. 515: Mr. DOYLE, Mr. LAFALCE, Mr. ing September 30, 1997, and for other pur- clause 1(n), rule X (Rept. 104–815, Pt. 1). Or- FUNDERBURK, Mr. HOSTETTLER, Mr. poses (Rept. 104–812). Ordered to be printed. dered to be printed. HOEKSTRA, and Mr. CANADY. E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 104 CONGRESS, SECOND SESSION

Vol. 142 WASHINGTON, FRIDAY, SEPTEMBER 20, 1996 No. 131 Senate

The Senate met at 9:30 a.m. and was pattern. I think maybe it is going to MARITIME SECURITY ACT called to order by the President pro produce results very shortly. This The PRESIDING OFFICER. Under tempore [Mr. THURMOND]. morning, the Senate will immediately the previous order, the Senate will now resume consideration of the maritime resume consideration of H.R. 1350, PRAYER bill, H.R. 1350. There will be 30 minutes which the clerk will report. The Chaplain, Dr. Lloyd John of debate, equally divided, on the The assistant legislative clerk read Ogilvie, offered the following prayer: Grassley amendment No. 5391, regard- as follows: ing war bonus, also with a vote on the Almighty God, Creator and Sovereign A bill (H.R. 1350) to amend the Merchant of all, slow us down, we are moving too motion to table that amendment oc- Marine Act, 1936, to revitalize the United fast; we do not realize Your blessings curring at 10 a.m. this morning. States flag merchant marine, and for other until they are past. We jet at high We have been unable to reach an purposes. speed to our destinations only to circle agreement, or we were last night, but The Senate resumed consideration of in holding patterns. Life also has its we feel that maybe progress is being the bill. holding patterns when we must wait. made now and we can get an agreement Pending: We are not very good at waiting. We shortly, so that we can complete the Grassley amendment No. 5391, to provide want everything yesterday. Help us to amendments that are desired by some for a uniform system of incentive pay for trust in Your timing. You are always of the Senators to be offered and get to certain hazardous duties performed by mer- on time. Keep us from running ahead of final passage on this very important chant seamen. You or lagging behind. Today, help us maritime legislation. AMENDMENT NO. 5391 to enjoy life as it unfolds, to live to the Members can expect additional votes The PRESIDING OFFICER. There fullest in each hour, and to relish the beyond the 10 a.m. vote on or in rela- will now be a period of 30 minutes of sheer wonder of Your grace and good- tion to amendments to the bill. As all debate, equally divided, on the motion ness. Open our eyes so that we may see Senators are aware, we are fast ap- to table the Grassley amendment No. Your glory in the people and opportu- proaching adjournment and there are a 5391. nities You give us. Unstop the ears of number of other important issues yet Who seeks time? our hearts so we may hear Your guid- to be resolved. So I hope all Senators Mr. GRASSLEY. Mr. President, I ance. Release our wills from the bond- will accommodate this schedule. yield myself 5 minutes. age of our controlling attitudes so we We have indicated throughout the The PRESIDING OFFICER. The Sen- can act on what You call us to do. Re- last couple of months that we should ator from Iowa is recognized for 5 min- plenish our physical strength so we can expect votes on Friday, at least up utes. have resiliency for each challenge. So, until noon. We hope we can get this bill Mr. GRASSLEY. Mr. President, dur- if life dishes out a holding pattern finished by then, and we would not be ing wartime, in an area where there is today, may we use it wisely to remem- back in session until Tuesday morning military conflict between the United ber where we have been by Your grace beginning at 9:30. We may be asked to States and an opponent, there are le- and where we are going under Your consider other legislative items that gitimate war bonuses paid to people in guidance. Through our Lord and Sav- are cleared for action. We are still the military for serving under more se- ior. Amen. looking for other appropriations con- vere conditions, and there are also war f ference reports that may be coming bonuses paid to our seafarers for serv- over, perhaps not today, but we have at ing under those same conditions. The RECOGNITION OF THE MAJORITY least one more we think we may be only problem is that there is a great LEADER able to take up early next week. I inequity between what the seafarers The PRESIDENT pro tempore. The thank all Senators in advance for their get as a bonus and what our regular able majority leader, Senator LOTT, is cooperation. military gets paid. The purpose of this recognized. I yield the floor. amendment is to make sure that those f f bonuses are the same. So my amendment, which is about to SCHEDULE RESERVATION OF LEADER TIME be voted on at 10 o’clock, represents Mr. LOTT. Mr. President, I thank the The PRESIDING OFFICER (Mr. common sense. What people don’t like Chaplain for that meaningful prayer BURNS). Under the previous order, lead- about Washington is they see their this morning, as we are in a holding ership time is reserved. money being wasted because we don’t

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

S11061 S11062 CONGRESSIONAL RECORD — SENATE September 20, 1996 use commonsense approaches to gov- taxpayers. Seafarers get these generous way to conscript them, which is what erning and spending the taxpayers’ benefits from taxpayers year in and the amendment of the Senator from money—the same commonsense way year out, and then, if they do someday Iowa will do. It literally conscripts that the average family and small busi- deliver goods into a war zone, they can them, and says, ‘‘In the event of the ness has to use to live within their in- get a war bonus. war, you are working for the Federal come and balance their budgets. Take a look at this category called Government.’’ Why should taxpayers be saddled ‘‘able-bodied seaman.’’ His base pay is I have never heard of such an ap- with war bonuses for seafarers, which $12,192 per month. His war bonus for a proach. I want to say again that I evidence shows can be 50 times as high month could therefore, be $12,192 and moved to table the amendment last as those war bonuses that we give the he could get an extra $600 per day if his night because it really does nothing to men and women in the Reserve or the vessel is actually shot at. help this bill. It is an attempt to drag regular military? One Persian Gulf sea- My amendment was characterized a red herring across the Senate floor farer got a bonus of $15,700 for 2 last night, and I quote as ‘‘demeaning, and tell us that somehow or other the months. The regular military would unfair, and insulting to seafarers.’’ taxpayers will be forced to pay for get, during that same period of time, a There is no way that you can see it these people extraordinary rates if 2-month war bonus of $300—$300 as that way. What this amendment tries they are called upon to provide service compared to $15,700. to do is to seek fairness to our men and during times of war, that under the bill The argument was made last night women in the regular military, but we have to pay whatever their contract that the taxpayers don’t end up paying most importantly accountability for provides that their employer is going these war bonuses. Well, the taxpayers the American taxpayer. to pay them. The Secretary of Defense do end up paying. The argument was I reserve the remainder of my time. sets the rate for the cost of those ves- made last night that, well, our Treas- Mr. STEVENS. Mr. President, the sels—fully crewed—under this bill; ury was reimbursed by a lot of nations bill before us sets up a prospect of hav- what is paid to the seafarer is between around the world for our efforts in Ku- ing the merchant marine available to the employer and the employee. It is wait. That is true, we were. I was part the United States in the event of emer- none of the Federal Government’s busi- of the effort to make that happen. But gency on a daily charge basis. The tax- ness. we don’t conduct war, or at least we payers will not pay any more regard- Does the Senator wish time? should not be conducting war, to make less of the contract between the sea- Mr. INOUYE. Yes. a profit. farers and their employer, the operator Mr. STEVENS. I yield such time as At any time in the future when our of the vessel. This is a new approach. the Senator from Hawaii wants. military ends up paying these bonuses, The Senator from Iowa is mistaken. Mr. INOUYE addressed the Chair. the taxpayers are going to be paying The funds that were paid for those The PRESIDING OFFICER. The Sen- them. But this is not just a taxpayer ships that were in the Persian Gulf ator from Hawaii. issue. This is an issue of equity be- were not taxpayer dollars. They were Mr. INOUYE. Mr. President, let the tween seafarers and our full-time mili- dollars provided by our Persian Gulf al- record indicate that we began this de- tary people. lies. In any event, we are trying to bate on this amendment last evening. My colleagues have received letters change that. So what I say may be a bit repetitive from a number of taxpayers and public- I say to my friend from Iowa that but I believe it must be repeated. interest organizations, representing these people are not in the military. In World War II, 700 merchant marine hundreds of thousands of Americans, They are civilians. They are not sub- ships were sunk, and most of them are who adamantly oppose this legislation ject to the control of the Federal Gov- now resting, hopefully peacefully, at that is before us. Three of them have ernment. Their salaries are not in the the bottom of either the Atlantic expressed support for my amendments, control of the Federal Government. Ocean or the Pacific Ocean. for instance, Citizens Against Govern- The Constitution prevents what the When these ships went under nearly ment Waste will key vote my amend- Senator from Iowa wants to do, and 6,000 men, civilians who were carrying ment. The National Taxpayers Union that is for Congress to legislate an military cargo, went down with the will weight it heavily in their annual amendment to a private contract be- ships. The casualties that exceeded voting analysis. And Citizens for a tween the seafarers and their employ- 6,000 in World War II was second only Sound Economy strongly supports this ers. to that experienced by the U.S. Marine amendment as well. I have to say that, if this is the Tax- Corps. Furthermore, this war bonus amend- payers Union provision, as the Senator There is a difference. This amend- ment is supported by a number of re- from Iowa said, someone has mis- ment would suggest that merchant tired admirals—admirals, I might add, informed that organization because mariners should receive the same com- whose good names were lent to the this bill has nothing to do with pay- bat pay as our GI’s suggesting that American Security Council letter in ment to the people who man these merchant mariners are overpaid for support of this bill, and who now sup- ships. That is between the employer standing in harm’s way. port my pro-taxpayer, pro-defense and the employee. It is not a Govern- Mr. President, as some of my col- amendments. ment affair. leagues are aware, I had the great Taxpayers do end up paying for sea- As I said last night, our alternative honor of serving my country in uni- farers’ war bonuses. as well as the in- is to once again try to contract with form. And for serving in harm’s way I credibly high salaries and benefits they foreign ships to provide us vessels to received combat pay, which was a receive year in and year out. carry our goods to supply our men and token amount. I believe at that time it This is so because we in Congress women in the field in times of crisis. In was $10 a month. But we were not in have allowed an unaccountable pay- the last Persian Gulf crisis we did that. the service for pay purposes. However, ment system to the U.S.-flag carriers We paid a minimum of 50 percent more at the end of the war because of my in- that allow them to pass on to Uncle on the total contract—not just the sea- juries I receive a lifetime pension; a Sam virtually all of their costs plus a farers’ contract moneys for entering very generous one. I have a lifetime hefty profit for any business they do into a war zone but for the whole ves- privilege of hospitalization and medi- for the Government. sel. And some of them, despite the fact cal care. And that privilege also ex- Mr. President, collective bargaining that we paid them a 100-percent bonus, tends to my dependent, my wife. I re- is great when Congress allows us to refused to enter the war zone. ceived education under the GI bill of have an open checking account to the This is a bill to give us the merchant rights. And, as a result, I received my United States Treasury to cover sala- marine we need in times of emergency, law degree and my baccalaureate. I ries, benefits, and war bonuses. particularly in times of a war. These can, if I wish to, purchase goods at the This chart includes the salaries, ben- people are not in the military. They PX, or at the commissary. There are efits, and overtime of seafarers that are not subject to the draft. They are many privileges. For example, when I this bill will subsidize—$310,915 per not required to go in harm’s way by die the Government will pay for my month, and most of this paid for by any law that I know of, and there is no coffin, and will pay for my headstone. September 20, 1996 CONGRESSIONAL RECORD — SENATE S11063 On the other hand, for the man who costs associated with provision and use of serve in the military should they be serves in the merchant marine, if he the contractor’s commercial resources to harmed when they are in harm’s way. should be wounded in action he will not meet emergency requirements; in the case of What we are doing here now would receive a lifetime pension, nor will his a charter of an entire vessel; shall be in addi- authorize $100 million annually for tion to and shall not in any way reflect wife receive hospitalization for the rest amounts payable under section 652. sustainment sealift. That is $250 mil- of her life. He will not get a tombstone; lion less than the funded levels before a headstone. He will not receive the So where the Senator from Alaska is and $150 million less than it is today benefits of the GI bill of rights. wrong is that there are charges above —$250 million less than it was during We are not talking about apples and and beyond the $2.1 million when our the Persian Gulf period, $150 million apples, Mr. President. We cannot com- ships are called to be used. less than the existing program today. pare the merchant marine and a man Let me repeat what my amendment The Senator’s amendment is an at- on a naval vessel. deals with—fair and reasonable costs. tempt to destroy a program that is de- I can understand why the merchant More importantly, ‘‘all the contrac- signed to save $150 million from the marine decided after World War II that tor’s costs associated with provision’’ program as it stands today. something had to be done to bring obviously includes the war bonuses, Now, we are going to pay these com- about equity. In World War II, none of and these extraordinarily high war bo- panies to reserve these vessels for our the benefits were available. Now, this nuses were $15,700 for one seaman in use in the event of war. The contracts small amount, $12,000 a month, for the Persian Gulf war compared to $300 that the Senator has mentioned are standing in harm’s way and risking for the regular military. subject to approval by the Secretary of death is not much. As my colleague Now, let us suppose the Senator from Defense. The payments that would be from Alaska pointed out, we were not Alaska were right about those 47 ships, made will be made on an equitable providing that war bonus. It was by the that this corporate welfare is going to basis, and they will be subject to an- coalition forces. subsidize these companies that are nual review by the Appropriations Whatever it is, this amendment is de- making extreme amounts of profits. Committee which I hope to chair. meaning to the merchant mariners—to Then we have all the other vessels that I reserve the remainder of my time. suggest that merchant marine seamen the Department of Defense can call on Mr. GRASSLEY. I would seek knowl- are mercenaries. They are not merce- and will call on to meet our national edge about how much time is remain- naries. In Desert Storm, many of the security needs, and this bill does not ing on each side. countries that were asked to deliver apply to those. In those instances, ob- The PRESIDING OFFICER (Mrs. goods to our fighting forces refused to viously this bill does not apply, but FRAHM). The Senator from Iowa has 1 enter the Persian Gulf. Sixteen ships they will get war bonuses. Moreover, minute 45 seconds, the Senator from refused to go into the Persian Gulf. On there is no place in this bill that says Hawaii has 49 seconds. the other hand, our American seamen, war bonuses are not going to be paid to Mr. GRASSLEY. I will use the re- all of them, without hesitation, went the employees on those 47 ships. So my mainder of my time right now and into the most dangerous of waters. Yes, amendment goes to the heart of this leave the last word to the opponents of it is insulting to suggest that they are issue, to establish equity between our the amendment. mercenaries. They are not. They are regular military people and our sea- First of all, I think everybody heard good, patriotic, dependable Americans. farers. my response to the original statement Mr. President, I will support the mo- I reserve the remainder of my time. of the Senator from Alaska in opposi- tion to table this amendment. The PRESIDING OFFICER. Who tion to my amendment. I came back Mr. GRASSLEY addressed the Chair. seeks time? and said that the bill provides for com- The PRESIDING OFFICER. The Sen- Mr. STEVENS addressed the Chair, pensation, return of the cost, plus prof- ator from Iowa. The PRESIDING OFFICER. The Sen- it, under what we are told is a fair and Mr. GRASSLEY. I have 8 minutes—7 ator from Alaska. reasonable rate. It covers all costs, and minutes remaining? Mr. STEVENS. The answer is simple, so that includes war bonuses. The PRESIDING OFFICER. The Sen- in my opinion. What we have is a situa- He went on in his last remarks to ator has approximately 6 minutes re- tion where today the only thing we speak about how great the bill is. So I maining. have available to us in the event of war think the absence of comment on my Mr. GRASSLEY. I yield myself such or emergency is to contract once again rebuttal speaks for itself; my point is time as I consume. with foreign shipping. We did that in that under this bill these war bonuses I rise to respond to what the Senator the Persian Gulf war. As I said, we paid are 50 times as high as the men in the from Alaska said, where he is right and 50 percent to 100 percent more on the regular military get. Maybe the issue where he is wrong. He is right that we total charter price. here is that we are not paying enough are paying in corporate welfare $2.1 This bill is an attempt to change to regular Navy and Army, Air Force, million per ship to have these ships that concept and make available to us and Marine personnel who are in available, and the responsibility to the the U.S.-flag ships already crewed, harm’s way on the battlefield and we companies to provide shipping to meet ready to serve, and ready to go in ought to be paying them more than their contracts, to meet our national harm’s way because of their contrac- what we are, so that they are not get- defense needs. tual commitments. We had foreign ting 50 times less than what the sea- That is under section 652. But when ships that would not enter the war farers are getting. But, at least we those ships are called up to deliver ma- zone. We had foreign crews that de- should not have this extraordinary dif- teriel to the war zone, then you move serted their ships as they were going ference between the two. to page 19, and this is where the Sen- into the Persian Gulf. So, consequently, in my closing sec- ator from Alaska is wrong. It says: We need a program to give us the ca- onds I remind people the conservative pacity to continue to serve our fighting fiscal group Citizens Against Govern- Compensation. In general, the Secretary of men and women when they are abroad. Transportation shall provide in each Emer- ment Waste, the National Taxpayers gency Preparedness Agreement fair and rea- The impact of this bill is to provide a Union, and the Citizens for a Sound sonable compensation for all commercial system to in effect have a standby Economy feel that this amendment is a transportation resources provided pursuant charter. It is very similar to the re- justified amendment to bring common- to this section. serve fleet we have for the airlines. The sense budgeting, expenditure of money, That is above that $2.1 million. So we civil air reserve program provides us commonsense use of the taxpayers’ are going to pay more if these ships are the aircraft. And just as in this case money to public policy on maritime is- used. Then it goes on to specific re- those people who fly civilian planes sues. quirements. into harm’s way get war bonuses, they I yield the floor. Compensation under this section shall not get special bonuses, because, as the Mr. STEVENS. Madam President, we be less than the contractor’s commercial Senator from Hawaii points out, they only use these vessels for the time they market charges for like transportation re- have no rights to any of the benefits are actually in the war zone under this sources; shall include all the contractor’s that are available to those people who contract. As the Senator from Hawaii S11064 CONGRESSIONAL RECORD — SENATE September 20, 1996 says, we pay people by the day rather McConnell Robb Specter cent of the cargo was transported on Mikulski Rockefeller Stevens than by the lifetime. I agree with the Moseley-Braun Santorum Thompson American ships with American crews. Senator from Iowa, we ought to com- Moynihan Sarbanes Thurmond Our merchant marine became the pensate our people in the military who Murkowski Shelby Warner ‘‘steel bridge’’ to our men and women go in harm’s way more than we do, but Murray Simon Wellstone in Saudi Arabia. General Schwarzkopf Pell Simpson Wyden we set up a very complex system here Reid Snowe talked about how important the mer- to take care of the people who are ac- chant marine was in sustaining our tually harmed in the military. We set NAYS—16 troops with needed supplies. And had up a different system for people who Ashcroft Grams Kyl we gone into an escalated ground war Brown Grassley Nickles enter harm’s way for a very short pe- Bumpers Gregg Pressler our merchant marine would have been riod of time and we have no further re- Coats Hatch Smith even more important. sponsibility to them for any injuries Faircloth Kassebaum In Bosnia, United States mariners they might sustain, as far as that is Frahm Kohl were used to activate the Ready Re- concerned. NOT VOTING—7 serve ships to aid peacekeeping efforts. All of the costs of this bill are sub- Helms Nunn Thomas Mr. President, history has taught us ject to rejection by the Secretary of Kerry Pryor one thing, we cannot rely on foreign Defense at the time the ships will be Mack Roth countries with foreign crews to trans- called up. He could decline to use these The motion to lay on the table the port our military cargo in time of war. ships and once again go back to trying amendment (No. 5391) was agreed to. This is why the Defense Department to use foreign ships if they were avail- Mr. STEVENS. Madam President, I strongly supports this bill. able to us at a reasonable cost. There move to reconsider the vote. But this legislation is more than are no foreign ships available to us Mr. HOLLINGS. I move to lay that keeping merchant marine viable in anywhere near the cost of this bill. motion on the table. times of crisis it is about keeping our So I have moved to table this. I hope The motion to lay on the table was shipyards open, and ensuring that Senators will not be misled by this agreed to. there will always be American ships concept that, somehow or another, con- Mr. STEVENS. If there are amend- moving American cargo across our servatives oppose this bill. This is a ments to be disposed of, we might be oceans. We cannot allow America’s economy very fair bill to us and to the people able to dispose or review them at this to be held hostage to the whims of for- who might be put in harm’s way in time. We have seen no other amend- ment today. We know the Senator from eign shipping companies or in some order to serve the defense of our coun- cases, foreign governments. In addi- try. Iowa may have other amendments. May I inquire if any other Senator tion, our merchant marine fleet must I move to table, Madam President, I compete with ships that fly ‘‘flags of ask for the yeas and nays. has an amendment to this bill? We would like to know if any other Sen- convenience.’’ Two-thirds of all mer- The PRESIDING OFFICER. Is there a chant ships fly under flags of conven- sufficient second? ator has an amendment at this time. Mr. INOUYE. Not at this time. ience. There is a sufficient second. Without the Maritime Security Pro- The yeas and nays were ordered. Mr. STEVENS. I suggest the absence of a quorum. gram, American ships will be unable to The PRESIDING OFFICER. The compete against foreign ships that are question is on agreeing to the motion The PRESIDING OFFICER. The clerk will call the roll. heavily subsidized or state-owned. In to table amendment No. 5391, offered addition, ‘‘flag of convenience’’ ships by the Senator from Iowa, Senator The legislative clerk proceeded to call the roll. do not have to comply with American GRASSLEY. The yeas and nays have environmental or safety standards giv- been ordered. Mr. STEVENS. Madam President, I ask unanimous consent that the order ing foreign ships another advantage. The clerk will call the roll. Our merchant marine provides good for the quorum call be rescinded. The legislative clerk called the roll. jobs at good wages and we have a re- The PRESIDING OFFICER. Without Mr. NICKLES. I announce that the sponsibility to keep the American flag objection, it is so ordered. Senator from North Carolina [Mr. flying over the oceans of the world. Ms. MIKULSKI. Madam President, I HELMS], the Senator from Florida [Mr. That’s why we need the Maritime Secu- rise as a proud cosponsor of the Mari- MACK], the Senator from Delaware [Mr. rity Act—to give our merchant marine time Security Act. I urge my col- ROTH], and the Senator from Wyoming a fighting chance in today’s shipping leagues to give their support to this [Mr. THOMAS] are necessarily absent. climate. Mr. FORD. I announce that the Sen- important bill. Finally, Madam President, this bill This bill is critical for America’s fu- ator from Arkansas [Mr. PRYOR], the makes sense for the American tax- ture. This bill is about our national se- Senator from Georgia [Mr. NUNN], and payer. Compared to the present mari- the Senator from Massachusetts [Mr. curity. A strong, vibrant merchant ma- time program, the Maritime Security rine is absolutely critical to our na- KERRY] are necessarily absent. Act will cut costs by more than 50 per- The PRESIDING OFFICER. Are there tional defense and our economic secu- cent. If this bill is not adopted, tax- any other Senators in the Chamber rity. We need to ask ourselves one sim- payers could pay even more if the De- who desire to vote? ple question, do we want to have a fense Department was forced to build The result was announced, yeas 77, American shipping industry in the 21st its own military sealift fleet. nays 16, as follows: century? The answer is an unequivocal Madam President, when the world yes. makes a 911 call to America, we must [Rollcall Vote No. 296 Leg.] Time and time again, we have seen YEAS—77 be ready. We must have a merchant the critical role our merchant marine marine ready to defend our national se- Abraham Coverdell Hatfield has played. In World War II, it was our Akaka Craig Heflin curity and our economic security. I Baucus D’Amato Hollings merchant marine—our ‘‘heroes in dun- urge my colleagues to give their strong Bennett Daschle Hutchison garees’’ who braved Nazi U-boats in the support to this legislation. Biden DeWine Inhofe Atlantic and Japanese submarines in Mr. STEVENS. It is my understand- Bingaman Dodd Inouye the Pacific in order to save Western Bond Domenici Jeffords ing the distinguished Senator from Illi- Boxer Dorgan Johnston civilization at a cost of over 6,000 mer- nois would like to have time to make a Bradley Exon Kempthorne chant mariners who lost their life. The statement. I ask unanimous consent Breaux Feingold Kennedy casualty rate for merchant mariners in the Senator have 5 minutes as in morn- Bryan Feinstein Kerrey Burns Ford Lautenberg World War II was second only to the ing business while we try to work out Byrd Frist Leahy Marine Corps. this agreement. Campbell Glenn Levin In Korea, and Vietnam, our merchant The PRESIDING OFFICER. Without Chafee Gorton Lieberman marine kept the supply lines open for Cochran Graham Lott objection, it is so ordered. Cohen Gramm Lugar our fighting forces and never let them Ms. MOSELEY-BRAUN. I thank the Conrad Harkin McCain down. In Desert Storm, almost 80 per- Senator from Alaska. September 20, 1996 CONGRESSIONAL RECORD — SENATE S11065 AFFORDABILITY OF HIGHER school graduate. By 1994, that had in- GENERAL ACCOUNTING OFFICE, EDUCATION creased to 73 percent. When we reduce HEALTH, EDUCATION AND HUMAN SERVICES DIVISION, Ms. MOSELEY-BRAUN. Madam access to higher education, we reduce access to the American dream and we Washington, DC, September 19, 1996. President, yesterday some of my col- Hon. CAROL MOSELEY-BRAUN, leagues were debating the issue of stu- create strains on our community and U.S. Senate, dent loans and performance of this on our social compact from which we Washington, DC. Congress with regard to education. No may have a very difficult time recover- DEAR SENATOR MOSELEY-BRAUN: In August issue is more central to our Nation’s ing, even into the next generation. 1996, we reported that there is widespread future and the 21st century than the Madam President, we must improve concern about the increase in college tuition availability and the accessibility of the quality and the accessibility of levels and that average tuition levels vary 1 quality public education from kinder- education so that no American child widely among the states. In our earlier re- port, we showed that tuition were rising fast- garten through college. The accessibil- gets a high school diploma without being able to read, subtract, add, or use er than college expenditures and that state ity of higher education is threatened, funding and grant aid were not keeping pace Madam President, by the exploding a computer, and so that all Americans with these costs. cost of higher education, documented may have access to higher education, Based on our report, you requested infor- in a report released yesterday by the not just the wealthy elite. The rungs mation on (1) the states’ public 4-year col- General Accounting Office. on the ladder of opportunity in Amer- leges’ and universities’ average tuition as a The General Accounting Office, hav- ica are crafted in the classroom. We percentage for median household income and ing studied the cost of tuition in 4-year cannot let higher education become so (2) comparative increases in tuition at these public institutions of higher learning expensive that only a fraction of our schools from school year 1980–81 through nationwide, documented that tuition society can afford it. 1995–95, with increases in other selected Unfortunately, the GAO has docu- consumer prices and median household in- has increased some 234 percent over the come during the same period. last 15 years. As a percentage of me- mented that is exactly the direction in To determine schools’ average tuition as a dian household income, tuition has which we are now heading. For a typi- percentage of median household income, we nearly doubled over the same period. In cal family with more than one child in divided the average annual tuition for in- 14 States today, college tuition is more school, in the States at the bottom of state undergraduate students of 4-year pub- than 10 percent of median household the affordability scale—and there is an lic colleges and universities for school year income. In 30 States, it is more than 8 affordability scale included in the re- 1995–96 in each state by the state’s median percent of household income. In all but port—the cost of college can easily household income for calendar year 1994, the consume 30 percent to 40 percent of latest year for which such data were avail- one State, tuition as a percentage of able. For our comparison of tuition price in- household income is more than it was that family’s annual income. For fami- crease with changes in selected consumer 15 years ago. lies with several children who attend prices and median household income, we What this means is that access to college, tuition can become the most used the consumer price index (CPI) and higher education is getting more and significant expenditure and financial other information from the 1995 Statistical more out of reach for working and mid- burden of a lifetime. Abstract of the United States. dle-class Americans. What this means The 234-percent increase in tuition We conducted our review in August and is that our country is suffering a kind over the last 15 years compares, September 1996 in accordance with generally of brain drain, driven by the escalating Madam President, to an 82-percent in- accepted government auditing standards. costs of higher education. crease in median household income and Results in brief Madam President, that is exactly the a 74-percent increase in the Consumer On a nationwide basis, our analysis shows wrong direction. By the year 2000, the Price Index. What that means is the that the average tuition (including related Department of Labor estimates that cost of tuition is rising far in excess of fees) for in-state undergraduate students of more than half of all new jobs will re- the rises in the costs of other indicia of 4-year public colleges and universities for quire an education beyond high school. academic year 1995–96 was about 8.9 percent our economic well-being in this coun- of median household income; however, there The cost of college has a direct impact try. is a significant difference among the states. on access to college. The more tuition Madam President, I know for a fact On one end of the spectrum, Hawaii’s aver- goes up, the more students will be that I would not be able to be in the age tuition for the 1995–96 school year was priced out of their opportunity for the U.S. Senate today were it not for qual- less than 4 percent of median household in- American dream. Our country as a ity public education and the accessibil- come. In contrast, Vermont’s average tuition whole will suffer the loss of talent and ity and the affordability of higher edu- for 4-year public colleges and universities of training. We cannot as a Nation pre- cation. The Chicago public schools was over 15 percent of median household in- pare for the 21st century by making it gave me a solid foundation, and I was come. In general we found that state dif- ferences are more closely associated with more difficult now for our children to then able to attend the University of tuition prices than with income levels. That access higher education. Illinois and later the University of Chi- is, states in which the average tuition was a In the global economy, America must cago, in spite of the fact that my par- low percentage of median household income carve out the upper niche. We cannot ents were working-class people. One tended to be ones with low tuitions but not and should not expect our workers to can only imagine, Madam President, high incomes. compete with 50-cents-a-day Third how many CAROL MOSELEY-BRAUNs, or From school year 1980–81 through 1994–95, World labor. Our strength in the infor- the equivalent, of this generation did tuition charges at 4-year public colleges and mation-intensive 21st century will con- not have that opportunity. The explod- universities for in-state undergraduate stu- tinue to be our people. Education is the dents increased nationally by 234 percent. In ing cost of college is closing the door of contrast, other consumer prices and house- key to that strength. Our community, opportunity for them. I believe that hold incomes increased at a much slower our country as a whole, will benefit our generation has an absolute duty to pace. Medical costs, for example, increased from a well-educated work force. keep that door open and to preserve 182 percent, and consumer expenditures for A quality public education has al- the American dream for the 21st cen- new cars increased 160 percent. Household in- ways given poor and middle-class tury and for our children and for our comes rose 82 percent during the same pe- Americans economic opportunities. community as a whole. riod. The link between educational attain- Finally, Madam President, I ask College tuition as a percentage of income varies ment and earnings is unquestionable. unanimous consent to have printed in widely among States The average earnings of the most edu- the RECORD the GAO report so that Our analysis showed that schools’ average cated Americans is, today, 600 percent Senators and private citizens who are tuition as a percentage of median household greater than that of the least educated interested in reading the report itself income at 4-year public colleges and univer- Americans. As we move nearer to the and exploring the methodology used by sities varies widely among the states. 21st century and into an information- Schools in Hawaii, for example, were found the General Accounting Office may do to have tuition taking 3.61 percent of median driven economy, the gap between high so. school and college graduates will grow. There being no objection, the mate- 1 Higher Education: Tuition Increasing Faster A college graduate in 1980 earned 43 rial was ordered to be printed in the Than Household Income and Public Colleges’ Costs percent more per hour than a high RECORD, as follows: (GAO/HEHS–96–154, Aug. 15, 1996). S11066 CONGRESSIONAL RECORD — SENATE September 20, 1996 household income.2 In contrast, 4-year public TUITION AT 4-YEAR PUBLIC COLLEGES COMPARED TO In my own State of Massachusetts, colleges and universities in Vermont had a MEDIAN HOUSEHOLD INCOMES—Continued this is the case. We are one of the old- higher ratio—tuition was 15.42 percent of in- est States, and many of our schools are come. The national average was 8.88 percent. State rankings also quite old. Too often, our schools, Enclosure 1 shows the average tuition as a Tui- Aver- Median tion Tui- percentage of median household income for age both in the inner cities and in other tuition house- as a tion areas, have deteriorated over the years. 4-year public colleges and universities in State in hold in- per- Tui- In- as a each state. This percentage tends to be high- 1995– come in cent tion come per- She has been a strong leader in chal- 1994 2 of in- cent 96 1 er in the Northeastern states. come 3 of in- lenging the Senate to make progress in In general, state differences in this per- come 3 this area and has challenged the Presi- centage are more closely associated with tui- dent to take the initiative in this area. tion prices than with income levels. That is, Illinois ...... 3,388 35,081 9.66 36 17 35 Indiana ...... 3,040 27,858 10.91 32 41 42 This is going to make a great deal of states in which the average tuition was a low Iowa ...... 2,565 33,079 7.75 28 21 19 percentage of median household income ten- Kansas ...... 2,110 28,322 7.45 16 39 18 difference for students. Kentucky ...... 2,160 26,595 8.12 18 46 22 And now, this report on rising costs dered to be ones with low tuitions but not Louisiana ...... 2,139 25,676 8.33 17 47 26 high incomes. For example, of the 15 states Maine ...... 3,562 30,316 11.75 37 32 47 of higher education is an important with the lowest percentages, 13 were among Maryland ...... 3,572 39,198 9.11 38 6 31 contribution. Like the Senator from Il- Massachusetts ...... 4,178 40,500 10.31 47 5 38 the states with the lowest tuitions while Michigan ...... 3,789 35,284 10.74 42 15 41 linois, I am strongly committed to cre- only 5 of them were among the states with Minnesota ...... 3,108 33,644 9.24 34 18 32 ating a package for young people of the highest incomes. At the other end of the Mississippi ...... 2,443 25,400 9.62 23 49 34 Missouri ...... 3,007 30,190 9.96 31 33 36 talent and ability, so that they have spectrum, of the 15 states with the highest Montana ...... 2,346 27,631 8.49 22 42 28 access to whatever they need—schools, percentages, 11 were among the states with Nebraska ...... 2,294 31,794 7.22 21 26 16 Nevada ...... 1,830 35,871 5.10 6 10 2 4-year colleges, community colleges, the highest tuitions but only 1 of them was New Hampshire ...... 4,537 35,245 12.87 48 16 48 among the states with the lowest incomes. New Jersey ...... 3,848 42,280 9.10 44 2 30 State colleges, or whatever it might be. New Mexico ...... 1,938 26,905 7.20 8 45 15 They must be able to patch together College tuition compared to selected consumer New York ...... 3,697 31,899 11.59 41 24 46 prices and household incomes North Carolina ...... 1,622 30,114 5.39 2 34 3 different kinds of programs so they can North Dakota ...... 2,211 28,278 7.82 19 40 20 go on to college. From school year 1980–81 through school Ohio ...... 3,664 31,855 11.50 40 25 45 year 1994–95, the average annual tuition at 4- Oklahoma ...... 1,741 26,991 6.45 4 44 11 Tuition costs are a problem not just year public colleges and universities for in- Oregon ...... 3,241 31,453 10.30 35 29 37 in private colleges and universities, but Pennsylvania ...... 4,693 32,066 14.64 49 22 49 state undergraduate students increased from Rhode Island ...... 3,619 31,928 11.33 39 23 44 at public colleges as well. In my own $804 per year to 42,689, or 234 percent. Over South Carolina ...... 3,103 29,846 10.40 33 35 39 State of Massachusetts this is cer- approximately the same period, median South Dakota ...... 2,549 29,733 8.57 26 36 29 Tennessee ...... 2,001 28,639 6.99 11 38 14 tainly the case. In tuition as a percent- household income increased by 82 percent, Texas ...... 1,832 30,755 5.96 7 31 7 from $17,710 in 1980 to $32,264 in 1994. During Utah ...... 2,007 35,716 5.62 13 12 6 age of family income, Massachusetts this 15-year period, the prices and costs of Vermont ...... 5,521 35,802 15.42 50 11 50 ranks 38th in the Nation, making it Virginia ...... 3,965 37,647 10.53 46 8 40 other consumer goods also increased, but not Washington ...... 2,726 33,533 8.13 29 19 23 one of the more expensive States for as fast as the increases in tuition. For exam- West Virginia ...... 1,992 23,564 8.45 10 50 27 families who want to help their chil- ple, the average consumer expenditure for a Wisconsin ...... 2,555 35,388 7.22 27 13 17 Wyoming ...... 2,005 33,140 6.05 12 20 8 dren obtain a quality college edu- new car went from $7,754 in 1980 to $19,676 in Nationwide ...... 2,865 32,264 8.88 ...... cation. 1994, an increase of 160 percent. 1 Average full-time, in-state undergraduate tuition and related fees at 4- So the cost of higher education is a Agency comments year state colleges and universities weighted by the estimated number of key issue. As the Senator understands full-time, in-state undergraduates at each institution. We obtained these Information contained in this correspond- data from the Department of Education’s Integrated Postsecondary Education very well, today those decisions are ence is consistent with that in our August Data System surveys. often made based on the size of the 2 This is the latest year for which median household income data were 1996 report in which the Department was pocketbook or wallet rather than the given an opportunity to provide comments. available. We obtained median household income data from the U.S. Bureau of the Census. young person’s abilities. It is impor- We are sending copies of this letter to the 3 the average tuition for in-state undergraduate students of 4-year public Secretary of Education, appropriate congres- colleges and universities for school year 1995–96 in each state, divided by tant for us to ensure student access to the state’s median household income for calendar year 1994, the latest year higher education, and to look at the sional committees and Members, and other for which such income data were available. interested parties. core reasons why these costs have gone Please call me at (202) 512–7014 if you our Ms. MOSELEY-BRAUN. It is a very up so much. Too often in the past, we your staff have any questions regarding this important study. It suggests that we have not watched that as closely as we correspondence. Major contributors include need to begin to take up this issue and should have. Joseph J. Eglin, Jr., Assistant Director; examine the cause of the exploding Charles M. Novak; Benjamin P. Pfeiffer; and I think the Senator strengthens all of cost of college tuition so we can make us who believe that education should Charles H. Shervey. cogent policy in this area. I feel con- Sincerely yours, be a major priority for this Nation. It fident that we have the ability, and CARLOTTA C. JOYNER, leads to good employment, it is essen- Director, Education and certainly we have the will, to begin to tial in training our doctors, scientists, Employment Issues. address this question so that college is and engineers, and it is key in so many Enclosures. as accessible for this generation of areas of public policy. She reminded us Americans as it was for every Member of this by requesting this GAO study TUITION AT 4-YEAR PUBLIC COLLEGES COMPARED TO of this body. I encourage my colleagues about the costs of higher education. It MEDIAN HOUSEHOLD INCOMES to examine the work done by the Gen- is helpful to all of us, not only in the eral Accounting Office. I thank the State rankings Congress, but also in States and local General Accounting Office for its in- Aver- Tui- communities, to understand this issue. Median tion Tui- vestigation in this area and for its age house- as a tion I think it is a very important study, State tuition hold in- per- as a work in this area. I believe that it will in come in cent Tui- In- per- and we should build on it in the next 1995– 2 tion come provide the foundation for a very im- 1 1994 of in- cent Congress. It is timely and I think it 96 3 portant debate in our country. come of in- can have an important impact as we come 3 Mr. KENNEDY. Will the Senator begin to address needs in higher edu- Alabama ...... $2,234 $27,196 8.21 20 43 24 yield for a question? Alaska ...... 2,502 45,367 5.52 25 1 5 Ms. MOSELEY-BRAUN. Yes. cation. Arizona ...... 1,943 31,293 6.21 9 30 10 Mr. KENNEDY. I commend the Sen- I commend the Senator for her con- Arkansas ...... 2,062 25,565 8.07 14 48 21 California ...... 2,918 35,331 8.26 30 14 25 ator from Illinois for her excellent tinued interest in education. As some- Colorado ...... 2,458 37,833 6.50 24 7 12 statement. I think all of us understand one who serves on the Education Com- Connecticut ...... 3,828 41,097 9.31 43 4 33 Delaware ...... 3,962 35,873 11.04 45 9 43 that she has been a leader here in the mittee, I have observed firsthand her Florida ...... 1,790 29,294 6.11 5 37 9 Senate in pointing out not only the is- very strong commitment in elemen- Georgia ...... 2,076 31,467 6.60 15 28 13 Hawaii ...... 1,524 42,255 3.61 1 3 1 sues of quality that are so important in tary, secondary, and higher education. Idaho ...... 1,714 31,536 5.44 3 27 4 schools, but also the issue of physical I commend her for her initiatives and facilities. She understands that if you for her excellent statement. 2 As we pointed out in our August report, however, have a dilapidated building with poor Ms. MOSELEY-BRAUN. Thank you. Hawaii’s schools may not have the lowest tuition support facilities inside the building, it Madam President, I thank the Senator level in school year 1996–97. The state approved an 84.6-percent increase for in-state undergraduate tui- creates a climate that makes it much from Massachusetts. The Senator from tion at the University of Hawaii’s Manoa campus. more difficult for children to learn. Massachusetts is being modest. He not September 20, 1996 CONGRESSIONAL RECORD — SENATE S11067 only serves on the Education Commit- tom of this and to the heart of this dress the equality issues and whether tee, but is the leader on that commit- problem to find out what the reasons or not youngsters are getting the kind tee on the issues pertaining to edu- are. Why is the tuition going up so of quality education and skills they cational opportunity for our young high and so quickly? What can we do to will need for this 21st century. people. I thank him for his kind, com- ameliorate the impact on working and We at the national level have to ad- plimentary remarks. middle-class families? dress the Federal support for education I also thank him for pointing out I commend all of my colleagues who all the way through. The State and how these issues link together. We just share a concern for education and these local governments may want to take a finished doing a television program issues. I think nothing short of our Na- look at better ways to fund our schools about rebuilding our Nation’s crum- tion’s national defense is at stake here. so that they are not scaling down so bling schools. The Senator is right. We will not be able to be competitive that the opportunity is available. Fully a third of the schools across this in this 21st century global economy, in I look very much forward to working country are in dilapidated condition an information age, unless we provide with my colleague from Massachusetts and need extensive repair or replace- our young people with an opportunity and the committee with as much com- ment. The previous GAO study found to have the highest level of skills in passion as it takes. Hopefully we can this was a condition that expresses it- the world. It is that challenge that come up with, again, some cogent pol- self in all regions of the country and in compels us today. icy responses guided by the facts as all communities. In inner-city commu- Again, I thank my colleague. produced by the General Accounting nities, 38 percent of the schools are Mr. KENNEDY. If the Senator will Office. crumbling; in suburban communities, yield for one other point. Would she I thank the Chair. I thank the Sen- 29 percent are crumbling; in rural com- not agree that unless we are able to get ator from Alaska. munities, it is 30 percent. This is some- a handle on escalating education costs, I yield the floor. thing that happens in cities, suburbs, it is going to be very difficult to con- Mr. DOMENICI addressed the Chair. and rural communities. That is a real vince taxpayers to provide more sup- The PRESIDING OFFICER. The Sen- challenge for us, because our children port for education, if providing more ator from New Mexico. cannot learn if their schools are falling will not lead to greater opportunity for Mr. DOMENICI. Madam President, I down. The report makes it clear that the young people? For those of us that ask unanimous consent that I be per- we are failing to live up to our respon- are strongly committed to expanding mitted to speak for 5 minutes as if in sibility as a generation to provide the opportunities, if we see that what we morning business. generation of Americans coming into do here does not work, it makes the The PRESIDING OFFICER. Without the school systems now with an envi- task much harder. objection, it is so ordered. ronment in which learning can take There are those who might say, ‘‘If The Senator from New Mexico is rec- place, and with the support that they we provide more resources, they will ognized. will need to be competitive in the glob- just get swallowed up in tuition in- Mr. DOMENICI. I thank the Chair. al economy. creases.’’ That charge must be an- (The remarks of Mr. DOMENICI per- So looking at these issues, the Gen- swered, and answered effectively. I taining to the introduction of S. 2098 eral Accounting Office has been just think the work done on this committee are located in today’s RECORD under wonderfully helpful because their stud- and the report by the GAO should be ‘‘Statements on Introduced Bills and ies give us the kind of intellectual and helpful. Joint Resolutions.’’) demographic base, if you will, because Finally, I think the report that the f they have gone and actually counted Senator commissioned on the dilapida- THE LEGACY OF BITA LEE and done the research and the surveys tion of elementary and secondary to find out what the true facts are in schools creatively points out ways of Mr. DOMENICI. Madam President, I this area. So it is not just a matter of obtaining scarce resources at the State rise today to congratulate a woman looking at what do we see when we and local level. from my home State of New Mexico drive past a school, but rather having Rehabilitating schools is a complex who will be honored on November 1, actual documentation of what is going and difficult challenge. We at the Fed- 1996, by being inducted into the Na- on with regard to crumbling schools all eral level are not going to be able to re- tional Cowgirl Hall of Fame. over the Nation. solve all of these problems, but com- Harriet Frances Lee, better known as This last report on college tuition is mitment at all levels is required, and I Bita, hails from the small town of San really fascinating. I, again, encourage hope we will be able to deal with these Mateo, NM. Raised on a sheep and cat- my colleagues to look at it, or anyone issues in much greater detail in the tle ranch, Bita embodied the spirit of else who would like to. It is available next Congress. the West. Sheep, cattle, and hard work from the General Accounting Office. A As I say, I am grateful to the Senator were all a part of Bita’s daily life. She, 234-percent increase in college tuition for her continued interest and very her twin brother Harry, and her mother is stunning. Even medical care costs, constructive work in this area. and father, Floyd and Frances, all which we have been talking about, rose Ms. MOSELEY-BRAUN. Madam worked side-by-side creating and main- about 182 percent. So this is outpacing President, I thank the Senator, my taining the American dream. even the increase in medical care costs. friend and colleague, from Massachu- Most people only know the old West So it is very clear that families are setts. through Hollywood movies, Louis having a difficult time coping with Again, the first report, ‘‘Profiles of L’Amour books, and history lessons. this. State support for higher edu- School Condition by State’’ is avail- Many times, however, Hollywood, cation is declining at the same time able. Similarly, the new one on college books, and history lessons forget to costs to colleges are going up. The re- affordability ‘‘Tuition Increasing Fast- mention the cowgirls. Women like Bita sult is that young people are having a er Than Household Income and Public have always been a part of the rich fab- harder and harder time accessing high- Colleges’ Costs’’ is available. ric of my State and other States in the er educational opportunities. Again, I couldn’t agree more with my West. The National Cowgirl Hall of We have asked the Department of colleague when he talks about the Fame and Western Heritage Center’s Education, as of yesterday, to make qualities because certainly it is going mission is to ensure that the West, its available information on scholarships to require the cooperation of edu- women, and their heritage are remem- and information on tuition on the cators, of parents, of the kids them- bered. World Wide Web, so that people can ac- selves, and all of us in the National The women of the West did not just cess that information through the Government—and State and local gov- take care of home and hearth. These Internet. It can be more accessible, and ernments—all are going to have to co- women rode horses, sheared sheep, they can do the kind of shopping that operate and carve out our respective roped steers, managed books, and may be particularly necessary given responsibilities, our respective niche, if worked day-to-day with the earth. The the escalating cost of higher education. you will, in addressing these issues. National Cowgirl Hall of Fame and Certainly, we have to get to the bot- The educators are going to have to ad- Heritage Center holds the memories of S11068 CONGRESSIONAL RECORD — SENATE September 20, 1996 these women, and honors those who to speak to an issue that should have Since the habitation of this country don’t live in the past but remain a part been discussed 2 days ago during the by Europeans in the 16th century, the of our living heritage. Interior Department appropriations militia and its leaders have played a Bita died in early 1991, but her legacy bill. But the Interior Department will prominent role. This is true not only in lives on. Although her life has ended, still be up next week when it is put the defense of their people but in soci- Bita left behind her two nephews, back up on the calendar, or in parts of ety as well. Weapons were an impor- Floyd and Harry, and sister-in-law the continuing resolution, and so I tant tool of the early settlers in the de- Iona, to run the ranch she loved. She alert my friends to a trend in military fending of their families from hostile was the last of the Lees that ran the history that is very disturbing to me as native Americans. They were impor- ranch during the Depression and the it relates to the Smithsonian Institu- tant also in the task of putting food on drastic fall of sheep prices, and kept tion. the table. Not only has the military the ranch operating in the days before Upon debating the Interior Depart- continually defended the Nation, but it paved roads, cellular phones, and four- ment’s funding, this is as good time as has assisted in the exploration and wheel drives. any to voice concern over the interpre- opening of the frontiers to settlers. Bita was an avid horse woman; she tations of American history at the Military contractors and arsenals could ride the most surly of beasts and Smithsonian Institution’s National played an important role in developing rope the most wily of steers. Often Museum of American History. Appar- interchangeable parts, standardization, known for her breed of Palominos and ently, military history has assumed a and mass production. In more recent her ability to rope, Bita was an avid minor role in the museum’s depiction years, it has played important roles in worker with the 4–H of New Mexico and of this Nation’s history. The exhibit developing new technologies that we the New Mexico State Fair. She main- space allocated to the display of mili- use every day, such as computers, new tained a love for agriculture by living tary items has slowly decreased. A communication techniques, et cetera. it and passing it on to others. large percentage of that which is cur- The military has touched many facets Although Bita was not world-famous rently on display remains in the cases of our lives, and this history is not ex- like some of her counterparts in the in which they were installed for the hibited in any museum. National Cowgirl Hall of Fame, she was opening of the museum over 30 years There are various Naval, Army, Ma- famous in her corner of the world. Her ago. Further inquiry has led me to be- rine Corps and Air Force museums neighbors knew her well and delighted lieve that what remains of the Armed scattered across the country. But they in her wood-working ability, her keen Forces’ history hall is in jeopardy. only concentrate on the history of The administrators of this museum and subtle sense of humor, and her their particular service, not on the en- appear to be swayed by the ideology of composure. She was a tiny woman in tirety of the U.S. Armed Forces. The revisionist/liberal historians. They de- stature, but she earned the respect of National Museum of American History sire to decrease even further the ex- holds the best collection of American all her ranch employees, whom she hibit space devoted to U.S. military military artifacts, and it has the capa- managed with a firm hand and kind history. This is reflective of their ad- bility to recount the whole story of the heart. herence to the concept of new history armed services. What better place to Last year, my colleague JOE SKEEN as opposed to the traditional approach, develop a comprehensive exhibit of our and I each sent letters of support to which emphasizes important people, Nation’s military service and its his- the Cowgirl Hall of Fame regarding events, and movements. Bita’s nomination. Over 600 women are History has typically been organized tory than on The Mall at Washington, nominated each year to fill four open into areas of concentration, such as DC. Our Nation’s military history is spe- spots. I am pleased that the National military, diplomatic, political, and cial. It is unique from other modes of Cowgirl Hall of Fame has recognized economic history. But a museum de- Bita’s significant contribution to the voted to a new history would, instead, history, such as social, cultural, politi- heritage of the West by accepting her reflect cultural, social, gender, ethnic, cal, or economic. It involves the ulti- nomination. My sincere congratula- and community concentrations. Obvi- mate sacrifice of one’s life for his or tions and best wishes to Bita’s family ously, a conventional exhibit depicting her country. These sacrifices were in- and many friends. our Nation’s military history would curred in the hope of a better future for I yield the floor. not fit into this theme. This approach, generations of Americans to come. In this sense, an exhibit devoted to I suggest the absence of a quorum, in itself, is not inherently bad. But our Armed Forces is not only an edu- Madam President. dominance of this new history to the The PRESIDING OFFICER. The detriment of a conventional represent- cational tool. More important, it is a clerk will call the roll. ative display of military history is dis- memorial to those who risked their The bill clerk proceeded to call the turbing. lives, and those who ultimately gave roll. This overemphasis on common people their lives for our freedom. The mili- Mr. GRASSLEY. Mr. President, I ask and the infrastructure of their commu- tary has also touched many American unanimous consent that the order for nity tends to then decrease the impor- families throughout our history. Mil- the quorum call be rescinded. tance of meaningful events and signifi- lions of men and women have answered The PRESIDING OFFICER (Mr. cant people, which have played pivotal the Nation’s call to duty, both as sol- COVERDELL). Without objection, it is so roles throughout the history of our Na- diers and citizens in support of war ef- ordered. tion. forts. Having such a great impact on Mr. GRASSLEY. Mr. President, I ask Military history is, therefore, over- our society, a museum of American unanimous consent to speak as in looked because it is a conglomeration history should not slight exhibit space morning business. of momentous events and distinguished devoted to the Armed Forces. Mr. STEVENS. For how long? soldiers. What is neglected by these In decreasing the importance of mili- Mr. GRASSLEY. For 11 minutes. historians is the detail that, through- tary history at the museum, we are The PRESIDING OFFICER. Without out the history of the Armed Forces, losing a significant segment of our objection, it is so ordered. we witnessed common people leaving proud history. Storage rooms are The Chair recognizes the Senator the security of their communities and stocked with artifacts belonging to from Iowa. performing extraordinary, consequen- American military heroes, many of f tial feats in the scheme of military af- them used during important military fairs. engagements. These artifacts bring to MILITARY HISTORY AT THE NA- This ideology is reflective of that our Nation’s Capital a little excite- TIONAL MUSEUM OF AMERICAN which is popular in many liberal and ment and drama from the battlefields HISTORY academic circles. Military history is of Saratoga, the naval battles on Lake Mr. GRASSLEY. Mr. President, par- deemed evil in that it involves death Champlain, the many fields of our Na- ticularly since there are on the floor and weaponry. As a result, the great tion’s Civil War, distant fields of Ver- people who are very interested in the impact the military has had on every dun, Normandy, Korea, Vietnam, and military of the United States, I want American is disregarded. the gulf war. Many artifacts link us to September 20, 1996 CONGRESSIONAL RECORD — SENATE S11069 significant individuals throughout the was signed yesterday, the warring par- agreement to allow us to go forward on span of our history: Gen. George Wash- ties—which have produced the longest the maritime bill and to schedule ington, Gen. Andrew Jackson, Gen. conflict in this hemisphere—reached a votes. Ulysses S. Grant, Gen. John J. Per- historic agreement that finally holds Mr. President, I ask unanimous con- shing, and Gen. Dwight Eisenhower, to out hope for a more hopeful future and sent that the only amendments in name only a few. a return of civil society to Guatemala. order to H.R. 1350, the maritime secu- To ignore these military events and According to the New York Times rity bill, be the six Grassley amend- these personalities makes meaningless this morning, Guatemalan military ments that are now filed at the desk; their struggles and the struggles of the leaders agreed to reduce their 46,000 further, that the amendment relative people of this Nation who enlisted their troops by one-third next year. They to rates be subject to a relevant sec- assistance to the military. That is true agreed to cut the military’s budget by ond-degree amendment to be offered by whether it was service in the Armed one-third by the year 1999. Military Senator HARKIN; further, those amend- Forces or in the support of them. leaders also consented to an alteration ments must be called up and debated Now, if things go as planned, I fear of their mission from one that did in- during today’s session; further, follow- that many of these items will be hid- clude domestic security control en- ing the disposition of all amendments, den from the American public despite forcement—that is, security threats the bill be deemed read a third time. the results of a recent visitors survey. within Guatemala—to a mission lim- I further ask unanimous consent that In this survey taken at the National ited to dealing with external threats, any votes ordered with respect to these Museum of History, it became evident from outside Guatemala. amendments be postponed to occur in that the Armed Forces’ history hall In 35 years of fighting, this is the stacked sequence beginning at 5 p.m. was the second most popular exhibit most significant action we have seen on Tuesday, September 24, with 2 min- area in the museum. Therefore, speak- that could lead to long-term peace. utes for debate equally divided before ing on behalf of most Americans, I urge There are still many risks ahead, par- each vote, and at 4:30 p.m., there be 30 the museum to reconsider its plan for ticularly how to reincorporate insur- minutes equally divided on the rates the military history hall. gents into the Guatemalan society. issue. We should look at this museum, re- The progress made yesterday, however, Mr. STEVENS. Mr. President, reserv- sponding to the needs of the American lays important groundwork so that ing the right to object, it is my under- people. If this survey shows that this is progress can be made in future weeks. standing that there will be 15 minutes the second most popular exhibit in the I commend the U.N. negotiators who for Senator HARKIN before the motion museum, we should not have some revi- helped to mediate between the Guate- to table his second-degree amendment sionist at the Smithsonian Institution malan Government and the rebel lead- and 15 minutes for Senator GRASSLEY taking away what the American people ers. Yesterday’s accord is the fifth that before we move to table his first-degree like and enjoy and depriving American has emerged from these United Na- amendment. people of understanding and visualizing tions-mediated talks. The other agree- Mr. LOTT. That is correct. the sacrifice of American service men ments dealt with human rights, Indian The PRESIDING OFFICER. Without and women who do sacrifice with lives, rights, poverty and land tenure, and objection, it is so ordered. with injuries, with time away from also to set up a commission to review Mr. LOTT. Mr. President, now that family for the defense of freedom, so some of the crimes committed during we have that agreement entered into, I that not only can the American people the war. will note also there is a clearly under- enjoy freedom, but the revisionist his- The military’s agreement to stood gentlemen’s agreement about torians still have the intellectual envi- downsize its forces and its budget and how the votes will occur in terms of ronment in which they can do their its mission was coupled with a commit- what will be tabled and what will not work. But they ought to show more ap- ment by the government to create a be tabled. We have had very clear un- preciation of that sacrifice, and I think new police force with new recruits and derstanding and discussion on that. We the plans for this military history mu- retrain former officers to take over the will work very carefully with Senators seum detract from that. army’s domestic security functions. to make sure that understanding is ad- I yield the floor. Mr. President, there certainly will be hered to. Mr. BINGAMAN addressed the Chair. skeptics who will not believe the mili- With this unanimous-consent agree- The PRESIDING OFFICER. The Sen- tary will carry through with these ment, also I announce there will be no ator from New Mexico. commitments. I, too, have concerns further recorded votes today. The next Mr. BINGAMAN. Mr. President, I ask about how this transition may occur, votes will occur on this issue at 5 unanimous consent that I be allowed to but this is, nevertheless, an important o’clock on Tuesday. It is possible that proceed as in morning business for 5 turning point in Guatemalan history, other votes will occur during the day, minutes. given the long history and troubling Tuesday. We will come in session on The PRESIDING OFFICER. Without encounters that our own Government Tuesday at 9:30 a.m. We hope to be pre- objection, it is so ordered. has had with the Guatemalan Govern- pared to enter an agreement as to how f ment. we will proceed on Tuesday, with the American interests need to be en- likelihood, the possibility of votes dur- GUATEMALA ACCORD couraged with this move away from the ing the day, but these stacked votes Mr. BINGAMAN. Mr. President, I extreme undue influence the military will not occur until 5 o’clock. want to call attention to a very en- has previously exerted in affairs of I yield the floor, Mr. President. couraging development that was an- state in that country. Mr. GRASSLEY addressed the Chair. nounced in Mexico City, yesterday. I do welcome this news. I want my The PRESIDING OFFICER. The For 35 years, the conflict in Guate- colleagues to know about it. I wish Chair recognizes the Senator from mala between the insurgents there and both sides of this negotiation well in Iowa. the government has produced more carrying out the agreement that they Mr. GRASSLEY. Mr. President, I am than 100,000 deaths, many millions announced in Mexico City yesterday. going to offer my first amendment. I have been maimed and seriously in- Mr. LOTT addressed the Chair. am going to explain the amendment jured, and there has been scant hope The PRESIDING OFFICER. The before I send it to the desk, Mr. Presi- that the guerrilla warfare in that coun- Chair recognizes the majority leader. dent. try might end. f Some people think that once we pay Yesterday, in the offices of the Mexi- for the U.S.-flag companies, the $2 mil- can Foreign Ministry, Gustavo Porras MARITIME SECURITY ACT lion of corporate welfare that we pay Catejon, who is the head of the Guate- The Senate continued with the con- per year, per vessel, with this bill that malan Government delegation, broke sideration of the bill. we will not have to pay them again to into a bear hug with the senior com- Mr. LOTT. Mr. President, after a lot carry actual war sustainment cargoes. mander of the Guatemalan rebels, of good work by many Senators, I be- I think the managers of the bill have, Rolando Moran. Although no cease-fire lieve we have a unanimous consent in speaking in opposition to some of S11070 CONGRESSIONAL RECORD — SENATE September 20, 1996 my amendments, have suggested that had been looking out for the taxpayers, apply the same principle. For instance, we got this $2.1 billion corporate wel- we could have shipped that materiel for in pharmaceuticals, you may remem- fare subsidy per ship, per vessel; that $64,000 less. ber a lot of debate we had in this body that is all we ever have to pay. Before somebody tells me that the on the purchase of Medicare pharma- But what we are paying for, if I can GAO concluded that neither U.S. flags ceuticals, that Medicare would not be tell my colleagues, is the right and the nor foreign flags gouged taxpayers dur- charged any more than the largest vol- obligation of those companies to have ing the Persian Gulf war, I want to re- ume price that the company would give those ships available, or similar ships mind anybody who might refer to that to one of its other customers. We apply available, to do what the Department of two things: First, the GAO auditing that principle here to this bill. of Defense requires to meet our na- uses the liberal measure, such as ‘‘fair This amendment is not only essential tional security obligations. and reasonable,’’ not anything close to for protecting the taxpayers, as these But once those ships are brought in what the rate would be in a competi- other amendments have been—some of to meet our national security obliga- tive market. this is even law in other provisions of tions—that is presumably when we Second, the fact is, a U.S.-flag com- the code—but, also, I offer this amend- have to deliver things during war— pany did overcharge the Defense De- ment because I think it is necessary then we have additional costs, because partment by $18 million for Persian that we slowly and gradually nudge our we will have to pay again to carry the Gulf war transport services. This mat- U.S. merchant marine into the com- actual war sustainment cargoes. So the ter is still pending before the Armed petitive world. fact that we just paid $2.1 million of Services Board of Contract Appeal. So We have done it with our railroads. corporate welfare subsidy per year, per the Defense Department is concerned We have done it with our airlines. We vessel, that that is the end of it, is sim- about being overcharged $18 million. have done it with our truckers, my ply not the case. The Defense Department has made no gosh, almost 20 years ago. It is about There are more charges. H.R. 1350 al- claims of overcharging by foreign-flag time we start doing it with the mari- lows these carriers, even though they vessels. In fact, foreign flags typically time. Our deficit-riddled Government can have already received this heavy cor- cost one-half to one-third the cost of no longer afford to allow the maritime porate welfare subsidy, they will be comparable U.S.-flag vessels during the lobby to block efforts to negotiate able to charge to carry war gulf war. One-half to one-third less. worldwide maritime reforms. There is sustainment materials at what is My amendment embraces taxpayers’ protection similar to Buy-America another bill in this Congress sitting called ‘‘fair and reasonable’’ rates. around here right now that has some- My amendment deals with the sub- laws. For instance, under buy America, agencies are required to buy products thing to do with that. It may not pass ject of fair and reasonable rates. Unfor- because of the opposition of some, not tunately, these rates are anything but from U.S. companies, but if the same product can be purchased from a for- all, of the maritime industry to com- fair and reasonable to the taxpayers. peting in the real world out there. That is what this Government is all eign company at 6 percent less than what the U.S. company charges, the Then they will argue, won’t they, that about, getting the taxpayers the most they need subsidies because foreign Government can buy from foreign for their money, at least that is what competition is unfair. So I say they it is supposed to do. sources. So you see, I am using definitions in cannot have it both ways. OK. Why is this way not fair and rea- Some time ago in a Journal of Com- law today. I am applying that defini- sonable to the taxpayers? It is because merce article entitled ‘‘On the Evils of tion in other sections of the code ap- Congress failed in its responsibilities Maritime Subsidies,’’ former Maritime plying to other purchases of service to to the taxpayers to define ‘‘fair and Administrator, Adm. Harold E. Shear, the maritime industry as it is used in reasonable’’ and has left to the Mari- stated—and I quote: time Administration the right to come our war efforts. My amendment uses the very same Nearly 50 years of subsidies have not pre- up with its own definition of ‘‘fair and vented the demise of the U.S. merchant ma- reasonable.’’ The problem with this is Buy-America market test of 6 percent. rine . . . Subsidies do nothing more than that the Maritime Administration So if my amendment were in place, cause inefficiency, mediocrity, lack of incen- views its primary responsibility, not to then U.S.-flag companies, if they would tive, and dependence upon Uncle Sam. the American taxpayer, but instead to charge more than 6 percent above what That is the statement of a former the welfare of U.S. maritime compa- can be secured from a foreign-flag ves- maritime administrator. He has been nies and seafarers. sel, the Government has a right to hire there. He has seen the entire industry. Therefore, under the guise of ‘‘fair the foreign-flag vessel. This amend- He has watched it over a period of and reasonable,’’ taxpayers are forced ment will also prohibit a new scheme time. That is what he had to say. to pay an extra $450 million a year that allows U.S.-flag carriers to charge I feel that time is running out on the above world market rates to ship de- the Defense Department what they U.S.-flag merchant marine. They must fense cargoes. When you include other would charge infrequent or spot cus- become competitive and give up gov- agencies that can be involved in paying tomers. ernment welfare. This legislation deals part of this bill, the taxpayers’ bill Mr. President, let me confer here just with that. runs up to $600 million a year. a minute. Once again, I want to speak about Price gouging is even worse when we Mr. President, I am sorry. I was ex- several grassroots organizations lo- need these U.S. flags for war. During plaining my Buy-America amendment cated here in town that speak for the the Persian Gulf effort, they charged and saying we use the same 6 percent American people on wasteful Govern- taxpayers an extra $625 million. Again, test. That would apply then to our ment spending, who support my efforts I want to quote other authorities. You maritime industry, like that 6 percent on this amendment and on this bill. might recall on September 10, 1990, in test applies to others. So we would pro- The Americans for Tax Reform U.S. News & World Report, an article hibit, then, paying more than 6 percent ‘‘strongly opposes the continuation of entitled ‘‘Unpatriotic Profits.’’ above what competition would charge. maritime subsidies in any form and My amendment also has a second The Pentagon is miffed at what it feels is strongly urges you to remove any such profiteering by the operators of two U.S. portion by prohibiting a new scheme subsidies from the bill.’’ cargo ships. Because the Navy is required to that allows U.S.-flag carriers to charge We also have a letter from the Coun- use American bottoms before contracting the Defense Department what they cil of Citizens Against Government with foreign-owned ships, it paid the two would charge infrequent or spot cus- Waste, cosigned as well by the National U.S. carriers $70,000 to send war materiel to tomers. My amendment makes certain Taxpayers Union. We also have a letter the gulf. The comparable foreign bid was that this bill will require that U.S.-flag from Citizens for a Sound Economy. $6,000. vessels give taxpayers the same rate I ask unanimous consent to have We paid $70,000, when a comparable that they gave their volume customers those printed in the RECORD. bid could cost only $6,000. In other like the JC Penneys of the world. There being no objection, the mate- words, if our people had been on their This idea also comes from a lot of ac- rial was ordered to be printed in the toes, or if the Maritime Administration tivity of other Members in this body to RECORD, as follows: September 20, 1996 CONGRESSIONAL RECORD — SENATE S11071

