July 18, 1994 CONGRESSIONAL RECORD-HOUSE 16849 HOUSE OF REPRESENTATIVES-Monday, July 18, 1994

The House met at 12 noon and was INDIANA HIGH SCHOOL BASEBALL what a strong mind and body can called to order by the Speaker pro tem­ CHAMPIONSHIP WON BY MISHA­ achieve. pore [Mr. MONTGOMERY]. W AKA'S KINGSMEN The following was said by Jacques (Mr. ROEMER asked and was given Barzun in the beginning of this cen­ permission to address the House for 1 tury: minute and to revise and extend his re­ Whoever wants to know the heart and DESIGNATION OF SPEAKER PRO mind of America had better learn baseball TEMPORE marks.) and the rules and realities of the game-and Mr. ' ROEMER. Mr. Speaker, I rise do it by watching first some high school or The Speaker pro tempore laid before today to honor and congratulate the small town teams. the House the following communica­ Kingsmen of Mishawaka's Penn High tion from the Speaker: Certainly by watching this high School. Previously unranked going school team from a small Indiana WASHINGTON, DC, into the 1994 Indiana State Baseball town, we can learn many realities July 18, 1994. Tournament, Coach Greg Dikos and his about baseball and America. We can I hereby designate the Honorable G.V. Kingsmen were not given much of a (SONNY) MONTGOMERY to act as Speaker pro learn the importance of a hard work tempo re on this day. chance at winning the championship. ethic, perfecting the fundamentals, and THOMAS S. FOLEY, After an impressive showing of guts never giving up. We can also learn Speaker of the House .of Representatives. and determination, however, the what is magical about America-any­ Kingsmen emerged victorious as the thing is possible if you work hard 1994 Indiana State Baseball Champions. enough and have the spirit to achieve Mr. Speaker, I applaud Coach Dikos, it. PRAYER assistant coaches Jim Kominkiewicz, Joel Reinebold, Tom Csenar, Joe Hig­ The Chaplain, Rev. James David SPECIAL ORDERS Ford, D.D., offered the following ginson, and each member of the team prayer: for this tremendous victory. As a grad­ The SPEAKER pro tempore. Under As we gather in the stillness of this uate of Penn High School, I am par­ the Speaker's announced policy of Feb­ hour and for this quiet moment of ticularly proud of this team's achieve­ ruary 11, 1994, and June 10, 1994, and prayer, we are aware, 0 God, of the vio­ ment. under a previous order of the House, lence that shakes our societies and After a slow start to their season, the the following Member will be recog­ brings such desolation to our commu­ team pulled together, and through nized for 5 minutes. nities and to our world. From the sheer determination and great ability, struggle of people for freedom with they won their final 13 games. The CODIFICATION OF RECENT LAWS their governments to the hundreds of Kingsmen started their run at the TO BE INCLUDED IN TITLE 49, thousands of refugees who are con­ State title by capturing the Elkhart UNITED STATES CODE, TRANS­ strained by circumstances to literally sectional. They capped off their dream PORTATION run for their lives, we see human com­ season by defeating Mccutcheon High School 4-3 in the championship game. The SPEAKER pro tempore. Under a munities out of touch with Your word previous order of the House, the gen­ of healing and people estranged from The championship team roster in­ cludes Todd Colburn, Matthew Hertel, tleman from Texas [Mr. BROOKS] is rec­ the unity that is Your will for us. May ognized for 5 minutes. each of us, whatever our opportunity Brian Gordon, Nathan Marrett, Greg­ Mr. BROOKS. Mr. Speaker, I am today in­ or ability, heed Your word to do jus­ ory Delnat, Jeff Persyn, Timothy Fur­ troducing a bill to codify without substantive tice, to love mercy, and to ever walk row, David Haverstick, Ryan Takach, change recent laws related to transportation humbly with You. Amen. George Holloway, Bradley Boynton, and to improve the United States Code. This Kent Blossom, Vincent Mucker, Shawn bill has been prepared by the Office of the Summe, Todd Fizer, Benjamin Eby, Law Revision Counsel as a part of the pro­ Gregory Dikos, Scott Becker, Brian THE JOURNAL gram of the Office to prepare and submit to Bock, and Eric Ferrettie. These young the Committee on the Judicia,ry of the House The SPEAKER pro tempore. The men serve as an example to the com­ of Representatives revisions of titles enacted Chair has examined the Journal of the munity to never give up, always do into positive law to keep those titles current. last day's proceedings and announces your best, and set high seasonal goals. This bill makes no change in the substance to the House his approval thereof. Penn High School has a long and sto­ of existing law. It amends title 49, United Pursuant to clause 1, rule I, the Jour­ ried history of success on the athletic States Code, codified into positive law by the nal stands approved. field and in the classroom. I applaud act of July 5, 1994 (Public Law 103-272, 108 Coach Dikos for combining his fine Stat. 745), to incorporate in title 49 the provi­ athletic program with a strong empha­ sions of two recently enacted laws. It also sis on academics. In addition to play­ makes technical and conforming changes to PLEDGE OF ALLEGIANCE ing on the State Champion baseball clarify certain sections of title 49 as enacted. The SPEAKER pro tempore. Will the team, several members of this team Anyone interested in obtaining a copy of the gentleman from Indiana [Mr. ROEMER] were honor roll students this year. bill and a copy of the draft committee report­ come forward and lead the House in the The Kingsmen are known throughout containing reviser's notes-to accompany the Pledge of Allegiance. Northern Indiana for their tradition of bill should contact Edward F. Willett, Jr., Law Mr. ROEMER led the Pledge of Alle­ sportsmanship and quality athletic Revision Counsel, House of Representatives, giance as follows: teams. The football team, under the H2-304, Ford House Office Building, Wash­ I pledge allegiance to the Flag of the leadership of Coach Chris Geesman, ington, DC 20515. United States of America, and to the Repub­ brought home the State championship Persons wishing to comment on the bill lic for which it stands, one nation under God, in 1983. Now, this current State cham­ should submit those comments to the commit­ indivisible, with liberty and justice for all. pionship demonstrates to us once again tee no later than July 25, 1994.

D This symbol represents the time of day during the House proceedings, e.g., D 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. 16850 CONGRESSIONAL RECORD-HOUSE July 18, 1994 SPECIAL ORDERS GRANTED D.C. Code, section l- 233(c)( l); to the Commit­ portation and to improve the United States tee on the District of Columbia. Code; to the Committee on the Judiciary. By unanimous consent, permission to 3536. A letter from the Assistant Legal Ad­ address the House, following the legis­ viser for Treaty Affairs, Department of lative program and any special orders State, transmitting copies of international heretofore entered, was granted to: agreements, other than treaties, entered into ADDITIONAL SPONSORS (The following Member (at the re­ by the United States, pursuant to 1 U.S.C. 112b(a); to the Committee on Foreign Affairs. Under clause 4 of rule XXII, sponsors quest of Mr. ROEMER) to revise and ex­ were added to public bills and resolu­ tend his remarks and include extra­ 3537. A letter from the Acting CEO, Resolu­ tion Trust Corporation, transmitting the tions as follows: neous material:) Corporation's Management Report for the H.R. 1031: Ms. SCHENK. Mr. BROOKS, for 5 minutes today. period ending December 31, 1993, pursuant to H.R. 1277: Mr. SWIFT. Public Law 101-576, section 306(a) (104 Stat. H.R. 3486: Mr. LAROCCO. 2854); to the Committee on Government Op­ H.R. 3769: Mr. BLACKWELL. EXTENSION OF REMARKS erations. H.R. 3966: Mr. NEAL of North Carolina. By unanimous consent, permission to 3538. A letter from the Comptroller Gen­ H.R. 3967: Mr. BERMAN, Mr. POMBO, Mr. revise and extend remarks was granted eral, General Accounting Office, transmit­ GALLEGLY, Mr. CALVERT, and Mr. MCINNIS. ting the results of their audits of the finan­ H.R. 4124: Mr. WILLIAMS. to: cial statements of the Resolution Trust Cor­ H.R. 4396: Mr. HOAGLAND, Mr. DIXON, Mr. (The following Members (at the re­ poration for the years ended December 31, ROMERO-BARCELO, Mr. THOMPSON, and Mr. quest of Mr. ROEMER) and to include 1993 and 1992, pursuant to 31 U.S.C. 9106(a); EMERSON . extraneous matter:) jointly, to the Committees on Government H.R. 4589: Mr. ROYCE, Mr. cox, and Mr. Mr. RANGEL. Operations and Banking, Finance and Urban DREIER. Mr. LIPINSKI. Affairs. H.R. 4721: Mr. POMBO, Mr. HANSEN, and Mr. Mr. GORDON. EDWARDS of California. Mr. BURTON of Indiana. H.J. Res. 297: Mr. SANDERS and Ms. REPORTS OF COMMITTEES ON CANTWELL. PUBLIC BILLS AND RESOLUTIONS H.J. Res. 326: Mr. HUGHES. ADJOURNMENT Under clause 2 of rule XIII, reports of H. Res. 270: Mr. MCMILLAN. Mr. ROEMER. Mr. Speaker, I move committees were delivered to the Clerk that the House do now adjourn. for printing and reference to the proper The motion was agreed to; accord­ calendar, as follows: PETITIONS, ETC. ingly (at 12 o'clock and 5 minutes [Pursuant to the order of the House on July 14, Under clause 1 of rule XXII, petitions p.m.), under its previous order, the 1994, the following report was filed on July 15, and papers were laid on the Clerk's House adjourned until tomorrow, Tues­ 1994) desk and referred as follows: day, July 19, 1994, at 10:30 a.m. Mr. GONZALEZ: Committee on Banking, 107. By the SPEAKER: Petition of the Na­ Finance and Urban Affairs. H.R. 3838. A bill tional Association of Attorneys General, to amend and extend certain laws relating to Washington, DC, relative to rent-to-own EXECUTIVE COMMUNICATIONS, housing and community development, and transactions; to the Committee on Banking, ETC. for other purposes; with an amendment Finance and Urban Affairs. (Rept. 103-607). Referred to the Committee of Under clause 2 of rule XXIV, execu­ 108. Also, petition of the National Associa­ the Whole House on the State of the Union. tion of Attorneys General, Washington, DC, tive communications were taken from [Submitted July 18, 1994) relative to domestic violence and unfair in­ the Speaker's table and referred as fol­ Mr. CLAY: Committee on Post Office and surance practices; to the Committee on En­ lows: Civll Service. H.R. 512. A bill to amend chap­ ergy and Commerce. 3531. A letter from the Chairman, Council ter .87 of title 5, United States Code, to pro­ 109. Also, petition of the New Jersey State of the District of Columbia, transmitting a vide that group life insurance benefits under Federation of Women's Clubs, Mantua, NJ, copy of D.C. Act 10-276, " Motor Vehicle such chapter may, upon application, be paid relative to gun control laws, to the Commit­ Tinted Window Amendment Act of 1994," out to an insured individual who is termi­ tee on the Judiciary. pursuant to D.C. Code, section l-233(c)(l); to nally ill, and for other purposes; with an 110. Also, petition of the National Associa­ the Committee on the District of Columbia. amendment (Rept. 103-608). Referred to the tion of Attorneys General, Washington, DC, 3532. A letter from the Chairman, Council Committee of the Whole House on the State relative to the so-called Racial Justice Act; of the District of Columbia, transmitting a of the Union. to the Committee on the Judiciary. copy of D.C. Act 10-277, " Rental Housing Act 111. Also, petition of the National Associa­ of 1985 Freezing Temperature Amendment tion of Attorneys General, Washington, DC, Act of 1994, " pursuant to D.C. Code, section PUBLIC BILLS AND RESOLUTIONS relative to occupancy standards under the l-233(c)(l); to the Committee on the District Under clause 5 of rule X and clause 4 Fair Housing Act; to the Committee on the of Columbia. Judiciary. 3533. A letter from the Chairman, Council of rule XXII, public bills and resolu­ 112. Also, petition of the National Associa­ of the District of Columbia, transmitting a tions were introduced and severally re­ tion of Attorneys General, Washington, DC, copy of D.C. Act 10-278, "HIV/AIDS Services ferred as follows: relative to Federal taxation of gaming; to Grant Making Authority Act of 1994, " pursu­ By Mr. MONTGOMERY (for himself, the Committee on Ways and Means. ant to D.C. Code, section l-233(c)(l); to the Mr. STUMP, and Mr. HUTCHINSON): 113. Also, petition of the National Associa­ Committee on the District of Columbia. H.R. 4776. A bill to amend title 38, United tion of Attorneys General, Washington, DC, 3534. A letter from the Chairman, Council States Code, to improve veterans' employ­ relative to expanding the jurisdiction of of the District of Columbia, transmitting a ment programs, and for other purposes; to State Medicaid fraud control units; jointly, copy of D.C. Act 10-279, " Soll Erosion and the Committee on Veterans' Affairs. to the Committees on Energy and Commerce Sedimentation Control Amendment Act of By Mr. BROOKS: and the Judiciary. 1994, " pursuant to D.C. Code, section l- H.R. 4777. A bill to make technical im­ 114. Also, petition of the National Associa­ 233(c)(l); to the Committee on the District of provements in the United States Code by tion of Attorneys General, Washington, DC , Columbia. amending provisions to reflect the current relative to the National Institute for the En­ 3535. A letter from the Chairman, Councll names of congressional committees; to the vironment; jointly, to the Committees on of the District of Columbia, transmitting a Committee on the Judiciary. · Energy and Commerce, Public Works and copy of D.C. Act 10-280, "Statehood Commis­ H.R. 4778. A bill to codify without sub­ Transportation, and Merchant Marine and sion Amendment Act of 1994," pursuant to stantive change recent laws related to trans- Fisheries. July 18, 1994 CONGRESSIONAL RECORD-SENATE 16851 SENATE-Monday, July 18, 1994

(Legislative day of Monday, July 11, 1994)

The Senate met at 1:30 p.m., on the of morning business not to extend be­ * * * They were taking something away expiration of the recess, and was called yond the hour of 2 p.m., with Senators that was valuable to us. My dad meant more to order by the Honorable DA vm permitted to speak therein for not to to me than something you could just haul PRYOR, a Senator from the State of Ar­ exceed 5 minutes. around wood with. That van gave him life, and without that van he wouldn't have gone kansas. Mr. DASCHLE. Mr. President, I sug­ anywhere. gest the absence of a quorum. PRAYER The ACTING PRESIDENT pro tem­ Chris' kindness is setting off an out­ pouring of generosity from citizens The Chaplain, the Reverend Richard pore. The clerk will call the roll. The assistant legislative clerk pro­ who have been deeply touched. C. Halverson, D.D., offered the follow­ An anonymous gentleman set up a ing prayer: ceeded to call the roll. Mr. DOLE. Mr. President, I ask unan­ trust fund for Chris at a local bank, do­ * * * Father of lights, with whom is no imous consent that the order for the nating the first $100 toward a car. An variableness, neither shadow of turning.­ quorum call be rescinded. area automobile dealer agreed to credit James 1:17. The PRESIDING OFFICER (Mr. Chris for $1,500 toward purchase of a Let Your light shine on the Senate in DASCHLE). Without objection, it is so car. Another man convinced six people these difficult, stressful hours. ordered. to put up $250 each and hopes to attract Illuminate the shadows and the dark­ more. A minister offered to give Chris ness of compounding complications. his 1980 Lincoln. Enable the leaders and Members to RECOGNITION OF THE Others are signing up for the annual find their way out of blind alleys, REPUBLICAN LEADER George Brett Celebrity Golf Tour­ blocked intersections, dead ends, and Mr. DOLE. Was leaders' time re­ nament benefiting ALS or are making detours which go nowhere. When cour­ served? donations to the ALS Research Fund. age fails, resolution fades and intran­ The PRESIDING OFFICER. The Sen­ Cars for future auctions and cash do­ sigence builds, protect against little ator's time was reserved. nations are coming in to the local victories in which nobody wins and big The Republican leader is recognized. chapter of the American Cancer Soci­ defeats in which everybody loses. ety. Sovereign Lord, make Your presence At the young age of 16, Chris is a true felt, and grant to the Senators hearts WITH GRATITUDE TO CHRIS RAHIMIAN American hero. His generous act of and minds receptive to Your will and compassion is a fine tribute to his late way. Mr. DOLE. Mr. President, during a father and an outstanding example for In His name who is the light of the recent unexpected series of events, all of us. world. Amen. Chris Rahimian, a 16-year-old resident Mary Hendricks can now enjoy the of Overland Park, KS, became a true freedom that John .Rahimian cher­ hero by demonstrating uncommon gen­ ished. APPOINTMENT OF ACTING erosity which gained the respect of the PRESIDENT PRO TEMPORE Chris has my highest respect and entire community. deep admiration. The PRESIDING OFFICER. The With a great deal of admiration, I clerk will please read a communication join his supporters from Kansas and to the Senate from the President pro throughout the Midwest in saluting UNIVERSAL SERVICE: TRANSITION tempore [Mr. BYRD]. this young man. FROM REGULATION TO COMPETI­ The assistant legislative clerk read Chris attended a used car auction TION the following letter: sponsored by the American Cancer So­ Mr. DOLE. Mr. President, for more ciety with the intention of using the U.S. SENATE, than a century, the United States has PRESIDENT PRO TEMPORE, $1,500 which he had saved by doing yard been the world's leader in communica­ Washington, DC, July 18, 1994. work to buy a car. It happened that the tions. We invented the telegraph, the To the Senate: wheelchair accessible van used by his telephone, the computer, and the Under the provisions of rule I, section 3, of late father had also been donated for the Standing Rules of the Senate, I hereby microchip. It is no wonder then that we the auction. John Rahimian had relied are without equal in this industry and appoint the Honorable DAVID PRYOR, a Sen­ upon that van prior to his death on ator from the State of Arkansas, to perform that it represents a major and growing May 23 of amyotrophic lateral sclero­ part of our economy. Republicans rec­ the duties of the Chair. sis. ROBERT C. BYRD, ognized more than a decade ago that President pro tempore. Bidding for the van began at $2,000, the maximum that Mary Hendricks, this would be the economic issue of the Mr. PRYOR thereupon assumed the who also has ALS, could afford to future and that we should develop poli­ chair as Acting President pro tempore. spend. cies that would foster further growth Chris saw Mary break into tears of and strengthen our hand here at home and abroad. This debate is now cen­ RESERVATION OF LEADER TIME frustration as the bids went up. He quickly realized that he could not tered around what some call the infor­ The ACTING PRESIDENT pro tem­ allow a $2, 700 bidder who planned to do mation highway. pore. Under the previous order, the hauling and repair work take the van FLEXIBLE POLICY IS THE ROLE OF CONGRESS leadership time is reserved. away from Mary. Looking back on Congress' track In a flash, Chris shouted the winning record, a casual observer would suspect bid of $3, 700. that we have a vendetta for the com­ MORNING BUSINESS Amid tears of joy, Chris gave the ve­ munications industry. Fortunately, The ACTING PRESIDENT pro tem­ hicle to Mary Hendricks after his this image is changing and Republicans pore. Under the previous order, there mother, Bonnie, paid the $2,200 dif­ are glad to see that the traditional will now be a period for the transaction ference. Chris explained, proregulators are finally coming

e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. 16852 CONGRESSIONAL RECORD-SENATE July 18, 1994 around to our competitive way of areas are different. Population is Mr. President, it is premature, if not thinking. Do not get me wrong. Con­ sparse and telephone traffic volume is dangerous, for Congress to move for­ gress can play an important role. But limited. The bottom line is that tele­ ward on any piece of legislation with­ only if we develop flexible policy that phone service costs are higher. out solving the question of universal will accommodate the rapid explosion The concept of universal service has service. Without it as the foundation of new technology. It would be irre­ helped alleviate these problems in the for any communications proposal, sponsible, however, for Congress and past, and it can continue to do so in rates will go up for suburban and rural the administration to believe that they the future. It has made telephone serv­ customer&--and that is not for new can do anything more. ice accessible in rural and hard-to­ services, just the ones they already COMPETITION IS BETTER THAN REGULATION serve areas through Federal financing have. More competition and less regu­ Now I read all the hype about Vice and by requiring the telephone compa­ lation can fuel advances. But I, for one, President AL GORE 'S information high­ nies to provide telephone service to want all the people of Kansas to have a way, and how some compare its cre­ every rural resident that wanted it. real choice among information serv­ ation to that of the Gutenberg press. I There is no doubt about it, universal ices. After all, Mr. President, we will think cheerleaders have their place, service has greatly enhanced the over­ need more than dirt roads if we are to but let us not forget that coaches call all value of the telecommunications link rural America to the so-called in­ the plays that win games. And in this systems in the whole Nation. formation superhighway. case, private industry, not big govern­ As private industry sets out to build I think I can speak for the occupant ment, is the coach. new systems, I do not want telephone of the chair from South Dakota, Sen­ I agree with Andy Grove, the CEO customers from Plainville in Rooks ator DASCHLE, and my colleague from and president of the largest microchip County or McLouth in Jefferson Coun­ Iowa, Senator GRASSLEY, now on the producer in the world, Intel. Recently ty to pay significantly higher rates, or floor. on the Larry King Show, he responded miss out on the ability to choose Mr. President, if I could take just 1 to the Gutenberg press comments by among all the new information sources, additional minute to include some­ saying that, or lose the ability to compete with thing else in the RECORD. As I remember my history, I don't think urban businesses just because they are The PRESIDING OFFICER. The the Government or the pseudo-governmental in sparsely populated rural areas. Chair informs the Senator from Kansas agencies were particularly helpful in propa­ Rural Americans deserve the most he has at least 5 minutes remaining. gating printed material or printing press. I beneficial market structure for rural Mr. DOLE. I thank the Chair. don't think governmental agencies are help­ market conditions. They will need ef­ ful in propagating new technology. fective, sustainable universal service That is his quote, not mine. mechanisms to support reasonable HAITI COMMISSION It seems to me that he has a point. rates for a modern rural network. Mr. DOLE. Mr. President, invasion Just take a look at a few of the players Telecommunications policy should talk for Haiti continued this weekend. in the U.S. communications industry. also consider the success of the Rural Deputy Secretary of State Talbott says Last year, the computer industry had Electrification Administration and ''The end of the day is approaching.'' revenues close to $360 billion. Two rural telephone bank programs. These That is his quote: "The end of the day things are amazing about that figure. programs have been instrumental in fi­ is approaching." First, it is twice the telephone indus­ nancing the construction and improve­ I saw with interest this morning that try's revenues. And second, almost half ment we have today. Strong REA and William Raspberry's column in the that figure represents revenues from RTB programs have made capital Washington Post contains an endorse­ the personal computer industry-which available at a reasonable cost. At the ment-of sort&-- for a factfinding com­ for all intents and purposes was non­ same time, effective Federal and State mission. I will ask that the article be existent in 1980. In other words, per­ support mechanisms have helped make printed at the conclusion of my re­ sonal computers have done almost as rural rates affordable and have pro­ marks. Walter Fauntroy, the former much in 14 years as the entire tele­ vided rural Americans a telecommuni­ Delegate from the District of Colum­ phone industry did in 100. cations link to an information-rich bia, is quoted at length. He points out: It is not too difficult to figure out economy and society. Knowledge is power. If [the Bush and Clin­ that the computer industry benefited In 1972, after several years of delib­ ton administrations] had more knowledge from fierce competition and minimal eration, several other rural Members of about Haiti, its people and its history, they government regulation. Phone compa­ Congress joined Bob Poage and I to in­ would have had the power to resolve the sit­ nies did not. Cable. TV also exploded troduce and pass the rural telephone uation without resort to violence. after it was deregulated in 1984. At that bank [RTBJ bill. It was patterned after That is Walter Fauntroy's quote, not time, its revenues were at $7.8 billion the Farm Credit Act. Seed money was mine. Fauntroy talks about how the and employed 67,381 persons. Fast-for­ provided by the Congress, and loans embargo has accelerated deforestation ward to its reregulation in 1992, and its were made to telephone companies to and made the sick sicker and the poor revenues had tripled and its employ­ improve the quality of service with the poorer. ment numbers had jumped to 108,280. same requirement as REA loans for Fauntroy also points out the way to While these numbers are also good, I service to everyone in the service area. a political solution is to support the would suggest that the cable TV indus­ The RTB loans enabled rural telephone center and isolate the extremes. This try would have done much better if it companies to provide better service, seems pretty obvious. And Fauntroy had faced competition. More impor­ such as single-party lines for comput­ points out the most recent effort to tantly, I would suggest that there ers. achieve a political solution was scut­ would not have been the abuses which Repayment of the loans with interest tled by Aristide's actions. prompted Congress to consider its re­ has increased the capitalization of the This isn't General Cedras saying we regulation. bank. RTB lending loans to its owner­ should have more facts, and that UNIVERSAL SERVICE IS ESSENTIAL borrowers have supplemented REA Aristide blocked a political solution. In order to get to a more competi­ loans, and together they help bring It's Walter Fauntroy-long-time mem­ tive, less regulatory environment, farmers and rural businesses new com­ ber of the Congressional Black Caucus there must be a strong and sensible munications services needed for tomor­ and chairman of the bipartisan Con­ transition mechanism. If we do not, I row. Increased services in these rural gressional Task Force on Haiti. fear that as we move boldly toward areas from the rural telephone compa­ In the end, Fauntroy concludes the new technologies and new opportuni­ nies will also help create better edu­ United States must invade because of ties, Kansas and the rest of the of rural cational and health programs and im­ past policy failures. In my view, that is America will be left behind. Rural prove the quality of rural life. exactly the wrong conclusion-we July 18, 1994 CONGRESSIONAL RECORD-SENATE 16853 should not risk American lives because Did Fauntroy have that knowledge? "I looks all too familiar. There is no the White House and the State Depart­ knew that a embargo was wrong, because the "there" there. The President's so­ ment could not formulate proper pol­ sick would get sicker and the poor poorer" called welfare reform reminds me of he told me. "The last person to go wanting icy. The fact is, there are alternatives for food or medicine would be the one with the story of the emperor's new clothes. to invading Haiti if anybody in this ad­ the gun. I knew that an embargo would frus­ Everyone will say they are beautiful, ministration is interested in looking at trate what our task force had been doing­ but really there is nothing there. True them. Bill Gray's predecessor had some seeking to attract labor-intensive industry welfare reform must do at least three good ideas. The Haitian Parliament has to the island as a way of dealing with the en­ things. some good ideas. Maybe we could learn ergetic but largely illiterate population. It First, it must reduce the rising cost from our 19-year effort at nation-build­ was predictable that an embargo would drive of welfare programs. Second, it must ing earlier this century. those businesses into the eager arms of address the social crisis of illegi t­ places like the Dominican Republic and Hon­ Reverend Fauntroy is one of many duras and Costa Rico. imacy. Finally, it must require real Haiti experts who say we should have "We spend a lot of years trying to help work from recipients. spent more time looking at the reality Haiti recover from a French-led land scheme This plan does nothing to address the of Hai ti and less time rattling the sa­ that had pretty much deforested the place. dramatic increase in welfare cost. In bers. It's too bad we cannot set par­ We launched a reforestation program to keep fact it adds to it. The President's pro­ tisan politics aside and take a time out the soil from washing into the sea. Well, the posal has an increase of $9.3 billion in to review some of these ideas before first result of the embargo was an oil short­ spending over the next 5 years. We the invasion is launched. age, which meant that people began cutting down the trees to make charcoal." have no estimate of what that cost will I ask unanimous consent the article There were subtler things, though, that a be in the out years after the turn of the by Mr. Raspberry be printed at the end greater U.S. knowledge of Haiti might have century. of my statement. accomplished, Fauntroy believes. The earlier Statistics show that the current wel­ There being no objection, the article ouster of Jean-Claude (Baby Doc) Duvalier fare state is projected to grow from was ordered to be printed in the involved not just pressure of the sort the $300 billion in 1994 to almost $500 bil­ RECORD, as follows: Clinton administration is applying to the lion by the turn of the century. The av­ [From the Washington Post, July 18, 1994) military leaders but also the deliberate nur­ turing of a centrist political faction capable erage American working family cur­ ONE CHOICE IN HAITI of crafting the constitution that would be rently pays $3,800 a year to support the (By William Raspberry) the basis of democracy. existing welfare state. This will in­ President Clinton, we are told, has not "By promoting the centrists we were able crease to $7 ,000 a year by the end of the made a decision about going to war in Haiti. to isolate the extremes-both those on the century when the Clinton plan is fully Maybe he hasn't. But with American serv­ right, with their penchant for violence, and implemented. ice personnel engaged in Haiti-like maneu­ those on the left, who wanted nothing less Republican plans, by contrast, cut at vers, with 2,000 Marines already deployed off than the complete leveling of the society. It the Haitian coast and with the U.S. war­ also split the military, so that centrist mili­ least $30 billion in the next 5 years and planes broadcasting speeches in which the tary leaders could come to the fore and help take some of the savings to support ousted President Jean-Bertrand Aristide put together a constitution with check and family tax relief. vows to return to the island, it certainly balances-a sharp break with Haiti's his­ It is crucial that welfare reform cap looks like the president has made a decision. tory.'' welfare costs-apart from Medicaid-at "The end of the day is approaching," Dep­ The last chance of a resumption of that an aggregate growth rate of 3.5 percent uty Secretary of State Strobe Talbott told a policy-and of an effort by the present am­ for inflation. This allows some pro­ CNN audience on Saturday. He said he hoped bassador, William Swing, to cultivate mem­ that the military leaders who have run Haiti bers of the Haitian parliament in order to grams to grow more, while other pro­ since Aristide's ouster in a 1991 coup would work out a process for Aristide's eventual re­ grams grow less. step down voluntarily, but said, "We can't turn-was scuttled a year ago when Aristide Another issue that must be addressed wait forever.'' refused to abide by a resolution reached by a in real welfare reform is the serious Virginia Sen. John Warner (R) said Satur­ multiparty conference in Miami, Fauntroy rise in illegitimacy, welfare enemy No. day that he senses "almost a war fever" in believes. 1. There is almost unanimous support Washington, adding that he questioned the Now, he said, the choices are to "go in or across the political spectrum that appropriateness of an invasion. walk away." And each option has its own Walter E. Fauntroy used to. The former problems. something must be done to address this congressman from the District of Columbia Going in would give the invaders control, crisis. The consequences to the child, and chairman for 15 years of a bipartisan but it would also saddle them with the re­ the mother, and society are simply too congressional task force on Haiti said over sponsibility of running Haiti for a decade or serious to continue to ignore. the weekend that the Clinton administration longer-not merely to maintain the peace Fo~ over 30 years, we have treated has pretty much run out of options. but to assume the very efforts Fauntroy's this issue as if it is simply a moral "We're down to two choices," he told me in task force started years ago. As Fauntroy put it, "Conquest is easy; occupation is question, thus, one in which Govern­ an interview. "Either we go in, or we walk ment should not become involved. Re­ away. hard." The liberal Democrat, Baptist minister and But if we don't go in, he says, the thugs cent studies have shown, however, that consultant on international finance and will remain in charge of what would surely children born outside marriage are two trade said his reluctant choice is: Go in. be an outlaw territory and a transshipment to three times more likely to have It's a position he doesn't like being in. He point for U.S.-bound narcotics. And worse: emotional or behavioral problems than has been pushing for a negotiated settlement The immigration problem that has driven those in intact families. They have of Haiti's governmental crisis since the be­ the Clinton administration to the brink higher risks of child abuse and neglect, ginning, refusing even to join the bandwagon would only grow worse. "It's in our national interest to stop this poor school performance, having chil­ for economic sanctions, let alone military dren of their own as teenagers, having action. outflow," he concludes. "We've got to go in." He still thinks he was right-and not mere­ their own marriages end in divorce, ly because of his nonviolent philosophy as a and six times greater risk of being one-time lieutenant of Martin Luther King WELFARE REFORM pQor. The absence of parents frequently Jr. Mr. GRASSLEY. Mr. President, the leads to both illegitimacy and welfare He believes that the reason Clinton-and Finance Committee held a hearing last dependency for a series of generations. Bush before him-couldn't find a way out of week concerning President Clinton's These consequences are what results the Haitian mess is that they didn't know enough. - welfare proposal. Secretary Shalala, from the Government acting as father. "Knowledge is power," he said. "If they Assistant Secretary Bain, and Assist­ To continue to ignore these con­ had had more knowledge about Haiti, its ant Secretary Ellwood were present to sequences will result in greater de­ people and its history, they would have had testify. struction for children, young mothers the power to resolve the situation without President Clinton promised to end and society. The President's proposal resort to violence." welfare as we know it. But this plan only requires young mothers to live at 16854 CONGRESSIONAL RECORD-SENATE July 18, 1994 home, stay in school, and receive con­ Not only has Mr. Bennett been a piv­ Mr. BUMPERS. Madam President, traceptive advice. In fact, while the ex­ otal asset to the accessibility of genea­ parliamentary inquiry. What is the planatory materials about the Presi­ logical records in Utah, he also nego­ pending business? dent's plan mention abstinence, the tiated filming contracts for microfilm The PRESIDING OFFICER (Ms. President's actual bill does not. It sim­ in Connecticut, Georgia, Maryland, MOSELEY-BRAUN). The pending business ply promotes decisionmaking. New Jersey, North Carolina, Penn­ is morning business. This does not truly address the crisis sylvania, Vermont, and Virginia. By of keeping young women from having 1948, he had negotiated filming con­ children in the first place. It is simply tracts in numerous European countries CONCLUSION OF MORNING an attempt to put Humpty Dumpty as well. BUSINESS back together again after he has fallen In 1964, Mr. Bennett developed a sys­ The PRESIDING OFFICER. Morning to his own destruction. Should not our tem of branch libraries, known today business is closed. policies promote the avoidance of these as family history centers. This institu­ costly situations in the first place? tion, along with the GSU has helped AGRICULTURAL, RURAL DEVELOP­ The administration's plan also allows make the research acquired through millions of welfare recipients to con­ MENT, FOOD AND DRUG ADMIN- the efforts of Mr. Bennett and others, ISTRATION, AND RELATED tinue receiving welfare benefits with­ available to researchers. Mr. Bennett out any requirements at all. The work AGENCIES APPROPRIATIONS organized and administered the pro­ ACT, 1995 provisions only apply to those born in gram and was appointed to be the first 1972 or after. What about everyone over manager of these branch libraries. The PRESIDING OFFICER. Under age 22? Nothing is required of them. Mr. Bennett researched many fami­ the previous order, the Senate will now Not only that, according to the lies in New England. Much of his work proceed to the consideration of H.R. President's own documents, the actual 4554, which the clerk will report. number of people required to work will remains in manuscript form in family history files. He is also the author of The legislative clerk read as follows: be set by the amount of Federal funds four highly acclaimed textbooks, "A A bill (R.R. 4554) making appropriations allocated to support them, not by any for Agriculture, Rural Development, Food supposed 2-year timeframe. guide For Genealogical Research," and Drug Administration, and Related Agen­ When the American people think of "Finding Your Forefathers in Amer­ cies programs for the fiscal year ending Sep­ welfare reform, they want recipients to ica," "Advanced Genealogical Re­ tember 30, 1995, and for other purposes. be required to work for their benefits. search," and "Searching With Suc­ The Senate proceeded to consider the All other American families go to work cess." bill, which had been reported from the to support their families. They get up, Most genealogists researching in the Committee on Appropriations, with go to a particular work site, do a day's more than 2,000 family history centers amendments; as follows: labor, receive a paycheck, and make worldwide today may not have heard of (The parts of the bill intended to be ends meet to support their families. Archibald Fowler Bennett, but they are stricken are shown in boldface brack­ They expect no less from recipients of deeply influenced by him. Family his­ ets, and the parts of the bill intended public assistance. tory centers, pedigree charts, family to be inserted are shown in italic.) We are a compassionate nation. We group records, and microfilm, are used R.R. 4554 always have been. People do not mind by most genealogists today and were Be it enacted by the Senate and House of Rep­ assisting someone in crisis to get back all developed by Mr. Bennett. In this, resentatives of the United States of America in on his or her feet. However, they do not the centennial year of the Genealogical Congress assembled, That the following sums expect to have to support that individ­ Society of Utah, it is most fitting that are appropriated, out of any money in the ual for years to come. They expect peo­ this unique man, who gave so much to Treasury not otherwise appropriated, for Ag­ ple to take action to help themselves the entire genealogical community, riculture, Rural Development, Food and also. has been elected to be honored in the Drug Administration, and Related Agencies Overall, the plan does not do what National Genealogy Hall of Fame. programs for the fiscal year ending Septem­ ber 30, 1995, and for other purposes, namely: the President promised. He promised to end welfare as we know it. Unfortu­ TITLE I-AGRICULTURAL PROGRAMS nately, his plan looks all too familiar. PRODUCTION, PROCESSING, AND MARKETING IS CONGRESS IRRESPONSIBLE? OFFICE OF THE SECRETARY There is no "there," there. YOU BE THE JUDGE OF THAT I yield the floor. (INCLUDING TRANSFERS OF FUNDS) Mr. HELMS. Mr. President, anyone For necessary expenses of the Office of the even remotely familiar with the U.S. Secretary of Agriculture, and not to exceed TRIBUTE TO ARCHIBALD FOWLER Constitution knows that no President $75,000 for employment under 5 U.S.C. 3109, BENNETT can spend a dime of Federal tax money $2,801,000: Provided, That not to exceed $11 ,000 Mr. HATCH. Mr. President, I would that has not first been authorized and of this amount, along with any unobligated appropriated by Congress-both the balances of representation funds in the For­ like to recognize the late Mr. Archi­ eign Agricultural Service shall be available bald Fowler Bennett for the contribu­ House of Representatives and the U.S. for official reception and representation ex­ tions he made to genealogical research. Senate. penses, not otherwise provided for, as deter­ Recently Mr. Bennett was the one dis­ So when you hear a politician or an mined by the Secretary: Provided further, tinguished genealogist recognized an­ editor or a commentator declare that That the Secretary may transfer salaries and nually and elected to the National Gen­ "Reagan ran up the Federal debt" or expenses funds in this Act sufficient to fi­ ealogy Hall of Fame. Mr. Bennett's that "Bush ran it up," bear in mind nance a total of not to exceed 35 staff years work toward genealogical education, that it was, and is, the Constitutional between agencies of the Department of Agri­ records preservation, and distribution duty and responsibility of Congress to culture to meet workload requirements. has had a worldwide effect on the cir­ control Federal spending. Congress has OFFICE OF BUDGET AND PROGRAM ANALYSIS culation and promotion of sound prin­ failed miserably in that task for about For necessary expenses of the Office of 50 years. Budget and Program Analysis, including em­ ciples of genealogical research. ployment pursuant to the second sentence of Mr. Bennett served as the head li­ The fiscal irresponsibility of Con­ section 706(a) of the Organic Act of 1944 (7 brarian at the family history library of gress has created a Federal debt which U.S.C. 2225), of which not to exceed $5,000 is the Genealogical Society of Utah stood at $4,624,151,825,603. 72 as of the for employment under 5 U.S.C. 3109, [GSUJ, for more than 30 years. He built close of business Friday, June 15. Aver­ $5, 795,000. the GSU's collection of 10,000 volumes aged out, every man, woman, and child CHIEF FINANCIAL OFFICER into over 70,000 volumes and 300,000 in America owes a share of this mas­ For necessary expenses of the Chief Finan­ reels of microfilm, the largest collec­ sive debt, and that per capita share is cial Officer to carry out the mandates of the tion in the country. $17 ,736.70. Chief Financial Officers Act of 1990, $580,000. July 18, 1994 CONGRESSIONAL RECORD-SENATE 16855

OFFICE OF THE ASSISTANT SECRETARY FOR tion 706(a) of the Organic Act of 1944 (7 U.S.C. of which $500,000 shall be available for inves­ ADMINISTRATION 2225), of which not to exceed $10,000 is for em­ . tigation, determination, and finding as to For necessary expenses of the Office of the ployment under 5 U.S.C. 3109: Provided, That the effect upon the production of food and Assistant Secretary for Administration to this appropriation shall be reimbursed from upon the agricultural economy of any pro­ carry out the programs funded in this Act, applicable appropriations in this Act for posed action affecting such subject matter $596,000. travel expenses incident to the holding of pending before the Administrator of the En­ hearings as required by 5 U.S.C. 551-558. vironmental Protection Agency for presen­ AGRICULTURE BUILDINGS AND FACILITIES AND tation, in the public interest, before said Ad­ RENT AL PAYMENTS OFFICE OF THE ASSISTANT SECRETARY FOR CONGRESSIONAL RELATIONS ministrator, other agencies or before the (INCLUDING TRANSFERS OF FUNDS) courts: Provided, That this appropriation For necessary expenses of the Office of the For payment of space rental and related shall be available for employment pursuant Assistant Secretary for Congressional Rela­ to the second sentence of section 706(a) of costs pursuant to Public Law 92-313 for pro­ tions to carry out the programs funded in the Organic Act of 1944 (7 U.S.C. 2225): Pro­ grams and activities of the Department of this Act, including programs involving inter­ vided further, That this appropriation shall Agriculture which are included in this Act, governmental affairs and liaison within the $106,571,000, of which $18,614,000 shall be re­ executive branch, $1,764,000. be available for analysis of statistics and re­ tained by the Department of Agriculture for lated facts on foreign production and full and the operation, maintenance, and repair of OFFICE OF COMMUNICATIONS complete information on methods used by Agriculture buildings: Provided, That in the For necessary expenses to carry on serv­ other countries to move farm commodities event an agency within the Department of ices relating to the coordination of programs in world trade on a competitive basis. Agriculture should require modification of involving public affairs, and for the dissemi­ NATIONAL AGRICULTURAL STATISTICS SERVICE space needs, the Secretary of Agriculture nation of agricultural information and the For necessary expenses of the National Ag­ may transfer a share of that agency's appro­ coordination of information, work and pro­ ricultural Statistics Service in conducting priation inade available by this Act to this grams authorized by Congress in the Depart­ statistical reporting and service work, in­ appropriation, or may transfer a share of ment, $8,198,000, including employment pur­ cluding crop and livestock estimates, statis­ this appropriation to that agency's appro­ suant to the second sentence of section 706(a) tical coordination and improvements, and priation, but such transfers shall not exceed of the Organic Act of 1944 (7 U.S.C. 2225), of marketing surveys, as authorized by the Ag­ 5 per centum of the funds made available for which not to exceed $10,000 shall be available ricultural Marketing Act of 1946 (7 U.S.C. space rental and related costs to or from this for employment under 5 U.S.C. 3109, and not 1621-1627) and other laws, $81,424,000: Pro­ account. In addition, for construction, re­ to exceed $2,000,000 may be used for farmers' vided, That this appropriation shall be avail­ pair, improvement, extension, alteration, bulletins. able for employment pursuant to the second and purchase of fixed equipment or facilities OFFICE OF THE INSPECTOR GENERAL sentence of section 706(a) of the Organic Act as necessary to carry out the programs of For necessary expenses of the Office of the of 1944 (7 U.S.C. 2225), and not to exceed the Department, where not otherwise pro­ Inspector General, including employment $40,000 shall be available for employment vided, $28,622,000, to remain available until under 5 U.S.C. 3109. expended; making a total appropriation of pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. $135,193,000. WORLD AGRICULTURAL OUTLOOK BOARD 2225), and the Inspector General Act of 1978, For necessary expenses of the World Agri­ ADVISORY COMMITTEES (USDA) as amended, [$63,918,000] $62,918,000, includ­ cultural Outlook Board to coordinate and re­ For necessary expenses for activities of ad­ ing such sums as may be necessary for con­ view all commodity and aggregate agricul­ visory committees of the Department of Ag­ tracting and other arrangements with public tural and food data used to develop outlook riculture which are included in this Act, agencies and private persons pursuant to sec­ and situation material within the Depart­ $928,000: Provided, That no other funds appro­ tion 6(a)(9) of the Inspector General Act of ment of Agriculture, as authorized by the priated to the Department of Agriculture in 1978, as amended, and including a sum not to Agricultural Marketing Act of 1946 (7 U.S.C. this Act shall be available to the Depart­ exceed $50,000 for employment under 5 U.S.C. 1622(g)), $2,498,000: Provided, That this appro­ ment of Agriculture for support of activities 3109; and including a sum not to exceed priation shall be available for employment of advisory committees. $95,000 for certain confidential operational pursuant to the second sentence of section HAZARDOUS WASTE MANAGEMENT expenses including the payment of inform­ 706(a) of the Organic Act of 1944 (7 U.S.C. ants, to be expended under the direction of 2225). (INCLUDING TRANSFERS OF FUNDS) the Inspector General pursuant to Public For necessary expenses of the Department OFFICE OF THE ASSISTANT SECRETARY FOR Law 95-452 and section 1337 of Public Law 97- SCIENCE AND EDUCATION of Agriculture, to comply with the require­ 98. ment of section 107(g) of the Comprehensive For necessary salaries and expenses of the Environmental Response, Compensation, and OFFICE OF THE GENERAL COUNSEL Office of the Assistant Secretary for Science Liability Act, as amended, 42 U.S.C. 9607(g), For necessary expenses of the Office of the and Education to administer the laws en­ and section 6001 of the Resource Conserva­ General Counsel, $25,992,000. acted by the Congress for the Agricultural tion and Recovery Act, as amended, 42 U.S.C. OFFICE OF THE ASSISTANT SECRETARY FOR Research Service, Cooperative State Re­ 6961, $15,700,000, to remain available until ex­ ECONOMICS search Service, Extension Service, and Na­ pended: Provided, That appropriations and For necessary expenses of the Office of the tional Agricultural Library, $520,000. funds available herein to the Department of Assistant Secretary for Economics to carry ALTERNATIVE AGRICULTURAL RESEARCH AND Agriculture for hazardous waste manage­ out the programs funded in this Act, $540,000. COMMERCIALIZATION REVOLVING FUND ment may be transferred to any agency of ECONOMIC RESEARCH SERVICE For necessary expenses to carry out the the Department for its use in meeting all re­ Alternative Agricultural Research and Com­ quirements pursuant to the above Acts on For necessary expenses of the Economic mercialization Act of 1990 (7 U.S.C. 5901- Research Service in conducting economic re­ Federal and non-Federal lands. 