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

Vol. 142 WASHINGTON, WEDNESDAY, FEBRUARY 7, 1996 No. 17 House of Representatives The House was not in session today. Its next meeting will be held on Friday, February 9, 1996, at 11 a.m. Senate WEDNESDAY, FEBRUARY 7, 1996

The Senate met at 7:30 a.m. and was Wellstone (for Kohl) amendment No. 3442 I will be the first to say that dairy is- called to order by the President pro (to amendment No. 3184) to eliminate the sues are regionally divisive, and the provision granting consent to the Northeast tempore [Mr. THURMOND]. first to agree that we should get be- Interstate Dairy Compact. yond our divisions and find common PRAYER AMENDMENT NO. 3442 TO AMENDMENT NO. 3184 The PRESIDENT pro tempore. Who ground. And I believe that compromise The Chaplain, Dr. Lloyd John yields time on the amendment? and consensus are possible, even in Ogilvie, offered the following prayer: Mr. KOHL. Mr. President, I would dairy policy. Trust in the Lord with all your heart, like to call up our amendment. But the Northeast Dairy Compact ig- and lean not on your own understanding; The PRESIDENT pro tempore. That in all your ways acknowledge Him, and nores all efforts at compromise, and in- is the pending question. stead is an effort by one region to re- He will direct your paths.—Proverbs 3: 5– Mr. KOHL. I yield myself 4 minutes. 6. Mr. President, today, I and others move itself from the national system Gracious God, we put our trust in rise in opposition to the Northeast and establish a regional dairy policy. It You. We resist the human tendency to Interstate Dairy Compact. While we takes an already outmoded milk pric- lean on our own understanding; we ac- have only a short time to discuss this ing system, and twists it even further. knowledge our need for Your wisdom in matter, I think that it is important to While the context for this compact is our search for solutions we all can sup- fully understand its ramifications—for dairy, I believe its ramifications are port. As an intentional act of will, we farmers of other regions, for consumers far more broad. commit to You everything we think, in the Northeast, and for the principle Make no mistake about it. This com- say, and do today. Direct our paths as of free trade within our country. we give precedence to patriotism over As I have said before, it is difficult pact is unprecedented in the history of party and loyalty to You over anything for me to stand here and oppose my the Nation. It is true that the Con- else. We need You, Father. Strengthen friends from the Northeast in their ef- stitution allows States to enter into a each one and strengthen our oneness. forts to help the dairy farmers of their compact with other States, as long as In the name of our Lord, Amen. region. But I feel that this is a very im- those compacts are approved by Con- f portant issue, and that it is the wrong gress. This authority has been used thing to do. many times, without controversy, by AGRICULTURAL MARKET The Northeast Interstate Dairy Com- States that seek to address multistate TRANSITION ACT OF 1996 pact is a regional compact unlike any environmental or transportation con- The PRESIDENT pro tempore. The we have seen before. It is an effort by cerns. But I know of no instance where clerk will report the unfinished busi- six Northeastern States to wall them- it has been used to allow States to en- ness. selves off from the rest of the Nation gage in price-fixing activities, or as a The assistant legislative clerk read economically. The compact would way to circumvent the commerce as follows: bring about artificially increased milk clause of the Constitution. Congres- A bill (S. 1541) to extend, reform, and im- prices in the Northeast, for the benefit sional approval of this compact is an prove agricultural commodity, trade, con- of the farmers in those States, at the invitation for all sorts of economic bal- servation, and other programs, and for other expense of that region’s consumers, kanization. purposes. without regard to market forces. And The Senate resumed consideration of it would do so by imposing a prohibi- The Framers of the Constitution had the bill. tive compensatory payment scheme to the foresight to see the dangers of al- Pending: prevent more reasonably priced milk lowing States and regions to erect eco- Craig (for Leahy/Lugar) amendment No. from coming in from other regions. It nomic barriers against other States in 3184, in the nature of a substitute. is at its heart anticompetitive. the Union.

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

S 1001 S 1002 CONGRESSIONAL RECORD — SENATE February 7, 1996 Two years ago, when the Northeast keting order pricing scheme, which has dairy industry in States like Min- Dairy Compact was considered in the played a key role in the loss of over nesota. Senate Judiciary Committee, many of 10,000 dairy farms over the last dec- I will not stand for that. And neither my colleagues raised valid constitu- ade—an average of nearly 3 farms every should any other Senator. It is time to tional concerns with the compact. day. put an end to the failed dairy policies If we set the precedent today by These statistics emphasize the im- of the past—and certainly to the un- granting consent to one region of the portance of fixing the dairy program. wise proposal before us today. Nation to wall itself off economically Yet, today we are faced with a proposal I urge my colleagues to join me in from the rest, we must ask ourselves, which would impose another set of bur- standing up for small dairy farmers where will it stop? densome regulations and harmful trade across the country and voting to strike If we deny free trade within our own barriers on our dairy producers. the Northeast Interstate Dairy Com- borders, we are whittling away at the If this dairy compact is enacted, it pact from this bill. economic unity that is one of the core will increase the minimum price paid The PRESIDING OFFICER (Mr. BEN- principles of this country. And I will to dairy farmers in New England. NETT). The Senator from Vermont. not stand for it. These higher prices will likely increase Mr. LEAHY. Mr. President, who con- So I urge my colleagues to vote in dairy production in that region, caus- trols time? Mr. JEFFORDS. I believe I control favor of the motion to strike the ing New England milk producers and the time on our side, Mr. President. Northeast Interstate Dairy Compact processors to seek additional markets Let us get down to what we are talk- from this bill. in States like Minnesota. In the proc- ing about. I think it was brought out I yield to the Senator from Min- ess, this overproduction has the poten- well by the Senator from Minnesota. nesota. tial to flood markets and depress milk That is, they want to protect their Mr. WELLSTONE. I want to thank prices paid to dairy farmers outside of farmers. That is understandable. They the Senator from Wisconsin for his ex- the compact States. would like to have no milk orders. ceptional leadership. Last night, when The long-term effect of these lower They would like to have nothing in I laid down this amendment the Sen- prices would be to drive the dairy in- this country because they believe they ator is speaking about, I did it because dustry from States like Minnesota out are lowest producers. That is fine. of what I think all of us in the Midwest of business—leading to a shortage of This issue was raised before. I want feel very, very strongly about. First of milk within the region and requiring to remind everybody, the Senate voted all, many of us have been working for processors to import more expensive 65 to 35 earlier this year to say that, 5 years to have milk marketing order milk from other regions. yes, the six States of New England, a reform. That is what we really stand Due to the 20-percent loss of milk small area of our country, has the for. That makes all the sense in the production in Minnesota over the last right to act like any big State, because world. decade, this is already happening. With California and several other States We have had a system in place since the dairy compact, we run the risk of have done the same thing we seek to 1933, and it worked in the beginning, making this even worse for dairy pro- do. Many have said, ‘‘We want to pro- but it is archaic and it has a discrimi- ducers around the country. tect and help our dairy farmers stay in natory effect on dairy producers in the In addition, the compact will result business.’’ Little old New England, six upper Midwest. We have lost thousands in the proliferation of anticompetitive States are no bigger than many of the of dairy farms in my State of Min- trade barriers between the States. If other small States. nesota. enacted, the Compact Commission will We talk about the State’s rights Mr. President, the problem with the have to make immediate decisions here. These six legislatures voted to do Northeast Dairy Compact, above and about how to keep lower priced milk in this. Two of those are metropolitan beyond what the Senator from Wiscon- States outside the Northeast from en- States. They said, ‘‘We want to protect sin has spoken about, in terms of some tering their region. the farms of Vermont.’’ We are tucked of the regional barriers it creates, is In order for the compact to survive, way up in there. We do not bother any- that this also will forestall the kind of New England would have to engage in body with our milk supply. We could genuine reform that we really need of protectionist behavior, not from other not. We are too far away. We are at the the milk marketing order system. countries, but from within the United end of the energy, the end of every- Mr. President, it is not appropriate States itself. thing up there. We are bordering on to cut a special deal for one region’s At a time when we are trying to open Canada that has milk prices 50 percent dairy farmers to the detriment of dairy up global markets for our Nation’s higher than ours. We cannot get into farmers in other regions, especially in farm producers, it makes no sense to their markets. Hopefully with NAFTA the upper Midwest. So, Mr. President, I encourage protectionism within our we can. think this is a critical vote, and I am own borders. Yet, that is exactly what All we are saying, ‘‘Let us do what proud to stand with the Senator from the dairy compact would do. any other State can do and let us get Wisconsin. I hope that our colleagues The Nation’s dairy industry should our producers a little more money for will support this amendment. It is ab- be exactly that—a national industry. their milk that goes to the consum- solutely key to the future of the dairy Special favors for one region of the ers.’’ The consumers agreed, ‘‘We are industry in this country to have a fair country will have a detrimental impact willing to pay it, we are willing to pay milk marketing order system, to have on the others. it.’’ real reform. This amendment really For far too long, regional politics So why does Minnesota and Wiscon- takes us in that direction. have made the dairy program what it is sin—later on we will have a chance to Mr. KOHL. Mr. President, I yield 3 today: archaic, unfair, unwise, and un- vote for something to protect them, minutes to the Senator from Min- workable. Let us not take another step something to give them what they nesota [Mr. GRAMS]. backward by authorizing this North- want. We are willing to go along with Mr. GRAMS. Mr. President, I join my east Dairy Compact. it if they leave us alone. They do not, colleagues today in offering this After all, the purpose of the Agricul- no. We will have the ability to be able amendment to strike the Northeast tural Marketing Transition Act is to to help our producers. It is only 5 Interstate Dairy Compact from the remove the Government from interfer- years, a sunset, that says try it for 5 farm bill. ing in the agricultural decisionmaking years and keep it going until NAFTA As a Senator from Minnesota, I rise process and reduce the regional con- or something comes by. today for the over 11,000 dairy farmers flicts that have plagued our farm pol- It is hard to understand why they I represent—the most productive, yet icy for years. would pick on our farmers up there so overburdened, dairy producers in the The dairy compact would do just the far away. There is no way we are a world. opposite: It would expand the role of threat to their markets. I cannot un- For years, Minnesota’s dairy indus- government in dairy policy, create an derstand why they have taken this po- try has struggled against the harmful unfair advantage for dairy producers in sition. Fortunately, the Senate has al- impact of an archaic Federal milk mar- New England, and further weaken the ready said 65 to 35 that you are right, February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1003 New England, your States have a right the farmers want to do it. They are an milk, which is a limited regional mar- to act like any big State. infinitesimal part of the population in- ket. It does not travel long distances I yield to the Senator from Vermont. volved. because it is perishable. Fluid milk Mr. LEAHY. I thank my friend and It also will make the point that it is from Minnesota or Wisconsin is not colleague from Vermont. not the farmer that is getting this sold in New England. Mr. President, it probably makes money, it is the retailer. The past 12 Over 97 percent of the packaged milk sense this is the first thing we are de- years, farm prices fell 5 percent. Retail sold in New England comes from bating this morning because of the fact prices, I ask my friend from Vermont, bottlers regulated in New England. The that it is a dairy amendment and dairy I believe went up about 30 percent, is rest comes from the neighboring milk farmers get up early, work hard, maybe that not right, or more, during that marketing order. Less than 1 percent a little bit early for some of our friends same time? If you want to look at the comes from outside our region. in the Senate, but Senator JEFFORDS’ price of milk, look to the retailers. It Even if fluid milk did come in from and my good friend, Harold Howrigan, is amazing, as the price goes down to outside our region, which it does not, up in Franklin County, VT, is up there. the producer, the cost goes up in the the compact would allow the flow of He has already finished milking, had supermarket. milk into and out of the region just as breakfast, and probably back in the I yield back to my friend from Ver- it occurs now. barn now feeding the calves. mont, but I ask if that is not the case? Opponents make a lot of claims I mention him for this reason: Harold Mr. JEFFORDS. That certainly is. I about this compact. They claim it is the president of the St. Albans Coop- happen to have a chart here. would erect a trade barrier around New erative, but first and foremost a hard Mr. LEAHY. I thought you might. England. working dairy farmer like so many Mr. JEFFORDS. I have a chart that This is simply not true. Over 20 per- men and women in Vermont. I hope displays that fact. The farmers are the cent of the milk sold in New England when we debate this amendment we most important group that the con- comes from New York. The compact consider how it will affect the average sumers ever have to keep prices down, would ensure that these farmers also dairy farmer. This compact was an idea but they cannot do it if the retailers receive their share of benefits from the that came from Vermont. It could help keep going up. Our farm prices have compact. The compact works just like the cur- Vermont’s hard working farmers get a been going down for the last 10 years, rent Federal order system. Any pro- better return for their work. It will and the retail prices have been going ducer supplying the market would re- also help consumers gets more stable up. Every time we go down, they go up. ceive the benefits. prices. Anybody that tries to say we are the I agree that the national industry All of New England is united in this cause of high retail prices, there is just needs to come together behind a uni- effort. I ask those who would vote no evidence of that whatever. fied dairy policy. I will support reason- against it, how would they explain to Mr. LEAHY. I hope, Mr. President, able reforms of the milk marketing or- somebody in New England why they that the 65 Senators who voted for this ders and the dairy program. did it? It allows the States to take over last time, who obviously felt it was im- In the meantime, I do not see how we their own destiny. portant to do so, felt they had legiti- can hold the New England States hos- We hear all kinds of talk about the mate reasons to do so, would not sud- tage. This compact is State law in the need to give more responsibility back denly decide to change exactly as they six New England States, an idea that to the States. We heard it across town voted last time. came from the countryside, not from at the National Governors’ Associa- To reiterate: Washington. The New England States tion, telling Members of Congress to do Mr. President, I rise today in strong think they have a better way of pricing that. In fact, I tell my colleagues, if I opposition to the amendment offered milk. We should let them. understand the wire service copy I was by Senators WELLSTONE, FEINGOLD, Some try to make the claim that the reading at about 1 o’clock this morn- KOHL, and others. compact would raise consumer prices. ing, the National Governors’ Associa- The underlying bill would grant con- The link between farm and retail milk tion has voted to support this concept. gressional consent to the Northeast prices is tenuous at best. In the past 12 Now, the Senate also voted that way, Interstate Dairy Compact. This com- years, farm prices have fallen 5 per- 65 to 34. pact is an agreement among the six cent, while retail prices have increased This is not something that is New England States to create a com- over 30 percent. anticonsumer legislation. It is some- mission that will have the authority to There is no guarantee there would be thing where people come together in oversee the pricing of fluid milk. All any price increase. The compact would their own region to help their own re- six States’ Governors and legislatures increase prices only if four of the six gion. strongly support this amendment. New England States agreed. Rhode Is- We are talking about beverage milk. All year we have heard about the land, Connecticut, New Hampshire, and That is a regional market. You do not need to give more responsibility back Massachusetts have 11 million consum- drive milk halfway across a country. to the States. Across town, at the Na- ers and fewer than 1,000 farmers. Their You do it in the region. Over 97 percent tional Governor’s Association meeting, consumer interests far outweigh their of the package milk sold in New Eng- Members of Congress are lining up to farmer interests. Both farmers and land comes from bottlers regulated in tell the Governors how they are willing consumers would have to be rep- New England. The rest comes from out- to turn more control back to the resented on the commission. side. Less than 1 percent comes from States. The New England State legislatures outside our region. The underlying bill would allow the have voted overwhelmingly to give the This is also not closing out other six New England States to take more compact commission this authority. markets. They are not there, anyway. control over milk pricing. The Senate All 12 members of the New England del- Fluid milk remains within the region voted 65 to 34 in favor of an amendment egation are cosponsors of the compact where it is. It also is not something that added the compact during the and it has already received the support where the consumers are going to be budget bill debate. of 65 Senators. gouged. This compact would increase Even though the 6 New England This is a grassroots effort. New Eng- prices only if four of the six New Eng- States have debated this compact for 7 land is asking for nothing from this land States agree to it. years, and even though 65 Senators body nor the Federal treasury—just Rhode Island, Connecticut, New voted in favor of the compact, my col- the opportunity to act in concert for Hampshire, and Massachusetts have 11 leagues from Wisconsin insist that their common good. In the spirit of fed- million consumers. They have fewer they know what is best for new Eng- eralism I urge my colleagues to vote among all of them than 1,000 farmers. land. So they want to strip this provi- against this amendment and give this This is not a case where some farm sion from the bill. opportunity to the New England bloc is going to roll over consumers. It They claim that the compact would States. is going to have to be something where hurt their region, but that claim is I yield back to the Senator from Ver- the consumers want to do it, not that false. We are talking about beverage mont. S 1004 CONGRESSIONAL RECORD — SENATE February 7, 1996 The PRESIDING OFFICER. The Sen- about the dairy compact’s potential have heard and will hear many Mem- ator from Vermont controls 7 minutes. anticompetitive effects, the burdens it bers argue that the States are often Mr. JEFFORDS. Mr. President, let places on interstate commerce, and the best positioned to solve their own prob- me make one comment. We are not rul- harm it would cause to consumers by lems, and that they should be allowed ing out anybody else flowing their milk increasing prices. The compact would to do so without interference from in. Hey, guys, bring it up if you can get raise the prices milk processors would Washington. I couldn’t agree more. the price. Bring it in, Minnesota. You have to pay for milk sold in the com- With this vote on the Wellstone can get the price. We are not trying to pact States, and those costs would be amendment today, Senators will have lock anybody out. You can get the passed on to consumers. an opportunity to match words on this price, Pennsylvania, then ship milk in, I am equally concerned that the com- concept with deeds. The compact rep- come on in, and take advantage of the pact will disrupt existing Federal pro- resents a regional response to a re- price. That is your right. grams that regulate milk prices and gional problem. It directly affects only We have not ruled anybody out, and that it will increase costs to the Fed- those States that belong to the com- we are not trying to make a market for eral Government. Costs to the Govern- pact, and it doesn’t cost the Federal ourselves. We are trying to be generous ment will undoubtedly increase if the Government anything. We have to de- in helping the dairy farmers to stay Government is forced to purchase more cide whether we are going to support alive in our area. If you can do it, if the surplus when farmers are encouraged State problem solving, or obstruct it. price goes up, and it attracts you, what to increase production well beyond de- As in many other rural regions of the you are saying, and the end result is, mand. This is certainly not a time country, agriculture is a cornerstone of we have to knock you out so that price when we should be increasing pressure Maine’s economy. Within the agricul- gets even higher so we can ship in. If on the Federal budget. tural sector, dairy farming usually you cannot ship in with the high price, The fact is that we already have a ranks second or third in cash receipts we will give you—you want it higher Federal system for setting minimum every year. The dairy industry provides than that. You want to really rip our milk prices to dairy farmers. That sys- not only jobs for the farmers them- consumers off it you are going to get tem provides a safety net through the selves, but for the people who sell farm into our markets because you can get dairy price support program and dic- machinery, service the machinery, sell into them now. tates minimum prices paid through the fuel and feed, and provide other goods Mr. President, I retain the balance of Federal milk marketing order pro- and services. Dairy farms also account my time. for large shares of the municipal tax Mr. HATCH. Mr. President, I con- gram. I see no reason to establish a second milk pricing mechanism that base throughout rural Maine, making gratulate Senator DOLE, Senator will benefit only a few States. them critical contributors to local LUGAR, Senator LEAHY, and others for In short, I remain seriously con- schools and essential town services. their tireless efforts in bringing us a cerned that the dairy compact will Unfortunately, all is not well in the farm bill. I know that they have over- Maine dairy industry. In 1978, Maine come many obstacles, and that it has hurt consumers, milk processors, and had 1,133 dairy farms. By 1988, that not been an easy task. I also under- taxpayers. At a minimum, it embodies number had declined to 800. In 1991, stand that there is an urgency to pass a concept that requires deeper scrutiny there were 680. And today we are down this bill. It is important for all those in and further discussion. Ms. SNOWE. Mr. President, I rise in to roughly 600. I understand that our the business of providing food for New England States have experienced America that we act to improve these strong opposition to the Wellstone the same devastating trend, and that programs. Overall, I support these im- amendment to strike the Northeast Vermont, especially, has been losing provements and will vote for this bill. Interstate Dairy Compact from this I do object, however, to the provision bill. huge numbers of family farmers. With- added to the compromise version of S. Mr. President, we have heard a lot of out the compact in this bill, I can tell 1541 that would give congressional ap- talk in this debate about the need to you: the bleeding of our family farms proval to the Northeast Interstate preserve the family farm, and how the will continue. Dairy Compact. This proposal was in- farm legislation that we pass should, at The precipitous decline in the num- troduced and placed directly on the the very least, not cause more family ber of dairy farms can be attributed to Senate calendar, bypassing the Judici- farmers to go out of business. several factors, but most notably to ary Committee which has jurisdiction Well, I can tell you that what we the fact that Federal market order over interstate compacts. In other have at stake in this vote on the prices in New England are generally words, we are being asked to vote on Wellstone amendment is nothing less much lower than the costs of produc- this controversial compact without than the survival of many family dairy tion in the region. Opponents some- having had a hearing or a committee farms in Maine and the other New Eng- times like to say that New England has markup on the issue during this Con- land States. some of the highest average order gress. It’s very simple. If this amendment prices in the East. This is generally the Although some changes and minor wins, large numbers of family dairy case because most of New England’s improvements were made to the pro- farms in Maine, Vermont, New Hamp- milk market involves fresh, fluid milk, posal from the version that was de- shire, and other New England States go which brings a higher price than milk bated in the 103d Congress, those out of business. If we defeat the sold for other products; whereas, in changes have not altered the essential Wellstone amendment and retain the other regions like the Upper Midwest, nature of this compact. It would still Craig-Leahy language, more farmers less than one-sixth of the milk produc- permit member States to set the price have an opportunity to keep their ers is sold for the fresh fluid market. for fluid milk above the existing Fed- farms, the rural economy of our region But the average order price in New eral order price, effectively setting up stays afloat, and consumers and proc- England in the first half of 1995 was a dairy cartel. These member States essors in our region have the satisfac- $13.17 a hundred, while the costs of pro- would be protected from competition tion of knowing that the price they pay duction in Maine, which is a fresh fluid from other States. This form of trade for fresh milk provides a fair return to milk market, are close to $17 per hun- barrier is exactly the kind of practice the farmer who produced it. dred. New England farmers cannot prohibited by the commerce clause of And that is one thing that I hope ev- make it under the existing order sys- the Constitution, and it is not one we eryone keeps in mind on this vote: The tem. should sanction in an interstate com- only people directly affected by the Mailbox prices provide a better illus- pact. Compacts have been used to build compact—the farmers, consumers, and tration of the fact. The mailbox price bridges, roads, and tunnels; to dispose processors of New England—all support is the actual price that the farmers re- of waste; or to set boundaries. Never it. ceive after deducting the costs of mar- have they been used to restrict inter- What is also at stake is the concept keting their milk. And if we look at state commerce. of State-based problem-solving. In the mailbox prices, we see that New Eng- Despite the modifications its pro- debates held so far in this Congress, land farmers get the lowest take-home ponents have made, I remain concerned and surely in the debates to come, we prices east of the Mississippi River. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1005 Farmers in Wisconsin and Minnesota cerns expressed by Senators from other tailers, farm implement dealers, bank- receive significantly higher mailbox States. The compact consent provision ers and exporters, are dependent upon a prices—nearly 50 cents a hundred- in this bill provides additional assur- healthy farm economy. Consumers are weight more. ances that the compact only applies to accustomed to consistently having Faced with the same problems class I, fluid milk. The provision also quality, yet, inexpensive agricultural throughout the region, the six New includes a 5-year sunset, so that an- products on their grocery shelves. Yet, England States banded together to de- other act of Congress will be required there is no more troubled sector in the velop a joint regional solution. They to continue the compact after years. American economy than agriculture. painstakingly negotiated an interstate It’s a fail-safe. If problems do arise Agricultural surpluses, declining farm dairy compact that will ensure a fairer with this compact, then Congress can exports, failed farm and farm related and more stable price for dairy farmers let it expire after 5 years. In effect, businesses are constant reminders of in the region. But it is a pricing pro- what we are proposing in a kind of the need to reestablish strength and gram that also protects the interests of pilot program. stability of American agriculture. consumers in the region. As evidence of And we would be willing to go even The roots of our farm crisis are many the balance and fairness achieved by further. Senate Joint Resolution 28, and the solutions to the problems are the compact, both the net-producing the consent resolution that we intro- indeed complex. The Senate and House and net-consuming States in the region duced last year, explicitly provides Agriculture Committees have labored all approved the compact with strong that no additional States will be al- for the past year in an attempt to support. lowed into the compact without the bring bills to a vote in our respective The compact creates a regional com- formal approval of both Houses of Con- Chambers. Truly, it has been a mission which has the authority to set gress, that out-of-region farmers who daunting year. We are now in a crisis minimum prices paid to farmers for sell milk in the compact region will situation where we have reverted to fluid, or class I milk. Delegations from get the same price as farmers in the re- laws written in the 1930’s and 1940’s. If each State comprise the voting mem- gion, that the commission’s pricing au- we do not find compromise and pass a bership of the commission, and these thority is strictly limited, and that the farm bill now, we face much greater delegations in turn will include both commission must develop a plan to en- costs and exacerbate instabilities in farmer and consumer representatives. sure that over-order prices do not lead the agricultural sector. Many of the The minimum price established by the to increases in production. Unfortu- programs of the 1930’s are unpopular commission is the Federal market nately, the amendment before us ig- because they call for strict acreage al- order price plus a small ‘‘over-order’’ nores the good-faith, constructive of- lotments and marketing quotas on differential that would be paid by milk ferings that we have made in the past. major crops. However, a simple exten- processing plants. This over-order price Mr. President, why should the Fed- sion of the current law for more than a is capped in the compact, and a two- eral Government deny the States an few months will prove to be economi- thirds voting majority of the commis- opportunity to solve their own prob- cally disastrous for both the Federal sion is required before any over-order lems, especially when it doesn’t cost Treasury and beleaguered farmers who price can be instituted. the Federal taxpayers? The answer is fall behind daily as talks continue in Mr. President, until a court struck that we shouldn’t. We should praise the the Senate Chamber. down the Main dairy vendor’s fee in States for their self-reliance and inge- I cannot say that I agree entirely 1994 because we did not have the re- nuity when they devise creative ways with the proposed farm bill, S. 1541. quired congressional authorization, to solve their problems, as they have The proposed 7-year contracts with the milk in my State was priced by a done in the case of this compact. I hope Federal Government, guaranteeing mechanism that is similar to that that Senators will recognize the value continued payments regardless of mar- which could be utilized by the Compact in this kind of state-based problem- ket conditions will allow farmers broad Commission. Maine’s experience was solving, support the wishes of the peo- flexibility to grow crops in accordance uniformly positive. Farm prices were ple who will really be affected by this with market conditions and not Gov- stable and reasonable, but no farmers legislation, and vote no on the ernment regulations. However, I am got rich on the minimal adjustment Wellstone amendment. concerned that the bill would cut provided by the ‘‘over-order’’ price ∑ Mr. HATFIELD. Mr. President, yes- spending for the Export Enhancement under the vendor’s fee program. It only terday, I voted for cloture on the Craig/ Program, which subsidizes overseas helped the farmers keep their heads Leahy substitute to the farm bill. I sale of U.S. commodities, such as above water. Dairy processors and ven- cast my vote in hopes of reaching clo- wheat. I am also concerned that the dors maintained their business, and ture so that we could debate and dis- Market Promotion Program [MPP], consumers did not see any significant cuss the 1995 farm bill. I have consist- which helps U.S. companies fund over- increases in the price of milk. It was a ently voted in the past in favor of mov- seas promotional and advertising cam- win-win proposition for everyone in ing forward with debate to ensure the paigns, would be capped. If we are to Maine, and I am confident that the integrity of farm legislation which allow flexibility to meet market de- compact will achieve the same success would allow our farmers to plant their mands we must also tap into as well as throughout New England without vio- crops. We were not able to obtain clo- create markets in foreign countries, es- lating the constitution’s interstate ture yesterday, however, late yester- pecially in the Pacific rim in order to commerce clause. day evening, the leadership came to an achieve the goal of independence from With very few exceptions, the com- agreement to complete a farm bill. Un- traditional Government assistance to pact only affects New England consum- fortunately, I am not able to be present farmers. ers, farmers, and dairy processors. The for today’s debate due to business Mr. President, I also offer an amend- compact applies only to fluid or class I which takes me away from the Senate. ment which addresses a problem in Or- milk, and approximately 97 percent of These past months I have postponed egon that deals with the Oregon Public the fluid milk consumed in New Eng- scheduled meetings and trips in order Broadcasting’s [OPB] eligibility for the land is processed by New England- to meet the Senate schedule. The busi- Public Television Demonstration Pro- based processors. Approximately 75 ness which takes me away from the gram administered by the U.S. Depart- percent of the milk that these proc- Senate today was planned many ment of Agriculture. OPB’s eligibility essors process comes from New Eng- months ago with the knowledge that for the program was held in suspension land farmers; the rest comes from New we would be in recess for the month of last year when it was discovered that York, whose farmers would receive any February. I am leading an important OPB’s broadcast coverage did not meet higher prices for their milk sold to New delegation from Oregon, which includes the statute’s statewide requirement. England under a compact. members of the Port of Portland, on a OPB covers 90 percent of the State’s Although the direct impacts of the vital trade mission to Taiwan and population and 84 percent of the compact fall only on the New England Korea. State’s rural area. And, since all of States, we have shown a more than Mr. President, I know that millions OPB’s productions are rebroadcast by ample willingness to address the con- of jobs, including those of truckers, re- one local public television station, S 1006 CONGRESSIONAL RECORD — SENATE February 7, 1996 OPB’s programs are essentially avail- pact does—it restrains trade and it al- Leahy substitute which contains the able to all Oregonians. Until the defini- lows States to fix prices. And it has compact. tion of ‘‘statewide’’ is clarified, OPB far-reaching consequences for the en- I am sure the many consumers in the will not be eligible for the grant pro- tire Nation. compact region would like a taxbreak gram. Thus I submit my amendment to Who will pay for the generosity of of $4,000 or more each year. Instead clarify the language for the eligibility these compact States to their dairy they will receive a tax increase criteria for the Public Television Dem- farmers? through their purchases of milk. onstration Program. Consumers in the compact region and I also urge my colleagues to keep in In conclusion, I find sections of this dairy farmers throughout the country. mind, that while in-region milk pro- farm bill which I would like to change, Since this bill has not been the sub- ducers get to vote on whether or not as do many of my colleagues. However, ject of a single hearing in the Senate, they want the higher price for the com- we must continue to find and forge and has never been marked up by the pact milk, consumers are afforded no compromise in order to move toward committee of jurisdiction, the Judici- such voice. Mr. President, I ask unani- not only a farm bill but balancing our ary Committee, in the 104th Congress, I mous consent that an editorial from national budget. I sincerely believe we think it is important that we review the New York Times, entitled ‘‘Milking will soon achieve that goal.∑ what the compact actually does. Consumers,’’ be printed in the RECORD Several Senators addressed the First, it allows six States to enter at this point. into to a compact to fix prices for fluid Chair. There being no objection, the article milk at a level substantially higher The PRESIDING OFFICER. The Sen- was ordered to be printed in the ator from Wisconsin. than allowed under the current Federal RECORD, as follows: Mr. KOHL. Mr. President, I yield up milk marketing order system. to 5 minutes of our time to Senator It would also allow six additional [From the New York Times, Saturday, July 22, 1995] FEINGOLD. States to enter the compact if they The PRESIDING OFFICER. The Sen- wish, along with any States contiguous New England senators and governors are ator from Wisconsin. to those additional six States. This is pressuring Bob Dole, the Senate majority Mr. FEINGOLD. Mr. President, I rise no small compact, Mr. President. If leader, to submit a pernicious bill to a hasty vote before it clears committee. in strong support of Senator those additional States are added—and The bill creates a compact among Maine, WELLSTONE’s amendment to strike the how could Congress justify denying Vermont, New Hampshire, Connecticut, congressional approval to the North- those States if we approve the initial Rhode Island and Massachusetts to raise east Dairy Compact contained in this six?—the compact area would comprise milk prices above Federal levels. By some es- Leahy substitute. I am pleased to be a 20 percent of national milk production. timates, the cost of a gallon of milk would cosponsor of his amendment. That is a significant level of produc- rise from about $2.50 to between $2.85 and $3. Mr. President, there are so many tion that would substantially disrupt Over all, the price increase would pump things wrong with this Northeast national milk markets and ultimately perhaps $500 million a year into the bank ac- Interstate Dairy Compact, it is dif- depress prices for all dairy producers in counts of New England dairy farmers. But it ficult to know where to begin. this country—except those in the com- would needlessly pummel poor parents by The greatest irony of the Northeast pact. forcing them to spend up to 20 percent more to buy milk. Dairy Compact’s inclusion in freedom Second, the compact would allow Besides discouraging milk drinking, the to farm is that the package, in the those States to set the price for fluid compact sets an ugly precedent. New Eng- words of the Agriculture Committee milk up to $17.40 per hundredweight—a land cannot enforce artifically high prices Chairman LUGAR, purports to be mar- full $1.35 above the current minimum unless it keeps milk produced outside New ket oriented. He called this package a fluid milk price in that region estab- England from flowing into the region. That bold departure from current law. Well, lished by Federal orders. I would also is why the bill imposes what amounts to a he’s right. The Northeast Compact is a caution my colleagues that the current protective tariff on ‘‘imported’’ milk. bold departure from current law, but it fluid milk price for the Northeast is at The compact would in effect create a bar- is far, very far, from the goal of market one of its highest levels in years. What rier to interstate commerce, sharing our orientation. this means is that the $1.35 bonus for milk produced in the Middle West the way the United States threatened to shut out Mr. President, the Northeast Dairy New England milk producers is likely luxury cars from Japan. The precedent so set Compact is the antithesis of market the smallest that bonus will be for the would be ill advised, if not unconstitutional. orientation. It is exactly the type of 5-year period of this compact. That What might be next? An oil compact in the program that reformers in this body minimum bonus would translate into a Southwest? A wheat compact in the Mid- have been targeting for 2 years. Many minimum consumer-funded payment of west? of those who support the Northeast $4,000 for a farmer with a 50-cow herd. Mr. Dole ought to reject a quick vote on Interstate Dairy Compact have been Also keep in mind that the minimum the dairy compact because it raises unex- among the most outspoken critics of price in the compact States is allowed plored constitutional issues. Senators ought farm programs which impose taxes on to be adjusted by inflation using 1990 as to reject the compact because it needlessly harms children. Mark Goldman, president of consumers to support agricultural pro- a base year. By the year 2000 the cap on a New Jersey milk processor, poses the right ducers—which is exactly what the fluid milk prices could be well over $20 question. Who believes that the voters of Northeast Compact does. But it does if inflation increases by 3 percent per New England if forthrightly asked, would ap- far more than that, Mr. President. year. prove paying an additional 56 cents for a gal- The compact allows six States with That consumers will pay dearly for lon of milk for the privilege of fattening the far more consumers than dairy produc- the privilege of supporting the New bank accounts of a few nearby farmers? ers, to artificially raise the price that England dairy industry is proven by Mr. FEINGOLD. The New York consumers pay for fluid milk. It is a the provision in this bill that requires Times editorial states: price fixing compact, pure and simple, the compact States to reimburse the The price increase [provided in the Com- Mr. President. And it is without prece- Women, Infants and Children’s Supple- pact] would pump perhaps $50 million a year dent in our Nation’s history. mental Food Program for the increased into the bank accounts of New England dairy This is not about States rights. Never cost of milk purchased under the pro- farmers. But it would needlessly pummel was the 10th amendment or the com- gram. However, taxpayers would not be poor parents by forcing them to spend up to pact clause of our Constitution in- reimbursed for the higher costs of man- 20 percent more to buy milk. tended to allow several States to datory nutrition programs such as na- The editorial provides some good ad- collude to fix prices for products pro- tional school lunch and breakfast pro- vice to Senators who will soon vote on duced in those States while simulta- grams, food stamps, and others. this measure—Senators ought to reject neously keeping products produced in For a Congress so fervently promot- the compact because it needlessly other States out of the compact region. ing tax breaks for Americans, I am sur- harms children. I think that is pretty Mr. President, that would be a re- prised to see this tax on consumers so good advice, Mr. President. straint of interstate commerce. Well, heartily embraced by the compact sup- In addition to the ill effects on con- Mr. President, that is what this com- porters and the supporters of the sumers, the compact erects barriers to February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1007 keep milk from other States from flow- gional one. A surplus in one region de- Mr. President, I understand why the ing into the compact region. The Com- presses prices for all farmers nation- compact States want the consent of pact requires that lower cost milk pro- ally, and a shortage in one region Congress for this compact. The North- duced in surrounding States must re- raises prices for all farmers. That is east is losing dairy farmers. But, Mr. ceive the higher compact price, why there is a national system for the President, the decline in dairy farmer through compensatory payments, even marketing and pricing of milk. numbers is a national trend and the if producers in those other States can However, with this compact, when pain is felt nationwide. provide that milk at a lower cost to national prices that farmers receive for Today there are 27,000 dairy farmers buyers. When you include transpor- milk plummet due to changing market in my home State of Wisconsin, more tation costs, any buyer of milk in the conditions, the Northeast compact than any other State in the Nation; 15 compact region would be foolish to ac- States will be completely isolated from years ago, Mr. President, there were quire milk from outside the compact those price fluctuations. When dairy 45,000. Mr. President, our average herd region. Any unwise buyer who did so farmers in Texas or New Mexico or size in Wisconsin is small—55 cows. would soon be put out of business by Florida are responding to lower milk These are small farmers who have ex- their competitors. prices by reducing supply, the North- perienced the same problems facing the That producers from noncompact east producers will continue to over- Northeast—but far more acutely than States are free to sell into the compact produce milk despite the market sig- any other region of the country and region, as the supporters claim, is ac- nals. And that, Mr. President, will ex- more than any other individual State. curate. However, there would be no de- acerbate the excess supply situation My State of Wisconsin, which until 1993 mand for that milk because of the dis- depressing prices nationwide. was the No. 1 milk producing State in incentives the compact creates for its Not only will the compact insulate the country, suffers from the loss of acquisition. Northeast producers from price shocks over 1,000 dairy farmers per year. We While compact supporters claim that that all other farmers face, it will also lose more farms per year than the cur- any producer in the country will be have the effect of driving down prices rent number of dairy farmers in five of able to benefit from this, it is illogical for dairy farmers in other parts of the the six compact States. to conclude that is true. If it were, the country even if supply and demand are A recent survey indicated that in the compact itself would be rendered inef- in balance. next 5 years 40 percent of our remain- fective because the compact region It is a simple fact of economics that ing farmers will go out of business. would be flooded with less expensive dairy farmers respond to higher prices That is over 10,000 family dairy farm- milk from surrounding States. Make with greater production. The exorbi- ers. no mistake, this compact is only sup- tant compact prices will surely in- This trend is mirrored in other States throughout the upper Midwest. ported by its sponsors because the crease production in the Northeast and While we recognize that there are walls it erects around the compact re- yet the compact provides for no effec- many reasons for this decline, the over- gion are high and well-reinforced. tive method of supply control. Those whelming message I hear from family Third, while milk from outside the surpluses produced in the Northeast dairy farmers in Wisconsin, Minnesota, compact region is prevented from en- will drive down prices for farmers ev- and throughout the Midwest is that we tering, milk processors in the compact erywhere. need reform of outdated Federal milk region who must pay the higher price In addition, without a market for marketing orders which provide artifi- for the raw product, may receive a sub- that surplus milk in fluid form, it will cial advantages to other regions of the sidy to allow them to ship their prod- go into secondary milk markets. It will country driving Wisconsin farmers out ucts outside the compact region. The be manufactured into cheese and but- of business. compact includes that trade subsidy ter and powdered milk. Those products, So I understand the desire of the because those compact region proc- generated by excess production in the Northeast to remedy their local and re- essors will be required to pay so much Northeast, will then compete on the gional problems in their dairy indus- for milk that their products would be national market alongside products try, however further regionalizing uncompetitive in other parts of the produced in other States by producers dairy policy is not the answer. Con- country where milk producers do not receiving far lower milk prices. gressional changes to dairy policy receive artificially inflated prices. Not only will noncompact producers must recognize the national nature of For members who think the impacts suffer from lower prices, but they milk marketing as well as the com- of the compact are isolated to compact would also lose markets for their prod- prehensive and interrelated nature of States, I suggest they take a careful ucts. fluid and manufactured milk products. look at this provision. The very export Mr. President, not only does this Wisconsin dairy farmers can no subsidies we have been trying to tear compact fail to recognize the national longer afford to help other regions at down in international trade through nature of milk markets, but it builds their own expense. GATT and NAFTA will be imposed by additional regional biases into current The supporters of this legislation the compact region States to the dis- law. have tried to present this as a very advantage of milk processors and pro- The compact exacerbates current in- simple idea—that of a simple inter- ducers in other States. equities of the Federal milk marketing state compact designed to help the In summary, Mr. President, this com- order system that have discriminated struggling producers of that region in pact provides authority for six States— against upper Midwest dairy producers isolation from national markets and and potentially many more—to fix ar- for years. It is inherently market dis- having no unintended effects on non- tificially high prices for milk at the ex- torting and regionally discriminatory. compact producers. pense of consumers. It erects barriers I want to just reiterate, the Senator Mr. President, I urge my colleagues to any noncompact milk, and it sub- from Vermont, Senator JEFFORDS, indi- to recognize that simply is not the sidizes exports of compact region prod- cated we will have a opportunity later case. This compact is unprecedented ucts. in the day to vote on something to help and Members should not be surprised I’ve talked about the impacts on con- the Midwest. That is not clear at all, that approval of this package will re- sumers. But what of the impact on unless there is an agreement between sult in additional request to approve dairy farmers throughout the country? the parties. We are trying very hard, price fixing compacts. The compact balkanizes the U.S. but if that is not achieved we will be I urge my colleagues to support the dairy industry by insulating the North- ending up with current law in this motion to strike the Northeast Dairy east dairy industry from the market area, so there is no real help for the Compact from the bill. It is not market conditions that all other farmers in rest of the country in that regard. oriented. It is the antithesis of market this country must face. And, Mr. Presi- In addition, this compact will also orientation and its inclusion in this dent, there are dairy farmers in every have a significant impact on the entire bill is completely inconsistent with the State of this Nation that will be af- U.S. dairy industry. It insulates New rhetoric of this Congress including fected by this. That is because there is England dairy producers from the mar- many of the supporters of this com- a national market for milk, not a re- ket. pact. S 1008 CONGRESSIONAL RECORD — SENATE February 7, 1996 Providing congressional consent to would or would not do. Not surpris- NEW ENGLAND this compact in a bill which purports ingly, the dairy processors’ lobby have GOVERNORS’ CONFERENCE, INC., to allow farmers to take their signals been promoting misguided information Boston, MA, July 17, 1995. from the marketplace not the Govern- on how the compact will work. They Hon. ROBERT DOLE, Hart Senate Office Building, ment would be the ultimate irony of have a long history of working against Washington, DC. this farm bill. legislation that protects and improves DEAR SENATOR DOLE: We, the Governors of If we pass this compact today, I be- dairy farmer income. the New England States, have learned that lieve every Member will soon regret it. However, the compact, which has you will soon consider the Northeast Inter- I urge my colleagues to support this been approved overwhelming in each of state Dairy Compact, SJR 28, on the Senate motion to strike the Northeast Inter- the six New England State legislatures Floor. We would like to take this oppor- state Dairy Compact from the farm tunity to thank you for agreeing to take this is not the monster that a select few bill. critical, procedural step on behalf of the have made it out to be. The PRESIDING OFFICER. The Sen- Compact, and to reaffirm our strong support ator from Wisconsin has 2 minutes re- The Northeast dairy compact is in- of its passage. maining. tended to help give farmers and con- Enclosed, you will find the New England Mr. KOHL. Mr. President, on behalf sumers fair and stable milk prices. The Governor’s Conference resolution which was compact has been carefully crafted so adopted in support of Congressional approval of myself, Senator FEINGOLD, Senator of the Compact. The resolution details the WELLSTONE, Senator GRAMS, Senator that it will not affect the national significance of the Compact to our region LAUTENBERG, and Senator HATCH, I diary industry or burden the consumer. with regard to its specific importance to urge my colleagues to vote in favor of The compact can only regulate class I both New England dairy farmers and con- this motion to strike the Northeast milk in New England, that is beverage sumers, and, equally, as a model of formal, Dairy Compact. or fluid milk, which makes up only 1.5 interstate cooperation. I would also like to point out the 65- percent of the national milk supply. Thank you again for agreeing to move the to 35-vote that Senator JEFFORDS and We are dealing with a very small Compact forward. We are hopeful that, when it comes to the Floor, you will consider its Senator LEAHY referred to was a vote amount of fluid milk. National proc- on a much broader reconciliation importance to our region. essors will not be affected by this com- Very truly yours, amendment that had other things in it pact. It will have no affect on class II STEPHEN MERRILL, beside the Northeast Dairy Compact, of class III milk which is used for man- Governor, New Hampshire, Chairman. so that was not a clean vote. What we ufactured products. WILLIAM F. WELD, are going to have today on the North- Mr. President, my own State of Ver- Governor, Massachusetts. east Dairy Compact is a clean vote mont has lost over 1,200 farms in the JOHN G. ROWLAND, without any other considerations. I last 10 years. Today, Vermont dairy Governor, Connecticut. HOWARD DEAN, M.D., hope that will elicit a different and a farmers are receiving milk prices well more correct response than the vote Governor, Vermont, Vice Chairman. below the cost of production. Current ANGUS KING, Jr., that occurred heretofore. milk prices for farmers are as low as Governor, Maine. I thank the Chair. they were over 10 years ago. LINCOLN C. ALMOND, Mr. JEFFORDS. Mr. President, how Governor, Rhode Island. much time do I have left? I understand that Vermont is not the only State to witness a decline in its The PRESIDING OFFICER. The Sen- RESOLUTION 127—NORTHEAST DAIRY COMPACT ator from Vermont has 5 minutes and number of dairy farms. Dairy farms throughout the country deserve price A Resolution of the New England Gov- 50 seconds left. ernors’ Conference, Inc. in support of con- Mr. JEFFORDS. Mr. President, I rise stability and enhancement and I hope gressional enactment of the Northeast Dairy in strong opposition to this amend- that a dairy compromise amendment Compact. ment. The Northeast interstate dairy will be offered and accepted today that Whereas, the six New England states have compact is the remarkable product of 7 will benefit farms across this Nation. enacted the Northeast Interstate Dairy Com- years of formal, interstate cooperation Mr. President, New England is not pact to address the alarming loss of dairy in New England. It has the bipartisan asking Washington to solve its prob- farms in the region; and support of the region’s six Governors— lem, it is asking Washington to allow Whereas, the Compact is a unique partner- ship of the region’s governments and the four Republicans, one Democrat and New England to solve its problem on dairy industry supported by a broad and ac- one Independent. And it is backed by its own. The compact is a regional so- tive coalition of organizations and people the region’s farmers, consumers, and lution to a regional problem. The six committed to maintaining the vitality of the milk processors alike. New England States should not be de- region’s dairy industry, including consum- Mr. President, we have spoken often nied the opportunity to do just that. ers, processors, bankers, equipment dealers, this past year in this Chamber about Mr. President, I urge my colleagues veterinarians, the tourist and travel indus- try, environmentalists, land conservationists returning power back to our sovereign to vote against this amendment and States, to allow the States to work to- and recreational users of open land; and allow the people of Vermont and New Whereas, the Compact would not harm but gether with the Federal Government to England the opportunity to help them- instead complement the existing federal solve the problems we face. Here is a selves protect the future of their dairy structure for milk pricing, nor adversely af- fine example of such a cooperative fed- farms. fect the competitive position of any dairy eralism, most appropriately presented Mr. President, let me remind every- farmer, processor or other market partici- in the context of this farm bill. one again, you have been reminded, pant in the nation’s dairy industry; and The compact is a pilot project, with a Whereas, the limited and relatively iso- you voted for this and I think you 5-year sunset. It simply needs congres- lated market position of the New England ought to keep that in mind. You voted sional consent to be approved. I urge dairy industry makes it an appropriate local- for it in a very similar situation. It was this body to give the New England ity in which to assess the effectiveness of re- a bigger bill, yes, but it was the same gional regulation of milk pricing, and States an opportunity to implement issue exactly. Whereas, the Constitution of the United this test program. The New England States have taken States expressly authorizes states to enter Mr. President, the compact has had into interstate compacts with the approval an impressive journey through the six 7 years to examine what they can do to of Congress and government at all levels in- New England State legislatures. In help the dairy farmers. I have here, and creasingly recognizes the need to promote fact, it has passed with overwhelming I ask unanimous consent to have print- cooperative, federalist solutions to local and margins in both producing and consum- ed in the RECORD, a letter from the six regional problems; and ing States. The Rhode Island State New England Governors to the leader Whereas, the Northeast Interstate Dairy Legislature, representing over 1 mil- here, telling him that they support this Compact has been submitted to Congress for approval as required by the Constitution: lion consumers and only 31 dairy farms bill, together with some other mate- rial. It is very important. Now, therefore, be it voted near unanimously to pass the Resolved, That the New England Governors’ compact. There being no objection, the mate- Conference, Inc. requests that Congress ap- Some of my colleagues have been rial was ordered to be printed in the prove the Northeast Interstate Dairy Com- misinformed about what the compact RECORD, as follows: pact; and be it further February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1009 Resolved, That, a copy of this resolution be They have also, though, created even the Congress, then there will be no way sent to the leadership of the Senate and the more problems for themselves because to prevent in a logical way any other House of Representatives, the Chairs of the they are the most efficient producers group of States setting up similar appropriate legislative committees, and the in America today. Their efficiency and price-fixing mechanisms under the Secretary of the United States Department of Agriculture. their hard work is not being rewarded. same justification, not only in dairy Adoption certified by the New England It tends to be punished, with the sys- but in any other industry. That is not Governors’ Conference, Inc. on January 31, tem we have. what we intend to do in this country. 1995. What we are saying is at least allow We need a national market for our STEPHEN MERRILL, us, consumers and producers alike in products in this country. Governor of New Hampshire, Chairman. New England, to set our own destiny. It So every Senator is affected by what is the only fair thing. This is not a case will occur if we allow the Northeast INTERSTATE COMPACT LEGISLATIVE PROCESS where it is farmers against consumers, Dairy Compact to make its way Connecticut: (P.L. 93–320) House vote—143– 4; Senate vote—30–6. (Joint Committee on as though the two are different; or con- through Congress. It is for that rea- Environment voted bill out 22–2; Joint Com- sumers against farmers. This is a case son—and the other reasons that we mittee on Government Administration and where producers and users come to- have discussed—that I urge my col- Relations voted bill out 15–3; Joint Commit- gether to make it work. leagues to reject the Northeast Dairy tee on Judiciary voted bill out 28–0.) I hope we defeat the effort to strike Compact. Maine: Originally adopted Compact ena- the New England Dairy Compact. It I thank you. bling legislation in 1989 (P.L. 89–437) Floor has been put together by Republicans Mr. JEFFORDS. Mr. President, as we votes and Joint Committee on Agriculture and Democrats alike. This Senate bring this to a close, I know everyone vote not recorded. The law was amended in 1993. (P.L. 93–274) House vote—114–1; Senate ought to approve it. is interested in saving their dairy vote—25–0. (Joint Committee on Agriculture Mr. JEFFORDS. Mr. President, we farms. The question is whether you try vote not recorded.) have spoken often in the past year, in to do it at the expense of some other Massachusetts: (P.L. 93–370) Approved by this Chamber, about returning power dairy farmer. Vermont has lost one- unrecorded voice votes. back to the sovereign States to allow third of its farms in the last 10 years. New Hampshire: (P.L. 93–336) Senate vote— the States to work together with the I know the Midwest has done likewise. 18–4; House vote—unrecorded voice vote; Federal Government to solve the prob- But they are not hurt by us. As pointed (Senate Committee on Interstate Coopera- tion vote—unrecorded voice vote; House lems we face. Here is a fine example of out, they can ship to us now. They can Committee on Agriculture voted bill out 17– such cooperative federalism. ship at a higher price if this goes 0.) Most appropriately presented in the through. But they cannot do it; they Rhode Island: (P.L. 93–336) House vote—80– context of this farm bill here, the com- are too far away. That is our problem. 7; Senate vote—38–0. (House Committee on pact is a pilot project with a 5-year We are too far away from anything. We Judiciary voted bill out 11–2; Senate Com- sunset. It simply needs congressional are at the end of the energy stream. We mittee on Judiciary voice vote not recorded.) consent to be approved. Other States are at the end of everything. We are Vermont: Originally adopted Compact in 1989. (P.L. 89–95) House vote—unanimous can do it by themselves. They are big tucked up in that little corner barri- voice vote; Senate vote—29–1. The law was enough. We cannot. caded from markets in Canada. We amended in 1993. (P.L. 93–57) Floor voice I urge this body to give the New Eng- could get 50 percent more for our milk votes, and House and Senate Agriculture land States an opportunity to imple- if we could go across the border. We Committee voice votes, not recorded. ment this test program. The compact want to stay alive, and our States and Mr. JEFFORDS. Also, I have letters has had an impressive journey through our State legislators want us to stay from the Governors to all of us with re- six New England State legislatures alive. When you get six States to ap- spect to that. We have brought this —six State legislatures. Two of them, prove something that helps the farmers over here. We have explained it to primarily consumers have approved so primarily in two States, you have got staffs and they agreed with us, 65 to 35. they can help keep their dairy farmers to really believe that they are sincere I wanted you to keep that in mind. and the rural life of Vermont alive. The in their efforts to try to do what is best Second, we are a negative producer. Rhode Island State Legislature, rep- for their State. What are they afraid of? We only resenting over 1 million consumers and Mr. President, I urge a ‘‘no’’ vote on produce 70 percent of the milk only 31 dairy farms, nearly unani- this motion to strike. By a vote of 65 to consumed in New England. We are not mously passed this. Why should we be 35 the Senate voted against what they a threat to anybody. Mr. President, 30 prohibited from doing what other are being asked to do today. I hope percent of our milk comes from New States can do, merely because the Mid- they will recognize that and keep the York and Pennsylvania. It can come west believes and hopes that sometime same wonderful logic that they used from Wisconsin. It can come from Min- in the future they can ship their milk for those 65 votes. nesota. We are not creating any bar- to us because the price would get so I yield to the Senator from Vermont riers to anybody. high, because our farmers are out of for a final comment. We say our consumers are so desirous business, that they could ship it over The PRESIDING OFFICER. All time of making sure that our farmers are there to profit? has expired. there—they love the cows on the hill- They are welcome now. Why do they Mr. LUGAR. Mr. President, I ask for sides. That is New England. It is tradi- want to be so greedy? the yeas and nays on the amendment. tion. Mr. President, how much time do I The PRESIDING OFFICER. The yeas All we are asking is to be treated as have left? and nays have already been ordered. any other big State can be. New York The PRESIDING OFFICER. The Sen- Mr. LUGAR. I thank the Chair. has an order that helps protect their ator from Vermont has 1 minute and 25 Mr. President, I ask unanimous con- producers, California does, other States seconds. sent that the Kohl amendment be tem- do. Why can we not, as six little States Mr. JEFFORDS. Mr. President, I re- porarily set aside with the vote to up in New England tucked off up in the serve the remainder of my time. occur on or in relation to the amend- corner there, have the ability to pro- The PRESIDING OFFICER. The Sen- ment and the time to be set by the ma- tect our dairy farms? ator from Wisconsin. jority leader after consultation with I yield to the Senator from Vermont. Mr. KOHL. Mr. President, I would the Democratic leader. I also ask unan- Mr. LEAHY. Mr. President, obviously like to add that Senator PRESSLER is imous consent that if there are stacked I agree completely with my colleague cosponsor of this amendment. He was votes, the votes occur in the order they from Vermont on this. The point is, an original sponsor. were offered. this goes beyond questions even of ro- The PRESIDING OFFICER. Without The PRESIDING OFFICER. Without manticism or anything else. It is not objection, it is so ordered. objection, it is so ordered. romanticism when we talk about the Mr. KOHL. Mr. President, I would Mr. LUGAR. Mr. President, for the hard work of the dairy farmers. This is like, in closing, to remind Senators benefit and information of all Mem- one of the most difficult jobs in Amer- that if we allow this kind of a price-fix- bers, the agreement calls for several ica today. ing scheme to make its way through amendments in sequence. To the best S 1010 CONGRESSIONAL RECORD — SENATE February 7, 1996 of our ability, we will shift back from SEC. . CLARIFICATION OF EFFECT OF RE- simply is a clarification of an action one party to the other, although the SOURCE PLANNING ON ALLOCATION that the Senate had taken earlier in OR USE OF WATER. agreement reached last evening was (a) NATIONAL FOREST SYSTEM RESOURCE the year. That action was taken on an that if there are not Members present PLANNING.—Section 6 of the Forest and appropriations bill. As I am sure Mem- from the opposite party, we would feel Rangeland Renewable Resources Planning bers will appreciate, the members of free to move to whoever had an amend- Act of 1974 (16 U.S.C. 1604) is amended by add- the Appropriations Committee are re- ment. There are 10 amendments offered ing at the end the following new subsection: luctant to legislate on an appropria- on the Democratic side and five on the ‘‘(n) LIMITATION ON AUTHORITY.—Nothing tions bill. The form it took was a re- Republican side if the maximum were in this section shall be construed to super- striction in spending of funds by the sede, abrogate or otherwise impair any right to be offered. or authority of a State to allocate quantities Secretary of Agriculture. Next in sequence we are anticipating of water (including boundary waters). Noth- Mr. President, to be brief, the situa- the amendment by the distinguished ing in this section shall be implemented, en- tion arises out of a rather difficult cir- Senator from Colorado, who is in fact forced, or construed to allow any officer or cumstance that involved what I believe present. He will control the time on agency of the United States to utilize di- is a maverick regional forester. The our side on that amendment. rectly or indirectly the authorities estab- situation is this: Colorado has about 37 Mr. LEAHY. Mr. President, will the lished under this section to impose any re- percent of its State owned by the Fed- quirement not imposed by the State which Senator from Indiana yield for another eral Government. It is literally very would supersede, abrogate, or otherwise im- difficult, or impossible in some areas, housekeeping observation? pair rights to the use of water resources allo- I urge Senators who may have cated under State law, interstate water com- to transfer water from the mountain amendments, or issues, if they can to pact, or Supreme Court decree, or held by areas where it is accumulated from the come and talk with the distinguished the United States for use by a State, its po- snow melt and the reservoirs to the Senator from Indiana and myself to see litical subdivisions, or its citizens. No water cities for drinking water without cross- if maybe not all amendments nec- rights arise in the United States or any ing Federal ground. There are a few other person under the provisions of this areas where it is possible to get drink- essarily need a vote. If it is possible for Act.’’ us to come together on something, now ing to the cities and deliver drinking (b) LAND USE PLANNING UNDER BUREAU OF water and agricultural water without is the time to do it. LAND MANAGEMENT AUTHORITIES.—Section The other thing is that I hope when 202 of the Federal Land Policy and Manage- crossing Federal ground, but very few. we stack the votes— and I believe it is ment Act of 1976 (43 U.S.C. 1712) is amended To cross Federal ground, what has the intention of the leaders to do this by adding at the end the following new sub- traditionally been the case is permits at that time—that after the first vote section: have been offered by the Federal Gov- ‘‘(g) LIMITATION OF AUTHORITY.—Nothing in there would be a shortened time for ernment. As the Senate is well aware, this section shall be construed to supersede, when someone applies for a new per- subsequent votes. But I urge the co- abrogate, or otherwise impair any right or operation of Senators, certainly on my mit, an extensive review takes place. authority of a State to allocate quantities of That is to ensure that it meets the en- side of the aisle, and I am sure the dis- water (including boundary waters). Nothing tinguished Senator from Indiana feels in this section shall be implemented, en- vironmental standards of the Forest that way about his side of the aisle we forced, or construed to allow any officer or Service. What is happening in Colorado as we move forward on these issues. agency of the United States to utilize di- is an entirely new event which has rectly or indirectly the authorities estab- begun to take place, and in other Mr. LUGAR. Mr. President, I concur lished under this section to impose any re- places around the country. That is, in all the distinguished Senator has quirement not imposed by the State which when these permits to cross Federal said. would supersede, abrogate, or otherwise im- ground came up for renewal, the Forest Let me also mention that one reason pair rights to the use of water resources allo- Service has demanded that the cities for having votes late in the morning is cated under State law, interstate compact, forfeit a third of their drinking water literally to clear the trail—it is the in- or Supreme Court decree, or held by the for them to be allowed to renew their tent of the leadership to complete ac- United States for use by a State, its political permit to cross Federal ground. tion on this bill at 4:45—so that every- subdivisions, or its citizens. No water rights arise in the United States or any other per- No provision for forfeiting water is one has been heard, and votes occur- son under the provisions of this Act.’’ included in the statutes. One would ring may in fact be stacked votes later (c) AUTHORIZATION TO GRANT RIGHTS-OF- certainly understand if these were new in the morning. WAY.—Section 501 of the Federal Land Pol- permissions, but they are not. They are I yield the floor. icy and Management Act of 1976 (43 U.S.C. existing permits. In a number of cases, 1761) is amended— Mr. BROWN addressed the Chair. the permits preexisted the existence of The PRESIDING OFFICER. The Sen- (1) in subsection (c)(1)— (A) by striking subparagraph (B); the Forest Service. Some had literally ator from Colorado. (B) in subparagraph (D), by striking ‘‘origi- been in existence for well over 100 AMENDMENT NO. 3443 TO AMENDMENT NO. 3184 nally constructed’’; years. They are the absolute lifeblood (Purpose: To direct the Secretary of Agri- (C) in subparagraph (G), by striking ‘‘1996’’ of the State. I may say this practice culture to ensure that private property and inserting ‘‘1998’’; and (D) by redesignating subparagraphs (C) appears to do be followed by a number rights, including water rights, will be rec- through (G) as subparagraphs (B) through of other foresters around the country ognized and protected in the course of spe- (F), respectively: as they look at it and begin to apply cial use permitting decisions for existing (2) in subsection (c)(3)(A), by striking the this same consent to other States. water supply facilities) second and third sentences; and Literally what happened is the For- Mr. BROWN. Mr. President, I send an (3) by adding at the end the following new est Service wanted to extort—I use amendment to the desk and I ask for subsection: that word advisedly because it is a its consideration. ‘‘(e) EFFECT ON VALID EXISTING RIGHTS.— Notwithstanding any provision of this sec- strong word, but I think it fits—water The PRESIDING OFFICER. The from the cities as a condition to renew clerk will report. tion, no Federal agency may require, as a condition of, or in connection with, the an existing permit. Let me emphasize The assistant legislative clerk read granting, issuance, or renewal of a right-of- that nothing was changed. If some- as follows: way under this section, a restriction or limi- thing was different, if there was an ex- The Senator from Colorado [Mr. BROWN] tation on the operation, use, repair, or re- pansion of the permit or a change in proposes an amendment numbered 3443 to placement of an existing water supply facil- the use of the permit, one would under- amendment No. 3184. ity which is located on or above National stand action by the Forest Service. But Mr. BROWN. Mr. President, I ask Forest lands or the exercise and use of exist- ing water rights, if such condition would re- these were circumstances where the unanimous consent that reading of the duce the quantity of water which would oth- city wanted to specifically use its amendment be dispensed with. erwise be made available for use by the drinking water the way it had for over The PRESIDING OFFICER. Without owner of such facility or water rights, or 100 years. The Forest Service used the objection, it is so ordered. cause an increase in the cost of the water event of renewing the permit to de- The amendment is as follows: supply provided from such facility.’’ mand a forfeiture of the water. No stat- At the appropriate place, insert the follow- Mr. BROWN. Mr. President, both ute gives them that authority, but ing: sides have a copy of this amendment. It when they have the ability to stop the February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1011 renewal of the permit, they have enor- committee consideration. We have on which a high ranking member offi- mous leverage. done this before. The Senate one other cial of the Department of Agriculture Our cities and our water districts time changed Forest Service law on an had misrepresented the facts to Con- spent literally millions of dollars. One ad hoc basis, and I think many of us gress. It was extensively debated dur- of the most environmentally conscious rued the day for that. The so-called sal- ing that debate last year. communities, I believe, in the Nation— vage rider was done on an ad hoc basis. I might say this has gone on for sev- Boulder, CO—had attorney’s fees that It was done to address dead and dying eral years, and the administrative re- exceeded millions of dollars just in trees. In fact, the measure instead sus- sponse, of course, is the first thing you that one city’s case alone. What hap- pended laws in Oregon and Washington would think of and the most natural, pened is some of the small cities that and forced the Forest Service to cut and I might say when this first hap- could not afford the attorney’s fees for- live, green, ancient forest. pened, let me spell out if I could what feited a third of their water, or a por- What I worry about is under the con- happened. tion of their water rights. Others, stricted and contracted situation in When I first heard about this, I through negotiation, forfeited less. which we find ourselves we might do learned that Boulder, which has had Others fought it through court and something similar. reservoirs in the mountains and used continue with longstanding studies and The Senator has held a dozen hear- them for drinking water for well over expensive attorneys’ fees to negotiate ings this year on Forest Service law fo- 100 years, had been denied the the process out. cusing especially on conflicts within reissuance of the permit even though All this amendment does is exactly the existing law, but this issue has not they intended to use it exactly the what was done earlier in the year received significant attention in this same way they had always used it, and through the appropriations process. It logical forum despite representation on they had demanded from them a third simply says when you have an existing the Energy and Natural Resources of their water rights. permit, where you are not changing it, Committee. When I heard that and I found it ap- that they cannot require you to forfeit I worry when we tell the Forest Serv- plied to other cities, I went to the Sec- your water rights. It stops extortion in ice that they have to mandate for mul- retary of Agriculture, who was at that effect. tiple use, which we have. That is a law time Secretary Madigan. I do not know of any opposition. The passed long before any of us were in the So I might say to the Senator from amendment, when it came up on the Senate. That means the Forest Service Vermont I did follow the administra- appropriations bill, enjoyed strong bi- has to manage for anglers, boaters, tive route on this. I did talk to Sec- partisan support. It was adopted by the fisheries, wildlife, recreation, skiing, retary Madigan. He issued a specific di- House conferees on the Appropriations and a dozen other uses. They have to do rective ordering them to issue the per- Committee. that by law. Now we have this amend- mit. Secretary Madigan gave out a spe- Let me emphasize, it is important be- ment though that says a single use gets cial directive, signed by the Secretary, cause the cities continue to spend mil- preference but yet the multiple use law directing the regional forester to issue lions of dollars in attorneys’ fees. To which has been there for 35 years still the permit. The regional forester re- change the rules after the project is stands. ceived that directive and did not follow built, after the drinking water is deliv- If we have a problem here, let us find it—ignored it—until Secretary Mad- ered, is wrong. It is not simply bad pol- a better way of doing it. I think it can igan had left office. It was at that time icy, but it is wrong in terms of a moral be solved administratively. The De- that the administration indicated to us standard. To change the rules of the partment of Agriculture spent a lot of that policy was still in effect and they game after you have set up your water time, I am told, on this issue. I am in- intended to eventually issue the per- system, spent millions of dollars, and formed that all the parties involved mits. you have thousands of people depend- have been invited to participate and So we have followed the administra- ent on it for drinking supplies is a that the relevant parties have agreed tive route. travesty. to a settlement. If that is the case, I Now, what happened was a high rank- This sets forth in the statute clear think we should follow that procedure, ing official from the Department of Ag- guidelines so that you cannot retro- not venture into unknown territory riculture testified that this was still actively repeal someone’s water rights with a sweeping amendment to laws the policy, testified under oath before or extort water. It does not, let me em- that have been on the books for dec- Congress that this was still the policy, phasize, apply to new projects. Every- ades. and it was not. They had repealed it se- one should understand that the Forest The Forest Service was established cretly. So this has had extensive de- Service has an appropriate job in re- to serve the many interests of all bate and extensive review. newing new applications, but it is a Americans. This amendment says that I have to tell the Senator in the very important item to be included in is fine, they can serve all Americans strongest words I know I cannot sit this measure and a very important pro- except that one becomes more equal back and have my cities lose their di- tection for cities, municipalities and than the other, water uses. And the rect drinking water on a permit that is farmers around the Nation. idea of multiple use goes out the win- over 100 years old when they do not in- I do not know of opposition. I will be dow. tend to change it. happy to answer questions from other So between now and the time of the Now, that is not reasonable. I do not Members, and I reserve the remainder vote I would be happy to talk with the intend to change existing law one sin- of my time. proponent of the amendment, but, gle bit, not one bit. The McCarran law Mr. LEAHY addressed the Chair. frankly, at this point I would have to discusses specifically the primacy of The PRESIDING OFFICER. The Sen- oppose it because I believe it steps into State with regard to water allocation ator from Vermont. a major area of law and does it in a and water rights. But let me assure the Mr. LEAHY. Mr. President, how way that could have unforeseen and Senator and the Members of the Senate much time is available to any who difficult results. this in no way mandates multiple use— might speak in opposition? I reserve the remainder of my time. no way. The PRESIDING OFFICER. Fifteen Mr. BROWN. Mr. President, if I could This is a restatement of the minutes. respond to the Senator from Vermont, McCarran law as it applies to permits. Mr. LEAHY. Mr. President, I reserve I appreciate his remarks, and I think I want to indicate to the distinguished that time. he is right to be concerned that we Senator from Vermont, I would be I should say that I do have a concern. take a thorough look at these amend- happy to work with him on this amend- This came up quite late last night, and ments as they come up. ment. If he has suggestions for it, I I have just had a chance to start look- Let me say that this was not only the would be happy to look at those and re- ing at it. I am concerned that the action as a result of debate, extensive view them. I would be happy to work amendment would change permanent debate in the Chamber on an amend- with him in any way I can. But one Forest Service law and does so without ment to the appropriations bill earlier thing I cannot do—and I cannot believe the normal hearings and debate or this year, but it was the very subject any Member of the Senate could do—is S 1012 CONGRESSIONAL RECORD — SENATE February 7, 1996 stand idly by and watch their cities you have to give us some of the water.’’ Mr. President, it is essential that we lose their drinking water. That does Instead of going in and filing for water do this. Without it, our cities face lit- not make good sense. That is what is like every other citizen has the respon- erally millions of dollars of attorneys’ involved. The millions and millions of sibility to do to acquire a water right, fees, long, dragged-out court cases. dollars our taxpayers have had to pay they are extorting, as the Senator from What we see is a real danger to solid, in attorneys fees to get an existing per- Colorado said, by arguing that you can- reliable municipal planning. mit renewed without any change is not continue—we will not renew your I want to assure the distinguished outrageous. permit or you cannot gain this right- Senator from Vermont I want to work So I make that offer to the Senator. of-way or continued access unless you with him, and I will be happy to do I hope very much that if there are im- do this. And in almost all instances, it that between now and the time the provements or suggestions he has for gives up some of the water, even votes come up later this morning. me, he would bring them forth. But I though that is not the responsibility of Mr. President, I yield back the bal- hope he would join me in supporting the Federal Government in the West, ance of my time. this measure. and historically it has never been. Mr. LUGAR addressed the Chair. I yield 2 minutes to the Senator from I know that is an issue that is being The PRESIDING OFFICER. The Sen- Idaho at this point. fought by many, but it is an issue that ator from Indiana. Mr. LEAHY. Mr. President, before Western States will simply not give up, Mr. LUGAR. I am authorized by the the Senator does that, would the Sen- nor should they. They must retain pri- distinguished Senator from Vermont to ator yield to me on my time for just a macy on water. yield back all time on his side of the response? While I have found, in all instances, amendment. Mr. BROWN. Yes. cities and irrigation districts and oth- Is there further debate by the distin- Mr. LEAHY. Mr. President, obviously ers willing to comply in the moderniza- guished Senator from Colorado? my concern is, as I stated, that I do not tion and in the safety codes of their fa- Mr. BROWN. I thank the distin- want to see a major change in the mul- cilities, this is not an issue about safe- guished chairman. I have no other re- tiple-use Forest Service law on an ty, it is not an issue about the environ- quests for time. I believe that the Sen- amendment within a forum of this na- ment; it is an issue about water, power, ator from Vermont indicated that at ture. I would also say to the Senator the power of holding the water or con- the appropriate point he was going to from Colorado, this is a matter that I trolling it. yield back. first heard of I think about 11:30 last So what the Senator from Colorado is Mr. LUGAR. He has indeed. I am pre- night. I know he is aware of that. I doing, in my opinion, is exactly right. pared to do that. think most of us heard of this amend- It is a reinstatement, not an expansion, Mr. BROWN. Mr. President, I yield ment at about 11:30 last night. of law, a reinstatement of the existing back my time. As you know, I have been fairly ac- law and the way it has operated and The PRESIDING OFFICER. All time tive in the negotiations on the bill. provided the municipalities of the has been yielded back on the amend- This was not the first item that I was West, provided the irrigation districts ment. looking at. It is going to be some time that have allowed the arid West to Mr. LUGAR. Mr. President, I ask before we actually have a vote. It will flourish, the kind of position and con- unanimous consent that the Brown be after 11 o’clock, in any event. Be- trol in the water that we think is criti- amendment be temporarily set aside, tween now and then, I will meet with cally necessary. with a vote to occur on or in relation the Senator from Colorado. We will dis- I strongly support my colleague and to the amendment at a time set by the cuss it further. hope that the Senate will concur with majority leader after consultation with Mr. BROWN. I appreciate very much him in this amendment. And I hope, the Democratic leader. For a matter of the Senator’s willingness to review Mr. President, that if at all possible, information, that would come after the this. we could work this out and take this Kohl amendment that we considered I yield 3 minutes to the Senator from amendment. I think it fits very nicely earlier. Idaho. into existing law. The PRESIDING OFFICER. Without The PRESIDING OFFICER. The Sen- Mr. BROWN addressed the Chair. objection, it is so ordered. ator from Idaho. The PRESIDING OFFICER. The Sen- Mr. LUGAR. I thank the Chair. Mr. CRAIG. Mr. President, I thank ator from Colorado. AMENDMENT NO. 3444 TO AMENDMENT NO. 3184 my colleague from Colorado for yield- Mr. BROWN. Mr. President, I ask (Purpose: To improve the bill.) ing. Members of the Chamber to think how Mr. LUGAR. Mr. President, I send an If I could have the attention of the they would feel if they represented amendment to the desk and ask for its ranking member of the committee, the California and the Federal Government immediate consideration. Senator from Vermont. I would like to said that the drinking supply crosses The PRESIDING OFFICER. The express to him that I have been in- the Federal highway and goes into San clerk will report. volved with the Senator from Colorado Francisco, and we are going to cut off The legislative clerk read as follows: for well over 2 years as he fought this the water for San Francisco. I do not The Senator from Indiana [Mr. LUGAR] pro- battle, and chairing the subcommittee think any reasonable person in this poses an amendment numbered 3444 to that deals with forestry, we have taken Chamber would think that made sense. amendment No. 3184. a close look at the amendment and the How would they feel if they rep- Mr. LUGAR. Mr. President, I ask problems involved. resented New York City and the Fed- unanimous consent that further read- What has happened in the West his- eral Government said, ‘‘Your water ing of the amendment be dispensed torically—and I think the Senator line crosses over a Federal property with. from Vermont appreciates this—while and naval base that the Federal Gov- The PRESIDING OFFICER. Without the watersheds, largely the head wa- ernment owns, and as a condition of objection, it is so ordered. ters, were owned or retained by the being able to continue to cross that (The text of the amendment is print- Federal Government, the right of water ground, we are going to take a third of ed in today’s RECORD under ‘‘Amend- acquisition and water management and your drinking water’’? I do not think ments Submitted.’’) control was given to the States. And, there is a Member of this Chamber who Mr. LUGAR. Mr. President, I yield to of course, municipalities and irrigation would think that made sense. myself such time as I may require on districts went into those head waters That is literally what we face here. this amendment. and developed facilities under the per- We face a bureaucrat at the regional I rise to offer an amendment to the mits of the Forest Service and the forestry level that has made up their Agriculture Reform and Improvement McCarran Act. That established the own law and provided conditions that Act of 1996. In July 1995, the Agri- water systems of the West. the statute does not call for. The only culture Committee gave preliminary, In many situations we find Federal way we can deal with it is to make this but unanimous, approval to four titles agencies, for whatever reasons, saying, very clear that this clarifies existing of the farm bill. They covered farm ‘‘To get reissuance of your permits, law. It does not change it. credit, trade, rural development, and February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1013 research. Since then, there has been ducer gains from the sale of additional pea- 1986, direct payment to production ag- further bipartisan work on a mis- nuts to be used to offset quota pool losses; (2) riculture in this country from Govern- cellaneous title and an agriculture pro- reduce the quota loan rate 5% for producers ment programs has been reduced by motion title. I present the fruits of that refuse a bona fide offer from a handler this Congress by 60 percent. So we have at the quota loan rate and instead opt to continually, over the period of now a those labors to the Chamber today. place their peanuts under loan; and (3) pro- The Government’s role in agricul- hibit government entities and out-of-state decade, progressively reduced the tural lending is substantial. This non-farmers from holding quota. amount of money on a program-by-pro- amendment provides direction to 5. Make a technical change to ensure the gram basis that was going to produc- USDA to focus on helping beginning continuation of current treatment for fruit tion agriculture for one reason or an- farmers and ranchers to get started and vegetable crops double-cropped on con- other. In almost all instances, I have and progress in farming and ranching. tract acres. agreed with that and voted for it. I 6. Include titles of the farm bill earlier The amendment emphasizes that the think agriculture today is stronger be- agreed to by the Agriculture Committee, in- cause of it, because they have progres- USDA’s assistance is temporary, and, cluding provisions on trade, research, credit, most importantly, it modifies or ends a rural development, promotion and mis- sively moved to farm to the market in- variety of risky farm loan policies cellaneous items. stead of to the program. That is part of which the committee considered during 7. Restore a previously-stricken authoriza- the debate today and part of the con- hearings this year. tion for ethanol research. sideration in the farm legislation we 8. Allow 20% of available funding from have before us. The amendment will expand and commodity purchases in the Commodity maintain our presence in overseas mar- But my point is that it made it in- Supplemental Food Program to be perma- creasingly difficult for the chairman, kets for high-value and bulk commod- nently carried over for administrative pur- myself, and other members of the Agri- ities. It establishes measurable bench- poses. culture Committee to deal with the im- marks to evaluate U.S. export perform- 9. Authorize a Wildlife Habitat Incentives portant issues of the day. But, I must ance programs, including dollar value Program to promote implementation of var- ious management practices to improve habi- tell you, I think we accomplished that. and market share growth goals. In ad- Not only did we accomplish that, but I dition, increased flexibility in the oper- tat, utilizing $10 million in Conservation Re- serve Program funding, and make other have worked in cooperation with the ation of export credit programs will changes to conservation programs. chairman, the committee, and commit- allow us to seize future opportunities. 10. Make technical changes in Leahy sub- tee staff in developing what I think is We know that all leadership is local. stitute language authorizing land purchases an excellent bill. Rural businesses and communities can- in the Florida Everglades. Now, the en bloc amendment the 11. Clarify disqualification of food stores not sustain themselves without first Senator has just introduced is a very taking a hard look at the human cap- when knowingly employing Food Stamp traf- fickers. positive approach in many areas. It ital and resources at their disposal. 12. Reauthorize an existing fluid milk pro- looks at foreign market development This amendment provides for a new motion program. in a line-item authorization. We all rural program delivery mechanism 13. Provide a specific authorization for the know that, because of the tremendous that depends on local and State leader- existing Foreign Market Development Co- efficiencies of American agriculture ship and consolidates over a dozen du- operator program. today, if we are going to hold those plicate programs. 14. Allow USDA to make adjustments in contract acres (for purposes of the Agricul- prices in the marketplace, we have to The amendment also address the tural Market Transition Program) if nec- move a lot of that production to the vital role that agricultural research, essary to provide equitable treatment for be- world market. The chairman is tremen- extension, and education play in ensur- ginning farmers. dously sensitive to that, and these ing a productive, efficient and competi- 15. Clarify definition of ‘‘statewide’’ cov- amendments reflect that. tive agricultural sector in our Nation. erage under the USDA’s Television Broad- I have worked for some time to Research is the foundation for agri- casting Demonstration Grant program. strengthen the ability of alternative culture’s future success. 16. Authorize grants for water and wastewater systems in rural and native vil- crops in the region of the Pacific I urge my colleagues to support this lages in Alaska. Northwest and in the State of Idaho amendment which will bring agricul- 17. Provide for a reduced application proc- and in surrounding States. One of those tural policy into the 21st century. ess for the Indian Reservation Extension alternative crops is an oilseed crop Mr. President, this amendment also Agent program and for equitable participa- known as canola. Many in agriculture contains a number of miscellaneous tion in USDA programs by tribally-con- are familiar with it. It is a new crop for provisions supported by various Sen- trolled colleges. our region. I have worked with that in- ators. We are not aware that these are Mr. LUGAR. Mr. President, I know of dustry to provide a checkoff, much like controversial. Among them are provi- no opposition to these provisions. As the dairy industry has, the beef indus- sions to set oilseed loan rates accord- the Chair may interpret correctly, this try has, and other industries have, so ing to a market-based formula, pro- is an attempt to provide in this bill that they can use their own money to posed by Senator MOSELEY-BRAUN; to amendments that have been offered by promote their own programs, to pro- provide equitable treatment for begin- many Senators that have been cleared mote their sales internationally, to do ning farmers under the Agricultural on both sides of the aisle. I will yield to research for the development of a bet- Market Transition Program, proposed any Senator who may have comments. ter crop and better alternatives or va- by Senator PRESSLER; and numerous I yield to the distinguished Senator rieties. That is included in this en bloc other amendments. I ask unanimous from Idaho. amendment, along with an important consent that a description of these pro- The PRESIDING OFFICER (Mr. amendment for the sheep industry’s visions be printed in the RECORD. INHOFE). The Senator from Idaho is rec- improvement center. We know that the There being no objection, the mate- ognized. domestic sheep industry today is strug- rial was ordered to be printed in the Mr. CRAIG. I thank the Senator for gling to stay alive. They need to look RECORD, as follows: yielding. I thank the chairman publicly at alternative methods for marketing The Lugar amendment will: for the work he has done on behalf of and general improvement of the live- 1. Correct a typographical error in the farm legislation this year, the exten- stock of that industry. That has been a Leahy substitute. sive hearings on almost all of the titles consideration by the chairman, and I 2. Establish oilseed loan rates under a for- of the farm bill, working them out in a greatly appreciate that. mula similar to that used for wheat and feed very intricate way, under some very I hope the Senate can agree on this grains, at 85% of a five-year olympic average difficult circumstances—circumstances en bloc amendment. I think it com- of market prices within a range of $4.92 to from a Budget Committee that said to plements the legislation that is before $5.26. the chairman and to the Agriculture us today, rounds it out into what is a 3. Make a technical change to haying and grazing rules that will allow current prac- Committee that we had to find sub- positive farm bill, I think, for Amer- tices to continue with respect to grazing on stantial savings in agricultural appro- ican agriculture. I thank the chairman wheat stubble. priations. very much for the work he has done in 4. Make three changes in the peanut provi- I say that, Mr. President, in light of this area and the cooperation he has of- sions of the Leahy substitute: (1) Allow pro- what we have done since 1986. Since fered us. S 1014 CONGRESSIONAL RECORD — SENATE February 7, 1996 Mr. LUGAR. Mr. President, I suggest I think it would be a very serious mis- are offered to the program that we the absence of a quorum. take. We should stay here, get the job have worked very closely on to de- The PRESIDING OFFICER. The done, before we think about moving velop. clerk will call the roll. any further down the line. MODIFICATION OF AMENDMENT NO. 3184 The legislative clerk proceeded to My final comment, Mr. President, Mr. CRAIG. Mr. President, I ask call the roll. this morning I think there is going to unanimous consent that I be recog- Mr. BREAUX. Mr. President, I ask be an amendment dealing with the nized to modify amendment 3184 with unanimous consent that the order for sugar program. We fought this fight for permanent law provisions and, once the quorum call be rescinded. years and years and years. It is the that modification has been made, no The PRESIDING OFFICER. Without only program that operates at no net amendments be in order to strike the objection, it is so ordered. cost to the taxpayers of America, but permanent law modification during the Mr. BREAUX. Is it appropriate to ensures a stable and dependable supply pending action on S. 1541. make comments, I ask the distin- of sugar to the consumers of this coun- The PRESIDING OFFICER. The Sen- guished chairman? try. There are some large industrial ator has the right to modify without Mr. LUGAR. I respond to the distin- users that would probably like to get unanimous consent. guished Senator from Louisiana that their sugar for free. I can understand Mr. CRAIG. With that, I send that we are discussing the Lugar amend- that, but it does not certainly serve modification to the desk. ment, and as in each of these amend- the needs of the overall farm policy in The PRESIDING OFFICER. The un- ments, there is 15 minutes to each side. this country. derlying amendment is so modified. I control the time on our side. It is cer- Our plan that is in this legislation is The modification follows: tainly appropriate if the Senator wish- a dependable, stable program. Again, it On page 1–1, line 12, strike ‘‘amendment es to use the time. operates at no net cost. It guarantees made by section 110(b)(2)’’ and insert ‘‘sus- The PRESIDING OFFICER. The when additional sugar from foreign pension under section 110(b)(1)(J)’’. Chair recognizes the Senator from Lou- sources is needed that it can come into On page 1–1, line 20, strike ‘‘amendment isiana. There are 7 minutes remaining made by section 110(b)(2)’’ and insert ‘‘sus- this country to meet the needs of our pension under section 110(b)(1)(J)’’. on your side. domestic producers, suppliers and re- On page 1–1, line 22, strike ‘‘amendment Mr. LUGAR. The Lugar amendment finers in this country. It has worked made by section 110(b)(2)’’ and insert ‘‘sus- is pending. well. ‘‘If it ain’t broke, don’t fix it,’’ pension under section 110(b)(1)(J)’’. Mr. BREAUX. I will just be brief in has been said so many times before in On page 1–2, line 12, strike ‘‘amendment my comments. I guess time is running, different context. It certainly fits very made by section 110(b)(2)’’ and insert ‘‘sus- so if no other Democrat is here, I will well in this current situation. We have pension under section 110(b)(1)(J)’’. make comments. On page 1–11, lines 1 and 2, strike ‘‘(as in ef- a program that works. Is it perfect? Of fect prior to the amendment made by section Mr. President and Members and, real- course not. But it works, it is solid, it 110(b)(2))’’. ly, indeed, everyone who is concerned is stable. I have never, I think, ever, re- On page 1–41, lines 14 and 15, strike ‘‘and about the farm situation in this coun- ceived any letter from consumers or the Agricultural Adjustment Act of 1938 (7 try must be wondering whether the housewives complaining about the U.S.C. 1281 et seq.)’’