AMERICANS FOR TAX REFORM, tive branch agencies. Only one-Transpor- Secretary of Defense, the Chairman of the Washington, DC, September 18, 1996. tation Secretary Pena—opposed this deficit- Joint Chiefs of Staff, and the Commander of DEAR SENATOR: The ‘‘Maritime Reform and neutral plan because it ‘‘provides less sup- the Transportation Command have already Security Act of 1995’’ is now pending in this port than is sought by the industry and its concluded that future requirements will not Senate. Americans for Tax Reform strongly supporters.’’ exceed 20–30 liner vessels . . . This opinion opposes the continuation of commercial This is one of my reasons why we join op- would meet DOD’S maximum military re- maritime subsidies in any form and strongly position to this bill, and will key vote final quirements.’’ [H.R. 1350 subsidizes 47 vessels.] urges you to remove any such subsidies from passage if the Senate fails to pass Sen. We strongly support Seanator Grassley’s the bill. Grassley’s pro-taxpayer amendments, espe- attempt to address many of the more egre- Numerous independent studies have illus- cially those that provide protections to tax- gious problems with this bill. Senator Grass- trated the needless and excessive cost of payers from maritime rate price gouging and ley’s seven amendments would: commercial maritime subsidies to the U.S. prohibit subsidies from being used for cam- Eliminate the provisions in H.R. 1350 that taxpayer. For example, a 1989 Department of paign and lobbying purposes. for the first time would exempt U.S.-flag Transportation report done by MIT entitled Sincerely, vessels from requisitioning, to ensure that ‘‘Competitive Manning of U.S.-flag Vessels’’ COUNCIL FOR CITIZENS vessel operators who receive taxpayer fund- exposed serious waste in this program and AGAINST GOVERNMENT ing cannot escape their obligations in time determined that maritime subsidies could be WASTE. of war; reduced by half if there was, in fact a mili- NATIONAL TAXPAYERS Require that all subsidized U.S. vessels are tary need for these ships. Even Al Gore has UNION. utilized before foreign-flag vessels may be concluded that these subsidies should be hired; Require subsidized seafarers to serve when abolished. CITIZENS FOR A SOUND ECONOMY, Like many proponents of increased govern- Washington, DC, September 16, 1996. needed or lose their license to work on U.S.- ment intervention, supporters of this legisla- DEAR SENATOR: On behalf of our 250,000 flag vessels for five years; tion assert that it is necessary for national members across America, I want to express Prohibit recipients of the handouts pro- security reasons. However, this legislation is our strong opposition to H.R. 1350, the so- vided in the bill from using the money to not likely to be at all effective in accom- called Maritime Security Act, and our strong make contributions to political campaigns. plishing that task. In fact, the Department support for the amendments to this bill of- This would make it harder for the maritime of Defense’s Mobility Requirements Study, fered by Senator Charles Grassley (R–Iowa). lobby to use taxpayer dollars to press Wash- Bottom Up Review Update concluded that The amendments would limit the cost to tax- ington for more taxpayer dollars; Preclude subsidies from being used in so- even without subsidies, the U.S. fleet would payers from this proposal without weakening called ‘‘public education’’ efforts; be adequate in the event it was needed in our national defense. Require that war bonuses paid to seafarers The Act has less to do with maritime pol- time of conflict. If the United States mili- be harmonized with the war bonuses the Pen- icy reform and national security than with tary can meets its requirements without tagon pays regular military personnel. Ac- corporate welfare. Indeed, this initiative these subsidies, why are we asking the Amer- cording to Persian Gulf War data, taxpayers would hand out a staggering $1 billion in ican taxpayer to foot the bill? can be forced to pay seafarers war bonuses The subsidies contained in the Maritime subsidies over the next decade to the private that are 50 times greater than the war bo- Reform and Security Act of 1995 are particu- merchant marine fleet, without any compel- nuses paid to active military personnel; larly egregious examples of a bloated federal ling national security interest or other ra- Limit maximum vessel rates to no more government spending taxpayers’ money on a tionale. It would reward maritime special in- than 6 percent above world market rates. project that is wholly unnecessary. This terests that have been highly vocal on this Currently, the Maritime Administration ap- Congress has shown its willingness to elimi- issue—contributing some $17 million to can- pears to interpret ‘‘fair and reasonable’’ nate ridiculous pork-barrel spending. Why is didates for political office over the last dec- rates to mean whatever rates cover the cost the Senate even considering extending a pro- ade. For taxpayers and consumers, it is quite of operation plus a profit margin of about 13 gram that costs American taxpayers more another story. Assuming, conservatively, percent and keep as many seafarers in busi- than $100,000 per job subsidized annually? that the overall annual cost of present mari- ness as possible. Let’s get rid of this wasteful and ineffi- time policies is $5 billion, the average cost The American taxpayer—who on average cient program once and for all. per seagoing job is no less than $375,000. makes less than $29,000 per year—is unlikely Sincerely, Yet, as Harold E. Shear, a retired navy ad- in the long term to reward those politicians GROVER G. NORQUIST. miral, concluded: ‘‘Nearly 50 years of sub- who grant a government subsidy of over sidies have not prevented the demise of the $50,000 a year to a commercial sailor who COUNCIL FOR CITIZENS AGAINST GOV- U.S. merchant marine. . . . Subsidies to works no more than six months per year. ERNMENT WASTE, NATIONAL TAX- nothing more than cause inefficiency, medi- We want to emphasize, that our endorse- PAYERS UNION, ocrity, lack of incentive and dependence on ment of the Grassley amendments should September 17, 1996. Uncle Sam.’’ We believe that Mr. Shear, who not, in any way, be construed as an endorse- DEAR SENATOR: Most members of the 104th has overseen the administration of these ment of the bill. We believe that, first, this Congress have prided themselves on ending subsidies as maritime administrator, knows bill should be defeated. Should that prove welfare as we know it. Unfortunately, the what he is talking about. impossible, we believe the Grassley amend- Senate may soon consider H.R. 1350, the Supporter of maritime subsidies—and H.R. ments must be passed in order to reduce spe- ‘‘Maritime Security Act,’’ which is nothing 1350 in particular—maintain that only a cial interest subsidies and soften the blow to more than corporate and labor union wel- U.S.-owned, U.S.-flagged, U.S.-manned com- taxpayers. fare. The Council for Citizens Against Gov- mercial fleet can support the military in Sincerely, ernment Waste will key vote these votes for emergencies. This argument is a red herring. PAUL BECKNER, our 1996 Congressional Ratings. And because First, as Admiral Shear points out, the im- President. they do not key vote per se, the National pact of subsidies on the U.S. commercial Taxpayers Union will weigh heavily these fleet has been questionable at best. More- Mr. GRASSLEY. These letters speak votes for their analysis of the 104th Con- over, there is an enormous amount of capac- to the issue of these votes and they are gress. ity available on the open market that can scoring these votes in their index of Taxpayer watchdog and public interest deliver more services more reliably at lower whether or not you are a fiscally re- groups asked to testify at public hearings to cost. The Military Sealift Command made sponsible Member of Congress. expose this welfare for shipping companies, heavy use of foreign ships staffed by non- Mr. STEVENS. Will the Senator but were denied that opportunity. Therefore, U.S. citizens in the Gulf War. Only 17 ships yield? the undersigned organizations oppose this out of the 500 that went into the war zone Mr. GRASSLEY. I am happy to yield. bill and will key vote (or weigh heavily) final during the Gulf War were from the active Mr. STEVENS. Has the Senator pro- passage unless several pro-taxpayer amend- U.S. flag commercial fleet—only six of these posed the amendment? ments to be offered by Sen. Grassley (R– had ever received the subsidies. Iowa) and others are adopted. In 1993, 15 out of 16 government agencies Mr. GRASSLEY. As a matter of effi- According to an internal 1993 White House supported an option presented to President ciency, I would like to speak to the memo to President Clinton from then-Assist- Clinton to limit these subsidies. This is how three amendments that I was going to ant to the President for Economic Policy now-Secretary of the Treasury Robert Rubin put forth—I will not put six amend- Robert Rubin, the primary reason for this $1 described this option in his June 30, 1993 ments forth—and then we would avoid billion subsidy is to pay for the exorbitant ‘‘Decision Memorandum on Maritime Is- the necessity of setting amendments salaries and benefits of union seafarers. sues.’’: aside. As a matter of efficiency, I want- In addition, this internal White House ‘‘Subsidies for the U.S. flag feet have al- memo cited the Defense Department’s (DoD) ways been justified by their role in providing ed to do that. argument that it needed as few as 20 U.S.- a sealift capacity for use in military emer- Mr. STEVENS. Mr. President, I won- flag vessels. DoD also proposed a deficit-neu- gencies. With the end of the Cold War DOD’s der when we would be able to see the tral plan to pay for new subsidies. The DoD sealift requirements have declined. Although amendments that the Senator is offer- plan was supported by the heads of 15 execu- DOD’s bottom-up review is not complete, the ing? S11072 CONGRESSIONAL RECORD — SENATE September 20, 1996 Mr. GRASSLEY. We will give you be paid from. Also, the overburdened vessel referred to in this section not to be copies of the amendments now, before I taxpayers have helped to some extent, fair and reasonable if, at the time the ar- send them to the desk. because to the extent there are sub- rangement is made for the transportation by The PRESIDING OFFICER. The sidies involved in the support of the in- sea of supplies referred to in subsection (a), the lowest acceptable freight offered for the Chair recognizes the Senator from Iowa dustry, seafarers can afford to be gen- transportation by any such vessel exceeds by to proceed. erous with campaign contributions. more than 6 percent the lowest acceptable Mr. GRASSLEY. Mr. President, I am My amendment would prohibit this freight charged by a foreign-flag commercial going to offer amendments as a com- bill, H.R. 1350, the subsidies therein, vessel for transporting similar volumes of bined amendment, amendments that from being used for campaign contribu- containerized or break bulk cargoes between would prohibit the use of money in tions. Again, this is a simple propo- the same geographic trade areas of origin these subsidies to the maritime compa- sition. Taxpayers should not be forced and destination.’’. nies from being used for lobbying or for to fund the campaign contributions of (b) MOTOR VEHICLES FOR MEMBER ON campaign contributions. That will be CHARGE OF PERMANENT STATION.—Section special interest groups. Congress has 2634 of title 10, United States Code, is amend- one amendment. already adopted similar campaign con- ed— I was going to offer it as two separate tribution restrictions on other funding (1) in subsection (a)(3), by inserting ‘‘or if amendments, but they are so closely bills. I hope my colleagues would sup- the freight charged by a vessel referred to in related, I think they should be joined port this measure, as well. clause (1) or (2) is not fair and reasonable’’ together. On behalf of the amendment I AMENDMENTS NOS. 5393 AND 5394 after ‘‘available’’; and am speaking about now, it would say Mr. GRASSLEY. Mr. President, I (2) by adding at the end of subsection (b) the following new clause: that these funds cannot be used for lob- send these two amendments to the bying or public education. ‘‘(3) The term ‘fair and reasonable’ means desk and ask that they be read. with respect to the transportation of a For years now, maritime subsidies, The PRESIDING OFFICER. The motor vehicle by a vessel referred to in such as operating differential sub- clerk will report. clause (1) or (2) of subsection (a) that the sidies, have funneled money into pro- The assistant legislative clerk read freight charged for such transportation does maritime lobbying organizations. The as follows: not exceed, by more than 6 percent, the low- Maritime Administration has histori- The Senator from Iowa [Mr. GRASSLEY] est freight charged for such transportation cally calculated a certain amount of proposes amendments numbered 5393 and by a vessel referred to in clause (3).’’. the taxpayer subsidies to U.S.-flag car- 5394. riers to cover funding for organizations The text of the amendments (Nos. AMENDMENT NO. 5394 such as the Transportation Institute 5393 and 5394) are as follows: (Purpose: To prohibit the use of funds re- ceived as a payment or subsidy for lobby- and the Joint Maritime Congress. AMENDMENT NO. 5393 ing or public education) I want to make clear to my col- On page 23, after line 25, insert the follow- leagues that I do not have anything ing: On page 16, between lines 23 and 24, insert the following: against the Transportation Institute or ‘‘(7) FAIR AND REASONABLE COMPENSATION.— The term ‘fair and reasonable compensation’ ‘‘(q) PROHIBITION ON THE USE OF FUNDS FOR the Joint Maritime Congress, but it LOBBYING OR PUBLIC EDUCATION.— should not be a cost of operation that means that charges for transportation pro- vided by a vessel under section 653 do not ex- ‘‘(1) IN GENERAL.—An operating agreement the taxpayer subsidy is going to be ceed by more than 6 percent the lowest under this subtitle shall provide that no pay- used for. This should be funded by pri- charges for the transportation of similar vol- ment received by an owner or operator under vate money. It should not be a cost of umes of containerized or break bulk cargoes the operating agreement may be used for the doing business figured into the subsidy. for private persons. purpose of lobbying or public education. My amendment makes certain that At the end of the bill, insert the following: ‘‘(c) DEFINITIONS.—For purposes of this subsection, the terms ‘lobbying’ and ‘public these funds cannot be misused for such SEC. 18. MERCHANT MARINE ACT, 1936. education’ shall have the meanings provided lobbying or so-called public education Section 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1241(b)) is amended by those terms by the Secretary of Transpor- purposes. There is not much that I tation. need to add. The Senate has debated adding at the end the following new para- graph: On page 18, between lines 21 and 22, insert this issue and voted on it on other bills ‘‘(3) For the purposes of this subsection, the following: at other times, with the principle of the Secretary of Transportation shall con- ‘‘(4) PROHIBITION ON THE USE OF FUNDS FOR my amendment applicable to the sub- sider the rates of privately owned United LOBBYING OR PUBLIC EDUCATION.— ject matter of that legislation, as my States-flag commercial vessels that are ‘‘(A) IN GENERAL.—An Emergency Pre- paredness Agreement under this section amendment is subject to the maritime available to an agency to transport cargo pursuant to paragraph (1) not to be fair and shall provide that no payment received by a legislation. contractor under this section may be used On November 9, 1995, the Senate reasonable if, at the time the agency ar- ranges for the transportation of the cargo, for the purpose of lobbying or public edu- voted on a measure to restrict the use the lowest acceptable rate offered for the cation. of public funds being used for lobbying. transportation by a privately owned United ‘‘(B) DEFINITIONS.—For purposes of this So every Senator is on record on this States-flag commercial vessel exceeds the paragraph, the terms ‘lobbying’ and ‘public issue. Simply put, taxpayers should not lowest acceptable rate offered for the trans- education’ shall have the meaning provided be forced to pay for lobbying by special portation by a foreign-flag commercial ves- those terms by the Secretary of Transpor- interest groups. sel by more than 6 percent.’’. tation. On page 26, between lines 17 and 18, insert SEC. 19. MILITARY SUPPLIES. Then the second part of this amend- the following new subsection: (a) IN GENERAL.—Section 2631 of title 10, ment would say that funds cannot be (c) PROHIBITION ON THE USE OF FUNDS FOR used for campaign contributions. Real- United States Code, is amended— (1) in subsection (a)— LOBBYING OR PUBLIC EDUCATION.—Section 603 izing how much maritime subsidies are (A) in the second sentence, by striking ‘‘is of the Merchant Marine Act, 1936 (46 U.S.C. really maritime union welfare, you can excessive or otherwise unreasonable’’ and in- App. 1173) is amended by adding at the end understand why I might argue if you serting ‘‘is not fair and reasonable’’; and the following new subsection: are against taxpayer campaign finance, (B) in the third sentence, by striking ‘‘by ‘‘(g) PROHIBITION OF THE USE OF FUNDS FOR you should vote in favor of my amend- those vessels may not be higher than the LOBBYING EDUCATION.— charges made for transporting like goods for ‘‘(1) IN GENERAL.—No subsidy received by a ment. contractor under a contract under this sec- Former Congressman McCloskey, a private persons’’ and inserting ‘‘by those ves- sels as containerized or break bulk cargoes tion may be used for the purpose of lobbying Republican in the House of Representa- may not be higher than the charges made for or public education. tives when he served in the Congress, transporting similar volumes of container- ‘‘(2) DEFINITIONS.—For purposes of this sub- was involved in this issue very deeply ized or break bulk cargoes for private per- section, the terms ‘lobbying’ and ‘public edu- because he was high ranking on the sons’’. cation’ shall have the meanings provided subcommittee dealing with maritime. (2) in subsection (b)— those terms by the Secretary of Transpor- He said that seafarers’ per capita cam- (A) by redesignating paragraph (3) as para- tation.’’. graph (4); and On page 16, between lines 23 and 24, insert paign contribution ran 500 times the (B) by inserting after paragraph (2) the fol- the following: average of the AFL–CIO member. You lowing new paragraph: ‘‘(q) PROHIBITION OF THE USE OF FUNDS TO probably know why. First of all, there ‘‘(3) For purposes of this section, the Presi- INFLUENCE AN ELECTION.—An operating are much higher salaries there for it to dent shall consider the rates charged by a agreement under this subtitle shall provide September 20, 1996 CONGRESSIONAL RECORD — SENATE S11073 that no payment received by an owner or op- sels caused us a lot of confusion about U.S.-flag vessels and U.S. crew mem- erator under the operating agreement may the extent of U.S.-flag support during bers to carry the war materiel, and to be used for the purpose of influencing an the Persian Gulf war. Some believe carry it clearly into the war zone, not election. On page 18, between lines 21 and 22, insert that these U.S.-flag commercial con- just to a commercially convenient the following: tainer vessels, which will be subsidized drop-off point, such as Rotterdam. In ‘‘(4) PROHIBITION ON THE USE OF FUNDS TO under H.R. 1350, delivered 79 percent of other words, if we are paying a $2.1 mil- INFLUENCE AN ELECTION.—An Emergency Pre- our military cargo into the war zone. lion subsidy to have these ships avail- paredness Agreement under this section This is just not accurate. able, with the responsibility to get the shall provide that no payment received by a We must not confuse the difference stuff to the war zone. If the philosophy contractor under this section may be used among the cargoes and the ownership for the purpose of influencing an election. behind this legislation is that we On page 26, between lines 17 and 18, insert of vessels. Although much of the Per- should have this stuff carried to the the following: sian Gulf cargoes were carried by U.S. war zone on American ships with (c) PROHIBITION ON THE USE OF FUNDS TO flags, many were Government-owned American crews, then obviously the INFLUENCE AN ELECTION.—Sectiion 603 of the vessels, not the commercial-owned con- bill ought to do that. Otherwise, it Merchant Marine Act, 1936 (46 U.S.C. App. tainer vessels that seek these taxpayer ought to be made very clear that what 1173) is amended by adding at the end the fol- subsidies. In reality, Government- this bill is supposed to do, it really lowing: owned and Government-chartered ves- ‘‘(g) PROHIBITION ON THE USE OF FUNDS TO does not do that. sels deliver 50 percent of these car- INFLUENCE AN ELECTION.—No subsidy re- So you want to remember that mari- ceived by a contractor under a contract goes—primarily ammunition and mili- time unions and carriers are con- under this section may be used for the pur- tary equipment. The remaining 29 per- stantly arguing that we cannot trust pose of influencing an election.’’ cent of cargoes, which was primarily foreign flag and foreign crews, and they Mr. GRASSLEY. Mr. President, the sustainment—that included food, say that is why we must subsidize last amendment I am going to propose clothing, and things like that—was American companies’ ships with this on this bill states that subsidized car- transported by U.S.-flag container ves- corporate welfare program that is be- riers must provide U.S. flag and U.S. sels to some hub port around the world. fore us. crews for the entire defense sealift voy- From there, most of the military So then it seems to me that, under age. This amendment is responding to sustainment cargoes were unloaded this philosophy, taxpayers should be the desire, presumably, behind the bill, onto foreign-flag, foreign-crewed ves- able to insist that U.S.-flag carriers presumably behind cargo preference sels, which made the deliveries into the that receive this billion-dollar cor- legislation for 50 years, a necessity of war zone. In short, virtually all of the porate subsidy over 10 years put their having American ships and U.S. crews military sustainment cargoes carried national defense responsibilities ahead delivering our products, our materiel, by U.S.-flag container vessels were of their commercial interests in times to the war zone. So it requires that we transferred to foreign flag/foreign of war. crews to be delivered into the war zone. have U.S. flag and U.S. crews for the AMENDMENT NO. 5395 entire defense sealift voyage. Foreign flag/foreign crews made about 500 voyages into the gulf war zone. (Purpose: To provide that United States-flag Most believe that if we pay these vessels be called up before foreign flag ves- U.S.-flag carriers this billion dollar About 300 were feeder vessels that sels during any national emergency and to corporate welfare subsidy over the next picked up cargo from U.S.-flag contain- prohibit the delivery of military supplies 10 years, they will carry out their obli- ers at a hub port. This practice will not to a combat zone by vessels that are not gation to deliver military sustainment change under this bill and VISA, as it United States flag vessels) cargo all the way into the war zone is currently written. Mr. GRASSLEY. I send this amend- with their U.S.-flag commercial vessels In fact, this legislation will allow ment to the desk and ask that it be with U.S. crews. Unfortunately, nei- U.S.-flag carriers to meet its stage read as I did the other two. three obligation by substituting its ther the VISA program, which is al- The PRESIDING OFFICER. The U.S. flag/U.S. crews with foreign flag/ ready in place, nor this bill, H.R. 1350, clerk will report. foreign crews for the entire voyage, not guarantees this. So the legislation The legislative clerk read as follows: just to the hub. The Senator from Iowa [Mr. GRASSLEY] purports that it is necessary, for our Now, what is even more incredible is own national security, to have our own proposes an amendment numbered 5395. the fact that these subsidized U.S.-flag Mr. GRASSLEY. Mr. President, I ask U.S. ships and our own U.S. crews to carriers will be able to charge U.S.-flag unanimous consent that reading of the deliver to the war zone our war mate- premium rates, while providing the De- riel. Yet, there is no guarantee from amendment be dispensed with. partment of Defense with foreign-flag/ The PRESIDING OFFICER. Without this legislation and no guarantee from foreign-crewed vessels. objection, it is so ordered. VISA that this will be the situation. Although the inference in this legis- The amendment is as follows: What typically is the practice is that lation may be that we will have Amer- U.S.-flag vessels will deliver war At the appropriate place, insert the follow- ican crews with American-owned ships ing new section: sustainment materiel to its commer- do the necessary job of transporting cial hub—that hub could be Rotterdam, SEC. . IMPLEMENTATION OF VOLUNTARY our war materiel, and that may be an INTERMODAL SEALIFT AGREEMENT. as an example—and then unload it onto intent of the bill, it is not a certainty (a) IN GENERAL.—In any national emer- foreign-flag, foreign-crewed vessels, with the bill. It seems to me that we gency covered under the Voluntary Inter- which will then carry the materiel into ought to nail that down for that $2.1 modal Sealift Agreement described in the the war zone. million corporate welfare subsidy. notice issued by the Maritime Administra- But this bill does not correct this sit- Now, our distinguished majority tion on October 19, 1995, at 60 Fed. Reg. 54144, the Secretary of Transportation shall ensure uation, the practice of using foreign leader, Senator LOTT, on July 30, 1996, vessels and foreign crews feeders. Now, that, to the maximum extent practicable, stated this: United State-flag vessels are called into as you have heard me say, that doesn’t Our military needs a U.S.-flag merchant bother me so much because, as a prac- service to satisfy Department of Defense marine to carry supplies to our troops over- contingency sealift requirements under a tical matter, that is the way we get seas. We cannot—in fact, we must not—rely State III activation of the Agreement (as de- our goods there. But it seems to me upon foreign ships and foreign crews to de- scribed in the notice) before foreign flag ves- that if we are going to have this sub- liver supplies into hostile areas. sels are used to satisfy any such require- sidy of $2.1 million of corporate welfare That was our own distinguished ma- ments. for each ship and they get paid that jority leader a little over a month ago, (b) LEVEL OF PARTICIPATION.— just for the obligation they have to the speaking of the importance of this. My (1) IN GENERAL.—Notwithstanding any United States to be available in case of amendment, then, to H.R. 1350 is nec- other provision of law, United States-flag vessels that are the subject to a payment or war, or to provide equal service in the essary if we hope to achieve the objec- subsidy under title VI the Merchant Marine case of war, then they ought to be de- tive stated on July 30, 1996, by Senator Act, 1936, as amended by section 2 of this livering the product to the war zone. LOTT. Act, shall be required to participate under So this practice of transferring to My amendment requires subsidized the Voluntary Intermodal Sealift Agreement foreign ships and foreign-crewed ves- carriers to provide Uncle Sam with in accordance with this section. S11074 CONGRESSIONAL RECORD — SENATE September 20, 1996 (2) STAGE III LEVEL OF PARTICIPANTS.—In a of listening to their objections to my trolled and foreign-flag vessels for sea- Stage III activation of the Voluntary Inter- amendments. Whatever the floor man- lift because they maintain that to ship modal Sealift Agreement, a carrier shall agers at this point want to do, I yield goods on foreign vessels would be less make available for satisfying Department of the floor. expensive. However, I would like to Defense contingency sealift requirements 100 percent of the carrier’s United States-flag Mr. STEVENS. Mr. President, we suggest that to do this would subject vessels that are subject to a payment or sub- have not had a chance to study the our Armed Forces to a highly unreli- sidy referred to in paragraph (1). amendments. I only have the first one able source of sealift and supply. This (3) STAGE I OR II LEVEL OF PARTICIPATION.— in my hand now. We have two more. I would leave the United States at the In a Stage I or II activation of the Voluntary can’t debate these amendments until I mercy of price gouging by foreign-flag Intermodal Sealift Agreement, a carrier have a chance to analyze them. So I vessels who would have a captive cli- shall make available for satisfying Depart- suggest the absence of a quorum. ent. ment of Defense contingency sealift require- The PRESIDING OFFICER. The For example, in the recent war in the ments the maximum percentage practicable of the carrier’s United States-flag vessels clerk will call the roll. Persian Gulf, 80 percent of the cargo that are subject to a payment or subsidy re- The legislative clerk proceeded to was carried on American flags. We had ferred to in paragraph (1). call the roll. to pull out ships from all over the (c) REQUIREMENT FOR CERTAIN STAGE III Mr. INOUYE. Mr. President, I ask seven seas. But we cannot provide 100 PARTICIPANTS.— unanimous consent that the order for percent coverage of all cargo. It was (1) REQUIREMENT.—Notwithstanding any the quorum call be rescinded. not possible. Our fleet was not large other provision of law, in the provision of The PRESIDING OFFICER. Without enough. Therefore, to carry the re- sealift services in accordance with a Stage III activation of the Voluntary Intermodal objection, it is so ordered. maining 20 percent, we had to rely on Sealift Agreement, a United States-flag ves- AMENDMENT NO. 5396 TO AMENDMENT NO. 5393 foreign vessels. sel referred to in subsection (b) shall be oper- (Purpose: To provide for payment by the Sec- These statistics that I am about to ated by a crew composed entirely of United retary of Transportation of certain ocean present, Mr. President, have been con- States citizens— freight charges for Federal food or export firmed by the GAO and confirmed by (A) whenever the vessel is in a combat assistance) the Department of Defense. The aver- zone; and Mr. INOUYE. Mr. President, on be- age cost of Desert Shield-Desert Storm (B) during any other activity under Stage half of the Senator from Iowa [Mr. shipping by foreign flag was $174 per III of such agreement. ton. The average cost for Desert (2) PROHIBITION.—A carrier may not use HARKIN], I send to the desk an amend- any vessel other than a United States-flag ment to the Grassley amendment No. Shield-Desert Storm shipping by U.S. vessel operated by a crew composed entirely 5393, and this is offered in the second flagships was $122 per ton. It was $52 of citizens of the United States to provide degree. per ton cheaper on American ships. any part of sealift services that the carrier is The PRESIDING OFFICER. The When shipping was particularly essen- obligated to provide under a Stage III activa- clerk will report. tial, when the demand for shipping tion of the Voluntary Intermodal Sealift The legislative clerk read as follows: space became an urgent matter, for- Agreement. eign-flag vessels began to gouge the (d) CONSULTATION.—The Administrator of The Senator from Hawaii (Mr. INOUYE), for the Maritime Administration, in consulta- Mr. HARKIN, proposes an amendment num- U.S. military. And I am going to read tion with the Secretary of Defense, shall es- bered 5396 to amendment numbered 5393. examples of this. tablish procedures to ensure that the re- Mr. INOUYE. Mr. President, I ask During this period, the vessel Green quirements of this section are met. unanimous consent that reading of the Lake, which is an American vessel, was (e) DEFINITION.—For purposes of this sub- amendment be dispensed with. paid $31,500 per day to charter. The ves- section, the following definitions shall apply: The PRESIDING OFFICER. Without sel capacity was 400,416 square feet. For (1) COMBAT ZONE.—The term ‘‘combat objection, it is so ordered. each dollar that we paid, we carried zone’’ shall have the meaning provided that 12.71 square feet. We were able to pur- term in section 112(c)(2) of the Internal Reve- The amendment is as follows: nue Code of 1986. In lieu of the matter proposed to be in- chase 12.71 square feet for $1. (2) NATIONAL EMERGENCY.—The term ‘‘na- serted, insert the following: In the case of the Italian vessel Jolly tional emergency’’ means a general declara- SEC. . OCEAN FREIGHT CHARGES. Smeraldi, we paid a $29,000 per day char- tion of emergency with respect to the na- (a) IN GENERAL.—Notwithstanding any ter cost. The vessel capacity is 97,427 tional defense made by the President or by other provision of law, the Secretary of square feet. And for each dollar that we the Congress. Transportation shall finance any ocean provided this Italian ship, it provided Mr. GRASSLEY. Mr. President, par- freight charges for food or export assistance us 3.35 square feet as compared to the liamentary inquiry. The other two provided by the Federal Government for any American at 12.71. amendments are officially before the fiscal year, to the extent that such charges The Saudi Riyada, we paid that com- body as well. are greater than would otherwise be the case pany $25,000 per day. The Saudi Riyada The PRESIDING OFFICER. The Sen- because of the application of a requirement evidently is owned by the Government that agricultural commodities be trans- ator is correct. ported in United States-flag vessels. of Saudi Arabia. The vessel capacity is Mr. GRASSLEY. I inform the Sen- (b) APPLICATION OF OTHER ACTS.—Sub- 141,000. And for each dollar that we ator from Alaska and the Senator from sections (c), (d), and (e) of section 901d of the paid the Saudi Riyada, we were able to Hawaii that these are the amendments Merchant Marine Act, 1936 (46 U.S.C. App. use 5.64 square feet. that I proposed. I can offer more. Obvi- 1241h) shall apply to reimbursements re- I could go on and read dozens of cases ously, if I am going to offer more, I quired under subsection (a). of this sort. But in each case we got a have to do it before 2 o’clock. Am I (c) DEFINITIONS.—As used in this section: bargain from American steamship com- right, Mr. President? These amend- (1) AGRICULTURAL COMMODITY.—The term panies, whereas, on the other hand, ‘‘agricultural commodity’’ has the same ments must be offered by 2 o’clock? meaning given to such term by section 402 of these companies, these foreign vessels, The PRESIDING OFFICER. Any the Agricultural Trade Development and As- were gouging us. amendments to this bill would have to sistance Act of 1954. For example, it might interest Amer- be offered by 5 p.m. today. (2) FOOD ASSISTANCE.—The term ‘‘food as- icans to know that the Norwegian ves- Mr. STEVENS. If the Senator will sistance’’ means any export activity de- sel Arcade Eagle was given $16,000 per yield, that includes time for Senator scribed in section 901b(b) of the Merchant day by charter, and they carried 55,000 HARKIN to offer his amendment. Marine Act, 1936 (46 U.S.C. App. 1241f(b)). square feet of cargo which comes down Mr. GRASSLEY. I am going to give Mr. INOUYE. Mr. President, pursuant to 3.43 square feet per dollar. The usual up the floor. I just wanted to speak to to the agreement, this amendment will charge of the Arcade Eagle would be the fact that there might be some rea- be discussed on Tuesday at 4:30. $8,000 per day for charter. But in this son that I cannot think of right now to Mr. President, if I may, during the case, because they knew that the Unit- offer another amendment. I do not time available, respond to the amend- ed States had no choice but to rely really anticipate doing it. So I yield ments as submitted by Senator GRASS- upon foreign vessels, they doubled the floor. I would be happy to respond LEY, many critics of the U.S.-flag mer- their cost. And in each case, whenever to questions or engage in debate. I chant marine have suggested that the we called upon foreign vessels to help should give my opponents the courtesy U.S. military rely on foreign-con- us carry cargo to this war zone, they September 20, 1996 CONGRESSIONAL RECORD — SENATE S11075 jacked up the price because they knew accept or to deny these amendments I read in debate yesterday from this we had no choice. my colleagues will vote against them. Rubin-Clinton memo. The Rubin-Clin- What I am trying to say is that not- Mr. President, I suggest the absence ton memo had been sent to every Sen- withstanding the criticism we might of a quorum. ator last year by Citizens Against Gov- hear, we get a better deal from Amer- The PRESIDING OFFICER. The ernment Waste. I had it delivered again ican vessels than from any foreign-flag clerk will call the roll. to each office yesterday. vessel. In the case of the U.S. ship The legislative clerk proceeded to In short, Secretary Rubin, in his Green Lake, for example, for $1 we had call the roll. memo to President Clinton on this more than 12 square feet of cargo Mr. GRASSLEY. Mr. President, I ask issue of subsidies for the maritime in- space. For the Panamanian ship unanimous consent that the order for dustry, President Clinton’s own Cabi- Takoradi, for each dollar we paid that the quorum call be rescinded. net people argue that maritime sub- company, we got 2.85 square feet of The PRESIDING OFFICER. Without sidies are simply aimed at paying high- cargo space. objection, it is so ordered. priced seafarers. They argued that the Second, one of the amendments Mr. GRASSLEY. Mr. President, on maritime subsidies are little more than would require that any cargo carried July 30, 1996, Senator LOTT said, and I a jobs bill, and it would be unfair to by American vessels must continue on quote, ‘‘We cannot, in fact, we must give special treatment to seafarers un- into the war zone. This would take not, rely on foreign ships and foreign less President Clinton would be willing away the military flexibility that is so crews to deliver supplies into hostile to give other workers facing job losses necessary to the military leaders for areas.’’ the same type of subsidies. one reason. Not all harbors are deep This is the impetus for one of the The amendment I have on this bill is enough. Most of the American ships are three amendments that I have that re- supported by taxpayers’ organizations the larger ones, the tankers, the huge quire American crews and American because it goes to the heart of wasteful tankers that can carry a large amount bottoms subsidized by this bill, to maritime subsidies. My amendment re- of cargo, and they require deep har- carry war materiel, carry it the entire quires Congress to define the legal bors. These are deep draft ships. These way to a war zone. And this legislation term ‘‘fair and reasonable rates.’’ are not small ships. does not require this. So, if Senator HARKIN’s amendment For example, it would be impossible I know it is the intent of the legisla- would be adopted, then that would un- for the Green Lake to go to Somalia. tion that American bottoms and Amer- dercut the pressure for Congress to de- That was one of the war zones. It would ican crews be used most of the time, or fine what is fair and reasonable, be- be impossible for the Green Lake to go maybe all the time. That may be the cause we have left that definition to into the harbor in Bosnia. Therefore, intent. But it is not required. And Sen- the maritime industry. The Maritime the Green Lake would carry the cargo ator LOTT being one of the biggest pro- Administration has been more con- to the nearest major port, in the case ponents of this legislation stated this. cerned about the maritime industry of the Bosnian war, in Italy and there Since this is his measure of the impor- and the maritime unions, protecting place the cargo on smaller American or tance of our maritime industry, I felt them, than protecting the taxpayers. foreign vessels to finish up the journey. we should bring that issue here in the So they have a very liberal ‘‘fair and And so this amendment which would way of my amendment. reasonable rate’’ definition. So, in my amendment, which Senator require military leaders to charter Now, I want to speak maybe just for HARKIN has offered to amend, we use ships that will carry a cargo from point 3 or 4 minutes in response to the amendment that has not been debated the same type of definition for tax- of departure to point of arrival without payers’ protection that are under Buy- but has been offered by the Senator any stoppage would take away the America laws, which are already on the from Hawaii for my colleague from flexibility that military leaders re- books. In short, such as with Buy Iowa, Senator HARKIN. quire. America, agencies can buy products, or These amendments just make no I know there is going to be an oppor- in maritime cases it would be services, sense, Mr. President. And finally, the tunity for us to speak on this Tuesday if U.S. companies are charging tax- under the unanimous consent, but I amendment proposed relating to cam- payers 6 percent more than foreign would like to express this thought paign contributions and educational companies. My amendment might save about this idea of my colleague from programs. The amendment says that if the taxpayers $500 million a year. any company receives subsidies, that my State. Now, for $500 million a year I use as company may not involve itself in pro- This happens to be the second time a source—I honestly can document $500 viding campaign contributions or in- that my colleague from Iowa has tried million. There is, in every budget since volving themselves in political cam- to undercut my efforts to obtain sanity Darman was Director of the Office of paigns. and control over the way we shovel Management and Budget, a figure on There are many subsidy programs in union welfare and corporate welfare what cargo preference costs are. We the United States. Farmers receive funds to the U.S. maritime industry never had it in previous budgets. At large amounts of subsidy. They join and the merchant marines. The last least we have a dollar figure on it now. the Farm Bureau. Does this mean that time was 6 years ago exactly. So, Senator HARKIN’s amendment in the Farm Bureau can no longer partici- The purpose of this amendment is to the final analysis does not save the pate in political campaigns? Does it have the U.S. Department of Transpor- taxpayers one thin dime. It merely mean that it cannot make political tation pay the cargo preference costs says this is going to be paid for out of contributions? If this amendment were rather than the Agriculture Depart- transportation rather than out of the to be applied to all subsidy recipients, ment for the food programs of the Agri- Agriculture Department. So I urge my and many subsidies are for research culture Department. I do not think we colleagues to oppose this amendment. grants—just about every university in can find any fault with the Transpor- I do not think we should fool our- the United States receives some sort of tation Department paying it instead of selves. This amendment will not help grant. Some are large; some are small. the Agriculture Department, because it farmers who happen to be taxpayers as Does this mean that the professor who is a transportation cost and it is not well. My amendment gets at saving is conducting the research program is the cost of food. But it does not accom- taxpayers the money, not just saying denied his constitutional right to make plish anything and is just a book- who is going to pay for the cost of a campaign contribution? keeping issue. cargo preference. These amendments at first glance So I said then, 6 years ago, and I say Our appropriating committees will may appear to be reasonable, rational, again today, it does not make any dif- simply take money out of funds allo- and very American, but when one ana- ference which agency pays for cargo cated under agriculture to buy food for lyzes the amendments, they begin to preference—either way taxpayers get those starving overseas, which is the bring up problems that I do not think ripped off. So this amendment by my agriculture program involved, and they the author intended. colleague from Iowa would continue to will take whatever the cargo pref- So I hope that when the time comes allow the maritime labor unions to rip erence cost is and give it to the Trans- on Tuesday to determine whether to off taxpayers. portation Department. Farmers will S11076 CONGRESSIONAL RECORD — SENATE September 20, 1996 not sell more food under this amend- cargo vessels that pay to support our taxpayers of the United States to put ment. It will not save the taxpayers system. And we hire people who pay forward this bill to provide that sys- any money. And this is the reason this taxes. tem. I say this is the kind of thing that amendment should be opposed. If you want to hire foreign ships and destroys the confidence in the Con- I yield the floor. foreign crews, you do not get any gress, to have people of this country The PRESIDING OFFICER. The Sen- taxes, you do not get compliance with told that we are wasting money when ator from Alaska. Federal standards. We have all sorts of we devise a system that brings back Mr. STEVENS. Mr. President, I wish problems, including the fact that the $1.26 for every dollar we spend in order I had the luxury of the Senator from crews abandon ship when they have to to keep this reserve military sealift ca- Iowa to make statements that he just go into war zones. That has to be fig- pacity available. made. The Senator from Hawaii and I ured in, but the cost to the taxpayers, I am sorry to say, unfortunately, have the duty to also manage the de- if we follow the approach that is out- under the agreement, we don’t have fense budget. We know what it costs to lined by the Senator from Iowa, would any time to answer the Senator on maintain ships and crew them 12 be to go back to building the ships, Tuesday. Both Senators from Iowa will months a year, to pay for the construc- keep them standing in some port, pay- have 15 minutes to explain their tion of the ships in order to have them ing people to sit on them, waiting until amendments, and we have the right to available to send food and supplies to the time we have to go to war. table them. So I hope we have the con- our service men and women when they We have worked out a better system. fidence of this Senate that the Senator are at war. We can no longer afford This system is being designed in the in- from Hawaii and I normally enjoy, and that. We have had to abandon the pro- terest of the taxpayers. The GAO esti- that is, that we will not mislead the gram started by President Eisenhower. mates without the cargo preference, Congress, we will not mislead the peo- As I said on the floor right here last the U.S. fleet would shrink dramati- ple of the United States, and we are night, the build and lease programs cally. In other words, we would have no not going to mislead the taxpayers. where we built the ships and we leased vessels available for sealift. None. We The people misleading the taxpayers them to other people during peacetime can predict how long it would be. We are these people who are coming for- and we used them during war, it cost us can actually tell you exactly when ward with these fallacious arguments a great deal more than the system does there would no longer be any ships, and and presenting figures that cannot hold now. we would be completely dependent up. These have been studied by inde- I am sad that these great organiza- upon foreign ships to maintain our pendent people, by the nationally rec- tions that support the concept of pro- military posture. Imagine that, the ognized accounting firms, by the Gov- tecting the taxpayers have been misled last superpower of the world would ernment Accounting Office that we again. But they have been misled. If we have to go begging around the world in rely on as a branch of the Government, followed the advice of the Senator from time of crisis to find some way to send and they have told us this system is Iowa, we would be spending billions supplies to our people. sound. more—billions. We did spend billions. The GAO found that we would lose 90 What the Senator from Iowa is trying We have cut it down now to where it is percent of the bulk cargo fleet, 80 per- to do is kill this bill. Any one of the going to be less—I have said $150 mil- cent of the cargo vessels, 75 percent of amendments, if they are adopted this lion less than the program costs us the intermodal vessels and 35 percent late in the Congress, sends this bill today—if we pass this bill. of the tankers. That is a vast majority back to the House, and it is dead. So I This amendment of the Senator of our fleet if we followed the advice of intend to oppose all of his amendments would require that U.S. ships carry the Senator from Iowa. and oppose them for what they are: Government cargo at rates no more I tell the Senate again, I don’t know Killer amendments. That is what they than 6 percent higher than the lowest why we have to, as Members of the are, killer amendments, and that is his rate charged by any foreign-flagged Senate, be threatened—threatened—by design—to kill. He has tried several vessel, regardless of the quality of the the taxpayers unions. That is what the times to kill the cargo preference con- vessel or whether or not that vessel Senator is doing. It is already on a cept. We back it because it is the most could even handle the cargo. These for- sheet. Every one of us is going to be efficient way to handle export of prod- eign-flagged vessels operate under flags rated now by a group that is being mis- ucts produced by farmers from the of convenience. They do not meet our led. If they want to come to me, I will farm belt of this country, great people. safety requirements, environmental show them what it will cost to build a We buy their grain and we ship it standards, and they do not pay decent fleet, I will show them what it costs to abroad on a humanitarian concept. wages. Their seamen left the ships maintain the fleet, because we know The Senator objects to the fact we when we had them under contract to go what it used to cost us. We did that in are using American ships, American to the Persian Gulf. They abandoned the period after World War II. Then we crews, American management to do their ships. They would not go into went into the Eisenhower build and that. The reason we use the American harm’s way. lease program, and we know what that fleet is that we must have it in the Cargo preference accounts for only cost. But it was the best system avail- event of war. Without our program, we 11⁄4 percent of all commercial and Gov- able then. would not have it. We would not have ernment agricultural exports. The Sen- We have a system now, we have an any, and I, in my capacity as a member ator from Iowa is representing farmers agreement from our people that they of the Commerce Committee, support very well. I understand that. We rep- will provide us, just like we provide the cargo preference concept because I resent the taxpayers. I think the fact airplanes now. Mr. President, we do not know, in my capacity as chairman of that these taxpayers’ organizations maintain a full air cargo fleet in our the Defense Appropriations Commit- have been misled by things like my military any longer. We have a CRAFT tee, if we do not, we have to put much friend from Iowa has said is what gets program, the civil reserve air fleet. We more of our money that could be used us into so much trouble with these or- use our planes that are cargo planes— to maintain our Army, our Air Force, ganizations. the best in the world—manned by our Navy, our Marine Corps, into main- The 1997 budget estimate for cargo Americans, built by Americans, owned taining a ready fleet to carry our goods preference is $70 million—$70 million. by Americans, and they are available to support our people if we ever have to The nationally recognized accounting to us. deploy them. firm of Nathan Associates estimated That is exactly what we are going to My staff points out if this bill is the U.S. Treasury receives back $1.26 do now with the maritime cargo fleet. killed, it will leave intact the more ex- for every $1 spent on cargo preference. We are going to deal with U.S. vessels. pensive system we are trying to re- The extra 26 cents comes from the fact We have this system, and it is going to place. That is the point I am trying to that the U.S. taxes would not be paid if cost the least amount in the history of make, too. The bill before us has been we do not have a U.S. fleet and U.S. the United States to provide it. The the one we have been working on, the crew. In other words, we are actually Senator from Iowa has the audacity to Senator and I, now for two decades try- saving the taxpayers’ money by using tell me that I am going against the ing to put forward a concept like this. September 20, 1996 CONGRESSIONAL RECORD — SENATE S11077 We finally got a bill out of the House. nese have more ships, the Greeks have organizations like the National Tax- I want to see it go to the President and more ships, the Italians have more payers Union would be concerned about signed before this Congress is over. ships, the British have more ships. In the waste in this bill, as they see it and I will come back at a later time and order to bring down the cost of running as I see it, the fact that we should not address the other amendments of the this Government and taking off the have corporate welfare subsidies, and Senator from Iowa. Unfortunately, Mr. burden from our taxpayers, we have that they are reflecting their member- President, I must leave the floor, as strange laws. ship at the grassroots level, that he is the Senator from Iowa did last night This might interest you, Mr. Presi- sad for that, or at least for what he several times. I must leave for an hour. dent. The mail that is now being car- considers to be a negative impact that I will be back at 1:30. ried from our shores to our NATO al- that process has on the legislative Mr. INOUYE addressed the Chair. lies, that is, in Europe, one would as- process. The PRESIDING OFFICER. The Sen- sume would be carried on American He should not be saddened in any way ator from Hawaii. vessels. Russian mail from Russia because basically what we are talking Mr. INOUYE. Mr. President, if I may comes in on Russian ships. British mail about here is a constitutional right comment upon the very eloquent state- from England would come in on British that is in the first amendment. It is in ment made by my colleague from Alas- ships. Japanese mail would come in on the first amendment and about which ka on cargo preference. Cargo pref- Japanese ships. you do not hear much. You always hear erence is not new. In fact, every nation So you would think that American about freedom of speech, freedom of re- on this globe that has a maritime fleet letters from here to Europe and from ligion, freedom of press, but you do not has cargo preference. The United Europe to America would be on Amer- read much about the right to petition States was the last nation to adopt ican ships. No, it is not so. We open it your Government for redress of griev- cargo preference as part of its eco- up to bid. The lowest bidder will carry ances. nomic policy. the cargo and the ships and the mail. All these organizations are doing, in How does cargo preference operate? The shipping company that carries our opposing this legislation, is speaking Whenever we buy oil from Saudi Ara- mail is the Polish Steamship Company. for their grassroots membership who bia, the requirement is if you are going feel that Washington is wasting money to buy Saudi oil, it will be shipped on It is owned by Poland. It is not a pri- vate steamship company. It is owned on a corporate welfare subsidy. We Saudi ships, and the only time an ought to encourage that process. We by the Government of Poland, fully American ship may carry that Saudi should not be saddened by that process. subsidized. How can you expect any oil is when there are no Saudi ships It is what has made America great for American vessel to bid against the Pol- available. We have no say as to how the 209-year history of our constitu- ish Steamship Company? At one time much they are going to charge for the tional Government. I want to encour- it was the Russian Steamship Com- shipment of that crude oil. age it. Whenever we buy automobiles from pany. If I had letters from the National Toyota, Mitsubishi, and God knows These steamship companies are ei- Taxpayers Union in opposition to this what else, they come in on Japanese ther fully subsidized or partially sub- legislation, that is not any more ille- ships, not on American vessels, because sidized by their nation. The United gitimate than the Senator from Alaska that is part of the cargo preference States has to compete in that playing or the Senator from Hawaii having let- agreement. field. So the small amount that we set ters from the maritime industry, the Our cargo preference laws are very aside for cargo preference is not only individual corporations, or from the limited. It applies only to humani- wise, it is not only prudent, it is abso- maritime unions in support of the leg- tarian goods, agricultural products. lutely necessary because without that islation. For example, when starvation was you will find that many of our ships Everybody has a right to voice their rampant in Ethiopia, the United would decide to go out of business. opinion on legislation. We ought to States, like most other nations, re- I think we should also keep in mind spend our time listening and encourag- sponded by sending food. Under our that our ships, unlike those ships of ing that process. We should not be dis- laws, it says that 50 percent of those other countries, pay good wages. I do couraging that process. The more open products must be shipped on American not suppose Americans would expect Government can be, the stronger our vessels; the other 50 percent on foreign our merchant seamen to work for mini- Government will be. And there is so vessels. We are not like other countries mum wage. I do not suppose that we much cynicism at the grassroots that that would say every pound of grain American taxpayers want our mer- we do not listen to our people that it is must be shipped on American vessels. chant seamen to have no health bene- weakening the very foundation of our We say 50 percent. There are those who fits, no pension programs. I think they system of representative government. are suggesting either to wipe this out are entitled to pension programs like Each one of us has a responsibility to or bring it down to 25 percent. other workers. They are entitled to at encourage that process of representa- What are the consequences? Imagine least a minimum wage like other work- tive government and to listen. American grain on a Russian vessel ers. It is better to listen to a Taxpayers shipped to Ethiopia—and this is not a Most of the sailors on foreign vessels Union member in my State of Iowa hypothetical, Mr. President, it is do not match our minimum wage. And than their national organization. It is done—with the red flag. And you can we expect, under this amendment, to better to listen to the individual who just hear the stevedores unloading have our ships pay a rate that would does not belong to any organization American grain, an American gift and require the companies to pay our mer- than it is to listen to organizations in saying, ‘‘Thank you, Soviet Union.’’ chant fleet seamen less than minimum town. But the right of association ‘‘Thank you, Russia.’’ That is how it wage? It is outrageous. It is demean- guarantees those same people at the appears. By cargo preference, we are ing. grassroots who feel that they do not keeping our fleet alive. Mr. President, I hope that we will have time to work the governmental Mr. President, I think we should re- join our chairman from Alaska to op- process to work through organizations. mind ourselves that at the end of pose all of these amendments. Cargo That is just as true of the members of World War II we were the superpower preference is not bad. It makes good the National Taxpayers Union as it is when it came to shipping. No other na- sense. I yield the floor. the employees of John Deere in Water- tion came close to us. The British fleet Mr. GRASSLEY addressed the Chair. loo, IA, working through their UAW was at the bottom of the Atlantic and The PRESIDING OFFICER. The Sen- people in Washington, DC; albeit, it is the Pacific Oceans. The Russian fleet ator from Iowa. better if each of us listened to the indi- was nonexistent. The German fleet was Mr. GRASSLEY. I know that my col- vidual and not have it filtered through nonexistent. The Japanese fleet was league from Alaska had to leave the the organization. nonexistent. We were the shipping na- floor for an hour, and legitimately so, The issue was brought up by the Sen- tion of the world. because he has important duties else- ator from Alaska of how this saves Today, Mr. President, we have less where. But I want to take time to re- money. If you compared the cost of ex- than 350 ships. We are No. 15. The Chi- spond to the sadness he expressed that isting programs, this bill will cost less. S11078 CONGRESSIONAL RECORD — SENATE September 20, 1996