5908), ($4,000,000] $9,000,000 is appropriated to search and service relating to agricultural DEPARTMENTAL ADMINISTRATION the Alternative Agricultural Research and production, marketing, and distribution, as Commercialization Revolving Fund. (INCLUDING TRANSFERS OF FUNDS) authorized by the Agricultural Marketing For Finance and Management, $4,477,000, Act of 1946 (7 U.S.C. 1621-1627) and other AGRICULTURAL RESEARCH SERVICE for Personnel, Operations, Information Re­ laws, including economics of marketing; (INCLUDING TRANSFERS OF FUNDS) sources Management, Civil Rights Enforce­ analyses relating to farm prices, income and For necessary expenses to enable the Agri­ ment, Small and Disadvantaged Business population, and demand for farm products, cultural Research Service to perform agri­ Utilization, Administrative Law Judges and use of resources in agriculture,. adjustments, cultural research and demonstration relating Judicial Officer, and Emergency Programs, costs and returns in farming, and farm fi­ to production, utilization, marketing, and $21,710,000; making a total of $26,187,000 for nance; research relating to the economic and distribution (not otherwise provided for), Departmental Administration to provide for marketing aspects of farmer cooperatives; home economics or nutrition and consumer necessary expenses for management support and for analysis of supply and demand for use, and for acquisition of lands by donation, services to offices of the Department of Agri­ farm products in foreign countries and their exchange, or purchase at a nominal cost not culture and for general administration and effect on prospects for United States exports, to exceed $100, ($693,977,000] $698,787,000: Pro­ emergency preparedness of the Department progress in economic development and its re­ vided, That appropriations hereunder shall be of Agriculture, repairs and alterations, and lation to sales of farm products, assembly available for temporary employment pursu­ other miscellaneous supplies and expenses and analysis of agricultural trade statistics ant to the second sentence of section 706(a) not otherwise provided for and necessary for and analysis of international financial and of the Organic Act of 1944 (7 U.S.C. 2225), and the practical and efficient work of the De­ monetary programs and policies as they af­ not to exceed $115,000 shall be available for partment of Agriculture, including employ­ fect the competitive position of United employment under 5 U.S.C. 3109: Provided fur­ ment pursuant to the second sentence of sec- States farm products, ($54,306,000] $53,565,000; ther, That appropriations hereunder shall be 16856 CONGRESSIONAL RECORD-SENATE July 18, 1994 available for the operation and maintenance eluding Tuskegee University, for research and purchase of fixed equipment or facilities of aircraft and the purchase of not to exceed under section 1445 of the National Agricul­ and for grants to States and other eligible one for replacement only: Provided further, tural Research, Extension, and Teaching recipients for such purposes, as necessary to That appropriations hereunder shall be Policy Act of 1977 (7 U.S.C. 3222), as amended, carry out the agricultural research, exten­ available to conduct marketing research: including administration by the United sion, and teaching programs of the Depart­ Provided further, That appropriations here­ States Department of Agriculture, and pen­ ment of Agriculture, where not otherwise under shall be available pursuant to 7 U.S.C. alty mail costs of the 1890 land-grant col­ provided, [$34,148,000) $59,836,000, to remain 2250 for the construction, alteration, and re­ leges, including Tuskegee University; available until expended (7 U.S.C. 2209b). pair of buildings and improvements, but un­ [$44,969,000) $52,295,000 for contracts and less otherwise provided the cost of construct­ grants for agricultural research under the EXTENSION SERVICE ing any one building shall not exceed Act of August 4, 1965, as amended (7 U.S.C. Payments to States, the District of Colum­ $250,000, except for headhouses or green­ 450i(c)); $103,123,000 for competitive research bia, Puerto Rico, Guam, the Virgin Islands, houses which shall each be limited to grants under section 2(b) of the Act of Au­ Micronesia, Northern Marianas, and Amer­ $1,000,000, and except for ten buildings to be gust 4, 1965, as amended (7 U.S.C. 450i(b)), in­ ican Samoa: For payments for cooperative constructed or improved at a cost not to ex­ cluding administrative expenses; $5,551,000 agricultural extension work under the ceed $500,000 each, and the cost of altering for the support of animal health and disease Smith-Lever Act, as amended, to be distrib­ any one building during the fiscal year shall programs authorized by section 1433 of Pub­ uted under sections 3(b) and 3(c) of said Act, not exceed 10 per centum of the current re­ lic Law 95-113, including administrative ex­ and under section 208(c) of Public Law 93-471, placement value of the building or $250,000, penses; [$1,818,000) $650,000 for supplemental for retirement and employees' compensation whichever is greater: Provided further, That and alternative crops and products as au­ costs for extension agents and for costs of the limitations on alterations contained in thorized by the National Agricultural Re­ penalty mail for cooperative extension this Act shall not apply to modernization or search, Extension, and Teaching Policy Act agents and State extension directors, replacement of existing facilities at Belts­ of 1977, as amended (7 U.S.C. 3319d); [$400,000) $272,582,000; payments for the nutrition and ville, Maryland: Provided further, That the $500,000 for grants for research pursuant to family education program for low-income foregoing limitations shall not apply to re­ the Critical Agricultural Materials Act of areas under section 3(d) of the Act, placement of buildings needed to carry out 1984 (7 U.S.C. 178) and section 1472 of the $61,431,000; payments for the pest manage­ the Act of April 24, 1948 (21 U .S.C. 113a): Pro­ Food and Agriculture Act of 1977, as amend­ ment program under section 3(d) of the Act, vided further, That the foregoing limitations ed (7 U.S.C. 3318), to remain available until [$10,147,000) $10,947,000, of which up to $125,000 shall not apply to the purchase of land at expended; [$475,000 for rangeland research may be transferred to the Cooperative State Re­ Parlier, California, Beckley, West Virginia and grants as authorized by subtitle M of the Na­ search Service; payments for the farm safety Grand Forks, North Dakota: Provided further, tional Agricultural Research, Extension, and and rural health programs under section 3(d) That not to exceed $190,000 of this appropria­ Teaching Policy Act of 1977, as amended;] of the Act, $2,988,000; payments for the pes­ tion may be transferred to and merged with $3,500,000 for higher education graduate fel­ ticide impact assessment program under sec­ the appropriation for the Office of the Assist­ lowships grants under section 1417(b)(6) of tion 3(d) of the Act, $3,363,000; payments to ant Secretary for Science and Education for the National Agricultural Research, Exten­ upgrade 1890 land-grant college research and the scientific review of international issues sion, and Teaching Policy Act of 1977, as extension facilities as authorized by section involving agricultural chemicals and food amended (7 U.S.C. 3152(b)(6)), including ad­ 1447 of Public Law 95-113, as amended (7 additives: Provided further, That funds may ministrative expenses, to remain available U.S.C. 3222b), $7,901,000, to remain available be received from any State, other political until expended (7 U.S.C. 2209b); Sl,500,000 for until expended; payments for the rural devel­ subdivision, organization, or individual for higher education challenge grants under sec­ opment centers under section 3(d) of the Act, the purpose of establishing or operating any tion 1417(b)(l) of the National Agricultural $950,000; payments for a groundwater quality research facility or research project of the Research, Extension, and Teaching Policy program under section 3(d) of the Act, Agricultural Research Service, as authorized Act of 1977, as amended (7 U.S.C. 3152(b)(l)), $11,234,000; payments for the Agricultural by law. including administrative expenses; $1,000,000 Telecommunications Program, as authorized [None of the funds in the foregoing para­ for a higher education minority scholars pro­ by Public Law 101-624 (7 U.S.C. 5926), graph shall be available to carry out re­ gram under section 1417(b)(5) of the National $1,221,000; payments for youth-at-risk pro­ search related to the production, processing Agricultural Research, Extension, and grams under section 3(d) of the Act, or marketing of tobacco or tobacco prod­ Teaching Policy Act of 1977, as amended (7 $10,000,000; payments for a Nutrition Edu­ ucts.] U.S.C. 3152(b)(5)), including administrative cation Initiative under section 3(d) of the expenses, to remain available until expended BUILDINGS AND FACILITIES Act, $4,265,000; payments for a food safety (7 U.S.C. 2209b); $4,000,000 for aquaculture program under section 3(d) of the Act, For acquisition of land, construction, re­ grants as authorized by section 1475 of the pair, improvement, extension, alteration, $2,475,000; payments for carrying out the pro­ National Agricultural Research, Extension, visions of the Renewable Resources Exten­ and purchase of fixed equipment or facilities and Teaching Policy Act of 1977 (7 U.S.C. as necessary to carry out the agricultural re­ sion Act of 1978, $3,341,000; payments for In­ 3322), and other Acts; [$7,400,000) $8,825,000 dian reservation agents under section 3(d) of search programs of the Department of Agri­ for sustainable agriculture research and edu­ culture, where not otherwise provided, the Act, $1,750,000; payments for sustainable cation, as authorized by section 1621 of Pub­ agriculture programs under section 3(d) of [$23,400,000) $38,718,000, to remain available lic Law 101-624 (7 U.S.C. 5811), including ad­ the Act, [$2,963,000) $3,963,000; payments for until expended (7 U.S.C. 2209b): Provided, ministrative expenses; and [$19,954,000) That funds may be received from any State, rural health and safety education as authorized $19,019,000 for necessary expenses of Coopera­ by section 2390 of Public Law 101-624 (7 U.S.C. other political subdivision, organization, or tive State Research Service activities, in­ individual for the purpose of establishing 2661 note, 2662), $2,750,000; payments for ex­ cluding coordination and program leadership tension work by the colleges receiving the any research facility of the Agricultural Re­ for higher education work of the Depart­ search Service, as authorized by law. benefits of the second Morrill Act (7 U.S.C. ment, administration of payments to State 321-326, 328) and Tuskegee University, COOPERATIVE STATE RESEARCH SERVICE agricultural experiment stations, funds for $25,472,000; and for Federal administration For payments to agricultural experiment employment pursuant to the second sentence and coordination including administration of stations, for cooperative forestry and other of section 706(a) of the Organic Act of 1944 (7 the Smith-Lever Act, as amended, and the research, for facilities, and for other ex­ U.S.C. 2225), of which $9,917,000 shall be for a Act of September 29, 1977 (7 U.S.C. 341-349), penses, including $171,304,000 to carry into ef­ program of capacity building grants to col­ as amended, and section 1361(c) of the Act of fect the provisions of the Hatch Act ap­ leges eligible to receive funds under the Act October 3, 1980 (7 U.S.C. 301n.), and to coordi­ proved March 2, 1887, as amended, including of August 30, 1890 (7 U.S.C. 321-326 and 328), nate and provide program leadership for the administration by the United States Depart­ including Tuskegee University, to remain extension work of the Department and the ment of Agriculture, penalty mail costs of available until expended (7 U.S.C. 2209b), of several States and insular possessions, agricultural experiment stations under sec­ which not to exceed $100,000 shall be for em­ [$7,117,0001 $12,611,000; in all, [$429,200,000) tion 6 of the Hatch Act of 1887, as amended, ployment under 5 U.S.C. 3109; in all, $439,244,000: Provided, That funds hereby ap­ and payments under section 1361(c) of the [$413,960,000) $420,233,000. propriated pursuant to section 3(c) of the Act Act of October 3, 1980 (7 U.S.C. 301n.); [None of the funds in the foregoing para­ of June 26, 1953, and section 506 of the Act of $20,809,000 for grants for cooperative forestry graph shall be available to carry out re­ June 23, 1972, as amended, shall not be paid research under the Act approved October 10, search related to the production, processing to any State, the Distr~ct of Columbia, Puer­ 1962 (16 U.S.C. 582a-582-a7), as amended, in­ or marketing of tobacco or tobacco prod­ to Rico, Guam, or the Virgin Islands, Micro­ cluding administrative expenses, and pay­ ucts.] nesia, Northern Marianas, and American ments under section 1361(c) of the Act of Oc­ BUILDINGS AND FACILITIES Samoa prior to availability of an equal sum tober 3, 1980 (7 U.S.C. 301n.); $28,157,000 for For acquisition of land, construction, re­ from non-Federal sources for expenditure payments to the 1890 land-grant colleges, in- pair, improvement, extension, alteration, during the current fiscal year. July 18, 1994 CONGRESSIONAL RECORD-SENATE 16857 NATIONAL AGRICULTURAL LIBRARY to be available only in such emergencies for fiscal year for Inspection and Weighing Serv­ For necessary expenses of the National Ag­ the arrest and eradication of contagious or ices: Provided, That if grain export activities ricultural Library, ($17,845,000] $18,307,000: infectious disease or pests of animals, poul­ require additional supervision and oversight, Provided, That this appropriation shall be try, or plants, and for expenses in accordance or other uncontrollable factors occur, this available for employment pursuant to the with the Act of February 28, 1947, as amend­ limitation may be exceeded by up to 10 per second sentence of section 706(a) of the Or­ ed, and section 102 of the Act of September centum with notification to the Appropria­ ganic Act of 1944 (7 U.S.C. 2225), and not to 21, 1944, as amended, and any unexpended tions Committees. exceed S35,000 shall be available for employ­ balances of funds transferred for such emer­ AGRICULTURAL MARKETING SERVICE ment under 5 U.S.C. 3109: Provided further, gency purposes in the next preceding fiscal MARKETING SERVICES That not to exceed $900,000 shall be available year shall be merged with such transferred For necessary expenses to carry on serv­ pursuant to 7 U.S.C. 2250 for the alteration amounts: Provided further, That appropria­ ices related to consumer protection, agricul­ tions hereunder shall be available pursuant and repair of buildings and improvements: tural marketing and distribution, transpor­ Provided further, That $462 ,000 shall be avail­ to law (7 U.S.C. 2250) for the repair and alter­ ation of leased buildings and improvements, tation, agricultural cooperatives, and regu­ able for a grant pursuant to section 1472 of the latory programs, as authorized by law, and but unless otherwise provided the cost of al­ National Agricultural Research, Extension, and for administration and coordination of pay­ Teaching Policy Act of 1977 (7 U.S.C. 3818), in tering any one building during the fiscal year shall not exceed 10 per centum of the ments to States; including field employment addition to other funds available in this appro­ pursuant to section 706(a) of the Organic Act priation for grants under this section. current replacement value of the building. [In fiscal year 1995 the Agency is author­ of 1944 (7 U.S.C. 2225), and not to exceed OFFICE OF THE ASSISTANT SECRETARY FOR $90,000 for employment under 5 U.S.C. 3109, MARKETING AND INSPECTION SERVICES ized to collect fees for the total direct and indirect costs of technical assistance, goods, $55,728,000; including funds for the Wholesale For necessary salaries and expenses of the Market Development Program for the design Office of the Assistant Secretary for Market­ or services provided to States, other politi­ cal subdivisions, domestic and international and development of wholesale and farmer ing and Inspection Services to administer market facilities for the major metropolitan programs under the laws enacted by the Con­ organizations, foreign governments, or indi­ viduals, and such fees shall be credited to areas of the country: Provided, That this ap­ gress for the Animal and Plant Health In­ propriation shall be available pursuant to spection Service, Food Safety and Inspection this account, to remain available until ex­ pended, without further appropriation, for law (7 U.S.C. 2250) for the alteration and re­ Service, Federal Grain Inspection Service, pair of buildings and improvements, but the Agricultural Marketing Service, and Packers providing such assistance, goods, or serv­ ices.] cost of altering any one building during the and Stockyards Administration, $605,000. fiscal year shall not exceed 10 per centum of BUILDINGS AND FACILITIES ANIMAL AND PLANT HEALTH INSPECTION the current replacement value of the build­ SERVICE For plans, construction, repair, preventive ing. SALARIES AND EXPENSES maintenance, environmental support, im­ Fees may be collected for the cost of stand­ provement, extension, alteration, and pur­ (INCLUDING TRANSFERS OF FUNDS) ardization activities, as established by regu­ chase of fixed equipment or facilities, as au­ lation pursuant to law (31 U.S.C. 9701). For expenses, not otherwise provided for, thorized by 7 U.S.C. 2250, and acquisition of including those pursuant to the Act of Feb­ LIMITATION ON ADMINISTRATIVE EXPENSES land as authorized by 7 U.S.C. 428a, $6,973,000, Not to exceed $57,054,000 (from fees col­ ruary 28, 1947, as amended (21 U.S.C. 114b-c), to remain available until expended. necessary to prevent, control, and eradicate lected) shall be obligated during the current pests and plant and animal diseases; to carry FOOD SAFETY AND INSPECTION SERVICE fiscal year for administrative expenses: Pro­ out inspection, quarantine, and regulatory For necessary expenses to carry on serv­ vided, That if crop size is understated and/or activities; to discharge the authorities of the ices authorized by the Federal Meat Inspec­ other uncontrollable events occur, the agen­ Secretary of Agriculture under the Act of tion Act, as amended, and the Poultry Prod­ cy may exceed this limitation by up to 10 per March 2, 1931 (46 Stat. 1468; 7 U.S.C. 426-426b); ucts Inspection Act, as amended, centum with notification to the Appropria­ and to protect the environment, as author­ ($430,929,000] $533,929,000, and in addition, tions Committees. ized by law, ($438,651,000] $438,901,000, of Sl,000,000 may be credited to this account FUNDS FOR STRENGTHENING MARKETS, INCOME, which $96,660,000 shall be derived from user from fees collected for the cost of laboratory AND SUPPLY (SECTION 32) fees deposited in the Agricultural Quar­ accreditation as authorized by section 1017 of (INCLUDING TRANSFERS OF FUNDS) Public Law 102-237: Provided, That this ap­ antine Inspection User Fee Account, and of Funds available under section 32 of the Act which $4,938,000 shall be available for the propriation shall be available for field em­ ployment pursuant to section 706(a) of the of August 24, 1935 (7 U.S.C. 612c) shall be used control of outbreaks of insects, plant dis­ only for commodity program expenses as au­ eases, animal diseases and for control of pest Organic Act of 1944 (7 U.S.C. 2225), and not to exceed S75,000 shall be available for employ­ thorized therein, and other related operating animals and birds to the extent necessary to expenses, except for: (1) transfers to the De­ meet emergency conditions: Provided, That, ment under 5 U.S.C. 3109: Provided further, That this appropriation shall be available partment of Commerce as authorized by the if the demand for Agricultural Quarantine Fish and Wildlife Act of August 8, 1956; (2) Inspection (AQI) user fee financed services is pursuant to law (7 U.S.C. 2250) for the alter­ ation and repair of buildings and improve­ transfers otherwise provided in this Act; and greater than expected and/or other uncon­ (3) not more than Sl0,309,000 for formulation trollable events occur, the Agency may ex­ ments, but the cost of altering any one building during the fiscal year shall not ex­ and administration of Marketing Agree­ ceed the AQI User Fee limitation by up to 20 ments and Orders pursuant to the Agricul­ per centum, provided such funds are avail­ ceed 10 per centum of the current replace­ ment value of the building. tural Marketing Agreement Act of 1937, as able in the Agricultural Quarantine Inspec­ amended, and the Agricultural Act of 1961. tion User Fee Account, and with notification FEDERAL GRAIN INSPECTION SERVICE In fiscal year 1996, section 32 funds shall be to the Appropriations Committees: Provided SALARIES AND EXPENSES used to promote sunflower and cottonseed oil ex­ further, That no funds shall be used to formu­ For necessary expenses to carry out the ports to the full extent authorized by section late or administer a brucellosis eradication provisions of the United States Grain Stand­ 1541 of Public Law 101-624 (7 U.S.C. 1464 note), program for the current fiscal year that does ards Act, as amended, and the standardiza­ and such funds shall be used to facilitate addi­ not require minimum matching by the tion activities related to grain under the Ag­ tional sales of such oils in world markets. States of at least 40 per centum: Provided fur­ ricultural Marketing Act of 1946, as amend­ PAYMENTS TO STATES AND POSSESSIONS ther, That this appropriation shall be avail­ ed, including field employment pursuant to able for field employment pursuant to the For payments to departments of agri­ section 706(a) of the Organic Act of 1944 (7 culture, bureaus and departments of mar­ second sentence of section 706(a) of the Or­ U.S.C. 2225), and not to exceed $20,000 for em­ ganic Act of 1944 (7 U.S.C. 2225), and not to kets, and similar agencies for marketing ac­ ployment under 5 U.S.C. 3109, Sll,325,000: Pro­ tivities under section 204(b) of the Agricul­ exceed S40,000 shall be available for employ­ vided, That this appropriation shall be avail­ ment under 5 U.S.C. 3109: Provided further, tural Marketing Act of 1946 (7 U.S.C. 1623(b)), able pursuant to law (7 U.S.C. 2250) for the Sl,200,000. That this appropriation shall be available for alteration and repair of buildings and im­ the operation and maintenance of aircraft provements, but the cost of altering any one (PERISHABLE AGRICULTURAL COMMODITIES ACT and the purchase of not to exceed four, of building during the fiscal year shall not ex­ [Notwithstanding any other provision of which two shall be for replacement only: Pro­ ceed 10 per centum of the current replace­ law, during fiscal year 1995, the Secretary of vided further, That, in addition, in emer­ ment value of the building. Agriculture shall require persons filing com­ gencies which threaten any segment of the plaints under section 6(a) of the Perishable agricultural production industry of this INSPECTION AND WEIGHING SERVICES Agricultural Commodities Act, 1930 (7 U.S.C. country, the Secretary may transfer from LIMITATION ON INSPECTION AND WEIGHING 499f(a)), to include a filing fee of S60 per peti­ other appropriations or funds available to SERVICE EXPENSES tion. In the event of further action on such the agencies or corporations of the Depart­ Not to exceed $42,784,000 (from fees col­ a complaint during fiscal year 1995, the per­ ment such sums as he may deem necessary, lected) shall be obligated during the current son or persons making the complaint shall 16858 CONGRESSIONAL RECORD-SENATE July 18, 1994 submit a handling fee of $300, which shall be Conservation and Domestic Allotment Act, $5,000,000 for expenses to comply with the re­ reimbursed by the commission merchant, as amended, for engaging in any activities quirement of section 107(g) of the Com­ dealer, or broker involved whenever the Sec­ other than advisory and supervisory duties prehensive Environmental Re~ponse, Com­ retary issues a reparation order under sec­ and delegated program functions prescribed pensation, and Liability Act, as amended, 42 tion 7 of such Act on the complaint. Such in administrative regulations. U.S.C. 9607(g), and section 6001 of the Re­ fees shall be deposited in the Perishable Ag­ CORPORATIONS source Conservation and Recovery Act, as ricultural Commodities Act Fund.] The following corporations and agencies amended, 42 U.S.C. 6961: Provided, That ex­ PACKERS AND STOCKY ARDS ADMINISTRATION are hereby authorized to make expenditures, penses shall be for operations and mainte­ For necessary expenses for administration within the limits of funds and borrowing au­ nance costs only and that other hazardous of the Packers and Stockyards Act, as au­ thority available to each such corporation or waste management costs shall be paid for by thorized by law, and for certifying proce­ agency and in accord with law, and to make the USDA Hazardous Waste Management ap­ dures used to protect purchasers of farm contracts and commitments without regard propriation in this Act. products, including field employment pursu­ to fiscal year limitations as provided by sec­ DISASTER ASSISTANGE ant to section 706(a) of the Organic Act of tion 104 of the Government Corporation Con­ Funds of the Commodity Credit Corporation 1944 (7 U.S.C. 2225), and not to exceed $5,000 trol Act. as amended, as may be necessary in made available under Public Law 103-75 shall for employment under 5 U.S.C. 3109, carrying out the programs set forth in the remain available through March 31, 1995, for $11,989,000. budget for the current fiscal year for such payments to producers of orchard crops for corporation or agency, except as hereinafter FARM INCOME STABILIZATION losses incurred between January 1, 1994, and provided. March 31, 1994, if the losses are due to freezing OFFICE OF THE UNDER SECRETARY FOR INTER­ FEDERAL CROP INSURANCE CORPORATION conditions in 1994: Provided, That not more NATIONAL AFFAIRS AND COMMODITY PRO­ ADMINISTRATIVE AND OPERATING EXPENSES than $12,000,000 shall be available for such or­ GRAMS For administrative and operating expenses; chard crop losses: Provided further, That For necessary salaries and expenses of the as authorized by the Federal Crop Insurance amounts available under this Act shall be sub­ Office of the Under Secretary for Inter­ Act, as amended (7 U.S.C. 1516), [$62,796,000) ject to the terms and conditions of Public Law national Affairs and Commodity Programs $72,796,000: [Provided, That $12,000,000 be 101-(i24: Provided further, That the use of these to administer the laws enacted by Congress made available for the Animal and Plant funds for these purposes is designated by Con­ for the Agricultural Stabilization and Con­ Health Inspection Service:] Provided further, gress as an emergency requirement pursuant to servation Service, Foreign Agricultural That not to exceed $700 shall be available for section 251(b)(2)(D)(i) of the Balanced Budget Service, and the Commodity Credit Corpora­ official reception and representation ex­ and Emergency Deficit Control Act of 1985, as tion, $549,000. penses, as authorized by 7 U.S.C. 1506(i): Pro-. amended, and that such funds shall be available AGRICULTURAL STABILIZATION AND vided further, That none of the funds in this only to the extent that the President designates CONSERVATION SERVICE Act may be used to offer a Federal crop in­ such use as an emergency requirement pursuant SALARIES AND EXPENSES surance policy in counties on crops where a to such Act: Provided further, That the terms and conditions of section 521, paragraphs (a)(3) (INCLUDING TRANSFERS OF FUNDS) loss ratio, that has already been recalculated pursuant to law to reflect the premium rates and (4), paragraph (b)(3), subparagraph For necessary administrative expenses of issued by the Corporation for the 1994 crop (c)(2)(C), and subsections (d) and (e), as amend­ the Agricultural Stabilization and Conserva­ year, is in excess of 1.10 more than 70 percent ed in section 201 of S. 2095 (as reported by the tion Service, including expenses to formu­ of the years that a policy has been offered Committee on Agriculture, Nutrition, and For­ late and carry out programs authorized by since 1980: Provided further, That none of the estry on June 22, 1994) shall apply to all claims title III of the Agricultural Adjustment Act funds in this Act may be used to pay operat­ for assistance made under this paragraph. of 1938, as amended (7 U.S.C. 1301-1393); the ing and administrative costs that exceed 31 TITLE II-CONSERVATION PROGRAMS Agricultural Act of 1949, as amended (7 per centum of premium to insurers of poli­ U.S.C. 1421 et seq.); sections 7 to 15, 16(a), cies on which the Corporation provides rein­ OFFICE OF THE ASSISTANT SECRETARY FOR 16(f), and 17 of the Soil Conservation and Do­ surance, except to reimburse said insurers NATURAL RESOURCES AND ENVIRONMENT mestic Allotment Act, as amended (16 U.S.C. for excess loss adjustment expenses as pro­ For necessary salaries and expenses of the 590g-590o, 590p(a), 590p(f), and 590q); sections vided for in the Standard Reinsurance Agree­ Office of the Assistant Secretary for Natural 1001 to 1004, 1006 to 1008, and 1010 of the Agri­ ment issued by the Corporation: Provided fur­ Resources and Environment to administer cultural Act of 1970, as amended (16 U.S.C. ther, That the second proviso shall not apply the laws enacted by the Congress for the 1501 to 1504, 1506 to 1508, and 1510); the Water in any county affected if the Corporation has Forest Service and the Soil Conservation Bank Act, as amended (16 U.S.C. 1301-1311); implemented a nonstandard classification Service, $677,000. the Cooperative Forestry Assistance Act of system in such county for those individual SOIL CONSERVATION SERVICE 1978 (16 U.S.C. 2101); sections 202(c) and 205 of farms that have experienced excessive losses title II of the Colorado River Basin Salinity since 1980 under which the premium rates, CONSERVATION OPERATIONS Control Act of 1974, as amended (43 U.S.C. notwithstanding the provision of section For necessary expenses for carrying out 1592(c), 1595); sections 401, 402, and 404 to 406 508(d) of the Federal Crop Insurance Act, are the provisions of the Act of April 27, 1935 (16 of the Agricultural Credit Act of 1978 (16 increased over comparable rates effective for U.S.C. 590a-590f) including preparation of U.S.C. 2201 to 2205); the United States Ware­ the 1994 crop, or the insured yields are de­ conservation plans and establishment of house Act, as amended (7 U.S.C. 241-273); creased from comparable yields for the 1994 measures to conserve soil and water (includ­ title XII of the Food Security Act of 1985, as crop, or a combination of · both, by an ing farm irrigation and land drainage and amended (16 U.S.C. 3811 et seq.); and laws amount or amounts sufficient to ensure that such special measures for soil and water pertaining to the Commodity Credit Cor- . an estimated loss ratio will not exceed 1.1 for management as may be necessary to prevent poration, $717,958,000; of which $716,333,000 is the crop produced on such farms during the floods and the siltation of reservoirs and to hereby appropriated, and $1,036,000 is trans­ 1995 crop year. control agricultural related pollutants); op­ ferred from the Public Law 480 Program Ac­ FEDERAL CROP INSURANCE CORPORATION FUND eration of conservation plant materials cen­ count in this Act and $589,000 is transferred For payments as authorized by section ters; classification and mapping of soil; dis­ from the Commodity Credit Corporation 508(b) of the Federal Crop Insurance Act, as semination of information; acquisition of Program Account in this Act: Provided, That amended, $219,107,000, to remain available lands by donation, exchange, or purchase at other funds made available to the Agricul­ until expended (7 U.S.C. 2209b). a nominal cost not to exceed $100; purchase tural Stab111zation and Conservation Service and erection or alteration or improvement of for authorized activities may be advanced to COMMODITY CREDIT CORPORATION FUND permanent and temporary buildings; and op­ and merged with this account: Provided fur­ REIMBURSEMENT FOR NET REALIZED LOSSES eration and maintenance of aircraft, ther, That these funds shall be available for For fiscal year 1995, such sums as may be [$576,562,000) $582,141,000, to remain available employment pursuant to the second sentence necessary to reimburse the Commodity Cred­ until expended (7 U.S.C. 2209b); of which not of section 706(a) of the Organic Act of 1944 (7 it Corporation for net realized losses sus­ less than $5,756,000 is for snow survey and U.S.C. 2225), and not to exceed $100,000 shall tained, but not previously reimbursed (esti­ water forecasting and not less than $8,070,000 be available for employment under 5 U.S.C. mated to be $15,500,000,000 in the President's is for operation and establishment of the 3109: Provided further, That no part of the fiscal year 1995 Budget Request (H. Doc. 103- plant materials centers: Provided, That ex­ funds made available under this Act shall be 179)), but not to exceed $15,500,000,000, pursu­ cept for [$2,399,000) $3,899,000 for improve­ used: (1) to influence the vote in any referen­ ant to section 2 of the Act of August 17, 1961, ments of the plant materials centers, the dum; (2) to influence agricultural legislation, as amended (15 U.S.C. 713a-11). cost of any permanent building purchased, except as permitted in 18 U.S.C. 1913; or (3) OPERATIONS AND MAINTENANCE FOR erected, or as improved, exclusive of the cost for salaries or other expenses of members of HAZARDOUS WASTE MANAGEMENT of constructing a water supply or sanitary county and community committees estab­ For fiscal year 1995, the Commodity Credit system and connecting the same to any such lished pursuant to section 8(b) of the Soil Corporation shall not expend more than building and with the exception of buildings July 18, 1994 CONGRESSIONAL RECORD-SENATE 16859 acquired in conjunction with land being pur­ Endangered Species Act of 1973 (Public Law ed, as determined and recommended by the chased for other purposes, shall not exceed 93-205), as amended, including cooperative ef­ county committees, approved by the State $10,000, except for one building to be con­ forts as contemplated by that Act to relo­ committees and the Secretary, under pro­ structed at a cost not to exceed $100,000 and cate endangered or threatened species to grams provided for herein: Provided further, eight buildings to be constructed or im­ other suitable habitats as may be necessary That such assistance will not be used for car­ proved at a cost not to exceed $50,000 per to expedite project construction. rying out measures and practices that are building and except that alterations or im­ RESOURCE CONSERVATION AND DEVELOPMENT primarily production-oriented or that have provements to other existing permanent little or no conservation or pollution abate­ For necessary expenses in planning and ment benefits: Provided further, That not to buildings costing $5,000 or more may be made carrying out projects for resource conserva­ in any fiscal year in an amount not to exceed exceed 5 per centum of the allocation for the tion and development and for sound land use current year's program for any county may, $2,000 per building: Provided further, That pursuant to the provisions of section 32(e) of when buildings or other structures are erect­ on the recommendation of such county com­ title III of the Bankhead-Jones Farm Tenant mittee and approval of the State committee, ed on non-Federal land that the right to use Act, as amended (7 U.S.C. 1010-1011; 76 Stat. such land is obtained as provided in 7 U.S.C. be withheld and allotted to the Soil Con­ 607), the provisions of the Act of April 27, servation Service for services of its techni­ 2250a: Provided further, That no part of this 1935 (16 U.S.C. 590a-f), and the provisions of appropriation may be expended for soil and cians in formulating and carrying out the the Agriculture and Food Act of 1981 (16 Agricultural Conservation Program in the water conservation operations under the Act U.S.C. 3451-3461), $32,845,000, to remain avail­ of April 27, 1935 (16 U.S.C. 590a-590f) in dem­ participating counties, and shall not be uti­ able until expended (7 U.S.C. 2209): Provided, onstration projects: Provided further, That lized by the Soil Conservation Service for That this appropriation shall be available for any purpose other than technical and other this appropriation shall be available for em­ employment pursuant to the second sentence ployment pursuant to the second sentence of assistance in such counties, and in addition, of section 706(a) of the Organic Act of 1944 (7 on the recommendation of such county com­ section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $50,000 shall be U.S.C. 2225) and not to exceed $25,000 shall be mittee and approval of the State committee, available for employment under 5 U.S.C. not to exceed 1 per centum may be made available for employment under 5 U.S.C. 3109. 3109: Provided further, That qualified local en­ available to any other Federal, State, or gineers may be temporarily employed at per GREAT PLAINS CONSERVATION PROGRAM local public agency for the same purpose and diem rates to perform the technical planning For necessary expenses to carry into effect under the same conditions: Provided further, work of the Service. a program of conservation in the Great That for the current year's program $2,500,000 shall be available for technical as­ RIVER BASIN SURVEYS AND INVESTIGATIONS Plains area, pursuant to section 16(b) of the Soil Conservation and Domestic Allotment sistance in formulating and carrying out For necessary expenses to conduct re­ rural environmental practices: Provided fur­ search, investigation, and surveys of water­ Act, as added by the Act of August 7, 1956, as amended (16 U.S.C. 590p(b)), $11,672,000, to re­ ther, That not to exceed $15,000,000 of the sheds of rivers and other waterways, in ac­ amount appropriated shall be used for water cordance with section 6 of the Watershed main available until expended (16 U.S.C. 590p(b)(7)). quality payments and practices in the same Protection and Flood Prevention Act ap­ manner as permitted under the program for proved August 4, 1954, as amended (16 U.S.C. AGRICULTURAL STABILIZATION AND water quality authorized in chapter 2 of sub­ 1006-1009), $12,970,000: Provided, That this ap­ CONSERVATION SERVICE title D of title XII of the Food Security Act propriation shall be available for employ­ AGRICULTURAL CONSERVATION PROGRAM of 1985, as amended (16 U.S.C. 3838 et seq.). ment pursuant to the second sentence of sec­ (INCLUDING TRANSFERS OF FUNDS) [FORESTRY INCENTIVES PROGRAM tion 706(a) of the Organic Act of 1944 (7 U.S.C. For necessary expenses to carry into effect [For necessary expenses, not otherwise 2225), and not to exceed $60,000 shall be avail­ provided for, to carry out the program of for­ able for employment under 5 U.S.C. 3109. the program authorized in sections 7 to 15, 16(a), 16(f), and 17 of the Soil Conservation estry incentives, as authorized in the Coop­ WATERSHED PLANNING and Domestic Allotment Act approved Feb­ erative Forestry Assistance Act of 1978 (16 For necessary expenses for small water­ ruary 29, 1936, as amended and supplemented U.S.C. 2101), including technical assistance shed investigations and planning, in accord­ (16 U.S.C. 590g-590o, 590p(a), 590p(f), and 590q), and related expenses, $6,625,000, to remain ance with the Watershed Protection and and sections 1001-1004, 1006-1008, and 1010 of available until expended, as authorized by Flood Prevention Act, as amended (16 U.S.C. the Agricultural Act of 1970, as added by the that Act. 1001-1008), $10,546,000: Provided, That this ap­ Agrlcul ture and Consumer Protection Act of (COLORADO RIVER BASIN SALINITY CONTROL propriation shall be available for employ­ 1973 (16 U.S.C. 1501-1504, 1506-1508, and 1510), PROGRAM ment pursuant to the second sentence of sec­ and including not to exceed $15,000 for the [For necessary expenses for carrying out a tion 706(a) of the Organic Act of 1944 (7 U.S.C. preparation and display of exhibits, includ­ voluntary cooperative salinity control pro­ 2225), and not to exceed $50,000 shall be avail­ ing such displays at State, interstate, and gram pursuant to section 202(c) of title II of able for employment under 5 U.S.C. 3109. international fairs within the United States, the Colorado River Basin Salinity Control WATERSHED AND FLOOD PREVENTION $100,000,000, to remain available until ex­ Act, as amended (43 U.S.C. 1592(c)), to be OPERATIONS pended (16 U.S.C. 5900), for agreements, ex­ used to reduce salinity in the Colorado River For necessary expenses to carry out pre­ cluding administration but including tech­ and to enhance the supply and quality of ventive measures, including but not limited nical assistance and related expenses (16 water available for use in the United States to research, engineering operations, methods U.S.C. 5900), except that no participant in and the Republic of Mexico, $5,000,000 to re­ of cultivation, the growing of vegetation, re­ the Agricultural Conservation Program shall main available until expended (7 U.S.C. habilitation of existing works and changes in receive more than $3,500 per year, except 2209b), to be used for investigations and sur­ use of land, in accordance with the Water­ where the participants from two or more veys, for technical assistance in developing shed Protection and Flood Prevention Act farms or ranches join to carry out approved conservation practices and in the prepara­ approved August 4, 1954, as amended (16 practices designed to conserve or improve tion of salinity control plans, for the estab­ U.S.C. 1001-1005, 1007-1009), the pro,1 isions of the agricultural resources of the community, lishment of on-farm irrigation management the Act of April 27, 1935 (16 U.S.C. 590a-f), and or where a participant has a long-term systems, including related lateral improve­ in accordance with the provisions of laws re­ agreement, in which case the total payment ment measures, for making cost-share pay­ lating to the activities of the Department, shall not exceed the annual payment limita­ ments to agricultural landowners and opera­ ($65,000,000] $75,000,000, to remain available tion multiplied by the number of years of the tors, Indian tribes, irrigation districts and until expended (7 U.S.C. 2209b) [(of which agreement: Provided, That no portion of the associations, local governmental and non­ $10,000,000 shall be available for the water­ funds for the current year's program may be governmental entities, and other landowners sheds authorized under the Flood Control utilized to provide financial or technical as­ to aid them in carrying out approved con­ Act approved June 22, 1936 (33 U.S.C. 701 , 16 sistance for drainage on wetlands now des­ servation practices as determined and rec­ U.S.C. 1006a), as amended and supplemented): ignated as Wetlands Types 3 (Ill) through 20 ommended by the county ASC committees, Provided, That not to exceed 5 per centum of (XX) in United States Department of the In­ approved by the State ASC committees and the foregoing amounts shall be available for terior, Fish and Wildlife Circular 39, Wet­ the Secretary, and for associated costs of allocation to any one State]: Provided fur­ lands of the United States, 1956: Provided fur­ program planning, information· and edu­ ther, That this appropriation shall be avail­ ther, That such amounts shall be available cation, and program monitoring and evalua­ able for employment pursuant to the second for the purchase of seeds, fertilizers, lime, tion: Provided, That the Soil Conservation sentence of section 706{a) of the Organic Act trees, or any other conservation materials, Service shall provide technical assistance of 1944 (7 U.S.C. 2225), and not to exceed or any soil-terracing services, and making and the Agricultural Stabilization and Con­ $200,000 shall be available for employment grants thereof to agricultural producers to servation Service shall provide administra­ under 5 U.S.C. 3109: Provided further, That not aid them in carrying out approved farming tive services for the program, including but to exceed $1,000,000 of this appropriation ls . practices as authorized by the Soil Conserva­ not limited to, the negotiation and adminis­ available to carry out the purposes of the tion and Domestic Allotment Act, as amend- tration of agreements and the disbursement 16860 CONGRESSIONAL RECORD-SENATE July 18, 1994 of payments: Provided further, That such pro­ family rental housing in rural areas, In addition, for administrative expenses gram shall be coordinated with the regular $1,000,000, to be derived from the amount necessary to carry out the direct and guar­ Agricultural Conservation Program and with made available under this heading for the anteed loan programs, $243,766,000. research programs of other agencies.] cost of low-income section 502 loans and to RURAL DEVELOPMENT INSURANCE FUND CONSERVATION RESERVE PROGRAM become available for obligation only upon PROGRAM ACC(}UNT the enactment of authorizing legislation.] (INCLUDING TRANSFERS OF FUNDS) In addition, for administrative expenses For gross obligations for the principal For necessary expenses to carry out the necessary to carry out the direct and guar­ amount of direct and guaranteed loans as au­ conservation reserve program pursuant to anteed loan programs, $389,818,000. thorized by 7 U.S.C. 1928 and 86 Stat. 661-664, the Food Security Act of 1985 (16 U.S.C. 3831- as amended, to be available from funds in the RENTAL ASSISTANCE PROGRAM Rural Development Insurance Fund, as fol­ 3845), $1,743,274,000, to remain available until For rental assistance agreements entered expended, to be used for Commodity Credit lows: water and sewer facility loans, into or renewed pursuant to the authority ($834,193,000) $976,853,000; community facility Corporation expenditures for cost-share as­ under section 521(a)(2) or agreements entered sistance for the establishment of conserva­ loans, $300,000,000, of which $75,000,000 shall into in lieu of forgiveness or payments for el­ be for guaranteed loans; and guaranteed in­ tion practices provided for in approved con­ igible households as authorized by section servation reserve program contracts, and for 502(c)(5)(D) of the Housing Act of 1949, as dustrial development loans, $500,000,000: Pro­ annual rental payments provided in such amended, $523,008,000; and in addition such vided, That none of the funds made available contracts, and for technical assistance. sums as may be necessary, as authorized by in this Act may be used to make transfers Provided fur­ WETLANDS RESERVE PROGRAM section 521(c) of the Act, to liquidate debt in­ between the above limitations: ther, That of the amounts appropriated (INCLUDING TRANSFERS OF FUNDS) curred prior to fiscal year 1992 to carry out the Rental Assistance Program under sec­ above, ($17,000,000) $20,000,000 of direct water For necessary expenses to carry out the and sewer facility, $7,800,000 of direct com­ Wetlands Reserve Program pursuant to sub­ tion 521(a)(2) of the Act: Provided, That of this amount not more than $5,900,000 shall be munity facility, and $11,000,000 of guaranteed chapter C of subtitle D of title XII of the industrial development loan funds shall be Food Security Act of 1985 (16 U.S.C. 3837), available for debt forgiveness or payments for eligible households as authorized by sec­ available through July 30, 1995, for $93,200,000, to remain available until ex­ empowerment zones and enterprise commu­ pended: Provided, That the Secretary is au­ tion 502(c)(5)(D) of the Act, and not to exceed $10,000 per project for advances to nonprofit nities, as authorized by title XIII of the Om­ thorized to use the services, facilities, and nibus Budget Reconciliation Act of 1993. authorities of the Commodity Credit Cor­ organizations or public agencies to cover di­ rect costs (other than purchase price) in­ For the cost of direct and guaranteed poration for the purpose of carrying out the loans, including the cost of modifying loans, Wetlands Reserve Program. curred in purchasing projects pursuant to section 502(c)(5)(C) of the Act: Provided fur­ as defined in section 502 of the Congressional TITLE III-FARMERS HOME AND RURAL ther, That agreements entered into or re­ Budget Act of 1974, as follows: direct water DEVELOPMENT PROGRAMS newed during fiscal year 1995 shall be funded and sewer facility loans, ($115,786,000) OFFICE OF THE UNDER SECRETARY FOR SMALL for a five-year period, although the life of $136,466,000; direct community facility loans, COMMUNITY AND RURAL DEVELOPMENT any such agreement may be extended to ($21,723,000) $21,375,000; guaranteed commu­ For necessary salaries and expenses of the fully utilize amounts obligated. nity facility loans, $3,728,000; and guaranteed Pro­ Office of the Under Secretary for Small Com­ SELF-HELP HOUSING LAND DEVELOPMENT FUND industrial development loans, $4,750,000: vided, munity and Rural Development to admin­ PROGRAM ACCOUNT That of the amounts appropriated in ister programs under the laws enacted by the this paragraph, ($2,360,000) $2,794,000 for di­ For gross obligations for the principal rect water and sewer facility loans, ($753,000) Congress for the Farmers Home Administra­ amount of direct loans, as authorized by sec­ tion, Rural Electrification Administration, tion 523(b)(l)(B) of the Housing Act of 1949, as $741,000 for direct community facility, and Federal Crop Insurance Corporation, and amended (42 U.S.C. 1490c), $603,000. ($103,000) $105,000 for guaranteed industrial rural development activities of the Depart­ For the cost of direct loans, including the development loans shall be available through ment of Agriculture, $568,000. cost of modifying loans, as defined in section July 30, 1995, for empowerment zones and en­ terprise communities, as authorized by title RURAL DEVELOPMENT ADMINISTRATION 502 of the Congressional Budget Act of 1974, $11,000. XIII of the Omnibus Budget Reconciliation The Secretary may transfer funds from the In addition, for administrative expenses Act of 1993. Farmers Home Administration in this Act to necessary to carry out the direct loan pro­ In addition, for administrative expenses fund the Rural Development Administration, gram, $14,000. necessary to carry out the direct and guar­ as authorized by law. AGRICULTURAL CREDIT INSURANCE FUND anteed loan programs, $57,294,000. RURAL DEVELOPMENT ADMINISTRATION AND PROGRAM ACCOUNT RURAL DEVELOPMENT LOAN FUND PROGRAM FARMERS HOME ADMINISTRATION For gross obligations for the principal ACCOUNT RURAL HOUSING INSURANCE FUND PROGRAM amount of direct and guaranteed loans as au­ For the cost of direct loans, $46,000,000, as ACCOUNT thorized by 7 U.S.C. 1928-1929, to be available authorized by the Rural Development Loan For gross obligations for the principal from funds in the Agricultural Credit Insur­ Fund (42 U.S.C. 9812(a)): Provided, That such amount of direct and guaranteed loans as au­ ance Fund, as follows: farm ownership loans, costs, including the cost of modifying such thorized by title V of the Housing Act of $618,755,000, of which $540,674,000 shall be for loans, shall be as defined in section 502 of the 1949, as amended, to be available from funds guaranteed loans; operating loans, Congressional Budget Act of 1974: Provided in the Rural Housing Insurance Fund, as fol­ $2,465,000,000, of which $1,735,000,000 shall be further, That these funds are available to lows: ($2,323,339,0001 $2,400,000,000 for loans to for unsubsidized guaranteed loans and subsidize gross obligations for the principal section 502 borrowers, as determined by the $230,000,000 shall be for subsidized guaranteed amount of direct loans of $88,038,000: Provided Secretary, of which $1,000,000,000 shall be for loans; ($4,312,000 for water development, use, further, That through July 30, 1995, of these unsubsidized guaranteed loans; $35,000,000 for and conservation loans, of which $1,415,000 amounts, $5,519,000 shall be available for the section 504 housing repair loans; $15,915,000 shall be for guaranteed loans;] Indian tribe cost of direct loans, for empowerment zones for section 514 farm labor housing; land acquisition loans as authorized by 25 and enterprise communities, as authorized $220,000,000 for section 515 rental housing; U.S.C. 488, $1,000,000; and for emergency in­ by title XIII of the Omnibus Budget Rec­ and $632,000 for site loans: Provided, That up sured loans, $100,000,000 to meet the needs re­ onciliation Act of 1993, to subsidize gross ob­ to $48,650,000 of these funds shall be made sulting from natural disasters. ligations for the principal amount of direct available for section 502(g), Deferral Mort­ For the cost of direct and guaranteed loans, $10,565,000. gage Demonstration. loans, including the cost of modifying loans In addition, for administrative expenses For the cost of direct and guaranteed as defined in section 502 of the Congressional necessary to carry out the direct loan pro­ loans, including the cost of modifying loans, Budget Act of 1974, as follows: farm owner­ grams, $1,476,000. ship loans, $31,853,000, of which $20,870,000 as defined in section 502 of the Congressional AGRICULTURAL RESOURCE CONSERVATION Budget Act of 1974, as follows: low-income shall be for guaranteed loans; operating section 502 loans, ($268,105,000) $282,640,000 of loans, $95,340,000, of which $9,360,000 shall be DEMONSTRATION PROGRAM ACCOUNT which $17,200,000 shall be for unsubsidized for unsubsidized guaranteed loans and For gross obligations for the principal amount guaranteed loans; section 504 housing repair $29,425,000 shall be for subsidized guaranteed of guaranteed loans, as authorized under sec­ loans, $11,690,000; section 514 farm labor hous­ loans; ($411,000 for water development, use, tions 1465-1469 of Public Law 101-624 for the Ag­ ing, $7,911,000; and section 515 rental housing, and conservation loans, of which $31,000 shall ricultural Resource Conservation Demonstration $115,500,000. be for guaranteed loans;] Indian tribe land Program, $5,599,000. [In addition, for the cost (as defined in sec­ acquisition loans as authorized by 25 U.S.C. For the cost of guaranteed loans, including tion 502 of the Congressional Budget Act of 488, $123,000; and for emergency insured the cost of modifying loans, as defined in sec­ 1974) of guaranteed loans under a demonstra­ loans, ($26,060,000) $26,290,000 to meet the tion 502 of the Congressional Budget Act of 1974, tion program of loan guarantees for multi- needs resulting from natural disasters. $3,086,000. July 18, 1994 CONGRESSIONAL RECORD-SENATE 16861 STATE MEDIATION GRANTS by title XIII of the Omnibus Budget Rec­ of this appropriation may be used for em­ For grants pursuant to section 502(b) of the onciliation Act of 1993: Provided, That ployment under 5 U.S.C. 3109: Provided fur­ Agricultural Credit Act of 1987, as amended $500,000 shall be available for grants to quali­ ther, That not to exceed ($4,159,000) $4,368,000 (7 u.s.c. 5101-5106), ($2,000,000) $3 ,000,000. fied nonprofit organizations to provide tech­ of this appropriation shall be available for RURAL WATER AND WASTE DISPOSAL GRANTS nical assistance and training for rural com­ contracting with the National Rural Water munities needing improved passenger trans­ Association or other equally qualified na­ For grants pursuant to section 306(a)(2) of portation systems or facilities in order to tional organization for a circuit rider pro­ the Consolidated Farm and Rural Develop­ promote economic development. gram to provide technical assistance for ment Act, as amended (7 U.S.C. 1926), rural water systems: Provided further, That $500,000,000, to remain available until ex­ SOLID WASTE MANAGEMENT GRANTS For grants for pollution abatement and not to exceed $2,000,000 shall be available pended, pursuant to section 306(d) of the through cooperative agreements to assist in above Act of which $19,047,000 shall be avail­ control projects authorized under sectlon 310B(b) (7 U.S.C. 1932) of the Consolidated developing efforts to provide information able, through July 30, 1995, for empowerment and technical assistance to traditionally zones and enterprise communities, as au­ Farm and Rural Development Act, $2,995,000: Provided, That such assistance shall include under-represented communities to encourage thorized by title XIII of the Omnibus Budget business community development. Reconciliation Act of 1993, and of which regional technical assistance for improve­ $25,000,000 shall be available for water and ment of solid waste management. RURAL ELECTRIFICATION ADMINISTRATION waste disposal systems to benefit the OUTREACH FOR SOCIALLY DISADVANTAGED To carry into effect the provisions of the Colonias along the United States/Mexico bor­ FARMERS Rural Electrification Act of 1936, as amended der, including grants pursuant to section For grants and contracts pursuant to sec­ (7 U.S.C. 901-950(b)), as follows: 306C: Provided, That, with the exception of tion 2501 of the Food, Agriculture, Conserva­ RURAL ELECTRIFICATION AND TELEPHONE the foregoing $19,047,000, and the foregoing tion, and Trade Act of 1990 (7 U.S.C. 2279), LOANS PROGRAM ACCOUNT $25,000,000, these funds shall not be used for $2,995,000, to remain available until ex­ Insured loans pursuant to the authority of any purpose not specified in section 306(a) of pended. section 305 of the Rural Electrification Act the Consolidated Farm and Rural Develop­ RURAL TECHNOLOGY AND COOPERATIVE of 1936, as amended (7 U.S.C. 935), shall be ment Act. DEVELOPMENT GRANTS made as follows: 5 percent rural electrifica­ VERY LOW-INCOME HOUSING REPAIR GRANTS For grants pursuant to section 310(f) of the tion loans, $100,000,000; 5 percent rural tele­ For grants to the very low-income elderly Consolidated Farm and Rural Development phone loans, $75,000,000; cost of money rural for essential repairs to dwellings pursuant to Act, as amended (7 U.S.C. 1926(a)(ll)), telephone loans, $198,000,000; municipal rate section 504 of the Housing Act of 1949, as ($1,500,000) $2,000,000. rural electric . loans, $575,250,000; and loans amended, $24,900,000, to remain available (LOCAL TECHNICAL ASSISTANCE AND PLANNING made pursuant to section 306 of that Act, until expended. GRANTS $420,000,000, to remain available until ex­ RURAL HOUSING FOR DOMESTIC FARM LABOR pended. [For grants pursuant to section For the cost, as defined in section 502 of For financial assistance to eligible non­ 306(a)(ll)(A) of the Consolidated Farm and the Congressional Budget Act of 1974, includ­ profit organizations for housing for domestic Rural Development Act, as amended (7 ing the cost of modifying loans, of direct and farm labor, pursuant to section 516 of the U.S.C. 1926(a)(ll)), $2,500,000.J guaranteed loans authorized by the Rural Housing Act of 1949, as amended (42 · U.S.C. SALARIES AND EXPENSES Electrification Act of 1936, as amended (7 1486), Sl0,900,000, to remain available until (INCLUDING TRANSFERS OF FUNDS) U.S.C. 935), as follows: cost of direct loans, expended. For necessary expenses of the Farmers ($19,120,000) $14,807,000; cost of municipal MUTUAL AND SELF-HELP HOUSING Home Administration, not otherwise pro­ rate loans, $46,020,000; cost of money rural For grants and contracts pursuant to sec­ vided for, in administering the programs au­ telephone loans, $40,000; cost of loans guaran­ tion 523(b)(l)(A) of the Housing Act of 1949 (42 thorized by the Consolidated Farm and Rural teed pursuant to section 306, $450,000. U.S.C. 1490c), $12,650,000, to remain available Development Act (7 U.S.C. 1921-2000), as In addition, for administrative expenses until expended (7 U.S.C. 2209b). amended; title V of the Housing Act of 1949, necessary to carry out the direct and guar­ (SUPERVISORY AND TECHNICAL ASSISTANCE as amended (42 U.S.C. 1471-14900); the Rural anteed loan programs, $29,982,000. GRANTS Rehabilitation Corporation Trust Liquida­ RURAL TELEPHONE BANK PROGRAM ACCOUNT [For grants pursuant to sections 509(g)(6) tion Act, approved May 3, 1950 (40 U.S.C. 440-- The Rural Telephone Bank is hereby au­ and 525 of the Housing Act of 1949, $2,400,000, 444), for administering the loan program au­ thorized to make such expenditures, within to remain available until expended.] thorized by title III-A of the Economic Op­ the limits of funds available to such corpora­ portunity Act of 1964 (Public Law 88-452 ap­ RURAL COMMUNITY FIRE PROTECTION GRANTS tion in accord with law, and to make such proved August 20, 1964), as amended; the Co­ contracts and commitments without regard For grants pursuant to section 7 of the Co­ operative Marketing Act of July 2, 1926 (7 operative Forestry Assistance Act of 1978 to fiscal year limitations as provided by sec­ U.S.C. 451-457); and for activities relating to tion 104 of the Government Corporation Con­ (Public Law 95-313), $3,400,000 to fund up to 50 the marketing aspects of cooperatives, in­ per centum of the cost of organizing, train­ trol Act, as amended, as may be necessary in cluding economic research and analysis and carrying out its authorized programs for the ing, and equipping rural volunteer fire de­ the application of economic research find­ partments. current fiscal year. During fiscal year 1995 ings, as authorized by the Agricultural Mar­ and within the resources and authority COMPENSATION FOR CONSTRUCTION DEFECTS keting Act of 1946 (7 U.S.C. 1621-1627), and for available, gross obligations for the principal For compensation for construction defects activities with institutions or organizations amount of direct loans shall be Sl 75,000,000. as authorized by section 509(c) of the Hous­ throughout the world concerning the devel­ For the cost, as defined in section 502 of ing Act of 1949, as amended, $495,000, to re­ opment and operation of agricultural co­ the Congressional Budget Act of 1974, includ­ main available until expended. operatives (7 U.S.C. 3291), and such other pro­ ing the cost of modifying loans, of direct RURAL HOUSING PRESERVATION GRANTS grams which the Farmers Home Administra­ loans authorized by the Rural Electrification tion has the responsibility for administering, Act of 1936, as amended (7 U.S.C. 935), For grants for rural housing preservation $700,585,000; of which $37,811,000 is hereby ap­ as authorized by section 552 of the Housing ($2,728,000) $770,000. . propriated, $374,255,000 shall be derived by In addition, for administrative expenses and Urban-Rural Recovery Act of 1983 (Pub­ transfer from the Rural Housing Insurance lic Law 98-181), $22,000,000. necessary to carry out the loan programs, Fund Program Account in this Act and $8, 794,000. RURAL BUSINESS ENTERPRISE GRANTS merged with this account, $229,735,000 shall DISTANCE LEARNING AND MEDICAL LINK For grants authorized under section be derived by transfer from the Agriculture PROGRAMS 310B(c) and 310B(j) (7 U.S.C. 1932) of the Con­ Credit Insurance Fund Program Account in solidated Farm and Rural Development Act this Act and merged with this account, For necessary expenses to carry into effect to any qualified public or private nonprofit $57,294,000 shall be derived by transfer from the programs authorized in sections 2331-2335 organization, $47,500,000, [of which $2,000,000 the Rural Development Insurance Fund Pro­ of Public Law 101--624, S7 ,500,000, to remain shall be to assist in developing cooperative gram Account in this Act and merged with available until expended. efforts to provide information and technical this account, Sl,476,000 shall be derived by REA ECONOMIC DEVELOPMENT LOANS PROGRAM assistance to under-represented groups in transfer from the Rural Development Loan ACCOUNT traditionally agricultural or other natural Fund Program Account in this Act and For gross obligations for the principal resource dependent communities for encour­ merged with this account, and Sl4,000 shall amount of direct loans, as authorized under aging business development; and] of which be derived by transfer from the Self-Help section 313 of the Rural Electrification Act, $9,500,000 shall be available through July 30, Housing Land Development Fund Program for the purpose of promoting rural economic 1995, for assistance to empowerment zones Account in this Act and merged with this ac­ developme11t and job creation projects, and enterprise communities, as authorized count: Provided, That not to exceed $515,000 $12,865,000. 