. Congress will have the ability to get price of sugar. On page 1–42, lines 13 and 14, strike ‘‘or the the job done. Here we are in February, People know that it has been a de- Agricultural Adjustment Act of 1938 (7 U.S.C. and people in the Deep South, and Lou- 1281 et seq.)’’. pendable price. It has always been On page 1–42, lines 21 and 24, strike ‘‘or the isiana in particular, my farmers, are there. We have had some foreign sugar Agricultural Adjustment Act of 1938 (7 U.S.C. wondering what is going to happen this come in when it is necessary. Yet the 1281 et seq.)’’. year. They have their implements suppliers and domestic producers in On page 1–43, lines 10 and 11, strike ‘‘or the being prepared, the combines, the trac- this country have been able to survive Agricultural Adjustment Act of 1938’’. tors, the irrigation systems they are under difficult circumstances. On page 1–43, lines 14 and 15, strike ‘‘or the concerned about putting into place, We have a situation, I understand, in Agricultural Adjustment Act of 1938’’. and they are wondering while they are On page 1–50, lines 20 and 21, strike ‘‘sec- Florida that has brought about some tion 411 of the Agricultural Adjustment Act working on the equipment what in the concern. This bill addresses it in a way of 1938’’ and insert ‘‘section 104(i)(1)’’. world is the program they will operate that I think the Members of the Senate On page 1–53, line 15, insert ‘‘that was pro- under for 1996. from Florida who are very attentive to duced outside the State’’ before the period. I think it is extremely important the needs of their States have sup- On page 1–73, strike lines 6 through 8. that the Congress move expeditiously ported, and strongly support. On page 1–73, line 9, strike ‘‘(i)’’ and insert on this legislation. We should have I conclude by urging that any amend- ‘‘(h)’’. done it last year. I have been in Con- Beginning on page 1–76, strike line 1 and ments dealing with sugar in this area all that follows through page 1–78, line 4, and gress for 20 some-odd years, almost 24 to eliminate the program be eliminated insert the following: now, and we have always had farm bills as an amendment because we have SEC. 110. SUSPENSION AND REPEAL OF PERMA- done the year before. Generally, farm- something that works. We should keep NENT AUTHORITIES. ers had to be in the field deciding what it that way. I yield the floor. (a) AGRICULTURAL ADJUSTMENT ACT OF to do. Mr. CRAIG. Mr. President, let me 1938.— I think we are late. Farmers cannot thank my colleague from Louisiana. (1) IN GENERAL.—The following provisions be late in their planning. Congress We serve jointly as cochairs of the of the Agricultural Adjustment Act of 1938 should not be late in tending to our Sweetener Caucus here on the Senate shall not be applicable to the 1996 through 2002 crops: business, the business of passing a farm side and work cooperatively together (A) Parts II through V of subtitle B of title bill of substance. to solve the problems that this indus- III (7 U.S.C. 1326–1351). I hope we can conclude action today. try has had. I think we have accom- (B) Subsections (a) through (j) of section There will be a number of amendments plished that over the years, both in 358 (7 U.S.C. 1358). and I think some may improve the leg- cane and sugar beet production, criti- (C) Subsections (a) through (h) of section islation; some, I think, may do damage cal crops to the South, certainly to my 358a (7 U.S.C. 1358a). (D) Subsections (a), (b), (d), and (e) of sec- to the legislation. It is so critically im- State and other States in the West and tion 358d (7 U.S.C. 1359). portant that we get a bill in place so Midwest. (E) Part VII of subtitle B of title III (7 that the farmers in this country could What is important, as the Senator U.S.C. 1359aa–1359jj). know what to do, when to do it, and has spoken to, is creating a balance (F) In the case of peanuts, part I of subtitle under what economic terms and condi- that offers stability to a program and C of title III (7 U.S.C. 1361–1368). tions they are going to have to operate. at a reasonable cost to consumers. It is (G) In the case of upland cotton, section I think it would be insane for Mem- not just a good program in Idaho for 377 (7 U.S.C. 1377). (H) Subtitle D of title III (7 U.S.C. 1379a– bers of the Senate to leave Washington, Idaho agriculture, but it employs a tre- 1379j). DC, to take a vacation back in our re- mendous number of people and provides (I) Title IV (7 U.S.C. 1401–1407). spective States or anywhere else while a necessary and important commodity. (2) REPORTS AND RECORDS.—Effective only this pending business is not completed. I will discuss this later if amendments for the 1996 through 2002 crops of peanuts, February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1015 the first sentence of section 373(a) of the Ag- Mr. LUGAR. The Lugar amendment I am sorry, this process smells to ricultural Adjustment Act of 1938 (7 U.S.C. is the pending business; as in each case, high heaven. I have some amendments 1373(a)) is amended by inserting before ‘‘all 15 minutes to a side. We are still on I am going to be offering, but I want to brokers and dealers in peanuts’’ the follow- that amendment, and we anticipate make the record very clear I object to ing: ‘‘all producers engaged in the production within a few minutes there may be of peanuts,’’. the way this bill is being pushed (b) AGRICULTURAL ACT OF 1949.— clearance on the Democratic side for through, the way we are being choked (1) SUSPENSIONS.—The following provisions the Lugar amendment, in which case it off and strangled in this process. The of the Agricultural Act of 1949 shall not be will be accepted and we will move on. Senate deserves better. applicable to the 1996 through 2002 crops: The distinguished Senator from Iowa The PRESIDING OFFICER. Who (A) Section 101 (7 U.S.C. 1441). will be recognized to offer his amend- yields time? The Senator from Indiana. (B) Section 103(a) (7 U.S.C. 1444(a)). ment. Mr. LUGAR. Mr. President, I ask (C) Section 105 (7 U.S.C. 1444b). Mr. HARKIN. I see. I did not under- unanimous consent the Lugar amend- (D) Section 107 (7 U.S.C. 1445a). stand the process under which we were ment be temporarily set aside. (E) Section 110 (7 U.S.C. 1445e). operating. I was not privy to those de- (F) Section 112 (7 U.S.C. 1445g). liberations that went on late last The PRESIDING OFFICER. Without (G) Section 115 (7 U.S.C. 1445k). objection, it is so ordered. (H) Title III (7 U.S.C. 1447–1449). night. (I) Title IV (7 U.S.C. 1421–1433d), other than Mr. President, let me say I do not Mr. LUGAR. Mr. President, the floor sections 404, 406, 412, 416, and 427 (7 U.S.C. even know what the Lugar amendment is now open. In fact an amendment 1424, 1426, 1429, 1431, and 1433f). is, right now. It is probably OK. I just from the Democratic side would be in (J) Title V (7 U.S.C. 1461–1469). want to take at least a couple of min- order. (K) Title VI (7 U.S.C. 1471–1471j). utes—I guess I have the floor—to raise AMENDMENT NO. 3445 TO AMENDMENT NO. 3184 (2) REPEALS.—The following provisions of my voice in protest against this proc- (Purpose: To strike the section relating to the Agricultural Act of 1949 are repealed: ess we are now undertaking. the Commodity Credit Corporation inter- (A) Section 103B (7 U.S.C. 1444–2). Agricultural legislation is serious (B) Section 108B (7 U.S.C. 1445c–3). est rate and continue the farmer owned re- business. It not only affects the farm- (C) Section 113 (7 U.S.C. 1445h). serve) ers in my home State and farmers and (D) Section 114(b) (7 U.S.C. 1445j(b)). Mr. HARKIN. Mr. President, I send ranchers all across the country, it af- (E) Sections 205, 206, and 207 (7 U.S.C. 1446f, an amendment to the desk. 1446g, and 1446h). fects consumers and affects people who The PRESIDING OFFICER. The (F) Section 406 (7 U.S.C. 1426). live in small towns in rural areas. (c) SUSPENSION OF CERTAIN QUOTA PROVI- I have been here 22 years. I have been clerk will report. SIONS.—The joint resolution entitled ‘‘A on the Ag Committee that long, 10 in The bill clerk read as follows: joint resolution relating to corn and wheat the House and now 12 in the Senate. I The Senator from Iowa [Mr. HARKIN] pro- marketing quotas under the Agricultural Ad- have been through a lot of farm bills. I poses an amendment numbered 3445 to justment Act of 1938, as amended’’, approved have never seen such an obscene proc- amendment No. 3184. May 26, 1941 (7 U.S.C. 1330 and 1340), shall not ess as what we are going through right be applicable to the crops of wheat planted Mr. HARKIN. Mr. President, I ask now, and I use the word with its full for harvest in the calendar years 1996 unanimous consent that reading of the through 2002. import and meaning, ‘‘obscene.’’ amendment be dispensed with. The fact that we have before us a 7- Mr. CRAIG. Mr. President, I yield the year farm bill—I do not mind debating The PRESIDING OFFICER. Without floor. the farm bill and offering amendments objection, it is so ordered. AMENDMENT NO. 3444 and whatever comes out of this body, The amendment is as follows: The PRESIDING OFFICER. Who fine. That is the will of the body to do (1) Strike section 505 and insert: ‘‘Notwith- yields time? The Senator from Iowa? that. But, to be choked by a process standing the provisions of section 110, the Mr. HARKIN. Mr. President, par- that only allows several hours of de- Secretary shall carry out the Farmer Owned liamentary inquiry. I understand we bate, that only allows 10 amendments Reserve program in accordance of with sec- are now on amendment No. 3184, pro- on this side, allows 5 amendments on tion 110 of the Agricultural Act of 1949 (7 posed by Mr. LEAHY, as modified by the that side; that only allows a half-hour U.S.C. 1421 et seq.) as it existed prior to the amendment just sent to the desk by evenly divided for any amendment— enactment of this Act.’’ Mr. CRAIG? what kind of deliberative process is Mr. HARKIN. Mr. President, my The PRESIDING OFFICER. Amend- this? Is this the U.S. Senate? Or is this amendment would do two things. First ment No. 3444, the Lugar amendment, some Third World dictatorship, where of all, it strikes section 505. What is is still pending. somebody is trying to cram something section 505? Section 505—believe it or Mr. HARKIN. Mr. President, I will be through? not, I know this is going to come as a sending an amendment to the desk. Is I just want to say I protest to the ut- shock to you, Mr. President, and others the bill open for amendment at this most what we are doing here and how who may not have been privy to what point? we are doing it today. Farm legislation is in this so-called farm bill—section The PRESIDING OFFICER. It is not. deserves more than 7 hours. We can 505 raises interest rates that the Com- Mr. HARKIN. The bill is not open for spend 2 weeks on a telecommunications modity Credit Corporation charges amendment. Will the Chair advise the bill, or longer. I do not know how long farmers. Under current law, the USDA Senator when the bill is open for it took. We can spend days and days de- charges farmers interest on commodity amendment? bating other things. But for perhaps loans at a rate based on the costs of Mr. LUGAR. Will the Senator yield? the most important thing for farmers money to the CCC, the Commodity Mr. HARKIN. I will be delighted to and ranchers and rural people, what do Credit Corporation. It is a Treasury- yield when I can figure out what is we get, 8 hours, 7 hours, to debate and based rate. This is the way it always going on around this place. amend and try to fashion a bill? has been. S 1016 CONGRESSIONAL RECORD — SENATE February 7, 1996 But the bill and the Leahy-Lugar or time. That is something called the that farmer wants to. That was the Lugar-Leahy amendment would in- farmer-owned reserve. That is the sec- whole idea behind the farmer-owned re- crease the interest rate on commodity ond part of my amendment. That is to serve. It had broad bipartisan support. loans by 100 basis points above the reinstate and restore the farmer-owned Check the record. I am right. Repub- rate, as calculated under the formula reserve, which is eliminated in this bill licans and Democrats across the board in effect on October 1, 1989. and in the Lugar-Leahy amendment. supported the institution of the farm- There is simply no justification for The farmer-owned reserve again er-owned reserve. There is no reason to hiking the interest on farmers above a helps farmers store crops in times of do away with it. level representing the cost of funds to surplus when prices are low. It allevi- Yet, this bill, and the Lugar-Leahy USDA. This bill, as drafted, would con- ates the glut on the market. It helps amendment, does away with the farm- stitute usury against farmers. It is un- farmers await opportunities for better er-owned reserve. My amendment sim- reasonable. Here we have the Fed fi- prices. It is a marketing tool for farm- ply reinstates it as it was. My amend- nally, I think, coming to its senses, I ers. The farmer-owned reserve also pro- ment does not include an offset because hope, in starting to reduce interest tects consumers because it helps to the bill is well below the Congressional rates. They never should have hiked hold grain grown in good times in re- Budget Office baseline. The amend- them in the first place over the last serve so that drought or other natural ment would only constitute a continu- couple of years. Yet, on the other hand, disasters will not drive prices to ex- ation of the farmer-owned reserve as it we are going to charge more interest to tremely high levels. was in the 1990 farm bill. It would not farmers. The availability of grain in reserve is result in spending on the farmer-owned I wonder how many farmers know also important in bringing a little sta- reserve above a baseline level. that. I wonder how many farmers know bility to both grain and livestock sec- So, again, Mr. President, my amend- that in this bill their interest charges tors. The reserve helps to keep grain ment does two things to help farmers are going to go up 100 basis points, for prices from going as high as they and consumers. One, it knocks out the no reason. There is no reason for it. might otherwise. It helps prevent the provision of the bill that raises interest The Treasury rates are going down, not liquidation of livestock herds in teams rates to farmers. going up. These commodity loans are of short feed reduction. The liquidation I see the chairman is here. Perhaps among the most effective and cost-ef- of these herds eventually leads to high- we can have some discussion. I do not fective of all farm programs because er meat prices at a later point for con- know why we are raising interest rates they do allow farmers to market their sumers. to farmers 1 percent when the Fed is grain in a more orderly fashion. It The Food and Agricultural Policy already starting to lower interest rates helps them obtain funds to pay their Research Institute at the University of and Treasury rates are going down. expenses using their commodity as a Missouri and Iowa State University es- There is no reason for that. collateral while improving their oppor- timated that substantial stocks that So the first part of my amendment tunity to take advantage of higher we held on hand going into the 1988 knocks that out and leaves interest prices that usually occur after a har- drought prevented some $40 billion in rates on CCC loans at cost of money. vest. extra food costs to consumers mostly The second part of my amendment So maybe that is the reason they are in keeping the meat prices from going reinstates the farmer-owned reserve. raising the interest rates to farmers. sharply higher. So the farmer-owned I reserve whatever remainder of time Maybe they will not be able to keep reserve bill is good for the grain farm- I might have. their grain and they will have to dump er, has allowed that grain farmer to Mr. President, how much time do I it at harvest time when prices are low. market the grain when he wants, and it have remaining? That is OK for the grain dealers, OK for is a marketing tool. The PRESIDING OFFICER. Six min- the processors—bad deal for farmers. Second, it is good for livestock pro- utes and forty seconds remain. These loans also help alleviate the ducers because in times of short pro- Mr. HARKIN. I thank the Chair. stress and overloading on transpor- duction or over demand, it keeps their Mr. LUGAR. Mr. President, I yield tation and marketing channels during prices from spiking up, which may myself as much time as I require on the harvest season. cause them to liquidate their herds. this side. Mr. President, there is simply no rea- They do not have the luxury of not The PRESIDING OFFICER. The Sen- son for USDA to make money from feeding their cattle for a long period of ator from Indiana. farmers using this program by charg- time and waiting until the prices go Mr. LUGAR. Mr. President, two ele- ing interest rates exceeding the cost of down. A lot of herds are liquidated be- ments of the amendment offered by the money to USDA. So my amendment cause of the sharp spikes in prices. distinguished Senator from Iowa are would simply retain current law. Be- The other thing is, if we get a glut in costly provisions. I think Senators cause it would simply retain current the price, they go way down. A lot of need to understand that there are ex- law, there would be no cost relative to livestock people put on more animals, penses attached which the taxpayers baseline for the amendment. As for the and that leads to great fluctuations in would have if the amendments were to cost of the overall bill relative to base- the livestock market. be adopted. Specifically, the Harkin line, adding the cost of this amend- So the farmer-owned reserve bill pro- amendment as it deals with CCC cred- ment would still leave the cost of the vides stability, a marketing tool for its and the 100-basis-point increase, bill well below CBO baselines. grain farmers, some stability in protec- which the pending legislation would Mr. President, that is the first part tion for our livestock producers, and it provide in the CCC interest rates, if of my amendment, to strike that sec- provides a great deal of protection for that were stricken, this would cost the tion that raises interest rates to farm- our consumers. Who knows when we taxpayers $260 million. So it is a sig- ers, leave it as under current law that will have the next drought or the next nificant item. is the cost of money to the Govern- flood? Who knows what crop conditions The point made by the distinguished ment. are going to be like next year with Senator is, why should interest rates As I said, these commodity loans global warming and everything else for farmers be increased as represented help farmers market their grain in an that is going on and the crazy winter by the CCC interest rates? And the fun- orderly fashion. They can hold their weather? Who knows? It is in our best damental answer is that these rates are grain and market it when prices are interest to ensure that we have a farm- well below commercial rates. In es- higher. It leaves the farmer more in er-owned reserve. sence, as the Agriculture Committee charge of when he wants to market it I remember when the farmer-owned dealt with this problem, we have tried rather than when he has to dump it to reserve came into existence. I remem- to bring some equity among farmers, pay his bills. ber the debate at that time. The farmer business people, and those who are in- But there is another important tool ought to keep the grain, not the proc- volved in commerce generally in Amer- that farmers use in order to maximize essors, not the shippers, not the ele- ica. And the elimination of the 100- their income and to ensure that they vators. The farmers ought to have con- basis-point advantage likewise was a can sell their grain at the appropriate trol over that grain and sell it when very important saving at the time that February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1017 we were all considering the balanced (1) Strike section 505. grain, yes, they could hold it over. But budget amendment that was vetoed ul- Mr. HARKIN. Mr. President, the now that farmers have it, they can timately by President Clinton. modification I sent to the desk was market that grain whenever they want, I hope that simply because the Presi- simply to strike the provision on the and that is the way it ought to be. It is dent has vetoed this particular budget, farmer-owned reserve and that leaves a marketing tool for farmers, not even as the President and congres- the amendment to strike section 505, something that depresses the market. sional leadership are still hard at work which is striking that portion of the The 7-year cost of this amendment is as far as we know attempting to find a bill that raises the interest rates to $81 million, which still keeps the bill balanced budget in 7 years, that we farmers. well within CBO’s baseline. So I did not would not abandon all of the thoughts I will have another amendment that need an offset for that. that we had that were very important I wish to send to the desk that would So there are no pay-go problems rel- with regard to balancing the budget. reinstate the farmer-owned reserve. I ative to the baseline here. The bill now This is a $260 million item. ask the chairman if I can do that now, saves $784 million against the Decem- Mr. President, the second part of the or do I have to wait for another time? ber 1995 CBO baseline. It saves about $8 Harkin amendment would restore the These are two separate issues, and I billion against the February 1995 base- farmer-owned grain reserve which pays did not mean to get them together in line, so there is room in the budget for farmers 261⁄2 cents a bushel for storing one bill. So now I have an amendment these amendments. grain. I would simply point out that at the desk that simply strikes that So this first amendment on the Com- restoration of this farmer-owned re- section which raises the interest rates. modity Credit Corporation will cost serve will also be a costly item—in this I wish to also offer the amendment to farmers $260 million. That is what it case, $100 million of additional expense reinstate the farmer-owned reserve. will do if we leave it in there. If we to taxpayers in this country. Mr. LUGAR. Mr. President, if I may take it out, it is not going to cost the Furthermore, I would simply say as a raise a question of the distinguished Government and it is well within the farmer who has adequate storage ca- Senator, he wishes to separate the two baseline. These increased interest rates pacity on my farm, and well aware of issues? on farmers are a tax on farmers. Make how the farmer-reserve plan worked in Mr. HARKIN. Yes. no mistake about it; it is an additional the past, that I do not think it is a Mr. LUGAR. In two amendments? tax on farmers. I think it is usurious, very good idea. I say this as a farmer, Mr. HARKIN. Yes. and I hope we can get this stricken so not as somebody coming in from the Mr. LUGAR. I have no objection. the farmers do not have to pay in- outside offering advice to farmers. Mr. HARKIN. Could I send the other creased interest rates when it is not The truth of the matter is, so long as amendment to the desk? even warranted by anything happening we had the farmer-owned reserve we I thank the chairman. in the marketplace. had an enormous overhang of grain on The PRESIDING OFFICER. The Mr. LUGAR addressed the Chair. markets. Those of us who looked to the Chair would suggest that until the first The PRESIDING OFFICER. The Sen- markets to give signals for our market- amendment is set aside, a second ator from Indiana. ing plans always had to take into con- amendment would not be in order. Mr. LUGAR. Mr. President, I will sideration hoards of grain—hundreds of Mr. HARKIN. I appreciate that, Mr. just respond briefly to the distinguish millions of bushels held out there that President. Senator’s argument. Obviously, we are could depress markets strangely and Mr. President, I will just take what not imposing a tax on farmers. A farm- sometimes almost capriciously. remaining time I have to respond to er wishing to borrow money does that The thought was suggested this the distinguished chairman’s com- as a citizen, a voluntary act. The ques- morning that this farmer-owned re- ments on the Commodity Credit Cor- tion is whether that loan ought to be serve gave some solace to consumers. poration. He said it would cost $260 subsidized by all the rest of the tax- But it is really quite to the contrary, million—that is true—over 7 years, a payers, people in various other busi- Mr. President. It has led to fits and very small price to pay for ensuring nesses all over the country. To some starts with regard to marketing plans that farmers are not charged higher in- extent it is now subsidized, and the leg- for farmers that finally we got rid of terest rates that are not even war- islation that the distinguished Senator all of this grain, and the farmer-owned ranted. from Idaho and I introduced eliminates reserve was finally depleted. It is gone. Now, when you say that it costs 100 basis points of the subsidy. It brings It is no longer a hanging sword over money, it does not really cost money. the loan rate for farmers closer to that the market price. It just adds to what is in the present of commercial loans in our country, I would like to leave it that way, Mr. bill because the present bill raises in- some basic fairness really with all bor- President. I think that is the desirable terest rates. So if you take that out, rowers. That is the issue. policy. In fact, the Senator’s amend- you are saying it costs money. Now, if we offer a subsidy to farmers, ment does two unfortunate things: It No, it does not. This is sort of a shell I have pointed out it will cost tax- would reestablish bad policy, and game. It does not really cost money. It payers and other borrowers $260 mil- charge the taxpayers of the country only costs money because by the bill lion. That has no relationship whatever $100 million for that dubious privilege. raising interest rates to farmers, the to baseline or budget or what have you. Mr. President, the arguments are Government is going to make some It is just a cost of the subsidy. starkly simple. I will not embellish money. In the agriculture legislation we pro- them further—$260 million more cost if Well, I do not think the Government vided this year, we have tried to bring you strike the 100-point interest dif- ought to be making money off of farm- about more equity among farmers and ferential and $100 million more cost if ers by charging them another percent other taxpayers in the country. I be- you restore the farmer-owned reserve interest rate on commodity credit lieve the savings involved are substan- situation. In both cases, I think they loans. So let us not get caught up in tial. They are over a 7-year period of are bad policy and very expensive. that kind of nonsense. time. They do not bring any injury to So, obviously, Mr. President, I stren- Second, on the farmer-owned reserve, farmers as a group of people with rela- uously oppose the amendment for the the Senator is right; there is no grain tionship to anybody else. They bring reasons I have suggested. in the farmer-owned reserve now be- about equity, and I believe the tax- I reserve the remainder of our time. cause prices are high and farmers have payers care about that. AMENDMENT NO. 3445, AS MODIFIED sold their grain. Who can say next year Mr. President, I yield the floor. Mr. HARKIN. Mr. President, I have a or the year after or the year after or Mr. HARKIN. Mr. President, how modification of my amendment I send the year after for 7 years? much time do I have? to the desk. He talks about the grain hanging The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The over the marketplace. That is the way ator has 31⁄2 minutes. amendment is so modified. it used to be when the processors and Mr. HARKIN. Mr. President, this is a The amendment, as modified, is as the elevators got the grain and the good debate, and I appreciate the com- follows: grain companies. When Cargill got the ments by the distinguished chairman S 1018 CONGRESSIONAL RECORD — SENATE February 7, 1996 on this issue. But I would engage him The PRESIDING OFFICER. The Sen- Mr. LUGAR. Mr. President, I will fol- even further. ator’s time has expired. low the same course as the distin- The interest rate was raised in the The Senator from Indiana. guished Senator from Iowa. We have bill to meet budget considerations. Mr. LUGAR. Mr. President, the dis- had a good discussion of both amend- They were looking for every bit of tinguished Senator, indeed, makes no ments and, therefore, I yield our time money they could find to meet the apology for being candid. He always back on our side. I ask unanimous con- budget, and so someone, I do not know has been a truth teller, and I appre- sent that the second Harkin amend- whom, decided, well, we will raise the ciate that. The facts are clear that the ment be temporarily set aside. interest rates on Commodity Credit Senator believes farmers should re- The PRESIDING OFFICER. Without Corporation loans to farmers by a per- ceive lower interest rates in this par- objection, it is so ordered. cent, and that gained us $260 million. ticular instance in the CCC loan than Mr. LEAHY. Mr. President, might I We are not now engaged in a budget commercial rates. note, I believe we are open for another debate. That has gone. We have room Clearly, as a part of general equity, amendment on the other side. I should within the budget for this. That is the the committee felt otherwise. We feel note, Mr. President, for our colleagues key. There is room in the budget for as a matter of fact that the loan rates that everybody has been very coopera- this. ought to be comparable for commercial tive. A number of Senators have not Let us take this $260 million that my activities in our country, and this was used all their time. Things are moving friend from Indiana said is costing tax- a good time to rectify that. It was a forward. I almost hate to mention that payers. No, it is not. What this $260 part of the budget consideration, and I as a compliment because it might spoil million represents is $260 million taken hope we have not forgotten that alto- the rhythm of things. from farmers. That is what it is. Farm- gether. That is not an issue that has I encourage Senators to keep coming ers pay it. If we do not have them pay been laid aside by the country, and it is forward. I know there are others on the it, that means farmers get to keep that not a question of sticking it to the floor now. But it is my intention on $260 million over 7 years. Now, if we farmers. The question is simply equity this side that whenever possible— take it from them, what is the dif- for farmers, equity for taxpayers, eq- whenever possible—on an amendment ference between that and a tax, I ask uity for all of us. I think this is an im- to yield back time. I would not do any- you? It is a tax on farmers. And, no, it portant consideration. It is a $260 mil- thing to cut off anybody’s time, of is not true that taxpayers have to pay lion consideration, as a matter of fact. course, that is allotted to them, be- it. That is not it at all. Finally, Mr. President, with regard Why should farmers get a better rate cause it is a relatively short amount of to stability for consumers, the distin- on their commodity loans than they time on each amendment. But when we guished Senator from Iowa mentioned can get at the local bank? Why should can, we can yield it back. that because of high prices now the they? I will tell you why. Because a Mr. LUGAR addressed the Chair. bins are empty. They will always be farmer, an individual farmer out there The PRESIDING OFFICER. The Sen- empty if prices are very high in the does not have the economic clout to go ator from Indiana. world. The point is, we ought not fill to the big banks in Chicago or New Mr. LUGAR. Mr. President, the nor- them up again and thus depress the York or Kansas City and get the prime mal rotation would be now to come to prices because of this overhang. That is rate. They have to pay whatever the our side of the aisle, if one of our Sen- the principle and that is the policy. local rate is. And it is usually a lot ators is ready. higher. Furthermore, $100 million of savings to Is the distinguished Senator from Now, Cargill, if they want to borrow the taxpayers is involved in not Pennsylvania ready? money, they go to Chicago and they reinstituting bad policy. Mr. SANTORUM. Just 1 minute. get the prime rate. They might even Mr. President, how much time does Mr. LUGAR. Mr. President, I suggest get it better than that, for all I know, our side have? the absence of a quorum. because they are big and they are a big The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The 1 customer. Farmer Joe Jones in Iowa, ator has 6 ⁄2 minutes left. clerk will call the roll. Mr. LUGAR. I am prepared to yield though, who goes to the local bank to The assistant legislative clerk pro- borrow money so he can pay his bills back, that is, if all time is yielded back ceeded to call the roll. and keep his crop and market it when on the Harkin amendment. Mr. SANTORUM. Mr. President, I Mr. FORD. Mr. President, has the he wants to, has to pay local going ask unanimous consent that the order Senator from Iowa used all his time? rates. for the quorum call be rescinded. That is why we have this in the bill. The PRESIDING OFFICER. That is The PRESIDING OFFICER. Without That is why we have had it for 60 years, correct. objection, it is so ordered. Mr. FORD. I thank the Chair. I think, if I am not mistaken. For pret- AMENDMENT NO. 3225 TO AMENDMENT NO. 3184 Mr. LUGAR. Mr. President, I move ty close to 60 years we have had that (Purpose: To provide farm program equity by that the Harkin amendment be set provision which allows farmers to bor- reforming the peanut program) aside. row from CCC. And now they are get- Mr. SANTORUM. Thank you, Mr. The PRESIDING OFFICER. Without ting slapped with a tax. I am sorry, I President. I have, I believe, at the desk objection, it is so ordered. am just going to tell it like I see it. amendment No. 3225. I ask for its im- This is $260 million taken from farm- AMENDMENT NO. 3446 TO AMENDMENT NO. 3184 mediate consideration. ers. Talk about takings, this is taken (Purpose: To continue the farmer owned The PRESIDING OFFICER. The from the farmer. There is no reason for reserve) clerk will report. it. The clerk will report the second Har- The assistant legislative clerk read On the farmer-owned reserve, again, kin amendment. as follows: The bill clerk read as follows: $81 million over 7 years is a small price The Senator from Pennsylvania [Mr. The Senator from Iowa [Mr. HARKIN] pro- to pay for stability for farmers and for SANTORUM] for himself, Mr. BRADLEY, Mr. poses an amendment numbered 3446 to consumers to know that if there is a BROWN, Mr. SMITH, Mr. GREGG and Mr. KYL, drought or flood or some other na- amendment No. 3184. proposes an amendment numbered 3225 to At the appropriate place insert the follow- amendment No. 3184. tional disaster, they are not going to ing: ‘‘Notwithstanding the provisions of sec- get hit with exorbitantly high food tion 110, the Secretary shall carry out the Mr. SANTORUM. Mr. President, I prices. So on both of these issues, but Farmer Owned Reserve program in accord- ask unanimous consent that further especially on the interest rate issue, I ance of with section 110 of the Agricultural reading of the amendment be dispensed say to my colleagues, do not stick it to Act of 1949 (7 U.S.C. 1421 et seq.) as it existed with. the farmers and charge them more in- prior to the enactment of this Act.’’ The PRESIDING OFFICER. Without terest than what is necessary for the The PRESIDING OFFICER. The Sen- objection, it is so ordered. Government. By doing so, you are just ator from Iowa. The amendment is as follows: taking $260 million more out of farm- Mr. HARKIN. Mr. President, this is Amend Section 106, Peanut Program, by: ers’ pockets over the next 7 years, and my second amendment. I yield back all (a) Striking paragraph (2) in subsection (a), we ought not allow that to happen. my time. I already discussed it. Quota Peanuts, and inserting the following: February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1019 ‘‘(2) SUPPORT RATES.— amount more for peanuts in this coun- you get $132 a ton when the world mar- ‘‘(A) MAXIMUM LEVELS.—The national aver- try than the world does. ket price is $350. age quota support rate for each of the 1996 What happens as a result of that? There are literally hundreds of thou- through 2000 crops of quota peanuts shall not Well, a lot of our folks who process sands of growers out there who cannot be more than $610 per ton for the 1996 crop, $542 per ton for the 1997 crop, $509 per ton for peanuts end up producing Snickers even make ends meet because of this the 1998 crop, $475 per ton for the 1999 and bars and the like up in Canada or Mex- program for the privileged few—for the 2000 crops. ico where they can buy peanuts at the privileged few—who just happened to ‘‘(B) DISBURSEMENT.—The Secretary shall world price, not have to subsidize an have a granddaddy who knew somebody initially disburse only 90 percent of the price arcane quota system at $678 a ton. So on the board when they handed out support loan level required under this para- we are losing jobs. Not only are we los- these quotas back in the 1930’s. graph to producers for the 1996 and 1997 ing jobs, but consumption of peanuts is That is not the way we should run crops, and 85 percent for the 1998 through going down. We are losing farms and farm policy in this country, and it is 2000 crops and provide for the disbursement to producers at maturity of any balances due losing processors and losing shellers. discriminatory. If you look at the per- the producers on the loans that may remain This is a doomed program. Keeping centage of minorities who have quotas, to be settled at maturity. The remainder of prices at this level is dooming this pro- that is another story altogether. Mi- the loans for each crop shall be applied to gram, not just for the processors and norities were not given a lot of quotas offset losses in pools under subsection (d), if consumers, but for farmers also. What in the South back in the 1930’s to grow the losses exist, and shall be paid to produc- we do is gradually reduce the support peanuts, and that is another inequity ers only after the losses are offset.’’ price for peanuts from $678 to $610 next built into this program. It is a great ‘‘(C) NON-RECOURSE LOANS.—Notwithstand- year, and by the year 2000 it goes down ing any other provision of this Act, for the reason to get rid of it. 2001 and 2002 crops of peanuts, the quota is to $475 for the years 1999 and 2000. After Let me talk about equity. As I said eliminated and the Secretary shall offer to the year 2000, we go to a nonrecourse before, in the process of the last couple all peanut producers non-recourse loans at a loan program which is similar to other of farm bills, we have gradually begun level not to exceed 70 percent of the esti- agriculture programs in place right to reform the farm programs. We have mated market price anticipated for each now as a safety net program. reduced support prices for a variety of crop. So we still have a program for pea- commodities. In fact, we have reduced ‘‘(D) MARKET PRICE.—In estimating the nuts when we are done. It looks more support prices for every single com- market price for the 2001 and 2002 crops of like the traditional farm programs. It modity but one: Peanuts. peanuts, the Secrtary shall consider the ex- port prices of additional peanuts during the is not a system, as I will explain in a Peanuts have gone up. Price supports last 5 crop years for which price support was minute, that is absolutely indecipher- have gone up since the 1985 farm bill by available for additional peanuts and prices able, as well as unfair, to growers who 21 percent. Peanut support prices have for peanuts in overseas markets, but shall do not happen to have passed on from gone up 21 percent. Every other pro- not base the non-recourse loan levels for generation to generation a quota that gram has gone down. Every other com- 2001–2002 on quota or additional support rates allows us to charge this outrageous modity support price has gone down, as established under this Act. price for peanuts that we do charge. we seek to get Government more and Mr. SANTORUM. Mr. President, I Let me now talk very briefly about more out of supporting agriculture and have a very short period of time under the peanut program. Mr. President, allowing agriculture to work on its the agreement to go through this. So if how much time do I have remaining? own. I can, I would like to first say I would The PRESIDING OFFICER (Mr. Only peanuts, with this horrible like to describe our amendment so I COVERDELL). The Senator from Penn- quota system that prejudices folks who can get that in; and then I would like sylvania has 111⁄2 minutes remaining. were not lucky enough, as I said, to to talk generally about the dramatic Mr. SANTORUM. Thank you, Mr. have their granddaddy give them a need for reform. President. Let me talk a little bit quota license—those are the folks who What we have seen in the bill that is about this program. Freedom to farm make money at the expense of other before us right now is an attempt to is about simplifying agriculture pro- growers, of shellers, of processors and move farm programs, at least a lot of grams, providing certainty and sim- consumers, because we pay a heck of a farm programs, into the 21st century— plicity. We do that in a lot of areas of lot more for peanuts in this country actually the 20th century; the late 20th this farm bill, and I commend the than they do anywhere else in the century, not really the 21st century—in chairman, Senator LUGAR, and Senator world. Why? For a privileged few, a an effort for reform, the freedom to LEAHY for their work in moving farm privileged few who just happened to farm. programs, albeit slowly, but gradually know someone back in the 1930’s or There are a couple of programs that toward simplicity and certainty. their granddaddy happened to know have been left aside, that have been al- We do not touch this program. We do someone in the 1930’s. lowed to continue as they are and have not reform this program, and this is It is a system that needs to be done not been reformed. In fact, in the past how it works. I wish I had time to ex- away with. Frankly, the right thing to several farm bills, while other com- plain this monstrosity of a program. It do is to eliminate the program out- modity programs have been reformed, a has taken me, as a new member of the right. But we understand there are a couple of programs have been set aside Agriculture Committee, a year to just lot of people who own these quotas who for nontouched status. One such pro- begin to understand how this program have loans and relationships, that they gram is the Peanut Program. works. borrowed money based on the fact they What we are trying to do with this It is discriminatory is probably the had these quotas and were able to get amendment, Senator BRADLEY and I, is nicest thing you can say about it. If these increased prices, so we phased it to do just a modest amount of reform you are a quota farmer—that means, if out. We are not going to drop anybody over the next few years and really you own a license to raise so many off the quota right away. We phase it make this program look like programs tons of peanuts—you can sell your pea- out over a period of 5 years and then go like the Soybean Program looks today. nuts at $678 a ton. If you do not have a to a nonrecourse loan program. We still So we are just trying to bring the Pea- license, which has been passed on usu- keep a safety net in place for all pea- nut Program into what is the 1960’s and ally from generation to generation— nut growers, not just the privileged few 1970’s farm policy as opposed to the and, by the way, about 20 percent of who happen to own quotas, but for all 1930’s farm policy. the quota holders, 20 percent of the peanut growers. What we do is gradually reduce the people who own quotas control 80 per- I reserve the remainder of my time. support price for peanuts from the cur- cent of the quota peanuts in this coun- Thank you, Mr. President. rent level, which is $678—and, by the try. So it is very few farmers, in some The PRESIDING OFFICER. Who way, the world market price for pea- cases not even farmers, people who own yields time? nuts is not $678 a ton, which is what it these things live all over the world and Mr. FORD addressed the Chair. is in this country for people who grow lease out the quotas so people can grow The PRESIDING OFFICER. The quota peanuts; it is $350 a ton. So we their peanuts. If you do not own one of Chair recognizes the Senator from Ken- pay, as this chart shows, a tremendous these quotas, you do not get $678 a ton, tucky. S 1020 CONGRESSIONAL RECORD — SENATE February 7, 1996 PRIVILEGE OF THE FLOOR are talking about a cost to the Govern- tral, to ‘‘buy.’’ Bear Stearns says: Mr. FORD. Mr. President, I ask unan- ment of $110 million in the first year ‘‘Hershey will be a major beneficiary of imous consent that Ms. Katherine under the Santorum amendment. several legislative and regulatory re- DeRemer, who is on detail from the The amendment that Senator form measures expected to be put into U.S. Department of Agriculture to the SANTORUM offers would bring the sup- effect in the near future; namely, the Committee on Agriculture, Nutrition, port and the market price below the phaseout of Government price support and Forestry, be granted the privilege cost of production, making financing for sugar and peanuts.’’ of the floor during the consideration of impossible and driving farmers out of And on another page of this, Bear S. 1541, the Agricultural Market Tran- the business and reducing the supply to Stearns said—and this is information sition Act of 1996. consumers. they sent out to their investors— The PRESIDING OFFICER. Without Two separate studies by the farm ‘‘Phase out support for sugar and pea- objection, it is so ordered. credit system shows that basically nuts. As a new part of the farm legisla- Mr. FORD. I thank the Chair and what he is doing will mean that some- tion being hammered out, the U.S. thank my colleague from Alabama. where between 40 and 45 percent of pea- Government could gradually phase out Mr. BRYAN addressed the Chair. nut farmers will not be able to get fi- price supports for sugar and peanuts.’’ Mr. HEFLIN. Mr. President, I yield 30 nancing the first year. And then in the Bear Stearns is making their stock rec- seconds to the Senator from Nevada. remaining years, none of them could ommendation based on the elimination The PRESIDING OFFICER. The get financing relative to this. This of the Price Support Program. We ex- Chair recognizes the Senator from Ne- would leave the industry with a signifi- pect this bill to go into effect in 1996. vada. cant reduction in supply. ‘‘Such measures would lead to substan- Mr. BRYAN. Mr. President, I ask I have some charts. This is a bag of tial margin improvements for Hershey, unanimous consent that I be recog- salted peanuts. It sells for 20 cents, 23 whose chocolate operations consumes nized next, for the purpose of offering cents, and 7 cents. That is 50 cents. The huge quantities of these two commod- an amendment, at the conclusion of farmer gets 7 cents. The manufacturer ities, sugar and peanuts.’’ It goes on the debate on the Santorum amend- gets 23 cents. The retailer gets 20 cents. relative to profit margins for share- ment. That is 99 percent peanuts. I do not holders and other stock aspects. The PRESIDING OFFICER. Without know what else you add to it. I suppose Now, several years ago, there was a objection, it is so ordered. you add a little salt. And maybe you GAO study pertaining to this, and they Mr. FORD. Reserving the right to ob- can cook them a little bit in peanut said, regarding the support price, there ject. oil, which is a good oil relative to it. was a possibility of it meaning lower The PRESIDING OFFICER. The Sen- Whoever heard of one of these bags of costs to the consumer. Yet, when they ator from Kentucky. peanuts selling for anything like the testified before the House regarding Mr. FORD. I withdraw it. bottled drinks, like the colas? When their report, they came up with a very The PRESIDING OFFICER. The they first started out talking about changed and realistic thing. The GAO Chair recognizes the Senator from Ala- putting a 1-cent tax on them—it never basically stated in testimony that by bama. materialized in that manner. Instead, ‘‘consumer,’’ they did not mean the Mr. HEFLIN. Mr. President, there they have always been increased in final consumer of the product, but the has been a great deal of misinforma- multiples of 5. The price used to be 10 first buyer of the peanuts to make tion about the peanut program. It is a cents, and now we find soft drinks them into candy or peanut butter. Fur- very complicated program, but it is a being 50 cents, 55 or 60 cents. ther, GAO admitted that it could be cost-effective and consumer-oriented How are you going to save any money zero that the homemaker would ever program. on a bag of peanuts when the farmer see of that savings. The GAO also stat- In the bill that is before us, the un- gets that little? Down here you have ed that they had interviewed both derlying bill, there is substantial re- peanut butter. The peanut butter here small and large manufacturers of pea- form. We have a reform peanut bill contains 90 percent peanuts. This par- nut products and were told that they that is before us. It is reformed in a ticular jar sells for $2.08. As it is, that may not pass the cost savings directly great number of ways. It will have the is what we picked out in the store. on to the final consumer of peanut effect of lowering the cost of the pea- There is a study by Purdue University, products, but that they could develop nut program to the extent that it is a and they went out and picked out six some new product lines with a lower no-net-cost program. It is not going to cities to sample. The price varied for a support price. cost the Government. jar of peanuts of the same size; I be- I want to show you the history of Over the years, the peanut program lieve it was 18 ounces. It varied from what has happened relative to farmer has cost the Government about $13 mil- $3.17 down to the lowest at a $1.23 a jar. price and retail price. Here are the var- lion a year. This past year, the cost has We are going to show you a chart later ious things. The support price is in increased, but the peanut program is showing what it cost the manufactur- blue on the chart here, and the red is essentially very little cost to the tax- ers to produce peanut butter and make farm prices, and green the retail price. payer. The quota will be reduced by as a profit. For the School Lunch Pro- Over the years, the farm price has al- much as 28 percent. Therefore, this gram, manufacturers sell peanut butter ways been above the support price. change alone demonstrates significant and obviously make a profit at about 80 That has been consistent throughout. reform. Frankly, I said, in my judg- cents a jar, compared to an overall The loan rate has not been used much. ment, it went too far, but it prevailed commercial retail average of $1.83. The Look at the difference as to what the on the Republican side. That is what manufacturer’s cost is what they sell manufacturers and the retailers make, they wanted to do, and they felt like to the School Lunch Program, and in regards to retail price versus what that was the thing to do. I still believe they make money on that at 80 cents a the farmer makes. that the reforms go too far. I do not jar. Let us see if we cannot get that chart like it, but it has been reformed. Now, M&M’s. We have here plain now pertaining to the cost of the man- So all these figures that the distin- M&M’s and peanut M&M’s. The ufacturing. This is from USDA. This guished Senator from Pennsylvania is consumer pays the same retail price, chart shows the manufacturers’ cost. using do not show the reformation that ‘‘disputing what candy manufacturers The manufacturers are able to make has taken place. have been saying about the effect of and sell peanut butter to the USDA His bill will basically kill the peanut peanuts on consumer prices.’’ They sell School Lunch Program at 81 cents a program. Actually, a similar amend- for the same thing. No difference what- pound, while consumers pay more than ment to his in the House was estimated soever when you go into the market. twice that amount for the very same by the U.S. Department of Agriculture All right. Here we have Hershey. peanut butter in grocery stores. The to cost the program $110 million in the Bear Stearns, which is a leading invest- retail price illustrated in this chart is first year alone, whereas the reform ment house, on September 18, issued a actually below the retail average. In bill in the package before us in the new alert relative to Hershey Food some places, the retail price is over $3. Senate is a no-net cost. In effect, we Corp., and they upgraded it from neu- As I indicated earlier, 90 percent of February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1021 what is in a jar of peanut butter is pea- compare it to the other crops. Here we missions on world trade matters in re- nuts. They may have added a little salt have from the U.S. Bureau of Census: gard to peanuts that were stored in and oil and other things pertaining to In the peanut industry, there are more Amsterdam. When they were proposed that. farmers who own their land and do not to come into the United States, they Now we talked about prices paid by rent than in wheat, soybeans or cotton. were examined, and it was found that the School Lunch Program versus com- This is the percentage of those that there was a substantial number of rat mercial retail. Let us now turn to the rent. The reasons that an individual droppings in the peanuts. chart on the comparative prices in may rent can be all sorts of things. Say I yield to the Senator from Georgia cities across the world. Again, USDA is a widow only has Social Security, her for 5 minutes. the source of this information. In the husband is dead, she wants to rent the The PRESIDING OFFICER (Mr. United States, the average price as of quota, but the critics say there is HELMS). The Senator from Georgia. that date—and they vary according to something wrong with that. Mr. COVERDELL. I thank the Sen- the date—is $2.10. In Mexico, it is $2.55. Mr. SANTORUM. Will the Senator ator from Alabama. The Senator from In Canada $2.72. The argument has been yield? Alabama has done such a distinguished made that peanut butter produced in Mr. HEFLIN. I will yield at the end job in his describing this important ag- Canada, or any foreign country, is of my remarks. ricultural program and its general ben- made with the cheaper, world market This chart illustrates the situation efit to our Nation. peanuts. This chart illustrates Hong relative to wheat, soybeans and cotton, Let me just say briefly with regard Kong, Paris, and Tokyo. The U.S. pea- pertaining to the issue of owner-oper- to this particular program, my hat is nut butter prices are the lowest in the ated and rented. There are some who off to the rural community, to the pea- world. I point that out. Let us look at do rent. However, in this bill, there are nut growers who stepped forward very early in this process and became a true Canada. I will not attempt to quote provisions that would do away with force in reform. The Senator from Ala- this French, but they have labeling on some of the public entities who own bama has already acknowledged the this Canadian peanut butter. In Can- peanut quota, but to do away with the enormous reforms that exist in this ada, the retail price is $2.99 and in the concept of the right to lease one’s land, and criticizing those that do, seems to bill. United States it is $2.21 on that par- I might point out in the measure me that we are losing sight of the over- ticular date and location. This example that passed the committee, in the all situation pertaining to widows, even takes into account the exchange measure that passed the Balanced children and others who have, over the rate. Budget Act, this bill saves over $500 Here we have a Snickers bar. They years, rented their land, or rented their million. This bill lowers the support say they are going to pass on to the quota. That is a distinction we ought price 10 percent. The price support es- to certainly look at. consumer savings on Snickers bars. Ev- calator has been eliminated—a 200,000- Now, food safety. We want to show erybody knows Snickers is packed full ton reduction in quota has been accom- that American peanuts have all sorts of peanuts. But when you get down to plished. The bill is replete with reform. of safety tests. There are certain pro- it, it actually only has 2 cents worth of The growers, the rural community it- hibited chemicals that domestic pro- peanuts in it. The retail price for this self, were at the forefront of accom- ducers cannot use in the production of Snickers bar is 55 cents. Furthermore, plishing this. They need to be acknowl- peanuts. Producers in foreign countries the sugar in a Snickers bar is only 3 edged for that. They do not need to be do not have these same restrictions on cents. This information is from a reli- set aside. They do not need to be rep- able source, a director of quality and pesticides that domestic producers rimanded. This is a farm community supply of Nestle’s Chocolate and Con- must conform with. that came forward and did what it Today, under GATT, 74 percent of the fections, who made this statement as needs to do. of the 18th day of June 1995. If the pea- peanuts allowed into the American edi- Let me say very quickly, the peanut nut price is reduced what portion will a ble market come from Argentina. Yet, program has been part of rural Amer- consumer see in regards to reduced re- 50 percent of the peanuts that come in ica for nearly 50 years. The amendment tail price. I say the consumer will see from Argentina cannot pass FDA tests offered by the Senator from Pennsylva- no reduction in the retail price. in regards to pesticide residues. They nia is like throwing a light switch off. Now, foes of the peanut program have are listed here—I cannot pronounce all These farmers, these rural commu- been putting out a lot of misinforma- of these—including pirimiphos-methyl. nities, have been functioning under the tion about new farmers, that they are And then China—the two leading set of rules imposed upon them by the not getting into the program. Of sources of foreign produced peanuts Government. The Government itself course, there is basically not a great they are talking about is in Argentina put this plan in place. If we are going number of farmers that are in the pro- and China—all Chinese peanuts coming to change it, we need to do it in a tran- gram—somewhere between 10,000 to into this country contain pesticide res- sitional form, which is what this bill 15,000. However, we have seen a steady idues that have been banned for in this does. increase of new farmers that have gone country. They cannot use these chemi- This program now not only affects into the peanut program. Actually, the cals, yet these chemicals are being the farmers, but it affects the entire peanut program is easier for a new used in Argentina and China and are rural community—banking, the value farmer to access than is the cotton, then exported to the United States. of land, agribusiness in general. It is wheat or corn program. In order to par- China also has a particular disease not the kind of thing that you can ticipate in these commodity programs, known as stripe virus. Stripe virus is a come in and arbitrarily change the a farmer must produce that crop for 3 disease we have to be very careful of. rules in 24 months. You cannot do that to 5 years building a base before they There is another disease called without doing enormous damage. can participate. aflatoxin that comes in, when growing Let me say this. The communities af- Really, when you get down to it, peanuts. In America, by electronic fected by this program are rural and ‘‘quota’’ means no more than just base, means, every peanut kernel is in- they are poor. In my State, these are relative to that. So the argument that spected. It goes through an electronic the poorest counties in the entire peanut production is left to an exclu- process to be sure that there is no State. They have poverty rates of 20 sive group and therefore nobody else aflatoxin contamination. Aflatoxin has percent, and actions taken by the Gov- can get into the market is misleading. been known to cause cancer, but that ernment that are capricious and with- This chart illustrating program par- process does not exist in Argentina and out sensitivity to time do enormous ticipation, using USDA figures, dem- does not exist in China. The food safety damage, enormous damage. onstrates that new farmers do have ac- requirements in regard to peanuts in The bill, as formed, moves in a mar- cess to peanut production. the United States is a very important ket direction. The farm and rural com- The other argument, or criticism issue and something that we ought to munities have been a willing partner, that is made, is that peanut quota be very careful about. but it is a transition so that the com- holders do not produce their quota and The issue of contamination was munities can adjust to the changes in instead lease, is also misleading. Let us raised a while ago by one of the com- our time. S 1022 CONGRESSIONAL RECORD — SENATE February 7, 1996 I will oppose the amendment by the the price support down to the billion in farm revenue, 150,000 jobs, Senator from Pennsylvania. I think it Santorum level, what this is going to while generating $200 million in ex- is exceedingly important that when we mean is you get it down below the cost ports. Peanut farmers also provide change the way we conduct our busi- of production. Then, what it is going to America with a safe and abundant sup- ness, when we change what the Govern- mean is you are going to drive those ply of peanuts. ment has put in place, there needs to farmers out of business because they Mr. President, in North Carolina, be an enormous sensitivity to allow the cannot afford to produce peanuts and peanuts are a major commodity that communities to adjust and move to make a profit and still comply with all produces more than $100 million in rev- change, which is exactly what was ac- the stricter wage, environmental, and enue, while directly and indirectly em- complished in the bill that came out of pesticide regulations. Therefore, pea- ploying more than 200,000 people in the committee, and is exactly what was ac- nut production will be forced to go various aspects of the industry. complished in the bill we sent to the overseas. The peanut industry has al- Moreover, the subject of reforming President which he vetoed and which ready suffered from unfavorable trade the peanut program was considered and we are attempting to replicate here agreements, such as NAFTA and debated in the Senate Agriculture this morning. GATT. You are going to have a situa- Committee. I commend the Senators from Ala- tion in which you will see there will be Interestingly enough, peanut farmers bama, from North Carolina, from Vir- no more peanuts grown in the United have already voluntarily reformed the ginia, for the work they have done to States. It is going to mean the end of program. They have cut their budgets, produce this market reform. I yield peanut production. Then you are going agreeing to a 10-percent cut in their back my time to the Senator from Ala- to get peanuts coming in from Argen- pockets, and going to a no-net-cost bama. tina, China, Mexico, and these other program to eliminate any cost of the The PRESIDING OFFICER. The Sen- places. program to the taxpayers. ator from Alabama. Another example? In the area which The Congressional Budget Office Mr. HEFLIN. Mr. President, the dis- Senator COVERDELL talked about, the [CBO] estimates these reforms will tinguished Senator from Georgia, Sen- poor areas of Georgia, there is a large save taxpayers over $400 million during ator COVERDELL, mentioned the eco- minority participation in the peanut the next 7 years. nomic effect. There has been a recent program. The ratio is more than 6 So, Mr. President, I must oppose the study by Auburn University on the eco- times greater than in the national av- Santorum amendment, and urge other nomic impact in the tri-State area of erage in those Southern States. It Senators to do likewise and support Alabama, Georgia, and Florida, show- means those people are going to be los- the distinguished majority leader in ing that the peanut industry there ex- ing jobs relative to the peanut indus- his motion to table this amendment. ceeds $1.3 billion and the employment try. Mr. WARNER. Mr. President, I rise associated with economic activity re- The reform package that is in the today to address the issue of the safety lated to the peanut industry exceeds Lugar-Leahy-Craig bill, what we have of foreign imported peanuts, which was 16,000 jobs. This has been based on the today, already cuts the peanut pro- raised previously by the distinguished way that the Base Closure Commission gram by 28 percent. It is a no-cost-to- Senator from Alabama, Senator HEF- did their calculations, the effect not the-Government program, and it has LIN. just on peanut farmers, but what effect made substantial reforms—too many, Mr. President, opponents of the pea- it has on other dealers and commu- in my judgment. I hope I can do some- nut program would have you believe nities—the COBRA effect that was set thing about it in conference to improve that American consumers are being de- up under the base closures. it. But, nevertheless, that is the bill frauded. As evidence, critics cite a Going with the Santorum type of before us right now. Today, it is a mat- ‘‘world peanut price’’ hundreds of dol- amendment would really mean the end ter of whether you are going to kill a lars lower per ton than that which of the peanut program. You would reformed peanut program that has American producers receive under the eliminate 37,500 jobs, with $350 million worked well or you will support peanut peanut-price-support program. What in lost farm revenue, $50 million in lost production in the United States. most Americans do not realize, Mr. exports, a $750 million drop in land val- I understand the Senator from North President, is that those world price ues, and a $25 million loss in tax reve- Carolina, Senator HELMS, would like peanuts are of a quality and type that nues. That is just in those three States some time. How much time do we have would be illegal to sell in the United referenced in the study. It does not remaining? States. I repeat, Mr. President, under take into account other peanut-produc- The PRESIDING OFFICER (Mr. USDA rules and regulations for pes- ing regions. The conclusion is that COVERDELL). The Senator has just over ticide use and diseased content, most changes made in the order proposed by a minute. of these so-called world price peanuts Senator SANTORUM will have a tremen- Mr. HEFLIN. I yield to the Senator would be illegal to sell to American dous negative economic effect. from North Carolina. consumers. In order to accurately understand the The PRESIDING OFFICER. The Around the world, U.S. peanuts, and situation faced by domestic producers Chair recognizes the Senator for a lit- especially those of the type grown in relative to foreign growers of peanuts tle under a minute. my State of Virginia, are recognized as you have to examine the guidelines, re- Mr. HELMS. This may be the best a premium quality grade worthy of a strictions, wage and labor laws, as well speech I ever made, Mr. President. premium price on the world market. as environmental laws in order to put I want to compliment the distin- American peanut farmers already are domestic producers on the same play- guished Senator from Alabama for the the leading exporters in the world, sell- ing field. No. 1, as compared to Amer- lucid presentation he has made. ing one-fourth of their crop each year ican peanut producers, they are not I want to say to the distinguished on the world market. This so-called subject to minimum wages. The farm Senator from Pennsylvania, he is one world price for peanuts is artificially labor in those countries—in China and of my favorites. I am glad he is in the deflated because it is based on an infe- in Argentina and even in Mexico or any Senate. I know he is sincere. But, on rior peanut used primarily for oil and of the rest of the peanut producing this matter, he is sincerely wrong. Mr. animal feed rather than edible use. countries—is so drastically lower than President, I must oppose the Santorum Domestic peanut growers must meet the wages in the United States. There amendment because it will do grave the strictest health, safety, and envi- is no environmental protection, and, of harm to thousands of small farmers in ronmental standards in the world. Our course, there is no restricted chemical North Carolina and other peanut-pro- producers are limited as to the types use, as we pointed out. ducing States. and amounts of pesticides and chemi- There has to be rigorous post-harvest The issue here is the future of the cal additives that can be applied to treatment and rigorous inspection here peanut program—and thousands of their crops—restrictions that few, if in the United States. None of that ex- jobs. The importance of this modest any, imports can meet. ists in the foreign countries. So you program can be measured statistically American consumers should know have a situation where, if you reduce by emphasizing that it provides $1.2 that our peanut farmers cannot February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1023 produce peanuts cheaper than their The underlying bill is $610. To suggest you had somebody’s granddaddy at the Third World counterparts who are not we do the same thing and somehow 49 trough 50 or 60 years ago because he subject to strict environmental regula- percent more people are not going to be was able to get a quota because he tions governing the use of pesticides, eligible for loans does not make any knew somebody. fertilizers, and other agrichemicals; sense. If people do not understand quotas— worker protection laws; minimum The Senator talked about how we sell a liquor license is the same thing. wage laws; consumer protection laws; peanut butter to the School Lunch What is a liquor license? It is a piece of and USDA quality and safety inspec- Program at a greatly reduced price, paper. It is not worth anything. If you tions required of American peanuts. much less than market price. First off, sell a liquor license, you get a lot of In short, Mr. President, the peanut I do not know anybody who does not money because it gives one an oppor- program provides American consumers sell bulk, to a mass consumer, in bulk tunity to do something that nobody with a low cost, stable supply of the quantities, cheaper than they do when else can do. You cannot sell liquor in highest quality, and safest, peanuts in they have to put it in little 6- or 8- or this country without a liquor license. the world. 10-ounce jars and market it. Of course, And you cannot sell peanuts in this Mr. HEFLIN. Mr. President, I reserve they are going to charge them less, as country unless you have a little piece the remainder of our time. any bulk purchaser gets less when you of paper saying you can sell peanuts. The PRESIDING OFFICER. The are buying in that size than something Is that American? Is that what we Chair recognizes the Senator from you were going to market at a local want to do to allow the privileged Pennsylvania. convenience store. That is No. 1. few—by the way, 70 percent of the peo- Mr. SANTORUM. Mr. President, I No. 2, in 1991 the USDA suspended ple who grow quota peanuts who have ask Senator CHAFEE and Senator REID peanut butter purchases, peanut butter this license rent that license. It is be added as cosponsors of this amend- sales for school lunch. School lunch owned by somebody else, some fat cat ment. programs suspended it. Why? Because sitting in New York City, or Paris, or The PRESIDING OFFICER. Without peanut butter prices were too high. someplace. They trade them like secu- objection, it is so ordered. They could not afford it anymore, so rities. Mr. SANTORUM. Mr. President, the they had to suspend it. Why? Because So what do they do? They make a lot Senator from Alabama said we would we were making a lot of farmers who, of money so a bunch of folks can sit not be growing peanuts in this country again, their granddaddy had a quota, and work their tails off. For what? For anymore. We would be driving all of they were making a lot of money and what? Basically, the world price for these peanut farmers out of business our schoolchildren are not getting pea- peanuts is what they ultimately get. with our amendment. What our amend- nut butter because it is too expensive. Who makes this different? A bunch of ment does is, over 5 years, we reduce He looked at foreign price. I remind fat cats who buy liquor—quota—li- the quota price by roughly 30 percent, the Senator, as I am sure he knows, censes. and we then eliminate the quota. America is somewhat unique in the The PRESIDING OFFICER. The Sen- How much of the cost of growing pea- world in the consumption of peanuts. ator’s time has expired. nuts is the quota? The answer is rough- Most of the people around the world do Mr. HEFLIN addressed the Chair. ly 30 percent. We reduce the support not eat peanuts like we do. Most grown The PRESIDING OFFICER. The Sen- price equal to the cost the quota adds in the rest of the world is used for feed ator from Alabama is recognized. to the price of peanuts. So it is a wash. for animals. Very little is used for food Mr. HEFLIN. Mr. President, you have What we have done is open up the for consumers. It is considered, I would to have a piece of paper, a license, to market so all these additional grow- not say a delicacy, but in a sense a sell liquor. This is different. The larg- ers—we are talking about these little very rare item for people to consume. est peanut farmer in the country does rural communities and all these poor We consume in this country over 70 not have a quota. He is in California, growers. What about these growers who percent of the world’s peanuts for and he has 5,000 acres of peanuts. grow peanuts and do not have a quota? human consumption. To suggest be- The PRESIDING OFFICER. The Sen- They grow peanuts, their price is $132 a cause a couple of countries that do not ator’s time has expired. ton as opposed to, if you are one of sell a lot of peanuts have very high Mr. FORD. Mr. President, do I have these privileged few quota holders, you prices, it would be like maybe in this time to ask unanimous consent? get $678 a ton. So let us think about country our prices for caviar are higher I ask unanimous consent that I may these folks who just did not happen to than they are in Russia, or something follow the Senator from Nevada with have a granddaddy who was at the like that, where you have an indige- an amendment after the next majority trough 50, 60 years ago when they were nous food that people consume versus amendment. handing out these quotas. something that is a luxury in other The PRESIDING OFFICER. Without Let us look at all the farmers out countries. That is not a fair compari- objection, it is so ordered. there working who have to buy quota son. Mr. FORD. I thank the Chair. seeds. To even grow additional peanuts, Another amazing point that was PRIVILEGE OF THE FLOOR peanuts that do not get you this nice made, the Senator compared the pea- Mr. LEAHY. Mr. President, I ask big price, you have to go to the quota nut program with the cotton program unanimous consent that David Grahn holders and buy their peanuts at their and the wheat program and said these and Craig Cox be given floor privileges high price so you can plant your poor other programs rent out their land for during the consideration of the farm peanuts, that are just as good in qual- production of this crop. The difference legislation. ity but you do not happen to have a is, if you rent your land out for the The PRESIDING OFFICER. Without quota. production of cotton or wheat, you can objection, it is so ordered. The Senator from Alabama said a lot still sell that cotton or wheat in this Mr. LUGAR addressed the Chair. of things. First off, CBO says our sav- country. There is no quota. The dif- The PRESIDING OFFICER. The ings in our amendment are the same as ference with peanuts is, when you rent Chair recognizes the Senator from Indi- under the bill. There will be no in- that land out, you rent the quota. If ana. creased costs to the Government under you do not have a quota, you cannot Mr. LUGAR. Mr. President, I ask the bill. sell your peanuts in this country. unanimous consent that the Santorum Second, the Senator from Alabama So it is not the same. I mean, the dif- amendment be temporarily set aside. said under our bill, 49 percent of the ference is anyone can rent land to grow The PRESIDING OFFICER. Without farmers would not be able to get loans cotton. You can sell the cotton here. objection, it is so ordered. in the first year. That is different from But unless you have a quota, you can- Mr. LUGAR. I thank the Chair. the underlying bill. I remind the Sen- not sell your peanuts here in this coun- Mr. BRYAN addressed the Chair. ator from Alabama we cut the support try. You talk about the small rural The PRESIDING OFFICER. The Sen- price in the first year of this bill the farmer, the guy who goes out and ator from Nevada is recognized. same as the underlying bill. We do not sweats every day to grow those pea- Mr. BRYAN. I thank the Chair. change the first year. We go to $610. nuts, and he cannot sell them because I yield myself 7 minutes. S 1024 CONGRESSIONAL RECORD — SENATE February 7, 1996 AMENDMENT NO. 3447 TO AMENDMENT NO. 3184 this program, we have been unsuccess- persistent efforts and for his tenacity (Purpose: To provide that funds made avail- ful. So last September we crafted a in trying to address this question of in- able for the market promotion program compromise which said, among other appropriate corporate welfare. I think under this Act may be used to provide things, that we will limit this program all of us here would understand and be cost-share assistance only to small busi- so that foreign corporations will no sympathetic to the notion that, if nesses or Capper-Volstead cooperatives and longer be eligible to receive payments. there are situations in our trading re- to cap the market promotion program) I might say parenthetically that in lations where you have a company that Mr. BRYAN. I send an amendment to the last year in which there is data is hard pressed and disadvantaged the desk, and I ask for its consider- available, some $12 million of taxpayer against competition, as some of our ation. money went to foreign corporations to companies are in certain industries, The PRESIDING OFFICER. The help them supplement their advertising then it is conceivable that you can clerk will report. budgets. In addition, some of the larg- make a legitimate argument that you The legislative clerk read as follows: est corporations in America are bene- want to find some kind of Government The Senator from Nevada [Mr. BRYAN], for ficiaries under this program—compa- subsidy to redress the imbalance in the himself, Mr. KERRY, Mr. BUMPERS, and Mr. nies that ought to be charged with han- marketplace. REID, proposes an amendment numbered 3447 dling their own advertising and pro- to amendment No. 3184. I know, for instance, that Airbus re- motional expense without reference to ceived significant subsidies. And Boe- Mr. BRYAN. Mr. President, I ask taxpayer subsidies. ing and McDonnell Douglas have to unanimous consent that reading of the Here are some of the major corpora- compete against the French, or against amendment be dispensed with. tions in the country in 1993, 1994: Er- other countries in those industries The PRESIDING OFFICER. Without nest & Julio Gallo, $7.9 million; Dole, where there is a very significant sub- objection, it is so ordered. $2.4 million; Pillsbury, $1.75 million; sidy. But here we have a situation The amendment is as follows: Tyson Foods, $1.7 million. And the list where companies that are extraor- In Title II, Section 202, on page 2–2, line 8, goes on. dinarily profitable are going to sell strike ‘‘$100,000,000’’ and insert ‘‘$70,000,000’’ This amendment would limit the their products abroad anyway for where appropriate. branded promotion programs to those In Title II, Section 202, on page 2–2. after which there is a market for those prod- that fall within the definition of the ucts anyway, where they are profitable line 9 and before line 10 insert the following: small business company under other beyond any of the need criteria that ‘‘Provided further, That funds made avail- provisions of the Federal Code. able under this Act to carry out the non-ge- you might try to establish, and never- It is my view that we should adopt a neric activities of the market promotion responsible compromise that has en- theless the taxpayers of this country program established under section 203 of the are simply reimbursing them for a sub- Agricultural Trade Act of 1978 (7 U.S.C. 5623) joyed the support of my colleagues on both sides of the aisle to place a limi- sidy for an advertising budget that may be used to provide cost-share assistance they would expend anyway. only to organizations that are non-foreign tation on this program in each of the Let me be very explicit about that. entities and are recognized as small business two specifics which I have just men- The M&M Mars company, for instance, concerns under section 3(a) of the Small tioned, and also to cap the program at has about a $262 million advertising Business Act (15 U.S.C. 632(a)) or to associa- $70 million. Under the current proposed budget. They spend that no matter tions described in the first section of the Act legislation which we are debating on entitled ‘An Act to authorize association of the floor, the Market Promotion Pro- what. When a company spokesman was producers of agricultural products,’ approved asked, ‘‘What do you think about tak- February 22, 1922 (7 U.S.C. 291). gram would continue in each of the 7 years at a $100 million annual funding ing these Government funds?’’ the com- Provided further, That such funds may not pany spokesman’s answer was, ‘‘Well, be used to provide cost-share assistance to a level. foreign eligible trade organization: We have talked a lot about curtailing you know, it is sort of like the mort- Provided further, That none of the funds Federal expenditures, taking a look gage interest rate deduction. If it is made available under this Act may be used and making some of the tough deci- there, you take advantage of it.’’ So to carry out the market promotion program sions, downsizing Government. I have they take advantage of the funds. It is established under section 203 of the Agricul- listened to a great many speeches on not even a question of being need tural Trade Act of 1978 (7 U.S.C. 5623) if the both sides of the aisle. This is our op- based. aggregate amount of funds and value of com- portunity to strike a modest blow for At a time when everyone is looking modities under the program exceeds for a responsible way to make judg- $70,000,000.’’ fiscal sanity by putting a cap on this program and limiting the expenditures ments, critical judgments about who Mr. BRYAN. I thank the Chair. to $70 million annually. There can be deserves Government assistance and For the RECORD, I want to make sure no conceivable justification for provid- who does not, it is simply wrong—it is that the RECORD reflects that this ing taxpayer-assisted funding to sup- just wrong, wrong economically, wrong amendment is a joint amendment by plement the advertising budgets of politically, wrong morally, wrong on my distinguished colleague from Mas- companies the size of those that are every kind of balance—to suggest that sachusetts, Senator KERRY, Senator listed in this exhibit that I have offered these companies with their—look at BUMPERS, and Senator REID. on the floor. Tyson Foods. What is Tyson Foods Mr. President, I think that those who I might add further that the number doing getting a subsidy at this point in have followed the debate on agricul- of companies who have received assist- time for this? tural issues know that this Senator has ance, of the 200 largest corporate ad- I like Tyson Foods. I like what they not been a supporter of the Market vertisers listed in the 1992 Standard Di- do. We are enormously proud of what Promotion Program. In the limited rectory of Advertisers, 13 of those com- they have accomplished and of what time that I have available this morn- panies received market promotion pro- they are capable of doing. But at a ing, I want to offer an amendment that grams involving some $9 million in time when we are being asked to cut was previously approved on the floor of 1992. back on education funding, on environ- the Senate on September 20 of last year So we think that this is something mental cleanup, on science research, on by 62 to 36. My preference would be to that has been before the Senate. It has the R&D tax credit, on all kinds of eliminate the Market Promotion Pro- enjoyed bipartisan support. We think it things that are important, how can you gram, which has cost the American makes sense, and we ask for its consid- justify this kind of effort? taxpayer more than $1 billion, because eration. There are some small companies, I think it is a poster child for corporate I reserve the remainder of my time there are some people working at a entitlements in America and is without and am prepared to yield 5 minutes to great disadvantage in the international justification. the distinguished Senator from Massa- marketplace against countries that I yield to the pragmatic consider- chusetts. have a much greater degree of assist- ation that, although I have attempted The PRESIDING OFFICER. The Sen- ance and of partnership between the on a number of occasions, joined by my ator from Massachusetts is recognized. Government and the private sector friends on the floor, Senator KERRY Mr. KERRY. Mr. President, I want to than we do that may need some kind of and Senator BUMPERS, to eliminate thank the Senator from Nevada for his leverage. It is with that in mind that February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1025 the Senator from Nevada and those of the focus on the amount of money that ored to stand by his side to try to bring us who are promoting a change are not was being appropriated for the pro- some sanity to the agriculture program suggesting, even though we think this gram. but especially to eliminate the Market is not an appropriate program overall, As I understand the history of this Promotion Program. As long as this we think that it is fair to recognize amendment, when it was brought up on program is on the books, at least once those small areas of need and simply to the appropriations bill, the Senate a year every news magazine in the cut this program back to the $70 mil- passed it, or a version of it. I am ad- country, from ‘‘60 Minutes’’ on down, is lion cap. vised by members of my staff that on going to do a piece on it. When you measure this particular that occasion when we went to con- Every time they do a piece on it, mil- program and whatever justifications ference the House conferees did not lions of Americans are going to say, are given for it against the extraor- agree to accept the language and the ‘‘What on Earth are those clowns dinary reductions that we are facing in provision was dropped. It did not make thinking about? How on Earth can they title I funds, in drug free safe school it through the process to be included in justify such a program as this?’’ Well, money, in Pell grants, in student loans, the appropriations bill as finally adopt- America, the answer is, we cannot. in environmental enforcement, in in- ed and submitted to the President for If I had my druthers, I would torpedo frastructure development, in science his signature. So that is why this issue this program to zero. But the Senator and research, in global climate change is raised again. from Nevada is not asking to cut the research—you can run down the gambit Let me just point out, while this is a program totally. He is saying go back and every one of those fundamental controversial program, and some of the to the figure the Senate adopted 62 to needs are being reduced—how can you television networks have sort of made 32 about 6 months ago, and put it back justify continuing this kind of cor- a hobby at least, if not a profession, of where the Senate had it at that time. porate welfare? attacking it and exaggerating it and It was passed overwhelmingly here. I think most Americans are not even trying to sensationalize it as some- I am not going to belabor the argu- aware that this kind of subsidy is tak- thing that is evil and not workable, the ments that have already been made, ing place, and every American that I facts are that this is a program which but the one salient argument that the have ever talked to, when you explain has created American jobs because it Senator from Massachusetts and the to them what is happening, their eyes has expanded our level of exports in ag- Senator from Nevada has made—and I bug out and they simply are aghast at riculture commodity trade and in food will make it again because you cannot the notion that this is what people in product trade to the extent that it has make it often enough—what in the Washington are choosing to do with been reauthorized. It has been sup- name of God are we doing subsidizing their money. The American citizen ported by this Senate and the House as Ernest and Julio Gallo, even Tyson knows this is inappropriate, it is un- well time after time because of the evi- Foods, the biggest employer in my necessary, and measured against all dence. The evidence is that this pro- State, and Jim Beam? That ought to the other choices that we are making gram works. It was originally designed make the Christian Coalition happy. in Washington it is plain and simply to be targeted against unfair trade All we are saying is, in the future we wrong. practices by our competitors around are going to do what GAO rec- I am grateful to the Senator from Ne- the world. It was called the targeted ommended, except for one thing: They vada for being willing to lead the export assistance program. The fact is recommended that it be cut to a small charge here in an effort to try to re- it continues to work in that way be- business, generic, a new-to-exports dress it. I hope the Senate will once cause funds are allocated by the De- small business program and funded at again vote as it did previously. We won partment of Agriculture where there no more than $50 million. The Senator this battle in the Senate. Unfortu- are special problems or special oppor- from Nevada’s amendment says $70 nately, as is so often the case here in tunities and only this kind of assist- million. Of course, that is $70 million Washington, the interests come into ance is considered to be effective. too much, but we live in a real world the conference committee or get one or So I urge Senators to look at this around here. We know we cannot tor- two people to hold up everything and amendment very carefully. I am not pedo the thing because big business has so it was taken out in the conference, going to get all out of breath, or red in too many defenders in this body. and here we are back again. This is the the face, arguing against it again. But The second thing GAO said is there is same history that we had on a mink I am going to say we should vote absolutely no proof that we are not subsidy and on the wool and mohair against this. It unnecessarily re- simply replacing money these corpora- subsidy, and ultimately we will win stricts—unnecessarily restricts—the tions would use on their own. Every- this battle because it is the right thing Department of Agriculture, in the ad- body knows that is true. It is just a to do. ministration of the program. The De- piece of welfare. If I were the Gallo I thank the Senator from Nevada. partment of Agriculture has submitted brothers, if I were Ralston Purina, The PRESIDING OFFICER. The Sen- testimony time and time again about Tyson Foods, Campbell Soup, Jim ator’s time has expired. how this has been a very useful pro- Beam, whoever, I would take the Who yields time? gram. I hope the Senate will not be money, too. Mr. LUGAR addressed the Chair. stampeded by the clever arguments But, colleagues, here is what this The PRESIDING OFFICER. The that are being made by my good friends amendment does. It says, No. 1, you Chair recognizes the Senator from Indi- who continue to take this issue up and cannot give this money directly to a ana. make a semicareer out of attacking big business. You can give it to a ge- Mr. LUGAR. I yield to the distin- the Market Promotion Program. It is a neric institute. You can give it to guished Senator from Mississippi as good program, and I am going to vote Riceland Foods. You can give it to any much time as he wishes. against the amendment. I hope Sen- of these national coalitions that have The PRESIDING OFFICER. The ators will join me in doing so. as their members all the poultry indus- Chair recognizes the Senator from Mis- Mr. BUMPERS addressed the Chair. try, all the liquor industry, those kinds sissippi. The PRESIDING OFFICER. The of things. But we also confine it to ge- Mr. COCHRAN. Mr. President, this is Chair recognizes the Senator from Ar- neric small business as defined by the a subject we have debated on a number kansas. Small Business Administration. of different occasions on the floor of Mr. BUMPERS. Mr. President, I ask It is a tragedy that we cannot kill the Senate. I recall when we had the for 5 minutes from my distinguished this program. When I think about what agriculture appropriations bill before colleague. we are doing to worthy programs in the Senate this past year there were First of all, I compliment my good discretionary spending and standing amendments offered to change various friend from Nevada for his persever- here, pleading with you to cut the most parts of the legal authorization for the ance in trying to rein in, if not torpedo outrageous program that we fund from program, the statutory authorization. totally, a program that has absolutely $110 to $70 million, it is unfathomable. We resisted those amendments on the no justification. He has been very dili- So, Mr. President, let me say the jobs appropriations bill and tried to keep gent about this, and I have been hon- the Senator from Mississippi talks S 1026 CONGRESSIONAL RECORD — SENATE February 7, 1996 about this creating, GAO says those programs. That should not dictate pol- This says, look, no longer are they to are jobs we created anyway. Do you icy on the floor of the U.S. Senate. It be subsidized. We protect the rights of think McDonald’s is going to quit try- should make us aware of policy that is the co-ops to continue to participate in ing to sell Big Mac’s all over the world in trouble, that deserves to be cor- this program. I think we are in agree- if we do not give them money? rected. That is exactly what we are ment, as I understood the thrust of his Let me close by the saying I have had trying to do. argument. an excellent relationship with the Sen- The Senator from Massachusetts and I urge my colleagues to support this ator from Mississippi. Back before a the Senator from Nevada and the Sen- amendment, as they did on September terribly untoward event happened in ator from Idaho are not going to defend 20 of last year. November 1994, I was chairman of the McDonald’s. They do not need help. The PRESIDING OFFICER. The time Agriculture Appropriations Sub- But those who produce the commod- of the Senator has expired. The time committee and he was my ranking ities that build the components of the remaining in opposition is 5 minutes, member. Now he is chairman and I am food they sell need to be assured that 57 seconds. his ranking member. This is one of the they have full access to foreign mar- Mr. LUGAR. Mr. President, I see no few disagreements he and I ever had. kets under the General Agreement on other Senators on our side of the aisle We get along just fine in that commit- Tariffs and Trade and all other trade who wish to be heard on this amend- tee and worked out those appropria- agreements we get into. ment. Therefore, I yield back our time. tions bills jointly, and I hope for the The only way we can maintain profit- The PRESIDING OFFICER. The time country’s benefit. This is one place I ability at the production level on the has been yielded back. All time has strongly disagree. farm is to assure that our Government been yielded back on the amendment. I hope our colleagues will again vote works in cooperation with that pro- Mr. LUGAR. Mr. President, I ask 62 to 32 to pass this amendment. I yield ducer in assuring them the level play- unanimous consent that the Bryan the floor and yield back such time as I ing field and the access to foreign mar- amendment be set aside temporarily. have to the Senator from Nevada. kets. The PRESIDING OFFICER. Is there Mr. LUGAR addressed the Chair. I am sorry, if we do not do that, if we objection? The PRESIDING OFFICER (Mr. allow foreign barriers to be constantly Mr. BUMPERS. Mr. President, have COCHRAN). The Senator from Indiana. built against our producers, without the yeas and nays been ordered on this Mr. LUGAR. I yield as much time to the advantage of breaking those bar- amendment? the distinguished Senator from Idaho riers down, then surplus arrives, profit- The PRESIDING OFFICER. The yeas that he may require. ability drops, and guess where we will and nays have not been ordered. Mr. CRAIG. I thank my chairman for be? We will have agriculture lined up Mr. BUMPERS. I ask for the yeas yielding, Mr. President. at the door of the Congress once again, and nays. The PRESIDING OFFICER. The Sen- saying, ‘‘You have got to help us out. The PRESIDING OFFICER. Is there a ator from Idaho. You have got to provide a minimum in- sufficient second? There is a sufficient second. Mr. CRAIG. Mr. President, I will not come level. We’re all going broke.’’ The yeas and nays were ordered. stand before any of the Members of the The transition that we have been in- The PRESIDING OFFICER. Without Senate today and attempt to justify volved in for well over a decade, Mr. large multinational, billion-dollar cor- objection, the amendment is set aside. President, has been to move the farmer Mr. LUGAR. Mr. President, I ask for porations getting taxpayer-subsidized to the market and allow that farmer to the yeas and nays on the Santorum promotion programs. That needs to be produce for a market. And that market amendment. reformed, no question about it. is an international market as well as a The PRESIDING OFFICER. Is there a In the committee this year we have domestic market. The Market Pro- sufficient second? reduced the overall level of funding motion Program has been designed to There is a sufficient second. from $110 to $100 million. But the rea- expand that foreign market and create The yeas and nays were ordered. son the chairman of the appropriations a greater desire on the part of the for- Mr. HARKIN. Mr. President, I would subcommittee, who just spoke, and the eign consumer for the U.S. agricultural like to ask for the yeas and nays on the reason I am on the floor defending the product. It has worked in spades. We two amendments I offered. program is because we are trying to know that. USDA knows it. That is The PRESIDING OFFICER. Is there take the Government out of production why it has defended it. It has been mis- objection to asking for the yeas and agriculture and put the Government in used. We all know that. We are work- nays? Without objection, it is so or- the right and proper role as it relates ing to correct that. I am going be as dered. to its relationship to domestic indus- aggressive as anyone in getting it done. Is there a sufficient second? tries. And that is for small producers We have cut the funding now. That is There appears to be a sufficient sec- who have to compete against sub- a responsible action to take. We will ond. sidized producers in foreign countries, target and prioritize the money where The yeas and nays were ordered. our Government should serve as a lev- it should be under the premise that I Mr. HARKIN. Might I inquire if there eler of the playing field. have laid out. That, I think, is the is going to be another amendment on That is where our Government can premise that all have agreed on was the other side. The clock is ticking. work best. We know that in our coun- the intent of the program originally. Mr. LUGAR. I will respond to the dis- try today for American agriculture to So I hope the Senate will reject this tinguished Senator, there is no one flourish, it must sell in foreign mar- amendment. It is important that we present on our side of the aisle, there- kets. And, oh, yes, by the way, every look internationally when we think fore, the Senator can proceed. item that one of those companies sells about American agriculture. That is a Mr. HARKIN. I understand there is a in many instances is produced by a role where Government can play a re- unanimous-consent agreement that small producer and sold to that com- sponsible part as a partner with our do- Senator FORD was going to go next. If pany that then markets it in a foreign mestic U.S. farmer. he is not available, then I have an country. That is the other side of the The PRESIDING OFFICER. Who amendment I want to offer. I want to story. yields time? make sure Senator FORD offers his But what I am interested in are the Mr. BRYAN addressed the Chair. amendment, but I do not want to let marketing co-ops and the associations The PRESIDING OFFICER. The Sen- the clock tick, because we are under that go to countries to develop mar- ator from Nevada. time pressure. kets so that we can sell to them di- Mr. BRYAN. Let me say briefly that Mr. LUGAR. I suggest now it would rectly our products. That is where mar- I believe the Senator from Idaho ought be good to expedite the situation by ket promotion works at its very best. to support this amendment. All it does asking the Senator from Iowa to offer That is what the ag committee is real- is give the taxpayers’ dollars to be used his amendment. We are going to have a ly trying to get at. by foreign corporations with respect to backup. I am not going to be stampeded by a the granting of promotions, like Mr. HARKIN. Mr. President, I ask couple of great, dramatic television McDonald’s. unanimous consent that I be allowed to February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1027 offer my amendment but that Senator ing hens or broilers, which I do not cattle. They do not even know this pro- FORD be able to offer the next amend- know a great deal about, we have vision is there probably, or if it is ment. 150,000. there, they will not know how to apply The PRESIDING OFFICER. Is there I think the original bill that Senator for it. But if we limit it to those small- objection? LUGAR and Senator LEAHY introduced er operators, then that is where the Mr. LUGAR. Will the Senator modify had good limits. Why? Because those money will go, and we can focus it the request to state the next Demo- numbers in the original bill cor- where it is needed. cratic amendment? responded to the provisions of the So I really do not understand why Mr. HARKIN. Yes, fine. Clean Water Act—I should say, cor- the initial numbers that were in the The PRESIDING OFFICER. Is there responded to the provisions of regula- Lugar-Leahy bill were changed. I objection? Without objection, it is so tions implementing the Clean Water thought they were quite adequate. I ordered. Act—in terms of livestock concentra- think there should be a limit on Fed- AMENDMENT NO. 3448 TO AMENDMENT NO. 3184 tions. eral assistance to these larger oper- (Purpose: To amend the eligibility criteria So basically, the bill before us raises ations. In order to get large, they have for the Environmental Quality Incentive these limits up to what I think are to have capital resources. They could Program) really unconscionably high levels. not get large if they did not have the Mr. HARKIN. Mr. President, I send You might say, ‘‘Well, look, if they capital. If they have the capital, then an amendment to the desk. are big operators and they are pollut- they have the money to make sure The PRESIDING OFFICER. The ing, we want to solve these environ- they meet the provisions of the Clean clerk will report the amendment. mental problems, so why not let some Water Act. The legislative clerk read as follows: of this money in cost sharing and tax- So, again, I will just say, yes, they do The Senator from Iowa [Mr. HARKIN] pro- payers’ money go to some of the bigger have problems, but they can solve poses an amendment numbered 3448 to operators to clean up their environ- them themselves. The Federal Govern- amendment No. 3184. mental problems?’’ ment should not be subsidizing the Mr. HARKIN. Mr. President, I ask My point is that these larger opera- growth of large operations. My point is unanimous consent that the reading of tors fall under the provisions of the that large hog and cattle operations the amendment be dispensed with. Clean Water Act, and they have to are first and foremost a State issue. The PRESIDING OFFICER. Without clean up their act. They have to do States ought to address that issue objection, it is so ordered. that. forcefully. But second, I do not believe The amendment is as follows: Take a smaller farmer who has the Federal Government, the tax- maybe 1,000 hogs, maybe he has 1,000 payers, ought to be in the position of Section 314 is amended by striking ‘‘(ii) beef cattle, a family-size operation. 10,000 beef cattle’’ and all that follows subsidizing in any way the growth of through ‘‘lambs;’’ and inserting the follow- That farmer does not have to meet the these large operations, and that really ing: provisions of the Clean Water Act, but is what this would do under this bill as ‘‘(ii) 1,000 beef cattle; it would be nice if he did so. It would it is before us. ‘‘(iii) 100,000 laying hens or broilers; help us all out. So the limited amount So basically, to repeat, all my ‘‘(iv) 55,000 turkeys; of money that we are going to have to amendment does is it takes the num- ‘‘(v) 2,500 swine; or help clean up our environmental prob- bers for livestock operations that ‘‘(vi) 10,000 sheep or lambs.’’ lems, I think, would better be directed would be eligible for technical assist- Mr. HARKIN. Mr. President, I will toward the smaller family farmers be- ance and cost-sharing incentive pay- try not to take much time on this. cause it will give them an incentive to ments to meet environmental stand- What this amendment does is to rein- do so. They do not have to do so, but ards under the Environmental Quality state the limits on the size of livestock cost sharing, technical assistance and Incentive Program. operations eligible to receive benefits support will give them the kind of in- It just reinstates those numbers that under the Environmental Quality In- centive to go ahead and put in waste were in the bill last year. Again, I want centive Program. management control systems, lagoons, to make it clear that the large oper- Last year, the distinguished Senator and things like that. ations can still get the technical as- from Indiana, Senator LUGAR, and Sen- For these bigger operators who have sistance. I do not mind that. They just ator LEAHY introduced a bill called the 10,000 beef cattle or 15,000 hogs, they cannot get cost share to build an ani- Environmental Quality Incentive Pro- have to do it anyway. They are so big, mal waste facility. So that is all I am gram. Quite frankly, it was based upon they ought to have the capital re- saying. As far as the cost share money a bill I introduced several years earlier sources that would allow them to do goes, let us target that to the smaller called the Water Quality Incentive that. Quite frankly, most of them do. operators. Program. So I have been very support- So rather than taking the limited The PRESIDING OFFICER. Who ive of it. I think it is a good bill. I have amount of money that we are going to yields time? no problems with it because it provides have and try and spread it out—and let Mr. LUGAR. Mr. President, I yield for technical assistance. It provides for us face it, bigger operators have attor- time to myself as I may require. cost-sharing assistance and incentive neys, they have accountants, they Mr. President, I appreciate the spirit payments for farmers to meet environ- know how to go after Federal dollars. of the argument. I pay tribute to the mental problems with their livestock You can bet your bottom dollar that distinguished Senator from Iowa for operations. the biggest operators will be in there the work he has done in this area of en- In the original bill that the Senator to get the cost share and technical as- vironmental consideration for live- from Indiana introduced last year, sistance. What the heck, free money. If stock. It is an important area in his there were the following limits, and if I am a big operator and I have to com- State and in mine and in the many you went over these limits, you would ply with the Clean Water Act and there States that our committee serves. The not be eligible for cost sharing by the is a pot of Government money over program does offer us, through the Government, and things like that. Let here that I can go after that will help cost-sharing situation, an opportunity me read the limits: 1,000 beef cattle; me meet the requirements of the law to make a difference in encouraging 100,000 laying hens or broilers; 55,000 and I do not have to dip into sharehold- smaller operations to have more envi- turkeys; 2,500 swine; or 10,000 sheep and ers’ equities or anything like that, ronmentally satisfactory hog oper- lambs. That was in the original bill well, I will do that, I will go after the ations, although it is not limited to last year. free Government money. that. In the bill before us today, all of That is what will happen under the The Senator pointed out that there those numbers have been bumped up to provisions in the bill before us. The are limits with regard to cattle and incredible extremes. Rather than 1,000 larger operators will go after the Gov- turkeys and chickens. The problem cattle, we now have 10,000 beef cattle. ernment money, squeeze out the small- here, Mr. President, is trying to arrive Rather than 2,500 hogs, we now have er guy. The smaller family farmer has at some compromise in terms of the 15,000 hogs. And rather than 100,000 lay- 500 hogs, 1,000 hogs, 700 head of beef size of operations farmers now have. S 1028 CONGRESSIONAL RECORD — SENATE February 7, 1996 The original limitations on size, I be- derance of evidence that we have sim- ers with less than 1,000 head of cattle lieve, were derived from the Clean ply missed the mark by a whole lot. were eligible. Water Act regulations that discussed The PRESIDING OFFICER. Who But when this provision went into confined feeding operations in the yields time? conference, these caps were raised to 1970’s. That was the genesis, at least, as Mr. HARKIN. Mr. President, I will 15,000 hogs and 10,000 cattle. So now I recall of the figures at the time. Of not take much more time. I appreciate every large livestock continent and course, the average size of the facilities the arguments made by my friend from every factory hog farm can receive for feeding of livestock and birds has Indiana. I have visited with hog farm- money from the U.S. Department of increased very, very substantially. ers in Iowa, too, and there is a battle Agriculture to help them comply with I make no case, specifically, for the going on in my State, and it is not a regulations. figures that the committee came up very pretty one. There are decisions The problem is, these type of farmers with and that are incorporated in this being made about these large hog oper- already have the capital to implement legislation as having the wisdom of ations in Iowa. I do not think that is these measures. In fact, the Clean Solomon. They are clearly a com- the point of this argument here. The Water Act already requires them to do promise, after listening to a large num- point of my amendment is simply to so. ber of producers and trying to think say, in terms of cost-share money com- This may not be a bad thing if Con- through the intent of the act, which, as ing from the Government—and it is not gress had an infinite amend of money the Senator from Iowa has stated cor- a bottomless pit—let us focus that to spend on this problem. But we do rectly, is one of trying to help smaller money on our smaller family farmers, not. producers, with the thought that the who are really not that well-equipped In fact, under this bill only $100 mil- larger producers will have to take care with working capital sometimes to lion is authorized for livestock assist- of their own expenses. meet the higher standards of environ- ance each year. With this limited My point is that these terms are rel- mental quality. In many cases, they do amount of money, it is essential that ative. Some can move way off the spec- not have to, but with the cost-share we target assistance to the independ- trum and they are very large indeed, program, this would give them incen- ent pork producer who is forced to and under no circumstances are they tive to do so. The larger operations can compete with the large factory-type going to qualify for cost-sharing handle themselves. They have the cap- hog farmers. money. The argument has been about ital to do so. When you are talking The independent hog producer can what ought to be the limits as to what about 15,000 hogs, that is an extremely compete in this environment only if is a small- or even medium-size pro- large operation in any State. If you are they have a level playing field. Provid- ducer under these terms. The Senator talking about 10,000 cattle, that is a lot ing funds to large factory farmers from Iowa has probably visited with of cattle. skews this playing field. the pork caucus in Iowa and, within So I think the original numbers that The caps in the originally passed the last week he will have discussed were in the bill, which, as the Senator Senate bill were reasonable—as are the this, I suspect, with many Iowa hog from Indiana pointed out, do cor- caps in the Harkin amendment. I urge producers who were raising questions respond with the regulations covering my colleagues to support the amend- about—in terms of the number of hogs the Clean Water Act. I believe they ment. in the operation, as well as the pay- still hold pretty true today and will in I ask unanimous consent that my ment—the limit of $10,000. In both the future, again, when we are looking amendment be printed in the RECORD cases, the point they have made—and at a limited pot of money we can use. so that you know exactly my inten- it is a very lively issue in Iowa—about I do not need to take any more time. tions. the size of hog situations and environ- Mr. GRASSLEY. Mr. President, I rise There being no objection, the text of mental consequences, because Iowa is a to support the Harkin amendment. I the amendment was ordered to be very important pork production State. had filed an amendment virtually iden- printed in the RECORD, as follows: It is the same in Illinois, Indiana, real- tical to this, that I will place in the AMENDMENT TO SUBSTITUTE AMENDMENT NO. 3184 TO S. 1541 ly, across the corn belt where there are RECORD. large hog production situations. Due to the unanimous-consent agree- (Purpose: To target benefits under the Live- Certainly, a number of farmers who stock Environmental Assistance Program ment reached last night between the 2 to family farmers and to limit the amount came to visit with me about this want- leaders, the Republicans could offer any one farmer can receive) ed still a higher limit to qualify. In only 5 amendments, while the Demo- Page 3–14, line 25 strike ‘‘10,000’’ and re- other words, they had more animals crats are able to offer 10. place with ‘‘1000’’. than the limit. They were past the cut- Because of this limitation, I was not Page 3–15, line 3 strike ‘‘15,000’’ and replace off and they were not going to qualify. able to offer the amendment, so I will with ‘‘2500’’. They want to get the threshold up lend my support to the Harkin amend- Page 3–27, line 11 insert a period after higher. They would like to see more ment. ‘‘$10,000’’ and strike everything through line money, likewise. I understand what The Harkin amendment will lower 12. Mr. HARKIN. I yield the remainder they are saying. I was not able to offer the caps to determine what livestock of my time. them promises that this is likely to producers are eligible for cost-share The PRESIDING OFFICER. The Sen- occur, given a limited amount of funds under the new Environmental ator yields back his time. money and what have been some very Quality Incentive Program. Mr. LUGAR. Mr. President, I yield extensive conversations with producers Mr. President, it is good public policy back the remainder of the time on the of all sizes. to assist farmers in complying with en- Harkin amendment on our side. I say, Mr. President, that the Senator vironmental regulations; the environ- The PRESIDING OFFICER. The Sen- raises a good point and is the type of ment benefits, the public benefits, and ator from Indiana yields the remainder consideration probably best discussed agriculture benefits. Farmers who grow of his time. in a roundtable discussion of many pro- corn, soybeans, cotton, wheat, and Mr. LUGAR. I ask unanimous con- ducers of different sizes to bring some many other crops have for many years sent that the Harkin amendment be reality into the argument as to how received cost-share funds to implement temporarily laid aside. hogs and cattle are now produced in environmental measures. The PRESIDING OFFICER. Without America and what size operations we So, I approve of extending this assist- objection, it is so ordered. are headed toward. It is in that spirit ance to livestock producers. However, Mr. HARKIN. Mr. President, I ask for that I simply defend the work we have there needs to be limits on what pro- the yeas and nays on my amendment. done and the reasonably pragmatic ducers can receive USDA funds. The PRESIDING OFFICER. Is there a compromise, based upon the sums of In the original farm bill, contained in sufficient second? money available, and the actual size of the Balanced Budget Act, the Senate There is a sufficient second. operation in the country now. I hope approved limits on what producers can The yeas and nays were ordered. the Senate will support that, unless receive funds. Only hog producers with Mr. LUGAR. Mr. President, I ask there is a substantially greater prepon- less than 2,500 hogs and cattle produc- unanimous consent that votes occur February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1029 beginning at 11:30 a.m. today, that they ‘‘(i) grants for Rural Business Enterprises cluding site grading and improvement and occur in the order in which they were pursuant to section 310B (c) and (j); architect fees); or offered, and that the first vote is a ‘‘(ii) direct loans, loan guarantees and ‘‘(bb) in excess of ten percent of the annual standard 20 minutes in length, and that grants for water and waste water projects allocation for commodity-specific projects pursuant to section 306; and not of the national scope. all remaining stacked votes in the se- ‘‘(iii) down payment assistance to farmers, ‘‘(d) LIMITATIONS.—No funds from the Fund quence be limited to 10 minutes in section 310E; for Rural America may be used for an activ- length, with 2 minutes to be equally di- ‘‘(D) grants for outreach to socially dis- ity specified in subsection (c) if the current vided between each vote for expla- advantaged farmers and ranchers pursuant level of appropriations for the activity is less nation. to section 2501 of the Food, Agriculture, Con- than 90 percent of the 1996 fiscal year appro- Mr. LEAHY. Reserving the right to servation, and Trade Act of 1990 (7 U.S.C. priations for the activity adjusted for infla- object, and I will not object. We have a 2279); and tion.’’ series of votes lined up here. ‘‘(E) grants pursuant to section 204(6) of Mr. FORD. Mr. President, I under- the Agricultural Marketing Act of 1946. stand we have 30 minutes equally di- During the first votes that will re- ‘‘(2) RESEARCH.— quire rollcalls, if there are any on that ‘‘(A) IN GENERAL.—The Secretary may use vided. list where it is possible to vitiate roll- the funds in the Account for research grants The PRESIDING OFFICER. The Sen- call votes, I urge the sponsors to talk to increase the competitiveness and farm ator is correct. with the distinguished Senator from profitability, protect and enhance natural Mr. FORD. Mr. President, we have Indiana and myself and see if that is resources, increase economic opportunities talked a lot this morning about com- possible. in farming and rural communities and ex- modity programs—for good reason, I have no objection to the request. pand locally owned value added processing they are the heart of the farm bill and The PRESIDING OFFICER. Without and marketing operations. the heart of rural America. However, ‘‘(B) ELIGIBLE GRANTEE.—The Secretary objection, it is so ordered. may make a grant under this paragraph to— unless we turn our attention to other AMENDMENT NO. 3449 TO AMENDMENT NO. 3184 ‘‘(i) a college or university; priorities in rural America, we will be (Purpose: To provide funds for rural ‘‘(ii) a State agricultural experiment sta- neglecting the needs of millions of our development and related activities) tion; citizens who live in our small towns. Mr. FORD. Mr. President, I send an ‘‘(iii) a State Cooperative Extension Serv- To make sure we stay competitive, amendment to the desk and ask for its ice; we have to make sure we maintain the ‘‘(iv) a research institution or organiza- infrastructure that has made American immediate consideration. tion; The PRESIDING OFFICER. The ‘‘(v) a private organization or person; or agriculture second to none, our re- clerk will report. ‘‘(vi) a Federal agency. search, conservation, and economic op- The bill clerk read as follows: ‘‘(C) USE OF GRANT.— portunities for small towns. The Senator from Kentucky [Mr. FORD], ‘‘(i) IN GENERAL.—A grant made under this To meet those objectives, I am offer- for himself and Mr. DASCHLE, proposes an paragraph may be used by a grantee for 1 or ing an amendment to create a fund for amendment numbered 3449 to amendment more of the following uses: rural America. Over 3 years, this ini- No. 3184. ‘‘(I) research, ranging from discovery to tiative will dedicate $300 million to Mr. FORD. Mr. President, I ask unan- principles of application; ‘‘(II) extension and related private-sector meeting those needs—$50 million in fis- imous consent that reading of the activities; and cal year 1996, $100 million in fiscal year amendment be dispensed with. ‘‘(III) education. 1997, and $150 million in fiscal year 1998 The PRESIDING OFFICER. Without ‘‘(ii) LIMITATION.—No grant shall be made for investing in meeting those prior- objection, it is so ordered. for any project, determined by the Sec- ities. The amendment is as follows: retary, to be eligible for funding under re- One of the top priorities must be Title V is amended by adding at the end search and commodity promotion programs keeping our research programs going. the following: administered by the Department. They make sure our farmers have the ‘‘(D) ADMINISTRATION.— ‘‘SEC. 507. FUND FOR RURAL AMERICA. ‘‘(i) PRIORITY.—In administering this para- most up-to-date, most efficient farm- ‘‘(a) IN GENERAL.—The Secretary shall cre- graph, the Secretary shall— ing techniques. This amendment will ate an account called the Fund for Rural ‘‘(I) establish priorities for allocating enable the Secretary to augment cur- America for the purposes of providing funds grants, based on needs and opportunities of rent programs and keep American agri- for activities described in subsection (c). the food and agriculture system in the Unit- ‘‘(b) COMMODITY CREDIT CORPORATION.—In cultural ahead of the competition. ed States related to the goals of the para- each of the 1996 through 1998 fiscal years, the This amendment will, second, enable graph; Secretary shall transfer into the Fund for the Secretary to invest in priorities to ‘‘(II) seek and accept proposals for grants; Rural America (hereafter referred to as the ‘‘(III) determine the relevance and merit of enhance economic growth in rural ‘‘Account’’)— proposals through a system of peer and towns—in sewer and water grants, for ‘‘(1) $50,000,000 for the 1996 fiscal year; example. As we prepare American agri- ‘‘(2) $100,000,000 for the 1997 fiscal year; and stakeholder review; and ‘‘(3) $150,000,000 for the 1998 fiscal year. ‘‘(IV) award grants on the basis of merit, culture for the 21st century, we have to ‘‘(c) PURPOSES.—Except as provided in sub- quality, and relevance to advancing the na- make sure that our children, our section (d), the Secretary shall provide not tional research and extension purposes. grandchildren have economic opportu- more than one-third of the funds from the ‘‘(ii) COMPETITIVE AWARDING.—A grant nities to stay in our small towns. Account for activities described in paragraph under this paragraph shall be awarded on a This piece of legislation is the only competitive basis. (2). one the Senate will consider that will ‘‘(1) RURAL DEVELOPMENT ACTIVITIES.—The ‘‘(iii) TERMS.—A grant under this para- graph shall have a term that does not exceed deal primarily with rural America. Un- Secretary may use the funds in the Account less we meet all the needs in rural for the following rural development activi- 5 years. ties authorized in: ‘‘(iv) MATCHING FUNDS.—As a condition of America—not just the real and press- ‘‘(A) The Housing Act of 1949 for— receipts under this paragraph, the Secretary ing needs of our farmers—then we will ‘‘(i) direct loans to low income borrowers shall require the funding of the grant with have done a disservice to rural Ameri- pursuant to section 502; equal matching funds from a non-Federal cans. We must take this opportunity to ‘‘(ii) loans for financial assistance for hous- source if the grant is— invest in meeting the needs agriculture ‘‘(I) for applied research that is commod- ing for domestic farm laborers pursuant to will have to address to stay competi- section 514; ity-specific; and ‘‘(iii) financial assistance for housing of ‘‘(II) not of national scope. tive and provide our citizens—and mil- domestic farm labor pursuant to section 516; ‘‘(v) ADMINISTRATIVE COSTS.— lions around the world—with an abun- ‘‘(iv) grants and contracts for mutual and ‘‘(I) IN GENERAL.—The Secretary may use dant, affordable food supply. self help housing pursuant to section not more than 4 percent of the funds made I reserve the balance of my time. 523(b)(1)(A); and available under this paragraph for adminis- Mr. LUGAR. Mr. President, on our ‘‘(v) grants for Rural Housing Preservation trative costs incurred by the Secretary in side of the aisle we share the need for pursuant to section 533; carrying out this paragraph. a very, very, strong agriculture devel- ‘‘(B) The Food Security Act of 1985 for ‘‘(II) LIMITATION.—Funds made available loans to intermediary borrowers under the under this paragraph shall not be used— opment program. I have confirmed Rural Development Loan Fund; ‘‘(aa) for the construction of a new build- with the distinguished Secretary of Ag- ‘‘(C) Consolidated Farm and Rural Devel- ing or the acquisition, expansion, remodel- riculture, even again this morning, opment Act for— ing, or alteration of an existing building (in- about the multiple uses of that money S 1030 CONGRESSIONAL RECORD — SENATE February 7, 1996 in our rural areas, including agricul- Mr. GREGG. Mr. President, I send an The benefits of this program run to a tural research, as well as sewer and amendment to the desk. very small number of people. In fact, water grants. The PRESIDING OFFICER. The there is one sugarcane grower who gets I think it is an important initiative. clerk will report. about $60 billion a year. About 50 per- It is one that has been extremely im- The bill clerk read as follows: cent of the benefit of the program as it portant, President Clinton’s priorities The Senator from New Hampshire [Mr. affects sugarcane growers runs to and the Secretary of Agriculture’s pri- GREGG], for himself, Mr. REID, Mr. about 17 sugarcane growers which has orities, but equally important on our SANTORUM, Mrs. FEINSTEIN, Mr. CHAFEE, and been represented to us; whereas the side of the aisle throughout the years Mr. KERRY, proposes an amendment num- bered 3450 to amendment No. 3184. detriment to this program runs to in hearings we have held and work we every American who has to pay an out- Mr. GREGG. Mr. President, I ask have done in agriculture development. rageous, inflated, arbitrary nonmarket unanimous consent that reading of the Therefore, I share in supporting the price for sugar. amendment of the distinguished Sen- amendment be dispensed with. Not only does the program have a de- The PRESIDING OFFICER. Without ator from Kentucky. I am hopeful it bilitating effect on our consumers, but objection, it is so ordered. it has a negative impact on our inter- might have unanimous passage. The amendment is as follows: Mr. LUGAR. I am prepared to yield national relations because our sister Notwithstanding any other provision of back time on our side unless other Sen- this Act, none of the provisions dealing with States who want to produce this prod- ators wish to address the issue. or extending the Sugar Price Support Pro- uct cannot produce it and sell it to the Mr. FORD. I am perfectly willing to gram shall be enforced. United States, specifically, our Carib- yield back my time, and if there is no Mr. GREGG. As I understand, I now bean neighbors. And it is having a sig- objection, we can pass the amendment. control 15 minutes and someone in op- nificant environmental impact in Flor- I yield back my time, Mr. President. position controls 15 minutes. ida where sugarcane production, which Mr. LUGAR. I yield back our time. The PRESIDING OFFICER. That is has been arbitrarily increased as a re- The PRESIDING OFFICER (Mr. correct. sult of this subsidy, is having a dra- CAMPBELL). The question is on agreeing Mr. GREGG. Mr. President, I yield matic impact on the viability of the to the amendment. myself 5 minutes. Everglades. So the program itself The amendment (No. 3449) was agreed Mr. President, what this amendment makes no sense. There will be a rep- to. does is address the sugar program. The resentation on the other side the pro- Mr. FORD. I move to reconsider the sugar program has been an item of con- gram has been changed. That is not vote. siderable controversy here in the Sen- true. As a practical matter, the pro- Mr. LUGAR. I move to lay that mo- ate and in the House and in the farm gram may have been changed super- tion on the table. program generally. ficially, but the substantive effect of The motion to lay on the table was The sugar program is, in my opinion, the program has not been changed. The agreed to. an outrage. I have said that a number bottom line question is: How much will MODIFICATION TO AMENDMENT NO. 3444 of times on the floor of this Senate. It sugar cost in the marketplace in the Mr. LUGAR. I ask my amendment is a subsidy program where the con- United States? Well, there is not a now be the pending business, and I send sumers of this country are asked to marketplace, really. It will cost about a modification of my amendment to pay somewhere between $1.5 and $2 bil- twice the rate it would cost in the the desk. lion of additional costs for sugar used world market under the changes. There The PRESIDING OFFICER. Without in this country in order to benefit a will continue to be an inflated and sub- objection, it is so ordered. few growers. sidized sugar program under the pro- The modification is as follows: It does not directly cost the Federal posal in this bill. Government any money. It does, actu- On page 1–3, strike lines 5 through 14. So why the 7-year extension? It ally, cost money in the products we comes down to what is called greed, Mr. LUGAR. Mr. President, I know of buy that are sugar related, but it is not pure and simple greed. The fact is, peo- no objection to my amendment. I ask a dramatic amount of money. What it ple know they cannot defend the sugar the amendment be agreed to. is, essentially, is a tax on the consum- program. They know if they did not The PRESIDING OFFICER. The ers of this country in the form of the stick it on this bill and bury it in the question is on agreeing to the amend- price for sugar, which greatly exceeds bowels of this bill, it would never sur- ment. what the world market price is for vive the light of day. Even Johnny The amendment (No. 3444), as modi- sugar. Cochran could not defend this program fied, was agreed to. In fact, if you look at the sugar pro- before a jury of fair arbiters. The fact Mr. FORD. I move to reconsider the gram honestly, it is the only surviving is, this program is a pure and simple vote. element of Marxist economics in the robbery of the American consumer for Mr. LUGAR. I move to lay that mo- Western Hemisphere outside of Cuba. It the benefit of a very small number of tion on the table. is a program totally dominated by the producers. The motion to lay on the table was Government, where the Government Here we are, the center of capitalism agreed to. sets the price, where the price is set in in this country, rejecting the whole AMENDMENT NO. 3450 TO AMENDMENT NO. 3184 a manner which has no relationship to concept of capitalism, having a pro- (Purpose: To strike the section relating to the marketplace, where market force gram which basically eliminates the the sugar program) has no impact on the production of the marketplace. Mr. GREGG. Mr. President, may I in- sugar, and where, as a practical mat- Mr. President, I yield myself an addi- quire of the manager the present status ter, if the marketplace were allowed to tional minute. of the timeframe? I understand I have come into play, American consumers It says, the marketplace does not half an hour, but the vote is scheduled would save around $1.5 billion a year. have any bearing on how much you for 11:30. I ask, if it is agreeable to the Now, the amendment which I offer should pay for sugar but, rather, a few managers, that I be given my half hour does not repeal the sugar program. I powerful lobbyists should control how before the votes go forward. have offered it on behalf of myself and much you pay for sugar. It really is Mr. LUGAR. I ask unanimous-con- Senator REID from Nevada. The amend- outrageous. But, as I pointed out, even sent that the 30 minutes for debate ment that I have offered says, rather though I find the whole program unbe- originally agreed to in the unanimous than giving the sugar program, which lievable, especially in light of the fact consent request be in order and that is an outrage on its face, a 7-year ex- that the Republicans, who are sup- the vote occur at the end of that de- tension, we will only give it a 2-year posedly supporters and defenders of the bate of the Senator from New Hamp- extension. So we are essentially say- marketplace, control this Congress, I shire, which will be approximately 11:35 ing, listen, this program has enough find it unbelievable we are continuing a.m. problems so that it ought to be re- this program. Our amendment, as sup- The PRESIDING OFFICER. Without viewed on a fairly regular basis. It ported by the Senator from Nevada, objection, it is so ordered. should not be extended for 7 years. does not terminate the program. It February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1031 simply takes it from a 7-year program revisions in this program, and I hope form. In working with my growers and to a 2-year program. That is still too the Senator from New Hampshire will working with the sugar beet industry long, but it seems to be a reasonable listen this morning, because, if he was and the cane industry, we said—myself attempt at compromise. like many Americans who sat down in and Senator BREAUX from Louisiana, Mr. President, I reserve the remain- a restaurant this morning to eat some with whom I have worked on this—we der of my time. cereal for breakfast, they reached out cannot accept business as usual. The The PRESIDING OFFICER. Who and, for no cost to them, picked up a Congress is changing. We want to yields time? The Senator from Ver- packet of sugar and spread it upon change farm programs, and you have to mont. their cereal. They did not pay a dime farm to a market. And they said they Mr. LEAHY. Mr. President, how for it or a dollar for it. The sugar price will. much time is available on this side? is such that it was a service provided What we also said is that we will not The PRESIDING OFFICER. Fifteen by the restaurant. Why? Because the allow the massive dumping of foreign minutes. sugar price in America today, in a re- sugar in this market that is produced PRIVILEGE OF THE FLOOR tail market, per pound is about 39 at little to no cost, oftentimes sub- Mr. LEAHY. First, Mr. President, I cents. In Japan it is $1. In Norway it is sidized, sometimes by $1 a day labor. ask unanimous consent that Dr. Kate 70 cents. In Switzerland it is 55 cents. But that is what the large consumers DeRemer have the privilege of the floor Of the 20 developed countries of the of sugar want so their profits expand. throughout the debate and votes today. world, we are the third from the bot- But what they pass to the consumer The PRESIDING OFFICER. Without tom in the price of sugar. will be not one dime of savings. They objection, it is so ordered. Why, then, is this Senator saying have openly admitted that after they Mr. LEAHY. Mr. President, I yield a that consumers are getting ripped off, spent millions of dollars in the tele- minute—I yield such time as he needs that consumers are paying billions of vision markets of this country trying to the Senator from Georgia. dollars for this program when in fact to convince us there was some kind of The PRESIDING OFFICER. The Sen- they are paying less than almost any a ripoff. This is not a ripoff. This is a ator from Georgia [Mr. NUNN] is recog- other country in the world except program of reform that does not cost nized. Third World nations where near slave the American taxpayer one penny. AMENDMENT NO. 3225 labor produces it? I believe it saves them money by cre- Mr. NUNN. Mr. President, first, I What we have today is a program ating a stable market. So that the Sen- would like to associate myself with the that we are offering in this legislation ator from New Hampshire, or the Sen- remarks made by the Senator from that responds to what the Senator ator from Pennsylvania, or this Sen- Alabama [Mr. HEFLIN] the Senator from New Hampshire was saying, and ator can reach out in a restaurant, from Georgia [Mr. COVERDELL] and oth- the Senator from Pennsylvania, and pick up a pack of sugar for no cost to ers opposing the Santorum amendment others. Reform needs to be offered to them, and spread it across their cereal on the peanut program. I will summa- agricultural programs built within the like thousands of Americans do every rize my remarks in about 20 seconds in farm bill. What did we do? We elimi- day. It sounds like a good buy to me. I the following points. I oppose the nated market allotments. No more do- think it is a great buy to the taxpayer. Santorum amendment for three basic mestic supply control. Any farmer can I hope the Senate will reject this reasons. raise cane or any farmer can raise amendment. First, even without the reforms in- sugar beets. We do not restrict the Mr. LEAHY. Mr. President, I yield 5 cluded in S. 1541, the peanut program is market. We eliminated the 1 cent pen- minutes to the Senator from Hawaii. already one of the least expensive Fed- alty, effectively lowering the loan rate The PRESIDING OFFICER. The Sen- eral commodity programs. Under S. an additional penny. What is real sav- ator from Hawaii is recognized for 5 1541, it will be a no cost program. So ings? What do we do? Also, by the as- minutes. this bill without the Santorum amend- sessment, we raise $300 million for defi- Mr. AKAKA. Mr. President, I thank ment represents fundamental changes cit reduction. the ranking member for yielding to in the peanut program. Then why do we still have a pro- me. Second, the Santorum amendment gram? We have a program to create a Mr. President, as I listen to all the does not recognize the evolutionary level playing field for the 1,900 farm evils that are being attributed to the changes in the peanut program which families in my State, not a few rich sugar program during today’s debate began with competition from GATT producers, but 1,900 farm families who on the Senate floor, I hardly recognize and NAFTA. The peanut title reforms raise sugar beets, who have found that the tiny white crystals that sweeten included in S. 1541 reflect the inevi- an extremely valuable program. my cereal each morning. table fact that peanut producers in this What this program, then, offers is a Sugar is an essential element of country are going to have to compete Government participation in allowing human nutrition. It is also the least in the international market by reason a flow of foreign raw commodity into expensive food item you will find in an of those agreements. the market to balance out domestic American kitchen. When you go to a Third, even those who support chang- production. The 7.5 cents that might be restaurant, there are only two things ing the peanut program, in my opinion, saved if the Senator from New Hamp- available at no charge and in an unlim- should oppose the Santorum amend- shire succeeds will not be passed on to ited quantity: water and sugar. Yet on ment. The Santorum amendment does the consumer. That is 7.5 cents a the Senate floor, sugar is the most ma- not give peanut producers or the rural pound. It will not be passed on to the ligned commodity grown in America. communities which depend so much on consumer. It will go in the pocket of Despite all the criticism being cir- the peanut program the time to adjust the large producers of candy and soft culated by corporate food processors at all. drinks. That would be fine if it did not that are trying to put American sugar I urge my colleagues to oppose the destroy the market and the production farmers out of business, sugar is one of Santorum amendment. environment for the domestic pro- the best bargains you will find at the AMENDMENT NO. 3450 ducer. grocery store today. A pound of refined Mr. LEAHY. Mr. President, I yield 5 What happened in 1974 without a sugar costs 39 cents. minutes to the Senator from Idaho. sugar program? The price of sugar was But consumers elsewhere around the The PRESIDING OFFICER. The Sen- not 39 cents a pound, it was 60 cents a globe do not enjoy the same low prices ator from Idaho [Mr. CRAIG] is recog- pound. We saw radical gyrations in a as consumers in America. If you visited nized for 5 minutes. market that nearly destroyed the pro- the grocery store in other industri- Mr. CRAIG. Mr. President, I stand in duction unit of American sweetener, alized nations you would get sticker opposition to the amendment that my both in the cane and the sugar beet shock when you came to the sugar dis- colleague from New Hampshire has of- market. play. In Tokyo, consumers pay nearly fered this morning. What we have offered is stability, but 90 cents for a pound of sugar, more Let me say at the outset, I ain’t no we also have heard the Senator from than double the U.S. price. In Europe, Johnny Cochran, but I can defend the New Hampshire. We also offered re- prices average 50 to 70 cents per pound. S 1032 CONGRESSIONAL RECORD — SENATE February 7, 1996 Among developed countries, the aver- finery was not an isolated case and Sugar Co. in Crockett, CA. This 90- age retail price for a pound of sugar is that other refineries in Baltimore, MD, year-old cane sugar refinery is the Na- 54 cents, which is a premium of 38 per- and Brooklyn, NY, have been closed tion’s largest and the only such facility cent compared to the U.S. price. And several times during the past year for on the west coast. C&H Sugar refines what do these consumers get for the the same reason—no sugar. all the sugar produced in Hawaii, as premium price they pay? Nothing. Mr. President, the sugar program is well as some imported raw cane sugar They get the same 1-pound box of sugar complex. Under current law, the Sec- brought in under the quota. C&H Sugar as we do in America, but they pay sub- retary of Agriculture is required to refines and distributes about 15 percent stantially more for it—38 percent more. provide price supports to growers of the cane sugar consumed in the Thanks to a farm program that through nonrecourse loans to proc- United States. assures stable supplies at reasonable essors, and to do so at no cost to the As a direct result of the sugar pro- prices, sugar is a remarkable bargain Federal Government. To accomplish gram and its impact on imports, C&H for American consumers. U.S. consum- this objective, the Secretary uses an Sugar lost about $13 million in 1994 and ers pay an average of 17 cents less per elaborate supply management scheme incurred operating losses of about $23 pound of sugar than their counterparts that includes production and market- million in 1995. in other industrialized nations. That is ing allotments and strict import con- In 1981, C&H Sugar had 1,313 employ- a savings of $1.4 billion annually. So trols. ees. Today C&H Sugar has 582 employ- there is no doubt about one thing: the As currently administered, the sugar ees. In other words, since 1981, over 700 sugar program is a great deal for Amer- program has caused serious financial jobs at C&H Sugar have been lost. Two ican consumers. By any measure, the stress on a major segment of the U.S. hundred-six of these jobs were lost in sugar program has guaranteed U.S. sugar industry. The Secretary’s initial January. More drastic measures are in- consumers a stable supply of sugar at decision to restrict import imports of evitable unless fundamental changes bargain prices. raw cane sugar to the minimum al- are made in the sugar program. I urge my colleagues to reject this lowed by law so distorted the price re- Mr. President, the job losses at this amendment. If Congress reduces or ter- lationship between raw cane sugar and refinery are significant. These are good minates the sugar program, not only refined white sugar that all U.S. cane blue-collar jobs, predominantly union, will a dynamic part of the economy refiners experienced severe operating with heavy minority employment. C&H disappear from many rural areas, but losses for the past 2 years. The in- Sugar’s work force is 50 percent minor- consumers will also lose a reliable sup- creases in the quota announced by the ity and 75 percent union members. C&H ply of high-quality, low-price sugar. I Secretary of Agriculture last fall and Sugar pays wages of $13.50 to $24 an urge my colleagues to vote against the last month are steps in the right direc- hour, plus benefits, pension, and medi- Reid-Gregg amendment. tion, but the industry has not yet re- cal coverage for retirees. In most cases, I am dumbfounded by the arguments covered. these workers are not going to be able of sugar opponents that the changes As I understand it, the fundamental to duplicate these jobs. recommended by the Senate Agri- problem with the administration of the More recently, in January, Imperial culture Committee are inadequate. If sugar program is the complete dis- Holly Corp. announced its agreement anything, the reforms go too far. Cane regard of the relationship between raw to purchase of three of Spreckles Sugar sugar growers in my State will barely cane sugar prices and refined beet and Co.’s beet sugar processing plants in recognize the sugar program if the Sen- cane sugar prices. California and plans to close all three ate bill becomes law. Present Government policy inflates facilities and consolidate operations at The Senate bill eliminates marketing raw sugar prices to unreasonable levels existing Holly facilities in California. controls, eliminates minimum price by restricting raw sugar imports. This will result in a further loss of guarantees, and increases sugar im- High price supports encourage excess hundreds of sugar related jobs in Cali- ports by 20 percent. Growers will pay a beet production which, in turn, de- fornia. 1-cent-per-pound penalty when they presses refined sugar prices. Given the problems facing the sugar forfeit sugar, which amounts to a cut As a result, the normal economic re- industry right now, I cannot support an in the loan rate. Finally, all beet and lationship between raw and refined extension of the current sugar program cane sugar growers will face a 25-per- sugar prices no longer exists. for 7 years as provided in this bill. cent increase in fees paid to the Fed- Raw costs have exceeded refined Mr. MOYNIHAN. Mr. President, I rise eral Government to market sugar. The prices so that cane refiners can no in enthusiastic support of the amend- only thing that has not changed is the longer recover their refining costs in ment offered by Senator GREGG and requirement that the program operate the marketplace. Senator REID to phase out sugar price at no cost to the taxpayer. And cane refiners have been forced to supports over 2 years, rather than 7, The committee bill contains real re- sell their production at a substantial which is the provision in the underly- form. For sugar farmers in Hawaii and loss. ing bill. on the mainland these reforms will be If continued as currently adminis- First, let me point out that sugar painful, so painful that a number of tered, the Government’s sugar program price supports are set to expire in 2 them will not survive. I urge my col- will destroy the cane sugar refinery in- years under current law. So the pend- leagues to oppose deeper cuts than dustry and seriously threaten the sta- ing amendment merely maintains the those proposed by the committee. bility of the Nation’s sugar supply. status quo. Under freedom to farm, the Mrs. FEINSTEIN. Mr. President, I Cane sugar refiners have a vital role sugar price support program receives a rise in support of Senator GREGG’s to play in the U.S. sugar industry. 5-year reprieve. And the underlying bill amendment to delete the sugar pro- They provide over half of the refined contains a powerful incentive to hold gram from this bill. sugar consumed in the United States raw sugar imports at 1.5 million tons, Mr. President, California has not under normal circumstances. some 25 percent below current levels. If fared well under the current sugar pro- Only cane refiners have the capabil- the Gregg-Reid amendment is not gram. Beet sugar production has de- ity to supply sugar when domestic adopted, I predict the domestic cane clined markedly and the west coast’s sugar production is adversely impacted sugar refining industry will virtually only cane sugar refinery, located in by weather or other disruptions. disappear. Crockett, CA, has suffered severe finan- Since the sugar program was put in The Federal sugar price support pro- cial losses. As a result, California has place in 1981, 11 of the industry’s 22 gram properly belongs in Cuba, not in lost several hundred sugar-related jobs cane refiners have closed. The Govern- a free market economy. It is a carica- in the past year alone. ment should not be in the business of ture of how a farm program ought to In November, I learned that the cane deciding who is a winner and who is a work. The program is cleverly designed sugar refinery in California was forced loser in the sugar business. to operate at little or no direct cost to to cease operation for a week because Of immediate concern in my State is the Federal Government. The Depart- it ran out of sugar. I have since learned the damage the sugar program has in- ment of Agriculture [USDA] provides that the closing of this California re- flicted on the California and Hawaiian nonrecourse commodity loans to sugar February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1033 growers. If raw sugar prices fall below amendment to eliminate the sugar the Senate he has been trying to do the loan rate currently 18 cents per title in this bill. away with this program that I think is pound—the growers simply default on As a Senator from a State which is one of the most absurd programs we the loan and forfeit the sugar they put home to a major sugar refinery—the have anyplace in Government. up for collateral. To prevent loan for- Domino refinery in Baltimore which Mr. President, we talk a lot about re- feitures from occurring, USDA sets provides over 600 jobs—I will not sup- forming welfare. I think where we very tight import quotas and domestic port a bill which threatens their future should start reforming welfare is right producer allotments which limit supply existence. here. We should reform welfare as we and drive prices above the loan rate. This bill is a bad deal for Domino and know it, and that is the sugar program As a result of this program, at 22 to other refineries. It threatens the liveli- which is one of the biggest welfare pro- 25 cents per pound, domestic prices for hoods of thousands of American work- grams in the history of the country, if raw sugar are about twice world mar- ing families—at refineries not only in not in the history of the world. ket prices. Domestic cane refiners, Baltimore, but also in New York, in Mr. President, this program is a pro- such as Domino of Brooklyn and Re- California and elsewhere. gram that does not benefit farmers. I fined Sugar of Yonkers, pay more for Too often, the sugar program squeez- repeat this is no help to the family raw material acquisition and refining es refineries between artificially high farmer. than they are able to receive for their raw cane sugar prices and low supply. Seventeen cane growers get 58 per- finished product. Domestic food proc- The sugar program in this bill will cent of the benefit available to all cane essors and confectioners lose market worsen the problem. growers. One cane grower received share to foreign competitors who pur- Almost half of American sugar cane more than $65 million in 1 year alone. chase their sugar supply on the world refineries have gone out of business. Thirty-three growers received benefits market. The Federal Government pays Those refineries still in operation have of over $1 million a year each. In Flor- higher prices about $90 million annu- faced temporary closures again and ida, two growers account for 75 percent ally, for products it purchases for nu- again. These disruptions create eco- of the production in that State which trition programs. And consumers pay nomic hardships for workers and dis- produces huge amounts of sugar. $1.4 billion more than they need to for rupts production schedules. The GAO concluded a study which sugar and products containing sugar, To give our refineries some relief, I said that the benefits going to growers according to the General Accounting offered an amendment called the Emer- are concentrated among a relatively Office. gency Sugar Refiner Relief Act which few. And that is an understatement. Since the mid-1980’s, the number of requires the Secretary of Agriculture Mr. President, 42 percent of grower cane sugar refineries nationwide has to increase imports of raw cane sugar if benefits went to 1 percent of all sugar declined from 22 to 11. Fifteen hundred the price of raw cane sugar exceeds 120 farms. The sugar cane industry is espe- jobs have been lost in the refining in- percent of the loan rate. My amend- cially concentrated with 17 of the esti- dustry just in the last 5 years; capacity ment would have prevented refineries mated 1,705 cane farms—about 1 per- has been reduced by 40 percent. Domino from future closings due to artificially cent—receiving almost 60 percent of all has been forced to close its Brooklyn high raw cane prices. Unfortunately, cane grower benefits in 1991. This is and Baltimore refineries six times in my amendment could not be accepted corporate welfare at its worst. the past year because of raw cane sugar today but I will keep fighting for it at The Government-run sugar cartel ar- shortages. every opportunity. tificially keeps sugar prices high. The What is particularly galling about It is outrageous that our sugar pro- General Accounting Office estimates the situation is that the refinery jobs gram has to pit growers against refin- that because of this program U.S. are good-paying jobs located in inner ers. There is no reason why our refiners sugar prices are twice as high as world cities and around dockyards where have to be left out of the sugar pro- prices. Because of a Government heavy other employment opportunities are gram, threatening the future of this in- hand in setting sugar prices, American scarce. Moreover, the sugar program is, dustry. consumers are paying about $1.5 billion perhaps, more distorted than any other Mr. President, I will not support leg- every year in higher food costs. This farm program in sending enormous islation that threatens the jobs and adds up to a hidden tax of over $10 bil- benefits to the few largest producers. livelihoods of hundreds of workers in lion over the last decade. The top 1 percent of sugar growers, Baltimore. The sugar program con- The big sugar lobbies’ contention about 150 farms garner 42 percent of tained in this bill is simply bad policy that they are going to lose jobs is sim- program benefits in the form of higher and there is no excuse for it. ply without any foundation. prices. The largest 33 producers each I will continue to fight for the work- I repeat. This is a program that bene- receive over $1 million annually. The ers at Domino and the rest of the refin- fits the wealthy, and just a few Fanjul brothers, who farm 180,000 acres ing industry. For this reason, I strong- wealthy farmers. It does not help the of cane in Florida, receive some $64 ly support the Gregg amendment. family farms. million annually. The Fanjuls, whose Mr. LEAHY. Mr. President, how It really hurts the American family dominated sugar production in much time remains? consumer. Take for example, Bobs Cuba before Fidel Castro took over in The PRESIDING OFFICER. The Sen- Candy of Albany, GA, the Nation’s 1959, are not even United States citi- ator from Vermont has 3 minutes and largest manufacturer of candy canes— zens. All sugar producers receive price 47 seconds, and the Senator from Indi- the things with the little crook that we and income supports wildly dispropor- ana has 9 minutes. put on our trees at Christmas. They are tionate to the Federal support received Mr. GREGG. Mr. President, I yield 7 not going to be able to compete much by other farmers. USDA estimates that minutes to the Senator from Nevada. longer with the Canadian competitors sugar price and income supports aver- The PRESIDING OFFICER. The Sen- because of their significantly lower age $472.30 an acre. Corn is supported at ator from Nevada is recognized for 7 cane sugar prices in Canada. If this the rate of about $33.60 per acre; wheat minutes. sugar program is extended, Bobs of Al- is supported at $23.40. Mr. REID. Mr. President, I initially bany, GA, and hundreds of other manu- Most important, Mr. President, is the say that I very much appreciate the facturers will be forced to move their fact that the artificially high price for leadership on this amendment offered operations overseas where they can get sugar acts as a very regressive tax on by the Senator from New Hampshire, cheap sugar. And it would eliminate low-income consumers. We committed and I appreciate the Senator from New thousands of jobs. ourselves to phasing out sugar price Hampshire’s leadership in that I have While this program has been doing supports when we passed the 1990 farm seen him work on this issue when he great, other farm programs have been bill. We ought to stick to that commit- was a Member of the House of Rep- on a downward path. The sugar pro- ment. I urge the adoption of the pend- resentatives. I know that his heart was gram has stayed very stable. It is wel- ing amendment. there when he was Governor of the fare I repeat at its worst. The sugar Ms. MIKULSKI. Mr. President, I rise State of New Hampshire, and certainly program has remained virtually un- in strong support of the Gregg-Reid for all of the time that he spent here in touched from the last two farm bills S 1034 CONGRESSIONAL RECORD — SENATE February 7, 1996 while other farm programs have faced in the 1980’s as a result of this sugar Mr. GREGG. Does the Senator from reductions and many reforms. program and the high cost of sugar Vermont have a closing statement? I The environmental consequences of that they had to deal with—1,500 jobs would like to maintain the right to the sugar program is that cane farming in the city of Philadelphia gone as a re- close. is destroying the environment. Take, sult of this program. Mr. LEAHY. I yield to the Senator for example, what it is doing to the Ev- I hear so much about these small from Idaho. erglades in Florida. family farms. I am for small family The PRESIDING OFFICER. The Sen- The sugar program is big government farmers. What about families who work ator from Idaho. at its worst. It sets prices, it controls in these refineries that are going out of Mr. CRAIG. Mr. President, a GAO imports, and it distributes benefits. business, like the ones that are threat- audit was done of this program several We should support this amendment. ened in Georgia and in Maryland and in years ago. The Senator from New It would be good government to do so. other places around this country be- Hampshire has quoted from that as to Mr. LEAHY. Mr. President, how cause of this sugar program? Let us not impact on consumers. Let me put in much time does the Senator from Ver- just look to the farmers. Let us look to the RECORD a letter from the Depart- mont have remaining? the workers who want to have jobs ment of Agriculture, the Under Sec- The PRESIDING OFFICER. The Sen- processing this sugar and confectioners retary for Farm and Foreign Agricul- ator has 3 minutes and 47 seconds. who want to use this sugar instead of tural Services, saying that the GAO Mr. LEAHY. Mr. President, I yield having to send those jobs to Canada or used a totally faulty basis from which 11⁄2 minutes to the Senator from North Mexico where they can buy cheap sugar to calculate it. This letter refutes the Dakota. and cheap peanuts and other things very figures that are being used by the Mr. DORGAN. Mr. President, there they use in making candy. Senator, and it is important that be a are many farm programs that have not Those are the kinds of issues we part of the record. worked very well. Most of us have un- should be looking at, not just one seg- This is the Department of Agri- derstood that, and we have debated ment of the matter. culture that analyzes and monitors what might make them work better. The PRESIDING OFFICER. The Sen- this, saying the wrong premise was However, the sugar program is one that ator’s 1 minute has expired. used; therefore, the wrong figures, and works. Who yields time? in fact this might be a net savings to I represent the Red River Valley area Mr. LEAHY. Mr. President, I yield consumers instead of a cost because of 1⁄2 minutes to the distinguished Sen- of North Dakota, and others represent 1 the stability of the program itself. the Red River Valley area of Min- ator from Louisiana. The PRESIDING OFFICER. All time The PRESIDING OFFICER. The Sen- nesota. It is dotted with hundreds and in opposition has expired. ator from Louisiana is recognized for hundreds of family farmers who raise Does the Senator want that letter in- 11⁄2 minutes. cluded in the RECORD? sugar beets. Mr. BREAUX. I thank the Senator. I The sugar program does work. In- Mr. CRAIG. I do. will make a couple points. There being no objection, the letter stead of trying to figure out how you There will be some people in the was ordered to be printed in the take apart a program that works in the country who will never be satisfied RECORD, as follows: farm program, we ought to decide how until they can just about get free sugar to make the other programs work bet- to make all the products they make DEPARTMENT OF AGRICULTURE, ter. The sugar program ought to be a and thereby destroy the domestic in- OFFICE OF THE SECRETARY, model. Washington, DC, October 24, 1995. dustry. Hon. PATSY T. MINK, Now, I hear people talking about the We have over 700 small family farms world price for sugar. That is a dump House of Representatives, Rayburn House Office that produce sugar in Louisiana that Building, Washington, DC. price. Most sugar in this world is trad- are dependent on this program. This DEAR CONGRESSWOMAN MINK: Thank you ed on long-term contracts country to program that we bring to the floor for your letter of July 26, 1995, concerning country. The dump price, which people today has a number of significant re- the General Accounting Office (GAO) report have been describing, is not related to forms. There is major change in the that stated that the U.S. sugar program this debate at all. The sugar program program. But this side, some of them costs domestic users and consumers an aver- provides stable prices and has always age of $1.4 billion annually and GAO’s July want to kill the entire program. Under 1995 analysis that the sugar program cost the provided stable prices for consumers this bill, there are now going to be no and fair prices for producers. Every Government an additional $90 million in 1994 limits on how much domestic produc- for its food purchase and food assistance pro- farm program ought to be as successful tion of sugar can occur in the United grams. as this one is. States. If you want to plant more, go In my opinion, GAO’s April 1993 report was This is a success story in dozens of ahead. That is what this new program flawed in its estimates. Some data were used ways, and we ought not take it apart. says. There is going to be no guaran- incorrectly and important data and sugar I know people are talking about big ag- teed minimum price under the reforms market issues were not considered. Based on ribusinesses. I am talking about family GAO’s methodology, but by selecting prices that are being presented here today. in different time periods, the results are farmers dotting the prairies out there We also have a program that is guar- in the Red River Valley of North Da- more ambiguous. Depending on the time- anteed to operate at no cost to the frame, one may contend that the domestic kota who operate successfully as a American taxpayer. What other pro- sugar program either costs or benefits U.S. family farm under this sugar program. gram in this country can operate at no users and consumers. I hope this Senate will turn down this cost to the taxpayer? There is none, GAO’s estimate of $1.4 billion annually was amendment. whether it is in health care or whether based on an assumption of a long-run equi- The PRESIDING OFFICER. Who it is in other farm programs. This is librium world price of 15.0 cents per pound of yields time? raw sugar if all countries liberalized sugar the only one. You have heard these ar- trade. GAO added a transportation cost of 1.5 Mr. GREGG. Mr. President, I yield 1 guments about how much sugar costs minute to the Senator from Pennsylva- cents per pound of raw sugar to derive a and how expensive it is. I do not think landed U.S. price (elsewhere in the report nia. any of us has ever had a housewife say GAO stated that the transportation cost ad- The PRESIDING OFFICER. The Sen- anything about sugar costs in her justment should be 2.0 cents per pound.) To ator from Pennsylvania is recognized budget. It is still the only product that derive a world price of refined sugar of 20.5 for 1 minute. they want to give away. cents per pound, GAO added a refining spread Mr. SANTORUM. I thank the Senator The PRESIDING OFFICER. The Sen- of 4.0 cents per pound. from New Hampshire. GAO compared its constructed U.S. sweet- ator’s time has expired. ener price with its derived world price. How- Comments were made that this pro- Who yields time? gram is good for consumers. I do not ever, GAO constructed the U.S. price for the Mr. GREGG. Mr. President, how 1989–1991 period during which 1989 and 1990 think higher prices are good for con- much time remains on both sides? were unusually high price years for U.S. re- sumers. I can tell you one thing. It is The PRESIDING OFFICER. The Sen- fined sugar. This exaggerated the difference not good for workers. We had two sugar ator has 2 minutes 48 seconds. The Sen- between the so-called world derived price refineries in Philadelphia that closed ator from Vermont has 15 seconds. and the U.S. sweetener price. By selecting a February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1035 period of world price spikes, such as 1973– We are saying just hit them for 2 to meet that price. If you can imagine, 1975, GAO’s analysis would show an annual years, just hit them for 2 years. And this is not the way we conduct the savings to domestic users and consumers of then let us go back and look at the pro- American economy. No State would $350 to $400 million. Clearly, the expected world price of raw gram again. We are not saying elimi- like to be the subject of that kind of a sugar with global liberalization is critical to nate the program. We are saying just restriction. It would allow other States any analyses of the effects of the U.S. sugar do not be greedy. Be reasonable. Give at other times to come to Congress and program. In 1993, the Australian Bureau of us a 2-year extension instead of a 7- ask for permission to set prices. We do Agricultural and Resource Economics year extension. not set prices in this country. We allow (ABARE) estimated that sugar trade liberal- But what would be wrong with elimi- commerce to proceed in a competitive ization in the United States, European nating the program? The idea was you way. The Northeast area compact is Union, and Japan alone would result in an specifically an action to prevent that. average world price of 17.6 cents per pound of would get free sugar; we are not going raw sugar—2.6 cents per pound higher than to be happy until we get free sugar. We The proponents will say that we GAO’s derived world price. do not want free sugar. What we want voted 65 to 35 for this. We have not Based on the ABARE analysis and using a is prices set by the marketplace. This voted 65 to 35 for this before. The pre- transportation cost of 1.75 cents per pound, is called capitalism. It is the concept of vious vote was on several different pro- which more accurately reflects global trans- Adam Smith, comparative advantage. visions on a much broader agricultural portation costs to the United States, plus a amendment. It was not an up-or-down refining spread of 4.27 cents per pound Those are things Republicans used to stand for. They happen to be things vote on the Northeast area compact. It (Landell Mills Commodities Studies, Incor- is bad policy for this Congress, and I porated), a world price of refined sugar is es- this country was built on. They are urge my colleagues to vote in favor of timated at 23.6 cents per pound. Based on things which should be returned at the motion to strike the amendment. this world price estimate and an average some point in the sugar program. We U.S. sweetener price over 1992–1994, a more The PRESIDING OFFICER. The Sen- are not asking they be returned today. ator’s 1 minute has expired. normal price period, it can be shown using All we are asking is that the sugar pro- GAO’s methodology, that there are no costs Who yields time? to domestic users and consumers. gram only be extended for 2 years in- Mr. LEAHY. Mr. President, I would The estimated effects of the U.S. sugar stead of 7 years—not an unreasonable strongly urge that the Senate vote as program are highly sensitive to expected request. it already has. We have, indeed, voted world prices if global sugar trade is liberal- Mr. President, I certainly thank the 65 to 34 in favor of this compact. I ized. GAO’s analysis, in my judgment, does Senator from Nevada for his support would explain that was the vote on the not adequately consider the complexities and the other Senators who cospon- compact before. This is something that and dynamics of the U.S. and global sugar sored this amendment. And I hope that markets. involves only the Northeast. It affects With respect to the effects of the U.S. others will join us in putting a 2-year dairy only in the Northeast. sugar program on Government costs of its extension in place instead of a 7-year It is a compact carefully set up where food purchase and assistance programs, an extension in place for a program which consumers and farmers work together, independent analysis by the Economic Re- should not be extended at all. where consumers actually have a veto search Service (ERS) estimates the cost at Mr. DORGAN addressed the Chair. over any price increase. I hope that we $84 million based on the difference between The PRESIDING OFFICER. The Sen- would allow the Northeast States to do U.S. and world refined sugar prices in 1994. ator from North Dakota. what their legislatures have joined to- However, just as for the GAO analysis, dif- ferent effects could be estimated by using Mr. DORGAN. Mr. President, I ask gether to do. other time periods when the price gap be- unanimous consent that following the I yield to the Senator from Vermont. tween U.S. and world prices was smaller. next Democratic amendment and the The PRESIDING OFFICER. The Sen- Moreover, with global liberalization, the intervening Republican amendment, ator from Vermont has 20 seconds. price gap would narrow because of the dy- Senator DASCHLE be recognized to offer Mr. JEFFORDS. Mr. President, all namics of adjustment which were not consid- his amendment. we are asking is that Vermont be al- ered in the ERS analysis. The PRESIDING OFFICER. Is there lowed to do what other States can do. Sincerely, objection? The Chair hears none, and it Big States can do it. California does EUGENE MOOS, the same thing we want to do. We Under Secretary for Farm and is so ordered. Who yields time? There are 17 sec- allow anybody to come in. If Minnesota Foreign Agricultural Services. or Wisconsin want to bring their milk The PRESIDING OFFICER. The Sen- onds remaining. Mr. GREGG. I yield back the rest of in, they can. There are no barriers. ator from New Hampshire. All we are trying to do is make sure Mr. GREGG. Mr. President, no my time. The PRESIDING OFFICER. The Sen- we protect the few farms that are left amount of smoke and mirrors here is tucked way up at the border of the going to obfuscate the basic fact that ator from Indiana. Mr. LUGAR. Mr. President, we are United States in the Northeast where you can go into the marketplace—in we have a very, very difficult time fact, it was quoted today on CNBC— coming now to the first vote, and the order is that each side have 1 minute of being able to buy our grains and all and buy sugar at 10 cents a pound on that. So we urge you to vote as you did the international market, but if you go explanation. The proponent of the amendment perhaps will proceed. last time, and that is against the out and buy it in the United States it amendment. will cost you 20, 21, 22 cents a pound. The PRESIDING OFFICER. The Sen- ator from Wisconsin. The PRESIDING OFFICER. The time That is because the difference goes to a has expired. All time has expired. AMENDMENT NO. 3442 few growers who have a hammerlock Under the previous order, the ques- on the political system. Mr. KOHL. I thank the Senator. The tion now occurs on agreeing to amend- And does it not cost the taxpayers first vote is on the Northeast area com- ment No. 3442 offered by the Senator pact. I ask unanimous consent that money? That statement was made—it from Wisconsin, [Mr. KOHL]. The yeas does not cost the American taxpayers Senator CARL LEVIN be added as a co- and nays have been ordered. The clerk money. Of course, it costs them money; sponsor. will call the roll. $1.5 billion a year in subsidy is carried The PRESIDING OFFICER. Without The assistant legislative clerk called by the American consumers in order to objection, it is so ordered. the roll. benefit 17 cane growers who get 42 per- Mr. KOHL. This is a very, very bad Mr. LOTT. I announce that the Sen- cent of the benefit, as the Senator from amendment. The amendment should ator from New Mexico [Mr. DOMENICI], Nevada so aptly pointed out. not go through. It is the Senator from Texas [Mr. GRAMM], The idea that we are presenting is anticonstitutional. It only can be au- and the Senator from Oregon [Mr. HAT- not to eliminate the program. We are thorized by Congress. It should not be FIELD] are necessarily absent. saying just do not extend it for 7 years. authorized by Congress. Mr. FORD. I announce that the Sen- Do not put this outrage on the back of It would allow six States to set the ator from New Jersey [Mr. BRADLEY] is the American consumers for 7 years, price of milk in their States and no- necessarily absent. which would cost approximately $20 body else would be allowed, no other The PRESIDING OFFICER (Mr. billion in subsidies having to be paid by State would be allowed to compete in DEWINE). Are there any other Senators the American consumer. that market unless they were prepared in the Chamber desiring to vote? S 1036 CONGRESSIONAL RECORD — SENATE February 7, 1996 The result was announced—yeas 50, The amendment, as modified, is as Mr. BROWN. That is correct. nays 46, as follows: follows: Mr. BUMPERS. And the amendment [Rollcall Vote No. 10 Leg.] At the appropriate place, insert the follow- also has a provision in it that it will YEAS—50 ing: only apply to renewal of permits and SEC. . CLARIFICATION OF EFFECT OF RE- Abraham Ford Nickles not new permits? SOURCE PLANNING ON ALLOCATION Mr. BROWN. That is correct. To that Bingaman Frist Nunn OR USE OF WATER. Brown Glenn Pressler end, we have dropped the provisions (a) NATIONAL FOREST SYSTEM RESOURCE Bryan Grams Pryor that dealt with the issuing and the Bumpers Grassley Reid PLANNING.—Section 6 of the Forest and Byrd Harkin Robb Rangeland Renewable Resources Planning granting. Campbell Hatch Rockefeller Act of 1974 (16 U.S.C. 1604) is amended by add- Mr. BUMPERS. I will not raise a Coats Hutchison Roth ing at the end the following new subsection: point of order, but would the Senator Conrad Inhofe Santorum ‘‘(n) LIMITATION ON AUTHORITY.—Nothing from Colorado join in requesting the Craig Kempthorne Simon in this section shall be construed to super- Senator from Idaho to hold a hearing Daschle Kerrey Simpson sede, abrogate or otherwise impair any right DeWine Kohl Specter or authority of a State to allocate quantities on this subject? I think it is a fairly Dole Kyl Thompson complicated thing that deserves a hear- Dorgan Lautenberg Warner of water (including boundary waters). Noth- Exon Levin Wellstone ing in this section shall be implemented, en- ing. Faircloth McCain Wyden forced, or construed to allow any officer or Mr. BROWN. I appreciate it. That is Feingold Moseley-Braun agency of the United States to utilize di- a valuable suggestion. I am happy to NAYS—46 rectly or indirectly the authorities estab- join the Senator. lished under this section to impose any re- The PRESIDING OFFICER. The Akaka Gorton Mack quirement not imposed by the State which question is on agreeing to the amend- Ashcroft Graham McConnell would supersede, abrogate, or otherwise im- Baucus Gregg Mikulski ment. pair rights to the use of water resources allo- Bennett Heflin Moynihan The amendment (No. 3443), as modi- Biden Helms Murkowski cated under State law, interstate water com- Bond Hollings Murray pact, or Supreme Court decree, or held by fied, was agreed to. Boxer Inouye Pell the United States for use by a State, its po- Mr. LUGAR. I move to reconsider the Breaux Jeffords Sarbanes litical subdivisions, or its citizens. No water vote. Burns Johnston Shelby rights arise in the United States or any Mr. LEAHY. I move to lay that mo- Chafee Kassebaum Smith other person under the provisions of this Cochran Kennedy Snowe tion on the table. Cohen Kerry Stevens Act.’’. The motion to lay on the table was Coverdell Leahy Thomas (c) AUTHORIZATION TO GRANT RIGHTS-OF- agreed to. D’Amato Lieberman Thurmond WAY.—Section 501 of the Federal Land Pol- Dodd Lott icy and Management Act of 1976 (43 U.S.C. AMENDMENT NO. 3445, AS MODIFIED Feinstein Lugar 1761) is amended as it applies to the Sec- The PRESIDING OFFICER. The NOT VOTING—4 retary of Agriculture—. question is now on amendment 3445. (1) in subsection (c)(1)—. Mr. DORGAN. I ask unanimous con- Bradley Gramm (A) by striking subparagraph (B); sent I be recognized to offer the next Domenici Hatfield (B) in subparagraph (D), by striking ‘‘origi- nally constructed’’;. amendment following the series of So the amendment (No. 3442) was votes. We will have the next Demo- agreed to. (C) in subparagraph (G), by striking ‘‘1996’’ and inserting ‘‘1998’’; and. cratic amendment. I ask unanimous Mr. LUGAR. Mr. President, I move to (D) by redesignating subparagraphs (C) consent to do that. reconsider the vote. through (G) as subparagraphs (B) through The PRESIDING OFFICER. Without Mr. LEVIN. I move to lay that mo- (F), respectively: objection, it is so ordered. tion on the table. (2) in subsection (c)(3)(A), by striking the second and third sentences; and. Mr. HARKIN. Parliamentary inquiry: The motion to lay on the table was Is this the first amendment I offered agreed to. (3) by adding at the end the following new subsection: which would strike the section of the AMENDMENT NO. 3443 ‘‘(e) EFFECT ON VALID EXISTING RIGHTS.— bill that raises interest rates for Com- The PRESIDING OFFICER. The Notwithstanding any provision of this sec- modity Credit Corporation loans? question now is on amendment No. 3443 tion, the Secretary of Agriculture may not The PRESIDING OFFICER. That is offered by the Senator from Colorado require, as a condition of, or in connection correct. with, the renewal of a right-of-way under [Mr. BROWN]. Mr. HARKIN. For Senators who did Under the previous order, the time this section, a restriction or limitation on the operation, use, repair, or replacement of not hear the debate earlier, for almost has been divided equally, 1 minute an existing water supply facility which is lo- 60 years we have allowed the farmers to apiece. cated on or above National Forest lands or borrow from the Commodity Credit The Senator has the right to be the exercise and use of existing water rights, Corporation using grain and commod- heard. We cannot proceed if discussions if such condition would reduce the quantity ities as collateral at interest rates continue. of water which would otherwise be made based on Treasury rates. This bill The Senator from Colorado. available for use by the owner of such facil- raises the interest rate 1 full percent- ity or water rights, or cause an increase in Mr. BROWN. Mr. President, I believe age point. There is no good reason for we have worked this amendment out. I the cost of the water supply provided from such facility.’’ that. am proposing to alter the amendment There are those who argue farmers by dropping the section dealing with Mr. BROWN. Mr. President, I ask unanimous consent to add Senator ought to be like other people out there, BLM, section (c), applying it only to borrowing at commercial rates. Large BURNS as a cosponsor and to vitiate the the Secretary of Agriculture, and in grain companies, and the large produc- section (e), dropping any reference to a yeas and nays. The PRESIDING OFFICER. Without ers can go get the prime rate. My fam- grant or issuance of a permit. objection, it is so ordered. The yeas ily farmers in Iowa have to go to the This dramatically scales back the and nays have not been ordered. local bank and pay prime plus 3. There amendment, and I believe this meets Mr. BUMPERS. Mr. President, I ask is no reason to raise these CCC interest the concerns expressed about it. As it unanimous consent that I be permitted rates 1 percent. It is a $260 million tax would be amended, it would simply to engage in a 1-minute colloquy with on farmers. Mr. President, $260 million mean that if an easement has existed the Senator from Colorado. I could not more that farmers will have to pay for a long time, you could not revoke it hear one word he said. into the Treasury over the next 7 years or refuse to renew it if the easement is The PRESIDING OFFICER. Without that is not needed, and it will hurt our in no way being changed. objection, it is so ordered. family farmers. AMENDMENT NO. 3443, AS MODIFIED Mr. BUMPERS. Mr. President, let me Mr. LUGAR. Mr. President, I encour- Mr. BROWN. Mr. President, I ask ask two questions of the Senator from age Senators to vote against the Har- unanimous consent to modify my Colorado. kin amendment. It is, in fact, a $260 amendment. First, as I understand it, the amend- million subsidy to farmers. Delib- The PRESIDING OFFICER. Without ment has been modified so that it will erately, farmers have been given a rate objection, it is so ordered. only apply to Forest Service language. 1 percent less for a long time, at the February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1037 Treasury rate as opposed to the com- The motion to lay on the table was The PRESIDING OFFICER. The mercial rate. If every other business in agreed to. question is on agreeing to the amend- America had a similar advantage, that AMENDMENT NO. 3446 ment of the Senator from Iowa. On this might be a different story but other The PRESIDING OFFICER. The question, the yeas and nays have been business people do not. question now occurs on the Harkin ordered, and the clerk will call the roll. There was a time when we were in- amendment, No. 3446. There are 2 min- The assistant legislative clerk called terested in balancing the budget in this utes for debate evenly divided pursuant the roll. Chamber. This was $260 million of the to the previous order. Mr. LOTT. I announce that the Sen- savings involved in that situation. All The Senator from Iowa. ator from New Mexico [Mr. DOMENICI], we are asking for a vote ‘‘no’’ on this is Mr. LEAHY. Mr. President, the Sen- the Senator from Texas [Mr. GRAMM], that farmers have identically the same ate is not in order. The Senator from and the Senator from Oregon [Mr. HAT- opportunity at commercial rates and Iowa is entitled to be heard. FIELD] are necessarily absent. that the $260 million of savings to the The PRESIDING OFFICER. The Sen- Mr. FORD. I announce that the Sen- taxpayers be preserved. ator is correct. The Senate will be in ator from New Jersey [Mr. BRADLEY] is Mr. DOLE. Mr. President, have the order. necessarily absent. yeas and nays been ordered? Mr. HARKIN. Mr. President, this The PRESIDING OFFICER. Are there The PRESIDING OFFICER. Yes. amendment reinstates the farmer- any other Senators in the Chamber Mr. DOLE. I ask that the Chair an- owned reserve which is suspended for who desire to vote? nounce the vote at the end of 10 min- the 7 years of this bill. In the 1970’s we The result was announced—yeas 35, utes from here on. heard a hue and cry across the country nays 61, as follows: The PRESIDING OFFICER. Without that the grain companies and proc- objection, it is so ordered. essors had a hold over the grain mar- [Rollcall Vote No. 12 Leg.] The question is now on agreeing to kets because they could buy up grain YEAS—35 the Harkin amendment numbered 3445. from the farmers at low prices and the Akaka Feingold Mikulski The yeas and nays have been ordered. farmers could not market their grain Baucus Feinstein Moseley-Braun The clerk will call the roll. Bingaman Ford Murray when they wanted to market it. So we Boxer Glenn Pell The legislative clerk called the roll. put in something called the farmer- Breaux Grassley Pressler Mr. LOTT. I announce that the Sen- owned reserve, which is, first, a mar- Bryan Harkin Pryor OMENICI], Bumpers Heflin Reid ator from New Mexico [Mr. D keting tool for farmers that allows the Senator from Texas [Mr. GRAMM], Byrd Hollings Rockefeller them to be able to market their grain Conrad Inouye Simon and the Senator from Oregon [Mr. HAT- when they want to at higher prices. Daschle Johnston Wellstone FIELD] are necessarily absent. Second, it is also a tool for consumers, Dorgan Kerrey Wyden Mr. FORD. I announce that the Sen- Exon Kohl because in periods of drought, when we ator from New Jersey [Mr. BRADLEY] is have short supplies—— NAYS—61 necessarily absent. The PRESIDING OFFICER. The Sen- Abraham Graham McConnell The PRESIDING OFFICER. Are there ator will suspend for a moment. The Ashcroft Grams Moynihan any other Senators in the Chamber de- Bennett Gregg Murkowski Senate will be in order. Biden Hatch Nickles siring to vote? The Senator from Iowa. The result was announced—yeas 37, Bond Helms Nunn Mr. HARKIN. Then those supplies of Brown Hutchison Robb nays 59, as follows: grain are available, so we avoid severe Burns Inhofe Roth [Rollcall Vote No. 11 Leg.] shortages and extremely high prices. Campbell Jeffords Santorum YEAS—37 Chafee Kassebaum Sarbanes Mr. President, there is an estimate by Coats Kempthorne Shelby Akaka Feingold Lieberman the Food and Agricultural Policy Re- Cochran Kennedy Simpson Baucus Feinstein Mikulski search Institute that, in connection Cohen Kerry Smith Biden Ford Moseley-Braun Coverdell Kyl Snowe Bingaman Glenn Murray with the 1988 drought, that the sub- Craig Lautenberg Specter Boxer Grassley Pell stantial stocks of grain on hand, in- D’Amato Leahy Stevens Breaux Harkin Pressler cluding in the farmer-owned reserve, DeWine Levin Thomas Bumpers Heflin Pryor prevented some $40 billion in extra food Dodd Lieberman Thompson Byrd Hollings Sarbanes Dole Lott Thurmond Conrad Inouye Simon costs to consumers because we had Faircloth Lugar Warner Daschle Johnston Wellstone that reserve owned by the farmers. Frist Mack Dodd Kerrey Wyden So this amendment just basically Gorton McCain Dorgan Kohl Exon Levin continues that program of enabling NOT VOTING—4 farmers to store their own grain for a NAYS—59 Bradley Gramm period as a reserve and allow them to Domenici Hatfield Abraham Graham Moynihan market in a more orderly way. Ashcroft Grams Murkowski So the amendment (No. 3446) was re- This is both a profarmer and a Bennett Gregg Nickles jected. proconsumer amendment. Bond Hatch Nunn Mr. LUGAR. Mr. President, I move to Brown Helms Reid Mr. LUGAR. Mr. President, the rea- Bryan Hutchison Robb son the Senate allowed the farmer- reconsider the vote. Burns Inhofe Rockefeller owned reserve to lapse was that essen- Mr. COHEN. I move to lay that mo- Campbell Jeffords Roth tion on the table. Chafee Kassebaum Santorum tially it was a very expensive storage The motion to lay on the table was Coats Kempthorne Shelby business with 261⁄2 cents per bushel to a Cochran Kennedy Simpson farmer who wanted to store grain. But agreed to. Cohen Kerry Smith AMENDMENT NO. 3225 Coverdell Kyl Snowe eventually over half of the money was Craig Lautenberg Specter paid to elevators and to large grain The PRESIDING OFFICER. The D’Amato Leahy Stevens merchandisers, not to the individual question now occurs on agreeing to the DeWine Lott Thomas Santorum amendment No. 3225. Dole Lugar Thompson farmers we are talking about here. We Faircloth Mack Thurmond finally got rid of it because farmers un- Mr. LEAHY. Mr. President, the Sen- Frist McCain Warner derstood it was a hangover of wheat, ate is not in order. Gorton McConnell corn, and beans over the market. It de- The PRESIDING OFFICER. Will NOT VOTING—4 pressed prices. Members of the Senate who are having Bradley Gramm Hatfield I am a farmer. I have storage. I do discussions please retire to the Cloak- Domenici not need 261⁄2 cents a bushel to store for room. So the amendment (No. 3445), as my own purposes. I market it on the The Senator from Pennsylvania is modified, was rejected. basis of price. recognized. Mr. LUGAR. Mr. President, I move to That is the way the country pro- Mr. SANTORUM. I thank the Chair. reconsider the vote. ceeded, and we saved $100 million for Mr. President, the amendment that I Mr. LEAHY. I move to lay that mo- taxpayers for another subsidy that is have is not an elimination of the pea- tion on the table. unnecessary and unneeded for farmers. nut program. What is does is it phases S 1038 CONGRESSIONAL RECORD — SENATE February 7, 1996 down the support price for peanuts 30 Daschle Hutchison Nickles exceed the small business size and Dodd Inhofe Nunn percent over the next 5 years and then Dole Inouye Pell scope, and it would make it possible for replaces the quota system with a Dorgan Jeffords Pressler moneys to continue to be received by nonrecourse loan system. So there will Exon Johnston Pryor cooperative organizations who are ad- still be a peanut program, a safety net Faircloth Kempthorne Robb vertising on behalf of nonbranded pro- Feinstein Kerrey Rockefeller program. The only commodity in the Ford Leahy Sarbanes motions. last 10, 15 years that has not been re- Graham Lieberman Shelby I urge its adoption. As I say, it has formed is peanuts. It is the only one Grassley Lott Simon been before us previously and enjoys Harkin Mack Simpson that has gone up in price since 1985. Hatch McConnell Stevens the support of the chairman of the For everything else the support prices Heflin Mikulski Thurmond committee and the ranking member. have been cut but not peanuts. Peanuts Helms Moseley-Braun Warner Mr. COCHRAN addressed the Chair. Hollings Murkowski is still run with a quota system. That The PRESIDING OFFICER. The Sen- means you have to have a license to NAYS—36 ator from Mississippi. grow peanuts, and, if you do not have Abraham Gorton Moynihan Mr. COCHRAN. Mr. President, in op- that license, you cannot sell peanuts in Biden Grams Murray position to the amendment, let me sim- this country. Boxer Gregg Reid Brown Kassebaum Roth ply state that there are controls and What we want to do is just reform it Bryan Kennedy Santorum reforms not only reflected in this legis- slightly over the next 7 years to really Chafee Kerry Smith lation before the Senate in the Market comport with the other programs that Coats Kohl Snowe Cohen Kyl Specter Promotion Program, but there are also are going through reform, and I urge DeWine Lautenberg Thomas restrictions imposed by the Depart- an affirmative vote to send a good mes- Feingold Levin Thompson ment of Agriculture in the allocation sage on this program. Frist Lugar Wellstone of these funds. Mr. DOLE addressed the Chair. Glenn McCain Wyden In the view of many of us, that PRESENT AND GIVING A LIVE PAIR The PRESIDING OFFICER. The ma- should answer all of the charges that jority leader. D’Amato, against have been made by some of the sensa- Mr. DOLE. Mr. President, I will just NOT VOTING—4 tionalized attacks on our effort to en- take about 30 seconds. Bradley Gramm large our share of the international I have had a lot of experience with Domenici Hatfield market through helping our exporters the peanut program. There have been So the motion to table the amend- of food and commodities do a better job reforms made over the years. There are ment (No. 3225) was agreed to. competing with those countries that reforms in this bill. We are trying to Mr. LUGAR. Mr. President, I move to engage in unfair practices to keep our get a farm bill passed, and I know that reconsider the vote. products out of markets and to make the Senator from Pennsylvania has Mr. CRAIG. I move to lay that mo- us lose market share. worked very long and very hard and tion on the table. This provision in the bill that is has done a great job, but I think in the The motion to lay on the table was sought to be amended creates Amer- spirit of trying to get the bill passed, agreed to. ican jobs. It is time for us to stand up we ought to take the reforms that have Mr. BINGAMAN addressed the Chair. for our farmers and our exporters. I been made. Therefore, I move to table The PRESIDING OFFICER. The Sen- urge the Senate to vote ‘‘no’’ on this the amendment and ask for the yeas ator from New Mexico. amendment. and nays. CORRECTION OF VOTE The PRESIDING OFFICER. The The PRESIDING OFFICER. Is there a Mr. BINGAMAN. Mr. President, on sufficient second? question is on agreeing to the Bryan rollcall vote No. 13, I was recorded as amendment No. 3447. There is a sufficient second. voting ‘‘nay.’’ In fact, I voted ‘‘aye.’’ I The yeas and nays were ordered. The yeas and nays have been ordered. ask unanimous consent that the offi- The clerk will call the roll. The PRESIDING OFFICER. The cial record be corrected to accurately The bill clerk called the roll. question is on agreeing to the motion reflect my vote. Mr. President, this to table the amendment of the Senator will in no way change the outcome of Mr. LOTT. I announce that the Sen- from Pennsylvania [Mr. SANTORUM]. the vote. ator from New Mexico [Mr. DOMENICI], The yeas and nays have been ordered. The PRESIDING OFFICER. Without the Senator from Texas [Mr. GRAMM], The clerk will call the roll. objection, it is so ordered. and the Senator from Oregon [Mr. HAT- The legislative clerk called the roll. (The foregoing tally has been FIELD] are necessarily absent. Mr. D’AMATO. Mr. President, on this changed to reflect the above order.) Mr. FORD. I announce that the Sen- vote, I have a pair with the Senator ator from New Jersey [Mr. BRADLEY] is AMENDMENT NO. 3447 from New Mexico [Mr. DOMENICI]. If he necessarily absent. The PRESIDING OFFICER. The were present and voting, he would vote pending business is the Bryan amend- The PRESIDING OFFICER. Are there ‘‘yea.’’ If I were permitted to vote, I ment No. 3447. The Senator from Ne- any other Senators in the Chamber de- would vote ‘‘nay.’’ Therefore, I with- vada. siring to vote? hold my vote. Mr. BRYAN. Mr. President, I ask The result was announced—yeas 59, Mr. LOTT. I announce that the Sen- unanimous consent that the Bryan nays 37, as follows: ator from New Mexico [Mr. DOMENICI], amendment be in order. [Rollcall Vote No. 14 Leg.] the Senator from Texas [Mr. GRAMM], The PRESIDING OFFICER. Without YEAS—59 and the Senator from Oregon [Mr. HAT- objection, it is so ordered. FIELD] are necessarily absent. Abraham Frist Lugar Mr. BRYAN. Mr. President, this is an Ashcroft Glenn Mack Mr. FORD. I announce that the Sen- amendment, the identical contents of Biden Graham McCain ator from New Jersey [Mr. BRADLEY] is Bingaman Grams which was before the Senate last fall Mikulski necessarily absent. Brown Gregg Moynihan and was approved overwhelmingly by a The PRESIDING OFFICER. Are there Bryan Harkin Nickles vote of 62 to 36. It seeks to cap the Bumpers Hollings any other Senators in the Chamber Nunn Market Promotion Program at $70 mil- Burns Hutchison Pell Byrd Inhofe who desire to vote? Reid lion. Under the current proposal, that Chafee Jeffords The result was announced—yeas 59, Robb funding level would rise to $100 million Coats Johnston nays 36, as follows: Rockefeller on an annual basis. Cohen Kassebaum [Rollcall Vote No. 13 Leg.] Coverdell Kennedy Roth It precludes the payment of market D’Amato Kerry Santorum YEAS—59 promotion moneys to foreign corpora- DeWine Kohl Sarbanes Akaka Bond Campbell tions. Under the current law, foreign Dodd Kyl Smith Ashcroft Breaux Cochran corporations may receive money. Dole Lautenberg Thomas Baucus Bumpers Conrad Dorgan Leahy Thompson Bennett Burns Coverdell It also precludes payments being Exon Levin Warner Bingaman Byrd Craig made to large corporations that would Feingold Lieberman Wellstone February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1039 NAYS—37 farms, with chickens, and with tur- AMENDMENT NO. 3450 Akaka Ford Murray keys, have a great number. We have The PRESIDING OFFICER. The Baucus Gorton Pressler made a limit of $10,000 per operation, question now is on agreeing to amend- Bennett Grassley Pryor ment No. 3450. Who yields time? There Bond Hatch Shelby but in meetings with producers all over Boxer Heflin Simon the country, pragmatically the limits is 1 minute reserved on each side. Breaux Helms Simpson that we have come to seem to be a Mr. CRAIG. Mr. President, the Sen- Campbell Inouye Snowe compromise between the large and the ate is not in order. Cochran Kempthorne Specter The PRESIDING OFFICER. The Sen- Conrad Kerrey Stevens small. Craig Lott Thurmond I visited the Iowa Corn Producers ate will be in order. Senators will take Daschle McConnell Wyden last week and they feel that is about conversations to the Cloakroom. Faircloth Moseley-Braun The Senator from Idaho. Feinstein Murkowski the right level. We had the big and the small, and a great controversy was wit- Mr. CRAIG. Mr. President, I hope my NOT VOTING—4 nessed in that State. There is no magic colleagues will oppose the next amend- Bradley Gramm in the figures. They seem to me to be ment that will be up. Reform has been Domenici Hatfield a practical compromise. asked for in the sugar program, and we So the amendment (No. 3447) was I advocate the committee text be re- have brought major reform. This is of agreed to. tained and the Harkin amendment be no cost to the taxpayers. We create Mr. LUGAR. Mr. President, I move to defeated. stability in the market, which I think reconsider the vote. The PRESIDING OFFICER (Mr. all of us want to see. Mr. LEAHY. I move to lay that mo- ASHCROFT). The question is on agreeing I yield to my colleague from Louisi- tion on the table. to the amendment. ana. The motion to lay on the table was Mr. BREAUX. My colleagues, I would agreed to. The yeas and nays have been ordered. The clerk will call the roll. say the amendment of the Senator AMENDMENT NO. 3448 The legislative clerk called the roll. from New Hampshire knocks out all The PRESIDING OFFICER. The Mr. LOTT. I announce that the Sen- the reforms in the sugar program, question now is on the Harkin amend- which are substantial. He wants to ator from New Mexico [Mr. DOMENICI], ment, No. 3448. make, I think, the program as bad as it the Senator from Texas [Mr. GRAMM], Under the previous order, the time is possibly can be. Voting against that and the Senator from Oregon [Mr. HAT- evenly divided. amendment preserves the reforms that The Senator from Iowa is recognized. FIELD] are necessarily absent. Mr. FORD. I announce that the Sen- are in the legislation. Mr. LEAHY. Mr. President, the Sen- The PRESIDING OFFICER. The Sen- ate is not in order. ator from New Jersey [Mr. BRADLEY] is necessarily absent. ator from New Hampshire. The PRESIDING OFFICER. The Sen- Mr. GREGG. Mr. President, this is The PRESIDING OFFICER. Are there ator is correct. The Senate will be in not about reform. There is no reform in any other Senators in the Chamber de- order. this package. The price of sugar will Mr. HARKIN. Last year, Senator siring to vote? remain twice the market price under LUGAR and Senator LEAHY introduced The result was announced—yeas 57, this bill or under the old law. nays 39, as follows: S. 854 to provide for incentive pay- This is an issue of whether or not the ments, cost-sharing, technical assist- [Rollcall Vote No. 15 Leg.] sugar program will be locked in for 7 ance, et cetera, to livestock producers YEAS—57 years as a huge subsidy and expense for to meet certain environmental stand- Akaka Ford Mikulski the American consumers to bear, or ards. In that bill, for example, there is Ashcroft Glenn Moseley-Braun whether we are going to continue it for Baucus Graham Moynihan a limit relating to the number of live- 2 years and come back and revisit the stock above which you could not get Bingaman Grams Murray Boxer Grassley Nickles issue. We are just asking for a reason- cost share payments, you could not get Brown Gregg Nunn able chance to revisit the issue over Government money. For example, in Bryan Harkin Pell Byrd Helms Pressler the next 2 years, continue the program the original bill eligibility was limited for 2 years, come back and take it up. to 1,000 beef cattle and 2,500 head of Chafee Hollings Reid Cohen Inouye Rockefeller So I hope the people will take a look at hogs. Conrad Johnston Santorum this and be willing to vote for a 2-year In the bill before us, the limits were Daschle Kennedy Sarbanes extension, rather than a 7-year exten- raised to 10,000 beef cattle and 15,000 Dodd Kerrey Simon Dole Kerry Smith sion. head of hogs. We have a limited pool of Dorgan Kohl Snowe The PRESIDING OFFICER. The money, $700 million over 7 years for the Exon Lautenberg Specter Chair informs the Members of the body livestock environmental assistance. Faircloth Leahy Thomas that the yeas and nays have not been This money ought to go to the family- Feingold Levin Wellstone Feinstein Lieberman Wyden ordered on this vote. size farmers who need this help. The NAYS—39 Mr. GREGG. Mr. President, I ask for bigger operations have a lot of capital. the yeas and nays. They can take care of their own envi- Abraham DeWine Mack The PRESIDING OFFICER. Is there a ronmental problems. It is the small Bennett Frist McCain Biden Gorton McConnell sufficient second? family farmers with the smaller herds Bond Hatch Murkowski There is a sufficient second. that need this type of help. Breaux Heflin Pryor The yeas and nays were ordered. My amendment takes this limited Bumpers Hutchison Robb The PRESIDING OFFICER. The pot of money we have and sets limits Burns Inhofe Roth Campbell Jeffords Shelby question is on agreeing to the amend- basically back to where the initial bill Coats Kassebaum Simpson ment. was last year at 1,000 head of cattle and Cochran Kempthorne Stevens The clerk will call the roll. 2,500 head of swine, which corresponds Coverdell Kyl Thompson The legislative clerk called the roll. Craig Lott Thurmond with the regulations that have been D’Amato Lugar Warner Mr. LOTT. I announce that the Sen- promulgated under the Clean Water ator from New Mexico [Mr. DOMENICI], NOT VOTING—4 Act. the Senator from Texas [Mr. GRAMM], Mr. LUGAR. Mr. President, I argue Bradley Gramm and the Senator from Oregon [Mr. HAT- Domenici Hatfield against the Harkin amendment on the FIELD] are necessarily absent. basis that the limits that were set in So the amendment (No. 3448) was Mr. FORD. I announce that the Sen- the Lugar-Leahy bill were based upon agreed to. ator from New Jersey [Mr. BRADLEY] is the herds in 1970. They correspond to Mr. LUGAR. Mr. President, I move to necessarily absent. the Clean Water Act considerations of reconsider the vote. The PRESIDING OFFICER. Are there that time, and they made sense at that Mr. CRAIG. I move to lay that mo- any other Senators in the Chamber time. tion on the table. who desire to vote? Unhappily or happily, as the case The motion to lay on the table was The result was announced—yeas 35, may be, people in cattle, with hog agreed to. nays 61, as follows: S 1040 CONGRESSIONAL RECORD — SENATE February 7, 1996 [Rollcall Vote No. 16 Leg.] The amendment is as follows: Mr. President, I have several Mem- YEAS—35 Section 103(f)(1) is amended by striking bers who would like to speak for a Ashcroft Gregg Nickles subparagraph (A) and inserting the follow- minute. Let me yield 1 minute to Sen- Biden Hutchison Nunn ing: ator HARKIN from Iowa. Bryan Kassebaum Pell (A) the lesser of— The PRESIDING OFFICER. The Sen- Chafee Kennedy Reid (i) 85 percent of the contract acreage, or Coats Kerry Roth (ii) the contract acres planted to a con- ator from Iowa. Cohen Kohl Santorum tract commodity or oilseeds; Mr. HARKIN. Mr. President, I thank DeWine Kyl Sarbanes Mr. DORGAN. Mr. President, I offer the Senator from North Dakota for Feingold Lautenberg Smith this amendment. It is a commonsense Feinstein Lugar Snowe the amendment on behalf of myself, Frist McCain Specter Senators DASCHLE, CONRAD, KERREY, amendment. This is just plain old com- Glenn Mikulski Thompson HARKIN, WELLSTONE, KOHL, EXON, mon sense. Why should we be giving Gorton Moynihan PRYOR, FEINGOLD, HEFLIN, and BUMP- huge payments to people who may be NAYS—61 ERS. sitting on Miami Beach. Abraham Dorgan Lott Mr. President, my understanding is I have an example here, I tell my Akaka Exon Mack there is 15 minutes on each side. friend from North Dakota, of a fairly Baucus Faircloth McConnell The PRESIDING OFFICER. The Sen- large wheat farmer in Kansas. He has Bennett Ford Moseley-Braun ator is correct. Bingaman Graham Murkowski 1,800 acres of wheat and 600 acres of Bond Grams Murray Mr. DORGAN. Mr. President, I yield grain sorghum. Just take this year, Boxer Grassley Pressler myself such time as I may consume. wheat prices being what they are, sor- Breaux Harkin Pryor The bill that we are now debating is ghum prices being what they are, and Brown Hatch Robb called the freedom to farm bill. It is a let us see what happens to this individ- Bumpers Heflin Rockefeller bill that provides 7 years of fixed pay- Burns Helms Shelby ual this year under the present prices. Byrd Hollings Simon ments to farmers. Yet, there is no re- What is he going to get this year? This Campbell Inhofe Simpson quirement in this legislation to plant a Cochran Inouye Stevens farmer is going to net about $235,000. crop. All you need would to participate That is a profit. Part of his profit is a Conrad Jeffords Thomas is to have some base acres and a bank Coverdell Johnston Thurmond Government check for $39,768. That is account. You never need to plant a Craig Kempthorne Warner on top of $195,000 in profit already. D’Amato Kerrey Wellstone seed. You never need to harvest a crop. Now, unless we adopt the Dorgan Daschle Leahy Wyden Yet, you would get payments under Dodd Levin amendment, he can get that payment if this proposal. Dole Lieberman he did not plant anything at all. He You can have two farmers side by NOT VOTING—4 side under this proposal, one of whom could get that $39,000 if he did not even Bradley Gramm plants a crop, harvests a crop, and want to do anything. Domenici Hatfield The Senator from North Dakota is works all year operating a family farm. So the amendment (No. 3450) was re- That farmer gets a payment under the right. If we are going to be sending out jected. Freedom to Farm Act. The other farm- checks from the Government, at least Mr. LEAHY. Mr. President, I move to er across the road does nothing, packs we ought to expect people to work for reconsider the vote. up, moves to Arizona, does not plant a it and not be able just to sit back and Mr. LUGAR. I move to lay that mo- crop, never plows a furrow, and never do nothing. tion on the table. starts an engine. That farmer gets the The PRESIDING OFFICER. The Sen- The motion to lay on the table was same payment. ator’s time has expired. agreed to. Now, this is a farm bill. This bill is Mr. DORGAN. I yield 2 minutes to Mr. LEAHY. Mr. President, I believe about helping farmers farm, not help- the Senator from Nebraska [Mr. the Senator from North Dakota is ing farmers not farm. It is a bill about KERREY.] next. Senators certainly on this side of helping farmers who want to farm. The PRESIDING OFFICER. The Sen- the aisle have been very good in com- This should not be a bill about creating ator from Nebraska. ing forward to talk about amendments, a payment system to pay people for not Mr. KERREY. I thank the Chair. technical points they may want to farming. For years, the principal criticism of have cleared. I appreciate that. I hope My amendment amends the Freedom the farm program has been an inac- if anybody else does they would let us to Farm Act and says that payments curate one, but it has been an effective know as soon as possible because this under the Freedom To Farm Act will one, that American farmers are being is moving very quickly, and at some be made to farmers who plant a pro- paid not to farm; converting acres is a point it is going to be wrapped up. gram crop, any program crop on their payment not to farm; farmers are Mr. DORGAN addressed the Chair. base acres. It provides for total flexi- going to get paid for wetlands regula- The PRESIDING OFFICER. Under bility. It simply says we will not make tion, lots of other things. the previous order, the Senator from payments to people who plant nothing. They are certainly not paid not to North Dakota is recognized. You must plant a program crop on your farm. In this program, the way it is writ- AMENDMENT NO. 3451 TO AMENDMENT NO. 3184 base acres to be eligible for these pay- ten, the law basically says that the (Purpose: To require farmers to plant crops ments. to receive Federal payments) Some will say, well, it has been done Government will calculate the number Mr. DORGAN. Mr. President, I have before. We have an 0/92 program and an of acres that you are eligible for based an amendment at the desk, and I would 0/85 program. The 0/92 program allows on 4, 5 years of farming using Farm ask that the amendment be reported. farmers to plant oilseeds on base acres. Service Office numbers. The PRESIDING OFFICER. The That is not the same at all. There is a The Farm Service Office will then clerk will report the amendment. requirement to plant. say, ‘‘Here is what your yields are.’’ The assistant legislative clerk read The 0/85 program is a conservation Both of them, by the way, have built in as follows. use program. Payments are made for inequities because that is another putting the land into a conserving use. problem. The Government will say, The Senator from North Dakota [Mr. DOR- ‘‘Here is your number of acres, your GAN], for himself, Mr. DASCHLE, Mr. CONRAD, Not the same at all. Mr. KERREY, Mr. HARKIN, Mr. WELLSTONE, The current provisions in this bill yield, multiply your numbers and take Mr. KOHL, Mr. EXON, Mr. PRYOR, Mr. makes no sense to me at all, and the 85 percent, then add all the acreage up FEINGOLD, Mr. HEFLIN, and Mr. BUMPERS, Senate ought to adopt this amend- and all those bushels up.’’ It will take proposes an amendment numbered 3451 to ment. The amendment says let us the total dollars available for that amendment No. 3184. make this a farm bill. Let us help the crop, divide it into the total bushels, Mr. DORGAN. Mr. President, I ask farmers who are planting crops and and that is how many cents you will unanimous consent that reading of the harvesting crops. Let us assist the get. And you will get half your pay- amendment be dispensed with. work of family farmers in this country. ment in June and half in September. The PRESIDING OFFICER. Without But let us not pay people who do not The only three things you have to do objection, it is so ordered. plant and do not harvest. to get the payment is the following: February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1041 First, comply with the conservation re- and simply forget the wheat fields and their land in each and every way that quirements; second, comply with the collect the check for $39,000. That is would be productive and profitable for wetlands requirements; and, third, possible as an option for that farmer, the farmer. promise not to plant more than 15 per- but most people would ask, what about If we once again insist that a pro- cent alfalfa and not to plant fruits and the $200,000 that he normally takes off gram crop—wheat, corn, rice, cotton— vegetables. Other than that, you do not the farm? be planted on that land for it to have have to promise to do anything. There Mr. President, if the farmer himself value, to get a government payment, will not be any question. is elderly, it is a very probable set of we are back once again into the same Farmers may make a calculation, circumstances in America today that restrictive agriculture that so many of ‘‘Maybe I would be smarter not to the farmer will rent the land to some- us have decried for a long time. I am plant at all. I don’t have to plant under body else and share the return. In fact, one who rejoices that today we have a this. I don’t have to put a crop in and that happens increasingly as farmers very good opportunity finally to break do anything other than take the Gov- grow old. The payments follow the out of that mode of governmental re- ernment money which they are offer- land. The probability that the land is striction. ing.’’ simply going to sit there and that a Why in the world we would once It is a very reasonable amendment, Government check comes as an ample again want to return to those prin- and it seems to me it is very much con- reward is, I think, in most cases a ri- ciples I cannot understand. It seems to sistent with the arguments and rep- diculous assumption. me somewhat disingenuous, as those resentations and presentations that ad- There is the one case, Mr. President, who offer this amendment suggest on vocates of freedom to farm have been we have to consider carefully, and that the one hand—and the Senator from making all this day. is that some farmers in America, in North Dakota was the author of the Mr. DORGAN. I yield 1 minute to the stretching to meet Government pro- amendment—others who have spoken Senator from North Dakota, Senator gram histories for their crops, may have often pointed out very poignant CONRAD. have simply overreached and they may cases of farmers in their States who Mr. CONRAD. Mr. President, one of have planted on land that in fact was have struggled against the weather and the most frequently heard criticisms of not very fertile and does not get very against great odds. But all the stories Federal farm programs is that farmers much return at all. There may be at are ones of struggle. These are persons are paid not to farm, not to plant any- the margin some cases where some who understood how to farm the land. thing. Mr. President, that has not been farms, if farmed, lose money simply be- The question is, what sort of odds do the case under recent farm law. But if cause the inputs into the farming and they have to meet in order to get in- the Dorgan amendment does not pass, all the economic costs involved are come? I have not heard very many stories it will become the case. In fact, we will more than the return that would come from the Senator from North Dakota have circumstances in which farmers from the crop with or without the Gov- or from other Senators about their will be paid not to plant, not to farm, ernment involved. constituents who simply went to Ha- not to produce. As a matter of fact, in the Conserva- waii on the beach and ridiculed the Mr. President, I do not think there tion Reserve Program, we have been Federal Government and the rest of the will be much support in the United attempting to work with farmers to set taxpayers for paying them for doing States for a program that pays people aside highly erodible land, to have that nothing. set aside as part of the program, or not to do something, not to do any- As a matter of fact, farming is a land that impacts upon riparian water- thing. So I hope my colleagues will struggle for a prohibitive majority of favor this amendment and vote for it. way safety. That, I thought, made good Americans who are engaged in it. It is Mr. DORGAN. Mr. President, I re- sense, Mr. President, in the conserva- a struggle they chose. Today we are serve the remainder of my time. tion mode. Many acres probably should about to give them greater flexibility The PRESIDING OFFICER. Who not have been planted if our heritage of to make certain that struggle is a more yields time in opposition? the soil is to be retained. even one, that they really can plant Mr. LUGAR addressed the Chair. So farmers, in fact, have decided, as whatever they want to. And they will The PRESIDING OFFICER. The Sen- a matter once again of their own self- plant. ator from Indiana. interest and given a government pay- As a matter of fact, the great fear al- Mr. LUGAR. Mr. President, let us ment, to try to move away from the ways of those who wanted controls and take the situation of a farmer in Amer- highly erodible lands or those that wanted to pin it down was that farmers ica who has land. This is a basic asset threaten waterways. But that is an would plant too much. The real secret for that farmer. Certainly, as common- economic decision that makes sense. of American agricultural debate for 60 sense rules, the farmer will plant a Therefore, Mr. President, I under- years has been this latent fear that crop on the land or attempt to use the stand the attempt of the argument to farmers, as a matter of fact, are so in- land to obtain income. suggest that there are farmers who genious, so hard working, that if left to Certainly it is conceivable that there simply will escape their responsibil- their own devices they would simply are Americans who have productive as- ities. But my judgment as a farmer, plant so much that the price of every- sets and might decide that they simply Mr. President, is that I have known thing would decline precipitously. do not want a return from those assets. very few people in Indiana farming dur- That was the basis of the New Deal But this is improbable. Most persons of ing my lifetime who, having a good philosophy, the burning of the little sound mind and common sense who farm there with fertile soil, did not pigs, the plowing up of crops at the have opportunities to utilize economic have a crop. They may have planted it time. It was not the search for farmers assets, do so. And they do so continu- themselves, and they may have had going to Hawaii; it was a search for ously to make a living. children that worked with them. They farmers who were too productive, to For example, the Senator from Iowa may have had others to whom they hold them in bounds, and to put on one has pointed to a potential Kansas farm- rented the property, but the crop got restriction after another, which we er, maybe an actual farmer, but as I re- planted because that was the living for have not lifted from them in 60 years. call the instance, there were as many the family. Those were assets that To hear the strange argument today as 1,800 acres of wheat crop, and given were available. And at the point when that at the very moment of freedom, prices, as the Senator pointed out, that they did not really wish to use those farmers are prepared to chuck all of farmer might have a return of almost productive assets anymore, they sold this and say, ‘‘We are headed to Ha- $200,000 from the markets that are very them or they gave them away to chil- waii. Send me the check,’’ is not only strong for wheat. The Senator also dren or through an inheritance. That is a gratuitous insult to farmers, but it pointed out that a Government check the reality of agriculture in America. simply lacks any basis in fact and re- for $39,000 might also come to that The freedom to farm idea comes ality of anybody who is in the farming farmer under current programs. down to the fact that we are saying to business. The suggestion was that that farmer farmers they ought to have exactly Mr. President, we are talking about might have the option to go to Hawaii that, freedom and flexibility to use the heart of the freedom-to-farm idea. S 1042 CONGRESSIONAL RECORD — SENATE February 7, 1996 If you pin down what has to be planted, ments. If the Senator from Indiana has I come from a town of 300. That town once again, with Government restric- a fear that farmers are not going to exists because all around you can also tions and say it has to be a program plant anything and go to Hawaii, if he see farmyard lights on at night. They crop and, by golly, we have to see it in says, ‘‘Why, they are not going to do are family farms operating and doing the ground before you receive a pay- that,’’ if he maintains that position, business in town. Every time one of ment, you do, in fact, defeat the whole then he should accept this amendment, these yard lights is turned off as we prospect of freedom to farm, and I do he should be for the Dorgan amend- lose a farm, it kills a little bit of the not want to see that occur. ment, because the Dorgan amendment economic vitality of that town. I think Members ought to be alert couples production with an ultimate I am not interested in advancing that this is that type of amendment. It payment under certain circumstances. farm bills to pay people not to farm. I is a killer amendment, and the instinct It does not decouple as the freedom-to- am not interested in advancing any of going for the jugular with this idea farm act does. farm bills that move in the direction of of farmers on the Hawaii beaches is, I We want a defendable farm program. more stringent requirements. think, well crafted to try to give a pic- This is one, Mr. President, this particu- I am interested in advancing farm ture of persons who are idle and who lar program, this particular proposal, bills that do provide for greater flexi- are trying to do in the taxpayers. that I do not think we can ultimately bility, but not a flexibility that says What, in fact, we have here is a situa- defend. I have been through, I think, we want to make Government pay- tion that came out of the Balanced about four farm bills, and I have never ments for people who do not start a Budget Act. It was clear that through seen one like this, because this is going tractor in the spring and do not drive a the payments that will occur in a 7- to be, in my opinion, not an ordinary 5- combine in the fall, do not plant and do year period of time and diminish in year farm bill. It is not going to be a 7- not harvest and are not farming. What money, we know constantly now that year farm bill. It is going to be about kind of sense is that? I wish the Sen- the Federal Government and all the a 90-day farm bill, because when people ator would accept this. taxpayers are assured that farming is wake up and ‘‘20/20’’ and ‘‘60 Minutes’’ I notice he was able to suppress a making a very sizable contribution to and everyone else becomes exposed to grin when he said this was a killer the deficit relief that we have all what we have done to agriculture and amendment. I appreciate the fact he sought to a balanced budget. to the agriculture industry and the did not grin on that because this is not The last farm bill we passed, those of economy in this country, they are a killer amendment at all, nothing us involved in it, estimated it would going to demand that the Congress go close to it. It is a simple proposition, have a cost of about $41 billion in back and draft a new farm bill that will and the proposition is this: Let us de- terms of subsidies, the basic deficiency work. cide what we are going to accomplish payment for the program crops. It Mr. President, I thank the Chair, and in this freedom-to-farm act. Let us pro- turned out to be $57 billion, and there I yield the floor. vide a series of payments to assist fam- have been many explanations as to how Mr. DORGAN addressed the Chair. ily farmers who are farming. Let us not we could have been that far off. The PRESIDING OFFICER. The Sen- advance into the future with a back- The freedom-to-farm bill we discuss ator from North Dakota. ward-looking approach that pays farm- today does not have surprises of that Mr. DORGAN. Mr. President, I lis- ers who have not planted a single seed. sort. The payments are known. The tened carefully to the Senator from In- That is not what farmers want. That is amounts that will be distributed are diana. The Senator from Arkansas ap- not the help they need. That will not constant, as well as the freedom of parently said, ‘‘This isn’t going to hap- advance the interests of rural America farmers to plant abundantly to furnish pen. We’re not going to have people or family farmers. to American consumers and to the getting payments and not planting.’’ If Mr. President, how much time do I world such abundance as we have never that is the case, why would anyone ob- have remaining? seen and such wealth as we have never ject to the amendment? If it is not The PRESIDING OFFICER. The Sen- observed in terms of our export mar- going to happen, my amendment is ator has 21⁄2 minutes remaining. kets and our competitive ability. That something that ought to be accepted. Mr. DORGAN. I prefer to close de- is what the freedom-to-farm act is The Senator from Indiana talked a bate. If the Senator from Indiana has about. lot about the flexibility, freedom to other speakers or wishes to add any- I am hopeful Senators will oppose the farm offers in planting. He seemed to thing, I reserve my time at this point. Dorgan amendment, will retain the suggest somehow I was going to offer Mr. LUGAR. How much time re- flexibility portions of this bill and the something that had a different kind of mains? gist of freedom to farm, which I think standard for flexibility than he and The PRESIDING OFFICER. The Sen- is common sense and very clear to all others propose. That is not the case. ator from Indiana has 4 minutes re- of us. They, of course, do not propose com- maining. Mr. DORGAN. I yield 2 minutes to plete flexibility. You cannot plant Mr. LUGAR. I thank the Chair. Senator PRYOR. fruits and vegetables on base acres. I Mr. President, without being tedious, The PRESIDING OFFICER (Mr. understand that. I just simply reiterate the fact that a GRAMS). The Senator from Arkansas. I support the flexibility they are farm that is fertile is going to be plant- Mr. PRYOR. Mr. President, I thank talking about. I provide the exact, ed. It is going to be planted by the the Chair for recognizing me and for same flexibility in this amendment. All farmer and by his children or family, my colleague from North Dakota yield- I am saying is that you are not going by those associates he rents to. What ing me this time. to receive a payment for doing nothing. the Dorgan amendment finally gets to, I have been listening to my good This is a farm program. Our interest is once again, is almost an insatiable de- friend from Indiana, Senator LUGAR, in helping family farmers farm. sire on the part of those who want con- the distinguished chairman of our com- The interesting thing about farming trol over what is planted and, there- mittee. I will just simply say to our is you have to figure out what your fore, want a relationship between pro- distinguished friend from Indiana, Mr. input costs might be in order to deter- gram crops and payments. President, that the Dorgan amendment mine what your profit might be and es- We have been down that trail. We are is not a killer amendment by any timate what the price might be, be- trying very hard to get off that trail stretch of the imagination. It is simply cause that is a factor of profit. today. I will just simply say, in my an effort to address what promises to One can foresee circumstances in judgment, the great fear of those who become a totally outrageous section which some people will say, ‘‘As far as have been in supply controls through- and provision of the freedom-to-farm I’m concerned, I would like to move out this time of the New Deal onward act. someplace else and get the payments at has been a fear of planting too much. We are saying in the Dorgan amend- this point because the input cost is too It is a strange argument today to ment—and I am a cosponsor—we are high, the price risk is too great. I think argue that somehow farmers would saying that farmers do not have to do I will take the payment and let the plant too little or nothing at all. They anything in order to receive their pay- land sit.’’ simply will not utilize rich resources. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1043 But given even the hard case, Mr. may happen because of conservation ing is that they are trying to discuss a President, there may be some instances reasons. Maybe some land would be put way of handling these votes. in which there should not be a crop into a conservation use. For that we Mr. LEAHY. Mr. President, if I might planted if the land is highly erodible, if have a conservation program called tell my colleague from North Dakota, conservation dictates that it simply CRP. Millions of acres are in the CRP. we are trying to have the first group of should not occur. That maybe becomes This bill was not alleged to be a con- votes—as the Senator from North Da- an option that is both rational and servation program on the Senate floor. kota may know, we were able to dis- good in terms of the public good. In It is a 7-year program of fixed pay- pose of a number of items when we had other words, there is no particular vir- ments to farmers. We are simply say- so many Senators on the floor, unani- tue in proceeding with planting a pro- ing, ‘‘Let us not include in any 7-year mous consent items. I believe the lead- gram crop when it is not economical to program of fixed payments a provision ership is trying to package some others do so and when it might be destructive that farmers should be able to plant together. Obviously, any Senator, by in terms of the environment. In almost nothing and harvest nothing and still objecting to unanimous consent, could every other instance, a crop is going to get farm program payments.’’ That is have a vote after the debate, which, of be planted. not moving into the future. That is not course, would protect the distinguished The question we have today is: Will part of a new idea. That is not part of Democratic leader. If I might have the farmers be able to have maximum new great freedoms. That does not attention of the Senator. flexibility of choice as to what to do? eliminate planting restrictions. Mr. DORGAN. I withdraw my res- Or, once again, will we be back into the I have great respect for the Senator ervation. toils of supply control, of Government from Indiana. He is one of the most Mr. LEAHY. Obviously, the Demo- control, tied with those decisions and able people serving in this body. But I cratic leader would be protected on the checks from the Federal Government? hope that he and others will really time for a vote on his amendment. I This is a transition program, Mr. think through this process. They would ensure that he was protected be- President, a transition to the market. should ask themselves a question. Do cause, absent unanimous consent, a The transition is known to farmers as we want—no matter what program vote would come when his time was they enter into those programs, and passes in the Senate—a program that completed. But I think the distin- farmers are perfectly free not to enter says to farmers across this land, ‘‘If guished leaders on both sides have been into contracts. That is also an option you choose to decide that you do not trying to work on the schedule, know- that is greatly feared by those who want to plant anything, you get a pay- ing that every Senator is protected at want control because many farmers ment. If you want to move away from the time of the vote. might simply decide that the time has your small town and live elsewhere, The PRESIDING OFFICER. Is there really come to plant for the market, as you get a payment. When you put your objection to the request to lay the opposed to the Federal Government, farm numbers together and you deter- amendment aside? with transition payments or without. mine you have risk with the market- Without objection, it is so ordered. Those choices we shall see before us, place and then you decide you are not Mr. LUGAR. Mr. President, I suggest Mr. President. But for the moment, it going to farm, you are still going to the absence of a quorum. appears to me that this is a clear-cut get that payment.’’ I think we make a The PRESIDING OFFICER. The issue in terms of freedom to farm. I big mistake if we do that. I hope people clerk will call the roll. hope that the Dorgan amendment will will think through this amendment The assistant legislative clerk pro- be defeated. and vote for this amendment. ceeded to call the roll. The PRESIDING OFFICER. The Sen- I yield back my time. Mr. DASCHLE. Mr. President, I ask I ask for the yeas and nays. ator from Indiana has 1 minute remain- unanimous consent that the order for The PRESIDING OFFICER. Is there a the quorum call be rescinded. ing. sufficient second? Mr. LUGAR. Mr. President, we have The PRESIDING OFFICER. Without There is a sufficient second. objection, it is so ordered. no other speakers on our side. I yield The yeas and nays are ordered. AMENDMENT NO. 3452 TO AMENDMENT NO. 3184 back that time. Mr. LUGAR. I ask unanimous con- Mr. DORGAN. Mr. President, what- (Purpose: To amend the commodity payment sent that the DORGAN amendment be provisions and for other purposes) ever amendment the Senator from In- temporarily laid aside. Mr. DASCHLE. Mr. President, I send diana was opposing, I would like to op- Mr. DORGAN. Has that been cleared an amendment to the desk and ask for pose it as well. The fact is I would not on both sides? What is the order with its immediate consideration. support an amendment that goes back respect to votes? to supply control, or the old programs Mr. LUGAR. I respond that this is The PRESIDING OFFICER. The that go back to Government control being discussed by the leadership. My clerk will report. The assistant legislative clerk read over planting, et cetera. So whatever impression is that there are other sig- as follows: amendment that was he was describ- nificant amendments, the Senator’s ing, sign me up, I am against that as amendment being one of these. Others The Senator from South Dakota [Mr. DASCHLE], for himself, Mr. PRYOR, Mr. HAR- well. But, that is not the amendment are to be offered. The leadership is at- KIN, Mr. BUMPERS, Mr. CONRAD, Mr. DORGAN, at the desk. tempting to determine whether they Mr. HEFLIN, Mr. EXON, Mr. BREAUX, Mrs. My amendment cannot, in any way, should be voted upon at the end of the BOXER, and Mr. BAUCUS, proposes an amend- under any condition, by anybody in trail today, moving into final passage, ment numbered 3452 to amendment No. 3184. this Chamber, be described as an or whether there will be a burst of roll- Mr. DASCHLE. Mr. President, I ask amendment going back to the old sup- call votes at some point after we gauge unanimous consent that reading of the ply control days or to requiring plant- how many amendments are still there. amendment be dispensed with. ing restrictions. This amendment sim- Mr. DORGAN. Reserving the right to The PRESIDING OFFICER. Without ply says that we are not going to pay object, it is my understanding that objection, it is so ordered. people who do not plant a seed in the after the first group of votes, we were (The text of the amendment is print- ground and do not plant a crop and do going to then entertain whatever ed in today’s RECORD under ‘‘Amend- not farm. If, in fact, it is not going to amendments were offered and have ments Submitted.’’) happen that people will decide not to votes sequentially. I know that the mi- Mr. DASCHLE. Mr. President, the plant but accept the payment—if that nority leader intends to offer a rather amendment I offer this afternoon rep- is the case and it is not going to hap- comprehensive substitute, and we cer- resents what I hope will be a consensus pen, and the distinguished Senator tainly would want to have a vote on here about farm policy and the direc- from Indiana has made that point that by itself following debate. I won- tion we take in agriculture for the next twice—then there would be no reason dered whether the minority leader has 7 years. not to accept this amendment. But, of been consulted on the unanimous-con- We seek many of the same things, course, it is going to happen. sent request. Republicans and Democrats. The Senator from Indiana says it is Mr. LUGAR. He has been consulted We want to ensure that we protect not going to happen, but then adds it by the majority leader. My understand- rural America to the extent we can. S 1044 CONGRESSIONAL RECORD — SENATE February 7, 1996 Democrats believe protecting rural without the protection that permanent One of them from North Dakota was America means ensuring it will provide law provides. Deb Lundgren. She and her husband a safety net for farmers in the difficult We remove the caps on loan rates and her children operate a family farm times, when prices are low, when crops contained in the freedom to farm act. near Kulm, ND. They are third genera- are poor. We want to provide the maxi- We remove the Findley and stocks-to- tion farmers, trying to run their family mum degree of flexibility, giving farm- use triggers, and set loan rates for farm. ers a chance to plant what they want, wheat, feedgrains, oilseeds and rice at When I called Deb and asked her to to recognize the market changes, and 90 percent of the Olympic average. We come to Washington for a meeting with to ensure they can respond to those limit county adjustments to 3 percent. the President she said, ‘‘It is really a changes as quickly and efficiently and There is an advance deficiency pay- coincidence you called. Yesterday successfully as possible. We want to ment with no repayment necessary. morning,’’ she said, ‘‘my husband and I simplify the complex programs that That advance payment is 20 cents per were having kind of a tearful conversa- exist today, making them easier to ad- bushel for corn, 43 cents for wheat, 4.9 tion over the breakfast table about minister, reducing the administrative cents per pound for cotton and 1.54 per whether we would be able to continue intensity and the frustration levels of hundredweight for rice. farming next year.’’ farmers themselves. Finally, we want The remaining payment is tied to She came to the White House and to guarantee that farm programs do production and market conditions, the told a compelling story to the Presi- not end when this legislation expires. market conditions dictating the degree dent about the struggle that it takes to That is the purpose of the amend- to which we have an additional pay- operate a family farm with uncertain ment I offer this afternoon. I do so ment. This is not a locked-in, 100 per- prices, uncertainty about whether you with the recognition that we have cent guarantee to those who own land, get a crop. They had a wet year last many very diverse elements within our whether they farm or not. This is not year and did not have much of a crop. caucus and within the Senate. In spite one of those commitments to corporate Prices are up, but it does not mean of that diversity, we have Senators agriculture that, indeed, they are enti- much if you didn’t raise a crop. from the South and the West, the East tled to under freedom to farm without At the conclusion of the meeting, the and the North who have cosponsored any requirement that they farm at all, President said to Deb, ‘‘You hang in this legislation with me this afternoon. which is obviously the subject of the there. We will try to fight for a farm I am very disappointed, frankly, that it Dorgan amendment. program that really works for family has come to this, that we have not We restore the farmer-owned reserve. farmers.’’ been able to work, as we have on so We restore the Emergency Livestock That is the only reason I care about many occasions in the past, to come up Feed Program. this. If this farm program is not about We eliminate the Commodity Credit with farm policy that is much more bi- trying to help preserve a network of Corporation interest rate increase as partisan than this has been so far. family farms in this country, in my Unfortunately, as a result, we do not Senator HARKIN attempted to do. judgment we do not need a farm pro- We eliminate the prohibition of Com- have a comprehensive bill before us gram and we do not need a USDA. Go modity Credit Corporation funds. back to the Abe Lincoln days, when he today. We have a very narrow budget We reduce the EQIP herd size eligi- started the USDA with nine employees. bill that fails to address many of the bility to EPA point source numbers. If we are not going to save family very legitimate concerns of rural We allow enrollment in the Water farms, if we are not going to give fami- America. While the underlying legisla- Conservation Program and create a lies a chance to farm in this country’s tion provides for the freedom to farm Farmland Protection Act to protect future, we do not need any of this. If we approach, this amendment will address against urban sprawl. what we view to be many of the short- We create a conservation escrow ac- need this, and I think we do, it is to try comings, many of those areas that in count. to help families make a living out on our view fall short of what we need to We include a sense of the Senate pro- the farm with uncertain prices and un- do to address in a comprehensive way vision on methyl bromide, encouraging certainty about whether you can even farm legislation for the next 7 years. Federal coordination on this issue, get a crop. The amendment does a number of something we have to do ultimately in What Senator DASCHLE had offered is things, Mr. President, that I believe California if we are going to deal with a good compromise. Many of us have are supported by a vast majority of our this issue effectively. worked on it for some long time. It is caucus and hopefully by a majority of We reauthorize the Integrated Farm not the freedom-to-farm act. It does the Senate. We provide, as I said, the Management Program. not provide payments for people who maximum degree of flexibility. The We provide tenant protection regard- do not plant. It is sensitive to the mar- whole farm base is provided with re- ing the freedom-to-farm contracts. ket. It says when prices collapse, and strictions only on fruits, vegetables We provide assistance to protect the they will, there will be a safety net and potatoes. Everglades. there and we will respond to the issues There is no acreage reduction what- Mr. President, in essence, this of the market. We are not going to soever. amendment is a comprehensive farm yank the safety net out from under We retain permanent law, reinstating bill. This is what we should have done. family-sized farms. It says there is a the Agricultural Act of 1949 at the ex- This is legislation addressing virtually need for permanent farm law. piration of the so-called freedom to every concern that farmers and others Farm commodity prices go up and farm act. throughout the country have raised— they go down. When they go down, the We establish permanent law for rice many of which go unaddressed in the big agrifactories can survive because at the 1995 levels. so-called freedom-to-farm act. they have the financial capability of We set out a 3-year farm program in- I have a large number of people who surviving. It is the mom and pop out stead of a 7-year program, only because have asked to be heard on the bill and, there trying to run a family farm that we really do not know what the cir- to protect our time, I will reserve the can fail. cumstances are going to be in 3 years. balance of our time, yielding first 3 Some people say that does not mat- We do not know what the market con- minutes to the Senator from North Da- ter very much. I suppose to some it ditions are going to be. We do not know kota. does not. The only reason we ought to how far short this legislation will fall Mr. DORGAN. Mr. President, a few fight for a farm program on the floor of in a whole range of areas. Rather than months ago a number of us went to the this Senate is to save farm families simply commit to 7 years and hope for White House to meet with President like Deb Lundgren and her husband the best, this legislation says we Clinton. Senator DASCHLE was among and so many others, who are out there should take a hard look at where we them. We brought some farmers from every single day trying to make a liv- are in 3 years, make whatever adapta- North Dakota and South Dakota to ing. We can do it if we do it the right tions we have to make, and make sure talk to the President about the farm way. we have covered all of our bases so we program and what they were experienc- This alternative is the right alter- are not left high and dry in 3 years ing day-to-day on their farms. native. It provides complete planting February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1045 flexibility. It provides up-front pay- Crop Insurance Program because we I applaud the Democratic leader for ments to help recapitalize family will have fewer farmers participating. offering us an opportunity, offering us farms. It does all of the right things For the crop insurance program to a chance to save ourselves from mak- and is immensely better in terms of work, more farmers have to partici- ing an enormous mistake that could af- farm policy than the freedom-to-farm pate. That is basically the theory of in- fect agriculture and affect our country bill. surance. The more everybody is in- for generations to come. I am pleased to support this, and I volved, the more insurance works. The This is a measure offered by the dis- hope my colleagues will. I hope we can provisions in this bill are going to end tinguished Democratic leader and oth- adopt this substitute. that linkage between insurance pur- ers of his colleagues who say that we I yield the floor. chase and farm program participation. want to keep a basic safety net. We Mr. DASCHLE. Mr. President, I yield I expect that fewer producers are want to keep flexibility, but we do not 3 minutes to the distinguished Senator going to participate in the crop insur- want to decouple those payments from from Montana. ance program. That means the crop in- production. We need to couple those The PRESIDING OFFICER. The Sen- surance program will be at greater payments with production. We need to ator from Montana. risk. It should be modified, but it say to the farm sector in our country: Mr. BAUCUS. Mr. President, very should not be eliminated. Let us slow this down just a moment. generally, the amendment offered by Mr. President, I strongly urge Sen- We know there is no farm program. But the Senator from South Dakota is an ators to think down the road a little is it better to have a bad farm program amendment to improve upon the bill bit. Think of the years when prices are than no farm program at all for the before us. Improvement is necessary in going to be lower. Let us improve this moment? order to provide some kind of certainty bill by taking care of those situations I think the Daschle alternative—very so farmers know in the future—when when prices will be lower and we will respectfully, I think his alternative prices are not as high as they are now— have a little more stability and a little gives us that opportunity and that that there is some stability, some cer- more certainty. chance to speak to the future of Amer- tainty. Improvement is necessary so Mr. President, I thank our Demo- ican agriculture. One, it does not tie us farmers can continue to farm, continue cratic leader for so aggressively and ef- for 7 years. It only obligates us and to pay the bills and make payments on fectively working to help improve this this Congress and the American farmer the equipment and fertilizer. In short, bill. for a period of 3 years. In that 3-year The PRESIDING OFFICER. The so they can stay in business. period, hopefully we will have sorted We know that today prices of wheat Democratic leader. Mr. DASCHLE. I thank the distin- out where we are and we will have the are higher than they have been in guished Senator from Montana for his opportunity to revisit this issue. many years. It is the same for most eloquence and the tremendous effort he The Senator from South Dakota has other commodities. So this amendment has demonstrated in putting this com- offered us a very good, constructive op- offered by the Senator from South Da- prehensive package together. His effort tion. I hope we will heed his wisdom. kota accomplishes several objectives, and his leadership are deeply appre- The PRESIDING OFFICER. Who all of which I strongly support. One of ciated. yields time? them, the main one, the main philoso- Mr. President, I yield 3 minutes to Mr. LUGAR. Mr. President, I yield phy and rationale, is more stability, the distinguished Senator from Arkan- myself as much time as I may require. particularly in those years—we know it sas. The PRESIDING OFFICER. The Sen- is going to come—when prices are The PRESIDING OFFICER. I remind ator from Indiana. going to be low. the Democratic leader he has 1 minute Mr. LUGAR. Mr. President, the One provision which is also impor- 50 seconds remaining. amendment by the distinguished tant is improving the marketing loan Mr. DASCHLE. I will use my leader Democratic leader is a comprehensive mechanism, to increase the loan rate time as I may require. From that time plan. Earlier in our debate, in fact yes- from 85 percent of the 5-year average to I will yield 3 minutes to the distin- terday, as we talked about agriculture, a level of 90 percent. That is very im- guished Senator from Arkansas. the distinguished majority leader, Sen- portant, particularly in years of low The PRESIDING OFFICER. The Sen- ator DOLE, offered, at least as one way prices. ator from Arkansas. of trying to resolve our agricultural The amendment also eliminates the Mr. PRYOR. Mr. President, as a legislation this year, the thought that mechanisms by which the Secretary Member of the U.S. Senate, it is so re- as Republicans we would offer our plan. can reduce the loan rate. The so-called markably easy from time to time to do It is called freedom to farm. It is the Findley amendment and the stocks-to- something. This is one of those times. plan I laid down and has been amended. use adjustment are both eliminated. This is a time when it is going to be We have been debating it throughout The amendment also removes the arbi- very easy to say to farmers across our the day. trary caps on loan rates which are con- country that you do not have to plant The majority leader challenged tained in the bill. These caps serve to to have a check. You are going to get Democrats to offer a plan, and the render loan rates lower at those times a check in advance. You can go on va- Democratic leader has done so. It is a when the loans are most useful to pro- cation, you can get your check from very different plan, and Members will ducers—times when prices are low. the taxpayers. This is one of those need to make choices as we finally Again, with this amendment there is times when I think we are about to come to votes on that plan. Let me just a little bit more stability, a little more make the terrible mistake, a terrible say Members ought to understand that certainty at those times when we know compass error, trying to do something the plan offered by the distinguished prices are going to fall. That is one of that is easy when actually we should Democratic leader has expenses at- the main reasons I support this pend- be doing something that is responsible. tached to it that are fairly substantial. ing amendment. Many of the farm organizations have The Congressional Budget Office esti- Another is to change the crop insur- come out now in support of the concept mates for increased spending on the ance. Back in 1994, the crop insurance of the freedom-to-farm movement. The loan rates amount to $7.6 billion over reform package imposed requirements freedom-to-farm legislation has re- the life of his bill. That is a very sub- that producers purchase catastrophic ceived the support, in the last several stantial sum. Earlier in the day, I criti- crop insurance coverage in order to days and hours, of many of the groups cized amendments by the distinguished participate in the farm program. Basi- that have opposed it. But, Mr. Presi- Senator from Iowa because they had cally I think it had some benefits, dent, that does not mean this is a piece expenditure increases of $260 million though I would have preferred to fix of legislation without flaw. It is seri- and $100 million respectively. I com- certain problems. But the pending bill ously flawed. It was a seriously flawed mented, and I think most Senators totally eliminates that requirement. piece of legislation when it was intro- agree, that we are still attempting to What is the effect? The effect of elimi- duced. It is seriously flawed today as work toward a balanced budget in this nating mandatory coverage. And that we go to a vote with a very short time country. The agriculture legislation is basically seals the fate of the Federal to debate it. a part of that, and the freedom-to-farm S 1046 CONGRESSIONAL RECORD — SENATE February 7, 1996 bill that I am advocating today care- Democratic leader’s program. I am payments from last year, but to also fully calibrates those decisions in hearing it and seeing it on first impres- put into law another form of payment terms of sacrifice that agriculture sion today, as are most Senators, al- that takes note of reduction in prices must make. though many elements of the program and reduction in yield. That is what The distinguished Democratic lead- are familiar from arguments we have the alternative does that is before us. er’s idea is to provide, I gather, higher had before. For example, earlier in the Mr. President, for decades we have income through rather startling day the Senate rejected the farmer- sought to protect farmers, to buffer change in the loan rate picture, and a owned reserve, as I heard—at least the farmers from dramatic swings in com- very expensive one—$7.6 billion more. I recitation a short while ago that modity prices. Under the Republican think Senators and taxpayers need to reappears. Likewise, we rejected the plan, the farmers are left swinging. understand that is a transfer payment thought that farmers ought to be sub- Farmers will no longer be protected in once again to farmers who might qual- sidized with lower CCC interest rates, low price years. The safety net on ify for those loans. although, as I recall, I think that which farmers have relied will be torn. Let me just suggest, Mr. President, reappears in the comprehensive pack- I do not think that is good policy. I do that as we have heard recitation of sto- age. not think it makes sense. I believe it ries about farmers struggling—and, in- In short, there are reappearances of will generate opposition to any future deed, the distinguished Senator from many elements that have been found farm programs. North Dakota mentioned the story of a very unsatisfactory in terms of farm Mr. President, our plan offers a com- lady attending a White House con- policy by farmers quite apart from the bination of the guaranteed payment up ference, as I gather, indicating the rest of the general public. Indeed, the front and price protection and protec- struggle that she had—those struggles Democratic leader’s bill is a collection tion against yields that are reduced as are well-known, and I have been point- of many programs that have had a high a result of natural disaster. Our plan is ing them out throughout the opportu- degree of failure and lack of con- a compromise. Our plan is a com- nities I have had today. fidence, and even a combination of promise which I think many on both The freedom-to-farm act provides them and with more money injected sides of the aisle could accept. It also is stability. It provides, despite criticism will not remedy that situation. something that I think can stand the of some Senators, a payment each Mr. President, I am hopeful that Sen- test of time. year. That is almost as certain as you ators will affirm the freedom to farm One of the great problems we have can make it, if a contract is signed. It idea and the elements that have been here is passing policies that can be sus- provides freedom to farm, but it also discussed now during this debate, and tained. The pure freedom-to-farm pol- provides certainty of income. Whatever might be said about cur- reject the alternative proposal of the icy is not one, in my judgment, that rent farm law and its extension, it does Democratic leader. will stand the test of time. There is a choice to be made today. I According to North Dakota State not provide a very great deal of cer- tainty. I can testify to that from my think the choice is a very clear one. University, net farm income in North own experience managing my own farm And I am most hope hopeful that Sen- Dakota under the pure freedom-to-farm property from 1956 until the present. I ators will support freedom to farm. will drop 50 percent from the year 1995 I thank the Chair. I yield the floor. have been involved at the ASCS office to 2001. Mr. DASCHLE. Mr. President, I yield throughout that period of time. I am The PRESIDING OFFICER. The Sen- 4 minutes of my leader time to the dis- very familiar with the corn program ator’s 4 minutes have expired. tinguished Senator from North Dakota. and the wheat program, and I would Mr. CONRAD. Mr. President, I ask The PRESIDING OFFICER. The Sen- simply say if I were a thoughtful per- for 1 additional minute. ator from North Dakota is recognized. Mr. DASCHLE. Mr. President, I yield son relying upon the type of security Mr. CONRAD. Mr. President, I thank provided by those programs, I would 30 seconds of additional time to the the leader, and I thank the Chair. have great fears all the time. Senator from North Dakota. Mr. President, this has been a dif- Obviously, each farmer plants for the Mr. CONRAD. Mr. President, I will ficult and contentious debate, one that market, and does the best that he or just conclude with an example. I have she can to maximize income. But let has gone on now since 1995 to 1996. We looked at a typical North Dakota farm me just say, Mr. President, in the free- stand on a precipice. The question is: with about 1,000 acres of wheat under dom-to-farm act that we have taken se- What direction will we take? I very normal production swings in the Con- riously the thought that we are in much fear that the so-called freedom- gressional Budget Office’s expected transition in the world. We may have a to-farm formulation will take literally price projections for 1996 to 2002. This broad swing, as Senators pointed out, hundreds of thousands of farmers right typical farm will receive 43 percent less at prices, but those certainly will be over the cliff. I believe that to be the under freedom-to-farm than under our mitigated by the certainty of income. case because this is a radical change in plan; $22,000 under the Family Farm It would appear to me that all farmers farm policy. It says we are going to Protection Act, and $15,000 under free- who are looking for, as has been char- make fixed and declining payments to dom to farm. acterized today, some certainty and farmers over a 7-year period and no one Our plan stands behind the farmers some stability would clearly find free- knows what comes next. and beside the farmers. Their plan dom-to-farm to be a superior alter- Mr. President, it does not provide the steps aside. native on those grounds alone. kind of price support in a low-price I thank the Chair. I yield the floor. Freedom to farm is also superior, as year that is critically important to The PRESIDING OFFICER. Who I have pointed out, on the basis of preventing the loss of literally tens of yields time? budget, on the basis of taxpayer ex- thousands of family farmers. That is Mr. DASCHLE. Mr. President, let me pense, and transfer payments of other right at the heart of this question and thank the distinguished chairman for citizens to the farm communities. this debate. Do we say to farmers, We his kindness. He has agreed to allow us Mr. President, freedom to farm also make a payment to you even when the use of 2 of his minutes. As I under- offers more certainty because it is a 7- prices are good, but there is no price stand it, I have 4 minutes of leader year program, not a 3-year program as protection when prices fall through the time remaining. suggested by the distinguished Demo- floor, no additional price protection? The PRESIDING OFFICER. The Sen- cratic leader. There is great stability Mr. President, I think that is a pro- ator has 3 minutes and 10 seconds re- in having a multiyear program. This is found mistake. maining. why, at least in the last two instances, I think we have an opportunity to Mr. DASCHLE. I ask unanimous con- we have tried for as long as a 5-year pe- take the best of the various proposals sent that the Senator from Arkansas riod of time, and most farmers have that are on the table and to have a have 3 minutes and the Senator from found that to be a very satisfactory plan that provides some fixed pay- Nebraska have 3 minutes to complete idea. ments up front to help farmers with our side of the debate. Mr. President, I will not attempt to cash flow, to especially help them with The PRESIDING OFFICER. Without go through each of the details of the the repayment of advanced deficiency objection, it is so ordered. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1047 Mr. BUMPERS addressed the Chair. who looks closely at our proposal will Where would that leave farmers? The PRESIDING OFFICER. The Sen- learn it has some good features. And They will get the short end of the ator from Arkansas. most importantly, it is infinitely bet- stick. Future budget negotiators will Mr. BUMPERS. Mr. President, the ter than what we have before us in the be hard pressed to defend excessive reason I strongly favor this substitute form of freedom to farm. freedom-to-farm transition payments is because it salvages rice markets. I thank the Democratic leader for when dramatic cuts are being made Under the freedom-to-farm bill, pay- yielding to me. elsewhere. ments start out big, peak in the third I yield the floor. What we need is a farm bill that pro- year, and they go down after that. Mr. EXON addressed the Chair. vides greater flexibility, one that pre- Right now, cotton, wheat, and corn, The PRESIDING OFFICER. The Sen- serves a basic safety net, one that pro- three of the big program crops in this ator from Nebraska is recognized for 3 tects family farmers, and one that tax- country, are all bringing more than the minutes. payers can support. target price, which means under exist- Mr. EXON. Mr. President, I rise in I strongly urge acceptance of the al- ing law those programs would not cost strong support of the Democratic alter- ternative offered by the Senator from us anything if those prices hold up native introduced by the Democratic South Dakota. through the rest of the year. leader. I yield the floor. That is not true of rice. And I am not The farm bill situation has become so The PRESIDING OFFICER (Mr. convoluted it is difficult to know where optimistic that rice will achieve any- FAIRCLOTH). The Chair recognizes the to begin. We face an unprecedented sit- thing like, say, $9.50 to $10 a hundred- Senator from Indiana. uation. Not since the 1950’s has the weight any time in the foreseeable fu- Mr. LUGAR. I thank the Chair. Congress failed to enact a farm bill in How much time remains on our side? ture. And so what is going to happen a timely fashion. This predicament is a The PRESIDING OFFICER. The Sen- under the freedom-to-farm act? Rice poor reflection on the 104th Congress. ator has 7 minutes and 20 seconds. farmers are going to be producing rice Is it any wonder that this year’s farm Mr. LUGAR. Mr. President, I see no for about $3 a bushel, if current prices bill debate has sunk so low? Not at all. other speakers on our side. Therefore, I stay up, $3.50, and they cannot do it. The bill before us, the so-called free- will summarize the case for freedom to They cannot stay in business. So ev- dom-to-farm bill, was never considered farm which, as a matter of fact, is erybody is being lured with this siren by the Senate Agriculture Committee. going to mean much greater flexibility song about how much money we are In the House of Representatives, Re- and freedom to farmers and provide going to pay you on the front end, and publican leadership bypassed the Agri- really the greatest degree of safety then it is over. culture Committee altogether after it over a 7-year period of time. Now, the Democratic alternative pro- failed there. Through a bit of par- Senators on the other side of the gram at least is a 3-year program, pro- liamentary magic, the measure was aisle supporting the distinguished vides for a 40-percent advance, and will routed through the House Rules Com- Democratic leader’s bill have talked at least give rice farmers a chance to mittee and then ramrodded into the about certainty and stability, about produce and stay in business. Under budget bill with little opportunity for the fact that farmers could go out of the freedom-to-farm bill, they will stay debate or amendment. business in large numbers in the rice in business the first 3 or 4 years—un- Throughout history, farm programs business or in other commodities that less public clamour forces the entire have had two essential purposes: to have been mentioned. There always is program to a quick termination, but smooth out devastating price fluctua- that danger, and this is one reason why after that they are going to start drop- tions, and to provide a reasonable safe- the legislation has occurred. ping like flies. ty net for family farmers. These are I simply say, Mr. President, if the de- I am not absolutely rhapsodic about still worthy goals and should be the sire is for security, freedom to farm is this substitute. I do not have any delu- subject of debate. by far the preferable option simply be- sions about it passing. But I wanted to Unfortunately, the freedom-to-farm cause it does have a certain payment vote for something so they can put on bill on both counts fails and essentially for 7 years. The Democratic leader’s my epitaph that I was violently op- turns farm programs into welfare pro- program is based upon current farm posed to the freedom-to-farm bill be- grams. It destroys the essential and policy and lasts for 3 years, and, as I cause I think it is one of the worst dis- the traditional connection between the have pointed out, from my own experi- asters this country is going to face. market price and farm payments. ence even if there is a loan rate there We did not put in place the existing In short, freedom-to-farm promises or even if there are target prices and law just on a whim. We did it because fixed transition payments, based on deficiency payments that come when we thought it was a good balance be- historic production levels which de- market prices are lower, these are un- tween the taxpayers and the farmers. cline over time. These payments will certain in volume. They are no more It is a good balance, and it is working. be made regardless of market prices, as likely to provide stability or certainty It is working extremely well. You the Senator from Arkansas has just in- that a farmer will stay in business. could not pick a worse time to do away dicated. In other words, they are en- Mr. President, we are on the thresh- with today’s program. On the other tirely divorced. That approach is not old, in my judgment, of an unprece- hand, if you wanted to do away with market oriented. It is market ignorant. dented period in American farm his- farm programs, with today’s high Some have been led to believe this tory dictated largely by our success in prices for most commodities, a time might be a fair tradeoff; money up export markets. In this particular when farmers know that they don’t front in return for total elimination of year, the Chinese turn of events, that need immediate assistance from Fed- farm programs as originally drafted. is, their move to import as opposed to eral farm programs, you couldn’t find a Now, in a clever but meaningless ges- export, has turned around prices, as better time or a darker night in which ture, in my view, it has been agreed to Senators have pointed out on both to do it. This substitute retains the re- delete the elimination of the 1949 act. sides of the aisle, remarkably high quirements of actually farming in That sounds great, but does anyone be- prices for wheat and corn and soy- order to participate in farm programs. lieve we would ever agree to $700 wheat beans. Other factors have led to very This may seem like a trivial require- and $500 corn? high prices for cotton during this mar- ment, but it does not exist at all in the The National Center for Agricultural ket year. freedom-to-farm bill. This substitute Law Research and Information has Senators have pointed out, given the continues to provide a true safety net studied the fine print of the freedom to fact that market prices are well above for farmers during periods of market farm act and concludes that the pay- the target prices, there is a case to be collapse. This substitute will protect ments ‘‘* * * are not guaranteed for made that there is no Government pay- farmers when they need it and it does the life of the Freedom to Farm legis- ment at all under those circumstances. not offer them a golden parachute to lation.’’ Other legal experts agree. This leads to some question as to the tropics. Simply put, this so-called 7-year con- where the 40-percent payment would Farming is hard work, and this sub- tract would be just as vulnerable as come from, for example, in a year such stitute works with farmers. Anyone any other Federal program. as this. S 1048 CONGRESSIONAL RECORD — SENATE February 7, 1996 Would USDA ignore all the market cratic leader and hope that those who This is particularly important be- signals, ignore the facts, even if we still have something to say will come cause this bill proposing expanding the were looking toward the year we are promptly. I will try to expedite the criteria for conservation plans from about to plant, in which a farmer could process. soil erosion control to include such sell a contract, a futures contract for AMENDMENT NO. 3453 TO AMENDMENT NO. 3184 goals as wildlife management and corn at least 25 cents above the target (Purpose: Require the Department of Agri- water quality control. price? You can do that now. Where is culture to allow private sector to develop The idea behind the amendment is to the advance deficiency payment in that farm management plans) cement the private-public partnership situation? Any honest observer of the Mr. LUGAR. Mr. President, I send an which already exists. We cannot kid scene would say there is no deficiency amendment to the desk on behalf of ourselves—Federal resources to provide payment. It is 40 percent of zero. Where Senator KEMPTHORNE and ask for its technical assistance to farmers are the new stability and certainty comes immediate consideration. going to continue to be limited. This for farmers from that calculation, I fail The PRESIDING OFFICER. The amendment would assure that farmers to see. clerk will report the amendment. have a strong local resource to supple- We are so mired in our thoughts The bill clerk read as follows: ment the efforts of the Extension Serv- about the past that we are unable to The Senator from Indiana [Mr. LUGAR], for ice and the Natural Resources Con- take a look at what is presently ahead Mr. KEMPTHORNE, proposes an amendment servation Service. of us. In fact, the crop year we have numbered 3453 to amendment No. 3184. Mr. LUGAR. Mr. President, the just had, the one we are about to have, Mr. LUGAR. I ask unanimous con- amendment I offer on behalf of the dis- and about to have after that—to sent that further reading of the amend- tinguished Senator from Idaho would stretch my argument a little farther— ment be dispensed with. ensure that farmers have not only the you can take a look at the futures mar- The PRESIDING OFFICER. Without freedom to farm, but the freedom to ket and sell your crop for the year objection, it is so ordered. farm wisely. The amendment makes after this one and still get a certain The amendment is as follows: sure that farmers can go to the sources price above the target price for corn. At page 3–25 after line 8 and before line 9 they need, including agribusiness ex- It has been some time since that was insert the following paragraph so that begin- ning at line 9 the bill reads: perts, to develop management plans for possible. But those are the realities their farms to meet Federal conserva- now. Where is the advance deficiency ‘‘(8) Notwithstanding any provision of law, the Secretary shall ensure that the process tion requirements. payment in years 1 or 2, if you take an of writing, developing, and assisting in the My understanding is that this honest look really at markets at this implementation of plans required in the pro- amendment has been agreed to on both point? grams established under this title be open to sides. What we are saying, those of us advo- individuals in agribusiness including but not Mr. LEAHY. We have no objection, cating this legislation today, freedom limited to agricultural producers, represent- Mr. President. to farm, is that obviously what goes up atives from agricultural cooperatives, agri- cultural input retail dealers, and certified The PRESIDING OFFICER. If there can come down. In the 3d, 4th, 5th, 6th, is no further debate, the question is on 7th year there might be great uncer- crop advisers. This process shall be included agreeing to the amendment of the Sen- tainty. And if there is, there is a cer- in but not limited to programs and plans es- ator from Idaho. tain payment, and you still keep your tablished under this title and any other De- partment program using incentive, technical The amendment (No. 3453) was agreed eyes on the market. That is the best assistance, cost-share or pilot project pro- to. course for agricultural producers, those grams that require plans.’’ Mr. LUGAR. I move to reconsider the commodities that there is demand for, Mr. KEMPTHORNE. Mr. President, I vote. and to decouple this from the necessity would like to comment on my amend- Mr. LEAHY. I move to lay that mo- to plant a certain thing to produce a ment to the bill now before us. S. 1541 tion on the table. history or to produce a payment. proposes significant change to our na- The motion to lay on the table was So, Mr. President, I oppose the dis- tional farm policy, with the goal of agreed to. tinguished Democratic leader’s idea. bringing our Nation’s farmers into a Mr. LUGAR. Mr. President, I suggest He has risen to the challenge of offer- healthy market environment. This the absence of a quorum. ing an alternative, but it is not a supe- amendment will facilitate that transi- The PRESIDING OFFICER. The rior one. The freedom-to-farm bill we tion. clerk will call the roll. have before us, in my judgment, is our Farmers in my State and across the The bill clerk proceeded to call the best bet. I hope it will have a standing country participate in numerous con- roll. success in final passage and, mean- servation efforts. These include feder- Mr. WELLSTONE. Mr. President, I while, that we defeat the Daschle ally directed programs including con- ask unanimous consent that the order amendment. servation compliance requirements of for the quorum call be rescinded. Mr. President, I see no further debat- farm program, and voluntary programs The PRESIDING OFFICER. Without ers on our side. Therefore, I yield back like the Conservation Reserve Program objection, it is so ordered. all time on our side on this amend- and the Wetlands Reserve Program. Mr. WELLSTONE. Mr. President, ment. The success of these programs is due just for a few moments while we are I ask unanimous consent, in the pres- in large part to a strong relationship waiting, I thought I might think out ence of the distinguished Democratic with the private sector and agri- loud with a few reflections about this leader, that the amendment be tempo- business farm management planners farm bill. rarily laid aside, as we have pending and advisors. These advisors are mem- I said to my colleague from Vermont negotiations on when votes will come. Mr. DASCHLE addressed the Chair. bers of the community, they live and and my colleague from Indiana, they The PRESIDING OFFICER. The work on a day to day basis with farm- have been very cooperative. With the Chair recognizes the Democratic lead- ers. These advisors are qualified with managers’ amendment, there will be er. the latest agronomic, conservation technical corrections to reflect a deci- Mr. DASCHLE. Mr. President, I just technological and farm planning tech- sion we made earlier this morning that say that if we are going to complete niques. I am very pleased about as a Senator our work by 4:45, we will have to begin Mr. President, it would be a shame if from Minnesota, as a Senator from the voting, by my calculation, at 3:35. So if we did not ensure that farmers could Upper Midwest. That is to say we will there are additional amendments to be tap into this resource as they strive to not have a Northeast dairy compact. I offered, we have less than a half-hour develop the best conservation plan pos- will not go over that debate, but I was to do so. sible for their farmland. This amend- very pleased with the vote this morn- The PRESIDING OFFICER. Is there ment ensures that farmers have the ing. objection to the request? not only the freedom to farm, but to It is with some concern that I speak Without objection, it is so ordered. farm wisely by allowing them the about the direction we are going be- Mr. LUGAR. Mr. President, I second broadest possible source of technical cause, Mr. President, I think what we the advice of the distinguished Demo- information and support. are going to see with this freedom-to-farm February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1049 approach is a kind of combination of mous consent that Senator HARKIN be minerals. This incontrovertible fact carrot and stick. The carrot will be added as a cosponsor. was recognized not once, but twice, by that farmers will get higher support The PRESIDING OFFICER. Without the U.S. Senate in 1993 when it passed payments that go with good price that objection, it is so ordered. the Dietary Supplement Health and farmers are getting right now. I am The clerk will report the amendment. Education Act, Public Law 103–417. pleased to see that good price. The assistant legislative clerk read I need not remind my colleagues that But the question becomes in the me- as follows: the dietary supplement bill passed dium run, in the long run, what hap- The Senator from Utah [Mr. HATCH], for without a single dissenting vote in ei- pens when farmers no longer get that himself, Mr. MCCONNELL, and Mr. HARKIN, ther body, abundant proof, I believe, as good price, whether it be because of the proposes an amendment numbered 3277 to to the safety and public health benefits weather, whether it be because of a amendment No. 3184. of both vitamins and minerals. flood, or whether it be because of the Mr. HATCH. Mr. President, I ask For any of my colleagues who remain position that farmers are in all too unanimous consent that the reading of unconvinced, I direct their attention to often, not so much as pricemakers but the amendment be dispensed with. Senate Report 103–410 which provides pricetakers. The PRESIDING OFFICER. Without numerous references to scientific stud- My concern about the stick is that I objection, it is so ordered. ies supporting the nutritional benefits think where this takes us eventually is The amendment is as follows: of dietary supplements. that farmers are going to find them- At the end of title IV, insert the following: In fact, studies have shown that more selves on their own when it comes to SEC. 406. NUTRITIONAL SUPPLEMENTS. than 100 million Americans regularly dealing with Cargill, or on their own (a) FINDINGS.—Congress finds that— use vitamins and minerals to ensure when it comes to dealing with the Chi- (1) the dietary patterns of Americans do that their basic nutritional require- cago Board of Trade. Quite frankly, I not result in nutrient intakes that fully ments are met, to support their health wish we had Adam Smith’s invisible meet Recommended Dietary Allowances during periods of special risk, and to hand. I wish we had real free enterprise (RDAs) of vitamins and minerals; (2) children in low-income families and the help protect against chronic disease. in agriculture, but I see an industry Let me point out that there is an where, I think, the conglomerates have elderly often fail to achieve adequate nutri- ent intakes from diet alone; ample body of evidence to show that muscled their way to the dinner table (3) pregnant women have particularly high many Americans simply do not have with tremendous concentration of nutrient needs, which they often fail to meet healthy diets, and this is true for chil- power. through dietary means alone; dren as well as for men and women. So I worry about the cap on the loan (4)(A) many scientific studies have shown For example, in one Government rate and farmers not having a strong that nutritional supplements that contain study of the eating habits of more than bargaining position as they look to an folic acid (a B vitamin) can prevent as many 21,000 people, not a single person got oligopolistic and, for that matter, mo- as 60 to 80 percent of neural tube birth de- fects; the full recommended daily allowance nopolistic market. of 10 key vitamins and minerals—and So I am proud of the vote this morn- (B) the Public Health Service, in Septem- ber 1992, recommended that all women of that was just one study. ing, 50 to 46. It was extremely impor- Many other studies have shown that tant to my State. I felt like the com- childbearing age in the United States who are capable of becoming pregnant should the poor and elderly in our country are pact was a poison pill for dairy farmers consume 0.4 mg of folic acid per day for the especially likely to have low nutrient in Minnesota. We still are going to con- purpose of reducing their risk of having a intakes, often with significant health tinue—I have been at it for 5 years— pregnancy affected with spina bifida or other consequences. For example, a 1992 trying to reform this milk marketing neural tube birth defects; and study by a world-renowned authority order system. As I look at the overall (C) the Food and Drug Administration has bill, that was a victory for dairy farm- also approved a health claim for folic acid to on immune function reported that giv- ers. I hope we will have a milk market- reduce the risk of neural tube birth defects; ing a modest multivitamin with min- ing order system that will be good for (5) infants who fail to receive adequate in- erals to a group of men and women dairy farmers everywhere in the coun- takes of iron may be somewhat impaired in over the age of 65 for a period of 1 year their mental and behavioral development; try. I have to say, I think this bill we cut the number of sick days in this and group to half compared to a similar are about to vote on is, as I said, a (6) a massive volume of credible scientific great carrot in the short run, good unsupplemented group. evidence strongly suggests that increasing Perhaps the best example is folic prices and contract payments, but in intake of specific nutrients over an extended the long run, I think what it says to period of time may be helpful in protecting acid, which the Food and Drug Admin- farmers is you are on your own with against diseases or conditions such as istration steadfastly resisted revealing Cargill, with the Board of Trade. I do osteoporosis, cataracts, cancer, and heart to America’s women as a significant not think the farmers in Minnesota or disease. protector against birth defects. (b) AMENDMENT OF THE FOOD STAMP ACT OF So while we all recognize it would be across the country will fare well with 1977.—Section 3(g)(1) of the Food Stamp Act that approach. desirable for Americans to eat healthy of 1977 (7 U.S.C. 2012(g)(1)) is amended by foods and maintain an adequate diet, With that, Mr. President, I yield the striking ‘‘or food product’’ and inserting ‘‘, floor. that simply is not happening. food product, or nutritional supplement of a The purpose of the Food Stamp Pro- Mr. LUGAR addressed the Chair. vitamin, mineral, or a vitamin and a min- The PRESIDING OFFICER. The Sen- eral’’. gram, and let me quote from the De- partment’s own regulation, is to ‘‘pro- ator from Indiana. Mr. HATCH. Mr. President, this is mote the general welfare and to safe- Mr. LUGAR. I am advised the distin- the text of a bill, S. 1133, authored by guished Senator from Utah has an guard the health and well-being of the Senators MCCONNELL, HARKIN, and my- amendment. I hope he will offer it pres- Nation’s population by raising the lev- self. Senators MCCONNELL and HARKIN els of nutrition among low-income ently. We are coming down close to the are chair and ranking member of the time that the distinguished leader households.’’ Nutrition Subcommittee, and we con- mentioned we will commence the roll- I think that just about makes my sider this a very important amend- call votes. case. Vitamins and minerals do just Mr. HATCH addressed the Chair. ment. that; they raise levels of nutrition. The PRESIDING OFFICER. The This is a small amendment, but Vitamins and minerals can prevent Chair recognizes the Senator from makes a good deal of sense. It allows half of all neural tube defects in Amer- Utah. food stamps to be used to purchase vi- ica. tamins and minerals, a practice which AMENDMENT NO. 3277 TO AMENDMENT NO. 3184 They can protect against heart dis- (Purpose: To amend the Food Stamp Act of I believe is permissible under current ease and stroke. 1977 to permit participating households to law, but which is not allowed due to They can improve appetite growth in use food stamp benefits to purchase nutri- Agriculture Department policy, a ridic- poor children. tional supplements of vitamins, minerals, ulous policy, I might add. It is time to They can protect against some can- or vitamins and minerals) change it. cers. Mr. HATCH. Mr. President, I call up There is ample evidence to show the They can build bone mass in chil- amendment No. 3277 and ask unani- nutritional benefits of vitamins and dren. S 1050 CONGRESSIONAL RECORD — SENATE February 7, 1996 They can improve mental develop- can improve the health of the Amer- pitals that provide Medicare and Med- ment in infants. ican people. icaid services. How many of us would Those are very compelling reasons When we passed the Dietary Supple- support that approach? That is how ri- why the other Senators and I think ment Health and Education Act last diculous this is. this is a good amendment. year, and it passed the Senate twice by Let me spend a few moments to re- Frankly, I do not know why anyone unanimous consent, it is no secret that view what I hope is a now-undisputed would have an objection to this amend- the administration, in general, and the fact that dietary supplements are bene- ment. Food and Drug Administration, in par- ficial to health. Indeed, I do not know why the Agri- ticular, resisted our efforts. I mentioned a few of the health bene- culture Department has chosen to ex- To me, the USDA testimony is but fits of supplements that were on the clude vitamins and minerals from food further evidence that this administra- chart, including protection against stamp coverage. tion cannot, or will not, accept the fact heart disease and stroke. This is the As I read the applicable regulations, that dietary supplements can benefit number one cause of death in this they only state that eligible foods are the American people. country. ‘‘any food or food product intended for As I mentioned, this was made abun- We also know that supplements can human consumption except alcoholic dantly clear with the Food and Drug help promote growth in children. Ac- beverages, tobacco, and hot foods and Administration’s foot-dragging on ap- cording to testimony presented by the hot food products prepared for imme- proving a health claim for folic acid. Council for Responsible Nutrition, low- diate consumption.’’ Even after the Centers for Disease Con- That would certainly seem to include income children can particularly bene- trol and Prevention made a formal rec- vitamins and minerals which are by fit from consuming the recommended ommendation, endorsed by the Public Federal law considered to be foods. The daily allowances of vitamins and min- Health Service, the FDA held back. It law to which I refer is the Dietary Sup- erals. has been estimated by public health ex- plement Health and Education Act of As the National Nutritional Foods perts that 50 percent of neural tube de- 1994, a bill which passed this body Association has pointed out, we know fect cases could be eliminated by con- twice with literally no objection at all. that supplements can help protect I understand that it is the Food and suming 0.4 milligrams per day of folic against cancer, help build bone mass in Nutrition Service Handbook 318 which acid a day. I fail to see how a food children and the elderly, and help im- prohibits food stamp purchases of vita- stamp policy that allows women to prove mental developments in infants. mins and minerals under the theory purchase folic acid in pill form can do Last year, as my colleagues may re- that they are deficiency correctors or anything but to further the public call, when we passed the dietary sup- therapeutic agents. That definition health. We are talking about healthy plement legislation, our findings in- flies in the face of the Food, Drug and babies. That’s what this amendment cluded these two statements: Cosmetic Act, which, as modified by does. Congress finds that the importance of nu- the Dietary Supplement Health and Another argument that the adminis- trition and the benefits of dietary supple- Education Act of 1994 confirms that di- tration and other critics of the policy ments to health promotion and disease pre- etary supplements are—by law—foods. make is that—and I quote from the ad- vention have been documented increasingly I think many of my colleagues would ministration’s own testimony—‘‘Add- in scientific studies; there is a link between ing more stores and more products the ingestion of certain nutrients or dietary be astounded to learn that under the supplements and the prevention of chronic Agriculture Department’s interpreta- would certainly make our efforts to fight fraud and abuse more difficult.’’ diseases such as cancer, heart disease, and tion, a food stamp recipient can buy osteoporosis. First off, I do not see how the argu- sunflower seeds or wheat germ, but not It seems to me that changing the vitamin C or calcium tablets. ment about adding more products passes the laugh test when you con- food stamp laws to encourage low-in- So we are forced to come to the floor come people to use these product is today and correct this agency mis- sider that each year literally thou- sands of food products and food produc- good public policy. interpretation. As my colleagues can see from my To me, the reasons for our amend- ers enter the marketplace, and vir- second chart, it has been estimated ment are obvious. We want to help im- tually all of these products are food that in 1994 about $216 billion was spent prove nutrition, and vitamins and min- stamp eligible, no questions asked. by Americans on food products in su- erals can do just that. I also don’t see how opening up the As one expert pointed out during Food Stamp Program to new outlets, permarkets. House hearings on this issue, food presumably health food stores, not al- A little over three quarters of this, stamp recipients have free choice of ready selling some conventional prod- 77.7 percent, was spent on so-called virtually every food sold in the super- ucts would appreciably increase the in- core foods; these are foods that, in lay market—except vitamins and minerals. cidence of fraud or abuse. Query how terms, your mother and your health Let us think about the wisdom in that many retail outlets that sell vitamins teachers taught you are good to eat. policy. and minerals don’t also already sell These core foods include produce, To be fair, some expressed concerns food stamp-eligible products? dairy products, meat, poultry, seafood, about the wisdom of adopting this It seems to me that many grocery baby food, juices, nuts, pasta, rice, change in the law, but I believe there store, pharmacy, and health food store bread, and other good food. are compelling counter arguments already sell food stamp-eligible prod- As the diagram also shows, what which this body should consider. ucts. Even if some new retail outlets some have termed frivolous foods, For example, I recognize that Ms. come on line with this change, I think make up 21.7 percent of food sales in Yvette Jackson, Deputy Administrator that is a good thing. supermarkets. These foods are exactly of the Food Stamp Program, has testi- I challenge anyone in this body to what you think they are: snack foods fied against the House version of this present any factual information that that are so good to eat but may not be amendment. supports the proposition that a modest the most healthy choice. If you think Frankly, I am disappointed with the expansion of new stores would nec- about what you ate during the Super administration’s testimony and dis- essarily lead to more fraud and abuse. Bowl—chips, cookies, candy, soft mayed with its rationale. In the House I certainly never have seen this type drinks, and the like, you know what we testimony, Ms. Jackson was quoted as of argument used to curtail new ven- mean when we use the term frivolous saying: ‘‘It is unclear what effect a pol- dors from becoming eligible to partici- foods. They have a place in our diets, icy permitting the use of food stamp pate in a Federal entitlement program. but so do vitamins and minerals. benefits to purchase vitamin and min- Let us be honest about it. If one ex- About 22 cents out of every $1 goes to eral supplements would have on the tended this argument to its logical these types of products, which amount- ability of recipients to purchase a var- conclusion, we should cut back the ed to some $47 billion in 1994. ied and nutritious diet.’’ 216,000 stores that utilize food stamps. Compare that substantial amount of I do not see what could be more clear And while we are at it, we should cut purchasing power with the less than 1 than the fact that dietary supplements back the number of doctors and hos- percent—about $587 million in 1994—that February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1051 was estimated to be spent on vitamins Mr. HATCH. I am happy to yield or less of the poverty level have higher in food stores during the same period. whatever time I can. rates of deficiencies in vitamins A, D, In relative terms, much, much more Mr. HARKIN. Are we operating on a C, B–6 and B–12, as well as iron and is spent on what some nutritionists time limit? niacin. They need these nutrients to would call junk foods than on vita- The PRESIDING OFFICER. The Sen- have a healthy baby. And we know the mins. ator has 41⁄2 minutes. great benefits of this. The reason I point this out is not to Mr. HARKIN. Will the Senator yield Mr. President, the amendment that castigate any particular type of food. a couple minutes? I’ve joined the Senator from Utah, Sen- Rather, since some of my colleagues Mr. HATCH. Yes. ator HATCH in offering is a common- criticize this amendment because they Mr. LEAHY. How much time is there sense amendment allowing low-income say it dilutes the spending power of the in opposition? people greater access to nutritional food stamp, I would like to point out The PRESIDING OFFICER. Four supplements. It is bottom-line common how very, very small spending on vita- minutes ten seconds. sense. Why should we not allow them mins and minerals is compared to all Mr. LEAHY. Mr. President, the side to buy vitamin A or vitamin C, iron other foods sold in the supermarket in opposition has not spoken a word and mineral supplements, but allow setting. yet. them to buy Twinkies or Cheese Whiz?. And so I think we must question the The PRESIDING OFFICER. It is 4 public health benefit of continuing a minutes for the proponents, 15 minutes I say it is time to say to the people policy that allows for Federal sub- for the opponents. on food stamps, they can have access sidization of frivolous foods but pre- Mr. HARKIN. Mr. President, I am in to vitamin and mineral supplements to vents food stamp coverage of valuable strong support of the amendment of- improve their health. dietary supplements? Indeed, I think fered by Senator HATCH. It is a com- Mr. LEAHY. Mr. President, there is both should be covered, and that is my monsense amendment that is based on much in this amendment that sounds point. legislation we introduced last year appealing until you look at it. Let me drive this home. As my last along with our distinguished chairman I have to say I strongly, strongly op- chart shows, it is OK under current of the Nutrition Subcommittee, Sen- pose the idea of the amendment. It food stamp policy to buy all the soda ator MCCONNELL. would be a major, significant change in pop you want—and this may be very re- Today food stamps can be used to our food stamp legislation. It would be freshing but it probably is not the most buy Twinkies, but not vitamin C. That done without any debate, really—15 healthful product in the world. does not make sense. Poor children and minutes on the floor, no hearings, At the same time, it is not OK to use women and elderly often have signifi- without going through the committee food stamps to buy vitamins and min- cant vitamin and mineral deficiencies. of jurisdiction, without looking at the erals that generally are agreed upon by For examples, studies have shown that complexities of it. At a time when 1 health experts to have unquestioned 40 percent of poor children have iron out of every 10 Americans are on food health benefits for the people who use deficiencies and 33 percent have vita- stamps, when the budget is being them. min E deficiencies. stretched, this makes no sense at all. In other words, a food stamp recipi- Our amendment is supported by a In fact, many of the families who are ent can use a coupon to purchase a 50- broad coalition of groups and nutrition on food stamps today find they run out cent can of soda, but not a 2-cent experts. For example, it is backed by of food by the end of the month. Add- multivitamin. That is the most com- the Alliance for Aging Research, the ing other things they could purchase is pelling argument I know against those Spina Bifida Association of America, not going to help. In the 1991 publica- who feel that this amendment would the National Osteoporosis Foundation tion of the National Academy of dilute the purchasing power of the food and the National Nutritional Foods As- Sciences, they said food, rather than stamp. sociation. It is also supported by nutri- vitamin and mineral substances, I think our amendment would help tion experts and various scientists and should serve as the sole source of nutri- recipients to make more wise pur- heads of departments, including Dr. ents to meet the dietary needs. This is chases. Paul Lachance, chairman of the De- not asking food stamp purchasers to go It seems to me that something is partment of Food Science at Rutgers wrong with this picture and what is on a yuppie diet fad of the moment University; Dr. Jeffrey Blumberg of that somehow they can just have vita- wrong is that vitamins and minerals Tufts University; Dr. Charles should be covered by the food stamp min pills, whether they work or not— Butterworth, Director of Human Nutri- expensive, they should work—whether program as well as all other foods. tion at the University of Alabama Bir- I think it is entirely appropriate, in- they work or not and substitute it for mingham; and Dr. Dennis Heldman, deed warranted, that any participant food. chairman of the Department of Food in the food stamp program who wants We are facing potential food stamp Science and Human Nutrition at the to improve his or her own health be al- cuts as it is. To cut even more of the University of Missouri. amount of money available to food lowed to purchase vitamins and min- Mr. President, there is absolutely no makes very little sense to me. It is a erals. evidence to suggest that people will Why allow parents on food stamps significant change in the food stamp forego important food purchases to buy the opportunity to give their children legislation that was carefully put to- vitamins. In fact, you can buy a Cheez Whiz instead of vitamin C? Why gether over the years by people on both month’s worth of multivitamins for not do both? sides of the aisle, by the distinguished about the price of one can of soda. Why allow pregnant women to buy Republican leader, the senior Senator So I do not think we have to worry Fritos but not folic acid, which pre- from Kansas, by the distinguished sen- that somehow food stamp recipients vents neural tube defects? ior Senator LUGAR, by myself, and oth- will be wasting money. Quite the con- Does this body really stand for the ers. To willy-nilly change it does not trary, if the amendment goes proposition that a Twinkie a day is make sense. I would not support it. through—they can buy vitamins and more nutritious than a multivitamin? I wish that the proponents would Mr. President, if there is room in the minerals. This simply allows the food stamp recipients the right to improve withdraw the amendment. If they do food stamp program for vanilla wafers not, I will join with others in opposi- and Milky Ways, surely, there is room their intake of key vitamins and min- erals. tion to it in an effort to defeat the for vitamins and minerals as well. amendment. I hope our colleagues will support I make a plea on behalf of pregnant this amendment. We think it is a women, especially poor pregnant Mr. LUGAR. How much time remains worthwhile amendment. We hope that women who are on food stamps. We on both sides of the amendment? we can have the support of our friends. know the evidence is clear that many The PRESIDING OFFICER. There I yield the floor. lower income women are more likely are 12 minutes and 18 seconds; and on Mr. HARKIN. Does the Senator have to have inadequate intake of key nutri- the proponents’ side, there is no time some time to yield? ents. Women with incomes 130 percent remaining. S 1052 CONGRESSIONAL RECORD — SENATE February 7, 1996