I do not dispute that. I have never dis- signed by Bob Dole, JOHN ASHCROFT, (3) Citizens for a Sound Economy puted that. But can we spend even less DON NICKLES, NANCY KASSEBAUM, HANK (4) Heritage Foundation and get the job done? I feel we can. And BROWN, myself, JON KYL, JESSE HELMS, (5) Competitive Enterprise Institute (6) Cato Institute if we can, we should. and ROD GRAMS, the distinguished Pre- (7) Progressive Policy Institute of the Demo- It was disputed that I had the author- siding Officer right now. We did not get cratic Leadership Conference, and ity to use numbers for savings. We into the hearing room, obviously. (8) Ralph Nader’s Essential Information know what cargo preference costs. We I ask unanimous consent these let- Group know that because after my railing ters be printed in the RECORD. Unfortunately, these and other critics of about it for several years, the Office of There being no objection, the mate- maritime subsidies were not called to testify Management and Budget started ferret- rial was ordered to be printed in the at the single hearing by the Subcommittee ing out the information where it is hid- RECORD, as follows: on Surface Transportation and Merchant den in the appropriations of different Marine. Now H.R. 1350 and S. 1139, the Mari- AMERICANS FOR TAX REFORM, time Reform and Security Act of 1995, are departments, and bringing it together Washington, DC, May 10, 1996. pending on the Senate Calendar. in one figure. It is in the President’s Hon. LARY PRESSLER, The committee was denied the benefit of budget document. So that $600 million U.S. Senate, important independent analyses of maritime figure I did not make up. It is a study Washington, DC. subsidies, including the MIT report entitled DEAR SENATOR PRESSLER: The so-called figure from the President’s budget. ‘‘Competitive Manning on U.S.-flag Vessels’’ ‘‘Maritime Reform and Security Act of 1995’’ which exposed serious waste and determined Now, whether or not these good-Gov- (H.R. 1350 and S. 1139) is now pending in the ernment groups like the National Tax- maritime subsidies could be cut in half. Senate—without a single opportunity for The committee also was denied the benefit payers Union should be sending these those who oppose the continued corporate of extensive work by 16 executive branch letters, I suggest to the leadership of maritime subsidies in the bill to testify be- agencies summarized in the 1993 ‘‘Decision this bill that it would not have been fore the Subcommittee on Surface Transpor- Memorandum on Maritime Issues’’ from Rob- necessary for that point of view to be tation and Merchant Marine. Americans for ert Rubin to President Clinton. Fifteen of 16 considered this late in the legislative Tax Reform strongly opposes the continu- executive branch agencies concluded that as process. They and other organizations ation of commercial maritime subsidies in few as 20 vessels—not 50—should be sub- any form and strongly urges you to hold sidized. The memo states that the ‘‘Sec- in opposition to this legislation, a year hearings before the full Commerce Commit- ago, asked to be part of a public hear- retary of Defense, the Chairman of the Joint tee on all of the provisions of this bill. Chiefs of Staff, and the Commander of the ing where only the proponents of this Numerous independent studies have illus- Transportation Command have already con- legislation were allowed to appear— trated the needless and excessive cost of cluded that future requirements will not ex- only the proponents of the legislation. commercial maritime subsidies to the U.S. ceed 20–30 liner vessels. DOD will have no The opposition was not heard. taxpayer. For example, a 1989 Department of need for bulk vessels.’’ If the committee process had worked Transportation report done by MIT entitled It was also concluded that ‘‘subsidies are the way it should have worked—with- ‘‘Competitive Manning on U.S.-flag Vessels’’ needed primarily to offset the higher wages exposed serious waste in this program and of U.S. mariners’’ and that ‘‘subsidizing car- out having both pro and con in a hear- determined that maritime subsidies could be ing, to have a fair hearing. They tried riers simply to preserve jobs would leave the reduced by half if there was, in fact a mili- Administration hard pressed to explain why to get a second hearing since then, and tary need for these ships. Even Al Gore has it should not also subsidize every other in- for a long period of time was promised concluded that these subsidies should be dustry that suffers job losses.’’ such a hearing, but it did not come off. abolished. We therefore request that before either So these problems would not have ex- Like many proponents of increased govern- H.R. 1350 or S. 1139 be considered by the Sen- isted in getting their point of view out ment intervention, supporters of this legisla- ate, that you hold a series of full committee tion assert that it is necessary for national hearings to explore the work devoted to the if they had been heard in the first security reasons. However, S. 1139 is not place. Rubin memo and the MIT study, and to hear likely to be at all effective in accomplishing the concerns and suggestions from the grow- So that it is plain, very plain that that task. In fact, the Department of De- ing number of critics of maritime subsidies. these organizations did ask to appear. fense’s Mobility Requirements Study, Bot- Sincerely, From the director of government rela- tom UP Review Update concluded that even Bob Dole, John Ashcroft, Don Nickles, tions of Citizens for a Sound Economy, without subsidies, the US shipping fleet Nancy Landon Kassebaum, Hank I will read part of this letter: would be adequate in the event it was needed Brown, Chuck Grassley, Jon Kyl, Rod To date, the subcommittee on Surface in time of conflict. If the United States mili- Grams, Jesse Helms. Transportation of the Merchant Marine has tary can meet its requirements without held one hearing on the act, failing to invite these subsidies, why are we asking the Amer- COUNCIL FOR CITIZENS any of the many individuals and organiza- ican taxpayer to foot the bill? AGAINST GOVERNMENT WASTE, The subsidies contained in the Maritime tion opposed to the bill. We believe that con- March 7, 1996. Reform and Security Act of 1995 are particu- sideration of the act without the benefit of Hon. LARRY PRESSLER, larly egregious examples of bloated federal open debate will prevent the Senate from Chairman, Senate Commerce Committee, Wash- government spending taxpayers’ money on a making an informed decision in this matter. ington, DC. project that is wholly unnecessary. This DEAR MR. CHAIRMAN: The 600,000 members Americans for Tax Reform say: Congress has shown its willingness to elimi- of the Council for Citizens Against Govern- I strongly urge you to hold hearings on nate ridiculous pork-barrel spending. Why ment Waste (CCAGW) strongly oppose H.R. this entire bill before the full committee in are you even considering extending a pro- 1350 and S. 1139, the Maritime Reform and which those opposed to continued maritime gram that costs American taxpayers more Security Act of 1995. These bills neither re- subsidies are allowed to state their views. than $100,000 per job subsidized annually? form nor sustains security for America’s We also have Citizens Against Gov- I strongly urge you to hold hearings on hard working taxpayers. This legislation is ernment Waste. To the chairman of the this entire bill before the full committee, in another example of entrenched corporate po- which those opposed to continued maritime committee: litical pork. subsidies are allowed to state their case. Because only maritime supporters were in- Therefore, we urge that no Senate consid- Sincerely, vited to attend the single hearing held by eration of either H.R. 1350 or S. 1139 be al- SCOTT P. HOFFMAN, the Subcommittee on Surface Transpor- lowed until the first Senate commerce com- Director of Operations. tation and Merchant Marine, and critics of mittee holds open hearings allowing inde- the programs were barred from testifying, pendent experts and critics to testify. U.S. SENATE, your full committee was denied the benefit Then a letter from my colleagues: Washington, DC, March 12, 1996. of independent analyses which would expose We therefore request that before either Hon. LARRY PRESSLER, the enormous waste involved in federal mari- H.R. 1350 or S. 1139 be considered by the Sen- Chairman, Senate Commerce Committee. time programs. There are far less costly and ate that you hold a series of full committee DEAR CHAIRMAN PRESSLER: Last year, you more effective means of protecting Ameri- hearings to explore the work devoted to the joined us in a letter to Budget Chairman Do- ca’s national security interests. Rubin memo and the MIT study, and to hear menici calling for the ‘‘elimination of waste- Therefore, we urge that no Senate consid- the concerns and successes. ful maritime programs.’’ As you can see from eration of either H.R. 1350 and S. 1139 be al- the enclosed materials, public interest lowed until the full Senate Commerce Com- Suggestions from a growing number groups also oppose maritime subsidies, in- mittee holds open hearings that allow inde- of critics of maritime subsidies—a let- cluding: pendent experts and critics to testify. ter on March 12 of this year was sent to (1) Citizens Against Government Waste This legislation actually undermines our the chairman of the committee and (2) National Taxpayers Union national defense because it: September 20, 1996 CONGRESSIONAL RECORD — SENATE S11079 1. allows vessel operators to be exempt Reform and Security Act of 1995, a fair lot cheaper to pay the sailors not to work. from requisitioning; chance to voice their concerns. To date, the Eliminating these subsidies would not only 2. permits operators to withhold their U.S.- Subcommittee on Surface Transportation force the maritime industry to become com- flag vessels from war duty by subcontracting and Merchant Marine has only held one hear- petitive, but also would contribute to the far less costly foreign-flag vessels, an still ing on the Act, failing to invite any of the balanced budget effort. Mr. Quartel figures, receive U.S.-flag vessels, and still receive many individuals and organizations opposed based on dynamic scoring, that eliminating U.S.-flag premium rates; to the bill. We believe that consideration of subsidies would save $7 billion between 1996 3. provides the least militarily useful ships the Act without the benefit of an open de- and 2002, and generate new economic activity (i.e., large non-self-sustaining container); bate will prevent the Senate from making an that would raise an extra $28 billion in tax 4. allows the transfer of U.S.-flag vessels to informed decision in this important matter. revenue. Even in Washington terms, $35 bil- foreign flags without approval, and, Especially at a time when Congress is at- lion is real money.’’ 5. reduces the capacity of the U.S. mer- tempting to come to grips with excessive Mr. Chairman, the list of dissenting voices chant marine fleet by allowing operators to spending, pro-spending legislation should not to this legacy of subsidies from World War II double-dip taxpayers through multiple sub- be immune from criticism. and the Cold War goes on and on. We ask sidies (direct—lump sum; indirect-cargo pref- Citizens for a Sound Economy strongly op- that you carefully weigh the costs and the erence premium rates and subsidized service poses the Maritime Reform and Security Act benefits associated with the Maritime Re- in the domestic trade and leasing subsidized of 1995. We believe that Congress should put form and Security Act of 1995, and all other ships without restrictions to foreign citi- the era of costly Cold-War level maritime maritime subsidies. The American people de- zens). subsidies behind it. The primary beneficiary serve fair hearings on this issue where both This legislation will discourage new in- would be current and future generations of points of view are represented. vestment and innovation by erecting artifi- American taxpayers, who would not have to Sincerely, cial, anti-competitive barriers that give the pay the price of billions of dollars in new, SHANE SCHRIEFER, upper hand to operators servicing domestic unneeded subsidies. We believe that America Director of Government Relations. trades in 1995, and barring subsidies to any needs to rely on more competitive, least-cost newcomers even if they are more efficient solutions to national security issues and BALTIMORE, MD, and can provide more militarily useful ves- concerns. Among other needed reforms, this June 8, 1996. sels. entails ending spending on excessive salaries Senator CHARLES E. GRASSLEY, Your full committee should review the and benefits for U.S.-flag seafarers and other Senate Office Building, MARAD-sponsored MIT report, ‘‘Competitive unwarranted expenses associated with often Washington, DC. Manning on U.S.-flag Vessels.’’ This report unwarranted vessels. DEAR SENATOR GRASSLEY, Thank you for exposed wasteful maritime practices and We would like to emphasize that a wide your letter of May 30th asking me to check found that subsidies could be cut down to as spectrum of policy analysts and public offi- off certain items that I support on an en- little as $1.1 million per vessel. cials seriously question and oppose the con- closed form. We also request that your committee study tinuation of the maritime subsidies and You note that my signature is on a form the work of 16 executive branch agencies intervention of all sorts. For one, Vice Presi- submitted by the American Security Coun- summarized in the ‘‘Decision Memorandum dent Gore’s National Performance Review cil. I only signed that form to gain time for on Maritime Issues’’ from Robert Rubin to recommended that all maritime subsidies be mature study of a then pending bill which President Clinton. Fifteen agencies sided ended, saving Americans $23 billion over ten could have resulted in subsidies for VLCCs! with the Defense Department’s conclusion years. A study by the Massachusetts Insti- And now that I see how my name is being that as few as 20 vessels—not the 50 required tute of Technology, ‘‘Competitive Manning used I much regret it. by S. 1139—are needed for national security on U.S.-flag Vessels,’’ pointed to the exten- I was invited to help that council formu- and should be subsidized. And they concluded sive waste and abuse in the maritime pro- late positions, and I met with their rep- ‘‘DOD will have no need for bulk vessels,’’ grams and suggested ways to get more value resentative. I enclose a copy of a letter which means cargo preference subsidies for less taxpayer dollars. This study was [please forgive bottom margins] that I sent should be eliminated. commissioned by none other than the Mari- to him that indicates where I stand. My Just as telling is the fact that these agen- time Administration. The Defense Depart- qualification to comment is shown in my bi- cies concluded that ‘‘subsidies are needed ment notes that only 8 percent of the sup- ology in Who’s Who in America. I have not primarily to offset the higher wages of U.S. plies delivered to the Persian Gulf during the heard from them since. But I am not sur- mariners’’ and that ‘‘subsidizing carriers Gulf War came on U.S. commercial vessels. prised that my opinions do not suit them. simply to preserve jobs would leave the Ad- The U.S. Transportation Inspector General So I prefer NOT to use your form. My views ministration hard pressed to explain why it recently recommended that the Maritime require a more complex presentation—more should not subsidize every other industry Administration and all maritime subsidy than in the ‘‘tip of the iceberg’’ letter en- that suffers job losses.’’ programs be eliminated. closed. Your committee should also hear from the Harold E. Shear, former U.S. Navy Admiral I do believe that this country needs and Department of Transportation’s Inspector and Maritime Administrator, has concluded should pay for only that part of a U.S. mer- General, who concluded that the entire Mari- that ‘‘Nearly 50 years of subsidies have not chant marine that is configured in type and time Administration and all of its U.S.-flag prevented the demise of the U.S. merchant numbers to support our authenticated de- subsidies should be terminated, a conclusion marine . . . Subsidies do nothing more than fense requirements. I am opposed to the con- similar to that reached by Vice President Al cause inefficiency, mediocrity, lack of incen- tinuation of federal programs. mostly de- Gore’s National Performance Review Trans- tive and dependence on Uncle Sam.’’ In 1993, signed to line the pockets of unions, owners, portation Task Force. 15 out of 16 government agencies sided with and shipbuilders unwilling to give up grossly Strengthening our national defense is a now-Secretary of the Treasury Robert inefficient practices. We desperately need a goal CCAGW strongly supports, but forcing Rubin’s option to President Clinton to dras- fresh start; not a continuing jobs program. taxpayers to subsidize high-priced seafarers tically revamp the Maritime subsidies. The Sincerely, and militarily useless vessels during a time rationale for Mr. Rubin’s option, as reported GEORGE P. STEELE. we are eliminating the jobs of our men and to the President, was as follows: Vice Admiral (Retired). women serving in the Navy makes no sense ‘‘Subsidies for the U.S. flag fleet have al- at all. There is not one of these sealift billets ways been justified by their role in providing Mr. GRASSLEY. Also, in rebuttal to that our Navy personnel, with little or no a sealift capacity for use in military emer- the Senator from Alaska on another training, could handle. gencies. With the end of the Cold War, DOD’s point he was making about foreign S. 1139 and H.R. 1350 is corporate welfare sealift requirements have declined. Although flags not doing the jobs, foreign crews that must be stopped. We stand ready to as- DOD’s bottom-up review is not complete, the not doing the job, as a studied response sist you in these hearings and in making the Secretary of Defense, the Chairman of the to that, I want to have printed in the necessary changes to these bills. Joint Chiefs of Staff, and the Commander of RECORD a chart that tells a number of Sincerely, the Transportation Command have already trips to the Persian Gulf. This shows THOMAS A. SCHATZ, concluded that future requirements will not President. exceed 20–30 liner vessels. DOD will have no that, in fact, only 17 U.S.-flag commer- need for bulk vessels. All agencies therefore cial vessels actually delivered goods in CITIZENS FOR A SOUND ECONOMY, oppose renewal of direct subsidies for the war zone. This chart was provided Washington, DC, March 15, 1996. bulkers. This option would meet DOD’s max- by the military sealift command. I did Hon. LARRY PRESSLER, imum military requirements. [S. 1139 re- not put these figures together; I got Chairman, Committee on Commerce, Science, quires 50 vessels].’’ them from the military sealift com- and Transportation, U.S. Senate, Washing- The Wall Street Journal’s Review and Out- mand. ton, DC. look section noted on June 6, 1995: DEAR MR. CHAIRMAN: On behalf of Citizens ‘‘Rob Quartel, a former FMC [Federal Mar- Only five APL vessels—these are U.S. for a Sound Economy’s 250,000 members itime Commission] member, figures that all flags—went into the war zone; only across America, I urge you to give the oppo- maritime subsidies together cost at least three sea-land U.S.-flag vessels went nents of H.R. 1350 and S. 1139, the Maritime $375,000 per seagoing worker. It would be a into the war zone; only four watermen, S11080 CONGRESSIONAL RECORD — SENATE September 20, 1996 and their U.S.-flag vessels went into Mr. GRASSLEY. This chart makes it liver our goods into the war zone. This the war zone; only five Lykes U.S.-flag crystal clear the overwhelming number is what Senator LOTT—and I quoted vessels went into the war zone; total— of these ships were foreign flag and for- him twice—said 2 months ago that we total, only 17 U.S.-flag vessels deliv- eign crew. Out of the defense control need to assure. ered goods into the war zone. That is 17 we only had one instance where the compared to 500 trips into the war material did not get there—only one I think it is appropriate at this point zone, so that means overwhelmingly—I instance. to repeat a section of a letter that I got hope you understand, overwhelm- I think the statement by the Senator from Vice Adm. George P. Steele, U.S. ingly—17 trips versus 500 trips, U.S. from Alaska was questioning the reli- Navy, retired. He was one of those who The remaining were foreign flag, for- ability of foreign-owned flag ships and had his name on the original National eign crew. foreign crews, but they delivered. Only Security Council memo in support of I am sure the Senator from Alaska one did not deliver. U.S.-flag compo- this legislation. Then when I sent him did not mean his remarks to be in sup- nents, total, 17. The rest out of the 500 port of my amendment to make sure a lot of material to study, he sent me that made it into the zone were for- back a very nice letter. American-flag ships deliver all the eign. way. But his statement that he was I have heard my colleague state U.S. The last paragraph reads: making is a statement in support of flags charged less than foreign flags I do believe that this country needs and that amendment. I am sure it was not during the Persian Gulf war. intended to be that way, but he gives a should pay for only that part of a U.S. mer- I want to provide my colleagues with chant marine that is configured in type and rational argument for that amend- what the Department of the Navy re- ment, a strong statement for that numbers to support our authenticated de- ported to me on the cost of charter ves- fense requirements. I am opposed to the con- amendment. sels: I ask unanimous consent to have this tinuation of Federal programs mostly de- The cost of foreign voyage chartered ships printed in the RECORD. signed to line the pockets of unions, owners, is approximately 60 percent of U.S.-flag voy- and shipbuilders unwilling to give up grossly There being no objection, the mate- age charters. rial was ordered to be printed in the inefficient practices. We desperately need a The Navy said: RECORD, as follows: fresh start; not a continuing jobs program. Only 41 of 283 vessels were U.S. flag. Mr. President, I ask unanimous con- U.S. CARRIER OWNED/CONTROLLED VESSELS USED FOR My amendment does not prohibit SMESA transfers of smaller feeder vessels to sent to submit for the RECORD two deliver war materiel in the war zone. pages detailing the cost of cargo pref- Number erence as determined by the Office of of vessels My amendment simply says that these Total ves- U.S.-flag actually U.S.-flag smaller feeders must be U.S. flag and Management and Budget. sels used compo- going compo- nent into the nent U.S. crewed, not foreign flag. This is There being no objection, the mate- gulf what we are led to believe this bill is rial was ordered to be printed in the all about. We are led to believe that if APL ...... 30 23 12 5 RECORD, as follows: Farrell ...... 4 4 0 0 this bill passes, only U.S. flags and Lykes ...... 12 12 5 5 Sea-Land ...... 36 19 13 3 crews will deliver our goods into the Waterman ...... 4 4 4 4 war zone. Without my amendment, this Total ...... 86 62 34 17 will not be guaranteed. My amendment says U.S. flag and U.S. crews will de- CARGO PREFERENCE PROGRAM COSTS [Millions of dollars]

1994 1995 1996 Obligations Outlays Obligations Outlays Obligations Outlays

Agency: Department of Agriculture ...... 113 132 74 74 79 79 Department of Transportation—Maritime Administration ...... 50 50 61 61 43 43 Department of Defense ...... 450 450 436 436 462 462 Agency for International Development ...... 11 11 4 4 4 4 Export—Import Bank of the U.S...... 4 3 5 3 8 4 Department of State 1 ...... Total ...... 628 646 580 578 596 592 1 Estimate for costs related to transportation of preference cargo is less than $2 million.

CARGO PREFERENCE PROGRAM COSTS [Millions of dollars]

1995 1996 1997 Obligations Outlays Obligations Outlays Obligations Outlays

Agency: Department of Agriculture ...... 62 49 50 78 41 45 Department of Transportation—Maritime Administration ...... 63 63 43 43 25 25 Department of Defense 1 ...... 438 438 414 414 424 424 Agency for International Development ...... 4 4 5 5 5 5 Export—Import Bank of the U.S...... 40 40 61 61 71 71 Department of State ...... 1 1 1 1 1 1 Total ...... 608 595 574 602 567 571 1 DOD estimate are preliminary.