79---059 0-97 Vol. 140 (Pt. 12) 12 16862 CONGRESSIONAL RECORD-SENATE July 18, 1994 For the cost of direct loans, including the agencies by eligible schools, summer camps, foregoing amount shall be placed in reserve cost of modifying loans as defined in section institutions, and service institutions within for use only in such amounts and at such 502 of the Congressional Budget Act of 1974, sixty days following the month for which the times as may become necessary to carry out $3,077 ,000. reimbursement is claimed shall be eligible program operations: Provided further, That SALARIES AND EXPENSES for reimbursement from funds appropriated funds provided herein shall be expended in accordance with section 16 of the Food (INCLUDING TRANSFERS OF FUNDS) under this Act. States may receive program funds appropriated under this Act for meals, Stamp Act: Provided further, That this appro­ For administrative expenses to carry out supplements, and milk served during any priation shall be subject to any work reg­ the provisions of the Rural Electrification month only if the final program operations istration or work fare requirements as may Act of 1936, as amended (7 U.S.C. 901-950(b)), report for such month is submitted to the be required by law: Provided further, That and to administer the loan and loan guaran­ Department within ninety days following $1,143,000,000 of the foregoing amount shall tee programs for Community Antenna Tele­ that month. Exceptions to these claims or be available for Nutrition Assistance for vision facilities as authorized by the Consoli­ reports submission requirements may be Puerto Rico as authorized by 7 U.S.C. 2028, of dated Farm and Rural Development Act (7 made at the discretion of the Secretary:] which $12,472,000 shall be transferred to the U.S.C. 1921-1995), and for which commit­ Provided, [further.] That up to $3,849,000 shall Animal and Plant Health Inspection Service ments were made prior to fiscal year 1994, in­ be available for independent verification of for the Cattle Tick Eradication Project: Pro­ cluding not to exceed $7,000 for financial and· school food service claims: Provided further, vided further, That no funds provided herein credit reports, funds for employment pursu­ That [$1,706,000) $1,853,000 shall be available shall be available to provide food assistance ant to the second sentence of section 706(a) to provide financial and other assistance to in cash in any county not covered by a dem­ of the Organic Act of 1944 (7 U.S.C. 2225), and operate the Food Service Management Insti­ onstration project that received final ap­ not to exceed S103,000 for employment under tute. proval from the Secretary on or before July 5 U.S.C. 3109, $38,776,000; of which $29,982,000 l, 1994. SPECIAL MILK PROGRAM shall be derived by transfer from the Rural FOOD DONATIONS PROGRAMS FOR SELECTED Electrification and Telephone Loans Pro­ For necessary expenses to carry out the special milk program, as authorized by sec­ GROUPS gram Account in this Act and SB, 794,000 shall For necessary expenses to carry out sec­ be derived by transfer from the Rural Tele­ tion 3 of the Child Nutrition Act of 1966 (42 U.S.C. 1772), $18,089,000, to remain available tion 4(a) of the Agriculture and Consumer phone Bank Program Account in this Act: Protection Act of 1973 (7 U.S.C. 612c (note)), Provided, That none of the funds in this Act through September 30, 1996. [Only final reim­ bursement claims for milk submitted to section 4(b) of the Food Stamp Act (7 U.S.C. may be used to authorize the transfer of ad­ 2013(b)), section 601 of Public Law 96-597 (48 ditional funds to this account from the Rural State agencies within sixty days following the month for which the reimbursement is U.S.C. 1469d) and section 311 of the Older Telephone Bank. Americans Act of 1965, as amended (42 U.S.C. TITLE IV-DOMESTIC FOOD PROGRAMS claimed shall be eligible for reimbursement from funds appropriated under this Act. 3030a), [$183,154,000) $188,404 ,000, to remain OFFICE OF THE ASSISTANT SECRETARY FOR available through September 30, 1996. States may receive program funds appro­ For necessary expenses to carry out sec­ FOOD AND CONSUMER SERVICES priated under this Act only if the final pro­ For necessary salaries and expenses of the tion 110 of the Hunger Prevention Act of 1988, gram operations report for such month is $40,000,000. Office of the Assistant Secretary for Food submitted to the Department within ninety and Consumer Services to administer the days following that month. Exceptions to THE EMERGENCY FOOD ASSISTANCE PROGRAM laws enacted by the Congress for the Food these claims or reports submission require­ For necessary expenses to carry out the and Nutrition Service, $540,000. ments may be made at the discretion of the Emergency Food Assistance Act of 1983, as FOOD AND NUTRITION SERVICE Secretary.] amended, $40,000,000: Provided, That, in ac­ CHILD NUTRITION PROGRAMS SPECIAL SUPPLEMENTAL FOOD PROGRAM FOR cordance with section 202 of Public Law 98- if WOMEN, INF ANTS, AND CHILDREN (WIC) 92, these funds shall be available only the (INCLUDING TRANSFERS OF FUNDS) Secretary determines the existence of excess For necessary expenses to carry out the For necessary expenses to carry out the commodities. National School Lunch Act (42 U.S.C. 1751- special supplemental food program as au­ [For purchases of commodities to carry 1769b), and the applicable provisions other thorized by section 17 of the Child Nutrition out the Emergency Food Assistance Act of than sections 3 and 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786), $3,470,000,000, to 1983, as amended, $40,000,000.) Act of 1966 (42 U.S.C. 1773-1785, and 1788-1789); remain available through September 30, 1996, FOOD PROGRAM ADMINISTRATION of which up to [$5,500,000) $8,000,000 may be $7,451,351,000, to remain available through For necessary administrative expenses of used to carry out the [farmer's] farmers' September 30, 1996, of which $2,202,274,000 is the domestic food programs funded under market coupon program: Provided, That none hereby appropriated and $5,249,077,000 shall this Act, $106,465,000; of which $5,000,000 shall be derived by transfer from funds available of the funds in this Act shall be available to pay administrative expenses of WIC clinics be available only for simplifying procedures, under section 32 of the Act of August 24, 1935 reducing overhead costs, tightening regula­ (7 U.S.C. 612c): [Provided, That funds appro­ except those that have an announced policy of prohibiting smoking within the space used tions, improving food stamp coupon han­ priated for the purpose of section 7 of the dling, and assistance in the prevention, iden­ Child Nutrition Act of 1966 shall be allocated to carry out the program[: Provided further, That no State will incur an interest liability tification, and prosecution of fraud and other among the States but the distribution of violations of law: Provided, That this appro­ such funds to an individual State is contin­ to the Federal Government on WIC rebate funds provided that all interest earned by priation shall be available for employment gent upon that State's agreement to partici­ pursuant to the second sentence of section pate in studies and surveys of programs au­ the State on these funds is used for program purposes]. 706(a) of the Organic Act of 1944 (7 U.S.C. thorized under the National School Lunch 2225), and not to exceed $150,000 shall be Act and the Child Nutrition Act of 1966, when COMMODITY SUPPLEMENTAL FOOD PROGRAM available for employment under 5 U.S.C. such studies and surveys have been directed For necessary expenses to carry out the 3109. by the Congress and requested by the Sec­ commodity supplemental food program as TITLE V-FOREIGN ASSISTANCE AND retary of Agriculture: Provided further, That authorized by section 4(a) of the Agriculture RELATED PROGRAMS if the Secretary of Agriculture determines and Consumer Protection Act of 1973 (7 FOREIQN AGRICULTURAL SERVICE that a State's administration of any pro­ U.S.C. 612c (note)), including not less than gram under the National School Lunch Act $8,000,000 for the projects in Detroit, New Or­ (INCLUDING TRANSFERS OF FUNDS) or the Child Nutrition Act of 1966 (other than leans, and Des Moines, $94,500,000, to remain For necessary expenses of the Foreign Ag­ section 17), or the regulations issued pursu­ available through September 30, 1996: Pro­ ricultural Service, including carrying out ant to these Acts, is seriously deficient, and vided, That none of these funds shall be title VI of the Agricultural Act of 1954, as the State falls to correct the deficiency available to reimburse the Commodity Cred­ amended (7 U.S.C. 1761-1768), market develop­ within a specified period of time, the Sec­ it Corporation for commodities donated to ment activities abroad, and for enabling the retary may withhold from the State some or the program. Secretary to coordinate and integrate activi­ all of the funds allocated to the State under ties of the Department in connection with section 7 of the Child Nutrition Act of 1966 FOOD STAMP PROGRAM foreign agricultural work, including not to and under section 13(k)(l) of the National (INCLUDING TRANSFERS OF FUNDS) exceed $128,000 for representation allowances School Lunch Act; upon a subsequent deter­ For necessary expenses to carry out the and for expenses pursuant to section 8 of the mination by the Secretary that the pro­ Food Stamp Act (7 U.S.C. 2011-2029), Act approved August 3, 1956 (7 U.S.C. 1766), grams are operated in an acceptable manner [$28,817,457,000) $28,830,710,000: Provided, That $118,011,000, of which $4,914,000 may be trans­ some or all of the funds withheld may be al­ funds provided herein shall remain available ferred from Commodity Credit Corporation located: Provided further, That only final re­ through September 30, 1995, in accordance funds, S2, 792,000 may be transferred from the imbursement claims for service of meals, with section 18(a) of the Food Stamp Act: Commodity Credit Corporation Program Ac­ supplements, and milk submitted to State Provided further, That $2,500,000,000 of the count in this Act, and $1,425,000 may be July 18, 1994 CONGRESSIONAL RECORD-SENATE 16863 transferred from the Public Law 480 Program program, and the Food for Progress Act of In addition, of the foregoing amount such Account in this Act: Provided, That in addi­ 1985, as amended, to the extent funds appro­ sums as may be necessary may be used for tion, funds available to the Department of priated for Public Law 480 are utilized, the inspection of mammography facilities, Agriculture shall be available to assist an $2,461,000. notwithstanding section 354(r) of the Public international organization in meeting the SHORT-TERM EXPORT CREDIT Health Service Act. Fees collected under costs, including salaries, fringe benefits and The Commodity Credit Corporation shall said Act shall be credited to the foregoing other associated costs, related to the em­ make available not less than $5,000,000,000 in account and shall remain available until ex­ ployment by the organization of Federal per­ credit guarantees under ·its export credit pended. sonnel that may transfer to the organization guarantee program for short-term credit ex­ In addition, $150,800,000, to be credited to this under the provisions of 5 U.S.C. 3581-3584, or tended to finance the export sales of United appropriation, from fees established and col­ of other well-qualified United States citi­ States agricultural commodities and the lected to cover the costs of regulation of prod­ zens, for the performance of activities that products thereof, as authorized by section ucts under the jurisdiction of the Food and contribute to increased understanding of 211(b)(l) of the Agricultural Trade Act of 1978 Drug Administration, to remain available until international agricultural issues, with trans­ (7 5641). expended. fer of funds for this purpose from one appro­ u.s.c. INTERMEDIATE EXPORT CREDIT None of the funds in this Act may be used to priation to another or to a single account enforce the permitted levels and conditions of authorized, such funds remaining available The Commodity Credit Corporation shall use for the nutrient selenium, as revised in the until expended: Provided further, That the make available not less than $500,000,000 in Federal Register for September 13, 1993. The per­ Service may utilize advances of funds, or re­ credit guarantees under its export guarantee mitted levels and conditions of use for the nutri­ imburse this appropriation for expenditures program for intermediate-term credit ex­ ent selenium are deemed to be the levels and made on behalf of Federal agencies, public tended to finance the export sales of United conditions set forth in section 573.920 of title 21, and private organization~ and institutions States agricultural commodities and the Code of Federal Regulations, prior to September under agreements execut~d pursuant to the products thereof, as authorized by section 13, 1993, unless and until the Commissioner de­ agricultural food production assistance pro­ 211(b)(2) of the Agricultural Trade Act of 1978 termines that the use of selenium at those levels grams (7 U.S.C. 1736) and the foreign assist­ (7 u.s.c. 5641). results in a direct and significant adverse effect ance programs of the International Develop­ EMERGING DEMOCRACIES EXPORT CREDIT on the quality of the environment. ment Cooperation Administration (22 U.S.C. The Commodity Credit Corporation shall [In addition to amounts provided, proceeds 2392). make available not less than $200,000,000 in from the sale of any animals that are surplus None of the funds in the foregoing para­ credit guarantees under its Export Guaran­ to FDA's needs shall be retained by the Food graph shall be available to promote the sale tee Program for credit expended to finance and Drug Administration and credited to the or export of tobacco or tobacco products. the export sales of United States agricul­ salaries and expenses appropriation for 1995.) SCIENTIFIC ACTIVITIES OVERSEAS (FOREIGN tural commodities and the products thereof BUILDINGS AND FACILITIES CURRENCY PROGRAM) to emerging democracies, as authorized by LIMITATION ON ADMINISTRATIVE EXPENSES section 1542 of Public Law 101-624 (7 U.S.C. For plans, construction, repair, improve­ 5622 note). ment, extension, alteration, and purchase of For payments in foreign currencies owed fixed equipment or facilities of or used by to or owned by the United States for re­ COMMODITY CREDIT CORPORATION EXPORT search activities authorized by section the Food and Drug Administration, where LOANS PROGRAM ACCOUNT not otherwise provided, ($18,150,000) 104(c)(7) of the Agricultural Trade Develop­ (INCLUDING TRANSFERS OF FUNDS) ment and Assistance Act of 1954, as amended $8,350,000, to remain available until expended For administrative expenses to carry out (7 U.S.C. 2209b): Provided, That the Food and (7 U.S.C. 1704(c)(7)), not to exceed $1,062,000: CCC's Export Guarantee Program, GSM 102 Provided, That not to exceed $25,000 of these Drug Administration may accept donated and GSM 103, $3,381,000; to cover common land in Montgomery and/or Prince George's funds shall be available for payments in for­ overhead expenses as permitted by section 11 eign currencies for expenses of employment Counties, Maryland. of the Commodity Credit Corporation Char­ RENTAL PAYMENTS (FDA) pursuant to the second sentence of section ter Act and in conformity with the Federal 706(a) of the Organic Act of 1944 (7 U.S.C. Credit Reform Act of 1990; of which not to (INCLUDING TRANSFERS OF FUNDS) 2225), as amended by 5 U.S.C. 3109. exceed $2,792,000 may be transferred to and For payment of space rental and related PUBLIC LAW 480 PROGRAM ACCOUNTS merged with the appropriation for the sala­ costs pursuant to Public Law 92-313 for pro­ (INCLUDING TRANSFERS OF FUNDS) ries and expenses of the Foreign Agricultural grams and activities of the Food and Drug For expenses during the current fiscal Service, and of which not to exceed $589,000 Administration which are included in this year, not otherwise recoverable, and unre­ may be transferred to and merged with the Act, $46,294,000: Provided, That in the event covered prior years' costs, including interest appropriation for the salaries and expenses the Food and Drug Administration should re­ thereon, under the Agricultural Trade Devel­ ·of the Agricultural Stabilization and Con­ quire modification of space needs, a share of opment and Assistance Act of 1954, as servation Service. the salaries and expenses appropriation may amended (7 U.S.C. 1691, 1701-1715, 1721-1726, TITLE VI-RELATED AGENCIES AND FOOD be transferred to this appropriation, or a 1727-1727f, 1731-1736g), as follows: (1) AND DRUG ADMINISTRATION share of t;his appropriation may be trans­ $291,342,000 for Public Law 480 title I credit, DEPARTMENT OF HEALTH AND HUMAN ferred to the salaries and expenses appropria­ including Food for Progress programs; (2) SERVICES tion, but such transfers shall not exceed 5 $29,000,000 is hereby appropriated for ocean per centum of the funds made available for freight differential costs for the shipment of FOOD AND DRUG ADMINISTRATION rental payments (FDA) to or from this ac­ agricultural commodities pursuant to title I SALARIES AND EXPENSES count. of said Act and the Food for Progress Act of For necessary expenses of the Food and DEPARTMENT OF THE TREASURY 1985, as amended; (3) $821,100,000 is hereby ap­ Drug Administration, including hire and pur­ propriated for commodities supplied in con­ chase of passenger motor vehicles; for rental FINANCIAL MANAGEMENT SERVICE nection with dispositions abroad pursuant to of special purpose space in the District of Co­ PAYMENTS TO THE FARM CREDIT SYSTEM title II of said Act; and (4) $157,442,000 is lumbia or elsewhere; and for miscellaneous FINANCIAL ASSISTANCE CORPORATION hereby appropriated for commodities sup­ and emergency expenses of enforcement ac­ For necessary payments to the Farm Cred­ plied in connection with dispositions abroad tivities, authorized and approved by the Sec­ it System Financial Assistance Corporation pursuant to title III of said Act: Provided, retary and to be accounted for solely on the by the Secretary of the Treasury, as author­ That not to exceed 15 per centum of the Secretary's certificate, not to exceed $25,000; ized by section 6.28(c) of the Farm Credit Act funds made available to carry out any title ($914,394,000) $767,156,000, of which not to ex­ of 1971, as amended, for reimbursement of in­ of said Act may be used to carry out any ceed $79,423,000 in fees pursuant to section 736 terest expenses incurred by the Financial As­ other title of said Act: Provided further, That of the Federal Food, Drug, and Cosmetic Act sistance Corporation on obligations issued such sums shall remain available until ex­ may be credited to this appropriation and re­ through 1994, as authorized, $57,026,000. pended (7 U.S.C. 2209b). main available until expended: Provided, INDEPENDENT AGENCIES For the cost, as defined in section 502 of That fees derived from applications received the Congressional Budget Act of 1974, of di­ during fiscal year 1995 shall be subject to the COMMODITY FUTURES TRADING COMMISSION rect credit agreements as authorized by the fiscal year 1995 limitation[: Provided further, For necessary expenses to carry out the Agricultural Trade Development and Assist­ That none of these funds shall be used to de­ provisions of the Commodity Exchange Act, ance Act of 1954, as amended, and the Food velop, establish, or operate any program of as amended (7 U.S.C. 1 et seq.), including the for Progress Act of 1985, as amended, includ­ user fees authorized by 31 U.S.C. 9701.) purchase and hire of passenger motor vehi­ ing the cost of modifying credit agreements [None of the funds in this Act may be used cles; the rental of space (to include multiple under said Act, $236,162,000. to enforce rules or regulations for a selenium year leases) itl the District of Columbia and In addition, for administrative expenses to supplement level in animal feeds below 0.3 elsewhere; and not to exceed $25,000 for em­ carry out the Public Law 480 title I credit parts per million.] ployment under 5 U.S.C. 3109; ($47,480,000) 16864 CONGRESSIONAL RECORD-SENATE July 18, 1994 $50,809,000, including not to exceed Sl,000 for SEC. 707. Not to exceed $50,000 of the appro­ tobacco or if the aggregate amount of funds official reception and representation ex­ priations available to the Department of Ag­ and/or commodities under such program ex­ penses: Provided, That the Commission is au­ riculture in this Act shall be available to ceeds [S90,000,000l zero dollars. thorized to charge fees to cover the cost of provide appropriate orientation and lan­ SEC. 716. None of the funds appropriated or Commission-sponsored educational events guage training pursuant to Public Law 94- otherwise made available by this Act shall and symposia, and notwithstanding 31 U.S.C. 449. be used to enroll in excess of 100,000 acres in 3302, said fees shall be credited to this ac­ SEC. 708. No funds appropriated by this Act the fiscal year 1995 Wetlands Reserve Pro­ count, to be available without further appro­ may be used to pay negotiated indirect cost gram, as authorized by 16 U.S.C. 3837. priation. rates on cooperative agreements or similar SEC. 717. None of the funds appropriated or FARM CREDIT ADMINISTRATION arrangements between the United States De­ otherwise made available by this Act shall be used to enroll additional acres in the Con­ LIMITATION ON ADMINISTRATIVE EXPENSES partment of Agriculture and nonprofit insti­ tutions in excess of 10 per centum of the servation Reserve Program authorized by 16 Not to exceed $40,420,000 (from assessments total direct cost of the agreement when the u.s.c. 3831-3845. collected from farm credit institutions and purpose of such cooperative arrangements is SEC. 718. Such sums as may be necessary from the Federal Agricultural Mortgage Cor­ to carry out programs of mutual interest be­ for fiscal year 1995 pay raises for programs poration) shall be obligated during the cur­ tween the two parties. This does not pre­ funded by this Act shall be absorbed within rent fiscal year for administrative expenses clude appropriate payment of indirect costs the levels appropriated in this Act. as authorized under 12 U.S.C. 2249. on grants and contracts with such institu­ (SEC. 719. (a) COMPLIANCE WITH BUY AMER­ TITLE VII-GENERAL PROVISIONS tions when such indirect costs are computed ICAN ACT.-None of the funds made available on a similar basis for all agencies for which in this Act may be expended by an entity un­ SEC. 701. Within the unit limit of cost fixed less the entity agrees that in expending the by law, appropriations and authorizations appropriations are provided in this Act. SEC. 709. Notwithstanding any other provi­ funds the entity will comply with sections 2 made for the Department of Agriculture for through 4 of the ct of March 3, 1933 (41 the fiscal year 1995 under this Act shall be sion of . this Act, commodities acquired by the Department in connection with Commod­ U.S.C. 10a-10c; popularly known as the "Buy available for the purchase, in addition to American Act"). those specifically provided for, of not to ex­ ity Credit Corporation and section 32 price ((b) SENSE OF CONGRESS; REQUIREMENT RE­ support operations may be used, as author­ ceed 706 passenger motor vehicles, of which GARDING NOTICE.- 705 shall be for replacement only, and for the ized by law (15 U.S.C. 714c and 7 U.S.C. 612c), ((1) PURCHASE OF AMERICAN-MADE EQUIP­ hire of such vehicles. to provide commodities to individuals in MENT AND PRODUCTS.-In the case of any SEC. 702. Funds in this Act available to the cases of hardship as determined by the Sec­ equipment or product that may be author­ Department of Agriculture shall be available retary of Agriculture. ized to be purchased with financial assist­ for uniforms or allowances therefor as au­ SEC. 710. None of the funds in this Act shall ance provided using funds made available in be available to reimburse the General Serv­ thorized by law (5 U.S.C. 5901-5902). this Act, it is the sense of the Congress that SEC. 703. Not less than Sl,500,000 of the ap­ ices Administration for payment of space entities receiving the assistance should, in propriations of the Department of Agri­ rental and related costs in excess of the expending the assistance, purchase only culture in this Act for research and service amounts specified in this Act; nor shall this American-made equipment and products. work authorized by the Acts of August 14, or any other provision of law require a re­ ((2) NOTICE TO RECIPIENTS OF ASSISTANCE.­ 1946, and July 28, 1954, and (7 U.S.C. 427, 1621- duction in the level of rental space or serv­ In providing financial assistance using funds ices below that of fiscal year 1994 or prohibit 1629), and by chapter 63 of title 31, United made available in this Act, the head of each States Code, shall be available for contract­ an expansion of rental space or services with Federal agency shall provide to each recipi­ ing in accordance with said Acts and chap­ the use of funds otherwise appropriated in ent of the assistance a notice describing the ter. this Act. Further, no agency of the Depart­ statement made in paragraph (1) by the Con­ SEC. 704. The cumulative total of transfers ment of Agriculture, from funds otherwise gress. to the Working Capital Fund for the purpose available, shall reimburse the General Serv­ [(c) PROHIBITION OF CONTRACTS WITH PER­ of accumulating growth capital for data ices Administration for payment of space SONS FALSELY LABELING PRODUCTS AS MADE services and National Finance Center oper­ rental and related costs provided to such IN AMERICA.-If it has been finally deter­ ations shall not exceed $2,000,000: Provided, agency at a percentage rate which is greater mined by a court or Federal agency that any That no funds in this Act appropriated to an than is available in the case of funds appro­ person intentionally affixed a label bearing a agency of the Department shall be trans­ priated in this Act. "Made in America" inscription, or any in­ ferred to the Working Capital Fund without SEC. 711. None of the funds in this Act shall scription with the same meaning, to any the approval of the agency administrator. be available to restrict the authority of the product sold in or shipped to the United Commodity Credit Corporation to lease SEC. 705. New obligational authority pro­ States that is not mad~ in the United States, vided for the following appropriation items space for its own use or to lease space on be­ the person shall be ineligible to receive any in this Act shall remain available until ex­ half of other agencies of the Department of contract or subcontract made with funds pended (7 U.S.C. 2209b): Animal and Plant Agriculture when such space will be jointly made available in this Act, pursuant to the Health Inspection Service, the contingency occupied. debarment, suspension, and ineligibility pro­ fund to meet emergency conditions, and In­ SEC. 712. None of the funds in this Act shall cedures described in sections 9.400 through tegrated Systems Acquisition Project; Agri­ be available to pay indirect costs on research 9.409 of title 48, Code of Federal Regulations. cultural Stabilization and Conservation grants awarded competitively by the Cooper­ [SEC. 720. Notwithstanding the Federal Service, salaries and expenses funds made ative State Research Service that exceed 14 Grant and Cooperative Agreement Act, mar­ available to county committees; Foreign Ag­ per centum of total Federal funds provided keting services of the Agricultural Market­ ricultural Service, Middle-Income Country under each award. ing Service may use cooperative agreements Training Program; higher education grad­ SEC. 713. Notwithstanding any other provi­ to reflect a relationship between Agricul­ uate fellowships grants under section sions of this Act, all loan levels provided in tural Marketing Service and a State or Co­ 1417(b)(6) of the National Agricultural Re­ this Act shall be considered estimates, not operator to carry out agricultural marketing search, Extension, and Teaching Policy Act limitations. programs.] of 1977, as amended (7 U.S.C. 3152(b)(6)); and SEC. 714. Appropriations to the Department SEC. 721. None of the funds appropriated or capacity building grants to colleges eligible of Agriculture for the cost of direct and otherwise made available by this Act shall to receive funds under the Act of August 30, guaranteed loans made available in fiscal be used to pay the salaries of personnel who 1890, including Tuskegee University. year 1995 shall remain available until ex­ carry out an export enhancement program New obligational authority for the Boll pended to cover obligations made in fiscal (estimated to be Sl,000,000,000 in the Presi­ Weevil Program; up to 10 per centum of the year 1995 for the following accounts: Rural dent's fiscal year 1995 Budget Request (H. Screwworm Program of the Animal and Development Insurance Fund Program Ac­ Doc. 103-179)) if the aggregate amount of Plant Health Inspection Service; funds ap­ count; Rural Development Loan Fund Pro­ funds and/or commodities under such pro­ propriated for Rental Payments; and higher gram Account; the Rural Telephone Bank gram exceeds $850,000,000. education minority scholars programs under Program Account; the Rural Electrification [SEC. 722. None of the funds appropriated section 1417(b)(5) of the National Agricul­ and Telephone Loans Program Account; and or otherwise made available by this Act shall tural Research, Extension, and Teaching the REA Economic Development Loans Pro­ be used to pay the salaries of personnel who Policy Act of 1977, as amended (7 U.S.C. gram Account. carry out a sunflower and cottonseed oil ex­ 3152(b)(5)) shall remain available until ex­ SEC. 715. None of the funds appropriated or port program authorized by section 1541 of pended. otherwise made available by this Act shall Public Law 101-624 if the aggregate amount SEC. 706. No part of any appropriation con­ be used to pay the salaries of personnel who of funds and/or commodities under such pro­ tained in this Act shall remain available for carry out a Market Promotion Program pur­ gram exceeds S27 ,000,000.] obligation beyond the current fiscal year un­ suant to section 203 (7 U.S.C. 5623) of the Ag­ SEC. 723. (a) None of the funds appropriated less expressly so provided herein. ricultural Trade Act of 1978, with respect to or otherwise made available by this Act shall July 18, 1994 CONGRESSIONAL RECORD-SENATE 16865 be used by the Secretary of Agriculture to [SEC. 735. None of the funds made available Food and Drug Administration, Salaries and provide a total amount of payments to a per­ in this Act for Rural Housing Site Loans Expenses. son to support the price of honey under sec­ (sections 523 and 524) may be used in viola­ This Act may be cited as the "Agricul­ tion 207 of the Agricultural Act of 1949 (7 tion of 7 CFR 1944.9(c) or of any applicable tural, Rural Development, Food and Drug U.S.C. 1446h) and section 405A of such Act (7 Federal law or regulation of the United Administration, and Related Agencies Ap­ U.S.C. 1425a) in excess of SO in the 1994 crop States. propriations Act, 1995". year. [SEC. 736. None of the funds made available Mr. BUMPERS. Madam President, I (b) Notwithstanding any other provision of in this Act for Farm Labor Housing Loans am pleased to present the fiscal year this Act, none of the funds appropriated or and Grants may be used in violation of 7 1995 appropriations bill for agriculture, otherwise made available by this Act shall CFR 1944.9(c) or of any applicable Federal be used by the Secretary of Agriculture to law or regulation of the United States. rural development, and related agen­ provide for a total amount of payments and/ [SEC. 737. None of the funds made available cies. or total amount of loan forfeitures to a per­ in this Act for Rural Rental Housing Loans The bill totals $67 .98 billion in new son to support the price of honey under sec­ may be used in violation of 7 CFR 1944.9(c) or obligational authority. Under CBO tion 207 of the Agricultural Act of 1949 (7 of any applicable Federal law or regulation scoring, the bill includes $13.29 billion U.S.C. 1446h) and section 405A of such Act (7 of the United States. in discretionary authority and $54.61 U.S.C. 1425a) in excess of zero dollars in the [SEC. 738. None of the funds made available billion in mandatory spending. 1994 crop year. · in this Act for Farm Ownership Loans may I might stop to digress, and say that SEC. 724. None of the funds in this Act may be used in violation of 7 CFR 1943.12(a)(l) or we had over 1,100 requests from Mem­ be used by the Secretary of Agriculture to of any applicable Federal law or regulation warrant to the Secretary of the Treasury a of the United States. bers of the Senate for various things in payment out of the Treasury of the United [SEC. 739. None of the funds made available their States. States for purposes specified in the tenth and in this Act for Emergency Loans may be I would just like to say at this point eleventh paragraphs under the heading used in violation of 7 CFR 1945.162(b)(l) or of that out of the almost $68 billion in "Emergency Appropriations" of the Act of any applicable Federal law or regulation of new obligational authority, we only March 4, 1907 (7 U.S.C. 321, et seq.): Provided, the United States. had jurisdiction in the committee of a That $2,850,000 is hereby appropriated for [SEC. 740. None of the funds made available little over $13 billion. The rest of it is higher education challenge grants under sec­ in this Act for Farm Operating Loans may be mandatory spending over which we tion 1417(b)(l) of the National Agricultural used in violation of 7 CFR 1941.12(a)(l) or of any applicable Federal law or regulation of have ·very little control. Research, Extension, and Teaching Policy Included in this mandatory total is Act of 1977, as amended (7 U.S.C. 3152(b)(l)), the United States.] including administrative expenses. SEC. 741. Notwithstanding section 715 of this $28.8 billion for food stamps, an in­ [SEC. 725. None of the funds made available Act, none of the funds appropriated or other­ crease of $694.1 million; $15.5 billion for in this Act for the Food Stamp Program may wise made available by this Act shall be used to the Commodity Credit Corporation re­ be used in violation of 7 U.S.C. sec. 2015(f) or pay the salaries of personnel who carry . out a imbursement of losses; $7.5 billion for of any applicable Federal law or regulation Market Promotion Program pursuant to section child nutrition programs; and $1.8 bil­ of the United States. 203 (7 V.S.C. 5623) of the Agricultural Trade Act lion for the Conservation Reserve Pro­ [SEC. 726. None of the funds made available of 1978, with respect to tobacco or if the aggre­ gate amount of funds and/or commodities under gram and the Wetlands Reserve Pro­ in this Act for the Conservation Reserve Pro­ gram. Mandatory programs account for gram may be used in violation of 7 CFR such program exceeds $90,000,000: Provided, 1498.4(a) or of any applicable Federal law or That the appropriated levels provided in this 80.4 percent of our total bill. regulation of the United States. Act for the following accounts shall be reduced In terms of the subcommittee's 602(b) [SEC. 727. None of the funds made available by 1.5 percent: allocation for discretionary funds, we in this Act for the Wetlands Reserve Pro­ Office of the Secretary. have just met that allocation. Any gram may be used in violation of 7 CFR Office of Budget and Program Analysis. amendments-let me emphasize to all 1498.4(a) or of any applicable Federal law or Chief Financial Officer. of my colleagues who are listening or regulation of the United States. Office of the Assistant Secretary for Adminis- tration. watching-any amendment that adds [SEC. 728. None of the funds made available money to this bill or increases its cost in this Act for the Agricultural Water Qual­ Advisory Committees (USDA). ity Protection Program may be used in vio­ Departmental Administration. in any way must be offset by an equal lation of 7 CFR 1498.4(a) or of any applicable Office of the Assistant Secretary for Congres- amount or they will be subject to a Federal law or regulation of the United sional Relations. budget point of order. Office of Communications. States. On the issue of nutrition programs, Office of the Inspector General. the bill contains a total of $40.2 billion [SEC. 729. None of the funds made available Office of the Assistant Secretary for Econom- in this Act for Integrated Farm Management ics. for food programs including WIC, food Program Option may be used in violation of Economic Research Service. stamps, child nutrition, food dona­ 7 CFR 1498.4(a) or of any applicable Federal National Agricultural Statistics Service. tions, and emergency feeding. This law or regulation of the United States. World Agricultural Outlook Board. amount represents 59.2 percent of the [SEC. 730. None of the funds made available Office of the Assistant Secretary for Science total bill. These programs by and large in this Act for Farm Labor Housing Grants and Education. (section 516) may be used in violation of 7 benefit the urban areas of the country Office of the Assistant Secretary for Market­ because that is where the people are. It CFR 1944.9(c) or of any applicable Federal ing and Inspection Services. law or regulation of the United States. Animal and Plant Health Inspection Service, really is somewhat of a misnomer to [SEC. 731. None of the funds made available Salaries and Expenses. call this a bill for rural America when in this Act for Rural Housing Loans (section Agricultural Stabilization and Conservation you consider how much of it is for 502) may be used in violation of 7 CFR Service, Salaries and Expenses. urban areas. 1944.9(c) or of any applicable Federal law or Soil Conservation Service, Conservation Oper­ To highlight some of the programs in regulation of the United States. ations. the bill, let me first mention the [SEC. 732. None of the funds made available Rural Housing Insurance Fund Program Ac­ in this Act for Rural Rental Housing Loans Women, Infants, and Children Program count, Administrative Expenses. which is our top priority. It has re­ (section 515) may be used in violation of 7 Agricultural Credit Insurance Fund Program CFR 1944.9(c) or of any applicable Federal Account, Administrative Expenses. ceived by far the largest increase of law or regulation of the United States. Rural Development Insurance Fund Program any program in the bill. For WIC, [SEC. 733. None of the funds made available Account, Administrative Expenses. which is the acronym for Women, In­ in this Act for Rural Rental Assistance Pay­ Rural Development Loan Fund Program Ac­ fants, ·and Children, we are providing ments (section 521) may be used in violation count, Administrative Expenses. $3.470 billion, which is a $260 million in­ of 7 CFR 1944.9(c) or of any applicable Fed­ Farmers Home Administration, Salaries and crease over last year, or an increase of eral law or regulation of the United States. Expenses. 8.1 percent. [SEC. 734. None of the funds made available Rural Electrification and Telephone Loans in this Act for Rural Housing Self-Help Tech­ Program Account, Administrative Expenses. Other increases in the 1993 level of nical Assistance Grants may be used in vio­ Rural Telephone Bank Program Account, Ad­ funding are few. In addition to the WIC lation of 7 CFR 1944.9(c) or of any applicable ministrative Expenses. and food stamp programs, we have pro­ Federal law or regulation of the United Office of the Assistant Secretary for Food and vided an increase of $26.5 million for States. Consumer Services. the Wetlands Reserve Program in order 16866 CONGRESSIONAL RECORD-SENATE July 18, 1994 to enroll 100,000 acres as opposed to the Home Administration. That is a 1.5- precedented flooding but terrible flood­ 75,000 acres being enrolled this year, percent cut in their salaries and ex­ ing which has cost the farmers of that 1994. Rental assistance is increased by penses. So the cuts that we already area a lot of lost crops and the commu­ $76.3 million in order to meet the esti­ made in those accounts are reduced nities a lot of loss of facilities. mated renewals and servicing of con­ still further. Madam President, I would like to tracts. An increase of $17 .2 million is We had cut those programs by $17 also say I am indebted to my distin­ provided for the Food Safety and In­ million, and we are taking another 1.5 guished colleague, Senator COCHRAN, spection Service in order to provide percent in order to fund this Market for his cooperation and tremendous better meat and poultry inspection and Promotion Program. help in crafting a bill under very dif­ to fund the Secretary's Pathogen Re­ That is a bad way to legislate, in my ficult circumstances. We are roughly duction Program. opinion. Sometimes necessity dictates $650 million below a freeze. I said in the Finally, Madam President, the bill that we cut across the board because Appropriations Committee the other includes an increase of $142.7 million in you cannot get people to agree on a day, Senators-again, I am not postur­ water and sewer loans and $12.5 million specific way of cutting. You can always ing because I have probably done it, in water and sewer grants. hide behind an across-the-board cut. I too--we have a tendency to come on Perhaps more significant are the de­ have done it myself. I am not postur­ the floor and grandstand by saying, "I creases contained in the bill. Rural ing. I am just saying generally it is not think we ought to free spending." I housing loans are cut by $603.5 million. a very good way to legislate. would be tickled to death to vote for Now, that is a big cut in a program Madam President, I am afraid people freezes in the future, because we are that I believe in strongly. Farm loans do not realize the effect that this addi­ $650 million below a freeze. I can tell are cut by $433.6 million, and conserva­ tional cut is going to have on the abil­ you-and I am not saying this on my tion programs are cut by $323.4 million. ity of the Farmers Home Administra­ behalf; I am saying it on behalf of vir­ The conservation reductions include tion, ASCS, and a whole host of others tually every subcommittee chairman the elimination of a lot of programs­ to carry out the programs because we of the appropriations subcommittees­ the Water Bank Program, the Forestry had already cut them very dramati­ they have all had a very difficult time Incentives Program, the Colorado cally. coming in within the allotment given River Salinity Control Program, and Like the House bill, this bill caps the to them under the Budget Act. the Emergency Conservation Program. Export Enhancement Program at $850 I yield the floor. No new signups will be allowed under million. That is the program where we Mr. COCHRAN addressed the Chair. the Conservation Reserve Program and subsidize exports in order to compete The PRESIDING OFFICER. The Sen- as mentioned earlier the Wetlands Re­ with other nations. We set it at $850 ator from Mississippi [Mr. COCHRAN], is serve Program is limited to 100,000 million, and that is a flat $150 million recognized. acres. from the President's request of $1 bil­ Mr. COCHRAN. Madam President, I The Public Law 480 program is re­ lion. am pleased to join my distinguished duced by $239.8 million. The Crop Insur­ Finally, Madam President, I wish to colleague from Arkansas in presenting ance Program is cut by $217 million. make special mention of what we did for the Senate's consideration today, We have basically thrown that pro­ for the Food and Drug Administration. H.R. 4554, the fiscal year 1995 Agri­ gram into the lap of the authorizing We provided a $54.8 million increase culture, rural development, Food and committee, and I do not know what is over the 1994 level, and that is exactly Drug Administration, and related agen­ going to happen to it after that. Food what the President requested. And the cies appropriations bill. donation programs are reduced by President proposed to allow the Food This bill provides fiscal year 1995 $110.3 million including the elimination and Drug Administration to collect funding for all programs and activities of commodity purchases for the Emer­ $252 million in new user fees. User fees of the U.S. Department of Agri­ gency Food Assistance Program, com­ are for those pharmaceutical compa­ culture-with the exception of the U.S. monly referred to as TEFAP, and over nies that apply to the FDA for a li­ Forest Service-all programs of the the next 48 hours, Madam President, cense to sell new pharmaceuticals, and Food and Drug Administration, the you will hear TEF AP mentioned a lot so on. The bill recommends that FDA Commodity Future Trading Commis­ as well as other programs such as MPP. generate not the $252 million the Presi­ sion, and expenses and payments of the And REA loans are cut by $66.3 million. dent said they could generate; we only farm credit system. In addition, virtually all the salaries recommended $150.8 million. The rec­ As reported, this bill recommends and expense accounts are reduced from ommendation was particularly trouble­ total appropriations of $67 .978 billion the 1994 level. Of particular note is the some for the subcommittee and for me for the fiscal year beginning October 1, cut of $14.5 million for the Agriculture because I do question the Food and 1995. This is roughly $4.1 billion below Stabilization and Conservation Serv­ Drug Administration's ability to col­ the total fiscal year 1994 enacted level, ice, the agency that administers all the lect such an amount in time to be used and $450 million below the total fiscal Federal farm programs, including dis­ in the 1995 budget. It is also unknown year 1995 budget request of the Presi­ aster assistance, and the cut of $17 mil­ how the fees are going to be levied, how dent. lion to the Farmers Home Administra­ much they will be, and whom they will I point out that $40.3 billion, or 59.2 tion, the agency that administers all affect. percent, of the total recommended by the farm, rural housing, and rural de­ The administration's request has no this bill will go to funding the Nation's velopment loan and grant programs. specific plan that I know of for imple­ domestic food assistance programs. But that is not all, Madam President. menting these fees. However, the fiscal These programs include Food Stamps, The subcommittee over my objection, I constraints with which we are faced the National School Lunch, and Elder­ admit, decided to fund the Market Pro­ forced us to comply in part with the ly Feeding Programs, and the Supple­ motion Program at $90 million. Now, budget request. mental Feeding Program for Women, that is the MPP program I mentioned Madam President, I commend the bill Infants and Children, referred to as previously. I wanted to zap that pro­ to my colleagues and I ask for their WIC. gram to zero, but I was overruled in support. Including congressional budget the subcommittee and there is now $90 Let me just say one additional thing. scorekeeping adjustments and prior­ million for the program. In order to do Senator COCHRAN and I will join in of­ year spending actions, this bill rec­ that, one of the members who offered fering an amendment at the right time ommends total discretionary spending the amendment to restore that pro­ to fund such sums as are necessary to of $13.292 billion in budget authority gram found an offset by taking 1.5 per­ take care of the tremendous disaster and $13.850 billion in outlays for fiscal cent from 27 different accounts in the that Alabama, Georgia, and Florida year 1995. These amounts are $525 mil­ bill including ASCS and the Farmers have just experienced in not quite un- lion below the subcommittee's 602(b) July 18, 1994 CONGRESSIONAL RECORD-SENATE 16867 discretionary budget authority alloca­ ginning in fiscal year 1995. This bill last year. It did not submit a legisla­ tion and consistent with its discre­ recommends $75 million, $146 million tive proposal to establish these new tionary outlay allocation. below the fiscal year 1994 appropria­ user fees, despite clear indications As my colleagues will note, we have tions level, for the program. While I from this committee and the authoriz­ underspent the subcommittee's budget would have preferred to maintain the ing committee of jurisdicti0n that it authority allocation for discretionary program at its current funding level, should do so. Again, this year, no legis­ spending by over $500 million to keep this bill provides at least minimal lative proposal has been submitted by the bill within its total discretionary funding to continue work on ongoing the administration to back up its budg­ spending outlay allocation. This outlay projects in fiscal year 1995. et proposal. In fact, administration of­ allocation is $95 million lower than I regret that the bill contains no ficials are reticent in answering ques­ that received by our counterpart House funding at all for the Forestry Incen­ tions or explaining the President's new Subcommittee, close to $400 million tives Program. The Forestry Incentives FDA policy on user fees. They cannot below the fiscal year 1994 enacted level, Program, which aims to increase the tell the Congress how FDA will levy and $500 million less than the Presi­ Nation's supply of timber products the fees assumed in the budget, what dent's request level including new FDA from private, nonindustrial forest the fees will be, or who they will affect. user fee savings. lands, has been a very beneficial pro­ This subcommittee faces a declining The bill we submit meets that outlay gram. The program encourages land­ share of resources available for discre­ target, but it has not been easy. Re­ owners to plant trees on suitable open tionary spending programs that are duced funding is recommended for a lands or cut-over areas and to perform very important to agriculture, to rural number of programs important to agri­ timber stand improvement work for America, and to those who need assist­ culture and · to rural America. Few production of timber and other related ance in dealing with their own nutri­ funding increases are recommended. forest resources. Private nonindustrial tion needs. Most programs are funded at or below landowners control the majority of for­ This subcommittee cannot continue the fiscal year 1994 level. est lands in the Nation, but these lands to save the FDA from these new user Only two major funding increases are not fully utilized. Many landowners fees by making offsetting cuts in those above current levels are recommended do not have the funds to make long­ other programs _and activities under in this bill. One is an increase of $260 term investments in developing and the jurisdiction of this subcommittee. million, the same as contained in the improving forest areas. The Forestry Only $13 billion of the $68 billion rec­ House bill, to maintain our commit­ Incentives Program is designed to · ommended in this bill is discretionary ment to achieve full funding of the WIC share this expense with private, eligi­ spending, subject to the annual control Program. Also, there is an increase of ble landowners. It is my hope that the of the committee. Funding for almost $76 million for rural housing rental as­ Senate will be able to recede in con­ all agriculture and rural development sistance to meet the estimated costs of ference to the House bill position, programs in this bill has been reduced contract renewal and servicing require­ which recommends funding be contin­ below current levels to meet the sub­ ments. ued for this program. committee's lower discretionary spend­ Other more modest increases include The bill also recommends a total re­ ing allocation. Further cuts have been an additional $17.2 million to continue duction of $603 million below last necessary to offset the few increases the efforts of the Food Safety and In­ year's level for rural housing loan au­ provided, including the additional $260 spection Service to assure the safety of thorizations; a reduction of $301 mil­ million for WIC. Furthermore, the sub­ our Nation's food supply; an additional lion in farm operating and farm owner­ committee was able to reduce funding $26 million to enroll an additional ship loan authorizations; and a reduc­ to avoid $100 million of the $252 million 100,000 acres in the Wetlands Reserve tion of $554 million in Rural Elec­ in new user fee collections used by the Program; and $33 million as an increase trification Administration loan pro­ administration to reduce FDA's appro­ to provide more water and sewer loan gram authorizations. priations request. and grant assistance to rural commu­ Public Law 480 loan authorizations These have all been very difficult de­ nities. are reduced $240 million below fiscal cisions, Madam President. I do not Savings of $234 million are rec­ year 1994 levels. Other savings come agree with all of them. But, on balance, ommended in appropriations for the from a $10 million reduction in funding I believe that the bill we submit to the Federal Crop Insurance Program. This for the Market Promotion Program; Senate today represents a reasonable is the same as the House bill level and elimination of funding for the Emer­ compromise among the many programs assumes adoption of crop insurance re­ gency Food Assistance Program com­ competing for the limited resources form, as proposed by the President. modity purchases; and a limitation of available to this subcommittee. With the exception of increased fund­ $850 million on Export Enhancement I sincerely commend the distin­ ing for the Wetlands Reserve Program, Program subsidies. guished chairman of the subcommittee, the bill reduces total funding for agri­ The bill also provides the $52.8 mil­ Senator BUMPERS, for his leadership culture conservation programs man­ lion increase in overall funding re­ and hard work on this bill. He has aged by the Agricultural Stabilization quested by the President for salaries made an effort to accommodate the in­ and Conservation Service and the Soil and expenses of the Food and Drug Ad­ terests of all Senators in this bill, in­ Conservation Service by a total of ap­ ministration. But this includes $150.8 cluding those on this side of the aisle, proximately $611 million. This includes million of the $252 million in new user and under very difficult circumstances. a 34-percent reduction in funding level fee collections assumed in the Presi­ It is not easy to be responsive or as for watershed and flood prevention op­ dent's budget. generous as one would want to be to erations; a 51-percent reduction in The President's budget proposes $24 the needs of the agencies and the inter­ funding for the agricultural conserva­ million in collections from the new ests which fall under the jurisdiction of tion program; and elimination of fund­ user fee on medical devices and $228 this subcommittee, given the alloca­ ing for the Water Bank and Forestry million in collections from new user tion of funds that are available. But I Incentives Programs. fees on FDA-regulated activities. believe given the resource constraints, The Watershed and Flood Prevention Such fees constitute a major policy this is a good bill on whole, and I ask Operations Program has fostered a ben­ change, and it is my view that they re­ my colleagues to give it their very fa­ eficial partnership between the Federal quire separate authorization. Collec­ vorable consideration. and State and local governments to tions from new FDA user fees should The PRESIDING OFFICER. The Sen­ prevent erosion damage and to prop­ not be assumed in an appropriations ator from Arkansas. erly protect and conserve watersheds bill, as the President proposes. Mr. BUMPERS. Madam President, I and flood-prone areas. The President The administration included new thank my distinguished ranking mem­ proposed to terminate this program be- user fee collections in its FDA request ber and colleague, Senator COCHRAN, 16868 CONGRESSIONAL RECORD-SENATE July 18, 1994 for his very kind and overly generous Mr. COCHRAN. Madam President, Mr. BRYAN. I thank the Chair. remarks. We have indeed had an excel­ the agreement has been cleared on this Madam President, I ask unanimous lent working relationship. I daresay side of the aisle. We have no objection. consent that we set aside the pending this: It could not be better. The PRESIDING OFFICER. Without amendments and proceed to the amend­ His suggestions have been very help­ objection, it is so ordered. ment on page 86, line 9, through page ful and thoughtful, and together we The committee amendments were 88, line 12. have tried to craft a bill under unbe­ agreed to en bloc, except the following: The PRESIDING OFFICER. Without lievably difficult circumstances, as On page 10, line 24; on page 12, lines objection, it is so ordered. pointed out in my early comments. 14 through 17; on page 16, line 3; on EXCEPTED COMMI'ITEE AMENDMENT ON PAGE 86, Mr. SASSER. Madam President, the page 16, lines 4 through 7; on page 32, LINE 9, THROUGH PAGE 88, LINE 12 Senate Budget Committee has exam­ lines 20 through page 33, line 16; on Mr. BRYAN. I thank the Chair. ined H.R. 4554, the Agriculture appro­ page 71, lines 21 through 25; on page 86, Madam President, for my colleagues priations bill and has found that the line 9 through page 88 line 12; and fi­ who are listening, this is a bit of an un- bill is under its 602(b) budget authority nally on page 80, line 10 through page usual procedure because I will not be allocation by $525 million and under its 81, line 18. offering an amendment, per se. My 602(b) outlay allocation by $87,000. Mr. BUMPERS. Madam President, let comments today deal with an objection I compliment the distinguished man­ me say also for the benefit of my col­ to a committee amendment. So I am ager of the bill, Senator BUMPERS, and leagues, this is a Monday. There are going to be speaking in opposition to a the distinguished ranking member of possibly Senators out of town, which is committee amendment that deals with the agriculture subcommittee, Senator their prerogative, because we are not a program that is familiar to, I know, COCHRAN on all of their hard work. going to have any rollcall votes today. the distinguished Senator from Mis­ Madam President, I have a table pre­ But I am hoping that some of our col­ sissippi, who serves as one of the floor pared by the Budget Committee which leagues will not use this as a reason for managers today. I am talking about shows the official scoring of the Agri­ procrastinating in offering their the Market Promotion Program. culture appropriations bill and I ask amendments. Procedurally, I am going to be ob­ unanimous consent that it be inserted I am not very crazy about stacking jecting to that part of the committee in the RECORD at the appropriate point. votes, but we need to finish this bill amendment that, in effect, continues There being no objection; the table sometime tomorrow, the earlier the funding the Market Promotion Pro­ was ordered to be printed in the better. There is not any way to do that gram. My comments are addressed in RECORD, as follows: unless the amendments to be proposed opposition to the Market Promotion by Senators are offered so they can be Program, with the hope that my col­ SENATE BUDGET COMMITIEE SCORING OF H.R. 4554- debated, rollcall votes called for, or leagues may agree with me that this is FISCAL YEAR 1995 AGRICULTURE APPROPRIATIONS­ whatever. a program which ought to be discon­ SENATE-REPORTED BILL Second, I want to say that there are tinued. In the current fiscal year it is [Dollars in millions) eight exceptions to committee amend­ funded at a level of $99.5 million. ments, most of those by the same Sen­ Madam President, let me give a little Bill summary Budget Outlays ator. But that is immaterial to me. I bit of the background because not ev­ authority do not mind Senators asking me to ex­ erybody has had a chance to focus on Discretionary totals : cept amendments from the committee this program. New spending in bill ...... 13,292 9,653 Outlays from prior years appropriations ...... 4,239 amendments to be considered. They are The Market Promotion Program was PermanenVadvance appropriations 0 going to be the pending business, and created in 1986 to encourage develop­ Supplementals ...... -42 my point is simply this: If at some rea­ ment, maintenance, and expansion of Subtotal, discretionary spending ...... 13,292 13,850 sonable time the Senators who have exports of the U.S. agricultural prod­ Mandatory totals ...... 44,721 36,385 objected to these amendments are not ucts. It is a successor to an earlier pro­ here to state their objections or offer gram referred to as the Targeted Ex­ Bill total ...... 58,013 50,235 striking amendments or whatever port Assistance Program known as Senate 602(b) allocation ...... 58,538 50,235 other kind of amendment they want to TEA. TEA was created in 1985 to Difference ...... -525 - (*) make, at some point I am going to counter ostensibly the adverse effect of