Mr. LUGAR. I take this moment to MCCONNELL has a bill in that we are co- are actually farming the land. If you ask unanimous consent that imme- sponsoring to do just this. believe in that, then support this diately following debate on the Hatch Hearings are fine. We welcome the amendment. amendment regarding vitamins, the hearings. Again, could we have some I yield the floor. Senate proceed to a vote on or in rela- vehicle on which we might be able to The PRESIDING OFFICER. All time tion to the Dorgan amendment No. move this at some point later, either is expired. The question is on agreeing 3451, to be followed by a vote on or in for up or down after the hearings? If we to the Dorgan amendment. relation to the Daschle substitute could have some type of an agreement The yeas and nays have been ordered. amendment, to be followed by a vote to move the bill, the McConnell-Hatch- The clerk will call the roll. on or in relation to the Hatch amend- Harkin bill. The assistant legislative clerk called ment. Mr. HATCH. If the leaders will help the roll. Further, that Senator LUGAR be rec- us move the bill, and the leaders will Mr. LOTT. I announce that the Sen- ognized to offer a final amendment to help call it up, I think we could do it in ator from New Mexico [Mr. DOMENICI], include an additional manager’s 10 minutes, because I think we can the Senator from Texas [Mr. GRAMM], amendment; and following the adop- make more than an adequate case. and the Senator from Oregon [Mr. HAT- tion of that, the Senate proceed to vote It is a smart thing to do for the FIELD] are necessarily absent. on the modified Craig-Leahy sub- American people. It is hard to under- Mr. FORD. I announce that the Sen- stitute, to be immediately followed by stand how anybody could understand ator from New Jersey [Mr. BRADLEY] is a vote on passage, as modified. And fur- that this is not a good amendment. necessarily absent. ther, there be 1 minute of debate equal- We will be happy to do it your way if The PRESIDING OFFICER (Mr. ly divided in the usual form between the leader prefers. THOMPSON). Are there any other Sen- each of the stacked votes. Mr. DOLE. If we make a case, that is ators in the Chamber who desire to The PRESIDING OFFICER. Without fine. vote? objection, it is so ordered. Mr. LEAHY. My understanding is we The result was announced—yeas 48, Mr. LUGAR. I ask unanimous con- would have hearings first. nays 48, as follows: sent that all votes following the first Mr. LUGAR. I have indicated we will [Rollcall Vote No. 17 Leg.] rollcall vote in this sequence be lim- have hearings. YEAS—48 ited to 10 minutes in length. Mr. HATCH. In a relatively short pe- Akaka Feinstein Levin The PRESIDING OFFICER. Without riod of time. Baucus Ford Lieberman Biden Glenn Mikulski objection, it is so ordered. Mr. LUGAR. As promptly as we can. Bingaman Graham Moseley-Braun Mr. LUGAR. I say, with relation to Mr. HATCH. Mr. President, on behalf Boxer Gregg Moynihan the current amendment, that no one of my cosponsors, we withdraw this Breaux Harkin Murray amendment and hope it accommodates Bryan Heflin Nunn disputes the need for good nutrition, Bumpers Hollings Pell but the amendment obviously opens our colleagues and our leader. Byrd Inouye Pryor the door for food stamp recipients to The PRESIDING OFFICER. Without Cohen Johnston Reid spend scarce food dollars on items objection, it is so ordered. Conrad Kennedy Robb The amendment (No. 3277) is with- Daschle Kerrey Rockefeller other than food. There is no dispute Dodd Kerry Sarbanes that it is best to get vitamins and min- drawn. Dorgan Kohl Simon erals from food. AMENDMENT NO. 3451 Exon Lautenberg Wellstone Therefore, I oppose the amendment. I Mr. LUGAR. We now proceed to the Feingold Leahy Wyden will not speak further. vote on 3451, the Dorgan amendment, NAYS—48 Mr. DOLE. I hope the Senator from with 30 seconds on each side. Abraham Frist McConnell Utah and the Senator from Idaho Mr. DORGAN addressed the Chair. Ashcroft Gorton Murkowski The PRESIDING OFFICER. The Bennett Grams Nickles might let us have hearings on it. It Bond Grassley Pressler might have a lot of merit. I think rath- pending question now is the Dorgan Brown Hatch Roth er than press it to a vote and lose, it amendment No. 3451. Who yields time Burns Helms Santorum might be preferable to have a hearing on the amendment? Campbell Hutchison Shelby Chafee Inhofe Simpson in the Agriculture Committee and the Mr. LUGAR. Mr. President, I ask for Coats Jeffords Smith Nutrition Subcommittee. I am happy the defeat of the Dorgan amendment. Cochran Kassebaum Snowe to be there if that would help. Clearly, the idea that farmers will not Coverdell Kempthorne Specter Mr. HATCH. I wonder if I could ask utilize the land to plant and try to ob- Craig Kyl Stevens D’Amato Lott Thomas the two leaders, is it possible to agree tain income is not a sound one. The at- DeWine Lugar Thompson to have hearings on this matter? tempt of the Dorgan amendment, once Dole Mack Thurmond I cannot see for the life of me why again, is to couple together payments Faircloth McCain Warner this adds anything to the cost of food with controls. We are opposed to that NOT VOTING—4 stamps. It just says that instead of with freedom to farm. Bradley Gramm buying pop, you might buy vitamins The PRESIDING OFFICER. The Domenici Hatfield and minerals. Chair recognizes the Senator from So the amendment (No. 3451) was re- Mr. DOLE. It may be a good idea. North Dakota. jected. Mr. HATCH. If you will hold hearings Mr. DORGAN. Mr. President this is Mr. BOND. Mr. President, I move to and if we can make a case that this is the simplest possible amendment. If reconsider the vote. beneficial—I have no doubt in my mind you believe payments ought to go to Mr. COHEN. I move to lay that mo- we will make that case—if you will farmers for the purpose of not farming, tion on the table. hold a hearing on this specific issue on then you want to defeat this amend- The motion to lay on the table was a bill that we will file, and if we make ment. If you believe this is a farm bill agreed to. the case you will help us move the bill, to help farmers who are farming, then AMENDMENT NO. 3452 I am willing to withdraw the amend- you should support it. If you do not The PRESIDING OFFICER. The ment for now. But if not, we should want to be making payments to people question occurs on agreeing to amend- just vote on it. who simply have some land and a bank ment No. 3452 offered by the Demo- Mr. LUGAR. I pledge to the distin- account, and do not start a tractor, do cratic leader, Mr. DASCHLE. guished Senator, after consultation not use a combine, and do not plant Mr. DASCHLE. Mr. President, I ask with my distinguished colleague—— anything, then you should be for my for the yeas and nays. Mr. HARKIN. If I might have the at- amendment. This is not about controls The PRESIDING OFFICER. Is there a tention of the distinguished majority or flexibility. It is a question whether sufficient second? leader, I think having hearings would you want a farm program that is going There is a sufficient second. be a good thing to have to look at this to pay farmers for not farming. The yeas and nays were ordered. proposal. It is something that both I want a farm program that is a good Mr. DASCHLE. I yield back the re- Senator HATCH and I—and Senator program and that helps farmers who mainder of my time. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1053 The PRESIDING OFFICER. Under poses an amendment numbered 3454 to topsoil by limiting non-agricultural uses of the previous order, this vote will be a amendment No. 3184. the land, except that any highly erodible 10-minute rollcall vote. Mr. LUGAR. Mr. President, I ask cropland shall be subject to the requirements The yeas and nays have been ordered. unanimous consent that the reading of of a conservation plan, including, if required by the Secretary, the conversion of the land The clerk will call the roll. the amendment be dispensed with. to less intensive uses. In no case shall total The legislative clerk called the roll. The PRESIDING OFFICER. Without expenditures of funding from the Commodity Mr. LOTT. I announce that the Sen- objection, it is so ordered. Credit Corporation exceed a total of ator from New Mexico [Mr. DOMENICI], The amendment is as follows: $35,000,000 over the first 3 and subsequent fis- the Senator from Texas [Mr. GRAMM], At the end of section 502, insert the follow- cal years. and the Senator from Oregon [Mr. HAT- ing: Mr. LUGAR. Mr. President, I ask FIELD] are necessarily absent. (c)(1) CROP INSURANCE PILOT PROJECT.—The that the amendment be considered. Mr. FORD. I announce that the Sen- Secretary of Agriculture shall develop and Mr. BYRD. Mr. President, may we administer a pilot project for crop insurance ator from New Jersey [Mr. BRADLEY] is coverage that indemnifies crop losses due to have an explanation of the amend- necessarily absent. a natural disaster such as insect infestation ment? The PRESIDING OFFICER. Are there or disease. Mr. LUGAR. Mr. President, the any other Senators in the Chamber (2) ACTUARIAL SOUNDNESS.—A pilot project Santorum amendment calls for a land who desire to vote? under this paragraph shall be actuarially preservation—I sent the Santorum The result was announced—yeas 33, sound, as determined by the Secretary, and amendment to the desk. Mr. President, nays 63, as follows: administered at no net cost to the U.S. let me ask the distinguished Senator, [Rollcall Vote No. 18 Leg.] Treasury. does he want an explanation of the (3) DURATION.—A pilot project under this YEAS—33 program shall be of two years’ duration. Santorum amendment, the amendment Akaka Exon Levin (d) CROP INSURANCE FOR SPECIALITY that is now pending? Baucus Ford Mikulski CROPS.—Section 508(a)(6) of the Federal Crop Mr. BYRD. I do not know what we Bingaman Glenn Moseley-Braun Insurance Act (7 U.S.C. 1508(a)(6)) is amended are voting on. Boxer Harkin Moynihan by adding at the end the following: Mr. LUGAR. Senator SANTORUM has Breaux Heflin Murray Bumpers Hollings Pryor ‘‘(D) ADDITION OF SPECIALTY CROPS.—(i) Not proposed a farmland protection pro- Byrd Inouye Rockefeller later than 2 years after the date of enact- gram, for which $35 million would be Conrad Johnston Sarbanes ment of this subparagraph (i) the Corpora- devoted. It would authorize the Com- Daschle Kennedy Simon tion shall issue regulations to expand crop Dodd Kerrey Wellstone insurance coverage under this title to in- modity Credit Purchase Corporation Dorgan Kohl Wyden clude Aquaculture; and conservation easements of not less NAYS—63 (ii) The Corporation shall conduct a study than 170,000, not more than 340,000 and limited pilot program on the feasibility acres of land, subject to a pending offer Abraham Frist McCain of insuring nursery crops. Ashcroft Gorton McConnell from State or local governments. It is Bennett Graham Murkowski (e) MARKETING WINDOWS.—Section 508(j) of cosponsored by Senator LEAHY and has Biden Grams Nickles the Federal Crop Insurance Act (7 U.S.C. been cleared on both sides. Bond Grassley Nunn 1508(j)) is amended by adding at the end the Mr. BYRD. Mr. President, I thank Brown Gregg Pell following: Bryan Hatch Pressler ‘‘(4) MARKETING WINDOWS.—The Corpora- the Senator. Burns Helms Reid tion shall consider marketing windows in de- Mr. HARKIN. Mr. President, I under- Campbell Hutchison Robb termining whether it is feasible to require stand this is open for debate at this Chafee Inhofe Roth Coats Jeffords Santorum planting during a crop year.’’. time? Cochran Kassebaum Shelby The PRESIDING OFFICER. If there The PRESIDING OFFICER. There Cohen Kempthorne Simpson is no further debate, the question is on was 1-minute debate equally divided. Coverdell Kerry Smith Mr. HARKIN. I understand each Craig Kyl Snowe agreeing to the amendment. D’Amato Lautenberg Specter The amendment (No. 3454) was agreed amendment is supposed to have half an DeWine Leahy Stevens to. hour, 15 minutes on a side. I have not Dole Lieberman Thomas AMENDMENT NO. 3455 TO AMENDMENT NO. 3184 heard of this amendment. Like Senator Faircloth Lott Thompson BYRD, I do not know what this is. I Feingold Lugar Thurmond (Purpose: To establish a farmland protection Feinstein Mack Warner program) heard an expenditure of $35 million. Earlier today, amendments were of- NOT VOTING—4 Mr. LUGAR. Mr. President, I send to the desk an amendment proposed by fered and we were told because they Bradley Gramm cost additional money, they could not Domenici Hatfield Mr. SANTORUM, to establish a farmland be accepted. All of a sudden we have an So the amendment (No. 3452) was re- protection program. The PRESIDING OFFICER. The amendment which no one is going to jected. debate or know what it is and it is Mr. LUGAR. I move to reconsider the clerk will report. The legislative clerk read as follows: going to cost. vote. Mrs. BOXER. Will the Senator yield The Senator from Indiana [Mr. LUGAR], for Mr. LEAHY. I move to lay that mo- for a question? tion on the table. Mr. SANTORUM, proposes an amendment numbered 3455 to amendment No. 3184. Mr. HARKIN. I will be glad to yield The motion to lay on the table was for a response. I want to know what it Mr. LUGAR. Mr. President, I ask agreed to. costs. unanimous consent that the reading of The PRESIDING OFFICER. Under Mrs. BOXER. If the Senator will the amendment be dispensed with. the previous order, the Senator from yield, this was in the Democratic alter- The PRESIDING OFFICER. Without Indiana is recognized. native, and also the other side thinks objection, it is so ordered. Mr. LUGAR. Mr. President, I have a it is an excellent idea because it is The amendment is as follows: series of amendments that I will send going to help us save farmland. It is a to the desk. They have been cleared on On page 3–3, strike lines 3 through 6 and in- conservation amendment. I hope the sert the following: both sides and they will require voice Senator will support it. He supported votes. ‘‘(B) the wetlands reserve program estab- lished under subchapter C; the Democratic alternative. AMENDMENT NO. 3454 TO AMENDMENT NO. 3184 ‘‘(C) the environmental quality incentives Mr. HARKIN. I would not mind sup- Mr. LUGAR. Mr. President, I send to program established under chapter 4; and porting conservation. I have been a the desk an amendment proposed by ‘‘(D) a farmland protection program under strong proponent of conservation. We Mr. GRAHAM, for himself, and Mr. MACK which the Secretary shall use funds of the do not know what it is. There has been dealing with crop insurance. Commodity Credit Corporation for the pur- no explanation. How many millions of The PRESIDING OFFICER. The chase of conservation easements or other in- dollars is it going to cost? terests in not less than 170,000, nor more clerk will report. than 340,000, acres of land with prime, Mrs. BOXER. Mr. President, it is a The legislative clerk read as follows: unique, or other productive soil that is sub- $35 million item to help preserve farm- The Senator from Indiana [Mr. LUGAR], for ject to a pending offer from a State or local land so that if there is encroachment Mr. GRAHAM, for himself, and Mr. MACK, pro- government for the purpose of protecting on the farmland, the farmers are not S 1054 CONGRESSIONAL RECORD — SENATE February 7, 1996 going to lose money. They have a The PRESIDING OFFICER. The ‘‘(A) rural business opportunity grants pro- chance to sell and stay in the farming clerk will report. vided under section 306(a)(11)(A); business. I think the Senator supported The legislative clerk read as follows: ‘‘(B) business and industry guaranteed loans provided under section 310B(a)(1); and it. It is supported by all the environ- The Senator from Vermont [Mr. LEAHY] ‘‘(C) rural business enterprise grants and mental groups and farm groups, and it proposes amendments Nos. 3456 through 3461, rural educational network grants provided was in the Democratic alternative. en bloc. under section 310B(c). The PRESIDING OFFICER. All time Mr. LEAHY. Mr. President, I ask ‘‘(d) OTHER PROGRAMS.—Subject to sub- on the amendment has expired. unanimous consent that reading of the section (e), in addition to any other appro- Mr. EXON addressed the Chair. amendments be dispensed with. priated amounts, the Secretary may transfer The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. Without amounts allocated for a State for any of the 3 function categories for a fiscal year under ator from Nebraska. objection, it is so ordered. subsection (c) to— Mr. EXON. Mr. President, have we The amendments are as follows: ‘‘(1) mutual and self-help housing grants made any disposition whatsoever of the AMENDMENT NO. 3456 provided under section 523 of the Housing amendment that has just been talked Section 101 of the Agricultural Act of 1949 Act of 1949 (42 U.S.C. 1490(c); about that no one seems to know any- is amended by adding a subsection (e) that ‘‘(2) rural rental housing loans for existing thing about? reads as follows: housing provided under section 515 of the ‘‘(e) RICE.—The Secretary shall make Housing Act of 1949 (42 U.S.C. 1485); Mr. President, I suggest the absence ‘‘(3) rural cooperative development grants of a quorum. available to producers of each crop of rice on a farm price support at a level that is not provided under section 310B(e); and The PRESIDING OFFICER. The ‘‘(4) grants to broadcasting systems pro- less than 50 percent, or more than 90 percent vided under section 310B(f). clerk will call the roll. of the parity price for rice as the Secretary The legislative clerk proceeded to determines will not result in increasing AMENDMENT NO. 3461 call the roll. stocks of rice to the Commodity Credit Cor- (Purpose: To change the land ownership re- Mr. EXON. Mr. President, I ask unan- poration.’’ quirement applicable to qualified begin- imous consent that the order for the ning farmers and ranchers for the purposes AMENDMENT NO. 3457 quorum call be dispensed with. of the Consolidated Farm and Rural Devel- The PRESIDING OFFICER. Without On page 3–16 of amendment No. 3184, at line opment Act) 1 after ‘‘payments’’ include the word ‘‘edu- objection, it is so ordered. At the appropriate place in title VI, insert: Mr. EXON. Mr. President, I advise cation’’. Notwithstanding any other provision of On page 3–16, line 9, after ‘‘payments,’’ in- law, section 343(a) of the Consolidated Farm the Chair I have checked out the clude the word ‘‘education’’. and Rural Development Act (7 U.S.C. 1991(a)) amendment that I knew nothing about, On page 3–16, line 13, after ‘‘payments,’’ but I have no objection to the amend- is amended in subparagraph (F)— and ‘‘education’’. (i) by striking ‘‘exceed 15 percent’’ and all ment. I hope that the Senate could pro- that follows through ‘‘Code’’ and inserting AMENDMENT NO. 3458 ceed in its usual fashion. the following: ‘‘exceed— The PRESIDING OFFICER. The At the appropriate place in the bill, add ‘‘(i) 25 percent of the median acreage of the question is on agreeing to the amend- the following language: farms or ranches, as the case may be, in the ment. It is the sense of the Senate that the De- county in which the farm or ranch oper- The amendment (No. 3455) was agreed partment of Agriculture shall continue to ations of the applicant are located, as re- make methyl bromide alternative research to. ported in the most recent census of agri- and extension activities a high priority in culture taken under section 142 of title 13, Mr. LEAHY. Mr. President, I move to the Department. United States Code. reconsider the vote by which the Provided further, That it is the sense of the Mr. LEAHY. I ask unanimous con- amendment was agreed to. Senate that the Department of Agriculture, sent that the amendments be agreed Mr. LUGAR. I move to lay that mo- the Environmental Protection Agency, pro- to, en bloc. tion on the table. ducer and processor organizations, environ- mental organizations, and State agencies The PRESIDING OFFICER. Without Mr. LEAHY. Mr. President, I also objection, it is so ordered. have a package of amendments that continue their dialogue on the risks and ben- efits of extending the 2001 phaseout deadline. So the amendments (Nos. 3456 have been worked out with the other through 3461) were agreed to, en bloc. side. One on behalf of Mr. JOHNSTON, AMENDMENT NO. 3459 Mr. LEAHY. Mr. President, I would Mr. PRYOR, Mr. BREAUX, and Mr. BUMP- (Purpose: To reduce uncertainty among like to engage in a colloquy with the ERS; another which adds the term ‘‘edu- farmers as to the status of agricultural distinguished chairman so that we may cation’’ to the EQUIP program. A third lands with respect to environmental and provide assurance to the many produc- is a sense-of-the-Senate resolution on conservation programs) ers in the United States that are ac- methyl bromide and a colloquy be- At the appropriate place in the title relat- tively engaged on farms owned or oper- tween Senator LUGAR and myself. ing to conservation, insert the following: ated by persons participating in the Mr. DASCHLE. Mr. President, as I SEC. ll. ABANDONMENT OF CONVERTED WET- Market Transition Program, so that understand it, Senator CONRAD had a LANDS. they will continue to be eligible for couple of amendments. Are they on Section 1222 of the Food Security Act of 1985 (16 U.S.C. 3822) is amended by adding at payments and will be treated fairly and that list? the end the following: equitably under the bill. Specifically, Mr. LEAHY. I understood he had ‘‘(k) ABANDONMENT OF CONVERTED WET- the substitute provides that the Sec- what he wanted. I asked a question of LANDS.—The Secretary shall not determine retary shall provide adequate safe- him and I have not heard back. that a prior converted or cropped wetland is guards to protect the interest of opera- Mr. DASCHLE. We need to add those abandoned, and therefore that the wetland is tors who are tenants and sharecroppers to the list. subject to this subtitle, on the basis that a who farm land that is enrolled in the Mr. LEAHY. I suggest the absence of producer has not planted an agricultural Market Transition Program. It also a quorum. crop on the prior converted or cropped wet- land after the date of enactment of this sub- provides that the Secretary shall pro- The PRESIDING OFFICER. The section, so long as any use of the wetland vide for the sharing of contract pay- clerk will call the roll. thereafter is limited to agricultural pur- ments among the owners and operators The assistant legislative clerk pro- poses.’’. subject to the contract on a fair and ceeded to call the roll. equitable basis. Mr. President, I would Mr. LEAHY. Mr. President, I ask AMENDMENT NO. 3460 appreciate the chairman’s assurance unanimous consent that the order for (Purpose: To improve the provisions relating that it is the intent of the substitute the quorum call be rescinded. to rural business and cooperative develop- that all tenants and sharecroppers who The PRESIDING OFFICER. Without ment and flexibility) are actively engaged in farming regard- objection, it is so ordered. Beginning on page 7–86, strike line 11 and less of whether the tenant or share- all that follows through page 7–87, line 11, AMENDMENTS NOS. 3456 THROUGH 3461 EN BLOC cropper is an operator of the farm will and insert the following: Mr. LEAHY. Mr. President, I have a ‘‘(3) RURAL BUSINESS AND COOPERATIVE DE- be eligible for payments, assuming that series of amendments on behalf of a VELOPMENT.—The rural business and cooper- they are producers on a farm with con- number of people. I ask that they be ative development category shall include tract acreage that qualifies for partici- considered en bloc. funds made available for— pation in the program. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1055 Mr. LUGAR. I agree with the distin- Mr. President, I ask unanimous con- discussion on Federal dairy reform. It guished Senator that it is the intent of sent that the amendment be agreed to. is my understanding that considerable the substitute that all tenants and The PRESIDING OFFICER. Without time has been spent in an effort to sharecroppers who are actively engaged objection, it is so ordered. achieve a balanced series of reforms in in farming will be eligible for pay- So the amendment (No. 3462) was milk marketing orders. ments, assuming that they are produc- agreed to. Mr. LUGAR. The Senator is correct. ers on a farm with contract acreage COMMODITY SUPPLEMENTAL FOOD PROGRAM Unfortunately, the Senate was unable that qualifies for participation in the AMENDMENT to agree on those reforms due to in- program and that they meet the pay- Mr. DOMENICI. Mr. President, I am tense regional differences over reform ment limitation provisions. today offering an amendment that will proposals. Mr. LEAHY. I thank the distin- provide the necessary flexibility to the Mr. GRAMS. Mr. President, could the guished chairman. In addition, would U.S. Department of Agriculture to chairman describe the reforms that the distinguished chairman give assur- carry out the Commodity Supple- were initially negotiated for the infor- ance as well that it is the intent of the mental Food Program [CSFP]. mation of the Senate? substitute that contract payments The amendment is very simple. It al- Mr. LUGAR. I will be happy to do so. must be shared with these tenants and lows the Food and Nutrition Service of The negotiations have yielded reform sharecroppers on a fair and equitable USDA to use a portion of available car- in milk marketing orders in three fun- basis. ryover funding for administrative ex- damental ways. First, the reforms Mr. LUGAR. The Senator is correct, penses. The administration will then would have mandated a reduction in it is the intent of the substitute that have sufficient funds to provide this the number of orders, with a consolida- all tenants and sharecroppers must be important nutrition assistance to as tion plan to be decided by the end of treated fairly and equitably in the divi- many people as possible. 1998 and implemented by the end of sion of payments under the bill. This is not a new issue to the Senate. 2000. Second, they would have man- AMENDMENT NO. 3462 This same language was enacted as dated the use of a multiple-basing (Purpose: To require the Secretary of Agri- part of the 1995 Second Supplemental point pricing system in Federal orders. culture to establish standards for the la- Appropriations and Rescissions Act at Third, they would have provided that beling of sheep carcasses, parts of car- my request. no Federal funds could be used to ad- casses, meat, or meat food products as The amendment was needed to cor- minister more than 14 marketing or- ‘‘lamb’’ or ‘‘mutton’’) rect an inadvertent effect of congres- ders after December 31, 2000, if the Sec- Mr. LUGAR. Mr. President, I send an sional action on the CSFP program in retary of Agriculture failed to imple- amendment to the desk on behalf of the 1994 Agriculture and Related Agen- ment the order consolidation plan, Senators CRAIG and BAUCUS and ask for cies Appropriations Act. which would have required no fewer its immediate consideration. When Congress was considering the than 10 nor more than 14 orders. The PRESIDING OFFICER. The Agriculture appropriations bill, the Ap- Mr. GRAMS. While I am pleased with clerk will report. propriations Committee learned that the overall agriculture reforms in the The legislative clerk read as follows: the program had $25 million in funding underlying bill, I am disappointed that The Senator from Indiana [Mr. LUGAR], for that could be carried over into 1995. our efforts regarding real dairy reform Mr. CRAIG for himself and Mr. BAUCUS, pro- The committee decided to reduce the have not succeeded at this point. I do poses an amendment numbered 3462. overall CSFP program by $10 million understand the intense, and often- Mr. LUGAR. Mr. President, I ask due to the carryover funding. times, rigid regional conflicts these unanimous consent that reading of the However, while the carryover funds proposed dairy reforms typically gen- amendment be dispensed with. were available to purchase food com- erate in the Senate. Although I would The PRESIDING OFFICER. Without modities for distribution, the reduction have preferred comprehensive reform objection, it is so ordered. in overall program funding limited ad- of the class I differential as well, I be- The amendment is as follows: ministrative expenses by law to an lieve the milk marketing order reforms After section 857, insert the following: amount insufficient to allow them to the chairman has just outlined would SEC. 858. LABELING OF DOMESTIC AND IM- be used. This was a particular blow for have provided a major step toward as- PORTED LAMB AND MUTTON programs in my State that serve a sig- Section 7 of the Federal Meat Inspection suring a more market-oriented system. Act (21 U.S.C. 607) is amended by adding at nificant rural population; they were Will the chairman give his assurance the end the following: short of the administrative funds need- that, in conference with the House, he ‘‘(f) LAMB AND MUTTON.— ed to distribute the commodities that will work toward adoption of milk ‘‘(1) STANDARDS.—The Secretary, consist- could be purchased. marketing order reforms? ent with U.S. international obligations, shall This language simply allows 20 per- Mr. LUGAR. Mr. President, I will. I establish standards for the labeling of sheep cent of the funds carried over from 1995 want to commend the Senator from carcasses, parts of carcasses, meat, and meat into 1996 to be used for administrative Minnesota for his strong and active in- food products as ‘lamb’ or ‘mutton’. ‘‘(2) METHOD.—the standards under para- expenses. This is the same percentage terest in reforming the Federal order graph (1) shall be based on the use of the allowed for administrative expenses for system. His efforts have been positive break or spool joint method to differentiate new appropriations. The estimated for Midwestern agriculture and the Na- lamb from mutton by the degree of calcifi- amount of carryover funding is $12.6 tion as a whole. cation of bone to reflect maturity.’’. million. AGRICULTURE RESEARCH Mr. LUGAR. The amendment would Mr. President, I have consulted with Mr. BENNETT. Mr. President, I simply require a national age standard officials of the Food and Nutrition would like to bring a matter to the at- be set for labeling of lamb in the Unit- Service as to the need for this lan- tention of the chairman regarding agri- ed States and that this standard would guage. They concur that it is needed to culture research. While it does not re- be also enforced on imported product. carry out an effective Commodity Sup- quire a legislative provision, I believe This is a relatively simple measure plemental Food Program this year. it deserves some attention by the De- that would ensure that lamb coming The Senate passed this same lan- partment of Agriculture, and it seems into the United States is actually lamb guage in the fiscal year 1996 Agri- appropriate to discuss while we are and not mutton. This amendment culture appropriations bill, but it was talking about the farm bill. would be GATT legal since the require- inadvertently dropped in conference. I Is it the chairman’s understanding ments are the same on both domestic urge my colleagues to adopt this that the Department of Agriculture and imported product. amendment and provide the resources has an interest in eradicating livestock If we are to have a viable lamb and necessary to carry out an effective diseases, and also has funded research wool industry in the United States CSFP program. and other programs for the purposes of something must be done to enhance DAIRY REFORM researching, controlling, and eradicat- stability and future growth while halt- Mr. GRAMS. Mr. President, I would ing disease over the years? ing the hemorrhaging of our industry’s like to engage the distinguished chair- Mr. LUGAR. That is my understand- infrastructure. man of the Agriculture Committee in a ing. S 1056 CONGRESSIONAL RECORD — SENATE February 7, 1996 Mr. BENNETT. Is it the chairman’s farm policy, which has made wheat and tent with respect to the haying and understanding that scrapie, a con- corn planting more attractive. Another grazing provision of the substitute tagious and fatal livestock disease, has factor in the loss of oilseed acreage is amendment. This technical change al- had a detrimental impact on the sheep the lack of Government promotion for lows farmers to continue the haying industry? export and domestic use of vegetable and grazing flexibility they have under Mr. LUGAR. That is my understand- oil. Export opportunities for soybeans current law and I am pleased the bill’s ing. and sunflower oil under the EEP and sponsors agree this traditional freedom Mr. BENNETT. Would the chairman SOAP will be reduced 79 percent under should continue under the reform pro- agree that given the scarcity of re- the Uruguay round. And unlike tax in- posal. sources, a way to maximize a tight re- centives for ethanol production, which Once again, I thank the managers for search budget may be to share the cost target corn production, there is no making this technical change and ap- with other countries? Federal program for soy-based preciate their leadership on farm pol- Mr. LUGAR. That seems to be a com- biodiesel. icy. monsense approach given our limited This provision, by setting marketing Mr. SIMON. Mr. President, I want to resources. loan rates for oilseeds at 85 percent of thank the distinguished minority lead- Mr. BENNETT. I understand that the Olympic 5-year average price, will er for his hard work in crafting a bill there is a collaborative research help to put soybeans and other oilseeds that meets the needs of production ag- project being developed by two well-re- at the same percentage level as other riculture, national wide. It’s close to spected research groups, one in the crops. For soybeans, the marketing an impossible task. United States and the other in Scot- loan rate would be set at 85 percent of I support this compromise farm bill. land, that has the hope of eventual the Olympic 5-year average, but no less While I do not agree with everything in eradication of this disease by under- than $4.92 or no more than $5.26 per the bill, I think it has a chance of pass- standing how and when scrapie is bushel. For sunflower seed, canola, ing the House and being signed into transmitted. At least two countries, rapeseed, safflower, mustard seed, and law. the United Kingdom and New Zealand, flaxseed, loan rates would also be set In many ways, it is a good bill for Il- have committed to share the cost of accordingly, but at rates no less than linois. It offers farmers limited cer- funding the research project with the $0.087 or more than $0.093 per pound. tainty in the area of income protec- United States. Part of the study will be This provision, which I filed as an tion, provides a safety net for farmers conducted at a land-grant university. amendment to the Lugar-Leahy sub- in future years, and protects our con- While the research project does not ap- stitute amendment to S. 1541, allows servation programs, as well as impor- pear to fit squarely into current fund- the soybean loan rate to rise by 5 per- tant nutrition programs. ing mechanisms at ARS, APHIS, or cent if prices increase, providing some Illinois is second to Iowa in soybean CSREES within the Department of Ag- protection for small producers against production, with 9.7 million acres riculture, would the chairman agree increased volatility in production and planted to soybeans. Exports for soy- that it would be in the interest of the prices that could result from full plant- beans and soybean products totaled $7.9 U.S. Department of Agriculture to seri- ing flexibility. It would remove dis- billion in 1995 making soybeans the ously consider the feasibility of fund- incentives for planting soybeans, en- largest exporter, in terms of value, in ing such a study? courage increased soybean acreage, and U.S. agriculture. Mr. LUGAR. It seems reasonable for provide an opportunity for reasonable With the good work of my colleague the United States to consider providing prices and adequate supplies of high- Senator MOSELEY-BRAUN, this bill funding for a credible study, in light of protein meal for pork and poultry pro- raises the marketing loan rate for soy- commitments from the United King- ducers. beans to 85 percent of an Olympic five- dom and New Zealand, and I would Mr. President, Illinois leads the Na- year average, with a cap of $5.26 per urge the USDA to look seriously at tion not just in the production of farm bushel. Despite a 3 percent annual doing so. commodities, but also in farm com- growth in world demand for vegetable Mr. BENNETT. I thank the chair- modity exports. And in my conversa- oil and protein meal, U.S. oilseed acre- man. tions with Illinois farmers, one theme age has declined by 17 percent since Ms. MOSELEY-BRAUN. Mr. Presi- resonates time again and again: the fu- 1979. This slight increase in the mar- dent, I am very pleased that the Lugar- ture of American agriculture lies in ex- keting loan rate creates some incen- Leahy amendment to S. 1541 contains a ports, and in enhancing the export tive for soybean production in the U.S., provision I authored that will provide a competitiveness of U.S. agriculture. which helps our trade balance and is competitive loan rate for soybeans and I agree, and I believe my amendment very good for Illinois farmers. other oilseeds. will help U.S. oilseed producers seek The bill also retains permanent law Soybeans represent the third largest out greater export sales, and ensure for farm programs. Good agriculture crop in the United States, with the sec- that market demand, rather than Fed- policy protects family farms as well as ond largest value of over $14 billion an- eral policies, determine how many consumers. The original freedom-to- nually. Worldwide, the demand for pro- acres of soybeans are planted. farm proposal eliminated permanent tein meal and vegetable oil grows I would like to thank the distin- law for farm programs, allowing no about 3 percent each year. guished majority leader, Senator DOLE, safety net past the year 2002. With the Meanwhile, U.S. oilseed acreage has and Senators LUGAR, LEAHY, GRASSLEY, leadership of Senator DASCHLE, the declined by 17 percent since 1979, from and COCHRAN for their assistance and Democrats were able to push for a com- 77 million acres to 63.8 million acres support for this amendment. promise that guaranteed a safety net expected in 1996. Approximately 3.5 Mr. NICKLES. Mr. President, I first for farmers in year 7. million soybean acres are enrolled in want to compliment the managers of Mr. BAUCUS. Mr. President, it is the Conservation Reserve Program, the farm bill for their hard work in time to get the farm bill done. So I rise and an estimated 9.7 million soybean crafting legislation which reforms our in support of this bill. But I do so with and sunflower acres have shifted to Nation’s agriculture policies. No longer some misgivings. corn and wheat production. will the Government tell farmers which Now, I know that the first rule of The point is, that, while worldwide crops to plant and no longer will the medicine is ‘‘Do no harm.’’ And I am demand for soybeans and oilseed prod- Government tell farmers to leave pro- well aware that a lot of Americans ucts increase, acreage dedicated to oil- ductive land idle in exchange for a Fed- have adjusted their expectations of this seeds in the United States has de- eral handout. I believe giving more new Congress. A year or so back, they creased. And that means American flexibility to farmers is a step in the had high hopes. Today, they consider it farmers are losing important economic right direction and urge my colleagues a good month when the Congress sim- opportunities when it comes to oilseed to support the freedom-to-farm legisla- ply decides not to do anything harmful exports. tion. or destructive. They’re relieved that One notable cause for the decrease in I thank the chairman and ranking we haven’t shut the Government down U.S. oilseed acres has been Federal member for clarifying the sponsors’ in- in nearly a month, and that the plan to February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1057 let Medicare wither on the vine seems lapse altogether as it did last year. ary experiments—to cut their vacation to have stalled. Thus, producers have the confidence short—and to get the job done. OUR NUMBER ONE INDUSTRY that a single year of drought, flood, or Mr. CHAFEE. Mr. President, I want So sometimes doing nothing is better collapsing prices will not financially to compliment my colleague, the sen- than doing harm. But, Mr. President, ruin them. ior Senator from Indiana, for the enor- with the farm bill, it is just not good Three, we include several provisions mous amount of effort he has put into enough to wait any longer. to assist an industry which has suffered this bill. He and his colleague on the Agriculture is the largest industry in from Government mistakes. That is other side have done good work. The my State. Our State statistics service the sheep industry. In this bill we au- legislation that is before the Senate reports that Montana has about 22,000 thorize a sheep industry improvement represents a critical change in our farms, averaging about two residents center, which will be a clearinghouse farm policy that will do much to move per farm. Those farms support almost to improve research and infrastructure us toward a market-oriented system. 50,000 additional Montana jobs in agri- for the industry. We also introduce And that is a welcome change indeed. business and the food industry. So our some fairness into the lamb market by I must say, however, that as enthu- failure to provide some policy direction making Australian and other foreign siastic as I am about the important puts almost 100,000 people directly at lamb to meet the same freshness re- structural changes wrought by this risk, not to mention the tens of thou- quirements as American lamb. bill, I am sorely disappointed that one sands of others in small banks, gas sta- Four, we reauthorize the Conserva- provision of particular importance to tions, auto dealerships, and other small tion Reserve Program, one of our envi- my State and the New England region businesses who depend on a strong ronmental success stories. It also au- was deleted earlier today. It was my rural economy. thorizes two other critical environ- understanding that this provision That is true across the country. mental programs—the Livestock Envi- would be included in the final version In rural States, the entire economy ronmental Assistance Program and the of the Senate bill. The provision that I depends on successful production agri- Environmental Quality Incentive Pro- am referring to is the New England culture. gram—which help producers improve Dairy Compact—which has earned In urban areas, stable, fair and pre- the management of the natural re- broad support from our region’s Gov- dictable food prices are the key to sources on their farms and ranches, ernors, legislators, and industry. With- consumer well-being. and with it the quality of life in rural out congressional authorization, the In international trade, agriculture is America. compact cannot move forward. And to- one of our bright spots. Five, we reauthorize the nutrition day’s action to eliminate the necessary Our agricultural exports will reach program, meaning a continuing guar- congressional consent means moving $58 billion in 1996—an all-time record antee of assistance for children and forward will be extremely difficult. for any country, and twice our pro- poorer Americans. I also regret that the Senate failed to jected $29 billion in imports. And six, in the 1996 farm bill we in- adopt much-needed reforms to the And we all know that nobody and no crease planting flexibility, so produc- sugar and peanut programs. While the country can be safe or secure without a ers can base their planting decisions legislation crafted by the managers re- reliable supply of food. according to the market and their po- vises both of these programs to some All this depends on a sound approach tential profits, rather than on rules es- extent, those revisions do not go nearly to farm policy. And the first element of tablished by the bureaucracy. far enough. a sound farm policy is to avoid giving THE MAJOR FLAW Therefore, with regret, I will be cast- farmers new troubles and headaches. Now let us look at what may be the ing my vote against the underlying Yet, if Congress delays the farm bill real flaw in the bill. bill. any longer, that is just what will hap- My greatest concern is the so-called CHANGE OF VOTE pen. decoupling of farm payments from Mr. FRIST. Mr. President, I ask Farmers all over America are prepar- prices and volume of production. In es- unanimous consent I be allowed to ing to put their 1996 crop into the sence, a farmer will now get a straight change my vote from ‘‘yea’’ to ‘‘nay’’ ground. In Montana, and across the payment regardless of how much he or on rollcall vote 14, which passed earlier Great Plains, many already have their she produces and regardless of the today by a vote of 59 to 37. It will not winter wheat planted. If the bitter cold price. change the outcome of the vote. has not destroyed their crop, they will Since the forecasts call for a good The PRESIDING OFFICER. Without begin harvesting in a few months. harvest in 1996, this will be very good objection, it is so ordered. These producers need to know what for farmers for at least the next year. Mr. FEINGOLD. Mr. President, I rules they will operate under when However, if we get a bad year in 1997 or voted against the farm bill today for a that harvest comes in. Because of the 1998, the payments may be inadequate. number of reasons. dereliction of the Congress, they have Equally serious, but more of a long- First, while I and other Senators no idea what those rules will be. So the term problem, is that by decoupling from the Upper Midwest were success- time has come to take up this admit- payments from the market, we may de- ful in striking from the Leahy sub- tedly imperfect bill, get it past the couple farm policy from the broad pub- stitute the northeast interstate dairy Senate, and ask the House to follow lic support it has enjoyed since the cre- compact, this bill contains no fun- suit. We need to act now. ation of the farm program during the damental reform of Federal milk mar- SUCCESSES OF THE 1996 FARM BILL Depression. keting orders so badly needed by Wis- Now let me talk for a few moments Most Americans can see that agri- consin dairy farmers. Attempts to about the bill. And let us begin with culture is a volatile business, and un- reach a bipartisan agreement on a the good news. I would like to mention derstand the need for some stability moderate order reform amendment six points in particular. from year to year. It may be that the were ended when regionalism over- The most important good news, of public at large will be less enthusiastic whelmed reason. I found that very dis- course, is that when the 1996 farm bill about a straight payment that remains appointing. passes, producers will have a few years high in good years. I remain hopeful, however, that there of certainty and stability ahead. They Only time will give us the answer to will be an opportunity in the con- will be able to run their businesses that question. But we know that delay- ference with the House farm bill to re- without fear that the Government will ing action any longer this year will visit these issues and get some changes make them change horses in mid- mean a year of questions, uncertainty that will help create a more level play- stream. and difficulty for farmers. So the time ing field for our dairy producers. Two, we restore the safety net which has come to pass the 1996 farm bill. Second, Mr. President, I was very dis- the original more radical ideas pro- I will vote for this bill, and I hope the appointed at the process under which posed to abolish. That is, it continues Senate will pass it. And I would ask the debate over the farm bill took the 1949 Agricultural Policy Act in case the House to act as quickly as pos- place in the Senate. This is an impor- Congress threatens to let farm policy sible—to stop toying with revolution- tant bill that is considered every 5 S 1058 CONGRESSIONAL RECORD — SENATE February 7, 1996 years, and normally consumes several Fortunately, the bill is not all bad. farm law is retained, and that oilseeds weeks of floor debate following exten- We were successful in removing the will be allowed some equity in market- sive and open committee action. This northeast dairy compact, which would ing-loan rates. year the bill was rammed through the have established unfair barriers to But freedom-to-farm, which is the Senate in 1 day under tight time con- interstate trade and potentially hurt core of this farm bill, is fundamentally trols that allowed little opportunity Michigan milk producers and proc- bad policy. for Senators to scrutinize neither the essors. And, we reformed, without de- I believe freedom-to-farm is a dubi- underlying bill nor the amendments of- stroying, the sugar program. The bill ous carrot followed by a very real fered. Furthermore, with only one-half does contain several good provisions stick. If it becomes law, it will likely hour to debate each amendment, it was that will encourage farmland preserva- lead to the elimination of farm pro- difficult for Members to fully analyze tion, establish a livestock environ- grams, ultimately leaving farmers to the impacts and implications of their mental assistance program, and ad- the tender mercies of the grain compa- votes. One amendment passed by the dresses other important trade, re- nies and the railroads and the Chicago Senate was over 500 pages long and was search, credit, and conservation mat- Board of Trade during years when the subject of absolutely no debate. ters. prices are low. In the long term I be- Conducting business under those kinds On balance, however, I cannot sup- lieve it may have disastrous effects on of constraints is ultimately not good port this bill. I hope the conferees can family farmers and our rural economy. for farmers, consumers, or the tax- improve it. Some farmers believe that freedom- payers. We should take the time to de- Mr. WELLSTONE. Mr. President, I to-farm is the best deal they will get bate publicly and examine thoroughly believe the Senate will make a mistake from this Congress. I understand that. existing farm programs as well as the today if we pass this farm bill. I think Many in this Congress oppose farm pro- proposals to change them. I can understand why some believe this grams, and those people have made a At the same time, I recognize the ur- is the best way forward for American credible threat to the future existence gency that many in this Chamber felt agriculture. But I profoundly disagree of farm programs. This plan offers that some type of farm bill had to with that judgment. farmers payments this year even move forward quickly so that farmers I have been saying for weeks, even though prices are projected to be who are putting seed in the ground months, that I have been prepared to strong. And it promises to lock in at right now would have some idea of debate the farm bill. Today’s debate is least some payments for 7 years. For what Federal policies would be in play overdue, and it has not exactly been some farmers, even those who know for this growing season. But Congress what I had in mind. It has been limited that it is bad policy, that is attractive. should have begun this process a year due to time constraints. Our oppor- I have supported what I consider to ago to give farmers the assurances tunity for amendments has been con- be genuine reform of farm programs. I they need. The need for just any bill is stricted. cosponsored a 7-year proposal last year no justification for voting for a bad I am afraid that the best that can be which called for a targeted marketing- bill. said about this week’s action on the loan approach. That plan would provide Ultimately, I voted against this bill farm bill is that farmers across the farmers the planting flexibility they because it failed to reform programs in country now can see what this Con- need. But it also would provide needed a way which targets benefits to those gress might be delivering for a farm long-term protection from some of the family farmers most in need, it did lit- bill. Perhaps the House will act soon, uncertainties that farmers face—uncer- tle to limit Government payments to and I expect that their bill will be close tainties of weather, and of markets the Nation’s largest and wealthiest in principle to this one. that are dominated by large multi- farmers, it provides excessive guaran- I voted in favor of cloture last week. national companies. It also would raise teed giveaway payments to landowners I did so not because I support freedom- who never have to plant a crop, and did loan rates and target farm-program to-farm. I do not. I favor long-term pol- absolutely nothing to reform Federal benefits to family-size farmers. icy that would promote family agri- The freedom-to-farm concept entails milk marketing order to rectify the culture and revitalize our rural econ- a transition to what is called market harms current law imposes on Wiscon- omy. This is not that. I voted for clo- orientation. I support market oriented sin dairy farmers. This farm bill process was fiscally ir- ture because I believe that American farm policy. That is why I advocate responsible policy making. From a def- farmers need to know what programs support for family-size farmers when icit reduction perspective, this bill they will be operating under this year. prices are low—not so-called contract could have achieved far greater budget With no farm policy in place, I did not payments regardless of market condi- savings while still protecting family want to block consideration of new tions and regardless of what, or wheth- farms. It is my hope that the Senate farm legislation even though I was er anything, is planted. In fact, what I never again engage in this process for quite certain I could not support the really support is helping farmers get- major legislation that affects every bill’s final passage. ting a fairer price in the marketplace farmer, consumer, and taxpayer in this Of course, yesterday’s vote against so that they do not need government country. cloture was due to the sudden inclusion payments at all. Fair prices are key to Mr. LEVIN. Mr. President, the Sen- into the bill of the Northeast Dairy improving farm income. ate is about to vote on final passage of Compact, which I have called a poison It must be remembered that the ra- S. 1541, the farm bill. This vote should pill for Minnesota dairy farmers. I am tionale for the transition payments in have taken place last year, after a full extremely pleased, as I have already freedom-to-farm is that farm programs and thorough debate. The House has re- said here on the floor, that we were will end. There is no reason for decou- cently recessed without completing ac- able to strike the compact from the pled payments called transition-pay- tion on the matter, and the Senate’s bill, and I was proud to lay that ments unless farm programs will be action is very late. As a result, farmers amendment down on behalf of myself ending. So we should not fool ourselves are not getting the timely information and other midwesterners late last about the gesture of leaving permanent they need to make important decisions evening. farm law in place underneath this bill. for the 1996 crop year. Let me address the freedom-to-farm We Democrats rightly insisted upon Without the Dorgan amendment, proposal. There are some good things that provision, but we have to admit it which I supported, freedom-to-farm in this bill, particularly some of the was a maneuver to help achieve a time payments will be made even to farmers conservation provisions which some of agreement and should not be consid- who might choose not to plant a single us have ensured are in the bill. I am ered genuinely permanent. It may or seed. This doesn’t make any sense and glad that we finally have authorized may not survive conference. certainly seems like a potential waste the enrollment of new acres into the This bill will end payments to farm- of taxpayers’ money. I am very con- successful and popular Conservation ers within a few years. Meanwhile, its cerned about the lack of market sen- Reserve Program [CRP], which I have approach will discredit farm programs sitivity in these freedom-to-farm pay- been advocating for some time. And we forever. High payments to farmers dur- ments. Democrats ensured that permanent ing good-price years will not wash in February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1059 the public when we are cutting govern- The PRESIDING OFFICER. The conference with the House and hope- ment spending on other much-needed question is on the engrossment and fully expedite decisionmaking for programs. I am concerned that when third reading of the bill. farmers throughout the country. prices drop back down, which is inevi- The bill was ordered to be engrossed I thank my colleague, Senator table—I would say it is encouraged by for a third reading and was read the LEAHY, who has worked so well, once the capping of loan rates in this bill— third time. again, in a bipartisan way, on an im- there may be no farm program there to Mr. DOLE. Mr. President, I ask for portant bill. I thank the majority lead- help. I voted today to lift the loan-rate the yeas and nays on the bill. er, Senator DOLE, for his very, very caps. I also note that I voted for The PRESIDING OFFICER. Is there a strong leadership throughout the clo- amendments to retain the Farmer sufficient second? ture battles, as well as all we have ex- Owned Reserve and raise loan rates. There is a sufficient second. perienced today, and the distinguished And I voted to require that a farmer The yeas and nays were ordered. Democratic leader, Senator DASCHLE, actually plant a crop in order to qual- The PRESIDING OFFICER. The bill who worked to make certain we had ify for a so-called contract payment. having been read the third time, the both a pathway to success today, and Mr. President, I do not believe we are question is, Shall the bill pass? The expedited the timing of that. finished debating agriculture or rural yeas and nays have been ordered and I want to thank, especially, staff policy. I will continue to speak here on the clerk will call the roll. members who have done so much, and the topic. I intend to continue to fight The legislative clerk called the roll. I want to mention them by name. for rural Minnesota. Mr. LOTT. I announce that the Sen- I have Andy Morton, Randy Green, Mr. KERRY. Mr. President, I voted ator from New Mexico [Mr. DOMENICI], Dave Johnson, Marcia Asquith, Beth against final passage of S. 1541 because, the Senator from Texas [Mr. GRAMM], Johnson, Terri Snow, Michael Knipe, while it was better than some propos- and the Senator from Oregon [Mr. HAT- Dave Stawick, Terri Nintemann, Kath- als put forth during this debate, ulti- FIELD] are necessarily absent. erine McGuire, Darrel Choat, Danny mately, it was not the package that I Mr. FORD. I announce that the Sen- Spellacy, Doug Leslie, Barbara Ward, believe it should have been. ator from New Jersey [Mr. BRADLEY] is Debbie Schwertner, Jill Clawson, Yesterday, I supported cloture on the necessarily absent. Cathy Harrington, Mary Kinzer, David Leahy-Dole substitute because I felt The PRESIDING OFFICER. Are there Dayhoff, Pat Sweeney, Bob Sturm, Bill strongly that it was essential that Con- any other Senators in the Chamber de- Sims, Jim Hedrick, and, of course, gress act to develop new farm policy siring to vote? Chuck Conner, our chief of staff, who reforms as soon as possible. The exist- The result was announced—yeas 64, has done a splendid job, as always. ing authorization for the numerous nu- nays 32, as follows: I thank all of them and all Senators trition, conservation, and commodity [Rollcall Vote No. 19 Leg.] for their support. programs that comprise the heart of YEAS—64 The PRESIDING OFFICER (Mr. the farm bill expired during 1995. With GORTON). The Senator from Vermont. Abraham Frist Moseley-Braun Mr. LEAHY. Mr. President, I also the expiration of these programs, the Akaka Gorton Moynihan outdated 1949 Agricultural Act became Ashcroft Graham Murkowski want to thank the distinguished major- the permanent law governing Federal Baucus Grams Nickles ity leader and the distinguished Demo- commodity programs. According to the Bennett Grassley Nunn cratic leader for all they have done. Biden Hatch Pell U.S. Department of Agriculture, the Bond Heflin Pressler The distinguished senior Senator from 1949 statute, if enacted today, would Boxer Helms Robb Indiana said he thanks the distin- cost taxpayers $10 billion for 1996 Breaux Hutchison Roth guished Democratic leader for helping alone, substantially more than the re- Brown Inhofe Shelby us get the pathway to be here. That is Burns Inouye Simon cently expired provisions. I believed Campbell Johnston Simpson true, we would not be here without then, and remain convinced, that we Coats Kassebaum Smith that help. need a new approach to farm policy. Cochran Kempthorne Specter I know, at least in my 21 years here, Coverdell Kyl Stevens I have never known a farm bill to go Therefore, I supported cloture to ad- Craig Leahy Thomas vance the debate on the Leahy-Dole re- D’Amato Lieberman Thompson through without some strife. This is form package which would have re- DeWine Lott Thurmond probably no exception. But the fact is placed the 1949 statute with a new re- Dole Lugar Warner that we have now brought a farm bill Faircloth Mack Wyden through that we can go to the other form program to phase out price sup- Feinstein McCain ports after 7 years and would have re- Ford McConnell body with in a conference. I hope we can go to them and point out that on authorized critical nutrition and con- NAYS—32 servation programs through 2002. the final vote it was passed on a bipar- Bingaman Feingold Levin tisan basis. If we did not have one, had However, the package that was be- Bryan Glenn Mikulski fore us on final passage, while it in- Bumpers Gregg Murray it not been passed on a bipartisan cluded many important provisions on Byrd Harkin Pryor basis, I would not hold out much hope nutrition and conservation, fell short Chafee Hollings Reid for the conference. Instead, we have Cohen Jeffords Rockefeller of true reform because a provision was Conrad Kennedy Santorum one that speaks for those who produce added to retain the 1949 act as the per- Daschle Kerrey Sarbanes our food and fiber but also includes manent law. By retaining the 1949 stat- Dodd Kerry Snowe protection for the environment, con- ute, the 7-year farm support phaseout Dorgan Kohl Wellstone servation, nutrition programs, all of Exon Lautenberg provisions of the Leahy-Dole bill be- which are important to get a bill that come just another price support pro- NOT VOTING—4 can eventually be signed. gram. There is no longer a phaseout, Bradley Gramm I thank my friend with whom I have only an interim payment plan for the Domenici Hatfield worked so many years, Senator LUGAR, intervening 7 years. So the bill (S. 1541), as amended, was on such legislation. I thank him for his Until this package returns from con- passed. help and his staff’s help, and his hon- ference, there is always hope that there (The text of the bill will be printed in esty and openness to it. will be important improvements to the a future edition of the RECORD.) I also want to thank Pat Westhoff for reform provisions while retaining criti- Mr. LUGAR. I move to reconsider the his outstanding economic analyses of cal conservation and nutrition pro- vote. complicated proposals; on our staff, grams upon which millions of Ameri- Mr. LEAHY. I move to lay that mo- David Grahn, who stayed up many cans depend. tion on the table. nights drafting legal language; Craig AMENDMENT NO. 3184 The motion to lay on the table was Cox, for an outstanding job developing The PRESIDING OFFICER. The agreed to. one of the most progressive conserva- question is on agreeing to the Leahy Mr. LUGAR. Mr. President, I thank tion titles; Tom Cosgrove, for handling amendment No. 3184, as amended. all Senators for prompt consideration a very politically sensitive issue, dairy, The amendment (No. 3184), as amend- of the farm bill. I think we have an ex- and doing it very, very well; Kate How- ed, was agreed to. cellent bill. I had wanted to go to the ard, who has done such a great job on S 1060 CONGRESSIONAL RECORD — SENATE February 7, 1996 trade; Kate DeRemer for her outstand- There is some concern about the job he has done. I do not know of any- ing work on the research title; Brooks transition payments. That has been ex- one who has been more dedicated, or Preston for all that he has done for the pressed time after time. I believe we given his time and effort more gener- environment and for forestry; Nick need now to make certain this is going ously, than has Tom over the last Johnson for his very hard work on to work so we do not have these stories many days. So, I again thank him, and rural development. Diane Coates, appearing that somebody had a big thank our colleagues for the work that Kevin Flynn, and Rob Headberg, for all crop and got a big payment. I think we have done today in spite of the fact that they have done. Gary Endicott that is a very sensitive matter. But I that I am so disappointed with the out- and Tom Cole at the legislative coun- believe, by capping entitlements, it is a come. sel. I would especially like to thank Ed sensible spending program. I yield the floor. Barron, the Democratic chief of staff, It is not an end but a beginning, be- Several Senators addressed the and Jim Cubie, our chief counsel, who cause there is much more we need to do Chair. I think have not been to bed in several to ensure survival of rural America. The PRESIDING OFFICER. The Sen- days. One is estate tax relief. I think capital ator from Ohio. I would say, if any members of their gains tax relief is one. We need to take Mr. GLENN. Mr. President, I ask family are watching, I know exactly a look at regulation, regulatory re- unanimous consent to proceed as in where they were. They were here all form. morning business. the time, chained to their desks but I would just conclude by sharing a The PRESIDING OFFICER. Without helping us go through. And also I give quote I read last week on the floor, the objection, it is so ordered. my personal thanks to my chief of words of George Washington, over two f staff, Luke Albee, who worked so hard centuries ago. He said, ‘‘I know of no THE SENATE SCHEDULE with them. pursuit in which more real and impor- The PRESIDING OFFICER. The ma- tant services can be rendered to any Mr. GLENN. Mr. President, I just jority leader. country than by improving its agri- want to make a few remarks about the Mr. DOLE. Mr. President, I thank the culture.’’ I think that is as true today recess. In fact, we are going on a vaca- chairman of the committee for his out- as it was then. I thank all my col- tion period when we have not even standing job, Chairman LUGAR, and the leagues for their patience and their come close to completing the work of ranking member’s equally outstanding support. the U.S. Senate. I do not know whether job, Senator LEAHY. They have worked Again, I thank the chairman, Sen- people realize it, but if they look at the a long time. This is a bipartisan bill. ator LUGAR, and Senator LEAHY. calendar they will see that we are into There were 20 Democrats, 44 Repub- The PRESIDING OFFICER. The the middle of February. I do not think licans who voted ‘‘aye’’ on final pas- Democratic leader. they realize what a short time period sage. Mr. DASCHLE. Mr. President, I know we have left to do the business of the I believe there is enough flexibility. there are many who want to speak so I Senate for this year in 1996. This year The President would certainly be in- will be brief. Let me congratulate the there are political party nominating clined to sign this bill. I hope he might chairman of the Agriculture Commit- conventions, and we will adjourn before announce that this weekend when he is tee for the typical manner with which the November elections. We will not in Iowa. I think it will be very well re- he has addressed this bill and this re- come back in after the elections be- ceived there. sponsibility. In true fashion he has cause that is just a lame duck session. This has been a long process. There been cooperative and accommodating. I In effect we are saddled with getting were a lot of frustrating moments for again want to publicly thank him for everything done between now and the all of us. But, just as farming requires his effort. convention time. If you consider our patience and perseverance, so does Let me also thank our ranking mem- sine die adjournment which is sched- passing farm legislation. It is always ber, Senator LEAHY, for his efforts. I uled for October 4, and take out the very difficult. There are so many issues appreciate very much the work of our normal holiday periods of Easter, Me- involved, so many different commod- two managers in this regard. morial Day, Fourth of July, August re- ities and so many different regional in- Working with the majority leader, we cess, and Labor Day, we have about 85 terests and State interests, it is hard were able to accomplish what all of us legislative working days left. And if we to put a package together that satisfies said we wanted to be able to do, finish go on our normal 4-day week schedule everyone. a farm bill, by a time certain, that where we do not come in until Monday But I believe this is really a historic would allow some opportunity for noon and go out by Friday noon, which change, some would say the biggest farmers to better understand what may makes about a 4-day workweek, it change we have had in agriculture be in store, what they have to decide means we have a total of about 65 since the 1930’s when Henry Wallace with regard to their own management. working days left in this legislative was Secretary of Agriculture. It seems This bill, as flawed as I believe it is, year. to me we have made that because we will accommodate that. I do not think people realize how have had this bipartisan cooperation. I must say, in all my time in the Sen- tight we are on time. We have not even I thank the Democratic leader, too, ate, there has never been a time when begun to complete the work of last Senator DASCHLE, for working out, last I felt more discouraged, and frankly year yet. We have five appropriations night, an agreement which permitted more concerned about the future of ag- bills—VA–HUD appropriations, Com- us to vote at precisely 4:45. That is riculture, the future of farm policy, merce, State, Justice appropriations, when we promised our colleagues we than I feel this afternoon. I think the Interior appropriations, Labor-HHS ap- would vote and that is when the vote Senate has made a very tragic mistake. propriations, and D.C. appropriations. started. I think it is a mistake that will come In addition to that, we had hoped to Farmers will finally plant for the back to haunt us. I believe we will be have a balanced budget agreement. We market and not the Government. The here again in the not too distant future had hoped to have welfare reform. We Government is going to get out of the addressing many of the deficiencies have an absolutely critical debt limit supply control business. that this legislation represents. extension that has to be done so that We can take pride this bill is also Obviously, many of us feel very the full faith and credit of the United good for the environment. The Con- strongly about this. This fight is not States is honored around the world. servation Reserve Program is reauthor- over. We will come back. We will re- That is not one that we can really put ized. A new program, the Environ- visit many of these issues. We will offer off at all. mental Quality Incentive Program, is amendments. We will offer additional The continuing resolution and the included to provide farmers and ranch- legislation. We firmly believe we must debt limit expire by March 15. We now ers a cost-share program as they work continue to make farm policy work are taking off 3 weeks—almost 3 weeks. to develop ways to manage their farm- better than it will work if this farm I find that unconscionable. Then we ing operations. No doubt about it, an- legislation becomes law. wonder why the American people have other big winner in this legislation is Finally, let me thank especially Tom a lack of faith in their Congress to get the American taxpayer. Buis, on my staff, for the remarkable things done for this country. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1061 I appreciate the fact that there is a have done yet, and the new appropria- ability really to manage things. So I Presidential campaign on. But we need tions bills coming up this year. We regret we are going out. I regret we are a balanced budget agreement. We want only have 65 to 85 legislative days left going to stop having productive ses- welfare reform. The debt limit abso- in this year. For us to go out now for sions here. I would have much pre- lutely has to be passed. We need health whatever purpose and for whatever rea- ferred that we stay here and take care insurance reform legislation. We have son I just think is not right. of the Nation’s business. It seems to a continuing resolution to provide I am sorry we were not able to have me that is what we should be doing. funding for those appropriations bills a vote on this so we could in effect hold We will have more to say on this not yet enacted, all of which are limp- people’s feet to the fire and say, ‘‘OK. later, and I yield the floor. ing along below their normally funded If you want to go out, at least have Mr. LEVIN. Mr. President, will the levels. guts enough to vote on it.’’ But that is Senator yield for a question? Mr. President, these are the leftovers not the way things work. Mr. GLENN. I yield for a question. from last year. This does not even ad- So we are going out. We will not have Mr. LEVIN. First, I wish to commend dress the new authorization and appro- pro forma sessions next week because the Senator for pointing out what I priations bills that we have to pass in that is President’s week. Normally think is a very, very serious inad- 1996 for fiscal 1997. Here we are out for there is a break here. And then the fol- equacy, which is to leave here for al- approximately a 3-week period, and to lowing week we will have two pro most 3 weeks when we have two major avoid a vote on whether we should go forma sessions, as I understand it; one threats to this economy which are out or not—we are going to have pro this Friday on the 9th, and then on the looming before us, which hang over our forma sessions; a couple of them a 20th and the 23d but not with votes. We heads. One is the extension of the debt week in which there will be no votes. cannot have any votes on anything im- limit. In effect, we will be paying our We will have morning business only. portant. So we will all come in here obligations through March 15, but from We will come in and make our speech- and act like we are doing something, then on there is uncertainty. And we es, and nothing else will be accom- and we are not. I just do not think that are also operating on interim funding plished. I find that unconscionable. is worthy of the people of this country for critical programs including edu- I never said I am ashamed of the U.S. who sent us here. cation, the environment, and a number Senate. But I will tell you right at this Mr. President, in one of these pro of other programs which have had moment I come closer to it than any forma sessions I will have a great deal major cuts. As the Senator from Ohio other time. more to say about this. I will provide has pointed out, during this interim pe- Do people realize we only have some additional examples of where we are riod, a $3 billion cut in education 65 to 90 legislative days this year? being hurt. annualized. If that cut continues at the These are important pieces of legisla- Weather forecasting is being de- current level that we have through tion. The items that are being partially graded. Public safety is jeopardized. March 15, there will be a $3 billion re- funded with the continuing resolution The National Weather Service is cut- duction in education programs, every- now are limping along, as I said. We ting back for lack of passing a Com- thing from title I to Head Start to col- have veterans programs that are beg- merce bill. There is a whole number of lege loan programs to school-to-work ging right now—where veterans hos- things that people do not normally programs, and so forth. pitals are not getting the funding that think about, programs funded at levels Now, my question of our friend from they should have. We are not getting that are one-fourth reduced. Advanced Ohio is this. One of the big issues that the new hospitals that were promised Technology, the program Ounce of Pre- is outstanding is whether or not we are to be built. vention Council, Local Climate going to extend the debt limit so we So we know that on February 26, we Change, Cops on the Beat, Drug Courts, pay our obligations, just simply pay will not get anything done. Then we AmeriCorps, Community Development our obligations. The country has never will have the 27th, 28th, and the 29th, Financial Institutions, HHS Office of defaulted on an obligation yet. We have and the 1st left in that week, if we Consumer Affairs—all of these are always paid interest owing. But as of work all day Friday—which is becom- things that are being cut back now be- right now we do not know whether or ing rare around here. The debt limit cause we do not stay here and do the not there is going to be an extension of expires on March 15 and we will actu- job we were sent here to do. I just find our debt limit in time to pay our obli- ally have only somewhere around 11 or that unconscionable. gations or whether March 15 is going to 12 days to complete the work. That will I am so sorry that we are not staying come and go and we could default un- be the total time that we will have to here to take care of these things that less we extend that debt limit. work on the continuing resolution to we thought were ‘‘must-do’’ legisla- Would the Senator from Ohio agree provide for those five appropriations tion. with this, that the fact we leave this bills left over from last year. And we One other comment on the debt issue hanging, the fact that this uncer- know from past experience that there limit: Do we know what we are dealing tainty is created, and the fact that we are going to be quid pro quos all over with here? Are we to the point where are going out effectively for 3 weeks the place on the debt limit and any Wall Street and world’s financial com- while this uncertainty is out there CR’s. We know that because that is munity doubt the true faith and alle- could create a major economic problem what has happened every time they giance of the United States monetary for us even if at the last minute or in have come up this year. I think we are system? Most of the nations of the the last few days before March 15 there getting very, very short on time. world use our currency as their reserve is a satisfactory resolution; that the I think we should stay here. And I currency. They put dollars in the bank act of going out now with the uncer- think we should be working at the peo- depending on them. We put gold in the tainty that will be created between ple’s business. I think we should be bank at one time. They put dollars in now and when we effectively come working around the clock on this. And the bank. They have that kind of faith. back in itself is a danger even if people I think we should be working from 9 Yet, we are going to run right up to the were confident that somehow or other o’clock on Monday morning until 6 hilt again on this and create a lot of between the time we come back and o’clock Friday afternoon—which is doubt as to whether we are going to March 15 there would be an extension what the people expect of us when they pass a debt limit. And, if the past is of the debt limit? elected us and sent us here. They do any predictor of the future, we know Mr. GLENN. I would answer the Sen- not expect us to come in here and work we are going to have a lot of things at- ator by saying absolutely, I think 31⁄2- or 4-day weeks and then come back tached as riders so that the House has there is that danger. We saw a lot of home and make all sorts of excuses its way on the Contract With America. comment in the international financial about why we cannot get important I wish they had a Contract With Amer- press and our own domestic financial legislation passed. I do not think peo- ica on how to keep faith and allegiance press when we extended this to March ple across this country realize we are in our currency, and faith in our Gov- 15. There was some real concern ex- still working on last year’s agenda— ernment, because all we have been pressed as to why March 15, why was it five appropriations bills that we do not doing so far is creating doubt as to our not longer? If we really were confident S 1062 CONGRESSIONAL RECORD — SENATE February 7, 1996 that we were taking care of the best in- the steps necessary to make sure we do allow them to plant or not allow them terests of the United States and our not unreasonably incur debt and that to plant until we passed a new agri- economy, why did we not make it we do not irresponsibly continue to dis- culture bill. longer? Why did we make it such a place the costs of those things which It is a shame that instead of having a short period of time? The closer we get we seek to have to the next generation. Congress habitually aware of its de- to that deadline, it seems to me, the I am perfectly willing to work hard and pendence on the people, the people more questions are going to be raised. to stay late, and I believe we all are could not even do the most fundamen- The Senator makes a very good and we all ought to be. But we all tal things that citizens are supposed to point. If we ever had a real default, if ought also to work in good faith. When do without first looking to the Con- we ever come up and really go into de- we see a bill like the farm bill come up gress. I have to say that I was pleased fault, it affects our credit rating. It and we see a threatened filibuster and that the agricultural act this year raises interest rates, and it would cost several hundreds of amendments pro- moves us away from that system of de- future taxpayers billions of dollars in posed, with a view toward making it pendence. higher borrowing costs. To play around difficult to pass and enact the measure, It is the freedom to farm act. It be- with that like Russian roulette, play- I think those who are concerned about gins to say to individuals, ‘‘Govern- ing with fire around gasoline on some- the way in which we spend our time ment will not be dictating when you thing that important for the future of here ought to speak clearly in those in- plant, when you reap, whether you this country I just think is unconscion- stances as well. Because when we have plant wheat or whether you plant corn, able. I do not think we should be going filibustering, whether it be done for- when you inhale, when you exhale. The out. mally through time spent speaking in Government does not want you depend- Mr. LEVIN. I thank my friend from the Chamber or through efforts to ent on Government.’’ We need to have Ohio for yielding. I commend him for delay passage of legislation merely by a farm program and a system of agri- his statement. I must say that I totally proposing redundant amendments culture in America that initiates its concur, that the threat of using these which have nothing to do with the leg- activities based on the will, the desire, weapons against our own economy is a islation, sense-of-the-Senate amend- the creativity of individuals and the very, very dangerous thing. That ments that are not really germane to demands of the marketplace. So today threat should be removed before we go our activities, those also impair our we took a step away from dependence out for what amounts to a 3-week re- progress. by the agricultural community on Gov- cess. So I do believe that we have a great ernment. We tried to take a step away Mr. ASHCROFT addressed the Chair. job to do. I think we have to be realis- from dependence by many people on The PRESIDING OFFICER. The Sen- tic about doing it. We have to be con- Government with welfare reform, mov- ator from Missouri. sistent in working toward it. We have ing people from the dependence of wel- Mr. ASHCROFT. Mr. President, I to understand if we are, indeed, worried fare to the dignity of industry and thank you for the opportunity to about the cost of interest and the cost work. The President of the United speak. of capital in this country and what it States vetoed that. f does to our citizens, we should under- It is a tremendous problem that our stand that balancing the budget of the welfare system has encouraged depend- THE BUSINESS OF THE SENATE United States would very likely reduce ence on Government. Welfare law has Mr. ASHCROFT. It is a matter of in- the average cost of housing in this conditioned assistance on dependence terest and of concern to hear questions country to families by a couple thou- and irresponsibility rather than pro- raised about the business of the Sen- sand dollars a year, and reduce the av- moting the virtues of work, independ- ate. We have much business to conduct. erage cost of a car loan by $1,000 or ence, and integrity. I should just point out that if we are more. We have sent the wrong message. We worried about the cost of interest or That is important. That can happen have said to individuals, ‘‘No matter worried about the finances of this by balancing the budget. So we ought how irresponsible you are, we will con- country, if we are worried about the fi- to do our work. There are tasks that tinue your payments.’’ As a matter of nancial well-being of America, the full have been left undone, and we must fact, it has been worse than that. We faith and credit of the United States, focus on them. I am eager to get them have said, ‘‘The more irresponsible you nothing could be more important than done. are, the more children you bring into balancing the budget and moving this I rise today to point out one of those the world, children whom you cannot country in a fiscally responsible way tasks which remains undone. This task support, we will increase your pay- toward accountability. We must cease does not remain undone, however, be- ments.’’ We have actually provided an the practice of displacing to the next cause the Congress has failed to act. incentive for irresponsibility. generation the responsibility of paying The task of welfare reform remains un- That has been a pernicious, negative for the programs to which we seem ad- done because the President of the Unit- impact of our welfare system that in- dicted. ed States has vetoed the work product stead of moving us toward the value of We have spent a year working hard of the Congress, and has preferred the independence, it has moved us deeper to try to do that. It is a little bit trou- status quo, a rather bankrupt welfare and deeper into the mire of depend- blesome to hear individuals from the system, the tragedy of which is to be ence. The tragedy of dependence has other side of the aisle suggest that the measured most importantly in human not only been in the numerics of a work has not been hard. It has been lives and human costs, not in terms of budget that is out of control, in an en- very hard. Last year, we voted well the actual resources in dollars and titlement system, it has been in the over 600 times. In the first 5 years of cents, although they are not incon- tally of individual lives, families and this decade we voted about 320 times on sequential. entire communities. an average per year. I think if we real- At the time our Republic was coming When I served as chairman of the Na- ly care about the future of this coun- into existence, Madison envisioned, in tional Commission on American Urban try, if we really care about interest Federalist Paper No. 57, a Congress Families in 1992, I went to some com- rates, we will balance the budget. We ‘‘with a habitual recollection of their munities where 80 percent of the chil- will enact an amendment which will dependence on the people.’’ He wanted dren were without fathers. That was structurally require us to balance the Government to be dependent on the shocking. But it was almost impossible budget and the full faith and credit of people. I am afraid we have inverted to comprehend that in some neighbor- the United States will not be depend- that. We have people who are now de- hoods children were born and raised ent upon the activities of the Senate pendent upon Government. And per- who did not know a child with a father. and the House. They will be guaranteed haps today’s business in the agricul- In other words, in some of the neigh- by the structure of the Government tural area was a clear indication of borhoods in those communities, father- which we have. that—farmers who clearly would not hood was nonexistent. That is a trag- I believe that if we are concerned know how to plant, could not under- edy. That is a consequence of a welfare about the debt limit, we ought to take stand whether the Government would system that demands reform, a welfare February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1063 system which we sought to reform, and were designed to help, but seem to de- is very unlikely to be able to inspire the reform of which would have stroy the one fundamental ingredient people to the kind of ethics and values changed it substantially to avoid and in the recipe for recovery that is ab- that will result in their rescue from avert that human tragedy. But when sent from our welfare system, and that the tragedy of welfare. We passed a bill the rescue was on the way, the reform is hope. that would invite charitable organiza- was vetoed by the President of the Ernesto Ventura’s grandmother tions to deliver services because the United States. Eulalia has 14 living children, virtually compassionate capacity of these orga- The number of individuals receiving all of whom receive a variety of at nizations meets the deeper needs of in- AFDC has more than tripled—more least one form of welfare benefits from dividuals, and these organizations tend than tripled—since 1965. The rescue AFDC, SSI, food stamps, Medicaid, sub- to view individuals not just as statis- program designed to assist people and sidized housing. This does not even tics who qualify for a governmental lift them from poverty has mired them count what the grandchildren and program, but as worthy human beings deeper and deeper in the mud. great-grandchildren and others receive. who have the potential of industry and More than 3 million of 5 million wel- It is time for us to understand that the potential of opportunity and the fare recipients will be on the rolls for we need to move welfare reform to the potential of service to themselves and more than 8 years. The average length top of the agenda. We need to insist others. of stay is 13 years. Programs designed that the President reconsider his veto Our welfare reform measure included to lift people and help them up have of the reform measure which would that, and that as well was vetoed by held them down. The hand up has be- have dramatically changed this trag- the President of the United States. come a web of dependency. You know, edy. We cannot allow the veto by the a net can either be used as a safety net Yes, it is a problem whenever we President of the United States to ex- or a snaring net. Unfortunately, the threaten the fiscal integrity and finan- tinguish the flame of hope that is with- welfare system in the United States of cial security of the United States. No in us and needs to be rekindled across America has been a net of snaring rath- question about it. There is a need for this Nation from county to county, er than a net of safety. us to be fiscally responsible, finan- city to city, State to State, a flame of cially accountable. But there is some- Fifty percent of unwed teenage moth- hope that says we can do better than thing even more tragic when we threat- ers receive welfare within 1 year of what we are doing. having a child. Children born into wel- en the safety and security of the lives The wretched tragedy of the welfare of individuals born in this, the greatest fare families are three times more like- system as it now exists is not some- nation on Earth, but ensnared in a web ly to be on welfare when they reach thing with which we must live. It is of welfare, a net which was meant for adulthood. something which we can and ought to safety but which becomes a net of en- This tragedy of a welfare system, change. It is not simply a debate about which is uninterrupted and continues trapment. We need to replace the dehumanizing restructuring a Government program. unreformed because the President of dependence of Government with the It is a debate about how we will save the United States has vetoed the work dignity of work and hope. It is clear the opportunity for America to con- product of this Senate and of the U.S. that we have had a system for the last tinue to reach its potential. It is a House of Representatives, is a tragedy several decades which emphasizes debt question about rescuing our children in no uncertain terms. Perhaps the instead of discipline; it has emphasized and our culture from tragedy. tragedy is compounded in the way that the dehumanizing dependence instead The human costs of what the welfare interest compounds on debt—when you of the dignity of industry and work. It system has occasioned are beyond cannot pay the interest, you begin to has provided for decadence instead of speaking, and the examples are hard to pay interest on unpaid interest, and it decency, and the real cost of our ap- recite. But unless we confront them, snowballs. proach has been in human lives. we will never understand the desperate When you have a welfare system that Welfare reform would fundamentally need we have to change the way in is intergenerational, you have a snow- redefine this culture. It is something which we do business. balling impact of a welfare tragedy, about which we must be concerned im- Every day we fail to reform the wel- the human cost of which is staggering. mediately. From a culture of depend- fare system, we are nourishing the I give you an example. Ernesto Ven- ence, we must switch to a culture of seeds of cultural disaster in our coun- tura, a 4-year-old child from the inner dignity and hope. And dignity and hope try. We have the ingredients for reform city of Boston, MA, was brutally come in the dignity and hope of work. in the bills which we have passed. I be- abused and neglected by his mother. He We enacted a 5-year limit on benefits lieve it is time again for us to act and is a third generation welfare recipient. to say that welfare was a way of help- to call upon the President to change His mother Clarabel was 26 years old ing people up, but not of providing a his mind on welfare reform and to en- and pregnant, a mother of six, by five career. The President vetoed our inten- dorse a reform which will save a gen- different fathers—I should say men be- tions. We said that there should be no eration and provide an opportunity for cause I am not confident they were fa- entitlement that exists forever based security and success in this society in thers. A crack addict, she sold food on the ability of people to qualify, but the next century. stamps and even the family’s washing instead we should give the States the Mr. President, I suggest the absence machine to get money to purchase opportunity to structure welfare re- of a quorum. drugs. form plans which elicit from individ- The PRESIDING OFFICER. The One day Clarabel went into a rage uals the kind of behavior that would clerk will call the roll. and plunged Ernesto’s arm into boiling bring them out of welfare. That ther- The bill clerk proceeded to call the water. He did not get any medical apy was similarly vetoed by the Presi- roll. treatment until paramedics found him dent. Mr. HARKIN. Mr. President, I ask 3 weeks later in a back room of his We asked that there be a requirement unanimous consent that the order for project housing, smeared with his own for work and that people prepare them- the quorum call be rescinded. blood and excrement. selves for work, that they develop in The PRESIDING OFFICER (Mr. Ernesto’s family is the story of an themselves the capacity to be produc- ASHCROFT). Without objection, it is so intergenerational web of welfare. It is tive, to lift themselves and their fami- ordered. The Senator from Iowa. not a web that is a safety net. It is a lies out of the web of welfare depend- f net of ensnarement. Fifteen great- ency and out of the snare, the grandchildren now comprise the fourth entrapping snare of the so-called net of REPLACING FEDERAL RESERVE generation of this welfare web. The safety, which has become a net of cap- CHAIRMAN type of benefits received by the ex- ture. And requiring work was vetoed by Mr. HARKIN. Mr. President, I take tended family are the alphabet soup of the President of the United States the floor to speak on a matter of great the acronyms of Washington—all per- when he vetoed the welfare bill. importance to this country, to me per- fectly legal, and just as perfectly de- We passed a welfare bill which con- sonally and to, I know, every Senator structive to the human spirit. They fessed the fact that Government alone here. A matter of great importance to S 1064 CONGRESSIONAL RECORD — SENATE February 7, 1996 all the working men and women of Unfortunately, the Greenspan policy jobs without benefits. If you lost a six-figure America and to our future, for our chil- of slow growth and high interest rates job and got one back at $30,000, you are dren. rests on one enduring doctrine—that treated the same in unemployment rates. He goes on to say that he thinks the This is the first time I am going to high unemployment is good for the Fed is preoccupied with inflation: speak about it, but I am going to speak economy. Today, unemployment stands about it on several occasions in the at 5.8 percent. That is far too high. And Whether inflation goes up 1 or 2 percent is far more important in the eyes of Greenspan coming days and weeks. 7.7 million unemployed Americans is I wanted to begin the process of talk- than whether a person has a full-time versus far too many. a part-time job. The average person cares ing about one of the most important But according to Greenspan Federal more about having a full-time job than he decisions that President Clinton will be Reserve Board dogma, there just may does about paying a nickel more for a loaf of facing during his first term in office. not be enough out-of-work Americans. bread. The Federal Reserve has gotten so in- That decision is pending right now. Now, by contrast, Federal law sets a sulated it doesn’t realize these things. That decision has to do with who will goal of unemployment at 4 percent, a Let me say that last sentence again: be the next Chairman of the Federal goal of 4 percent unemployment. ‘‘The Federal Reserve has gotten so in- Reserve System. Of course, I do not think anyone has sulated it doesn’t realize these things.’’ He is not the only one that has been Will the President renominate Alan all the answers, but it is time we start- critical. Jerry Jasinowski, head of the Greenspan? Or will the President, con- ed using some plain common sense for National Association of Manufacturers sistent with his view that things must some positive changes. said: change and we must change the way we The first step to getting back on the do things in this country, begin the right track is to set our sights on a The Fed is fundamentally misreading the process of looking for new leadership at American economy. They ought to get out higher rate of economic growth and a from behind their desks and see what is real- the Federal Reserve System? lower rate of unemployment. And the Mr. President, I believe President ly happening in plants and on factory floors. key to this is to lower interest rates Clinton should begin to look for new So it seems, Mr. President, that seri- and keep them as low as reasonably leadership to head the Federal Reserve ous questions are not being raised and possible. System. being asked about the leadership of the Raising the living standards and the Under new leadership, we could look Fed under Alan Greenspan. I am not real wages of ordinary Americans is forward to more growth, to lower un- here to say that Mr. Greenspan is not a our primary economic challenge. But employment. But I daresay not under good and decent man, and I am sure he the policy of the Federal Reserve under Alan Greenspan. His feet are planted wants what is best for his country. I Chairman Alan Greenspan, I regret to firmly in the past. am just saying that his economic theo- say, stands in the way. Mr. President, What about the fear of inflation? ries and his approach are out of date. he should not be renominated. Well, we cannot perfectly predict the Maybe some time in the past, but not Under the Full Employment and Bal- future or rule out a rise in inflation for today’s economy. Not for the rapid anced Growth Act of 1978, the Federal sometime in the future, so we have to changes that are taking place in the Reserve is obligated to conduct mone- continue to be vigilant and well-pre- world, for American workers whose in- tary policies so as to reconcile reason- pared. But most forecasts are for con- comes are stagnant and who need to able price stability with full employ- tinued low inflation. have their incomes raised, because ment and strong, stable economic Our economy is much more global they can have higher productivity. We growth. That is the law. and open to worldwide competition. We can have greater growth in this coun- But under the Greenspan Fed, job have a new culture of mass discounting try than 1 percent or 2 percent, and we growth and the living standards of av- in retailing, cost efficiency in manu- can have this growth without the fear erage Americans have been sacrificed facturing, some pretty ruthless econo- of inflation. in the blind pursuit of inflation control mies in almost every branch of trade. As I said, Mr. President, I will repeat, and the interests of the bond market. We have rapid technological changes, over the last 20 years, our rate of eco- The Fed has raised interest rates not especially in computers, which are nomic growth has fallen by a third over when inflation was knocking at the playing a role, allowing for lower cost what it was previously. That has cost door, but when inflation did not even replacements for goods whose costs us $14 trillion. That has an impact on threaten. In 1994, in the midst of 7 rise. Oil supplies are high, relative to average families on unemployment, straight rate increases, Chairman current demand. lower jobs, lower quality of jobs, lower Greenspan himself acknowledged that Well, what all of this really means is income. there was no evidence of inflation. that we can now have fuller employ- The chairmanship of the Federal Re- It is time for the Federal Reserve to ment without inflation—allowing our serve is up soon, next month, I believe. pursue a more balanced policy, based workers to fully benefit from their Mr. President, it is time for a change. on raising economic growth and in- higher productivity with higher in- President Clinton has the opportunity creasing jobs, alongside continued vigi- comes—that is, if we push for fuller to bring about positive change by lance against inflation. Outgoing Vice employment through our monetary bringing in new vision and new leader- Chairman Alan Blinder argued for just policy. That is where it has to come ship to this position. America needs a such a course. from. forward-looking Fed Chairman who With the downsizing of Government Real growth to strengthen our econ- recognizes the importance of expanding spending and its more limited ability omy is essential. Over the last 20 years, opportunities for our economy and our to stimulate the economy, the signifi- our economic growth has fallen by people in today’s global market. cance of the Federal Reserve interest about one-third over what it was pre- We need strong leadership, commit- rate policies has grown even larger. viously. That huge drop in our eco- ted to higher growth and higher in- Chairman Greenspan is guided by a nomic growth has cost our economy in comes, fuller employment, and lower, concept called the ‘‘natural rate of un- the neighborhood of $14 trillion. What more stable interest rates, to improve employment’’—the principle that there that means is stagnant incomes for av- the quality of life for average Ameri- is some definite rate of unemployment erage families, higher unemployment, cans. Mr. President, Alan Greenspan’s below which workers’ incomes will rise, and a lower quality of life in America. time has passed. It is time for new leading to rising inflation. And, obvi- Mr. President, I have an article that leadership at the Fed. ously, Mr. Greenspan accepts statis- appeared last year, but I thought it Mr. President, I have an article here tical estimates by some economists summed it up pretty well. Patrick that appeared in the International that tell him the rate is now at, or Gaughan, Director of the New Jersey Economy in November-December 1995, near, 6 percent unemployment. In Economic Research Center said: by William Greider. I ask unanimous other words, if we fall below 6 percent We blame Alan Greenspan. Seven interest consent that it be printed in the unemployment, inflation is going to, rate increases are taking their toll. Green- RECORD. boom, go up. But unemployment has span’s statistics represent picking up effects There being no objection, the article been just below 6 percent for over a that are apparent in day-to-day living. Peo- was ordered to be printed in the year, and inflation continues to fall. ple listed as employed are working part-time RECORD, as follows: February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1065 [From the International Economy, Nov.–Dec. grams just in time for his reelection. But span because his slow-growth economic poli- 1995] that door slammed shut last November when cies are hurting average American families.’’ SLEEPING WITH THE DEVIL the Republicans took over Congress and re- If Bob Dole wants to defend the Federal Re- BILL CLINTON WILL LOSE THE 1996 ELECTION UN- discovered fiscal prudence. serve’s noose on the American economy, let What’s occurring is quite explosive for him. If Wall Street financial analysts freak LESS HE CHANGES HIS ECONOMIC STRATEGY. American polities and threatening to both DUMPING FED CHAIRMAN ALAN GREENSPAN out, all the better. If Republican senators parties. The overall returns from conven- WOULD BE A GOOD START refuse to approve a new chairman, Clinton tional economic growth are no longer being can run on the issue all year long. The (By William Greider) distributed widely through out the society, central bank will run just fine with a tem- The killer campaign issue of 1996 is the but rather are skewed upward to a fairly porary chairman, while politicians debate same old criterion that usually determines small group of citizens. The implications are the gut issue of American politics: the pros- the fate of incumbent presidents—incomes devastating for the president, but ultimately pects for economic growth. and general prosperity—and by that measure also for the ascendant Republicans with Politics aside, here are three substantive Bill Clinton looks like a goner. The financial their much-celebrated ‘‘revolution,’’ since reasons to shake up the central bank: economists at the Federal Reserve and the they too have no answer to the wage prob- 1. Greenspan is an appropriate symbol of White House congratulate themselves for lem. If most American families continually the wage disorders and the larger economic having tamed Americans’ unruly appetites lose ground during the ‘‘good times,’’ is it debate that ought to engage the nation in by engineering a 2-by-2 economy that ap- any wonder national politics is turning weird 1996. The immediate question for candidates pears quite satisfying when viewed as ab- and unstable? is this: Do you agree with the Federal Re- stract policy: 2 percent growth, 2 percent in- Of course, no president can be expected to serve’s gloomy assumption that the U.S. flation. But the political problem is that in singlehandedly reverse the deeper wage economy must not grow faster than 2 per- the real world, where most voters live, this trends, but it matters to people whether a cent to 2.5 percent a year? If the American slow-growth regime guarantees the continu- politician is pulling for them or against economy is permanently constrained to 2 ing erosion of wage incomes for most Amer- them. Clinton’s gravest political error was to percent growth, forget all the other issues ican families. sit passively while Greenspan and the Fed- that politicians propose, since most families The last peak in the median family income eral Reserve Board knocked the steam out of are certain losers in such a scenario. Which occurred in 1989, followed by recession and a the economy. That decision effectively guar- side are you on? shrinkage of 7 percent. But although the anteed that wages for most people will con- 2. Greenspan’s intellectual explanations for economy was again growing in 1995 after ex- tinue to decline throughout his presidency. why the Fed had to squelch the [economic] panding smartly during 1994, income levels By the summer of 1995, Clinton was deliver- recovery are quite lacking and will not with- had still not regained the lost ground. Since ing soulful speeches lamenting the effects stand serious scrutiny by intelligent grad- Clinton’s election, wages have been flat or that the forces of globalization were having uate students, much less rank-and-file citi- falling (discounted for inflation) for every- on average American families. But the words zens. ‘‘The chairman has proposed a simple- one except the top 30 percent of women on are unconvincing since he himself aligned minded rule for determining what he calls the income ladder and the top 20 percent of with those forces. ‘‘the maximal growth of a nation’s well- men. Such beneficiaries are not exactly The iron law of presidential politics holds being.’’ (Note: He does not say ‘‘maximal lunch-bucket Democrats. that an incumbent needs robust, rising pros- economic growth’’ or explain whose ‘‘well- Clinton’s presidency is distinctive in these perity during his reelection year to win a being’’ will be maximized by his policy.) His terms: Unlike previous cycles, most people second term. If the reverse occurs, as it now rule is that, since the labor force expands by did not receive the usual bounce in family is, he loses. From Herbert Hoover to George 1.1 percent and productivity by 1.4 percent, incomes once the ‘‘good times’’ supposedly Bush, there have been no exceptions to this that adds up to 2.5 percent growth and that’s resumed. The wage declines persisted despite rule. Of course, Clinton can perhaps some- it. Anything more, he opines, ‘‘would in the the modest recovery and the healthier how elude these fundamentals with luck and end do more harm than good.’’ growth rate during 1994. Then the Federal a clever campaign, but it would require an What’s wrong with his numbers? Usual ide- Reserve stiffed the president: 4 percent historic levitation of public opinion. ological arguments over growth and infla- growth, it announced, was dangerously infla- The key electoral indicator is real per cap- tion aside, the Federal Reserve assumes the tionary, and it thus pulled the plug on the ita disposable personal income: the money economy is already at full employment— Clinton recovery. people have left to spend after taxes and in- that there are no willing workers left to em- As in so many other matters, Clinton flation have taken their bites. When that in- ploy. Anyone who spends a few minutes ex- meekly deferred to the wisdom of his elders. dicator is rising sharply it is a reliable ‘‘feel amining the reality knows this is fraudulent: He made not a peep of protest as Alan Green- good’’ barometer for the nation even if it it excludes the millions of involuntary part- span raised interest rates and cast a heavy does not reflect the gross maldistribution of time workers and the millions more who are shadow over his reelection prospects. The incomes. Last year, disposable income was simply not counted. It presumes a static per- White House actually concurred with this expanding mildly at about 2 percent until fection in job markets that will seem ludi- move and the president’s principal economic the fourth quarter, when it spurted by a very crous to anyone who talks to young people advisor, Laura Tyson, even boasted about robust 6.4 percent, due to the surging eco- looking for jobs (or to the older people who the depressed labor costs, which were rising nomic growth. If the economy had continued have been restructured out of theirs). Green- in 1993 at one of the lowest annual rates in growing by 4 percent a year, greater and span’s 2 percent solution is terrific for the three decades. ‘‘We see a very well-behaved greater numbers of people would have gradu- bond holders but terrible for the future secu- employee compensation index,’’ Tyson an- ally shared the benefits. Instead, the Fed’s rity of most families. nounced. Well, in 1996 the president is going brakes took hold and personal income The Greenspan logic, oddly enough, also to see some very ill-behaved voters—includ- growth also began subsiding at an even more excludes the global economy—the competi- ing many of the working-class Democrats rapid pace. tion of low-priced imports that serve as a who were among his original electoral base By the spring quarter, disposable income market restraint on U.S. wages and prices, of 43 percent. was shrinking at a rate of minus 2 percent. I the gross overcapacity in the worldwide pro- Bill Clinton made his choices and now he don’t know how Clinton’s economic wizards duction base and the ability of the multi- has to live with the results. Though elected expect to reverse such a trend, but they must nationals to shift their output from country as a Democrat by talking eloquently about attempt to do so quickly—or Clinton will to country, adjusting to the cycles of supply the crisis of declining wages, he opted for a join Bush and Jimmy Carter in the one- and demand. The country needs a larger de- financial-market strategy for governing; termers’ Hall of Fame. bate on all such matters but it will not re- trusting the Fed and the bond market to re- To counter this reality, Clinton has an ex- ceive one as long as politicians defer to the ward him for enacting significant deficit re- cellent campaign issue sitting on his desk if opaque reasoning of the Fed. ductions by lowering interest rates. But both he has the nerve to use it: dumping Green- 3. Another strong reason to dump Green- of them ran out the door once Clinton had span. The Federal Reserve chairman, a con- span is that he has been highly political de- trashed his own campaign promises to in- servative Republican economist first ap- spite the supposed non-partisan nature of the crease public investments. When Repub- pointed by Ronald Reagan and reappointed independent central bank. This Fed chair- licans play to the bond holders, they employ by Bush, completes his second term in man has been mucking around in all sorts of superior timing: They take the hit on the March. The smart money says Clinton will political issues far beyond the ken of mone- economy early in the presidential term so reappoint him to another four-year term tary policy, usually in ways that will injure things will be back on track and growing since—it is assumed—the Republican Senate broad ranks of citizens. First cozying up to robustly in time for the next election. The will refuse to confirm anyone else, especially Clinton, he is now sucking up to the new Re- investment bankers Clinton recruited as ad- anyone burdened with such old-fashioned publican majority in Congress. He pushed visors seem quite naive about electoral cy- concerns as family incomes. Clinton to drop his original jobs agenda and cles (or perhaps indifferent to his fate). But instead of acceding to this scenario, instead deal with the deficits. Now Green- My hunch is that Clinton cynically as- Clinton ought to discard the old pieties span is collaborating with Republicans so sumed he could get around to helping the about the supposedly independent Federal they too can break their promises. folks during the second half of his term, Reserve, ignore his own advisors and make a Greenspan provided the stimulus for a de- pumping up their gratitude with new pro- noisy fight of it: ‘‘I am replacing Alan Green- vious game that is underway to cut Social S 1066 CONGRESSIONAL RECORD — SENATE February 7, 1996 Security and raise income taxes—both of cians ever grasp the contradiction, it may dated, outmoded and time-worn eco- which the Republicans promised not to do in well be triumphant Republicans, not Demo- nomic philosophies that have no bear- their celebrated ‘‘Contract With America.’’ crats, who finally have to take on the Fed. ing or no real relationship to the real Greenspan personally began the proceedings Mr. HARKIN. As I said, Mr. Presi- world as we see it today. early in 1995 when he announced the Fed’s dent, I will be discussing this issue at conclusion that—eureka!—the Consumer I am publicly calling on President Price Index overstates inflation by as much greater length in the days and weeks to Clinton to bring new leadership to the as 1.5 percent. Never mind the obvious con- come. I guess we are on recess now. I Federal Reserve System next month. I tradiction this asertion posed for the chair- guess the Senate will be in again later yield the floor. man’s own arguments about inflationary this week and I guess next week. I do dangers and the need to stifle the economy. not know when. But I hope to take f Greenspan’s purpose was to suggest that by some more time on the Senate floor to adjusting the CPI Congress could lop more discuss the Federal Reserve System than $20 billion from Social Security and and why what they are doing and the CAMPAIGN FINANCE REFORM other benefit programs and add a similar amount in higher tax revenues. The CPI is course of action they are taking is not Mr. SPECTER. Mr. President, I have used to calculate annual cost-of-living in- consistent with the real world. It is sought recognition to comment about creases for a variety of entitlement pro- what is happening in the global econ- the increasing public concern about the grams and to protect taxpayers from being omy, with what is happening to real unlimited amounts of money that indi- pushed into higher tax brackets by inflation. competition, with what is happening to viduals spend from their own private Adjust it downward and Congress can find $40 the need, and not only the need, but fortunes to gain public office in the billion or $50 billion. Look, no hands—we’re the possibility of real economic growth United States, which I believe poses a cutting Social Security and raising taxes in this country. and nobody can see us doing it. This is the real threat to democratic government type of sleight-of-hand that Americans have The growth rate that seems to be ac- in our society. come to expect from Washington and it is ceptable to Mr. Greenspan I do not be- I have spoken about this subject in the reason both parties are loathed. If Re- lieve is acceptable to the rest of this the past and have, along with Senator publicans try to speak this into legislation country. From February 1994 to Feb- HOLLINGS, supported constitutional late at night. I hope the voters catch them. ruary 1995 under Chairman Greenspan Clinton could use all of these arguments to amendments, because that is what is interest rates were raised seven necessary to deal with this campaign explain why he is replacing the Federal Re- times—seven times in 1 year, three per- serve chairman, though I concede it would be finance reform issue, because the Su- out of character for him to do something so centage points. It went from 3 percent preme Court of the United States de- provocative and independent of the conven- to 6 percent in the year that ended in cided a little more than 20 years ago, tional wisdom. But think of the bumper February 1995. on January 30, 1976, in a case captioned sticker: Now, we do have to be vigilant about Buckley versus Valeo, that an individ- ‘‘Dump Greenspan. He’s Good for Bonds/ keeping inflation in check. But even ual can spend as much of his or her Terrible for Wages.’’ Mr. Greenspan said there was no infla- money as he or she chose, notwith- ‘‘Dump Greenspan: The Guy is Standing on tion. Inflation has not been threaten- Your Paycheck.’’ standing spending limitations on ev- ‘‘Dump Greenspan: He Stopped the Party ing, certainly not in the last year, Mr. eryone else. President. But you would think if that Before You Got Any Punch.’’ As I have said on this floor, that case If Clinton doesn’t rewrite his hair shirt is the case, interest rates would come had a substantial personal impact on economic message, he will be stuck in about down. But since February of last year, me because I had declared my can- the same place that Jimmy Carter was in the Fed has lowered interest rates only didacy for the U.S. Senate in late 1975 1980, telling voters: ‘‘Sorry about the econ- three-quarters of a point. So he can when the campaign finance law had re- omy, folks, but this is about as good as it’s raise interest rates 3 percent in 1 year, going to get.’’ Rational voters, given that cently been enacted. In 1974, specified but in the next year he can only lower choice, will usually opt for something else— on a population basis for the State, a them three-quarters of a point. The re- anything else—even a fairly loopy or nasty State the size of Pennsylvania had a cent small reductions may make peo- alternative. limit of $35,000, which is about what I I Remember the Gipper’s favorite question: ple feel a little good. But they are still had in the bank, having recently re- ‘‘Are you better off now than you were four not down to where they were in Feb- turned to private practice after having years ago?’’ Next year, I expect Republicans ruary 1994. to ask that question again, with devastating I find it more than passing strange been district attorney of Philadelphia. effect, Once again, they will be able to grab that interest rates can go up 3 percent That year I contested a man who the high ground from the Democratic Party in a year but they can only come down later became a very distinguished U.S. by calling for faster economic growth. Senator—he won the election in 1976— Speaker Gingrich occasionally opines that three-quarters of a point in the follow- the economy can grow at a 5 percent rate, ing year when there is no inflation a very close personal friend of mine, through he does not explain how, given the threatening at all. I think it is very Senator John Heinz, who was able to obvious contradictions with the austerity important to talk about this because of spend beyond the limits established provisions of the GOP agenda and the Fed- the significant impact it has on our under the statute because the Supreme eral Reserve’s assumption that 2 percent economy and the income of average Court of the United States declared the growth is ‘‘maximal.’’ law unconstitutional, on first amend- In other words, if the Greenspan era con- Americans. I know there are other Senators who ment grounds, limiting the amounts tinues for another term, the political ques- anybody else could spend. My brother, tions about economic growth will not go feel as I do. I know that Senator DOR- away. The same contraditions—the broad de- GAN also wants to take the floor to for example, could have contributed terioration of incomes and the central speak about this issue and about the substantially but could only spend bank’s doleful logic—will confront Repub- need for a new policy, for new policy $1,000 by way of contribution. licans if they win the White House. The Re- directions at the Federal Reserve Sys- This has become a proliferating, ex- publicans are leaning on the same frail reed tem. panding problem in our society, with that failed Clinton: a vague hope that the Mr. President, I wanted to take the many Senate seats having been, in ef- Federal Reserve and the bond market will help them by lowering interest rates. They floor to alert my colleagues that I will fect, bought with enormous personal should get Greenspan to put this in writing. be putting more information in the contributions. Now we are seeing the The dilemma of the economy’s growth rate RECORD and I will be discussing this at matter played out on the national is at the center of American politics but is length in the days and weeks to come. level, obtaining a lot of national noto- seldom directly debated, since almost every- As I said, I certainly hope that Presi- riety, with recent disclosures showing one assumes that faster is better. Even the dent Clinton will see the necessity for expenditures in excess of $15 million antigovernment conservatives promote var- new leadership, and through guidance because people are not limited by the ious proposals, such as a capital-gains tax at the Federal Reserve System, appoint Federal laws if they choose to spend cut or regulatory decontrols, based on the same premise: The measure will produce someone with a new vision, someone their own money. Those Federal laws faster economic growth. But how can they do with new vigor and energy who under- on matching funds for the Presidency so, if the Fed insists 2 percent is the most stands the real world as it is out there limit the amount that anybody can the nation can handle? if voters and politi- and who is not just locked into out- spend, if they take Federal funding, to February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1067 about $600,000 in New Hampshire, about kind of spending has really potentially Responsive Politics in Washington. ‘‘What $1 million in Iowa. Those funds are not cataclysmic impact on the electoral Forbes shows is that the ‘free expression’ of the limit for those who spend their own process in the United States. a non-wealthy candidate, or a voter who I do not want to keep the Senate here can’t afford to contribute money, is drowned funds. out by the free expression of a candidate who I was fascinated to see on Friday in too late. It is now 6:15. I know the lead- can finance himself.’’ the New York Times, a column by An- er wants to wrap up, but I did want to If Forbes’ candidacy proves that money thony Lewis, about this precise sub- make these brief comments. talks, the public doesn’t appear concerned. ject. I was surprised to see it because At this time I ask unanimous con- The latest survey puts him ahead of Bob Mr. Lewis is well known for his defense sent the full text of these articles by Dole by nine points in New Hampshire, Anthony Lewis in the New York Times which stages the first primary, on Feb. 20; of the Constitution and his defense of three weeks ago, the survey showed Forbes the first amendment. I think I have of February 2, and the article by Dick trailing—by 16. As several New Hampshire that same record, concern about the Polman of the Philadelphia Inquirer of voters insisted in interviews last week, Constitution, concern about the first February 4 be printed in the CONGRES- Forbes can ‘‘afford’’ to be his own man. amendment. SIONAL RECORD. Some say this sentiment is naive. ‘‘I’ve run So, when Anthony Lewis wrote a col- There being no objection, the articles [congressional] campaigns against rich peo- umn in effect calling for the overruling were ordered to be printed in the ple,’’ says an adviser to a Forbes rival, ‘‘and you have to pay attention to the people they RECORD, as follows: of Buckley versus Valeo, which was de- socialize with and do business with. In cided on first amendment grounds, I [From the Philadelphia Inquirer, Feb. 4, 1996] Forbes’ case, it’s all his magazine advertis- thought it a very important event. At IF MONEY TALKS, WHAT DOES IT SAY OF ers, his vendors, accountants, investors, law- the conclusion of my presentation I FORBES? yers—a whole culture.’’ will ask this be printed in the RECORD. (By Dick Polman) It is not all Forbes’ money. He has also staged fund-raisers—including a Philadel- But I only want to cite one sentence Ask Charles Lewis about the Steve Forbes phia event Friday night—and has drawn the phenomenon and you get a shake of the head from it at this time, referring to the corporate elite. Miller complains: ‘‘He’s sell- and a sigh of exasperation. current events, on the tremendous ex- ing himself now. He’s breaking the myth ‘‘What’s so disturbing,’’ he says, ‘‘is that penditures by an individual, that these that he can’t be bought.’’ As long as he here you have a guy who’s pumping his own doesn’t seek public matching funds, though, events may pose. A ‘‘real contribution millions into his presidential campaign—and he remains free of restrictions. should be to make us think of ways to a substantial number of voters aren’t both- overcome the Supreme Court’s mis- And the public seems not to mind. Gerry ered by it. This gnaws away at me a bit.’’ Chevinsky, the pollster who conducted the guided 1976 decision that limiting how Lewis is a Washington activist who wants latest New Hampshire survey, explains the much political candidates can spend on to curb the power of money in politics—wit- public’s growing support: ‘‘We asked people themselves violates their freedom of ness his new book, The Buying of the Presi- if they thought it was appropriate for a can- speech.’’ dent—and that explains why he gets so hot didate to use his own personal money in a I think it worth noting, when An- about the new darling of the Republican big ad campaign—and 61 percent said yes. field. thony Lewis calls the Supreme Court They are so turned off to Washington, and to Lewis pursues his point, with a dollop of politicians in general, that they’re looking decision ‘‘misguided,’’ he, in effect, sarcasm: ‘‘Apparently the answer to our for anyone who doesn’t play the political joins Senator HOLLINGS and myself and problem is, we should elect a multimillion- game. The support for Forbes is symbolic. He others in calling for a constitutional aire because we think he’s not [beholden] to is a sanitized Perot.’’ amendment. On Friday, February 2, special interests. Well, look at the people Forbes also gets a boost from Steve the day this appeared, I called Mr. who are helping him. Look at the world he Salmore, who advises Republican campaigns Lewis. Before I could tell him the pur- lives in. . . . He has come absolutely out of in Forbes’ native New Jersey: ‘‘People see nowhere. At least Bob Dole is familiar to us. that . . . he’s not just saying something in pose of the call, he said, ‘‘I think I But this guy? It’s like The Twilight Zone.’’ order to pander to people. There’s a feeling know what you are calling about.’’ He In terms of money and moxie, there has that if you’re spending your own money, was exactly right. never been a presidential candidate like that at least you believe in what you say.’’ On Sunday in the Philadelphia In- Steve Forbes. Yes, Ross Perot spent $60 mil- Is it unfair that Forbes can outspend ev- quirer there is an extensive article by lion in 1992, but he arrived late in the game eryone else? Not necessarily, argues Mr. Dick Polman, on the same subject, and ran as an independent; unlike Forbes, he Salmore: ‘‘The court said, ‘Spending your starting off, ‘‘If money talks.’’ Again, didn’t target the primaries and try to blow own money is a form of speech.’ And rightly so. Look, is a businessman who wants to in- quoting only one small section, Mr. out rivals with saturation advertising. And, yes, John F. Kennedy spent his father’s fluence [the public] supposed to take time Polman noted, referring to Buckley money, but JFK was a career politician. away from his work just to . . . lick stamps? versus Valeo: Forbes, by contrast, is a career publisher The career politicians already have the ad- The justices ruled that candidates could of inherited wealth and conservative bent, vantage.’’ spend their own money as they wanted, as an whose sole public job was a stint as board He says that if campaign-finance reformers exercise of their constitutional right to free- chairman of Radio Free Europe. As the hot- are unhappy, they have only themselves to dom of expression. Publicly financed rivals, test ticket in the Republican road show, he blame. After all, the court in 1976 was trying on the other hand, must obey spending ceil- is pushing a flat income tax that would put to clean up the reforms adopted in 1974. Re- ferring to good-government activists, ings in each state—$600,000 per candidate in more money in his own pocket, according to Salmore scoffs: ‘‘This is the problem with New Hampshire, $1 million in Iowa. an independent analysis sponsored by Lew- the ‘goo-goos.’ They put in reforms, and you is’s public-interest group, the Center for Now, Mr. Polman quotes from a com- end up with a system that helps some and Public integrity. Despite repeated requests, ment by Miss Ellen Miller, who directs hurts others. A classic case of unintended he refuses to follow Dole’s example and re- the Center for Responsive Politics in consequences.’’ lease his income tax returns. Indeed, the system that has soured so Washington, ‘‘That ruling made no Most important, his lavish private spend- sense 20 years ago, and it certainly many Americans—the ties between politi- ing is wreaking havoc among his chief reviv- cians and special-interest political action makes less sense today.’’ als, all of whom are bound by the strict fed- committees (PACs)—evolved as a con- As the Presidential campaign moves eral spending limits that inhibit those who sequence of the 1974 reforms. forward and we see the impact, I am accept campaign money from the public The congressional reformers, seeking to surprised that money could have made treasury. Forbes is free to spend, but they banish ‘‘fat-cat’’ contributors, enacted a law as much a difference as it has in what are not—thanks to a landmark Supreme requiring that presidential candidates accept Court ruling 20 years ago this week. has resulted so far as shown by the only small amounts—no more than $1,000 In fact, the self-financed Forbes candidacy from an individual and $5,000 from a group— public opinion polls in New Hampshire would not exist without Buckley v. Valeo. with the totals then being matched by the and Iowa. It may really be possible to The justices ruled that candidates could federal treasury. This law also decreed that buy the White House if enough money spend their own money as they wanted, as an no candidate could spend more than $50,000 is spent from an individual who report- exercise of their constitutional right to free- of his or her own money. edly has $400 million. And if that indi- dom of expression. Publicly financed rivals, The high court kept the first two provi- vidual chooses to spend, say $200 or $300 on the other hand, must obey spending ceil- sions (the amounts are the same today), but ings in each state—$600,000 per candidate in or $350 million—what is the difference threw out the cap on personal funds. And New Hampshire, $1 million in Iowa. here are the results: if you have $50 million more left over? ‘‘That ruling made no sense 20 years ago, It takes enormous effort to build a sizable You probably have enough for any and it certainly makes less sense today,’’ war chest from small contributions. Can- other contingency—the impact of that says Ellen Miller, who directs the Center for didates can do it faster by relying on special- S 1068 CONGRESSIONAL RECORD — SENATE February 7, 1996 interest PACs, which is one big reason that year. That would mean an enormous increase Court for the District of Columbia, the PAC population has exploded over the in the deficit or severe cuts in Social Secu- written by his dear friend U.S. District last two decades. By contrast, someone like rity, Medicare and the defense budget. There Judge Oliver Gasch. I was privileged to Forbes doesn’t need to play even this game. is not enough discretionary civilian spending serve under Oliver Gasch as an assist- And while Forbes can spend whatever he to absorb more than a small part of that wants wherever he wants, the others must amount. ant when he was U.S. attorney for the obey the state-by-state ceilings. These ceil- Why would New Hampshire voters want to District of Columbia, and I came to ings often inspire creative cheating. inflict such misery on themselves in order to know Judge Pratt. One veteran strategist says: ‘‘To stay in- give Steve Forbes and others in his bracket Mr. President, the recognition of the side the [spending] limit in Iowa, you rent big tax cuts? Many may simply not under- many accomplishments and contribu- all your cars in Kansas and Nebraska, and stand the consequences. tions of Judge Pratt to his chosen pro- charge the accounts there. . . . Charge the Detailed findings of the new poll suggest cars in states where you know you won’t be fession—the law—are too numerous to that the meaning of the Forbes flat tax has list. Having served on the bench for 27 spending much money. Then bring the cars not quite sunk in—but is beginning to. over to Iowa. Problem is, some poor schlepp Asked whether they supported the Forbes years, Judge Pratt helped to shape has to drive all the cars back.’’ tax plan, 37 percent said yes—down from 54 legal definitions of civil rights and dis- The big question is whether anything will percent three weeks ago. crimination. be done. Salmore likes the idea of allowing And of those who said they favored the flat Having served during World War II, publicly financed candidates to keep pace tax, 45 percent said they would not be for it Judge Pratt was honored as a distin- with the rich; if Forbes is spending big if it exempted investment income so the guished member of the U.S. Marine money, then remove the ceilings and allow wealthy could live tax-free. Others in vary- his rivals to raise and spend the same Corps earning the Bronze Star and a ing numbers dropped out of the group favor- Purple Heart for his service. amounts. ing a flat tax if it eliminated deductions for But Bill Bradley, a Democrat who is retir- home mortgage interest or local property Judge Pratt once served as a page in ing from the Senate, is calling for a constitu- taxes—as the Forbes plan would. the U.S. Senate. I am pleased to ask tional amendment that would bypass the The more attention 17 percent flat tax unanimous consent that the tribute in court and allow Congress to set spending gets, the less likely voters are to support it. honor of the late Judge John Helm limits on rich candidates. In a speech last But that need not be the end of Steve Forbes. Pratt be printed in the RECORD. month, Bradley said: ‘‘Money is not speech. When New Hampshire supporters were asked A rich man’s wallet does not merit the same There being no objection, the tribute why they liked him, the largest category of was ordered to be printed in the protection as a poor man’s soapbox.’’ responses (37 percent) was that he was not a Charles Lewis says: ‘‘Buckley is the big- RECORD, as follows: Washington insider. In short, angry Ameri- gest roadblock to reform, so we either need cans—and there are a lot of them—can work A TRIBUTE TO JOHN HELM PRATT a constitutional amendment, or . . . How do off their feelings by voting for Mr. Forbes. We were all saddened by news of John’s we do this in the fairest possible way? The loser in all this is Bob Dole, and that passing on August 11, 1995. He died at home ‘‘I have to say, I don’t know the answer.’’ is reason for regret. Even those who disagree surrounded by his devoted wife of 56 years, [From the New York Times, Feb. 2, 1996] with him on this issue or that must recog- Bernice Safford Pratt, and five children, Sis- nize that he is a responsible political leader ter Clare Pratt RSCJ of Rome, Italy; Lu- LESS IS MORE and a serious man. cinda Pratt Pearlman of Berkeley, Califor- (By Anthony Lewis) It is hard to take the other Republican nia; John, Jr. of Red Bank, New Jersey; Pa- BOSTON.—A rich man campaigns for Presi- candidates seriously. The party has lurched tricia Pratt Moriarty of Wellesley Hills, dent on a one-plank platform: ‘‘Vote for me far to the right, but I doubt that it has be- Massachusetts; and Mary Pratt Brandenburg to cut my taxes drastically and make many come suicidal enough to nominate Phil of Columbia, Maryland. In an autobiograph- of you pay more.’’ The voters respond with Gramm or Pat Buchanan. ical sketch written for his 50th Harvard Re- enthusiasm. As for Steve Forbes, my guess is that he union, he listed the priorities which meant It sounds like fiction, a parody of the will look increasingly flaky. He told a Bos- the most to him as: family, friends and ca- American political process. But judging by ton Globe interviewer this week that much reer. He added that ‘‘family stability has what is happening in New Hampshire, it is of acid rain ‘‘is created by nature, not by contributed more than any other factor to reality. Three weeks before the primary smoke-stacks.’’ Mr. Forbes’s real contribu- whatever satisfactions have been mine.’’ there polls show Steve Forbes, the flat-tax tion should be to make us think of ways to John Pratt’s exceptional and distinguished candidate, in the lead. overcome the Supreme Court’s misguided career can be divided into three segments: A survey just taken by The Boston Globe 1976 decision that limiting how much politi- first, his education and early legal career; and WJZ-TV finds 31 percent of likely voters cal candidates can spend on themselves vio- second, his service as a Marine in World War favoring Mr. Forbes. Senator Bob Dole, who lates their freedom of speech. II; and third, his return to private practice has dominated the figures for a year, is sec- and his appointment as a trial judge. ond with 22 percent. Just three weeks ago Mr. SPECTER. Mr. President, I yield the floor and suggest the absence of a John’s education was unusual. He attrib- the same pollsters gave Senator Dole 33 per- uted it to his mother: Boston Latin School, cent, Mr. Forbes 17. quorum. Gonzaga High School,1 two years at George- Mr. Forbes has poured millions from his The PRESIDING OFFICER. The town College, his transfer to Harvard Col- personal fortune into television advertising clerk will call the roll. lege, from which he almost flunked out but in New Hampshire. In the new poll 85 percent The assistant legislative clerk pro- graduated two years later with honors at age of the respondents said they had seen his ads. 19; Harvard Law School, from which he grad- Most of them are negative, principally at- ceeded to call the roll. Mr. DOLE. Mr. President, I ask unan- uated in 1934. tacks on Senator Dole. Just about the only After graduation, he became associated affirmative argument he offers is for the flat imous consent that the order for the quorum call be rescinded. with the Washington firm of George Maurice tax. Morris. Mr. Morris was a distinguished tax The Forbes tax proposal would exclude the The PRESIDING OFFICER. Without lawyer and John found himself doing re- first $36,000 in income for a family of four, objection, it is so ordered. search work on Mr. Morris’s cases and his then tax all earnings above that amount at book on corporate tax law. Since John had a rate of 17 percent. Income from invest- f no special interest in tax law, he was re- ments would not be taxed at all. MORNING BUSINESS A change of that kind would be a boon for lieved when a highly controversial ‘‘stoker’’ Mr. Forbes and other wealthy Americans, Mr. DOLE. Mr. President, I ask there case come to the firm. The Brotherhood of who now are taxed on investment income Railway Engineers and Firemen had sued the now be a period for the transaction of railroads to require installation of auto- and pay a marginal rate of 39.6 percent on in- routine morning business, with Sen- come over $256,500 a year. To produce the matic stokers on the large steam loco- ators permitted to speak for up to 5 motives. The record before the administra- same revenue as the present system, the flat minutes each. tax would have to make the middle class pay tive law judge was approximately 30,000 more. The PRESIDING OFFICER. Without pages. On this John and an associate worked The Treasury Department analyzed a flat objection, it is so ordered. long hours and with tremendous dedication. Their efforts were rewarded when the Sixth tax that would keep government revenue f steady, one with a rate of 20.8 percent and Circuit affirmed the favorable decision of the excluding the first $31,400. A family of four JUDGE JOHN HELM PRATT administrative law judge. Incidentally, one earning $50,000 a year would pay $1,604 more of John’s opponents representing the rail- in taxes, one earning $100,000 an additional Mr. WARNER. Mr. President, I am roads was my late brother-in-law Carleton $2,683. But a $200,000 family would save $3,469. pleased to place in today’s RECORD a Meyer, also a Harvard law graduate. Mr. In fact, the Forbes formula as drafted copy of a tribute to the late Senior would cut Federal revenue by $186 billion a Judge John Pratt, of the U.S. District 1 Footnotes at end of article. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1069 Morris later became President of the Amer- and she replied, Peabody. He inquired wheth- Marvin Mandel. After some three months of ican Bar Association. er she was related to Endicott Peabody, the trial, because of evidence of jury tampering, I got to know John in those days because Headmaster of Groton School. She replied, John declared a mistrial. Another judge was we were both interested in touch football he is my father. During the course of this assigned to the case, which resulted in a con- when the weather got cool and softball dur- conversation, they were both aware of the viction. In looking over the extensive list of ing the spring and summer. John was a fact that another Marine, who had lost a leg, cases in which John wrote opinions, found in heavy hitter and extremely skillful at toss- was cursing out the orderly for pain caused the ‘‘Federal Supplement,’’ ‘‘Federal Rules ing forward passes. Toward the end of this in the changing of his dressing. John said to Decisions,’’ ‘‘Washington Law Reporter,’’ period, our close friendship resulted in our Miss Peabody, you wouldn’t hear language and other publications, I ran across one in establishing bachelor quarters with two like that at Groton School, would you? She which minister Farrakhan was involved. The other young lawyers. Our social efforts were replied, without changing her expression, Fa- case concerned a presidential order involving directed toward a group of attractive young ther does not condone profanity at the sanctions against Libya and, among other women who were recent graduates of Vassar school. things, precluded travel to that country. and Bryn Mawr and who lived together in a John’s awards, in addition to the Purple Minister Farrakhan denounced the sanctions house on 34th Street known as ‘‘The Nun- Heart, included the Bronze Star and two and announced his intent to travel to Libya. nery.’’ We waltzed at the Sulgrave Club and Presidential Unit Citations. He sought to enjoin prosecution for disobe- square danced at the Holton Arms gym. Our Following these experiences, John ulti- dience of a presidential decree. In granting house was strategically located between mately returned to the Morris firm where he the government’s motion to dismiss, John those two buildings. John and Phil Herrick subsequently became a partner. He modestly held, among other things, that plaintiff were both outstanding tennis players. They described his experience there as being ‘‘jack lacked standing. were finalists in a competition sponsored by of all trades, master of none.’’ I remember he In Broderick v. SEC, John was confronted the Junior Board of Commerce. They decided had several zoning cases and defended his with a sex discrimination case. John found not to play it off for the large silver loving Marine friend, Colonel Frank Schwable, who that Broderick herself was a victim of sexual cup but to possess it jointly. I remember per- had been accused by the Commandant of harassment by at least three of her super- fectly how we used to fill the loving cup with misconduct, in that while a prisoner of war, visors. More importantly, plaintiff was ice and then pour whiskey into it. Our fourth the colonel had been coerced into making a forced to work in an environment in which member objected to the assessments for confession regarding germ warfare. John won the managers harassed her and other em- whiskey, which were fairly large. He was an acquittal. The decision was not popular ployees by bestowing preferential treatment overruled. with the Commandant, who expressed his on those who submitted to their sexual ad- Bachelor quarters were discontinued when views extensively. John, with his usual flair vances. The court ordered a substantial re- John got married to Bernice ‘‘Sissy’’ Safford. for describing the impact of the acquittal on covery for Broderick. War came following Pearl Harbor and the other Marines, told about how, in the Rec In Adams v. Bennett, John dealt with a Marines were looking for a few good men and Room of another Marine colonel, there were major nationwide desegregation issue for ap- they found John, who, as the son of a Marine photographs of all the Marine Commandants, proximately seventeen years. He required Colonel, naturally was drawn in that direc- except one. That particular photograph was schools receiving federal funds to show that tion. turned to the wall and on the back of it was their actions were in harmony with require- Years later, Sissy persuaded John, when the official reprimand which the Com- ments promulgated by Congress. In conform- they were vacationing at Squam Lake, to mandant received as a young Marine, when ity with a 1984 Supreme Court decision 3 dictate an account of his career including his he, himself, was found guilty of misconduct. which held that federal courts lack standing Marine service. I have had access to these John was appointed by President Johnson to serve as continuing monitors of the wis- tapes. John was trained as an Aviation Vol- as a Judge of the U.S. District Court in 1968. dom and soundness of executive action, John unteer Specialist, an ‘‘AVS,’’ which he de- I knew from my long association with him dismissed this law suit which he had been ad- scribed as ‘‘silver in the hair, gold in the that he was a deeply religious person. He ministering for many years. The Office for mouth and lead in the ass.’’ He named some never made a show of it. It was a private Civil Rights of the Department of Education of his associates: Francis Godolphin, later matter with him. The New Catholic Cat- agreed to continue to investigate thoroughly Dean at Princeton; Ted Lyons, the White echism, distributed to the faithful about two alleged violations in programs or activities Sox pitcher, and Ernie Nevers, a Stanford years ago, since it was not in existence 27 receiving financial assistance. football star. The class was divided in half, years ago when John became a judge, could Two owners of the Florida Avenue Grill, some going to Tarawa and John’s half going not have been his guiding light. He was cer- the famed ‘‘Soul Food’’ restaurant, were sen- to Kwajalein with the 4th Marine Division. tainly motivated, however, to follow its prin- tenced to six months’ imprisonment and a After the capture of Kwajalein, John’s unit ciples. I quote an excerpt from paragraph fine in connection with fencing activities. was assigned to the seizure of Saipan and 1807, respecting justice: ‘‘Justice toward men The defendants had pleaded guilty to a Tinian, the strategic atoll large enough to disposes one to respect the rights of each and charge of interstate transportation of stolen contain all the navies of the world. John’s to establish in human relationships the har- goods after the police infiltrated an oper- description of these landings and particu- mony that promotes equity with regard to ation which directed burglaries and thefts larly seeing the death and destruction of persons and to the common good. The just against homes and businesses. The police many of his friends is heartrending. The is- man, often mentioned in the Sacred Scrip- confiscated approximately two million dol- lands were held by 40,000 Japanese who tures, is distinguished by habitual right lars worth of property. wouldn’t surrender.2 He recalled how a piece thinking and the uprightness of his conduct While it is true that John was troubled by of shrapnel had struck him in the chest. He toward his neighbor. ‘‘You shall not be par- the concept of mandatory minimum sen- observed, at least they awarded me a Purple tial to the poor or defer to the great, but in tences, like many other federal trial judges Heart. righteousness shall you judge your neigh- he continued trying those cases that were as- Following the capture of these islands, bor.’’ (Citation omitted.) signed to his Court. John’s unit, after getting some ‘‘R&R’’ in In the 27 years that John served on this Before he assumed the responsibilities of a Maui, was assigned to Layte. Incidentally, Court, he never sought publicity or inter- federal judge, John’s interest in community our paths crossed at the Sentani Strip in views. He let the record speak for itself. He affairs is reflected by the following: He was New Guinea, where he had learned that I was did, however, always seek to let justice pre- elected President of the Harvard Club of located. He was on his way up to the vail. Typical of this is the ‘‘Forest Haven’’ Washington in 1949. In 1952 and 1953, he was Tacloban Strip on Leyte. Our ultimate des- case, which he was struggling with at the elected president of the Associated Harvard tination was about five miles from the time of his death. The case concerned the Clubs of America. He was the President of Tacloban Strip but neither he nor I knew the treatment of mentally retarded persons. The Harvard Law School Association of the Dis- other’s whereabouts. His unit was assigned 82 evidence disclosed, and John had found, that trict of Columbia in 1952 and 1953. He was F4V’s, which the Navy had found were unfit the city had failed properly to discharge its Chairman of the Montgomery County, Mary- for carrier duty. The trouble was the Navy responsibilities in the care of these people. land Housing Authority, 1950–1953. He was did not supply maintenance personnel. John, He had appointed a Special Master to oversee Chairman of the Board of Trustees of the as the AVS officer, was briefing these pilots the functioning of his decree. District of Columbia Legal Aid Agency from on the details of their next strike. After the I recall one of his early cases, known as 1967 to 1968. He served as the Judge Advocate briefing, he took a position in his jeep about the ‘‘D.C. Nine,’’ in which four priests, a nun, General 1961–1968 of the Marine Corps Re- 50 feet from the runway. The undercarriage a former nun, two Jesuit seminarians and a serve Officers Association. He was elected on one of these planes gave way and John draft resister broke into the offices of Dow President of the Bar Association of the Dis- was suddenly aware that this F4V was head- Chemical and poured blood over the files of trict of Columbia in 1965 and President of the ed toward his jeep. The propeller severed that company as a protest against the war in Barristers club in 1969. He served as Presi- John’s left arm and he sustained other seri- Vietnam. Though a devout Catholic, John dent of The Lawyers’ Club in 1987. He served ous injury. He was ultimately evacuated to could not condone such action. they were as Chairman of the Judicial Conference com- Biak, where a Harvard Medical School unit tried, convicted and sentenced. mittee which has the responsiblity of review- had been set up. One of the most highly publicized cases ing extrajudicial income reports of federal John tells the story of an elderly nurse that John tried was the corruption case judges, known as the Ethics Committee. who was attending him. He asked her name against the former governor of Maryland, John, in all his activities, demonstrated the S 1070 CONGRESSIONAL RECORD — SENATE February 7, 1996 qualifications of a leader. He was a modest and Angelo Cimini used four-wheel HVAC coils and building and roof man who seldom raised his voice. He didn’t drive police vehicles to transport leaks. have to. He was completely in control of his House and Senate Members to critical We should applaud the outstanding courtroom and of any other activity which he undertook. All of us who knew John were official meetings. efforts these employees made on behalf amazed by his ability to recall with accuracy Officer Richard Rudd voluntarily of all of us during a historic weather names of participants and dates of athletic came to work on his day off knowing event. I thank the Architect for provid- and other events going back sixty or seventy he would be needed. Officer Michael ing me with this information. years. What a mind! Mulcahy used plumbing skills to repair Pax vobiscum. a broken water pipe in the police K–9 f With undying respect, facility. Sgt. Dennis Kitchen, Officer THE BLIZZARD OF 1996 AND THE OLIVER GASCH, Peter Demas, Officer Ellen Howard, Judge, U.S. District Court. U.S. CAPITOL OPERATORS and Capt. Edward Bailor worked ex- FOOTNOTES tended duty hours in the Operations Mr. WARNER. Mr. President, the 1About this time, John also served as a page in the Division to provide coordination with blizzard of 1996 caused untold inconven- U.S. Senate. other congressional and Federal enti- ience and problems to those in the 2‘‘On the southern half of the beaches the 4th Ma- rine Division was having plenty of trouble. The un- ties during the storm. Washington metropolitan area. The fortunate 1st Battalion of the 25th Regiment, pinned Officers Ted Tholen, Kevin Weinkauf, record snowstorm virtually shut down down on an onfiladed beach, observed a Japanese James Whitt and freight handlers this city and surrounding Virginia and counterattack developing from Agingan Point Maryland suburbs. around 0940. It called for help from air and naval Bounteum Sysamout, Barry Pickett, gunfire, and both of them it obtained; the advancing Debora Riddick, Charles Wilson, Chris- The infrastructure which supports Japanese were discouraged by strafing and bombing topher Westmoreland, Richard Morris, the U.S. Senate met the challenge. I attacks and gunfire from TENNESSEE. But the battal- and Thomas Cuthbertson of the Off- thank the Sergeant at Arms for provid- ion continued to lose men by accurate artillery fire delivered from high ground not half a mile inland. Site Delivery Center shoveled parking ing me the facts and the names of these During the afternoon Colonel Merton J. Batchelder, lots and security inspection areas to individuals. The U.S. Capitol telephone the regimental commander, sent a part of the 3rd ensure police operations were not dis- operators who were scheduled to work Battalion to help the 1st take Agingan Point.’’ Ad- during the weekend storm that struck miral Samuel Eliot Horisons’s ‘‘History of United rupted. Mr. Ken Meadows of the vehicle States Naval Operations in World War II,’’ Volume maintenance section worked additional on January 6 knew the forecast. They VIII, p. 198. duty hours to equip police vehicles came to work prepared to stay as long 3See Allen v. Wright, 468 U.S. 737, 754 with chains and respond to motorists as necessary to keep the Capitol f in need of assistance. In addition, offi- switchboard open and covered. Their TRIBUTE TO U.S. CAPITOL POLICE cers assisted countless citizens whose commitment to duty resulted in many remaining overnight in their offices, Mr. WARNER. Mr. President, I wish vehicles became stuck in the snow, re- carrying on with their duties, as others to pay tribute to the personnel of the sponded to dozens of emergency calls could not get here to relieve them. U.S. Capitol Police. During my tenure for police assistance, and continued to Bringing in extra food and clothing, in the Senate, I have witnessed these diligently protect the Capitol and con- they were prepared to work through officers working in all types of adverse gressional office buildings. the weekend. Supervisors of the Cap- weather conditions during all seasons. These are just some examples of the The dedication and commitment these extraordinary effort by the U.S. Cap- itol switchboard came to work a day officers displayed during the ‘‘Blizzard itol Police officers to meet and over- early to make certain they would be on of ’96’’ is commendable and worthy of come the unique challenges posed by duty. recognition. I thank the Sergeant of this severe snow storm. Their actions While these Capitol switchboard op- Arms for bringing these individuals to reflect the highest standards of public erators and supervisors are designated my attention. service. We thank the U.S. Capitol Po- ‘‘emergency personnel,’’ they consider On Saturday, January 6, the Wash- lice for their continued good work. getting to work under extreme weather ington metropolitan area experienced a f conditions as simply doing their job. I would like to commend these super- winter storm of record proportions. TRIBUTE TO AOC EMPLOYEES When the storm was over 2 days later, visors and operators for their exem- record snowfall blanketed the city. Mr. WARNER. Mr. President, on Sat- plary public service and mention them High winds, drifting snow, and severe urday, January 6, the Washington met- by name: windchill temperatures created a criti- ropolitan area experienced a winter Barbara Broce, Martha Brick, Joan cal emergency situation. storm which virtually shut down the Sartori, Joan Cooksey, Mary Quesen- Whle roads throughout the area were city and surrounding areas. The his- berry, Lisa Thompson, and Laura Wil- impassable, the men and women of the toric snowfall, high winds, and cold liams. U.S. Capitol Police were on duty pro- temperatures caused immeasurable dif- Thanks to all of you for your fine ef- viding vital public safety and police ficulties and crisis situations never en- forts and dedication to your jobs serv- services within the Capitol complex. countered before. ing the U.S. Congress and our citizens. Officers who were on duty when the Despite these dangerous conditions, f storm began elected to remain on duty employees of all units under the Archi- for extended periods. Some worked for tect of the Capitol, including the Sen- ate restaurants, preformed their duties CHINESE NUCLEAR EXPORTS TO as long as 32 hours to ensure there were PAKISTAN sufficient personnel to perform law en- to the highest level possible. In many forcement and security operations. instances key personnel remained in Mr. PRESSLER. Mr. President, I Several officers used their own funds the immediate area and at their posts want to bring to the attention of my to stay at local hotels so they could re- throughout the storm. Their commit- colleagues some very disturbing devel- port back to duty on time to relieve ment and hard work resulted in the fol- opments in weapons proliferation in fellow officers. Others, such as Lynne lowing accomplishments: The removal south Asia. Last year may go down in Williams, chose to sleep on the floor of of ice and snow equal to 19 miles from history as one of the worst years for the police station so she would be sidewalks, steps, building entrances, the cause of nuclear nonproliferation. available for immediate recall. and handicapped ramps. Maintenance New evidence released this week mere- Many officers performed services of powerplant operations to ensure de- ly reinforces this grave conclusion. above and beyond the call of duty. Offi- livery of steam to heat the Capitol Hill On February 5 the Washington Times cer Al Jones worked four consecutive complex. Arrangement for continuous reported that, in 1995, Chinese defense shifts, using his own plow-equipped ve- operation and emergency maintenance industrial trading companies exported hicle to clear snow from parking lots, of all mechanical and electrical sys- 5,000 ring magnets to Pakistan. Under allowing for the movement of police tems. The maintenance and monitoring the terms of an international agree- vehicles. of all office communication systems ment with the International Atomic Officers Michael Poillucci, Terrell and climate control systems. Response Energy Agency, the export of ring Brantley, Thomas Howard, Terry Cook, to emergency calls for repair of frozen magnets is strictly controlled because February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1071 of the magnets’ critical use in the pro- —I do not believe the Brown amend- The CIA in 1992 obtained intelligence indi- duction of nuclear weapons. Specifi- ment would have passed. cating China had transferred M–11 missiles cally, ring magnets are used in gas cen- It is unfortunate enough that our Na- to Pakistan, including photographs of mis- trifuges, which are used to extract en- tion would transfer to Pakistan, Unit- sile canisters. But the State Department ed States-made military equipment ruled there was no proof missiles were inside, riched, weapons-grade uranium from thereby avoiding having to invoke tough uranium gas. without any non-proliferation conces- sanctions. Just this morning, Mr. President, the sion. Now we face the real and embar- Instead, the department in 1993 applied Washington Post reported a similar rassing prospect of having weakened much milder sanctions for transferring what story, finding that American intel- United States non-proliferation law for is said was M–11 technology, and then lifted ligence officials believe there is no Pakistan’s benefit at the same time the sanctions after a year. doubt that the transfers occurred. Pakistan was expanding its nuclear According to intelligence sources, the CIA Chapter 10, section 101, of the Arms Ex- weapons capability in violation of recently notified the State Department that United States law. This irony would be China sold 5,000 ring magnets to the A.Q. port Control Act contains very severe Khan Research Laboratory in Kahuta, Paki- penalties that are to be imposed on humorous if the issue wasn’t so serious. stan, last year. both the exporting country and the im- Accordingly, in view of the confirma- Officials did not further identify the origi- porting country for illicit nuclear tions of these transfers, I have written nating firm in China, but one congressional transfers of this type. Specifically, the today to President Clinton urging that source said the magnets were probably pro- law states that no Federal assistance— he enforce the law. Specifically, any duced by the China National Nuclear Co., a economic or military—may be made contemplated transfer of military government-owned firm that makes nuclear- related products. available to either country. In the case equipment to Pakistan, as called for in the Brown amendment, should cease CIA spokesman Mark Mansfield declined to of the receiving country, Pakistan, this comment when asked about the Chinese would mean the suspension of eco- immediately. Further, sanctions called transfer of nuclear technology. Spokesmen nomic and military assistance, includ- for under the law also should be applied for the Chinese and Pakistani embassies ing military training or the transfer of to Chinese exporting companies. could not be reached for comment. defense articles. In the case of the de- Finally, Mr. President, it may be According to congressional sources, State livering country, the People’s Republic worth exploring if officials within the Department officials believe China’s export of ring magnets violates the Arms Export of China, the operations of the United Clinton administration knew of this blatant violation of U.S. nonprolifera- Control Act. Under an amendment to that States Export-Import Bank would be law, the 1994 Nuclear Proliferation Preven- blocked. tion law while the administration was lobbying to pass the Brown amend- tion Act, the president is required to impose These shocking revelations raise sanctions on any country that ‘‘transfers to three fundamental issues: ment. And if they did, in fact, know it a non-nuclear weapon state any design infor- First, numerous officials in the Gov- would be important to determine if mation or component’’ used in building nu- ernment of Pakistan have been quoted, they informed Members of Congress of clear arms. as recently as 1995, that it was no this development. I intend to raise this Gas centrifuges are used to extract en- longer enriching uranium for nuclear matter with the chairman of the Intel- riched uranium from uranium gas. Intel- ligence Committee in the very near fu- ligence officials believe the magnets sent to weapons production. In other words, Pakistan will be used in special suspension Pakistan claimed it had frozen its ture. Mr. President, I ask unanimous con- bearings at the top of a spinning chamber in bomb program. We could never verify the centrifuges. those statements, but that was what sent that articles in the Washington ‘‘This is another example of the ruthless we were led to believe. We now know Times of February 5 and the Washing- way the Chinese are violating every non- differently. ton Post of February 7 as well as my proliferation pledge they’ve made to us,’’ Second, the People’s Republic of letter to the President of this date be said William C. Triplett, former chief coun- China has made a series of pledges to printed in the RECORD. sel of the Senate Foreign Relations Commit- tee. the United States with regards to the There being no objection, the articles were ordered to be printed in the On Wednesday, Sens. Larry Pressler of proliferation of weapons of mass de- South Dakota, Alfonse M. D’Amato of New RECORD, as follows: struction. Again, we now know dif- York, Connie Mack of Florida and Arlen ferently. [From the Washington Times, Feb. 5, 1996] Specter of Pennsylvania wrote to President Finally, during most of 1995—when CHINA NUCLEAR TRANSFER EXPOSED Clinton about Iran’s test-firing a Chinese C– the transfer of nuclear technology from HILL EXPECTED TO URGE SANCTIONS 802 advanced anti-ship cruise missile. the People’s Republic of China to Paki- (By Bill Gertz) ‘‘Clearly, Adm. Redd’s acknowledgment of stan was taking place—representatives The CIA has uncovered new evidence China the C–802 test-firing would appear to be an has violated U.S. antiproliferation laws by official recognition of an illegal transfer to of the Government of Pakistan and the Iran to advanced conventional weapons by Clinton administration were actively exporting nuclear weapons technology to Pakistan. Chinese defenses industrial trading compa- lobbying the Congress to weaken Unit- Evidence that China has transferred ring nies,’’ Mr. Pressler said in a statement. ed States non-proliferation law to magnets—used in gas centrifuges that enrich ‘‘This is a vital national security matter and allow for a one time transfer of mili- uranium for weapons—is likely to intensify demands immediate attention.’’ tary equipment valued in excess of $370 congressional pressure on the Clinton admin- In their letter, the four senators asked the million, as well as the resumption of istration to impose sanctions as required by president either to ‘‘enforce the sanctions law. pursuant to federal law or to seek a waiver.’’ nonmilitary aid. As we all know, last Under an amendment to the fiscal 1993 de- year the Senate passed the so-called Last week, several senators asked the president in a letter if China’s sale of ad- fense authorization law, the president is re- Brown amendment, which authorized vanced cruise missiles to Iran, disclosed quired to impose sanctions on any nation the transfer of this military equipment Tuesday by Vice Adm. Scott Redd, com- that transfers advanced conventional weap- to Pakistan. It also repealed portions mander of U.S. naval forces in the Persian ons to either Iran or Iraq. The measure was of the so-called Pressler amendment, a Gulf, also violates counterproliferation laws. sponsored by Sen. John McCain, Arizona Re- law which prohibited any United State Department officials are expected to publican, and Sen. Al Gore, Tennessee Demo- States assistance to the Government of confront Chinese Vice Foreign Minister Li crat and now vice president. Mr. McCain, in a separate letter to Under- Pakistan because of its possession of Zhaoxing, who arrives in Washington today, over the nuclear technology and other weap- secretary of State Lynn Davis, the depart- nuclear explosive devices. ons-proliferation exports. ment’s top arms-control policy-maker, asked This last point—the passage of the The administration in the past has sought whether the Chinese cruise missile transfer Brown amendment—is particularly dis- to minimize Chinese nuclear and missile-pro- to Iran violates federal law and contributes turbing. I opposed the Brown amend- liferation activities. But senior State De- to Iran’s efforts to acquire destabilizing ad- ment. I opposed it in part because it partment officials are said to be very worried vanced conventional arms. called for the transfer of military that China’s proliferation activities can no In the House, Rep. Nancy Pelosi, California equipment without obtaining one sin- longer be ignored without undermining the Democrat and a member of the House Intel- ligence Committee, asked the committee gle concession from Pakistan on the credibility of U.S. efforts to halt the spread of nuclear arms technology and missiles. last week to hold hearings on China’s pro- issue of nuclear proliferation. Frankly, ‘‘The Chinese are their own worst enemy,’’ liferation activities. if Members of Congress were aware of a White House official said when asked about It also was a key topic when several mem- the ring sale—this violation of U.S. law the new proliferation activities by Beijing. bers of the House International Relations S 1072 CONGRESSIONAL RECORD — SENATE February 7, 1996 Committee met last week with Peter U.S. officials said that the number of mis- background that the People’s Republic of Tarnoff, undersecretary of state for political siles sold by China may not be large enough China (PRC) has violated U.S. non-prolifera- affairs. to force the drastic cutoff of development tion laws by exporting nuclear weapons tech- The disclosures about export of missile and bank assistance, technical assistance, mili- nology to Pakistan. According to today’s nuclear weapons components come at a time tary exchanges and sensitive exports man- Washington Post, our intelligence officials of increased tensions between Washington dated by the law. But four senators recently believe ‘‘there is no doubt’’ that an illicit and Beijing. wrote to Clinton to say that either sanctions transfer has taken place. The State Department announced last or a waiver are required in this case. Specifically, the Washington Times first week that it has granted a visa to Taiwan’s In yet another sign of increasingly rocky reported on February 5 that, in 1995, Chinese vice president, Li Yuan Zu. China protested U.S. relations with China, some administra- defense industrial trading companies sold the action and has been threatening to use tion officials have raised the prospect of im- 5,000 ring magnets to the Abdul Qadeer Khan force to recapture Taiwan, which it regards posing tariffs later this year on billions of Research Laboratory in Kahuta, Pakistan. as a renegade province, not an independent dollars in trade to protest China’s refusal to Under an international agreement sponsored country. halt illicit copying of U.S. trademark goods. by the International Atomic Energy Agency, Washington is also trying to persuade Other Chinese activities that have severely the export of ring magnets is severely re- China to adopt a less threatening posture to- eroded support in Congress for a waiver of stricted because of their critical use in nu- ward Taiwan. Beijing views the island as a sanctions: clear weapons production. The expulsion last week of three Chinese renegade province, but Taiwan receives U.S. arms and is supported by many U.S. law- This reported sale of nuclear technology nationals from Ukraine for trying to obtain raises two key concerns many in Congress secret technology on SS–18 ICBM boosters makers because of its considerable prosper- ity and political openness relative to China. have held for some time: Contrary to the from a missile-production facility in ‘‘There’s a recognition that this is going to most solemn declaration of the Government Dnipropetrovsk. be a very difficult year in U.S.-China rela- of Pakistan, Pakistan is attempting to ex- Ongoing copyright violations involving tions,’’ a senior State Department official pand its supply of weapons-grade enriched U.S. goods. said. He explained that with China in the uranium, and Chinese companies are ac- Continued nuclear weapons testing. midst of a difficult transition to new politi- tively fueling and profiting from a dangerous Dispatching missile technicians to Paki- cal leadership, and ‘‘our own domestic envi- nuclear arms race in South Asia. stan in 1994, indicating the transfer of M–11 ronment’’ affected by an upcoming presi- Chapter 10 of the Arms Export Control Act technology was still under way at a time dential election, the two nations may find contains a set of specific prohibitions gov- when China was denying such activities. themselves being pulled toward opposing po- erning illicit nuclear transfers. If the Presi- sitions on matters they previously dent determines that a country has delivered [From the Washington Post, Feb. 7, 1996] sidestepped or settled through compromise. or received ‘‘nuclear enrichment equipment, CHINA AIDS PAKISTAN NUCLEAR PROGRAM Washington has long had concerns about materials or technology,’’ no funds may be PARTS SHIPMENT REPORTED BY CIA COULD Chinese military assistance to Pakistan, made available to that country under the JEOPARDIZE U.S. TRADE DEALS which Beijing regards as an erstwhile politi- Foreign Assistance Act of 1961. This would (By R. Jeffrey Smith) cal ally and military counter-weight to include all civilian and military equipment, India. U.S. intelligence officials have long al- including that provided by the Brown U.S. intelligence officials have concluded leged that Pakistan’s nuclear arsenal is that China sold sensitive nuclear weapons- Amendment to the Fiscal Year 1996 Foreign largely derived from design information sup- Operations Appropriations Act. The prohibi- related equipment to Pakistan last year, an plied by China, a charge that Beijing denies. act that could lead the Clinton administra- tions also extend to military education and U.S. intelligence reports have also pin- training. tion to halt U.S. government financing for pointed the apparent location in Pakistan of nearly $10 billion worth of American busi- I ask that you make the determination crated, Chinese-made, medium-range mis- called for by Chapter 10. Unquestionably, ness deals in China. siles, which if confirmed would force a cutoff this sale of nuclear technology represents a President Clinton’s advisers are studying of billions of dollars worth of U.S.-China serious violation of federal law, as well as the intelligence report to determine how trade. But the administration has decided international nuclear non-proliferation they should respond, according to several of- that no sanctions need be invoked until the agreements. ficials. Legislation approved by Congress in missiles are sighted outside their crates. 1994 requires that he either approve the sanc- The latest Chinese nuclear-related transfer No issue is more important to the security tions, which would block loan guarantees by to Pakistan was recently detected by the of all people than nuclear non-proliferation. the U.S. Export-Import Bank, or formally CIA and first reported publicly in Monday’s For that reason, I urge your Administration waive the penalties, once such an intel- editions of the Washington Times. It in- to take immediate and certain action to en- ligence report is received. volves a shipment of 5,000 specialized force the law with respect to this sale of nu- In a previous arms transfer case, involving magnets to the Abdul Qadeer Khan Research clear technology and freeze all assistance, ci- the alleged sale of Chinese missiles to Paki- Laboratory in Kahuta, named for the father vilian or military, to Pakistan. The sanc- stan, the State Department ducked imposing of the Pakistani nuclear bomb program. tions called for under the law should be ap- sanctions by concluding that the evidence According to two knowledgeable officials, plied to Chinese exporting companies. was not strong enough. A senior official com- the magnets are clearly meant to be in- Sincerely, menting yesterday at the State Department stalled in high-speed centrifuges at the plant LARRY PRESSLER, about the new report of nuclear aid to Paki- that enrich uranium for nuclear weapons. U.S. Senator. stan, said that ‘‘as of now’’ the United States Several congressional sources said that the f has not determined that China has ‘‘done shipment thus triggers provisions of the 1994 Nuclear Proliferation Prevention Act, which anything that would trigger sanctions under TRIBUTE TO RICHARD G. ‘‘DICK’’ forces ‘‘a cutoff of Export-Import Bank as- U.S. legislation.’’ FIFIELD But several other U.S. officials privy to the sistance’’ involving trade with China. Among the large U.S. companies that Mr. HEFLIN. Mr. President, the agri- new intelligence report said there is no would be affected by a loan guarantee cutoff cultural community in Alabama and doubt about its conclusions, a circumstance are Boeing Co., AT&T, and Westinghouse throughout the Southeast have not had that could put the administration in a bind Electric Corp. because it prefers to avoid damaging exten- a more forceful and competent rep- ‘‘We do have genuine concerns about any resentative than Richard G. ‘‘Dick’’ sive U.S. trade ties with China. possible nuclear-related transfers between The aim of the sanctions would be to pun- China and Pakistan and we have raised these Fifield. For 20 years, this loyal friend ish China for assisting Partisan’s production concerns . . . at very senior levels,’’ the sen- to has done an outstanding job of di- of highly enriched uranium, a key ingredient ior official said at the State Department. recting the Washington legislative op- of nuclear weapons. But U.S. officials say the ‘‘We will do whatever is required under erations of the Alabama Farmers Fed- nuclear transfer is only one of several recent U.S. law, but . . . we have to have a very eration—widely known as ALFA—as actions by China that may wind up disrupt- high degree of confidence in our evidence,’’ the organization’s official liaison to ing its commercial and diplomatic relations the official added. ‘‘As of now we have not with the United States. determined that China . . . has done any- Congress. Dick will be retiring from his China’s export to Iran late last year of thing that would trigger sanctions under position as ALFA’s Director of Na- anti-ship cruise missiles—confirmed last U.S. legislation. But this is obviously under tional Affairs and Research on March 1, week by a senior U.S. Navy official—may continual review.’’ 1996, and will be sorely missed by all of also qualify as a sanctionable offense, ac- us who have been fortunate enough to cording to some U.S. officials and law- U.S. SENATE, know him and work with him over the makers. Another U.S. law requires broad Washington, DC, February 7, 1996. years. economic penalties against any nation that The PRESIDENT, As a long-time member of the Sen- gives ‘‘destabilizing numbers and types of ad- The White House, vanced conventional weapons’’ to Iran, Washington, DC. ate’s Agriculture Committee, I have which Washington has branded a terrorist DEAR MR. PRESIDENT: The United States had the pleasure of working with Dick nation. Intelligence Community is confirming on Fifield on a great number of issues that February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1073 are important to American farmers, es- Force, he helped form a State-wide en- Montgomery Advertiser in 1871, took pecially those in the South. The major dangered species task force for Ala- the initiative and invited newspaper legislation on which we have worked bama. executives from around the State to includes the peanut program; the Food Dick received his bachelor of science help build new communication links and Agriculture Act of 1981; the Food degree in biology and geology from Be- among themselves. On March 17 of that Security Act of 1985; and the Food, Ag- loit College in 1951. He continued his year, eight editors and publishers met riculture, Conservation and Trade Act education at the University of Hawaii, in Screws’ office and made plans to or- of 1990. The peanut, cotton, soybean, the Wisconsin Institute of Technology, ganize the press of Alabama. News- dairy, cattle, hog, poultry, and catfish and the University of Wisconsin, re- papers represented in that first meet- programs have his fingerprints all over ceiving his master’s degree in 1972 from ing were the Montgomery Advertiser, them. In each case, Dick’s counsel, in- the University of Illinois. the Montgomery Mail, the Evergreen sight, ingenuity, and strong leadership Over the course of his career, he Observer, the Troy Messenger, the have contributed not only to their pas- served as an instructor of geology at Union Springs Times and Herald, the sage and enactment into law, but to the Wisconsin Institute of Technology; Montgomery State Journal, the their overall success during their im- as an exploration geologist with the Talladega Sun, and the Opelika Loco- plementation phase. New Jersey Zinc Co.; and as a rep- motive. He has indeed been my mentor and resentative of the college textbook di- In 1872, at the first convention, 30 teacher. Practically all of my knowl- vision in sales and as a field editor in editors and publishers from every cor- edge about American agriculture has science with the Houghton Mifflin ner of the State came together to form come from him. There is no one more Company. Also, he served in the U.S. a new association of newspapermen knowledgeable. Doctoral degrees are Army in the counter-intelligence corps called the Editors and Publishers Asso- usually given to those in academic cir- as an investigative special agent. Be- ciation of the State of Alabama. Since cles because of their knowledge about a fore accepting his position with ALFA, those early days, this association has particular subject. I gave Dick the he was assistant horticulturist with played an important role in developing name ‘‘Dr. Fifield’’ because I felt he the University of Illinois. the daily and weekly newspapers of was superior to most PhD’s. Not only Dick Fifield’s retirement will leave a Alabama and in helping to lead the will I miss him as a mentor and teach- void for American agriculture. He is as State’s economic and cultural develop- knowledgeable as anyone I know of as er, but also as a dear friend. ment. The APA has also worked on be- As ALFA’s Washington director, he to the complexity of the integral parts half of the citizenry of Alabama by ad- also works extensively with the U.S. of food and fiber production in this vocating stronger citizen access to gov- Department of Agriculture; the U.S. country and their effects on every ernment records and meetings. Trade Representative; the Department phase of the American economy. His On February 24 and 25 of this year, of the Interior; the Environmental Pro- goal has been to improve the quality of editors and publishers from Alabama’s tection Agency; the Army Corps of En- life for rural America while at the daily and weekly newspapers will gath- gineers; the Statistical Reporting Serv- same time providing consumers with a er for the 125th successive year. The stable, safe, and cost-effective farm site of this anniversary celebration is ice; the Farmers Home Administration; programs. I hope he doesn’t stray too in Montgomery, the same city in which the Soil Conservation Service; as well far, for we will continue to rely on his the organization was founded. During as other agencies which handle agricul- counsel even after he retires. this convention, they will hear histo- tural programs and projects. It is no I commend Dick for all his outstand- rians discuss the role of newspapers in surprise that his friendly face is known ing and unwavering service to the agri- Alabama’s history while also consider- far and wide within the various corners cultural community, and wish him and ing the future role of newspapers in the of the Federal Government. his wonderful wife, Shirley, all the best He has been an effective representa- Nation’s rapidly changing communica- as they retire and enter a new phase of tions industry. tive of farm interests due not only to their lives. I know he will enjoy having The 1996 APA is led by its president, his God-given talents, but also because more quality time with his family and R. Douglas Pearson, editor and pub- of his extensive experience as a college many, many friends. Both ALFA and lisher of the Daily Mountain Eagle in professor, a geologist, a science editor, the Alabama Congressional delegation Jasper. The first vice president is Mi- and a horticulturist. Examples of his will sorely miss his strong and prin- chael R. Kelley, editor and publisher of influence on Alabama agriculture are cipled advocacy for agriculture in our the Clanton Advertiser, and the second numerous and varied. For instance, the State. vice president is John W. Stevenson, State’s modern farmers market, lo- f editor and publisher of the Randolph cated in Montgomery, was made pos- Leader. APA’s executive director is sible by his submission of the original ALABAMA PRESS ASSOCIATION William B. Keller. design and his work on legislation and REACHES MILESTONE For 125 years, the APA has thrived grants to raise the $5 million needed to Mr. HEFLIN. Mr. President, the first under its first amendment rights. built the facility. He started annual 10 amendments to the U.S. Constitu- Taken as a whole, freedom of the press farmers market days in Montgomery, tion were ratified on December 15, 1791, in the United States rests upon rel- Huntsville, and Birmingham, establish- forming what we refer to as the Bill of atively firm constitutional footing. ing a producer-farmer market inside Rights. The first amendment covers The media’s general right to publish Birmingham’s Eastwood Mall. what we have come to consider the material, regardless of potential im- Dick initiated the ALFA’s monthly most primary and essential element of pacts on government operations or Food Price Survey and he remains the our freedom as Americans: ‘‘Congress other features of national life, has been project’s director. The food basket re- shall make no law * * * abridging the accepted. Winston Churchill eloquently port is regarded by the business com- freedom of speech, or of the press.’’ stated the importance of a free press in munity and the media as one of the Thomas Jefferson once wrote that if his own country during the midst of State’s best economic indicators. it were left up to him to decide be- World War II when he said, ‘‘A free He represented the peanut industry tween a government without news- press is the unsleeping guardian of in efforts to protect Section 22 of the papers or newspapers without a govern- every other right that free men prize; GATT negotiations. He is a member of ment, he would not hesitate to choose it is the most dangerous foe of tyr- the Technical Advisory Committee of the latter. This year, we celebrate the anny.’’ I salute the APA on reaching the National Peanut Growers Group; 125th anniversary of the Alabama Press this distinguished milestone. Assistant Director of the Farm Crisis Association [APA]. Founded in 1871, f and Transition Committee for Ala- the APA is the oldest statewide trade bama; and has served on the Governor’s association in Alabama and one of the DEE SCHELLING MEMORIAL Agriculture Policy Advisory Commit- oldest State newspaper associations in Mr. BINGAMAN. Mr. President, I tee and the Energy Advisory Commit- the Nation. would like to take a moment to recog- tee. Along with the Birmingham Cham- According to APA information, Wil- nize a New Mexican who made a nota- ber of Commerce Environmental Task liam Wallace Screws, the editor of the ble contribution to my State—to its S 1074 CONGRESSIONAL RECORD — SENATE February 7, 1996 communications and to its participa- than 70 daily newspapers. The press is tive by the Immigration and Natu- tion in public policy. privately owned, offering Hong Kong ralization Service to reduce illegal im- Daralee ‘‘Dee’’ Schelling passed away citizens access to a broad range of po- migration by cracking down on fraudu- this week at the age of 57. She will be litical and social views. But journalists lent asylum claims. One year ago, INS greatly missed. in and out of Hong Kong cite the Commissioner Doris Meissner put new Dee was the executive director of the present administration’s sluggish pace regulations into effect which have New Mexico Broadcasters Association in revising anachronistic press laws as more than doubled the number of asy- for 14 years and she was well-known one of their key sources of fear for the lum officers, increased the number of among State legislators for her partici- press after 1997. immigration judges and streamlined pation in legislative issues regarding Current Hong Kong laws which re- the asylum application process. broadcast interests. strict press freedom are rarely applied The results have been dramatic. In 1 In addition, she handled media rela- by the government, but an authoritar- year, there has been a 57 percent reduc- tions for New Mexico First, an organi- ian regime could easily use them to tion in new asylum applications. Clear- zation that Senator DOMENICI and I prohibit the expression of any objec- ly, there has been a reduction in the formed in 1986 to encourage citizens to tionable ideas. These laws—which are filing of fraudulent claims. In addition, take an active role in studying the inconsistent with Hong Kong’s own Bill 84 percent of new asylum claims are long-range issues facing our State. Dee of Rights—include the Emergency Reg- now heard by INS within 60 days. This was with us from the beginning. ulations Ordinance, which gives the initiative is a major success story in She was born in Colorado, but came Governor broad powers of censorship the Clinton administration’s ongoing to New Mexico in the mid-1960’s to during loosely defined ‘‘emergencies’’; effort to combat illegal immigration. work in advertising. She became the the Crimes Ordinance, which defines In coming weeks, the Senate Judici- first female ad agency president in our any publication or speech ‘‘intending’’ ary Committee will recommend com- State and handled many major ac- to foster hatred of the government as prehensive immigration reforms. A counts including various movie pro- seditious; and the Official Secrets Act, large part of these reforms focus on the which makes unauthorized publication motions and the Double-Eagle II trans- need to reduce illegal immigration, in- of information illegal. Some of the Atlantic balloon crossing—an event cluding steps to deal with abuse of the democratically elected members of the which is a source of pride to New Mexi- right of asylum. Legislative Council, along with inde- cans and is commemorated at the As the INS has shown, asylum abuse pendent journalists groups such as the Smithsonian Air and Space Museum. can be remedied—without denying true Hong Kong Journalists Association, Dee’s many public service accom- refugees the right to apply for asylum. have repeatedly urged the government plishments included service on numer- They deserve adequate time to learn to repeal or amend these laws. These ous Greater Albuquerque Chamber of how to apply for asylum, overcome same reformers have also urged the Commerce, Ski New Mexico, and their fear of authority, and obtain help Hong Kong Governor’s office to enact Project I committees. with their applications. We must avoid legislation which would provide greater She will be remembered fondly by unfair restrictions that result in real access to information, similar to the many. harm to true refugees. United States Freedom of Information I ask unanimous consent that recent f Act. But the current administration articles on the major progress against PRESS FREEDOM IN HONG KONG continues to move slowly, to the point asylum abuse be printed in the RECORD. Mr. PELL. Mr. President, I rise today of delay. There is no reason to believe There being no objection, the articles to speak out on behalf of freedom of that the successor Chinese administra- were ordered to be printed in the tion will be any more willing to under- the press in Hong Kong. As we ap- RECORD, as follows: proach Hong Kong’s July 1, 1997 trans- take these reforms; it is likely to op- pose them outright. The time to make [From the Washington Post, Jan. 15, 1996] fer to control under the People’s Re- SOME PROGRESS AT INS public of China, there is great fear that these changes is now. Above all, the government should refrain from intro- A year ago, the Immigration and Natu- one of the fundamental tenets of a free ducing any new laws which in any way ralization Service put into effect new regula- society—freedom of the press—will not tions to control abuse of the political asylum restrict the press’ right to function survive the transition. China’s track program. Commissioner Doris Meissner re- independently. A recent call by pro- record on press freedom leaves much to cently released figures that indicate Beijing Legislator Law Cheung-kwok be desired; the current Hong Kong Gov- progress. The problem has been this: Al- for hearings to consider regulating though immigration law authorizes sanc- ernment should be actively working to newspaper prices, a move that appears tuary to be given to people in fear of politi- shore up legal support for the press be- to be aimed specifically at controlling cal persecution at home, too many undocu- fore it hands over control to Beijing. the Oriental Daily News, is exactly mented immigrants had figured out that The grand experiment of democracy what the Hong Kong government they could indefinitely postpone deportation in the United States would have surely merely by requesting asylum. They would be should not be doing. automatically given work permits, and, be- failed were it not for a free press. Our Joseph Pulitzer argued that ‘‘public- founders realized that its importance cause of the backlog of cases awaiting adju- ity may not be the only thing that is dication, they could often disappear into the was not only for general education, but needed, but it is the one thing without also for exposing the dangers of would- general population without much chance of which all other agencies will fail.’’ being found. In 1994, 123,000 new applications be oppressive officials and prodding There is no point of having a freely were filed (up from 56,000 three years ear- leaders into more ethical behavior. Our elected democratic government if there lier), and the backlog exceeded 425,000. Nation’s history has proven that the is no way to freely report on its actions In response, the INS decided to issue work scrutiny of public light forces public and to expose its abuses. A free press is permits only to those granted asylum or officials both to serve the interests of the only guarantor of the people’s right waiting more than 180 days for an adjudica- tion. Within a year, applications dropped by the public and to serve honestly far to know what their government does better than they would without that 57 percent to 53,000. Then Congress approved and the best guarantor of their right to a request for more asylum officers and scrutiny. Benjamin Franklin once said offer alternative views. Hong Kong’s judges, and the new positions—which are that ‘‘whoever would overthrow the press must remain free and unre- still being filled—have enabled INS to com- liberty of a nation must begin by sub- stricted if the colony’s current rights plete more than twice as many cases as it duing the freeness of speech.’’ It is pre- are to be maintained. The colonial gov- did last year. Finally, most individual cisely this fear—that the PRC will at- ernment has the immediate respon- claims for asylum are heard within 60 days tempt to overthrow Hong Kong’s cur- sibility of ensuring that it does. instead of waiting months, or even years, as was the case before. While the backlog re- rent way of life by stifling its press, f with the quiet acquiescence of the cur- mains almost unchanged, the figure is decep- tive, inflated by a sizable number of peti- rent authorities—that I wish to address PROGRESS AGAINST FRAUD IN POLITICAL ASYLUM tions filed pursuant to court order by certain today. Salvadorans and Nicaraguans. Hong Kong boasts of one of the freest Mr. KENNEDY. Mr. President, this is Although some challenge has been made to media systems in all of Asia, with more the first anniversary of a major initia- the claims of progress made by the INS, it is February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1075 certain that considerable distance has been granted asylum or are not promptly adju- perts, periodicals, journals, books, photo- covered in improving procedures. And this dicated, the Administration has signifi- graphs, official documents, other personal kind of effective enforcement is, paradox- cantly reduced the potential for baseless statements, or evidence regarding incidents ically, the best way to deal with the anti-im- claims. At the same time, INS has stream- that have occurred to others.’’ migration political climate. Legal immi- lined the entire asylum system. And we will The law students who help prepare these grants and those who have valid claims for continue to make dramatic progress in re- applications under my supervision in an asy- asylum will be the beneficiaries of policies solving this long-standing problem,’’ Com- lum law clinic at Georgetown University that make the law work as it is meant to— missioner Meissner added. Law Center spend at lest a month of nearly and should—work. [From the Washington Post, Nov. 12, 1995] full-time work putting together just one ap- plication for a client. Obtaining supporting U.S. DEPARTMENT OF JUSTICE, IMMI- DON’T GUT POLITICAL ASYLUM affidavits or even such elementary docu- GRATION AND NATURALIZATION (By Philip G. Schrag) mentation as birth and death records typi- SERVICE, For many years, the United States has cally includes, among other things, making Washington, DC, January 4, 1996. granted political asylum to victims of perse- repeated telephone calls to people in the INS SUCCESSFULLY REFORMS U.S. ASYLUM cution who come to our country and seek our country from which the applicant has fled SYSTEM protection. Now, however, Congress is on the (sometimes with interpreters on the line) WASHINGTON. DC.—A Clinton Administra- verge of abolishing the right of political asy- and exchanging numerous faxes with wit- tion initiative to reform the U.S. asylum lum. nesses and officials there. These communica- system has achieved dramatic success in its Congress is not proposing to repeal the tions are expensive as well as time-consum- first year, INS Commissioner Doris Meissner asylum provisions of the Refugee Act of 1980. ing. announced today. An outright repeal would probably never On the first anniversary of the initiative, pass, because many in Congress, recalling Similarly, obtaining accounts of arbitrary Commissioner Meissner said that the unprec- America’s sorry treatment of refugees during imprisonment, torture, rape and other edented reforms have substantially lowered the Holocaust, accept the humanitarian human rights violations from local * * * the incidence of fraudulent claims by elimi- premises underlying asylum. Rather, the many weeks of investigative effort. Finding nating the virtually automatic issuance of abolition is in the form of a new, apparently experts who know about human rights viola- work authorization documents to all asylum innocuous ‘‘procedural’’ requirement. The tions against the applicant’s tribe or ethnic applicants. ‘‘INS has removed the primary House Judiciary Committee recently adopt- group is also an arduous and lengthy process. incentive for baseless asylum claims,’’ she ed, as an amendment to this year’s immigra- The attachments to support an application said, ‘‘resulting in the fair and prompt adju- tion reform act, a proviso that denies asylum can include several hundreds of pages of evi- dication of newly filed cases for the very to any person who applies for it more than 30 dence, and the file can be several inches first time. With this attack on fraud, we days after arriving in the United States. A thick. It is not reasonable to expect a refu- have closed a back door to illegal immigra- Senate subcommittee has approved a similar gee to develop such a file within 30 days after tion.’’ proposal. arriving in the United States, with or with- Over the past year, the Administration’s If this bill becomes law, the asylum proc- out the help of a lawyer. ess will shut down because, as a practical landmark reforms have reduced the number A few years ago, the asylum program was matter, it is impossible for an applicant to of new asylum claims filed with the INS by abused by large numbers of applicants who file that quickly. Most refugees fleeing per- 57 percent. In addition, these initiatives en- were not genuinely eligible for it, but the secution must give top priority to searching abled INS asylum officers to double their federal government closed this loophole by for their American relatives and acquaint- productivity, completing 126,000 cases during ceasing to issue work permits for people ances. In many cases, they do not speak Eng- 1995 compared with 61,000 in 1994. INS’ new whose applications have not yet been ap- lish. They are not permitted to hold jobs in regulations to improve productivity and pre- proved. In July, Commissioner of Immigra- the United States. They must immediately vent misuse became effective on January 4, tion Doris Meissner reported that ‘‘after find ways to feed themselves and their chil- 1995. years in which fraudulent asylum claims Commissioner Meissner said, ‘‘The U.S. dren. It takes weeks for them to find mini- were routinely filed as a backdoor way to asylum system was broken for many years, mal housing and to achieve the most basic enter the U.S., INS finally has * * * stopped but today our asylum system is fair and effi- orientation to American culture. Months the abuse.’’ cient. The 57 percent reduction in new asy- may pass before they even learn that if they lum cases is evidence that the INS has elimi- want asylum, they have to file an applica- Congress should preserve the asylum pro- nated incentives for asylum abuse. At the tion with the Immigration and Naturaliza- gram. At the very least, Congress should not same time, we have greatly improved the tion Service (INS) on Form I–589. abolish asylum by invisibly and irrespon- system’s ability to quickly provide protec- After refugees learn about asylum and ob- sibly imposing a procedural requirement tion to those who deserve it.’’ tain the form, they will discover the that is impossible to satisfy. Fewer than one In response to a mandate from President daunting task ahead of them. The form itself percent of the 900,000 people who immigrate Clinton in July 1993 to overhaul the ineffi- is quite complicated: seven pages, plus eight into the United States each year are asylees. cient and long-neglected U.S. asylum sys- pages of fine-print instructions. It is only This small immigration program poses no se- tem, INS established asylum reform as a top available in English and must be completed rious problems and is worth keeping. When priority. New regulations which took effect in English. It requires applicants to prove we give sanctuary to victims of oppression one year ago today eliminated easy access to that they have a well-founded fear, should we demonstrate to everyone the most hu- work authorization and streamlined the they be deported, that they will be ‘‘per- manitarian impulses of the American spirit. process. secuted’’ because of their ‘‘race, religion, na- Applicants for the first time are required tionality, political opinion or membership in f to personally appear at an asylum office to a particular social group’’—all legal terms of receive notification of the asylum decision. art that have been interpreted by many At that time, the applicant is granted asy- courts. Because the legal standard has been CONGRESSMAN FLOYD SPENCE lum or is served with charging documents embellished by judicial decisions and be- NAMED THE RESERVE OFFICERS which formally begin deportation proceed- cause a lawyer can help * * * case effec- ASSOCIATION OF THE UNITED ings. tively, an applicant is well advised to have STATES 1996 MINUTEMAN OF THE The Administration also sought the re- an attorney help compile and organize the YEAR sources necessary to improve and update the supporting documentation. Mistakes can lit- system and secured them through the 1994 erally be fatal, resulting in deportation into Mr. THURMOND. Mr. President, on Crime Bill. In addition to more than dou- the hands of a persecutor. January 24, 1996, my able colleague bling the authorized number of INS asylum At present, most asylum applicants need from South Carolina, FLOYD SPENCE, officers from 150 to 325, the Crime Bill sig- weeks or months to find a lawyer, especially nificantly increased the number of Immigra- if they need one who will handle the applica- the chairman of the House National Se- tion Judges from 112 to 179. tion free of charge. Even now, only a few curity Committee, received the 1996 Additional indications of the success of neighborhood offices that offer free legal Minuteman of the Year Award from the asylum reform include: help to the poor handle asylum cases, and Reserve Officers Association of the Currently 84 percent of individual claims Congress is slashing the budget of the Legal United States. He is most deserving of for asylum are heard by the INS within 60 Services program. this high honor. Throughout the 25 days. Once the applicant finds a willing lawyer, years that FLOYD SPENCE has served in In 1995, the issuance of charging documents however, more inevitable delays are in store. the House of Representatives, he has doubled (from 29,000 in 1994 to 65,000 in 1995), The instructions for the application form placing twice as many applicants directly in ‘‘strongly urge’’ applicants to ‘‘attach addi- been a strong advocate for ensuring deportation proceedings. tional written statements and documents that our Nation’s defense capabilities ‘‘By limiting the availability of work au- that support’’ their claims, including ‘‘news- are second to none, and he has dem- thorization to only those applicants who are paper articles, affidavits of witnesses or ex- onstrated great leadership ability as S 1076 CONGRESSIONAL RECORD — SENATE February 7, 1996 the chairman of the House National Se- fense’s name to the Department of Offense. of the ‘‘Reserve Forces Revitalization Act of curity Committee in the 104th Con- When people quote scripture to me, it is 1995,’’ Greg has introduced legislation that, gress. FLOYD SPENCE is a man of char- often from Isaiah and references the beating if passed in its present form, will result in acter and integrity, and it is a privi- of swords into plowshares. My immediate re- many substantive changes in the way that sponse is to quote Joel 3:9—‘‘wake up mighty the Reserve components are organized and lege to work with him. He is truly dedi- men and beat plowshares into swords and administered. cated to the freedoms that we as Amer- pruning hooks into spears.’’ As a retired Naval Reservist, I am acutely icans hold so dear. Article 1, Section 8, of the Constitution aware of the challenges and sacrifices that Mr. President, I was so impressed gives the Congress the responsibility of pro- you face. The ‘‘Reserve Forces Revitalization with the remarks that Chairman viding for the defense of our Nation. We have Act of 1995’’ is intended to address many of SPENCE made when he received the 1996 conducted a survey of the status of our de- the administrative and organizational ineffi- Minuteman of the Year Award, that I fense, which concludes that defense spending ciencies that have developed in Reserve pro- has been cut too deeply and that the Presi- grams, and it is designed to reinforce the would like to share them with my col- ‘‘Total Force Concept.’’ As the demands on leagues. Mr. President, I ask unani- dent’s defense plan underfunds the Bottom- Up Review force structure and the overall our active forces are spread thinner than mous consent that the address made by National Military Strategy for two major re- ever across the world, our Committee and FLOYD SPENCE to the Reserve Officers gional contingencies. The Pentagon are continually looking for Association of the United States on In my 25 years on the Hill, I have seen ways to increase reliance on the Reserve January 24, 1996, be printed in the leaders come and go; budget fights won and components of all of the branches of the RECORD. lost; and changes in threat, weapons systems Armed Services. There being no objection, the address and strategies, and even a ‘‘hollow’’ mili- During the Fiscal Year 1997 authorization cycle, the National Security Committee’s was ordered to be printed in the tary. I have seen hot wars, cold wars, contin- gency, peacekeeping and even peace enforce- Personnel Subcommittee, which is chaired RECORD, as follows: ment operations; yet, I have never been more by Congressman Bob Dornan, will conduct ADDRESS BY CONGRESSMAN FLOYD D. SPENCE concerned about the state of our National hearings on the aspects that fall under the TO THE MID-WINTER BANQUET AND MILITARY Security than I am now. Committee’s jurisdiction. But, you do not BALL OF THE RESERVE OFFICERS ASSOCIA- Unlike during the Cold War, when the con- need to wait until next year. The Fiscal Year TION OF THE UNITED STATES JANUARY 24, sensus on the threat generally dictated our 1996 Defense Authorization bill, which was 1996 national strategy, forces, budgets and weap- passed by the House today by a 287 to 129 It is a privilege for me to be in the pres- on systems decisions, there is no consensus vote, has already accomplished a few of the ence of so many great Americans this on the threat to our national interest in the Revitalization Act’s objectives. As soon as evening, and to join the list of famous people post-Cold War world, as we cannot see the the President signs the bill, the following who have received the Minuteman of the threat. As the former Director of the CIA programs will become active: Year award from the Reserve Officers Asso- testified several years ago, in the post-Cold Mobilization Income Insurance Program ciation of the United States. I never thought War world it is as if a mighty dragon had for Ready Reserve members. This new insur- that I would be honored in this way. I would been slayed and the result is a jungle full of ance plan is voluntary and will be financed by premiums paid by the participants. like to thank you. I also would like to thank deadly snakes. Medical and Dental Care for Members of God, for it is through him that I received a In this new environment, we still face the Selected Reserve for early deploying double-lung transplant in 1988, that has ex- weapons of mass destruction, low technology Army Reserve and National Guard units. The tended my life and allowed me to continue and inexpensive delivery systems. We still Conference Report also establishes a shared- my work in the Congress. face a growing range of nationalist, ethnic cost dental insurance program for all mem- It is indeed an honor to be selected as the and religious conflicts that transcend tradi- bers of the Selected Reserve, which will be 1996 Minuteman of the Year. I joined the tional borders. The only people who have Navy when I was 17 years old, and after grad- fully implemented in Fiscal Year 1997. seen the end of war are the dead themselves. Military Technician Full-Time Support uating from college, I was commissioned as Whether or not this country will next go to Program. The Committee felt that the Mili- an ensign in the Naval Reserve. As a retired war is not a question of ‘‘if’’ but a question tary Technician Full-Time Support Program Captain in the Navy and a member of the Re- of ‘‘when.’’ is essential to Reserve component readiness, serve Officers Association, not a day goes by Yet, we have cut back too severely over and to the Reserve components’ ability to re- that I do not think about my time in the the last decade. For example, over the last lieve active duty units suffering under the Naval Reserve and relate it to my work as decade of declining defense budgets, we have duress of consistently high operating tem- Chairman of the House National Security cut back dramatically on modernization pos. Therefore, the conferees agreed to in- Committee. I use those experiences in look- spending—procurement spending by 70 per- crease military technician endstrength by ing for ways to do what is best for our men cent and research and development spending 1,400 over the Administration’s request and and women in uniform and for our National by 20 percent. As a consequence, there will to prohibit reductions below established Security. To be recognized as I mark my be a dramatic modernization shortfall begin- endstrengths, except for those occurring as a first anniversary as Chairman, this award ning early in the next century. result of force structure changes. really means a lot to me. As for force structure, just since the end of Increase in the Number of Members in the A Chairman of a Committee, in either the Desert Storm, we have cut back: active duty Grades of O–4, O–5, and O–6 Authorized to House or the Senate, is only as good as the force structure by almost 30 percent, Army Serve on Active Duty in Support of the Re- people that he serves with. Over my 25 years divisions by 30 percent, combat ships by 32 serves. and in the House, I have had the privilege of percent, and warplanes by 36 percent. Cur- Continued Support for the Off-Site Agree- serving with some of the finest Members rently, many experts doubt that we could ment for the Army Reserve and the National that the United States Congress has seen. conduct another campaign like we did in the Guard. And, although my dear friend and colleague Persian Gulf in 1991. As always, the National Security Commit- from Mississippi could not be here tonight, One year ago, in an effort to begin revital- tee is fully supportive and will remain fully due to back surgery, I would like to take a izing our National Security, the Chairman of committed to each of the Reserve compo- moment to recognize Sonny Montgomery for the National Security Subcommittee of the nents and the National Guard. his infinite support for our veterans, and our Appropriations Committee, Bill Young, and I In closing, I want to thank the members of Reserve and National Guard programs. worked with the Republican Leadership to the Reserve Officers Association for their Sonny will be retiring at the end of this stop the ‘‘hemorrhaging,’’ to freeze defense leadership in Reserve affairs. As Chairman, I term after 30 years in the House. But, we, his spending and to end the decline. We managed look to the ROA for your insight and per- family of veterans, Reservists and members to reach an agreement to add approximately spective on all matters relating to the Re- of the National Guard, can all take comfort $30 billion to defense over the next 7 years. serve forces. Thank you for bestowing the in knowing that the Congress is a better The defense authorization Conference Re- honor of being Minuteman of the Year for place due to his service. I do not need to say port, that the House adopted earlier today, 1996 upon me. I look forward to working with any more. I am certain that because of reflects this additional funding, as well as you as we begin to address the authorization Sonny Montgomery, either you or someone our focus on four basic priorities: improving process for the next fiscal year. Thank you. that you know was able to go to college military quality of life, sustaining core read- God bless you and our great Country. through the Montgomery GI Bill. I will be iness, reinvigorating lagging modernization f sure to pass along your warm greeting to programs, and beginning long overdue re- Sonny. form of The Pentagon. As this group knows, THE BAD DEBT BOXSCORE I am sometimes accused of being too sup- our Reserves will be critical to this revital- Mr. HELMS. Mr. President, as of the portive of the military. To my accusers, I ized United States National Security pos- close of business Tuesday, February 6, say that it is impossible to be too supportive ture. of the military that helped this country to I am sure that you are aware that Con- the Federal debt—down to the penny— gain and keep its freedom. When I was ap- gressman Greg Laughlin is working to en- stood at exactly $4,987,288,825,759.77 or pointed Chairman, last year, my first pro- sure that the Reserves are an integral part of $18,930.18 on a per capita basis for every posal was to change the Department of De- that National Security posture. As sponsor man, woman, and child in America. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1077 SUSANNE B. WILSON Rob, and David, as well as their fami- pursuant to the order of the Senate of Mrs. FEINSTEIN. Mr. President, I lies and six grandchildren in celebrat- January 24, 1901, as modified by the rise today to salute Susanne B. Wilson, ing this well-deserved award. order of February 7, 1996, appoints the who will be honored with the 1995–96 I congratulate Susie Wilson as she is Senator from Hawaii [Mr. AKAKA] to distinguished Tower Award by San honored with the Tower Award for her read Washington’s Farewell Address on Jose State University. years of giving to others and for her February 26, 1996. Since 1972 the Tower Award has been well known, more private, and very Mr. DOLE. So I assume it started in presented to alumni, faculty, and com- personal accomplishments. And I con- 1901, is that it? munity leaders recognizing exceptional gratulate President Caret for his selec- The PRESIDING OFFICER. The ma- and continuous service to San Jose tion of Susie which honors San Jose jority leader is correct. State University and the previous re- State and the university community. f Continuing the tradition of the award, cipients of the award. Susie Wilson is a longstanding leader f MEASURE PLACED ON THE in Santa Clara Valley as a public offi- TRIBUTE TO DR. LEON RIEBMAN CALENDAR—S. 1561 cial—a member of the county board of Mr. SPECTER. Mr. President, I have Mr. DOLE. Mr. President, I under- supervisors and a member of the San sought recognition today to recognize stand there is a bill on the calendar Jose City Council—and in her work for one of Pennsylvania’s distinguished that is due for its second reading. numerous organizations. citizens as he retires after 60 years of The PRESIDING OFFICER. The Susie’s active leadership role at San service to his community and his coun- clerk will read the bill for the second Jose State University spans nearly try. Dr. Leon Riebman has served his time. three decades—first as a student then country as a naval officer, his commu- The assistant legislative clerk read as a faculty member, and now as a vol- nity as a professor at the University of as follows: unteer alumna. She earned her bach- Pennsylvania, and our national defense A bill (S. 1561) for the relief of the individ- elor’s degree in political science in needs as a founder and long-term chief uals whose employment at the White House 1976, and later served as a lecturer dur- executive officer of AEL Industries, a Travel Office was terminated. ing the 1980’s. In 1994, she was the first premier defense electronics organiza- Mr. DOLE. Mr. President, I object to visiting professor in the SJSU leader- tion. further consideration of this matter at in-residence program, teaching a senior As a naval officer during World War this time. seminar in the ethical issues in poli- II, Dr. Riebman served at the Naval Re- The PRESIDING OFFICER. The bill tics. search Laboratory in Washington, will be placed on the calendar. Susie was one of the founders of and where he conducted research in the participants in the Walk for Women of then-new science of fire control radar f Sparta, which was the largest fund- systems. Following his Navy service, DESIGNATING THE MAX ROSENN raiser by women for women athletes, Dr. Riebman returned to the Univer- U.S. COURTHOUSE which raised over $1 million for wom- sity of Pennsylvania for advanced stud- en’s athletic scholarships. She has also ies, and to serve on the staff as a re- Mr. DOLE. Mr. President, I ask unan- been active in the Spartan Foundation, search associate and instructor. imous consent the Committee on Envi- a key fundraising organization of the Since 1950, when he cofounded AEL ronment and Public Works be dis- San Jose State, and is currently serv- Industries, he has been an active con- charged from further consideration of ing on the executive committee and tributor to technological advances in H.R. 1718, and further that the Senate board of directors. the defense electronics industry. Under proceed to its immediate consider- Susie Wilson built a reputation of Dr. Riebman’s leadership, AEL Indus- ation. leadership as a member of the San Jose tries has grown continually to the The PRESIDING OFFICER. Without City Council where she served for 6 point where it now employs 1,300 people objection, it is so ordered. years, then as a member of the County in Pennsylvania and five other States. The clerk will report. of Santa Clara Board of Supervisors. Dr. Riebman’s interest in research The assistant legislative clerk read Susie solved problems, brought oppos- and development has resulted in 10 pat- as follows: ing parties together in compromise, ents. In 1966, he was named a fellow of A bill (H.R. 1718) to designate the United and worked through consensus to pre- the Institute of Electrical and Elec- States courthouse located at 197 South Main vent political stalemates. It is no sur- tronic Engineers, and continues to be Street, Wilkes-Barre, Pennsylvania as the prise that when Susie retired from the an active participant through service ‘‘Max Rosenn United States Courthouse.’’ board she started her own business on several committees. The Senate proceeded to consider the called SOLUTIONS. I am pleased to have this opportunity bill. Susie has continued to be a commu- to recognize the many accomplish- Mr. SPECTER. Mr. President, I am nity leader, lending her insight and ex- ments of Dr. Leon Riebman and hope very pleased that the Senate is acting pertise to organizations such as the my colleagues will join me in tribute so quickly on H.R. 1718, a bill to des- United Way, the Boy Scouts of Amer- on the occasion of his retirement. ignate the U.S. courthouse in Wilkes- ica, and Cambrian Park United Meth- f Barre, PA as the Max Rosenn United odist Church, her church of over 30 READING OF WASHINGTON’S States Courthouse. years. A champion of social justice, one FAREWELL ADDRESS Max Rosenn is one of our Nation’s most eminent jurists and one of Penn- of her most important accomplish- Mr. DOLE. Mr. President, I ask unan- sylvania’s outstanding citizens. Judge ments was her success as chair of the imous consent that notwithstanding YWCA Villa Nueva Capital Campaign. the resolution of the Senate of January Rosenn has dedicated his life to serving Villa Nueva is a 63-family residential 24, 1901, on Monday, February 26, 1996, the people of Wilkes-Barre, Luzerne housing unit for lower income families immediately following the prayer and County, PA, and the United States. which houses transitional and afford- the disposition of the Journal, the tra- There is no one more deserving of this able housing, mostly for single parents ditional reading of Washington’s Fare- great honor. and their kids. To honor Susie, the well Address take place and that the Judge Rosenn was born in Luzerne building was named in her honor when Chair be authorized to appoint a Sen- County in 1910 and raised there. After it opened in 1993. In addition, she is a ator to perform this task. graduating from Cornell and the Uni- founding member of the National Wom- The PRESIDING OFFICER. Without versity of Pennsylvania Law School, he en’s Political Caucus and a member of objection, it is so ordered. returned to Luzerne County to practice the American Association of Univer- f law. sity Women. In 1941, Judge Rosenn began his dis- Susie Wilson is truly a model of ef- APPOINTMENT BY THE VICE tinguished career in the service of his fective leadership in a community. I PRESIDENT community and country by becoming join with her wonderful husband Bob, a The PRESIDING OFFICER. The an assistant district attorney for retired IBM engineer, their sons, Bill, Chair, on behalf of the Vice President, Luzerne County. In 1944, he entered on S 1078 CONGRESSIONAL RECORD — SENATE February 7, 1996 active duty with the U.S. Army, serv- United States Courthouse’’, and for other tional circumstances and only if the Govern- ing in the judge advocate general’s purposes. ment determines’’. corps in the South Pacific during The PRESIDING OFFICER. Is there On page 5, between lines 15 and 16, insert the following: World War II. After the war, he re- objection to the immediate consider- This determination is subject to adminis- turned to Luzerne County, where he re- ation of the bill? trative appeal and judicial review under sec- sumed the private practice of law and There being no objection, the Senate tion 203(2) of title 35, United States Code. was active in civic and public matters. proceeded to consider the bill. On page 13, strike lines 10 through 17 and From 1964 to 1966, he served as a mem- Mr. DOLE. Mr. President, I ask unan- insert the following: ber of the State Welfare Board and in imous consent that the bill be deemed Section 11(i) of the Stevenson-Wydler 1966 was appointed by Governor Scran- read a third time, passed, that the mo- Technology Innovation Act of 1980 (15 U.S.C. tion to reconsider be laid upon the 3710(i)) is amended by inserting ‘‘loan, lease, ton to be Pennsylvania’s Secretary of or’’ before ‘‘give’’. Public Welfare, serving until 1967 after table, and that any colloquy or state- Beginning with line 23 on page 21, strike being retained in office by Governor ments relating to the bill be placed at though line 3 on page 22 and insert the fol- Shafer. In 1969, he was appointed to the the appropriate place in the RECORD. lowing: Pennsylvania Human Relations Com- The PRESIDING OFFICER. Without ‘‘(13) to coordinate Federal, State, and mission, a post he held when named a objection, it is so ordered. local technical standards activities and con- Federal judge. So the bill (S. 1510) was deemed read formity assessment activities, with private Recognizing Max Rosenn’s dedication for a third time, and passed, as follows: sector technical standards activities and conformity assessment activities, with the to his community and his State and his S. 1510 goal of eliminating unnecessary duplication legal skill, President Nixon nominated Be it enacted by the Senate and House of Rep- and complexity in the development and pro- him to serve as U.S. Circuit Judge for resentatives of the United States of America in mulgation of conformity assessment require- the Third Circuit in 1970. For over 25 Congress assembled, ments and measures.’’. years, Judge Rosenn has been one of SECTION 1. DESIGNATION OF E. BARRETT On page 22, beginning on line 5, strike ‘‘by this country’s most distinguished ap- PRETTYMAN UNITED STATES January 1, 1996,’’ and insert ‘‘within 90 days pellate judges. If the hallmarks of jus- COURTHOUSE. after the date of enactment of this Act,’’. The United States Courthouse located at Beginning with line 8 on page 22, strike tice are fairness and wisdom, then 3rd Street and Constitution Avenue North- through line 5 on page 23 and insert the fol- Judge Rosenn is a leader in achieving west, in Washington, District of Columbia, lowing: justice, as he is widely recognized for shall be known and designated as the ‘‘E. (d) UTILIZATION OF CONSENSUS TECHNICAL both qualities. Barrett Prettyman United States Court- STANDARDS BY FEDERAL AGENCIES; RE- Naming the U.S. courthouse in house’’. PORTS.— Wilkes-Barre after its most famous and f (1) IN GENERAL.—Except as provided in respected lawyer and judge is the most paragraph (3) of this subsection, all Federal TECHNOLOGY TRANSFER agencies and departments shall use technical fitting tribute I can imagine. I am IMPROVEMENTS ACT OF 1995 standards that are developed or adopted by pleased that the Senate is joining with voluntary consensus standards bodies, using the House and the members of the legal Mr. DOLE. Mr. President, I ask unan- such technical standards as a means to carry community in Pennsylvania in rec- imous consent that the Committee on out policy objectives or activities deter- ognizing Judge Rosenn’s achievements. Commerce be discharged from further mined by the agencies and departments. I would like to take the opportunity consideration of H.R. 2196; further, that (2) CONSULTATION; PARTICIPATION.—In car- to thank Representative KANJORSKI, the Senate proceed to its immediate rying out paragraph (1) of this subsection, who represents Luzerne County, for in- consideration. Federal agencies and departments shall con- sult with voluntary, private sector, consen- troducing this bill in the House and The PRESIDING OFFICER. Without objection, it is so ordered. sus standards bodies and shall, when such seeing it through to passage there, and participation is in the public interest and is Senators CHAFEE and BAUCUS for their The clerk will report. compatible with agency and departmental willingness to move the bill so quickly The assistant legislative clerk read missions, authorities, priorities, and budget in the Senate. I also appreciate the as follows: resources, participate with such bodies in services of the staff of the Committee A bill (H.R. 2196) to amend the Stevenson- the development of technical standards. on the Environment and Public Works, Wydler Technology Innovation Act of 1980 (3) EXCEPTION.—If compliance with para- especially Dan Delich and Kathryn with respect to inventions made under coop- graph (1) of this subsection is inconsistent with applicable law or otherwise imprac- Ruffalo, for their work on this matter. erative research and development agree- ments, and for other purposes. tical, a Federal agency or department may Mr. DOLE. I ask unanimous consent The PRESIDING OFFICER. Is there elect to use technical standards that are not the bill be deemed read a third time, developed or adopted by voluntary consensus passed, the motion to reconsider be objection to the immediate consider- standards bodies if the head of each such laid upon the table, and any colloquies ation of the bill? agency or department transmits to the Of- and statements relating to the bill be There being no objection, the Senate fice of Management and Budget an expla- placed at an appropriate place in the proceeded to consider the bill. nation of the reasons for using such stand- ards. Each year, beginning with fiscal year RECORD. AMENDMENT NO. 3463 (Purpose: To make perfecting amendments) 1997, the Office of Management and Budget The PRESIDING OFFICER. Without shall transmit to Congress and its commit- objection, it is so ordered. Mr. DOLE. Mr. President, I send an tees a report summarizing all explanations The bill (H.R. 1718) was deemed read amendment to the desk on behalf of received in the preceding year under this three times and passed. Senators ROCKEFELLER and BURNS. paragraph. f The PRESIDING OFFICER. The (4) DEFINITION OF TECHNICAL STANDARDS.— clerk will report. As used in this subsection, the term ‘‘tech- E. BARRETT PRETTYMAN U.S. The assistant legislative clerk read nical standards’’ means performance-based COURTHOUSE as follows: or design-specific technical specifications and related management systems practices. Mr. DOLE. Mr. President, I ask unan- The Senator from Kansas [Mr. DOLE], for imous consent that the Committee on Mr. ROCKEFELLER, for himself and Mr. Mr. ROCKEFELLER. Mr. President, I Environment and Public Works be dis- BURNS, proposes an amendment numbered am pleased that the Senate is now con- charged from further consideration of 3463. sidering legislation to improve the S. 1510; further, that the Senate pro- Mr. DOLE. Mr. President, I ask unan- transfer of technology from Federal ceed to its immediate consideration. imous consent that reading of the laboratories to the private sector. Two The PRESIDING OFFICER. Without amendment be dispensed with. related bills are now before the Senate: objection, it is so ordered. The PRESIDING OFFICER. Without First, S. 1164, which I introduced and The clerk will report. objection, it is so ordered. have been joined as a cosponsor by the The assistant legislative clerk read The amendment is as follows: distinguished Science Subcommittee as follows: On page 3, line 24, insert ‘‘pre-negotiated’’ chairman, Senator BURNS, and second, A bill (S. 1510) to designate the United before ‘‘field’’. the House-passed companion bill, H.R. States Courthouse in Washington, District of On page 5, beginning on line 4, strike ‘‘if 2196, introduced by the distinguished Columbia, as the ‘‘E. Barrett Prettyman the Government finds’’ and insert ‘‘in excep- chairwoman of the House Technology February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1079

Subcommittee, Representative CONNIE and they will reduce the burden of the terest remains protected. To begin leg- MORELLA. House cosponsors include law on private industry while main- islative discussion on this matter, I in- Science Committee chairman, BOB taining public safety. troduced S. 1537 on October 7, 1993, for WALKER, Science Committee ranking Third, the House version of the bill myself and Senator DeConcini, then member, GEORGE BROWN, and Tech- now before us contains several chairman of the Senate Patent Sub- nology Subcommittee ranking, mem- nonspending measures regarding tech- committee. That bill would have di- ber, JOHN TANNER. We also have con- nical agencies and the use of private- rected Federal laboratories to assign to sulted closely with the administration sector technical standards. the collaborating party—the com- on this bill. BACKGROUND ON THE TECHNOLOGY TRANSFER pany—title to any intellectual prop- It is my hope that the Senate will PROVISIONS erty arising from a CRADA, in ex- now pass H.R. 2196 with small perfect- Mr. President, the heart of the legis- change for reasonable compensation to ing and clarification amendments lation, in both the Senate and House the laboratory and certain patent safe- worked out in consultation with inter- versions, is section 4, which will im- guards. ested Senators. We have worked with prove the transfer of technology from S. 1537 also contained a second provi- the House on these perfecting amend- Federal laboratories by giving both sion—an additional incentive for Fed- ments, and I hope that the House can laboratories and industrial partners eral scientists to report and develop in- pass the amended H.R. 2196 without clearer guidelines on the distribution ventions that might have commercial further changes, clearing the bill for of intellectual property rights from in- as well as government value. The Gen- transmittal to the President. ventions resulting from cooperative re- eral Accounting Office [GAO] had rec- The title of the House-passed bill is search projects. ommended that Federal inventors re- the National Technology Transfer and Specifically, the bill amends the Ste- ceive more of the royalties received by Advancement Act. The Senate title is venson-Wydler Technology Innovation laboratories as government compensa- similar: the Technology Transfer Im- Act, which since 1986 has allowed Fed- tion under CRADA’s. My bill incor- provements Act. The two bills are eral laboratories to enter into coopera- porated that recommendation. based on earlier legislation that Rep- tive research and development agree- Soon after Senator DeConcini and I resentative MORELLA and I introduced ments [CRADA’s] with industry and introduced our bill, Congresswoman in the last Congress and which has other collaborating parties. The lab- MORELLA introduced the companion been thoroughly checked with all in- oratories can contribute people, facili- House bill, H.R. 3590. In subsequent terested parties. The current legisla- ties, equipment, and ideas, but not House and Senate hearings, the bill re- tion makes valuable amendments in funding, and the companies contribute ceived strong support from industry, existing law but contains no authoriza- people and funding. professional societies, trade associa- tions or controversial spending propos- As I pointed out when I introduced S. tions, and the administration. At that als. It has bipartisan support here in 1164 on August 10, even under the cur- point, we also began working closely Congress, and has the support of the rent law the CRADA provision has been with Commerce Department Under administration. The Senate Commerce a success. Hundreds of these agree- Secretary for Technology Mary Good Committee approved S. 1164 without ments have been signed and carried out and her staff, who helped us obtain de- objection on November 3 of last year. in recent years, making expertise and tailed technical suggestions from exec- H.R. 2196 passed the House by voice technology that the Federal Govern- utive branch agencies and other patent vote on December 12. ment has already paid for through its experts. We made major progress dur- Mr. President, this is a constructive mission-related work available to the ing the 103d Congress, but in 1994 ran bill that has earned the bipartisan sup- wider economy. But we also have seen out of time to complete action on the port now evident. The legislation has a problem. Currently, the law provides legislation. three main parts. First, the heart of little guidance on what intellectual TECHNOLOGY TRANSFER PROVISIONS OF THE both bills is legislation that Mrs. property rights a collaborating partner CURRENT BILL MORELLA and I authored to help im- should receive from a CRADA. The cur- The bills that Representative prove the transfer of technology from rent law gives agencies very broad dis- MORELLA and I introduced this year are Federal laboratories to the private sec- cretion on this matter, which provides based on this earlier legislation but tor. The Federal Government spends flexibility but also means that both also reflect suggestions made by the some $20 billion a year on its labora- companies and laboratory executives experts. The revised bill continues to tories. They employ some of the finest must laboriously negotiate patent focus on the twin issues of company scientists and engineers in the world, rights each time they discuss a new rights under a CRADA and royalty- have some of the best facilities and CRADA. Neither side has much guid- sharing for Federal inventors. new technologies. This bill will cut the ance as to what constitutes an appro- The key CRADA provision of H.R. time and redtape involved in creating priate agreement regarding intellec- 2196—as well as S. 1164—is section 4, joint research projects between compa- tual property developed under the which amends section 12 of the Steven- nies and these Federal laboratories. CRADA. Options range from assigning son-Wydler Act. Those section 12 And that, Mr. President, will help com- full patent title to the company all the amendments, in turn, have two key panies in West Virginia and all across way to providing the firm with only a provisions. One deals with inventions the country. The country or countries nonexclusive license for a narrow field made, pursuant to a CRADA, solely by that can develop and use new tech- of use. the collaborating party’s employee. In nologies most quickly and efficiently In conversations with company ex- this case, the laboratory shall ensure will win the markets of the future. ecutives, we learned that this uncer- that the collaborating party may re- This bill will help speed joint research tainty—and the time and effort in- tain title to that invention. The ra- projects, and increase their number, volved in negotiating intellectual prop- tionale, of course, is that since the col- leading to new technologies that com- erty from scratch in each CRADA—was laborating party’s employee is solely panies can use to produce new prod- often a barrier to working with some responsible for the invention, the col- ucts, revitalize existing ones, and build laboratories. Companies are reluctant laborating party should have the right markets. And that means more jobs to enter into a CRADA, or, equally im- of title. and a more competitive America. portant, to commit additional re- The other key section 12 amendment Second, the bill contains important sources to commercialize a CRADA in- concerns inventions developed in whole amendments to the Fastener Quality vention, unless they have some assur- or in part by a laboratory employee Act of 1990, a law which regulates the ance they will control important pat- under a CRADA. The current bill would manufacture and sale of high-strength ent rights. give a collaborating party a statutory bolts and other fasteners used in safe- In 1993, I began working with Con- option to choose an exclusive license ty-related applications such as motor gresswoman MORELLA on possible ways for a field of use for any such inven- vehicles, aircraft, and buildings. These to reduce the uncertainty and nego- tion. Agencies may still assign full pat- amendments have been championed tiating burden facing companies, while ent title for such inventions to the here in the Senate by Senator BURNS, still ensuring that the Government in- company; the agencies we consulted S 1080 CONGRESSIONAL RECORD — SENATE February 7, 1996 felt they needed to retain that flexibil- the use of such inventions will be man- sion of the provision regarding royalty- ity, and our new bill allows them to do ufactured substantially in the United sharing for Federal investors. Under so. But the important point is that a States.* * *’’ the new bill, agencies each year must company will now know that it is as- I want to emphasize two points about pay a Federal inventor the first $2,000 sured of having no less than an exclu- this provision and its role in the new in royalties received because of that sive license in a field of use identified language giving the Government, under person’s inventions, plus at least 15 through negotiations between the lab- exceptional circumstances, a right to percent of any additional annual royal- oratory and the company. This statu- compel a licensee to share its licensed ties. By rewarding Federal inventors, tory guideline will give companies real technology. we will give them an incentive to re- assurance that they will get important First, subsection 12(c)(4)(B) of the port inventions and work in CRADA’s. intellectual property out of any Stevenson-Wydler Act directs labora- The bill involves no Federal spending; CRADA they fund. In turn, that assur- tory directors to give preference to all rewards would be from royalties ance will give those companies both an those organizations which agree to this paid to the Government by companies extra incentive to enter into a CRADA condition but is flexible enough to en- and others. and the knowledge that they can safely vision circumstances where this condi- FASTENER QUALITY ACT AMENDMENTS invest further in the commercializa- tion is not practical or appropriate. Mr. President, the second major pro- tion of that invention, knowing they One example might be the case of a re- vision of the bill now before us is a set have an exclusive claim on it. search technique or process that in it- of amendments to the Fastener Quality Senators DOMENICI and BINGAMAN self is not used to make products. Or in Act of 1990. That act regulates the have raised an important point about the case of biotechnology, one might manufacture and distribution of cer- this provision. They and I agree that create and license a gene therapy tech- tain high-strength bolts and other fas- the relevant field of use for which a nique which leads to no manufactured teners used in safety-related applica- collaborating party has the option of product. So this subsection was never tions, such as building, aircraft, and an exclusive license shall be selected intended to require a substantial U.S. motor vehicles. through a process of negotiation be- manufacturing agreement in all The Fastener Advisory Committee tween the laboratory and that collabo- CRADA’s. The second point follows created under the 1990 law has rec- rating party. As with other provisions from the first. The absence of such an ommended a series of changes which of a CRADA, the field of use is selected agreement in a particular CRADA in will continue to ensure the safety of through a process of negotiation be- no way creates grounds for the Govern- these high-strength fasteners while re- ducing the regulatory burden on busi- tween the two parties. It is a pre-nego- ment to exercise the new exceptional ness. The Senate first passed these tiated field of use. As I will discuss circumstances powers. The new lan- amendments in March 1994 as part of a below, we propose a perfecting amend- guage simply says that if, and only if, larger technology bill. That 1994 bill ment to clarify this key point. a collaborating party voluntarily in- The bill further provides that in re- did not become law, however, so this cludes a substantial U.S. manufactur- year in the Commerce Committee, Sen- turn for granting the option of an ex- ing agreement in its CRADA, and also ator BURNS, who is the Senate leader clusive license in that pre-negotiated if it then fails in a truly exceptional field of use, the Government may nego- on this matter, offered these changes manner to comply with that agree- as an amendment to S. 1164. The same tiate for reasonable compensation, ment, then grounds exist for the Gov- amendments were included in H.R. such as royalties. And the Government ernment to exercise these new powers. 2196. These changes have been worked retains minimal rights to use the in- This new provision provides important out with a very broad set of interested vention under unusual but important protection for the taxpayer in the case parties, including major users of fas- circumstances, such as when the party of that very rare collaborating party teners, and I know of no controversy in holding the exclusive license is unwill- which abuses its exclusive license, but the Senate regarding them. ing or unable to use the invention to it, by definition, does not apply to OTHER PROVISIONS IN H.R. 2196 meet important health and safety CRADA’s which do not include an Finally, the House version of the leg- needs. However, and I want to empha- agreement regarding substantial U.S. islation also contains a set of size this point, we believe strongly that manufacturing. nonspending amendments regarding the Government should exercise these I also want to mention that in order NIST operations and voluntary indus- rights only under the most exceptional to give a collaborating party full due try standards. While these amendments circumstances. As the distinguished process in the event that the Govern- are not currently in S. 1164, they did Senators from New Mexico have point- ment ever decides to exercise any of not lead to any controversy on the ed out, we do not want the existence of these exceptional circumstances pow- House floor. these Government rights to deter com- ers, we are offering another perfecting One such provision, section 9, is in- panies from entering into CRADA’s. amendment to give collaborating par- tended to make it easier for Federal And I want to assure these Senators ties a right of administrative and judi- laboratories to loan, lease, or donate and industry that these rights would cial appeal which already exists in one excess research equipment to edu- only be used under the most excep- other provision of Federal patent law. I cational institutions and nonprofit or- tional circumstances. For that reason, will discuss that amendment, as well as ganizations. As I will explain shortly, I as I will discuss shortly, I propose a the others I have mentioned, in the will shortly propose a perfecting further perfecting amendment to make later part of my statement which deals amendment and colloquy pertaining to this point even more clear. with the amendments we are offering section 9. A related point deals with one of the today. Another provision, section 12(d), grounds under which the Government Overall, Mr. President, the bill now would codify an existing Office of Man- might exercise these rights. We men- before the Senate continues the origi- agement and Budget circular, OMB Cir- tion that one such circumstance would nal purpose we envisioned in 1993—pro- cular A–119. Following the OMB cir- be that ‘‘the collaborating party has viding guidelines that simplify the ne- cular, the amendment directs Federal failed to comply with an agreement gotiation of CRADA’s and, in the proc- agencies to use, to the extent not in- containing provisions described in sub- ess, give companies greater assurance consistent with applicable law or oth- section (c)(4)(B)’’ of the existing sec- they will share in the benefits of the erwise impractical, technical standards tion 12 of the Stevenson-Wydler Act. research they fund. We expect that this that are developed or adopted by vol- Subsection (c)(4)(B) says, in part that a change will increase the number of untary consensus standards organiza- laboratory director in deciding what CRADA’s, reduce the time and effort tions. We believe this step will reduce CRADA’s to enter into shall ‘‘give pref- required to negotiate them, and thus costs for both government and the pri- erence to business units located in the speed the transfer of laboratory tech- vate sector. For example, if off-the- United States which agree that prod- nology and know-how to the broader shelf products meeting a voluntary ucts embodying inventions made under economy. consensus standards can, in the judg- the cooperative research and develop- The legislation now before the Sen- ment of an Agency, meet its procure- ment agreement or produced through ate also contains a slightly revised ver- ment requirements, then the Agency February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1081 saves money over buying products party causes unreasonable hardship or second, provide new grounds for judi- built to special government specifica- potential harm is provided the oppor- cial review; or third, create legal rights tions and commercial industry benefits tunity to have a fair hearing of their enforceable against agencies or their from increased sales to the Govern- concerns. In short, a legitimate consen- officers. ment. sus standards organization provides Fifth and finally, the term ‘‘Federal I will shortly discuss the several per- open process in which all parties and agencies and departments’’ is meant to fecting amendments that we are now experts have ample opportunity to par- refer to entities of the executive offering to this bill, but here I want to ticipate in developing the consensus. branch, and not to independent regu- mention that one of these amendments Examples include traditional stand- latory commissions. Commissions may clarifies the intent and scope of section ards organizations, such as the Amer- have their own separate statutory re- 12(d). We have worked closely with ican Society of Testing and Materials, quirements regarding whether or not Senators BAUCUS and JOHNSTON, and as well as newer organizations such as to use consensus technical standards; their staffs, on this rewrite. And here, the Internet Engineering Task Force one such example is the Consumer based on our discussions with these of- which has effectively used consensus Product Safety Commission [CPSC]. I fices, I want to emphasize five key procedures coupled with real-time im- want to emphasize that section 12(d) is points about the intent and effect of plementation and testing to develop not intended to apply to the CPSC or this provision, as amended, in order to the technical standards for Internet other independent regulatory commis- deal with concerns that have been protocols and technology. Many of sions. raised. these standards development organiza- ADDITIONAL PERFECTING AMENDMENTS First, we are talking here about tech- tions are accredited, including those Mr. President, conversations with in- nical standards pertaining to products accredited by the American National terested Senators have led me, after and processes, such as the size, Standards Institute. consultation with Chairman BURNS, to strength, or technical performance of a This provision is not intended to di- offer six other small perfecting amend- product, process, or material. The rect agencies and departments to con- ments that clarify key provisions of amended version of section 12(d) explic- sider standards from organizations the bill. I want to mention them brief- itly defines the term ‘‘technical stand- that do not meet the criteria of open- ly, as well as thank the relevant Sen- ards’’ as meaning performance-based or ness, balance of interest, and due proc- ators for working with us on these is- design-specific technical specifications ess. sues. and related management systems prac- Third, the amended version of section First, as discussed earlier, we propose tices. An example of a management 12(d) makes clear that if compliance to clarify that the field of use for system practice standard is the ISO with the requirement to use voluntary which a collaborating party may get an 9000 series of standards specifying pro- consensus technical standards ‘‘is in- exclusive license is a pre-negotiated cedures for maintaining quality assur- consistent with applicable law or oth- field of use. That is, the company alone ance in manufacturing. erwise impractical, a Federal agency or does not pick the field of use. Like In this subsection, we are emphati- department may elect to use technical other provisions of CRADA, the field or cally not talking about requiring or en- standards that are not developed or fields of use for which a license applies couraging any agency to follow private adopted by voluntary consensus stand- is the result of negotiations between sector attempts to set regulatory ards bodies.’’ We intend that these the company and the laboratory. This standards or requirements. For exam- other technical standards may be ones has been the intent all along of both ple, we do not intend for the Govern- developed by the Agency or such other the Senate and House sponsors of this ment to have to follow any attempts standards as the Agency may deem ap- legislation, as reflected in both House by private standards bodies to set spe- propriate. and Senate report language. However, cific environmental regulations. Regu- Fourth, we intend that the deter- Senator DOMENICI has asked that we lar consensus standards bodies do not mination of what is or is not ‘‘incon- make this point explicit in the bill lan- do that, in any case. But no one should sistent with applicable law or other- guage itself, and I am happy to do so. presume that a new private group wise impractical’’ is solely the decision Second, as also discussed earlier, we could use section 12(d) to dictate regu- of the agency department involved. We want to make clear that an Agency lations to Federal agencies. The do require that if an agency or depart- will exercise its rights under the bill to amended version of this subsection ment does elect to use other technical require the holder of an exclusive tech- makes clear that agencies and depart- standards, they notify the Office of nology to share that technology only ments use ‘‘such technical standards as Management and Budget [OMB]. But if in exceptional circumstances. Senators a means to carry out policy objectives an Agency decides that no product or BINGAMAN and DOMENICI have requested or activities determined by the agen- process based on voluntary consensus this clarification, and I am pleased to cies and departments.’’ standards meets its requirements, it do so because this has been our intent Second, consensus standards are does not have to get approval from all along. We know that there may be standards which are developed by vol- anyone before it sets its own specifica- some exceptional, and very rare, cir- untary, private sector, consensus tions. It most certainly does not need cumstances under which the holder of standards bodies. These organizations approval from any private sector an exclusive license is not willing or are established explicitly for the pur- standards organization. Moreover, the able to use an important technology or pose of developing such standards provision neither provides nor implies use it as provided in the original through a process having three charac- any private sector veto or review of the CRADA agreement. We feel strongly teristics—First, openness, defined as agency’s decision. Nor does it provide, that the Government must maintain meaning that participation in the nor do we intend to provide, any legal some rights to deal with such a situa- standards development process shall be test or legal standard or decisionmak- tion, but agree with our distinguished open to all persons who are directly ing requirement that an agency must colleagues that these rights should be and materially affected by the activity meet before it decides which types of exercised only under the most excep- in question; second, balance of interest, technical standards to choose. As a re- tional circumstances. We do not want which means that the consensus body sult, section 12(d) provides no new or prospective CRADA participants to feel responsible for the development of a additional basis for either administra- that the Government will exercise standard shall be comprised of rep- tive or judicial review. these rights on a routine or arbitrary resentatives of all categories of inter- In other words, the intent of section basis. est that relate to the subject—for ex- 12(d) is exactly that of the following Third, Senator JOHNSTON has asked ample, manufacturer, user, regulatory, provision of OMB Circular A–119: It that a provision from other Federal insurance/inspection, employee/union should also be noted, however, that the patent law—the Bayh-Dole Act—be interest); and third, due process, which provisions of this circular are intended added to our bill’s section regarding means a procedure by which any indi- for internal management purposes only the exceptional circumstances under vidual or organization who believes and are not intended to: First, create which the Government may exercise its that an action or inaction of a third delay in the administrative process; right to require a collaborating party, S 1082 CONGRESSIONAL RECORD — SENATE February 7, 1996 holding an exclusive license to an in- staff for their hard work. Special Equally important, the bill provides vention made in whole or in part by a thanks also goes to Under Secretary of greater incentives for the Federal lab laboratory employee, to grant a license Commerce Mary Lowe Good and her scientists to commercialize their in- to a responsible applicant. That provi- staff, particularly Chief Counsel Mark ventions by increasing their share of sion from the Bayh-Dole is section Bohannon, for their work in reviewing any royalties received from the sale of 203(2) of title 35, United States Code, the legislation and working with other products arising from the joint re- and as added here it would provide a Federal agencies. Numerous technical search. collaborating party under these excep- experts helped us with the legislation, Mr. President, it is my understanding tional circumstances a right to an ad- and I thank them. I also want to thank that this bill, as amended, is supported ministrative appeal, as described under Dr. Thomas Forbord, who as a congres- by industry, the Federal lab directors, 37 CFR part 401, and to judicial review. sional fellow on my staff several years and the research community and has In short, if the Government determines ago drafted the first version of this val- broad bipartisan support in Congress. I that it has grounds to force a collabo- uable legislation. urge my colleagues to support H.R. 2196 rating party to grant a license to addi- Mr. President, this is a good bill that as amended pass it. tional party, according to the criteria will benefit companies in West Vir- Mr. GLENN. Mr. President, I would set forth in the bill, then that collabo- ginia, Montana, Maryland, and all like to engage the Senator from West rating party will have a right of due other States. It will help speed the cre- Virginia and the Senator from Mon- process and appeal. ation of new technologies, will help tana in a colloquy to clarify their in- Fourth, Senator GLENN, in his capac- make American companies more com- tentions under section 9 of the pending ity as ranking member of the Commit- petitive, and will help create and re- bill. As currently drafted, section 9 tee on Governmental Affairs, has tain good American jobs. would expand Federal laboratory direc- I urge our colleagues to accept the raised a point concerning section 9’s tors’ authority to dispose of research House-passed version, H.R. 2196, with provisions on the disposal of excess lab- equipment by allowing them to loan or these minor perfecting amendments, oratory research equipment. We delete lease this property. Under existing law, and return the bill to the House so that one part of section 9 and plan to enter this property may already be given to they may concur in these minor into a colloquy with the distinguished eligible institutions outright as a gift. changes and send the legislation on the Senator from Ohio regarding the proce- I would begin by thanking the chair- President for his signature. man and ranking member of the com- dures under which Federal laboratories Mr. BURNS. Mr. President, I rise in mittee for agreeing with me that the may loan or lease research equipment. support of H.R. 2196, as amended, which Fifth, the date on which a report re- is a bill to amend the Stevenson- original language in this section was quired under section 12(c) is due is Wylder Technology Innovation Act of overbroad. I very much appreciate changed from January 1, 1996, to within 1980. The Senate version of this bill, S. their willingness to amend the House 90 days of the date of enactment of this 1164, was reported out of the Commerce bill. With regard to the remaining loan act. Committee in November of last year. A final amendment clarifies section and lease provision, I would like to Our system of more than 700 Federal 12(b), a provision which deals with the laboratories is one of our most precious clarify the committee’s intent with re- role of the National Institute of Stand- national assets. These labs conduct im- spect to the continuing Federal liabil- ards and Technology [NIST] in coordi- portant research and development pro- ity and responsibility for leased or nating government standards activi- grams to keep the United States on the loaned equipment. What steps does the ties. The amendment corrects a small cutting edge of science and technology. committee envision Federal agencies drafting error. The original text, in As chairman of the Science Sub- should take in order to limit the tax- part, implies that NIST is to coordi- committee, I cosponsored S. 1164 to payer’s liability for such equipment? nate private sector standards and con- help accelerate the transfer of tech- Mr. ROCKEFELLER. Mr. President, I formity assessment activities. Of nology from our 700 Federal labs to the thank the Senator from Ohio for his in- course, we in no way intend that NIST private industry, where it can be con- terest in this matter, and I respect his or any other part of the Federal Gov- verted into commercial goods and serv- judgment on these issues. To answer ernment is to coordinate, direct, or su- ices for the American people. Our coop- his question, it is this Senator’s intent pervise private sector activities. The erative research and development that, prior to any equipment being amendment makes clear that NIST is agreements [CRADA’s] have proven a leased or loaned under this provision, a to coordinate with private sector ac- very effective way of accomplishing Federal agency shall issue guidance tivities. technology transfer without increasing which clearly states the steps a lab di- I thank Senators GLENN, DOMENICI, Federal spending. These CRADA’s en- rector or agency head shall take in BINGAMAN, JOHNSTON, and BAUCUS, and able Government and industry to con- order to clearly define the Federal their staffs, for working with us on duct research together which hopefully Government’s liability and responsibil- these perfecting amendments. will generate inventions and techno- ity with respect to the leased or loaned CONCLUSION logical breakthroughs that can be later property. Such guidance should address Mr. President, this bill is a concrete commercialized. It is the national in- issues like: The ongoing Federal obli- step toward making our Government’s terest to encourage more of this kind gation to maintain or upgrade the huge investment in science and tech- of joint research. leased equipment; the necessary steps nology more useful to commercial With that in mind, this bill seeks to to adequately train the recipient in the companies and our economy. Compa- encourage more joint research by clari- safe and proper use of the equipment; nies in West Virginia and other States fying the intellectual property rights the appropriate inventory controls will not find it easier to partner with that the industry partner may receive needed to track the equipment which Federal laboratories across the coun- in inventions generated by the joint re- both the lab and the recipient institu- try. The winner will be the American search. In this way, the company tion should have in place; and whether economy, which will get more eco- knows going into the arrangement that any financial issues, such as equipment nomic benefit out of the billions of dol- it will have the right to commercialize depreciation, should be considered in lars we invest each year in our Govern- the results of its joint research. The the lease-loan agreement. ment laboratories. The result will be bill also makes clear that, in exchange Mr. BURNS. Mr. President, I agree new technologies, new products, and for the rights given to the company, with the ranking member of the sub- new jobs for Americans. the Government is entitled to reason- committee. In closing, I want to thank and com- able compensation, which would typi- Mr. GLENN. Mr. President, I thank pliment my good friends, Representa- cally involve a share of the royalties my friends from Montana and West tive MORELLA and Senator BURNS, for from any successful commercialization Virginia for their clarification of this their great leadership on this legisla- efforts. So, both the Federal labs and matter. I look forward to continuing to tion. I also want to thank their staffs, their private sector partners in these work with them to strengthen our Na- the staffs for Congressmen BROWN and agreements stand to benefit from this tion’s science and math education in- TANNER, and Chairman PRESSLER’s legislation. frastructure. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1083 Mr. DOLE. I ask unanimous consent SUBMISSION OF CONCURRENT AND of the Veterans’ Committee and con- that the amendment be agreed to, the SENATE RESOLUTIONS tinues to play as ranking minority bill be deemed read a third time, The following concurrent resolutions member. He has been most helpful and passed, as amended, the motion to re- and Senate resolutions were read, and courteous to me. I always look forward consider be laid upon the table, and referred (or acted upon), as indicated: to working with him and the members that any colloquy and statements re- By Mr. ROBB: of the committee as we work together lating to the bill be placed at the ap- S. Res. 225. A resolution urging the Presi- to address the difficult questions we propriate place in the RECORD. dent to undertake measures to facilitate the face concerning veterans’ health care The PRESIDING OFFICER. Without immediate withdrawal of the Iranian Revolu- and the future structure of the Veter- objection, it is so ordered. tionary Guards from Bosnia-Herzegovina; to ans Health Administration.∑ So the amendment (No. 3463) was the Committee on Foreign Relations. ∑ Mr. ROCKEFELLER. Mr. President, agreed to. By Mr. INOUYE: as the ranking Democrat on the Com- S. Con. Res. 41. A concurrent resolution ex- So the bill (H.R. 2196), as amended, pressing the sense of the Congress that The mittee on Veterans’ Affairs, I am de- was passed. George Washington University is important lighted to join today with the chair- to the Nation and urging that the impor- man of the committee, Senator SIMP- f tance of the University be recognized and SON, in introducing legislation that celebrated through regular ceremonies; to would reform eligibility for VA health MESSAGES FROM THE HOUSE the Committee on the Judiciary. care. We are doing so at the request of At 10:25 a.m., a message from the f the four veterans service organiza- House of Representatives, delivered by STATEMENTS ON INTRODUCED tions—AMVETS, Disabled American Ms. Goetz, one of its reading clerks, an- BILLS AND JOINT RESOLUTIONS Veterans, Paralyzed Veterans of Amer- ica, and Veterans of Foreign Wars— nounced that the House has agreed to By Mr. SIMPSON (for himself and the following resolution (H. Res. 363) that develop the so-called independent Mr. ROCKEFELLER) (by request): that the Honorable CONSTANCE A. budget [IB]. S. 1563. A bill to amend title 38, Unit- While it was my policy, as chairman MORELLA, a Representative from the ed States Code, to revise and improve State of Maryland, be, and she is here- of the Committee on Veterans’ Affairs, eligibility for medical care and services to introduce legislation proposed by by, elected Speaker pro tempore during under that title, and for other pur- any absence of the Speaker, such au- the administration so that my col- poses; to the Committee on Veterans’ leagues and others with an interest thority to continue not later than Affairs. Tuesday, February 27, 1996. would have specific bills to which they VA HEALTH CARE LEGISLATION might direct their attention and com- f ∑ Mr. SIMPSON. Mr. President, I am ments, I have not done that for entities most pleased to join with the distin- other than the administration. Senator guished ranking member of the Com- MEASURE PLACED ON THE SIMPSON has followed a similar policy mittee on Veterans’ Affairs in intro- CALENDAR in his two terms as the committee’s ducing, by request, legislation intended chairman. However, in this instance, The following measure was read the to reform the operation of VA’s health we have agreed to introduce this legis- second time and placed on the cal- care program. This legislation places lation so that it might be before the endar: into statutory language the eligibility committee later in this session when S. 1561. A bill for the relief of the individ- reform proposal of the many veterans’ we take up the issue of the reform of uals whose employment at the White House service organizations who each year the current eligibility criteria for VA Travel Office was terminated. prepare and submit to the Congress the health care. so called independent budget. f In introducing administration-re- The successful operation of the VA quested legislation, we always reserved health care system has become one of the right to support the provisions of, INTRODUCTION OF BILLS AND the most pressing issues faced by the as well as any amendment to, such by- JOINT RESOLUTIONS Committee on Veterans’ Affairs and request legislation. Obviously, that The following bills and joint resolu- the Congress. Many observers feel that same policy applies to the bill we are tions were introduced, read the first changing the current priorities for introducing today. and second time by unanimous con- health care is the certain key to re- While I have been working with rep- sent, and referred as indicated: solving the problems faced by both VA resentatives of the IB group for many By Mr. SIMPSON (for himself and Mr. and the veterans it serves. The pro- months in an effort to translate the ROCKEFELLER) (by request): posal we introduce today is one of at group’s narrative description of pro- S. 1563. A bill to amend title 38, United least five different proposals before the posed eligibility reform into legislative States Code, to revise and improve eligi- Congress and introduction of this legis- language, I have done so without in bility for medical care and services under lation should be viewed as neither en- any way endorsing the result. I intend that title, and for other purposes; to the dorsement nor opposition to this spe- Committee on Veterans Affairs. to wait to support any specific eligi- By Mr. CRAIG: cific proposal. I join in introduction of bility reform legislation until after the S. 1564. A bill to amend the Small Rec- the legislation in order to put before committee has held hearings and the lamation Projects Act of 1956 to authorize the Congress both the proposal and the many issues connected with this sub- the Secretary of the Interior to provide loan ideas upon which it is based. I plan to ject have been explored in some depth guarantees for water supply, conservation, chair committee hearings on the issue and detail.∑ quality and transmission projects, and for later this spring. Both the committee’s other purposes; to the Committee on Energy hearings and legislative process will be By Mr. CRAIG: and Natural Resources. much improved if we can view this pro- S. 1564. A bill to amend the Small S. 1565. A bill to supplement the Small Reclamation Projects Act of 1956 to au- Reclamation Projects Act of 1956 and to sup- posal in legislative format. plement the Federal Reclamation laws by As a life member of the Veterans of thorize the Secretary of the Interior to providing for Federal cooperation in non- Foreign Wars, one of the organizations provide loan guarantees for water sup- Federal projects and for participation by that has prepared the proposal, I un- ply, conservation, quality and trans- non-Federal agencies in Federal projects; to derstand how important this issue is to mission projects, and for other pur- the Committee on Energy and Natural Re- America’s veterans, the Congress, to poses; to the Committee on Energy and sources. the Department of Veterans Affairs, Natural Resources. By Mr. HOLLINGS: and to the American people who must S. 1565. A bill to supplement the S. 1566. A bill to authorize the Secretary of Small Reclamation Projects Act of 1956 Transportation to issue a certificate of docu- fund whatever decision is reached by mentation with appropriate endorsement for the Congress. and to supplement the Federal Rec- employment in the coastwise trade for the I thank my fine personal friend from lamation laws by providing for Federal vessel Marsh Grass Too; to the Committee on West Virginia for the constructive and cooperation in non-Federal projects Commerce, Science, and Transportation. active role that he played as chairman and for participation by non-Federal S 1084 CONGRESSIONAL RECORD — SENATE February 7, 1996 agencies in Federal projects; to the introduced so that they could be re- bama [Mr. SHELBY] and the Senator Committee on Energy and Natural Re- viewed by the States and water users from North Carolina [Mr. FAIRCLOTH] sources. as well as by the administration and were added as cosponsors of S. 295, a SMALL RECLAMATION PROJECTS ACT OF 1956 other interested parties with sufficient bill to permit labor management coop- AMENDMENTS LEGISLATION time to permit Congress to consider erative efforts that improve America’s ∑ Mr. CRAIG. Mr. President, I intro- the concepts this session. While I am economic competitiveness to continue duce two measures to expand the use not prepared to announce a schedule of to thrive, and for other purposes. and availability of the Small Reclama- hearings at this time, I do want to in- S. 743 tion Projects Act of 1956. dicate to my colleagues that I do in- At the request of Mrs. HUTCHISON, the The Small Reclamation Projects Act tend to have the Subcommittee on For- name of the Senator from Pennsylva- has provided important benefits ests and Public Land Management of nia [Mr. SPECTER] was added as a co- throughout the reclamation West in the Committee on Energy and Natural sponsor of S. 743, a bill to amend the the 40 years since it was first estab- Resources conduct hearings early this Internal Revenue Code of 1986 to pro- lished. Over the past several years, year.∑ vide a tax credit for investment nec- there have been various discussions of essary to revitalize communities with- ways to expand the benefits of the pro- By Mr. HOLLINGS: in the United States, and for other pur- gram. These two measures incorporate S. 1566. A bill to authorize the Sec- poses. retary of Transportation to issue a cer- some of the suggestions that have been S. 837 tificate of documentation with appro- made. I want to emphasize that neither At the request of Mr. WARNER, the of the measures would affect ongoing priate endorsement for employment in names of the Senator from North Caro- the coastwise trade for the vessel projects. lina [Mr. FAIRCLOTH], the Senator from Marsh Grass Too; to the Committee on One of the measures deals with fi- Nevada [Mr. REID], and the Senator Commerce, Science, and Transpor- nancing. At the present time, the Sec- from Texas [Mrs. HUTCHISON] were retary is limited to using grants or tation. added as cosponsors of S. 837, a bill to loans in fulfilling the objectives of the TRADING PRIVILEGES LEGISLATION require the Secretary of the Treasury act. This legislation would expand that Mr. HOLLINGS. Mr. President, I am to mint coins in commemoration of the authority to include the use of loan introducing a bill today to direct that 250th anniversary of the birth of James guarantees as a way of stretching the the vessel Marsh Grass Too, hull identi- Madison. fication number AUKEV51139K690, be limited Federal resources. There has S. 881 accorded coastwise trading privileges been some discussion among those sug- At the request of Mr. PRYOR, the gesting this approach that the commit- and be issued a certificate of docu- name of the Senator from Texas [Mrs. mentation under section 12103 of title tee should consider expanding the pro- HUTCHISON] was added as a cosponsor of gram under the guarantees outside the 46, U.S. Code. S. 881, a bill to amend the Internal The Marsh Grass Too was recently 17 reclamation States to other States Revenue Code of 1986 to clarify provi- constructed in Australia and is a cata- and the territories. While I do not dis- sions relating to church pension bene- maran intended for use as a rec- pute that the advantages of the pro- fit plans, to modify certain provisions reational vessel. The vessel is 28 feet in gram could be useful in the territories relating to participants in such plans, length, capable of accommodating 12 and other States, I do not want to di- to reduce the complexity of and to people, and is self-propelled. lute the program so that is not able to The vessel is owned by Marsha Hass bring workable consistency to the ap- meet the very real needs in the arid of South Carolina. Ms. Hass would like plicable rules, to promote retirement West. Therefore, I have not included to utilize her vessel in the coastwise savings and benefits, and for other pur- such an expansion in this legislation. I trade and fisheries of the United poses. do agree that it is a subject worth dis- States. However, because the vessel S. 1028 cussing and it should be one of the sub- was built in a foreign shipyard, it does At the request of Mrs. KASSEBAUM, jects of our hearings. not meet the requirements for coast- the names of the Senator from Nevada The other measure is essentially a re- wise license endorsement in the United [Mr. BRYAN] and the Senator from Mis- write of the existing statute to expand States. The Marsh Grass Too is a cata- souri [Mr. BOND] were added as cospon- the purposes for which assistance can maran, a vessel U.S. shipbuilders do sors of S. 1028, a bill to provide in- be received from the Federal Govern- not normally build. This particular creased access to health care benefits, ment. Irrigation remains an authorized vessel is built of kevlar, a product of to provide increased portability of purpose, but it would no longer be a re- DuPont, and would be imported into health care benefits, to provide in- quired component. The purposes would the United States as a bare hull. All creased security of health care bene- not include the augmentation and motors, electronics, and accessories fits, to increase the purchasing power management of local water supplies, will be purchased and installed in the of individuals and small employers, conservation of water and energy, fish United States. Coastwise documenta- and for other purposes. and wildlife conservation, supple- tion is mandatory to enable the owner S. 1344 mental water for existing supplies, to use the vessel for its intended pur- At the request of Mr. HEFLIN, the water quality improvements, and flood pose. names of the Senator from South Da- control. There had been some discus- The owner of the Marsh Grass Too is kota [Mr. DASCHLE] and the Senator sion about the application of interest seeking a waiver of the existing law be- from Massachusetts [Mr. KENNEDY] on any allocable irrigation component, cause she wishes to use the vessel for were added as cosponsors of S. 1344, a and I would support discussing this in recreational charters. Her desired in- bill to repeal the requirement relating any hearings. For the moment, how- tentions for the vessel’s use will not to specific statutory authorization for ever, I have limited the application of adversely affect the coastwise trade in increases in judicial salaries, to pro- interest on any loans to those features U.S. waters. If she is granted this waiv- vide for automatic annual increases for which are currently reimbursable with er, it is her intention to comply fully judicial salaries, and for other pur- interest under reclamation law. with U.S. documentation and safety re- poses. I also believe that we should explore quirements. The purpose of the legisla- S. 1434 in our hearings exactly how to deal tion I am introducing is to allow the At the request of Mr. THOMAS, the with investments that further particu- Marsh Grass Too to engage in the coast- name of the Senator from Arizona [Mr. lar Federal objectives, such as fish and wise trade and the fisheries of the MCCAIN] was added as a cosponsor of S. wildlife enhancement or other features United States. 1434, a bill to amend the Congressional that are normally nonreimbursable. f Budget Act of 1974 to provide for a two- Mr. President, neither of these meas- year (biennial) budgeting cycle, and for ures should be viewed as a final prod- ADDITIONAL COSPONSORS other purposes. uct, and they are not mutually exclu- S. 295 S. 1505 sive. Given the timing, I thought it At the request of Mrs. KASSEBAUM, At the request of Mr. LOTT, the name would be useful to have both measures the names of the Senator from Ala- of the Senator from Nebraska [Mr. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1085

EXON] was added as a cosponsor of S. Whereas in 1825 The George Washington ton University. My experiences during 1505, a bill to reduce risk to public safe- University added a medical curriculum with my legal studies were largely respon- ty and the environment associated facilities that throughout the following sible for my decision to enter public with pipeline transportation of natural years have contributed greatly to the Na- life and run for elective office. I am tion, including conversion of its teaching in- gas and hazardous liquids, and for firmary into a military hospital during the grateful that I had the opportunities other purposes. Civil War; that come from studying and living in SENATE RESOLUTION 219 Whereas from that time forward, The the Nation’s capital as a young man. At the request of Mr. SPECTER, the George Washington University’s medical fa- It is with great pleasure that I sub- names of the Senator from Oklahoma cilities have provided treatment to patients mit today a resolution in celebration of ranging from kings and presidents to the in- [Mr. INHOFE], the Senator from New the 175th anniversary of the George digent and the homeless; York [Mr. MOYNIHAN], the Senator Washington University’s illustrious Whereas The George Washington Univer- role in our Nation’s academic and po- from South Carolina [Mr. HOLLINGS], sity has in its 175 years contributed to the and the Senator from Delaware [Mr. educational, cultural, and political enrich- litical lives. ROTH] were added as cosponsors of Sen- ment of the Nation through its synergistic f ate Resolution 219, a resolution des- associations with the Federal establishment SENATE RESOLUTION 225—REL- ignating March 25, 1996 as ‘‘Greek Inde- and its branches and agencies; ATIVE TO BOSNIA AND Whereas The George Washington Univer- pendence Day: A National Day of Cele- HERZEGOVINA bration of Greek and American Democ- sity is now the largest higher education in- stitution in the Nation’s capital, providing racy.’’ Mr. ROBB submitted the following educational services to some 19,000 under- resolution; which was referred to the AMENDMENT NO. 3225 graduate, graduate, and professional stu- Committee on Foreign Relations: At the request of Mr. SANTORUM the dents annually; S. RES. 225 names of the Senator from Rhode Is- Whereas The George Washington Univer- Whereas units of the Iranian Revolution- land [Mr. CHAFEE] and the Senator sity has rendered continuing and exemplary service to the country through the achieve- ary Guards, including military trainers and from Nevada [Mr. REID] were added as intelligence officers posing as humanitarian cosponsors of amendment No. 3225 pro- ment of its educational mission; and Whereas The George Washington Univer- relief officials, are still present in Bosnia- posed to S. 1541, a bill to extend, re- sity’s distinguished alumni hold prominent Herzegovina; form, and improve agricultural com- positions in business, law, government, med- Whereas the presence of the Revolutionary modity, trade, conservation, and other icine, and the arts and sciences: Now, there- Guards in Bosnia-Herzegovina violates the programs, and for other purposes. fore, be it peace accord initialed in Dayton, Ohio, on November 21, 1995 and the subsequent treaty At the request of Mr. LAUTENBERG his Resolved by the Senate (the House of Rep- signed in Paris, France, on December 14, name was added as a cosponsor of resentatives concurring), That it is the sense of the Congress that— 1995, which provide that all foreign volunteer amendment No. 3225 proposed to S. troops be withdrawn from Bosnia- 1541, supra. (1) The George Washington University has been and continues to be of exceptional im- Herzegovina within 30 days of the signing of At the request of Mr. MCCAIN his portance to the Nation; and the treaty, that is, January 13, 1996; Whereas the commanders of the NATO Im- name was added as a cosponsor of (2) the importance of The George Washing- plementation Force in Bosnia-Herzegovina amendment No. 3225 proposed to S. ton University should be recognized and cele- consider the activities of the Revolutionary 1541, supra. brated through regular ceremonies. Guards in Bosnia-Herzegovina, including AMENDMENT NO. 3277 Mr. INOUYE. Mr. President, I rise their espousal and promotion of extremist Is- At the request of Mr. HATCH the today to speak about my alma mater, lamic fundamentalism, to be one of the most names of the Senator from Iowa [Mr. the George Washington University, direct threats to the safety of United States HARKIN] and the Senator from Ken- chartered by the Congress of the Unit- forces in Bosnia-Herzegovina; tucky [Mr. MCCONNELL] were added as ed States 175 years ago, on February 9, Whereas the continued presence of the cosponsors of amendment No. 3277 pro- 1821. Revolutionary Guards in Bosnia-Herzegovina threatens long-term stability in the region; posed to S. 1541, a bill to extend, re- Those of us who have a George Wash- and form, and improve agricultural com- ington University degree—whether it Whereas the continuation of arms ship- modity, trade, conservation, and other be in law, medicine, engineering, edu- ments from Iran to Bosnia-Herzegovina programs, and for other purposes. cation, business, or international af- could preclude the United States from fulfill- AMENDMENT NO. 3442 fairs—have reason to celebrate this oc- ing its promise of providing military equip- ment and training to Bosnia-Herzegovina: At the request of Mr. KOHL the name casion. What was once merely a univer- sity of convenience usefully located in Now, therefore, be it of the Senator from Michigan [Mr. Resolved, That it is the sense of the Senate LEVIN] was added as a cosponsor of the Nation’s capital, has in our own that the President should— amendment No. 3442 proposed to S. time taken its place among the pre- (1) pursue all measures necessary, includ- 1541, a bill to extend, reform, and im- mier institutions of higher learning in ing substantial diplomatic pressure on prove agricultural commodity, trade, the country. Bosnia-Herzegovina, to expedite the with- conservation, and other programs, and Among this illustrious company, few drawal from Bosnia-Herzegovina, of all for- for other purposes. have had such unpromising beginnings. eign troops whose presence in Bosnia- Some universities come into being en- Herzegovina violates the peace accord ini- f tialed in Dayton, Ohio, on November 21, 1995, dowed by land grants or can boast a and the subsequent treaty signed in Paris, SENATE CONCURRENT RESOLU- distinguished founder like a John Har- TION 41—RELATIVE TO THE France, on December 14, 1995; vard or a Thomas Jefferson. The (2) bring in the United Nations a proposal GEORGE WASHINGTON UNIVER- George Washington University—or Co- to ban Member States from importing Ira- SITY lumbian College, as it was called when nian oil in order to pressure the Iranian Gov- Mr. INOUYE submitted the following the Congress chartered it in 1821—owed ernment into withdrawing the Iranian Revo- concurrent resolution; which was re- its origins to an obscure Baptist cler- lutionary Guards from Bosnia-Herzegovina; ferred to the Committee on the Judici- and gyman named Luther Rice. Today, 175 (3) establish within the NATO Implementa- ary: years later, it has achieved a name rec- tion Force in Bosnia-Herzegovina a multi- S. CON. RES. 41 ognition that is international in scope, national task force whose mission shall be, if Whereas on February 9, 1821, the United drawing students and scholars from all called upon, to locate and ensure the with- States Congress chartered Columbian Col- quarters of the globe. The university drawal of the Revolutionary Guards from lege (renamed The George Washington Uni- takes great pride in its distinguished Bosnia-Herzegovina. versity in 1904); graduates, among them: John Foster ∑ Mr. ROBB. Mr. President, under the Whereas President James Monroe signed Dulles, J. William Fulbright, Gen. leadership of Adm. Leighton Smith, The George Washington University’s charter Billy Mitchell, Gen. Colin Powell, Gen. the NATO Implementation Force has and attended the University’s historic first commencement ceremony; John Shalikashvili, and Jacqueline made marked progress in war-torn Whereas Congress adjourned to join Presi- Kennedy Onassis, to name a few. Bosnia and Herzegovina during the dent Monroe for The George Washington I had the privilege of receiving my first 2 months of Operation Joint En- University’s first commencement ceremony; law degree from the George Washing- deavor. S 1086 CONGRESSIONAL RECORD — SENATE February 7, 1996 As an aside, I should mention that, as Bosnia. This presence, combined with in Bosnia in defiance of the Dayton Ac- a member of all three national security Iran’s criticism of the Dayton Accord cord. The members of that inter- committees, including Armed Services, as unjust to the Bosnian Moslems, is national body must weigh the evidence Foreign Relations, and Intelligence, I cause for concern. Their presence and then take the appropriate action: am privy to significant amounts of sounds the same alarm bells that we placing an international embargo on classified information related to failed to heed a decade ago in Lebanon, all importation of Iranian oil until Bosnia. For the purpose of this open with tragic consequences. that nation recalls all of its military discussion, however, I will refer solely Those bells have tolled even louder in personnel stationed in Bosnia. to information widely available in the the last few days. According to the Third, it urges the administration to public record. New York Times, an American who establish an operational task force The news media report that much uses the names Kevin Holt and Isa from units of the Implementation has been accomplished so far in coming Abdullah Ali has been sighted in Force. Should diplomacy and sanctions to terms with the Dayton Peace Agree- Bosnia. U.S. troops have been ordered fail, it could be called upon to locate ment: to arrest him as a possible suspect in and ensure the withdrawal of the Ira- First, with only a few exceptions, the the 1983 bombing of the Marine bar- nian revolutionary guards from Bosnia. Bosnian Serbs and the Muslim-Croat racks in Beirut. As stated in the Dayton Accord, IFOR Federation have observed the cease- The Times also reports that the revo- troops are authorized to use necessary fire. lutionary guards have increased their force to ensure compliance. The mere Second, the warring parties have surveillance of U.S. troop activities presence of a force specifically honed stepped back and are today in substan- and are suspected of planning attacks to deal with the revolutionary guards tial compliance with the 4-kilometer against U.S. targets there. As a result, should give Iran both pause about ter- zone of separation. NATO forces were put on a state of rorist actions in Bosnia and further Third, the adversaries have removed alert on January 23. According to Sec- motivation to withdraw them. To pre- their heavy weapons to points that retary of Defense William Perry, ‘‘We clude the possibility of mission creep, pose no apparent of immediate threat will continue to maintain an alert.’’ any such task force would be deacti- to our forces. U.S. commanders consider many of vated immediately upon completion of Fourth, the locations of roughly a the remaining revolutionary guards as the operation. quarter of the estimated 3 million land intelligence agents and terrorists. What is at risk if we do not expel the mines that plague Bosnia have been There is speculation that they hope to Iranian revolutionary guards from identified. Still, this threat to security retaliate against the United States for Bosnia and Herzegovina? remains one of the most troublesome— its Middle East and antiterrorism poli- First and foremost, the lives of as witnessed by the fact that more cies and that they further hope to be American troops and other NATO sol- than a dozen IFOR troops have been able to sway the fragile balance of diers working to secure a lasting peace killed or wounded by mines so far. American public opinion on Operation in Bosnia. Fifth, freedom of movement along Joint Endeavor. At risk is the security of such neigh- Bosnia’s roads is returning to normal, When they believe the time is right, boring nations as Macedonia, Albania, which is a requisite step to allowing they may try to disrupt our operations and our NATO allies should the con- hundreds of thousands of refugees to and in turn, undermine the commit- flict spread further. return to their homes. ment of the North Atlantic Alliance to And at risk is an emerging security In short, the Implementation Force a peaceful settlement of the Balkans architecture for a post-cold-war Eu- has taken the necessary first steps for conflict. rope. Bosnia and Herzegovina to get back on That is why they must not be allowed Mr. President, I hope all of our col- its feet as a peaceful community in to remain. At this point, the presence league can support this resolution. To- this historically war-ravaged region of of Iran’s revolutionary guards is the gether, we must increase pressure on Europe. single most significant, near-term the Bosnian Government to expel all But, even with all of these NATO suc- threat to Operation Joint Endeavor foreign volunteer soldiers and in par- cesses, we must also recognize that all and to lasting peace on the Continent. ticular, those from Iran. Together, we has not gone according to plan. In fact, Landmines will no doubt continue to must persuade the Government of Iran there remains a clear danger to the take their toll on the peacekeeping that its continuing presence in Bosnia peacekeepers. force, but the revolutionary guards ap- and Herzegovina, as the United States Today, according to published news pear to have offensive, revolutionary leads the effort to bring that nation to reports, there remains a band of about intent and that poses a real danger to peace, must come to an end—and now.∑ 200 Iranian revolutionary guards in our troops. f northern Bosnia, many apparently in That is why, today, I have submitted the United States sector. This band of a Senate resolution that calls for the AMENDMENTS SUBMITTED well-trained soldiers in well-named in administration to take three distinct that they are Iran’s primary instru- actions: ment for exporting its Islamic revolu- First, it urges the administration to THE AGRICULTURAL MARKET tion. continue to exert strong diplomatic TRANSITION ACT OF 1996 For more than 3 years, according to pressure on Bosnia and Herzegovina to the Reuters News Service, these revo- comply with the provision of the Day- BROWN (AND BURNS) AMENDMENT lutionary guards have served primarily ton Accord that states ‘‘all foreign NO. 3443 as military advisers and commanders. Forces, including individual advisors, They reportedly draw their logistical freedom fighters, trainers, volunteers, Mr. BROWN (for himself and Mr. and other support from Iran’s Embassy and personnel from neighboring and BURNS) proposed an amendment to in Croatia. They have not only been other States, shall be withdrawn from amendment No. 3184 proposed by Mr. training a brigade of Bosnian Moslems the territory of Bosnia and LEAHY to the bill (S. 1541) to extend, re- in military doctrine and tactics, they Herzegovina.’’ We must make it clear form, and improve agricultural com- have also been teaching them the te- that, as Secretary of State Warren modity, trade, conservation, and other nets of radical, extremist Islamic fun- Christopher has said, neither military programs, and for other purposes; as damentalism, according to the Wash- equipment and training nor economic follows: ington Post. reconstruction assistance is forthcom- At the appropriate place, insert the follow- Moreover, their continued presence is ing until the Bosnian Moslem govern- ing: an indication of the Bosnian Moslem ment is ‘‘in compliance with the agree- SEC. . CLARIFICATION OF EFFECT OF RESOURCE PLANNING ON ALLOCATION OR USE government’s inability to comply with ment.’’ OF WATER. the provision in the Dayton Peace Second, it urges the President to (a) NATIONAL FOREST SYSTEM RESOURCE Agreement that mandates the expul- take to the United Nations the issue of PLANNING.—Section 6 of the Forest and sion of all foreign volunteer fighters in Iran’s revolutionary guards remaining Rangeland Renewable Resources Planning February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1087 Act of 1974 (16 U.S.C. 1604) is amended by add- On page 1–8, line 13, after ‘‘was considered (vii) in subsection (f), by striking ing at the end the following new subsection: planted’’, insert the following: ‘‘, including On page 1–55, strike lines 4 through 23 and ‘‘(n) LIMITATION ON AUTHORITY.—Nothing land on a farm that is owned or leased by a insert the following: in this section shall be construed to super- beginning farmer (as determined by the Sec- (3) OFFSET WITHIN AREA.—Further losses in sede, abrogate or otherwise impair any right retary) that the Secretary determines is nec- an area quota pool shall be offset by any or authority of a State to allocate quantities essary to establish a fair and equitable crop gains or profits from additional peanuts of water (including boundary waters). Noth- acreage base’’. (other than separate type pools established ing in this section shall be implemented, en- On page 1–11, line 19, strike under subsection (c)(2)(A) for Valencia pea- forced, or construed to allow any officer or ‘‘$17,000,000,000’’ and insert ‘‘$17,000,000’’. nuts produced in New Mexico) owned or con- agency of the United States to utilize di- On page 1–17, strike lines 14 through 17 and trolled by the Commodity Credit Corpora- rectly or indirectly the authorities estab- insert the following: tion in that area and sold for domestic edible lished under this section to impose any re- (ii) CONTRACT COMMODITIES.—Contract use, in accordance with regulations issued by quirement not imposed by the State which acreage planted to a contract commodity the Secretary. during the crop year may be hayed or grazed would supersede, abrogate, or otherwise im- (4) USE OF MARKETING ASSESSMENTS.—The without limitation. pair rights to the use of water resources allo- Secretary shall use funds collected under On page 1–18, line 7, before the period, in- subsection (g) (except funds attributable to cated under State law, interstate water com- sert the following: ‘‘, unless there is a his- handlers) to offset further losses in area pact, or Supreme Court decree, or held by tory of double cropping of a contract com- quota pools. The Secretary shall transfer to the United States for use by a State, its po- modity and fruits and vegetables’’. litical subdivisions, or its citizens. No water On page 1–26, strike lines 16 through 25 and the Treasury those funds collected under rights arise in the United States or any insert the following: subsection (g) and available for use under other person under the provisions of this (6) OILSEEDS.— this subsection that the Secretary deter- Act.’’ (A) SOYBEANS.—The loan rate for a mar- mines are not required to cover losses in (b) LAND USE PLANNING UNDER BUREAU OF keting assistance loan for soybeans shall area quota pools. LAND MANAGEMENT AUTHORITIES.—Section be— (5) CROSS COMPLIANCE.—Further losses in 202 of the Federal Land Policy and Manage- (i) not less than 85 percent of the simple area quota pools, other than losses incurred ment Act of 1976 (43 U.S.C. 1712) is amended average price received by producers of soy- as a result of transfers from additional loan by adding at the end the following new sub- beans, as determined by the Secretary, dur- pools to quota loan pools under section 358– section: ing the marketing years for the immediately 1(b)(8) of the Agricultural Adjustment Act of ‘‘(g) LIMITATION ON AUTHORITY.—Nothing in preceding 5 crops of soybeans, excluding the 1938 (7 U.S.C. 1358–1(b)(8)), shall be offset by this section shall be construed to supersede, year in which the average price was the any gains or profits from quota pools in abrogate, or otherwise impair any right or highest and the year in which the average other production areas (other than separate authority of a State to allocate quantities of price was the lowest in the period; but type pools established under subsection water (including boundary waters). Nothing (ii) not less than $4.92 or more than $5.26 (c)(2)(A) for Valencia peanuts produced in in this section shall be implemented, en- per bushel. New Mexico) in such manner as the Sec- forced, or construed to allow any officer or (B) SUNFLOWER SEED, CANOLA, RAPESEED, retary shall by regulation prescribe. agency of the United States to utilize di- SAFFLOWER, MUSTARD SEED, AND FLAXSEED.— (6) OFFSET GENERALLY.—If losses in an area rectly or indirectly the authorities estab- The loan rate for a marketing assistance quota pool have not been entirely offset lished under this section to impose any re- loan for sunflower seed, canola, rapeseed, under paragraph (3), further losses shall be quirement not imposed by the State which safflower, mustard seed, and flaxseed, indi- offset by any gains or profits from additional would supersede, abrogate, or otherwise im- vidually, shall be— peanuts (other than separate type pools es- pair rights to the use of water resources allo- (i) not less than 85 percent of the simple tablished under subsection (c)(2)(A) for Va- cated under State law, interstate compact, average price received by producers of sun- lencia peanuts produced in New Mexico) or Supreme Court decree, or held by the flower seed, individually, as determined by owned or controlled by the Commodity Cred- United States for use by a State, its political the Secretary, during the marketing years it Corporation and sold for domestic edible subdivisions, or its citizens. No water rights for the immediately preceding 5 crops of sun- use, in accordance with regulations issued by arise in the United States or any other per- flower seed, individually, excluding the year the Secretary. son under the provisions of this Act.’’ in which the average price was the highest (7) INCREASED ASSESSMENTS.—If use of the (c) AUTHORIZATION TO GRANT RIGHTS-OF- and the year in which the average price was On page 1–73, strike lines 12 through 14 and WAY.—Section 501 of the Federal Land Pol- the lowest in the period; but insert the following: icy and Management Act of 1976 (43 U.S.C. (ii) not less than $0.087 or more than $0.093 SEC. 108. MILK PROGRAM. 1761) is amended— per pound. (a) FLUID MILK PROMOTION PROGRAM EX- (1) in subsection (c)(1)— On page 1–50, between lines 21 and 22, insert TENSION.—Section 1999O(a) of the Food, Agri- (A) by striking subparagraph (B); the following: culture, Conservation, and Trade Act of 1990 (B) in subparagraph (D), by striking ‘‘origi- (5) REDUCTION FOR CERTAIN OFFERS FROM (7 U.S.C. 6614(a)) is amended by striking nally constructed’’; HANDLERS.—The Secretary shall reduce the ‘‘1996’’ and inserting ‘‘2002’’. (C) in subparagraph (G), by striking ‘‘1996’’ loan rate for quota peanuts by 5 percent for (b) CONSENT TO NORTHEAST INTERSTATE and inserting ‘‘1998’’; and any producer who had an offer from a han- DAIRY COMPACT.—Congress consents to the (D) by redesignating subparagraphs (C) dler, at the time and place of delivery, to Northeast Interstate Dairy through (G) as subparagraphs (B) through purchase quota peanuts from the farm on Strike title II and insert the following: (F), respectively; which the peanuts were produced at a price TITLE II—AGRICULTURAL TRADE equal to or greater than the applicable loan (2) in subsection (c)(3)(A), by striking the Subtitle A—Amendments to Agricultural second and third sentences; and rate for quota peanuts. On page 1–62, strike lines 4 and 5 and insert Trade Development and Assistance Act of (3) by adding at the end the following new the following: 1954 and Related Statutes subsection: through 2002 marketing years’’; SEC. 201. FOOD AID TO DEVELOPING COUNTRIES. ‘‘(e) EFFECT ON VALID EXISTING RIGHTS.— (v) in subsection (b)(1), by adding at the (a) IN GENERAL.—Section 3 of the Agricul- Notwithstanding any provision of this sec- end the following: tural Trade Development and Assistance Act tion, no Federal agency may require, as a ‘‘(D) CERTAIN FARMS INELIGIBLE FOR of 1954 (7 U.S.C. 1691a) is amended to read as condition of, or in connection with, the QUOTA.—Effective beginning with the 1997 follows: granting, issuance, or renewal of a right-of- marketing year, the Secretary shall not es- ‘‘SEC. 3. FOOD AID TO DEVELOPING COUNTRIES. way under this section, a restriction or limi- tablish a farm poundage quota under sub- ‘‘(a) POLICY.—In light of the Uruguay tation on the operation, use, repair, or re- paragraph (A) for a farm owned or controlled Round Agreement on Agriculture and the placement of an existing water supply facil- by— Ministerial Decision on Measures Concerning ity which is located on or above National ‘‘(i) a municipality, airport authority, the Possible Negative Effects of the Reform Forest lands or the exercise and use of exist- school, college, refuge, or other public entity Program on Least-Developed and Net-Food ing water rights, if such condition would re- (other than a university used for research Importing Developing Countries, the United duce the quantity of water which would oth- purposes); or States reaffirms the commitment of the erwise be made available for use by the ‘‘(ii) a person who is not a producer and re- United States to providing food aid to devel- owner of such facility or water rights, or sides in another State.’’; oping countries. cause an increase in the cost of the water (vi) in subsection (b)(2), by adding at the ‘‘(b) SENSE OF CONGRESS.—It is the sense of supply provided from such facility.’’ end the following: Congress that— ‘‘(E) TRANSFER OF QUOTA FROM INELIGIBLE ‘‘(1) the President should initiate consulta- LUGAR AMENDMENT NO. 3444 FARMS.—Any farm poundage quota held at tions with other donor nations to consider the end of the 1996 marketing year by a farm appropriate levels of food aid commitments Mr. LUGAR proposed an amendment described in paragraph (1)(D) shall be allo- to meet the legitimate needs of developing to amendment No. 3184 proposed by Mr. cated to other farms in the same State on countries; and LEAHY to the bill S. 1541, supra; as fol- such basis as the Secretary may by regula- ‘‘(2) the United States should increase its lows: tion prescribe.’’; and contribution of bona fide food assistance to S 1088 CONGRESSIONAL RECORD — SENATE February 7, 1996 developing countries consistent with the program, consistent with requirements es- (2) in subsection (e)— Agreement on Agriculture.’’. tablished by the Secretary. (A) in the subsection heading, by striking (b) CONFORMING AMENDMENT.—Section 411 ‘‘(B) AGRICULTURAL TRADE ORGANIZATION.— ‘‘PRIVATE VOLUNTARY ORGANIZATIONS AND of the Uruguay Round Agreements Act (19 The project or program shall be designed and COOPERATIVES’’ and inserting ‘‘ELIGIBLE OR- U.S.C. 3611) is amended by striking sub- carried out by the agricultural trade organi- GANIZATIONS’’; section (e). zation. (B) in paragraph (1)— SEC. 202. TRADE AND DEVELOPMENT ASSIST- ‘‘(C) ADDITIONAL REQUIREMENTS.—An agri- (i) by striking ‘‘$13,500,000’’ and inserting ANCE. cultural market development plan shall con- ‘‘$28,000,000’’; and Section 101 of the Agricultural Trade De- tain such additional requirements as are de- (ii) by striking ‘‘private voluntary organi- velopment and Assistance Act of 1954 (7 termined necessary by the Secretary. zations and cooperatives to assist such orga- U.S.C. 1701) is amended— ‘‘(4) ADMINISTRATIVE COSTS.— nizations and cooperatives’’ and inserting (1) by striking ‘‘developing countries’’ each ‘‘(A) IN GENERAL.—The Secretary shall ‘‘eligible organizations described in sub- place it appears and inserting ‘‘developing make funds made available to carry out this section (d), to assist the organizations’’; countries and private entities’’; and title available for the reimbursement of ad- (C) by striking paragraph (2) and inserting (2) in subsection (b), by inserting ‘‘and en- ministrative expenses incurred by agricul- the following: tities’’ before the period at the end. tural trade organizations in developing, im- ‘‘(2) REQUEST FOR FUNDS.—To receive funds SEC. 203. AGREEMENTS REGARDING ELIGIBLE plementing, and administering agricultural made available under paragraph (1), a pri- COUNTRIES AND PRIVATE ENTITIES. market development plans, subject to such vate voluntary organization or cooperative Section 102 of the Agricultural Trade De- requirements and in such amounts as the shall submit a request for the funds that is velopment and Assistance Act of 1954 (7 Secretary considers appropriate. subject to approval by the Administrator.’’; U.S.C. 1702) is amended to read as follows: ‘‘(B) DURATION.—The funds shall be made and ‘‘SEC. 102. AGREEMENTS REGARDING ELIGIBLE available to agricultural trade organizations (D) in paragraph (3), by striking ‘‘a private COUNTRIES AND PRIVATE ENTITIES. for the duration of the applicable agricul- voluntary organization or cooperative, the ‘‘(a) PRIORITY.—In selecting agreements to tural market development plan. Administrator may provide assistance to be entered into under this title, the Sec- ‘‘(C) TERMINATION.—The Secretary may that organization or cooperative’’ and insert- retary shall give priority to agreements pro- terminate assistance made available under ing ‘‘an eligible organization, the Adminis- viding for the export of agricultural com- this subsection if the agricultural trade or- trator may provide assistance to the eligible modities to developing countries that— ganization is not carrying out the approved organization’’. ‘‘(1) have the demonstrated potential to be- agricultural market development plan.’’. (b) CONFORMING AMENDMENTS.—Section 207 come commercial markets for competitively SEC. 204. TERMS AND CONDITIONS OF SALES. of the Agricultural Trade Development and priced United States agricultural commod- Section 103 of the Agricultural Trade De- Assistance Act of 1954 (7 U.S.C. 1726a) is ities; velopment and Assistance Act of 1954 (7 amended— ‘‘(2) are undertaking measures for eco- U.S.C. 1703) is amended— (1) in subsection (a), by striking ‘‘a private nomic development purposes to improve food (1) in subsection (a)(2)(A)— voluntary organization or cooperative’’ and security and agricultural development, alle- (A) by striking ‘‘a recipient country to inserting ‘‘an eligible organization’’; and viate poverty, and promote broad-based equi- make’’; and (2) in subsection (b)— table and sustainable development; and (B) by striking ‘‘such country’’ and insert- (A) in paragraph (1), by striking ‘‘private ‘‘(3) demonstrate the greatest need for ing ‘‘the appropriate country’’; voluntary organizations and cooperatives’’ food. (2) in subsection (c), by striking ‘‘less than and inserting ‘‘eligible organizations’’; and ‘‘(b) PRIVATE ENTITIES.—An agreement en- 10 nor’’; and (B) in paragraph (2), by striking ‘‘organiza- tered into under this title with a private en- (3) in subsection (d)— tions, cooperatives,’’ and inserting ‘‘eligible tity shall require such security, or such (A) by striking ‘‘recipient country’’ and in- organizations’’. other provisions as the Secretary determines serting ‘‘developing country or private en- necessary, to provide reasonable and ade- tity’’; and SEC. 208. GENERATION AND USE OF FOREIGN CURRENCIES. quate assurance of repayment of the financ- (B) by striking ‘‘7’’ and inserting ‘‘5’’. ing extended to the private entity. Section 203 of the Agricultural Trade De- SEC. 205. USE OF LOCAL CURRENCY PAYMENT. velopment and Assistance Act of 1954 (7 ‘‘(c) AGRICULTURAL MARKET DEVELOPMENT Section 104 of the Agricultural Trade De- U.S.C. 1723) is amended— PLAN.— velopment and Assistance Act of 1954 (7 (1) in subsection (a), by inserting ‘‘, or in a ‘‘(1) DEFINITION OF AGRICULTURAL TRADE OR- U.S.C. 1704) is amended— country in the same region,’’ after ‘‘in the GANIZATION.—In this subsection, the term (1) in subsection (a), by striking ‘‘recipient recipient country’’; ‘agricultural trade organization’ means a country’’ and inserting ‘‘developing country (2) in subsection (b)— United States agricultural trade organiza- or private entity’’; and tion that promotes the export and sale of a (2) in subsection (c)— (A) by inserting ‘‘or in countries in the United States agricultural commodity and (A) by striking ‘‘recipient country’’ each same region,’’ after ‘‘in recipient coun- that does not stand to profit directly from place it appears and inserting ‘‘appropriate tries,’’; and the specific sale of the commodity. developing country’’; and (B) by striking ‘‘10 percent’’ and inserting ‘‘(2) PLAN.—The Secretary shall consider a (B) in paragraph (3), by striking ‘‘recipient ‘‘15 percent’’; developing country for which an agricultural countries’’ and inserting ‘‘appropriate devel- (3) in subsection (c), by inserting ‘‘or in a market development plan has been approved oping countries’’. country in the same region,’’ after ‘‘in the recipient country,’’; and under this subsection to have the dem- SEC. 206. VALUE-ADDED FOODS. onstrated potential to become a commercial Section 105 of the Agricultural Trade De- (4) in subsection (d)(2), by inserting ‘‘or market for competitively priced United velopment and Assistance Act of 1954 (7 within a country in the same region’’ after States agricultural commodities for the pur- U.S.C. 1705) is repealed. ‘‘within the recipient country’’. pose of granting a priority under subsection SEC. 207. ELIGIBLE ORGANIZATIONS. SEC. 209. GENERAL LEVELS OF ASSISTANCE UNDER PUBLIC LAW 480. (a). (a) IN GENERAL.—Section 202 of the Agri- ‘‘(3) REQUIREMENTS.— cultural Trade Development and Assistance Section 204(a) of the Agricultural Trade ‘‘(A) IN GENERAL.—To be approved by the Act of 1954 (7 U.S.C. 1722) is amended— Development and Assistance Act of 1954 (7 Secretary, an agricultural market develop- (1) by striking subsection (b) and inserting U.S.C. 1724(a)) is amended— ment plan shall— the following: (1) in paragraph (1), by striking ‘‘amount ‘‘(i) be submitted by a developing country ‘‘(b) NONEMERGENCY ASSISTANCE.— that’’ and all that follows through the period or private entity, in conjunction with an ag- ‘‘(1) IN GENERAL.—The Administrator may at the end and inserting ‘‘amount that for ricultural trade organization; provide agricultural commodities for non- each of fiscal years 1996 through 2002 is not ‘‘(ii) describe a project or program for the emergency assistance under this title less than 2,025,000 metric tons.’’; development and expansion of a United through eligible organizations (as described (2) in paragraph (2), by striking ‘‘amount States agricultural commodity market in a in subsection (d)) that have entered into an that’’ and all that follows through the period developing country, and the economic devel- agreement with the Administrator to use the at the end and inserting ‘‘amount that for opment of the country, using funds derived commodities in accordance with this title. each of fiscal years 1996 through 2002 is not from the sale of agricultural commodities re- ‘‘(2) LIMITATION.—The Administrator may less than 1,550,000 metric tons.’’; and ceived under an agreement described in sec- not deny a request for funds submitted under (3) in paragraph (3), by adding at the end tion 101; this subsection because the program for the following: ‘‘No waiver shall be made be- ‘‘(iii) provide for any matching funds that which the funds are requested— fore the beginning of the applicable fiscal are required by the Secretary for the project ‘‘(A) would be carried out by the eligible year.’’. or program; organization in a foreign country in which SEC. 210. FOOD AID CONSULTATIVE GROUP. ‘‘(iv) provide for a results-oriented means the Agency for International Development Section 205 of the Agricultural Trade De- of measuring the success of the project or does not have a mission, office, or other pres- velopment and Assistance Act of 1954 (7 program; and ence; or U.S.C. 1725) is amended— ‘‘(v) provide for graduation to the use of ‘‘(B) is not part of a development plan for (1) in subsection (a), by striking ‘‘private non-Federal funds to carry out the project or the country prepared by the Agency.’’; and voluntary organizations, cooperatives and February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1089 indigenous non-governmental organizations’’ SEC. 214. AGREEMENTS. SEC. 217. EXPIRATION DATE. and inserting ‘‘eligible organizations de- Section 404 of the Agricultural Trade De- Section 408 of the Agricultural Trade De- scribed in section 202(d)(1)’’; velopment and Assistance Act of 1954 (7 velopment and Assistance Act of 1954 (7 (2) in subsection (b)— U.S.C. 1734) is amended— U.S.C. 1736b) is amended by striking ‘‘1995’’ (A) in paragraph (2), by striking ‘‘for Inter- (1) in subsection (a), by inserting ‘‘with and inserting ‘‘2002’’. national Affairs and Commodity Programs’’ foreign countries’’ after ‘‘Before entering SEC. 218. REGULATIONS. into agreements’’; and inserting ‘‘of Agriculture for Farm and Section 409 of the Agricultural Trade De- (2) in subsection (b)(2)— Foreign Agricultural Services’’; velopment and Assistance Act of 1954 (7 (A) by inserting ‘‘with foreign countries’’ (B) in paragraph (4), by striking ‘‘and’’ at U.S.C. 1736c) is repealed. the end; after ‘‘with respect to agreements entered (C) in paragraph (5), by striking the period into’’; and SEC. 219. INDEPENDENT EVALUATION OF PRO- at the end and inserting ‘‘; and’’; and (B) by inserting before the semicolon at GRAMS. (D) by adding at the end the following: the end the following: ‘‘and broad-based eco- Section 410 of the Agricultural Trade De- ‘‘(6) representatives from agricultural pro- nomic growth’’; and velopment and Assistance Act of 1954 (7 ducer groups in the United States.’’; (3) in subsection (c), by striking paragraph U.S.C. 1736d) is repealed. (3) in the second sentence of subsection (d), (1) and inserting the following: SEC. 220. AUTHORIZATION OF APPROPRIATIONS. by inserting ‘‘(but at least twice per year)’’ ‘‘(1) IN GENERAL.—Agreements to provide Section 412 of the Agricultural Trade De- after ‘‘when appropriate’’; and assistance on a multi-year basis to recipient velopment and Assistance Act of 1954 (7 (4) in subsection (f), by striking ‘‘1995’’ and countries or to eligible organizations— U.S.C. 1736f) is amended— inserting ‘‘2002’’. ‘‘(A) may be made available under titles I (1) by striking subsections (b) and (c) and SEC. 211. SUPPORT OF NONGOVERNMENTAL OR- and III; and inserting the following: GANIZATIONS. ‘‘(B) shall be made available under title ‘‘(b) TRANSFER OF FUNDS.—Notwithstand- (a) IN GENERAL.—Section 306(b) of the Agri- II.’’. ing any other provision of law, the President cultural Trade Development and Assistance SEC. 215. USE OF COMMODITY CREDIT CORPORA- may direct that— Act of 1954 (7 U.S.C. 1727e(b)) is amended— TION. ‘‘(1) up to 15 percent of the funds available (1) in the subsection heading, by striking Section 406 of the Agricultural Trade De- for any fiscal year for carrying out any title ‘‘INDIGENOUS NON-GOVERNMENTAL’’ and in- velopment and Assistance Act of 1954 (7 of this Act be used to carry out any other serting ‘‘NONGOVERNMENTAL’’; and U.S.C. 1736) is amended— title of this Act; and (2) by striking ‘‘utilization of indigenous’’ (1) in subsection (a), by striking ‘‘shall’’ ‘‘(2) any funds available for title III be used and inserting ‘‘utilization of’’. and inserting ‘‘may’’; and to carry out title II.’’; and (b) CONFORMING AMENDMENT.—Section 402 (2) in subsection (b)— (2) by redesignating subsections (d) and (e) of the Agricultural Trade Development and (A) by inserting ‘‘titles II and III of’’ after as subsections (c) and (d), respectively. Assistance Act of 1954 (7 U.S.C. 1732) is ‘‘commodities made available under’’; and SEC. 221. COORDINATION OF FOREIGN ASSIST- amended by striking paragraph (6) and in- (B) by striking paragraph (4) and inserting ANCE PROGRAMS. serting the following: the following: Section 413 of the Agricultural Trade De- ‘‘(6) NONGOVERNMENTAL ORGANIZATION.— ‘‘(4) the vessel freight charges from United velopment and Assistance Act of 1954 (7 The term ‘nongovernmental organization’ States ports or designated Canadian trans- U.S.C. 1736g) is amended by inserting ‘‘title means an organization that works at the shipment ports, as determined by the Sec- III of’’ before ‘‘this Act’’ each place it ap- local level to solve development problems in retary, to designated ports of entry abroad;’’. pears. a foreign country in which the organization SEC. 216. ADMINISTRATIVE PROVISIONS. is located, except that the term does not in- SEC. 222. MICRONUTRIENT FORTIFICATION Section 407 of the Agricultural Trade De- PILOT PROGRAM. clude an organization that is primarily an velopment and Assistance Act of 1954 (7 Title IV of the Agricultural Trade Develop- agency or instrumentality of the govern- U.S.C. 1736a) is amended— ment and Assistance Act of 1954 (7 U.S.C. 1731 ment of the foreign country.’’. (1) in subsection (a)— et seq.) is amended by adding at the end the SEC. 212. COMMODITY DETERMINATIONS. (A) in paragraph(1), by inserting ‘‘or pri- following: Section 401 of the Agricultural Trade De- vate entity that enters into an agreement velopment and Assistance Act of 1954 (7 ‘‘SEC. 415. MICRONUTRIENT FORTIFICATION under title I’’ after ‘‘importing country’’; PILOT PROGRAM. U.S.C. 1731) is amended— and ‘‘(a) IN GENERAL.—Not later than Septem- (1) by striking subsections (a) through (d) (B) in paragraph (2), by adding at the end ber 30, 1997, the Secretary, in consultation and inserting the following: the following: ‘‘Resulting contracts may con- with the Administrator, shall establish a ‘‘(a) AVAILABILITY OF COMMODITIES.—No ag- tain such terms and conditions as the Sec- micronutrient fortification pilot program ricultural commodity shall be available for retary determines are necessary and appro- under this Act. The purposes of the program disposition under this Act if the Secretary priate.’’; shall be to— determines that the disposition would reduce (2) in subsection (c)— ‘‘(1) assist developing countries in correct- the domestic supply of the commodity below (A) in paragraph (1)(A), by inserting ‘‘im- ing micronutrient dietary deficiencies the supply needed to meet domestic require- porter or’’ before ‘‘importing country’’; and among segments of the populations of the ments and provide adequate carryover (as de- (B) in paragraph (2)(A), by inserting ‘‘im- countries; and termined by the Secretary), unless the Sec- porter or’’ before ‘‘importing country’’; ‘‘(2) encourage the development of tech- retary determines that some part of the sup- (3) in subsection (d)— nologies for the fortification of whole grains ply should be used to carry out urgent hu- (A) by striking paragraph (2) and inserting and other commodities that are readily manitarian purposes under this Act.’’; the following: transferable to developing countries. (2) by redesignating subsections (e) and (f) ‘‘(2) FREIGHT PROCUREMENT.—Notwith- ‘‘(b) SELECTION OF PARTICIPATING COUN- as subsections (b) and (c), respectively; and standing the Federal Property and Adminis- TRIES.—From among the countries eligible (3) in subsection (c) (as so redesignated), by trative Services Act of 1949 (40 U.S.C. 471 et for assistance under this Act, the Secretary striking ‘‘(e)(1)’’ and inserting ‘‘(b)(1)’’. seq.) or other similar provisions of law relat- may select not more than 5 developing coun- SEC. 213. GENERAL PROVISIONS. ing to the making or performance of Federal tries to participate in the pilot program. Section 403 of the Agricultural Trade De- Government contracts, ocean transportation velopment and Assistance Act of 1954 (7 under titles II and III may be procured on ‘‘(c) FORTIFICATION.—Under the pilot pro- U.S.C. 1733) is amended— the basis of such full and open competitive gram, whole grains and other commodities (1) in subsection (b)— procedures. Resulting contracts may contain made available to a developing country se- (A) in the subsection heading, by striking such terms and conditions, as the Adminis- lected to participate in the pilot program may be fortified with 1 or more ‘‘CONSULTATIONS’’ and inserting ‘‘IMPACT ON trator determines are necessary and appro- micronutrients (including vitamin A, iron, LOCAL FARMERS AND ECONOMY’’; and priate.’’; and (B) by striking ‘‘consult with’’ and all that (B) by striking paragraph (4); and iodine) with respect to which a substan- follows through ‘‘other donor organizations (4) in subsection (g)(2)— tial portion of the population in the country to’’; (A) in subparagraph (B), by striking ‘‘and’’ are deficient. The commodity may be for- (2) in subsection (c)— at the end; tified in the United States or in the develop- (A) by striking ‘‘from countries’’; and (B) in subparagraph (C), by striking the pe- ing country. (B) by striking ‘‘for use’’ and inserting ‘‘or riod at the end and inserting ‘‘; and’’; and ‘‘(d) TERMINATION OF AUTHORITY.—The au- use’’; (C) by adding at the end the following: thority to carry out the pilot program estab- (3) in subsection (f)— ‘‘(D) an assessment of the progress towards lished under this section shall terminate on (A) by inserting ‘‘or private entities, as ap- achieving food security in each country re- September 30, 2002.’’. propriate,’’ after ‘‘from countries’’; and ceiving food assistance from the United SEC. 223. USE OF CERTAIN LOCAL CURRENCY. (B) by inserting ‘‘or private entities’’ after States Government, with special emphasis Title IV of the Agricultural Trade Develop- ‘‘such countries’’; and on the nutritional status of the poorest pop- ment and Assistance Act of 1954 (7 U.S.C. 1731 (4) in subsection (i)(2), by striking subpara- ulations in each country.’’; and et seq.) (as amended by section 222) is further graph (C). (5) by striking subsection (h). amended by adding at the end the following: S 1090 CONGRESSIONAL RECORD — SENATE February 7, 1996