Mr. GRASSLEY. Mr. President, this Mr. President, the Federal Govern- He knows, and we all know, that information is included in the Presi- ment relies only upon numbers from these non-OMB or CBO numbers cannot dent’s budget each year, thanks to my OMB or CBO. We cannot use numbers be used here. request a few years ago. Cargo pref- from our budgeting process that come I yield the floor. erences does cost taxpayers $600 mil- from any other source. Mr. INOUYE. Mr. President, I suggest lion per year. One is from the fiscal The Senator from Alaska quoted the absence of a quorum. year 1997 budget and the other is from cargo preference cost estimates that The PRESIDING OFFICER. The the fiscal year 1996 budget. differ from the OMB numbers I quoted. clerk will call the roll. September 20, 1996 CONGRESSIONAL RECORD — SENATE S11081 The bill clerk proceeded to call the which totaled about 500 a year. We find head of that baby had somehow slipped roll. out from the health reporter of the out; had somehow when the shoulders Mr. SANTORUM. Mr. President, I Bergen County Record in her inter- were delivered had been delivered also? ask unanimous consent that the order views with abortionists in New Jersey Would it be the woman’s choice and the for the quorum call be rescinded. that they perform roughly 3,000 second- doctor’s choice when the baby is com- The PRESIDING OFFICER. Without and third-trimester abortions, and ap- pletely removed to kill that baby? Is objection, it is so ordered. proximately half of those 3,000 abor- that then murder? Or, if you hold the Mr. SANTORUM. Mr. President, I tions are done in what is called ‘‘intact baby’s head inside the birth canal, it is ask unanimous consent to speak as in D&E’’—which is a partial-birth abor- not murder? Explain for me the dif- morning business. tion. ference. Answer the question.’’ The PRESIDING OFFICER. Without So we know that just in the State of I know that question has been asked objection, it is so ordered. New Jersey there are 1,500 such abor- a lot in the last few months. And, to f tions—just done in the State of New my knowledge, no one has answered PARTIAL-BIRTH ABORTIONS—VETO Jersey. And we are talking about abor- the question. But I think you have to OVERRIDE tions that are performed at at least 20 answer that question, don’t you? Don’t you have to answer a question that, if Mr. SANTORUM. Mr. President, I weeks. My wife is a neonatal intensive care just an inch more, maybe 2 inches want to take this opportunity to, No. 1, nurse. She worked as one for 9 years. more, it is murder? Most Americans congratulate the House of Representa- We have three children. We are very would consider it as murder without tives for their strong, bipartisan sup- blessed to have one more on the way. question. But as long as that doctor is port for the override of the President’s She knows a lot about premature ba- holding the baby in, it is not murder. veto on the issue of partial-birth abor- bies. She has cared for a lot. She has We are blurring the line in this country tions. The House did speak strongly yester- cared for 22-week-old babies. She has a lot. It is more than blurring. It is day and did speak in a bipartisan fash- cared for 22-week-old babies that are more of a sign of a culture that has ion. I had the opportunity to look at alive and well today—many of them. lost its way, that does not understand some of the debate and hear some of She has cared for a lot of 24-weekers what its underpinnings are any more; the debate. I was impressed with the that are alive and well today. And she what its vision is; what its purpose is; strong bipartisanship. I was impressed certainly has cared for a lot of babies what it stands for; who it cares about. This issue is not about abortion. This with how articulate Members were on that are 24 weeks, 29 weeks, and 34 is about a procedure that is so horren- debating an issue which is a very emo- weeks who are alive and well, and very dous and that is so disgusting that ev- tional issue, a very difficult issue to normal and very healthy. eryone in America should say, ‘‘No. talk about. This is not a procedure The question is not whether we That is not who we are.’’ For we in this that many people feel very comfortable should have late- and second-term, or country are not what we say we are. It discussing. I think the Members who third-term abortions. I believe that is a is not what we would like to tell the got up and spoke on behalf of the over- legitimate question to ask in this American public we are. We are in this ride spoke factually, compassionately, country. But that is not the question country what we do. And when we do restrained, and, as a result, I think that is before us with this override. something like this to children who that kind of debate is what I hope to This override deals with a medical pro- doctors who perform this procedure say emulate here. I hope we see it emulated cedure which I think is one of the most are healthy, elective abortions—these here on the floor of the U.S. Senate gruesome medical procedures that if it are elective abortions; there is no med- next week. We will have a vote here was being done in China today human ical necessity; there is no fetal abnor- next week in the U.S. Senate on wheth- rights activists would be calling on us mality but simply healthy children— er to override the President’s veto. We to sanction China. If it was done on a when the vast majority of these abor- are only halfway home to accomplish dog, animal rights activists would be tions are done at that time and in this that. storming the Capitol saying it is inhu- Much has been written today about mane. But if it is done on a 30-week-old way we have to say no. I am hopeful, I am prayerful that the the likelihood of whether the Senate baby that is fully viable outside the Members of the U.S. Senate, the great- will do so and reporting that it appears womb it is a choice; it is not a baby; it est deliberative body in the history of that the possibility of overriding the is a choice. It is up to the doctor and the world, will live up to that, live up President’s veto of this is dim here in the mother to determine what happens to that title, and will truly delib- the Senate. I remind everyone that in to that baby. It is a choice; it is not a erate—not react to the special inter- the House, when the original vote was baby. ests, or to the emotion of the moment, taken, there were not sufficient votes I do not think that is what most of or to some political posture that you to override the President’s veto. But as America is. When we talk about this feel locked into because, you know, ‘‘I a result of educational efforts that had procedure being done on late second- am for choice’’—but deliberately, taken place by physicians and people and third-trimester babies, a procedure thoughtfully, prayerfully about who we who are concerned about this issue that delivers the entire baby feet first—delivers the baby from the shoul- are, about what we stand for as a coun- with Members of the House, a number try. I think if we do that—and if all of of Members were persuaded to go along ders down completely outside the mother; the arms and legs of the baby you who care about who we are, about with the override. what is to become of us, will write and I hope that occurs here. I hope Mem- are moving outside of the mother; the call and pray for Members of the Sen- bers who voted against the bill to out- head is held inside the birth canal—a ate over this next week—then truly re- law this procedure, who voted to allow pair of scissors is taken and jammed markable things can still happen in this procedure to continue, do take the into the base of the skull, a suction this country and in this body, and we catheter is placed in the skull and the opportunity to gather more informa- will surprise a lot of people next week. tion, because since the original passage brains are sucked out. As a result of I yield the floor. of this bill, additional information has that the head collapses, and then they Mr. INOUYE. Mr. President, I suggest come out, even as late as this week. deliver the rest of the baby. the absence of a quorum. We have a story in the Bergen Coun- I was on the Fox Morning News yes- The PRESIDING OFFICER. The ty Record. A health reporter for the terday morning with a woman who clerk will call the roll. Bergen County Record did a report on works for an abortion rights advocacy The bill clerk proceeded to call the partial-birth abortions in New Jersey, group. And I asked her a question, roll. where, according to all of the abortion which I will ask every Member of the Mr. STEVENS. Mr. President, I ask rights advocates, there aren’t partial- Senate who speaks on this issue. I hope unanimous consent that the order for birth abortions being done in New Jer- they have an answer for me, because the quorum call be rescinded. sey. she didn’t. My question was very sim- The PRESIDING OFFICER (Mr. In fact, they were only done, accord- ple. It was a very logical question. GREGG). Without objection, it is so or- ing to them, by a couple of doctors ‘‘What would your position be if the dered. S11082 CONGRESSIONAL RECORD — SENATE September 20, 1996 Mr. STEVENS. Mr. President, I want ond degree amendment to that amend- We have already made substantial progress to make a few remarks concerning the ment that has been proposed by the on appropriations bills for the 1997 fiscal Senator from Iowa’s comments and his other Senator from Iowa. The second year, with action completed or virtually three amendment. First, I oppose his degree amendment is just as objection- completed on nine separate bills. We are committed to reaching an agreement with VISA program amendment. The able as the underlying one. the administration on the remaining bills amendment would require Maritime Mr. INOUYE. There is no further and completing congressional action by Sep- Security Fleet Program [MSFP] con- business? tember 27th. tractors to participate in Voluntary Mr. STEVENS. Have we had an ad- It is clear that Senate Democrats are using Intermodal Sealift Agreements [VISA]. journment order yet? delaying tactics and political stunts de- This change is unnecessary. The bill al- The PRESIDING OFFICER. The signed more for the upcoming election than ready requires MSFP participants to Chair has not been informed of that. for the completion of the people’s business. enter into Emergency Preparedness Mr. STEVENS. I suggest the absence We have approached the consideration of of a quorum. I will take care of that. these bills in good faith, but we have been Agreements [EPA]. EPA is the same as met at every turn by gridlock, apparently the VISA program, with several im- The PRESIDING OFFICER. The clerk will call the roll. coordinated by the White House. We refuse provements suggested and supported by to be a part of this game. We believe Con- the Defense Department. The Senator’s The assistant legislative clerk pro- gress should complete its business and ad- amendment would limit the Depart- ceeded to call the roll. journ. Mr. COVERDELL. Mr. President, I ment of Defense’s ability to access all Given the Democrats’ strategy to tie up ask unanimous consent that the order of a contractor’s assets. This would the Senate floor, House and Senate leaders for the quorum call be rescinded. have decided that the Defense appropriations handcuff DOD’s ability to tailor com- The PRESIDING OFFICER (Mr. GOR- conference report will be the vehicle for final mercial sealift assets to meet DOD’s TON). Without objection, it is so or- consideration of all uncompleted appropria- sealift needs. The DOD helped write dered. tion issues. The remaining issues will be re- this bill. The bill provides the flexibil- solved through bipartisan negotiations be- f ity DOD wants. Further, it would im- tween congressional leaders and the White pose additional restrictions that are MORNING BUSINESS House. not found in the bill or even in the ex- In addition to reaching agreement with the Mr. COVERDELL. Mr. President, I administration on shared priorities like edu- isting VISA program that is voluntary now ask on behalf of the leader there cation and antiterrorism, we are determined today. This amendment simply does be a period for the transaction of morn- to ensure that we quickly provide critical not make sense—it would impose addi- ing business with statements limited funding for our troops, for coping with re- tional costs on moving government to 5 minutes each with the exception of cent disasters, and for those who are fighting goods. It would cost taxpayers more, the following: Senator DASCHLE or his the critical war on drugs. not less. I hope my colleagues will join designee, 45 minutes; Senator While we are committed to reaching an agreement with the administration, we are me in opposing this amendment. COVERDELL or his designee, 45 minutes; Second, I oppose his lobbying and concerned that we have not yet received and Senator MURKOWSKI, 20 minutes. complete information on their requests for campaign contribution amendment. The PRESIDING OFFICER. Without additional spending. We look forward to ac- The amendment would prohibit the use objection, it is so ordered. tive negotiations over the next days leading of funds provided to Maritime Security f to final legislation that will complete the Fleet Program [MSFP] contractors work of the Congress and stay within the from being used to fund lobbying or A SAFETY NET limits of this year’s budget. public education efforts or campaign Mr. COVERDELL. Mr. President, we Again, it is our goal to put a safety contributions. This amendment is un- understand on our side that we are net under our troops, our disaster vic- necessary and unfairly singles out one drawing near the most intense period tims, our children, our seniors, and all industry with which the Government of the 1996 elections, but we feel very the families that represents across our enters contracts. strongly that we should set the politics land. Current Government contracting and aside for the election process, and here Mr. President, on the other side, Federal election campaign laws pro- on the floor of the Senate and in the White House Chief of Staff Leon Pa- hibit the use of Government funds for Halls of Congress create a safety net netta has admitted that some Demo- these purposes. The Byrd amendment, from politics for our soldiers in Iraq crats would like to force Republicans 31 U.S.C. 1352, generally prohibits re- and in Bosnia or wherever they may be, to stay in Washington longer. That cipients of Federal contracts, grants, for our disaster victims that have just sounds like it is designed strictly for loans, and cooperative agreements suffered the ravages of the hurricane political purposes. Now the other side from using appropriated funds for lob- coming out of the Caribbean in the At- uses a slogan, ‘‘Putting Families bying the executive or legislative lantic and tearing its way through First,’’ but if the White House allows branches of the Federal Government in North Carolina and other regions of these Democrats to force extended leg- connection with a specific contract, our country, and, obviously, for our islative days here and confusion and grant, loan, or cooperative agreement. children and our seniors. chaos, moving you to a point you There is absolutely no legal basis for In other words, Mr. President, this is would have Government gridlock, they restricting the lawful activities of the a time to put the people first, the peo- are engaged in politics at the ultimate. employees of the recipients, as sug- ple’s business first, to not raise anxiety Mr. President, I am reminded that gested by the Senator from Iowa. A among the Nation but go ahead and get last year was a very difficult period logical extension of this suggestion our business done, get the politics out here between the Congress and the would be to restrict the lawful activi- of these Halls, out of the city, and let President. The President likes to ties of the contractor’s fuel supplier or those questions be settled by the Amer- blame the fact that Government came ice cream vendor. Any attempt to ican people in the actual election proc- to a close on the Republican Congress. change current lobbying and campaign ess. Once again, we should create a He tends to forget, Mr. President, that contribution restrictions should be safety net from the political era for our he vetoed appropriations bill after ap- broader in scope so as to treat all such soldiers in Iraq, our disaster victims in propriations bill. At least, Mr. Presi- recipients of Federal funds in a similar the United States, our children, and dent, at that time, we were fighting and fair manner. I intend to move to our seniors. over an absolute core issue in America, table this amendment. Mr. President, in that regard, I com- whether or not to balance the budget, Finally, Mr. President, as I said ear- mend the leaders on our side, the something that virtually 80 percent of lier, I am opposed to the Senator from Speaker of the House, Speaker GING- the American people are wanting and Iowa’s amendment on rates. All of RICH, and the Senate majority leader, demanding—very substantive. these amendments are designed to kill TRENT LOTT of Mississippi. Yesterday, Of late, Mr. President, we have the bill. They are killer amendments. I they came before the American people, heard—and I will read from an editorial intend to move to table the Senator’s having met with the Republican leader- in the Washington Times—that shut- amendment on rates. The managers of ship of the Appropriations Committee, down may have had more to do with the bill will also move to table the sec- and released the following statement: politics than substance, too. Everybody September 20, 1996 CONGRESSIONAL RECORD — SENATE S11083 is aware of the trials and tribulations ical enough about the character of the This Congress has achieved a great of Dick Morris, former confidant of the Congress without its Members handing deal. We should be proud. We’ve passed President of the United States, but this them more ammunition. We need to many reforms which will not only save woman that apparently shared a rela- raise the level of discourse here. money for the taxpayers, but that also tionship with him, Sherry Rowlands, Second, we should keep in mind that will make Government more efficient said, ‘‘He asked if I would like some co- we are not talking about trivial mat- and more positive in the lives of Amer- gnac, and we talked about how it tast- ters. We are here to conduct the peo- icans. ed and then we talked about the Gov- ple’s business. To hold up the work of We have passed the line-item veto. ernment shutdown, and that he said he the Senate for partisan advantage is We have passed the Congressional Ac- planned this for 5 months ahead of outrageous. And I will tell you some- countability Act. We have ended un- time to show the President as a leader thing else, the folks back home will see funded mandates. And these are just a with no weakness.’’ through it. The people who elected us few of the achievements we have to So now we have suggestions that that know pious posturing when they see it. show for our efforts when we agree to tumultuous period in the Congress may If there is a stall to keep us in ses- get the job done. have, indeed, been nothing more than a sion, the people are going to figure out Let us end this session of Congress on political plan to increase one’s fortunes who’s doing it, and pretty fast. a high note by doing what we were in the political polls. Well, that may or It is one thing to work through hon- elected to do. Let us work out our dif- may not be the case. We will be, some- est differences of opinion. It is quite ferences and pass legislation along to time, adjudicating that. But we cer- another to offer trifling, divisive the President that will keep this coun- tainly know, Mr. President, that at amendments and stalling tactics at the try open for business. this point the interests of the Amer- end of an election-year session to wring I hope that as we move through these ican people are that we conclude this out every last political advantage. legislative decisions, that we keep in I call on my colleagues on the other fundamental decision, that we don’t mind that we cannot jeopardize the im- side of the aisle to put this sort of ma- create new anxiety in the country, that portant elements of our Government neuvering aside, so that we can finish we come to terms and settle our dif- that enable this Nation to be strong, the business that the people elected us ferences, that we protect our troops, safe, and free. to conduct. We want to preserve the safety of our that we protect our disaster victims, To prevent playing politics with the our children, our seniors, and all the lives of Americans, and to prevent even troops. We want to preserve the ability families associated with that. Let the the charge that anyone might be play- of the Nation to conduct its business, political stuff get settled out across ing politics, we must make certain and to maintain the services that our the land in the elections. Don’t put the that the President has legislation on children, our families, and our seniors people last. Put them first. Let’s get his desk that finishes out the business have come to depend on. Let us not this business done and do it in such a we need to close in this term. play politics with these matters. way that the American people can be There are several basic issues we Traditionally, the Members of this comforted, and that all these systems must address before we adjourn. I am body have come together for the best upon which they depend will continue certain that when we keep in mind how interests of the Nation. This Congress without interruption. important it is to conduct the people’s has been up to that task, and I am cer- Mr. President, we have been joined business with the dignity it commands, tain that it still is. My colleagues on by my good colleague, the distin- that we will find it in ourselves to both sides of the aisle are strong guished Senator from Tennessee. I work our way through these pending enough in their resolve, and they care yield up to 5 or 10 minutes, as he may matters to a swift and proper outcome. enough about the way we conduct our need, to comment on this issue. Right now, we have troops in Bosnia lives in America, that we can all come The PRESIDING OFFICER. The Sen- and the Middle East. These men and together to find agreement on the Na- ator from Tennessee is recognized. women are out there on our behalf, and tion’s business. LEGISLATIVE PRIORITIES they deserve our unyielding support. Let us concentrate on where we Mr. THOMPSON. I thank my good Let us make sure they have whatever agree, not where we differ. friend from Georgia, who expresses they need, and let’s do that imme- Let us focus on the issues that bring some very valid concerns, and I share diately. us together, not those that take us those concerns. At home, even as we vigorously de- apart. Mr. President, as we approach the bate the Federal role in domestic af- Let us find a way to work together, end of this session of Congress, I think fairs, we need to uphold the commit- and get this job done. it is imperative that we get our prior- ment we now have to maintain those I trust that we can find a common ities in order. services we have promised—and to do path as we have in the past, and in co- The elections are only 6 weeks away. so at the levels to which we are com- operation with the White House, to As we all know, this is a highly mitted. This is of vital importance, reach a consensus without delay. charged time. There is much at stake. most especially to our veterans, stu- But make no mistake, the majority And right now, there are some vague dents, senior citizens, and their fami- has done its part. If we are detained in rumblings out there that my col- lies. Washington to keep Congress in ses- leagues on the other side of the aisle As Senators, we are obliged to set the sion, it will not be over differences in may wish to use this tension to par- highest moral example, and in that, we ideas or for honest disagreements. We tisan advantage. must keep our word to the people who have met our colleagues more than Mr. President, I submit that the lead- elected us. halfway. It’s time to wrap things up, ership has gone the extra mile toward While we may disagree on the very and we ought to be doing that right accommodating the concerns of the best way to implement solutions to the now. party in the minority. This consider- problems we face, I trust that we do The people’s business should be above ation of interests is as it should be. not disagree that some action is vital partisan posturing, and I sincerely But I also want to make it clear that to keeping our country strong, and to hope that we can maintain a level of ef- if this session stretches out, it will enabling the Nation to conduct busi- fort and dignity—commensurate with largely be for political reasons—and ness. We have a basic obligation to the the history of the Senate—so that we caused by the minority in the Senate. people who elected us, to maintain the can complete our work on a high note It appears entirely possible that services of the Federal Government at as we finish out the 104th Congress. some of my colleagues are prepared to a high level of efficiency and respon- I yield the floor. stall the final legislation we are now siveness. Mr. COVERDELL. Mr. President, I considering in order to play raw poli- We can do this if we put our minds to appreciate very much the Senator from tics. it. All that is required is that we decide Tennessee making himself available for First off, I believe that the Members to finish the people’s business, and a very cogent statement on this sub- of this body should be above that sort work toward agreement on the out- ject. I know he is trying to get home. of thing. The American people are cyn- standing issues we face. I appreciate his taking time to visit S11084 CONGRESSIONAL RECORD — SENATE September 20, 1996 with us about this very important mat- lies First agenda about children as if tax increase. We have had not expanded ter of getting the people’s business they were the only legislators that the Government. As a matter of fact, done, getting a safety net here so we were concerned about children. I would we have saved the American taxpayers can lower the anxiousness of what like to remind them that in the legisla- in this Congress $53 billion in the last gridlock will produce in our country at tion that we are calling upon to get 2 years, marking the first time in 25 this time. settled we have 20,000 families in crisis years that Congress has reversed the As I said a little earlier, we are now who would not know where to turn for trend to increase discretionary spend- speculating about whether the last help for temporary child care, for crisis ing; in other words, the first time we gridlock that occurred in the country nurses that serve thousands of families have responded to the American peo- was an actual political plan. I am made with children who have disabilities, or ple’s request that we get spending uncomfortable when the White House serious illnesses. And the families that under control. Chief of Staff admits that some Demo- are under stress—including families af- We adopted a tax—an adoption tax crats would like to force Republicans fected by HIV, homelessness, violence, credit. We secured tax relief for small to stay in Washington longer. This ar- and family crisis in drugs and alcohol— business. We passed the line-item veto ticle, which appears in the National over 20,000 families were served in the after a 200-year debate. We made Con- Journal Congressional Daily, says: last 2 years alone. For these families gress—you and I—live under the same Some Democrats, Thursday, warned that are we going to put them first, as they laws as the rest of America. We passed finishing the funding bills may not be as are asking, or last, to fulfill a political legislation that would stop unfunded easy as Republican members are saying. Sen- objective? Federal mandates. We passed, after ate minority leader Daschle warned there Will you shut down 2,000 school dis- years of debate, welfare reform. We may be pitfalls in trying to pass the bill. tricts who benefit from impact aid, or passed tax deductions for long-term Well, what we are hearing is that you put in question the financing of all of care expenses. We passed targeted are laying a political strategy because those systems? Impact aid provides fi- health care reform, lobbying reform, it is thought to be politically useful to nancial assistance to school districts food safety, safe drinking water and have the Congress appear to be tied up for the cost of educating children when Everglades restoration. in knots. But I would like to step back enrollments and the availability of rev- And the list really is much longer. from that and just remind my col- enues from local sources have been ad- More importantly, we secured at leagues on the other side of the aisle versely affected by the presence of Fed- least an interim transition in our that, currently, because of decisions eral activity. That means military im- President, Mr. President, because in that the President of the United States pact by and large across our country. his State of the Union he said that the has made, there are 15,000 American Mr. President, the list goes on. You era of big Government is over. I would soldiers, men and women, in Bosnia. could cite the issues and problems that call that a rather substantive success. There are 1,500 of them in Croatia. will be compounded ad infinitum as The agenda in this city has been There are 29,500 American armed you go through this huge appropria- changed. The era of big Government is services men and women in the gulf. tions process that we are saying we over. Welfare reform is in place. Health There are 200,000 U.S. troops on duty should just announce to the entire care reform is in place. We are not rais- abroad. There are 54,000 involved in 13 country is going to be settled; lower ing taxes. We are saving taxpayers bil- operations around the globe while the stress; our troops don’t have to lions upon billions of dollars. 146,000 are stationed at permanent worry; the systems are going to stay Mr. President, I think this is exactly bases abroad. We have literally—quick intact and we are going to take politics the kind of change that America has math—over 50,000 in harm’s way today. out of the Halls of Congress, and we are been asking for. I am going to conclude, Mr. Presi- And the prospect of this kind of postur- going to put them in the election dent, by simply saying that I think it ing is completely out of place. It leaves where they properly belong. everyone of the families here at home Mr. President, I have been quoting is incumbent upon all of us—both sides in support of these troops wondering, this National Journal rather exten- of the aisle, given the nature of this po- and it increases their worry. sively. It is interesting reading. I no- litical season, and the intensity of it, I remember in 1990 my good friend tice that my good friend, the Senator to come to terms—to get a safety net under our troops, our families that are and colleague, former President Bush, from Connecticut, Senator DODD, who confronted with a Congress that was is chairman of the Democratic Na- victims of disaster, our children, and exacting and demanding tax increases, tional Committee, suggested that our our seniors. Take the elections and our and priorities that were not his but he party wants to go home because they differences out of these halls and into had 1.5 million of America’s men and realize—we realize—that this Congress, the elections themselves. With that, I yield back any time re- women in the gulf, and simply would the 104th Congress, is a ‘‘disaster.’’ I not accept allowing our Government to maining under my designation. just could not leave that unchallenged. Mr. President, I suggest the absence come to a gridlock. He would not ac- I remind my good friend from Con- cept it. It may have been the decision of a quorum. necticut that in the last Congress, the The PRESIDING OFFICER. The that ultimately lead to his failed elec- 103d Congress, it was dominated by two clerk will call the roll. tion. But he was not going to leave massive events: The legislative clerk proceeded to those American men and women over- First, the passage by one vote in the call the roll. seas at risk. He was not going to do it. House and the Senate, at their encour- Mr. MURKOWSKI. Mr. President, I So he accepted the Congress—that was agement and by the President’s de- ask unanimous consent that the order controlled by the other side of the mand, of the largest tax increase in for the quorum call be rescinded. aisle—he accepted it, and he paid an American history; The PRESIDING OFFICER. Without enormous price for it because people Second, by the suggestion that we objection, it is so ordered. thought that he had reneged on a should grow Government to the largest f pledge. But he first and foremost stood level it had ever been, and that we behind those men and women in uni- should put in place for America a Gov- THE CLINTON RECORD form in harm’s way. We do not have as ernment-run health system, which Mr. MURKOWSKI. Mr. President, I many, fortunately, in harm’s way would have meant for the first time would like to share a few moments today. But we have 50,000. I think it is that over 50 percent of the U.S. econ- with my colleagues on actions taken just as incumbent upon this Congress omy would be run by the Government by the Clinton administration this and this President to get that safety and not by our private sector and citi- week. We have had discussions con- net under these men and women, and zens. cerning the appropriateness of the remove the anxiety and get the politics Those are the two most singular President withdrawing about 1.8 mil- out of here. Get it done. Let them feel marking events of the last Congress. lion acres in Utah under the authority secure and move on. Now we come to this Congress that of the Antiquities Act of 1906. I could read a long litany as we move the Senator from Connecticut charac- I ask the Chair and my colleagues, is from troops. We often hear the Fami- terizes as a ‘‘disaster.’’ We have had no this really the creation of a national September 20, 1996 CONGRESSIONAL RECORD — SENATE S11085 monument, or is it simply a reelection areas of high resource potential, but, national parks, had their families’ in- ploy? The administration justifies the unfortunately, the technology and the comes drop from $23,000 in 1990 to action based on some historical with- commitment were not quite there at $18,000 in 1995. That does not sound like drawals of Federal land, referring back that time. So we are in constant con- a lot of new jobs to me. to Teddy Roosevelt’s time. I would ask flict with Federal refuge areas and the These questions bring a bigger ques- for a quick reflection on the oversight potential development and access tion to mind: Why was our President in of the various land management agen- through these areas. So we do have a such a hurry? We went through this cies and laws as they have been devel- long memory with regard to the appli- process. We were going to take it up oped over the years—the Bureau of cation of the Antiquities Act and other again in the 105th Congress. He was Land Management, the National Park laws. pressed by the Utah delegation not to Service, the management of our refuge But, in this case, the President, in make the designation until such ques- systems—and suggest that there is, in- this day—not in 1970 or 1975 or 1978, but tions were answered. The administra- deed, enough oversight in the process in 1996—did not run the idea by the tion and the President offered vague to ensure extremes are not taken on State of Utah, its elected officials, its promises saying details would be the utilization of public land. legislature, its Governor. He did it over worked out later. Even Utah’s Demo- I think a number of people are ask- the objection of the Utah delegation. cratic Congressmen begged him not to ing, in the wake of President Clinton’s They could have helped prevent some ignore the details. I have even heard surprise announcement Wednesday of pitfalls that are going to occur. that Dick Morris made the rec- the 1.8-million-acre national monu- Instead, they read about it in the ommendation. Maybe he is still calling ment withdrawal in southern Utah, newspapers. You can also assume the the shots for the President and the ad- just what the President and the admin- administration simply has written off ministration. istration have in mind. One looked at Utah, their electoral votes—six, I So let me be blunt. Our President ap- some of the media and saw the expanse think—written them off. They have pears to be a young man in a hurry. It of the Grand Canyon with the Presi- probably written off Alaska. is becoming more and more clear he dent standing—I should say sitting—at I know my colleague from Idaho is doesn’t seem to be very concerned a desk overlooking the brink of the introducing legislation to ensure, as about where he is going, as long as it Grand Canyon with the Vice President far as Idaho is concerned, the applica- leads to his reelection. As a result, we standing behind him. tion of the Antiquities Act. Wyoming, have great TV news stories, a lot of ac- This withdrawal was a last-minute after the experience with the Antiq- tion and some major policy blunders, withdrawal, it was a secretive with- uities Act, had a provision in the final in my opinion. We seem to be seeing drawal, it was an unconventional with- settlement that suggested that the An- the influence from the extreme na- drawal. The way they attempted to tiquities Act would be no longer appli- tional environmental groups who have create the Grand Staircase-Escalante cable in that State. In our State of the ear of the administration and the National Monument, could cause one Alaska, we have a no more clause. The President, and these groups have put to quickly conclude the administration Federal Government simply cannot fear into the American people; fear was primarily concerned about the take land under a land grab and des- that we cannot develop resources on photo opportunities and climbing the ignate it without a congressional proc- public lands. This issue is true not just staircase to reelection. The details of ess occurring. about coal mining. It is true about this withdrawal were left undecided. The President included 200,000 acres grazing, it is true about timbering, it is The potential harms of this hasty deci- of school trust lands in Utah which po- true about oil and gas exploration—vir- sion, in my opinion, suggest the Presi- tentially could produce $1.5 billion to tually all development on public land. dent is in an irresponsible rush to get fund Utah’s public schools. Why did the The environmental community is in- on the evening news. President not choose to work with stilling this degree of fear in the Amer- I have a question for the White House Governor Leavitt about that and the ican electorate. It bears no responsibil- and the President. It is specific. It is: other $6.6 billion the State potentially ity, no accountability. They simply Why was the public not involved in this would lose? Does the President realize sell American technology short and, by decision? We have NEPA, FLPMA, and that locking up 62 billion tons of recov- this fear tactic and the ability of the Federal land use planning laws, all of erable low-sulfur coal will lead to media to expound on it and add to it, which stress public involvement in spe- greater air pollution when utilities are they are generating membership, they cies protection. The administration in- forced to burn dirtier coal? are generating dollars, and we are be- sists on strict adherence to these laws. Like it or not, coal provides about coming more and more dependent on Adherence to these laws occurs, of half the Nation’s electricity. imports, something I am going to talk course, before the action, not after it. It is my understanding this particu- a little bit about later. These laws were followed in the Cali- lar coal deposit would be about 40 acres As we reduce our own self-sustaining fornia desert wilderness debate. It was out of the 1.8 million acres—a pretty resource base, we become more depend- extensive. We all participated in it. It small footprint. ent on imports. Those imports are com- did not turn out the way we all wanted Does the President know that 350,000 ing in from nations that do not have it, but a democratic process occurred, acres of what he is declaring a monu- the same environmental sensitivity hearings were held, there was give and ment will be opened up to buses, tour- that we do. We have the ingenuity, we take, the State of California was con- ists, and other development, and that have the technology, we have the sulted, individuals in this body took a it would have been protected as wilder- American know-how to preserve these stand, they voted on it and they were ness under the plan written by the jobs at home, develop our resources, held accountable for their vote. Why State of Utah and Utahns? In fact, and do it safely. was that procedure not followed in the Utah had indicated a willingness for The President’s designation of the State of Utah? further review of its roadless areas for 1.7-million-acre monument was an ar- My constituency, of course, is the wilderness status. rogant act. It was in violation of the State of Alaska. We have already expe- What about the huge liability the intent of the Federal environmental rienced a little activity in the 1970’s, Federal Government assumes in wiping laws and procedures the President’s under President Carter, with the An- out private property claims in this own administration has so ardently en- tiquities Act, whereby some 56 million area? Where are we going to find the force on everyone else. acres or thereabouts were withdrawn. money to reimburse Americans whose Mr. President, I intend, before this Wilderness in Alaska is very sacred property is, obviously, taken at the session is over, to introduce legislation to us. The mistake that was made in cost of billions of dollars? What about to close this dangerous loophole in our our State, when we were establishing the people who are going to lose their environmental laws. It is going to be land patterns, is we did not do a re- jobs? The President says the monu- applicable, obviously, to those States source inventory. We almost did. We ment will add jobs. with public lands, which are the West- could have met the wilderness demands Let’s look at Utah. The people of ern States, to eliminate the necessity and we could have identified those Kanab, UT, an area surrounded by five and the authority of the President to S11086 CONGRESSIONAL RECORD — SENATE September 20, 1996 continue these land grabs without any leum payments in 1994, 27 percent, or As far as low-level waste, the Presi- congressional evaluation. $44.2 billion; petroleum payments in dent refuses to support a congressional The Antiquities Act of 1906 has a nar- 1995, 33.2 percent, or $57.9 billion. Then proposal giving the ability to the State row, specific purpose. It was never in- there is China, Japan, and others. of California at Ward Valley to put in tended to be used in this manner. As I That is what we are looking at when a facility to store the waste even indicated, Alaska and Wyoming have we look at the trade deficit. As this though we have given the States the been exempt from the act, but other chart illustrates, foreign oil depend- authority. The disturbing thing is, public land States should know it could ency translates into one-third of the while the President, in this election only be a matter of time before they total trade deficit. The Department of mode, opposes these proposals—respon- are attacked for withdrawals similar to Energy predicts that by the years 2000 sible proposals, proposals that have what occurred in Utah. and 2002, we will be two-thirds depend- been supported by State Governors, The question is not should we have a ent on imported oil. Instead of 51 per- State legislatures, and proposals that national monument in Utah. The Utah cent, it will be 66 percent. have been supported by a majority of delegation said it would work with the What is America doing about its con- the U.S. Senate—he and his adminis- administration on that. The question tinuing dependency? I think we are fol- tration refuse to come up with respon- is, should a President ram through lowing counterproductive policies. We sible alternatives. such a big Federal land change at the are not reducing our oil dependency. As I have sent letters saying, if you do last minute without public participa- I said earlier, the President just locked not like this, what will you support? tion and congressional involvement? up huge reserves of coal in Utah. This He absolutely ignores the responsibil- Clearly, we know the answer. The is clean coal. Earlier, he vetoed legisla- ity associated with addressing and cor- democratic process is being cir- tion which would have opened up the recting these exposures. cumvented. It is no wonder some peo- Arctic oil reserve. That passed both the Lastly, Mr. President, another part ple are referring to this action as House and the Senate for the first of the Clinton record that should not President Clinton’s Federal land grab time. That is the best chance to find go without remark is the inept and and calling it reelection national significant stable American sources of naive approach the administration has monument. He says he is merely doing oil domestically, in the United States. taken in dealing with some of our for- what Teddy Roosevelt did by using the I remind my colleagues that Prudhoe eign adversaries. Let me just touch on Antiquities Act of 1906. But, again, Bay has been supplying this Nation two recent examples. there are many important differences. with nearly 25 percent of its total The Clinton administration, some President Roosevelt thought first and crude oil utilization for the last 18 time ago, embarked on a policy to- acted later. Roosevelt acted nearly 100 years. It is in decline. Yet this admin- wards North Korea that can only be years ago, before this Nation developed istration will not let us use American called, in my opinion, ‘‘appeasement,’’ environmental laws and procedures for technology to go into the areas that and put the United States in a position proper and detailed land use decision- are most likely to have a major discov- of being a party, almost, to a bribe. making. I am sorry, President Clinton, ery. And with that technology, the Under the so-called negotiated frame- you are no Teddy Roosevelt. footprint would be very small, no larg- work deal, the Clinton administration (Mr. HATFIELD assumed the Chair.) er than the Dulles International Air- was going to provide North Korea with Mr. MURKOWSKI. Mr. President, in port complex, which is about 12,500 $500 million worth of oil—500,000 tons a conjunction with that, I think it is acres out of the 19 million acres in the year—and, along with South Korea and noteworthy to recognize President area associated with the Arctic Na- Japan, two light-water nuclear reac- Clinton’s themes this week. He contin- tional Wildlife Reserve. tors worth $4 to $5 billion. ues to push the themes that, one, he is So the President’s actions are cer- What have we received in return for the environmental President, and, two, tainly disturbing. But I guess they are this so-called deal? Have the North Ko- he is the export President. Let’s exam- hardly surprising, because if you really reans acted in good faith? No. The ine that for a minute. I just shared look at our energy area—and as chair- North Koreans held us hostage. They with you my views on why his decision man of the Energy and Natural Re- said they would stop their own graph- to lock up Utah’s vast energy resources sources Committee, that is my area of ite reactor construction if they could was a mistake, but I also want to dis- responsibility—he is equally unwilling have this new technology, and only cuss why his rhetoric about exports to address and promote nuclear power, then could we go in and examine their covers up what is really going on with coal power, hydroelectric power. He storage sites, once the new light-water the trade deficit. strongly supports the consumption of reactors were on line. The most recent statistics on the natural gas, but is not equally support- Under the deal we negotiated, the trade deficit were absolutely horrible. ive of domestic production. He does not Clinton administration was going to In July, imports increased to $78.9 bil- want to see additional offshore and on- provide these light-water reactors lion from $77.9 billion in June. The shore Federal lands opened up. In worth $4 to $5 billion. We saw what largest increases were in industrial short, he is doing virtually nothing to North Korea did with regard to acting supplies and materials, primarily the reduce our dependence on imported oil in good faith just yesterday and the cost of crude petroleum. and, thereby, address our trade deficit. day before in their relationships with Our exports decreased to $67.2 billion During President Clinton’s 4 years in South Korea and the rest of the world. from $69.7 billion in June. The trade office, the United States will have ac- A North Korean submarine, filled deficit in goods for the first 6 months cumulated the largest trade deficit in with 26 commandos—I met with the of this year amounted to $89.6 billion, the history of our Nation. That is as- Korean Ambassador last evening—tried and this is expected to grow to $170 bil- tonishing, when you consider the ex- to infiltrate the south. Some of the lion by year’s end, second only to last change rate records set during the commandos carried South Korean uni- year’s record $175 billion. same period. I think this is a part of forms with them. They were armed. China and Japan continue as the the Clinton record that Americans And they had a mission, Mr. President, countries with the largest trade imbal- should understand and consider and re- a mission to infiltrate South Korea. ance, but focusing only on China and flect on a little closer. But we will hear more about that later. Japan ignores one of the major contrib- There is another inconsistency rel- Nineteen of the commandos have al- utors to our trade deficit, and that is ative to energy. As we recognize our ready been killed. A manhunt contin- our dependence on foreign oil. Right dependence on nuclear power for about ues for the remaining infiltrators. But now, America is importing 51 percent 30 percent of our power-generating ca- these commandos came from a North of its daily oil needs. That percentage pability, we have accumulated high- Korean submarine that beached in the is expected to rise to two-thirds by the level nuclear waste. The President re- south. The United Nations command year 2000. fuses to support the plan in Congress to attempted to deliver a formal protest Here is a chart, Mr. President, of the establish in Nevada a temporary repos- to the North Korean military official current account balances of our top itory until a permanent repository can in the face of clear evidence of the three creditors from 1994 to 1995. Petro- be determined at Yucca Mountain. North Korean infiltration. The North September 20, 1996 CONGRESSIONAL RECORD — SENATE S11087 Korean Government refused to even ac- The PRESIDING OFFICER. Without gress and the administration, faith- cept the protest of South Korea. objection, it is so ordered. fully characterizing the differences be- So there we have, I think, an extraor- f tween us, and providing accurate infor- dinary example of our foreign policy, mation to bridge those differences. He ON PUBLIC SERVICE perhaps well-meaning, but indeed to a works impossibly long hours keeping high degree naive in relation to shoring Mr. HATFIELD. Mr. President, in the track of myriad issues, and does so up a deteriorating regime of totali- last days of this session, as I reflect on with a degree of professionalism that tarianism in North Korea, one that, if the past 30 years in which I have been meets the highest standard. For that, left to its own weight, in the opinion of priviliged to serve here in the U.S. Sen- he has earned the respect and apprecia- the Senator from Alaska, would very ate, my thoughts turn time and again tion of the committee members and soon flounder. There is no other area in to the many, many individuals who not staff in both Houses on both sides of the world as isolated as North Korea. only have enriched my experience here the aisle, and I want thank him for his Having visited there a few years ago, I but have been exemplars of public serv- service. can tell you that they cannot feed ice. I cannot possibly name them all or Mr. President, there are many other themselves as a nation. They have no thank them all. There are two gentle- people throughout our Government, at energy. They have no capital reserves. men, however, who have been integral all levels, who perform demanding jobs They have an extraordinary govern- to the work of the Appropriations Com- under difficult circumstances. They do ment whose longevity is extremely mittee in my time as chairman and so with integrity and diligence to duty. short, in this Senator’s opinion. ranking minority member these past 15 Those of us who serve here, in the So, Mr. President, what has the Clin- years, and I want to take a few min- House of Representatives, and in the ton administration done? Well, have utes today to thank them, particu- highest levels of the executive depart- they decided to reconsider the energy larly, today. ments, could not do without them. All bribery deal they have negotiated with Bill Hoagland has served as the staff of the citizens of this Nation owe them the north? No. No. They are not recon- director of the Senate Budget Commit- more than we ever effectively express. sidering it. Are they so naive they be- tee for 11 years. In that time, he has By expressing my appreciation to Bill lieve the North Korean Government grappled with Gramm–Rudman–Hol- Hoagland and Chuck Kieffer, I mean to bargains in good faith? I wonder. The lings, played a significant role in the convey that appreciation to all those American people have to wonder when 1987, 1990, and 1995 ‘‘budget summit’’ other public servants as well, who per- it comes down to this administration negotiations, and fought daily battles form day after day these many duties and President Clinton negotiating with with virtually every committee in the staffing our committees and our per- foreign adversaries. Senate and the House of Representa- sonal offices. What of the Clinton administration’s tives to nurture an effective congres- (The remarks of Mr. HATFIELD per- spin-doctoring claim of ‘‘success’’ after sional budget process and keep the fis- taining to the introduction of S. 2100 last week’s cruise missile attack in cal policy of our Government on a are located in today’s RECORD under Iraq? The coalition that President sound foundation. The legislative proc- ‘‘Statements on Introduced Bills and George Bush put together in 1990 is ess during his tenure in the Senate has Joint Resolutions.’’) crumbling. Saddam Hussein has no fear been nearly consumed with budget leg- Mr. HATFIELD. Mr. President, I sug- of crushing the Kurds because he islation of one sort or another, and he gest the absence of a quorum. knows that U.S. leadership is lacking has been in the midst of it all. The PRESIDING OFFICER. The under this President and this adminis- Bill Hoagland has epitomized the clerk will call the roll. tration. qualities and character of an outstand- The assistant legislative clerk pro- Just this week we learned that near- ing public servant and Senate staffer. ceeded to call the roll. ly 200 people disappeared. They have He has been unfailingly honest. He has Mr. DORGAN. Mr. President, I ask been murdered, Mr. President. These considered opposing views of issues dis- unanimous consent that the order for are people who were providing our Gov- passionately. He has been a staunch de- the quorum call be rescinded. ernment with intelligence. Why didn’t fender of the budget process, and a The PRESIDING OFFICER. Without we get those people out of the country loyal advisor to his chairman, Senator objection, it is so ordered. before Saddam and his murderous PETE DOMENICI. Like his chairman, he f troops crushed the Kurds? has been courageous in holding his con- MORNING BUSINESS victions despite harsh criticism from Yesterday, CIA chief John Deutch (During today’s session of the Sen- certain quarters. The Senate is fortu- told Congress that Saddam is politi- ate, the following morning business nate to have his able assistance, and I cally stronger today than he was before was transacted.) he sent his troops into northern Iraq. salute him. f Somebody asked the question, well, is A sound relationship with the Office Saddam better off today than he was 2 of Management and Budget is very im- THE VERY BAD DEBT BOXSCORE weeks ago? The answer is clearly, yes. portant to the work of the Appropria- Mr. HELMS. Mr. President, at the We have lost a good deal of credibility. tions Committee, and in the past 10 close of business yesterday, Thursday, So, Mr. President, it is a very dan- years that relationship has been en- September 19, the Federal debt stood at gerous world we live in. It is easy to hanced by the work of Chuck Kieffer, a $5,190,460,235,894.57. criticize. But it is important to point career employee of OMB. Chuck start- One year ago, September 19, 1995, the out the gross inconsistencies associ- ed at OMB when Mr. David Stockman Federal debt stood at $4,965,955,000,000. ated with these items that I have was named Director, and he has served Five years ago, September 19, 1991, touched on today. under every Director since, through the Federal debt stood at I think the administration is naive. I Republican and Democratic adminis- $3,625,828,000,000. think they are gullible. I do not think trations alike. He has been the prin- Ten years ago, September 19, 1986, they are equipped, based on their cipal OMB liaison with the House and the Federal debt stood at record, to deal with the dangers that Senate Appropriations Committees $2,108,205,000,000. This reflects an in- confront us today and in the imme- under Republican and Democratic ma- crease of more than $3 trillion, diate future. Mr. President, I yield the jorities. $3,010,255,235,894.57, during the 10 years floor and suggest the absence of a By virtue of that experience, Chuck from 1986 to 1996. quorum. Kieffer has become the single person in f The PRESIDING OFFICER (Mr. MUR- OMB most knowledgeable about the ap- KOWSKI). The clerk will call the roll. propriations process. He is the institu- HONORING LOWELL MOHLER, The legislative clerk proceeded to tional memory of the Executive Office CHIEF ADMINISTRATIVE OFFI- call the roll. of the President on what we have done, CER OF THE MISSOURI FARM Mr. HATFIELD. Mr. President, I ask and what we have left undone, in ap- BUREAU unanimous consent that the order for propriations acts. More important, he Mr. ASHCROFT. Mr. President, in the quorum call be rescinded. is the honest broker between the Con- 1794 George Washington said, ‘‘I know S11088 CONGRESSIONAL RECORD — SENATE September 20, 1996 of no other pursuit in which more real farmland and production of beef rank compassion with which he has per- and important services can be rendered second in the Nation. Missouri is also formed his job, Nevada owes Donnell to any country than improving its ag- among the top 15 States producing rice, Horn a debt of gratitude. riculture.’’ These words mean as much soybeans, milo, hay, corn, and cotton. f today, over 200 years later, as they did Agriculture is a critical force in Mis- then. Agricultural industries employ souri’s economy as well as the Na- MESSAGES FROM THE PRESIDENT nearly 20 percent of all Americans. tion’s. Messages from the President of the Today, I rise to honor a dear friend On a personal note, my friendship United States were communicated to for 26 years of dedicated service to Mis- with Lowell has afforded me the oppor- the Senate by Mr. Williams, one of his souri agriculture. On September 24, tunity of his wisdom. Lowell was al- secretaries. 1996, Lowell Mohler will gather with ways happy to advise me regarding my EXECUTIVE MESSAGES REFERRED friends, family, and colleagues to cele- farm in Missouri. He unselfishly as- As in executive session the Presiding brate the achievements of his distin- sisted me in planning and complying Officer laid before the Senate messages guished career with the Missouri Farm with conservation regulations, particu- from the President of the United Bureau. Lowell is a native Missourian larly in the area of soil and water con- States submitting one nomination born in Oregon, MO. Agriculture was servation, tree preservation and re- which was referred to the Committee always in his blood. Upon receiving his planting, pasture rotation, and general on Finance. agriculture degree from the University farm management. During my tenure (The nomination received today is of Missouri, he pursued an active ca- as Governor, Lowell served on the tran- printed at the end of the Senate pro- reer in agriculture, including assistant sition team in 1985 to 1986; he was also ceedings.) director of marketing for the Kansas appointed to the business and edu- f State Board of Agriculture, marketing cation partnership commission, which director of the Missouri Department of was a task force to study the higher REPORT CONCERNING THE CUBAN Agriculture and a vital member of the education system in Missouri. Lowell LIBERTY AND DEMOCRATIC SOL- Missouri Farm Bureau. provided me countless hours of advice IDARITY (LIBERTAD) ACT OF Lowell began his career with the Mis- on agricultural policy important to 1966—MESSAGE FROM THE PRESI- souri Farm Bureau in 1970 and cur- Missouri farmers and ranchers, which DENT—PM 171 rently serves as the chief administra- was a result of policy established by The PRESIDING OFFICER laid be- tive officer and corporate secretary. the grassroots development process of fore the Senate the following message For many years, Lowell has been a the Missouri Farm Bureau. His whole from the President of the United driving force meeting Missouri farm- family was involved, too. Lowell’s wife, States, together with an accompanying ers’ needs. Over these years, Lowell has JoAnn, served as my executive sec- report; which was referred to the Com- been honored by his peers many times retary from 1985 to 1993 during my ten- mittee on Foreign Relations. over. In April 1988, Gamma Sigma ure as Governor of Missouri. Lowell Delta, a national honor society rec- and JoAnn continue to be close friends, To the Congress of the United States: ognizing individuals for scholarship whom I respect for advice and guid- This report is submitted pursuant to and service in agriculture, honored him ance. 1705(e)(6) of the Cuban Democracy Act with the Distinguished Service to Agri- For these important reasons, I rise of 1992, 22 U.S.C. 6004(e)(6) (the ‘‘CDA’’), culture Award for his outstanding sup- today to recognize and salute my as amended by section 102(g) of the port of the University of Missouri’s friend for not only the 26 years of ex- Cuban Liberty and Democratic Solidar- College of Agriculture. In September emplary service to the Missouri Farm ity (LIBERTAD) Act of 1996, Public 1990, Lowell was again honored with Bureau, but for his lifelong dedication Law 104–114; 110 Stat. 793 (the the Missouri University Alumni Asso- to the Missouri agricultural industry. ‘‘LIBERTAD Act’’), which requires ciation Distinguished Service Award Lowell Mohler’s service and friendship that I report to the Congress on a semi- for his continuing support and efforts has been an inspiring testimony to me annual basis detailing payments made in adding to the excellence of the uni- as well as all Missourians. to Cuba by any United States person as versity. In January 1991, he received f a result of the provision of tele- the Missouri University Citation of communications services authorized by Merit Award and the Presidential Cita- TRIBUTE TO DONNELL HORN this subsection. tion Award for Extension. In October Mr. REID. Mr. President, I rise today The CDA, which provides that tele- 1991, he received the State Friend of to honor one of Nevada’s most dedi- communications services are permitted Extension Award in recognition of out- cated activists, Pastor Donnell Horn. between the United States and Cuba, standing public service and support of For 25 years, Pastor Horn has tirelessly specifically authorizes me to provide the Missouri Cooperative Extension ministered to others, working to better for payments to Cuba by license. The Service and its educational programs. the lives of everyone he touches. CDA states that licenses may provide In 1995, he was honored with the Ag Serving as Pastor of New Revelation for full or partial settlement of tele- Leader of the Year Award presented by Baptist Church in Las Vegas for the communications services with Cuba, the Missouri Ag Industries Council. past 16 years, Pastor Horn has not only but does not require any withdrawal Lowell’s attributes are many as his earned the love and respect of his pa- from a blocked account. Following en- honors describe. rishioners, but of the entire commu- actment of the CDA on October 23, 1992, Lowell was there during the dev- nity to which he has devoted himself. a number of U.S. telecommunications astating Missouri flood of 1993, helping Striving to uplift and empower the peo- companies successfully negotiated farmer after farmer cope with their ple he assists, Pastor Horn brings new agreements to provide telecommuni- great losses due to rising floodwaters. hope to those struggling in hard times. cations services between the United His own farm, which borders the great He is a counselor and a minister who States and Cuba consistent with policy Missouri River, also fell victim with reaches out to heal his community. As guidelines developed by the Depart- huge crop losses due to the flood- he works to help those whose need is ment of State and the Federal Commu- waters. But Missouri farmers per- immediate, Pastor Horn also has a vi- nications Commission. severed and overcame with the help of sion for the future and is always think- Subsequent to enactment of the CDA, Lowell and the Missouri Farm Bureau. ing of the next generation. His leader- the Department of the Treasury’s Of- Lowell’s generosity, integrity and ship and humanity have indeed made fice of Foreign Assets Control (OFAC) foresight have continued over the years Las Vegas a better place, and, because amended the Cuban Assets Control to keep Missouri agricultural interests of his work, our children’s future looks Regulations, 31 C.F.R. Part 515 (the strong for Missouri families and farm- brighter. ‘‘CACR’’), to provide for specific licens- ers. American farmers set the world ag- It is my pleasure to speak today in ing on a case-by-case basis for certain ricultural standards by producing the tribute to Donnell Horn, and congratu- transactions incident to the receipt or highest quality products at the lowest late him on his 25 years of service in transmission of telecommunications prices. Missouri’s 28 million acres of the ministry. For the excellence and between the United States and Cuba, 31 September 20, 1996 CONGRESSIONAL RECORD — SENATE S11089 C.F.R. 515.542(c), including settlement H.R. 3802. An act to amend section 552 of and Space Museum Dulles Center at Wash- of charges under traffic agreements. title 5, United States Code, popularly known ington Dulles International Airport, and for The OFAC has issued eight licenses as the Freedom of Information Act, to pro- other purposes. authorizing transactions incident to vide for public access to information in an f electronic format, and for other purposes. the receipt or transmission of tele- H.J. Res. 191. Joint resolution to confer EXECUTIVE AND OTHER communications between the United honorary citizenship of the United States on COMMUNICATIONS States and Cuba since the enactment of Agnes Gonxha Bojaxhiu, also known as The following communications were the CDA. None of these licenses per- Mother Teresa. mits payments to the Government of laid before the Senate, together with A message from the House of Rep- accompanying papers, reports, and doc- Cuba from a blocked account. In the resentatives, delivered by one of its period October 23, 1992, to June 30, 1996, uments, which were referred as indi- reading clerks, announced that the cated: OFAC-licensed U.S. carriers reported Speaker has signed the following bills: EC 4147. A communication from the Execu- payments to the Government of Cuba H.R. 2464. An act to amend Public Law 103– in settlement of charges under tele- tive Director of the Martin Luther King, Jr. 93 to provide additional lands within the Federal Holiday Commission, transmitting, communications traffic agreements as State of Utah for the Goshute Indian Res- the annual report for the calendar year 1996; follows: ervation, and for other purposes. to the Committee on the Judiciary. AT&T Corporation (for- H.R. 2512. An act to provide for certain EC 4148. A communication from the Assist- merly, American Tele- benefits of the Pick-Sloan Missouri River ant Secretary of Labor for OSHA, transmit- phone and Telegraph basin program to the Crow Creek Sioux ting, pursuant to law, a rule regarding occu- Company) ...... $39,647,734.42 Tribe, and for other purposes. pational exposure to asbestos (RIN 1218– AT&T de Puerto Rico ...... 524.646.58 H.R. 2982. An act to direct the Secretary of AB25) received on September 18, 1996; to the Global One (formerly, the Interior to convey the Carbon Hill Na- Committee on Labor and Human Resources. Sprint Incorporated) ...... 4,870,053.05 tional Fish Hatchery to the State of Ala- EC 4149. A communication from the Sec- IDB WorldCom Services, bama. retary of Health and Human Services, trans- H.R. 3120. An act to amend title 18, United Inc. (formerly, IDB Com- mitting, pursuant to law, the National Insti- States Code, with respect to witness retalia- munications, Inc.) ...... 3,038,857.00 tute for Occupational Safety and Health MCI International, Inc. tion, witness tampering and jury tampering. (NIOSH) and Center for Disease Control and (formerly, MCI Commu- H.R. 3287. An act to direct the Secretary of Prevention (CDC) annual reports for fiscal nications Corporation) ... 17,453,912.00 the Interior to convey the Crawford National years 1993 and 1994; to the Committee on Telefonica Larga Distancia Fish Hatchery to the city of Crawford, Ne- Labor and Human Resources. de Puerto Rico, Inc...... 150,282.40 braska. EC 4150. A communication from the Assist- WilTel, Inc. (formerly, The enrolled bills were signed subse- WilTel Underseas Cable, ant Attorney General in the Civil Rights Di- Inc.) ...... 7,792,142.00 quently by the President pro tempore vision, Department of Justice, transmitting, WorldCom, Inc. (formerly, [Mr. THURMOND]. pursuant to law, a report with respect to a LDDS Communications, f rule entitled ‘‘Americans with Disabilities Inc.) ...... 3,349,967.88 Act Accessibility Guidelines; Detectable ENROLLED BILLS SIGNED Warnings,’’ (RIN 3014–AA18) received on Sep- Total ...... $76,827,595.33 The following enrolled bills, pre- tember 16, 1996; to the Committee on Labor I shall continue to report semiannu- and Human Resources. viously signed by the Speaker of the EC 4151. A communication from the Sec- ally on telecommunications payments House of Representatives, were signed retary of Defense, transmitting, a notice of to the Government of Cuba from Unit- on today, September 20, 1996, by the retirement; to the Committee on Armed ed States persons. President pro tempore (Mr. THUR- Services. WILLIAM J. CLINTON. MOND): EC 4152. A communication from the Direc- THE WHITE HOUSE, September 20, 1996. H.R. 2679. An act to revise the boundary of tor of Defense Procurement in the Office of f the North Platte National Wildlife Refuge, the Under Secretary of Defense, transmit- to expand the Pettaquamscutt Cove National ting, pursuant to law, thirty rules amending MESSAGES FROM THE HOUSE Wildlife Refuge, and for other purposes. the Defense Federal Acquisition Regulation ENROLLED BILLS AND JOINT RESOLUTION H.R. 3060. An act to implement the Proto- Supplement (received on September 19, 1996); SIGNED col on Environmental Protection to the Ant- to the Committee on Armed Services. AT 10:30 p.m., a message from the arctic Treaty. EC 4153. A communication from the Fiscal H.R. 3553. An act to amend the Federal Assistant Secretary, Department of the House of Representatives, delivered by Treasury, transmitting, pursuant to law, a Ms. Goetz, one of its reading clerks, an- Trade Commission Act to authorize appro- priations for the Federal Trade Commission. report relative to a government securities nounced that the Speaker has signed H.R. 3816. An act to making appropriations broker; to the Committee on Banking, Hous- the following enrolled bills and joint for energy and water development for the fis- ing, and Urban Affairs. resolution: cal year ending September 30, 1997, and for EC 4154. A communication from the Sec- S. 1995. An act to authorize construction of other purposes. retary of the Securities and Exchange Com- the Smithsonian Institution National Air S. 533. An act to clarify the rules governing mission, transmitting, pursuant to law, a and Space Museum Dulles Center at Wash- removal of cases to Federal court, and for rule concerning eliminating fees (RIN 3235– ington Dulles International Airport, and for other purposes. AG79) received on September 19, 1996; to the other purposes. S. 677. An act to repeal a redundant venue Committee on Banking, Housing, and Urban S. 1636. An act to designate the United provision, and for other purposes. Affairs. States Courthouse under construction at 1030 H.R. 3396. An act to define and protect the EC 4155. A communication from the Gen- Southwest 3rd Avenue, Portland, Oregon, as institution of marriage. eral Counsel of the Department of Transpor- the ‘‘Mark O. Hatfield United States Court- f tation, transmitting, pursuant to law, fifteen house,’’ and for other purposes. rules including one entitled ‘‘Airworthiness H.R. 1772. An act to authorize the Sec- ENROLLED BILLS PRESENTED Directives; Boeing Model 757 Series Air- retary of the Interior to acquire certain in- The Secretary of the Senate reported planes; Docket 96–NM–223–AD,’’ (RIN 2120– AA64, 2120–AA66) received on September 19, terests in the Waihee Marsh for Inclusion in that on September 20, 1996 he had pre- the Oahu National Wildlife Refuge Complex. 1996; to the Committee on Commerce, H.R. 2909. An act to amend the Silvio O. sented to the President of the United Science, and Transportation. Conte National Fish and Wildlife Refuge Act States, the following enrolled bills: EC 4156. A communication from the Gen- to provide that the Secretary of the Interior S. 533. To clarify the rules governing re- eral Counsel of the Department of Transpor- may acquire lands for purposes of that Act moval of cases to Federal court, and for tation, transmitting, pursuant to law, a rule only by donation or exchange, or otherwise other purposes. entitled ‘‘Stability and Control of Heavy Ve- with the consent of the owner of the lands. S. 677. To repeal a redundant venue provi- hicles,’’ (RIN 2127–AG06) received on Septem- H.R. 3675. An act making appropriations sion, and for other purposes. ber 19, 1996; to the Committee on Commerce, for the Department of Transportation and S. 1636. An act to designate the United Science, and Transportation. related agencies for the fiscal year ending States Courthouse under construction at 1030 EC 4157. A communication from the Fiscal September 30, 1997, and for other purposes. Southwest 3rd Avenue, Portland, Oregon, as Assistant Secretary, Department of the H.R. 3676. An act to amend title 18, United the ‘‘Mark O. Hatfield United States Court- Treasury, transmitting, pursuant to law, the States Code, to clarify the intent of Congress house,’’ and for other purposes. annual report for calendar year 1995; to the with respect to the Federal carjacking prohi- S. 1995. An act to authorize construction of Committee on Banking, Housing, and Urban bition. the Smithsonian Institution National Air Affairs. S11090 CONGRESSIONAL RECORD — SENATE September 20, 1996 INTRODUCTION OF BILLS AND As many of us recognize, women- million this year, although I am hope- JOINT RESOLUTIONS owned businesses are one of the fastest ful Congress will see fit to fully fund it The following bills and joint resolu- growing, highly stable, and job-produc- at twice this amount. In my esti- tions were introduced, read the first ing segments of our U.S. economy. At mation, this program should be ex- and second time by unanimous con- the same time, I am afraid they are panded so that the SBA can establish sent, and referred as indicated: also one of the most perceptually the business centers in all of the By Mr. BINGAMAN (for himself and under-valued segments of our business States, particularly those 22 States Mr. DOMENICI): sector; there are far too many who that currently have no sites. S. 2097. A bill to modify the boundary of have overlooked this extraordinary The program is slated to end in 1997. Bandelier National Monument in the State group of business owners. I believe this would be a real disservice of New Mexico, and for other purposes; to the Let me cite some phenomenal statis- to America’s women business owners. Committee on Energy and Natural Re- tics about women-owned businesses. Therefore, this bill will permanently sources. Between 1982 and 1987, women-owned authorize the program, increase the By Mr. DOMENICI: firms increased by 57.5 percent, more centers’ funding cycle from 3 to 5 S. 2098. A bill to amend the Small Business than twice the rate of all U.S. busi- Act to assist the development of small busi- years, and increase its presently au- ness concerns owned and controlled by nesses during that period. In 1987 they thorized funding level from $4 to $8 women, and for other purposes; to the Com- numbered approximately 4.1 million. million. mittee on Small Business. By 1996, women-owned businesses had I believe the time has come for Con- By Mr. GRASSLEY (for himself and grown to approximately 8 million busi- gress to recognize how absolutely es- Mr. GRAHAM): nesses and employed 18.5 million peo- sential women entrepreneurs are to the S. 2099. A bill to amend title XIX of the So- ple, which is one out of every four U.S. cial Security Act to provide post-eligibility American economy. As I stated pre- company workers and more than the viously, women business owners have treatment of certain payments received Fortune 500 companies employed under a Department of Veterans Affairs pen- achieved enormous successes because sion or compensation program, and for other worldwide. They generated an esti- of their independent spirit and skills. purposes; to the Committee on Finance. mated $2.3 trillion in sales and are in We can, however, offer some valuable By Mr. HATCH: every industrial sector. assistance for a very minimal amount S. 2100. A bill to provide for the extension The National Association of Women of funding. I believe it fair to say that of certain authority for the Marshal of the Business Owners [NAWBO] reports that the return on that investment will far Supreme Court and the Supreme Court Po- the growth of women-owned firms con- lice; read the first time. exceed just about any other we may tinues to outpace overall business make. By Mr. SPECTER (for himself, Mr. growth by nearly two to one, and that HATCH, Mr. KOHL, Mr. GRASSLEY, Mr. As the National Association of their top growth industries are con- KENNEDY, Mr. BIDEN, Mrs. FEINSTEIN, Women Business Owner’s fact sheet struction, wholesale trade, transpor- Mr. THURMOND, Mr. LEAHY, Mr. SIMP- points out, ‘‘the greatest challenge of tation/communications, agribusiness, SON, and Mr. LEVIN): business ownership for women is being S. 2101. A bill to provide educational assist- and manufacturing. Women entre- taken seriously.’’ The statistics and ance to the dependents of Federal law en- preneurs are taking their firms into proven record of women business own- forcement officials who are killed or disabled the global marketplace at the same ers speaks for itself, and I invite my in the performance of their duties; consid- rate as all U.S. business owners. colleagues to support this effort in ered and passed. Women-owned businesses have sustain- By Mr. HATFIELD: their behalf. S. 2102. A bill to nullify the Supplemental ing power with 40 percent remaining in business for 12 years or more. As spec- This bill, which is going to continue Treaty Between the United States of Amer- to expand upon the concept of having ica and the Confederated Tribes and Bands of tacular, women own 30 percent of all women business training centers, Indians of Middle Oregon, concluded on No- businesses and are projected to own 50 vember 15, 1865; read twice. percent of all businesses by the year should become law. I am not sure that By Mr. BREAUX (for himself, Mr. 2000. will happen this year. But based upon FAIRCLOTH, Mr. HEFLIN, Mr. INHOFE, These statistics are truly impressive. the kind of things happening and the Mr. HELMS, and Mr. MACK): They also emphasize that women- needs out there and the fairness of this S. 2103. A bill to amend title 17, United approach, I believe it will become law. States Code, to protect vessel hull designs owned businesses have achieved these monumental feats because of business I am pleased to introduce it at this against unauthorized duplication, and for point. other purposes; to the Committee on the Ju- acumen, as well as self-reliance, inge- diciary. nuity, common sense, and dogged de- Mr. President, I ask unanimous con- By Mr. WARNER (for himself, Mr. termination. I say this because there sent that the text of the bill be printed ROBB, Mr. SARBANES, and Ms. MIKUL- still remain enormous obstacles for in the RECORD. SKI): women who want to establish busi- There being no objection, the bill was S.J. Res. 62. A joint resolution granting nesses; in particular, access to capitol ordered to be printed in the RECORD, as the consent of the Congress to amendments follows: made by Maryland, Virginia, and the Dis- and technical assistance. trict of Columbia to the Washington Metro- One of the most beneficial programs S. 2098 politan Area Transit Regulation Compact; to designed to assist women business own- Be it enacted by the Senate and House of Rep- the Committee on the Judiciary. ers is the Women’s Business Training resentatives of the United States of America in f Centers in the Small Business Adminis- Congress assembled, tration [SBA] to provide training, SECTION 1. SHORT TITLE. STATEMENTS ON INTRODUCED counseling, and technical assistance. I BILLS AND JOINT RESOLUTIONS This Act may be cited as the ‘‘Women’s know personally how very beneficial Business Training Centers Act of 1996’’. Mr. DOMENICI: this demonstration program has been SEC. 2. WOMEN’S BUSINESS TRAINING CENTERS. S. 2098. A bill to amend the Small in my State of New Mexico. I have Section 29 of the Small Business Act (15 Business Act to assist the development talked with the women clients and U.S.C. 656) is amended to read as follows: of small business concerns owned and toured their businesses, and thanks to ‘‘SEC. 29. (a) The Administration may pro- controlled by women, and for other the able leadership of the centers’ per- vide financial assistance to private organiza- purposes; to the Committee on Small sonnel, these businesses are growing fi- tions to conduct five-year projects for the Business. nancially, employing new personnel, benefit of small business concerns owned and THE WOMEN’S BUSINESS TRAINING CENTERS ACT and creating new markets for their controlled by women. The projects shall pro- OF 1996 goods and services. vide— Mr. DOMENICI. Mr. President, I am The Women’s Business Training Cen- ‘‘(1) financial assistance, including train- pleased to introduce the Women’s Busi- ters Program is one of the most need- ing and counseling in how to apply for and secure business credit and investment cap- ness Training Centers Act of 1996, a ed, best utilized, and tangibly success- ital, preparing and presenting financial companion to H.R. 4071 introduced by ful activities I have seen. It is also one statements, and managing cashflow and Congresswoman Nancy Johnson on of the smallest programs in the SBA; other financial operations of a business con- September 12. the Administration requested only $2 cern; September 20, 1996 CONGRESSIONAL RECORD — SENATE S11091 ‘‘(2) management assistance, including ‘‘(1) which is at least 51 percent owned by So, even though veterans residing in training and counseling in how to plan, orga- one or more women; and State veterans homes who are eligible nize, staff, direct and control each major ac- ‘‘(2) the management and daily business for AA and UME benefits and who qual- tivity and function of a small business con- operations are controlled by one or more cern; and women. ify for Medicaid have all of their treat- ‘‘(3) marketing assistance, including train- ‘‘(e) There are authorized to be appro- ment and living expenses paid by the ing and counseling in identifying and seg- priated $8,000,000 per year to carry out the State Medicaid Program, they never- menting domestic and international market projects authorized by this section. Notwith- theless may keep as much as $1,000 per opportunities, preparing and executing mar- standing any other provision of law, the Ad- month of the AA and UME benefits. keting plans, developing pricing strategies, ministration may use such expedited acqui- It might be useful for me to review locating contract opportunities, negotiating sition methods as it deems appropriate to how this state of affairs came to be. contracts, and utilizing varying public rela- achieve the purposes of this section, except In 1990, legislation was enacted (PL tions and advertising techniques. that it shall ensure that all eligible sources 101–508, November 5, 1990) which modi- ‘‘(b)(1)) As a condition of receiving finan- are provided a reasonable opportunity to cial assistance authorized by this section, submit proposals. fied title 38, the veterans benefits title the recipient organization shall agree to ob- ‘‘(f) The Administration shall prepare and of the United States Code, to stipulate tain, after its application has been approved transmit a biennial report to the Commit- that veterans with no dependents, on and notice of award has been issued, cash tees on Small Business of the Senate and title XIX, residing in nursing homes, contributions from non-Federal sources as House of Representatives on the effective- and eligible for aid and attendance and follows: ness of all projects conducted under the au- ‘‘(A) in the first and second years, 1 non- unusual medical expenses, could re- thority of this section. Such report shall pro- ceive only a $90 per month personal ex- Federal dollar for each 2 Federal dollars; vide information concerning— ‘‘(B) in the third year, 1 non-Federal dollar ‘‘(1) the number of individuals receiving as- pense allowance from the VA, rather for each Federal dollar; and sistance; than the full UME and AA amounts. ‘‘(C) in the fourth and fifth years, 2 non- ‘‘(2) the number of start-up business con- State veterans homes were subse- Federal dollars for each Federal dollar. cerns formed; quently exempted from the definition ‘‘(2) Up to one-half of the non-Federal sec- ‘‘(3) the gross receipts of assisted concerns; tor matching assistance may be in the form of nursing homes which had been con- ‘‘(4) increases or decreases in profits of as- tained in those earlier provisions of PL of in-kind contributions which are budget sisted concerns; and line items only, including but not limited to ‘‘(5) the employment increases or decreases 101–508 by legislation enacted in 1991— office equipment and office space. of assisted concerns. PL 102–40, May 7, 1991. ‘‘(3) The financial assistance authorized ‘‘(g) OFFICE OF WOMEN’S BUSINESS OWNER- The result was that veterans on title pursuant to this section may be made by SHIP.—There is hereby established within the XIX and residing in State veterans grant, contract, or cooperative agreement Administration an Office of Women’s Busi- homes continued to receive UME and and may contain such provision, as nec- ness Ownership, which shall be responsible essary, to provide for payments in lump sum AA. Until recently, the State veterans for the administration of the Administra- homes followed a policy of requiring or installments, and in advance or by way of tion’s programs for the development of wom- reimbursement. The Administration may that all but $90 per month of these al- en’s business enterprises, as such term is de- disburse up to 25 percent of each year’s Fed- fined in section 408 of the Women’s Business lowances be used to defray the cost of eral share awarded to a recipient organiza- Ownership Act of 1988. The Office of Women’s care in the home. tion after notice of the award has been is- Business Ownership shall be administered by Then, a series of Federal Court deci- sued and before the non-Federal sector an Assistant Administrator, who shall be ap- sions held that neither UME nor AA matching funds are obtained. ‘‘(4) If any recipient of assistance fails to pointed by the Administrator.’’. could be considered income. The court obtain the required non-Federal contribution By Mr. GRASSLEY (for himself decisions appeared to focus on the defi- during any project, it shall not be eligible and Mr. GRAHAM): nition of income used in pre- and post- thereafter for advance disbursements pursu- S. 2099. A bill to amend title XIX of eligibility income determinations for ant to paragraph (3) during the remainder of the Social Security Act to provide Medicaid. The court decisions essen- that project, or for any other project for post-eligibility treatment of certain tially held that UME and AA payments which it is or may be funded. In addition, payments received under a Department to veterans did not constitute income prior to approving assistance to such organi- of Veterans Affairs pension or com- zation for any other projects, the Adminis- for the purposes of post-eligibility in- tration shall specifically determine whether pensation program, and for other pur- come determinations. The reasoning the Administration believes that the recipi- poses; to the Committee on Finance. was that, since these monies typically ent will be able to obtain the requisite non- VETERANS BENEFITS LEGISLATION were used by veterans to defray the Federal funding and enter a written finding Mr. GRASSLEY. Mr. President, on cost of certain services they were re- setting forth the reasons for making such de- behalf of myself and Senator GRAHAM, I ceiving, the payments constituted a termination. am introducing today legislation ‘‘wash’’ for purposes of income gain by ‘‘(c) Each applicant organization initially which, when enacted, will modify the the veterans. shall submit a five-year plan on proposed fundraising and training activities, and a re- treatment of certain veterans benefits However, the frame of reference for cipient organization may receive financial received by veterans who reside in the courts’ decisions was not a nursing assistance under this program for a maxi- State veterans homes and whose care home environment in which a veteran mum of five years per site. The Administra- and treatment is paid for by the Medic- receiving Medicaid benefits might find tion shall evaluate and rank applicants in aid Program. himself or herself. In other words, the accordance with predetermined selection cri- Veterans residing in State veterans UME and AA payment received by a teria that shall be stated in terms of relative homes, who are eligible for aid and at- veteran on Medicaid are provided to a importance. Such criteria and their relative tendance [AA] and unusual medical ex- veteran for services for which the State importance shall be made publicly available and stated in each solicitation for applica- pense [UME] benefits, veterans benefits is already paying through the Medicaid tions made by the Administration. The cri- provided under Title 38 of the United program. The veteran is not paying for teria shall include— States Code, who are also eligible for these services with their own income. ‘‘(1) the experience of the applicant in con- Medicaid, are the only veterans in So, as a consequence of the court deci- ducting programs or on-going efforts de- nursing homes who receive, and who sions, these payments to the veteran in signed to impart or upgrade the business are able to keep, the entire AA and State Veterans Homes represent a net skills of women business owners or potential UME benefit amounts. This can be as gain in income to the veteran; they are owners; ‘‘(2) the present ability of the applicant to much as $1,000 per month. not paid out by the veteran to defray commence a project within a minimum Other veterans, who reside in other the cost of services the veteran is re- amount of time; and types of nursing homes are receiving ceiving. ‘‘(3) the ability of the applicant to provide Medicaid, and who are also eligible for As I mentioned earlier, VA does not training and services to a representative AA/UME can receive only $90 per pay AA or UME to veterans who are number of women who are both socially and month from the VA. also on title XIX and residing in non- economically disadvantaged. Yet other veterans, who reside in ‘‘(d) For the purposes of this section, the State Veterans Home nursing homes. term small business concern, either ‘start- State veterans homes but who are not Those veterans get only a $90 per up’ or existing, owned and controlled by eligible for the AA/UME benefits must month personal allowance. women includes any small business con- contribute all but $90 of their income And non-Medicaid eligible veterans cern— to the cost of their care. who reside in State Veterans Homes S11092 CONGRESSIONAL RECORD — SENATE September 20, 1996 must pay for services with their own Chief Justice Rehnquist has written ratified by the U.S. Senate March 8, funds. If they get UME and AA pay- to me requesting that Congress extend 1859 and has served since that time as ments, the State Veterans Home will this authority permanently. The Chief the primary agreement between the take all but $90 of those sums to help Justice correctly pointed out to me in Warm Springs Tribes and the U.S. Gov- defray the cost of the nursing home his letter, ‘‘As security concerns have ernment. care. not diminished, it is essential that the The 1855 treaty established a reserva- Although the written record does not off-grounds authority of the Supreme tion—referred to as the Warm Springs document this, I believe that the pur- Court Police be continued without Reservation—some 50 miles to the pose for exempting State Veterans interruption.’’ The Supreme Court in- south of the Columbia River, on the Homes was to allow the Homes to con- forms me that threats of violence Deschutes River. The 1855 treaty also tinue to collect all but $90 of the UME against the Justices and the Court provided that the members of the sig- and AA paid to the eligible veteran so have increased since 1982, as has vio- natory tribes settle on the newly cre- as to enable State Veterans Homes to lence in the Washington metropolitan ated reservation and cede the balance provide service to more veterans than area. Accordingly, I support a perma- of their territory to the United States. they otherwise would be able to pro- nent extension of this authority to pro- In signing the 1855 treaty, the tribes in- vide. vide for the safety of the Justices, sisted upon retaining their right to In any case, it seems highly unlikely court employees, and official visitors. hunt, fish, graze, and gather roots and that the purpose of exempting State Given the late date in the Congress, berries at their usual and accustomed Veterans Homes would have been to however, and the fact that we must stations and on unclaimed lands out- allow these veterans, and only these pass an extension before December 29, side the reservation. These reserved among similarly situated veterans, to 1996, I am introducing legislation that treaty rights were essential for the retain the entire UME and A&A would provide for a 4-year extension, Tribes’ life and culture. amounts. until December 29, 2000. I encourage While the tribes settled on the res- The legislation I am introducing Congress at some point to extend the ervation soon after the treaty signing, today modifies Section 1902 (r)(1) of the authority on a permanent basis, but I they maintained their accustomed Social Security Act to stipulate that, am suggesting a 4-year extension so practice of traveling regularly to the for purposes of the post-eligibility that we can get this done on short Columbia River to harvest its magnifi- treatment of income of individuals who order. cent runs of salmon. The continued are institutionalized—and on Title 19— I note for my colleagues that this presence of Indian people fishing along the payments received under a Depart- provision is without significant cost, the Columbia, however, irritated the ment of Veterans Affairs pension or but provides great benefits to those on non-Indian settlers and prompted the compensation program, including Aid the highest court in the land and those then-Superintendent of Indian Affairs and Attendance and Unusual Medical working with them. According to the for Oregon, J.W. Perit Huntington, to Expense payments, may be taken into Supreme Court, from 1993 through 1995, pursue efforts to keep the Tribes away account. there were only 25 requests for Su- from the settlers. preme Court Police protection beyond To that end, Superintendent Hun- By Mr. HATCH: the Washington, DC metropolitan area, tington drew up a supplemental treaty S. 2100. A bill to provide for the ex- at a total cost of $2,997. I am also in- and, on November 15, 1865, convinced tension of certain authority for the formed that off-grounds protection of the tribes of the Warm Springs Res- Marshal of the Supreme Court and the the Justices within the DC area is pro- ervation to sign it. This treaty, called Supreme Court Police; read the first vided without substantial additional the Treaty with the Middle Oregon time. cost, since it is part of the officers’ reg- Tribes of November 15, 1865, was rati- MARSHALL OF THE SUPREME COURT ularly scheduled duties along with fied by the U.S. Senate on March 2, LEGISLATION tasks on Court grounds. 1867. According to its terms, the treaty Mr. HATCH. Mr. President, I am I encourage my colleagues to support prohibits the Indians from leaving the pleased to introduce legislation that is this much-needed extension so that we Warm Springs Reservation without the needed before the end of this legisla- can pass this bill before we adjourn. written permission of the Government tive session. This simple bill would ex- By Mr. HATFIELD: and relinquishes all of the off-reserva- tend the authority of the Marshal of S. 2102. A bill to nullify the Supple- tion rights so carefully negotiated by the Supreme Court and the Supreme mental Treaty Between the United the tribes as part of the 1855 treaty. Court Police to provide security to States of America and the Confed- The Indians of the Warm Springs Justices, Court employees, and official erated Tribes and Bands of Indians of Reservation have never complied with visitors beyond the Court’s buildings Middle Oregon, concluded on November the 1865 treaty and the United States and grounds. The bill is straight- 15, 1865; read twice and ordered placed has never tried to enforce it. The his- forward and should not be controver- on the calendar. torical record explains why this is so. sial. TREATY NULLIFICATION LEGISLATION The 1865 treaty was obtained by fraud— The authority for the Marshal of the Mr. HATFIELD. Now, Mr. President, plain and simple. The Indians, who did Supreme Court and the Supreme Court this is probably the last act of legisla- not speak, read, or write English, were Police to provide security beyond tion that I will perform in my long ten- told by the Government agent that the Court grounds appears at 40 U.S.C. ure in the Senate. I want to offer treaty only required them to notify the 13n(a)(2), and was first established by today, and I am very hopeful that even Government agent when they left the Congress in 1982. Congress has periodi- though this is in the closing hours that reservation to fish on the Columbia. cally extended that authority, which is this will rise above any other kind of They were never told that the treaty now slated to expire on December 29, considerations because it offers an op- abrogated their cherished right to fish 1996. See 40 U.S.C. 13n(c). portunity for all of us to correct a his- at Celilo Falls and other traditional In the past 14 years, there has not toric wrong. One hundred and forty-one places outside the reservation. How do been an interruption of the Supreme years ago, at the request of the U.S. we know this? Historical documents. Court Police’s authority to provide Government, the Tribes of Middle Or- Historical documents, including subse- such protection. Congress originally egon gathered near The Dalles on the quent U.S. Justice Department affida- provided that the authority would ter- Columbia River to negotiate and sign a vits taken from Warm Springs Indians minate in December 1985, and exten- treaty that would forever change the present at both the 1855 and 1865 treaty sions have been provided ever since. In lives of their people. On June 25, 1855, signings, show that the Indian signato- 1985, authority was extended through after many days of extended discus- ries understood the agreement as pro- December 26, 1986; in 1986, it was ex- sions and negotiations with Joel Palm- viding a pass system identifying Indi- tended through December 29, 1990; in er, Superintendent of Indian Affairs for ans leaving the reservation to exercise 1990, it was extended through December the Oregon Territory, the treaty be- off-reservation rights. They understood 29, 1993; and in 1993, it was extended tween the Tribes of Middle Oregon and this pass system as a means of distin- through December 29, 1996. the United States was signed. It was guishing the friendly treaty tribes September 20, 1996 CONGRESSIONAL RECORD — SENATE S11093 from the hostile Indians who were raid- port, dated August 15, 1884, Warm recognized 1855 rights of the Confed- ing in the area. It was never under- Springs Agent Alonzo Gesner finds: erated Tribes of the Warm Springs Res- stood or explained that the treaty re- on record what purports to be a supple- ervation. This legislation is more of a linquished all off-reservation rights, or mentary treaty . . . which is beyond a doubt housekeeping measure—albeit house- that Indians could not leave the res- a forgery on the part of the Government in keeping that will help the honor of the ervation without the Superintendent’s so far as it relates to the Indians ever relin- United States and dignity of a long- written consent. quishing their right to the fisheries on the wronged people. According to the affidavits, Hunting- Columbia River; and as a matter of justice to It is my understanding that both the ton secured the signatures of members the Indians, as well as to the Government, chairman and ranking member of the the matter should be made right and satis- of the tribes during a stay on the res- factory to the Indians as soon as possible. Indian Affairs Committee are support- ervation that lasted less than 24 hours. . . . All the Indians say emphatically that ive of this proposal. The same is true It is difficult to conceive that the when the treaty was read to them no men- for the administration. On that basis, I tribes, in less than 1 day, would agree tion was made of their giving up the right to hope this matter can be addressed in an to imprison themselves on their res- fish. All that was said was that they were to expeditious manner. ervation and relinquish the off-reserva- agree not to leave the reservation without tion rights that they exhaustively ne- getting passes, . . . The fact is they were By Mr. BREAUX (for himself, Mr. gotiated in 1855, cutting themselves off wilfully and wickedly deceived. FAIRCLOTH, Mr. HEFLIN, Mr. from their principle source of food. As In 1886, Warm Springs Agent Jason INHOFE, Mr. HELMS, and Mr. the affidavit of Albert Kuck-up states: Wheeler reported to the Commissioner MACK): S. 2103. A bill to amend title 17, Unit- I am sure that the Indians would have posi- of the Indian Affairs in Washington, tively refused to sign any paper, for Hunting- DC, regarding the 1865 treaty that ‘‘if ed States Code, to protect vessel hull ton or anyone else, that would have taken ever a fraud was villainously per- designs against unauthorized duplica- from them their fishing rights or fishery. petrated on any set of people, red or tion, and for other purposes; to the Fish is to us what bread is to the white man. white, this was, in my opinion, cer- Committee on the Judiciary. Affidavits and other historic docu- tainly one of the most glaring.’’ In THE BOAT PROTECTION ACT OF 1996 ments show that Huntington then de- 1887, Commissioner of Indian Affairs ∑ Mr. BREAUX. Mr. President, today I parted for Klamath, OR, never to re- J.D.C. Atkins, in his annual report to am introducing a bill, entitled the Boat turn. He even took with him the two the Secretary of the Interior, cited a Protection Act of 1996. The bill will at- wagons and teams he had promised to recent War Department report by Gen. tempt to stop an increasingly common leave with the Indians of the Warm John Gibbons that: problem facing America’s marine man- Springs Reservation. called attention to the oft-repeated, and I ufacturers—the unauthorized copying Almost immediately following the may say very generally credited, story of of boat hull designs. Such piracy signing of the 1865 treaty, the Indians fraud in the treaty of 1865, whereby the threatens the integrity of the U.S. ma- from the Warm Springs Reservation Warm Springs Indians were, it is claimed, rine manufacturing industry and the continued to travel to the Columbia cheated out of their fishery by the Hunting- safety of American boaters. River to fish from their historic fishing ton treaty. Salmon, A boat manufacturer invests signifi- sites. Warm Springs Agency agent he wrote: cant resources in creating a safe, struc- John Smith wrote in his June 26, 1867, is material and of grave importance to them. turally sound, high performance boat report to Superintendent Huntington It is their principal source of subsistence, hull design from which a line of vessels that ‘‘as early as the 16th of May, 1866, and they never intended to part with it, but can be manufactured. Standard prac- were cheated and swindled out of it by a cun- tice calls for manufacturing engineers the Indians began to visit the salmon ning and unprincipled U.S. official. I would fisheries in large numbers.’’ Reports by to create a hull model, or plug, from recommend your early attention to the mat- which they cast a mold. This mold is Agent Smith in subsequent years fur- ter upon the convening of Congress. ther document continued fishing on a then used for mass production of boat Mr. President, those are the words of hulls. Unfortunately, those intent on substantial scale, and in a July 1, 1869, representatives of the American Gov- letter from Agent Smith to Super- pirating such a design can simply use a ernment assessing this kind of a fraud finished boat hull to develop their own intendent A.B. Meacham—who replaced perpetrated upon the Warm Spring In- Huntington on May 15, 1869—Smith mold. This copied mold can then be dians in the 1870’s and 1880’s. used to manufacture boat hulls iden- noted ‘‘the Indians said they did not Mr. President, that report, along understand the terms of the [1865] trea- tical in appearance to the original line, with the many others, along with ap- and at a cost well below that incurred ty’’, that ‘‘they claim that it was not peals made by the tribes, apparently properly interpreted to them’’, and by the original designer. fell on deaf ears. But while the 1865 This so-called hull splashing is a sig- that ‘‘they were led to believe the right treaty remains on the books, the Unit- nificant problem for consumers, manu- of taking fish, hunting game, etc., ed States has never enforced it and the facturers, and boat design firms. Amer- would still be given them because Tribes of the Warm Springs Reserva- ican consumers are defrauded in the salmon was such an essential part of tion have continued the uninterrupted sense that they do not benefit from the their subsistence.’’ That same year, in exercise of their 1855 off-reservation many aspects of the original hull de- a September 18, 1869 report regarding fishing, hunting, gathering, and graz- sign that contribute to its structural the Warm Springs Reservation to Su- ing rights. The 1865 treaty has been ef- integrity and safety, and they are not perintendent Meacham, U.S. Army fectually rendered null, disregarded by aware that the boat they have pur- Captain W.M. Mitchell wrote, the tribes and the United States as a chased has been copied from an exist- I also have to report, for the consideration fraud from virtually the time it was ing design. Moreover, if original manu- of the proper authorities, that the Indians signed. It is doubtful that the 1865 trea- facturers are undersold by these copies, unanimously disclaim any knowledge what- ty has any legal validity. Moreover, in ever of having sold their right to the fishery they may no longer be willing to invest at The Dalles of the Columbia, as stated in the intervening years, the Federal in new, innovative boat designs—boat the amended treaty of 1865, and express a de- courts and the U.S. Congress have re- designs that could provide safer, less sire to have a small delegation of their head peatedly recognized the Warm Springs expensive, quality watercraft for con- men visit their Great White Father in Wash- Tribes’ rights secured under the 1855 sumers. ington, and to him present their cause of Treaty. A number of States have enacted complaint. Mr. President, the legislation I intro- anti-boat-hull-copying, or plug mold, Official U.S. Government reports in duce today declares the fraudulent 1865 statutes to address this problem of hull subsequent years continue to note the treaty to be null and void. At the re- splashing. These States include my Warm Springs Reservation Indian’s quest of the Warm Springs Tribes, my State of Louisiana, as well as Alabama, strong objection to the 1865 treaty, bill will at long last correct this histor- California, Florida, Indiana, Kansas, their continued and uninterrupted reli- ical travesty. I wish to note that, other Maryland, Mississippi, Missouri, Ten- ance on their fisheries on the Columbia than formally nullifying what for nessee, and Wisconsin. However, a deci- River, and the fraudulent nature of the many years has been a nullity in prac- sion by the U.S. Supreme Court in Bo- 1865 treaty signing. In the annual re- tice, this legislation will not alter the nito Boats versus Thundercraft Boats, S11094 CONGRESSIONAL RECORD — SENATE September 20, 1996 Inc., invalidated these State statutes in service. Over the next several years, ADDITIONAL COSPONSORS Metro will construct another 13.5 miles on the basis of Federal patent laws pre- S. 968 emption. The legislation I am intro- of the rail system, with the planned At the request of Mr. MCCONNELL, 103-mile rail system being completed in ducing today would address the con- the name of the Senator from Hawaii cerns of hull splashing without at- 2001. [Mr. INOUYE] was added as a cosponsor tempting to amend the patent are The Washington Metropolitan Area Transit Authority Compact has been of S. 968, a bill to require the Secretary copyright laws. of the Interior to prohibit the import, Such nonintrusive initiatives are not amended five times since its inception. export, sale, purchase, and possession new to Congress. In 1984, Congress The amendments that are before the of bear viscera or products that con- acted to protect the unique nature of Committee are a sixth set of amend- tain or claim to contain bear viscera, design work when it passed the Semi- ments that will enable the transit and for other purposes. conductor Chip Protection Act. This agency to perform its functions more act was designed to protect the mask efficiently and cost effectively. S. 1832 works of semiconductor chips, which The proposed amendments primarily, At the request of Ms. MIKULSKI, the are essentially the molds form which and most importantly, modify the name of the Senator from Maryland the chips are made, against unauthor- Authority’s procurement practices to [Mr. SARBANES] was added as a cospon- ized duplication. I believe that the ap- conform with recently enacted federal sor of S. 1832, a bill to amend title II of proach Congress took in that legisla- procurement reforms. Currently, the the Social Security Act to provide that tion would also be sufficient to protect Authority must use a sealed bid proc- a monthly insurance benefit there- ess in purchasing capital items. As you boat hull designs. under shall be paid for the month in The Boat Protection Act of 1996 can imagine, the Authority conducts which the recipient dies, subject to a would work in concert with current extensive procurement in constructing reduction of 50 percent if the recipient Federal law to protect American ma- the rail system. The proposed amend- dies during the first 15 days of such rine manufacturers from harmful and ments will enable Metro to engage in month, and for other purposes. competitive negotiations on capital unfair competition. I am introducing S. 2000 contracts, as an alternative to the this bill today as a demonstration of At the request of Mr. THOMAS, his sealed bid process. This amendment is my commitment to the immediate res- name was added as a cosponsor of S. particularly important as a means for olution of this problem, and since en- 2000, a bill to make certain laws appli- actment of this legislation during the the Authority to reduce its costs. The transit agency will be better able cable to the Executive Office of the remaining days of the 104th Congress is to define selection criteria and elimi- President, and for other purposes. unlikely, I intend to pursue this issue nate costly items from bid proposals. If At the request of Mr. COATS, the as priority in the 105th Congress. a prospective contractor recommends a names of the Senator from South Caro- I urge my colleagues to support the change in a bid specification, under the lina [Mr. THURMOND], the Senator from Boat Protection Act of 1996 and to join proposed amendment that Authority Connecticut [Mr. LIEBERMAN], and the in this effort to protect the American will be able to take advantage of this Senator from Alaska [Mr. MURKOWSKI] public and the marine manufacturing cost savings. were added as cosponsors of S. 2000, community from the assault on Amer- The proposed amendments will also supra. ican ingenuity caused by hull splash- allow the Authority to raise its sim- S. 2030 ing.∑ plified purchasing ceiling from $10,000 At the request of Mr. LOTT, the name By Mr. WARNER (for himself, Mr. ROBB, to the federal level. The Federal Tran- of the Senator from New Hampshire Mr. SARBANES and Ms. MIKULSKI): sit Administration, part of the U.S. De- [Mr. SMITH] was added as a cosponsor S.J. Res. 62. A joint resolution grant- partment of Transportation, has en- of S. 2030, a bill to establish nationally ing the consent of the Congress to couraged states and localities to raise uniform requirements regarding the ti- amendments made by Maryland, Vir- the dollar threshold for small pur- tling and registration of salvage, non- ginia, and the District of Columbia to chases to $100,000 to come into con- repairable, and rebuilt vehicles, and for the Washington Metropolitan Area formity with Federal procedures. The other purposes. Transit Regulation Compact; to the Authority and the jurisdictions it Committee on the Judiciary. S. 2075 serves strongly endorse this proposed At the request of Mr. CHAFEE, the THE WASHINGTON METROPOLITAN AREA TRANSIT amendment, allowing the Authority to REGULATION COMPACT AMENDMENTS ACT OF 1996 name of the Senator from Tennessee conduct its business in an efficient, [Mr. FRIST] was added as a cosponsor of ∑ Mr. WARNER. Mr. President, I am business-like manner, rather than introducing legislation today which S. 2075, a bill to amend title XVIII of being required to publish voluminous the Social Security Act to provide ad- would grant the consent of Congress to bid specifications, even on small pur- amendments made by the Common- ditional consumer protections for Med- chases. Under this revision, WMATA icare supplemental insurance. wealth of Virginia, the State of Mary- will be able to publish a simplified bid land, and the District of Columbia to specification and accept price SENATE CONCURRENT RESOLUTION 71 the Washington Metropolitan Area quotations, thus streamlining its pro- At the request of Mr. NICKLES, the Transit Regulation Compact. The com- curement procedures. Given inflation name of the Senator from Pennsylva- pact amendments that are being pro- rates over the past several years, this nia [Mr. SPECTER] was added as a co- posed today govern how the Washing- amendment provides a much better sponsor of Senate Concurrent Resolu- ton Metropolitan Area Transit Author- definition of ‘‘small purchase’’ for a tion 71, a concurrent resolution ex- ity (WMATA), better known as government agency. pressing the sense of the Senate with ‘‘Metro’’, conducts its daily operations Finally, there are several administra- respect to the persecution of Christians as a transit provider. tive matters addressed in the proposed worldwide. The Washington Metropolitan Area compact amendments that are cer- f Transit Authority was established in tainly of a housekeeping nature. These 1967 by Congress when it consented to amendments are largely codifications AMENDMENTS SUBMITTED an Interstate Compact created by Vir- and clarifications of current practices. ginia, Maryland, and the District of Co- They relate to, for example, the pri- lumbia. The authority was established macy of D.C. Superior Court in cases THE MARITIME SECURITY ACT OF to plan, finance, construct and operate involving WMATA, and the definition 1996 a comprehensive public transit system of a quorum at WMATA Board meet- for the Metropolitan Washington area. ings. Today, Metro operates 1,439 buses and This joint resolution is of the utmost GRASSLEY AMENDMENTS NOS. 764 rail cars serving the entire national importance to the Washington Metro- 5393–5395 capital region. The Metrorail System, politan Area Transit Authority. It goes Mr. GRASSLEY proposed three sometimes called ‘‘America’s Subway’’ straight to the heart of how the Tran- amendments to the bill (H.R. 1350) to has 89 miles and 74 stations currently sit Authority does business.∑ amend the Merchant Marine Act, 1936 September 20, 1996 CONGRESSIONAL RECORD — SENATE S11095 to revitalize the U.S.-flag merchant AMENDMENT NO. 5394 tion on October 19, 1995, at 60 Fed. Reg. 54144, marine, and for other purposes; as fol- On page 16, between lines 23 and 24, insert the Secretary of Transportation shall ensure lows: the following: that, to the maximum extend practicable, ‘‘(q) PROHIBITION ON THE USE OF FUNDS FOR United States-flag vessels are called into AMENDMENT NO. 5393 LOBBYING OR PUBLIC EDUCATION.— service to satisfy Department of Defense On page 23, after line 25, insert the follow- ‘‘(1) IN GENERAL.—An operating agreement contingency sealift requirements under a ing: under this subtitle shall provide that no pay- Stage III activation of the Agreement (as de- ‘‘(7) FAIR AND REASONABLE COMPENSATION.— ment received by an owner or operator under scribed in the notice) before foreign flag ves- The term ‘fair and reasonable compensation’ the operating agreement may be used for the sels are used to satisfy any such require- means that charges for transportation pro- purpose of lobbying or public education. ments. vided by a vessel under section 653 do not ex- ‘‘(2) DEFINITIONS.—For purposes of this sub- (b) LEVEL OF PARTICIPATION.— ceed by more than 6 percent the lowest section, the terms ‘lobbying’ and ‘public edu- (1) IN GENERAL.—Notwithstanding any charges for the transportation of similar vol- cation’ shall have the meanings provided other provision of law, United States-flag umes of containerized or break bulk cargoes those terms by the Secretary of Transpor- vessels that are the subject to a payment or for private persons. tation.’’ subsidy under title VI of the Merchant Ma- At the end of the bill, insert the following: On page 18, between lines 21 and 22, insert rine Act, 1936, as amended by section 2 of SEC. 18. MERCHANT MARINE ACT, 1936. the following: this Act, shall be required to participate Section 901(b) of the Merchant Marine Act, ‘‘(4) PROHIBITION ON THE USE OF FUNDS FOR under the Voluntary Intermodal Sealift 1936 (46 U.S.C. App. 1241(b)) is amended by LOBBYING OR PUBLIC EDUCATION.— Agreement in accordance with this section. adding at the end the following new para- ‘‘(A) IN GENERAL.—An Emergency Pre- (2) STAGE III LEVEL OF PARTICIPANTS.—In a graph: paredness Agreement under this section Stage III activation of the Voluntary Inter- ‘‘(3) For the purposes of this subsection, shall provide that no payment received by a modal Sealift Agreement, a carrier shall the Secretary of Transportation shall con- contractor under this section may be used make available for satisfying Department of sider the rates of privately owned United for the purpose of lobbying or public edu- Defense contingency sealift requirements 100 States-flag commercial vessels that are cation. percent of the carrier’s United States-flag available to an agency to transport cargo ‘‘(B) DEFINITIONS.—For purposes of this vessels that are subject to a payment or sub- pursuant to paragraph (1) not to be fair and paragraph, the terms ‘lobbying’ and ‘public sidy referred to in paragraph (1). reasonable if, at the time the agency ar- education’ shall have the meanings provided (3) STAGE I OR II LEVEL OF PARTICIPATION.— ranges for the transportation of the cargo, those terms by the Secretary of Transpor- In a Stage I or II activation of the Voluntary the lowest acceptable rate offered for the tation.’’ Intermodal Sealift Agreement, a carrier transportation by a privately owned United On page 26, between lines 17 and 18, insert shall make available for satisfying Depart- States-flag commercial vessel exceeds the the following new subsection: ment of Defense contingency sealift require- lowest acceptable rate offered for the trans- ‘‘(c) PROHIBITION OF THE USE OF FUNDS FOR ments the maximum percentage practicable portation by a foreign-flag commercial ves- LOBBYING OR PUBLIC EDUCATION.—Section 603 for the carrier’s United States-flag vessels sel by more than 6 percent.’’. of the Merchant Marine Act, 1936 (46 U.S.C. that are subject to a payment or subsidy re- SEC. 19. MILITARY SUPPLIES. App. 1173) is amended by adding at the end ferred to in paragraph (1). (c) REQUIREMENT FOR CERTAIN STAGE III (a) IN GENERAL.—Section 2631 of title 10, the following new subsection: United States Code, is amended— ‘‘ ‘(g) PROHIBITION ON THE USE OF FUNDS FOR PARTICIPANTS.— (1) is subsection (a)— LOBBYING OR PUBLIC EDUCATION.— (1) REQUIREMENT.—Notwithstanding any (A) in the second sentence, by striking ‘‘is ‘‘ ‘(1) IN GENERAL.—No subsidy received by other provision of law, in the provision of excessive or otherwise unreasonable’’ and in- a contractor under a contract under this sec- sealift services in accordance with a Stage serting ‘‘is not fair and reasonable’’; and tion may be used for the purpose of lobbying III activation of the Voluntary Intermodal (B) in the third sentence, by striking ‘‘by or public education. Sealift Agreement, a United States-flag ves- those vessels may not be higher than the ‘‘ ‘(2) DEFINITIONS.—For purposes of this sel referred to in subsection (b) shall be oper- charges made for transporting like goods for subsection, the terms, ‘‘lobbying’’ and ‘‘pub- ated by a crew composed entirely of United private persons’’ and inserting ‘‘by those ves- lic education’’ shall have the meanings pro- States citizens— (A) whenever the vessel is in a combat sels as containerized or break bulk cargoes vided those terms by the Secretary of Trans- zone; and may not be higher than the charges made for portation’.’’ (B) during any other activity under Stage transporting similar volumes of container- On page 16, between lines 23 and 24, insert III of such agreement. ized or break bulk cargoes for private per- the following: (2) PROHIBITION.—A carrier may not use sons’’. (2) in subsection (b)— ‘‘(q) PROHIBITION ON THE USE OF FUNDS TO any vessel other than a United States-flag (A) by redesignating paragraph (3) as para- INFLUENCE AN ELECTION.—An operating vessel operated by a crew composed entirely graph (4); and agreement under this subtitle shall provide of citizens of the United States to provide (B) by inserting after paragraph (2) the fol- that no payment received by an owner or op- any part of sealift services that the carrier is lowing new paragraph: erator under the operating agreement may obligated to provide under a Stage III activa- ‘‘(3) For purposes of this section, the Presi- be used for the purpose of influencing an tion of the Voluntary Intermodal Sealift dent shall consider the rates charged by a election.’’. Agreement. vessel referred to in this section not to be On page 18, between lines 21 and 22, insert (d) CONSULTATION.—The Administrator of fair and reasonable if, at the time the ar- the following: the Maritime Administration, in consulta- rangement is made for the transportation by ‘‘(4) PROHIBITION ON THE USE OF FUNDS TO tion with the Secretary of Defense, shall es- sea of supplies referred to in subsection (a), INFLUENCE AN ELECTION.—An Emergency Pre- tablish procedures to ensure that the re- the lowest acceptable freight offered for the paredness Agreement under this section quirements of this section are met. transportation by any such vessel exceeds by shall provide that no payment received by a (e) DEFINITIONS.—For purposes of this sub- more than 6 percent the lowest acceptable contractor under this section may be used section, the following definitions shall apply: freight charged by a foreign-flag commercial for the purpose of influencing an election.’’. On page 26, between lines 17 and 18, insert (1) COMBAT ZONE.—The term ‘‘combat vessel for transporting similar volumes of zone’’ shall have the meaning provided that containerized or break bulk cargoes between the following: ‘‘(c) PROHIBITION ON THE USE OF FUNDS TO term in section 112(c)(2) of the Internal Reve- the same geographic trade areas of origin nue Code of 1986. and destination.’’. INFLUENCE AN ELECTION.—Section 603 of the (2) NATIONAL EMERGENCY.—The term ‘‘na- (b) MOTOR VEHICLES FOR MEMBER ON Merchant Marine Act, 1936 (46 U.S.C. App. 1173) is amended by adding at the end the fol- tional emergency’’ means a general declara- CHARGE OF PERMANENT STATION.—Section tion of emergency with respect to the na- 2634 of title 10, United States Code, is amend- lowing: ‘‘ ‘(g) PROHIBITION ON THE USE OF FUNDS TO tional defense made by the President or by ed— the Congress. (1) in subsection (a)(3), by inserting ‘‘or if INFLUENCE AN ELECTION.—No subsidy re- the freight charged by a vessel, referred to in ceived by a contractor under a contract clause (1) or (2) is not fair and reasonable’’ under this section may be used for the pur- HARKIN AMENDMENT NO. 5396 pose of influencing an election.’’. after ‘‘available’’; and Mr. INOUYE (for Mr. HARKIN) pro- (2) by adding at the end of subsection (b) posed an amendment to amendment the following new clause: AMENDMENT NO. 5395 No. 5393 proposed by Mr. GRASSLEY to ‘‘(3) The term ‘fair and reasonable’ means At the appropriate place, insert the follow- with respect to the transportation of a ing new section: the bill, H.R. 1350, supra; as follows: motor vehicle by a vessel referred to in SEC . IMPLEMENTATION OF VOLUNTARY INTER- In lieu of the matter proposed to be in- clause (1) or (2) of subsection (a) that the MODAL SEALIFT AGREEMENT. serted, insert the following: freight charged for such transportation does (a) IN GENERAL.—In any national emer- SEC. . OCEAN FREIGHT CHARGES. not exceed, by more than 6 percent, the low- gency covered under the Voluntary Inter- (a) IN GENERAL.—Notwithstanding any est freight charged for such transportation modal Sealift Agreement described in the other provision of law, the Secretary of by a vessel referred to in clause (3).’’. notice issued by the Maritime Administra- Transportation shall finance any ocean S11096 CONGRESSIONAL RECORD — SENATE September 20, 1996 freight charges for food or export assistance physicians and where appropriate, physician ‘‘(ii) injury prevention programs, including provided by the Federal Government for any assistants, nurse practitioners, and nurse prevention of exposure to unsafe levels of ag- fiscal year, to the extent that such charges midwives; ricultural chemicals including pesticides. are greater than would otherwise be the case ‘‘(II) diagnostic laboratory and radiologic ‘‘(3) MEDICALLY UNDERSERVED POPU- because of the application of a requirement services; LATIONS.— that agricultural commodities be trans- ‘‘(III) preventive health services, includ- ‘‘(A) IN GENERAL.—The term ‘medically un- ported in United States-flag vessels. ing— derserved population’ means the population (b) APPLICATION OF OTHER ACTS.—Sub- ‘‘(aa) prenatal and perinatal services; of an urban or rural area designated by the sections (c), (d), and (e) of section 901d of the ‘‘(bb) screening for breast and cervical can- Secretary as an area with a shortage of per- Merchant Marine Act, 1936 (46 U.S.C. App. cer; sonal health services or a population group 1241h) shall apply to reimbursements re- ‘‘(cc) well-child services; designated by the Secretary as having a quired under subsection (a). ‘‘(dd) immunizations against vaccine-pre- shortage of such services. (c) DEFINITIONS.—As used in this section: ventable diseases; ‘‘(B) CRITERIA.—In carrying out subpara- (1) AGRICULTURAL COMMODITY.—Ther term ‘‘(ee) screenings for elevated blood lead graph (A), the Secretary shall prescribe cri- ‘‘agricultural commodity’’ has the same levels, communicable diseases, and choles- teria for determining the specific shortages meaning given to such term by section 402 of terol; of personal health services of an area or pop- the Agricultural Trade Development and As- ‘‘(ff) pediatric eye, ear, and dental ulation group. Such criteria shall— sistance Act of 1954. screenings to determine the need for vision ‘‘(i) take into account comments received (2) FOOD ASSISTANCE.—The term ‘‘food as- and hearing correction and dental care; by the Secretary from the chief executive of- sistance’’ means any export activity de- ‘‘(gg) voluntary family planning services; ficer of a State and local officials in a State; scribed in section 901b(b) of the Merchant and and Marine Act, 1936 (46 U.S.C. App. 1241f(b)). ‘‘(ii) include factors indicative of the ‘‘(hh) preventive dental services; health status of a population group or resi- f ‘‘(IV) emergency medical services; and dents of an area, the ability of the residents ‘‘(V) pharmaceutical services as may be ap- of an area or of a population group to pay for THE HEALTH CENTERS propriate for particular centers; health services and their accessibility to CONSOLIDATION ACT OF 1996 ‘‘(ii) referrals to providers of medical serv- them, and the availability of health profes- ices and other health-related services (in- sionals to residents of an area or to a popu- cluding substance abuse and mental health lation group. KASSABAUM AMENDMENT NO. 5397 services); ‘‘(C) LIMITATION.—The Secretary may not ‘‘(iii) patient case management services Mr. LOTT (for Mrs. KASSEBAUM) pro- designate a medically underserved popu- (including counseling, referral, and follow-up lation in a State or terminate the designa- posed an amendment to the bill (S. services) and other services designed to as- 1044) to amend title III of the Public tion of such a population unless, prior to sist health center patients in establishing such designation or termination, the Sec- Health Service Act to consolidate and eligibility for and gaining access to Federal, reauthorize provisions relating to retary provides reasonable notice and oppor- State, and local programs that provide or fi- tunity for comment and consults with— health centers, and for other purposes; nancially support the provision of medical, ‘‘(i) the chief executive officer of such as follows: social, educational, or other related services; State; Strike out all after the enacting clause and ‘‘(iv) services that enable individuals to ‘‘(ii) local officials in such State; and insert in lieu thereof the following: use the services of the health center (includ- ‘‘(iii) the organization, if any, which rep- ing outreach and transportation services SECTION 1. SHORT TITLE. resents a majority of health centers in such and, if a substantial number of the individ- This Act may be cited as the ‘‘Health Cen- State. uals in the population served by a center are ters Consolidation Act of 1996’’. ‘‘(D) PERMISSIBLE DESIGNATION.—The Sec- of limited English-speaking ability, the serv- retary may designate a medically under- SEC. 2. CONSOLIDATION AND REAUTHORIZATION ices of appropriate personnel fluent in the served population that does not meet the cri- OF PROVISIONS. language spoken by a predominant number Subpart I of part D of title III of the Public teria established under subparagraph (B) if of such individuals); and the chief executive officer of the State in Health Service Act (42 U.S.C. 254b et seq.) is ‘‘(v) education of patients and the general amended to read as follows: which such population is located and local population served by the health center re- officials of such State recommend the des- ‘‘Subpart I—Health Centers garding the availability and proper use of ignation of such population based on unusual ‘‘SEC. 330. HEALTH CENTERS. health services. local conditions which are a barrier to access ‘‘(a) DEFINITION OF HEALTH CENTER.— ‘‘(B) EXCEPTION.—With respect to a health to or the availability of personal health serv- ‘‘(1) IN GENERAL.—For purposes of this sec- center that receives a grant only under sub- ices. section (g), the Secretary, upon a showing of tion, the term ‘health center’ means an en- ‘‘(c) PLANNING GRANTS.— good cause, shall— tity that serves a population that is medi- ‘‘(1) IN GENERAL.— ‘‘(i) waive the requirement that the center cally underserved, or a special medically un- ‘‘(A) CENTERS.—The Secretary may make derserved population comprised of migratory provide all required primary health services grants to public and nonprofit private enti- and seasonal agricultural workers, the home- under this paragraph; and ties for projects to plan and develop health less, and residents of public housing, by pro- ‘‘(ii) approve, as appropriate, the provision centers which will serve medically under- viding, either through the staff and support- of certain required primary health services served populations. A project for which a ing resources of the center or through con- only during certain periods of the year. grant may be made under this subsection tracts or cooperative arrangements— ‘‘(2) ADDITIONAL HEALTH SERVICES.—The may include the cost of the acquisition and ‘‘(A) required primary health services (as term ‘additional health services’ means serv- lease of buildings and equipment (including defined in subsection (b)(1)); and ices that are not included as required pri- the costs of amortizing the principal of, and ‘‘(B) as may be appropriate for particular mary health services and that are appro- paying the interest on, loans) and shall in- centers, additional health services (as de- priate to meet the health needs of the popu- clude— fined in subsection (b)(2)) necessary for the lation served by the health center involved. ‘‘(i) an assessment of the need that the adequate support of the primary health serv- Such term may include— population proposed to be served by the ices required under subparagraph (A); ‘‘(A) environmental health services, in- health center for which the project is under- for all residents of the area served by the cluding— taken has for required primary health serv- center (hereafter referred to in this section ‘‘(i) the detection and alleviation of ices and additional health services; as the ‘catchment area’). unhealthful conditions associated with water ‘‘(ii) the design of a health center program ‘‘(2) LIMITATION.—The requirement in para- supply; for such population based on such assess- graph (1) to provide services for all residents ‘‘(ii) sewage treatment; ment; within a catchment area shall not apply in ‘‘(iii) solid waste disposal; ‘‘(iii) efforts to secure, within the proposed the case of a health center receiving a grant ‘‘(iv) rodent and parasitic infestation; catchment area of such center, financial and only under subsection (g), (h), or (i). ‘‘(v) field sanitation; professional assistance and support for the ‘‘(b) DEFINITIONS.—For purposes of this sec- ‘‘(vi) housing; and project; tion: ‘‘(vii) other environmental factors related ‘‘(iv) initiation and encouragement of con- ‘‘(1) REQUIRED PRIMARY HEALTH SERVICES.— to health; and tinuing community involvement in the de- ‘‘(A) IN GENERAL.—The term ‘required pri- ‘‘(B) in the case of health centers receiving velopment and operation of the project; and mary health services’ means— grants under subsection (g), special occupa- ‘‘(v) proposed linkages between the center ‘‘(i) basic health services which, for pur- tion-related health services for migratory and other appropriate provider entities, such poses of this section, shall consist of— and seasonal agricultural workers, includ- as health departments, local hospitals, and ‘‘(I) health services related to family medi- ing— rural health clinics, to provide better coordi- cine, internal medicine, pediatrics, obstet- ‘‘(i) screening for and control of infectious nated, higher quality, and more cost-effec- rics, or gynecology that are furnished by diseases, including parasitic diseases; and tive health care services. September 20, 1996 CONGRESSIONAL RECORD — SENATE S11097