Discretionary totals above (+) or below ( - ): start moving to adopt those amend­ subsidies, import quotas, and other un­ President's request ...... - 562 - 267 ments so we can finish this bill tomor­ fair trade practices of foreign competi­ House-passed bill ...... - 38 -94 Senate-reported bill ...... row night. tors as it deals with agricultural ex­ Senate-passed bill ...... I do not mean to be harsh about it. It ports. Defense ...... 0 0 International affairs ...... 1,246 1,348 is just that Senator COCHRAN and I Since 1986, more than $1.35 billion has Domestic discretionary ...... 12.046 12,502 have worked long and hard to craft this been spent for TEA and MPP. bill. It is time now for the Senate to The Market Promotion Program, COMMI'ITEE AMENDMENTS debate it and work its will. I do not Madam President, is operated through Mr. BUMPERS. Madam President, I have any interest in sitting here for about 64 organizations that either run now ask unanimous consent that the hours on end waiting and hoping that market promotion programs them­ committee amendments, with the ex­ some Senator will show up with an selves or pass the funds along to com­ ception of those I will list, be agreed to amendment, because Senator COCHRAN panies to · spend on their own market en bloc, and that the bill as thus and I are just like everybody else, we promotion efforts. For example, in fis­ amended, be regarded for the purpose have a plateful, and we need to attend cal year 1994 about 43 percent of all of amendment as original text, pro­ to our business. program activities involved generic vided that no point of order shall be I compliment the Senator from Ne­ promotions, that is agricultural pro­ waived by reason of the agreement to vada, who has a very important amend­ grams by commodity whether we are this request. ment and is here on the floor ready to talking about cotton or raisins or The exceptions are: offer it. I might also say I am going to whatever the agricultural product is. On page 10, line 24; on page 12, lines accept that amendment. I am just say­ Fifty-seven percent involved brand­ 14 through 17; on page 16, line 3; on ing other Senators ought to be pre­ name promotions, that is companies page 16, lines 4 through 7; on page 32, pared to come over and follow the Sen­ whose brand name is used to promote a lines 20 through page 33, line 16; on ator from Nevada when we complete particular product, the product which page 71, lines 21 through 25; on page 86, debate on that amendment. includes some agricultural product line 9 through page 88 line 12; and fi­ I yield the floor. grown in the United States. nally on page 80, line 10 through page The PRESIDING OFFICER. The Sen­ The General Accounting Office has 81, line 18. ator from Nevada. pointed out that the entire Federal July 18, 1994 CONGRESSIONAL RECORD-SENATE 16869 Government spends about $2.7 billion But, as you can see, we are talking As an example, they cite a firm with annually on export promotion. While about companies the size of McDon­ 14 years of export experience, request­ agricultural products represent ap­ ald's, the hamburger people. I happen ing MPP funds for a total of 31 mar­ proximately 10 percent of entire U.S. to love hamburgers, so there is no an­ kets. In 8 of the markets, the firm had exports, the Department of Agriculture tagonism, no judgment made about at least 10 years of promotional experi­ spends about $2 billion, or 75 percent, their company in terms of the quality ence with their brand names prior to of the total. The Department of Com­ of its product or what it is trying to the participation in the MPP program. merce, for example, spends about $195 market. But it has received, over the 8- That is, this particular firm, which had million annually on trade promotion. year period in question, from 1986 to extensive export experience, had been In 1992, the Foreign Agricultural 1993, the sum of $1.42 million in tax­ in the very market, had been exten­ Service, which is an agency within the payers dollars. sively promoting it through its adver­ Department of Agriculture, asked orga­ McDonald's is no small company. Its tising budget before they applied for nizations to provide information on do­ net profits are approximately $1.082 bil­ the program. And so there is no indica­ mestic and foreign ownership of com­ lion and its advertising budget is $743 tion that, but for this MPP funding, mercial firms that have received million a year. So we are talking about they would not continue to be funding money under MPP, the Market Pro­ a company that has a huge advertising their advertising at the same level, if motion Program. Of the MPP funds $92 and promotion budget. No quarrel, no not more, even if this program did not million went to foreign-based firms for objection with that. That is a private­ exist. fiscal years 1986 through 1993. This sector determination made by the man­ Another example, which came by way amount represents nearly 20 percent of agement of McDonald's and there is no of testimony offered in one of the com­ the total funds allocated for brand­ suggestion here to imply any criticism. mittees in the other body a year or 2 name promotions during the 8-year pe­ The criticism is, Does McDonald's, ago, was the testimony of Ursula riod covered; that is, from 1986 to 1993. for example, deserve, and is it entitled Hotchner. She is an official with New­ And while the goal of MPP is laud­ to receive $1.42 million of taxpayers man's Own; that is Paul Newman's food able-to benefit U.S. farmers----the pro­ dollars to supplement their advertising company. She testified that the com­ gram can also benefit other enter­ budget? pany was asked why they did apply for prises. The same could be said with respect TEA funding. She said, "I do not By funding foreign firms, the General to Ralston-Purina, which receives $1.17 know." She said, "Someone from the Accounting Office believes that MPP million; Borden, $344,000; ConAgra, $638,000; Brown-Forman, $2.41 million. Export Council called up one day from can make it more difficult for U.S. out of the blue asked why don't we firms to compete and attain a foothold These are just some of the biggest com­ panies in America, and their advertis­ take the money? They said all we had in foreign markets. The funding of for­ to do was to send in our advertising eign companies may produce short­ ing budgets are $743 million, is being augmented by the $393 million, $135 bills and they would reimburse us." term gains in the exporting of U.S. ag­ Her response was, "Well, I figured, why ricultural commodities, but these gains million, $200 million, and $75 million, may ultimately come at the expense of respectively. A lot of money. not?" The taxpayer dollars are what I ob­ Again, no indication, no baseline, no U.S. firms who are trying to compete data indicating that, in this instance, in those markets and whose access to ject to. The purpose of my objecting to the amendment is to zero out this pro­ this company is not just simply saying, those markets is made more difficult "Look, if there are Federal dollars as a result of the MPP program. gram. Some of my colleagues may re­ Now, let me just describe, in very call that I took the floor unsuccess­ available to help us in our advertising, broad terms, what we are talking fully last year to make the same argu­ we will take the money and maybe we about. We are talking about a program ment. can back out that money to another that historically received about $200 But the General Accounting Office area or take it to the bottom line." So million annually. has looked at this, as I said, with a that there is no data base, no hard data MPP funds go to advertising and pro­ very disdainful eye, and here are some that the GAO can come up with to indi­ motion. And so, as the General Ac­ of the observations that it makes with cate that in point of fact the taxpayer counting Office has reviewed this pro­ respect to the program. subsidies are, in fact, supplementing gram over the years----and I must say, First, under a category of what they the advertising budgets. Madam President, a very critical eval­ call additionality, there is still no Another critical observation made by uation it is. First, a question arises. proof that the MPP funds----those are GAO is what it refers to as graduation. Why does this money go to some of the the taxpayer subsidies-are not simply That is, once you are in the program, biggest companies in America: Do they replacing funds that would have al­ do you ever graduate, or are you there really need taxpayer dollars? And that ready been spent anyway on advertis­ for life? Is it one of those things where is the issue here, Madam President. All ing. USDA does not have any good data you are in there in perpetuity, as the of this is taxpayer dollars. Your tax­ on the addi tionali ty. Commercial firms lawyers would say? payer dollars, Madam President, from still have the opportunity to substitute Now, there are new MPP regulations your State of Illinois, and mine from MPP funds for promotional activities that require assistance to cease after 5 Nevada, and each of us who serve as they would otherwise have undertaken years. However, the 5-year clock starts Members of this distinguished body, go on their own. running in 1994. This means that some to funding this program, What we simply mean by that is, companies will have been in the pro­ Authorized in the past at $200 mil­ there is no indication that this dollar gram for 13 years at the end of 1999. lion, in the current fiscal year, the figure here, an advertising budget of Thirteen years, Madam President, is funding has been reduced to $99.5 mil­ $743 million, is being augmented by the certainly enough time to overcome any lion and the amendment to which I ob­ $1.42 million in MPP funds? Are they barriers in markets. Already 136 firms ject would put funding for fiscal year simply substituting dollars that they have participated in the program for 6 1995 at $90 million. So we are not talk­ would already have spent? to 8 years, and have received the bulk ing about an inconsequential sum of And the GAO, which has looked at funds indicated under their brand money. We are talking about $90 mil­ this with a very critical eye, is saying names. lion in this budget. there is no way for us to ascertain that This should not be a corporate enti­ Let me just indicate here, if I may, indeed these taxpayer subsidies are in tlement program. Once the barrier to Madam President, where some of this fact supplementing the advertising market a U.S. product in a foreign na­ money has gone. budgets as opposed to just substituting tion has been bridged, there is no deci­ This is a taxpayer subsidy. Some dollars that these major companies and sion to cease funding that particular have referred to it as a corporate enti­ various trade organizations would oth­ company. Since 1986, the California tlement program. erwise have spent. Raisin Advisory Board has spent $47.4 16870 CONGRESSIONAL RECORD-SENATE July 18, 1994 million nationwide for market develop­ content. So some of these products I know we are probably going to hear ment. Of that, $9.4 million was spent that are being subsidized do not con­ some comment from my good friends, specifically for development in the tain 100-percent American product. those who support this program, that Japanese market. Currently, the Cali­ They are supposed to have at least 50 suggest we are only talking about $90 fornia raisin exporters have about 80 percent of U.S. content by weight. But million; in a national budget of $1.5 percent of raisin imports in Japan. So, here again in an evaluation of the pro­ trillion, this is really inconsequential. should the taxpayers be providing addi­ gram, the GAO concludes there is no I think one of the things I enjoy most tional money to the California Raisin dependable data on the percent of U.S. serving in this institution is returning Advisory Board to promote the export content. FAS relies on statements each week, as I do, and talking to peo­ of raisins to Japan? I do not think any­ made in the MPP application about ple in my own home State, as I know body here would have a quarrel with U.S. content, and not-for-profit organi­ most of us do. I like to hear what they the concept that California agricul­ zations rely on unverified statements have to say. Sometimes we deal with tural products ought to be exported regarding U.S. content from their such macroeconomic problems in worldwide. I think all of us can agree branded participants. So the answer is America, as we should; we use numbers with that. But should the taxpayers be we really do not know at this point that have more zeros than most of us, paying additional money when they al­ what the U.S. content is, of the product nearly, can count. But $90 million is ready have 80 percent of the market? we are subsidizing to be exported into real money. When you talk with the Should that not be a private sector ac­ the international marketplace. average citizen in your State, that per­ tivity, and to give the taxpayers a The question arises-who should get son will not see $90 million in his or break? Why should the rest of us, as the funds? Although new guidelines say her lifetime, or as far back as they can taxpayers, be paying for additional ad­ that small firms should have priority, trace their family history. vertising when, indeed, that market one-third of fiscal year 1994 funds con­ My purpose in offering this com­ seems to be very effectively pene­ tinue to go to very large companies. mentary in opposition to the commit­ trated? Large corporations such as McDon­ tee amendment is to say, "Look, this is Another issue is evaluation. By that, ald's, Sun Maid, Welch's, and Pillsbury a priority which this country can ill-af­ we mean how do you draw a relation­ still receive large sums of money. In ford. '' It is not in any way designed to ship between what Company A received 1992, the average amount awarded to be antagonistic and critical of those in taxpayer subsidies the amount of ex­ the top 50 firms was $1 million; 8 of who labor in the fields of America and those top 50 firms had sales of more who produce the agricultural bounty of ports by that particular company or which America is proud. Their hard that trade association have increased X than $1 billion. Brand name partici­ pants receiving more than $1 million work, their efficiency in what they number of dollars, or X number of per­ have done is absolutely legendary and, cent? The General Accounting Office from 1986-93 include: Welch's, $5,886,000---rounding that off; Blue Dia­ as Americans-all of us, those of us took a look at that issue. Here is what from nonfarm States and farm States it has to say. mond, $37 ,521,000---that is another fig­ ure I am rounding off; Pillsbury, alike-benefit enormously. But can we The GAO concludes that: justify spending $90 million of taxpayer Taxpayers do not have reasonable assur­ $10,506,000. So the question arises, why do companies of this size need taxpayer money for activities that essentially ances that the considerable public funds ex­ ought to be done in the private sector, pended on export promotion are being effec­ assistance? I think that is one of the tively used to emphasize sectors and pro­ critical objections. when there are so many critical grams with the highest potential returns. In an article appearing in Washing­ need&-and I know the distinguished MPP supporters use examples of increased ton Monthly, the title of which is, "Ad occupant of the chair is as articulate exports. However, even if a brand name pro­ Hawk," and written by Doug as any Member in this institution talk­ motion effort results in identifiable in­ Turetsky-this article appeared in July ing about the unmet needs out there in creases in exports, unless FAS can convinc­ America. How can we give $90 million, ingly demonstrate the promotion effort 1991, the following observation is made. I would like to share this. some of which goes to McDonald's, Ral­ would not have been undertaken without ston Purina, ConAgra, Welch's, Sun MPP assistance, those increases in exports Consider Minnesota-based Pillsbury, cannot be attributed to the program. home of the Popping Fresh Dough Boy Maid, some of the major agricultural companies in America? I think the con­ So we do not have a clear under­ and the Jolly Green Giant. In addition to $90,000 which is for the regional clusion we arrive at is inescapably-no. standing that even when the money A number of my colleagues are fond goes to the particular brand name, or trade association-this is the unbranded portion of it-Pillsbury re­ of, and agree with, the general observa­ the trade association, that indeed we tions of George Will. I do not always are getting a bang for the taxpayer ceived $1.3 million directly from USDA in 1989 to market its Green Giant fro­ agree with his conclusions, but I must buck. say he is an extraordinary writer, and GAO further observes that: zen corn in Japan. But as USDA's own magazine, Ag Exporter notes: I have in recent years agreed with a Since 1986, there have been more than 100 number of his observations, particu­ participants in the program. Yet the Foreign Pillsbury has cultivated the Japanese mar­ ket since the 1970's. And while it is true that larly as it deals with some of our agri­ Agriculture Service has completed only 12 cultural programs. program evaluations. Only 9 of 26 partici­ Japan enacts considerable barriers on corn used for animal food, frozen corn appears no­ A year ago, some of my colleagues pants who have received over $10 million will recall we debated the wool and mo­ have been evaluated. where on a comprehensive list of barriers compiled by the Office of the U.S. Trade Rep­ hair subsidy, parenthetically some­ Basically, the question Is, what we resentative. Federal subsidies were being thing that directly affects my own are spending accomplishing anything? used to do exactly what the company had State. There are sheep ranchers in Ne­ The answer, analytically-other than done for years and with a minimal apparent vada who have been participants in the anecdotal information that is pro­ difficulty, using its own money. that program and who will, as a con­ vided-is we do not know. We do not It is a question, it seems to me, of sequence of the actions taken by this know if the money was indeed targeted priorities. That is my concern, as we body, at my request and a number of to the right sector in the foreign mar­ struggle with very difficult budget de­ our colleagues, no longer receive sub­ ket or if, indeed, it made a difference cisions. We are constantly being told sidies for wool production. That is that would not have otherwise come we need to prioritize our dollars. I hap­ something that took a bite out of our about, had the subsidy not been pro­ pen to share that view. We need to be own folks and our own State. It is not vided. mindful and cognizant of the deficit that we are just trying to pick on No. 4 is U.S. content. MPP regula­ and the debt that is accumulating each somebody else in another State. That tions issued in August 1991 do not re­ year, as we continue to spend more had a direct impact. strict the program participants to money than we take in. We need to George Will makes this observation products that have 100-percent U.S. take a look at our priorities. in an article that appeared in the July 18, 1994 CONGRESSIONAL RECORD-SENATE 16871 Washington Post on July 11, 1993 and I try. But we simply cannot afford the the amendment, an across-the-board quote from one of the paragraphs: luxury of this program. When we com­ cut in salaries and expenses for most of The MPP funds, both generic and brand­ plain bitterly about priorities being ne­ the agencies funded in the bill. The name advertising abroad for American agri­ glected in this country, it seems to me other body in its bill as passed by the cultural products, is yet another example of this is one program that we need to House provides $90 million in funding. Government solicitous on behalf of the take the stick to and say, With all the So what we have seen happen is that strong. Of the 200 U.S. corporations with the problems it has in terms of the House, up to this point, and the largest advertising budgets, 13 last year got committee, after acting on the Gorton a total of $9 million from the MPP, an aver­ ascertaining its effectiveness and its age of $700,000 each. But the ·advertising accountability we should not fund amendment, have agreed that the pro­ budgets of those corporations range from $45 some of the major companies in Amer­ gram should be continued at a funding · million to $538 million, so the taxpayer con­ ica, I think it is time to end the pro­ level of $90 million. This amendment, if tributions can hardly be said to represent gram. it is rejected, as proposed by the distin­ the difference between competitive success One last point, if I may. One might guished Senator from Nevada, would and failure. be able to argue with some measure of take it down to zero again, would zero That pretty much sums up my posi­ justification, Look, this money is out funding for the program. tion as to why we ought to eliminate going for American companies and we It is my hope that the Senate will this program. ought to be helping American compa­ study very carefully the issues in­ It will be said by those who support nies. I am a great advocate of helping volved before agreeing to that pro­ the continuation of the programs, "Aw, American companies do some of the posal. Last year, for example, Senators those comments may have been appro­ right things. It does not mean we ought may remember that there was a simi­ priate a year ago, but we have re­ to pay for it. lar effort to cut this program. As a formed. We have reformed the pro­ This is a list that cannot be seen matter of fact, the proposal was to cut gram. The criticisms of the past no very clearly because there are so many it to zero last year, and a vote oc­ longer bear any merit for today." names under it. Let me tell you what curred, and on a recorded vote the Sen­ I want to spend just a couple of min­ this chart indicates. This indicates the ate voted 70 to 30 against that amend­ utes, before yielding the floor, to talk foreign brands-not American compa­ ment'. about those so-called reforms. I think nies-the foreign brands that are sub­ So the Senate has already reviewed that they are, at best and most, chari­ sidized by the MPP program. In these very carefully-we had a full debate tably assessed as being very modest. are the brands that are supported. I last year-whether or not this program Some would say they are transparent counted and there are about 240 foreign ought to be continued. I think Sen­ or illusory. companies. There may be more, but ators should keep that history in mind For example, the Secretary should that is what we have been able to as­ as we proceed to the consideration of not provide assistance for a specific certain. the proposal now before us. brand for more than 5 years. As I have What is the justification in using Let me flirther say that despite in­ indicated, a number of the branded American taxpayer dollars to subsidize creases in U.S. agriculture exports and products have been in this program for foreign companies? I think that is a moneys derived from those exports, years and years. So that just gives difficult argument to sell. I think it is there continue to be serious problems them an additional 5 years. That is the an argument that we ought to have in the international marketplace that criticism under the rubric of gradua­ some difficulty persuading. I cannot American agriculture and food prod­ tion. Once you get into the program, do accept that. I do not believe that there ucts have to overcome if we are to con­ you stay for life? That is not, in my is a compelling rationale for spending tinue to enjoy that kind of trend in in­ judgment, a substantial reform. taxpayer dollars to subsidize foreign creasing our sales abroad. These unfair Each participant is required to cer­ company advertising budgets. I suggest trade practices-barriers to trade, poli­ tify that any Federal funds received do that this is another reason, as well, cies in some countries that they must not supplant private or third-party that this program has reached a point remain self-sufficient in this or that participant funds. That is an account­ in time, whatever its historical merit area-all work together to make it dif­ ing game, I suggest, in which we ought may have been, to say, when dollars ficult for U.S. exporters, farmers, and not get involved. We have no way of are so critically short, as I indicated a others, to compete effectively in the really knowing whether or not those moment ago, that we simply cannot international market. moneys are, indeed, substituted out. I justify all of this expenditure, for all of Back in 1985, it was recognized that suspect in many instances they are, the things I indicated. the U.S. Government ought to become and we certainly cannot establish that I yield the floor. more actively involved in helping to that does not occur. The PRESIDING OFFICER (Mr. DOR­ ensure that our exporters were treated The Secretary should give priority to GAN). Who seeks recognition? Is there fairly. When we try to compete with small-size entities. I might just say, if further debate on the committee others or when we try to sell in an­ this was part of the reform in the 1993 amendment? The Chair recognizes the other market overseas, it was decided Reconciliation Act, you can take a Senator from Mississippi. that we should stand up for our side look at the fiscal year 1994 funding, and Mr. COCHRAN. Mr. President, to re­ and that our Government ought to it is not an auspicious beginning. With view the situation so the Senate will take an active role. So we included in respect to the $56.75 million that went understand how we have gotten to this the 1985 farm bill a market develop­ to the branded program, $23. 72 million point on this issue, the administration, ment program, which was called the went to small-size companies. That is in its budget request for the year, asks Targeted Export Program, that funds about 25 percent of the funds for the for $75 million for the Market Pro­ would be available to be administered entire program, and 33 percent of the motion Program. Last year's funding by the Department of Agriculture to funds for the entire program still went level was $100 million. The bill as it help break down those barriers that to the large companies. Whether you was presented in our subcommittee, were being erected to prevent the sale went to school under the new math or the chairman's mark, zeroed the pro­ of U.S. commodities such as soypeans, the old math, the large companies are gram out. There were no funds in the rice, feedgrains, wheat, cotton, and still receiving the largest portion of subcommittee print. bulk commodities. These were some of the MPP moneys. So at markup, the distinguished Sen­ the products that were being supported So my point-and I will yield the ator from Washington State [Mr. GOR­ in this way. Also, manufactured food floor at this point-is that it is a ques­ TON] offered an amendment to include products were eligible, and high-value tion of priorities. I certainly have no in the bill $90 million in funding for products were ruled to be eligible as hostility to those who represent the this program for next year and pro­ well. But the whole point was to target great agricultural areas of this coun- posed as an offset, which was a part of those efforts to specific transgressions, 16872 CONGRESSIONAL RECORD-SENATE July 18, 1994 in effect, or particular problems that tlvely In the International marketplace. Kentucky Distlllers Association; Mld­ were besetting U.S. exporters. And the This ls especially true with regard to the Amerlca International Agrl-Trade program worked. We began seeing, in new GATT agreement. Council; National Dry Bean Council; The new GATT agreement, It should be National Grape Cooperative Associa­ some of these markets, increases in emphasized, does not eliminate export sub­ tion, Inc.; National Association of sales or new sales made by U.S. export­ sidies or trade barriers. It only reduces their State Departments of Agriculture; Na­ ers when before they were not per­ overall level. Further, It permits countries tional Cattlemen's Association; Na­ mitted to be sold or they were having to maintain and Increase their support for tional Confectioners Association; Na­ difficulties competing in those mar­ programs which are considered non-trade tional Corn Growers Association; Na­ kets. distorting. These so-called "green box" pro­ tional Council of Farmer Cooperatives; At hearings before our subcommit­ grams Include market development and mar­ National Cotton Council; National tee, for . example, the Foreign Agri­ ket promotion, export credit, and food as­ Milk Producers Federation; National sistance, among other programs. As such, Peanut Council of America; National culture Service t~stified that agri­ both MPP and FMD represent "green box" Pork Producers Council; National Po­ culture exports attributable to tar­ programs and are allowed under GATT. tato Council; National Renderers Asso­ geted promotion during that period, Clearly, as history has shown, our foreign ciation; National Sunflower Associa­ from 1986 to 1988, ranged from $2 to $7 competitors-especially the European tion; National Wine Coalition; for every $1 of program funds expended. Union-will continue to utlllze every avail­ NORPAC Foods, Inc.; Northwest Horti­ This experience of the Targeted Export able weapon to maintain and expand their cultural Council; Ocean Spray Cran­ Program led the Congress to continue share of the world market. This Includes the berries, Inc.; Produce Marketing Asso­ the program when the 1990 farm bill maximum use of export subsidies as allowed, ciation; Protein Grain Products Inter­ and the shifting of additional resources Into national; Ralston Purina Company; was written. The program was changed such green box programs as highlighted Rice Mlllers Association; Sioux Honey in name from the Targeted Export Pro­ above-including market development and Association; Southern Forest Products gram to the Market Promotion Pro­ promotion. Without a similar commitment Association; Sun-Diamond Growers of gram in the 1990 farm bill. on the part of the U.S. Government, U.S. ag­ California; Sunklst Growers, Inc.; Sun There is a coalition that has been riculture wlll be at a substantial disadvan­ Maid Raisin Growers of California; formed to promote U.S. agriculture ex­ tage. Sunsweet Prune Growers; The Catfish ports, and I received a letter just re­ Both the MPP and FMP programs have Institute; The Popcorn Institute; Tree cently from this group pointing out the been critically Important In helping U.S. ag­ Fruit Reserve; Tree Top, Inc., Tri Val­ riculture build, maintain and expand export ley Growers; United Egg Association; new GATT agreement does not elimi­ markets. They have also helped encourage United Egg Producers; United Fresh nate support from a government to industry self-help efforts, counter unfair for­ Fruit and Vegetable Assn.; USA Poul­ break down trade barriers or to do the eign trade practices, and promote greater try & Egg Export Council; U.S. Agri­ things that are provided for in this awareness and demand among foreign con­ cultural Export Development Council; Market Promotion Program. So those sumers for U.S. produced agricultural com­ U.S. Livestock Genetics Export, Inc., who are worried that this might be an modities and related products. U.S. Meat Export Federation, Inc.; U.S. appropriation which runs counter to The Importance of these programs ls also Feed Grains Council; U.S. Meat Export the provisions or the intent of GATT reflected In the fact that exports account for Federation; U.S. Wheat Associates; neariy one-third of total U.S. agriculture Vodka Producers of America; Washing­ should not be concerned on that sub­ production and over $40 blllion In sales. Such ton Apple Commission; Western Pis­ ject. exports also generate billions of dollars In tachio Association; Western U.S. Agri­ To explain this more fully, I am additional economic activity and provide cultural Trade Assn.; Wine Institute. going to ask unanimous consent that a more than one million Americans with need­ Mr. COCHRAN. Under GATT, coun­ copy of this letter to me dated June 24 ed jobs. Again, without a continued strong tries are able and permitted to main­ from the Coalition to Promote U.S. Ag­ commitment In terms of support for such tain and even increase their support for ricultural Exports be printed in the programs as MPP and FMD, many of these non-trade-distorting programs. The RECORD. jobs wlll be jeopardized and lost to foreign competition. Market Promotion Program falls with­ There being no objection, the letter For these reasons, we urge your strong in the definition of these types of pro­ was ordered to be printed in the support for USDA's Market Promotion grams. RECORD, as follows: (MPP) and Foreign Market Development I wish to assure my colleagues that COALITION TO PROMOTE (FMD) programs and that you continue to you can bet our foreign export com­ U.S. AGRICULTURAL EXPORTS, oppose any amendments which would further petitors, our friends from around the Washington, DC, Ju16e 24 , 1994. reduce or eliminate their level of funding. world who compete with us for market Hon. THAD COCHRAN, Sincerely, share with agriculture commodities, U.S. Senate, Washington, DC. Ag Processing, Inc., Alaska Seafood Mar­ are going to utilize these programs-­ DEAR SENATOR COCHRAN: With the Senate keting Institute; American Farm Bu­ they have in the past; they will con­ expected to consider the FY 1995 agriculture reau Federation; American Forest & appropriations blll (HR 4554) as early as the Paper Association; American Hardwood tinue to do so in the future-to try to week of June 27, we would like to take this Export Council; American Meat Insti­ enlarge their market share. If all of a opportunity to urge your continued strong tute; American Plywood Association; sudden now we abandon this program, support for maintaining funding for USDA's American Sheep Industry Association; which has served our farmers and ex­ Market Promotion (MPP) and Foreign Mar­ American Soybean Association; Blue porters well, U.S. agriculture is going ket Development (FMD) Programs. Diamond Growers; California Avocado to suffer because of it. So I think there Last year, with your leadership and sup­ Commission; California Canning Peach is a definite correlation between this port, the Senate overwhelmingly rejected an Association; California Kiwifruit Com­ program and the success it has had and amendment to eliminate funding for MPP by mission; California Pistachio Commis­ the increases in market share that we a vote of 70 to 30. We anticipate a similar sion; California Prune Board; Califor­ amendment may again be offered this year nia Raisin Advisory Board; California have seen coming to U.S. exporters in when the blll reaches the Senate floor. Ac­ Tomato Board; California Walnut Com­ the past 10 years. cordingly, we again urge that you continue mission; Cherry Marketing Institute, One other statement that was made to oppose any such amendment. Inc.; Chocolate Manufacturers Associa­ at our hearing is that the Market Pro­ While we understand the budget pressures tion; Diamond Walnut Growers; Dole motion Program, according to the For­ facing Congress, It should be noted the Mar­ Fresh Fruit Company; Eastern Agricul­ eign Agriculture Service, has played a ket Promotion Program (MPP) has already tural and Food Export Council Corp; significant role in expansion of· U.S. been reduced by 50 percent in recent years. Farmland Industries; Florida Citrus high-value and value-added agriculture In addition, funding will be reduced by an­ Mutual; Florida Citrus Packers; Flor­ exports. These exports represent 80 per­ other 50 percent under both the House-passed ida Department of Citrus; Ginseng blll and the blll as reported by the Senate Board of Wisconsin; Hansa-Paclfic As­ cent of Market Promotion Program Appropriations Committee. Any further re­ sociates, Inc.; Hop Growers of America; funding, and they rose to a level of $24 ductions would seriously jeopardize the pro­ International American Supermarkets billion in fiscal year 1993, up 15 percent gram's continued success, and threaten the Corp.; International Apple Institute; from 1991 and up a substantial 77 per­ ab111ty of U.S. agriculture to compete effec- International Dairy Foods Association; cent since 1987. July 18, 1994 CONGRESSIONAL RECORD-SENATE 16873 Here are some examples. Breakfast committee I have to strenuously op­ Sunsweet Prunes, Sunmaid Raisins, cereal exports rose from $45 to $253 mil­ pose one of . the amendments that the Dole Pineapple, Gallo Wines, the big­ lion from 1987 to 1993. In 1987, U.S. red subcommittee adopted-as I stated in gest corporations in America. What are meat exports were $1.4 billion. In 1993, my opening remarks-over my objec­ we doing? those export values reached an all-time tion. The most salient point in the GAO high of $3.3 billion. The program as­ Let me just say as an opening com­ report, Mr. President, is found on page sisted the industry in tapping this po­ ment, if you believe in corporate wel­ 1 of the GAO report, and I quote: tential in export markets. The exports fare, vote for the committee amend­ Concerning the need for continued funding, alone in 1992 were equivalent to almost ment. If you believe in handing out the United States Department of Agriculture 6 percent of our domestic beef produc­ Federal dollars to some of the biggest, cannot be sure that in the absence of the tion. The program, in cooperation with wealthiest corporations in America in Market Promotion Program, participants the Alaska Seafood Marketing Insti­ order to export their brand name, then would not have funded these activities by tute, assisted the U.S. salmon industry vote for the committee amendment. If themselves. in increasing canned salmon exports by you believe, as the General Accounting Do you think if Gallo Wines saw a more than 230 percent in our top five Office pointed out in June 1993, that market someplace that they thought markets during that same period-1987 there is absolutely no correlation be­ they could develop, they would say, to 1993. tween the money we are spending on "No, we are not going to try to develop This is particularly important to this program and increased exports, that market unless the U.S. Govern­ note because during this same period of then vote against the committee ment gives us some money?" How silly time world supplies of salmon nearly amendment. can you get? doubled-during the eighties-as a re­ I do not enjoy standing here as chair­ Do you think McDonald's would have sult of farm-raised salmon production man of this subcommittee and telling stayed out of Japan and not taught the in many parts of the world. people who walk in here asking what Japanese the joys of McNuggets if the The Foreign Agriculture Service in­ this is all about, that I oppose my own Department of Agriculture had not dicates that given the prior level of subcommittees amendment. But I do. I said, "Come hither quickly; let us give funding of $200 million under the Mar­ have never been very keen on this pro­ you some money for this program"? ket Promotion Program, these multi­ gram. How silly can you get? pliers suggest that U.S. agriculture ex­ We have $90 million in this bill for it. Well, I will tell you how silly you can ports range from $400 million to $1.4 The Senator from Mississippi correctly get. Again, referring to the GAO re­ billion higher than they would have listed an increase in exports of beef port, here is-as we say in Arkansas­ been without this program. There is from 1986 through 1992. But the General a "Jim Dandy." The General Account­ also a corresponding impact, of course, Accounting Office says they can find ing Office reviewed MPP activities for on producer incomes in our agriculture no particular reason to believe that fiscal year 1989 of the California Raisin sector. Jobs in the processing and those exports did not go up because the Advisory Board. And here is what they transportation industry are also af­ Japanese wanted more beef, and we had found: fected. it. You will not find anything in this In September 1989, the California Raisin The Market Promotion Program is report that says the Market Promotion Advisory Board launched a S3 million Market valuable in allowing U.S. agriculture Program had anything to do with the Promotion Program-funded campaign di­ to compete in the international mar­ increased consumption of beef in rected at marketing raisins as a snack in ketplace in a more effective way, and Japan. Japan. At that time, consumer package sales based on a fairer set of rules. It in­ I might say at this juncture, Mr. of raisins constituted only about 10 percent creases our export opportunity, con­ of Japanese consumption, and the board be­ President, that Japan is easily the big­ lieved an opportunity existed to increase rai­ tributing to our balance of payments, gest beneficiary of this program. They sin sales in Japan. and helps to promote our industrial have been targeted. The increase in To continue: growth and new job opportunities. I what we spend on exports to Japan is hope Senators will consider these very Many problems existed in the campaign. much higher than the percentage in­ The lyrics sung by the dancing raisins in the real practical consequences of voting crease in exports. Japanese television commercial were in Eng­ down the funds in this bill for this pro­ Mr. President, I am from an agricul­ lish. gram. tural State. People in my State use How would you like to see dancing I agree with my good friend from Ne­ this program, and I do not enjoy oppos­ vada that it is a difficult time to be raisins in the United States sing in ing something that my constituents Japanese? You would be just like the balancing competing interests when think is just fine. you do not have enough money to go Japanese were. They did not know Three of my colleagues in a letter to what the raisins were. Some of them around to all the worthwhile programs all other Senators, make the following and activities. But to single this out, said they are chocolates. Some said, statement: no, they are potatoes, because they and to say that it is not necessary or According to the Foreign Agricultural that we can do without it without any Service data, market promotion expendi­ were shriveled and misshapen. And the harm being done to our economy or to tures for export activities by the world's 11 worst part of it was that it scared the our agriculture sector, is not consist­ major agricultural exporting nations totals Japanese children to death. Do you ent with the evidence that has been nearly S500 million annually. This S500 mil­ think I am making that up? Let me go presented to our committee. At our lion total is comprised of both direct Govern­ ahead and read it to you: hearings, the evidence has been over­ ment appropriations and mandatory pro­ Because the television commercial was whelming that these are funds that are ducer levies, or checkoff programs. tested at the same time it was aired, it well spent. They provide a return on Mr. President, we are spending $1 bil­ wouldn't be revised, even though many revi­ lion for export enhancement, and an­ sions were warranted. Moreover, board offi­ our investment that is clear and unim­ cials and others told us that the commer­ peachable. other $100 million this year on this pro­ gram. The program is actually redun­ cial 's dancing raisins figures (misshapen and It is my hope that the Senate will shriveled) frightened children, who were part very carefully consider these factors dant. You .just think about it. We have of the target audience. Furthermore, accord­ before reaching a decision to eliminate a budget of $650 million under a freeze ing to board officials and an independent this important and proven program. and 1,100 requests from other Senators evaluation contracted for by the board, the Mr. BUMPERS addressed the Chair. for important projects in their States contractor experienced major problems in The PRESIDING OFFICER. The that we cannot fund because we do not getting the raisins into retail outlets during Chair recognizes the Senator from Ar­ have the money. We had to squeeze and the promotional period. kansas. squeeze to get within our allocation, To show you what a howling success Mr. BUMPERS. Mr. President, I re­ and then fund this program to help this was, Mr. President, we sold raisins gret that as chairman of this sub- McDonald's, Blue Diamond nuts, to Japan for $1,583 a ton, and it cost 16874 CONGRESSIONAL RECORD-SENATE July 18, 1994 the Market Promotion Program $3,000 know it is unpopular, and I hate to ask When you give Gallo Wine $2 or $4 a ton to ship it. We would have been a you to do it-but if you will do it, we million, do you know what you get lot better off to have given the Japa­ will start getting this country's fiscal back? Nothing. You have just contrib­ nese the raisins. .house in order. He said, that moreover, uted $2 million to Gallo Wine. That is Any time you have free money float­ we will avoid an additional $500 billion what you have done. ing around just for the asking, you are increase in the deficit if you will vote And the GAO said there is no proof going to run into problems like this for this. And we will cut the deficit whatever that Gallo would not have time and time again. every year for the next 3 years for the spent the money anyway. Mr. President, I want to thank the first time since Harry Truman was Mr. President, I conclude my little Senator from Nevada for taking this President. I cannot remember precisely soliloquy and just say to my col­ issue on once again. The most frustrat­ what the figures are, but in 1993 the leagues: Do not vote for this program ing thing about this place is to come deficit was about $275 billion, and it because you are from a farm State. Do here year after year after year, believ­ had been projected to be between $320 not vote for this program because you ing fervently that you might just save and $350 billion. have a letter from a constituent saying the Government a little money_:_ For 1994, the deficit projection was this program is important to us. Vote whether it is on defense or selling rai­ $250 billion, not the $350 billion ex­ against this program because it is an­ sins to Japan-and get trashed in let­ pected after the tax increase and other $90 million the United States ters that come from these businesses, spending cuts. Now, last week, OMB does not need to be spending. corporate America, to Members of the And if you expect someone to say, said it is not going to be $250 billion; it "Well, that is just DALE BUMPERS talk­ Senate saying This is the greatest is going to be $220 billion. And next thing since night baseball. It is going ing," hand them a copy of the GAO re­ year, instead of $175 billion, it is going port. Read this, and then tell me you to cost jobs in our State if you kill the to be $167 billion. Market Promotion Program. are going to vote for it anyway. You would think the American peo­ I yield the floor. Not many Senators will hear this de­ ple would be ecstatic about this rapid bate-and they might not be influenced The PRESIDING OFFICER (Mr. decline in the national deficit. DECONCINI). The Senator from Nevada. if they had-but I know how they will So when OMB comes out and says the vote and why. I know there is a consid­ Mr. BRYAN. Mr. President, I know deficit this year is going to be $30 bil­ that my colleague from North Dakota erable crusade going on in America by lion less than we thought and next year the people who enjoy the benefits of desires to speak on another issue and I $12 to $15 billion less than we thought, will be very brief. this program. They are writing their it appeared on the second page of the Let me just indicate to my col­ Senators, and. it just becomes impos­ Washington Post business section and leagues that because of the procedural sible to stop a program. was described in two sentences. way in which this issue is framed, it Let me digress a moment to talk In short, as long as the deficit is de­ about the deficit. It is a curious thing, was not necessary nor in order to offer the deficit. Some people love it because clining, it is not news and nobody an amendment so that Senators who it is a good issue. They do not want to cares. But I will tell you what the were interested in addressing this issue do anything about it; they just want to other disastrous thing and dishearten­ might appear as cosponsors. ing thing is. When my colleagues see in I want to acknowledge for the Senate talk about it. And so last summer, the that Senator JOHN KERRY, Senator Senate did something which I thought the Washington Post and the Wall Street Journal that the deficit is going HARRY REID, Senator HANK BROWN, and was one of the most important things Senator JOHN CHAFEE, all of whom sent that happened since I have been here: down, they say what is $90 million? That does not amount to anything. letters to their colleagues urging them, We raised taxes on 1.2 percent of the as I have, to reject this program, would wealthiest Americans and cut spend­ And I can make a few of my constitu­ ing. ents happy that they will get a little have been cosponsors of an amendment I remember when Ronald Reagan ran dab of this money and I can answer my if that procedure would have been in mail by saying I supported that pro­ order, and I want that to be noted. for President in 1980 all you could hear I associate myself with the com­ was "deficit reduction" and "those tax­ gram you asked me to support. The first thing you know you will be ments made by my able colleague, the ers and spenders." And at the end of his senior Senator from Arkansas, and first term, the deficit had gone from seeing the deficit back on the front page of the Washington Post because it agree with him. $75 billion-Jimmy Carter's last defi­ I do not know how we can support cit-to $210 billion. At the end of Ron­ is going to be going higher than the projected figures. and justify a program like this when ald Reagan's second term, it was up be­ there are so many other unmet needs tween $270 and $300 billion. The Amer­ Mr. President, 20 percent of this money went to foreign-based firms. Did in the country-and indeed the money ican people were not blaming Ronald goes-I would say to my colleague from Reagan, they were blaming Congress, you know the Department of Agri­ culture does not even have a test to de­ Arkansas, there are 240 of those foreign and particularly the Democrats in Con­ companies right here that are depicted gress. I have never understood that, termine whether the product is made and processed in the United States or in this chart, and we have talked ex­ but that is a fact. When George Bush tensively about the major businesses in left office, the deficit actually soared not? They just take it for granted when someone writes and says please send America, one of which had a net profit to $310 billion. of more than $1 billion who continues President Clinton says there are only me a couple million dollars so I can promote raisins in Japan that we grow to receive this corporate welfare. two ways to deal with this deficit: one I hope my colleagues will reject this. is to cut spending, and the other one is in California. The Department does not I yield the floor, and I thank my to raise taxes. Our very presence here know if they are grown in Mexico or friend from North Dakota for his indul­ this afternoon shows you how popular California. gence in this and vital observation. it is to cut spending. It is almost im­ You know there is one other thing as The PRESIDING OFFICER. The Sen­ possible. My brother calls and says, chairman of the Small Business Com­ ator from North Dakota is recognized. "All you people in Congress think mittee that gripes me about this pro­ Mr. DORGAN. Mr. President, I ask about is getting in my hip pocket." I gram. If we want to spend $90 million unanimous consent to be allowed to do not think about his hip pocket or to help people export, it ought to be speak for 10 minutes as if in morning anybody else's. I am concerned about going to people who cannot fend for business. the deficit, which is an omen of unbe­ themselves, who do not have the expe­ The PRESIDING OFFICER. Without lievable magnitude for disaster for this rience and expertise on how to export. objection, it is so ordered. country. In short, we ought to target it toward Mr. DORGAN. Mr. President, I appre­ So, last year President Clinton said if small business, help people in this ciate very much the managers of the you cast this very unpopular vote-I country grow and create more jobs. bill. July 18, 1994 CONGRESSIONAL RECORD-SENATE 16875 CHILD ABUSE ON NORTH DAKOTA The social worker handling Tamara's another State with a relative. The eld­ INDIAN RESERVATIONS case was, at the time, burdened with est child is pregnant. Another daughter Mr. DORGAN. Mr. President, I held a 200 other cases. The social worker sim­ is in treatment for inhalant abuse and hearing a few weeks ago on the subject ply lacked the opportunity to keep attempting to start two fires. And the of child abuse on Indian reservations in track of which foster home would be a remainder of the children are placed in this country, and I wanted to talk just safe· haven for a 2-year-old girl. Not various other homes on the reserva­ a few minutes today about that sub­ while managing a 200 person caseload. tion-this is all about one family. ject. So this little 2-year-old was placed, by Another case involves an 18-year-old As I do, let me be clear that the issue the child protection system, in a ter­ girl who remains in the child welfare of child abuse is not only an issue on ribly abusive environment, was beaten system, due to limited mental func­ Indian reservations but is a compelling severely, and no one was able to pro­ tioning ability. She entered the system and gripping issue of enormous propor­ tect her. at age 1. Her father had killed his son. tions everywhere. But it especially ter­ Tamara survived. I expect she will be As a result, the parental rights were rorizes many youngsters on Indian res­ scarred for life. And I, as a result of terminated, and this child and her sib­ ervations precisely because of the meeting Tamara that day on the lings all entered the foster care sys­ rampant poverty and associated prob­ Standing Rock Reservation, became in­ tem. This child, 18 years of age, has lems on those reservations. I wanted to volved in the issue of child abuse. I been in 15 foster homes, finally re­ share with my colleagues some of the helped that reservation staff its child turned to the reservation, and recently results of that hearing. protective services with 12 additional was a victim of a brutal rape in which Let me tell you about a boy named social workers. In that instance, we she nearly did not survive. The child Joe, who testified at my hearing. Joe took action that is making a dif- has now been placed in a protective en­ and his brothers and sisters hid when ference. · vironment in another part of my State. their mother returned home at night in At my recent hearing in North Da­ A 3-year-old child was beaten with a a alcoholic drunken stupor. They kota, I heard again, the tales of trag­ hanger by the parent's significant feared that when she found them she edy about defenseless youngsters. other. That child entered foster care, would beat them, as she almost always There is something fundamentally where she remains, because the parent did when she had been drinking. wrong. These are children for whom we continues to remain with the signifi­ Joe testified that he and his siblings are responsible. We have a trust re­ cant other, who, incidentally, has re­ were taken from their mother after she sponsibility for Indian children, and we ceived no significant counseling and had stopped feeding and clothing them. are not meeting it. apparently no citation for beating the But the foster homes they were placed The social services director from child with the clothes hanger. in were even worse. The youngest child Fort Berthold testified at my hearing An 11-year-old child entered the fos­ was locked away in a room, left to that escalating problems of child abuse ter system when she was 3. Her most starve, while the foster parents drank and alcoholism on the reservations recent placement centers on the child themselves into oblivion. have become a pattern from generation hallucinating from repeated inhalant Joe and his brothers and sisters were to generation. She said that with each abuse. This is an 11-year-old child. She physically abused by those foster par­ new generation, the tribe is experienc­ reportedly was involved in inhalant ents, and one sister repeatedly tried to ing more severe manifestations of alco­ abuse with her mother. The child is kill herself. holism, child abuse, and incest, accom­ now in a group home, the