‘‘(B) COMPREHENSIVE SERVICE DELIVERY cluding a determination that the rate of in- ‘‘(A) IN GENERAL.—Subject to the require- NETWORKS AND PLANS.—The Secretary may terest does not exceed such percent per ments of the Credit Reform Act of 1990 (2 make grants to health centers that receive annum on the principal obligation outstand- U.S.C. 661 et seq.), the Secretary may take assistance under this section to enable the ing as the Secretary determines to be rea- such action as may be necessary to prevent centers to plan and develop a network or sonable, taking into account the range of in- a default on a loan guaranteed under this plan for the provision of health services, terest rates prevailing in the private market subsection, including the waiver of regu- which may include the provision of health for similar loans and the risks assumed by latory conditions, deferral of loan payments, services on a prepaid basis or through an- the United States, except that the Secretary renegotiation of loans, and the expenditure other managed care arrangement, to some or may not require as security any center asset of funds for technical and consultative as- to all of the individuals which the centers that is, or may be, needed by the center or sistance, for the temporary payment of the serve. Such a grant may only be made for centers involved to provide health services; interest and principal on such a loan, and for such a center if— ‘‘(ii) the loan would not be available on other purposes. Any such expenditure made ‘‘(i) the center has received grants under reasonable terms and conditions without the under the preceding sentence on behalf of a subsection (e)(1)(A) for at least 2 consecutive guarantee under this subsection; and health center or centers shall be made under years preceding the year of the grant under ‘‘(iii) amounts appropriated for the pro- such terms and conditions as the Secretary this subparagraph or has otherwise dem- gram under this subsection are sufficient to shall prescribe, including the implementa- onstrated, as required by the Secretary, that provide loan guarantees under this sub- tion of such organizational, operational, and such center has been providing primary care section. financial reforms as the Secretary deter- services for at least the 2 consecutive years ‘‘(B) RECOVERY OF PAYMENTS.— mines are appropriate and the disclosure of immediately preceding such year; and ‘‘(i) IN GENERAL.—The United States shall such financial or other information as the ‘‘(ii) the center provides assurances satis- be entitled to recover from the applicant for Secretary may require to determine the ex- factory to the Secretary that the provision a loan guarantee under this subsection the tent of the implementation of such reforms. of such services on a prepaid basis, or under amount of any payment made pursuant to ‘‘(B) FORECLOSURE.—The Secretary may another managed care arrangement, will not such guarantee, unless the Secretary for take such action, consistent with State law result in the diminution of the level or qual- good cause waives such right of recovery respecting foreclosure procedures and, with ity of health services provided to the medi- (subject to appropriations remaining avail- respect to reserves required for furnishing cally underserved population served prior to able to permit such a waiver) and, upon mak- services on a prepaid basis, subject to the the grant under this subparagraph. ing any such payment, the United States consent of the affected States, as the Sec- shall be subrogated to all of the rights of the retary determines appropriate to protect the Any such grant may include the acquisition recipient of the payments with respect to and lease of buildings and equipment which interest of the United States in the event of which the guarantee was made. Amounts re- a default on a loan guaranteed under this may include data and information systems covered under this clause shall be credited as (including the costs of amortizing the prin- subsection, except that the Secretary may reimbursements to the financing account of only foreclose on assets offered as security cipal of, and paying the interest on, loans), the program. and providing training and technical assist- (if any) in accordance with paragraph ‘‘(ii) MODIFICATION OF TERMS AND CONDI- (2)(A)(i). ance related to the provision of health serv- TIONS.—To the extent permitted by clause ‘‘(5) LIMITATION.—Not more than one loan ices on a prepaid basis or under another (iii) and subject to the requirements of sec- guarantee may be made under this sub- managed care arrangement, and for other tion 504(e) of the Credit Reform Act of 1990 (2 section for the same network or plan, except purposes that promote the development of U.S.C. 661c(e)), any terms and conditions ap- that upon a showing of good cause the Sec- managed care networks and plans. plicable to a loan guarantee under this sub- retary may make additional loan guaran- ‘‘(2) LIMITATION.—Not more than two section (including terms and conditions im- tees. grants may be made under this subsection posed under clause (iv)) may be modified or ‘‘(6) ANNUAL REPORT.—Not later than April for the same project, except that upon a waived by the Secretary to the extent the 1, 1998, and each April 1 thereafter, the Sec- showing of good cause, the Secretary may Secretary determines it to be consistent retary shall prepare and submit to the appro- make additional grant awards. with the financial interest of the United priate committees of Congress a report con- ‘‘(d) MANAGED CARE LOAN GUARANTEE PRO- States. cerning loan guarantees provided under this GRAM.— ‘‘(iii) INCONTESTABILITY.—Any loan guaran- ‘‘(1) ESTABLISHMENT.— tee made by the Secretary under this sub- subsection. Such report shall include— ‘‘(A) IN GENERAL.—The Secretary shall es- section shall be incontestable— ‘‘(A) a description of the number, amount, tablish a program under which the Secretary ‘‘(I) in the hands of an applicant on whose and use of funds received under each loan may, in accordance with this subsection and behalf such guarantee is made unless the ap- guarantee provided under this subsection; to the extent that appropriations are pro- plicant engaged in fraud or misrepresenta- ‘‘(B) a description of any defaults with re- vided in advance for such program, guaran- tion in securing such guarantee; and spect to such loans and an analysis of the tee the principal and interest on loans made ‘‘(II) as to any person (or successor in in- reasons for such defaults, if any; and by non-Federal lenders to health centers terest) who makes or contracts to make a ‘‘(C) a description of the steps that may funded under this section for the costs of de- loan to such applicant in reliance thereon have been taken by the Secretary to assist veloping and operating managed care net- unless such person (or successor in interest) an entity in avoiding such a default. works or plans. engaged in fraud or misrepresentation in ‘‘(7) PROGRAM EVALUATION.—Not later than ‘‘(B) USE OF FUNDS.—Loan funds guaran- making or contracting to make such loan. June 30, 1999, the Secretary shall prepare and teed under this subsection may be used— ‘‘(iv) FURTHER TERMS AND CONDITIONS.— submit to the appropriate committees of ‘‘(i) to establish reserves for the furnishing Guarantees of loans under this subsection Congress a report containing an evaluation of services on a pre-paid basis; or shall be subject to such further terms and of the program authorized under this sub- ‘‘(ii) for costs incurred by the center or conditions as the Secretary determines to be section. Such evaluation shall include a rec- centers, otherwise permitted under this sec- necessary to assure that the purposes of this ommendation with respect to whether or not tion, as the Secretary determines are nec- section will be achieved. the loan guarantee program under this sub- essary to enable a center or centers to de- ‘‘(3) LOAN ORIGINATION FEES.— section should be continued and, if so, any velop, operate, and own the network or plan. ‘‘(A) IN GENERAL.—The Secretary shall col- modifications that should be made to such ‘‘(C) PUBLICATION OF GUIDANCE.—Prior to lect a loan origination fee with respect to program. considering an application submitted under loans to be guaranteed under this subsection, ‘‘(8) AUTHORIZATION OF APPROPRIATIONS.— this subsection, the Secretary shall publish except as provided in subparagraph (C). There are authorized to be appropriated to guidelines to provide guidance on the imple- ‘‘(B) AMOUNT.—The amount of a loan origi- carry out this subsection such sums as may mentation of this section. The Secretary nation fee collected by the Secretary under be necessary. shall make such guidelines available to the subparagraph (A) shall be equal to the esti- ‘‘(e) OPERATING GRANTS.— universe of parties affected under this sub- mated long term cost of the loan guarantees ‘‘(1) AUTHORITY.— section, distribute such guidelines to such involved to the Federal Government (exclud- ‘‘(A) IN GENERAL.—The Secretary may parties upon the request of such parties, and ing administrative costs), calculated on a make grants for the costs of the operation of provide a copy of such guidelines to the ap- net present value basis, after taking into ac- public and nonprofit private health centers propriate committees of Congress. count any appropriations that may be made that provide health services to medically un- ‘‘(2) PROTECTION OF FINANCIAL INTERESTS.— for the purpose of offsetting such costs, and derserved populations. ‘‘(A) IN GENERAL.—The Secretary may not in accordance with the criteria used to ‘‘(B) ENTITIES THAT FAIL TO MEET CERTAIN approve a loan guarantee for a project under award loan guarantees under this subsection. REQUIREMENTS.—The Secretary may make this subsection unless the Secretary deter- ‘‘(C) WAIVER.—The Secretary may waive grants, for a period of not to exceed 2-years, mines that— the loan origination fee for a health center for the costs of the operation of public and ‘‘(i) the terms, conditions, security (if applicant who demonstrates to the Secretary nonprofit private entities which provide any), and schedule and amount of repay- that the applicant will be unable to meet the health services to medically underserved ments with respect to the loan are sufficient conditions of the loan if the applicant incurs populations but with respect to which the to protect the financial interests of the Unit- the additional cost of the fee. Secretary is unable to make each of the de- ed States and are otherwise reasonable, in- ‘‘(4) DEFAULTS.— terminations required by subsection (j)(3). S11098 CONGRESSIONAL RECORD — SENATE September 20, 1996

‘‘(2) USE OF FUNDS.—The costs for which a the center for primary health services (in- ‘‘(2) REQUIRED SERVICES.—In addition to re- grant may be made under subparagraph (A) cluding prenatal care) with respect to the quired primary health services (as defined in or (B) of paragraph (1) may include the costs purpose described in this subsection; and subsection (b)(1)), an entity that receives a of acquiring and leasing buildings and equip- ‘‘(E) the center will coordinate the provi- grant under this subsection shall be required ment (including the costs of amortizing the sion of services with other maternal and to provide substance abuse services as a con- principal of, and paying interest on, loans), child health providers operating in the dition of such grant. and the costs of providing training related to catchment area. ‘‘(3) SUPPLEMENT NOT SUPPLANT REQUIRE- the provision of required primary health ‘‘(g) MIGRATORY AND SEASONAL AGRICUL- MENT.—A grant awarded under this sub- services and additional health services and TURAL WORKERS.— section shall be expended to supplement, and to the management of health center pro- ‘‘(1) IN GENERAL.—The Secretary may not supplant, the expenditures of the health grams. award grants for the purposes described in center and the value of in kind contributions ‘‘(3) CONSTRUCTION.—The Secretary may subsections (c), (e), and (f) for the planning for the delivery of services to the population award grants which may be used to pay the and delivery of services to a special medi- described in paragraph (1). costs associated with expanding and mod- cally underserved population comprised of— ‘‘(4) DEFINITIONS.—For purposes of this sec- ernizing existing buildings or constructing ‘‘(A) migratory agricultural workers, sea- tion: new buildings (including the costs of amor- sonal agricultural workers, and members of ‘‘(A) HOMELESS INDIVIDUAL.—The term tizing the principal of, and paying the inter- the families of such migratory and seasonal ‘homeless individual’ means an individual est on, loans) for projects approved prior to agricultural workers who are within a des- who lacks housing (without regard to wheth- October 1, 1996. ignated catchment area; and er the individual is a member of a family), ‘‘(4) LIMITATION.—Not more than two ‘‘(B) individuals who have previously been including an individual whose primary resi- grants may be made under subparagraph (B) migratory agricultural workers but who no dence during the night is a supervised public of paragraph (1) for the same entity. longer meet the requirements of subpara- or private facility that provides temporary ‘‘(5) AMOUNT.— graph (A) of paragraph (3) because of age or living accommodations and an individual ‘‘(A) IN GENERAL.—The amount of any disability and members of the families of who is a resident in transitional housing. grant made in any fiscal year under para- such individuals who are within such graph (1) to a health center shall be deter- ‘‘(B) SUBSTANCE ABUSE.—The term ‘sub- catchment area. mined by the Secretary, but may not exceed stance abuse’ has the same meaning given ‘‘(2) ENVIRONMENTAL CONCERNS.—The Sec- the amount by which the costs of operation such term in section 534(4). retary may enter into grants or contracts of the center in such fiscal year exceed the ‘‘(C) SUBSTANCE ABUSE SERVICES.—The under this subsection with public and private total of— term ‘substance abuse services’ includes de- entities to— ‘‘(i) State, local, and other operational toxification and residential treatment for ‘‘(A) assist the States in the implementa- funding provided to the center; and substance abuse provided in settings other tion and enforcement of acceptable environ- ‘‘(ii) the fees, premiums, and third-party than hospitals. mental health standards, including enforce- reimbursements, which the center may rea- ment of standards for sanitation in migra- ‘‘(i) RESIDENTS OF PUBLIC HOUSING.— sonably be expected to receive for its oper- ‘‘(1) IN GENERAL.—The Secretary may ations in such fiscal year. tory agricultural worker labor camps, and applicable Federal and State pesticide con- award grants for the purposes described in ‘‘(B) PAYMENTS.—Payments under grants subsections (c), (e), and (f) for the planning under subparagraph (A) or (B) of paragraph trol standards; and ‘‘(B) conduct projects and studies to assist and delivery of services to a special medi- (1) shall be made in advance or by way of re- cally underserved population comprised of imbursement and in such installments as the the several States and entities which have received grants or contracts under this sec- residents of public housing (such term, for Secretary finds necessary and adjustments purposes of this subsection, shall have the may be made for overpayments or underpay- tion in the assessment of problems related to camp and field sanitation, exposure to unsafe same meaning given such term in section ments. 3(b)(1) of the United States Housing Act of ‘‘(C) USE OF NONGRANT FUNDS.—Nongrant levels of agricultural chemicals including pesticides, and other environmental health 1937) and individuals living in areas imme- funds described in clauses (i) and (ii) of sub- diately accessible to such public housing. paragraph (A), including any such funds in hazards to which migratory agricultural workers and members of their families are ‘‘(2) SUPPLEMENT NOT SUPPLANT.—A grant excess of those originally expected, shall be awarded under this subsection shall be ex- used as permitted under this section, and exposed. pended to supplement, and not supplant, the may be used for such other purposes as are ‘‘(3) DEFINITIONS.—For purposes of this sub- expenditures of the health center and the not specifically prohibited under this section section: value of in kind contributions for the deliv- if such use furthers the objectives of the ‘‘(A) MIGRATORY AGRICULTURAL WORKER.— ery of services to the population described in project. The term ‘migratory agricultural worker’ paragraph (1). ‘‘(f) INFANT MORTALITY GRANTS.— means an individual whose principal employ- ‘‘(3) CONSULTATION WITH RESIDENTS.—The ‘‘(1) IN GENERAL.—The Secretary may make ment is in agriculture on a seasonal basis, grants to health centers for the purpose of who has been so employed within the last 24 Secretary may not make a grant under para- assisting such centers in— months, and who establishes for the purposes graph (1) unless, with respect to the resi- ‘‘(A) providing comprehensive health care of such employment a temporary abode. dents of the public housing involved, the ap- and support services for the reduction of— ‘‘(B) SEASONAL AGRICULTURAL WORKER.— plicant for the grant— ‘‘(i) the incidence of infant mortality; and The term ‘seasonal agricultural worker’ ‘‘(A) has consulted with the residents in ‘‘(ii) morbidity among children who are means an individual whose principal employ- the preparation of the application for the less than 3 years of age; and ment is in agriculture on a seasonal basis grant; and ‘‘(B) developing and coordinating service and who is not a migratory agricultural ‘‘(B) agrees to provide for ongoing con- and referral arrangements between health worker. sultation with the residents regarding the centers and other entities for the health ‘‘(C) AGRICULTURE.—The term ‘agriculture’ planning and administration of the program management of pregnant women and chil- means farming in all its branches, includ- carried out with the grant. dren described in subparagraph (A). ing— ‘‘(j) APPLICATIONS.— ‘‘(2) PRIORITY.—In making grants under ‘‘(i) cultivation and tillage of the soil; ‘‘(1) SUBMISSION.—No grant may be made this subsection the Secretary shall give pri- ‘‘(ii) the production, cultivation, growing, under this section unless an application ority to health centers providing services to and harvesting of any commodity grown on, therefore is submitted to, and approved by, any medically underserved population in, or as an adjunct to or part of a commod- the Secretary. Such an application shall be among which there is a substantial incidence ity grown in or on, the land; and submitted in such form and manner and of infant mortality or among which there is ‘‘(iii) any practice (including preparation shall contain such information as the Sec- a significant increase in the incidence of in- and processing for market and delivery to retary shall prescribe. fant mortality. storage or to market or to carriers for trans- ‘‘(2) DESCRIPTION OF NEED.—An application ‘‘(3) REQUIREMENTS.—The Secretary may portation to market) performed by a farmer for a grant under subparagraph (A) or (B) of make a grant under this subsection only if or on a farm incident to or in conjunction subsection (e)(1) for a health center shall in- the health center involved agrees that— with an activity described in clause (ii). clude— ‘‘(A) the center will coordinate the provi- ‘‘(h) HOMELESS POPULATION.— ‘‘(A) a description of the need for health sion of services under the grant to each of ‘‘(1) IN GENERAL.—The Secretary may services in the catchment area of the center; the recipients of the services; award grants for the purposes described in ‘‘(B) a demonstration by the applicant that ‘‘(B) such services will be continuous for subsections (c), (e), and (f) for the planning the area or the population group to be served each such recipient; and delivery of services to a special medi- by the applicant has a shortage of personal ‘‘(C) the center will provide follow-up serv- cally underserved population comprised of health services; and ices for individuals who are referred by the homeless individuals, including grants for ‘‘(C) a demonstration that the center will center for services described in paragraph innovative programs that provide outreach be located so that it will provide services to (1); and comprehensive primary health services the greatest number of individuals residing ‘‘(D) the grant will be expended to supple- to homeless children and children at risk of in the catchment area or included in such ment, and not supplant, the expenditures of homelessness. population group. September 20, 1996 CONGRESSIONAL RECORD — SENATE S11099 Such a demonstration shall be made on the fees and payments for such services without ‘‘(L) the center, has developed an ongoing basis of the criteria prescribed by the Sec- application of any discount; and referral relationship with one or more hos- retary under subsection (b)(3) or on any ‘‘(iii) has submitted to the Secretary such pitals. other criteria which the Secretary may pre- reports as the Secretary may require to de- For purposes of subparagraph (H), the term scribe to determine if the area or population termine compliance with this subparagraph; ‘public center’ means a health center funded group to be served by the applicant has a ‘‘(H) the center has established a governing (or to be funded) through a grant under this shortage of personal health services. In con- board which except in the case of an entity section to a public agency. sidering an application for a grant under operated by an Indian tribe or tribal or In- ‘‘(4) APPROVAL OF NEW OR EXPANDED SERV- subparagraph (A) or (B) of subsection (e)(1), dian organization under the Indian Self-De- ICE APPLICATIONS.—The Secretary shall ap- the Secretary may require as a condition to termination Act or an urban Indian organi- prove applications for grants under subpara- the approval of such application an assur- zation under the Indian Health Care Im- graph (A) or (B) of subsection (e)(1) for ance that the applicant will provide any provement Act (25 U.S.C. 1651 et seq.)— health centers which— health service defined under paragraphs (1) ‘‘(i) is composed of individuals, a majority ‘‘(A) have not received a previous grant and (2) of subsection (b) that the Secretary of whom are being served by the center and under such subsection; or finds is needed to meet specific health needs who, as a group, represent the individuals ‘‘(B) have applied for such a grant to ex- of the area to be served by the applicant. being served by the center; pand their services; ‘‘(ii) meets at least once a month, selects Such a finding shall be made in writing and in such a manner that the ratio of the medi- a copy shall be provided to the applicant. the services to be provided by the center, schedules the hours during which such serv- cally underserved populations in rural areas ‘‘(3) REQUIREMENTS.—Except as provided in ices will be provided, approves the center’s which may be expected to use the services subsection (e)(1)(B), the Secretary may not annual budget, approves the selection of a di- provided by such centers to the medically approve an application for a grant under sub- rector for the center, and, except in the case underserved populations in urban areas paragraph (A) or (B) of subsection (e)(1) un- of a governing board of a public center (as which may be expected to use the services less the Secretary determines that the en- defined in the second sentence of this para- provided by such centers is not less than two tity for which the application is submitted is graph), establishes general policies for the to three or greater than three to two. a health center (within the meaning of sub- center; and ‘‘(k) TECHNICAL AND OTHER ASSISTANCE.— section (a)) and that— ‘‘(iii) in the case of an application for a ‘‘(A) the required primary health services The Secretary may provide (either through second or subsequent grant for a public cen- the Department of Health and Human Serv- of the center will be available and accessible ter, has approved the application or if the ices or by grant or contract) all necessary in the catchment area of the center prompt- governing body has not approved the applica- ly, as appropriate, and in a manner which tion, the failure of the governing body to ap- technical and other nonfinancial assistance assures continuity; prove the application was unreasonable; (including fiscal and program management ‘‘(B) the center has made and will continue assistance and training in such management) to make every reasonable effort to establish except that, upon a showing of good cause the Secretary shall waive, for the length of to any public or private nonprofit entity to and maintain collaborative relationships assist entities in developing plans for, or op- with other health care providers in the the project period, all or part of the require- erating as, health centers, and in meeting catchment area of the center; ments of this subparagraph in the case of a health center that receives a grant pursuant ‘‘(C) the center will have an ongoing qual- the requirements of subsection (j)(2). to subsection (g), (h), (i), or (p); ity improvement system that includes clini- ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(I) the center has developed— cal services and management, and that ‘‘(1) IN GENERAL.—For the purpose of carry- ‘‘(i) an overall plan and budget that meets maintains the confidentiality of patient ing out this section, in addition to the the requirements of the Secretary; and records; amounts authorized to be appropriated under ‘‘(ii) an effective procedure for compiling ‘‘(D) the center will demonstrate its finan- subsection (d), there are authorized to be ap- and reporting to the Secretary such statis- cial responsibility by the use of such ac- propriated $802,124,000 for fiscal year 1997, tics and other information as the Secretary counting procedures and other requirements and such sums as may be necessary for each may require relating to— as may be prescribed by the Secretary; of the fiscal years 1998 through 2001. ‘‘(I) the costs of its operations; ‘‘(E) the center— ‘‘(II) the patterns of use of its services; ‘‘(2) SPECIAL PROVISIONS.— ‘‘(i) has or will have a contractual or other ‘‘(III) the availability, accessibility, and ‘‘(A) PUBLIC CENTERS.—The Secretary may arrangement with the agency of the State, in acceptability of its services; and not expend in any fiscal year, for grants which it provides services, which administers ‘‘(IV) such other matters relating to oper- under this section to public centers (as de- or supervises the administration of a State ations of the applicant as the Secretary may fined in the second sentence of subsection plan approved under title XIX of the Social require; (j)(3)) the governing boards of which (as de- Security Act for the payment of all or a part ‘‘(J) the center will review periodically its scribed in subsection (j)(3)(G)(ii)) do not es- of the center’s costs in providing health serv- catchment area to— tablish general policies for such centers, an ices to persons who are eligible for medical ‘‘(i) ensure that the size of such area is amount which exceeds 5 percent of the assistance under such a State plan; or such that the services to be provided through amounts appropriated under this section for ‘‘(ii) has made or will make every reason- the center (including any satellite) are avail- that fiscal year. For purposes of applying the able effort to enter into such an arrange- able and accessible to the residents of the preceding sentence, the term ‘public centers’ ment; area promptly and as appropriate; shall not include health centers that receive ‘‘(F) the center has made or will make and ‘‘(ii) ensure that the boundaries of such grants pursuant to subsection (h) or (i). will continue to make every reasonable ef- area conform, to the extent practicable, to ‘‘(B) DISTRIBUTION OF GRANTS.— fort to collect appropriate reimbursement relevant boundaries of political subdivisions, ‘‘(i) FISCAL YEAR 1997.—For fiscal year 1997, for its costs in providing health services to school districts, and Federal and State the Secretary, in awarding grants under this persons who are entitled to insurance bene- health and social service programs; and section shall ensure that the amounts made fits under title XVIII of the Social Security ‘‘(iii) ensure that the boundaries of such available under each of subsections (g), (h), Act, to medical assistance under a State area eliminate, to the extent possible, bar- and (i) in such fiscal year bears the same re- plan approved under title XIX of such Act, or riers to access to the services of the center, lationship to the total amount appropriated to assistance for medical expenses under any including barriers resulting from the area’s for such fiscal year under paragraph (1) as other public assistance program or private physical characteristics, its residential pat- the amounts appropriated for fiscal year 1996 health insurance program; terns, its economic and social grouping, and under each of sections 329, 340, and 340A (as ‘‘(G) the center— available transportation; such sections existed one day prior to the ‘‘(i) has prepared a schedule of fees or pay- ‘‘(K) in the case of a center which serves a date of enactment of this section) bears to ments for the provision of its services con- population including a substantial propor- the total amount appropriated under sec- sistent with locally prevailing rates or tion of individuals of limited English-speak- tions 329, 330, 340, and 340A (as such sections charges and designed to cover its reasonable ing ability, the center has— existed one day prior to the date of enact- costs of operation and has prepared a cor- ‘‘(i) developed a plan and made arrange- ment of this section) for such fiscal year. responding schedule of discounts to be ap- ments responsive to the needs of such popu- ‘‘(ii) FISCAL YEARS 1998 AND 1999.—For each plied to the payment of such fees or pay- lation for providing services to the extent of the fiscal years 1998 and 1999, the Sec- ments, which discounts are adjusted on the practicable in the language and cultural con- retary, in awarding grants under this section basis of the patient’s ability to pay; text most appropriate to such individuals; shall ensure that the proportion of the ‘‘(ii) has made and will continue to make and amounts made available under each of sub- every reasonable effort— ‘‘(ii) identified an individual on its staff sections (g), (h), and (i) is equal to the pro- ‘‘(I) to secure from patients payment for who is fluent in both that language and in portion of amounts made available under services in accordance with such schedules; English and whose responsibilities shall in- each such subsection for the previous fiscal and clude providing guidance to such individuals year, as such amounts relate to the total ‘‘(II) to collect reimbursement for health and to appropriate staff members with re- amounts appropriated for the previous fiscal services to persons described in subpara- spect to cultural sensitivities and bridging year involved, increased or decreased by not graph (F) on the basis of the full amount of linguistic and cultural differences; and more than 10 percent. S11100 CONGRESSIONAL RECORD — SENATE September 20, 1996