father is Also testifying at my hearing was a panied by actual deaths by alcohol-re­ homeless, and the mother has simply young woman named Geraldine, from moved away. the Turtle Mountain Chippewa reserva­ lated car crashes, domestic violence, Finally, the story of a 15-year-old tion. She told me of being abused by al­ child abuse, suicide and, yes, homicide. child who began informing the child coholic parents so frequently, that she And she said-and this is not a sur­ welfare system she was being sexually turned to alcohol at age 8 for escape. prise-there are only limited thera­ abused by her mother's boyfriend. At age 15 she was an alcoholic. peutic services available at Fort. Since the reporting began, the child A social worker from one reservation Berthold. has been in several alcoholic treatment in North Dakota testified that in a 2- One social services director began her facilities and not until this last place­ week period on that rather small res­ testimony weeping and sobbing. She ment, which is in another State, has ervation eight children attempted sui­ said that finding transportation to the child received any services at all to cide. drive an individual to treatment or help her deal with the sexual abuse. Another social worker told of seven counseling is a major challenge. She The alleged perpetrator of the incident teenage boys locked in a prison cell de­ said that files are on the floor of re­ has never been charged, and the moth­ signed for two adult men because they ported incidents of child abuse, and . er has never received any counseling had gotten into trouble and there was that social workers have no idea either for this tragedy. nowhere else to put them, and sending whether the files have been inves­ You know, I suppose for some, this is them to an abusive household was not tigated, whether children at risk are almost a tedious list of ongoing trage­ the answer. So seven teenage boys, she living in abusive households. She said dies. But they are tragedies nonethe­ said, are locked in jail in a cell built that 13 employees have come and gone less. for two adults. in the child protective offices of that Somewhere tonight a young child­ These are painful case histories al­ reservation in 2 years, creating chaos age 2, age 4, age 6-is cowering in a most too cruel for one lifetime let and little continuity. closet in fear of being beaten or sexu­ alone the tender years of childhood. I asked that social services director ally abused. This child may well have I have worked on this issue for a to share with me a representative sam­ already been reported to the authori­ number of years. I recall going to the ple of the kinds of cases with which she ties as someone who has been abused or Standing Rock Sioux Reservation and must deal. Let me share with you some beaten badly. And this child may be a meeting a little girl who looked very of these case histories. name simply on a folder lying on the troubled. Her name was Tamara A two-parent household on the res­ floor somewhere, never investigated Demeres. About 3 years earlier, Ta­ ervation included several children, and never responded to. mara, who was living with her grand­ ranging from 5 to 17 years of age. The That child is our responsibility. We father Reginald Burnthorse, was placed father sexually abused one of the must, it seems to me, find a way to in a foster home. She was 2 years old at daughters and is now in Federal prison. give hope to the hopeless and help to the time. The foster parents with The mother, an alcoholic, has since the helpless. whom she was placed beat her severely, lost custody of all of the children be­ Child abuse on Indian reservations broke her nose and arm, and pulled out cause she has severely neglected them. stems from the terrible problems na­ her hair from its roots. The victim of the abuse is now living in tive Americans face today-despair, 16876 CONGRESSIONAL RECORD-SENATE July 18, 1994 poverty, self-destruction. Solving this The amendment is as follows: region, what we could do as a nation, national tragedy is a huge undertaking On page 52, line 23, after "$47,500,000," in­ to develop better resources and a bet­ that we can only begin to solve if we sert the following: "of which $1,000,000 shall ter understanding of the options, the start right away. be available to carry out the Northern Great opportunities that we have available to I do know that every child in Amer­ Plains Rural Development Act (if enacted); us. ica belongs to all of us; because our and". As we looked for answers, as we children are our most precious natural Mr. DASCHLE. Mr. President, today looked for that strategy, we found that resource. I am offering an amendment to the fis­ the Sou th had done something very I am hoping that we will find ways in cal year 1995 Agriculture appropria­ similar in devising a regional approach the appropriations bills to provide the tions bill (S. 4554) to appropriate $1 to this economic development problem. resources for the social workers, for million to implement the Northern Our idea is patterned after the success­ the caseworkers, for the therapy, for Great Plains Rural Development Act ful Lower Mississippi Del ta Commis­ the treatment, for the medicine, for (S. 2099). These funds will be used to sion which the chairman of the Agri­ the foster homes, and for all the things create a commission to study and pre­ culture Appropriations Subcommittee that are necessary for us to give hope pare plans for rural development in the and other distinguished Members of to some young child who today has no Northern Great Plains States of South this body worked so diligently to es­ hope. Dakota, North Dakota, Nebraska, tablish. This is a pro bl em of enormous pro­ Iowa, and Minnesota. The Northern Several years ago, in fact in 1988, the portions. It is a problem that is costing Plains States share common problems Lower Mississippi Delta Commission children their lives. that are perhaps most notably mani­ was passed in an effort to create this I have been working with the staff of fested in the outmigration of our regional strategy, in an effort to look an appropriations subcommittee to see young people. All too often these most at effective ways to deal with attrition, if we cannot at least take one small valuable of our natural resources are more effectively with the problems of step in addressing this issue this year. being farced to choose between profes­ the lack of competition in our small But we need to take a larger step, and sional opportunities outside the area or communities, the belief that our small then an even larger step than that, if consignment to low-wage jobs in their communities really ought to have the we care about the children living on In­ home communities where they would same opportunities as do the large dian reservations who are now the vic­ prefer to live. ones. tims of abuse and neglect. In so many of our rural communities, The Mississippi Del ta Commission Mr. President, I yield the floor, and I our young people are gone. Our great­ has been a big success in part because again thank the managers for the time. est harvest every graduation is the of the involvement of the chairman and Mr. President, I make a point of harvest of talent, the harvest of youth the ranking member currently in the order that a quorum is not present. and vitality. Chamber. They realized back then, as The PRESIDING OFFICER (Mr. · The only problem with that harvest they do today, that the regional ap­ CAMPBELL). The clerk will call the roll. is that the custom combine crews that proach to economic development, the The legislative clerk proceeded to come in are businesses from every part regional approach to the pro bl em call the roll. of the country and the world. shared by all of the States in the Mr. DASCHLE. Mr. President, I ask That concern continues to be very South, was really one approach that unanimous consent that the order for pervasive among all the States in rural ought to be looked at elsewhere. the quorum call be rescinded. America but in particular in the North­ As a result of that realization, Mr. The PRESIDING OFFICER. Without ern Great Plains. It is a common prob­ President, the five States in the Upper objection, it is so ordered. lem, a problem that is associated with Great Plains-Minnesota, North Da­ North and South Dakota, Nebraska, kota, South Dakota, Iowa, and Ne­ Iowa, Minnesota, and other States. braska-joined together several AGRICULTURAL, RURAL DEVELOP­ We all have, in various ways, ex­ months ago to introduce and pass legis­ MENT, FOOD AND DRUG ADMIN- pressed our concern about that prob­ lation which created the Northern ISTRATION, AND RELATED lem for a long period of time. Gov­ Great Plains Rural Development Com­ AGENCIES APPROPRIATIONS ernors have come to us to talk about mission. All the Senators who rep­ ACT, 1995 the mutual concern that they have, the resent those five States were cospon­ The Senate continued with the con­ mutual need that they have to address sors of this legislation. It passed the sideration of the bill. it in ways which go beyond the borders Senate unanimously last month. It is Mr. DASCHLE. I ask unanimous con­ of any one State. now pending in the House, and our ex­ sent that the committee amendments And so it came to us as an issue, as pectation is that at some time in the be laid aside. all of us have come to grapple with eco­ not too distant future, the legislation The PRESIDING OFFICER. Is there nomic development. It is not just an will pass over there. It recognizes the objection? The Chair hears none, and it outmigration issue. It is a very serious common problems and the need for a is so ordered. concern about the economic con­ common strategy. It recognizes that AMENDMENT NO. 2302 sequences of the loss of our young peo­ the Lower Mississippi Delta Commis­ (Purpose: To make funds available to carry ple, the loss of opportunities, the loss sion has done an extraordinary job in out the Northern Great Plains Rural De­ of the vitality of our towns. giving some guidance to the South as velopment Act) Each Northern Plains State is con­ they begin to approach their pro bl ems Mr. DASCHLE. I have an amendment fronting separately problems that do in a more collective way. The Northern at the desk. I ask for its immediate not stop at geographic borders but are Great Plains Rural Development Com­ consideration. common to the Northern Plains. There mission will bring together private and The PRESIDING OFFICER. The is growing recognition that only public interests for the common goal of clerk will report the amendment. through a cooperative, regional ap­ improving the rural economy of our The legislative clerk read as follows: proach will we be able to most effec­ area. And, like the Lower Mississippi The Senator from South Dakota [Mr. tively meet the challenges of the 21st Delta Commission, this new commis­ DASCHLE], for himself and Mr. KERREY, pro­ century. sion will not go on forever. It will be poses an amendment numbered 2302. And so for the last couple of years, as sunsetted after 2 years. Mr. DASCHLE. Mr. President, I ask we have begun to try to address these Our hope is to repeat in the Northern unanimous consent that reading of the pro bl ems in a more meaningful way, we Great Plains what they have been able amendment be dispensed with. concluded that really what we needed to do effectively in the Mississippi The PRESIDING OFFICER. Without to do was devise a strategy, a strategy Delta region. And so in passing the leg­ objection, it is so ordered. that looked at what we could do as a islation to create the Commission, we July 18, 1994 CONGRESSIONAL RECORD-SENATE 16877 now realize, of course, that in order to Mr. BUMPERS. We have no objection high labor and freight costs, and higher expedite this process, to get it under­ on this side, Mr. President. than average cost of living. Rural Alas­ way just as quickly as we can, we also The PRESIDING OFFICER. Is there kans also face regionwide high unem­ need to provide the Commission with a further debate on the amendment? If ployment, rampant social problems, minimal level of funding. So that is not, the question is on agreeing to the high crime rates, and economic devel­ really what my amendment does. It amendment of the Senator from North opment obstacles that hinder enter­ provides $1 million to implement the Dakota. prise development. These problems are Development Act, the Northern Great The amendment (No. 2302) was agreed magnified for rural Alaskans, many of Plains Rural Development Act, S. 2099, to. whom are Natives, because of the iso­ and to allow the Commission to be im­ Mr. DASCHLE. Mr. President, I move lated location of villages, most of plemented just as quickly as it be­ to reconsider the vote by which the which are not connected by roads. comes enacted. This legislation would amendment was agreed to. The Village Initiatives Program will then take $1 million from the rural Mr. BUMPERS. I move to lay that help small business men and women grant funds available and earmark motion on the table. learn skills necessary to successfully them specifically for the Northern The motion to lay on the table was compete in the marketplace. This pro­ Great Plains Rural Development Com­ agreed to. gram ensures that rural business own­ mission. Mr. BUMPERS. Mr. President, I sug­ ers are able to create and execute busi­ I emphasize that it would only do so gest the absence of a quorum. ness plans, to understand financial in­ if the legislation is enacted. So we are The PRESIDING OFFICER. The formation, operate ongoing successful not here appropriating funds without clerk will call the roll. businesses, and devise market strate­ sufficient authority. It would only take The legislative clerk proceeded to gies. place if the legislation were enacted, call the roll. The assistance provided in this pro­ and, indeed, we hope it will be so en­ Mr. BUMPERS. Mr. President, I ask gram is graduated according to skill acted. unanimous consent that the order for level and it allows for individual The Northern Great Plains Rural De­ the quorum call be rescinded. progress over time. This program also velopment Commission will not just The PRESIDING OFFICER. Without allows for client differences that come produce another study to be placed on objection, it is so ordered. fro:m experience and knowledge. In­ a shelf to collect dust. It will achieve UNANIMOUS-CONSENT AGREEMENT stead of offering solutions to problems, tangible results through the develop­ Mr. BUMPERS. Mr. President, I ask the program's technical assistance pro­ ment of a 10-year rural development unanimous consent that at 2:30 p.m., vides a framework in which the user strategy and a blueprint for the region July 19, the Senate vote on or in rela­ can choose and apply a solution. When to implement its findings region-wide. tion to the committee amendment be­ one skill is mastered the client can Mr. President, if the Senate approves ginning on page 86, line 9; that there be move on to a new and more advanced this amendment today, and the House no second-degree amendments in order skill. Also, when clients learn this new concurs with our action, I pledge to re­ thereto, and that the time tomorrow knowledge they can pass on these turn in 2 years to report on the strate­ between 2:15 and 2:30 be for debate on newly acquired skills to others in the gies and initiatives developed by the the committee amendment with the community. These skills will be useful Commission. That report will reflect time equally divided and controlled in throughout their lives and will the usual form, and that the amend­ strengthen the human resources of the personal, organizational, and civic their community. aspirations of over 10 million people; ment be laid aside until 2:15 p.m. to­ morrow. At this time, I am informed, there is thousands of farms, businesses, and no such program dedicated to the needs factories; and hundreds of commu­ The PRESIDING OFFICER. Without objection, it is so ordered. of rural small businesses and there are nities. I am confident that the legacy no assistance programs designed for of the Northern Great Plains Rural De­ RURAL BUSINESS ENTERPRISE GRANT them. This program meets the RDA's velopment Act will be one of which the Mr. STEVENS. Mr. President, I rural business development goals; and entire Senate will be proud. would like to bring to the attention of so again I ask both Senators' support I really believe that this is an oppor­ my colleagues a proposal for a rural in obtaining special consideration from tunity to demonstrate, not only in the business enterprise grant through the the Department of Agriculture for the five States of the Northern Great RDA which will help small businesses RDA to fund this highly useful pro­ Plains but certainly in all rural re­ in rural Alaska. I received this pro­ gram to help rural Alaskan small busi­ gions, that a collective strategy, an ac­ posal from the Alaska Village Ini tia­ nesses. tion-oriented plan that recognizes com­ ti ves but it arrived late in the appro­ Mr. COCHRAN. Mr. President, I agree mon problems, is the only way that priations process. I ask my colleagues with my colleague from Alaska. Rural rural communities are going to address from Mississippi and Arkansas to urge small businesses in Alaska merit as­ outmigration and other rural problems the Department of Agriculture to give sistance and the Alaska Village Initia­ effectively. special consideration to this proposal. tives could be very helpful. I urge the So it certainly merits the support of It involves a grant to the Alaska Vil­ Department of Agriculture to give con­ my colleagues. lage Initiatives to establish a technical sideration through the RDA, to the I yield the floor. assistance program to provide rural Alaska Village Initiatives proposal The PRESIDING OFFICER. Who small businesses with management, that the Senator from Alaska dis­ seeks recognition? marketing, finance, and operational cussed. I can see how this program can Mr. COCHRAN addressed the Chair. skills. A goal of the project will be to help develop marketable skills for The PRESIDING OFFICER. The Sen­ give assistance to rural businesses these businesses. ator from Mississippi [Mr. COCHRAN] is statewide, especially communities with Mr. BUMPERS. Mr. President, I too, recognized. high unemployment rates. Some of the like my colleagues, feel that this is a Mr. COCHRAN. Mr. President, we villages in Alaska have unemployment worthwhile program to help rural Alas­ have had an opportunity to look at this rates as high as 60 to 80 percent. kan ·small businesses. I urge the De­ on our side. We note it is a bipartisan The Alaska Village Initiative has ex­ partment of Agriculture to evaluate initiative. It is also, in addition, to perience helping rural Alaskans and carefully the proposal submitted by the fund the enactment of the legislation they have identified special difficulties Alaska Village Initiatives and give the that would create the commission, or faced by rural business owners. Some proposal the same status and consider­ recognizes it in Federal law. of these difficulties are a lack of cap­ ation as the committee gave to other We have no objection to the amend­ ital, inadequate infrastructure and programs mentioned in our subcommit­ ment and we recommend to the Senate communication, lack of business expe­ tee's report to assist local businesses in that it be approved. rience and skills, limited markets, growing and creating jobs. 16878 CONGRESSIONAL RECORD~SENATE July 18, 1994 Mr. STEVENS. Mr. President, I The report accompanying this legis­ FDA activities are being looked at as thank both of my colleagues for this lation states that "the Committee be­ possible candidates, with the exception accommodation. lieves meat and poultry inspection of activities covered by specific current FDA USER FEES services are too important to be left to or proposed user fee authority. Mr. BUMPERS. Mr. President, I will assumed funding." I would argue that Mr. BUMPERS. I find it very difficult shortly enter into a colloquy with Sen­ such FDA functions as assuring the making this recommendation for FDA ators KENNEDY, KASSEBAUM, HATCH, safety of the Nation's blood and organ user fees for exactly the reasons that and COCHRAN. The colloquy deals with supply, assessing the safety and effi­ have been outlined here today. In the a provision in our bill which requires cacy of medical devices, and ensuring past, we have rejected these user fees, the Food and Drug Administration to that Americans have timely access to and we have urged past administra­ raise $151 million in user fees from the new, potentially life-saving tech­ tions not to include them in their industries they regulate. nologies, and ensuring the safety of the budgets until they are specifically au­ First, I want to state that I have Nation's food supply are also too im­ thorized by the authorizing commit­ been concerned by this issue, and we portant to be left to assumed funding. tees. have rejected unauthorized user fees in We are all sympathetic to the very As you can well imagine, we had to the past. But because of the budget tight allocation under which the sub­ consider many competing demands in constraints this year and the demands committee worked and to the many trying to agree on an appropriations on the subcommittee for funding, we competing demands for funds. I would bill that could meet the targets with had no choice except to raise $151 mil­ note, however, that the House version which we were presented. I intend to lion in unauthorized FDA user fees. of this legislation does not include work in conference committee to find I might also note that the President FDA user fees, and I would encourage the resources necessary for the FDA to had requested $252 million in user fees. my colleagues to recede to this posi­ meet its many responsibilities without In any event, Senators KENNEDY, tion in conference. relying on new unauthorized user fees, KASSEBAUM, and HATCH have raised se­ Mr. HATCH. I have a range of con­ if at all possible. rious and legitimate questions and con­ cerns about this language and the neg­ Mr. COCHRAN. I concur with the cerns about the ability of the FDA to ative impact it is sure to have if en­ concerns expressed by Senators KASSE­ actually raise this amount of money in acted. While I will explain these con­ BAUM, KENNEDY, and HATCH on the FDA the short period of time in which they cerns in more detail later, let me say user fee issue. New user fee collections would have to raise it. now I am extremely hopeful that this should not be used to reduce FDA's di­ I share their concerns and we will do can either be corrected on the floor or rect appropriations requirement, as the our very best, of course, to come up that my colleagues will work in con­ President's budget proposes, unless with a solution to this problem and at ference to see that the House position separate statutory authority to estab­ the same time meet what all of us con­ on FDA user fees is retained. lish and collect such fees has been en­ sider to be our legitimate concerns. Mr. KENNEDY. It is our understand­ acted into law. This is an issue which Mr. KENNEDY. Mr. President, Sen­ ing that since the proposed $151 million should appropriately be addressed by ators KASSEBAUM, HATCH, and I wish to in user fees replaces direct appropria­ the Cammi ttee on Labor and Human engage in a colloquy with our esteemed tions for the FDA, the resulting level Resources, which has jurisdiction over colleague with regard to provisions in of direct appropriations in the legisla­ this matter. It is my hope that the con­ the legislation before us today author­ tion may be too low to allow the FDA ference committee will be able to pro­ izing the Food and Drug Administra­ to collect prescription drug user fees vide the necessary funding for the FDA tion [FDA] to collect $151 million in under the Prescription Drug User Fee without relying on collections from un­ user fees from FDA-regulated indus­ Act-legislation that the administra­ authorized user fees. tries. tion has hailed as a landmark achieve­ Mr. COATS. Mr. President, I share We recognize the extraordinarily dif­ ment. the concerns of my colleagues regard­ ficult funding constraints under which The Prescription Drug User Fee Act ing language in the Agriculture, Rural the chairman and his colleagues devel­ requires that appropriations for the Development, FDA and related agen­ oped the fiscal year 1995 appropriations FDA must be equal to or greater than cies fiscal year 1995 appropriations bill measure we are considering today. Nev­ the appropriations for fiscal year 1992, which directs the FDA to collect $150.8 ertheless, we are very troubled by pro­ multiplied by an adjustment factor. million in general purpose user fees. I visions in H.R. 4554, as reported by the The proposed appropriation of only have heard numerous individuals and subcommittee, authorizing the FDA to $687,733,000-the net spending authority organizations in Indiana who are op­ collect $151 million in user fees from after all user fees are deducted-is far posed to these fees----not all of whom the food, medical device, and other below this threshold. would be subjected to the fees them­ FDA-regulated industries. Mr. COCHRAN. I agree that there is a selves. Mrs. KASSEBAUM. It is important serious question as to whether FDA The Food and Drug Administration to stress that the user fee provisions could raise the level of new FDA user has the responsibility of protecting the are a major change in public policy and fee collections assumed in the Presi­ public health and safety. Therefore, should first be considered and, if appro­ dent's fiscal year 1995 budget. payment for these services should be priate, authorized by the Committee on The administration has not submit­ made by the general public-those who Labor and Human Resources, which has ted a legislative proposal to the Con­ benefit from the services. I have very jurisdiction over the Food and Drug gress to establish and collect these strong concerns regardinir the indis­ Administration [FDA]. fees. I am troubled by the fact that criminate collection of fees from com­ It is my understanding that the FDA while $252 million in collections from panies or industries which do not bene­ has neither a plan nor an infrastruc­ new user fees are proposed in the Presi­ fit from their relationship with the ture in place that would allow it to col­ dent's fiscal year 1995 budget request Food and Drug Administration. lect $151 million in unauthorized user for the FDA, administration officials FDA policy and Congress authorize fees in fiscal year 1995. If these user are unable to tell the Congress how the collection of user fees when the fees remain in the final version of this FDA will levy the fees assumed, what company or industry upon which the legislation, the agency will be forced to the fees will be, or who they affect. fee is imposed is specifically benefiting institute significant layoffs, jeopardiz­ FDA indicated in its official testimony from those fees. Not all industries ing vital public health programs and to the subcommittee that there are which fall under FDA jurisdiction will reversing recent progress the agency many complex issues associated with benefit from the collection of user fees. has made in ensuring the timely proc­ collecting substantial new user fees Therefore, these user fees amount to an essing of applications for the approval and that there is not yet a proposal to additional tax on industries which will of new technologies. accomplish this but that virtually all not benefit-this is not fair. July 18, 1994 CONGRESSIONAL RECORD-SENATE 16879 In addition to the economic defi­ I believe that the Labor and Human In Utah, research funds have been ciencies in this decision, I have doubts Resources Cammi ttee needs to com­ utilized on projects if\VOlving invader that the Food and Drug Administra­ plete a careful and in-depth analysis of plants, riparian issues, and research on tion can efficiently collect these fees, the present problems facing the FDA utilization standards. There is no new fees from new industries, without and the industries it oversees. How we doubt in my mind that the heal th and an increase in the size of the food and protect the public and assure that new weal th of the resource-our range­ drug administration. Even so, it is not drugs and medical devices get to the land-will be threatened if this re­ fair to place this burden on the Food market is important to health care re­ search does not continue because funds and Drug Administration when there form in this country. Thus, we do not are not provided in this year's funding have been no hearings or other over­ want to impose user fees in a way that bill. sight functions from the appropriate might harm this process. I would like to encourage my col­ authorizing committee. Mr. FORD. I would like to underscore leagues participating in the upcoming The FDA council, a coalition of much of what my colleagues have said conference to accept the House posi­ consumer groups, professional soci­ regarding user fees to fund FDA activi­ tion on rangeland research grants. May eties, and industry, expresses it well ties. I have many reservations about I inquire of my colleague from Arkan­ when they say that, this type of approach to solving short­ sas, the chairman of the subcommittee, Any proposed user fees for the FDA should falls in funding and further its implica­ if he can tell me whether this position require analysis by the appropriate authoriz­ tions in the larger debate over the could be pursued in conference. ing committees in the House and Senate. funding and structure of several impor­ Thoughtful deliberation went into writing Mr. BUMPERS. I appreciate my col­ tant operations at the FDA. The FDA league from Utah expressing his sup­ user fees for the drug industry and the same is charged with a wide range of deci­ is occurring. for the medical device industry. port for the continued funding of It is clear the same should occur if user fees sions that in some cases are between rangeland research grants by the De­ are to be applied to other FDA regulated in­ life and death. The operations of this important agency should not be subject partment of Agriculture. I am pleased dustries. to learn that these grants have proven Mr. DURENBERGER. Mr. President, to hasty decisions about prospective funding mechanisms. I thank my col­ their effectiveness in his State. While I I would like to express my support for am not in a position to indicate what the comments my colleagues are mak­ leagues for allowing me to join them in encouraging a remedy to this situation will happen in conference on this or ing here today. I oppose the provision any other subjects in this bill, I can as­ in H.R. 4554 that directs the Food and in conference. This user fee issue is not an approach that should be entered sure my colleague that I will review his Drug Administration to collect $150 comments carefully on this matter and million of its budgetary request of $997 into lightly if at all. Hearings should be held, experts called in and the whole keep them in mind during conference. million through general-purpose user Again, I appreciate his comments on fees. matter exposed to the bright light of As I stated last year on this topic, public debate. this issue. there are many reasons why I oppose RANGELAND RESEARCH GRANTS Mr. HATCH. I thank my colleague. I this provision. I am not generally op­ Mr. HATCH. I rise to express my con­ ask unanimous consent that a partial posed to user fees for recipients of pub­ cern regarding one small provision of list of projects directly related to lic services; however, revenue raising the bill before us today, the Depart­ rangeland research currently under of this magnitude by an agency ment of Agriculture appropriations bill way at Utah State University be print­ charged with critically important regu­ for fiscal year 1995. Although minor, ed at the end of my comments. These latory responsibilities should not be this item will have a significant im­ projects are not all funded through the imposed cavalierly. pact on specific agriculture research rangeland research appropriation to Before they are imposed, I believe we projects being undertaken in Utah. CSRS, but many of them are related di­ need to undergo a debate by the com­ I refer to the section of the report ac­ rectly to projects which are funded mittee of jurisdiction-Labor and companying the bill that provides through the agency's competitive Human Resources-as well as public funding for rangeland research grants­ grants program. comment to determine how best we section 1480-for the Cooperative State There being no objection, the partial should proceed. Research Service [CSRSJ. In his budget list was ordered to be printed in the I am also concerned that this provi­ request, President Clinton requested an RECORD, as follows: sion statutorily precludes implementa­ amount of $475,000 for these CSRS RANGELAND RESEARCH AT UTAH STATE tion of the Prescription Drug User Fee grants. This amount was equal to last UNIVERSITY-PARTIAL LIST ' Acts of 1992. That bill triggers user fees year's appropriation and was provided Determining and improving the carrying for prescription drug manufacturers in this year's House bill. Unfortu­ capacity of private and public rangelands. only if the appropriations stay above a nately, the Senate subcommittee did Modes and mechanisms of Scarpie infec­ designated appropriations baseline. not provide funding for these grants. It tion in sheep. Biological control of rangeland pests. The purpose of that provision was to has created a situation where the con­ Germ cell and embryo development in prevent precisely what is happening tinued existence of these grants, which range cattle. here-the assessment of user fees as a are supported by the administration Improving ruminant utilization of low substitute for adequate appropriations and the House, is threatened by this quality forages via genetic section. for the Food and Drug Administration. body. Evaluation of grazing systems and animal Imposing user fees on medical de­ Last week, Interior Secretary Bruce response to southern Utah forested ranges. vices also creates problems. If we im­ Babbitt stated at a Senate field hear­ Grazing livestock nutrition and manage­ pose these fees, if should only occur ing held in Richfield, UT, that "grazing ment to improve production efficiency. Improvement of grass and legume forages. after a full airing of the how these fees is * * * an enduring, important, posi­ Improving stress resistance in forages of will address the backlog of device ap­ tive part of the West's landscape." An the western U.S. plications and how these problems will important component of the positive Watershed management and nutrient com­ be prevented into the future. Hearing impact from grazing is the research position and concentration in rangeland on this topic have, as yet, not been that precedes the implementation of soils. held. proper grazing techniques and resource Control of toxic and noxious weeds on I would also like to emphasize Sen­ management practices of our range­ rangelands. ator KASSEBAUM's point that FDA does lands. Since the Secretary has recog­ Sustainable agriculture systems in range not have the infrastructure in place and ranch management. nized the importance of grazing to the Reducing riparian damage through animal that would allow it to collect $150 mil­ heal th of our rangelands, I believe it is social learning. lion in user fees. I must ask, how can appropriate for the Senate to provide Stability of plant communities in sage­ we expect to obtain these funds if we the funding to keep the rangeland re­ brush dominated land. don't know how to collect them? search alive. Rangeland monitoring and assessment. 16880 CONGRESSIONAL RECORD-SENATE July 18, 1994 The spread 'of Utah Juniper on Utah desk deals with the disaster assistance crops as a result of the flooding. While ranges. that is needed relative to the flooding no dollar figure is attached to this pro­ The economics of pasture management that has occurred in the States of Ala­ vision, it is understood that such sums practices in Utah. bama, Georgia, and Florida. as necessary will be appropriated to Mr. BUMPERS. Mr. President, I sug­ The President has already announced meet these needs. Additionally, $25 gest the absence of a quorum. that there would be the same disaster million will be made available in emer­ The PRESIDING OFFICER. The program dealing with the floods in gency farm loans to farmers who have clerk will call the roll. Georgia, Alabama, and Florida as was suffered major losses. I have personally The legislative clerk proceeded to used pertaining to the Mississippi Val­ talked to President Clinton about this call the roll. ley flooding last year. matter, and he has assured me that Mr. HEFLIN. Mr. President, I ask My amendment addresses some par­ farmers in the Southeast will be treat­ unanimous consent that the order for ticular needs relative to rural America, ed just like the farmers in the Midwest the quorum call be rescinded. particularly where there has been were last year. I commend the Presi­ The PRESIDING OFFICER. Without flooding and other disasters. dent and OMB on behalf of the farmers objection, it is so ordered. The money that we seek here in Mr. HEFLIN. Mr. President, I wish to in this tri-State region for their assist­ these programs will enable the people ance in this matter. send to the desk an amendment. of South Alabama, South Georgia and The PRESIDING OFFICER. The This bill also includes $15 million for Chair will inform the Senator from North Florida to put their lives back housing repairs in flood affected areas. Alabama he needs to seek unanimous together in the aftermath of the flood I also have a commitment from the ad­ consent to set aside all other commit­ which has devastated much of this ministration that additional money for tee amendments to offer his amend­ rural region. rural housing assistance will be forth­ Included in my amendment is $10 coming once we have a better idea as ment. million for rural water and sewer sys­ Mr. HEFLIN. Mr. President, I ask to the total amount ·or the damage. By unanimous consent that all other tems. The emergency water system the time this bill is in conference, we grants included in this package will should be able to lock down the exact amendments that are now pending be help rural water and sewer systems re­ set aside. figures for additional housing m9ney. The PRESIDING OFFICER. Without pair and rebuild their damaged sys­ It is also my understanding that addi­ objection, it is so ordered. tems. This money is extremely impor­ tional moneys will be provided in the tant because currently there are a business and industry loan portion of AMENDMENT NO. 2303 number of citizens in the flood areas Mr. HEFLIN. Mr. President, I send an this bill. that do not have suitable drinking This program is operated through the amendment to the desk and ask for its water. In fact the drinking water is Farmer's Home Administration. This immediate consideration. polluted and there are not, in many in­ money would be used to help small The PRESIDING OFFICER. The stances, properly working sewer sys­ clerk will report the amendment. businesses get back on their feet after The bill clerk read as follows: tems. the flood waters have receded. This amendment also contains $23 Mr. President, I believe the Federal The Senator from Alabama [Mr. HEFLIN] proposes an amendment numbered 2303. million for the Emergency Conserva­ Government has a responsibility to ·tion Program. This program provides come to the aid of the tri-State area of Mr. HEFLIN. Mr. President, I ask cost share moneys to individuals to Georgia, Florida, and Alabama at this unanimous consent that the reading of help clean up the debris left in the time because our local communities the amendment be dispensed with. wake of the flood. The PRESIDING OFFICER. Without clearly do not have the necessary re­ This amendment also includes addi­ sources to pay for the entire cost of the objection, it is so ordered. tional money for the Emergency Wa­ The amendment is as follows: cleanup. tershed Program as well. The language I would like to commend the chair­ On page 88, after line 12 insert: Sec. 742. In addition to funds made avail­ in this amendment calls on the USDA man and the ranking member of the able elsewhere in this Act, there are hereby to use money left over from last year's Agriculture Appropriations Sub­ appropriated as of the date of enactment of flooding problems in the Midwest. Such committee for working with us and this Act the following, to remain available sums as necessary will be set aside to their staffs for working with my staff through September 30, 1995: fund the watershed program in this tri­ to ensure that the people of this tri­ Emergency Community Water Assistance state region of Georgia, Alabama, and state region are assisted in this time Grants, $10,000,000; Florida. This program, which is admin­ Very Low-Income Housing Repair Grants, of need. $15,000,000; istered through the Soil Conservation Now, Mr. President, we understand Agricultural Credit Insurance Fund Pro­ Service, provides money to help repair that probably it would not be appro­ gram Account: washouts, gullies, damaged levees and priate to put in statutory language to For the cost of direct loans, including the terraces. the effect that such funds as are nec­ cost of modifying loans, as defined in section I was down in Alabama a week ago essary will be provided for watershed 502 of the Congressional Budget Act of 1974, from this last Saturday and flew over and flood prevention operation. as follows: emergency loans, $7,670,000. much of the farmlands, and you could These funds shall be made available Provided, That these amounts are des­ ignated by Congress as an emergency re­ see the gullies and you could see many for the Emergency· Supplemental Act quirements pursuant to section 251 of the terraces that had been de­ of 1994. Also, business and industry (b)(2)(D)(i) of the Balanced Budget and Emer­ stroyed. This section of Alabama had loans shouid be made available through gency Deficit Control Act of 1985, as amend­ just gone through a detailed soil con­ existing 1994 funds. ed, and that such amounts shall be available servation program in which farmers But we would expect that in con­ only to the extent the President designates had adopted and implemented and put ference there would be statements in such use an emergency requirements pursu­ into practice all of the various proce­ the report of the conferees pertaining ant to such Act. Of the amount appropriated in the Emer­ dures that the Soil Conservation Serv­ to that which would give direction to gency Supplemental Appropriations Act of ice had required, and the flood has the Department of Agriculture pertain­ 1994, Public Law 103-211, for Watershed and caused tremendous damage to this, and ing to the watershed flood prevention Flood Prevention Operations, $23 million is there is a need for help and assistance operation and to the business and in­ transferred to the Emergency Conservation in getting these farms back to where dustry loans that I have just men­ Program. they were prior to this flood. From the tioned. The PRESIDING OFFICER. The Sen­ damages that I witnessed firsthand, the Mr. COCHRAN. Has the distinguished ator is recognized. money will be sorely needed. Senator completed his statement in Mr. HEFLIN. Mr. President, this Also included in this amendment is support of his amendment. amendment that I have sent to the money for farmers who have lost their Mr. HEFLIN. I think so, yes. July 18, 1994 CONGRESSIONAL RECORD-SENATE 16881 Mr. COCHRAN addressed the Chair. think we have seen a disaster quite the Senate taking care of this and in­ The PRESIDING OFFICER. The Sen­ like the damage that was occasioned cluding the disaster assistance pro­ ator from Mississippi [Mr. COCHRAN] is by reason of the freeze earlier this gram in this, when it goes to con­ recognized. year. ference there may have to be some ad­ Mr. COCHRAN. Mr. President, let me So one of the suggestions being justments of the figures. But the fig­ first of all commend the Senator from made-it is already in the committee ures that we have, and as we have put Alabama, my friend and neighbor, for bill now before the Senate, and to clar­ in our amendment today, have come as offering this amendment. It is an effort ify the matter in later amendments a result of working with the Depart­ to extend the provisions of existing law which I hope can be included in a disas­ ment of Agriculture and also OMB rel­ in other legislation which have been ter amendment-is the fact that these ative to the needs of the Tristate area. passed by the Congress to the victims victims are also entitled to share in I think we will have a little better of the disasters that have recently be­ whatever disaster assistance may be idea by the time this goes to con­ fallen those three States the Senator made available by the administration. ference as to what the final figures mentioned. I might just say, before we take final might be. There are other Senators who have action on this amendment, I hope we I yield the floor. brought to the attention of the man­ will have an opportunity to consider Mr. COCHRAN addressed the Chair. agers amendments that are intended to similar amendments that have been The PRESIDING OFFICER. The Sen- be offered to this bill on the same sub­ prepared and any suggestions that ator from Mississippi. jects. Specifically, we have heard from other Senators would like to make on Mr. COCHRAN. Madam President, I Senator COVERDELL of Georgia, who this subject. But it is important that suggest the absence of a quorum. has brought to our attention an amend­ we take action and it be included in The PRESIDING OFFICER. The ab­ ment to extend deficiency payments to this bill. sence of a quorum has been suggested. farmers in advance as a way to help So for that reason, I want to com­ The clerk will call the roll. compensate them for damages that mend the Senator from Alabama and The bill clerk proceeded to call the have been sustained or will be sus­ assure him of our cooperation in trying roll. tained as a result of these terrible to make sure that we do address this Mr. BUMPERS. Madam President, I floods that have hit the States of Geor­ issue and we do so in a way that is as ask unanimous consent that the order gia, Alabama, and Florida. sensitive and as generous as can be for the quorum call be rescinded. We also understand there is another under the terms of existing law and our The PRESIDING OFFICER. Without amendment under development and behavior in circumstances like this in objection, it is so ordered. preparation by Senator COVERDELL the past. Mr. BUMPERS. Madam President, similar to the amendment that has (Mrs. BOXER assumed the chair.) what is the pending business? now been offered by Senator HEFLIN. Mr. HEFLIN. Madam President, I The PRESIDING OFFICER. The Hef­ Senator BUMPERS and I, for example, wish to thank the distinguished Sen­ lin amendment is the pending business. have also prepared an amendment, ator from Mississippi for his kind Mr. BUMPERS. Madam President, I which we are prepared to offer to the words and for pointing out the fact ask unanimous consent the pending bill, to provide disaster assistance for that other Senators are working on amendment be set aside in order to 1994 crops. That would be based upon this pro bl em. offer an amendment. the provisions of the 1990 farm bill that I have had discussions with Senator The PRESIDING OFFICER. Without had as a title "Disaster Assistance" NUNN pertaining to this issue. I believe objection, it is so ordered. and provided certain procedures be fol­ that he will be speaking on this issue, AMENDMENT NO. 2304 lowed in order to have eligible farmers and perhaps may be offering something Mr. BUMPERS. Madam President, I given disaster benefits. himself relative to it. send an amendment to the desk and Part of that is the fact that Congress But I also particularly want to point ask for its immediate consideration. I must declare that an emergency exists out that in the beginning I mentioned offer this amendment on behalf of Sen­ in order to qualify this disaster for not only this flooding, but other disas­ ator LEAHY. those benefits. The President must also ters. I had in mind also the same The PRESIDING OFFICER. The agree by issuing a declaration that an thing-I did not deal with it in detail­ clerk will report. emergency exists and that this disaster that Senator COCHRAN brought out The bill clerk read as follows: is of the kind and quality contemplated about the freezes, in particular in the The Senator from Arkansas [Mr. BUMP­ in the law. northern part of Mississippi and in the ERS], for Mr. LEAHY, proposes an amendment So what Senator HEFLIN is doing is northern part of Alabama and other numbered 2304. something that is consistent with the States. Mr. BUMPERS. Madam President, I efforts that others are also trying to So the overall package that we are ask unanimous consent that reading of develop to make sure that those who all working on is designed to take care the amendment be dispensed with. have suffered from this recent disaster of all disasters-whether freezes, The PRESIDING OFFICER. Without are l]ualified and eligible for the same floods, droughts, insect activity, objection, it is so ordered. kind of disaster benefits that were worms; we have had beet army worms The amendment is as follows: made available in the Midwest floods that have been disastrous that have oc­ On the appropriate page insert at the end and that have been made available to curred and in the cotton areas. We feel of Sec. 716 the following ", unless additional others in similar circumstances. like it will be comprehensive to the ex­ acres in excess of the 100,000 acre limitation So, on the part of this Senator, I tent of taking care of all of those situa­ can be enrolled without exceeding $93,200,000, want to state my support for the effort tions that exist. provided that the unused portion of the fis­ that is being made and commend Sen­ So I will be looking forward to work­ cal year 1994 appropriation shall be used in ator HEFLIN for bringing this sugges­ ing with Senator COVERDELL and Sen­ addition to the $93,200,000." tion to the attention of the Senate. ator NUNN and any other Senators; Mr. LEAHY. Madam President, I rise I might just point out that in our Senator GRAHAM and Senator MACK today to offer an amendment to R.R. State and in the State of Arkansas and ought to have some ideas pertaining to 4554, the Agriculture, Rural Develop­ some other States earlier this year, this. I think the idea right now is to ment, Food and Drug Administration, there were disasters which occurred as hold it over until we get to adoption of and Related Agencies appropriations a result of freezing temperatures. Im­ this amendment, and then take action bill, 1995 which will correct a funding mense damage was sustained by pecan on it, as well as action on the other problem for the Wetlands Reserve Pro­ orchards, peach orchards, and other ag­ amendments. gram. riculture activities over a large area, I might say, of course, that the This bill appropriates $93.2 million particularly in my State. I do not House, having passed a bill and then for the Wetlands Reserve Program an 16882 CONGRESSIONAL RECORD-SENATE July 18, 1994 increase of $26.5 million from last year. the Mammography Quality Standards Second, the user fees in this bill However, the bill also imposes a 100,000 Act, and $5 million from fees for cer­ would supplant direct appropriations, cap on the amount of acreage allowed tification and Freedom of Information and could not be used as revenues to into the program. Act requests. assist FDA in fulfilling its mission. I am opposed to this cap for three The agency has no detailed plans for This, of course, is in contrast to the reasons. how to collect the other $228 million, prescription drug user fees which had First, farmers want to do more to and, indeed, I have serious concerns been authorized in advance for a spe­ protect wetlands. This year, six times about their plans for the $24 million in cific purpose. If anything, the prescrip­ as many eligible farmers asked to par­ device fees. tion drug user fee precedent should ticipate in the program than could be When FDA Commissioner Kessler tes­ convince us not to move too quickly on enrolled. tified before the House in March of this other FDA fees, as thus far it has not Second, the effect of this cap is to year, the Agriculture Appropriations shown the promise for which we had transfer money that was set aside for Subcommittee chairman asked him hoped when Public Law 102-571 was en­ this program in the 1990 farm bill to a when the Congress would see the de­ acted 2 years ago. host of other items funded by the ap­ tails of their whole user fee proposal. Third, the basic premise of a user fee propriations bill. Commissioner Kessler responded, is that it is not a tax and that it goes Third, this cap undercuts the cost-ef­ "There are many complex issues asso­ to support a specific service or activity fective administration of this program ciated with collecting substantial new that is provided in return. When we are by the Department of Agriculture. This user fees. We do not yet have a detailed considering "fees," which could cap prohibits the Department of Agri­ proposal to accomplish this.'' amount to one-third of the agency's culture from enrolling more than Commissioner Kessler added, funding, I think you have to seriously 100,000 acres, even if they can be en­ I can assure you we are still evaluating question whether in fact these are rolled with the appropriated funds. In candidates for such fees. We are looking at taxes in user fee clothing. other words, if USDA enrolls cheaper virtually all FDA activities except those Fourth and finally, I think that this covered by specific current or proposed user represents questionable public policy. acres into the program, they cannot fee authority. Activities left to consider in­ use the savings to allow more farmers clude the food and animal drug activities of Let's just look at one potential user to participate in the program. Our the Agency, our activities at the National fee-medical devices. The medical de­ farmers lose because they cannot par­ Center for Toxicological Reserach, generic vice industry is one of the Nation's ticipate in the program and the public and over the counter drug programs. blood most competitive industries in the loses because valuable wetlands that banks, most of our import and domestic in­ global marketplace. It is comprised of spection activities, and our enforcement and a range of manufacturers, both small could be permanently protected are not compliance activities. enrolled. and large, all of which are contributing My amendment would remove the In other words, Commissioner to a positive trade balance in devices. cap from this bill. In addition, my Kessler is looking at imposing user fees That is something of which we can be amendment would remove the 75,000- on almost every activity of the agency. proud. A user fee for devices would When the FDA testified before the amount to a tax on innovation, a tax acre cap imposed in fiscal year 1994. By Senate subcommittee 2 months later, removing the cap imposed in fiscal which would hit very, very hard at in May of this year, he was unable to small manufacturers, discouraging year 1994 and in this bill, the Depart­ provide any additional details. Yet, the ment of Agriculture will be able to en­ their innovation and investment, and bill before us proposes $150 million in possibly driving them out of business. roll over 50,000 additional acres into user fees. When the prescription drug user fee the Wetland Reserve Program. It is very clear to me that the Agri­ was considered 2 years ago, we were I urge my colleagues to support this culture Appropriations Subcommittee, looking at an FDA center that was ba­ important amendment. under the capable leadership of our col­ sically strong but overburdened wi'th Mr. BUMPERS. Madam President, leagues from Arkansas, Senator BUMP­ too much paperwork and too few per­ this is an amendment dealing with the ERS, and from Mississippi, Senator sonnel. Leaving aside my concern that wetland reserve, which has been COCHRAN, were in a difficult situation. the process could be streamlined, I cleared on both sides. The subcommittee's allocation was agreed to work with my colleagues to Mr. COCHRAN. Madam President, we tight, and I am very sympathetic to craft a proposal after industry signaled have reviewed the amendment on this the hard task my Appropriations Com­ that it was warranted and workable. side and have no objection to it. mittee colleagues faced in trying to There is no such agreement with the The PRESIDING OFFICER. If there fund adequately all of the programs at medical device community, as was evi­ be no further debate, the question is on the Agriculture Department, as well as dent from a hearing last week held by agreeing to the amendment. the FDA. my distinguished colleague in the The amendment (No. 2304) was agreed In this context, I can understand the House of Representatives, HENRY WAX­ to. committee's willingness to examine a MAN. At that hearing, Wayne Barlow, Mr. BUMPERS. Madam President, I revenue-raising provision advanced by president of a small Utah manufactur­ move to reconsider the vote. the administration. It is some consola­ ing company and chairman of the Utah Mr. COCHRAN. I move to lay that tion that the committee only allowed Biomedical Industry Council, testified motion on the table. for $150 million in new user fees, as op­ on behalf of 200 companies. Utah, I The motion to lay on the table was posed to the request which was over might add, has led the Nation in agreed to. $100 million higher. growth of its registered device manu­ USER FEES Nevertheless, I have a range of con­ facturers, with a 19-percent increase Mr. HATCH. Madam President, the cerns about this language and the neg­ from 153 companies in 1991 to 182 com­ administration's fiscal year 1995 re­ ative impact it is sure to have if en­ panies in 1992. quest for the Food and Drug Adminis­ acted. I am extremely hopeful that, if I agree with what Mr. Barlow told tration includes $645 million in budget this cannot be corrected on the floor, the committee, which essentially was authority and $343 million from user my colleagues will work in conference that the problem with medical device fees-one-third of the FDA's budget, to see that the House position on FDA approvals does not stem primarily from $252 million would come from new user user fees is retained. resources, but rather from the agency's fees. I know that our time is short, here, management of the program and from Specifically, the FDA proposed to so I will summarize my concerns. its regulatory overreach which con­ collect $79 million under the Prescrip­ First, as I have detailed, I do not sumes an ever-growing amount of re­ tion Drug User Fee Act, $24 million think it is possible for the FDA to im­ sources. from yet unauthorized new medical de­ plement user fees of this magnitude in For these reasons, again, I hope that vice user fees, $6.5 million in fees from the coming fiscal year. we can eliminate the user fee provision July 18, 1994 CONGRESSIONAL RECORD-SENATE 16883 from the final bill and retain the House formative or final stages, but it does tional mind. As an undergraduate of language. demonstrate the unanimity of purpose Yale University, he graduated first in Mr. BUMPERS. Madam President, I of the legislators to seek compromise his department. In 1953, he received a suggest the absence of a quorum. and go forward on national commu­ degree from Oxford University as a The PRESIDING OFFICER. The nications policy. I believe this same Rhodes Scholar. He entered Yale Law clerk will call the roll. sense of purpose is shared in our body. School in 1955 where, true to form, he The bill clerk processed to call the Madam President, I am not saying earned many distinctions: He was roll. that we cannot improve on the work ranked first in his class, received the Mr. BUMPERS. Madam President, I done in the House of Representatives. Jewell, Robbins, and Frank Prizes for ask unanimous consent that the order My impression is that the House pack­ scholarship, was inducted into the for the quorum call be rescinded. age displeased everyone equally-and Order of the Coif, and was a note editor The PRESIDING OFFICER. Without that may not be a bad thing. The major of the Yale Law Journal. objection, it is so ordered. Senate proposals-S. 1822 and S. 2111- After graduating from law school, also have their staunch supporters and this nominee clerked for Supreme vocal critics, and deserve close review. Court Justice Hugo Black. Guido MORNING BUSINESS It is my hope that those industries Calabresi then joined the professorial Mr. BUMPERS. Madam President, I and individuals engaged in the debate ranks at the Yale Law School. He has ask unanimous consent that there now are prepared to accept the good with served as an assistant professor, associ­ be a period for morning business, with the bad in whatever form the final Sen­ ate professor, and as dean of the Yale Senators permitted to speak therein ate legislation takes-so long as the Law School. Over the years, many Yale for up to 3 minutes each. proposal fulfills our objectives without students have had the opportunity to The PRESIDING OFFICER. Without unfairly advantaging or disadvantaging learn from Dean Calabresi in his class­ objection, it is so ordered. one company or industry segment at es on torts, economic analysis of law, the expense of another. Most impor­ legal process, law and medicine, con­ tantly, we must advance a bill which stitutional theory, and Federal estate NATIONAL COMMUNICATION best serves the intended beneficiaries and _gift taxation. POLICY of a multifaceted information infra­ Law students everywhere have be­ Mr. DURENBERGER. Madam Presi­ structure: the general public. The come well-acquainted with his dent, sometime over the next few House sought to strike this balance. writings, particularly his four books on weeks the issue of national commu­ We can find it, too. the subjects of accident law, the dis­ nications policy is likely to come be­ tribution of scare goods within a soci­ fore us. It is a huge issue much impacts ety, common law, and the effects of at­ on our economy, our quality of life, EXECUTIVE SESSION titudes and ideals on the law. and our global competitiveness. It is an For his writings, the nominee has re­ ceived the American Bar Association issue much in need of congressional at­ EXECUTIVE CALENDAR tention because-despite technological Certificate of Merit, ABA's Triennial advancement and the judicial disman­ Mr. BUMPERS. Madam President, I Book Award, and the Order of the Coif tling of AT&T-national communica­ ask unanimous consent that the Sen­ for his book "A Common Law for the tions policy has gone virtually un­ ate proceed to executive session to con­ Age of Statutes." His book, "Ideals, changed for 60 years. sider the following nominations: Cal­ Beliefs, Attitudes and the Law: Private My constituents are increasingly in­ endar No. 1089, Guido . Calabresi, to be Law Perspectives on Public Law Prob­ terested in this issue and seem to real­ U.S. circuit judge; calendar No. 1090, lems," received the ABA Silver Gavel ize that what we do will affect the Daniel C. Dotson, to be U.S. marshal. Award. price and availability of communica­ I further ask unanimous consent that Today, Dean Calabresi is widely rec­ tions services and whether they have a the nominees be confirmed, en bloc; ognized as a leading scholar in law and that any statements appear in the economics. He has received 19 honorary choice in communications providers for degrees and has lectured at many insti­ local telephone, cable television, and RECORD as if read; that upon confirma­ tion, the motions to reconsider be laid tutions and schools. In 1962, the U.S. long distance services. Chamber of Commerce named Guido The Senate Commerce Committee upon the table, en bloc; that the Presi­ dent be immediately notified of the Calabresi one of the Ten Outstanding will soon be completing markup of S. Young Men in America. Notre Dame 1822, the legislation sponsored by Sen­ Senate's action; and that the Senate return to legislative session. awarded him the Laetare Medal as out­ ator HOLLINGS. I applaud the chairman The PRESIDING OFFICER. Without standing teacher of law and William of the Commerce Committee for focus­ objection, it is so ordered. and Mary Law School has bestowed ing attention on communications is­ The nominations considered and con­ upon him the Marshall-Wythe Medal. sues and for completing the yeoman's firmed, en bloc, are as follows: Guido Calabresi's involvement in the work of the Communications Act of New Haven community does not stop 1994. Although the road to reaching a THE JUDICIARY Guido Calabresi, of Connecticut, to be at his contributions to Yale Law consensus on how we can fairly attain United States Circuit Judge for the Second School. Along with his wife, who is a open competition in local and long dis­ Circuit. full-time volunteer worker, he donates tance telephone services is rife with DEPARTMENT OF JUSTICE his time to programs for inner-city potholes, I believe middle ground is at­ Daniel C. Dotson, of Utah, to be United youth. He often helps out at the St. tainable. I am encouraged by recent States Marshal for the District of Utah for Thomas More Soup Kitchen, and is on statements by Chairman HOLLINGS that the term of four years. the board of several organizations dedi­ he wants to work out remaining issues STATEMENT ON THE NOMINATION OF GUIDO cated to assisting the disadvantaged, in the bill including RBOC entry into CALABRESI including the Dixwell Community long distance services. Mr. LEAHY. Madam President, I rise House and Friends of Legal Services for As I grapple with this issue, it is hard today in support of the President's Southern Connecticut, and the Gender to ignore the recent success of the nomination of Dean Guido Calabresi to Bias Task Force. other body. Before the July 4 recess, the U.S. Court of Appeals for the Sec­ A brilliant scholar, a dedicated the House of Representatives over­ ond Circuit. We in the second circuit teacher of law and a compassionate, whelmingly passed legislation address­ will benefit greatly from Dean generous man, Calabresi embodies ing communications competition and Calabresi's knowledge of the law and many of the qualities that are so im­ infrastructure investment. This does sense of justice. portant to a good judge. I am confident not mean the proposal adopted by the Dean Calabresi left Milan at age 6. He that his thoughtful opinions and judi­ House was without controversy in its has distinguished himself as an excep- cious temperment will serve the people 16884 ' CONGRESSIONAL RECORD-SENATE July 18, 1994 of the second circuit and the country The Security Council determined in in Appendix A under their former well. It is with pleasure that I urge his that resolution that the continued fail­ names as well. confirmation. ure of the Government of Libya Appendix B to Part 550 was amended ("GoL") to demonstrate by concrete to provide public notice of three indi­ actions its renunciation of terrorism, viduals determined to be SDNs of the LEGISLATIVE SESSION and in particular the GoL's continued GoL: Seddigh Al Kabir, Mustafa Saleh The PRESIDING OFFICER. Under failure to respond fully and effectively Gibril, and Farag Al Amin Shallouf. the previous order, the Senate will now to the requests and decisions of the Se­ Each of these three individuals is a return to legislative session. curity Council in Resolutions 731 and Libyan national who occupies a central 748, concerning the bombing of the Pan management position in a Libyan SDN Am 103 and UTA 772 flights, con­ financial institution. NATIONAL EMERGENCY WITH RE- stituted a threat to international peace All prohibitions in the Regulations SPECT TO LIBYA-MESSAGE and security. Accordingly, Resolution pertaining to the GoL apply to the en­ FROM THE PRESIDENT-PM 132 883 called upon Member States, inter tities and individuals identified in ap­ The PRESIDING OFFICER laid be- alia, to freeze certain GoL funds or pendices A and B. All unlicensed trans­ fore the Senate the following message other financial resources in their terri­ actions with such entities or persons, from the President of the United tories, and to ensure that their nation­ or transactions in which they have an States, together with accompanying als did not make such funds or any interest, are prohibited unless other­ papers; which was referred to the Com­ other financial resources available to wise exempted or generally licensed in mittee on Banking, Housing and Urban the GoL or any Libyan undertaking as the Regulations. A copy of the amend­ Affairs: defined in the resolution. In light of ment is attached to this report. this resolution, FAC revoked section 3. During the current 6-month period, To the Congress of the United States: 550.516 to eliminate a narrow exception FAC made numerous decisions with re­ I hereby report to the Congress on that had existed to the comprehensive spect to applications for licenses to en­ the developments since my last report blocking of GoL property required by gage in transactions under the Regula­ of February 10, 1994, concerning the na­ Executive Order No. 12544 of January 8, tions, issuing 69 licensing determina­ tional emergency with respect to Libya 1986 (3 C.F.R., 1986 Comp., p. 183), and tions-both approvals and denials. Con­ that was declared in Executive Order by the Regulations. A copy of the sistent with FAC'$ ongoing scrutiny of No. 12543 of January 7, 1986. This report amendment is attached to this report. banking transactions, the largest cat­ is submitted pursuant to section 401(c) On March 21, 1994, FAC amended the egory of license approvals (33) con­ of the National Emergencies Act, 50 Regulations to add new entries to ap­ cerned requests by non-Libyan persons U.S.C. 1641(c); section 204(c) of the pendices A and B (59 Fed. Reg. 13210). or entities to unblock bank accounts International Emergency Economic Appendix A ("Organizations Deter­ initially blocked because of an appar­ Powers Act ("IEEPA"), 50 U.S.C. mined to be Within the Term 'Govern­ ent GoL interest. The largest category 1703(c); and section 505(c) of the Inter­ ment of Libya' (Specially Designated of denials (18) was for banking trans­ national Security and Development Nationals of Libya)") is a list of orga­ actions in which F AC found a GoL in­ Corporation Act of 1985, 22 U.S.C. nizations determined by the Director of terest. Four licenses were issued au­ 2349aa-9(c). FAC to be within the definition of the thorizing intellectual property protec­ 1. As previously reported, on Decem­ term "Government of Libya" as set tion in Libya. ber 2, 1993, I renewed for another year forth in section 550.304(a) of the Regu­ 4. During the current 6-month period, the national emergency with respect to lations, because they are owned or con­ F AC continued to emphasize to the Libya pursuant to IEEPA. This renewal trolled by, or act or purport to act di­ international banking community in extended the current comprehensive fi­ rectly or indirectly on behalf of, the the United States the importance of nancial and trade embargo against GoL. Appendix B ("Individuals Deter­ identifying and blocking payments Libya in effect since 1986. Under these mined to be Specially Designated Na­ made by or on behalf of Libya. The sanctions, all trade with Libya is pro­ tionals of the Government of Libya") FAC worked closely with the banks to hibited, and all assets owned or con­ lists individuals determined by the Di­ implement new interdiction software trolled by the Libyan government in rector of F AC to be acting or purport­ systems to identify such payments. As the United States or in the possession ing to act directly or indirectly on be­ a result, during the reporting period, or control of U.S. persons are blocked. half of the GoL, and thus to fall within more than 126 transactions involving In addition, I have instructed the Sec­ the definition of the term "Govern­ Libya, totaling more than $14.7 mil­ retary of Commerce to reinforce our ment of Libya" in section 550.304(a). lion, were blocked. Four of these trans­ current trade embargo against Libya Appendix A to part 550 was amended actions were subsequently licensed to by prohibiting the re-export from for­ to provide public notice of the designa­ be released, leaving a net amount of eign countries to Libya of certain U.S.­ tion of North Africa International more than $12. 7 million blocked. origin products, including equipment Bank as a Specially Designated Na­ Since my last report, F AC collected for refining and transporting oil, unless tional (" SDN") of Libya. Appendix A 15 civil monetary penalties totaling consistent with United Nations Secu­ was further amended to add new en­ nearly $144,000 for violations of the rity Council Resolution 883. tries for four banks previously listed in U.S. sanctions against Libya. Twelve of 2. There have been two amendments Appendix A under other name·s. These the violations involved the failure of to the Libyan Sanctions Regulations, banks are Banque Commerciale du banks to block funds transfers to Liby­ 31 C.F.R. Part 550 (the "Regulations"), Niger (formerly Banque Arabe an-owned or -controlled banks. The administered by the Office of Foreign Libyenne Nigerienne pour le Commerce other three penalties were received for Assets Control ("F AC") of the Depart­ Exterieur et le Developpement), violations involving letter of credit ment of the Treasury, since my last re­ Banque Commerciale du Sahel (for­ and export transactions. port on February 10, 1994. The first merly Banque Arabe Libyenne Various enforcement actions carried amendment (59 Fed. Reg. 5105, February Malienne pour le Commerce Exterieur over from previous reporting periods 3, 1994) revoked section 550.516, a gen­ et le Developpement), Chinguetty Bank have continued to be aggressively pur­ eral license that unblocked deposits in (formerly Banque Arabe Libyenne sued. Open cases as of May 27, 1994, to­ currencies other than U.S. dollars held Mauri tanienne pour le Commerce taled 330. Several new investigations of by U.S. persons abroad otherwise Exterieur et le Developpement), and potentially significant violations of blocked under the Regulations. This Societe Interaffricaine du Banque (for- the Libyan sanctions have been initi­ amendment is consistent with action merly Banque Arabe Libyertne ated by FAC and cooperating U.S. law by the United Nations·security Council Togolaise pour le Commerce enforcement agencies, primarily the in Resolution 883 of November 11, 1993. Exterieur). These banks remain listed U.S. Customs Service. Many of these July 18, 1994 CONGRESSIONAL RECORD-SENATE 16885 cases are believed to involve complex at approximately $1 million. Personnel give favorable consideration to this conspiracies to circumvent the various costs were largely centered in the De­ agreement at an early date. prohibitions of the Libyan sanctions, partment Of the Treasury (particularly WILLIAM J. CLINTON. as well as the utilization of inter­ in the Office of Foreign Assets Control, THE WHITE HOUSE, July 18, 1994. national diversionary shipping routes the Office of the General Counsel, and to and from Libya. The F AC has con­ the U.S. Customs Service), the Depart­ tinued to work closely with the De­ ment of State, and the Department of REPORTS OF COMMITTEES partments of State and Justice to iden­ Commerce. The fallowing reports of committees tify U.S. persons who enter into con­ 6. The policies and actions of the GoL were submitted: tracts or agreements with the GoL, or continue to pose an unusual and ex­ By Mr. INOUYE, from the Committee on other third-country parties, to lobby traordinary threat to the national se­ Indian Affairs, with an amendment in the United States Government officials and curity and foreign policy of the United nature of a substitute: to engage in public relations work on States. The United States continues to S. 1936. A bill to provide for the integrated believe that still stronger inter­ management of Indian resources, and for behalf of the GoL without FAC author­ other purposes (Rept. No. 103-316). ization. national measures than those man­ On May 4, 1994, F AC released a chart, dated by United Nations Security "Libya's International Banking Con­ Council Resolutions 883, including a INTRODUCTION OF BILLS AND nections," which highlights the Libyan worldwide oil embargo, should be en­ JOINT RESOLUTIONS government's organizational relation­ acted if Libya continues to defy the The following bills and joint resolu­ ship to 102 banks and other financial international community. We remain tions were introduced, read the first entities located in 40 countries world­ determined to ensure that the per­ and second time by unanimous con­ wide. The chart provides a detailed petrators of the terrorists acts against sent, and referred as indicated: look at current Libyan shareholdings Pan Am 103 and UTA 772 are brought to justice. The families of the victims in By Mr. RIEGLE: and key Libyan officers in the complex S. 2291. A bill to separate certain activities web of financial institutions in which the murderous Lockerbie bombing and involving derivative financial instruments Libya has become involved, some of other acts of Libyan terrorism deserve from the insured ·deposits of insured deposi­ which are used by Libya to circumvent nothing less. I shall continue to exer­ tory institutions. to provide for regulatory U.S. and U.N. sanctions. Twenty-six of cise the powers at my disposal to apply coordination in the establishment of prin­ the institutions depicted on the chart economic sanctions against Libya fully ciples related to such activities, to provide have been determined by F AC to be and effectively, so long as those meas­ enhanced regulatory oversight, and for other SDNs of Libya. In addition, the chart ures are appropriate, and will continue purposes; to the Committee on Banking, to report periodically to the Congress Housing, and Urban Affairs. identifies 19 individual Libyan bank of­ By Mr. HATFIELD: ficers who have been determined to be on significant developments as re­ S. 2292. A bill to amend the Watershed Pro­ Libyan SDNs. A copy of the chart is at­ quired by law. tection and Flood Prevention Act to estab­ tached to this report. WILLIAM J. CLINTON. lish a Waterways Restoration Program, and In addition, on May 4, 1994, FAC an­ THE WHITE HOUSE, July 18, 1994. for other purposes; to the Committee on Ag­ nounced the addition of five entities riculture, Nutrition, and Forestry. and nine individuals to the list of SDNs By Mr. KERRY: of Libya. The five entities added to the FISHERIES AGREEMENT WITH THE S. 2293. A bill to modify the negotiating ob­ SDN list are: Arab Turkish Bank, REPUBLIC OF LITHUANIA- MES­ jectives of the United States for future trade Libya Insurance Company, Maghreban SAGE FROM THE PRESIDENT­ agreements, and for other purposes; to the PM 133 Committee on Finance. International Trade Company, Savings By Mr. INOUYE (for himself, Mr. and Real Estate Investment Bank, and The PRESIDING OFFICER laid be­ AKAKA, Mr. BAUCUS, Mr. BINGAMAN, Societe Maghrebine D'Investissement fore the Senate a message from the Mr. BOREN, Mrs. BOXER, Mr. BRAD­ et de Participation. The nine individ­ President of the United States, to­ LEY, Mr. BRYAN, Mr. BURNS, Mr. uals named in the notice are: Yousef gether with accompanying papers; pur­ CAMPBELL, Mr. CHAFEE, Mr. COCHRAN , Abd-El-Razegh Abdelmulla, Ayad S. suant to title 16 United States Code Mr. COHEN , Mr. CONRAD , Mr. CRAIG, Dahaim, El Hadi M. El-Fighi, Kamel section 1823(b); which was referred to Mr. DASCHLE, Mr. DECONCINI, Mr. El-Khallas, Mohammed Mustafa the Committee on Commerce, Science, DODD, Mr. DOMENIC!, Mr. DORGAN, Mr. Ghadban, Mohammed Lahmar, Ragiab and Transportation, and the Commit­ DURENBERGER, Mr. EXON, Mr. GOR­ tee on Foreign Relations: TON, Mr. GRAHAM, Mr. HATCH, Mr. Saad Madi, Bashir M. Sharif, and HEFLIN, Mr. HOLLINGS, Mrs. KASSE­ Kassem M. Sherlala. All prohibitions in To the Congress of the United States: BAUM , Mr. KEMPTHORNE, Mr. KEN­ the Regulations pertaining to the GoL In accordance with the Magnuson NEDY, Mr. LAUTENBERG , Mr. LEVIN, apply to the entities and individuals Fishery Conservation and Management Mr. MATHEWS, Mr. McCAIN, Mr. identified in the notice issued on May Act of 1976 (Public Law 94-265; 16 U.S.C. MITCHELL, Mr. MURKOWSKI, Mrs. 4, 1994. All unlicensed transactions 1801 et seq.), I transmit herewith an MURRAY, Mr. NICKLES, Mr. PELL, Mr. Agreement between the Government of REID, Mr. ROTH, Mr. SIMON , Mr. SPEC­ with such entities or persons, or trans­ TER, Mr. STEVENS, and Mr. actions in which they have an interest, the United States of America and the WELLSTONE): are prohibited unless otherwise ex­ Government of the Republic of Lithua­ S.J. Res. 210. A joint resolution to des­ empted or generally licensed in the nia Extending the Agreement of No­ ignate the month of November 1994 as " Na­ Regulations. A copy of the notice is at­ vember 12, 1992, Concerning Fisheries tional Native American Heritage Month"; to tached to this report. off the Coasts of the United States, the Committee on the Judiciary. The FAC also continued its efforts with annex. The agreement, which was under the Operation Roadblock initia­ effected by an exchange of notes at tive. This ongoing program seeks to Vilnius, Lithuania on February 22, 1994, STATEMENTS ON INTRODUCED identify U.S. persons who travel to and/ and May 11 , 1994, extends the 1992 BILLS AND JOINT RESOLUTIONS or work in Libya in violation of U.S. agreement to December 31, 1996. The By Mr. RIEGLE: law. exchange of notes, together with the S. 2291. A bill to separate certain ac­ 5. The expenses incurred by the Fed­ 1992 agreement, constitutes a govern­ tivities involving derivative financial eral Government in the 6-month period ing international fishery agreement instruments from the insured deposits from January 7, 1994, through July 6, within the requirements of section of insured depository institutions, to 1994, that are directly attributable to 201(c) of the Act. provide for regulatory coordination in the exercise of powers and authorities In light of the importance of our fish­ the establishment of principles related conferred by the declaration of the Lib­ eries relationship with the Republic of to such activities, to provide enhanced yan national emergency are estimated Lithuania, I urge that the Congress regulatory oversight, and for other 16886 CONGRESSIONAL RECORD-SENATE July 18, 1994 purposes; to the Committee on Bank­ ment Act of 1991 included provisions to for all major participants. And I am ing, Housing, and Urban Affairs. improve the enforceability of netting concerned that we have not adequately DERIVATIVES SUPERVISION ACT OF 1994 contracts, which reduce the legal risks encouraged the formation of well-de­ Mr. RIEGLE. Mr. President, today I stemming from the failure of firms ac­ signed clearinghouses to reduce sys­ rise to introduce the Derivatives Su­ tive in derivatives. That legislation temic risk. pervision Act of 1994. I offer this legis­ also required regulators to increase The bill I introduce today is a step in lation as a means to achieve the appro­ capital standards for institutions with the direction of rationalizing and co­ priate supervision and regulation of significant interest rate risk associated ordinating the regulation of deriva­ the market for derivative instru­ with derivatives or other instruments, tives. The Derivatives Supervision Act ments-a market that has grown since and it required banks to limit their of 1994 prevents insured depository in­ 1980 to more than $12 trillion in no­ interbank credit exposures from de­ stitutions from speculating in the de­ tional amount-the amount of prin­ rivatives and other sources. The com­ rivatives market and imposes stringent cipal in the underlying assets. And mittee worked hard to see that the Fu­ controls on such institutions using de­ that figure-as large as it is-does not tures Trading Practices Act of 1992 in­ rivatives for hedging or dealing. To even include exotic mortgage securi­ cluded language reducing the legal risk protect the Federal deposit insurance ties or other structured debt issues. in trading swaps and that the con­ funds, and the American taxpayer, in­ A derivatives transaction is a con­ ference report requested a study of de­ sured depository institutions would be tract whose value depends on-or de­ rivatives issues by the CFTC. In Sep­ precluded from using exotic or espe­ cially complex derivative instruments. rives from-the value of an underlying tember 1992, I requested a study from Since derivatives may offer ways of asset, reference rate or index. Deriva­ the banking regulators on risks posed lowering risk, a bank holding company tives, which can be customized through by the derivatives, including their rec­ -but not a bank-would be permitted negotiation between counterparties or ommendations for regulatory changes. to establish a derivatives subsidiary standardized contracts whose terms are These regulator reports were received that could engage in a full range of de­ fixed, are intended to provide cost-ef­ by the Senate Banking Committee in rivatives activities. The capital in the fective protection against risks associ­ January 1993. Further, over 2 years derivatives subsidiary could not be ated with rate and price movements. ago, I requested the GAO to study fi­ used to satisfy the capital require­ Basically, derivatives allow the trans­ nancial derivatives. This study was re­ ments of the bank holding company, in fer of risks from parties less willing or leased just last month, offering numer­ the same manner that the capital of a able to manage the risks to parties ous recommendations that have been securities subsidiary of a bank holding more willing or able to handle them. included in the bill I am introducing company may not be counted towards According to the GAO, from 1989 to . today. Finally, I have repeatedly ques­ the required capital of the bank hold­ 1992, the total notional amount of de­ tioned the financial regulators about ing company. rivatives has increased 145 percent. derivatives in their appearances before Further, to fill some of the regu­ This growth has occurred because de­ this Committee. latory gaps, this bill establishes the rivatives meet the needs of customers The regulators have taken some use­ Securities and Exchange Commission to manage the financial risks associ­ ful steps. The OCC, last fall, called for as the Federal regulator for any major ated with their operations more effi­ an interagency task force on deriva­ dealer in derivatives such as subsidi­ ciently. Yet there are danger signs on tives and issued a detailed circular to aries of broker-dealers or insurance the horizon. The rapid growth of the banks on acceptable risk management firms that are not otherwise regulated derivative market itself reminds us practices. At my suggestion the Treas­ at the Federal level. This regulatory that such growth in any given financial ury reconvened the President's Work­ reform is needed to resolve one of the activity has historically been a warn­ ing Group on Financial Markets to larger flaws with the current regu­ ing sign and should be a source of con­ consider derivatives issues. More re­ latory system noted by the GAO in its cern. Add to the rate of growth the ab­ cently Comptroller Ludwig said: recent report: due to the complexity solute size of this market and potential Because of our increasing concern about and patchwork nature of our financial risks to the financial system become the risks posed by exotic and complex deriv­ regulatory system, some very large de­ more apparent. ative instruments, we are looking at whether rivative dealers are not subject to the The warning signs are there. In the they are appropriate for national banks and, regulation or oversight of any Federal past few months, there have been nu­ if so, to what extent they are appropriate. regulatory agency. By establishing the merous reports of major losses stem­ I applaud the regulators for moving SEC as the Federal regulator, this seri­ ming from derivatives use by a wide on these initiatives and strongly en­ ous regulatory gap is closed. variety of firms, including-to name a courage them to take other steps to co­ Yet the regulatory structure remains few-Askin Capital Management, Proc­ ordinate their regulation and super­ flawed because so many different Fed­ tor & Gamble, Air Products and Chemi­ vision of this market. But many regu­ eral financial regulators have jurisdic­ cals, Gibson Greeting Cards, Mead latory gaps persist. As Comptroller tion over the derivatives activities of Corp., and an Atlantic Richfield em­ Charles Bowsher testified just last the institutions they regulate. Greater ployee fund. I will submit for the month: coordination and cooperation is nec­ record several newspaper articles on If we don't get on top of this, then we run essary to ensure that derivatives ac­ some of these derivative losses. In re­ the risk of crises in the future that could tivities are regulated similarly in dif­ cent years, managing the failures of 2 have been prevented. ferent institutions. To achieve this financial firms-Drexel Burnham and Let me detail just a few of my con­ goal, the Derivatives Supervision Act Bank of New England-has been great­ cerns. The current regulatory struc­ of 1994 requires the Federal financial ly complicated by their derivatives po­ ture still does not require adequate dis­ institution regulatory agencies jointly sitions, although neither was a major closure about derivatives activities by to establish principles and standards dealer in derivatives. We have also seen dealers or by firms that are end users. related to capital, accounting, disclo­ liquidity problems develop in deriva­ I am very concerned that insured de­ sure, suitability and other appropriate tives during periods of volatility, such posits are used to fund potentially regulatory actions; develop minimum as the 1987 stock market crash and, speculative derivatives operations. I capital requirements that address cred­ more recently, as long-term interest think it is dangerous to permit major it risk, market risk, operational risk rates have risen sharply. We cannot af­ derivatives dealer operations in firms and legal risk; issue regulations that ford to wait to address this issue until with little or no Federal regulation or are consistent; and jointly develop a some more dramatic crisis occurs. oversight. I am disappointed that we training program for examiners regard­ The Banking Committee's concern have not been able to achieve inter­ ing derivative activities. The Federal about risks associated with derivatives national acceptance of appropriate cap­ financial institution regulatory agen­ is long-standing. The FDIC Improve- ital standards relating to derivatives cies are: The Office of the Comptroller July 18, 1994 CONGRESSIONAL RECORD-SENATE 16887 of the Currency, the Federal Reserve, unrelated [disaster] occurs * * * the capabil­ (B) any other instrument which an appro­ the Federal Deposit Insurance Corpora­ ity of that horrendous problem escalating priate Federal financial institutions regu­ tion, the Office of Thrift Supervision, throughout the financial system more quick­ latory agency determines, by regulation or ly than before is clearly there as a con­ order, to be a derivative financial instru­ the National Credit Union Administra­ sequence of the improved efficiency. ment for purposes of this Act. tion, the Securities and Exchange Com­ Accordingly, the act requires the reg­ (5) FEDERAL FINANCIAL INSTITUTIONS REGU­ mission, the Commodity Futures Trad­ LATORY AGENCY.-The term " Federal finan­ ing Commission, the Office of Federal ulators to address these systemic risks cial institutions regulatory agency" means­ Housing Enterprise Oversight, and the by providing markets with the proper (A) the Office of the Comptroller of the Federal Housing Finance Board. incentives to form clearinghouses, re­ Currency; In this bill, regulators would be given duce the buildup of intraday liabilities, (B) the Board of Governors of the Federal authority to define the range of deriva­ and reduce settlement times. Reserve System; tives activities covered. They would in­ Finally, the act takes a significant (C) the Federal peposit Insurance Corpora­ step toward the establishment of great­ tion; clude, in addition to financial options, (D) the Office of Thrift Supervision; futures, and forwards; instruments that er international coordination in the regulation and supervision of deriva­ (E) the National Credit Union Administra­ embody similar characteristics, such as tion Board; exotic structural debt and mortgage tive instruments. It requires that the (F) the Securities and Exchange Commis­ backed securities. Chairman of the Federal Reserve, in sion; In addition to separating certain de­ consultation with the other Federal fi­ (G) the Commodity Futures Trading Com­ rivative activities from insured depos­ nancial regulatory agencies, coordi­ mission; its, providing for greater regulatory co­ nate with the governments, central (H) the Office of Federal Housing Enter­ banks and regulatory authorities of prise Oversight; and ordination, and providing that the SEC (I) the Federal Housing Finance Board. regulate the currently unregulated other industrialized countries to work toward maintaining and, where appro­ (6) HEDGING TRANSACTION .-The term major dealers in derivatives, my bill "hedging transaction" means any trans­ contains several other key provisions. priate, adopting comparable super­ action Involving a derivative financial in­ In order to help regulators better un­ visory standards and regulations for fi­ strument if- derstand the derivative activities of nancial institutions engaged in deriva­ (A) such transaction is entered Into in the the institutions they regulate, the bill tives activities. normal course of business primarily- requires that insured depository insti­ Mr. President, the bill I am offering (!) to reduce risk of price change or cur­ tutions, Fannie Mae, Freddie Mac, the today goes a great distance toward pro­ rency fluctuations with respect to other tecting the deposit insurance fund­ transactions entered into by the institution, Federal Home Loan Banks and major previously or simultaneously, to which the dealers disclose certain specified quan­ and taxpayers-from further crisis in the rapidly expanding and complex derivative financial instrument transaction titative information with respect to relates, either Individually or In the aggre­ their derivative instruments. market in derivative instruments. I gate; or In addition, the act addresses the gap urge my colleagues to consider it care­ (11) to reduce risk of interest rate changes in the understanding of these instru­ fully and lend it their support. Such with respect to transactions entered into by ments that often exists between the protection is needed if we are going to the Institution, previously or simulta­ boards of directors of the participants place America's financial system on a neously, to which the derivative financial In­ sound regulatory footing for our gen­ strument transaction relates, either Individ­ in these markets and the creators and ually or In the aggregate; and dealers of these instruments. In 1992, eration and generations ahead. I ask unanimous consent that three (B) before the close of the day on which Gerald Corrigan, then president of the such transaction was entered into (or such New York Federal Reserve Bank, said: newspaper articles on recent losses in earlier time as the appropriate Federal fi­ the derivatives market, a summary of I hope this sounds like a warning because nancial regulatory agency may prescribe by it is. Off-balance sheet activities have a role, the bill, and the full text of the bill be regulation), the regulated entity clearly but they must be managed and controlled included in the RECORD. identifies such transaction as a hedging carefully * * * by top management, as well There being no objection, the mate­ transaction. as by traders and rocket scientists. rial was ordered to be printed in the (7) INSURED DEPOSITORY INSTITUTION.-The RECORD, as follows: term " insured depository institution" has Accordingly, the act requires that in­ the same meaning as In section 3 of the Fed­ s. 2291 sured institutions, Government spon­ eral Deposit Insurance Act and includes an sored enterprises, and major dealers Be it enacted by the Senate and House of Rep­ Insured credit union, as defined in section 101 prepare, as part of their internal con­ resentatives of the United States of America in of the Federal Credit Union Act. trols structure, a management plan Congress assembled, (8) MAJOR DEALER.-The term " major deal­ that sets forth certain specified infor­ SECTION 1. SHORT TITLE. er" means any dealer whose ability to meet mation, such as the purpose of the This Act may be cited as the "Derivatives obligations as they become due is poten­ Supervision Act of 1994". tially significant to the stability of financial holdings in derivative instruments and SEC. 2. DEFINITIONS. markets, as determined by the Federal finan­ the accounting methods that are used For purposes of this Act, the following cial institutions regulators, based upon size, to value them. The management plan definitions shall apply: market share, and the extent of linkages must require that derivative activities (1) APPROPRIATE FEDERAL BANKING AGEN­ with other market participants. be conducted with direct oversight by CY.-The term "appropriate Federal banking (9) REGULATED ENTITY.-The term "regu­ appropriate senior executive officers. agency" has the same meaning as In section lated entity" means- And, the boards of directors of these in­ 3 of the Federal Deposit Insurance Act. (A) an insured depository institution; stitutions must periodically review (2) CAPITALIZATION.-The terms "ade­ (B) a Federal Home Loan Bank, as defined compliance with their institution's quately-capitalized" and "well-capitalized" in section 2 of the Federal Home Loan Bank have the same meanings as in section 38 of Act; management plan. the Federal Deposit Insurance Act. (C) the Federal National Mortgage Asso­ Another significant concern about (3) DEALER.-The term " dealer" means any ciation and any affiliate thereof; and derivatives is that through their mis­ person engaged In the business of purchas­ (D) the Federal Home Loan Mortgage Cor­ use, or as a result of the increased link­ ing, selling, or engaging In transactions In­ poration and any affiliate thereof. ages across markets and between firms, volving derivative financial Instruments for SEC. S. LIMITATIONS ON DERIVATIVE ACTIVI· derivatives could lead to or exacerbate its own account, through a broker or other­ TIES. a systemic failure in financial mar­ wise, for the purpose of serving customers (a) GENERAL PROHIBITION.-Except as pro­ kets. As Federal Reserve Chairman who are end-users or other dealers. vided in subsection (b), a regulated entity (4) DERIVATIVE FINANCIAL INSTRUMENT.­ may not purchase, sell, or engage in any Alan Greenspan told the Banking Com­ The term "derivative financial Instrument" transaction involving a derivative financial mittee just a few weeks ago: means- instrument for the account of that entity. [D]erivatives essentially arbitrage the pri­ (A) a qualified financial contract (as de­ (b) EXCEPTIONS.- mary markets around the world, pull them fined In section ll(e)(8) of the Federal De­ (1) HEDGING TRANSACTIONS.-A regulated together. And what that means is that if an posit Insurance Act); and entity may purchase, sell, or engage in any 16888 CONGRESSIONAL RECORD-SENATE July 18, 1994 transaction involving a derivative financial (ii) EMERGENCY NEED.-If any Federal fi­ (1 ) MANAGEMENT PLAN REQUIRED WITH RE­ instrument for the account of that entity for nancial institutions regulatory agency deter­ SPECT TO ALL DERIVATIVE FINANCIAL INSTRU­ the purpose of engaging in a hedging trans­ mines that such agency needs the informa­ MENTS.-A regulated entity or a major dealer action if such activity involves a category of tion described in clause (i) as a result of ad­ may not engage in activities involving deriv­ derivative financial instruments approved by verse market conditions or other emergency ative financial instruments without, as part rule, regulation, or order of the appropriate situations (as defined by that agency), a reg­ of its internal controls structure, a m~nage­ Federal financial regulatory agency for such ulated entity or a major dealer shall provide ment plan thatr- purpose. such information to its appropriate Federal (A) sets forth- (2) DEALING.- financial institutions regulatory agency, as (i) the purpose of the holdings, positions, (A) WELL-CAPITALIZED ENTITIES.-A well­ may be required by that agency. or other interests of the regulated entity or capitalized insured depository institution (B) CONFIDENTIALITY OF INFORMATION PRO­ major dealer in any category of derivative fi­ may purchase, sell, or engage in a trans­ VIDED.-A Federal financial institutions reg­ nancial instrument; action involving a derivative financial in­ ulatory agency that receives information (ii) how such holdings, positions, or other strument as a dealer if such activity involves pursuant to this paragraph with respect to interests in any category of derivative finan­ a category of derivative financial instru­ any regulated entity or major dealer may cial instrument is consistent with the over­ ments approved for such purpose by rule, not provide such information to any person all risk management plan of the regulated regulation, or order of the appropriate Fed­ or entity other than another Federal finan­ entity or major dealer; and eral banking agency. cial institutions regulatory agency with ju­ (iii) how the regulated entity or major (B) ADEQUATELY CAPITALIZED INSTITU­ risdiction over that entity, dealer, or affili­ dealer acquires holdings, positions, and other TIONS.-An insured depository institution or ate, without the prior written approval of interests in any category of derivative finan­ a Federal Home Loan Bank that is ade­ the appropriate Federal financial institu­ cial instruments; and quately capitalized may purchase, sell, or tions regulatory agency. (B) describes the accounting methods used engage in a transaction involving a deriva­ SEC. 5. DISCLOSURE REQUIREMENTS. to value holdings, positions, or other inter­ tive financial instrument as a dealer if- (a) INFORMATION REQUIRED To BE INCLUDED ests of the regulated entity or major dealer (i) the appropriate Federal financial insti­ IN REPORTS.-Any report of condition or in any category of derivative financial in­ tutions regulatory agency determines that comparable document made by any regu­ strument; and such activity by the institution is in the lated entity or major dealer in accordance (C) requires that derivative financial in­ public interest; and with any applicable provision of law or with strument activities are conducted with di­ (ii) the category of such derivative finan­ respect to any period beginning after Decem­ rect oversight by the appropriate senior ex­ cial instrument has been approved for such ber 31, 1994, shall include the following infor­ ecutive officers (as defined pursuant to sec­ purpose by any rule, regulation, or order is­ mation: ~} tion 32(f) of the Federal Deposit Insurance sued under subparagraph (A). (1) QUANTITATIVE INFORMATION WITH RE­ · Act) of the regulated entlty or major dealer. (C) PROHIBITION AGAINST SPECULATION.­ SPECT TO ALL DERIVATIVE FINANCIAL INSTRU­ (2) FAMILIARITY WITH RISKS REQUIRED.-A Nothing in this section shall be construed to MENTS.- authorize a regulated entity, or any subsidi­ regulated entity or major dealer may not en­ (A) GROSS NOTIONAL AND FAIR VALUE.-The gage in any transaction involving a deriva­ ary of such entity, to purchase, sell, or en­ gross notional value and the gross positive gage in a transaction involving a derivative tive financial instrument unless the board of and negative fair values of holdings, posi­ directors of such entity or dealer periodi­ financial instrument for its own account for tions, or other interests of the regulated en­ any speculative purpose. cally reviews compliance with the manage­ tity or major dealer in any category of deriv­ ment plan by the appropriate senior execu­ SEC. 4. REGULATORY COORDINATION. ative financial instrument. (a) SUPERVISION BY FEDERAL FINANCIAL IN­ (B) REVENUE, GAINS, AND LOSSES.-All reve­ tive officers. STITUTIONS REGULATORY AGENCIES.- nue (identified by source of revenue), gains, SEC. 7. ENFORCEMENT. (!) IN GENERAL.-The Federal financial in­ and losses of the institution attributable to (a) IN GENERAL.-Each Federal financial stitutions regulatory agencies shall jointly holdings, positions, or other interests of the institutions regulatory agency may use the establish principles and standards related to regulated entity or major dealer in any cat­ enforcement authority available to that capital, accounting, disclosure, suitab111ty, egory of derivative financial instrument. agency under other provisions of law to en­ internal controls structures, and other ap­ (C) EXPOSURE UNDER BILATERAL NETTING force the provisions of sections 3 through 6 of propriate regulatory actions for the super­ CONTRACT.-The net current credit exposure this Act, and any regulations promulgated in vision of regulated entities and major deal­ of the regulated entity or major dealer under accordance with this Act, as the agency de­ ers engaged in activities involving derivative termines to be appropriate. legally enforceable bilateral arrangements (b) SECURITIES AND EXCHANGE COMMISSION financial instruments. with respect to holdings, positions, or other (2) DEVELOPMENT OF MINIMUM CAPITAL ENFORCEMENT AUTHORITY.-The Securities interests of the entity or dealer in any cat­ Exchange Act of 1934 (15 U.S.C. 78a et seq.) is STANDARDS.-In establishing principles, egory of derivative financial instrument. standards, or other regulatory actions under amended by inserting after section 21C the (D) EXPOSURE TO INDIVIDUAL following new section: paragraph (1), the Federal financial institu­ COUNTERPARTIES.-The exposure to individ­ tions regulatory agencies shall jointly de­ ual counterparties to any transaction involv­ "DERIVATIVE FINANCIAL INSTRUMENTS velop minimum capital requirements (in­ ing holdings, positions, or other interests of "SEC. 21D. (a) SUPERVISION BY THE COMMIS­ cluding the leverage ratio; if appropriate) to the regulated entity or major dealer in any SION.-Any major dealer whose activities in­ guard against risks that may be posed by category of derivative financial instrument. volving derivative financial instruments are regulated entities and major dealers engaged The Federal financial institutions regu­ not subject to regulation by a Federal finan­ in activities involving derivative financial latory agencies shall determine, by regula­ cial institutions regulatory agency under the instruments, including- tion or order, the nature and size of the indi­ Derivatives Supervision Act of 1994, shall be (A) credit risk; vidual counterparties for which such infor­ subject to appropriate regulation and en­ (B) market risk; mation shall be required. forcement by the Commission in accordance (C) operational risk; and (2) TERM TO MATURITY.-Information on the with the authority provided to the Commis­ (D) legai risk. remaining term to maturity of holdings, po­ sion under this title, and consistent with any (3) TRAINING.-The Federal financial insti­ sitions, or other interests of the regulated principles, standards, or other regulatory ac­ tutions regulatory agencies shall jointly entity or major dealer in any category of de­ tions established in accordance with the De­ sponsor training programs concerning deriv­ rivative financial instrument. rivatives Supervision Act of 1994. ative financial instruments for examiners (b) REPORTING REQUIREMENT.-Information " (b) DEFINITIONS.-For pcirposes of this sec­ and assistant examiners employed by the reported pursuant to subsection (a) with re­ tion, the terms 'derivative financial instru­ Federal financial institutions regulatory spect to derivative financial instruments ment', 'Federal financial institutions regu­ agencies. Such training programs shall be traded or purchased on an exchange, and the latory agency', and 'major dealer' have the open to enrollment by employees of State fi­ holdings, positions, or other interests in de­ same meanings as in section 2 of the Deriva­ nancial institutions supervisory agencies. rivative financial instruments which are the tives Supervision Act of1994." . (4) CONFIDENTIAL EMERGENCY MANAGEMENT subjects of such trades, shall be provided sep­ SEC. 8. INTERNATIONAL COORDINATION. REPORTING.- arately from information relating to deriva­ The Secretary of the Treasury and the (A) IN GENERAL.- tive financial instruments not traded or pur­ Chairman of the Board of Governors of the (i) INFORMATION ON A NIGHTLY BASIS.-Not chased on an exchange, and the holdings, po­ Federal Reserve System, in consultation later than 1 year after the date of enactment sitions, or other interests in derivative fi­ with the Federal financial institutions regu­ of this Act, the Federal financial institu­ nancial instruments which are the subjects latory agencies, shall encourage govern­ tions regulatory agencies shall jointly de­ of such transactions. ments, central banks, and regulatory au­ velop a means to obtain, on a nightly basis, SEC. 6. MANAGEMENT CONTROLS. thorities of other industrialized countries to all necessary information from a regulated (a) REQUIREMENTS RELATING TO DIRECTORS work toward maintaining and, where appro­ entity or a major dealer. AND SENIOR EXECUTIVE OFFICERS.- priate, adopting comparable supervisory July 18, 1994 CONGRESSIONAL RECORD-SENATE 16889 standards, regulations, and capital standards (a) shall become effective 3 years after the shall be deemed to have provided notice if in particular, for regulated entities and date of enactment of this Act, and shall be such notice was sent to the last address major dealers engaged in activities involving fully implemented 5 years after the date of shown in the records of the insured deposi­ derivative financial instruments. enactment of this Act. tory institution by the means, if any, pro­ SEC. 9. BANK HOLDING COMPANIES. SEC. 11. REGULATORY CLARIFICATION AMEND· vided for in the subject qualified financial Section 3 of the Bank Holding Company MENTS. contract, or by other means reasonably cal­ Act of 1956 (12 U.S.C. 1842) is amended by add­ (a) FEDERAL DEPOSIT INSURANCE ACT culated to reach that person not later than ing at the end the following new subsection: AMENDMENTS.- the time specified in clause (i)(l). "(h) DERIVATIVE ACTIVITIES.- (!) DEFINITIONS OF CERTAIN TERMS.-Sec­ " (iii) RIGHTS AGAINST CONSERVATOR.-A " (l) IN GENERAL.-A subsidiary of a bank tion ll(e)(8)(D) of the Federal Deposit Insur­ person who is a party to a qualified financial holding company may purchase, sell, or en­ ance Act (12 U.S.C. 1821(e)(8)(D)) is amend­ contract with an insured depository institu­ gage in any transaction involving a deriva­ ed- tion may not exercise any right such person tive financial instrument for the account of (A) in clause (iv), by striking " section has to net or close out such contract under that subsidiary if it is not an insured deposi­ 101(24)" and inserting "se~tion 101(25)"; paragraph (8) (E) of this subsection, or sec­ tory institution or a subsidiary of an insured (B) in clause (v)(l), by striking " section tion 403 or 404 of the Federal Deposit Insur­ depository institution. 101(41)" and inserting "section 101(47)" ; ance Corporation Improvement Act of 1991, " (2) CONSOLIDATED CAPITAL.-The capital of (C) in clause (vi)(l)- solely by reason of the appointment of a con­ a subsidiary engaged in activities described (i) by inserting "equity or equity index servator for the insured depository institu­ in paragraph (1) shall not be included in the swap, equity or equity index option, bond op­ tion.". eonsolidated capital of its parent bank hold­ tion," after "commodity swap," ; and (4) AGREEMENTS AGAINST INTEREST OF COR­ ing company for the purpose of determining (ii) by striking "purchased" each place it PORATION .-Section 13(e) of the Federal De­ the compliance of such bank holding com­ appears; and posit Insurance Act (12 U.S.C. 1823(e)) is pany with any applicable capital require­ (D) by striking clause (vii) and inserting amended- ment. the following: (A) by inserting the following before "No "(3) ESTABLISHMENT OF SUBSIDIARIES.-The " (vii) TREATMENT OF MASTER AGREEMENT agreement" : Board shall establish, by regulation, appro­ AS 1 AGREEMENT.-Any master agreement for " (l) IN GENERAL .-"; priate terms and conditions for the estab­ any qualified financial contract, as defined (B) by redesignating paragraphs (1) lishment of a subsidiary referred to in para­ in clauses (i) through (vi) (or any master through (4) as subparagraphs (A) through graph (1) , consistent with any principles, agreement there for), together with all sup­ (D ), respectively; and standards or other regulatory actions estab­ plements thereto, shall be treated as a single (C) by adding at the end the following new lished under section 4 of the Derivatives Su­ agreement and a single qualified financial paragraph: pervision Act of 1994. con tract.". " (2) EXEMPTIONS FROM CONTEMPORANEOUS " (4) DEFINITIONS.-For purposes of this sub­ (2) DEFAULT AGAINST CORPORATION AS CON­ EXECUTION REQUIREMENT.-An agreement to section- SERVATOR.-Section ll(e)(8)(E) of the Federal provide for the lawful collateralization of- " (A) the term 'derivative financial instru­ Deposit Insurance Act ·c12 U.S.C. " (A) deposits of, or other credit extension ment' means- 1821(e)(8)(E)) is amended- by, a Federal, State, or local governmental "(i) an instrument the value of which is de­ (A) by striking ''paragraph (12) of this sub­ entity, including an agreement to provide rived from the value of other assets, interest section,"; and collateral in lieu of a surety bond; or currency exchange rates, or indexes, in­ (B) by striking "subsection (d)(9)" and in­ " (B) bankruptcy estate funds pursuant to cluding qualified financial contracts (as de­ serting " paragraph (10) of this subsection, section 345(b)(2) of title 11, United States fined in section ll(e)(8) of the Federal De­ subsections (d)(9) and (n)(4)(I)" . Code; posit Insurance Act); and (3) NOTIFICATION OF TRANSFER; RIGHTS EN­ " (C) extensions of credit, including any "(ii) any other instrument which an appro­ FORCEABLE AGAINST RECEIVER OR CONSERVA­ overdraft, from a Federal Reserve Bank or priate Federal financial institutions regu­ TOR.-Section ll(e)(lO) of the Federal Deposit Federal Home Loan Bank; or latory agency determines, by regulation or Insurance Act (12 U.S.C. 1821(e)(10)) is " (D) a qualified financial contract, as de­ order, to be a derivative financial instru­ amended- fined in section ll(e)(8)(D); ment for purposes of this section; and (A) in the heading, by inserting " ; RIGHTS shall not be deemed to be invalid pursuant to "(B) the term 'Federal financial institu­ ENFORCEABLE AGAINST CONSERVATOR OR RE­ subparagraph (B) of paragraph (1) solely be­ tions regulatory agency' has the same mean­ CEIVER" before the period; cause such agreement was not executed con­ ing as in section 2 of the Derivatives Super­ (B) by redesignating subparagraph (B) as temporaneously with the acquisition of the vision Act of 1994. ". subparagraph (C); and collateral or because of pledges, delivery, SEC. 10. SYSTEMIC RISK. (C) by striking subparagraph (A) and in­ and substitution of the collateral made in (a) IN GENERAL.-Not later than 18 months serting the following: accordance with such agreement.". after the date of enactment of this Act, the "(A) IN GENERAL.-The receiver for an in­ (b) FEDERAL DEPOSIT INSURANCE CORPORA­ Federal financial institutions regulatory sured depository institution in default shall TION IMPROVEMENT ACT AMENDMENTS.-Sec­ agencies shall, in order to reduce the risk as­ notify any person who is a party to a quali­ tions 403(a) and 404(a) of the Federal Deposit sociated with potential systemic financial fied financial contract, not later than 5:00 Insurance Corporation Improvement Act of market failure, promulgate appropriate reg­ p.m. (Eastern Time) on the business day fol­ 1991 (12 U.S.C. 4403(a), 4404(a)) are each ulations to require regulated entities and lowing the appointment of the receiver, of amended by striking " other provision of major dealers to- any transfer made by the receiver of the as­ law" each place such term appears, and in­ (1) increase use of clearinghouses and mul­ sets and liabilities of such institution that serting " provision of law, other than para­ tilateral netting agreements; includes such qualified financial contract. graphs (8)(E) and (lO)(B) of section ll(e) of (2) reduce intraday debit positions; "(B) CERTAIN RIGHTS NOT ENFORCEABLE.