‘‘(3) FUNDING REPORT.—The Secretary shall complete disclosure of the disposition or use ‘‘(B) in consultation with the State office annually prepare and submit to the appro- of the funds received, each such audit shall of rural health or other appropriate State priate committees of Congress a report con- be conducted in accordance with generally entity, prepare and submit to the Secretary cerning the distribution of funds under this accepted accounting principles. Each audit an application, at such time, in such man- section that are provided to meet the health shall evaluate— ner, and containing such information as the care needs of medically underserved popu- ‘‘(A) the entity’s implementation of the Secretary may require, including— lations, including the homeless, residents of guidelines established by the Secretary re- ‘‘(i) a description of the activities which public housing, and migratory and seasonal specting cost accounting, the applicant intends to carry out using agricultural workers, and the appropriate- ‘‘(B) the processes used by the entity to amounts provided under the grant; ness of the delivery systems involved in re- meet the financial and program reporting re- ‘‘(ii) a plan for continuing the project after sponding to the needs of the particular popu- quirements of the Secretary, and Federal support is ended; lations. Such report shall include an assess- ‘‘(C) the billing and collection procedures ‘‘(iii) a description of the manner in which ment of the relative health care access needs of the entity and the relation of the proce- the activities funded under the grant will of the targeted populations and the rationale dures to its fee schedule and schedule of dis- meet health care needs of underserved rural for any substantial changes in the distribu- counts and to the availability of health in- populations within the State; and tion of funds. surance and public programs to pay for the ‘‘(iv) a description of how the local com- ‘‘(m) MEMORANDUM OF AGREEMENT.—In car- health services it provides. munity or region to be served by the net- work or proposed network will be involved in rying out this section, the Secretary may A report of each such audit shall be filed the development and ongoing operations of enter into a memorandum of agreement with with the Secretary at such time and in such the network. a State. Such memorandum may include, manner as the Secretary may require. where appropriate, provisions permitting ‘‘(2) FOR-PROFIT ENTITIES.—An eligible net- ‘‘(2) RECORDS.—Each entity which receives work may include for-profit entities so long such State to— a grant under this section shall establish and as the network grantee is a nonprofit entity. ‘‘(1) analyze the need for primary health maintain such records as the Secretary shall ‘‘(3) TELEMEDICINE NETWORKS.— services for medically underserved popu- by regulation require to facilitate the audit lations within such State; ‘‘(A) IN GENERAL.—An entity that is a required by paragraph (1). The Secretary health care provider and a member of an ex- ‘‘(2) assist in the planning and development may specify by regulation the form and man- of new health centers; isting or proposed telemedicine network, or ner in which such records shall be estab- an entity that is a consortium of health care ‘‘(3) review and comment upon annual pro- lished and maintained. gram plans and budgets of health centers, in- providers that are members of an existing or ‘‘(3) AVAILABILITY OF RECORDS.—Each en- cluding comments upon allocations of health proposed telemedicine network shall be eligi- tity which is required to establish and main- ble for a grant under this section. care resources in the State; tain records or to provide for and audit ‘‘(4) assist health centers in the develop- ‘‘(B) REQUIREMENT.—A telemedicine net- under this subsection shall make such books, work referred to in subparagraph (A) shall, ment of clinical practices and fiscal and ad- documents, papers, and records available to ministrative systems through a technical as- at a minimum, be composed of— the Secretary or the Comptroller General of ‘‘(i) a multispecialty entity that is located sistance plan which is responsive to the re- the United States, or any of their duly au- quests of health centers; and in an urban or rural area, which can provide thorized representatives, for examination, 24-hour a day access to a range of specialty ‘‘(5) share information and data relevant to copying or mechanical reproduction on or off the operation of new and existing health cen- care; and the premises of such entity upon a reason- ‘‘(ii) at least two rural health care facili- ters. able request therefore. The Secretary and ‘‘(n) RECORDS.— ties, which may include rural hospitals, the Comptroller General of the United ‘‘(1) IN GENERAL.—Each entity which re- rural physician offices, rural health clinics, States, or any of their duly authorized rep- ceives a grant under subsection (e) shall es- rural community health clinics, and rural resentatives, shall have the authority to tablish and maintain such records as the nursing homes. conduct such examination, copying, and re- Secretary shall require. ‘‘(d) PREFERENCE.—In awarding grants production. ‘‘(2) AVAILABILITY.—Each entity which is under this section, the Secretary shall give ‘‘(4) WAIVER.—The Secretary may, under required to establish and maintain records preference to applicant networks that in- appropriate circumstances, waive the appli- under this subsection shall make such books, clude— cation of all or part of the requirements of documents, papers, and records available to ‘‘(1) a majority of the health care providers this subsection with respect to an entity.’’. the Secretary or the Comptroller General of serving in the area or region to be served by the United States, or any of their duly au- SEC. 3. RURAL HEALTH OUTREACH, NETWORK the network; thorized representatives, for examination, DEVELOPMENT, AND TELEMEDICINE ‘‘(2) any federally qualified health centers, GRANT PROGRAM. copying or mechanical reproduction on or off rural health clinics, and local public health (a) IN GENERAL.—Subpart I of part D of the premises of such entity upon a reason- departments serving in the area or region; title III of the Public Health Service Act (42 able request therefore. The Secretary and ‘‘(3) outpatient mental health providers U.S.C. 254b et seq.) (as amended by section 2) the Comptroller General of the United serving in the area or region; or is further amended by adding at the end States, or any of their duly authorized rep- ‘‘(4) appropriate social service providers, thereof the following new section: resentatives, shall have the authority to such as agencies on aging, school systems, conduct such examination, copying, and re- ‘‘SEC. 330A. RURAL HEALTH OUTREACH, NET- and providers under the women, infants, and production. WORK DEVELOPMENT, AND TELE- children program, to improve access to and MEDICINE GRANT PROGRAM. ‘‘(o) DELEGATION OF AUTHORITY.—The Sec- coordination of health care services. retary may delegate the authority to admin- ‘‘(a) ADMINISTRATION.—The rural health ‘‘(e) USE OF FUNDS.— ister the programs authorized by this section services outreach demonstration grant pro- ‘‘(1) IN GENERAL.—Amounts provided under to any office, except that the authority to gram established under section 301 shall be grants awarded under this section shall be enter into, modify, or issue approvals with administered by the Office of Rural Health used— respect to grants or contracts may be dele- Policy (of the Health Resources and Services ‘‘(A) for the planning and development of gated only within the central office of the Administration), in consultation with State integrated self-sustaining health care net- Health Resources and Services Administra- rural health offices or other appropriate works; and tion. State governmental entities. ‘‘(B) for the initial provision of services. ‘‘(p) SPECIAL CONSIDERATION.—In making ‘‘(b) GRANTS.—Under the program referred ‘‘(2) EXPENDITURES IN RURAL AREAS.— grants under this section, the Secretary to in subsection (a), the Secretary, acting ‘‘(A) IN GENERAL.—In awarding a grant shall give special consideration to the through the Director of the Office of Rural under this section, the Secretary shall en- unique needs of sparsely populated rural Health Policy, may award grants to expand sure that not less than 50 percent of the areas, including giving priority in the award- access to, coordinate, restrain the cost of, grant award is expended in a rural area or to ing of grants for new health centers under and improve the quality of essential health provide services to residents of rural areas. subsections (c) and (e), and the granting of care services, including preventive and emer- ‘‘(B) TELEMEDICINE NETWORKS.—An entity waivers as appropriate and permitted under gency services, through the development of described in subsection (c)(3) may not use in subsections (b)(1)(B)(i) and (j)(3)(G). integrated health care delivery systems or excess of— ‘‘(q) AUDITS.— networks in rural areas and regions. ‘‘(i) 40 percent of the amounts provided ‘‘(1) IN GENERAL.—Each entity which re- ‘‘(c) ELIGIBLE NETWORKS.— under a grant under this section to carry out ceives a grant under this section shall pro- ‘‘(1) OUTREACH NETWORKS.—To be eligible activities under paragraph (3)(A)(iii); and vide for an independent annual financial to receive a grant under this section, an en- ‘‘(ii) 20 percent of the amounts provided audit of any books, accounts, financial tity shall— under a grant under this section to pay for records, files, and other papers and property ‘‘(A) be a rural public or nonprofit private the indirect costs associated with carrying which relate to the disposition or use of the entity that is or represents a network or po- out the purposes of such grant. funds received under such grant and such tential network that includes three or more ‘‘(3) TELEMEDICINE NETWORKS.— other funds received by or allocated to the health care providers or other entities that ‘‘(A) IN GENERAL.—An entity described in project for which such grant was made. For provide or support the delivery of health subsection (c)(3), may use amounts provided purposes of assuring accurate, current, and care services; and under a grant under this section to— September 20, 1996 CONGRESSIONAL RECORD — SENATE S11101 ‘‘(i) demonstrate the use of telemedicine in the Congress, the Secretary of Health and accomplishments. I am certain that facilitating the development of rural health Human Services shall prepare and submit to Nichols Research Corp. will continue to care networks and for improving access to the Congress a legislative proposal in the make valuable contributions to Ameri- health care services for rural citizens; form of an implementing bill containing ca’s defense and economic prosperity ‘‘(ii) provide a baseline of information for a technical and conforming amendments to re- systematic evaluation of telemedicine sys- flect the changes made by this Act. for many years to come.∑ tems serving rural areas; SEC. 5. EFFECTIVE DATE. f ‘‘(iii) purchase or lease and install equip- This Act and the amendments made by WEST VIRGINIA’S TRIBUTE TO ment; and this Act shall become effective on October 1, JOHN HENRY ‘‘(iv) operate the telemedicine system and 1997. evaluate the telemedicine system. f ∑ Mr. ROCKEFELLER. Mr. President, ‘‘(B) LIMITATIONS.—An entity described in on July 12–14, 1996, a 6-foot replica of a subsection (c)(3), may not use amounts pro- ADDITIONAL STATEMENTS stamp honoring legendary railroad vided under a grant under this section— worker John Henry was the centerpiece ‘‘(i) to build or acquire real property; of a weekend of festivities in the small ‘‘(ii) purchase or install transmission NICHOLS RESEARCH CORP. equipment (such as laying cable or telephone town of Talcott in Summers County, lines, microwave towers, satellite dishes, ∑ Mr. SHELBY. Mr. President, I rise WV. This stamp was part of a set of amplifiers, and digital switching equipment); today to recognize Nichols Research four folk hero stamps recently issued or Corp. of Huntsville, AL, which is cele- by the U.S. Postal Service also honor- ‘‘(iii) for construction, except that such brating its 20th year of technological ing Paul Bunyan, Pecos Bill, and the funds may be expended for minor renova- leadership. For the past two decades, Mighty Casey. The Postal Service had tions relating to the installation of equip- Nichols Research Corp. has made sig- initially only planned to announce the ment; nificant technological contributions to stamp in Pittsburgh and issue it in ‘‘(f) TERM OF GRANTS.—Funding may not be provided to a network under this section for our Nation, and in so doing has shown Anaheim, CA, at an annual show. How- in excess of a 3-year period. itself to be a model example of the en- ever, I am proud to have been part of ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— ergy and dynamism of America’s small an effort launched by my colleague, For the purpose of carrying out this section businesses. Congressman NICK RAHALL, and the there are authorized to be appropriated In 1976, Roy Nichols and Chris residents of Talcott to ensure that this $36,000,000 for fiscal year 1997, and such sums Horgen’s small company consisted of a folk legend and this great town which as may be necessary for each of the fiscal single office in Huntsville, AL, and a gave him birth were honored with a years 1998 through 2001.’’. handful of employees. Since that time, (b) TRANSITION.—The Secretary of Health personalized unveiling and stamp can- and Human Services shall ensure the contin- Nichols Research Corp. has achieved cellation ceremony. ued funding of grants made, or contracts or remarkable growth, now employing In the latter part of 1995, the towns- cooperative agreements entered into, under 1,900 hard-working men and women in people of Talcott were disappointed to subpart I of part D of title III of the Public 27 offices nationwide. The astonishing learn that the U.S. Postal Service an- Health Service Act (42 U.S.C. 254b et seq.) (as rise to prominence of this once tiny nounced in Pittsburgh, PA, instead of such subpart existed on the day prior to the firm is vivid proof that in America, West Virginia, the design of a 1996 date of enactment of this Act), until the ex- great ideas, professional excellence, piration of the grant period or the term of stamp honoring John Henry. I asked the contract or cooperative agreement. Such and perseverance can lead to unlimited for the rationale behind this decision funding shall be continued under the same success. and was advised by the Postal Service terms and conditions as were in effect on the Since its humble beginnings, Nichols that this site was selected because of date on which the grant, contract or cooper- Research Corp.’s prosperity has been the city’s linkage to railroad yards. ative agreement was awarded, subject to the driven by its leadership in techno- While I could easily understand such a availability of appropriations. logical innovation and its ability to ‘‘thematic’’ or ‘‘geographical’’ ap- SEC. 4. TECHNICAL AND CONFORMING AMEND- put its breakthrough ideas and profes- proach—a Steel-Driving Man being rec- MENTS. sional know-how to work for all of us. (a) IN GENERAL.—The Public Health Serv- ognized in the ‘‘Steel City’’—virtually ice Act is amended— For much of its history, Nichols Re- all of the residents of my State strong- (1) in section 224(g)(4) (42 U.S.C. 233(g)(4)), search Corp. has concentrated on devel- ly believed that John Henry’s legend is by striking ‘‘under’’ and all that follows oping technologies for America’s de- based on the classic tale of his com- through the end thereof and inserting ‘‘under fense. In recent years, Nichols Re- petition against the mechanical steam section 330.’’; search Corp. has begun using its vast drill at Big Bend Mountain in Talcott. (2) in section 340C(a)(2) (42 U.S.C. 256c) by expertise to expand into the field of in- So it only would make sense for West striking ‘‘under’’ and all that follows formation technology, a rapidly pro- Virginians to be able to celebrate the through the end thereof and inserting ‘‘with gressing area which represents the vi- assistance provided under section 330.’’; and legend of John Henry and the issuance (3) by repealing subparts V and VI of part brant future of the American economy. of his stamp with an appropriate cere- D of title III (42 U.S.C. 256 et seq.). The skills and techniques which Nich- mony of their own. (b) SOCIAL SECURITY ACT.—The Social Se- ols Research Corp. has gained are now I asked the Postmaster General to curity Act is amended— being used to develop solutions for plan a special ceremony in West Vir- (1) in clauses (i) and (ii)(I) of section Government agencies as well as health ginia for the John Henry stamp. I also 1861(aa)(4)(A) (42 U.S.C. 1395x(aa)(4)(A)(i) and care, transportation, and insurance urged him to organize a specific event (ii)(I)) by striking ‘‘section 329, 330, or 340’’ businesses in the private sector. and inserting ‘‘section 330 (other than sub- in Talcott related to the 1996 John section (h))’’; and Not surprisingly, Nichols Research Henry stamp as the home of this folk (2) in clauses (i) and (ii)(II) of section Corp.’s innovativeness and leadership legend. 1905(l)(2)(B) (42 U.S.C. 1396d(l)(2)(B)(i) and have drawn well-deserved praise and The fact that West Virginia is the (ii)(II)) by striking ‘‘section 329, 330, 340, or recognition. In 1993, Forbes magazine true home of the John Henry legend 340A’’ and inserting ‘‘section 330’’. selected Nichols Research Corp. as 1 of made it a natural choice for a special (c) REFERENCES.—Whenever any reference only 13 firms for its ‘‘Best of the Best’’ recognition ceremony to celebrate the is made in any provision of law, regulation, list of small companies in America. In emergence of this new stamp. John rule, record, or document to a community health center, migrant health center, public 1995, Nichols Research Corp. was named Henry’s fame has fascinated millions of housing health center, or homeless health by the Department of Defense to its people throughout the world and con- center, such reference shall be considered a ‘‘Top 100’’ company list for research de- tinues to interest new generations to reference to a health center. velopment testing and evaluation as this day. He is a symbol of the impor- (d) FTCA CLARIFICATION.—For purposes of well as other services and supplies. tance of human determination and section 224(k)(3) of the Public Health Service Today, I would like to recognize this skill, which is increasingly meaningful Act (42 U.S.C. 233(k)(3)), transfers from the small business success story for 20 given the rise of technology in today’s fund described in such section for fiscal year years of growth and innovation, and culture. His significance in represent- 1996 shall be deemed to have occurred prior to December 31, 1995. congratulate Roy Nichols, Chris ing human labor and a tireless work (e) ADDITIONAL AMENDMENTS.—After con- Horgen, and all of Nichols Research ethic also play a compelling role in sultation with the appropriate committees of Corp.’s employees for their outstanding West Virginia’s history. S11102 CONGRESSIONAL RECORD — SENATE September 20, 1996 But overall, to emphasize why this the White House, the State Depart- cerns about small, family ranches that issue is so important, it is necessary to ment, the Department of Veterans Af- led to a 5,000 AUM cap instead of the understand the legend and his link to fairs, the Vietnam Veterans Memorial, original cap of 2,000 AUM. West Virginia. Let me share with you a the Korean War Veterans Memorial, This change, a 150-percent increase in little of the history. and at national cemeteries across the AUM’s over his initial proposed cap, re- The details of the John Henry folk- country. Throughout the State of New sulted in an exemption from the fee in- lore sprang from the construction of Hampshire, concerned citizens have crease for approximately 300 Oregon the Big Bend Tunnel on the Chesa- been gathering in Manchester, Derry, ranchers. Further, the amendment peake and Ohio railroad in Talcott in Meredith, and several other commu- would not impact most of the 2,100 per- 1873. Various stories led to the legend nities to renew our commitment to the mittees in Oregon. of John Henry; but, unfortunately, no fullest possible accounting of prisoners There are, however, some small fam- documentation exists because earlier of war and missing in action personnel. ily ranchers who I remain concerned C&O Railroad records were destroyed Likewise, there are services being held about. A significant number of Oregon in a fire in 1880. Local historians do across the country. ranchers are small and independent but know that from 1870 to 1872, a gang of For 12 years in Congress, I have been they operate through one permittee, an hand-drillers working from the railroad proud to be a leader on the POW/MIA incorporated family ranch. They are actually carved out rock from the Big issue on behalf of their families, our the folks I am concerned about. They Bend Mountain for the railroad. This Nation’s veterans, and concerned include families with multiple house- tunnel stands as proof today that the Americans. This is an honorable cause holds who live on, work on, and derive legend of John Henry has roots in re- that we have embarked on, and we their livelihood from the ranch. They ality, and a statue of this folk hero must not stop until we know the truth, are working together to provide for tops this tunnel. and until we can ensure that this na- their families, they provide genera- John Henry was assumed to be an Af- tional tragedy can never be allowed to tions worth of knowledge, and they are rican-American slave who worked on happen again; 2,146 American service- active in associations and restoration the team of Big Bend Tunnel drillers. men are still unaccounted for from the work. It is those family ranches who Famed Appalachia folklore historian Vietnam War, and over 8,100 are unac- hold permits to graze more than 5,000 Dr. James Gay Jones of Glenville, WV, counted for from the Korean War. AUM that will have to pay the in- noted in his 1979 book, ‘‘Haunted Val- There are over 100 American service- creased fee. ley, and More Folk Tales of Appa- men who were lost during cold war in- To address this problem, each legiti- lachia,’’ that of all the railroad work- cidents, and we also cannot forget the mate, separate household on a family ers in the area of the time, a man 78,000 Americans who died during ranch should be recognized as an inde- known as John Henry was held in the World War II, even though we were not pendent permittee or lessee for the pur- highest esteem because of his prowess, able to recover their remains. poses of determining the grazing fee in- immense size, brute strength, and As many of my colleagues and my crease. great labor ethic. John Henry ‘‘became constituents know, I have worked hard This should be done for a simple, yet known as a driver of steel,’’ that is, he to find answers for the POW/MIA fami- very important reason. Multi- used these great sledgehammers to lies. I have traveled to Russia, North generational ranchers are the backbone drive steel rods deep into red shale Korea, Vietnam, Laos, and Cambodia of our land stewardship program. They rock walls. The rods were then re- trying to convince these nations to be provide a unique knowledge of the moved, explosives were placed in them, more forthcoming with information. I land, are critical to maintaining our and portions of the wall were removed authored the legislation which created national food supply, and are helping blast by blast. the Senate Select Committee on POW/ to ensure the long-term protection of When a new steam power drill, the MIA Affairs in 1991, and I did my very our rangeland resources. We need to as- Burleigh, was brought to the Big Bend best as vice chairman to open the sure that we consider their needs as we Tunnel for testing purposes, legend has books on POW/MIA information which look to the future of grazing on public it that John Henry agreed to a wager had previously been kept secret. I have lands.∑ to see if he could drive more steel and also worked to pass legislation to de- f clear more tunnel than the machine. A classify Government records on POW’s WHY AFRICA MATTERS: INTER- contest was held, and the legend is that and MIA’s. Simply put, I have never let NATIONAL CRIME, TERRORISM, John Henry drove a deeper hole than up on my commitment to the POW/ AND NARCOTICS the machine. It is the contest in the MIA issue, and as long as I serve in mountains of West Virginia that cre- Congress, I never will. ∑ Mrs. KASSEBAUM. Mr. President, I ated the legend and made the point Mr. President, I feel strongly that all rise to continue a series of speeches that man can triumph in the competi- of us have a solemn, moral obligation about why Africa matters to the Unit- tion against machine. to continue thoroughly investigating ed States. I have already spoken about There is some controversy over how this national tragedy on behalf of the our vulnerability to infectious diseases and when John Henry died. Some claim families who still wait for answers on coming out of Africa, and have ad- that he died because of the contest the fate of their loved ones. Today, on dressed the many ways in which envi- when a blood vessel burst in his head. National POW/MIA Recognition Day, I ronmental crisis in Africa can touch Others say he was killed in a rock fall urge our Government leaders to renew Americans right here at home. in the Big Bend Tunnel. Regardless of our Nation’s commitment to the fullest Today, I want to speak about a topic the circumstance, his legend was born possible accounting of POW’s and that many people believe will be the and nurtured by West Virginia to share MIA’s.∑ primary security threat in the years with the world, and it lives on today. It f ahead—international crime and terror- is a bit of West Virginia’s contribution ism. American corporations are spend- to basic folklore which has enriched BUMPERS AMENDMENT TO H.R. ing increasing amounts of money to our Nation’s culture and heritage, and 3662 protect themselves from international West Virginians like me are very proud ∑ Mr. WYDEN. Mr. President, I would criminal networks. Our children are to take an active part in recognizing like to enter some remarks for the still threatened by a thriving drug and preserving this heritage.∑ record regarding the Bumpers grazing trade that links this country to narcot- f fee amendment to H.R. 3662, the Inte- ics centers around the globe. And after rior appropriations bill. the World Trade Center bombings and NATIONAL POW/MIA RECOGNITION In my view, if Federal policies are the tragic loss of the passengers and DAY enacted that drive the small, independ- crew of TWA flight 800, the threat of ∑ Mr. SMITH. Mr. President, today in ent family rancher off the land, there international terrorism has created a our Nation’s Capital, the officially rec- will be many adverse consequences for sense of insecurity in the American ognized black and white POW/MIA flag our country. I appreciate Senator public such as we have never felt be- is flying over the U.S. Capitol Building, BUMPER’s responsiveness to my con- fore. September 20, 1996 CONGRESSIONAL RECORD — SENATE S11103 WEAK STATE INSTITUTIONS flourish. Stronger and more trans- sional sports stadiums. In the last 6 As the rise of criminal networks in parent political and judicial systems years alone, over $4 billion has been the former Soviet Union has shown, must be developed to stop the flow of spent to build 30 new professional weak state institutions and judiciaries narcotics from Africa. sports stadiums. According to Prof. create a climate for crime to flourish— TERRORISM ALSO A THREAT Robert Baade, an economist at Lake and Africa is no exception. West Africa Mr. President, international terror- Forest College in Illinois and an expert is noted as a hub for passport forgery; ists are no strangers to Africa. Suda- in stadium financing, that amount counterfeit money is produced in var- nese nationals were at the heart of the could ‘‘completely refurbish the phys- ious African urban centers, and crimi- New York City bomb plots. The Libyan ical plants of the Nation’s public ele- nal networks smuggle diamonds and Government still refuses to extradite mentary and secondary schools.’’ An ivory across the continent’s porous the men believed to be responsible for additional $7 billion of stadiums are in borders and overseas. the bombing of PanAm flight 103. In the planning stages, and there is no In some parts of the continent, sol- 1995, a fraud scheme uncovered in end in sight. This is why I recently in- diers and political officials use their South Africa revealed an international troduced S. 1880—the Stop Tax-exempt formal occupations as an entry point crime network with close links to the Arena Debt Issuance Act—or STADIA to high-stakes criminal activity, tak- Irish Republican Army. for short—to end the Federal tax sub- ing control of resources to finance In this era of instantaneous commu- sidy for these stadium deals. Only the crime and appropriating entire local- nications and world travel, all nations team owners and players profit, while ities to serve as a base of operations. must join in the battle against inter- taxpayers and fans pick up the tab. I introduced S. 1880 with an imme- Diamonds, drugs, and arms are flowing national terrorism. Even one rogue to and from these individual fiefdoms, diate effective date of June 14, 1996 for state presents a threat to American in- a number of reasons, which I have pre- because no strong, capable financial or terests both here and abroad. legal institutions exist to differentiate viously explained for the RECORD. How- the legitimate from the illegitimate. CONCLUSION ever, I also recognized, and requested Let me give a few examples: Mr. President, these images are comment on, ‘‘the need for equitable Warlords in Liberia use diamonds bleak, but writing off Africa in frustra- relief for stadiums already in the plan- stolen from Sierra Leone to finance tion is an unacceptable solution. Inter- ning stages.’’ On June 27, 1996, based their contribution to Liberia’s bloody national crime rings, drug lords, and upon initial comments I had received, I conflict. terrorist groups have not forgotten made a statement on the floor that Not long ago, Angolan rebels were about Africa, and neither can we. In projects that had binding contracts or selling poached elephant ivory and the interest of global stability and our final bond resolutions in place on the smuggled diamonds on international national security, the United States date the bill was introduced would not markets to raise funds for their cause. must keep Africa on the foreign policy be affected by the bill. Since that time, The rise of mercenary movements on agenda, and work with the African peo- several other localities with stadiums the continent is a testament to this ple to strengthen the institutions that already in the planning stages have re- trend—mercenaries are often paid by bring shadowy international crimes to quested equitable relief. allowing them access to resource-rich light.∑ Given the Senate’s imminent ad- territories, further turning Africa into f journment, it is now certain —as I pre- a free-for-all for criminals seeking dicted earlier—that S. 1880 will not be profit, while legitimate governments S. 1880, THE STOP TAX-EXEMPT enacted into law this year. Accord- and businesses are increasingly ARENA DEBT ISSUANCE ACT ingly, in order to provide needed cer- marginalized. ∑ Mr. MOYNIHAN. Mr. President, a tainty to those remaining localities Criminal networks in Nigeria defraud decade ago, I was much involved in the that have expended significant time American citizens of millions of dollars drafting of the Tax Reform Act of 1986. and funds in planning and financing each year. Yet, the Nigerian military A major objective of that legislation professional sports facilities, I wish to government—itself infected with cor- was to simplify the Tax Code by elimi- indicate that when I reintroduce this ruption—does little to stop these acts. nating a large number of loopholes legislation in the 105th Congress, its ef- And even in Africa’s most developed that had come to be viewed as unfair fective date will be the date of the first economy—South Africa—the lack of ef- because they primarily benefitted committee action. As practitioners in fective and legitimate law enforcement small groups of taxpayers. One of the this field know, the date of first com- has led to the growth of crime and nar- loopholes we sought to close in 1986 mittee action is a common effective cotics trafficking. Nearly 500 criminal was one that permitted builders of pro- date for this type of legislation. In ad- networks are thought to operate in Jo- fessional sports facilities to use tax-ex- dition, I will include the transition re- hannesburg, dealing in cocaine, heroin, empt bonds. We had nothing against lief provision contained in my June 27 Mandrax, diamonds, and ivory. new stadium construction, but we floor statement. This, I believe, strikes the proper bal- NARCOTICS FLOWS made the judgment that scarce Federal ance between closing the loophole in resources could surely be used in ways Not only does such activity threaten present law—a loophole that benefits to destabilize one of the most inspiring that would better serve the general only team owners and their players— success stories of this century, but it public good. and addressing the concerns of those also threatens Americans right here at The 1986 Act accordingly prohibited localities that have been planning new home. Only one-tenth of the contra- the use of private activity bonds—that stadiums. band in South Africa is for local con- is, bonds for non-governmental pur- Mr. President, I ask that four recent sumption—the rest finds its way to Eu- poses—for professional sports facilities. articles regarding this legislation be rope and the United States. In fact, ap- Yet, despite Congress’ action, sports printed in the RECORD. proximately 30 to 40 percent of all hard team owners, with help from clever tax The articles follow: narcotics that enter the United States counsel, soon found a way around the [From the National Journal, July 20, 1996] come via African drug cartels. The new law: they persuaded local govern- CALLING TIME ON SPORTS TAX BREAKS drug world is becoming increasingly ments to issue tax-exempt public bonds (By Neal R. Peirce) cosmopolitan: South American drug to finance new stadiums. As the col- WASHINGTON.—Sen. Daniel Patrick Moy- lords are buying African banks to laun- umnist Neal R. Pierce wrote recently, nihan. D-N.Y., stirred up a virtual hornet’s der their illegal profits. team owners ‘‘were soon exhibiting the nest last month with a bill to forbid use of For years, the United States has gall to ask mayors to finance their sta- federal tax-exempt bonds to finance sports thrown money at supply-side solutions diums with general purpose bonds.’’ We stadiums for private teams. in South America that simply do not did not anticipate this. It was—and It turns out that from Nashville to Cleve- land, Seattle to Denver, New Orleans to New work. In Africa, we should apply the still is—perfectly legal. York and multiple points in between, mayors lessons learned from that experience The result has been a boom unlike and councils are readying bond issues to fi- and address the institutional weak- anything we have ever seen in con- nance close to $7 billion worth of baseball, nesses that permit the drug trade to struction of new tax-subsidized profes- basketball, football and hockey facilities. S11104 CONGRESSIONAL RECORD — SENATE September 20, 1996 The first deal imperiled was a $60 million They’d keep (or sometimes gain) a team. But local communities want to waste their own bond sale by the city of Nashville, just one at a price—adding municipal indebtedness, a money, that’s up to them. But federal tax- part of the tax-free bonding package that the possible threat to the city’s credit standing payers should be taken out of the arena. city is assembling to pay for a $292 million and thus higher borrowing costs for schools, state-of-the-art stadium to lure the Oilers colleges, and other public investments, even [From the New York Post, Aug. 29, 1996] football team from Houston. while stadium investors escaped taxes. LET THE OWNERS PAY So when Moynihan suggested barring tax- This is the cavernous tax loophole Moy- (By Irwin M. Stelzer) free financing for such deals, retroactive to nihan wants to close. In time, he’s likely to Whether Pat Moynihan was right in oppos- June 14, the day he introduced his legisla- win. As the federal budget vise tightens— ing the welfare-reform bill that his party’s tion, the buzz of angry protest was almost forcing program after program to constrict— President finally signed, only time will tell. instant. mega-subsidies to fat-cat sports owners will But that he is right in introducing a bill that Moynihan’s proposal was ‘‘abrupt,’’ it become even more reprehensible. would stop cities from using tax-exempt ‘‘jeopardized’ local planning, city leaders The sooner Congress acts, the better for us bonds to finance new arenas and stadiums said. It was a ‘‘dangerous precedent,’’ the all. And the quicker cities wise up and resist for millionaire sports moguls, there is no Public Securities Association asserted. the team owners’ threats and demands, the question. The political signals, for the Republican- better. If George Steinbrenner or some other team controlled Congress, seemed all wrong. ‘‘No Without question, the cost of sports sub- owner wants a new stadium, and decides to bill will go through the House in terms of sidies have begun to reach stratospheric lev- finance it by selling bonds to private inves- NFL [National Football League] that doesn’t els. The Congressional Research Service tors, the interest he pays those lenders is include the Oilers being in Nashville,’’ said (CRS), in a May report, calculated that Bal- subject to federal income tax. But if a city House Speaker Newt Gingrich, R-Ga. A timore’s football stadium subsidies to at- sells bonds and uses the proceeds to build a spokesman for Senate Majority Whip Don tract the former Cleveland Browns will be stadium for the Yankees, the bond buyers— Nickles of Oklahoma said the Moynihan bill $127,000 for each job created—almost 21 times generally the most affluent members of soci- was not even ‘‘on the radar screen’’ of the more than the $6,250 it cost to create jobs ety—receive interest that is exempt from Republican leadership. through Maryland’s economic development federal taxes. Within a few days Moynihan beat a tac- fund. Naturally, the city has to pay borrowers a tical retreat, saying that he would consider Does the national economy benefit? No. lower interest rate than would Steinbrenner ‘‘the need for equitable relief for stadiums CRS reported: ‘‘Almost all stadium spending or any other team owner. Experts estimate already in the planning stages.’’ is spending that would have been made on that the cost of new facilities would rise by But Moynihan, the ranking Democrat on other activities within the United States.’’ 15–20 percent if teams were denied tax-ex- the Finance Committee, is not backing away Net benefits, therefore, are ‘‘near zero.’’ empt financing. This would add $30–40 mil- from his bill. And rather than being pil- A hero on this score, maybe a pioneer, is lion to the cost of a typical football sta- loried, he should be hailed as a hero of the Houston Mayor Bob Lanier, who has focused dium—enough to make several now on the times—an invaluable whistle-blower and city funds on bolstering police, rebuilding drawing boards unfeasible. friend to all U.S. taxpayers. neighborhoods, cleaning out sewers and When a city does finance a stadium, it Let’s get it straight. Unless current federal sprucing up parks. raises, the money and then leases the facil- law is changed, interest payments from the When Oilers owner Bud Adams applied ity to a team at some nominal rent—leaving billions of dollars of forthcoming stadium pressure for incentives to stay in Houston, the owner free to rake in revenues from tick- bonds will be totally tax-free to the affluent Lanier just said no. All that Nashville will et sales, television rights, parking, hot dogs investors who buy them. These are general- get for a total incentive pool of $650 million, and beer and, most important, luxury boxes. purpose bonds—which Congress intended for Lanier noted, is 10 home games a year. The With Nashville, Cleveland, Denver, Seattle, financing such truly public purposes as same cash, he told a reporter, would almost New Orleans and New York among the cities roads, sewers, schools, libraries and other finish the job of cleaning up Houston’s de- now in various stages of considering such public buildings. pressed neighborhoods. deals, Wall Street’s bond machine is prepar- And who will benefit from this largesse? If a few more mayors got their priorities as ing to issue about $7 billion in these bonds in Joe Six-Pack, who often can’t afford the straight as Lanier’s, the team owners would the next five to seven years, according to seats in these opulent new stadiums and have fewer cities to prey on. Fitch Investor Services. who’ll surely never darken the door of one of Of course, the federal treasury will have to their ritzy skyboxes? Of course not. [From the U.S.A. Today, June 28, 1996] make up the lost revenue—something it can The real winners are the owners and pro- SOCKED FOR STADIUMS do only by collecting more in taxes from or- fessional sports teams, who are utterly pro- dinary citizens. Unfortunately, ordinary citi- Hey, sports fans, here’s some good news, at ficient in blackmailing local officials: ‘‘Buy zens are no match for the huge lobbying ef- least if you’re a federal taxpayer, too: me my stadium, rent it to me for a pittance fort that has been launched against Moy- Nashville, Tenn., has put a $60 million sta- or nothing, channel the ticket and conces- nihan’s bill, and so Washington insiders are dium bond sale on hold for a couple of weeks. sion revenue to me, and if you don’t like my giving it little chance of passing, either this The reason: Sen. Daniel Patrick Moynihan, deal, I’ll skip town and leave you, Mr. year or next. Mayor, with egg all over your face for having D.-N.Y., introduced legislation this month But Moynihan, the ranking Democrat on lost a team.’’ that would take away federal tax exemptions the Senate Finance Committee, is a persist- Moynihan, to his credit, has been at this on bonds used to build sports facilities. ent cuss—as his success in wringing money struggle for years. In the mid-1980s, many The tax break has helped fund a bidding out of the feds for the refurbishment of Penn stadiums were financed by low-interest, tax- war for sports teams, leading teams such as Station shows—and he is right. So right that exempt private revenue bonds. Owners paid the Oilers to leave Houston for Nashville and the usually bland National Journal says ‘‘he off the cost over 30 or 40 years. But the fed- the Browns to move from Cleveland to Balti- should be hailed as a hero of the times—an eral taxpayer was clipped, because no taxes more and become the Ravens. invaluable whistleblower and friend of all were collected. Moynihan’s answer was to And for no legitimate national purpose. U.S. taxpayers.’’ write conditions into the 1986 tax reform law Wealthy owners get almost all the stadium The nation’s mayors don’t think so. They that virtually choked off such revenue revenues while local, state and federal tax- say it’s none of the feds’ business which local bonds. payers pick up the bill. projects they choose to finance with their The owners were checkmated—but not for Local jobs? The nonpartisan Congressional tax-exempt bonds. And they argue that the long. They were soon exhibiting the gall to Research Service (CRS) last month reported construction of stadiums created jobs. ask mayors to finance their stadiums with that Baltimore’s football stadium subsidies Finally, they speak of civic pride, of that general-purpose bonds. will cost $127,000 for each job created. That’s certain je ne sais quoi that goes out of a city And what a deal this was for them! At con- 21 times more than the $6,250 it costs to cre- when it loses a team to a rival, and the boost cessionary prices, they rent (but are not ulti- ate jobs through Maryland’s economic devel- it gets when it lures a new team or retains mately responsible for) their stadiums. And opment fund. an old one by offering its owner a cornucopia they are relieved of repaying the bonds: The And the nation’s economy? The CRS report of goodies. local taxpayers get to take care of that for notes: ‘‘Almost all stadium spending is They’re wrong—on all three counts. Since them. spending that would have been made on tax-exempt city bonds deprive the federal As for the tax-free interest payments— other activities within the United States.’’ government of revenue, a U.S. senator has well, Uncle Sam can take it on the chin as Thus, benefits are ‘‘near zero.’’ every right to try to stop this practice. lost revenue. Moynihan notes that one result If that. Communities that spend their own As for jobs, a study by the Congressional is ‘‘forcing the taxpayers in the team’s cur- money on stadiums often need federal aid for Research Service shows that the cost per job rent hometown to pay for the team’s new other programs. So federal taxpayers get hit created by Baltimore’s new subsidized foot- stadium in a new city.’’ twice: first with tax exemptions that reduce ball stadium came to $127,000—compared But mayors found it tough to say no. Fed- federal revenues, then with aid that in- with $6,250 for jobs created by the state’s eral and state aid was shrinking. If not an- creases spending. Bad all around. economic development fund. other city, nearby rapacious suburbs would Moynihan’s right. Get rid of the exemp- Which brings us to civic pride, the tough- bid for their sports teams. So many said yes. tion. And then, cut other federal aid, too. If est of all the arguments to appraise. There September 20, 1996 CONGRESSIONAL RECORD — SENATE S11105 can be no doubt that sports fans like having maybe they won’t be able to spend a zillion families whose loved ones were miss- a home team to root for. And that merchants dollars on second-string players. Instead, the ing, prisoners, or unaccounted for, bear in the area of the stadium benefit from its money now going into exorbitant salaries an additional burden—the burden of presence. would have to be used to build or fix up sta- uncertainty. They cannot bury their But there is no free lunch—at least not for diums. people unlucky enough not to own a fran- That could start a downward spiral—or at loved ones and work through the grief chise in the NBA, NFL or Major League least a leveling off—in player salaries that that comes with loss. They live with Baseball. Tax money that the federal govern- might even have a spillover effect on ticket doubt, denial, and hope that somehow ment does not collect is not available for prices before they become totally out of their son, husband, brother, or father other things—education, health care or tax reach of the average family. will some day come home. cuts. Moynihan’s bill is not without its critics. There are 90,769 American service- When a city gives a team the gift of rent County Executive Gorski worries that elimi- members unaccounted for from wars in below market rates, or a special property tax nating the tax-exemption on stadium bonds the 20th century; 1,648 from World War deal, it deprives itself of revenues it would will make it harder for Erie County to fi- I, 78,794 from World War II, 8,177 from otherwise have to repair its streets, hire nance the $2.1 million needed to upgrade more cops, or spruce up its parks. Rich Stadium. The improvements are aimed Korea, and 2,150 from Southeast Asia. Which would boost New Yorkers’ morale at enticing the Buffalo Bills to sign a new We have made extensive efforts to gain more: a stadium athwart the West Side rail- lease and stay in Western New York. full accounting for all these road tracks or streets that don’t break car Gorski’s view is understandable for a pub- servicemembers. We aggressively con- axles and school buildings that don’t leak? lic official interested only in the current ne- tinue our talks with the Governments Not an easy question, but one to which gotiations. of Vietnam, Cambodia, and Laos to Houston mayor Bob Lanier thinks he has the But leases can be broken, as the former answer. When the Oilers tried to roll his city gain information about the servicemen Cleveland Browns illustrated. That team who went there but did not return. for a new stadium he turned them down, tell- moved to Baltimore after being offered a $200 ing the press that with the money it would million new stadium and financial entice- Those efforts continue and have re- cost him to keep the Oilers he could just ments ranging from free rent to all luxury- sulted in information about a few of about get the job of cleaning up Houston’s box, parking and stadium-ad revenue. our unaccounted-for servicemen and slum neighborhoods done. Could Erie County really compete with the recovery of 20 sets of remains be- Steinbrenner does have a real problem. that kind of civic insanity—and does it real- tween October 1995 and March 1996. Re- Until lately, the Yankees had been having a ly want it—if another community eyes the cent efforts with North Korea have also spectacular season, thanks in part to The Bills in a few years? Boss’ willingness to engage in the Daryl provided long overdue information Eliminating the tax exemption for stadium about missing Americans. Addition- Strawberry and Dwight Gooden rehabilita- bonds will make it that much harder for an- tion projects. other city to make that kind of offer. ally, we recovered the remains of a But attendance has not responded propor- Granted, it might mean Erie County would World War II hero this year, allowing tionately: The number of fans going to the pay a little more for its bonds now. But it his family finally to say their last fare- Stadium is not as high as the Yankees’ won- also would help assure the long-term pres- wells. However, we must not allow lost record would warrant, according to a ence of sports teams in small markets like quick comparison I have made with the these small successes to make us com- Buffalo. league-wide relationship between success on placent. We must continue our efforts And from a broader perspective, the meas- the field and success at the box office. and view the successes of today not as ure would mean taxpayers would no longer So Steinbrenner, who should not be ex- an end, but as a beginning in our ef- subsidize private sports enterprises by fund- pected to keep his team in a place in which ing what one congressional critic calls ‘‘a forts to gain more information in the he cannot maximize his profits, has every public-housing program for millionaires. upcoming years. reason to shop around for a new site to which A Congressional Research Service study es- Today, as we stop to look at the to take his athletes when his lease is up in timates the public is losing nearly $100 mil- POW/MIA flag which flies not only in The Bronx. Just as the Mets have every right lion a year on sports facilities now under to want a new field on which to display their the rotunda of our Nation’s Capitol but construction. During one five-year period in somewhat more problematic wares. all around this great country, I hope Moynihan has no objection to new sports the ’80s, those tax breaks cost taxpayers $18.2 all Americans will pause and remember emporia. ‘‘Building new professional sports billion. with pride, sadness, and hope for the facilities is fine with me,’’ he says. ‘‘But, Moynihan says that was never meant to be. future, the valiant efforts of these please, do not ask the American taxpayers to The 1986 Tax Reform Bill eliminated indus- trial development bonds, the original vehicle brave soldiers, sailors, airmen, and ma- pay for them.’’ rines who answered the call.∑ Whether or not the Senator gets his bill for tax-exempt bond financing for stadiums. passed over the kicking and screaming objec- But he says Congress didn’t prohibit using f tions of the nation’s politically potent may- governmental bonds for stadiums because the ‘‘possibility was too remote to have oc- CONCERNING A HOLD ON S. 555, A ors, its bond-issuing investment bankers and BILL TO AMEND THE PUBLIC its itinerant team-owners, Mayor Giuliani curred to us.’’ would do well to take Moynihan’s advice. But that loophole wasn’t too remote for HEALTH SERVICE ACT Perhaps Donald Trump and Steinbrenner wide-eyed local officials and profiteering ∑ Mr. WYDEN. Mr. President, I want to can strike a deal for a privately financed sta- team owners to uncover. Moynihan’s bill inform the Senate that I have put a dium. Or perhaps New York has enough rea- would close the loophole, saving taxpayers hold on S. 555 so that I may have time sons to be proud of its national and inter- millions. Those savings could be put to far better to negotiate my request that the Sen- national position to follow Houston’s lead, ate take up S. 697, the Domestic Vio- and wave goodbye to its sports mogul and his uses than helping wealthy team owners play millionaire athletes. one city against another in the stadium lence Identification and Referral Act, sweepstakes.∑ in conjunction with S. 555. I believe [From the Buffalo News, Aug. 11, 1996] f that if we take up a bill dealing with CLOSE LOOPHOLE THAT HAS THE PUBLIC the education of health professionals, SUBSIDIZING EVER GLITZIER STADIUMS NATIONAL POW/MIA RECOGNITION we should insure that doctors, nurses If the public really is fed up with subsidiz- DAY and other health professionals are ing wealthy team owners and athletes, it ∑ Mr. CRAIG. Mr. President, today is trained to identify, refer, and treat vic- will cheer a proposal to eliminate the tax ex- National POW/MIA Recognition Day tims of domestic violence. Domestic vi- emptions routinely granted bonds sold for and I rise to honor those brave Ameri- olence is the leading cause of injury to stadium projects. The proposal comes from Sen. Daniel Pat- cans whose fate remains uncertain. As women between 15 and 44. It seems to rick Moynihan, D–N.Y. It should be espe- we reflect not only on those coura- me that if the Federal Government is cially cheered in places like Western New geous servicemembers who so valiantly going to invest money in educating York, whose sports teams will be constant went off in defense of their country, we medical students, they should at least targets for raids by other cities as long as should also pause and remember the be trained in how to identify and refer those cities lure them with facilities built families and loved ones of those who cases of domestic violence. This is why with the help of tax exempts. never returned. The family who re- I have requested that the Senate and Take away these indirect subsidies, and those cities will not be able to dangle such ceived definite notice that a loved one the Committee on Labor and Human enticing packages before team owners. was positively killed in action could Resources consider my and Senator In fact, take away the public subsidy and mourn and grieve and learn to cope BOXER’s legislation in conjunction with force teams to build their own facilities, and with life alone; but those American S. 555.∑ S11106 CONGRESSIONAL RECORD — SENATE September 20, 1996 HEALTH INSURANCE REGULATION: on the cost of health insurance. Fur- general business practices, insurance execu- VARYING STATE REQUIREMENTS ther, it points out the lack of similar tives indicated that the added administra- AFFECT COST OF INSURANCE requirements for self-insured plans and tive cost of preparing these documents was marginal and that the additional informa- ∑ Mr. JEFFORDS. Mr. President, with that more and more small employers tion was also valuable to the insurer. the recent passage of the Health Insur- are self-funding their health plans. As The cost implications of small employer ance Portability and Accountability we continue our efforts to ensure that health insurance reforms, such as limits on Act of 1996, and the possible enactment all Americans have access to health preexisting condition exclusions recently of several health benefit provisions, I’d care services, this report will help us adopted in many states, remain unclear. The like to draw my colleagues’ attention better understand the experiences of cost information to date is mostly anecdotal the States and build upon them. and provides an incomplete view of these re- to a recently completed GAO report forms’ effects. Moreover, the rapid changes that surveys similar State health in- I ask that the executive summary of in health care markets, such as the contin- surance regulations and their impact the report be printed in the RECORD. ued growth and evolution of managed care, on the cost of health insurance. The summary follows: make it difficult to isolate the independent I asked the GAO to examine the HEALTH INSURANCE REGULATION: VARYING effect of the reforms. added costs associated with: First, pre- STATE REQUIREMENTS AFFECT COST OF IN- f mium taxes and other assessments; SURANCE SONS OF ITALY FOUNDATION second, mandated health benefits; RESULTS IN BRIEF EIGHTH ANNUAL NATIONAL EDU- third, finanancial solvency standards; State health insurance regulation imposes CATION AND LEADERSHIP and fourth, State health insurance re- requirements on health plans offered by in- AWARDS GALA forms affecting small employers. The surers that employers’ self-funded health report examines the impact of these re- plans do not have. These requirements bene- ∑ Mr. LAUTENBERG. Mr. President, I quirements on the cost of insured fit consumers; they also add costs to insured want to congratulate the Sons of Italy health plans. The extent to which these re- Foundation [SIF] for its eighth annual health plans compared with the cost of quirements increase insured health plans’ self-funded health plans subject to the National Education and Leadership costs compared with self-funded health Awards [NELA] gala, which was held Employee Retirement Income Security plans’ costs varies by state. The cost impact Act of 1974 [ERISA]. depends on the nature and scope of each May 2, 1996, at the Andrew W. Mellon Although States regulate health in- state’s regulations and on health plans’ typi- Auditorium, in Washington, DC. I had surance, the study indicates that State cal operating practices. the opportunity of attending this wor- regulation does not directly affect 4 State premium taxes and other assess- thy and inspirational event, and I have out of 10 people. ERISA preempts ments are the most direct and easily quan- had the honor of serving as chairman States from directly regulating em- tifiable cost that insured health plans face. of the NELA gala in the past. This wor- Premium taxes increase costs to commercial thy and inspirational annual event has ployer provision of health plans, but it health insurers by about 2 percent in most permits States to regulate health in- states. Other assessments not only tend to be gained wide recognition during the surers. Of the 114 million Americans smaller than the premium tax but can often past few years in Congress, the cor- with health coverage offered through a be deducted from premium taxes. These in- porate community, educational insti- private employer in 1993, about 60 per- clude assessments for guaranty funds that tutions, and others in the philan- cent participated in insured health pay the claims of insolvent plans and high- thropic community throughout the Na- plans that are subject to State insur- risk pools that provide coverage for individ- tion for its promotion of educational ance regulation. However, for plans uals unable to get private coverage because excellence and professional achieve- of preexisting conditions. ment. I commend the SIF for the en- covering the remaining 40 percent, Most states mandate that insurance poli- about 44 million people in 1993, the em- cies cover certain benefits and types of pro- couragement it provides to some of our ployer chose to self-fund and retain viders, such as mammography screening, Nation’s most outstanding young some financial risk for its health plan. mental health services, and chiropractors, scholars and future leaders. Because self-funded health plans may which raises claims costs to the extent that At this year’s event, the SIF pre- not be deemed to be insurance, ERISA such benefits would not otherwise have been sented scholarships to the winners of preempts them from State insurance covered. The cost effect varies due to dif- the 1996 National Leadership Grant regulation and premium taxation. Al- ferences in state laws and employer prac- Competition, an annual merit-based though ERISA includes fiduciary tices. For example, Virginia’s mandated ben- national scholarship competition. In efits accounted for about 12 percent of claims addition, the SIF presented the 1996 standards to protect employee benefit costs, according to a recent study. Earlier plan participants and beneficiaries studies estimated that mandated benefits NELA’s to Northwest Airlines Corp. from plan mismanagement, in other represented 22 percent of claims in Maryland Cochairman Alfred Checchi and Penn- areas, such as solvency standards, no and 5 percent in Iowa. In general, such cost sylvania State University football Federal requirements comparable to estimates are higher in states with more coach Joseph V. Paterno. In selecting State requirements for health insurers mandated benefits and in states that man- Messrs. Checchi and Paterno for this exist for self-funded health plans. date more costly benefits, such as mental honor and in awarding a merit-based Most States mandate that insurance health services and substance abuse treat- academic scholarship in each of their ment. These cost estimates represent the po- names, the SIF has recognized two of policies include certain benefits, such tential costs of mandated benefits to a as mammography screening and men- health plan that does not voluntarily offer the most outstanding role models in tal health services, which raises claims these benefits. Because most self-funded the Italian-American community. costs to the extent that the benefits plans offer many of the mandated benefits, The lives of these two men of enor- would not otherwise have been pro- their additional claims cost—were they re- mous achievement and strong char- vided. In general, the report indicates quired to comply—would not be as high as acter serve as reminders of why our that the costs are higher in States with the studies’ estimates. If required to comply forebears traveled to this country and more mandated benefits and in States with state mandates, however, self-funded why today’s immigrants are so eager to plans would lose flexibility in choosing what that mandate more costly benefits. make their homes in our great coun- benefits to offer and in offering a single, uni- try, where opportunity abounds for State financial solvency standards form health plan across states. have limited potential effect on costs State financial solvency standards have those willing to learn and work hard. because many insurers already exceed limited potential effect on costs because The achievements of these two men the State minimum requirements. In many insurers exceed the state minimum re- speak highly of the importance of addition, due to their recent enact- quirements and typically perform tasks like strong family support, educational ment, the cost implications of small those associated with the state financial re- achievement, and professional integ- employer health insurance reforms, porting requirements. Most insurers main- rity. These are values on which all of such as guaranteed issue, portability tain higher levels of capital and surplus than us agree, regardless of our racial, eth- the minimum state requirements, indicating nic, or religious backgrounds. These and rate restrictions, remain unclear. that the effect of the capital and surplus re- Mr. President, I feel this report pro- quirements on health insurance costs is gen- common values, aptly expressed vides useful information regarding the erally minimal. Although states require fi- through the NELA gala, are what bind benefits associated with State health nancial information and actuarial reports us as Americans. Most appropriately, insurance regulation and their impact that in some cases differ from the insurers’ the scholarships that the SIF awarded September 20, 1996 CONGRESSIONAL RECORD — SENATE S11107 in the names of Mr. Checchi and Mr. Mr. President, DAVID PRYOR is a leg- peace; a contest of perseverance and Paterno will support the dreams and endary figure in this body and I have love and the heart to win it all. Jen- aspirations of outstanding young stu- followed his career with great interest nifer Azzi has all these qualities, and dents. There is no more important and admiration. I recall that he first she has our repsect and admiration work for us to perform, no greater gift began his public service in Washington too.∑ we can give than to support our youth. as a Congressional page. Some time f The long and distinguished record of later he returned to Washington when TRIBUTE TO GUY YOUNG, A NEW generous support for education earned he was elected to serve as a United HAMPSHIRE HERO by the SIF and its parent organization, States Congressman. In fact, for a the Order Sons of Italy in America, while we served together in the House ∑ Mr. SMITH. Mr. President, I rise should be recognized and praised. These of Representatives. Aside from this as- today to pay tribute to Guy A. Young, generous contributions in support of sociation, I also have had the privilege a New Hampshire letter carrier, for his the future of our Nation are made of working closely with him on the selfless and heroic acts performed largely by the modest and heartfelt do- Senate Finance Committee and the while attempting to rescue a nine- nations of the hundreds of thousands of Senate Committee on Aging. month-old baby from a life threatening OSIA members throughout our United As many of my colleagues know, traffic accident. On September 25, 1996, States. During the past three decades, DAVID PRYOR is one of the President’s Guy Young of Allenstown, NH, will be OSIA and the SIF have distributed best and closest friends. This friendship presented with the National Associa- more than $21 million in academic has enabled him to go directly to the tion of Letter Carriers’ Regional Hero scholarships. The leaders and members President on critical matters confront- of the Year Award for his courageous of OSIA and the SIF have set an excel- ing the Senate. That is an unusual and act. lent example for other nonprofit and serious responsibility for a Senator to Unfortunately, when faced with dan- fraternal organizations in their unself- have, and DAVID PRYOR has acted com- ger, many people turn the other way ish support of the young people of our mendably. or, even worse, watch the accident, Nation. Mr. President, I personally will miss merely becoming bystanders. Guy I commend Mr. Paul S. Polo, na- DAVID PRYOR’s friendship. But, I also Young is not one of those people. Guy tional president of OSIA and chairman will miss his intelligence and counsel is a letter carrier for the U.S. Postal of the SIF; Mr. Valentino Ciullo, presi- Service and serves the residents of dent of the SIF; Ms. Jo-Anne Gauger, tremendously. ∑ f Allenstown, NH. He was on his usual chairwoman of OSIA’s National Edu- route one morning recently when he cation Committee; Mr. Joseph E. SALUTE TO TENNESSEE noticed a major traffic accident had oc- Antonini, 1996 NELA gala chairman; OLYMPIAN JENNIFER AZZI curred at the intersection in front of and Dr. Philip R. Piccigallo, national ∑ Mr. FRIST. Mr. President, I rise him. Without thinking twice, Guy executive director of the OSIA and the today to commend a young Ten- rushed to the scene, where he encoun- SIF, for their leadership roles in the nessean, Miss Jennifer Azzi, of Oak tered the driver, a frantic mother, 1996 NELA gala and the National Lead- Ridge, on her performance with the screaming because her baby was still in ership Grant Competition. gold-medal winning U.S. Olympic wom- Listed below are the names of the 12 the overturned van. Guy immediately winners of the 1996 National Leadership en’s basketball team, also known as climbed over shards of glass, through a Grant Competition. These young men the Real Dream Team. broken window, and searched for the Jennifer has been active in the sport and women represent our Nation’s infant. Not until he heard the baby’s of basketball for the past decade, first, highest level of academic achievement horrific scream did he look up and see and leadership potential. I offer con- at Oak Ridge High School, then at the baby dangling upside down, still gratulations and heartfelt wishes for Stanford University, and now the strapped into his car seat. Realizing future success to: Mr. Michael Sollazzo, Olympics. Jennifer’s commitment not that the van could burst into flames at Henry Salvatori Scholarship; Mr. An- only to the sport, but to continuing to any second, Guy desperately struggled drea Mazzariello, Alfred Checchi Schol- improve her skills and play is the type with the baby’s seat belt until he fi- arship; Mr. Brian Iammartino, Joseph of determination that makes our nally forced it free. He then passed the V. Paterno Scholarship; Ms. Jillian atheletes excel and bring home the 9-month-old infant out the window to Catalanotti, Dr. Vincenzo Sellaro gold, time and time again. the safety of his mother’s arms. Once Scholarship; Mr. Todd Builione, She reminds us all that with deter- the emergency vehicles arrived and as- Carlone Family/Peter B. Gay Scholar- mination, commitment and a little sumed control of the situation, Guy re- ship; Mr. Ben Jamieson, Hon. Frank J. help, we can all be winners. At a recent turned to his postal truck and contin- Montemuro Jr. Scholarship; Mr. An- party in her honor, Jennifer Azzi said ued delivering mail to the residents of thony Draye, Joseph E. Antonini that ‘‘With success, comes responsibil- Allenstown. Scholarship; Ms. Stephanie Di Vito, ity.’’ Modestly, she tells us that many Guy is an example of a truly honor- Hon. Silvio O. Conte Scholarship; Ms. people have helped her get to where she able New Hampshire citizen. Not only Anastasia Ferrante, Lou Carnesecca is and now she wants to help others do did he risk personal injury to help a Scholarship; Mr. Federico Rossi, Dr. the same. Following the Olympics, she baby boy in danger, but he acted Anthony S. Fauci Scholarship; Mr. began teaching at a basketball camp promptly and courageously. He is in- Corey Ciocchetti, Pearl Tubiolo Schol- where she is helping today’s youth deed a hero. arship; and Mr. William Karazsia, build their skills and sportsmanship. The National Association of Letter OSIA-John Cabot University Scholar- Jennifer’s triumph on the court is re- Carriers [NALC] honors a national ship and the Pietro Secchia Scholar- markable, but more important is the hero, three regional heroes, a national ship.∑ virtue of her skills and determination humanitarian, and a branch service f off the court. She is a true Olympian, awardee each year. Those awards are competing for honor for herself and her presented to individuals who risk their TRIBUTE TO SENATOR DAVID country. The Olympics in Atlanta this lives for others, or who make personal PRYOR year were a success for all Americans. contributions for a worthy cause. The ∑ Mr. PRESSLER. Mr. President, But Jennifer’s victory was a bright, awards also give the NALC an oppor- DAVID PRYOR is a good friend of mine. shining moment in a bright, shining tunity to express its gratitude and ap- Over the years, I have had the privilege basketball career for this young preciation to those letter carriers of getting to know David and his wife woman from east Tennessee. Looking whose meritorious service has earned Barbara quite well. I have attended at her record, I believe she has an even theirselves honor. Guy undoubtedly de- several events he has sponsored in Tex- brighter future ahead. serves this special recognition for his arkana, AR, to raise needed funds for Mr. President, Jennifer’s victory re- heroic act. charitable organizations. I even have minds us of what the Olympics can be Mr. President, people who respond, as traveled to Little Rock to speak at col- for each of us—a competition between Guy did, in dangerous and life threat- leges. countries without casualties, only ening situations are indeed brave and S11108 CONGRESSIONAL RECORD — SENATE September 20, 1996 unselfish. Without Guy’s immediate re- will go to upper-income Americans and we are going to have the best education action, a 9-month-old infant may not pay for it by cutting the Medicare Pro- system in the world? That ought to be have survived. I am proud to call Guy gram, most of which helps lower-in- our country’s goal. In every corner of Young one of New Hampshire’s special come Americans. America it ought to be our goal to citizens. He has truly made us all very And they said we have a new eco- build our education system that is the proud of him. Congratulations Guy, on nomic plan for America as well. Let me finest in the world. a job well done!∑ describe it to you—not in my words, Jobs. Our goal ought to be to find a f but in the words of a former Repub- way to provide more economic growth, lican, a columnist who described it this an expanded economy, a trade balance ORDER OF PROCEDURE way. He said: that is not in deep deficit but one that Mr. DORGAN. Mr. President, I under- Their economic plan proposed that you is in reasonable balance with jobs stay- stand the majority leader will be here take the 20 percent of the people with the ing here, not moving overseas. to make unanimous-consent requests. lowest incomes, and say to those people, Crime. Dealing with the epidemic of While waiting for the majority leader ‘‘You are now going to bear the burden of 80 crime in America in a thoughtful way, to come to the floor, I would like to percent of the spending cuts that we propose a manner in which maybe both parties make a couple of comments. in Government.’’ would agree dealing with the epidemic f The same economic plan would say to of violent crime is in the interest of all those who have 20 percent of the high- Americans. THE 104TH CONGRESS est incomes in America, you should And the environment. In 20 years we Mr. DORGAN. Mr. President, today, smile because you are going to receive have doubled the use of energy in as is the case on most days when the 80 percent of the benefit of our tax America, and at the end of 20 years Senate is in session, we have seen in cuts. doubling the use of energy we have morning business a block of time of- A curious economic program, one cleaner air and cleaner water. No one fered to those who come to the floor to that when the American people got 20 years ago would have predicted that describe what is wrong with the Sen- onto it they did not like very much. possible. Improving on that record as ate, what is wrong with the President, And so the 104th Congress which start- well. and why the revolution that was of- ed with almost a coronation is now Mr. President, I see my colleague fered at the start of the 104th Congress kind of limping to a conclusion with from Mississippi, the majority leader, has failed to achieve its goals. In fact, the folks who were so anxious to get Senator LOTT, is here to make unani- today one of the speakers said, well, here now wanting to leave. mous-consent requests. Let me not the reason the Senate is still in session I was reading last evening again a delay him and the Senate further. I is because the people on this side of the book that was written by a colleague of would be happy to yield the floor for aisle —the Democrats—are keeping the ours, Senator BYRD from West Vir- the unanimous-consent request. Senate in session for political purposes, ginia, a book that is compilations of The PRESIDING OFFICER. The ma- apparently, not letting those who want some presentations he has made in this jority leader is recognized. to go home to go home. Chamber. And in part of the book he is f I listened to that. I thought to my- discussing the old Roman Senate and a UNANIMOUS-CONSENT REQUEST self, this is a very curious statement lot of historical references in the book from someone who is a Member of the that are quite interesting, one of them Mr. LOTT. I thank the Senator from Senate. Anyone who is a Member of the about Hannibal which I mentioned to North Dakota. Senate would probably know that we our caucus the other day, Hannibal I know he is going to be staying so have not done our work. We are sup- crossing the Alps. All of us studied in we can go through these consent re- posed to pass appropriations bills. That school about Hannibal. What a remark- quests that we have. I would like to is what funds the functions of Govern- able achievement. This man took, I be- begin, Mr. President, by asking unani- ment. The fact is, the largest appro- lieve, 36 elephants and crossed the Alps mous consent that when the Senate re- priations bill that we passed in the with these elephants, and, of course, ceives from the House a joint resolu- year has not been completed. Four ap- that is what we read about in our his- tion making continuing appropriations propriations bills will likely now be tory books—Hannibal crossed the Alps for fiscal year 1997, the joint resolution rolled into a continuing resolution—I with his elephants. Quite remarkable. be placed on the calendar and the Sen- guess five appropriations bills rolled Hannibal, in fact, was quite a master- ate proceed to consider the joint reso- into a continuing resolution—and not ful tactician and strategist and had lution on Tuesday, September 24, or adopted by this Congress at all. The re- quite an interesting record as a com- any day thereafter after consultation quirement is that is supposed to be mander, military strategist. But what with the Democratic leader and it be done by September 30. It will not be you do not remember and what Senator considered under the following agree- done. The Congress will not have done BYRD described in his book is the end ment: 1 hour equally divided on the its work. The Congress will not have stage of Hannibal. Hannibal lost an joint resolution, third reading and followed the requirements in law. eye. All but one of his elephants died, adoption of the joint resolution occur- So we will pass what is called a con- of course. There was one remaining ring no later than 9 p.m. Wednesday, tinuing resolution, which is defined as emaciated elephant, and the last vision September 25. The PRESIDING OFFICER. Without a legislative failure because the Con- as I read last evening in the book is of objection—— gress didn’t do the job it was supposed this one-eyed Carthaginian soldier Mr. DORGAN. Reserving the right to to do. We are still here because the named Hannibal riding the last of his object—Mr. President, reserving the Congress has not completed its work. emaciated elephants across the plains right to object—— That is not rocket science. If the Con- of Italy. I thought to myself, you The PRESIDING OFFICER. Is there gress does not get its job done, it ought know, that reminds me a little bit of objection? not go home. the way the 104th Congress is ending Mr. DORGAN. Reserving the right to Well, this has been a remarkable up—the last emaciated elephant being object—— Congress by any measurement. I under- ridden across the plains of Italy. Mr. LOTT. I thought the Chair did a stand why some want to go home. In We have a responsibility in Congress very good job. fact, the very people who want to go to do what the people expect us to do Mr. DORGAN.—And I shall object, I home quickly now are the people who on behalf of this country, and I think would observe this is one of the fastest couldn’t wait to get here at the start of this Congress has done some things Presiding Officers I have seen in some the Congress to begin the revolution— that are commendable but we have not while in the Senate. a rather curious, unusual revolution nearly scratched the surface on the Mr. LOTT. I was just commending that said we want to serve in Govern- menu of things that most people would him. ment because we do not like Govern- want us to deal with. Mr. DORGAN. As I understand the ment; what we would like to do is pro- Education. How do we move our Senator from Mississippi, he suggests vide a very large tax cut. Much of that country in a direction that assures us we agree to a piece of legislation not September 20, 1996 CONGRESSIONAL RECORD — SENATE S11109 yet written, agree to offer no amend- it to six. Of course, we would all have equally divided time; we have amend- ments to a bill, the provisions of which to try to find some way of agreeing on ments that could be offered. But there we are not yet sure might or might not our side and your side what the six is going to be objection. We are going need amending, and agree to it at a would be, and that would probably be- to get started on Tuesday morning— time not yet certain. Is that the sum fall your lot to try to help your side. Tuesday—on this issue. We will just go and substance of the proposal? He was not comfortable with that. I forward. If we cannot get it done Mr. LOTT. Mr. President, if I could said how about plan B. Let’s begin Wednesday, maybe we will get it done comment on that, I would like to begin Tuesday. Let’s not have any limit on Thursday. But I want to make it clear by reminding my colleagues that one amendments, any limit on time. Let’s to the American people that I am wor- week from Monday, this coming Mon- get started. We offer an amendment; ried about making sure we have a safe- day, is the end of the fiscal year. We you offer an amendment, second de- ty net under our people so that we do have a job to do. We are working with grees, sort of a jungle route, no limita- not get into this game at the end of the administration and with the appro- tions. Let’s get started. Let’s finish our trying to squeeze one last drop of addi- priators on both sides of the aisle to work. But we would finish it Wednes- tional spending out of the Federal Gov- get agreement on numbers and on lan- day night at 9 o’clock. ernment and have a potential problem guage that would go in a bill that I think Senator DASCHLE would like next Monday at the end of the fiscal would be necessary to keep all of the to do that but apparently there was an year. various departments working, assum- objection on that side. I do not quite So, I am agreeable to work with the ing we cannot get all the appropria- understand why. Democratic leadership, but this is a tions bills completed in advance of Another option is that we bring this way to get it started, and that is why that date. And it appears we will not, over attached to the Department of De- although work is still being done on I made the request. fense appropriations bill. To be per- Mr. DORGAN. Mr. President, con- some of them. fectly honest, there are some potential I believe the VA–HUD appropriations tinuing the reservation to object, and I problems with that. shall object here, the Senator from bill, for instance, will be ready. Every- But, I mean, remember now, we are body understands and expects that Mississippi, of course, knew that there proceeding on the assumption that we is not an agreement here and that we Labor-HHS and Education, Commerce- are going to be basically in agreement. Justice-State Department, and Interior are constrained to object at this mo- Basically, on numbers and language, ment. I might say that the House of and probably Treasury-Postal, at least we are coming together, and we think those four would be in a continuing Representatives indicates to our appro- we are going to get an agreement. The priations staff that they intend to be resolution. problem is, how do we, mechanically, Having said that, with that deadline, going to the Rules Committee on get it done? the end of the fiscal year is one week Thursday and taking up the bill on Fri- What is magic about 9 o’clock from Monday. This coming Monday is a day. And you are proposing a unani- Wednesday night? Once we do our work Jewish holiday. That leaves Tuesday, mous-consent request that we bring up here in the Senate on that, on the CR, Wednesday, Thursday, Friday, Satur- a House product that apparently is not and get it done Wednesday night, then day, Sunday, Monday, and the fiscal going to be done until Friday on the it has to go to conference. It will take, year is over. floor of the Senate on Tuesday. I am sure—no matter what happens, We can stand around and wait for Mr. LOTT. Will the Senator yield on there is going to be a little difference chaos and we will create it. We need a that point? safety net under our military men and between the House and the Senate. That has to go to conference. Should Mr. DORGAN. I will be happy to women and for our people that have yield. had fires and disasters and for our chil- we not give them at least a day, Thurs- day, maybe until Friday morning, to Mr. LOTT. I just double checked on dren and our schools. We need to make that. They will have a document ready sure that safety net is there and in get the conference agreement? Then we would have to take the con- on Tuesday, and my information is place through a continuing resolution. they will be done with this by Wednes- In order to get that done, we have to ference agreement up Friday afternoon or Saturday or Sunday. In order to get day. Maybe just physically it may be get started. later, but there is nothing rare about I have offered to the leadership in the our work done, we would have to com- the Senate going ahead and getting Senate, Senator DASCHLE in particular, plete it, I presume, sometime Friday started, provided we do not complete it the Democratic leader, and have com- night or Saturday so it could go to the before they do their work. But we can municated these various ideas to a President and he could sign it, and, you do a lot of work while they are working number of Senators, the appropriations know, everything would be under con- and complete it after they finish. chairmen, ranking Members in the trol. House, a number of options how we If we do not get started Tuesday, if Mr. DORGAN. I understand. But my could do this. Senator DASCHLE and I we do not complete it Wednesday, when point is, we do not have any intention have spent a lot of time talking it does it go to conference? Does it go to of delaying. By the same token, a through. I think he wants us to find a conference Thursday? Are they going unanimous-consent request that says, way to do it, but the problem is we to take all day Friday? Are they going ‘‘By the way, let us take something have to do it. We have to find a way to to be in conference over the weekend? that is not yet created and agree to do it. So I suggested that we would call Are we going to, then, go home 3 days bring it up on Tuesday at a point when the CR up and we will have available before the end of the fiscal year and see it won’t be done,’’ suggests that none on Tuesday the basis of the CR that we our constituents while we are on the of us will be able to offer any amend- could go forward with. The committees verge of running out of time on the fis- ments to what likely will be an enor- are coming to closure now. CJS—Com- cal year? I am not sure that is smart. mously bloated product, not nec- merce, Justice, State—I think they are So here is what I am trying to say. I essarily with things that will get ve- about ready. Interior is making good am flexible. I will work with you. Give toed, but with things that those in a progress. We are going to have it by me an idea. But I want to make it position to stick them in do stick into Tuesday. abundantly clear that, as majority this particular piece of legislation. So I said to Senator DASCHLE, why leader, I am committed to getting this So we want to work with the major- don’t we call this up on Tuesday and work done and that I am offering mul- ity leader. I think Senator DASCHLE let us get an agreement that we will tiple avenues to get there to the Demo- and you have talked a great deal on have 6 amendments in order on each cratic leadership. But at some point we this. We have no interest in delaying side, a total of 12 amendments, but are going to have to get an agreement. the business of the Senate. By the that we would complete the debate on So, I just wanted to go through that. same token, we have no interest in amendments and pass it by Wednesday If this is not an acceptable arrange- agreeing to a process that will not night. ment, we need some kind of an agree- allow an opportunity to amend cir- He had some concerns about that. He ment. I thought this was a good one to cumstances in this piece of legislation said, I don’t know about trying to limit get started, that there be some time, that may well cry out for amendment. S11110 CONGRESSIONAL RECORD — SENATE September 20, 1996 So I am constrained to object to the ‘‘(A) required primary health services (as ices that are not included as required pri- unanimous-consent request the Sen- defined in subsection (b)(1)); and mary health services and that are appro- ator is now offering. ‘‘(B) as may be appropriate for particular priate to meet the health needs of the popu- The PRESIDING OFFICER. Objec- centers, additional health services (as de- lation served by the health center involved. fined in subsection (b)(2)) necessary for the tion is heard. Such term may include— adequate support of the primary health serv- ‘‘(A) environmental health services, in- f ices required under subparagraph (A); cluding— MEASURE READ THE FIRST for all residents of the area served by the ‘‘(i) the detection and alleviation of TIME—S. 2100 center (hereafter referred to in this section unhealthful conditions associated with water as the ‘catchment area’). supply; Mr. LOTT. Mr. President, I under- ‘‘(2) LIMITATION.—The requirement in para- ‘‘(ii) sewage treatment; stand that S. 2100, introduced today by graph (1) to provide services for all residents ‘‘(iii) solid waste disposal; Senator HATCH, is at the desk. I ask for within a catchment area shall not apply in ‘‘(iv) rodent and parasitic infestation; its first reading. the case of a health center receiving a grant ‘‘(v) field sanitation; The PRESIDING OFFICER. The only under subsection (f), (g), or (h). ‘‘(vi) housing; and clerk will report. ‘‘(b) DEFINITIONS.—For purposes of this sec- ‘‘(vii) other environmental factors related The assistant legislative clerk read tion: to health; and ‘‘(1) REQUIRED PRIMARY HEALTH SERVICES.— as follows: ‘‘(B) in the case of health centers receiving ‘‘(A) IN GENERAL.—The term ‘required pri- grants under subsection (f), special occupa- A bill (S. 2100) to provide for the extension mary health services’ means— tion-related health services for migratory of certain authority for the Marshal of the ‘‘(i) basic health services which, for pur- and seasonal agricultural workers, includ- Supreme Court and the Supreme Court po- poses of this section, shall consist of— ing— lice. ‘‘(I) health services related to family medi- ‘‘(i) screening for and control of infectious Mr. LOTT. I now ask for a second cine, internal medicine, pediatrics, obstet- diseases, including parasitic diseases; and reading and would object to my own re- rics, or gynecology that are furnished by ‘‘(ii) injury prevention programs, including quest on behalf of Senators on the physicians and where appropriate, physician prevention of exposure to unsafe levels of ag- Democratic side of the aisle. assistants, nurse practitioners, and nurse ricultural chemicals including pesticides. midwives; ‘‘(3) MEDICALLY UNDERSERVED POPU- The PRESIDING OFFICER. Objec- ‘‘(II) diagnostic laboratory and radiologic LATIONS.— tion is heard. services; ‘‘(A) IN GENERAL.—The term ‘medically un- f ‘‘(III) preventive health services, includ- derserved population’ means the population ing— of an urban or rural area designated by the HEALTH CENTERS CONSOLIDATION ‘‘(aa) prenatal and perinatal services; Secretary as an area with a shortage of per- ACT OF 1995 ‘‘(bb) screening for breast and cervical can- cer; sonal health services or a population group Mr. LOTT. Mr. President, I ask unan- designated by the Secretary as having a imous consent that the Senate now ‘‘(cc) well-child services; ‘‘(dd) immunizations against vaccine-pre- shortage of such services. proceed to the consideration of Cal- ‘‘(B) CRITERIA.—In carrying out subpara- endar No. 279, S. 1044. ventable diseases; ‘‘(ee) screenings for elevated blood lead graph (A), the Secretary shall prescribe cri- The PRESIDING OFFICER. The levels, communicable diseases, and choles- teria for determining the specific shortages clerk will report. terol; of personal health services of an area or pop- The assistant legislative clerk read ‘‘(ff) pediatric eye, ear, and dental ulation group. Such criteria shall— as follows: screenings to determine the need for vision ‘‘(i) take into account comments received A bill (S. 1044) to amend title III of the and hearing correction and dental care; by the Secretary from the chief executive of- Public Health Service Act to consolidate and ‘‘(gg) voluntary family planning services; ficer of a State and local officials in a State; reauthorize provisions relating to health and and centers, and for other purposes. ‘‘(hh) preventive dental services; ‘‘(ii) include factors indicative of the health status of a population group or resi- The PRESIDING OFFICER. Is there ‘‘(IV) emergency medical services; and ‘‘(V) pharmaceutical services as may be ap- dents of an area, the ability of the residents objection to the immediate consider- propriate for particular centers; of an area or of a population group to pay for ation of the bill? ‘‘(ii) referrals to providers of medical serv- health services and their accessibility to There being no objection, the Senate ices and other health-related services (in- them, and the availability of health profes- proceeded to consider the bill, which cluding substance abuse and mental health sionals to residents of an area or to a popu- had been reported from the Committee services); lation group. on Labor and Human Resources, with ‘‘(iii) patient case management services ‘‘(C) LIMITATION.—The Secretary may not amendments; as follows: (including counseling, referral, and follow-up designate a medically underserved popu- (The parts of the bill intended to be services) and other services designed to as- lation in a State or terminate the designa- sist health center patients in establishing tion of such a population unless, prior to stricken are shown in boldface brack- eligibility for and gaining access to Federal, ets and the parts of the bill intended to such designation or termination, the Sec- State, and local programs that provide or fi- retary provides reasonable notice and oppor- be inserted are shown in italic.) nancially support the provision of medical, tunity for comment and consults with— S. 1044 social, educational, or other related services; ‘‘(i) the chief executive officer of such Be it enacted by the Senate and House of Rep- ‘‘(iv) services that enable individuals to State; resentatives of the United States of America in use the services of the health center (includ- ‘‘(ii) local officials in such State; and Congress assembled, ing outreach and transportation services ‘‘(iii) the organization, if any, which rep- SECTION 1. SHORT TITLE. and, if a substantial number of the individ- resents a majority of health centers in such This Act may be cited as the ‘‘Health Cen- uals in the population served by a center are State. of limited English-speaking ability, the serv- ters Consolidation Act of 1995’’. ‘‘(D) PERMISSIBLE DESIGNATION.—The Sec- ices of appropriate personnel fluent in the retary may designate a medically under- SEC. 2. CONSOLIDATION AND REAUTHORIZATION language spoken by a predominant number OF PROVISIONS. served population that does not meet the cri- of such individuals); and Subpart I of part D of title III of the Public teria established under subparagraph (B) if ‘‘(v) education of patients and the general Health Service Act (42 U.S.C. 254b et seq.) is the chief executive officer of the State in population served by the health center re- amended to read as follows: which such population is located and local garding the availability and proper use of officials of such State recommend the des- ‘‘Subpart I—Health Centers health services. ignation of such population based on unusual ‘‘SEC. 330. HEALTH CENTERS. ‘‘(B) EXCEPTION.—With respect to a health local conditions which are a barrier to access ‘‘(a) DEFINITION OF HEALTH CENTER.— center that receives a grant only under sub- to or the availability of personal health serv- ‘‘(1) IN GENERAL.—For purposes of this sec- section (f), the Secretary, upon a showing of ices. tion, the term ‘health center’ means an en- good cause, shall— tity that serves a population that is medi- ‘‘(i) waive the requirement that the center ‘‘(c) PLANNING GRANTS.— cally underserved, or a special medically un- provide all required primary health services ‘‘(1) IN GENERAL.— derserved population comprised of migratory under this paragraph; and ‘‘(A) CENTERS.—The Secretary may make and seasonal agricultural workers, the home- ‘‘(ii) approve, as appropriate, the provision grants to public and nonprofit private enti- less, and residents of public housing, by pro- of certain required primary health services ties for projects to plan and develop health viding, either through the staff and support- only during certain periods of the year. centers which will serve medically under- ing resources of the center or through con- ‘‘(2) ADDITIONAL HEALTH SERVICES.—The served populations. A project for which a tracts or cooperative arrangements— term ‘additional health services’ means serv- grant may be made under this subsection September 20, 1996 CONGRESSIONAL RECORD — SENATE S11111

may include the cost of the acquisition, ex- ‘‘(2) USE OF FUNDS.—The costs for which a ‘‘(f) MIGRATORY AND SEASONAL AGRICUL- pansion, and modernization of existing build- grant may be made under subparagraph (A) TURAL WORKERS.— ings and construction of new buildings (in- or (B) of paragraph (1) may include the costs ‘‘(1) IN GENERAL.—The Secretary may cluding the costs of amortizing the principal of acquiring, expanding, and modernizing ex- award grants for the purposes described in of, and paying the interest on, loans) and isting buildings and constructing new build- subsections (c), (d), and (e) for the planning shall include— ings (including the costs of amortizing the and delivery of services to a special medi- ‘‘(i) an assessment of the need that the principal of, and paying interest on, loans), cally underserved population comprised of— population proposed to be served by the the costs of repaying loans for buildings, and ‘‘(A) migratory agricultural workers, sea- health center for which the project is under- the costs of providing training related to the sonal agricultural workers, and members of taken has for required primary health serv- provision of required primary health services the families of such migratory and seasonal ices and additional health services; and additional health services and to the agricultural workers who are within a des- ‘‘(ii) the design of a health center program management of health center programs. ignated catchment area; and for such population based on such assess- ‘‘(3) LIMITATION.—Not more than two ‘‘(B) individuals who have previously been ment; grants may be made under subparagraph (B) migratory agricultural workers but who no ‘‘(iii) efforts to secure, within the proposed of paragraph (1) for the same entity. longer meet the requirements of subpara- catchment area of such center, financial and ‘‘(4) AMOUNT.— graph (A) of paragraph (4) because of age or professional assistance and support for the ‘‘(A) IN GENERAL.—The amount of any disability and members of the families of project; grant made in any fiscal year under para- such individuals who are within such ‘‘(iv) initiation and encouragement of con- graph (1) to a health center shall be deter- catchment area. tinuing community involvement in the de- mined by the Secretary, but may not exceed velopment and operation of the project; and the amount by which the costs of operation ‘‘(2) ENVIRONMENTAL CONCERNS.—The Sec- ‘‘(v) proposed linkages between the center of the center in such fiscal year exceed the retary may enter into grants or contracts and other appropriate provider entities, such total of— under this subsection with public and private as health departments, local hospitals, and ‘‘(i) State, local, and other operational entities to— rural health clinics, to provide better coordi- funding provided to the center; and ‘‘(A) assist the States in the implementa- nated, higher quality, and more cost-effec- ‘‘(ii) the fees, premiums, and third-party tion and enforcement of acceptable environ- tive health care services. reimbursements, which the center may rea- mental health standards, including enforce- ‘‘(B) COMPREHENSIVE SERVICE DELIVERY sonably be expected to receive for its oper- ment of standards for sanitation in migra- NETWORKS AND PLANS.—The Secretary may ations in such fiscal year. tory agricultural worker labor camps, and make grants to health centers that receive ‘‘(B) PAYMENTS.—Payments under grants applicable Federal and State pesticide con- assistance under this section to enable the under subparagraph (A) or (B) of paragraph trol standards; and centers to plan and develop a network or (1) shall be made in advance or by way of re- ‘‘(B) conduct projects and studies to assist plan for the provision of health services, imbursement and in such installments as the the several States and entities which have which may include the provision of health Secretary finds necessary and adjustments received grants or contracts under this sec- services on a prepaid basis or through an- may be made for overpayments or underpay- tion in the assessment of problems related to other managed care arrangement, to some or ments. camp and field sanitation, exposure to unsafe to all of the individuals which the centers ‘‘(C) USE OF NONGRANT FUNDS.—Nongrant levels of agricultural chemicals including serve. Such a grant may only be made for funds described in clauses (i) and (ii) of sub- pesticides, and other environmental health such a center if— paragraph (A), including any such funds in hazards to which migratory agricultural ‘‘(i) the center has received grants under excess of those originally expected, shall be workers and members of their families are subsection (d)(1)(A) for at least 2 consecutive used as permitted under this section, and exposed. years preceding the year of the grant under may be used for such other purposes as are ‘‘(3) DEFINITIONS.—For purposes of this sub- this subparagraph or has otherwise dem- not specifically prohibited under this section section: onstrated, as required by the Secretary, that if such use furthers the objectives of the ‘‘(A) MIGRATORY AGRICULTURAL WORKER.— such center has been providing primary care project. The term ‘migratory agricultural worker’ services for at least the 2 consecutive years ‘‘(e) INFANT MORTALITY GRANTS.— means an individual whose principal employ- immediately preceding such year; and ‘‘(1) IN GENERAL.—The Secretary may make ment is in agriculture on a seasonal basis, ‘‘(ii) the center provides assurances satis- grants to health centers for the purpose of who has been so employed within the last 24 factory to the Secretary that the provision assisting such centers in— months, and who establishes for the purposes of such services on a prepaid basis, or under ‘‘(A) providing comprehensive health care of such employment a temporary abode. and support services for the reduction of— another managed care arrangement, will not ‘‘(B) SEASONAL AGRICULTURAL WORKER.— result in the diminution of the level or qual- ‘‘(i) the incidence of infant mortality; and The term ‘seasonal agricultural worker’ ‘‘(ii) morbidity among children who are ity of health services provided to the medi- means an individual whose principal employ- less than 3 years of age; and cally underserved population served prior to ment is in agriculture on a seasonal basis ‘‘(B) developing and coordinating service the grant under this subparagraph. and who is not a migratory agricultural and referral arrangements between health Any such grant may include the acquisition worker. centers and other entities for the health and lease, expansion, and modernization of ‘‘(C) AGRICULTURE.—The term ‘agriculture’ management of pregnant women and chil- existing buildings, construction of new means farming in all its branches, includ- dren described in subparagraph (A). buildings, acquisition or lease of equipment ing— ‘‘(2) PRIORITY.—In making grants under which may include data and information sys- ‘‘(i) cultivation and tillage of the soil; this subsection the Secretary shall give pri- tems, and providing training and technical ‘‘(ii) the production, cultivation, growing, assistance related to the provision of health ority to health centers providing services to any medically underserved population and harvesting of any commodity grown on, services on a prepaid basis or under another in, or as an adjunct to or part of a commod- managed care arrangement, and for other among which there is a substantial incidence of infant mortality or among which there is ity grown in or on, the land; and purposes that promote the development of ‘‘(iii) any practice (including preparation managed care networks and plans. a significant increase in the incidence of in- fant mortality. and processing for market and delivery to ‘‘(2) LIMITATION.—Not more than two storage or to market or to carriers for trans- grants may be made under this subsection ‘‘(3) REQUIREMENTS.—The Secretary may portation to market) performed by a farmer for the same project, except that upon a make a grant under this subsection only if or on a farm incident to or in conjunction showing of good cause, the Secretary may the health center involved agrees that— with an activity described in clause (ii). make additional grant awards. ‘‘(A) the center will coordinate the provi- ‘‘(d) OPERATING GRANTS.— sion of services under the grant to each of ‘‘(g) HOMELESS POPULATION.— ‘‘(1) AUTHORITY.— the recipients of the services; ‘‘(1) IN GENERAL.—The Secretary may ‘‘(A) IN GENERAL.—The Secretary may ‘‘(B) such services will be continuous for award grants for the purposes described in make grants for the costs of the operation of each such recipient; subsections (c), (d), and (e) for the planning public and nonprofit private health centers ‘‘(C) the center will provide follow-up serv- and delivery of services to a special medi- that provide health services to medically un- ices for individuals who are referred by the cally underserved population comprised of derserved populations. center for services described in paragraph homeless individuals, including grants for ‘‘(B) ENTITIES THAT FAIL TO MEET CERTAIN (1); innovative programs that provide outreach REQUIREMENTS.—The Secretary may make ‘‘(D) the grant will be expended to supple- and comprehensive primary health services grants, for a period of not to exceed 2-years, ment, and not supplant, the expenditures of to homeless children and children at risk of for the costs of the operation of public and the center for primary health services (in- homelessness. nonprofit private entities which provide cluding prenatal care) with respect to the ‘‘(2) REQUIRED SERVICES.—In addition to re- health services to medically underserved purpose described in this subsection; and quired primary health services (as defined in populations but with respect to which the ‘‘(E) the center will coordinate the provi- subsection (b)(1)), an entity that receives a Secretary is unable to make each of the de- sion of services with other maternal and grant under this subsection shall be required terminations required by subsection child health providers operating in the to provide substance abuse services as a con- ø(j)¿(i)(3). catchment area. dition of such grant. S11112 CONGRESSIONAL RECORD — SENATE September 20, 1996

‘‘(3) SUPPLEMENT NOT SUPPLANT REQUIRE- sidering an application for a grant under who, as a group, represent the individuals MENT.—A grant awarded under this sub- subparagraph (A) or (B) of subsection (d)(1), being served by the center; section shall be expended to supplement, and the Secretary may require as a condition to ‘‘(ii) meets at least once a month, selects not supplant, the expenditures of the health the approval of such application an assur- the services to be provided by the center, center and the value of in kind contributions ance that the applicant will provide any schedules the hours during which such serv- for the delivery of services to the population health service defined under paragraphs (1) ices will be provided, approves the center’s described in paragraph (1). and (2) of subsection (b) that the Secretary annual budget, approves the selection of a di- ‘‘(4) DEFINITIONS.—For purposes of this sec- finds is needed to meet specific health needs rector for the center, and, except in the case tion: of the area to be served by the applicant. of a governing board of a public center (as ‘‘(A) HOMELESS INDIVIDUAL.—The term Such a finding shall be made in writing and defined in the second sentence of this para- ‘homeless individual’ means an individual a copy shall be provided to the applicant. graph), establishes general policies for the who lacks housing (without regard to wheth- ‘‘(3) REQUIREMENTS.—Except as provided in center; and er the individual is a member of a family), subsection (d)(1)(B), the Secretary may not ‘‘(iii) in the case of an application for a including an individual whose primary resi- approve an application for a grant under sub- second or subsequent grant for a public cen- dence during the night is a supervised public paragraph (A) or (B) of subsection (d)(1) un- ter, has approved the application or if the or private facility that provides temporary less the Secretary determines that the en- governing body has not approved the applica- living accommodations and an individual tity for which the application is submitted is tion, the failure of the governing body to ap- who is a resident in transitional housing. a health center (within the meaning of sub- prove the application was unreasonable; ‘‘(B) SUBSTANCE ABUSE.—The term ‘sub- section (a)) and that— except that, upon a showing of good cause stance abuse’ has the same meaning given ‘‘(A) the required primary health services the Secretary shall waive all or part of the such term in section 534(4). of the center will be available and accessible requirements of this subparagraph in the ‘‘(C) SUBSTANCE ABUSE SERVICES.—The in the catchment area of the center prompt- case of a health center that receives a grant term ‘substance abuse services’ includes de- ly, as appropriate, and in a manner which pursuant to subsection (f), (g), (h), or (o); toxification and residential treatment for assures continuity; ‘‘(H) the center has developed— substance abuse provided in settings other ‘‘(B) the center will have an ongoing qual- ‘‘(i) an overall plan and budget that meets than hospitals. ity improvement system that includes clini- the requirements of the Secretary; and ‘‘(h) RESIDENTS OF PUBLIC HOUSING.— cal services and management, and that ‘‘(ii) an effective procedure for compiling ‘‘(1) IN GENERAL.—The Secretary may maintains the confidentiality of patient and reporting to the Secretary such statis- award grants for the purposes described in records; tics and other information as the Secretary subsections (c), (d), and (e) for the planning ‘‘(C) the center will demonstrate its finan- may require relating to— and delivery of services to a special medi- cial responsibility by the use of such ac- ‘‘(I) the costs of its operations; cally underserved population comprised of counting procedures and other requirements ‘‘(II) the patterns of use of its services; residents of public housing (such term, for as may be prescribed by the Secretary; ‘‘(III) the availability, accessibility, and purposes of this subsection, shall have the ‘‘(D) the center— acceptability of its services; and same meaning given such term in section ‘‘(i) has or will have a contractual or other ‘‘(IV) such other matters relating to oper- 3(b)(1) of the United States Housing Act of arrangement with the agency of the State, in ations of the applicant as the Secretary may 1937) and individuals living in areas imme- which it provides services, which administers require; diately accessible to such public housing. or supervises the administration of a State ‘‘(I) the center will review periodically its ‘‘(2) SUPPLEMENT NOT SUPPLANT.—A grant plan approved under title XIX of the Social catchment area to— awarded under this subsection shall be ex- Security Act for the payment of all or a part ‘‘(i) ensure that the size of such area is pended to supplement, and not supplant, the of the center’s costs in providing health serv- such that the services to be provided through expenditures of the health center and the ices to persons who are eligible for medical the center (including any satellite) are avail- value of in kind contributions for the deliv- assistance under such a State plan; or able and accessible to the residents of the ery of services to the population described in ‘‘(ii) has made or will make every reason- area promptly and as appropriate; paragraph (1). able effort to enter into such an arrange- ‘‘(ii) ensure that the boundaries of such ‘‘(3) CONSULTATION WITH RESIDENTS.—The ment; area conform, to the extent practicable, to Secretary may not make a grant under para- ‘‘(E) the center has made or will make and relevant boundaries of political subdivisions, graph (1) unless, with respect to the resi- will continue to make every reasonable ef- school districts, and Federal and State dents of the public housing involved, the ap- fort to collect appropriate reimbursement health and social service programs; and plicant for the grant— for its costs in providing health services to ‘‘(iii) ensure that the boundaries of such ‘‘(A) has consulted with the residents in persons who are entitled to insurance bene- area eliminate, to the extent possible, bar- the preparation of the application for the fits under title XVIII of the Social Security riers to access to the services of the center, grant; and Act, to medical assistance under a State including barriers resulting from the area’s ‘‘(B) agrees to provide for ongoing con- plan approved under title XIX of such Act, or physical characteristics, its residential pat- sultation with the residents regarding the to assistance for medical expenses under any terns, its economic and social grouping, and planning and administration of the program other public assistance program or private available transportation; carried out with the grant. health insurance program; ‘‘(J) in the case of a center which serves a ‘‘(i) APPLICATIONS.— ‘‘(F) the center— population including a substantial propor- ‘‘(1) SUBMISSION.—No grant may be made ‘‘(i) has prepared a schedule of fees or pay- tion of individuals of limited English-speak- under this section unless an application ments for the provision of its services con- ing ability, the center has— therefore is submitted to, and approved by, sistent with locally prevailing rates or ‘‘(i) developed a plan and made arrange- the Secretary. Such an application shall be charges and designed to cover its reasonable ments responsive to the needs of such popu- submitted in such form and manner and costs of operation and has prepared a cor- lation for providing services to the extent shall contain such information as the Sec- responding schedule of discounts to be ap- practicable in the language and cultural con- retary shall prescribe. plied to the payment of such fees or pay- text most appropriate to such individuals; ‘‘(2) DESCRIPTION OF NEED.—An application ments, which discounts are adjusted on the and for a grant under subparagraph (A) or (B) of basis of the patient’s ability to pay; ‘‘(ii) identified an individual on its staff subsection (d)(1) for a health center shall in- ‘‘(ii) has made and will continue to make who is fluent in both that language and in clude— every reasonable effort— English and whose responsibilities shall in- ‘‘(A) a description of the need for health ‘‘(I) to secure from patients payment for clude providing guidance to such individuals services in the catchment area of the center; services in accordance with such schedules; and to appropriate staff members with re- ‘‘(B) a demonstration by the applicant that and spect to cultural sensitivities and bridging the area or the population group to be served ‘‘(II) to collect reimbursement for health linguistic and cultural differences; and by the applicant has a shortage of personal services to persons described in subpara- ‘‘(K) the center, has developed an ongoing health services; and graph (E) on the basis of the full amount of referral relationship with one or more hos- ‘‘(C) a demonstration that the center will fees and payments for such services without pitals. be located so that it will provide services to application of any discount; and For purposes of subparagraph (G), the term the greatest number of individuals residing ‘‘(iii) has submitted to the Secretary such ‘public center’ means a health center funded in the catchment area or included in such reports as the Secretary may require to de- (or to be funded) through a grant under this population group. termine compliance with this subparagraph; section to a public agency. Such a demonstration shall be made on the ‘‘(G) the center has established a governing ‘‘(4) APPROVAL OF NEW OR EXPANDED SERV- basis of the criteria prescribed by the Sec- board which except in the case of an entity ICE APPLICATIONS.—The Secretary shall ap- retary under subsection (b)(3) or on any operated by an Indian tribe or tribal or In- prove applications for grants under subpara- other criteria which the Secretary may pre- dian organization under the Indian Self-De- graph (A) or (B) of subsection (d)(1) for scribe to determine if the area or population termination Act— health centers which— group to be served by the applicant has a ‘‘(i) is composed of individuals, a majority ‘‘(A) have not received a previous grant shortage of personal health services. In con- of whom are being served by the center and under such subsection; or September 20, 1996 CONGRESSIONAL RECORD — SENATE S11113