- the Federal Deposit Insurance Act" . (3) shorten intervals between financial ' '(i) RIGHTS AGAINST A RECEIVER.-A person (C) BANKRUPTCY CODE AMENDMENTS.- transactions in cash markets and their final who is a party to a qualified financial con­ (!) DEFINITIONS.-Section 101 OI title 11, settlement; tract with an insured depository institution United States Code, is amended- (4) shorten intervals between delivery of may not exercise any right such person may (A) in paragraph (55)(A) (the first place and payment for financial products; and have to net or close out such contract under paragraph (55) appears)- (5) otherwise reduce payments and settle- paragraph (8)(A) of this subsection, or sec­ (i) by inserting " equity or equity index ment risk. · tion 403 or 404 of the Federal Deposit Insur­ swap, equity or equity index option, bond op­ (b) CONSIDERATIONS.-In implementing this ance Corporation Improvement Act of 1991, tion," after " basis swap. ~' ; section, the Federal financial institutions solely by reason of the appointment of a re­ (11 ) by inserting "interest rate future," regulatory agencies shall consider, as appro­ ceiver for the depository institution (or in­ after " commodity swap,"; priate- solvency or financial condition of the insti­ (i11 ) by striking " forward foreign ex­ (1 ) the costs imposed on or benefits granted tution for which the receiver is appointed)- change" and inserting " foreign exchange" ; to regulated entities and major dealers by " (!) before 5:00 p.m. (Eastern Time) on the and regulatory actions taken under this section; business day following the appointment of (iv) by inserting " currency future, " after (2) the public benefits of reducing systemic the receiver; or " cross-currency rate swap agreement," ; risk; and "(II) after the person has received notice (B) by redesignating paragraphs (54) (3) the effects of any proposed action on that the contract has been transferred pursu­ through (57), the second place those para­ the international competitive position of ant to paragraph (9)(A). graphs appear, as paragraphs (58) through United States financial institutions. " (11) TIMING OF NOTIFICATION.-For pur­ (61 ), respectively; (C) EFFECTIVE DATE OF REGULATIONS.-The poses of clause (i)(ll), the Corporation, as re­ (C ) in paragraph (60), as redesignated, by regulations promulgated under subsection ceiver of an insured depository institution, striking " and"; 16890 CONGRESSIONAL RECORD-SENATE July 18, 1994 (D) in paragraph (61), as redesignated, by (A) in the section heading, by inserting ", tive 1 year after the date of enactment of striking the period at the end and inserting terminate, or accelerate" after "liquidate"; this Act. a semicolon; and and (b) EXCEPTION.-The amendments made by (E) by adding at the end the following new (B) in the first sentence, by inserting ", section 11 shall become effective on the date paragraphs: termination, or acceleration" after "liquida­ of enactment of this Act. "(62) 'master netting agreement' means an tion". agreement providing for the exercise of (7) CONTRACTUAL RIGHT TO LIQUIDATE A RE­ FOR P. & G., A BET THAT BACKFIRED rights, including rights of setoff, liquidation, PURCHASE AGREEMENT.-Section 559 of title (By Saul Hansell) termination, acceleration, or closeout, in 11, United States Code, is amended- It is eye catching, of course, when specu­ connection with one or more contracts with (A) in the section heading, by inserting ", lators like George Soros, or banks like Bank­ the debtor that are described in paragraphs terminate, or accelerate" after "liquidate"; ers Trust, acknowledge that they have lost (1) through (5) of section 561(a); and and millions of dollars by trading in the bond "(63) 'master netting agreement partici­ (B) in the first sentence, by inserting ", and currency markets, but that is the busi­ pant' means an entity that, at any time be­ termination, or acceleration" after "liquida­ ness they are in. fore the filing of the petition, has an out­ tion". In many ways, it was far more surprising standing master netting agreement covering (8) CONTRACTUAL RIGHT TO LIQUIDATE A the Procter & Gamble Company, the nation's any of the contracts described in section 561 SWAP AGREEMENT.-Section 560 of title 11, premier maker of soap and diapers, confessed with the debtor.". United States Code, is amended- yesterday that it would take a Sl02 million (2) AUTOMATIC STAY.-Section 362(b) of title (A) in the section heading, by striking charge because of financial-market positions 11, United States Code, is amended- "TERMINATE" and inserting "LIQUIDATE, TER­ that backfired when American and German (A) in paragraph (13), by striking "or" at MINATE, OR ACCELERATE"; and interest rates rose sharply. the end; (B) in the first sentence, by striking "ter­ P. & G. is not a Wall Street firm, and its (B) by redesignating paragraphs (15) and mination" and inserting "liquidation, termi­ investors do not expect the volatility in its (16) as paragraphs (16) and (17), respectively; nation, or acceleration". earnings due to trading positions that they (C) by redesignating paragraph (14), the (9) CONTRACTUAL RIGHT TO TERMINATE, LIQ­ would, say, for a firm like Salomon Brothers. second place such paragraph appears, as UIDATE, ACCELERATE, OR OFFSET A MASTER So why did this industrial corporation turn paragraph (15); and NETTING AGREEMENT.-Chapter 5 of title 11, into~ trader? CD) by amending paragraph (14) to read as United States Code, is amended by adding at P. & G. says it was a mistake and* * *pol­ follows: the end the following new section: icy to avoid financial market speculation "(14) under subsection (a), of the setoff by "§ 661. Contractual right to terminate, liq· was not followed in two isolated incidents. a swap participant or master netting agree­ uidate, accelerate, or offset under a master And it replaced the executive who oversaw ment participant of any mutual debt and netting agreement that area, Raymond D. Mains, vice president claim under or in connection with any swap "(a) IN GENERAL.-Subject to subsection and treasurer, and put him on a "special as­ agreement or master netting agreement that (b), the exercise of any contractual right, be­ signment.'' constitutes the setoff of a claim against the cause of a condition of the kind specified in But the company is only one of a growing debtor for any payment due from the debtor section 365(e)(l), to cause termination, liq­ number of nonfinancial concerns that have under or in connection with any such agree­ uidation, acceleration, offset, or netting of acknowledged losses due to trading positions ment against- values or payment amounts arising under or that lost money in the face of capricious "(A) any payment due to the debtor from in connection with one or more- turns of the markets. Tiny Gibson Greetings such participant under or in connection with "(1) securities contracts, as defined in sec­ Inc., a Cincinnati neighbor of P. & G., said it any such agreement; or tion 741(7); had lost at least S2 million recently from in­ "(B) cash, securities, or other property of "(2) commodities contracts, as defined in terest rate swaps. And Metallgesellschaft the debtor held by or due from such partici­ section 761(4); A.G., the German commodities company, has pant to guarantee, secure, or settle any such "(3) forward contracts; lost at least S500 million from oil futures. agreement;''. "(4) repurchase agreements; or LIKE HOME BUYERS (3) LIMITATIONS ON AVOIDING POWERS.-Sec­ "(5) swap agreements; Corporations have been lured into specu­ tion 546(g) of title 11, United States Code, is under a master netting agreement covering lating in markets largely because their for­ amended- such contracts shall not be stayed, avoided, tunes are tied to commodity prices and to in­ (A) by inserting "or a master netting or otherwise limited by operation of any pro­ terest rates. Every day, the treasurers of agreement covering any of the contracts de­ vision of this title or by any order of a court large corporations face the same kind of ago­ scribed in section 561" after "under a swap or administrative agency in any proceeding nizing choice that prospective home buyers agreement"; under this title. must make: to take the fixed- or the float­ CB) by inserting "or a master netting "(b) EXCEPTION.-A party may exercise a ing-rate loan. agreement participant" after· "swap partici­ contractual right described in subsection (a) The corporate treasurer's job is to borrow pant"; and only if that party could exercise such a right money for the corporation at the lowest (C) by foserting "or any master netting under section 555, 556, 559, or 560 for each in­ rate. As a result, he or she is, in effect, a agreement" after "with a swap agreement". dividual contract covered by the master net­ bond trader, betting on whether rates will go (4) FRAUDULENT TRANSFERS AND OBLIGA­ ting agreement in issue. up or down. · TIONS.-Section 548(d)(2) of title 11, United "(c) DEFINITION.-As used in this section, In recent years, treasurers have increas­ States Code, is amended- the term 'contractual right' includes a right, ingly used interest rate swaps to do their (A) in subparagraph (C), by striking "and"; whether or not evidenced in writing, arising job. Interest rate swaps one of the highly (B) in subparagraph (D), by striking the pe­ under common law, under law merchant, or publicized financial instruments known as riod and inserting "; and"; and by reason of normal business practice, a derivatives were invented to help corpora­ (C) by adding at the end the following new right set forth in a rule or bylaw of a na­ tions easily lock in fixed rates when they subparagraph: tional securities exchange, a national securi­ thought interest rates would rise and to slide "(E) a master netting agreement partici­ ties association or a securities clearing agen­ into floating rates when they thought rates pant that receives a transfer in connection cy, and a right set forth in a bylaw of a would fall. with a master netting agreement covering clearing organization or contract market or Many corporations try a conservative ap­ any of the contracts described in section 561 in a resolution of the governing board there­ proach to this task, keeping a mix between takes for value to the extent of such trans­ of.". fixed- and floating-rate debt. But many, like fer.". (9) DEBTS OF A MUNICIPALITY.-Section homeowners refinancing their debt, recently (5) CONTRACTUAL RIGHT TO LIQUIDATE A SE­ 90l(a) of title 11, United States Code, is bet that rates were nearing their lows and CURITIES CONTRACT.-Section 555 of title 11, amended- locked in fixed-rate borrowing. United States Code, is amended- (A) by inserting "555, 556," after "553,"; and Some companies have been inclined to try (A) in the section heading, by inserting ", (B) by inserting "559, 560, 561" after "557,". to get fancier, entering into more complex terminate, or accelerate" after "liquidate"; SEC. 12. REGULATIONS. transactions to cut their interest costs by and Each of the Federal financial institutions another one- or two-tenths of 1 percent. That CB) in the first sentence, by inserting ", regulatory agencies shall issue consistent is what appears to have happened with Proc­ termination, or acceleration" after "liquida­ regulations governing activities involving ter & Gamble. tion". derivative financial instruments for the pur­ Neither P. & G. nor Bankers Trust, the (6) CONTRACTUAL RIGHT TO LIQUIDATE A COM­ pose of implementing this Act. New York bank it worked with will describe MODITIES CONTRACT OR FORWARD CONTRACT.­ SEC. 13. EFFECTIVE DATES. the sw \p transactions in detail. But deriva­ Section 556 of title 11, United States Code, is (a) IN GENERAL.-Except as provided in tive experts suggest they probably went amended- subsection (b), this Act shall become effec- something like this: July 18, 1994 CONGRESSIONAL RECORD-SENATE 16891 P. & G. entered into two interest rate MORTGAGE DERIVATIVES CLAIM VICTIMS BIG major Wall Street firms have taken sizable swaps, reportedly for five years, to convert AND SMALL hits from being forced to take such bonds the interest it owed on borrowed money from (By Laura Jereski) back from troubled customers, including Mr. Askin. As these dealers make themselves a fixed to a floating rate. For the first six The bloodbath in mortgage derivatives is months, the deal was similar to a normal scarce, that tends to leave investors in the claiming new casualties as investors and lurch. swap: the company received fixed payments dealers continue to rush for the exits, feed­ from Bankers Trust to cover the interest due "You are seeing the ugly side of the Street ing a vicious cycle of falling prices and now," says a large institutional investor. on its bonds. In return, the company paid in­ evaporating demand. terest to the bank based on a floating rate. "The problem is that Wall Street created The damage is hitting high and low, from these bonds. They are the only ones who can A LOWER RATE sophisticated players such as Cargill Inc. and price them. And they are not supporting Kidder Peabody & Co., and several respected What was different about these trans­ their bonds." mutual funds, all the way to a little-known Indeed, traders say Minnetonka's losses actions was that P. & G. was apparently able New Jersey brokerage firm that hawked to negotiate a lower rate in exchange for an were deepened by the fund's inab111ty to get these bonds to credit unions and individual good prices from its dealers. Carglll officials unusual feature: every six months, the vari­ investors. able rate it paid would be adjusted according won't comment about the funds, its outside The mortgage market has been one of the investors or the size of the loss. to a very complex formula. While that for­ worst hit by rising interest rates, which have mula has not been disclosed, it apparently However, in a statement released yester­ also rocked hedge funds, Wall Street firms day, Cargill said, "The earnings of Cargill's sharply increased the interest that P. & G. and other investors in bonds and securities was obligated to pay if interest rates rose. financial business are derived from a broad derived from bonds. base of diverse operations. Their perform­ Last year, this must have seemed like an A $420 million hedge fund managed by ances this year remains very strong despite easy bet. Few people were expecting interest Cargill, the privately held commodity power­ recent market developments and, in fact, is rates to rise as quickly or as much as they house, based in Minneapolis, ls the most on pace for record earnings in this fiscal have so far this year. Indeed, many bond prominent of the latest victims. Cargill's year." Last year, Cargill's financial-services traders have lost money largely because the fund, known as the Minnetonka Fund, ran unit contributed about one-third of the com­ consensus was that rates in Europe would afoul of a supposedly "market neutral" pany's $358 mlllion in net income, according continue to fall. strategy that relied on esoteric mortgage­ to a Carglll official. When they read the fine print on their backed derivatives and borrowed money to Investors report that dealers are so loath swap agreement, top executives at P. & G. generate high yields with what was expected to quote prices for many collateralized mort­ appeared to have discovered that they had to be very low risk. That approach failed no­ gage obligations, or CMOs-out of fear that far more in common with those bond traders toriously at the Minnetonka Fund, as it did investors will demand to trade at those than they had expected. at the Granite hedge funds run by New York­ prices-that so-called bid-offer spreads have The incident underscores the warnings based Askin Capital Management, which ear­ widened to 10 points, or $100 on a bond with that derivatives experts have been raising lier this month was forced to seek protection a $1,000 face value. The "bid" indicates that for some time: that the biggest potential in bankruptcy court. price at which dealers are willing to sell problems in derivatives lie not with the WORSENING THE TOLL bonds. Such wide spreads hurt fund man­ banks and brokers that specialize in them, The Minnetonka Fund lost $90 million or agers who use bid quotes to "mark to mar­ but in the corporations and investors that more of the money it managed for Cargill ket," or value their portfolios for reporting use them. and other investors during the bond mar­ purposes. ket's March downdraft, traders say. Plum­ "When there's a panic in the market, all The reason ls that the derivatives dealers the brokers who are asked to mark bonds to have invested tens of mlllions of dollars in meting prices in emerging-market debt, which the fund also owned, are said to have market just low-ball the numbers, because sophisticated computer systems that mon­ they're afraid to step up to the plate" if cus­ itor and react to their risks on a minute-by­ contributed to the damage. Meanwhile, con­ tinuing turmoil in the mortgage securities tomers want to unload their bonds, says minute basis. Most corporations-even those Douglas Breeden, chief executive of Smith using derivatives-have not felt the need to market in April appears to have worsened the toll, the traders add. Breeden Associates Inc., a money manager make such investments, as they in theory specializing in mortgage-backed securities have a longer-term view. "There's a feeling out there that no one has been able to keep up with the pace of de­ who hasn't run into problems. Even in nor­ Yet Bankers Trust said it had repeatedly clines in the securities," says one trader. mal times, "we get off-the-wall marks from and formally advised Proctor and Gamble to Rising interest rates have caused the mort­ dealers on a routine basis," and that problem get out of its position to avoid taking fur­ gage-backed securities market to unravel "only gets worse" in times of turmoil, he ther losses. This is the sort of "stop loss" unpredictably across the board. Even under adds. tactic that is common practice in the best the best of circumstances, these bonds are Just how much of a problem has this been? trading rooms, but is lacking in many cor­ difficult to manage, because their values de­ Ramin Rouhani, a managing director at CDC porations. pend on assumptions about how fast home­ Investment Management Corp., which holds $3.5 billion of mortgage securities primarily UNANSWERED QUESTIONS owners wlll prepay the mortgages that back these securities. invested in esoterica, grouses that "this There are many unanswered questions at The recent interest-rate volat111ty has market doesn't work like a market should." this point. For one, there is the appropriate­ badly roiled those assumptions, so that in Last week, he says, he circulated a $25 mil­ ness of Bankers Trust's sales practices. Did today's market it's almost anyone's guess lion floating-rate bond to 11 dealers and got they push a risky product on a company that what "fair" prices of these bonds should be. bids that ended up three points apart, or $30 did not understand what it was doing? Or is Dealers' estimates of what's fair are often on a bond with a $1,000 face value. That's this case similar to the investor who threat­ heavily influenced by their own appetite for about ten times the usual spread for a bond ens to sue his broker after a trade goes the taking on more risk. like that, he says. wrong way, even though he was fully aware For some, the problems are even graver. of the risks? RISKY DERIVATIVES Several mutual funds run by Worth Mortgage derivatives, known as P. & G. says it is considering legal action Bruntjen, a portfolio manager at Minneapo­ against Bankers Trust, which denies it has "collateralized mortgage obligations," con­ lis-based Piper Capital Management, hold so done anything wrong. stitute about half of the $1.5 trillion of mort­ many hard-to-value CMOs that their pricing gage-backed securities outstanding. service has found it difficult on some days to Also unanswered is whether P. & G.'s loss The problems are most evident in risky value these portfolios in time to post their on the swaps is offset by a gain in some area mortgage derivatives, such as "principal dally net asset values. That's made it tough that it was meant to hedge. If the swaps were only" strips and "inverse floaters," but for investors to know what their holdings meant to convert fixed debt to a floating losses in those sectors are infecting more are currently worth, or what price they must rate, the company would have benefited by docile sectors of the mortgage-backed mar­ accept to enter or leave the funds. locking in the fixed-rate financing before ket. As their names suggest, POs pay inves­ "Our pricing service has a very short time rates rose. tors only the principal on the underlying to collect those prices, and during tumul­ "People tend to think hedges are good mortgages, while inverse floaters have yields tuous markets, the calculations are de­ when they make money to offset losses in that are designed to fall when interest rates layed," says Mr. Bruntjen, who manages five other areas," said Steven Benardete, a de­ rise, and vice versa. funds with a total of $1.7 billion in assets. "I rivatives executive at Morgan Stanley & Making a bad situation worse, Wall Street think dealers are tying to avoid adding Company. "But they don't think hedges are dealers have been reluctant to make markets [volatile CMOs] to inventory." so good when there is a loss that mitigates in these esoteric securities because they're Mr. Bruntjen's largest fund, the Piper what would have been a windfall gain." afraid of additional losses. Kidder and other Jaffray Institutional Government Income 16892 CONGRESSIONAL RECORD-SENATE July 18, 1994 fund, is estimated to have lost nearly 10% for tives and that all required disclosure was must approve the establishment of any sub­ the six months ended March 31, according to made to participants. sidiary of a bank holding company that in­ Lipper Analytical Services, compared with The letter to plan participants said that, tends to engage in speculation with deriva­ an average decline of 0.9% for 62 funds with while such losses are always a "possibility in tive instruments as a major dealer, and the similar investment objectives. The net asset this kind of plan," the company is "dis­ Securities and Exchange Commission will value has continued to slip since then, ac­ appointed." The letter noted that from 1989 regulate the activities of such subsidiary. cording to other fund managers. The fund's to 1993, the fund's performance was "well REGULATORY COORDINATION net asset value was quoted yesterday at $9.35 ahead" of traditional money-market funds. The loss was reported in the Los Angeles Regulation: The OCC, the Federal Reserve, a share, down 21 cents from the previous day. the FDIC, the OTS, the NCUA, the SEC, the It is down 17.3% so far this year. Times on Friday. Meanwhile, HYM Financial Inc. of Clifton, Traditional money-market mutual funds CFTC, the Office of Federal Housing Enter­ N.J., has been even harder hit. The small are closely regulated by the Securities and prise Oversight and the Federal Housing Fi­ brokerage firm had built up a huge position Exchange Commission, which limit their in­ nance Board must: (1) jointly establish principles and stand­ in mortgage-securities at the end of the year vestments to top-rated securities that gen­ to distribute among its clients, principally ards related to capital, accounting, disclo­ erally mature in one year or less. They are sure, suitability, and other appropriate regu­ individuals and credit unions. But the sharp considered among the safest investments be­ movement in interest rates caused its invert­ cause they are structured so their net asset latory actions; tory to drop so sharply in value that the firm (11) develop minimum capital requirements value remains stable and only the yield var­ that address credit risk, market risk, oper­ not only lost its $8 million of capital but ies. ational risk and legal risk; still owes Wall Street firms an additional $4 SEC RULES million, according to former employees. (iii) issue regulations that are consistent; HYM was told to cease trading on Friday by Although some funds do invest in floating­ (iv) jointly develop a training program for the National Association of Securities Deal­ rate notes, whose yield is reset periodically examiners regarding derivative activities. ers. Philip Eitman, who headed the firm, as interest rates change, the SEC has barred Emergency management reporting: The says he cannot comment about what hap­ funds from investing in so-called inverse­ regulators must develop a reporting system pened. floaters, which carry yields that vary in­ that allows them to obtain, in emergency versely to prevailing interest rates, and situations and on a confidential basis, cer­ EMPLOYEE FUND AT ARCO POSTS DERIVATIVES other potentially risky securities. The SEC tain information from insured depository in­ Loss also limits use of the term "money-market" stitutions (including insured credit unions), in a fund's name to those funds that meet its (By Georgette Jasen) Fannie Mae, Freddie Mac, the Federal Home guidelines. Loan Banks and major dealers in derivative An investment fund run by Atlantic Rich­ Company retirement plans typically are· instruments. field Co. for employees and retirees had a $22 regulated by the U.S. Department of Labor DISCLOSURE million pretax loss last month as a result of under the Employee Retirement Income Se­ investments in derivatives. curity Act, which doesn't have such specific The Act requires that insured depository An Arco spokesman declined to disclose investment guidelines. The plans are re­ institutions (including insured credit the nature of the derivatives, except to say quired to operate in the interests of partici­ unions), Fannie Mae, Freddie Mac, the Fed­ that they were "principal-at-risk" securities pants and beneficiaries. They also are re­ eral Home Loan Banks and major dealers and didn't include investments backed by quired to make certain disclosures to par­ disclose certain specified quantitative infor­ mortgages. He said the securities involved ticipants. mation with respect to their derivative in­ have been liquidated and Arco is pursuing At Arco, Mr. Greenstein said, the partici­ struments (for example, gross national val­ the necessary approvals from government pants in the savings and capital accumula­ ues and gross positive and negative fair val­ agencies to reimburse participants in the tion plan are mostly employees, but some ues, revenues, gains and losses, current cred­ company savings and capital accumulation are retirees. He said Arco already has begun it exposures, exposures of individual plan, which includes 401(k) retirement as­ discussions with the Internal Revenue Serv­ counterparties and remaining terms to ma­ sets. The loss amounted to 5.3% of the fund's ice because of the tax consequences of reim­ turity). To the extent possible, such quan­ assets. bursements to participants. He noted that titative information is to be provided sepa­ Derivatives are complex financial arrange­ obtaining necessary government approval for rately for exchange-traded and over-the­ ments whose values are derived from changes such reimbursements could take some time. counter instruments. in underlying variables, such as interest MANAGEMENT CONTROLS rates, currencies, commodity prices and stock markets here and abroad. They are DERIVATIVES SUPERVISION ACT OF 1994 In addition, the Act requires that the used by banks, brokers and their customers SEPARATION OF CERTAIN DERIVATIVE ACTIVI­ above institutions prepare, as part of their to defray the risk of market changes, and TIES FROM THE INSURED DEPOSITS OF IN­ internal controls structure, a management sometimes by money managers to boost SURED DEPOSITORY INSTITUTIONS plan that sets forth the purpose of the hold­ ings in the derivative instruments, how the yields. The Act states that derivative activities may not be conducted in a federally insured holdings are consistent with the risk man­ LOSSES AT OTHER COMPANIES agement plan of the institution and how the Lately, some companies have reported big depository institution for the account of institution acquires its derivative instru­ losses from derivative transactions. Procter that institution unless: ments. The management plan must describe & Gamble Co., for example, last month re­ (i) the insured depository institution is en­ gaging in the derivatives activity in order to the accounting methods that are used to ported a $157 million pretax charge while Air value the derivative holdings and must also Products & Chemicals Inc. and Gibson Greet­ hedge the bank's own portfolio (and the cat­ require that derivative activities be con­ ings Inc. were among companies reporting egory of derivatives activity has been ap­ proved by the appropriate federal banking ducted with direct oversight by appropriate smaller hits. senior executive officers. The boards of di­ Arco notified about 17,000 participants in agency); or (11) the insured bank is engaging in the de­ rectors of these institutions must periodi­ its plan of the loss in a letter. The spokes­ cally review compliance with their institu­ man said the plan's managers have changed rivatives activity as a dealer (and the bank is tion's management plan. their investment strategy and in the future well-capitalized and the category of deriva­ the fund that sustained the loss, called the tives activity has been approved by the ap­ SEC REGULATION AND ENFORCEMENT Money Market Plus fund, will be managed in propriate federal banking agency; or, if the The Act provides that any major dealer a way "closer to traditional money-market bank is not well-capitalized but is ade­ that is not subject to regulation by one of funds.'' quately capitalized, the category of deriva­ the above regulators be regulated by the Money Market Plus, with about $400 mil­ tives activity has not only been approved by SEC. The SEC and each of the above regu­ lion in assets, is one of four investment op­ the appropriate federal banking agency but lators have available to them any of the en­ tions in the $1.5 billion savings plan managed also has been determined by the appropriate forcement tools existing under other provi­ by Arco Investment Management Co., a unit federal banking agency to be in the public sions of law. of the big oil company. Employees of Arco, interest). The term "major dealer" is defined to its 83.3%-owned Arco Chemical Co. unit and These restrictions also apply to the deriva­ mean any dealer whose ability to meet obli­ 49.9%-owned Lyondell Petrochemical Co. can tive activities of federally insured credit gations as they become due is potentially also put money into company stock, a bond unions, the Federal Home Loan Banks, significant to the stability of financial mar­ fund or a diversified equity fund. Fannie Mae and Freddie Mac. kets, as determined by the above regulators, * * * Treasury bills, but is not a money Speculating with derivative instruments is based upon size, market share and the extent market mutual fund. permitted only in subsidiaries of bank hold­ of Unkages with other market participants. The Arco spokesman said the plan's guide­ ing companies or in institutions entirely un­ (A a )aler is any person engaged in the busi­ lines permitted the fund to invest in deriva- affiliated with banks. The Federal Reserve ness of purchasing, selling, or engaging in July 18, 1994 CONGRESSIONAL RECORD-SENATE 16893 transactions involving derivative financial lation now pending on the Senate Cal­ SEC. 2. FINDINGS AND POLICY. instruments for its own account, through a endar certainly focus much needed at­ (a) FINDINGS.-Congress finds that- broker or otherwise, for the purpose of serv­ tention on the continuing dilemma we (1) restoring degraded streams, rivers, wet­ ing customers.) face with respect to our water re­ lands, and other waterways to their natural INTERNATIONAL COORDINATION state is a cost effective and environmentally sources. sensitive means to control flooding, exces­ The Chairman of the Federal Reserve, in Today I am introducing the Water­ sive erosion, sedimentation, and nonpoint consultation with the ace, the FDIC, the ways Restoration Act in the hope of pollution, including stormwater runoff; OTS, the NCUA, the SEC, the CFTC, the Of­ providing an additional tool to improve (2) protecting and restoring watersheds fice of Federal Housing Enterprise Oversight the waterways of the United States. provides critical ecological benefits by re­ and the Federal Housing Finance Board, The legislation I introduce today is the storing and maintaining biodiversity, provid­ shall coordinate with governments, central ing fish and wildlife habitat, filtering pollut­ banks and regulatory authorities of other in­ companion to House Resolution 4289, introduced by Congresswoman ELIZA­ ants, and performing other important eco­ dustrialized countries to work toward main­ logical functions; taining and, where appropriate, adopting BETH FURSE of Oregon. I compliment (3) waterway restoration and protection comparable supervisory standards, regula­ Congresswoman FURSE for her fine projects can provide important economic tions and capital standards in particular, for leadership in this area and I am proud benefits by rejuvenating waterfront areas, financial institutions engaged in derivatives to introduce the Senate version of this providing recreational opportunities, and activities. fine proposal. creating community service jobs and job SYSTEMIC RISK The Waterways Restoration Act training opportunities in environmental res­ The Act requires within 18 months of en­ would establish a technical assistance toration for disadvantaged youth, displaced actment that regulations be implemented and grant program for a waterway res­ resource harvesters, and other unemployed that reduce the risk associated with poten­ toration program within the Soil and residents; and tial systemic financial market failure. Such Conservation Service [SCSJ at the U.S. (4) restoring waterways helps to increase regulations must encourage the regulated Department of Agriculture. No new the fishing potential of waterways and re­ entities to increase their use of clearing­ store diminished fisheries, which are impor­ money would be required to fund this tant to local and regional cultures and houses and multilateral netting agreements; program. Rather, the program would reduce their intraday debit positions; short­ economies and to low-income and ethnic cul­ en intervals between financial transactions draw on existing funds by redirecting tural groups who rely heavily on fish as a 20 percent of the SCS's existing Water­ food source. in cash markets and their final settlement; (b) POLICY .-Congress declares it is in the shorten intervals between delivery of and shed Protection and Flood Prevention Program budget to fund nonstructural, national interest to- payment for financial products; and other­ (1) protect and restore the chemical, bio­ wise reduce payments and settlement risk. community-based projects. logical, and physical components of streams REGULATORY CLARIFICATION Waterway restoration is a cost effec­ and rivers and associated wetland systems in The Act provides several technical amend­ tive way to control flooding, erosion order to restore the biological and physical ments that address, among other things, the and pollution runoff. This legislation structures, diversity, functions, and dynam­ treatment of master agreements, would fund local projects to establish ics of the stream and wetland ecological sys­ collateralization, exceptions to the auto­ riparian zones, stabilize steam banks tems; matic stay for setoffs by swap participants, and restore areas polluted by urban (2) replace deteriorating stormwater struc­ exceptions to fraudulent transfers by master runoff. Both urban and rural areas tural infrastructures and physical waterway netting agreements participants that receive would be eligible for project funding. alterations that are environmentally de­ certain transfers, and the liquidation of com­ The bill also contains an environ­ structive with cost effective, low mainte­ modities contracts, forward contracts and mental justice provision that would nance, and environmentally sensitive master netting agreements. projects; place a priority on projects in histori­ (3) promote the use of nonstructural means EFFECTIVE DAY cally disadvantaged communities over­ to manage and convey streamflow, The Act is to become effective one year looked by Federal cleanup efforts. stormwater, and flood waters; after enactment. Mr. President, this is sound, progres­ (4) increase the involvement of the public sive legislation. It addresses in an ef­ and youth conservation and service corps in By Mr. HATFIELD: fective way the pressing water resource the monitoring, inventorying, and restora­ S. 2292. A bill to amend the Water­ problems continuing to face this Na­ tion of watersheds in order to improve public shed Protection and Flood Prevention tion. As we search for ways to reinvent education, prevent pollution, and develop co­ Act to establish a Waterways Restora­ our Government to make it more re­ ordinated cl tizen and governmental partner­ tion Program, and for other purposes; ships to restore damaged waterways; and sponsive to the citizens of this country, (5) benefit business districts, local econo­ to the Committee on Agriculture, Nu­ we should look more and more to pro­ mies, and neighborhoods through the res­ trition, and Forestry. posals-like this one-that draw on the toration of waterways. WATERWAYS RESTORATION ACT initiative and ingenuity bubbling over SEC. 3. WORKS OF IMPROVEMENT DEFINED. •Mr. HATFIELD. Mr. President, de­ in our communi ties rather than one­ Section 2 of the Watershed Protection and velopment of the water resources of the size-fi ts-all, top-down Federal pro­ Flood Prevention Act (16 U.S.C. 1002) is United States has been a vital factor in grams. As Congresswoman FURSE has amended by striking the following sentence: noted, this is a funded Federal non­ "Each project must contain benefits directly the growth and prosperity of this coun­ related to agriculture, including rural com­ try. Our water resources have brought mandate, which allows communities to munities, that account for at least 20 percent us a strong agricultural base, power design and implement the restoration of the total benefits of the project." . generation, navigation and domestic projects they want for the streams, SEC. 4. WATERWAYS RESTORATION PROGRAM. and industrial water supplies. However, creeks and rivers in their neighbor­ The Watershed Protection and Flood Pre­ the gains we have made in terms of hoods. vention Act (16 U.S.C. 1001 et seq.) is amend­ productivity and efficiency have in I look forward to working with mem­ ed by adding at the end the following new many cases exacted a toll on our water bers of the Senate Agriculture Com­ section: mittee to advance this meritorious pro­ "SEC. 14. WATERWAYS RESTORATION PROGRAM. resources. Despite a concerted effort to "(a) DEFINITIONS.-As used in this section: improve the quality of our waterways, posal. I ask unanimous consent that the bill be printed in the RECORD. "(l) BIOTECHNICAL SLOPE PROTECTION.-The recent estimates indicate that 38 per­ There being no objection, the bill was term 'blotechnical slope protection' means cent of our rivers, 44 percent of our the use of live and dead plant material to re­ lakes, and 97 percent of the Great ordered to be printed in the RECORD, as pair and fortify a watershed slope, roadcut, Lakes remain degraded. follows: stream bank, or other site that is vulnerable This is a continuing problem worthy · s. 2292 to excessive erosion, using such systems as Be it enacted by the Senate and House of Rep­ brush p111ng, brush layering, brush matting, of the earnest efforts of each of us. The resentatives of the United States of America in fascines, joint plantings, and wood cribwalls. Clean Water Act has made great im­ Congress assembled, "(2) CHANNELIZATION.-The term 'channel­ provements in the quality of the Na­ SECTION 1. SHORT TITLE. ization' means removing the meanders and tion's waterways. The goals of the This Act may be cited as the "Waterways vegetation from a river or stream for pur­ Clean Water Act reauthorization legis- Restoration Act of 1994". poses of accelerating storm flow velocity, 79-059 0-97 Vol. 140 (Pt. 12) 13 16894 CONGRESSIONAL RECORD-SENATE July 18, 1994 filling habitat to accommodate land develop­ eligible entities to assist the entities in car­ "(4) PRIORITY PROJECTS.-Projects that ment and existing structures, or stabilizing a rying out waterway restoration projects. have any of the following attributes shall be bank with concrete or riprap. "(c) PROJECT ELIGIBILITY.- given priority by interdisciplinary teams es­ "(3) ELIGIBLE ENTITY.-The term 'eligible "(l) PROJECT OBJECTIVES.-A project shall tablished under subsection (g) in determin­ entity' means- be eligible for assistance under the program ing funding priorities: "(A) any tribal or local government, flood 1f the project is designed to achieve ecologi­ "(A) Projects located in or directly bene­ control district, water district, conservation cal restoration or protection and 1 or more fiting low-income or economically depressed district (as defined in section 120l(a)(2) of the of the following objectives: areas adversely impacted by poor watershed Food Security Act of 1985 (16 U.S.C. "(A) Flood damage reduction. management. 380l(a)(2)), agricultural extension 4-H pro­ "(B) Erosion conttol. "(B) Projects that will restore or create gram, nonprofit organization, or watershed "(C) Stormwater management. businesses or occupations in the project council; or "(D) Water quality enhancement. area. "(B) any unincorporated neighborhood or­ "(2) LOCATION OF PROJECTS.-A project may "(C) Projects providing opportunities for ganization, watershed council, or small citi­ be carried out under the program on Federal participants in Federal, State, tribal, and zen nongovernmental or nonprofessional or­ lands or on State or private lands in any local youth conservation and service corps ganization for which an incorporated non­ case in which the State or the private land and provide training in environmental res­ profit organization acts as a fiscal agent. owner is a sponsor or cosponsor of the toration, monitoring, and inventory work. "(4) FISCAL AGENT.-The term 'fiscal agent' project. "(D) Projects serving communities com­ means an incorporated nonprofit organiza­ "(3) PROJECT DESCRIPTIONS.-A project eli­ posed of minorities or Native Americans, in­ tion that- gible for assistance under the program shall cluding the development of outreach pro­ "(A) acts as a legal entity that is author­ include a project established for any of the grams to facilitate the participation by the ized to accept government or private funds following purposes: groups in the program. and pass them onto an unincorporated com­ "(A) Restoration and monitoring of de­ "(E) Projects identified as regional prior­ munity, cultural, or neighborhood organiza­ graded waterways, including revegetation, ities that have been planned within a re­ tion; and restoration of biological communities, and gional context and coordinated with Federal, "(B) has entered into a written agreement changes in land management practices. State, tribal, and local agencies. with such an unincorporated organization "(B) Reestablishment of stream channel "(F) Projects that will restore wildlife or that specifies the funding, program, and quasi-equilibrium. fisheries of commercial, recreational, sub­ working arrangements for carrying out a "(C) Restoration or establishment of wet­ sistence, or scientific concern. project under the program. land and riparian environments as part of a "(G) Projects training and employing fish­ "(5) NONPROFIT ORGANIZATION.-The term multiobjective stormwater management sys­ ers and other resource harvesters whose live­ 'nonprofit organization' means any organiza­ tem in which the restored or established lihoods have been adversely impacted by tion with a tax exempt status under section areas provide stormwater storage, detention, habitat degradation. 501(c)(3) of the Internal Revenue Code of 1986. and retention, nutrient filtering, wildlife "(H) Projects providing significant im­ "(6) PROGRAM.-The term 'program' means habitat, and increased biological diversity. provements in ecological values and func­ the Waterways Restoration Program estab­ "(D) Reduction of runoff. tions in the project area. lished by the Secretary under subsection (b). "(E) Stream bank restoration using the "(I) Projects previously approved under "(7) SECRETARY.-The term 'Secretary' principles of biotechnical slope protection. this Act that meet or are redesigned to meet means the Secretary of Agriculture, acting "(F) Creation and acquisition of multi­ the requirements of this section. through the Chief of the Soil Conservation objective floodplain riparian zones, including "(5) COST-BENEFIT ANALYSIS.-A project Service. removal of natural or humanmade levees, for shall be eligible for assistance under the pro­ "(8) STREAM CHANNEL QUASI-EQUILIBRIUM.­ floodwater and sediment storage, wildlife gram if an interdisciplinary team estab­ The term 'stream channel quasi-equilibrium' lished under subsection (g) determines that habitat, and recreation. the local social, economic, ecological, and means restoring channel geometrics, mean­ " (G) Removal of culverts and storm drains community benefits of the project based on ders, and slopes so that channel dimensions to establish natural environmental condi­ local needs, problems, and conditions equal are appropriately sized to the watershed and tions. or exceed the financial and social costs of the slope of the watershed, bankfull dis­ "(H) Organization of local watershed coun­ the project. charges, and sediment sizes and transport cils in conjunction with the implementation "(6) FLOOD DAMAGE REDUCTION.-A projec4 rates for the purpose of correcting excessive of on-the-ground action education or restora­ for which 1 of the purposes is to reduce flood channel erosion and deposition. tion projects. damages shall be designed for the level of "(9) WATERSHED COUNCIL.-The term 'wa­ "(I) Training of participants, including risk selected by the local sponsor and co­ tershed council' means a representative youth conservation and service corps pro­ sponsor of the project, taking into account group of local watershed residents (including gram participants, in restoration techniques local needs for the reduction of flood risks, the private, public, government, and non­ in conjunction with the implementation of the ability of the sponsor and cosponsor to profit sectors) organized to develop and on-the-ground action education or restora­ pay project costs, and community objectives carry out a consensus watershed restoration tion projects. to protect or restore environmental quality. plan that includes restoration, acquisition, "(J) Development of waterway restoration "(7) INELIGIBLE PROJECTS.-A project in­ and other activities. or watershed plans that are intended for use volving channelization, stream bank sta­ "(10) WATERWAY.-The term 'waterway' within the grant ·agreement period to carry bilization using a method other than a bio­ means any natural, degraded, seasonal, or out specific restoration projects. · technical slope protection method, or con­ created wetland on private or public land, in­ "(K) Restoration of any stream channel to struction of a reservoir shall not be eligible cluding a river, stream, riparian area, marsh, reestablish a meandering, bankfull flow for assistance under the program. pond, bog, mudflat, lake, or estuary. The channel, riparian vegetation, and floodplain "(d) PROGRAM ADMINISTRATION.- term includes any natural or humanmade in order- "(l) DESIGNATION OF PROGRAM ADMINISTRA­ watercourse on public or private land that is "(i) to restore the functions and dynamics TORS.-The Secretary shall designate a pro­ culverted, channelized, or vegetatively of a natural stream system to a previously gram administrator for each State who shall cleared, including a canal, irrigation ditch, channelized waterway; or be responsible for administering the program drainage way, or navigation, industrial, "(11) to convey larger flood flows as an al­ in the State. Except as provided by para­ flood control, or water supply channel. ternative to a channelization project. graph (2), the Secretary shall designate the "(11) YOUTH CONSERVATION AND SERVICE "(L) Release of reservoir flows to restore State Conservationist of the Soil Conserva­ CORPS.-The term 'youth conservation and riparian and instream habitat. tion Service of a State as the program ad­ service corps program' means a full-time, "(M) Carrying out watershed or wetland ministrator of the State. year-round youth corps program or a full­ programs that have undergone planning pur­ "(2) APPROVAL OF STATE AGENCIES.- time summer youth corps program described suant to other Federal, State, tribal, or local "(A) IN GENERAL.-A State may submit to in section 122(a)(2) of the National and Com­ programs and laws and have received nec­ the Secretary an application for designation munity Service Act of 1990 (42 U.S.C. essary environmental review and permits. of a State agency to serve as the program ad­ 12572(a)(2)). "(N) Carrying out early action projects ministrator of the State. "(b) ESTABLISHMENT.-The Secretary, act­ that a watershed council wants to carry out "(B) CRITERIA.-The Secretary shall ap­ ing through the Chief of the Soll Conserva­ prior to the completion of the required final prove an application of a State submitted tion Service, shall establish and carry out a consensus watershed plan of the council, if under subparagraph (A) if the application Waterways Restoration Program in accord­ the council determines that the project demonstrates- ance with this section. Under the program, meets the watershed management objectives "(!) the ab111ty of the State agency to so­ the Secretary shall provide technical assist­ of the council and is useful in fostering citi­ licit, select, and fund projects within a 1- ance and grants, on a competitive basis, to zen involvement in the planning process. year grant administration cycle; July 18, 1994 CONGRESSIONAL RECORD-SENATE 16895 "(11) the responsiveness of the State agen­ of the Fish and Wildlife Service, and, in a "(2) USE OF GRANT FUNDS.-Grant funds cy to the administrative needs and limita­ coastal area, the Assistant Administrator of made available under the program shall not tions of small nonprofit organizations and the National Marine Fisheries Service. The supplant other available funds for waterway low-income or minority communities; Secretary shall conduct such monitoring ac­ restoration projects, including developer "(111) the success of the State agency in tivities as are necessary to ensure the suc­ fees, mitigation, or compensation required carrying out State or local programs with cess and effectiveness of project determina­ as a permit condition or as a result of a vio­ objectives similar to the objectives of this tions made pursuant to this subparagraph. lation of the Federal Water Pollution Con­ section; and "(3) FINAL SELECTION.-The final deter­ trol Act (33 U.S.C. 1251 et seq.) or any other "(iv) the ability of the State agency to mination on whether to provide assistance law. jointly plan and carry out with Indian tribes for a project under the program shall be "(3) MAINTENANCE REQUIREMENT.-At least programs with objectives similar to this sec­ · made by the program administrator of the 1 project sponsor or cosponsor shall be des­ tion. State and shall be based on the recommenda­ ignated as responsible for ongoing mainte­ "(C) REDESIGNATION.-lf the Secretary de­ tions of the interdisciplinary team of the nance of the project. termines, after a public hearing, that a State State transmitted pursuant to paragraph "(i) NON-FEDERAL SHARE.- agency with an approved application under (2)(B). "(l) IN GENERAL.-Except as provided by this paragraph no longer meets the criteria "(g) APPOINTMENT OF INTERDISCIPLINARY paragraph (2), the non-Federal share of the set forth in subparagraph (B), the Secretary TEAMS.- cost of a project under this section, includ­ shall so notify the State and, 1f appropriate "(l) IN GENERAL.-There shall be estab­ ing structural and nonstructural features, corrective action has not been taken within lished in each State an interdisciplinary shall be 25 percent. a reasonable time, withdraw the designation team of specialists to assist in reviewing "(2) ECONOMICALLY DEPRESSED COMMU­ of the State agency as the program adminis­ project applications under the program. NITIES.-The Secretary may waive all or part trator of the State and designate the State "(2) APPOINTMENT.-The interdisciplinary of the non-Federal share of the cost of any Conservationist of the Soil Conservation team of a State shall be composed of the fol­ project that is to be carried out under the Service of the State as the program adminis­ lowing members: program in an economically depressed com­ trator of the State. "(A) APPOINTEES OF THE PROGRAM ADMINIS­ munity. "(3) TECHNICAL ASSISTANCE.-The State TRATOR.-Individuals to be appointed on an "(3) IN-KIND CONTRIBUTIONS.-Non-Federal Conservationist of a State shall continue to annual basis by the program administrator interests may meet any portion of the non­ carry out the technical assistance portion of of the State, including at least 1 representa­ Federal share of the cost of a project under the program in the State even 1f the State tive of each of the following specialties: this section through in-kind contributions, receives approval of an application submit­ "(i) Hydrologists. including contributions of labor, involve­ ted under paragraph (2)(A). "(ii) Plant ecologists. ment of youth service and conservation corps program participants, materials, "(e) GRANT APPLICATION CYCLE.- "(111) Aquatic biologists. equipment, consulting services, and land. "(l) IN GENERAL.-A grant under the pro­ "(iv) Biotechnical slope protection experts. "(4) REGULATIONS.-Not later than 1 year gram shall be awarded on an annual basis. "(v) Landscape architect or planners. "(2) GRANT AGREEMENTS.-The program ad­ "(vi) Members of the agricultural commu­ after the date of enactment of this section, nity. the Secretary shall issue regulations to es­ ministrator of a State may enter into a tablish procedures for granting waivers grant agreement with an eligible entity to "(vii) Representatives of the fish and wild­ under paragraph (2). permit the entity to phase in a project under life agency of the State. "(j) LIMITATIONS ON COSTS OF ADMINISTRA­ the program for a period of not to exceed 3 "(viii) Representatives of the soil and TION AND TECHNICAL ASSISTANCE.-Of the years, except that the project shall remain water conservation agency of the State. total amount made available for any fiscal subject to reevaluation each year as part of "(B) REPRESENTATIVES OF FEDERAL AGEN­ year to carry out this section- the annual funding cycle. CIES.-One representative of each of the fol­ "(l) not to exceed 15 percent may be used "(f) SELECTION OF PROJECTS.- lowing Federal agencies to be appointed on for administrative expenses; and "(l) APPLICATIONS.-To receive assistance an annual basis by the appropriate regional "(2) not to exceed 25 percent may be used to carry out a project under the program in or State director of the agency: for providing technical assistance. a State, an eligible entity shall submit to "(i) The Soil Conservation Service. "(k) CONSULTATION WITH FEDERAL AGEN­ the program administrator of the State an "(ii) The Environmental Protection Agen­ CIES.-In establishing and carrying out the application that is in such form and contains cy. program, the Secretary shall consult with such information as the Secretary may by "(iii) The National Marine Fisheries Serv­ the heads of appropriate Federal agencies, regulation require. ice (in a coastal State). including- "(2) REVIEW OF APPLICATIONS BY INTER­ "(iv) The United States Fish and Wildlife "(l) the Administrator of the Environ­ DISCIPLINARY TEAMS.- Service. mental Protection Agency; "(A) TRANSMITTAL.-Each application for "(3) AFFILIATION OF MEMBERS.-A member "(2) the Assistant Secretary of the Army assistance under the program received by the appointed pursuant to paragraph (2)(A) may for Civil Works; program administrator of a State shall be be an employee of a Federal, State, tribal, or "(3) the Director of the United States Fish transmitted to the interdisciplinary team of local agency or nonprofit organization. and Wildlife Service; the State established pursuant to subsection "(4) FEDERAL ADVISORY COMMITTEE ACT.­ "(4) the Commissioner of the Bureau of (g). The Federal Advisory Committee Act (5 Reclamation; "(B) REVIEW.-On an annual basis, the U.S.C. App. 2) shall not apply to an inter­ "(5) the Director of the Geological Survey; interdisciplinary team of each State shall­ disciplinary team established under this sub­ "(6) the Chief of the Forest Service; and "(1) review applications transmitted to the section. "(7) the Assistant Administrator for the team pursuant to subparagraph (A); "(h) CONDITIONS FOR RECEIVING ASSIST­ National Marine Fisheries Service. "(11) determine the eligibility of proposed ANCE.- "(l) CITIZENS OVERSIGHT COMMITTEE.- projects for funding under the program; "(l) PROJECT SPONSORS AND COSPONSORS.­ "(l) ESTABLISHMENT.-The Governor of "(iii) make recommendations concerning "(A) REQUIREMENT.-To be eligible for as­ each State shall establish a citizens over­ funding priorities for the eligible projects; sistance under the program, a project shall sight committee to evaluate management of and have as project participants both a citizens the program in the State. The membership of "(iv) transmit the findings and rec­ organization and a State, regional, tribal, or a citizens oversight committee shall rep­ ommendations of the team to the program local governing body, agency, or district. resent a diversity of regions, cultures, and administrator of the State. "(B) PROJECT SPONSOR.-One of the project watershed management interests. "(C) PROJECT OPPOSITION BY FEDERAL REP­ participants described in subparagraph (A) "(2) PROGRAM COMPONENTS.-A citizens RESENTATIVES.