‘‘(B) have applied for such a grant to ex- public housing, and migratory and seasonal ‘‘(b) GRANTS.—Under the program referred pand their services; agricultural workers, and the appropriate- to in subsection (a), the Secretary, acting in such a manner that the ratio of the medi- ness of the delivery systems involved in re- through the Director of the Office of Rural cally underserved populations in rural areas sponding to the needs of the particular popu- Health Policy, may award grants to expand which may be expected to use the services lations. Such report shall include an assess- access to, coordinate, restrain the cost of, provided by such centers to the medically ment of the relative health care access needs and improve the quality of essential health underserved populations in urban areas of the targeted populations and the rationale care services, including preventive and emer- which may be expected to use the services for any substantial changes in the distribu- gency services, through the development of integrated health care delivery systems or provided by such centers is not less than two tion of funds. networks in rural areas and regions. to three or greater than three to two. ‘‘(l) MEMORANDUM OF AGREEMENT.—In car- ‘‘(c) ELIGIBLE NETWORKS.— ‘‘(5) NEW CONSTRUCTION.—The Secretary rying out this section, the Secretary may ‘‘(1) OUTREACH NETWORKS.—To be eligible may make a grant under subsection (c) or (d) enter into a memorandum of agreement with a State. Such memorandum may include, to receive a grant under this section, an en- for the construction of new buildings for a tity shall— health center only if the Secretary deter- where appropriate, provisions permitting such State to— ‘‘(A) be a rural public or nonprofit private mines that appropriate facilities are not entity that is or represents a network or po- available through acquiring, modernizing, or ‘‘(1) analyze the need for primary health services for medically underserved popu- tential network that includes three or more expanding existing buildings and that the en- health care providers or other entities that tity to which the grant will be made has lations within such State; ‘‘(2) assist in the planning and development provide or support the delivery of health made reasonable efforts to secure from other care services; and sources funds, in lieu of the grant, to con- of new health centers; ‘‘(3) review and comment upon annual pro- ‘‘(B) in consultation with the State office struct such facilities. of rural health or other appropriate State ‘‘(j) TECHNICAL AND OTHER ASSISTANCE.— gram plans and budgets of health centers, in- cluding comments upon allocations of health entity, prepare and submit to the Secretary The Secretary may provide (either through an application, at such time, in such man- the Department of Health and Human Serv- care resources in the State; ‘‘(4) assist health centers in the develop- ner, and containing such information as the ices or by grant or contract) all necessary Secretary may require, including— technical and other nonfinancial assistance ment of clinical practices and fiscal and ad- ministrative systems through a technical as- ‘‘(i) a description of the activities which (including fiscal and program management the applicant intends to carry out using assistance and training in such management) sistance plan which is responsive to the re- quests of health centers; and amounts provided under the grant; to any public or private nonprofit entity to ‘‘(ii) a plan for continuing the project after assist entities in developing plans for, or op- ‘‘(5) share information and data relevant to the operation of new and existing health cen- Federal support is ended; erating as, health centers, and in meeting ‘‘(iii) a description of the manner in which the requirements of subsection (i)(2). ters. ‘‘(m) RECORDS.— the activities funded under the grant will ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(1) IN GENERAL.—Each entity which re- meet health care needs of underserved rural ‘‘(1) IN GENERAL.—For the purpose of carry- ceives a grant under subsection (d) shall es- populations within the State; and ing out this section there are authorized to tablish and maintain such records as the ‘‘(iv) a description of how the local com- be appropriated ø$756,000,000¿ $756,518,000 for Secretary shall require. munity or region to be served by the net- fiscal year 1996, and such sums as may be ‘‘(2) AVAILABILITY.—Each entity which is work or proposed network will be involved in necessary for each of the fiscal years 1997 required to establish and maintain records the development and ongoing operations of through 2000. under this subsection shall make such books, the network. ø‘‘(2) SPECIAL PROVISIONS.—The¿ documents, papers, and records available to ‘‘(2) FOR-PROFIT ENTITIES.—An eligible net- ‘‘(2) SPECIAL PROVISIONS.— the Secretary or the Comptroller General of work may include for-profit entities so long ‘‘(A) PUBLIC CENTERS.—The Secretary may the United States, or any of their duly au- as the network grantee is a nonprofit entity. not expend in any fiscal year, for grants under thorized representatives, for examination, ‘‘(3) TELEMEDICINE NETWORKS.— this section to public centers (as defined in the copying or mechanical reproduction on or off ‘‘(A) IN GENERAL.—An entity that is a second sentence of subsection (i)(3)) the govern- the premises of such entity upon a reason- health care provider and a member of an ex- ing boards of which (as described in subsection able request therefore. The Secretary and isting or proposed telemedicine network, or (i)(3)(G)(ii)) do not establish general policies for the Comptroller General of the United an entity that is a consortium of health care such centers, an amount which exceeds 5 per- States, or any of their duly authorized rep- providers that are members of an existing or cent of the amounts appropriated under this resentatives, shall have the authority to proposed telemedicine network shall be eligi- section for that fiscal year. For purposes of ap- conduct such examination, copying, and re- ble for a grant under this section. plying the preceding sentence, the term ‘public production. ‘‘(B) REQUIREMENT.—A telemedicine net- centers’ shall not include health centers that re- ‘‘(n) DELEGATION OF AUTHORITY.—The Sec- work referred to in subparagraph (A) shall, ceive grants pursuant to subsection (g) or (h). retary may delegate the authority to admin- at a minimum, be composed of— ‘‘(B) DISTRIBUTION OF GRANTS.— ister the programs authorized by this section ‘‘(i) a multispecialty entity that is located ‘‘(i) FISCAL YEAR 1996.—For fiscal year 1996, to any office within the Service, except that in an urban or rural area, which can provide the Secretary, in awarding grants under this the authority to enter into, modify, or issue 24-hour a day access to a range of specialty section shall ensure that the amounts made approvals with respect to grants or contracts care; and available under each of subsections (f), (g), and may be delegated only within the Health Re- ‘‘(ii) at least two rural health care facili- (h) in such fiscal year bears the same relation- sources and Services Administration. ties, which may include rural hospitals, ship to the total amount appropriated for such ‘‘(o) SPECIAL CONSIDERATION.—In making rural physician offices, rural health clinics, fiscal year under paragraph (1) as the amounts grants under this section, the Secretary rural community health clinics, and rural appropriated for fiscal year 1995 under each of shall give special consideration to the nursing homes. sections 329, 340, and 340A (as such sections ex- unique needs of sparsely populated rural ‘‘(d) PREFERENCE.—In awarding grants isted one day prior to the date of enactment of areas, including priority in the awarding of under this section, the Secretary shall give this section) bears to the total amount appro- grants for new health centers under sub- preference to applicant networks that in- priated under sections 329, 330, 340, and 340A sections (c) and (d), and the granting of waiv- clude— (as such sections existed one day prior to the ers as appropriate and permitted under sub- ‘‘(1) a majority of the health care providers date of enactment of this section) for such fiscal sections (b)(1)(B)(i) and (i)(3)(G).’’. serving in the area or region to be served by year. SEC. 3. RURAL HEALTH OUTREACH, NETWORK the network; ‘‘(ii) FISCAL YEARS 1997 AND 1998.—For each of DEVELOPMENT, AND TELEMEDICINE ‘‘(2) any federally qualified health centers, the fiscal years 1997 and 1998, the Secretary, in GRANT PROGRAM. rural health clinics, and local public health awarding grants under this section shall ensure (a) IN GENERAL.—Subpart I of part D of departments serving in the area or region; that the proportion of the amounts made avail- title III of the Public Health Service Act (42 ‘‘(3) outpatient mental health providers able under each of subsections (f), (g), and (h) U.S.C. 254b et seq.) (as amended by section 2) serving in the area or region; or is equal to the proportion of amounts made is further amended by adding at the end ‘‘(4) appropriate social service providers, available under each such subsection for the thereof the following new section: such as agencies on aging, school systems, previous fiscal year, as such amounts relate to ‘‘SEC. 330A. RURAL HEALTH OUTREACH, NET- and providers under the women, infants, and the total amounts appropriated for the previous WORK DEVELOPMENT, AND TELE- children program, to improve access to and fiscal year involved, increased or decreased by MEDICINE GRANT PROGRAM. coordination of health care services. not more than 10 percent. ‘‘(a) ADMINISTRATION.—The rural health ‘‘(e) USE OF FUNDS.— ‘‘(3) FUNDING REPORT.—The Secretary shall services outreach demonstration grant pro- ‘‘(1) IN GENERAL.—Amounts provided under annually prepare and submit to the appro- gram established under section 301 shall be grants awarded under this section shall be priate committees of Congress a report con- administered by the Office of Rural Health used— cerning the distribution of funds under this Policy (of the Health Resources and Services ‘‘(A) for the planning and development of section that are provided to meet the health Administration), in consultation with State integrated self-sustaining health care net- care needs of medically underserved popu- rural health offices or other appropriate works; and lations, including the homeless, residents of State governmental entities. ‘‘(B) for the initial provision of services. S11114 CONGRESSIONAL RECORD — SENATE September 20, 1996 ‘‘(2) EXPENDITURES IN RURAL AREAS.— and inserting ‘‘section 330 (other than sub- A key feature of the health centers is ‘‘(A) IN GENERAL.—In awarding a grant section (h))’’; and their strong emphasis on preventive under this section, the Secretary shall en- (2) in clauses (i) and (ii)(II) of section care. For the high risk populations sure that not less than 50 percent of the 1905(l)(2)(B) (42 U.S.C. 1396d(l)(2)(B)(i) and they serve, the centers reduce the de- grant award is expended in a rural area or to (ii)(II)) by striking ‘‘section 329, 330, 340, or mand for costly emergency and in-pa- provide services to residents of rural areas. 340A’’ and inserting ‘‘section 330’’. ‘‘(B) TELEMEDICINE NETWORKS.—An entity (c) REFERENCES.—Whenever any reference tient hospital care by emphasizing pre- described in subsection (c)(3) may not use in is made in any provision of law, regulation, vention, early intervention, and case excess of— rule, record, or document to a community management with good followup. One ‘‘(i) 40 percent of the amounts provided health center, migrant health center, public of the many vital missions of the cen- under a grant under this section to carry out housing health center, or homeless health ters is to reduce infant mortality and activities under paragraph (3)(A)(iii); and center, such reference shall be considered a low birthweight, by reaching out and ‘‘(ii) 20 percent of the amounts provided reference to a health center. helping pregnant women and their in- under a grant under this section to pay for (d) ADDITIONAL AMENDMENTS.—After con- fants receive timely care. the indirect costs associated with carrying sultation with the appropriate committees of In Massachusetts, these health cen- out the purposes of such grant. the Congress, the Secretary of Health and ters provide vital services to commu- ‘‘(3) TELEMEDICINE NETWORKS.— Human Services shall prepare and submit to nities across the State. Over 800,000 ‘‘(A) IN GENERAL.—An entity described in the Congress a legislative proposal in the subsection (c)(3), may use amounts provided form of an implementing bill containing persons receive primary and preventive under a grant under this section to— technical and conforming amendments to re- health care through the centers. This ‘‘(i) demonstrate the use of telemedicine in flect the changes made by this Act. care would otherwise be delayed or un- facilitating the development of rural health SEC. 5. EFFECTIVE DATE. available for those without access to care networks and for improving access to This Act and the amendments made by other assistance. In western Massachu- health care services for rural citizens; this Act shall become effective on October 1, setts, health centers have mobilized to ‘‘(ii) provide a baseline of information for a 1995. address complex problems such as high systematic evaluation of telemedicine sys- AMENDMENT NO. 5397 teenage birth rates, increasing rates of tems serving rural areas; HIV infection, and the high incidence ‘‘(iii) purchase or lease and install equip- (Purpose: To provide for a substitute ment; and amendment) of drug abuse and alcohol-related prob- ‘‘(iv) operate the telemedicine system and Mr. LOTT. Senator KASSEBAUM has a lems. In areas hard hit by the recent evaluate the telemedicine system. substitute amendment at desk. I ask recession, the centers provide a real op- ‘‘(B) LIMITATIONS.—An entity described in for its immediate consideration. portunity for uninsured and struggling subsection (c)(3), may not use amounts pro- The PRESIDING OFFICER. The families to receive comprehensive care. vided under a grant under this section— clerk will report. Community health centers are be- ‘‘(i) to build or acquire real property; The assistant legislative clerk read coming even more important as the ‘‘(ii) purchase or install transmission as follows: number of people who lack insurance equipment (such as laying cable or telephone continues to rise. Every year, approxi- The Senator from Mississippi [Mr. LOTT], lines, microwave towers, satellite dishes, mately 1 million more individuals, amplifiers, and digital switching equipment); for Mrs. KASSEBAUM proposes an amendment or numbered 5397. most of them children, lose their insur- ‘‘(iii) for construction, except that such Mr. LOTT. Mr. President, I ask unan- ance coverage. Today, over 41 million funds may be expended for minor renova- imous consent that reading of the Americans are uninsured. Current pro- tions relating to the installation of equip- amendment be dispensed with. jections estimate that the number will ment; The PRESIDING OFFICER. Without reach 50 million by the year 2000. ‘‘(f) TERM OF GRANTS.—Funding may not be Medicare and Medicaid, together objection, it is so ordered. provided to a network under this section for with grants under this program, make (The text of the amendment is print- in excess of a 3-year period. up almost 75 percent of the revenues ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— ed in today’s RECORD under ‘‘Amend- that support these centers. Reductions For the purpose of carrying out this section ments Submitted.’’) in this support would mean serious fi- there are authorized to be appropriated Mr. KENNEDY. Mr. President, com- nancial difficulty for all community $36,000,000 for fiscal year 1996, and such sums munity and migrant health centers as may be necessary for each of the fiscal health centers. years 1997 through 2000.’’. play a vital role in bringing affordable The centers already face a changing (b) TRANSITION.—The Secretary of Health and accessible community-based pri- health landscape that brings with it and Human Services shall ensure the contin- mary care to millions of Americans in both opportunities and threats to the ued funding of grants made, or contracts or underserved areas. Since its beginning cooperative agreements entered into, under future viability of the centers. Some in 1966, the Community Health Center centers are responding creatively, but subpart I of part D of title III of the Public Program has been the backbone of Fed- Health Service Act (42 U.S.C. 254b et seq.) (as others are having great difficulty. In such subpart existed on the day prior to the eral efforts to bring quality health care particular, the trend toward managed date of enactment of this Act), until the ex- to needy persons and areas throughout care raises serious concerns about the piration of the grant period or the term of the country. In inner cities and iso- ability of these health centers to con- the contract or cooperative agreement. Such lated rural areas, these health centers tinue to provide their communities funding shall be continued under the same have served millions of uninsured and with high quality, cost-effective pre- terms and conditions as were in effect on the underinsured people, including the el- ventive care and primary care services. date on which the grant, contract or cooper- derly, women and children at risk, and ative agreement was awarded, subject to the Several provisions in this bill are de- availability of appropriations. those with other special needs. Nation- signed to strengthen the centers and SEC. 4. TECHNICAL AND CONFORMING AMEND- wide, over 2,400 health centers provide help them compete in the changing MENTS. basic services to over 9 million persons marketplace. (a) IN GENERAL.—The Public Health Serv- a year. The Health Centers Consolidation ice Act is amended— In addition to basic care, these cen- Act consolidates and reauthorizes the (1) in section 224(g)(4) (42 U.S.C. 233(g)(4)) ters provide many other services, in- four health center programs—the Com- by striking ‘‘under’’ and all that follows cluding health education, public health munity Health Center Program, the through the end thereof and inserting ‘‘under screening, laboratory services, preven- section 330.’’; Migrant Health Center Program, the (2) in section 340C(a)(2) (42 U.S.C. 256c) by tive dental care, emergency care, phar- Health Services for the Homeless Pro- striking ø‘‘diseases’’¿ ‘‘Under’’ and all that macy services, substance abuse coun- gram, and the Health Services for Resi- follows through the end thereof and insert- seling, and social services. Many cen- dents of Public Housing Program. Con- ing ‘‘with assistance provided under section ters maintain extended hours for work- solidating these programs will elimi- 330.’’; and ing families. They offer care at mul- nate duplication while maintaining (3) by repealing subparts V and VI of part tiple sites, and use mobile clinics to their unique features that have made D of title III (42 U.S.C. 256 et seq.). reach rural patients. They employ mul- (b) SOCIAL SECURITY ACT.—The Social Se- them so effective. curity Act is amended— tilingual staff to reduce barriers to In addition, the bill helps health cen- (1) in clauses (i) and (ii)(I) of section care. They stay in touch with commu- ters to address one of the biggest prob- 1861(aa)(4)(A) (42 U.S.C. 1395x(aa)(4)(A)(i) and nity needs by working closely with lems they face—obtaining funds to de- (ii)(I)) by striking ‘‘section 329, 330, or 340’’ local groups. velop and operate their own managed September 20, 1996 CONGRESSIONAL RECORD — SENATE S11115 care networks or plans. Testimony be- and compete more effectively as busi- the Secretary to give special consider- fore the Senate Labor and Human Re- nesses in the health marketplace. ation to the unique needs of sparsely sources Committee concluded that par- Through the leadership of Senator populated rural areas and to give prior- ticipation in such networks was vital KASSEBAUM, this bill helps rural health ity to such areas in the awarding of to the future of the program, as States centers remove many of the barriers to health center planning and operating move more rapidly to place their Med- health care in rural America by au- grants. These provisions will give icaid population into managed care. thorizing grants for Rural Health Out- greater weight in the awarding of Health centers need to be able to reach, Network Development, and Tele- grants to such factors as the severe form networks and managed care plans medicine. These grant funds will en- shortages of primary care providers to serve their patients effectively. But able rural health centers to improve and geographic barriers inhibiting ac- since centers are public or nonprofit the quality of essential health care cess to care that are characteristic of corporations, they have limited reve- services. many areas in the Midwest and West. nues and relatively few assets. As a re- In sum, this legislation is a signifi- Mrs. KASSEBAUM. I would also note sult, they are often unable to secure cant step toward enabling local health that S. 1044 continues an authority in loans, especially for the purpose of es- centers to compete and thrive in the current law that permits the Secretary tablishing risk reserves. changing health marketplace. The cen- to designate a population as ‘‘medi- The bill addresses this problem in ters are providing quality health care cally underserved’’ if the chief execu- two ways, by network planning grants to needy persons and areas throughout tive officer of a State and local offi- and a Federal loan guarantee program. the country, and their ability to do so cials recommend that designation The grants will help centers begin the will be preserved and strengthened by based on unusual local conditions initial phase of setting up links with this important bipartisan legislation. I which are a barrier to access to care. I other health facilities and health pro- urge the Senate to approve it. would hope that this authority will viders. The loan guarantee program RURAL PRIMARY CARE also be used to address the unique will enable centers to take the next Mr. THOMAS. Mr. President, as Sen- needs of sparsely populated rural areas. steps in owning and operating a net- ator KASSEBAUM knows, many areas of I also wanted to assure the Senator work by leveraging private dollars to Wyoming, Kansas, and other rural from Wyoming that this bill incor- help cover the developmental and ini- States in the Midwest and West suffer porates your suggestion for improving tial operating costs, which can range from severe shortages of primary care the coordination of services in rural up to several million dollars. providers and services. I appreciate the communities through collaborative re- The loan guarantee for network de- opportunity to work with you on S. lationships between community health velopment establishes a program to 1044, legislation reauthorizing the com- centers and other rural providers in the guarantee the principal and interest on munity health center program, to en- center’s service area. As a condition of loans made by non-Federal lenders to sure that this program is a viable op- eligibility for a health center planning health centers for the costs of develop- tion for rural communities in the Mid- or operating grant, the center must ing and operating managed care net- west and West. demonstrate its efforts to develop and works. The guarantees are subject to One solution that will help preserve maintain such relationships. all of the requirements of the 1990 Fed- and strengthen access to primary care SECTIONS 329, 330, 340, 340A eral Credit Reform Act. The Congres- services in rural areas is a change in Mr. KENNEDY. The Health Centers sional Budget Office has estimated a the governing board criteria for the Consolidation Act goes a long way in 10-percent subsidy rate for the loan health centers. For a number of rea- making many improvements to the program, which means that every dol- sons related to such factors as geog- health center program. One of these lar guaranteed by the Federal Govern- raphy and population density, rural important improvements is to consoli- ment would support $10 in loans to hospitals and other rural providers date and streamline sections 329, 330, health centers. have had difficulty qualifying for the 340 and 340A of the Public Health Serv- Loans secured through the loan guar- community health center program be- ice Act. What remains clear is that all antee fund will be used for activities cause they cannot meet all of the pro- centers under the new, consolidated needed to develop networks, such as es- gram’s strict governing board require- section 330(a) will have to continue to tablishing risk reserves, acquiring or ments. It is my understanding that the provide required primary health serv- leasing buildings and equipment, and legislation we are considering today re- ices to all residents in the health cen- purchasing management information quires the Secretary of Health and ter’s service area. Consistent with the systems. The cost of the program to Human Services to waive some or all of history of these centers, that means the Federal Government will be offset these requirements if rural providers the centers provide the health services by loan origination fees. can show that it is not feasible or prac- regardless of an individual’s ability to This legislation recognizes the need ticable for them to meet the require- pay. to concentrate grant funds on health ments. This will certainly make it Mrs. KASSEBAUM. Mr. President, I services. The bill authorizes the Sec- easier for rural hospitals and other agree, that requirement goes to the retary of HHS to award grants to pay rural providers who would otherwise fundamental nature and purpose of for the costs associated with construc- qualify to participate in the program. these important safety net providers. tion of new buildings or the renovation Mrs. KASSEBAUM. The Senator is All of the health centers must serve all of existing buildings—but only if the correct. Following up on your sugges- residents of the area served by the cen- projects are approved prior to October tion, S. 1044 provides the Secretary ter, regardless of an individual’s ability 1, 1996. Such approved projects must be with this waiver authority. The bill to pay for the services they receive. undertaken pursuant to the statutory has been modified to ensure that this PUBLICATION OF GUIDELINES and contractual terms, conditions, and waiver will be in effect for the length Mr. KENNEDY. As part of the loan assurances in effect at the time Fed- of the community health center grant. guarantee program authorized under S. eral assistance for the project was ap- Rural providers will not be required to 1044, we are requiring the Secretary of proved by the Secretary, even though repeatedly make their case to the Sec- Health and Human Services to publish the actual grant will not be award retary over the period of the grant. It guidance explaining how the require- until after October 1, 1996. is also the committee’s intention that ments and other provisions of the loan Because of the need to concentrate the process for obtaining this waiver be guarantee program will be adminis- limited grant funds on providing serv- simple, straightforward, and short. Our tered. It is normal for agencies to put ices, health centers need more flexibil- rural providers, who are already out guidance to the universe of affected ity in the use of their nongrant funds. stretched so thinly, should not be entities, including health centers, pri- This bill enhances local health center forced to go through a time-consuming, mary care associations, and other enti- decisionmaking in the use of non-Fed- resource-consuming paperwork exer- ties with which the agency has cooper- eral grant revenues, thereby strength- cise to obtain a waiver. ative agreements when funding is ening the ability of health centers to Mr. THOMAS. I am also pleased that available to them. The guidance in- respond to the changing environment S. 1044 includes a provision requiring cludes things such as what is required S11116 CONGRESSIONAL RECORD — SENATE September 20, 1996 in the application, the criteria that guarantee fund to provide health centers rics, or gynecology that are furnished by will be used to evaluate the applica- with the ability to leverage private-sector physicians and where appropriate, physician tion, and documentation that will be resources for the development and initial op- assistants, nurse practitioners, and nurse required if the funding is to be granted, eration of health networks and plans. This midwives; permits federal dollars to be focused on the ‘‘(II) diagnostic laboratory and radiologic or, in this case, a loan guaranteed for provision of services, rather than on ‘‘bricks services; health center networks or plans. and mortar.’’ ‘‘(III) preventive health services, includ- The requirement to publish guidance B. Changes in authorization period and author- ing— is not intended to delay the ization level ‘‘(aa) prenatal and perinatal services; implementaton of the loan guarantee Reflecting the fact that fiscal year 1996 is ‘‘(bb) screening for breast and cervical can- program, and the distribution of the nearly at an end, the manager’s amendment cer; guidance to the appropriate commit- updates the authorization period from fiscal ‘‘(cc) well-child services; tees of Congress is meant for informa- years 1996 through 2000 to fiscal years 1997 ‘‘(dd) immunizations against vaccine-pre- tional purposes. It is my understanding through 2001. Reflecting the appropriation ventable diseases; that the Committee does not intend provided for the health center programs in ‘‘(ee) screenings for elevated blood lead levels, communicable diseases, and choles- that the publication of guidance re- the House-passed appropriations bill, the manager’s amendment updates the funding terol; quired under S. 1044 to be subject to level to $802.124 million in fiscal year 1997 ‘‘(ff) pediatric eye, ear, and dental the provisions of the Administrative and ‘‘such sums’’ in the out years. screenings to determine the need for vision Procedures Act. Mr. LOTT. Mr. President, I ask unan- and hearing correction and dental care; Mrs. KASSEBAUM. That is correct. I imous consent the amendment be ‘‘(gg) voluntary family planning services; and understand how important the loan agreed to, the bill be deemed read a guarantee provisions of S. 1044 are to ‘‘(hh) preventive dental services; third time and passed, as amended, the ‘‘(IV) emergency medical services; and the health centers. The States are rap- motion to reconsider be laid upon the idly moving to managed care systems ‘‘(V) pharmaceutical services as may be ap- table, and that any statements relating propriate for particular centers; for Medicaid recipients. In order to to the bill appear at this point in the ‘‘(ii) referrals to providers of medical serv- continue serving these individuals and RECORD. I have some statements for ices and other health-related services (in- other low-income, uninsured individ- the RECORD. cluding substance abuse and mental health uals, centers must have the ability to The PRESIDING OFFICER. Without services); form viable, competitive networks and objection, it is so ordered. ‘‘(iii) patient case management services plans. The loan guarantee program will (including counseling, referral, and follow-up The amendment (No. 5397) was agreed services) and other services designed to as- benefit centers across the country, in- to. cluding rural centers who are now try- sist health center patients in establishing The bill (S. 1044), as amended, was eligibility for and gaining access to Federal, ing to position themselves for the deemed read a third time and passed, State, and local programs that provide or fi- movement of managed care into rural as follows: nancially support the provision of medical, areas. S. 1044 social, educational, or other related services; Mr. LOTT. Mr. President, I ask unan- Be it enacted by the Senate and House of Rep- ‘‘(iv) services that enable individuals to imous consent to have printed in the resentatives of the United States of America in use the services of the health center (includ- RECORD a summary of S. 1044 and the Congress assembled, ing outreach and transportation services and, if a substantial number of the individ- manager’s amendment. SECTION 1. SHORT TITLE. uals in the population served by a center are There being no objection, the mate- This Act may be cited as the ‘‘Health Cen- of limited English-speaking ability, the serv- rial was ordered to be printed in the ters Consolidation Act of 1996’’. ices of appropriate personnel fluent in the RECORD, as follows: SEC. 2. CONSOLIDATION AND REAUTHORIZATION language spoken by a predominant number OF PROVISIONS. SUMMARY OF S. 1044, the Health Centers Con- Subpart I of part D of title III of the Public of such individuals); and solidation Act and the Floor Manager’s ‘‘(v) education of patients and the general Amendment in the Nature of a Substitute Health Service Act (42 U.S.C. 254b et seq.) is amended to read as follows: population served by the health center re- I. SUMMARY OF S. 1044 garding the availability and proper use of ‘‘Subpart I—Health Centers S. 1044, reported unanimously by the Sen- health services. ate Committee on Labor and Human Re- ‘‘SEC. 330. HEALTH CENTERS. ‘‘(B) EXCEPTION.—With respect to a health sources on July 20, 1995, consolidates and ‘‘(a) DEFINITION OF HEALTH CENTER.— center that receives a grant only under sub- streamlines four separate Public Health ‘‘(1) IN GENERAL.—For purposes of this sec- section (g), the Secretary, upon a showing of Service Act (PHSA) programs under one au- tion, the term ‘health center’ means an en- good cause, shall— thority, a rewritten section 330 of the PHSA. tity that serves a population that is medi- ‘‘(i) waive the requirement that the center The consolidated programs are the Migrant cally underserved, or a special medically un- provide all required primary health services Health Center program (section 329 of the derserved population comprised of migratory under this paragraph; and PHSA), the Community Health Center pro- and seasonal agricultural workers, the home- ‘‘(ii) approve, as appropriate, the provision gram (section 330 of the PHSA), the Health less, and residents of public housing, by pro- of certain required primary health services Care for the Homeless program (section 340 viding, either through the staff and support- only during certain periods of the year. of the PHSA), and the Health Services for ing resources of the center or through con- ‘‘(2) ADDITIONAL HEALTH SERVICES.—The Residents of Public Housing program (sec- tracts or cooperative arrangements— term ‘additional health services’ means serv- tion 340A of the PHSA). For these consoli- ‘‘(A) required primary health services (as ices that are not included as required pri- dated programs, S. 1044 authorizes $756.518 defined in subsection (b)(1)); and mary health services and that are appro- million in fiscal year 1996 and ‘‘such sums’’ ‘‘(B) as may be appropriate for particular priate to meet the health needs of the popu- for fiscal years 1997 through 2000. centers, additional health services (as de- lation served by the health center involved. In addition, the bill formally authorizes as fined in subsection (b)(2)) necessary for the Such term may include— new section 330A of the Public Health Serv- adequate support of the primary health serv- ‘‘(A) environmental health services, in- ice Act the ‘‘Rural Health Outreach, Net- ices required under subparagraph (A); cluding— work Development, and Telemedicine for all residents of the area served by the ‘‘(i) the detection and alleviation of Grant’’ program. This program consolidates center (hereafter referred to in this section unhealthful conditions associated with water and reforms several currently funded, discre- as the ‘catchment area’). supply; tionary rural health programs. This program ‘‘(2) LIMITATION.—The requirement in para- ‘‘(ii) sewage treatment; is authorized at $36 million in fiscal year 1996 graph (1) to provide services for all residents ‘‘(iii) solid waste disposal; (current spending) and at ‘‘such sums’’ for within a catchment area shall not apply in ‘‘(iv) rodent and parasitic infestation; fiscal years 1997 through 2000. the case of a health center receiving a grant ‘‘(v) field sanitation; ‘‘(vi) housing; and II. SUMMARY OF THE MANAGER’S AMENDMENT only under subsection (g), (h), or (i). ‘‘(b) DEFINITIONS.—For purposes of this sec- ‘‘(vii) other environmental factors related The manager’s amendment makes a num- tion: to health; and ber of technical corrections to S. 1044 as re- ‘‘(1) REQUIRED PRIMARY HEALTH SERVICES.— ‘‘(B) in the case of health centers receiving ported. In addition, it makes several policy ‘‘(A) IN GENERAL.—The term ‘required pri- grants under subsection (g), special occupa- changes: mary health services’ means— tion-related health services for migratory A. Loan guarantee program ‘‘(i) basic health services which, for pur- and seasonal agricultural workers, includ- It replaces the Secretary’s authority under poses of this section, shall consist of— ing— S. 1044 to provide grants for facility con- ‘‘(I) health services related to family medi- ‘‘(i) screening for and control of infectious struction and modernization with a loan cine, internal medicine, pediatrics, obstet- diseases, including parasitic diseases; and September 20, 1996 CONGRESSIONAL RECORD — SENATE S11117

‘‘(ii) injury prevention programs, including ‘‘(B) COMPREHENSIVE SERVICE DELIVERY cluding a determination that the rate of in- prevention of exposure to unsafe levels of ag- NETWORKS AND PLANS.—The Secretary may terest does not exceed such percent per ricultural chemicals including pesticides. make grants to health centers that receive annum on the principal obligation outstand- ‘‘(3) MEDICALLY UNDERSERVED POPU- assistance under this section to enable the ing as the Secretary determines to be rea- LATIONS.— centers to plan and develop a network or sonable, taking into account the range of in- ‘‘(A) IN GENERAL.—The term ‘medically un- plan for the provision of health services, terest rates prevailing in the private market derserved population’ means the population which may include the provision of health for similar loans and the risks assumed by of an urban or rural area designated by the services on a prepaid basis or through an- the United States, except that the Secretary Secretary as an area with a shortage of per- other managed care arrangement, to some or may not require as security any center asset sonal health services or a population group to all of the individuals which the centers that is, or may be, needed by the center or designated by the Secretary as having a serve. Such a grant may only be made for centers involved to provide health services; shortage of such services. such a center if— ‘‘(ii) the loan would not be available on ‘‘(B) CRITERIA.—In carrying out subpara- ‘‘(i) the center has received grants under reasonable terms and conditions without the graph (A), the Secretary shall prescribe cri- subsection (e)(1)(A) for at least 2 consecutive guarantee under this subsection; and teria for determining the specific shortages years preceding the year of the grant under ‘‘(iii) amounts appropriated for the pro- of personal health services of an area or pop- this subparagraph or has otherwise dem- gram under this subsection are sufficient to ulation group. Such criteria shall— onstrated, as required by the Secretary, that provide loan guarantees under this sub- ‘‘(i) take into account comments received such center has been providing primary care section. by the Secretary from the chief executive of- services for at least the 2 consecutive years ‘‘(B) RECOVERY OF PAYMENTS.— ficer of a State and local officials in a State; immediately preceding such year; and ‘‘(i) IN GENERAL.—The United States shall and ‘‘(ii) the center provides assurances satis- be entitled to recover from the applicant for ‘‘(ii) include factors indicative of the factory to the Secretary that the provision a loan guarantee under this subsection the health status of a population group or resi- of such services on a prepaid basis, or under amount of any payment made pursuant to dents of an area, the ability of the residents another managed care arrangement, will not such guarantee, unless the Secretary for of an area or of a population group to pay for result in the diminution of the level or qual- good cause waives such right of recovery health services and their accessibility to ity of health services provided to the medi- (subject to appropriations remaining avail- them, and the availability of health profes- cally underserved population served prior to able to permit such a waiver) and, upon mak- sionals to residents of an area or to a popu- the grant under this subparagraph. ing any such payment, the United States lation group. shall be subrogated to all of the rights of the Any such grant may include the acquisition recipient of the payments with respect to ‘‘(C) LIMITATION.—The Secretary may not and lease of buildings and equipment which designate a medically underserved popu- which the guarantee was made. Amounts re- may include data and information systems covered under this clause shall be credited as lation in a State or terminate the designa- (including the costs of amortizing the prin- tion of such a population unless, prior to reimbursements to the financing account of cipal of, and paying the interest on, loans), the program. such designation or termination, the Sec- and providing training and technical assist- retary provides reasonable notice and oppor- ‘‘(ii) MODIFICATION OF TERMS AND CONDI- ance related to the provision of health serv- TIONS.—To the extent permitted by clause tunity for comment and consults with— ices on a prepaid basis or under another (iii) and subject to the requirements of sec- ‘‘(i) the chief executive officer of such managed care arrangement, and for other tion 504(e) of the Credit Reform Act of 1990 (2 State; purposes that promote the development of U.S.C. 661c(e)), any terms and conditions ap- ‘‘(ii) local officials in such State; and managed care networks and plans. plicable to a loan guarantee under this sub- ‘‘(iii) the organization, if any, which rep- ‘‘(2) LIMITATION.—Not more than two section (including terms and conditions im- resents a majority of health centers in such grants may be made under this subsection posed under clause (iv)) may be modified or State. for the same project, except that upon a waived by the Secretary to the extent the ‘‘(D) PERMISSIBLE DESIGNATION.—The Sec- showing of good cause, the Secretary may Secretary determines it to be consistent retary may designate a medically under- make additional grant awards. with the financial interest of the United served population that does not meet the cri- ‘‘(d) MANAGED CARE LOAN GUARANTEE PRO- States. teria established under subparagraph (B) if GRAM.— ‘‘(iii) INCONTESTABILITY.—Any loan guaran- the chief executive officer of the State in ‘‘(1) ESTABLISHMENT.— tee made by the Secretary under this sub- which such population is located and local ‘‘(A) IN GENERAL.—The Secretary shall es- section shall be incontestable— officials of such State recommend the des- tablish a program under which the Secretary ‘‘(I) in the hands of an applicant on whose ignation of such population based on unusual may, in accordance with this subsection and behalf such guarantee is made unless the ap- local conditions which are a barrier to access to the extent that appropriations are pro- plicant engaged in fraud or misrepresenta- to or the availability of personal health serv- vided in advance for such program, guaran- tion in securing such guarantee; and ices. tee the principal and interest on loans made ‘‘(II) as to any person (or successor in in- ‘‘(c) PLANNING GRANTS.— by non-Federal lenders to health centers terest) who makes or contracts to make a ‘‘(1) IN GENERAL.— funded under this section for the costs of de- loan to such applicant in reliance thereon ‘‘(A) CENTERS.—The Secretary may make veloping and operating managed care net- unless such person (or successor in interest) grants to public and nonprofit private enti- works or plans. engaged in fraud or misrepresentation in ties for projects to plan and develop health ‘‘(B) USE OF FUNDS.—Loan funds guaran- making or contracting to make such loan. centers which will serve medically under- teed under this subsection may be used— ‘‘(iv) FURTHER TERMS AND CONDITIONS.— served populations. A project for which a ‘‘(i) to establish reserves for the furnishing Guarantees of loans under this subsection grant may be made under this subsection of services on a pre-paid basis; or shall be subject to such further terms and may include the cost of the acquisition and ‘‘(ii) for costs incurred by the center or conditions as the Secretary determines to be lease of buildings and equipment (including centers, otherwise permitted under this sec- necessary to assure that the purposes of this the costs of amortizing the principal of, and tion, as the Secretary determines are nec- section will be achieved. paying the interest on, loans) and shall in- essary to enable a center or centers to de- ‘‘(3) LOAN ORIGINATION FEES.— clude— velop, operate, and own the network or plan. ‘‘(A) IN GENERAL.—The Secretary shall col- ‘‘(i) an assessment of the need that the ‘‘(C) PUBLICATION OF GUIDANCE.—Prior to lect a loan origination fee with respect to population proposed to be served by the considering an application submitted under loans to be guaranteed under this subsection, health center for which the project is under- this subsection, the Secretary shall publish except as provided in subparagraph (C). taken has for required primary health serv- guidelines to provide guidance on the imple- ‘‘(B) AMOUNT.—The amount of a loan origi- ices and additional health services; mentation of this section. The Secretary nation fee collected by the Secretary under ‘‘(ii) the design of a health center program shall make such guidelines available to the subparagraph (A) shall be equal to the esti- for such population based on such assess- universe of parties affected under this sub- mated long term cost of the loan guarantees ment; section, distribute such guidelines to such involved to the Federal Government (exclud- ‘‘(iii) efforts to secure, within the proposed parties upon the request of such parties, and ing administrative costs), calculated on a catchment area of such center, financial and provide a copy of such guidelines to the ap- net present value basis, after taking into ac- professional assistance and support for the propriate committees of Congress. count any appropriations that may be made project; ‘‘(2) PROTECTION OF FINANCIAL INTERESTS.— for the purpose of offsetting such costs, and ‘‘(iv) initiation and encouragement of con- ‘‘(A) IN GENERAL.—The Secretary may not in accordance with the criteria used to tinuing community involvement in the de- approve a loan guarantee for a project under award loan guarantees under this subsection. velopment and operation of the project; and this subsection unless the Secretary deter- ‘‘(C) WAIVER.—The Secretary may waive ‘‘(v) proposed linkages between the center mines that— the loan origination fee for a health center and other appropriate provider entities, such ‘‘(i) the terms, conditions, security (if applicant who demonstrates to the Secretary as health departments, local hospitals, and any), and schedule and amount of repay- that the applicant will be unable to meet the rural health clinics, to provide better coordi- ments with respect to the loan are sufficient conditions of the loan if the applicant incurs nated, higher quality, and more cost-effec- to protect the financial interests of the Unit- the additional cost of the fee. tive health care services. ed States and are otherwise reasonable, in- ‘‘(4) DEFAULTS.— S11118 CONGRESSIONAL RECORD — SENATE September 20, 1996

‘‘(A) IN GENERAL.—Subject to the require- ‘‘(2) USE OF FUNDS.—The costs for which a the center for primary health services (in- ments of the Credit Reform Act of 1990 (2 grant may be made under subparagraph (A) cluding prenatal care) with respect to the U.S.C. 661 et seq.), the Secretary may take or (B) of paragraph (1) may include the costs purpose described in this subsection; and such action as may be necessary to prevent of acquiring and leasing buildings and equip- ‘‘(E) the center will coordinate the provi- a default on a loan guaranteed under this ment (including the costs of amortizing the sion of services with other maternal and subsection, including the waiver of regu- principal of, and paying interest on, loans), child health providers operating in the latory conditions, deferral of loan payments, and the costs of providing training related to catchment area. renegotiation of loans, and the expenditure the provision of required primary health ‘‘(g) MIGRATORY AND SEASONAL AGRICUL- of funds for technical and consultative as- services and additional health services and TURAL WORKERS.— sistance, for the temporary payment of the to the management of health center pro- ‘‘(1) IN GENERAL.—The Secretary may interest and principal on such a loan, and for grams. award grants for the purposes described in other purposes. Any such expenditure made ‘‘(3) CONSTRUCTION.—The Secretary may subsections (c), (e), and (f) for the planning under the preceding sentence on behalf of a award grants which may be used to pay the and delivery of services to a special medi- health center or centers shall be made under costs associated with expanding and mod- cally underserved population comprised of— such terms and conditions as the Secretary ernizing existing buildings or constructing ‘‘(A) migratory agricultural workers, sea- shall prescribe, including the implementa- new buildings (including the costs of amor- sonal agricultural workers, and members of tion of such organizational, operational, and tizing the principal of, and paying the inter- the families of such migratory and seasonal financial reforms as the Secretary deter- est on, loans) for projects approved prior to agricultural workers who are within a des- mines are appropriate and the disclosure of October 1, 1996. ignated catchment area; and such financial or other information as the ‘‘(4) LIMITATION.—Not more than two ‘‘(B) individuals who have previously been Secretary may require to determine the ex- grants may be made under subparagraph (B) migratory agricultural workers but who no tent of the implementation of such reforms. of paragraph (1) for the same entity. longer meet the requirements of subpara- ‘‘(B) FORECLOSURE.—The Secretary may ‘‘(5) AMOUNT.— graph (A) of paragraph (3) because of age or take such action, consistent with State law ‘‘(A) IN GENERAL.—The amount of any disability and members of the families of respecting foreclosure procedures and, with grant made in any fiscal year under para- such individuals who are within such graph (1) to a health center shall be deter- respect to reserves required for furnishing catchment area. mined by the Secretary, but may not exceed services on a prepaid basis, subject to the ‘‘(2) ENVIRONMENTAL CONCERNS.—The Sec- the amount by which the costs of operation consent of the affected States, as the Sec- retary may enter into grants or contracts of the center in such fiscal year exceed the retary determines appropriate to protect the under this subsection with public and private total of— interest of the United States in the event of entities to— ‘‘(i) State, local, and other operational a default on a loan guaranteed under this ‘‘(A) assist the States in the implementa- funding provided to the center; and subsection, except that the Secretary may tion and enforcement of acceptable environ- ‘‘(ii) the fees, premiums, and third-party only foreclose on assets offered as security mental health standards, including enforce- reimbursements, which the center may rea- (if any) in accordance with paragraph ment of standards for sanitation in migra- (2)(A)(i). sonably be expected to receive for its oper- ations in such fiscal year. tory agricultural worker labor camps, and ‘‘(5) LIMITATION.—Not more than one loan applicable Federal and State pesticide con- ‘‘(B) PAYMENTS.—Payments under grants guarantee may be made under this sub- under subparagraph (A) or (B) of paragraph trol standards; and section for the same network or plan, except (1) shall be made in advance or by way of re- ‘‘(B) conduct projects and studies to assist that upon a showing of good cause the Sec- imbursement and in such installments as the the several States and entities which have retary may make additional loan guaran- Secretary finds necessary and adjustments received grants or contracts under this sec- tees. may be made for overpayments or underpay- tion in the assessment of problems related to ‘‘(6) ANNUAL REPORT.—Not later than April ments. camp and field sanitation, exposure to unsafe 1, 1998, and each April 1 thereafter, the Sec- ‘‘(C) USE OF NONGRANT FUNDS.—Nongrant levels of agricultural chemicals including retary shall prepare and submit to the appro- funds described in clauses (i) and (ii) of sub- pesticides, and other environmental health priate committees of Congress a report con- paragraph (A), including any such funds in hazards to which migratory agricultural cerning loan guarantees provided under this excess of those originally expected, shall be workers and members of their families are subsection. Such report shall include— used as permitted under this section, and exposed. ‘‘(A) a description of the number, amount, may be used for such other purposes as are ‘‘(3) DEFINITIONS.—For purposes of this sub- and use of funds received under each loan not specifically prohibited under this section section: guarantee provided under this subsection; if such use furthers the objectives of the ‘‘(A) MIGRATORY AGRICULTURAL WORKER.— ‘‘(B) a description of any defaults with re- project. The term ‘migratory agricultural worker’ spect to such loans and an analysis of the ‘‘(f) INFANT MORTALITY GRANTS.— means an individual whose principal employ- reasons for such defaults, if any; and ‘‘(1) IN GENERAL.—The Secretary may make ment is in agriculture on a seasonal basis, ‘‘(C) a description of the steps that may grants to health centers for the purpose of who has been so employed within the last 24 have been taken by the Secretary to assist assisting such centers in— months, and who establishes for the purposes an entity in avoiding such a default. ‘‘(A) providing comprehensive health care of such employment a temporary abode. ‘‘(7) PROGRAM EVALUATION.—Not later than and support services for the reduction of— ‘‘(B) SEASONAL AGRICULTURAL WORKER.— June 30, 1999, the Secretary shall prepare and ‘‘(i) the incidence of infant mortality; and The term ‘seasonal agricultural worker’ submit to the appropriate committees of ‘‘(ii) morbidity among children who are means an individual whose principal employ- Congress a report containing an evaluation less than 3 years of age; and ment is in agriculture on a seasonal basis of the program authorized under this sub- ‘‘(B) developing and coordinating service and who is not a migratory agricultural section. Such evaluation shall include a rec- and referral arrangements between health worker. ommendation with respect to whether or not centers and other entities for the health ‘‘(C) AGRICULTURE.—The term ‘agriculture’ the loan guarantee program under this sub- management of pregnant women and chil- means farming in all its branches, includ- section should be continued and, if so, any dren described in subparagraph (A). ing— modifications that should be made to such ‘‘(2) PRIORITY.—In making grants under ‘‘(i) cultivation and tillage of the soil; program. this subsection the Secretary shall give pri- ‘‘(ii) the production, cultivation, growing, ‘‘(8) AUTHORIZATION OF APPROPRIATIONS.— ority to health centers providing services to and harvesting of any commodity grown on, There are authorized to be appropriated to any medically underserved population in, or as an adjunct to or part of a commod- carry out this subsection such sums as may among which there is a substantial incidence ity grown in or on, the land; and be necessary. of infant mortality or among which there is ‘‘(iii) any practice (including preparation ‘‘(e) OPERATING GRANTS.— a significant increase in the incidence of in- and processing for market and delivery to ‘‘(1) AUTHORITY.— fant mortality. storage or to market or to carriers for trans- ‘‘(A) IN GENERAL.—The Secretary may ‘‘(3) REQUIREMENTS.—The Secretary may portation to market) performed by a farmer make grants for the costs of the operation of make a grant under this subsection only if or on a farm incident to or in conjunction public and nonprofit private health centers the health center involved agrees that— with an activity described in clause (ii). that provide health services to medically un- ‘‘(A) the center will coordinate the provi- ‘‘(h) HOMELESS POPULATION.— derserved populations. sion of services under the grant to each of ‘‘(1) IN GENERAL.—The Secretary may ‘‘(B) ENTITIES THAT FAIL TO MEET CERTAIN the recipients of the services; award grants for the purposes described in REQUIREMENTS.—The Secretary may make ‘‘(B) such services will be continuous for subsections (c), (e), and (f) for the planning grants, for a period of not to exceed 2-years, each such recipient; and delivery of services to a special medi- for the costs of the operation of public and ‘‘(C) the center will provide follow-up serv- cally underserved population comprised of nonprofit private entities which provide ices for individuals who are referred by the homeless individuals, including grants for health services to medically underserved center for services described in paragraph innovative programs that provide outreach populations but with respect to which the (1); and comprehensive primary health services Secretary is unable to make each of the de- ‘‘(D) the grant will be expended to supple- to homeless children and children at risk of terminations required by subsection (j)(3). ment, and not supplant, the expenditures of homelessness. September 20, 1996 CONGRESSIONAL RECORD — SENATE S11119

‘‘(2) REQUIRED SERVICES.—In addition to re- retary under subsection (b)(3) or on any ‘‘(iii) has submitted to the Secretary such quired primary health services (as defined in other criteria which the Secretary may pre- reports as the Secretary may require to de- subsection (b)(1)), an entity that receives a scribe to determine if the area or population termine compliance with this subparagraph; grant under this subsection shall be required group to be served by the applicant has a ‘‘(H) the center has established a governing to provide substance abuse services as a con- shortage of personal health services. In con- board which except in the case of an entity dition of such grant. sidering an application for a grant under operated by an Indian tribe or tribal or In- ‘‘(3) SUPPLEMENT NOT SUPPLANT REQUIRE- subparagraph (A) or (B) of subsection (e)(1), dian organization under the Indian Self-De- MENT.—A grant awarded under this sub- the Secretary may require as a condition to termination Act or an urban Indian organi- section shall be expended to supplement, and the approval of such application an assur- zation under the Indian Health Care Im- not supplant, the expenditures of the health ance that the applicant will provide any provement Act (25 U.S.C. 1651 et seq.)— center and the value of in kind contributions health service defined under paragraphs (1) ‘‘(i) is composed of individuals, a majority for the delivery of services to the population and (2) of subsection (b) that the Secretary of whom are being served by the center and described in paragraph (1). finds is needed to meet specific health needs who, as a group, represent the individuals ‘‘(4) DEFINITIONS.—For purposes of this sec- of the area to be served by the applicant. being served by the center; tion: Such a finding shall be made in writing and ‘‘(ii) meets at least once a month, selects ‘‘(A) HOMELESS INDIVIDUAL.—The term a copy shall be provided to the applicant. the services to be provided by the center, ‘homeless individual’ means an individual ‘‘(3) REQUIREMENTS.—Except as provided in schedules the hours during which such serv- who lacks housing (without regard to wheth- subsection (e)(1)(B), the Secretary may not ices will be provided, approves the center’s er the individual is a member of a family), approve an application for a grant under sub- annual budget, approves the selection of a di- including an individual whose primary resi- paragraph (A) or (B) of subsection (e)(1) un- rector for the center, and, except in the case dence during the night is a supervised public less the Secretary determines that the en- of a governing board of a public center (as or private facility that provides temporary tity for which the application is submitted is defined in the second sentence of this para- living accommodations and an individual a health center (within the meaning of sub- who is a resident in transitional housing. graph), establishes general policies for the section (a)) and that— center; and ‘‘(B) SUBSTANCE ABUSE.—The term ‘sub- ‘‘(A) the required primary health services stance abuse’ has the same meaning given ‘‘(iii) in the case of an application for a such term in section 534(4). of the center will be available and accessible second or subsequent grant for a public cen- in the catchment area of the center prompt- ‘‘(C) SUBSTANCE ABUSE SERVICES.—The ter, has approved the application or if the term ‘substance abuse services’ includes de- ly, as appropriate, and in a manner which governing body has not approved the applica- toxification and residential treatment for assures continuity; tion, the failure of the governing body to ap- substance abuse provided in settings other ‘‘(B) the center has made and will continue prove the application was unreasonable; than hospitals. to make every reasonable effort to establish except that, upon a showing of good cause ‘‘(i) RESIDENTS OF PUBLIC HOUSING.— and maintain collaborative relationships the Secretary shall waive, for the length of ‘‘(1) IN GENERAL.—The Secretary may with other health care providers in the the project period, all or part of the require- award grants for the purposes described in catchment area of the center; ments of this subparagraph in the case of a subsections (c), (e), and (f) for the planning ‘‘(C) the center will have an ongoing qual- health center that receives a grant pursuant ity improvement system that includes clini- and delivery of services to a special medi- to subsection (g), (h), (i), or (p); cal services and management, and that cally underserved population comprised of ‘‘(I) the center has developed— maintains the confidentiality of patient residents of public housing (such term, for ‘‘(i) an overall plan and budget that meets records; purposes of this subsection, shall have the the requirements of the Secretary; and ‘‘(D) the center will demonstrate its finan- same meaning given such term in section ‘‘(ii) an effective procedure for compiling cial responsibility by the use of such ac- 3(b)(1) of the United States Housing Act of and reporting to the Secretary such statis- counting procedures and other requirements 1937) and individuals living in areas imme- tics and other information as the Secretary as may be prescribed by the Secretary; diately accessible to such public housing. may require relating to— ‘‘(E) the center— ‘‘(2) SUPPLEMENT NOT SUPPLANT.—A grant ‘‘(I) the costs of its operations; awarded under this subsection shall be ex- ‘‘(i) has or will have a contractual or other ‘‘(II) the patterns of use of its services; pended to supplement, and not supplant, the arrangement with the agency of the State, in ‘‘(III) the availability, accessibility, and expenditures of the health center and the which it provides services, which administers acceptability of its services; and value of in kind contributions for the deliv- or supervises the administration of a State ‘‘(IV) such other matters relating to oper- ery of services to the population described in plan approved under title XIX of the Social paragraph (1). Security Act for the payment of all or a part ations of the applicant as the Secretary may require; ‘‘(3) CONSULTATION WITH RESIDENTS.—The of the center’s costs in providing health serv- Secretary may not make a grant under para- ices to persons who are eligible for medical ‘‘(J) the center will review periodically its graph (1) unless, with respect to the resi- assistance under such a State plan; or catchment area to— dents of the public housing involved, the ap- ‘‘(ii) has made or will make every reason- ‘‘(i) ensure that the size of such area is plicant for the grant— able effort to enter into such an arrange- such that the services to be provided through ‘‘(A) has consulted with the residents in ment; the center (including any satellite) are avail- the preparation of the application for the ‘‘(F) the center has made or will make and able and accessible to the residents of the grant; and will continue to make every reasonable ef- area promptly and as appropriate; ‘‘(B) agrees to provide for ongoing con- fort to collect appropriate reimbursement ‘‘(ii) ensure that the boundaries of such sultation with the residents regarding the for its costs in providing health services to area conform, to the extent practicable, to planning and administration of the program persons who are entitled to insurance bene- relevant boundaries of political subdivisions, carried out with the grant. fits under title XVIII of the Social Security school districts, and Federal and State ‘‘(j) APPLICATIONS.— Act, to medical assistance under a State health and social service programs; and ‘‘(1) SUBMISSION.—No grant may be made plan approved under title XIX of such Act, or ‘‘(iii) ensure that the boundaries of such under this section unless an application to assistance for medical expenses under any area eliminate, to the extent possible, bar- therefore is submitted to, and approved by, other public assistance program or private riers to access to the services of the center, the Secretary. Such an application shall be health insurance program; including barriers resulting from the area’s submitted in such form and manner and ‘‘(G) the center— physical characteristics, its residential pat- shall contain such information as the Sec- ‘‘(i) has prepared a schedule of fees or pay- terns, its economic and social grouping, and retary shall prescribe. ments for the provision of its services con- available transportation; ‘‘(2) DESCRIPTION OF NEED.—An application sistent with locally prevailing rates or ‘‘(K) in the case of a center which serves a for a grant under subparagraph (A) or (B) of charges and designed to cover its reasonable population including a substantial propor- subsection (e)(1) for a health center shall in- costs of operation and has prepared a cor- tion of individuals of limited English-speak- clude— responding schedule of discounts to be ap- ing ability, the center has— ‘‘(A) a description of the need for health plied to the payment of such fees or pay- ‘‘(i) developed a plan and made arrange- services in the catchment area of the center; ments, which discounts are adjusted on the ments responsive to the needs of such popu- ‘‘(B) a demonstration by the applicant that basis of the patient’s ability to pay; lation for providing services to the extent the area or the population group to be served ‘‘(ii) has made and will continue to make practicable in the language and cultural con- by the applicant has a shortage of personal every reasonable effort— text most appropriate to such individuals; health services; and ‘‘(I) to secure from patients payment for and ‘‘(C) a demonstration that the center will services in accordance with such schedules; ‘‘(ii) identified an individual on its staff be located so that it will provide services to and who is fluent in both that language and in the greatest number of individuals residing ‘‘(II) to collect reimbursement for health English and whose responsibilities shall in- in the catchment area or included in such services to persons described in subpara- clude providing guidance to such individuals population group. graph (F) on the basis of the full amount of and to appropriate staff members with re- Such a demonstration shall be made on the fees and payments for such services without spect to cultural sensitivities and bridging basis of the criteria prescribed by the Sec- application of any discount; and linguistic and cultural differences; and S11120 CONGRESSIONAL RECORD — SENATE September 20, 1996 ‘‘(L) the center, has developed an ongoing priate committees of Congress a report con- be conducted in accordance with generally referral relationship with one or more hos- cerning the distribution of funds under this accepted accounting principles. Each audit pitals. section that are provided to meet the health shall evaluate— For purposes of subparagraph (H), the term care needs of medically underserved popu- ‘‘(A) the entity’s implementation of the ‘public center’ means a health center funded lations, including the homeless, residents of guidelines established by the Secretary re- (or to be funded) through a grant under this public housing, and migratory and seasonal specting cost accounting, section to a public agency. agricultural workers, and the appropriate- ‘‘(B) the processes used by the entity to ‘‘(4) APPROVAL OF NEW OR EXPANDED SERV- ness of the delivery systems involved in re- meet the financial and program reporting re- ICE APPLICATIONS.—The Secretary shall ap- sponding to the needs of the particular popu- quirements of the Secretary, and prove applications for grants under subpara- lations. Such report shall include an assess- ‘‘(C) the billing and collection procedures graph (A) or (B) of subsection (e)(1) for ment of the relative health care access needs of the entity and the relation of the proce- health centers which— of the targeted populations and the rationale dures to its fee schedule and schedule of dis- ‘‘(A) have not received a previous grant for any substantial changes in the distribu- counts and to the availability of health in- under such subsection; or tion of funds. surance and public programs to pay for the ‘‘(B) have applied for such a grant to ex- ‘‘(m) MEMORANDUM OF AGREEMENT.—In car- health services it provides. pand their services; rying out this section, the Secretary may A report of each such audit shall be filed enter into a memorandum of agreement with in such a manner that the ratio of the medi- with the Secretary at such time and in such a State. Such memorandum may include, manner as the Secretary may require. cally underserved populations in rural areas where appropriate, provisions permitting which may be expected to use the services ‘‘(2) RECORDS.—Each entity which receives such State to— a grant under this section shall establish and provided by such centers to the medically ‘‘(1) analyze the need for primary health underserved populations in urban areas maintain such records as the Secretary shall services for medically underserved popu- by regulation require to facilitate the audit which may be expected to use the services lations within such State; provided by such centers is not less than two required by paragraph (1). The Secretary ‘‘(2) assist in the planning and development may specify by regulation the form and man- to three or greater than three to two. of new health centers; ECHNICAL AND OTHER ASSISTANCE.— ner in which such records shall be estab- ‘‘(k) T ‘‘(3) review and comment upon annual pro- The Secretary may provide (either through lished and maintained. gram plans and budgets of health centers, in- the Department of Health and Human Serv- ‘‘(3) AVAILABILITY OF RECORDS.—Each en- cluding comments upon allocations of health ices or by grant or contract) all necessary tity which is required to establish and main- care resources in the State; technical and other nonfinancial assistance tain records or to provide for and audit ‘‘(4) assist health centers in the develop- (including fiscal and program management under this subsection shall make such books, ment of clinical practices and fiscal and ad- assistance and training in such management) documents, papers, and records available to ministrative systems through a technical as- to any public or private nonprofit entity to the Secretary or the Comptroller General of sistance plan which is responsive to the re- assist entities in developing plans for, or op- the United States, or any of their duly au- quests of health centers; and erating as, health centers, and in meeting thorized representatives, for examination, ‘‘(5) share information and data relevant to the requirements of subsection (j)(2). copying or mechanical reproduction on or off the operation of new and existing health cen- ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.— the premises of such entity upon a reason- ters. ‘‘(1) IN GENERAL.—For the purpose of carry- able request therefore. The Secretary and ‘‘(n) RECORDS.— ing out this section, in addition to the the Comptroller General of the United ‘‘(1) IN GENERAL.—Each entity which re- amounts authorized to be appropriated under States, or any of their duly authorized rep- ceives a grant under subsection (e) shall es- subsection (d), there are authorized to be ap- resentatives, shall have the authority to tablish and maintain such records as the propriated $802,124,000 for fiscal year 1997, conduct such examination, copying, and re- Secretary shall require. and such sums as may be necessary for each production. ‘‘(2) AVAILABILITY.—Each entity which is of the fiscal years 1998 through 2001. ‘‘(4) WAIVER.—The Secretary may, under required to establish and maintain records ‘‘(2) SPECIAL PROVISIONS.— appropriate circumstances, waive the appli- under this subsection shall make such books, ‘‘(A) PUBLIC CENTERS.—The Secretary may cation of all or part of the requirements of documents, papers, and records available to not expend in any fiscal year, for grants this subsection with respect to an entity.’’. the Secretary or the Comptroller General of under this section to public centers (as de- the United States, or any of their duly au- SEC. 3. RURAL HEALTH OUTREACH, NETWORK fined in the second sentence of subsection thorized representatives, for examination, DEVELOPMENT, AND TELEMEDICINE (j)(3)) the governing boards of which (as de- GRANT PROGRAM. copying or mechanical reproduction on or off scribed in subsection (j)(3)(G)(ii)) do not es- (a) IN GENERAL.—Subpart I of part D of the premises of such entity upon a reason- tablish general policies for such centers, an title III of the Public Health Service Act (42 able request therefore. The Secretary and amount which exceeds 5 percent of the U.S.C. 254b et seq.) (as amended by section 2) the Comptroller General of the United amounts appropriated under this section for is further amended by adding at the end States, or any of their duly authorized rep- that fiscal year. For purposes of applying the thereof the following new section: resentatives, shall have the authority to preceding sentence, the term ‘public centers’ conduct such examination, copying, and re- ‘‘SEC. 330A. RURAL HEALTH OUTREACH, NET- shall not include health centers that receive production. WORK DEVELOPMENT, AND TELE- grants pursuant to subsection (h) or (i). MEDICINE GRANT PROGRAM. ‘‘(o) DELEGATION OF AUTHORITY.—The Sec- ‘‘(B) DISTRIBUTION OF GRANTS.— retary may delegate the authority to admin- ‘‘(a) ADMINISTRATION.—The rural health ‘‘(i) FISCAL YEAR 1997.—For fiscal year 1997, ister the programs authorized by this section services outreach demonstration grant pro- the Secretary, in awarding grants under this to any office, except that the authority to gram established under section 301 shall be section shall ensure that the amounts made enter into, modify, or issue approvals with administered by the Office of Rural Health available under each of subsections (g), (h), respect to grants or contracts may be dele- Policy (of the Health Resources and Services and (i) in such fiscal year bears the same re- gated only within the central office of the Administration), in consultation with State lationship to the total amount appropriated Health Resources and Services Administra- rural health offices or other appropriate for such fiscal year under paragraph (1) as tion. State governmental entities. the amounts appropriated for fiscal year 1996 ‘‘(p) SPECIAL CONSIDERATION.—In making ‘‘(b) GRANTS.—Under the program referred under each of sections 329, 340, and 340A (as grants under this section, the Secretary to in subsection (a), the Secretary, acting such sections existed one day prior to the shall give special consideration to the through the Director of the Office of Rural date of enactment of this section) bears to unique needs of sparsely populated rural Health Policy, may award grants to expand the total amount appropriated under sec- areas, including giving priority in the award- access to, coordinate, restrain the cost of, tions 329, 330, 340, and 340A (as such sections ing of grants for new health centers under and improve the quality of essential health existed one day prior to the date of enact- subsections (c) and (e), and the granting of care services, including preventive and emer- ment of this section) for such fiscal year. waivers as appropriate and permitted under gency services, through the development of ‘‘(ii) FISCAL YEARS 1998 AND 1999.—For each subsections (b)(1)(B)(i) and (j)(3)(G). integrated health care delivery systems or of the fiscal years 1998 and 1999, the Sec- ‘‘(q) AUDITS.— networks in rural areas and regions. retary, in awarding grants under this section ‘‘(1) IN GENERAL.—Each entity which re- ‘‘(c) ELIGIBLE NETWORKS.— shall ensure that the proportion of the ceives a grant under this section shall pro- ‘‘(1) OUTREACH NETWORKS.—To be eligible amounts made available under each of sub- vide for an independent annual financial to receive a grant under this section, an en- sections (g), (h), and (i) is equal to the pro- audit of any books, accounts, financial tity shall— portion of amounts made available under records, files, and other papers and property ‘‘(A) be a rural public or nonprofit private each such subsection for the previous fiscal which relate to the disposition or use of the entity that is or represents a network or po- year, as such amounts relate to the total funds received under such grant and such tential network that includes three or more amounts appropriated for the previous fiscal other funds received by or allocated to the health care providers or other entities that year involved, increased or decreased by not project for which such grant was made. For provide or support the delivery of health more than 10 percent. purposes of assuring accurate, current, and care services; and ‘‘(3) FUNDING REPORT.—The Secretary shall complete disclosure of the disposition or use ‘‘(B) in consultation with the State office annually prepare and submit to the appro- of the funds received, each such audit shall of rural health or other appropriate State September 20, 1996 CONGRESSIONAL RECORD — SENATE S11121 entity, prepare and submit to the Secretary care networks and for improving access to the Congress a legislative proposal in the an application, at such time, in such man- health care services for rural citizens; form of an implementing bill containing ner, and containing such information as the ‘‘(ii) provide a baseline of information for a technical and conforming amendments to re- Secretary may require, including— systematic evaluation of telemedicine sys- flect the changes made by this Act. ‘‘(i) a description of the activities which tems serving rural areas; SEC. 5. EFFECTIVE DATE. the applicant intends to carry out using ‘‘(iii) purchase or lease and install equip- This Act and the amendments made by amounts provided under the grant; ment; and this Act shall become effective on October 1, ‘‘(ii) a plan for continuing the project after ‘‘(iv) operate the telemedicine system and 1997. Federal support is ended; evaluate the telemedicine system. ‘‘(iii) a description of the manner in which ‘‘(B) LIMITATIONS.—An entity described in Mr. DORGAN. Mr. President, I won- the activities funded under the grant will subsection (c)(3), may not use amounts pro- der if the Senator from Mississippi will meet health care needs of underserved rural vided under a grant under this section— yield? populations within the State; and ‘‘(i) to build or acquire real property; Mr. LOTT. I will be glad to yield. ‘‘(iv) a description of how the local com- ‘‘(ii) purchase or install transmission f munity or region to be served by the net- equipment (such as laying cable or telephone work or proposed network will be involved in lines, microwave towers, satellite dishes, FEDERAL JUDGES the development and ongoing operations of amplifiers, and digital switching equipment); Mr. DORGAN. I ask the Senator the network. or ‘‘(2) FOR-PROFIT ENTITIES.—An eligible net- ‘‘(iii) for construction, except that such whether any of the unanimous consent work may include for-profit entities so long funds may be expended for minor renova- requests he is intending to propound as the network grantee is a nonprofit entity. tions relating to the installation of equip- would include the clearing of any ‘‘(3) TELEMEDICINE NETWORKS.— ment; judgeships. If so, we would certainly be ‘‘(A) IN GENERAL.—An entity that is a ‘‘(f) TERM OF GRANTS.—Funding may not be favorably disposed to not object to health care provider and a member of an ex- provided to a network under this section for isting or proposed telemedicine network, or that. If not, I am wondering if just in in excess of a 3-year period. this moment I might learn whether we an entity that is a consortium of health care ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— providers that are members of an existing or For the purpose of carrying out this section would have an opportunity to clear any proposed telemedicine network shall be eligi- there are authorized to be appropriated additional judges that are now waiting ble for a grant under this section. $36,000,000 for fiscal year 1997, and such sums clearance? ‘‘(B) REQUIREMENT.—A telemedicine net- as may be necessary for each of the fiscal Mr. LOTT. Mr. President, I do not be- work referred to in subparagraph (A) shall, years 1998 through 2001.’’. lieve there are any judges on this list at a minimum, be composed of— (b) TRANSITION.—The Secretary of Health that have been cleared tonight. There ‘‘(i) a multispecialty entity that is located and Human Services shall ensure the contin- in an urban or rural area, which can provide ued funding of grants made, or contracts or is—hope springs eternal. I know the 24-hour a day access to a range of specialty cooperative agreements entered into, under Judiciary Committee had a meeting care; and subpart I of part D of title III of the Public this week. There was some discussion ‘‘(ii) at least two rural health care facili- Health Service Act (42 U.S.C. 254b et seq.) (as about some of the judges that are pend- ties, which may include rural hospitals, such subpart existed on the day prior to the ing. I believe there are only six judges rural physician offices, rural health clinics, date of enactment of this Act), until the ex- that are on the calendar before the rural community health clinics, and rural piration of the grant period or the term of Senate at this time, four circuit judges nursing homes. the contract or cooperative agreement. Such and two district judges. ‘‘(d) PREFERENCE.—In awarding grants funding shall be continued under the same under this section, the Secretary shall give terms and conditions as were in effect on the None of those have been cleared preference to applicant networks that in- date on which the grant, contract or cooper- through the process at this point. clude— ative agreement was awarded, subject to the Mr. DORGAN. If the Senator will fur- ‘‘(1) a majority of the health care providers availability of appropriations. ther yield, I want to make the point serving in the area or region to be served by SEC. 4. TECHNICAL AND CONFORMING AMEND- there are 22 additional judges awaiting the network; MENTS. action by the Judiciary Committee. I ‘‘(2) any federally qualified health centers, (a) IN GENERAL.—The Public Health Serv- rural health clinics, and local public health heard from some that there is no inten- ice Act is amended— tion of clearing additional judges. My departments serving in the area or region; (1) in section 224(g)(4) (42 U.S.C. 233(g)(4)), ‘‘(3) outpatient mental health providers by striking ‘‘under’’ and all that follows hope is that would not be the case. serving in the area or region; or through the end thereof and inserting ‘‘under I wonder if the Senator expects we ‘‘(4) appropriate social service providers, section 330.’’; might be clearing additional judges? such as agencies on aging, school systems, (2) in section 340C(a)(2) (42 U.S.C. 256c) by Mr. LOTT. I am not on the Judiciary and providers under the women, infants, and striking ‘‘under’’ and all that follows Committee. I have discussed it with children program, to improve access to and through the end thereof and inserting ‘‘with the chairman and other members of the coordination of health care services. assistance provided under section 330.’’; and ‘‘(e) USE OF FUNDS.— committee. I don’t think any decision (3) by repealing subparts V and VI of part has been made yet on whether or not ‘‘(1) IN GENERAL.—Amounts provided under D of title III (42 U.S.C. 256 et seq.). grants awarded under this section shall be (b) SOCIAL SECURITY ACT.—The Social Se- they might report some more. I know used— curity Act is amended— they are looking at some of them. I ‘‘(A) for the planning and development of (1) in clauses (i) and (ii)(I) of section will note 4 years ago at this time, I be- integrated self-sustaining health care net- 1861(aa)(4)(A) (42 U.S.C. 1395x(aa)(4)(A)(i) and lieve there were 50 Federal judges that works; and (ii)(I)) by striking ‘‘section 329, 330, or 340’’ had been nominated that were left ei- ‘‘(B) for the initial provision of services. and inserting ‘‘section 330 (other than sub- ‘‘(2) EXPENDITURES IN RURAL AREAS.— ther in the committee or on the Cal- section (h))’’; and endar. ‘‘(A) IN GENERAL.—In awarding a grant (2) in clauses (i) and (ii)(II) of section under this section, the Secretary shall en- 1905(l)(2)(B) (42 U.S.C. 1396d(l)(2)(B)(i) and Numberwise, I think we are probably sure that not less than 50 percent of the (ii)(II)) by striking ‘‘section 329, 330, 340, or in much better shape than the situa- grant award is expended in a rural area or to 340A’’ and inserting ‘‘section 330’’. tion was 4 years ago. And I must say, I provide services to residents of rural areas. (c) REFERENCES.—Whenever any reference am pleased that I was able to work ‘‘(B) TELEMEDICINE NETWORKS.—An entity is made in any provision of law, regulation, with Members on both sides of the aisle described in subsection (c)(3) may not use in rule, record, or document to a community in July, for the most part, and early excess of— health center, migrant health center, public August. We cleared 17 judges, some of ‘‘(i) 40 percent of the amounts provided housing health center, or homeless health under a grant under this section to carry out center, such reference shall be considered a whom had been pending on the Cal- activities under paragraph (3)(A)(iii); and reference to a health center. endar for 6 or 7 months—17 out of 23. ‘‘(ii) 20 percent of the amounts provided (d) FTCA CLARIFICATION.—For purposes of So we did pretty good work. Some of under a grant under this section to pay for section 224(k)(3) of the Public Health Service them were controversial, and it took the indirect costs associated with carrying Act (42 U.S.C. 233(k)(3)), transfers from the more than one try. In fact, I think I out the purposes of such grant. fund described in such section for fiscal year tried 3 times on a block of 9 judges, but ‘‘(3) TELEMEDICINE NETWORKS.— 1996 shall be deemed to have occurred prior we did get 17 of them done. I thought ‘‘(A) IN GENERAL.—An entity described in to December 31, 1995. subsection (c)(3), may use amounts provided (e) ADDITIONAL AMENDMENTS.—After con- that was good progress. under a grant under this section to— sultation with the appropriate committees of Mr. DORGAN. If I might, Mr. Presi- ‘‘(i) demonstrate the use of telemedicine in the Congress, the Secretary of Health and dent, with the consent of the Senator facilitating the development of rural health Human Services shall prepare and submit to from Mississippi, observe, he deserves S11122 CONGRESSIONAL RECORD — SENATE September 20, 1996 commendation for getting some of gress to develop a program for higher duty receive assistance towards education or these judgeships moving. He did work education assistance for dependents of job training. Also, many local police agen- on them very hard. I will just say, I slain Justice Department officers. At cies provide for the continuing education of don’t think we have done as well as we her suggestion, I introduced S. 1243 on survivors under the same circumstances. None of this exists at the Federal level. S. did 2 years ago. It is true, 50 were left, September 14, 1995, during the Ruby 1234 will correct this oversight regarding but we cleared far more 2 years ago, 4 Ridge hearings, with bipartisan cospon- Federal law enforcement officers. years ago, 6 years ago. The reason so sors from the Judiciary Committee. If you or your staff wish to contact me many were left is they were submitted I would prefer that we did not have please call 212–637–6543, fax 212–637–6548. late. to worry about death and disabling in- Very truly yours, The fact is, I don’t think we have juries for Federal law enforcement offi- VICTOR OBOYSKI, done as good a job as I think we should cers, but it is a fact of life that we have National President. for the Judiciary. We tried hard not lost a number of Federal law enforce- Mr. BIDEN. Mr. President, I rise as a only to get a CR passed but also clear ment officers in the line of duty in re- cosponsor of the Federal Law Enforce- some of these judges on the Calendar, cent years. In my own State of Penn- ment Dependents Assistance Act and as well as those awaiting action by the sylvania, on March 22, 1996, FBI Special to call on all of my Senate colleagues Judiciary Committee. I appreciate the Agent Charles Reed was killed in to support this bill. Senator yielding. Philadelphia in a shootout with a sus- Unfortunately, over the past 2 years, f pect drug dealer during an undercover many in this Congress have taken the drug investigation. Agent Reed lived in occasion—time and again—to second- FEDERAL LAW ENFORCEMENT DE- Lower Salford Township, PA and is guess and criticize law enforcement of- PENDENTS ASSISTANCE ACT OF survived by his wife, Susan and chil- ficers. We heard these criticisms 1996 dren, Joshua, age 21, Todd 18, and throughout the debate on terrorism Mr. LOTT. Mr. President, I ask unan- Kelley, 17. Similarly, two Washington, legislation—beginning last year, and it imous consent that the Senate proceed DC FBI agents, Martha Martinez and continues to this day. As I have point- to the consideration of S. 2101, intro- Michael Miller, were slain in November ed out on the floor of the Senate be- duced earlier today by Senator SPEC- 1995, in the Washington, DC police fore, I call on us all to remember that TER, for himself and others. headquarters, leaving behind loved it is the terrorists and the violent The PRESIDING OFFICER. The ones of their own. criminals who deserve our contempt clerk will report. Since the introduction of S. 1243 last and it is law enforcement officers who The assistant legislative clerk read year, I have been working with my col- deserve our trust and respect. as follows: leagues and the administration to fash- This bill offers modest recognition of A bill (S. 2101) to provide educational as- ion legislation acceptable to all par- the tremendous service to our Nation sistance to the dependents of Federal law en- ties. This revised bill makes the edu- by Federal law enforcement officers— forcement officials who are killed or disabled cational assistance available to all DEA agents, FBI agents, U.S. mar- in the performance of their duties. Federal law enforcement officers, not shals, border patrol officers, Customs The PRESIDING OFFICER. Is there just those within the Justice Depart- officers, ATF agents, Secret Service objection to the immediate consider- ment. I would note that the program is agents among many others. This bill ation of the bill? subject to appropriations and does not does so by authorizing the Federal There being no objection, the Senate constitute an entitlement. Financial Government to pay education benefits proceeded to consider the bill. assistance can last for up to 45 months to the children and spouses of Federal Mr. SPECTER. Mr. President, I have of education or a proportional period of law enforcement officers who are killed sought recognition to comment on leg- time for a part-time program. Finan- or suffer a total and permanent disabil- islation which the Senate is consider- cial assistance will be based on the ity in the line of duty. ing today, the Federal Law Enforce- amounts provided under the Veterans In doing so, this bill recognizes that ment Dependents Assistance Act of program, which is currently $404 a by virtue of these officers supreme sac- 1996. This bipartisan legislation is a re- month for fulltime students. Signifi- rifice to the Nation, the families of vised version of S. 1243, which I intro- cantly, the Attorney General may pro- these fallen officers are no longer pro- duced with four cosponsors on Septem- vide retroactive assistance to depend- vided for. And, more importantly, this ber 14, 1995. ents eligible under this program where bill will offer a tangible sign of the Na- This legislation will provide edu- a law enforcement officer was killed in tion’s respect for those who gave their cational assistance to spouses and chil- the line of duty on or after May 1, 1992. lives in service to us all. dren of Federal law enforcement offi- This legislation is supported by the I urge my colleagues to support this cers who are killed or totally and per- Federal Law Enforcement Officers As- manently disabled in the line of duty. bill, and I also want to put my col- sociation, and I ask unanimous consent leagues on notice that in the years Similar educational benefits are pro- ECORD a letter to have printed in the R ahead we must follow up by actually vided to the spouses and children of to me from Victor Oboyski, dated Sep- appropriating the dollars necessary to Armed Forces personnel killed in the tember 18, 1996, which reflects their deliver on today’s commitment. line of duty, but not to dependents of views. the brave men and women in Federal There being no objection, the mate- I yield the floor. law enforcement. I am advised that rial was ordered to be printed in the Mr. LOTT. Mr. President, I ask unan- many State and local governments pro- RECORD, as follows: imous consent that the bill be deemed read a third time, passed, the motion vide educational and job training as- FEDERAL LAW ENFORCEMENT sistance to dependents of law enforce- OFFICERS ASSOCIATION, to reconsider be laid upon the table, ment personnel. It is time to level the September 18, 1996. and any statements relating to the bill playing field for Federal law enforce- Hon. ARLEN SPECTER, appear at the appropriate place in the ment. U.S. Senate, Washington, DC. RECORD. I first became aware of this discrep- DEAR SENATOR SPECTER: On behalf of the The PRESIDING OFFICER. Without over 12,000 members of the Federal Law En- objection, it is so ordered. ancy when I met with Mrs. Karen forcement Officers Association (FLEOA), the Degan, the widow of U.S. Marshal Bill largest association representing Federal The bill (S. 2101) was deemed read the Degan of Quincy, MA, who died during criminal investigators in the nation, I am third time and passed, as follows: the tragic shooting incident at Ruby pleased to inform you that we fully support S. 2101 S. 1243, the ‘‘Federal Law Enforcement De- Ridge in August, 1992. Bill Degan left Be it enacted by the Senate and House of Rep- pendents Assistance Act of 1996.’’ I also want behind a loving wife and two sons, Wil- resentatives of the United States of America in to thank you for proposing this fine piece of liam and Brian, whom I have also had Congress assembled, legislation. the pleasure of meeting. Bill Degan had As you may already know, many state and SECTION 1. SHORT TITLE. been in the Marshals Service for 17 local municipalities currently have legisla- This Act may be cited as the ‘‘Federal Law years at the time of his death. Karen tion which ensures that the dependents of Enforcement Dependents Assistance Act of Degan began in 1993 to work with Con- local officers killed or disabled in the line of 1996’’. September 20, 1996 CONGRESSIONAL RECORD — SENATE S11123 SEC. 2. EDUCATIONAL ASSISTANCE TO DEPEND- ‘‘SEC. 1215. DISCONTINUATION FOR UNSATISFAC- The PRESIDING OFFICER laid be- ENTS OF SLAIN FEDERAL LAW EN- TORY CONDUCT OR PROGRESS. fore the Senate the following message FORCEMENT OFFICERS. ‘‘The Attorney General may discontinue from the House of Representatives: Part L of title I of the Omnibus Crime Con- assistance under this subpart when the At- trol and Safe Streets Act of 1968 (42 U.S.C. torney General finds that, according to the Resolved, That the bill from the Senate (S. 3796 et seq.) is amended by— regularly prescribed standards and practices 1507) entitled ‘‘An Act to provide for the ex- (1) inserting after the heading the follow- of the educational institution, the recipient tension of the Parole Commission to oversee ing: ‘‘Subpart 1—Death Benefits’’; and fails to maintain satisfactory progress as de- cases of prisoners sentenced under prior law, (2) adding at the end the following: scribed in section 484(c) of the Higher Edu- to reduce the size of the Parole Commission, ‘‘Subpart 2—Educational Assistance to De- cation Act of 1965 (20 U.S.C. 1091(c)). and for other purposes’’, do pass with the fol- pendents of Civilian Federal Law Enforce- lowing amendment: ‘‘SEC. 1216. SPECIAL RULE. ment Officers Killed or Disabled in the Line Strike out all after the enacting clause, ‘‘(a) RETROACTIVE ELIGIBILITY.—Notwith- of Duty and insert: standing any other provision of law, each de- ‘‘SEC. 1211. PURPOSES. pendent of a Federal law enforcement officer SECTION 1. SHORT TITLE. ‘‘The purposes of this subpart are— killed in the line of duty on or after May 1, This Act may be cited as the ‘‘Parole Commis- ‘‘(1) to enhance the appeal of service in ci- 1992, shall be eligible for assistance under sion Phaseout Act of 1996’’. vilian Federal law enforcement agencies; SEC. 2. EXTENSION OF PAROLE COMMISSION. ‘‘(2) to extend the benefits of higher edu- this subpart, subject to the other limitations cation to qualified and deserving persons of this subpart. (a) IN GENERAL.—For purposes of section who, by virtue of the death of or a total dis- ‘‘(b) RETROACTIVE ASSISTANCE.—The Attor- 235(b) of the Sentencing Reform Act of 1984 (98 ability of an eligible officer, may not be able ney General may provide retroactive assist- Stat. 2032) as it related to chapter 311 of title 18, to afford it otherwise; and ance to dependents eligible under this sec- United States Code, and the Parole Commission, ‘‘(3) to allow the family members of eligi- tion for each month in which the dependent each reference in such section to ‘‘ten years’’ or ble officers to attain the vocational and edu- pursued a program of education at an eligi- ‘‘ten-year period’’ shall be deemed to be a ref- cational status which they would have at- ble educational institution. The Attorney erence to ‘‘fifteen years’’ or ‘‘fifteen-year pe- tained had a parent or spouse not been killed General shall apply the limitations con- riod’’, respectively. or disabled in the line of duty. tained in this subpart to retroactive assist- (b) POWERS AND DUTIES OF PAROLE COMMIS- ‘‘SEC. 1212. BASIC ELIGIBILITY. ance. SION.—Notwithstanding section 4203 of title 18, ‘‘(a) BENEFITS.—(1) Subject to the avail- ‘‘(c) PROSPECTIVE ASSISTANCE.—The Attor- United States Code, the United States Parole ability of appropriations, the Attorney Gen- ney General may provide prospective assist- Commission may perform its functions with any eral shall provide financial assistance to a ance to dependents eligible under this sec- quorum of Commissioners, or Commissioner, as dependent who attends a program of edu- tion on the same basis as assistance to de- the Commission may prescribe by regulation. cation and is— pendents otherwise eligible. In applying the (c) REDUCTION IN SIZE.— ‘‘(A) the child of any eligible Federal law limitations on assistance under this subpart, (1) Effective December 31, 1999, the total num- enforcement officer under subpart 1; or the Attorney General shall include assist- ber of Commissioners of the United States Parole ‘‘(B) the spouse of an officer described in ance provided retroactively. A dependent eli- Commission shall not be greater than 2. To the subparagraph (A) at the time of the officer’s gible under this section may waive retro- extent necessary to achieve this reduction, the death or on the date of a totally and perma- active assistance and apply only for prospec- Commissioner or Commissioners least senior in nently disabling injury. tive assistance on the same basis as depend- service shall cease to hold office. ‘‘(2) Financial assistance under this sub- ents otherwise eligible. (2) Effective December 31, 2001, the United part shall consist of direct payments to an ‘‘SEC. 1217. DEFINITIONS. States Parole Commission shall consist only of eligible dependent and shall be computed on that Commissioner who is the Chairman of the the basis set forth in section 3532 of title 38, ‘‘For purposes of this subpart: ‘‘(1) The term ‘Attorney General’ means Commission. United States Code. (3) Effective when the Commission consists of ‘‘(b) DURATION OF BENEFITS.—No dependent the Attorney General of the United States. only one Commissioner— shall receive assistance under this subpart ‘‘(2) The term ‘Federal law enforcement of- (A) that Commissioner (or in the Commis- for a period in excess of forty-five months of ficer’ has the same meaning as under subpart sioner’s absence, the Attorney General) may del- full-time education or training or a propor- 1. tional period of time for a part-time pro- ‘‘(3) The term ‘program of education’ egate to one or more hearing examiners the gram. means any curriculum or any combination of power set forth in paragraphs (1) through (4) of ‘‘(c) AGE LIMITATION FOR DEPENDENT CHIL- unit courses or subjects pursued at an eligi- section 4203(b) of title 18, United States Code; DREN.—No dependent child shall be eligible ble educational institution, which generally and for assistance under this subpart after the is accepted as necessary to fulfill require- (B) decisions made pursuant to such delega- child’s 27th birthday absent a finding by the ments for the attainment of a predetermined tion shall take effect when made, but shall be Attorney General of extraordinary cir- and identified educational, professional, or subject to review and modification by the Com- cumstances precluding the child from pursu- vocational objective. It includes course work missioner. ing a program of education. for the attainment of more than one objec- SEC. 3. REPORTS BY THE ATTORNEY GENERAL. ‘‘SEC. 1213. APPLICATIONS; APPROVAL. tive if in addition to the previous require- (a) IN GENERAL.—Beginning in the year 1998, ‘‘(a) APPLICATION.—A person seeking as- ments, all the objectives generally are recog- the Attorney General shall report to the Con- sistance under this subpart shall submit an nized as reasonably related to a single career gress not later than May 1 of each year through application to the Attorney General in such field. the year 2002 on the status of the United States form and containing such information as the ‘‘(4) The term ‘eligible educational institu- Parole Commission. Unless the Attorney Gen- Attorney General reasonably may require. tion’ means an institution which— eral, in such report, certifies that the continu- ‘‘(b) APPROVAL.—The Attorney General ‘‘(A) is described in section 481 of the High- ation of the Commission is the most effective shall approve an application for assistance er Education Act of 1965 (20 U.S.C. 1088), as in and cost-efficient manner for carrying out the under this subpart unless the Attorney Gen- effect on the date of the enactment of this Commission’s functions, the Attorney General eral finds that— section; and shall include in such report an alternative plan ‘‘(1) the dependent is not eligible for, is no for a transfer of the Commission’s function to longer eligible for, or is not entitled to the ‘‘(B) is eligible to participate in programs another entity. assistance for which application is made; under title IV of such Act. ‘‘(2) the dependent’s selected educational ‘‘SEC. 1218. AUTHORIZATION OF APPROPRIA- (b) TRANSFER WITHIN THE DEPARTMENT OF institution fails to meet a requirement under TIONS. JUSTICE.— this subpart for eligibility; ‘‘There are authorized to be appropriated (1) EFFECT OF PLAN.—If the Attorney General ‘‘(3) the dependent’s enrollment in or pur- to carry out this subpart such sums as may includes such a plan in the report, and that suit of the educational program selected be necessary.’’. plan provides for the transfer of the Commis- sion’s functions and powers to another entity would fail to meet the criteria established in f this subpart for programs; or within the Department of Justice, such plan ‘‘(4) the dependent already is qualified by PAROLE COMMISSION PHASEOUT shall take effect according to its terms on No- previous education or training for the edu- ACT OF 1996 vember 1 of that year in which the report is cational, professional, or vocational objec- made, unless Congress by law provides other- tive for which the educational program is of- Mr. LOTT. Mr. President, I ask the wise. In the event such plan takes effect, all fered. Chair to lay before the Senate a mes- laws pertaining to the authority and jurisdic- ‘‘(c) NOTIFICATION.—The Attorney General sage from the House of Representatives tion of the Commission with respect to individ- shall notify a dependent applying for assist- on (S. 1507) to provide for the extension ual offenders shall remain in effect notwith- ance under this subpart of approval or dis- of the Parole Commission to oversee standing the expiration of the period specified approval of the application in writing. in section 2 of this Act. cases of prisoners sentenced under ‘‘SEC. 1214. REGULATIONS. (2) CONDITIONAL REPEAL.—Effective on the The Attorney General may promulgate prior law, to reduce the size of the Pa- date such plan takes effect, paragraphs (3) and reasonable and necessary regulations to im- role Commission, and for other pur- (4) of section 235(b) of the Sentencing Reform plement this subpart. poses. Act of 1984 (98 Stat. 2032) are repealed. S11124 CONGRESSIONAL RECORD — SENATE September 20, 1996 SEC. 4. REPEAL. ther, following the expiration or yield- PROGRAM Section 235(b)(2) of the Sentencing Reform Act ing back of time, the matter be tempo- of 1984 (98 Stat. 2032) is repealed. Mr. LOTT. Mr. President, for the in- rarily set aside and a vote occur on the formation of my colleagues, there will Mr. LOTT. Mr. President, I ask unan- resolution of ratification, with no in- be no session of the Senate on Monday imous consent that the Senate concur tervening action or debate, at a time to in recognition of the religious holiday. in the amendment of the House. be determined by the majority leader, On Tuesday, following morning busi- The PRESIDING OFFICER. Without after consultation with the Democratic ness, it is anticipated that the Senate objection, it is so ordered. leader. will begin consideration of the continu- f The PRESIDING OFFICER. Without ing resolution, if available. Rollcall objection, it is so ordered. MEASURE PLACED ON THE votes can, therefore, be expected CALENDAR—S. 2102 f throughout the day on Tuesday. As a Mr. LOTT. Mr. President, I ask unan- ORDERS FOR TUESDAY, reminder, there will be several votes at imous consent that S. 2102, introduced SEPTEMBER 24, 1996 5 p.m. on Tuesday afternoon on or in earlier today by Senator HATFIELD, be Mr. LOTT. Mr. President, I ask unan- relation to amendments and passage of placed on the Calendar. imous consent that when the Senate the maritime bill. The PRESIDING OFFICER. Without completes its business today, it stand objection, it is so ordered. in recess until the hour of 9:30 a.m. on f f Tuesday, September 24; further, that immediately following the prayer, the RECESS UNTIL 9:30 A.M., TUESDAY, UNANIMOUS CONSENT AGREE- Journal of proceedings be deemed ap- SEPTEMBER 24, 1996 MENT—INTERNATIONAL NATU- proved to date, the time for the two RAL RUBBER AGREEMENT Mr. LOTT. Mr. President, if there is leaders be reserved, and that there no further business to come before the Mr. LOTT. Mr. President, as in exec- then be a period for the transaction of Senate, I ask unanimous consent that utive session, I ask unanimous consent morning business not to extend beyond the Senate now stand in recess under that the majority leader, after con- the hour of 10:30 a.m., with Senators the previous order. sultation with the Democratic leader, permitted to speak for not more than 5 There being no objection, the Senate, may proceed to executive session to minutes each, with the following ex- at 4:02 p.m., recessed until Tuesday, consider Executive Calendar No. 23, the ception for the time designated: Sen- September 24, 1996, at 9:30 a.m. international natural rubber agree- ator NUNN for 10 minutes. ment and that the treaty be considered The PRESIDING OFFICER. Without f to have proceeded through its par- objection, it is so ordered. liamentary stages, up to and including Mr. LOTT. Mr. President, I further the presentation of the resolution of ask unanimous consent that the Sen- NOMINATIONS ratification, and that the committee ate stand in recess on Tuesday, Sep- Executive nominations received by declaration be deemed agreed to; that tember 24, between the hours of 12:30 the Senate September 20, 1996: there be 1 hour for debate, with 30 min- p.m. and 2:15 p.m. in order to accommo- utes under the control of Senator date the respective party conferences. DEPARTMENT OF HEALTH AND HUMAN SERVICES BROWN and 30 minutes equally divided The PRESIDING OFFICER. Without RICHARD J. TARPLIN, OF NEW YORK, TO BE AN ASSIST- ANT SECRETARY OF HEALTH AND HUMAN SERVICES, between Senators HELMS and PELL; fur- objection, it is so ordered. VICE JERRY D. KLEPNER, RESIGNED. September 20, 1996 CONGRESSIONAL RECORD — Extensions of Remarks E1667 EXTENSIONS OF REMARKS

PERSONAL EXPLANATION CORRECTIONS TO CONGRESSIONAL RECORD OF AUGUST program. I have begun to reach out to national 10, 1959—Continued coalitions and will continue to work with them HON. SONNY BONO [Provided by the Euclid Historical Society] on perfecting this bill. f OF CALIFORNIA Incorrect names Corrected names IN THE HOUSE OF REPRESENTATIVES Shadrasp Benham ...... Shadrach Benham. FORD MOTOR CO.’S 250-MILLIONTH Friday, September 20, 1996 W. Sheppard ...... Warham Shepherd. VEHICLE John Durant ...... John Briant. Mr. BONO. Mr. Speaker, on Thursday, Sep- Joseph Lanon ...... Joseph Landon. Ezekeal Marby ...... Ezekiel Morley. HON. JOHN D. DINGELL tember 19, 1996, I was unavoidably delayed Milton Hally ...... Milton Holley. and missed the following vote: Rollcall vote James Hachet ...... James Hacket. OF MICHIGAN Rise ...... Olney F. Rice. IN THE HOUSE OF REPRESENTATIVES 420, on approving the Journal. Locke ...... John Lock. Were I present, I certainly would have voted Friday, September 20, 1996 f ``aye'' on the rollcall vote in support of this Mr. DINGELL. Mr. Speaker, on October 8 of measure. H.R. 1111, VEHICLE FORFEITURE this year, Ford Motor Co. will produce, some- f FOR REPEAT DRUNK DRIVERS where in the world, its 250-millionth vehicle. MARKING THE 200TH BIRTHDAY OF Since 1903, when Henry Ford's first car was EUCLID, OH: A SPECIAL SALUTE HON. EARL BLUMENAUER built in Dearborn, MI, working men and women in Ford factories have pumped out an TO THE FOUNDING FATHERS OF OREGON IN THE HOUSE OF REPRESENTATIVES average of more than eight cars or trucks each minute. HON. LOUIS STOKES Friday, September 20, 1996 All told, the Ford vehicles produced through- OF OHIO Mr. BLUMENAUER. Mr. Speaker, as sure out history would stretch bumper-to-bumper IN THE HOUSE OF REPRESENTATIVES as we are standing here tragedy will strike around the world 30 times. They would reach Friday, September 20, 1996 again on America's roadways. Within the next 756,000 miles into spaceÐto the Moon and few weeks there will be another national ex- another half-million miles beyond. And, they Mr. STOKES. Mr. Speaker, the residents of ample where repeat drunk drivers lay carnage are estimated to have carried Ford customers Euclid, OH, will be celebrating their 200-year on our streets. in more than 200 countries some 25 trillion heritage on Sunday, September 29, 1996. The Sadly, this is an all too frequent occurrence miles. historic event being observed occurred on in our country. Over 17,000 people a year are Henry Ford, indeed, put the world on September 30, 1796. On that date in Cleve- killed because of drunk driving and hundreds wheels. His announcement in 1914 that he landÐthe newly selected headquarters for the of thousands are injured. would pay workers $5 for an 8-hour day as- Western ReserveÐa contract was entered into I have a longstanding commitment to doing tounded the world. Today, the United Auto between the Connecticut Land Co. Super- everything possible to stop people from getting Workers and Ford share a heritage of innova- intendent General Moses Cleaveland and 41 behind the wheel after drinking too much. As tive management-labor agreements that make employees hired to survey the land. The for- a member of the Portland City Council, I intro- Ford a leader in the field. mal document designated township 8, range duced the first ordinance in the country to take I know that my colleagues join me in salut- 11 as Euclid Township. The agreement set the away the cars of repeat drunk drivers. This ing Ford Motor Co. for its innovation and its tract aside as available for purchase and set- law has had a dramatic effect. contribution to world prosperity. The coming tlement by the 41 men. In Portland, we have confiscated almost a milestone reminds us again of the advance- Today, neighboring Cuyahoga County com- thousand cars and forfeited almost a third of ment in mobility and progress we all enjoy. munities share portions of the original 22,000 those. Most importantly it has made a dif- f acres of the Euclid Township. East Cleveland, ference in terms of repeat drunk driving. IN HONOR OF THE PUERTO RICAN Cleveland Heights, South Euclid, Lyndhurst, Last year when drunk driving deaths in- ASSOCIATION FOR HUMAN DE- Richmond Heights, and Cleveland all include creased nationally, we saw a 42-percent de- VELOPMENT: FOR YEARS OF portions of the Euclid Township of 1796. crease in Portland. Empirical studies show DISTINGUISHED SERVICE TO THE Mr. Speaker, on August 11, 1959, Con- when you take away the car of the report HISPANIC COMMUNITY gresswoman Francis Bolton honored this his- drunk drivers it does get their attention, and toric event in the CONGRESSIONAL RECORD. the recidivism rate has dropped. This is a pro- Unfortunately, it did not accurately name the gram that works. HON. ROBERT MENENDEZ 41 individuals who were party to the contract. Today I am announcing what will be my first OF NEW JERSEY As the city of Euclid celebrates its bicenten- piece of legislation as a Member of the U.S. IN THE HOUSE OF REPRESENTATIVES nial, it is fitting that tribute is paid to the 41 Congress. Currently States must meet five of men whose actions 200 years earlier helped seven eligibility criteria to receive a share of Friday, September 20, 1996 to establish EuclidÐthen in the Northwest Ter- the $25 million in Federal drunk driving coun- Mr. MENENDEZ. Mr. Speaker, I rise today ritory, today in the great State of Ohio. Their termeasure grants. My proposal will add an- to pay special tribute to the Puerto Rican As- names deserve recognition. other criterion to choose from, a program to sociation for Human Development [PRAHD] confiscate the cars of repeat drunk drivers, for their endless contributions to Hispanic CORRECTIONS TO CONGRESSIONAL RECORD OF AUGUST like we've done in Portland. communities throughout New Jersey. For 10, 1959 I'm convinced that this simple step is going years, this agency has been committed to im- [Provided by the Euclid Historical Society] to move dramatically and spread the forfeiture proving the standard of living of Hispanic fami- Incorrect names Corrected names concept around the country. Already, over 60 lies through the implementation of programs cities and counties have requested information and services geared to address social, eco- Machintire ...... Joseph McIntire. Samuel Farber ...... Samuel Forbs. on our program. nomic, health, and educational status. On Elysha Gunn ...... Elijah Gunn. When so many issues pit one group against September 21, 1996, PRAHD will be sponsor- R. Stoddard ...... Richard M. Stoddard. Amos Little ...... Dr. Theodore Shepherd. another, it is encouraging that taking away the ing the 10th Annual Roberto Clemente ban- Asa Mafan ...... Asa Mason. cars of repeat drunk drivers has had such a quet, honoring four professionals and one Amazi Atwater ...... Amzi Atwater. Ayers ...... Elisha Ayer. broad coalition behind it. Law enforcement business institution for their outstanding public Harris ...... Thomas Harris. agencies, advocates like the Mothers Against service and community involvement. Norman Wallace ...... Norman Wilcox. Timothy Dunbar ...... Timothy Dunham. Drunk Driving, beer and wine distributors, and Founded in 1974 as a charitable organiza- George ...... George Gooding. others have all lent their support for Portland's tion by the Hispanic leadership of the Perth

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. E1668 CONGRESSIONAL RECORD — Extensions of Remarks September 20, 1996 Amboy area, the Puerto Rican Association for funding from Federal, State, county, and city Santamaria/Kung Eye Center, as outstanding Human Development operates multiple service governments; the United Way of New Jersey; professional; Sgt. Benjamin Ruiz of the Perth programs, such as day-care services, edu- the United Way of TriCounty/IBM; the Turrell Amboy Police Department, for outstanding law cational tutoring, emergency legal, housing, Fund; local corporations; and individual do- enforcement; Eladio Ruiz III, president of and medical assistance, drug prevention, nors. The agency is governed by an 11-mem- Amboy Florist, as outstanding volunteer; and youth and family counseling, and various sen- ber board of directors selected from the com- the Corestates New Jersey National Bank will ior services which serve more than 12,000 munity and is administered by Executive Di- receive the Roberto Clemente Special Cor- people annually. The agency is actively in- rector Lydia Trinidad, who is also PRAHD's porate Award. volved in creating alliances with other organi- chief executive officer. PRAHD also relies on I ask that my colleagues join me in rec- zations to help revitalize communities by de- the support and effort of community volunteers ognizing the outstanding work of the Puerto veloping leadership and assisting people to who work in all areas of agency operations. Rican Association for Human Development link their needs with resources. This year's annual banquet sponsored by and those honored at its annual banquet. I fur- Since its inception, PRAHD has expanded PRAHD will honor Eduardo Trujillo, president ther commend their accomplishments and en- to become a comprehensive service agency of ETC Enterprises, as outstanding business courage them to continue to serve their com- with a budget of over $1.6 million through person; Dr. Jaime Santamaria, director of munities for many more years to come. Friday, September 20, 1996 Daily Digest

HIGHLIGHTS House Filed Conference Report on H.R. 3666, VA/HUD Appropriations. Senate bat zone by vessels that are not United States-flag Chamber Action vessels. Pages S11073±81 Routine Proceedings, pages S11061–S11124 Inouye (for Harkin) Amendment No. 5396 (to Measures Introduced: Seven bills and one resolu- Amendment No. 5393), to provide for payment by tion were introduced, as follows: S. 2097–2103, and the Secretary of Transportation of certain ocean S.J. Res. 62. Page S11090 freight charges for Federal food or export assistance. Measures Passed: Pages S11074±81 Rejected: Health Centers Consolidation Act: Senate passed Grassley Amendment No. 5391, to provide for a S. 1044, to amend title III of the Public Health uniform system of incentive pay for certain hazard- Service Act to consolidate and reauthorize provisions ous duties performed by merchant seamen. (By 77 relating to health centers, after agreeing to commit- yeas to 16 nays (Vote No. 296), Senate tabled the tee amendments and the following amendment pro- amendment.) Pages S11061±64 posed thereto: Pages S11110±21 A unanimous-consent time agreement was reached Lott (for Kassebaum) Amendment No. 5397, in providing for further consideration of the bill at 4:30 the nature of a substitute. Pages S11114±16 p.m., with votes to occur on the proposed amend- Federal Law Enforcement Survivor Assistance: ments and final disposition of the bill beginning at Senate passed S. 2101, to provide educational assist- 5 p.m., on Tuesday, September 24, 1996. ance to the dependents of Federal law enforcement Page S11124 officials who are killed or disabled in the perform- Parole Commission Extension: Senate concurred in ance of their duties. Pages S11122±23 the amendment of the House to S. 1507, to provide Maritime Security Act: Senate resumed consider- for the extension of the Parole Commission to over- ation of H.R. 1350, to amend the Merchant Marine see cases of prisoners sentenced under prior law, and Act, 1936, to revitalize the United States-flag mer- to reduce the size of the Parole Commission, clearing chant marine, taking action on the following amend- the measure for the President. Pages S11123±24 ments proposed thereto: Pages S11061±64, S11069±81 International Natural Rubber Agreement, Pending: 1995—Agreement: A unanimous-consent agree- Grassley Amendment No. 5393, to clarify the ment was reached providing for the consideration of term fair and reasonable compensation with respect the International Natural Rubber Agreement, 1995 to the transportation of a motor vehicle by a certain (Treaty Doc. No. 104–27). Page S11124 vessel. Pages S11072±81 Grassley Amendment No. 5394, to prohibit the Messages From the President: Senate received the use of funds received as a payment or subsidy for following messages from the President of the United lobbying or public education, and for making politi- States: cal contributions for the purpose of influencing an Transmitting the report concerning the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act election. Pages S11072±81 Grassley Amendment No. 5395, to provide that of 1996; referred to the Committee on Foreign Rela- United States-flag vessels be called up before foreign tions. (PM–171). Pages S11088±89 flag vessels during any national emergency and to Nominations Received: Senate received the follow- prohibit the delivery of military supplies to a com- ing nominations: D977 D978 CONGRESSIONAL RECORD — DAILY DIGEST September 20, 1996

Richard J. Tarplin, of New York, to be an Assist- Additional Statements: Pages S11101±10 ant Secretary of Health and Human Services. Record Votes: One record vote was taken today. Page S11124 (Total—296) Page S11064 Messages From the President: Pages S11088±89 Recess: Senate convened at 9:30 a.m., and recessed Messages From the House: Page S11089 at 4:02 p.m., until 9:30 a.m., on Tuesday, Septem- Measures Placed on Calendar: Page S11124 ber 24, 1996. (For Senate’s program, see the remarks of the Majority Leader in today’s Record on page Measures Read First Time: Page S11110 S11124.) Communications: Pages S11089±90 Statements on Introduced Bills: Pages S11090±94 Additional Cosponsors: Page S11094 Committee Meetings Amendments Submitted: Pages S11094±S11101 No committee meetings were held. h House of Representatives Adjournment: Met at 9 a.m. and adjourned at Chamber Action 11:27 a.m. Bills Introduced: 3 public bills, H.R. 4128–4130 were introduced. Page H10762 Reports Filed: Reports were filed as follows: Committee Meetings H.R. 1031, a private bill, amended (H. Rept. 104–810); DRUG FREE WORKPLACE H.R. 1087, a private bill, amended (H. Rept. Committee on Government Reform and Oversight: Sub- 104–811); committee on Civil Service held a hearing on Drug Conference report on H.R. 3666, making appro- Free Workplace: White House Standards. Testimony priations for the Departments of Veterans Affairs and was heard from Franklin S. Reeder, Director, Ad- Housing and Urban Development, and for sundry ministration, The White House; Peter Nelson, Dep- independent agencies, boards, commissions, corpora- uty Director, Personnel Security, Department of De- tions, and offices for the fiscal year ending Septem- fense; Jane Vezeris, Deputy Assistant Director, Ad- ber 30, 1997 (H. Rept. 104–812); ministration, U.S. Secret Service, Department of the H.R. 4025, a private bill (H. Rept. 104–813); Treasury; and Thomas J. Coyle, Assistant Director, H.R. 4083, to extend certain programs under the Personnel Division, FBI, Department of Justice. Energy Policy and Conservation Act through Sep- tember 30, 1997, (H. Rept. 104–814); and IN THE MATTER OF REPRESENTATIVE H.R. 3217, to provide for ballast water manage- NEWT GINGRICH ment to prevent the introduction and spread of non- Committee on Standards of Official Conduct: On Septem- indigenous species into the waters of the United ber 19, the Committee met in executive session to States, amended (H. Rept. 104–815 Part I). consider a complaint filed against Representative Page H10762 Gingrich by Representative Miller of California. The Speaker Pro Tempore: Read a letter from the Committee dismissed the complaint and sent a letter Speaker wherein he designated Representative Miller to Representative Gingrich. of Florida to act as Speaker pro tempore for today. The Committee also voted to authorize the Chair- Page H10723 man to make a statement on its behalf that the Senate Messages: Messages received from the Senate Committee intends to proceed in accordance with its today appear on page H10757. rules and respect the responsibility of the Investiga- Quorum Calls—Votes: No quorum calls or votes tion Subcommittee to complete its work and report developed during the proceedings of the House to the Committee, at which time the report will be today. made public in accordance with House rules. September 20, 1996 CONGRESSIONAL RECORD — DAILY DIGEST D979 CONGRESSIONAL PROGRAM AHEAD Committee on Banking, Housing, and Urban Affairs: Sep- tember 25, HUD Oversight and Structure, to hold hear- Week of September 23 through 28, 1996 ings to examine the release of the Fourth Trade Pro- Senate Chamber motion Coordinating Committee annual report, 10 a.m., SD–538. On Monday, Senate will not be in session. Committee on Commerce, Science, and Transportation: Sep- On Tuesday, Senate will resume consideration of tember 24, Subcommittee on Consumer Affairs, Foreign H.R. 1350, Maritime Security Act with votes to Commerce, and Tourism, to hold hearings on S. 1860, to occur thereon. Senate may also begin consideration of provide for legal reform and consumer compensation re- a continuing resolution for the fiscal year 1997. lating to motor vehicle tort systems, 2:30 p.m., SR–253. During the week, Senate expects to consider the September 25, Subcommittee on Science, Technology, following: and Space, to hold hearings on issues relating to the Veto Message on the Partial-Birth Abortion Ban study of Mars, 9:30 a.m., SR–236. Act, any cleared executive and legislative business, September 25, Full Committee, to hold hearings on and conference reports, when available. aviation safety issues, focusing on treatment of families after airline accidents, 10 a.m., SR–253. (Senate will recess on Tuesday, September 24, 1996, September 26, Subcommittee on Aviation, to hold from 12:30 p.m. until 2:15 p.m. for respective party con- hearings to examine the status of air service to small ferences.) communities, 9:30 a.m., SR–253. House Chamber Committee on Energy and Natural Resources: September 25, Subcommittee on Forests and Public Land Manage- Monday, No Legislative Business. ment, to hold hearings on S. 987, to provide for the full Tuesday, Consideration of 2 bills from the Correc- settlement of all claims of Swain County, North Carolina, tions Calendar: against the United States under the agreement dated July 1. H.R. 3153, Small Business Transport Correc- 30, 1943, 2:30 p.m., SD–366. tion Advancement Act; and September 26, Subcommittee on Oversight and Inves- 2. H.R. 2988, Traffic Signal Synchronization; tigations, to hold hearings to examine the National Envi- Consideration of measures under suspension of the ronmental Policy Act decisionmaking process with regard rules (list to be announced later); to Federal Land Management Agencies and the role of the Consideration of H. Res. 525, Providing for Expe- Council on Environmental Quality, 2 p.m., SD–366. dited Procedures; and Committee on Finance: September 25, business meeting, Consideration of H.R. 3666, VA/HUD Appro- to mark up H.R. 3815, to make technical corrections and miscellaneous amendments to trade laws, 10 a.m., priations Act Conference Report. SD–215. Wendesday, and the Balance of the Week, Consider- Committee on Foreign Relations: September 24, to hold ation of H.R. 3540, Foreign Operations Appropria- hearings to examine the need for ballistic missile defense, tions Act for FY 97 Conference Report (subject to 10 a.m., SD–419. a rule); September 25, Full Committee, business meeting, to Consideration of H.R. 3259, Intelligence Author- consider pending calendar business, 10 a.m., SD–419. ization Act for FY 97 Conference Report (subject to September 25, Subcommittee on Near Eastern and a rule); South Asian Affairs, to hold hearings to examine pros- Consideration of H.R. 2202, Immigration in the pects for peace, security, and economic development in National Interest Act Conference Report (subject to Lebanon, 2 p.m., SD–419. a rule); September 26, Full Committee, to hold hearings to re- Consideration of H.R. 3005, Securities Amend- view the interpretation of the ABM Treaty and U.S. bal- ments of 1996 Conference Report (subject to a rule); listic missile defense, 10 a.m., SD–419. and Committee on Governmental Affairs: September 25, Sub- committee on Financial Management and Accountability, Consideration of H.R. , FY 97 Omnibus to hold oversight hearings on the regulatory review ac- Appropriations (subject to a rule). tivities of the Office of Information and Regulatory Af- Conference reports may be brought to the floor at any fairs, 10 a.m., SD–342. time. September 26, Full Committee, to hold hearings to re- Any further program will be announced later. view the annual report of the Postmaster General, 10 Senate Committees a.m., SD–342. Committee on the Judiciary: September 25, to resume (Committee meetings are open unless otherwise indicated) hearings to examine White House access to FBI back- Committee on Appropriations: September 26, to hold joint ground summaries, 10 a.m., SD–226. hearings with the Special Committee on Aging on in- September 25, Full Committee, to hold hearings on creasing funding for biomedical research, 9 a.m., the role of the Department of Justice in implementing SH–216. the Prison Litigation Reform Act, 2 p.m., SD–226. D980 CONGRESSIONAL RECORD — DAILY DIGEST September 20, 1996

September 26, Full Committee, to hold hearings to re- on House Oversight, joint oversight hearing on the view the annual refugee consultation process, 2 p.m., Smithsonian Institution, 10:30 a.m., 1310 Longworth. SD–226. September 26, Subcommittee on Civil Service, hearing Committee on Veterans’ Affairs: September 25, to hold on Politicization of the Federal Workforce, 9:30 a.m., joint hearings with the Select Committee on Intelligence 311 Cannon. on the Department of Defense and Intelligence reports of September 26, Subcommittee on National Security, U.S. military personnel exposures to chemical agents dur- International Affairs and Criminal Justice and the Sub- ing the Persian Gulf War, 10:30 a.m., SH–216. committee on Early Childhood, Youth and Families of Committee on Indian Affairs: September 24, to hold hear- the Committee on Economic and Educational Opportuni- ings to examine civil jurisdiction in Indian country, 9:30 ties, joint hearing on the epidemic of teenage drug use, a.m., SR–485. 9:30 a.m., 2154 Rayburn. September 25, Full Committee, to hold hearings to ex- September 26, Subcommittee on the Postal Service, to amine the phaseout of the Navajo/Hopi relocation pro- continue hearings on H.R. 3717, Postal Reform Act of gram, 1:30 p.m., SR–485. 1996, 2 p.m., 2247 Rayburn. Select Committee on Intelligence: September 25, to hold Committee on International Relations, September 24, Sub- joint hearings with the Committee on Veterans Affairs on committee on International Operations and Human the Department of Defense and Intelligence reports of Rights, hearing on United Nations: the Office of Sec- U.S. military personnel exposures to chemical agents dur- retary General and the Prospects for Reform, 1 p.m., ing the Persian Gulf War, 10:30 a.m., SH–216. 2172 Rayburn. Special Committee on Aging: September 24, to hold hear- September 25, full committee, hearing on U.S. policy ings to examine Social Security reform proposals, 9 a.m., in the Persian Gulf, 10 a.m., 2172 Rayburn. SD–628. September 25, Subcommittee on Asia and the Pacific, September 26, Full Committee, to hold joint hearings to mark up H. Con. Res. 213, concerning the urgent with the Committee on Appropriations on increasing need to improve the living standards of those South funding for biomedical research, 9 a.m., SH–216. Asians living in the Ganges and the Brahmaputra river basin; to be followed by a joint hearing with the Sub- House Committees committee on Native American and Insular Affairs of the Committee on Resources on U.S. Interests in the South Committee on Agriculture, September 24, Subcommittee Pacific: Freely Associated States and Okinawa, 2:30 p.m., on Department Operations, Nutrition, and Foreign Agri- 2255 Rayburn. culture, hearing to review the Hatch Act and related law September 25, Subcommittee on the Western Hemi- violations, 1:30 p.m., 1300 Longworth. sphere, hearing on the Issue of Quebec Sovereignty and September 25, Subcommittee on Livestock, Dairy, and its Potential Impact on the United States, 2:30 p.m., Poultry, hearing on dairy, poultry, and egg trade with 2172 Rayburn. Canada and the impact of the impending NAFTA panel September 26, full committee, to continue hearings on decision, 10 a.m., 1300 Longworth. Administration Actions and Political Murders in Haiti: Committee on Commerce, September 25, Subcommittee on Part II, 10 a.m., 2172 Rayburn. Energy and Power, hearing on the status of the Inter- September 26, Subcommittee on Africa, hearing on the national Global Climate Change Negotiations, 10 a.m., Administration’s performance in Africa, 2:30 p.m., 2172 2322 Rayburn. Rayburn. September 25, Subcommittee on Telecommunications September 27, full committee, hearing on U.S. Enter- and Finance, oversight hearing on restructuring of inter- prise Funds in Eastern Europe and the States of the national satellite organizations, 2 p.m., 2123 Rayburn. Former Soviet Union, 10 a.m., 2172 Rayburn. September 26, Subcommittee on Oversight and Inves- Committee on the Judiciary, September 25, hearing on tigations, hearing on consumer access to home testing H.R. 3011, Security and Freedom Through Encryption services and devices, 10 a.m., 2322 Rayburn. (SAFE) Act, 9:30 a.m., 2141 Rayburn. September 26, Subcommittee on Telecommunications Committee on National Security, September 24, Sub- and Finance, oversight hearing on the implementation of committee on Military Personnel, hearing on the Na- the Universal Service Provisions of the Telecommuni- tional Guard Youth Challenge Program, 3 p.m., 2118 cations Act of 1996, 10 a.m., 2123 Rayburn. Rayburn. Committee on Economic and Educational Opportunities, Sep- September 25, full committee, to continue hearings on tember 26, Subcommittee on Oversight and Investiga- current and future U.S. policy for Bosnia, 9:30 a.m., tions, hearing on the financial status of the Corporation 2118 Rayburn. for National Service 10 a.m., 2123 Rayburn. September 25, to meet to honor retiring members, 3 Committee on Government Reform and Oversight, September p.m., 2118 Rayburn. 24, to consider pending business, 6 p.m., 2154 Rayburn. September 26, hearing on U.S. policy towards Iraq, September 24, Subcommittee on National Security, 9:30 a.m., 2118 Rayburn. International Affairs, and Criminal Justice, hearing on September 27, Subcommittee on Military Procurement Citizenship USA, 1 p.m., 311 Cannon. and Subcommittee on Military Research and Develop- September 25, Subcommittee on Government Manage- ment, joint hearing on Ballistic Missile Defense plans, ment, Information and Technology and the Committee programs, and policies, 10 a.m., 2118 Rayburn. September 20, 1996 CONGRESSIONAL RECORD — DAILY DIGEST D981

Committee on Resources, September 25, to consider pend- cies, boards, commissions, corporations, and offices for the ing business, 11 a.m., 1324 Longworth. fiscal year ending September 30, 1997, 4 p.m., H–313 September 25, Subcommittee on Energy and Mineral Capitol. Resources, oversight hearing to investigate the progress of Committee on Small Business, September 25, hearing on a 1995 REGO II proposal to allow states to perform OSHA Reform and Relief for Small Business: What BLM’s inspection and enforcement programs on federal Needs to be Done? 10 a.m., 2539 Rayburn. lands, 2 p.m., 1334 Longworth. September 25, Subcommittee on Government Pro- September 26, Subcommittee on Fisheries, Wildlife, grams, hearing on FDIC’s handling of small business and Oceans, oversight hearing on oceanographic research, asset foreclosures in Massachusetts as a result of the fail- 10 a.m., 1334 Longworth. ure of ComFed Savings Bank in Lowell, MA, 2 p.m., September 26, Subcommittee on Water and Power Re- 2359 Rayburn. sources, hearing on H.R. 3777, Oroville-Tonasket Claim Settlement and Conveyance Act, 3 p.m., 1324 Long- Committee on Transportation and Infrastructure, September worth. 24, Subcommittee on Public Buildings and Grounds, to September 26, Task Force on Indian Trust Fund Man- mark up the following: Court Construction Prospectuses, agement, oversight hearing on the mismanagement of In- Non-Court Construction Prospectuses, Lease Prospectuses, dian Trust Fund accounts by the Department of the Inte- and other pending matters, 4 p.m., 2253 Rayburn. rior, 10 a.m., 1324 Longworth. September 26, Subcommittee on Surface Transpor- Committee on Rules, September 24, to consider the Con- tation, to continue hearings on ISTEA Reauthorization: ference Report on H.R. 3666, making appropriations for The Efficient Delivery of Transportation Improvements the Departments of Veterans Affairs and Housing and and the Congestion Mitigation and Air Quality Program, Urban Development, and for sundry independent agen- 9:30 a.m., 2167 Rayburn. D982 CONGRESSIONAL RECORD — DAILY DIGEST September 20, 1996

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9:30 a.m., Tuesday, September 24 12 noon, Monday, September 23

Senate Chamber House Chamber Program for Tuesday: After the recognition of one Sen- Program for Monday: No legislative business scheduled. ator for a speech and the transaction of any morning busi- ness (not to extend beyond 10:30 a.m.), Senate may begin consideration of a continuing resolution for the fiscal year 1997. At 4:30 p.m., Senate will resume consideration of H.R. 1350, Maritime Security Act.

Extensions of Remarks, as inserted in this issue

HOUSE

Blumenauer, Earl, Ore., E1667 Bono, Sonny, Calif., E1667 Dingell, John D., Mich., E1667 Menendez, Robert, N.J., E1667 Stokes, Louis, Ohio, E1667

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