-lf 2 or more of the members shall be designated as the project sponsor. oversight committee established under para­ of an interdisciplinary team of a State ap­ The project sponsor shall act as the principal graph (1) shall evaluate the following pro­ pointed pursuant to clause (ii), (iii), or (iv) of party making the grant application and have gram components: subsection (g)(2)(B) are opposed to a project the primary responsibility for executing the "(A) Program outreach, accessibility, and that is supported by a majority of the mem­ grant agreement, submitting invoices, and service to low-income and minority · ethnic bers of the interdisciplinary team, a deter­ receiving reimbursements. communities and displaced resource harvest­ mination on whether the project is eligible "(C) PROJECT COSPONSOR.-The other ers. to receive assistance under the program project participant described in subpara­ "(B) The manageability of grant applica­ shall be made by the Chief of the Soil Con­ graph (A) shall be designated as the project tion procedures, contracting transactions, servation Service. In making a determina­ cosponsor. The project cosponsor shall, joint­ and invoicing for disbursement for small tion under this subparagraph, the Chief shall ly with the project sponsor, support and ac­ nonprofit organizations. consult with the Administrator of the Envi­ tively participate in the project. There may "(C) The success of the program in sup­ ronmental Protection Agency, the Director be more than 1 cosponsor for any project. porting the range of the program objectives, 16896 CONGRESSIONAL RECORD-SENATE July 18, 1994 including evaluation of the environmental mental interests are given full weight. SECTION 1. TRADE NEGOTIATING OBJECTIVES. impacts of the program as carried out. And it is undermining longstanding bi­ Section 1101 of the Omnibus Trade and "(D) The number of jobs created for identi­ partisan support for expanded trade. Competitiveness Act of 1988 (19 U.S.C. 2901) is fied target groups. amended as follows: "(E) The diversity of job skills fostered for This bill will ensure that the environ­ (1) OVERALL TRADE NEGOTIATING OBJEC­ long-term watershed related employment. mental impact is considered as a trade TIVES.-Subsection (a) is amended- "(F) The extent of involvement of youth agreement is being negotiated in the (A) in paragraph (2) by striking "and" conservation and service corps programs. first place. after the semicolon; "(3) ANNUAL REPORT.-The program admin­ Further, this legislation will ensure (B) in paragraph (3) by striking the period istrator of each State shall issue an annual that future trade agreements do not and inserting"; and"; and report summarizing the program evaluation lower domestic environmental stand­ (C) by adding after paragraph (3) the fol­ under paragraph (1). The report shall be ards. Rather, it will ensure that future lowing: signed by each member of the citizens over­ "(4) increased compatibility of trade agree­ sight committee of the State and shall be trade agreements promote higher ments with environmental protection, con­ submitted to the Secretary. international standards. This bill rec­ servation, and sustainable development.". "(4) FEDERAL ADVISORY COMMITTEE ACT.­ ognizes the link between trade and the (2) PRINCIPAL TRADE NEGOTIATING OBJEC­ The Federal Advisory Committee Act (5 environment in the following general TIVES.-Subsection (b) is amended as follows: U.S.C. App. 2) shall not apply to a citizens ways: (A) DISPUTE SETTLEMENT.-Paragraph oversight committee established under this It will include environmental objec­ (l)(B) ls amended to read as follows: subsection. tives among the negotiating goals of "(B) to ensure- that such mechanisms with­ "(m) FUNDING.- future trade agreements; in trade agreements to which the United "(l) MINIMUM AMOUNTS.-Not less than 20 States is a party provide for more effective percent of the total amount made available It will formally include environ­ and expeditious resolution of disputes, im­ to carry out this Act for any fiscal year be­ mental representatives as members of prove transparency and public participation, ginning after September 30, 1994, shall be the private sector trade advisory com­ and enable better enforcement of United used by the Secretary to carry out this sec­ mittees so that such consultation with States rights, including those relating to en­ tion. trade negotiators will include an envi­ vironment and conservation.". "(2) TRANSFERRED FUNDS.-The Secretary ronmental perspective; and (B) TRANSPARENCY.-Paragraph (3) is may accept transfers of funds from other amended by inserting ", including those re­ Federal agencies to carry out this section. It will formalize the participation of lated to environment and conservation," "(3) APPLICABILITY OF REQUIREMENTS.­ the Environmental Protection Agency, after "trade matters". Funds made available to carry out this sec­ the Department of the Interior, and the (C) DEVELOPING COUNTRIES.-Paragraph (4) tion, and financial assistance provided with National Oceanic and Atmospheric Ad­ is amended- the funds, shall not be subject to any re­ ministration in the interagency trade (!) in subparagraph (A) by striking "and" quirements of this Act other than the re­ committees so that the environmental after the semicolon; quirements of this section.".• perspective is presented and consid­ (11) in subparagraph (B) by striking the pe­ ered. riod and inserting"; and"; and By Mr. KERRY: (11i) by adding after subparagraph (B) the S. 2293. A bill to modify the negotiat­ This bill will not require renegoti­ following: ing objectives of the United States for ation of GATT. The achievements of "(C) to take into account the particular future trade agreements, and for other the Uruguay round are substantial. The needs of developing countries in trade mat­ purposes; to the Committee on Fi­ round will lower international barriers ters relating to environment and conserva­ to trade, which will lead to increased tion.". nance. (D") UNFAIR TRADE PRACTICES.-Paragraph TRADE AND ENVIRONMENT HARMONIZATION ACT trade volume, global wealth, and U.S. jobs. This bill does not undermine (8)(A) is amended- OF 1994 (1) by striking "the GATT and nontariff • Mr. KERRY. Mr. President, I am these achievements in the slightest. measure" and inserting "trade"; and proud today to introduce the Trade and Rather, it is intended to enhance them (ii) by inserting "and other practices po­ Environment Harmonization Act of by acknowledging that at the same tentially harmful to the environment" after 1994 which seeks to increase the com­ time we are breaking down barriers to "resource input subsidies". patibility of trade agreements with en­ trade we must replace them with clear (E) INTELLECTUAL PROPERTY.-Paragraph rules of the game for the new global (10) is amended- vironmental protection, conservation, (1) in subparagraph (C) by striking "and" and sustainable development. It no market. If we do not think before we act, we after the semicolon; longer makes sense, economically or (11) in subparagraph (D) by striking the pe­ politically, to discuss trade issues run the risk of creating a new era of riod and inserting"; and"; and without including environmental con­ robber baron capitalism, in which na­ (iii) by adding at the end the following: siderations. This bill will ensure that tions, competing for capital, drive "(E) to promote compatibility of estab­ future trade negotiations consider en­ labor and environmental standards lished standards of the World Trade Organi­ vironmental issues. down to the least common denomina­ zation relating to intellectual property with tor. Most of us would prefer a future of existing international biological diversity Although it is widely accepted that conventions.". trade and international trade rules can enlightened capitalism in which the number of U.S. jobs increase, the world (F) FOREIGN INVESTMENT.-Paragraph (11) have environmental consequences, is amended- under current practice, environmental economy grows, and international (!) by striking "direct" in the paragraph issues are neglected during initial ne­ standards are raised to the highest heading and each place it appears in the gotiations of trade agreements and achievable levels. text; and then must be addressed hastily in the I urge my colleagues to support the (11) in subparagraph (A)(ii)- final days of negotiation or during the Trade and Environment Harmonization (I) by striking "and" at the end of sub­ Act of 1994 and to support inclusion of clause (I); political debate over implementation (II) by striking the period at the end of legislation. This means that procedures its provisions in the Uruguay round implementing legislation. subclause (II) and inserting ", and"; and for assessing environmental con­ (III) by adding at the end the following: sequences have been bogged down in Mr. President, I ask unanimous con­ "(III) will promote environmentally sen­ legal debates and partisan discussions sent that the text of the bill be printed sitive foreign investment and discourage after a trade agreement has been nego­ in the RECORD. countries from attracting or maintaining tiated. There being no objection, the bill was foreign investment by relaxing domestic This practice undermines the ability ordered to be printed in the RECORD, as health, safety, or environmental measures.". follows: (G) ADDITIONAL OBJECTIVES.-Subsection of our trade negotiators to be fully in­ (b) is amended by adding at the end the fol­ formed about environmental ramifica­ s. 2293 lowing: tions of an agreement's provisions dur­ Be it enacted by the Senate and House of Rep­ "(17) ENVIRONMENT AND CONSERVATION.­ ing negotiation. It undermines their resentatives of the United States of America in The principal negotiating objectives of the ability to ensure that U.S. environ- Congress assembled, United States regarding environment and July 18, 1994 CONGRESSIONAL RECORD-SENATE 16897 conservation issues related to trade and for­ merce, Labor, and Defense, and the Adminis­ "(G) to develop guidelines with respect to eign investment are to- trators of the Environmental Protection trade in domestically prohibited or severely "(A) promote compatibility between trade Agency and the National Oceanic and At­ restricted goods; agreements and sustainable development, mospheric Adffiinistration, or the heads of "(H) to achieve progress toward eliminat­ and foster the continual protection and im­ other executive". ing agricultural subsidies that distort trade provement of the environment, while rec­ (4) MEETINGS AT CLOSE OF NEGOTIATIONS.­ and harm the environment; and ognizing national sovereignty; Subsection (e) is amended by adding at the "(I) to create an open process to consider "(B) increase cooperation on trade-related end the following: continually new trade-related initiatives to environmental policies to better conserve, "(4) The report of the appropriate sectoral promote sustainable development, internal­ protect, and enhance the environment; or functional committee or committees ize environmental costs, and enhance envi­ "(C) avoid trade distortions or barriers under paragraph (1) shall include an advisory ronmental protection and the effectiveness that undermine environmental protection opinion as to the significant environmental of conservation measures. and conservation or that constitute dis­ effects of trade conducted within the sector "(2) BILATERAL TRADE OR NAFTA ACCES­ guised protectionism; or within the functional area.". SION.-The principal negotiating objectives "(D) promote transparency and public par­ (5) TRADE SECRETS AND CONFIDENTIAL IN­ of the United States with respect to bilateral ticipation, and increase consumer informa­ FORMATION.-Subsection (g)(3) is amended by trade accession to the North American Free tion in the development of environmental striking "and the Secretaries" and all that Trade Agreement shall include- laws, regulations, and policies; and follows through "or other executive" and in­ "(A) to establish, where relevant for the "(E) promote compatibility of trade agree­ serting ", the Secretaries of the Interior, country seeking accession, minimum envi­ ments with international environmental Commerce, Labor, Defense, and Agriculture, ronmental safeguards that are not less than agreements to protect shared global re­ and the Administrators of the Environ­ those contained in the North American Free sources. mental Protection Agency and the National Trade Agreement and the North American "(18) WOOD AND WOOD PRODUCTS.-The prin­ Oceanic and Atmospheric Administration, or Agreement on Environmental Cooperation; cipal negotiating objectives of the United the heads of other executive". and States regarding trade in wood and wood (6) ADVISORY COMMITTEE SUPPORT.-Sub­ "(B) to implement such additional meas­ products are to- section (h) is amended by striking "and the ures as may be needed to address country­ "(A) promote sustainable forestry prac­ Secretaries" and all that follows through "or specific trade and environment issues. tices; and other executive" and inserting ", the Sec­ "(3) ASIA-PACIFIC ECONOMIC COOPERATION "(B) increase market access for value­ retaries of the Interior, Commerce, Labor, FORUM.-The principal negotiating objectives added wood products and wood products that Defense, Agriculture, and the Treasury, and of the United States in the Asia-Pacific Eco­ are produced from timber that is sustainably the Administrators of the Environmental nomic Cooperation forum (APEC) shall in­ harvested.". Protection Agency and the National Oceanic clude- SEC. 2. CITIZEN PARTICIPATION. and Atmospheric Administration, or the "(A) to develop a program relating to envi­ Section 135 of the Trade Act of 1974 (19 heads of other executive". ronment and conservation measures of rel­ U.S.C. 2155) is amended as follows: (7) CONSULTATION WITH ADVISORY COMMIT­ evance to member countries of APEC; and (1) ADVISORY COMMITTEE FOR TRADE POLICY TEES.-Subsection (i) is amended- "(B) to establish a permanent institutional AND NEGOTIATIONS.-Subsection (b)(l) is (A) by inserting "the Interior," after Sec­ mechanism or secretariat and a timetable amended by inserting "nongovernmental en­ retaries of"; and for implementing the program developed vironmental and conservation organiza­ (B) by striking "the Treasury, or other ex­ under subparagraph (A).".• tions," after "governments,". ecutive" and inserting "and the Treasury (2) GENERAL POLICY, SECTORAL, OR FUNC­ and the Administrator of the Environmental By Mr. INOUYE (for himself, Mr. TIONAL COMMITTEES.-Subsection (C) is Protection Agency and the National Oceanic AKAKA, Mr. BAUCUS, Mr. BINGA­ amended- and Atmospheric Administration, or the MAN, Mr. BOREN, Mrs. BOXER, (A) in paragraph (1)- heads of other executive". Mr. BRADLEY, Mr. BRYAN, Mr. (i) by inserting "environment and con­ (8) PRIVATE ORGANIZATIONS OR GROUPS.­ BURNS, Mr. CAMPBELL, Mr. servation," after "general policy advisory Subsection (j) is amended by inserting "envi­ committees for''; ronment and conservation," after "govern­ CHAFEE, Mr. COCHRAN, Mr. (ii) by inserting "environment and con­ ment". COHEN, Mr. CONRAD, Mr. CRAIG, Mr. DASCHLE, Mr. DECONCINI, servation," after "representative of all"; SEC. 3. ADDITIONAL NEGOTIATING OBJECTIVES. (111) by striking "and the Secretaries" and Mr. DODD, Mr. DOMENIC!, Mr. all that follows through "or other executive" Section 1101 of the Omnibus Trade and DORGAN, Mr. DURENBERGER, Mr. and inserting ", the Secretaries of the Inte­ Competitiveness Act of 1988 is amended by adding at the end the following: EXON, Mr. GoRTON, Mr. GRA­ rior, Commerce, Defense, Labor, Agriculture, HAM, Mr. HATCH, Mr. HEFLIN, and the Treasury, and the Administrators of "(c) SPECIFIC OBJECTIVES FOR PARTICULAR the Environmental Protection Agency and FORUMS.- Mr. HOLLINGS, Mrs. KASSEBAUM, the National Oceanic and Atmospheric Ad­ "(l) WTO.-The principal negotiating ob­ Mr. KEMPTHORNE, Mr. KENNEDY, ministration, or the heads of other execu­ jectives of the United States regarding envi­ Mr. LAUTENBERG, Mr. LEVIN, tive"; and ronment and conservation in the World Mr. MATHEWS, Mr. McCAIN, Mr. (iv) by inserting "and Administrators" Trade Organization and the Committee on MITCHELL, Mr. MURKOWSKI, after "such Secretaries"; Trade and Environment of the World Trade Mrs. MURRAY, Mr. NICKLES, Mr. (B) in paragraph (2)- Organization are- PELL, Mr. REID, Mr. ROTH, Mr. (i) by inserting "environment and con­ "(A) to develop guidelines for the use of SIMON' Mr. SPECTER, Mr. STE­ servation," after "representative of all"; national trade and investment measures de­ VENS, and Mr. WELLSTONE): (11) by striking "and the Secretaries" and signed to protect the environment, including all that follows through " or other executive" those related to the product life cycle; S.J. Res. 210. A joint resolution to and inserting ", the Secretaries of the Inte­ "(B) to increase transparency, openness, designate the month of November 1994 rior, Commerce, Labor, Agriculture, and the and public participation in dispute settle­ as "National Native American Heritage Treasury, and the Administrators of the En­ ment procedures; Month"; to the Committee on the Judi­ vironmental Protection Agency and the Na­ "(C) to improve the rules and agreements ciary. tional Oceanic and Atmospheric Administra­ of the World Trade Organization regarding NATIONAL NATIVE AMERICAN HERITAGE MONTH tion, or the heads of other executive"; and measures to protect domestic environmental (iii) in subparagraph (B)- standards and conservation measures; • Mr. INOUYE. Mr. President, on be­ (I) by redesignating clauses (111) through "(D) to promote greater compatibility of half of myself and 44 colleagues, we are (v) as clauses (iv) through (vi), respectively; the rules and agreements of the World Trade pleased to present to the Senate a Sen­ and Organization with international environ­ ate joint resolution that will designate (II) by inserting after clause (11) the follow­ mental agreements that rely upon trade the month of November 1994 as "Na­ ing: sanctions for enforcement; tional Native American Heritage "(111) environmental impacts of liberalized "(E) to consider incentives, including im­ Month." trade and investment,". proved market access, that might promote (3) ADVICE AND INFORMATION.-Subsection resolution of environmental issues relating With the passage of this resolution (d) is amended by striking "and the Sec­ to international trade; every 2 years, native Americans have retaries" and all that follows through "or "(F) to consider intellectual property rules shared their cultural heritage with the other executive" and inserting ", the Sec­ that may promote greater protection of bio­ non-Indians. Activities that have en­ retaries of the Interior, Agriculture, Com- diversity; hanced public awareness of our native 16898 CONGRESSIONAL RECORD-SENATE July 18, 1994 Americans have been especially bene­ ployees under the Fair Labor Stand­ Agricultural Credit Insurance Fund Pro­ ficial to teachers from elementary ards Act of 1938 [29 U.S.C. 201 et seq.]. gram Account: For the cost of direct loans, including the schools to universities. Activities such SENATE JOINT RESOLUTION 165 cost of modifying loans, as defined in section as bringing in native American speak­ At the request of Mr. COCHRAN, the 502 of the Congressional Budget Act of 1974, ers, artists, dancers, crafts people and name of the Senator from Florida [Mr. as follows: emergency loans, $7,670,000. native American elders to share their GRAHAM] was added as a cosponsor of Provided, That these amounts are des­ cultural heritage with the non-Indians. Senate Joint Resolution 165, a joint ignated by Congress as an emergency re­ Agencies within the Federal Govern­ resolution to designate the month of quirements pursuant to section 251 ment, various organizations, and inter­ September 1994 as "National Sewing (b)(2)(D)(i) of the Balanced Budget and Emer­ ested corporations set up funding on a Month." gency Deficit Control Act of 1985, as amend­ yearly basis to plan their activities. ed, and that such amounts shall be available SENATE JOINT RESOLUTION 192 only to the extent the President designates These even:ts are geared to educating At the request of Mr. KOHL, the such use an emergency requirements pursu­ the public about native Americans. names of the Senator from Utah [Mr. ant to such Act. Native Americans themselves are es­ HATCH], the Senator from Idaho [Mr. Of the amount appropriated in the Emer­ pecially encouraged during this time to CRAIG], the Senator from Alaska [Mr. gency Supplemental Appropriations Act of share their stories and their art with STEVENS], the Senator from California 1994, Public Law 103-211, for Watershed and the world. [Mrs. BOXER], the Senator from New Flood Prevention Operations, S23 million is Therefore, I ask you to join me in transferred to the Emergency Conservation Jersey [Mr. BRADLEY], the Senator Program. this special gesture in recognizing the from Rhode Island [Mr. PELL], the Sen­ original peoples of this land, the true ator from Nevada [Mr. REID], and the native Americans. They deserve a spe­ Senator from West Virginia [Mr. LEAHY AMENDMENT NO. 2304 cial month to honor their significant ROCKEFELLER] were added as cospon­ Mr. BUMPERS (for Mr. LEAHY) pro­ contributions to our country as much sors of Senat'::l Joint Resolution 192, a posed amendment to the bill H.R. 4554, as other Americans have been recog­ joint resolution to designate October supra; as follows: nized with a commemorative month 1994 as "Crime Prevention Month." On the appropriate page insert at the end every year.• SENATE RESOLUTION 170 of Sec. 716 the following ", unless additional At the request of Mr. CHAFEE, the acres in excess of the 100,000 acre limitation can be enrolled without exceeding $93,200,000, ADDITIONAL COSPONSORS name of the Senator from Colorado provided that the unused portion of the fis­ [Mr. CAMPBELL] was added as a cospon­ s. 359 cal year 1994 appropriation shall be used in sor of Senate Resolution 170, a resolu­ addition to the $93,200,000." At the request of Mr. DECONCINI, the tion to express the sense of the Senate names of the Senator from New Jersey that obstetrician-gynecologists should [Mr. BRADLEY], the Senator from Iowa be included as primary care providers NOTICE OF HEARING [Mr. GRASSLEY], the Senator from for women in Federal laws relating to COMMITTEE ON AGRICULTURE, NUTRITION, AND Delaware [Mr. BIDEN], and the Senator the provision of health care. from Illinois [Ms. MOSELEY-BRAUN] FORESTRY were added as cosponsors of S. 359, a SUBCOMMITTEE ON AGRICULTURAL RESEARCH bill to require the Secretary of Treas­ AMENDMENTS SUBMITTED CONSERVATION, FORESTRY AND GENERAL LEG­ ury to mint coins in commemoration of ISLATION the National Law Enforcement Officers Mr. LEAHY. Mr. President, I would Memorial, and for other purposes. AGRICULTURAL, RURAL DEVELOP­ like to announce that the Senate Com­ MENT, FOOD AND DRUG ADMIN­ mittee on Agriculture, Nutrition, and s. 1415 ISTRATION AND RELATED AGEN­ Forestry Subcommittee on Agricul­ At the request of Mr. PRYOR, the CIES APPROPRIATIONS ACT OF tural Research Conservation, Forestry, name of the Senator from South Caro­ 1995 and General Legislation will hold a lina [Mr. HOLLINGS] was added as co­ hearing on reauthorization of the Fed­ sponsor of S. 1415, a bill to amend the eral Insecticide, Fungicide and Internal Revenue Code of 1986 to clarify DASCHLE (AND KERREY) Rodenticide Act (S. 985, S. 1478, S. 2050). provisions relating to church pension AMENDMENT NO. 2302 The hearing will be held on Thursday, benefit plans, to modify certain provi­ Mr. DASCHLE (for himself and Mr. July 28, 1994, at 2:30 p.m. in SR-332. sions relating to participants in such KERREY) proposed an amendment to Senator TOM DASCHLE will preside. plans, to reduce the complexity of and the bill (H.R. 4554) making appropria­ For further information, please con­ to bring workable consistency to the tions for Agriculture, Rural Develop­ tact Eric Washburn at 224-2321. applicable rules, to promote retirement ment, Food and Drug Administration, savings and benefits, and for other pur­ and Related Agencies programs for the poses. fiscal year ending September 30, 1995, ADDITIONAL STATEMENTS s. 2091 and for other purposes; as follows: At the request of Mr. SARBANES, the On page 52, line 23, after "S47 ,500,000," in­ names of the Senator from Rhode Is­ sert the following: "of which Sl,000,000 shall HAITI land [Mr. PELL] and the Senator from be available to carry out the Northern Great •Mr. FAIRCLOTH. Mr. President, Maryland [Ms. MIKULSKI] were added as Plains Rural Development Act (if enacted); President Clinton has again failed to cosponsors of S. 2091, a bill to amend and". establish a clear and decisive strategy certain provisions of title 5, United in the realm of foreign policy. It is now States Code, in order to ensure equal­ HEFLIN AMENDMENT NO. 2303 evident that the administration is ity between Federal firefighters and Mr. HEFLIN proposed an amendment leaning toward a military takeover of other employees in the civil service to the bill, H.R. 4554, supra; as follows: Haiti. I strongly advise the President and other public sector firefighters, On page 88, after line 12 insert: to consider the likely repercussions of and for other purposes. SEC. 742. In addition to funds made avail­ such a move. With the casualties suf­ s. 2274 able elsewhere in this Act, there are hereby fered in Somalia, it is remarkable that At the request of Mr. SARBANES, the appropriated as of the date of enactment of the administration could even consider name of the Senator from Arizona [Mr. this Act the following, to remain available deploying troops into the tumultuous through September 30, 1995: DECONCINI] was added as a cosponsor of Emergency Community Water Assistance environment plaguing Haiti. Last S. 2274, a bill to provide for the applica­ Grants, Sl0,000,000; week, 2,000 marines were deployed from tion of a 6-year statute of limitations Very Low-Income Housing Repair Grants, North Carolina to the Caribbean Sea. to certain claims filed by Federal em- $15,000,000; Mr. President, let there be no mincing July 18, 1994 CONGRESSIONAL RECORD-SENATE 16899 of my words, If one of these soldiers re­ the past year, but reflect historical connec­ The foolishness of avoiding devel­ turns in a body bag, the occupation tions as well. Haiti was the first nation in opmental testing was made all too ob­ will rightly be considered a disaster by the Western Hemisphere in which blacks vious by the B-lB and the ALQ-161. threw off the yoke of slavery. It thus holds the American public. special meaning for most black Americans. Facing budgetary and schedule pres­ Mr. President, I am inserting an arti­ Moreover, the daily killing, rape and arrest sures, the B-lB program office ducked cle by Mr. David Colburn who is serv­ of innocent Haitians during the past year developmental testing. The result: dis­ ing in my Washington office as a spe­ and U.S. refusal to make an exception to its aster. The ALQ-161 failed operational cial assistant this summer on foreign immigration laws for Haitians fleeing the testing miserably. In fact, because the policy matters. Mr. Colburn is a his­ country, as it has for those who fled the fundamental design of the system was tory professor and assistant dean of the former Soviet Union, deeply angers blacks. itself flawed, any fix involved a major Most are convinced that a white population College of Arts and Sciences at the would never be accorded the same treatment. compromise of capability. In the end, University of Florida with expertise on What were Clinton and his aides thinking millions of dollars and almost a decade international politics. The following when they opted to case the fate of Haiti later, we still do not have a cost-effec­ editorial takes an insightful look at with the Congressional Black Caucus? tive solution to the many problems ex­ the external factors that are shaping Certainly, the most outspoken critics of perienced by the ALQ-161. Mr. Clinton's foreign policy. Unfortu­ the Clinton policy in Haiti came from these It appears to me that the F-22, a black congressmen within his own party. nately, it appears that the administra­ More important, these members also rep­ vastly more complicated system boast­ tion has again chosen politics over resent the voting block that most strongly ing sensor fusion and integrated avi­ sound policy, at the expense of our sol­ supported Clinton in the presidential elec­ onics, is headed for exactly the same diers and the Haitian people. tion. It thus appears that political concerns outcome. The F-22 program office is The article follows: drove the Clinton policy shift. skipping developmental testing and INVADING HAITI: LOOK WHO MAY BE CALLING There could not be a worse way to pursue waiting until operational testing, when THE SHOTS American's foreign-policy objectives. Black Americans, understandably, cannot view the F-22 already will be in production, (By David R. Colburn) events in Haiti unemotionally, and the presi­ to discover whether its multibillion­ Has President Clinton decided to turn over dent surely knows this. To place American dollar avionics package actually the nation's foreign policy in Haiti to the policy efforts in Haiti in the hands of the works-not turns on, but actually in­ Congressional Black Caucus in a move that Congressional Black Caucus is to escalate creases the likelihood that the F-22 is calculated to lead to direct military inter­ the demands for intervention: it is unavoid­ can dominate the skies over enemy ter­ vention? The answer seems to be yes. able. ritory and survive. The Wall Street Journal reported that Clin­ If this becomes the precedent for U.S. mili­ ton appointed William Gray as U.S. special tary action, what is to stop the United Fortunately, I am not alone in my adviser on Haiti in order to quiet the steady States from using troops to oust Fidel Cas­ concerns. I ask that a letter to Air stream of criticism by members of the Con­ tro or to allow other American ethnic groups Force Secretary Widnall signed by my­ gressional Black Caucus. Gray, a former con­ to shape our policies abroad? self and my esteemed colleagues, Sen­ gressman and a leader of the caucus, met The last time we entered Haiti, it took 19 ators DECONCINI and MACK, be inserted with its members shortly after he was named years before we withdrew American Marines. in the RECORD at the end of my re­ Clinton's special adviser. Other reports also Event in that country today are no more reveal that Gray has communicated with harsh or corrupt than they were in 1915, and marks. former caucus colleagues since taking office, political stability is no more likely. The letter follows: while at the same time ignoring the advice The Economist, a British magazine, has de­ U.S. SENATE, and input of State Department members who scribed Clinton's foreign-policy initiative as Washington, DC, July 13, 1994. have extensive expertise on Haiti. "simply embarrassing." The decision to rely Hon. SHEILA WIDNALL, This is not the first time the president has on the Congressional Black Caucus to help Secretary of the Air Force, the Pentagon, Wash­ taken such an capricious approach to foreign define U.S. policies is Haiti warrants the ington, DC. policy, and it is likely to be just as devastat­ same assessment. Are members of the caucus DEAR SECRETARY WIDNALL: We are writing ing as his efforts in Eastern Europe. In devis­ and other Americans prepared for an ex­ to express our deep concern over the fact ing American policy in Bosnia, Clinton and tended U.S. military stay in Haiti, and are that the F-22 Test & Evaluation Master Plan Secretary of State Warren Christopher also they prepared for the death of American (TEMP) by-passes the Real-time Electro­ failed to consult their own in-house experts, soliders--both black and white? I doubt that magnetic Digitally Controlled Analyzer & including Warren Zimmerman, a 30-year vet­ they have even thought about it.• Processor (REDCAP) and Air Force Elec­ eran of the State Department who was the tronic Warefare Evaluation Simulator last ambassador to Yugoslavia and who was (AFEWES) facilities. As a result, no elec­ widely regarded as one of the department's CONCERN OVER THE F-22 tronic combat (EC) effectiveness testing con­ best-informed East European experts. The •Mr. D'AMATO. Mr. President, having firming whether the F-22's combination of result in Bosnia has been an administration had the opportunity to thoroughly re­ stealth, speed, and integrated avionics actu­ policy that gets redefined weekly and that view the F-22 test and evaluation mas­ ally exploit and/or degrade air defenses, im­ has been wholly unsuccessful in easing the ter plan [TEMP], I was very disturbed prove mission effectiveness, or increase sur­ crisis. vivability will be conducted until Oper­ The administration has gone about han­ by the apparent lack of electronic com­ ational Test & Evaluation (OT&E). As the dling events in Haiti in much the same man­ bat effectiveness testing prior to flight ALQ-161 vividly demonstrates to this day, ner, although, unlike Bosnia, the president's testing. My concern only grew as an­ OT&E is too late to implement cost-effective "new" approach seems certain to result in swers from the Air Force to followup fixes. U.S. military action. questions made it clear that the serv­ The Air Force justification for avoiding Relishing its newfound influence, the Con­ ice is very comfortable with the notion REDCAP and AFEWES is two-fold: (1) "[t]he gressional Black Caucus has also insisted of dodging effectiveness testing until integrated avionics concept of the F-22 that exiled President Jean-Bertrand Aristide the F-22 is already in production. hinges on sensor fusion ... requir[ing] the be fully restored to power. Despite Aristide's Unfortunately, developmental test­ successful correlation of multiple signals often-peculiar behavior, he has the unquali­ from a single source ... [t]his capability fied support of the caucus and, by implica­ ing has increasingly come to be seen as does not exist in current Hardware in the tion," the Clinton administration. When a potential source of embarrassment by Loop (HITL) facilities ... " , and (2) "The F- Gray implied criticism of Artistide last program managers. Rather than view­ 22 does not employ countermeasures against week, Rep. Kweisi Mfume, D-Md., head of the ing developmental testing as a learning the EW/GCI/C3 threats simulated at REDCAP Black Caucus, quickly came to Arisitide's tool, an iterative process of testing, and the majority of threats simulated at defense, and Gray said no more. analyzing, and fixing preparatory to AFEWES are not considered primary threats What is really surprising is that the ad­ the commitment to production, pro­ to the F-22." ministration would rely on a group such as gram managers treat developmental Neither position is credible. REDCAP and the Black Caucus, which has such a strong AFEWES, together or apart, do have the ca­ emotional commitment to Haiti, to deter­ testing as a "pass/fail" gauntlet that pability to test the F-22's integrated avi­ mine its foreign-policy objectives there. has the potential to blacken programs onics. Briefings to that effect have been ig­ The ties of black Americans to Haiti are in the eyes of service, DOD, and con­ nored. If the F-22 cannot demonstrate offen­ not just the result of developments during gressional overseers. sive air superiority mission success in the 16900 CONGRESSIONAL RECORD-SENATE July 18, 1994 modern IADS/EW/GCI/C3 environment simu­ DENNIS DECONCINI. to 10 minutes each; that on Tuesday, lated at REDCAP, then it will be no less de­ ALFONSE D'AMATO.• the Senate stand in recess from 12:30 pendent than the F-15C on intelligence, p.m. to 2:15 p.m. in order to accommo­ AWACS support, and active and passive sup­ pression of enemy air defenses. As for " pri­ UNANIMOUS-CONSENT date the respective party conferences. mary" threats, AFEWES airborne intercep­ AGREEMENT-H.R. 4226 The PRESIDING OFFICER. Without tor simulations will include the Fulcrum, objection, it is so ordered. Flanker, and Foxhound by the end of FY95. Mr. BUMPERS. Madam President, I Clearly, a thorough test plan for F- 22 avi­ ask unanimous consent that in the en­ onics would include REDCAP and AFEWES. grossment of H.R. 4226, the foreign op­ Challenged on the lack of EC effectiveness erations appropriations bill, that the RECESS UNTIL 9:30 A.M. testing, the Air Force countered that "[o]pen air subsystem testing on the . . . flying test amendments agreed to the first ex­ TOMORROW bed provides many of the same benefits as cepted committee amendment be Mr. BUMPERS. Madam President, if HITL testing . . . provides a more realistic placed in the appropriate place in the there is no further business to come be­ environmental than HITL testing ... [and] bill. fore the Senate today, and i see no .. . provides an early assessment of system The PRESIDING OFFICER. Without other Senator seeking recognition, I effectiveness prior to [EMD] aircraft flight objection, it is so ordered. testing". This is contradictory. Subsystem ask unanimous consent that the Sen­ testing lacks the sensor fusion deemed criti­ ate stand in recess, as previously or­ cal to proper avionics testing. The supposed ORDERS FOR TOMORROW dered. inability of HITL facilities to test the fully There being no objection, the Senate, integrated avionics suite eliminated RED­ Mr. BUMPERS. Madam President, on at 5:23 p.m., recessed until Tuesday, CAP and AFEWES from the F-22 test plan. behalf of the majority leader, I ask July 19, 1994, at 9:30 a.m. Furthermore, open air testing cannot pos­ unanimous consent that when the Sen­ sibly duplicate the threat densities required, ate completes its business today, it nor is it controllable or repeatable. We believe that both an Air Force and Con­ stand in recess until 9:30 a.m., Tuesday, gressional review of the avionics portion of July 19; that following the morning CONFIRMATIONS the F-22 TEMP is in order. The F-22 System prayer, the Journal of proceedings be Program Office considers the F-22's avionics deemed approved to date and the time Executive nominations confirmed by too complicated to be properly tested prior for the two leaders reserved for their the Senate July 18, 1994: to OT&E, but it is that very complexity that use later in the day; that there then be THE JUDIClARY demands exhaustive effectiveness testing a period for morning business not to GUIDO CALABRESI, OF CONNECTICUT, TO BE UNITED prior to production. We look forward to hear­ STATES CffiCUIT JUDGE FOR THE SECOND CffiCUIT. extend beyond 10 a.m., with Senators ing from you on this matter prior to make­ DEPARTMENT OF JUSTICE up of the Senate Defense Appropriations bill. permitted to speak therein for up to 5 DANIEL C. DOTSON, OF UTAH. TO BE UNITED STATES Sincerely, minutes each, with Senators HEFLIN MARSHAL FOR THE DISTRICT OF UTAH FOR THE TERM CONNIE MACK. and DORGAN recognized to speak for up OF FOUR YEARS. July 18, 1994 EXTENSIONS OF REMARKS 16901 EXTENSIONS OF REMARKS

CIVIC PRIDE BLOOMS IN ERITREA communications facility, became a base for from their families too long, the 95,000 sol­ the murderous Ethiopian army. But diers obeyed. Kokobu's beloved American Library re­ "The odds were stacked against us during HON. DAN BURTON mained just a library-indeed, Asmara's only the war, and very few thought we could suc­ OF INDIANA public library-though operated under the ceed," said former combatant Yemane IN THE HOUSE OF REPRESENTATIVES auspices of the local municipality, not the Ghebreab, now a senior party official. "But U.S. Information Service. the EDLF united the people because our Monday, July 18, 1994 "I wanted my people to be educated, and I leaders stayed inside the country. They lived Mr. BURTON of Indiana. Mr. Speaker, I rise did not believe Mao and Lenin could provide the same as the rest. They suffered like the to salute the government and people of Eritrea that learning," said Kokobu, 55, who dumb­ rest. And therefore they were sensitive to on the occasion of the first anniversary of their founded the returning Americans last year the sacrifice of the people." by escorting them through a spotless library During the colonial era, the ruling Italians independence. In only 1 year of freedom, Eri­ where every volume had been kept safe and built one of Africa's most industrialized trea has become an island of stability and a even the list of overdue borrowed books was colonies in this outpost that resembles the beacon of hope for Africa. Under the wise and up to date. Badlands of South Dakota. There were fac­ humane leadership of President lssaias But if the Americans found Kokobu's dili­ tories, railroads, citrus plantations. Eritrea Afwerki and the Government of Eritrea, the gence stunning, they would soon learn that became an important export partner for the Eritrean people are providing a shining exam­ in Eritrea-which just celebrated its first an­ Middle East and southern Europe. ple of what can be accomplished through hard niversary as Africa's newest country-the Britain took control of Eritrea in 1941. By extraordinary is commonplace. As one Amer­ 1952, Eritreans expected to be granted inde­ work, dedication, self-reliance, and the pursuit ican diplomat put it recently; "Eritrea re­ pendence, like other European colonies. In­ of wise policies. Eritrea's freedom was hard­ minds me of what Israel must have felt like stead, they were swallowed up by Ethiopia. earned and hard-fought. This milestone in the in the '50s. There is an obsession with a sin­ Regardless of "the point of view of justice," history of its people is truly a cause for cele­ gle goal-to make it work." U.S. Secretary of State John Foster Dulles bration. The 3.5 million Eritreans, about evenly di­ told the United Nations at the time, Ameri­ I would also like to pay my respects to the vided between Muslims and Christians, are ca's strategic interests dictated that Eritrea departing Ambassador of Eritrea, Hagos keenly aware after winning a 30-year guer­ "be linked without ally, Ethiopia." Ghebrehiwet. During his tenure in Washington, rilla war for independence that many people Treated by the Ethiopians as colonial sub­ are echoing the diplomat's sentiments. They jects, denied equal education and jobs, the Hagos made many friends and won the re­ smile and give a knowing nod when told that Eritreans went to war in 1961, first against spect, admiration, and affection of all who what is happening here doesn't seem very, the emperor, then against a cabal of violent worked with him. He will be missed, but we well, African. Communists. Never before had Africa seen wish him well in his new assignment in Across a continent where concern for such a resourceful, self-reliant band of guer­ Asmara along with Abebech, his wife, and shared well-being often plays little role in rillas take to the bush. their son, Petros. national life, cities are decaying, social serv­ With virtually no outside backing, the I commend to the attention of my colleagues ices crumbling, political foundations wob­ EPLF and two other rebel groups carved fac­ an excellent article that appeared recently in bling. But here in Eritrea's 7,000-foot-high tories, schools and offices out of rock caves. capital, a kind of new African model is Solar panels cooled their bloodbank refrig­ the Los Angeles Times about the miracle of emerging, and common people like Habte erators. Disposable hypodermic syringes Eritrea, and an article from the Indianapolis Freizghy are helping create it. were turned into light switches, shards of Star about the independence celebration of In­ "If I do not do my job right, if I do not shrapnel into scythes. dianapolis' Eritrean community. show up for work on time," he said, "then Soldiers moved at night and carried black­ [From the Los Angeles Times, June 28, 1994] Eritrea is worse off because of me." Freizghy boards into the trenches, to study by candle­ is a street sweeper and, together with a le­ light. But even when Ethiopia adopted com­ CIVIC PRIDE BLOOMS IN ERITREA gion of other elderly men who wield their munism and the Soviet Union joined the war (By David Lamb) brooms with unusual energy, he has helped against Eritrea, in the late 1970s, Western ASMARA, ERITREA.-"Kefela," the Amer­ make Asmars an immaculate city. His salary governments kept their distance. The ican said as he left the U.S. library on Alula is $30 a month plus a daily ration of food. EPLF's rhetoric sounded like it had been Street for the last time, "take care of the No beggars are allowed in Asmara; they written in Albania. books." With that the man was gone, joining are sent to a training and schooling center "It's true that in the '60s and '70s we, as the exodus of Americans expelled by Ethio­ outside the city. Western business people are young fighters, embraced the school of Marx­ pia's Marxist government from the northern stunned to learn that government officials ism," said Kidane Woldeyesus, head of the province of Eritrea nearly 20 years ago. are punctual and do not accept bribes. Americas section of the Ministry of Foreign No one would have dared imagine how seri­ Out by the airport, where minefields have Affairs. "But I think Africa in that era ously Kefela Kokobu would take those been cleared, men and women work side by called for that kind of radical thinking. words. For single-handedly, and at consider­ side tending rows of wheat-a rare sight in "Then came the Soviet intervention in '78. able personal risk, Kefela ensured that an Africa where farm labor is usually left to This MIGs tried to wipe us out. I mean, real­ entire generation of young Eritreans would women. A U.S. Embassy briefing packet for ly wipe us out! It gave us the opportunity to be raised on Hemingway instead of Mao, visitors contains this notation under the rethink things. Since the '80s, we've clearly would have better access to Jefferson than to heading Security Awareness: "None." There stated that we were going to a multi-party, Lenin. is no fear of physical harm or crime any­ democratic system." Ethiopian officials raged at Kokobu upon where in the country, it says. This year, having defeated black Africa's finding shelves devoted to O'Hara and Fitz­ Eritrea's guerrilla army-30% of whose largest army and won Ethiopia's blessing to gerald and a record cabinet featuring music combat troops were women-captured secede, Eritrea observes its first anniversary by the Boston Pops and the Harvard Glee Asmara from Ethiopia and its Soviet advis­ of independence-formally proclaimed on Club; they sent him the collected works of ers in May, 1991. But even before the celebra­ May 24, 1993-with a palpable self-esteem Communist authors by the box load. Kokobu tion died down, Issaias Afewerki, then rebel that brings thousands of neatly dressed resi­ put three or four of the books on display to leader and now president, had one last re­ dents onto Liberation Boulevard each appease the authorities and packed the rest quest to make of the Eritrean People's Lib­ evening to stroll under palm trees and sip es­ away in storage. eration Front (EPLF): Return to the coun­ presso in cafes. Traces of the American presence in Eritrea tryside as unpaid volunteers for two years The Peace Corps is coming back, and U.S. disappeared fast under the Marxist regime and build schools, repair roads, staff clinics, firms are exploring for oil and natural gas. that overthrew Emperor Haile Selassie: The terrace the hills for farming. The Ethiopian Airlines office now houses U.S. Consulate was taken over by the Ethio­ Though not without grumbling that they Eritrea Airlines, though no such company pian navy, and Kagnew Station, a U.S. army already had sacrificed enough and been gone yet exists.

e 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. 16902 EXTENSIONS OF REMARKS July 18, 1994 Daunting tasks remain, however. " Obser­ 3101 E. 38th St., pleaded for people to make MTSU'S JOHN STANFORD: MOVING vation alone will tell you that 30 years of donations to Eritrea because the war has de­ MTSU TO THE HIGHEST LEVEL war brought devastating suffering," said stroyed so many schools, churches and hos­ Saba Issays of the National Union of Eri­ pitals. trean Women. Agriculture was crippled by With a red, green and blue Eritrean flag HON. BART GORDON the war, the industrial sector destroyed. Per flapping between two posts under a park OF TENNESSEE capi ta income is only $130 a year. shelter, Menghistab G. Christos said he was IN THE HOUSE OF REPRESENTATIVES But Eritreans have only to look across happy not only about his country's independ­ Monday, July 18, 1994 their borders at the economic ruin, wide­ ence but also about the educational achieve­ spread wars, tribal animosity and official ments of Eritrean children in the United Mr. GORDON. Mr. Speaker, I rise to thank corruption that torment Africa to know States. Several others offered prayers of one of the finest coaches and athletic directors what the alternative is. In few African coun­ thanksgiving. in the history of Middle Tennessee State Uni­ tries could anyone say, as the Foreign Min­ istry's Kidane did the other day, " Being new­ " The opportunities for educating our chil­ versity, Mr. John Stanford, for his tremendous comers, we have had the opportunity to dren, that's the most important thing," dedication and devotion to MTSU's sports pro­ learn from history.'' Christos said. And that is happening. gram, and to congratulate him on becoming Christos' daughter, Eritrea Christos, and the university's first director of athletic rela­ [From the Indianapolis Star, May 29, 1994] two others at the celebration, Aklilu Tedla tions. LOCAL ERITREANS MARK FREEDOM OF THEIR and Alem Seyoumare, are among several In Mr. Stanford's 14 years as baseball HOMELAND young Eritreans who have attended or grad­ uated from Indiana colleges. coach of the Blue Raiders, he led the team to (By James L. Patterson, Jr.) an astounding record of ~02 victories, 272 Yonas Mengsteab knows a thing or two losses, and 4 ties, for a winning percentage of about courage. .596. Now 25, he fought for his country's inde­ pendence from age 11 to 22. That was after he TRIBUTE TO FRANKLIN LOEBE He took the Blue Raiders to the NCAA tour­ lost 14 members of his family to the confllct nament four times, his teams won four Ohio at age 7. Valley Conference championships and was Although he was shot in the abdomen and HON. WIUJAM 0. LIPINSKI named the OVC Southern Division Champions foot during Eritrea's long bloody war to free OF ILLINOIS on five occasions. His 1982 team went all the itself from Ethiopian dominance, way to the Midwest Regional Cl:lfilnpio~hip Mengsteab's worries are mostly behind him IN THE HOUSE OF REPRESENTATIVES round, where it advanced to within one game now. He's just happy that it's over and his coun­ Monday, July 18, 1994 of the College World Series. try, Eritrea, finally has its independence. In recognition, Coach Stan ore was voted Mengsteab joined about 100 of his country­ Mr. LIPINSKI. Mr. Speaker, it gives me the OVC Coach of the Year in 1976 and was men at Lawrence Park on Saturday to cele­ great pleasure to pay tribute to a member of cowinner of that honor in 1981, 1982, 1983, brate Eritrean Independence Day, which was the Third Congressional District of Illinois, Mr. and 1987. He was also named South Region Tuesday. Franklin Loebe. On August 1, 1994, Mr. Loebe Coach of the Year in 1982 by his peers-the "I'm really happy that the war is over," he will retire from his career as village treasurer American Association of College Baseball said. "Now we are free." of Orland Park, IL after 65 years of dedicated Coaches. Eritrea is a northeast African nation of 3.5 service. This is certainly an accomplishment million, bordered by the Red Sea, Sudan, His promotion to athletic director in 1987 Ethiopia and Somalia. It was colonized by worthy of special recognition. was designed to spread Coach Stanford's win­ Italy in 1890 and federated with Ethiopia in A native of Orland Park, Mr. Loebe was ning ways to the entire university-and it suc­ 1952. born in 1906 and went to grade school in a lit­ ceeded. During his tenure the Blue Raiders In 1961, Eritrea, outnumbered 4-1, began its tle school house at 143d Street and Beacon won Ohio Valley Conference championships in armed struggle, which culminated in victory Avenue. He attended Englewood High School five men's and three women's sports, with the against the Ethiopian army 30 years later. The war cost 70,000 Eritrean lives and in Chicago and went on to Northwestern Uni­ MTSU women winning the OVC All-Sports tro­ wounded hundreds of thousands on both versity in 1925. Mr. Loebe studied accounting phy in 1990-91. sides, said Tesfa Tesfaslase. and business before returning home due to a An even better measure of John's accom­ The 40-year-old native of Eritrea came to family illness. plishments at MTSU than his winning record, the United States in 1987 as a political refu­ Mr. Loebe was running the general store as impressive as it is, is the leg~cy he leaves gee, as did most who attenged Saturday's when Mayor Ralph Jennings asked if he would for others to follow. John Stanford was the picnic. A resident of Indianapolis the past five like the job of village treasurer. Mr. Loebe be­ guiding force behind MTSU's master plan for years, Tesfaslase praised U.S. Rep. Dan Bur­ came Orland Park's village treasurer at age athletics, appropriately called moving to the ton, R-Indianapolis, for trying to persuade 23, when the town had a total population of highest level. the U.S. government to back his nation's 450 residents and a $6,000 budget. As he re­ Fortunately he will continue to develop and struggle for independence. tires 65 years later, Orland Park claims 40,000 refine that master plan along with President Many of the women at Saturday's gather­ residents and an estimated $20 million budget. James E. Walker in his new capacity as direc­ ing wore braids and zuria, their native dress. Mr. Loebe is well known for his exceptional tor of athletic relations. After the Erl treans greeted each other with That 20-year record of accomplishments ex­ kisses on each cheek, they enjoyed both na­ ability to manage the village finances. His fi­ tive and U.S. foods. nancial expertise will be sorely missed in the plains why the entire MTSU community is hon­ One offering from the Eritrean homeland treasurer's office. His commitment to the vil­ oring him with a roast on Wednesday, July 20, was enjera, a spicy staple made of chicken, lage of Orland Park and its residents is cer­ 1994-and why MTSU is so far in his debt. hot chili, butter, onions, tomatoes and eggs. Later, with Eritrean music playing in the tainly deserving of special recognition. background, the women served bread and Mr. Loebe is married to Dorothea Loebe HAROLD AND BETTY FISHER: A freshly ground coffee. and is the father of two daughters. He is MATCH MADE IN HEAVEN It was a time not only for remembering known for his special talent for storytelling about how far Eritrea has come but also to about old Orland Park. be hopeful about its people's future. HON. CHARLES B. RANGEL After the meal, the chairman of the Eri­ Mr. Speaker, I am pleased to recognize OF NEW YORK trean American Community Association, Franklin Loebe for dedicating himself to the IN THE HOUSE OF REPRESENTATIVES Yemane Teklezghi, spoke in Tigrigna, their welfare and the betterment of our community. native language, about the need to help re­ I am sure that my colleagues will join me in Monday, July 18, 1994 build his war-torn country. expressing congratulations to Mr. Loebe for Mr. RANGEL. Mr. Speaker, I would li~Bolivia. provisions of S. 2259, to provide for the SD-419 JULY 28 settlement of the claims of the Confed­ Labor and Human Resources 9:30 a.m. erated Tribes of the Colville Reserva­ To hold hearings to examine health in­ Energy and Natural Resources tion concerning their contribution to surance coverage for American and for­ Public Lands, National Parks and Forests the production of the hydropower by eign employees of multinational cor­ Subcommittee the Grand Coulee Dam. To hold hearings on S. 2121, to promote SD-366 porations. entrepreneurial management of the Na­ SD-430 tional Park Service. AUGUST 12 SD-366 JULY 25 Rules and Administration 2:00 p.m. 2:00 p.m. To hold hearings on S. Res. 230, to des­ Indian Affairs Foreign Relations ignate and assign two permanent Sen­ To hold hearings on the nomination of To hold hearings on the nominations of ate offices to each State. Harold A. Monteau, of Montana, to be Dorothy Myers Sampas, of Maryland, SR-301 Chairman of the National Indian Gam­ to be Ambassador to the Islamic Re­ 2:30 p.m. ing Commission, Department of the In­ public of Mauritania, E. Michael Agriculture, Nutrition, and Forestry terior. Southwick, of California, to be Ambas­ Agricultural Research, Conservation, For­ SD-628 sador to the Republic of Uganda, Carl estry and General Legislation Sub­ committee Burton Stokes, of Ohio, to be Ambas­ To hold hearings on S. 985, S. 1478, and S. sador to the Republic of Seychelles, 2050, bills to improve existing legisla­ POSTPONEMENTS and Brady Anderson, of Arkansas, to be tive authority regulating the use of Ambassador to the United Republic of pesticides and to insure public health JULY 19 Tanzania. and environmental benefits. 2:30 p.m. SD-419 SR-332 Labor and Human Resources Indian Affairs To hold hearings on S. 1702, to amend the To resume hearings on S. 2230, to revise AUGUST 1 Federal Food, Drug, and Cosmetic Act the Indian Gaming Regulatory Act. · 2:00 p.m. to ensure that human tissue intended SD-106 Indian Affairs for transplantation is safe and effec­ Business meeting, to mark up S. 2269, to tive. JULY 26 protect the Native American cultures SD-430 9:30 a.m. and to guarantee the free exercise of Energy and Natural Resources religion by Native Americans, S. 2075, JULY 20 to authorize funds for and to strength­ To hold hearings on the nomination of 10:00 a.m. Elizabeth Anne Moler, of Virginia, to en programs of the Indian Child Pro­ tection and Family Violence Preven­ Foreign Relations be a Member of the Federal Energy To hold hearings to examine the humani­ Regulatory Commission, Department tion Act, and S. 2036, to specify the terms of contracts entered into by the tarian crisis in the Horn of Africa. of Energy. United States and Indian tribal organi­ SD-419 SD-366 zations under the Indian Self-Deter­ 2:30 p.m. mination and Education Assistance JULY22 Agriculture, Nutrition, and Forestry Act. 9:30 a.m. Agricultural Research, Conservation, For­ SR-485 Labor and Human Resources estry and General Legislation Sub­ Disability Policy Subcommittee committee AUGUST4 To hold hearings on S. 2140, to permit an To hold hearings on the Administration's 2:00 p.m. individual to be treated by a health proposed legislation relating to meat Energy and Natural Resources care practitioner with any method of and poultry inspection. Water and Power Subcommittee medical treatment such individual re- SR-332 To hold joint hearings with the Commit­ quests. tee on Indian Affairs on provisions of SD-430