‘‘SEC. 416. USE OF CERTAIN LOCAL CURRENCY. ‘‘(c) RELEASE OF ELIGIBLE COMMODITIES.— gible commodities needed to meet emer- ‘‘Local currency payments received by the ‘‘(1) EMERGENCY FOOD ASSISTANCE.—Not- gency situations; and United States pursuant to agreements en- withstanding any other law, eligible com- ‘‘(2) for the periodic rotation or replace- tered into under title I (as in effect on No- modities designated or acquired for the re- ment of stocks of eligible commodities in the vember 27, 1990) may be utilized by the Sec- serve established under this section may be reserve to avoid spoilage and deterioration retary in accordance with section 108 (as in released by the Secretary to provide, on a of the commodities. effect on November 27, 1990).’’. donation or sale basis, emergency food as- ‘‘(f) TREATMENT OF RESERVE UNDER OTHER SEC. 224. LEVELS OF ASSISTANCE UNDER FARM- sistance to developing countries at such time LAW.—Eligible commodities in the reserve ER-TO-FARMER PROGRAM. as the domestic supply of the eligible com- established under this section shall not be— Section 501 of the Agricultural Trade De- modities is so limited that quantities of the ‘‘(1) considered a part of the total domestic velopment and Assistance Act of 1954 (7 eligible commodities cannot be made avail- supply (including carryover) for the purpose U.S.C. 1737) is amended— able for disposition under the Agricultural of subsection (c) or for the purpose of admin- (1) in subsection (a)— Trade Development and Assistance Act of istering the Agricultural Trade Development (A) by redesignating paragraphs (4) 1954 (7 U.S.C. 1691 et seq.) (other than disposi- and Assistance Act of 1954 (7 U.S.C. 1691 et through (6) as paragraphs (5) through (7), re- tion for urgent humanitarian purposes under seq.); and spectively; and section 401 of the Act (7 U.S.C. 1731)). ‘‘(2) subject to any quantitative limitation (B) by inserting after paragraph (3) the fol- ‘‘(2) PROVISION OF URGENT HUMANITARIAN on exports that may be imposed under sec- lowing: RELIEF.— tion 7 of the Export Administration Act of ‘‘(4) assist the travel of farmers and other ‘‘(A) IN GENERAL.—Notwithstanding para- 1979 (50 U.S.C. App. 2406). agricultural professionals from developing graph (1), eligible commodities may be re- ‘‘(g) USE OF COMMODITY CREDIT CORPORA- countries, middle income countries, and leased from the reserve established under TION.— emerging democracies to the United States this section for any fiscal year, without re- ‘‘(1) IN GENERAL.—Subject to the limita- for educational purposes consistent with the gard to the availability of domestic supply, tions provided in this section, the funds, fa- objectives of this section;’’; and for use under title II of the Agricultural cilities, and authorities of the Commodity (2) in subsection (c), by striking ‘‘1991 Trade Development Assistance Act of 1954 (7 Credit Corporation shall be used by the Sec- through 1995’’ and inserting ‘‘1996 through U.S.C. 1721 et seq.) in providing urgent hu- retary in carrying out this section, except 2002’’. manitarian relief in any developing country that any restriction applicable to the acqui- SEC. 225. FOOD SECURITY COMMODITY RESERVE. suffering a major disaster (as determined by sition, storage, or disposition of eligible (a) IN GENERAL.—Title III of the Agricul- the Secretary) in accordance with this para- commodities owned or controlled by the tural Act of 1980 (7 U.S.C. 1736f–1 et seq.) is graph. Commodity Credit Corporation shall not amended to read as follows: ‘‘(B) EXCEPTIONAL NEED.—If the eligible apply. ‘‘TITLE III—FOOD SECURITY COMMODITY commodities needed for relief cannot be ‘‘(2) REIMBURSEMENT.— RESERVE made available for relief in a timely manner ‘‘(A) IN GENERAL.—The Commodity Credit ‘‘SEC. 301. SHORT TITLE. under the normal means of obtaining eligible Corporation shall be reimbursed for the re- ‘‘This title may be cited as the ‘Food Secu- commodities for food assistance because of lease of eligible commodities from funds rity Commodity Reserve Act of 1996’. circumstances of unanticipated and excep- made available to carry out the Agricultural ‘‘SEC. 302. ESTABLISHMENT OF COMMODITY RE- tional need, up to 500,000 metric tons of eligi- Trade Development and Assistance Act of SERVE. ble commodities may be released under sub- 1954 (7 U.S.C. 1691 et seq.). ‘‘(a) IN GENERAL.—To provide for a reserve paragraph (A). ‘‘(B) BASIS FOR REIMBURSEMENT.—The reim- solely to meet emergency humanitarian food ‘‘(C) FUNDS.—If the Secretary certifies that bursement shall be made on the basis of the needs in developing countries, the Secretary the funds made available for a fiscal year to lesser of— of Agriculture (referred to in this title as the carry out title II of the Agricultural Trade ‘‘(i) the actual costs incurred by the Com- ‘Secretary’) shall establish a reserve stock of Development and Assistance Act of 1954 (7 modity Credit Corporation with respect to wheat, rice, corn, or sorghum, or any com- U.S.C. 1721 et seq.) are not less than the the eligible commodity; or bination of the commodities, totalling not funds made available for the previous fiscal ‘‘(ii) the export market price of the eligible more than 4,000,000 metric tons for use as de- year, up to 1,000,000 metric tons of eligible commodity (as determined by the Secretary) scribed in subsection (c). commodities may be released under subpara- as of the time the eligible commodity is re- ‘‘(b) COMMODITIES IN RESERVE.— graph (A). leased from the reserve for the purpose. ‘‘(1) IN GENERAL.—The reserve established ‘‘(D) WAIVER OF MINIMUM TONNAGE REQUIRE- ‘‘(C) SOURCE OF FUNDS.—The reimburse- under this section shall consist of— MENTS.—Nothing in this paragraph shall re- ment may be made from funds appropriated ‘‘(A) wheat in the reserve established under quire the exercise of the waiver under sec- for the purpose of reimbursement in subse- the Food Security Wheat Reserve Act of 1980 tion 204(a)(3) of the Agricultural Trade De- quent fiscal years. as of the effective date of the Agricultural velopment and Assistance Act of 1954 (7 ‘‘(h) FINALITY OF DETERMINATION.—Any de- Reform and Improvement Act of 1996; U.S.C. 5624(a)(3)) as a prerequisite for the re- termination by the Secretary under this sec- ‘‘(B) wheat, rice, corn, and sorghum (re- lease of eligible commodities under this tion shall be final. ferred to in this section as ‘eligible commod- paragraph. ‘‘(i) TERMINATION OF AUTHORITY.— ities’) acquired in accordance with paragraph ‘‘(E) LIMITATION.—The quantity of eligible ‘‘(1) IN GENERAL.—The authority to replen- (2) to replenish eligible commodities released commodities released under this paragraph ish stocks of eligible commodities to main- from the reserve, including wheat to replen- may not exceed 1,000,000 metric tons in any tain the reserve established under this sec- ish wheat released from the reserve estab- fiscal year. tion shall terminate on September 30, 2002. lished under the Food Security Wheat Re- ‘‘(3) PROCESSING OF ELIGIBLE COMMOD- ‘‘(2) DISPOSAL OF ELIGIBLE COMMODITIES.— serve Act of 1980 but not replenished as of ITIES.—Eligible commodities that are re- Eligible commodities remaining in the re- the effective date of the Agricultural Reform leased from the reserve established under serve after September 30, 2002, shall be dis- and Improvement Act of 1996; and this section may be processed in the United posed of by release for use in providing for ‘‘(C) such rice, corn, and sorghum as the States and shipped to a developing country emergency humanitarian food needs in de- Secretary may, at such time and in such when conditions in the recipient country re- veloping countries as provided in this sec- manner as the Secretary determines appro- quire processing. tion.’’. priate, acquire as a result of exchanging an ‘‘(4) EXCHANGE.—The Secretary may ex- (b) CONFORMING AMENDMENT.—Section equivalent value of wheat in the reserve es- change an eligible commodity for another 208(d) of the Agriculture Trade Suspension tablished under this section. United States commodity of equal value, in- Adjustment Act of 1980 (7 U.S.C. 4001(d)) is ‘‘(2) REPLENISHMENT OF RESERVE.— cluding powdered milk, pulses, and vegetable amended by striking paragraph (2) and in- ‘‘(A) IN GENERAL.—Subject to subsection oil. serting the following: (i), commodities of equivalent value to eligi- ‘‘(d) USE OF ELIGIBLE COMMODITIES.—Eligi- ‘‘(2) APPLICABILITY OF CERTAIN PROVI- ble commodities in the reserve established ble commodities that are released from the SIONS.—Subsections (c), (d), (e), (f), and (g)(2) under this section may be acquired— reserve established under this section for the of section 302 of the Food Security Commod- ‘‘(i) through purchases— purpose of subsection (c) shall be made avail- ity Reserve Act of 1996 shall apply to com- ‘‘(I) from producers; or able under the Agricultural Trade Develop- modities in any reserve established under ‘‘(II) in the market, if the Secretary deter- ment and Assistance Act of 1954 (7 U.S.C. 1691 paragraph (1), except that the references to mines that the purchases will not unduly et seq.) to meet famine or other urgent or ex- ‘eligible commodities’ in the subsections disrupt the market; or traordinary relief needs, except that section shall be deemed to be references to ‘agricul- ‘‘(ii) by designation by the Secretary of 401 of the Act (7 U.S.C. 1731), with respect to tural commodities’.’’. stocks of eligible commodities of the Com- determinations of availability, shall not be SEC. 226. PROTEIN BYPRODUCTS DERIVED FROM modity Credit Corporation. applicable to the release. ALCOHOL FUEL PRODUCTION. ‘‘(B) FUNDS.—Any use of funds to acquire ‘‘(e) MANAGEMENT OF ELIGIBLE COMMOD- Section 1208 of the Agriculture and Food eligible commodities through purchases from ITIES.—The Secretary shall provide— Act of 1981 (7 U.S.C. 1736n) is repealed. producers or in the market to replenish the ‘‘(1) for the management of eligible com- SEC. 227. FOOD FOR PROGRESS PROGRAM. reserve must be authorized in an appropria- modities in the reserve established under The Food for Progress Act of 1985 (7 U.S.C. tion Act. this section as to location and quality of eli- 1736o) is amended— February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1091 (1) in subsection (b)— ‘‘(1) By September 30, 2002, increasing the trade programs under the Agricultural Trade (A) in paragraph (1)— value of annual United States agricultural Act of 1978 (7 U.S.C. 5601 et seq.) during fiscal (i) by striking ‘‘(b)(1)’’ and inserting ‘‘(b)’’; exports to $60,000,000,000. year 2002. and ‘‘(2) By September 30, 2002, increasing the (c) ELIMINATION OF REPORT.— (ii) in the first sentence, by inserting United States share of world export trade in (1) IN GENERAL.—Section 601 of the Agricul- ‘‘intergovernmental organizations’’ after agricultural products significantly above the tural Trade Act of 1978 (7 U.S.C. 5711) is re- ‘‘cooperatives’’; and average United States share from 1993 pealed. (B) by striking paragraph (2); through 1995. (2) CONFORMING AMENDMENT.—The last sen- (2) in subsection (e)(4), by striking ‘‘203’’ ‘‘(3) By September 30, 2002, increasing the tence of section 603 of the Agricultural Trade and inserting ‘‘406’’; United States share of world trade in high- Act of 1978 (7 U.S.C. 5713) is amended by (3) in subsection (f)— value agricultural products to 20 percent. striking ‘‘, in a consolidated report,’’ and all (A) in paragraph (1), by striking ‘‘in the ‘‘(4) Ensuring that the value of United that follows through ‘‘section 601’’ and in- case of the independent states of the former States exports of agricultural products in- serting ‘‘or in a consolidated report’’. Soviet Union,’’; creases at a faster rate than the rate of in- SEC. 242. EXPORT CREDITS. (B) by striking paragraph (2); crease in the value of overall world export (a) EXPORT CREDIT GUARANTEE PROGRAM.— (C) in paragraph (4), by inserting ‘‘in each trade in agricultural products. Section 202 of the Agricultural Trade Act of of fiscal years 1996 through 2002’’ after ‘‘may ‘‘(5) Ensuring that the value of United 1978 (7 U.S.C. 5622) is amended— be used’’; and States exports of high-value agricultural (1) in subsection (a)— (D) by redesignating paragraphs (3) products increases at a faster rate than the (A) by striking ‘‘GUARANTEES.—The’’ and through (5) as paragraphs (2) through (4), re- rate of increase in overall world export trade inserting the following: ‘‘GUARANTEES.— spectively; in high-value agricultural products. ‘‘(1) IN GENERAL.—The’’; and (4) in subsection (g), by striking ‘‘1995’’ and ‘‘(6) Ensuring to the extent practicable (B) by adding at the end the following: inserting ‘‘2002’’; that— ‘‘(2) SUPPLIER CREDITS.—In carrying out (5) in subsection (j), by striking ‘‘shall’’ ‘‘(A) substantially all obligations under- this section, the Commodity Credit Corpora- and inserting ‘‘may’’; taken in the Uruguay Round Agreement on tion may issue guarantees for the repayment (6) in subsection (k), by striking ‘‘1995’’ and Agriculture that provide significantly in- of credit made available for a period of not inserting ‘‘2002’’; creased access for United States agricultural more than 180 days by a United States ex- (7) in subsection (l)(1)— commodities are implemented to the extent porter to a buyer in a foreign country.’’; (A) by striking ‘‘1991 through 1995’’ and in- required by the Uruguay Round Agreements; (2) in subsection (f)— serting ‘‘1996 through 2002’’; and or (A) by striking ‘‘(f) RESTRICTIONS.—The’’ (B) by inserting ‘‘, and to provide technical ‘‘(B) applicable United States trade laws and inserting the following: ‘‘(f) RESTRICTIONS.— assistance for monetization programs,’’ after are used to secure United States rights under ‘‘(1) IN GENERAL.—The’’; and ‘‘monitoring of food assistance programs’’; the Uruguay Round Agreement on Agri- (B) by adding at the end the following: and culture. ‘‘(2) CRITERIA FOR DETERMINATION.—In (8) in subsection (m)— ‘‘(d) PRIORITY MARKETS.— making the determination required under (A) by striking ‘‘with respect to the inde- ‘‘(1) IDENTIFICATION OF MARKETS.—In devel- paragraph (1) with respect to credit guaran- pendent states of the former Soviet Union’’; oping the strategy required under subsection tees under subsection (b) for a country, the (B) by striking ‘‘private voluntary organi- (a), the Secretary shall identify as priority Secretary may consider, in addition to finan- zations and cooperatives’’ each place it ap- markets— cial, macroeconomic, and monetary indica- pears and inserting ‘‘agricultural trade orga- ‘‘(A) those markets in which imports of ag- tors— nizations, intergovernmental organizations, ricultural products show the greatest poten- ‘‘(A) whether an International Monetary private voluntary organizations, and co- tial for increase by September 30, 2002; and Fund standby agreement, Paris Club re- operatives’’; and ‘‘(B) those markets in which, with the as- scheduling plan, or other economic restruc- (C) in paragraph (2), by striking ‘‘in the sistance of Federal export promotion pro- turing plan is in place with respect to the independent states’’. grams, exports of United States agricultural country; products show the greatest potential for in- SEC. 228. USE OF FOREIGN CURRENCY PRO- ‘‘(B) the convertibility of the currency of crease by September 30, 2002. CEEDS FROM EXPORT SALES FI- the country; NANCING. ‘‘(2) IDENTIFICATION OF SUPPORTING OF- ‘‘(C) whether the country provides ade- Section 402 of the Mutual Security Act of FICES.—The President shall identify annually quate legal protection for foreign invest- 1954 (22 U.S.C. 1922) is repealed. in the budget of the United States Govern- ments; ment submitted under section 1105 of title 31, SEC. 229. STIMULATION OF FOREIGN PRODUC- ‘‘(D) whether the country has viable finan- TION. United States Code, each overseas office of cial markets; Section 7 of the Act of December 30, 1947 the Foreign Agricultural Service that pro- ‘‘(E) whether the country provides ade- (61 Stat. 947, chapter 526; 50 U.S.C. App. 1917) vides assistance to United States exporters quate legal protection for the private prop- is repealed. in each of the priority markets identified erty rights of citizens of the country; and under paragraph (1). Subtitle B—Amendments to Agricultural ‘‘(F) any other factors that are relevant to Trade Act of 1978 ‘‘(e) REPORT.—Not later than December 31, 2001, the Secretary shall prepare and submit the ability of the country to service the debt SEC. 241. AGRICULTURAL EXPORT PROMOTION a report to Congress assessing progress in of the country.’’; STRATEGY. meeting the goals established by subsection (3) by striking subsection (h) and inserting (a) IN GENERAL.—Section 103 of the Agri- (c). the following: cultural Trade Act of 1978 (7 U.S.C. 5603) is ‘‘(f) FAILURE TO MEET GOALS.—Notwith- ‘‘(h) UNITED STATES AGRICULTURAL COMPO- amended to read as follows: standing any other law, if the Secretary de- NENTS.—The Commodity Credit Corporation ‘‘SEC. 103. AGRICULTURAL EXPORT PROMOTION termines that more than 2 of the goals estab- shall finance or guarantee under this section STRATEGY. lished by subsection (c) are not met by Sep- only United States agricultural commod- ‘‘(a) IN GENERAL.—The Secretary shall de- tember 30, 2002, the Secretary may not carry ities.’’; velop a strategy for implementing Federal out agricultural trade programs under the (4) in subsection (i)— agricultural export promotion programs that Agricultural Trade Act of 1978 (7 U.S.C. 5601 (A) by striking ‘‘INSTITUTIONS.—A finan- takes into account the new market opportu- et seq.) as of that date. cial’’ and inserting the following: ‘‘INSTITU- nities for agricultural products, including ‘‘(g) NO PRIVATE RIGHT OF ACTION.—This TIONS.— opportunities that result from— section shall not create any private right of ‘‘(1) IN GENERAL.—A financial’’; ‘‘(1) the North American Free Trade Agree- action.’’. (B) by striking paragraph (1); ment and the Uruguay Round Agreements; (b) CONTINUATION OF FUNDING.— (C) by striking ‘‘(2) is’’ and inserting the ‘‘(2) any accession to membership in the (1) IN GENERAL.—If the Secretary of Agri- following: World Trade Organization; culture makes a determination under section ‘‘(A) is’’; ‘‘(3) the continued economic growth in the 103(f) of the Agricultural Trade Act of 1978 (D) by striking ‘‘(3) is’’ and inserting the Pacific Rim; and (as amended by subsection (a)), the Sec- following: ‘‘(4) other developments. retary shall utilize funds of the Commodity ‘‘(B) is’’; and ‘‘(b) PURPOSE OF STRATEGY.—The strategy Credit Corporation to promote United States (E) by adding at the end the following: developed under subsection (a) shall encour- agricultural exports in a manner consistent ‘‘(2) THIRD COUNTRY BANKS.—The Commod- age the maintenance, development, and ex- with the Commodity Credit Corporation ity Credit Corporation may guarantee under pansion of export markets for United States Charter Act (15 U.S.C. 714 et seq.) and obliga- subsections (a) and (b) the repayment of agricultural commodities and related prod- tions pursuant to the Uruguay Round Agree- credit made available to finance an export ucts, including high-value and value-added ments. sale irrespective of whether the obligor is lo- products. (2) FUNDING.—The amount of Commodity cated in the country to which the export sale ‘‘(c) GOALS OF STRATEGY.—The strategy de- Credit Corporation funds used to carry out is destined.’’; and veloped under subsection (a) shall have the paragraph (1) during a fiscal year shall not (5) by striking subsection (k) and inserting following goals: exceed the total outlays for agricultural the following: S 1092 CONGRESSIONAL RECORD — SENATE February 7, 1996

‘‘(k) PROCESSED AND HIGH-VALUE PROD- nancing or a credit guarantee or other as- ‘‘SEC. 503. ESTABLISHMENT OF THE FOREIGN AG- UCTS.— sistance is made available, under a program RICULTURAL SERVICE. ‘‘(1) IN GENERAL.—In issuing export credit authorized in section 201, 202, or 301, the ‘‘The Service shall assist the Secretary in guarantees under this section, the Commod- Commodity Credit Corporation shall require carrying out the agricultural trade policy ity Credit Corporation shall, subject to para- the exporter of the commodity to maintain and international cooperation policy of the graph (2), ensure that not less than 25 per- records of an official or customary commer- United States by— cent for each of fiscal years 1996 and 1997, 30 cial nature or other documents as the Sec- ‘‘(1) acquiring information pertaining to percent for each of fiscal years 1998 and 1999, retary may require, and shall allow rep- agricultural trade; and 35 percent for each of fiscal years 2000, resentatives of the Commodity Credit Cor- ‘‘(2) carrying out market promotion and 2001, and 2002, of the total amount of credit poration access to the records or documents development activities; guarantees issued for a fiscal year is issued as needed, to verify the arrival of the com- ‘‘(3) providing agricultural technical as- to promote the export of processed or high- modity in the country that was the intended sistance and training; and value agricultural products and that the bal- destination of the commodity.’’. ‘‘(4) carrying out the programs authorized ance is issued to promote the export of bulk SEC. 246. COMPLIANCE. under this Act, the Agricultural Trade De- velopment and Assistance Act of 1954 (7 or raw agricultural commodities. Section 402(a) of the Agricultural Trade U.S.C. 1691 et seq.), and other Acts.’’. ‘‘(2) LIMITATION.—The percentage require- Act of 1978 (7 U.S.C. 5662(a)) is amended— ment of paragraph (1) shall apply for a fiscal (1) by striking paragraph (2); and SEC. 250. REPORTS. year to the extent that a reduction in the (2) by redesignating paragraph (3) as para- The first sentence of section 603 of the Ag- total amount of credit guarantees issued for graph (2). ricultural Trade Act of 1978 (7 U.S.C. 5713) is the fiscal year is not required to meet the amended by striking ‘‘The’’ and inserting SEC. 247. REGULATIONS. percentage requirement.’’. ‘‘Subject to section 217 of the Department of Section 404 of the Agricultural Trade Act (b) FUNDING LEVELS.—Section 211(b) of the Agriculture Reorganization Act of 1994 (7 of 1978 (7 U.S.C. 5664) is repealed. Agricultural Trade Act of 1978 (7 U.S.C. U.S.C. 6917), the’’. 5641(b)) is amended— SEC. 248. TRADE COMPENSATION AND ASSIST- Subtitle C—Miscellaneous (1) by striking paragraph (2); ANCE PROGRAMS. (2) by redesignating subparagraph (B) of Title IV of the Agricultural Trade Act of SEC. 251. REPORTING REQUIREMENTS RELATING paragraph (1) as paragraph (2) and indenting 1978 (7 U.S.C. 5661 et seq.) is amended by add- TO TOBACCO. the margin of paragraph (2) (as so redesig- ing at the end the following: Section 214 of the Tobacco Adjustment Act of 1983 (7 U.S.C. 509) is repealed. nated) so as to align with the margin of ‘‘SEC. 417. TRADE COMPENSATION AND ASSIST- paragraph (1); and ANCE PROGRAMS. SEC. 252. TRIGGERED EXPORT ENHANCEMENT. (3) by striking paragraph (1) and inserting ‘‘(a) IN GENERAL.—Notwithstanding any (a) READJUSTMENT OF SUPPORT LEVELS.— the following: other law, if, after the effective date of this Section 1302 of the Omnibus Budget Rec- ‘‘(1) EXPORT CREDIT GUARANTEES.—The section, the President or any other member onciliation Act of 1990 (Public Law 101–508; 7 Commodity Credit Corporation shall make of the Executive branch causes exports from U.S.C. 1421 note) is repealed. available for each of fiscal years 1996 through the United States to any country to be uni- (b) TRIGGERED MARKETING LOANS AND EX- 2002 not less than $5,500,000,000 in credit guar- laterally suspended for reasons of national PORT ENHANCEMENT.—Section 4301 of the Om- antees under subsections (a) and (b) of sec- security or foreign policy, and if within 180 nibus Trade and Competitiveness Act of 1988 tion 202.’’. days after the date on which the suspension (Public Law 100–418; 7 U.S.C. 1446 note) is re- (c) DEFINITIONS.—Section 102(7) of the Agri- is imposed on United States exports no other pealed. cultural Trade Act of 1978 (7 U.S.C. 5602(7)) is country agrees to participate in the suspen- (c) EFFECTIVE DATE.—The amendments amended by striking subparagraphs (A) and sion, the Secretary shall carry out a trade made by this section shall be effective begin- (B) and inserting the following: compensation and assistance program in ac- ning with the 1996 crops of wheat, feed ‘‘(A) an agricultural commodity or product cordance with this section (referred to in grains, upland cotton, and rice. entirely produced in the United States; or this section as a ‘program’). SEC. 253. DISPOSITION OF COMMODITIES TO PRE- ‘‘(B) a product of an agricultural commod- ‘‘(b) PROVISION OF FUNDS.—Under a pro- VENT WASTE. ity— gram, the Secretary shall make available for Section 416 of the Agricultural Act of 1949 ‘‘(i) 90 percent or more of which by weight, each fiscal year funds of the Commodity (7 U.S.C. 1431) is amended— excluding packaging and water, is entirely Credit Corporation, in an amount calculated (1) in subsection (b)— produced in the United States; and under subsection (c), to promote agricultural (A) in paragraph (1), by inserting after the ‘‘(ii) that the Secretary determines to be a exports or provide agricultural commodities first sentence the following: ‘‘The Secretary high value agricultural product.’’. to developing countries, under any authori- may use funds of the Commodity Credit Cor- (d) REGULATIONS.—Not later than 180 days ties available to the Secretary. poration to cover administrative expenses of after the effective date of this title, the Sec- ‘‘(c) DETERMINATION OF AMOUNT OF the programs.’’; retary of Agriculture shall issue regulations FUNDS.—For each fiscal year of a program, (B) in paragraph (7)(D)(iv), by striking to carry out the amendments made by this ‘‘one year of acquisition’’ and all that fol- section. the amount of funds made available under subsection (b) shall be equal to 90 percent of lows and inserting the following: ‘‘a reason- SEC. 243. MARKET PROMOTION PROGRAM. the average annual value of United States able length of time, as determined by the Effective October 1, 1995, section 211(c)(1) of agricultural exports to the country with re- Secretary, except that the Secretary may the Agricultural Trade Act of 1978 (7 U.S.C. permit the use of proceeds in a country other 5641(c)(1)) is amended— spect to which exports are suspended during the most recent 3 years prior to the suspen- than the country of origin— (1) by striking ‘‘and’’ after ‘‘1991 through ‘‘(I) as necessary to expedite the transpor- 1993,’’; and sion for which data are available. ‘‘(d) DURATION OF PROGRAM.— tation of commodities and products fur- (2) by striking ‘‘through 1997,’’ and insert- nished under this subsection; or ing ‘‘through 1995, and not more than ‘‘(1) IN GENERAL.—For each suspension of exports for which a program is implemented ‘‘(II) if the proceeds are generated in a cur- $100,000,000 for each of fiscal years 1996 rency generally accepted in the other coun- through 2002,’’. under this section, funds shall be made avail- able under subsection (b) for each fiscal year try.’’; SEC. 244. EXPORT ENHANCEMENT PROGRAM. or part of a fiscal year for which the suspen- (C) in paragraph (8), by striking subpara- Effective October 1, 1995, section 301(e)(1) of sion is in effect, but not to exceed 2 fiscal graph (C); and the Agricultural Trade Act of 1978 (7 U.S.C. (D) by striking paragraphs (10), (11), and 5651(e)(1)) is amended to read as follows: years. ‘‘(2) PARTIAL-YEAR EMBARGOES.—Regardless (12); and ‘‘(1) IN GENERAL.—The Commodity Credit (2) by striking subsection (c). Corporation shall make available to carry of whether an embargo is in effect for only SEC. 254. DIRECT SALES OF DAIRY PRODUCTS. out the program established under this sec- part of a fiscal year, the full amount of funds Section 106 of the Agriculture and Food tion not more than— as calculated under subsection (c) shall be Act of 1981 (7 U.S.C. 1446c-1) is repealed. ‘‘(A) $350,000,000 for fiscal year 1996; made available under a program for the fis- ‘‘(B) $350,000,000 for fiscal year 1997; cal year. If the Secretary determines that SEC. 255. EXPORT SALES OF DAIRY PRODUCTS. ‘‘(C) $500,000,000 for fiscal year 1998; making the required amount of funds avail- Section 1163 of the Food Security Act of ‘‘(D) $550,000,000 for fiscal year 1999; able in a partial fiscal year is impracticable, 1985 (Public Law 99–198; 7 U.S.C. 1731 note) is ‘‘(E) $579,000,000 for fiscal year 2000; the Secretary may make all or part of the repealed. ‘‘(F) $478,000,000 for fiscal year 2001; and funds required to be made available in the SEC. 256. DEBT-FOR-HEALTH-AND-PROTECTION ‘‘(G) $478,000,000 for fiscal year 2002.’’. partial fiscal year available in the following SWAP. fiscal year (in addition to any funds other- SEC. 245. ARRIVAL CERTIFICATION. (a) IN GENERAL.—Section 1517 of the Food, wise required under a program to be made Section 401 of the Agricultural Trade Act Agriculture, Conservation, and Trade Act of available in the following fiscal year).’’. of 1978 (7 U.S.C. 5662(a)) is amended by strik- 1990 (7 U.S.C. 1706) is repealed. ing subsection (a) and inserting the follow- SEC. 249. FOREIGN AGRICULTURAL SERVICE. (b) CONFORMING AMENDMENT.—Subsection ing: Section 503 of the Agricultural Trade Act (e)(3) of the Food for Progress Act of 1985 (7 ‘‘(a) ARRIVAL CERTIFICATION.—With respect of 1978 (7 U.S.C. 5693) is amended to read as U.S.C. 1736o(e)(3)) is amended by striking to a commodity provided, or for which fi- follows: ‘‘section 106’’ and inserting ‘‘section 103’’. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1093

SEC. 257. POLICY ON EXPANSION OF INTER- tiations under the World Trade Organization, ‘‘(f) EMERGING MARKET.—In this section NATIONAL MARKETS. and steps toward possible free trade agree- and section 1543, the term ‘emerging market’ Section 1207 of the Agriculture and Food ments of the Americas and Asian-Pacific means any country that the Secretary deter- Act of 1981 (7 U.S.C. 1736m) is repealed. Economic Cooperation (APEC); and mines— SEC. 258. POLICY ON MAINTENANCE AND DEVEL- ‘‘(8) the United States should aggressively ‘‘(1) is taking steps toward a market-ori- OPMENT OF EXPORT MARKETS. use these opportunities to achieve more open ented economy through the food, agri- Section 1121 of the Food Security Act of and fair opportunities for trade in agricul- culture, or rural business sectors of the econ- 1985 (7 U.S.C. 1736p) is amended— tural products. omy of the country; and (1) by striking subsection (a); and ‘‘(b) GOALS OF THE UNITED STATES IN AGRI- ‘‘(2) has the potential to provide a viable (2) in subsection (b)— CULTURAL TRADE NEGOTIATIONS.—The objec- and significant market for United States ag- (A) by striking ‘‘(b)’’; and tives of the United States with respect to fu- ricultural commodities or products of United (B) by striking paragraphs (1) through (4) ture negotiations on agricultural trade in- States agricultural commodities.’’. and inserting the following: clude— (2) FUNDING.—Section 1542 of the Food, Ag- ‘‘(1) be the premier supplier of agricultural ‘‘(1) increasing opportunities for United riculture, Conservation, and Trade Act of and food products to world markets and ex- States exports of agricultural products by 1990 is amended by striking subsection (a) pand exports of high value products; eliminating or substantially reducing tariff and inserting the following: ‘‘(2) support the principle of free trade and and nontariff barriers to trade; ‘‘(a) FUNDING.—The Commodity Credit Cor- the promotion of fair trade in agricultural ‘‘(2) leveling the playing field for United poration shall make available for fiscal commodities and products; States producers of agricultural products by years 1996 through 2002 not less than ‘‘(3) cooperate fully in all efforts to nego- limiting per unit domestic production sup- $1,000,000,000 of direct credits or export credit tiate with foreign countries further reduc- ports to levels that are no greater than those guarantees for exports to emerging markets tions in tariff and nontariff barriers to trade, available in the United States; under section 201 or 202 of the Agricultural including sanitary and phytosanitary meas- ‘‘(3) ending the practice of export dumping Trade Act of 1978 (7 U.S.C. 5621 and 5622), in ures and trade-distorting subsidies; by eliminating all trade distorting export addition to the amounts acquired or author- ‘‘(4) aggressively counter unfair foreign subsidies and disciplining state trading enti- ized under section 211 of the Act (7 U.S.C. trade practices as a means of encouraging ties so that they do not (except in cases of 5641) for the program.’’. fairer trade;’’. bona fide food aid) sell in foreign markets at (3) AGRICULTURAL FELLOWSHIP PROGRAM.— SEC. 259. POLICY ON TRADE LIBERALIZATION. below domestic market prices nor their full Section 1542 of the Food, Agriculture, Con- Section 1122 of the Food Security Act of costs of acquiring and delivering agricul- servation, and Trade Act of 1990 is amend- 1985 (7 U.S.C. 1736q) is repealed. tural products to the foreign markets; and ed— SEC. 260. AGRICULTURAL TRADE NEGOTIATIONS. ‘‘(4) encouraging government policies that (A) in subsection (b), by striking the last Section 1123 of the Food Security Act of avoid price-depressing surpluses.’’. sentence and inserting the following: ‘‘The 1985 (7 U.S.C. 1736r) is amended to read as fol- SEC. 261. POLICY ON UNFAIR TRADE PRACTICES. Commodity Credit Corporation shall give lows: Section 1164 of the Food Security Act of priority under this subsection to— ‘‘SEC. 1123. TRADE NEGOTIATIONS POLICY. 1985 (Public Law 99–198; 99 Stat. 1499) is re- ‘‘(A) projects that encourage the privatiza- ‘‘(a) FINDINGS.—Congress finds that— pealed. tion of the agricultural sector or that benefit ‘‘(1) on a level playing field, United States SEC. 262. AGRICULTURAL AID AND TRADE MIS- private farms or cooperatives in emerging producers are the most competitive suppliers SIONS. markets; and of agricultural products in the world; (a) IN GENERAL.—The Agricultural Aid and ‘‘(B) projects for which nongovernmental ‘‘(2) exports of United States agricultural Trade Missions Act (7 U.S.C. 1736bb et seq.) is persons agree to assume a relatively larger products will account for $53,000,000,000 in repealed. share of the costs.’’; and 1995, contributing a net $24,000,000,000 to the (b) CONFORMING AMENDMENT.—Section 7 of (B) in subsection (d)— merchandise trade balance of the United Public Law 100–277 (7 U.S.C. 1736bb note) is (i) in the matter preceding paragraph (1), States and supporting approximately repealed. by striking ‘‘the Soviet Union’’ and inserting 1,000,000 jobs; SEC. 263. ANNUAL REPORTS BY AGRICULTURAL ‘‘emerging markets’’; ‘‘(3) increased agricultural exports are crit- ATTACHES. (ii) in paragraph (1)— ical to the future of the farm, rural, and Section 108(b)(1)(B) of the Agricultural Act (I) in subparagraph (A)(i)— overall United States economy, but the op- of 1954 (7 U.S.C. 1748(b)(1)(B)) is amended by (aa) by striking ‘‘1995’’ and inserting portunities for increased agricultural ex- striking ‘‘including fruits, vegetables, leg- ‘‘2002’’; and ports are limited by the unfair subsidies of umes, popcorn, and ducks’’. (bb) by striking ‘‘those systems, and iden- the competitors of the United States, and a SEC. 264. WORLD LIVESTOCK MARKET PRICE IN- tify’’ and inserting ‘‘the systems, including variety of tariff and nontariff barriers to FORMATION. potential reductions in trade barriers, and highly competitive United States agricul- Section 1545 of the Food, Agriculture, Con- identify and carry out’’; tural products; servation, and Trade Act of 1990 (Public Law (II) in subparagraph (B), by striking ‘‘(4) international negotiations can play a 101–624; 7 U.S.C. 1761 note) is repealed. ‘‘shall’’ and inserting ‘‘may’’; key role in breaking down barriers to United SEC. 265. ORDERLY LIQUIDATION OF STOCKS. (III) in subparagraph (D), by inserting ‘‘(in- States agricultural exports; Sections 201 and 207 of the Agricultural cluding the establishment of extension serv- ‘‘(5) the Uruguay Round Agreement on Ag- Act of 1956 (7 U.S.C. 1851 and 1857) are re- ices)’’ after ‘‘technical assistance’’; riculture made significant progress in the at- pealed. (IV) by striking subparagraph (F); tainment of increased market access oppor- SEC. 266. SALES OF EXTRA LONG STAPLE COT- (V) by redesignating subparagraphs (G), tunities for United States exports of agricul- TON. (H), and (I) as subparagraphs (F), (G), and tural products, for the first time— Section 202 of the Agricultural Act of 1956 (H), respectively; and ‘‘(A) restraining foreign trade-distorting (7 U.S.C. 1852) is repealed. (VI) in subparagraph (H) (as redesignated domestic support and export subsidy pro- SEC. 267. REGULATIONS. by subclause (V)), by striking ‘‘$10,000,000’’ grams; and Section 707 of the Freedom for Russia and and inserting ‘‘$20,000,000’’; ‘‘(B) developing common rules for the ap- Emerging Eurasian Democracies and Open (iii) in paragraph (2)— plication of sanitary and phytosanitary re- Markets Support Act of 1992 (Public Law 102– (I) by striking ‘‘the Soviet Union’’ each strictions; 511; 7 U.S.C. 5621 note) is amended by strik- place it appears and inserting ‘‘emerging that should result in increased exports of ing subsection (d). markets’’; United States agricultural products, jobs, SEC. 268. EMERGING MARKETS. (II) in subparagraph (A), by striking ‘‘a and income growth in the United States; (a) PROMOTION OF AGRICULTURAL EXPORTS free market food production and distribution ‘‘(6) the Uruguay Round Agreement on Ag- TO EMERGING MARKETS.— system’’ and inserting ‘‘free market food riculture did not succeed in completely (1) EMERGING MARKETS.—Section 1542 of the production and distribution systems’’; eliminating trade distorting domestic sup- Food, Agriculture, Conservation, and Trade (III) in subparagraph (B)— port and export subsidies by— Act of 1990 (Public Law 101–624; 7 U.S.C. 5622 (aa) in clause (i), by striking ‘‘Govern- ‘‘(A) allowing the European Union to con- note) is amended— ment’’ and inserting ‘‘governments’’; tinue unreasonable levels of spending on ex- (A) in the section heading, by striking (bb) in clause (iii)(II), by striking ‘‘and’’ at port subsidies; and ‘‘EMERGING DEMOCRACIES’’ and inserting the end; ‘‘(B) failing to discipline monopolistic ‘‘EMERGING MARKETS’’; (cc) in clause (iii)(III), by striking the pe- state trading entities, such as the Canadian (B) by striking ‘‘emerging democracies’’ riod at the end and inserting ‘‘; and’’; and Wheat Board, that use nontransparent and each place it appears in subsections (b), (d), (dd) by adding at the end of clause (iii) the discriminatory pricing as a hidden de facto and (e) and inserting ‘‘emerging markets’’; following: export subsidy; (C) by striking ‘‘emerging democracy’’ ‘‘(IV) to provide for the exchange of admin- ‘‘(7) during the period 1996 through 2002, each place it appears in subsection (c) and istrators and faculty members from agricul- there will be several opportunities for the inserting ‘‘emerging market’’; and tural and other institutions to strengthen United States to negotiate fairer trade in ag- (D) by striking subsection (f) and inserting and revise educational programs in agricul- ricultural products, including further nego- the following: tural economics, agribusiness, and agrarian S 1094 CONGRESSIONAL RECORD — SENATE February 7, 1996 law, to support change towards a free mar- 103–465; 108 Stat. 4964) is amended by adding gram, including contingent liabilities that ket economy in emerging markets.’’; at the end the following: are not otherwise funded. (IV) by striking subparagraph (D); and ‘‘SEC. 427. IMPLEMENTATION OF COMMITMENTS ‘‘SEC. 703. AUTHORIZATION OF APPROPRIATIONS. (V) by redesignating subparagraph (E) as UNDER URUGUAY ROUND AGREE- ‘‘There are authorized to be appropriated subparagraph (D); and MENTS. to carry out this title such sums as may be (iv) by striking paragraph (3). ‘‘Not later than September 30 of each fiscal necessary for each of fiscal years 1996 (4) UNITED STATES AGRICULTURAL COMMOD- year, the Secretary of Agriculture shall de- through 2002.’’. ITY.—Subsections (b) and (c) of section 1542 termine whether the obligations undertaken On page 3–3, line 23, after ‘‘Region,’’ insert of the Food, Agriculture, Conservation, and by foreign countries under the Uruguay ‘‘the Rainwater Basin Region, the Lake Trade Act of 1990 are amended by striking Round Agreement on Agriculture are being Champlain Basin, the Prairie Pothole Re- ‘‘section 101(6)’’ each place it appears and in- fully implemented. If the Secretary of Agri- gion,’’. serting ‘‘section 102(7)’’. culture determines that any foreign country, On page 3–6, line 7, strike ‘‘36,400,000’’ and (5) REPORT.—The first sentence of section by not implementing the obligations of the insert ‘‘36,520,000’’. 1542(e)(2) of the Food, Agriculture, Conserva- country, is significantly constraining an op- On page 3–6, between lines 11 and 12, insert tion, and Trade Act of 1990 is amended by portunity for United States agricultural ex- the following: striking ‘‘Not’’ and inserting ‘‘Subject to ports, the Secretary shall— (c) RELATIONSHIP TO OTHER LAW.—The au- section 217 of the Department of Agriculture ‘‘(1) submit to the United States Trade thority granted to the Secretary of Agri- Reorganization Act of 1994 (7 U.S.C. 6917), Representative a recommendation as to culture as a result of the amendments made not’’. whether the President should take action by this section shall supersede any restric- (b) AGRICULTURAL FELLOWSHIP PROGRAM under any provision of law; and tion on the operation of the conservation re- FOR MIDDLE INCOME COUNTRIES, EMERGING ‘‘(2) transmit a copy of the recommenda- serve program established under any other DEMOCRACIES, AND EMERGING MARKETS.—Sec- tion to the Committee on Agriculture, and provision of law. tion 1543 of the Food, Agriculture, Conserva- the Committee on Ways and Means, of the On page 3–7, line 9, add ‘‘and’’ at the end. tion, and Trade Act of 1990 (7 U.S.C. 3293) is House of Representatives and the Committee On page 3–7, line 12, strike the semicolon amended— on Agriculture, Nutrition, and Forestry, and and insert a period. (1) in the section heading, by striking the Committee on Finance, of the Senate.’’. Beginning on page 3–7, strike line 13 and ‘‘MIDDLE INCOME COUNTRIES AND SEC. 272. SENSE OF CONGRESS CONCERNING all that follows through page 3–8, line 12. EMERGING DEMOCRACIES’’ and inserting MULTILATERAL DISCIPLINES ON On page 3–18, line 4, strike ‘‘less’’ and in- ‘‘MIDDLE INCOME COUNTRIES, EMERGING CREDIT GUARANTEES. sert ‘‘more’’. DEMOCRACIES, AND EMERGING MAR- It is the sense of Congress that— On page 3–46, strike lines 11 through 14 and KETS’’; (1) in negotiations to establish multilat- insert the following: (2) in subsection (b), by adding at the end eral disciplines on agricultural export cred- (2) in paragraph (8), by striking the period the following: its and credit guarantees, the United States at the end and inserting a semicolon; and ‘‘(5) EMERGING MARKET.—Any emerging should not agree to any arrangement that is (3) by adding at the end the following: market, as defined in section 1542(f).’’; and incompatible with the provisions of United ‘‘(9) agricultural producers; (3) in subsection (c)(1), by striking ‘‘food States law that authorize agricultural ex- ‘‘(10) other nonprofit organizations with needs’’ and inserting ‘‘food and fiber needs’’. port credits and credit guarantees; demonstrable expertise; (c) CONFORMING AMENDMENTS.— (2) in the negotiations (which are held ‘‘(11) persons knowledgeable about the eco- (1) Section 501 of the Agricultural Trade under the auspices of the Organization for nomic and environmental impact of con- Development and Assistance Act of 1954 (7 Economic Cooperation and Development), servation techniques and programs; and U.S.C. 1737) is amended— the United States should not reach any ‘‘(12) agribusiness. (A) in subsection (a), by striking ‘‘emerg- agreement that fails to impose disciplines on On page 3–62, after line 22, add the follow- ing democracies’’ and inserting ‘‘emerging the practices of foreign government trading ing: markets’’; and entities such as the Australian Wheat Board SEC. 356. WATER BANK PROGRAM. (B) in subsection (b), by striking paragraph and Canadian Wheat Board; and Section 1230 of the Food Security Act of (1) and inserting the following: (3) the disciplines should include greater 1985 (16 U.S.C. 3830) is amended by adding at ‘‘(1) EMERGING MARKET.—The term ‘emerg- openness in the operations of the entities as the end the following: ing market’ means any country that the Sec- long as the entities are subsidized by the for- ‘‘(d) WATER BANK PROGRAM.—For purposes retary determines— eign government or have monopolies for ex- of this Act, acreage enrolled, prior to the ‘‘(A) is taking steps toward a market-ori- ports of a commodity that are sanctioned by date of enactment of this subsection, in the ented economy through the food, agri- the foreign government. water bank program authorized by the Water culture, or rural business sectors of the econ- SEC. 273. FOREIGN MARKET DEVELOPMENT CO- Bank Act (16 U.S.C. 1301 et seq.) shall be con- omy of the country; and OPERATOR PROGRAM. sidered to have been enrolled in the con- ‘‘(B) has the potential to provide a viable The Agricultural Trade Act of 1978 (7 servation reserve program on the date the and significant market for United States ag- U.S.C. 5601 et seq.) is amended by adding at acreage was enrolled in the water bank pro- ricultural commodities or products of United the end the following: gram. Payments shall continue at the exist- States agricultural commodities.’’. ‘‘TITLE VII—FOREIGN MARKET ing water bank rates.’’. (2) Section 201(d)(1)(C)(ii) of the Agricul- DEVELOPMENT COOPERATOR PROGRAM SEC. 357. FLOOD WATER RETENTION PILOT tural Trade Act of 1978 (7 U.S.C. ‘‘SEC. 701. DEFINITION OF ELIGIBLE TRADE OR- PROJECTS. 5621(d)(1)(C)(ii)) is amended by striking GANIZATION. Section 16 of the Soil Conservation and Do- ‘‘emerging democracies’’ and inserting ‘‘In this title, the term ‘eligible trade orga- mestic Allotment Act (16 U.S.C. 590p) is ‘‘emerging markets’’. nization’ means a United States trade orga- amended by adding at the end the following: (3) Section 202(d)(3)(B) of the Agricultural nization that— ‘‘(l) FLOOD WATER RETENTION PILOT Trade Act of 1978 (7 U.S.C. 5622(d)(3)(B)) is ‘‘(1) promotes the export of 1 or more Unit- PROJECTS.— amended by striking ‘‘emerging democ- ed States agricultural commodities or prod- ‘‘(1) IN GENERAL.—In cooperation with racies’’ and inserting ‘‘emerging markets’’. ucts; and States, the Secretary shall carry out at least SEC. 269. IMPORT ASSISTANCE FOR CBI BENE- ‘‘(2) does not have a business interest in or 1 but not more than 2 pilot projects to create FICIARY COUNTRIES AND THE PHIL- IPPINES. receive remuneration from specific sales of and restore natural water retention areas to Section 583 of Public Law 100–202 (101 Stat. agricultural commodities or products. control storm water and snow melt runoff 1329–182) is repealed. ‘‘SEC. 702. FOREIGN MARKET DEVELOPMENT CO- within closed drainage systems. OPERATOR PROGRAM. ‘‘(2) PRACTICES.—To carry out paragraph SEC. 270. STUDIES, REPORTS, AND OTHER PROVI- SIONS. ‘‘(a) IN GENERAL.—The Secretary shall es- (1), the Secretary shall provide cost-sharing (a) IN GENERAL.—Sections 1551 through tablish and, in cooperation with eligible and technical assistance for the establish- 1555, section 1559, and section 1560 of subtitle trade organizations, carry out a foreign mar- ment of nonstructural landscape manage- E of title XV of the Food, Agriculture, Con- ket development cooperator program to ment practices, including agricultural till- servation, and Trade Act of 1990 (Public Law maintain and develop foreign markets for age practices and restoration, enhancement, 101–624; 104 Stat. 3696) are repealed. United States agricultural commodities and and creation of wetland characteristics. (b) LANGUAGE PROFICIENCY.—Section 1556 products. ‘‘(3) FUNDING.— of the Food, Agriculture, Conservation, and ‘‘(b) ADMINISTRATION.—Funds made avail- ‘‘(A) LIMITATION.—The funding used by the Trade Act of 1990 (Public Law 101–624; 7 able to carry out this title shall be used only Secretary to carry out this subsection shall U.S.C. 5694 note) is amended by striking sub- to provide— not exceed $10,000,000 per project. section (c). ‘‘(1) cost-share assistance to an eligible ‘‘(B) USE OF COMMODITY CREDIT CORPORA- SEC. 271. IMPLEMENTATION OF COMMITMENTS trade organization under a contract or agree- TION.—The Secretary shall use the funds, fa- UNDER URUGUAY ROUND AGREE- ment with the organization; and cilities, and authorities of the Commodity MENTS. ‘‘(2) assistance for other costs that are nec- Credit Corporation to carry out this sub- Part III of subtitle A of title IV of the Uru- essary or appropriate to carry out the for- section. guay Round Agreements Act (Public Law eign market development cooperator pro- ‘‘(4) ADDITIONAL PILOT PROJECTS.— February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1095

‘‘(A) EVALUATION.—Not later than 2 years (b) DEFINITIONS.— (c) ASSISTANCE TO LOCAL ORGANIZATIONS.— after a pilot project is implemented, the Sec- (1) WORKS OF IMPROVEMENT.—Section 2 of Section 3 of the Act (16 U.S.C. 1003) is amend- retary shall evaluate the extent to which the the Act (16 U.S.C. 1002) is amended, with re- ed— project has reduced or may reduce Federal spect to the term ‘‘works of improvement’’— (1) in paragraph (1), by inserting after ‘‘(1)’’ outlays for emergency spending and un- (A) in paragraph (1), by inserting ‘‘, non- the following ‘‘to provide technical assist- planned infrastructure maintenance by an structural,’’ after ‘‘structural’’; ance to help local organizations’’; amount that exceeds the Federal cost of the (B) in paragraph (2), by striking ‘‘or’’ at (2) in paragraph (2)— project. the end; (A) by inserting after ‘‘(2)’’ the following: ‘‘(B) ADDITIONAL PROJECTS.—If the Sec- (C) by redesignating paragraph (3) as para- ‘‘to provide technical assistance to help local retary determines that pilot projects carried graph (11); organizations’’; and out under this subsection have reduced or (D) by inserting after paragraph (2) the fol- (B) by striking ‘‘engineering’’ and insert- may reduce Federal outlays as described in lowing new paragraphs: ing ‘‘technical and scientific’’; and subparagraph (A), the Secretary may carry ‘‘(3) a land treatment or other non- (3) by striking paragraph (3) and inserting out, in accordance with this subsection, pilot structural practice, including the acquisi- the following new paragraph: projects in addition to the projects author- tion of easements or real property rights, to ‘‘(3) to make allocations of costs to the ized under paragraph (1).’’. meet multiple watershed needs, project or project components to determine SEC. 358. WETLAND CONSERVATION EXEMPTION. ‘‘(4) the restoration and monitoring of the whether the total of all environmental, so- Section 1222(b)(1) of the Food Security Act chemical, biological, and physical structure, cial, and monetary benefits exceed costs;’’. of 1985 (16 U.S.C. 3822(b)(1)) is amended— diversity, and functions of waterways and (d) COST SHARE ASSISTANCE.— (1) in subparagraph (C), by striking ‘‘or’’ at their associated ecological systems, (1) AMOUNT OF ASSISTANCE.—Section 3A of the end; and ‘‘(5) the restoration or establishment of the Act (16 U.S.C. 1003a) is amended by strik- (2) by adding at the end the following: wetland and riparian environments as part of ing subsection (b) and inserting the follow- ‘‘(E) converted wetland, if— a multi-objective management system that ing: ‘‘(i) the extent of the conversion is limited provides floodwater or storm water storage, ‘‘(b) NONSTRUCTURAL PRACTICES.—Notwith- to the reversion to conditions that will be at detention, and attenuation, nutrient filter- standing any other provision of this Act, least equivalent to the wetland functions ing, fish and wildlife habitat, and enhanced Federal cost share assistance to local organi- and values that existed prior to implementa- biological diversity, zations for the planning and implementation tion of a voluntary wetland restoration, en- ‘‘(6) the restoration of steam channel of nonstructural works of improvement may hancement, or creation action; forms, functions, and diversity using the be provided using funds appropriated for the ‘‘(ii) technical determinations of the prior principles of biotechnical slope stabilization purposes of this Act for an amount not ex- site conditions and the restoration, enhance- to reestablish a meandering, bankfull flow ceeding 75 percent of the total installation ment, or creation action have been ade- channels, riparian vegetation, and costs. quately documented in a plan approved by floodplains, ‘‘(c) STRUCTURAL PRACTICES.—Notwith- the Natural Resources Conservation Service ‘‘(7) the establishment and acquisition of standing any other provision of this Act, prior to implementation; and multi-objective riparian and adjacent flood Federal cost share assistance to local organi- ‘‘(iii) the conversion action proposed by prone lands, including greenways, for sedi- zations for the planning and implementation the private landowner is approved by the ment storage and floodwater storage, of structural works of improvement may be Natural Resources Conservation Service ‘‘(8) the protection, restoration, enhance- provided using funds appropriated for the prior to implementation; or’’. ment and monitoring of surface and ground- purposes of this Act for 50 percent of the SEC. 359. FLOODPLAIN EASEMENTS. water quality, including measures to im- total cost, including the cost of mitigating Section 403 of the Agricultural Credit Act prove the quality of water emanating from damage to fish and wildlife habitat and the of 1978 (16 U.S.C. 2203) is amended by insert- agricultural lands and facilities, value of any land or interests in land ac- ing ‘‘, including the purchase of floodplain ‘‘(9) the provision of water supply and mu- quired for the work of improvement. easements,’’ after ‘‘emergency measures’’. nicipal and industrial water supply for rural ‘‘(d) SPECIAL RULE FOR LIMITED RESOURCE SEC. 360. RESOURCE CONSERVATION AND DE- communities having a population of less COMMUNITIES.—Notwithstanding any other VELOPMENT PROGRAM REAUTHOR- than 55,000, according to the most recent de- provision of this Act, the Secretary may pro- IZATION. cennial census of the United States, vide cost share assistance to a limited re- Section 1538 of the Agriculture and Food ‘‘(10) outreach to and organization of local source community for any works of improve- Act of 1981 (16 U.S.C. 3461) is amended by citizen organizations to participate in ment, using funds appropriated for the pur- striking ‘‘1991 through 1995’’ and inserting project design and implementation, and the poses of this Act, for an amount not to ex- ‘‘1996 through 2001’’. training of project volunteers and partici- ceed 90 percent of the total cost. SEC. 361. CONSERVATION RESERVE NEW ACRE- pants in restoration and monitoring tech- ‘‘(e) TREATMENT OF OTHER FEDERAL AGE. niques, or’’; and FUNDS.—Not more than 50 percent of the Section 1231(a) of the Food Security Act of (E) in paragraph (11) (as so redesignated)— non-Federal cost share may be satisfied 1985 (16 U.S.C. 3831(a)) is amended by adding (i) by inserting in the first sentence after using funds from other Federal agencies.’’. at the end the following: ‘‘The Secretary ‘‘proper utilization of land’’ the following: ‘‘, (2) CONDITIONS ON ASSISTANCE.—Section 4(1) may enter into 1 or more new contracts to water, and related resources’’; and of the Act (16 U.S.C. 1004(1)) is amended by enroll acreage in a quantity equal to the (ii) by striking the sentence that mandates striking ‘‘, without cost to the Federal Gov- quantity of acreage covered by any contract that 20 percent of total project benefits be ernment from funds appropriated for the pur- that terminates after the date of enactment directly related to agriculture. poses of this Act,’’. of the Agricultural Market Transition Act.’’. (2) LOCAL ORGANIZATION.—Such section is (e) BENEFIT COST ANALYSIS.—Section 5(1) SEC. 362. REPEAL OF REPORT REQUIREMENT. further amended, with respect to the term of the Act (16 U.S.C. 1005(1)) is amended by Section 1342 of title 44, United States Code, ‘‘local organization’’, by adding at the end striking ‘‘the benefits’’ and inserting ‘‘the is repealed. the following new sentence: ‘‘The term in- total benefits, including environmental, so- SEC. 363. WATERSHED PROTECTION AND FLOOD cludes any nonprofit organization (defined as cial, and monetary benefits,’’. PREVENTION ACT AMENDMENTS. having tax exempt status under section (f) PROJECT PRIORITIZATION.—The Water- (a) DECLARATION OF POLICY.—The first sec- 501(c)(3) of the Internal Revenue Code of 1986) shed Protection and Flood Prevention Act is tion of the Watershed Protection and Flood that has authority to carry out and maintain amended by inserting after section 5 (16 Prevention Act (16 U.S.C. 1001) is amended to works of improvement or is developing and U.S.C. 1005) the following new section: read as follows: implementing a work of improvement in ‘‘SEC. 5A. FUNDING PRIORITIES. ‘‘SECTION 1. DECLARATION OF POLICY. partnership with another local organization ‘‘In making funding decisions under this ‘‘Erosion, flooding, sedimentation, and loss that has such authority.’’. Act, the Secretary shall give priority to of natural habitats in the watersheds and (3) WATERWAY.—Such section is further projects with one or more of the following waterways of the United States cause loss of amended by adding at the end the following attributes: life, damage to property, and a reduction in new definition: ‘‘(1) Projects providing significant im- the quality of environment and life of citi- ‘‘WATERWAY.—The term ‘waterway’ means, provements in ecological values and func- zens. It is therefore the sense of Congress on public or private land, any natural, de- tions in the project area. that the Federal Government should join graded, seasonal, or created wetland on pub- ‘‘(2) Projects that enhance the long-term with States and their political subdivisions, lic or private land, including rivers, streams, health of local economies or generate job or public agencies, conservation districts, flood riparian areas, marshes, ponds, bogs, job training opportunities for local residents, prevention or control districts, local citizens mudflats, lakes, and estuaries. The term in- including Youth Conservation and Service organizations, and Indian tribes for the pur- cludes any natural or manmade watercourse Corps participants and displaced resource pose of conserving, protecting, restoring, and which is culverted, channelized, or vegeta- harvesters. improving the land and water resources of tively cleared, including canals, irrigation ‘‘(3) Projects that provide protection to the United States and the quality of the en- ditches, drainage wages, and navigation, in- human health, safety, and property. vironment and life for watershed residents dustrial, flood control and water supply ‘‘(4) Projects that directly benefit eco- across the United States.’’. channels.’’. nomically disadvantaged communities and S 1096 CONGRESSIONAL RECORD — SENATE February 7, 1996 enhance participation by local residents of Subtitle B—Options Pilot Programs and Risk and carried out through the Commodity such communities. Management Education Credit Corporation. ‘‘(5) Projects that restore or enhance fish SEC. 511. SHORT TITLE. (b) LIMITATION.—In conducting the pro- and wildlife species of commercial, rec- This subtitle may be cited as the ‘‘Options grams, the Secretary shall, to the maximum reational, subsistence or scientific concern. Pilot Programs Act of 1996’’. extent practicable, operate the pilot pro- grams in a budget neutral manner. ‘‘(6) Projects or components of projects SEC. 512. PURPOSE. that can be planned, designed, and imple- The purpose of this subtitle is to authorize SEC. 517. RISK MANAGEMENT EDUCATION. mented within two years.’’. the Secretary of Agriculture (referred to in The Secretary shall provide such education (g) TRANSFER OF FUNDS.—The Watershed this subtitle as the ‘‘Secretary’’) to— in management of the financial risks inher- Protection and Flood Prevention Act (16 (1) conduct research through pilot pro- ent in the production and marketing of agri- U.S.C. 1001–1010) is amended by adding at the grams for 1 or more program commodities to cultural commodities as the Secretary con- end the following new section: ascertain whether futures and options con- siders appropriate. ‘‘SEC. 14. TRANSFERS OF FUNDS. tracts can provide producers with reasonable Subtitle C—Commercial Transportation of Equine for Slaughter ‘‘The Secretary may accept transfers of protection from the financial risks of fluc- funds from other Federal departments and tuations in price, yield, and income inherent SEC. 521. FINDINGS. Congress finds that, to ensure that equine agencies in order to carry out projects under in the production and marketing of agricul- sold for slaughter are provided humane this Act.’’. tural commodities; and (2) provide education in the management treatment and care, it is essential to regu- On page 4–1, between lines 3 and 4, insert of the financial risks inherent in the produc- late the transportation, care, handling, and the following: tion and marketing of agricultural commod- treatment of equine by any person engaged (a) DISQUALIFICATION OF A STORE OR CON- ities. in the commercial transportation of equine CERN.—Section 12 of the Food Stamp Act of SEC. 513. PILOT PROGRAMS. for slaughter. 1977 (7 U.S.C. 2021) is amended— (a) IN GENERAL.—The Secretary is author- SEC. 522. DEFINITIONS. (1) by striking the section heading; ized to conduct pilot programs for 1 or more In this subtitle: (2) by striking ‘‘SEC. 12. (a) Any’’ and in- supported commodities through December (1) COMMERCE.—The term ‘‘commerce’’ serting the following: 31, 2002. means trade, traffic, transportation, or other ‘‘SEC. 12. CIVIL MONEY PENALTIES AND DIS- (b) DISTRIBUTION OF PILOT PROGRAMS.—The commerce by a person— QUALIFICATION OF RETAIL FOOD Secretary may operate a pilot program de- (A) between any State, territory, or posses- STORES AND WHOLESALE FOOD scribed in subsection (a) (referred to in this sion of the United States, or the District of CONCERNS. subtitle as a ‘‘pilot program’’) in up to 100 Columbia, and any place outside thereof; ‘‘(a) DISQUALIFICATION.— counties for each program commodity with (B) between points within the same State, ‘‘(1) IN GENERAL.—An’’; not more than 6 of those counties in any 1 territory, or possession of the United States, (3) by adding at the end of subsection (a) State. A pilot program shall not be imple- or the District of Columbia, but through any the following: mented in any county for more than 3 of the place outside thereof; or ‘‘(2) EMPLOYING CERTAIN PERSONS.—A retail 1996 through 2002 calendar years. (C) within any territory or possession of food store or wholesale food concern shall be (c) ELIGIBLE PARTICIPANTS.— the United States or the District of Colum- disqualified from participation in the food (1) IN GENERAL.—In carrying out a pilot bia. stamp program if the store or concern know- program, the Secretary may contract with a (2) DEPARTMENT.—The term ‘‘Department’’ ingly employs a person who has been found producer who— means the United States Department of Ag- by the Secretary, or a Federal, State, or (A) is eligible to participate in a price sup- riculture. local court, to have, within the preceding 3- port program for a supported commodity; (3) EQUINE.—The term ‘‘equine’’ means any year period— (B) desires to participate in a pilot pro- member of the Equidae family. ‘‘(A) engaged in the trading of a firearm, gram; and (4) EQUINE FOR SLAUGHTER.—The term ammunition, an explosive, or a controlled (C) is located in an area selected for a pilot ‘‘equine for slaughter’’ means any equine substance (as defined in section 102 of the program. that is transported, or intended to be trans- Controlled Substances Act (21 U.S.C. 802)) for (2) CONTRACTS.—Each contract under para- ported, by vehicle to a slaughter facility or a coupon; or graph (1) shall set forth the terms and condi- intermediate handler from a sale, auction, or ‘‘(B) committed any act that constitutes a tions for participation in a pilot program. intermediate handler by a person engaged in violation of this Act or a State law relating (d) ELIGIBLE MARKETS.—Trades for futures the business of transporting equine for to using, presenting, transferring, acquiring, and options contracts under a pilot program slaughter. receiving, or possessing a coupon, authoriza- shall be carried out on commodity futures (5) FOAL.—The term ‘‘foal’’ means an tion card, or access device.’’; and and options markets designated as contract equine that is not more than 6 months of markets under the Commodity Exchange Act (4) in subsection (b)(3)(B), by striking ‘‘nei- age. (7 U.S.C. 1 et seq.) ther the ownership nor management of the (6) INTERMEDIATE HANDLER.—The term ‘‘in- store or food concern was aware’’ and insert- SEC. 514. TERMS AND CONDITIONS. termediate handler’’ means any person regu- ing ‘‘the ownership of the store or food con- (a) IN GENERAL.—To be eligible to partici- larly engaged in the business of receiving pate in any pilot program for any commod- cern was not aware’’. custody of equine for slaughter in connection ity conducted under this subtitle, a producer with the transport of the equine to a slaugh- On page 4–3, between lines 4 and 5, insert shall meet the eligibility requirements es- ter facility, including a stockyard, feedlot, the following: tablished under this subtitle (including regu- or assembly point. (c) CARRIED-OVER FUNDS.—20 percent of lations issued under this subtitle). (7) PERSON.—The term ‘‘person’’ means any any commodity supplemental food program (b) RECORDKEEPING.—Producers shall com- individual, partnership, firm, company, cor- funds carried over under section 5 of the Ag- pile, maintain, and submit (or authorize the poration, or association that regularly trans- riculture and Consumer Protection Act of compilation, maintenance, and submission) ports equine for slaughter in commerce, ex- 1973 (Public Law 93–86; 7 U.S.C. 612c note) of such documentation as the regulations cept that the term shall not include an indi- shall be available for administrative ex- governing any pilot program require. vidual or other entity that does not trans- penses of the program. SEC. 515. NOTICE. port equine for slaughter on a regular basis On page 5–1, between lines 1 and 2, insert (a) ALTERNATIVE PROGRAMS.—Pilot pro- as part of a commercial enterprise. the following: grams shall be alternatives to other related (8) SECRETARY.—The term ‘‘Secretary’’ Subtitle A—General Miscellaneous Provisions programs of the Department of Agriculture. means the Secretary of Agriculture. (b) NOTICE TO PRODUCERS.—The Secretary (9) VEHICLE.—The term ‘‘vehicle’’ means On page 5–11, strike lines 1 through 12 and shall provide notice to each producer partici- any machine, truck, tractor, trailer, or insert the following: pating in a pilot program that— semitrailer, or any combination thereof, pro- (3) shall use the funds to conduct restora- (1) the participation of the producer in a pelled or drawn by mechanical power and tion activities in the Everglades ecosystem, pilot program is voluntary; and used on a highway in the commercial trans- which may include acquiring private acreage (2) neither the United States, the Commod- portation of equine for slaughter. in the Everglades Agricultural Area includ- ity Credit Corporation, the Federal Crop In- (10) STALLION.—The term ‘‘stallion’’ means ing approximately 52,000 acres that is com- surance Corporation, the Department of Ag- any uncastrated male equine that is 1 year of monly known as the ‘‘Talisman tract’’. riculture, nor any other Federal agency is age or older. (c) TRANSFERRING FUNDS.—The Secretary authorized to guarantee that participants in SEC. 523. STANDARDS FOR HUMANE COMMER- of the Interior may transfer funds to the the pilot program will be better or worse off CIAL TRANSPORTATION OF EQUINE Army Corps of Engineers, the State of Flor- financially as a result of participation in a FOR SLAUGHTER. ida, or the South Florida Water Management pilot program than the producer would have (a) IN GENERAL.—Subject to the availabil- District to carry out subsection (b)(3). been if the producer had not participated in ity of appropriations, not later than 1 year (d) DEADLINE.—Not later than December 31, a pilot program. after the date of enactment of this subtitle, 1999, the Secretary of the Interior shall uti- SEC. 516. COMMODITY CREDIT CORPORATION. the Secretary shall issue, by regulation, lize the funds for restoration activities re- (a) IN GENERAL.—Pilot programs estab- standards for the humane commercial trans- ferred to in subsection (b)(3). lished under this subtitle shall be funded by portation by vehicle of equine for slaughter. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1097

(b) PROHIBITION.—No person engaged in the stating that the veterinarian inspected the SEC. 528. INTERFERENCE WITH ENFORCEMENT. regular business of transporting equine by equine on a specified date. (a) IN GENERAL.—Subject to subsection (b), vehicle for slaughter as part of a commercial SEC. 524. RECORDS. a person who forcibly assaults, resists, op- enterprise shall transport in commerce, to a (a) IN GENERAL.—A person engaged in the poses, impedes, intimidates, or interferes slaughter facility or intermediate handler, business of transporting equine for slaughter with any person while engaged in or on ac- an equine for slaughter except in accordance shall establish and maintain such records, count of the performance of an official duty with the standards and this subtitle. make such reports, and provide such infor- of the person under this subtitle shall be (c) MINIMUM REQUIREMENTS.—The stand- mation as the Secretary may, by regulation, fined not more than $5,000 or imprisoned not ards shall include minimum requirements require for the purposes of carrying out, or more than 3 years, or both. for the humane handling, care, treatment, determining compliance with, this subtitle. (b) WEAPONS.—If the person uses a deadly and equipment necessary to ensure the safe (b) MINIMUM REQUIREMENTS.—The records or dangerous weapon in connection with an and humane transportation of equine for shall include, at a minimum— action described in subsection (a), the person slaughter. The standards shall require, at a (1) the veterinary certificate of inspection; shall be fined not more than $10,000 or im- minimum, that— (2) the names and addresses of current prisoned not more than 10 years, or both. (1) no equine for slaughter shall be trans- owners and consignors, if applicable, of the SEC. 529. JURISDICTION OF COURTS. ported for more than 24 hours without being equine at the time of sale or consignment to Except as provided in section 840(a)(5), a unloaded from the vehicle and allowed to slaughter; and rest for at least 8 consecutive hours and district court of the United States in any ap- (3) the bill of sale or other documentation given access to adequate quantities of whole- propriate judicial district under section 1391 of sale for each equine. some food and potable water; of title 28, United States Code, shall have ju- (c) AVAILABILITY.—The records shall— (2) a vehicle shall provide adequate head- risdiction to specifically enforce this sub- (1) accompany the equine during transport room for an equine for slaughter with a min- title, to prevent and restrain a violation of to slaughter; imum of at least 6 feet, 6 inches of headroom this subtitle, and to otherwise enforce this (2) be retained by any person engaged in from the roof and beams or other structural subtitle. the business of transporting equine for members overhead to floor underfoot, except SEC. 530. CIVIL AND CRIMINAL PENALTIES. slaughter for a reasonable period of time, as that a vehicle transporting 6 equine or less (a) CIVIL PENALTIES.— determined by the Secretary, except that the shall provide a minimum of at least 6 feet of (1) IN GENERAL.—A person who violates this headroom from the roof and beams or other veterinary certificate of inspection shall be subtitle (including a regulation or standard structural members overhead to floor surrendered at the slaughter facility to an issued under this subtitle) shall be assessed a underfoot if none of the equine are over 16 employee or designee of the Department and civil penalty by the Secretary of not more hands; kept by the Department for a reasonable pe- than $2,000 for each violation. (3) the interior of a vehicle shall— riod of time, as determined by the Secretary; (2) SEPARATE OFFENSES.—Each equine (A) be free of protrusions, sharp edges, and and transported in violation of this subtitle shall harmful objects; (3) on request of an officer or employee of constitute a separate offense. Each violation (B) have ramps and floors that are ade- the Department, be made available at all and each day during which a violation con- quately covered with a nonskid nonmetallic reasonable times for inspection and copying tinues shall constitute a separate offense. surface; and by the officer or employee. (3) HEARINGS.—No penalty shall be assessed (C) be maintained in a sanitary condition; SEC. 525. AGENTS. under this subsection unless the person who (4) a vehicle shall— (a) IN GENERAL.—For purposes of this sub- is alleged to have violated this subtitle is (A) provide adequate ventilation and shel- title, the act, omission, or failure of an indi- given notice and opportunity for a hearing ter from extremes of weather and tempera- vidual acting for or employed by a person en- with respect to an alleged violation. ture for all equine; gaged in the business of transporting equine (4) FINAL ORDER.—An order of the Sec- (B) be of appropriate size, height, and inte- for slaughter, within the scope of the em- retary assessing a penalty under this sub- rior design for the number of equine being ployment or office of the individual, shall be section shall be final and conclusive unless carried to prevent overcrowding; and considered the act, omission, or failure of the aggrieved person files an appeal from the (C) be equipped with doors and ramps of the person engaging in the commercial order pursuant to paragraph (5). sufficient size and location to provide for transportation of equine for slaughter as (5) APPEALS.—Not later than 30 days after safe loading and unloading, including un- well as of the individual. entry of a final order of the Secretary issued loading during emergencies; (b) ASSISTANCE.—If an equine suffers a sub- pursuant to this subsection, a person ag- (5)(A) equine shall be positioned in the ve- stantial injury or illness while being trans- grieved by the order may seek review of the hicle by size; and ported for slaughter on a vehicle, the driver order in the appropriate United States Court (B) stallions shall be segregated from other of the vehicle shall seek prompt assistance of Appeals. The Court shall have exclusive equine; from a licensed veterinarian. jurisdiction to enjoin, set aside, suspend (in (6)(A) all equine for slaughter must be fit SEC. 526. COOPERATIVE AGREEMENTS. whole or in part), or to determine the valid- to travel as determined by an accredited vet- The Secretary is authorized to cooperate ity of the order. erinarian, who shall prepare a certificate of with States, political subdivisions of States, (6) NONPAYMENT OF PENALTY.—On a failure inspection, prior to loading for transport, State agencies (including State departments to pay the penalty assessed by a final order that— of agriculture and State law enforcement under this section, the Secretary shall re- (i) states that the equine were inspected agencies), and foreign governments to carry quest the Attorney General to institute a and satisfied the requirements of subpara- out and enforce this subtitle (including regu- civil action in a district court of the United graph (B); lations issued under this subtitle). States or other United States court for any (ii) includes a clear description of each SEC. 527. INVESTIGATIONS AND INSPECTIONS. district in which the person is found, resides, equine; and (a) IN GENERAL.—The Secretary is author- or transacts business, to collect the penalty. (iii) is valid for 7 days; ized to conduct such investigations or in- The court shall have jurisdiction to hear and (B) no equine shall be transported to spections as the Secretary considers nec- decide the action. slaughter if the equine is found to be— essary to enforce this subtitle (including any (b) CRIMINAL PENALTIES.— (i) suffering from a broken or dislocated regulation issued under this subtitle). (1) FIRST OFFENSE.—Subject to paragraph limb; (b) ACCESS.—For the purposes of conduct- (2), a person who knowingly violates this (ii) unable to bear weight on all 4 limbs; ing an investigation or inspection under sub- subtitle (or a regulation or standard issued (iii) blind in both eyes; or section (a), the Secretary shall, at all rea- under this subtitle) shall, on conviction of (iv) obviously suffering from severe illness, sonable times, have access to— the violation, be subject to imprisonment for injury, lameness, or physical debilitation (1) the place of business of any person en- not more than 1 year or a fine of not more that would make the equine unable to with- gaged in the business of transporting equine than $2,000, or both. stand the stress of transportation; for slaughter; (2) SUBSEQUENT OFFENSES.—On conviction (C) no foal may be transported for slaugh- (2) the facilities and vehicles used to trans- of a second or subsequent offense described ter; port the equine; and in paragraph (1), a person shall be subject to (D) no mare in foal that exhibits signs of (3) records required to be maintained under imprisonment for not more than 3 years or impending parturition may be transported section 834. to a fine of not more than $5,000, or both. for slaughter; and (c) ASSISTANCE TO OR DESTRUCTION OF SEC. 531. PAYMENTS FOR TEMPORARY OR MEDI- (E) no equine for slaughter shall be accept- EQUINE.—The Secretary shall issue such reg- CAL ASSISTANCE FOR EQUINE DUE ed by a slaughter facility unless the equine ulations as the Secretary considers nec- TO VIOLATIONS. is— essary to permit employees or agents of the From sums received as penalties, fines, or (i) inspected on arrival by an employee of Department to— forfeitures of property for any violation of the slaughter facility or an employee of the (1) provide assistance to any equine that is this subtitle (including a regulation issued Department; and covered by this subtitle (including any regu- under this subtitle), the Secretary shall pay (ii) accompanied by a certificate of inspec- lation issued under this subtitle); or the reasonable and necessary costs incurred tion issued by an accredited veterinarian, (2) destroy, in a humane manner, any such by any person in providing temporary care not more than 7 days before the delivery, equine found to be suffering. or medical assistance for any equine that S 1098 CONGRESSIONAL RECORD — SENATE February 7, 1996 needs the care or assistance due to a viola- the seller shall lose the benefit of the trust ‘‘(II) the overdue funds shall accrue inter- tion of this subtitle. under paragraph (1) on the earlier of— est in accordance with section 3717 of title SEC. 532. RELATIONSHIP TO STATE LAW. ‘‘(A) the date that is 15 business days after 31, United States Code. Nothing in this subtitle prevents a State date on which the seller receives notice of ‘‘(ii) CREDITING OF FUNDS.—Any late pay- from enacting or enforcing any law (includ- the dishonor; or ment penalty and any accrued interest col- ing a regulation) that is not inconsistent ‘‘(B) the date that is 30 days after the final lected under this subparagraph shall be cred- with this subtitle or that is more restrictive date for making payment under section 409, ited to the account that incurs the costs and than this subtitle. unless the seller gives written notice to the shall remain available until expended with- SEC. 533. AUTHORIZATION OF APPROPRIATIONS. dealer or market agency of the seller’s inten- out fiscal year limitation.’’. (a) IN GENERAL.—There are authorized to tion to preserve the trust and submits a copy SEC. 544. SWINE HEALTH PROTECTION. be appropriated for each fiscal year such of the notice to the Secretary. (a) TERMINATION OF STATE PRIMARY EN- sums as are necessary to carry out this sub- ‘‘(5) RIGHTS OF THIRD-PARTY PURCHASER.— FORCEMENT RESPONSIBILITY.—Section 10 of title. The trust established under paragraph (1) the Swine Health Protection Act (7 U.S.C. (b) LIMITATION.—No provision of this sub- shall have no effect on the rights of a bona 3809) is amended— title shall be effective, or be enforced against fide third-party purchaser of the livestock, (1) by redesignating subsection (c) as sub- any person, during a fiscal year unless funds without regard to whether the livestock are section (d); and to carry out this subtitle have been appro- delivered to the bona fide purchaser. (2) by inserting after subsection (b) the fol- priated for the fiscal year. ‘‘(e) JURISDICTION.—The district courts of lowing: ‘‘(c) REQUEST OF STATE OFFICIAL.— Subtitle D—Miscellaneous the United States shall have jurisdiction in a civil action— ‘‘(1) IN GENERAL.—On request of the Gov- SEC. 541. LIVESTOCK DEALER TRUST. ‘‘(1) by the beneficiary of a trust described ernor or other appropriate official of a State, Title III of the Packers and Stockyards in subsection (c)(1), to enforce payment of the Secretary may terminate, effective as Act, 1921 (7 U.S.C. 201 et seq.), is amended by the amount held in trust; and soon as the Secretary determines is prac- adding at the end the following: ‘‘(2) by the Secretary, to prevent and re- ticable, the primary enforcement respon- ‘‘SEC. 318. LIVESTOCK DEALER TRUST. strain dissipation of a trust described in sub- sibility of a State under subsection (a). In ‘‘(a) FINDINGS.—Congress finds that— section (c)(1).’’. terminating the primary enforcement re- ‘‘(1) a burden on and obstruction to com- SEC. 542. PLANTING OF ENERGY CROPS. sponsibility under this subsection, the Sec- merce in livestock is caused by financing ar- retary shall work with the appropriate State (a) FEED GRAINS.—The first sentence of rangements under which dealers and market section 105B(c)(1)(F)(i) of the Agricultural official to determine the level of support to agencies purchasing livestock on commis- Act of 1949 (7 U.S.C. 1444f(c)(1)(F)(i)) is be provided to the Secretary by the State sion encumber, give lenders security inter- amended by inserting ‘‘herbaceous perennial under this Act. ests in, or have liens placed on livestock pur- grass, short rotation woody coppice species ‘‘(2) REASSUMPTION.—Nothing in this sub- chased by the dealers and market agencies in of trees, other energy crops designated by section shall prevent a State from cash sales, or on receivables from or proceeds the Secretary with high energy content,’’ reassuming primary enforcement respon- of such sales, when payment is not made for after ‘‘mung beans,’’. sibility if the Secretary determines that the the livestock; and State meets the requirements of subsection (b) WHEAT.—The first sentence of section ‘‘(2) the carrying out of such arrangements 107B(c)(1)(F)(i) of the Agricultural Act of 1949 (a).’’. DVISORY COMMITTEE.—The Swine is contrary to the public interest. (7 U.S.C. 1445b–3a(c)(1)(F)(i)) is amended by (b) A URPOSE.—The purpose of this section Health Protection Act is amended— ‘‘(b) P inserting ‘‘herbaceous perennial grass, short is to remedy the burden on and obstruction (1) by striking section 11 (7 U.S.C. 3810); rotation woody coppice species of trees, to commerce in livestock described in para- and other energy crops designated by the Sec- graph (1) and protect the public interest. (2) by redesignating sections 12, 13, and 14 retary with high energy content,’’ after ‘‘(c) DEFINITIONS.—In this section: (7 U.S.C. 3811, 3812, and 3813) as sections 11, ‘‘mung beans,’’. ‘‘(1) CASH SALE.—The term ‘cash sale’ 12, and 13, respectively. SEC. 543. REIMBURSABLE AGREEMENTS. means a sale in which the seller does not ex- SEC. 545. COOPERATIVE WORK FOR PROTECTION, pressly extend credit to the buyer. Section 737 of Public Law 102–142 (7 U.S.C. MANAGEMENT, AND IMPROVEMENT ‘‘(2) TRUST.—The term ‘trust’ means 1 or 2277) is amended— OF NATIONAL FOREST SYSTEM. more assets of a buyer that (subsequent to a (1) by striking ‘‘SEC. 737. Funds’’ and in- The penultimate paragraph of the matter cash sale of livestock) constitutes the corpus serting the following: under the heading ‘‘FOREST SERVICE.’’ of of a trust held for the benefit of a seller and ‘‘SEC. 737. SERVICES FOR APHIS PERFORMED the first section of the Act of June 30, 1914 consists of— OUTSIDE THE UNITED STATES. (38 Stat. 430, chapter 131; 16 U.S.C. 498), is ‘‘(A) account receivables and proceeds ‘‘(a) IN GENERAL.—Funds’’; and amended— earned from the cash sale of livestock by a (2) by adding at the end the following: (1) by inserting ‘‘, management,’’ after dealer; ‘‘(b) REIMBURSABLE AGREEMENTS.— ‘‘the protection’’; ‘‘(B) account receivables and proceeds of a ‘‘(1) IN GENERAL.—The Secretary of Agri- (2) by striking ‘‘national forests,’’ and in- marketing agency earned on commission culture may enter into reimbursable fee serting ‘‘National Forest System,’’; from the cash sale of livestock; agreements with persons for preclearance at (3) by inserting ‘‘management,’’ after ‘‘pro- ‘‘(C) the inventory of the dealer or market- locations outside the United States of tection,’’ both places it appears; and ing agency; or plants, plant products, animals, and articles (4) by adding at the end the following new ‘‘(D) livestock involved in the cash sale, if for movement to the United States. sentences: ‘‘Payment for work undertaken the seller has not received payment in full ‘‘(2) OVERTIME, NIGHT, AND HOLIDAY WORK.— pursuant to this paragraph may be made for the livestock and a bona fide third-party Notwithstanding any other law, the Sec- from any appropriation of the Forest Service purchaser has not purchased the livestock retary of Agriculture may pay an employee that is available for similar work if a written from the dealer or marketing agency. of the Department of Agriculture preforming agreement so provides and reimbursement ‘‘(d) HOLDING IN TRUST.— services relating to imports into and exports will be provided by a cooperator in the same ‘‘(1) IN GENERAL.—The account receivables from the United States for overtime, night, fiscal year as the expenditure by the Forest and proceeds generated in a cash sale made and holiday work performed by the employee Service. A reimbursement received from a by a dealer or a market agency on commis- at a rate of pay established by the Secretary. cooperator that covers the proportionate sion and the inventory of the dealer or mar- ‘‘(3) REIMBURSEMENT.— share of the cooperator of the cost of the ket agency shall be held by the dealer or ‘‘(A) IN GENERAL.—The Secretary of Agri- work shall be deposited to the credit of the market agency in trust for the benefit of the culture may require persons for whom appropriation of the Forest Service from seller of the livestock until the seller re- preclearance services are performed to reim- which the payment was initially made or, if ceives payment in full for the livestock. burse the Secretary for any amounts paid by the appropriation is no longer available to ‘‘(2) EXEMPTION.—Paragraph (1) does not the Secretary for performance of the serv- the credit of an appropriation of the Forest apply in the case of a cash sale made by a ices. Service that is available for similar work. dealer or market agency if the total amount ‘‘(B) CREDITING OF FUNDS.—All funds col- The Secretary of Agriculture shall establish of cash sales made by the dealer or market lected under subparagraph (A) shall be cred- written rules that establish criteria to be agency during the preceding 12 months does ited to the account that incurs the costs and used to determine whether the acceptance of not exceed $250,000. shall remain available until expended with- contributions of money under this paragraph ‘‘(3) DISHONOR OF INSTRUMENT OF PAY- out fiscal year limitation. would adversely affect the ability of an offi- MENT.—A payment in a sale described in ‘‘(C) LATE PAYMENT PENALTY.— cer or employee of the United States Depart- paragraph (1) shall not be considered to be ‘‘(i) IN GENERAL.—On failure of a person to ment of Agriculture to carry out a duty or made if the instrument by which payment is reimburse the Secretary of Agriculture for program of the officer or employee in a fair made is dishonored. the costs of performance of preclearance and objective manner or would compromise, ‘‘(4) LOSS OF BENEFIT OF TRUST.—If an in- services— or appear to compromise, the integrity of strument by which payment is made in a ‘‘(I) the Secretary may assess a late pay- the program, officer, or employee. The Sec- sale described in paragraph (1) is dishonored, ment penalty; and retary of Agriculture shall establish written February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1099

rules that protect the interests of the Forest (2) DEPARTMENT.—The term ‘‘Department’’ shall not be considered to be Federal em- Service in cooperative work agreements.’’. means the Department of Agriculture. ployees. SEC. 546. AMENDMENT OF THE VIRUS-SERUM (3) DIRECTOR.—The term ‘‘Director’’ means (h) NOT A FEDERAL AGENCY.—The Graduate TOXIN ACT OF 1913. the Director of the Graduate School. School shall not be considered to be a Fed- The Act of March 4, 1913 (37 Stat. 828, chap- (4) GRADUATE SCHOOL.—The term ‘‘Grad- eral Agency for purposes of— ter 145), is amended in the eighth paragraph uate School’’ means the Graduate School of (1) chapter 171 of title 28, United States under the heading ‘‘BUREAU OF ANIMAL the United States Department of Agri- Code; INDUSTRY’’, commonly known as the culture. (2) section 552 or 552a of title 28, United ‘‘Virus-Serum Toxin Act of 1913’’, by striking (5) SECRETARY.—The term ‘‘Secretary’’ States Code; or the 10th sentence (21 U.S.C. 158) and insert- means the Secretary of Agriculture. (3) the Federal Advisory Committee Act (5 ing ‘‘A person, firm, or corporation that (c) FUNCTIONS AND AUTHORITY.— U.S.C. App.). knowingly violates any of the provisions of (1) IN GENERAL.—The Graduate School shall (i) ACCEPTANCE OF DONATIONS.—The Grad- this paragraph or regulations issued under continue as a nonappropriated fund instru- uate School shall not accept a donation from this paragraph, or knowingly forges, coun- mentality of the Department under the gen- a person that is actively engaged in a pro- terfeits, or, without authorization by the eral supervision of the Secretary. curement activity with the Graduate School Secretary of Agriculture, uses, alters, de- (2) ACTIVITIES.—The Graduate School shall or has an interest that may be substantially faces, or destroys any certificate, permit, li- develop and administer education, training, affected by the performance or nonperform- cense, or other document provided for in this and professional development activities, in- ance of an official duty of a member of the paragraph, may, for each violation, after cluding the provision of educational activi- Board or an employee of the Graduate written notice and opportunity for a hearing ties for Federal agencies, Federal employees, School. on the record, be assessed a civil penalty by nonprofit organizations, other entities, and (j) ADMINISTRATIVE PROVISIONS.—In order the Secretary of Agriculture of not more members of the general public. to carry out the functions of the Graduate than $5,000, or shall, on conviction, be as- (3) FEES.— School, the Graduate School may— sessed a criminal penalty of not more than (A) IN GENERAL.—The Graduate School (1) accept, use, hold, dispose, and admin- $10,000, imprisoned not more than 1 year, or may charge and retain fair and reasonable ister gifts, bequests, or devises of money, se- both. In the course of an investigation of a fees for the activities that it provides based curities, and other real or personal property suspected violation of this paragraph, the on the cost of the activities to the Graduate made for the benefit of, or in connection Secretary of Agriculture may issue subpoe- School. with, the Graduate School; nas requiring the attendance and testimony (B) NOT FEDERAL FUNDS.—Fees under sub- (2) notwithstanding any other law— of witnesses and the production of evidence paragraph (A) shall not be considered to be (A) acquire real property in the District of that relates to the matter under investiga- Federal funds and shall not required to be Columbia and in other places by lease, pur- tion. In determining the amount of a civil deposited in the Treasury of the United chase, or otherwise; penalty, the Secretary of Agriculture shall States. (B) maintain, enlarge, or remodel any such take into account the nature, circumstances, (4) NAME.—The Graduate School shall oper- property; and extent, and gravity of the violation, the abil- ate under the name ‘‘United States Depart- (C) have sole control of any such property; ity of the violator to pay the penalty, the ef- ment of Agriculture Graduate School’’ or (3) enter into contracts without regard to fect that the assessment would have on the such other name as the Graduate School the Federal Property and Administrative ability of the violator to continue to do busi- may adopt. Services Act of 1949 (40 U.S.C. 471) or any ness, any history of such violations by the (d) GENERAL ADMINISTRATION BOARD.— other law that prescribes procedures for the violator, the degree of culpability of the vio- (1) APPOINTMENT.—The Secretary shall ap- procurement of property or services by an lator, and such other matters as justice may point a General Administration Board to executive agency; require. An order assessing a civil penalty serve as a governing board subject to regula- (4) dispose of real and personal property shall be treated as a final order reviewable tion by the Secretary. without regard to the requirements of the under chapter 158 of title 28, United State’s (2) SUPERVISION.—The Graduate School Federal Property and Administrative Serv- Code. The Secretary of Agriculture may shall be subject to the supervision and direc- ices Act of 1949 (40 U.S.C. 471); and compromise, modify, or remit a civil penalty tion of the Board. (5) use the facilities and resources of the with or without conditions. The amount of a (3) DUTIES.—The Board shall— Department, on the condition that any costs civil penalty that is paid (including any (A) formulate broad policies in accordance incurred by the Department that are attrib- amount agreed on in compromise) may be with which the Graduate School shall be ad- utable solely to Graduate School operations deducted from any sums owing by the United ministered; and all costs incurred by the Graduate States to the violator. The total amount of (B) take all steps necessary to see that the School arising out of such operations shall civil penalties assessed against a violator highest possible educational standards are be borne by the fees paid by or on behalf of shall not exceed $300,000 for all such viola- maintained; students or by other means and not with tions adjudicated in a single proceeding. The (C) exercise general supervision over the Federal funds. validity of an order assessing a civil penalty administration of the Graduate School; and SEC. 549. STUDENT INTERN SUBSISTENCE PRO- shall not be subject to review in an action to (D) establish such bylaws, rules, and proce- GRAM. collect the civil penalty. The unpaid amount dures as may be necessary for the fulfillment (a) DEFINITION.—In this section, the term of a civil penalty not paid in full when due of the duties described in subparagraph (A), ‘‘student intern’’ means a person who— shall accrue interest at the rate of interest (B), and (C). (1) is employed by the Department of Agri- applicable to civil judgments of the courts of (4) DIRECTOR AND OTHER OFFICERS.—The culture to assist scientific, professional, ad- the United States.’’. Board shall select the Director and such ministrative, or technical employees of the SEC. 547. OVERSEAS TORT CLAIMS. other officers as the Board may consider nec- Department; and Title VII of Public Law 102–142 (105 Stat. essary, who shall serve on such terms and (2) is a student in good standing at an ac- 911) is amended by inserting after section 737 perform such duties as the Board may pre- credited college or university pursuing a (7 U.S.C. 2277) the following: scribe. course of study related to the field in which ‘‘SEC. 737A. OVERSEAS TORT CLAIMS. (5) BORROWING.—The Board may authorize the person is employed by the Department. ‘‘The Secretary of Agriculture may pay a the Director to borrow money on the credit (b) PAYMENT OF CERTAIN EXPENSES BY THE tort claim in the manner authorized in sec- of the Graduate School. SECRETARY.—The Secretary of Agriculture tion 2672 of title 28, United States Code, if (e) DIRECTOR OF THE GRADUATE SCHOOL.— may, out of user fee funds or funds appro- the claim arises outside the United States in (1) DUTIES.—The Director shall be respon- priated to any agency, pay for lodging ex- connection with activities of individuals who sible, subject to the supervision and direc- penses, subsistence expenses, and transpor- are performing services for the Secretary. A tion of the Board, for carrying out the func- tation expenses of a student intern (includ- claim may not be allowed under this section tions of the Graduate School. ing expenses of transportation to and from unless the claim is presented in writing to (2) INVESTMENT OF FUNDS.—The Board may the student intern’s residence at or near the the Secretary within 2 years after the date authorize the Director to invest funds held college or university attended by the student on which the claim accrues.’’. in excess of the current operating require- intern and the official duty station at which SEC. 548. GRADUATE SCHOOL OF THE UNITED ments of the Graduate School for purposes of the student intern is employed). STATES DEPARTMENT OF AGRI- maintaining a reasonable reserve. SEC. 550. CONVEYANCE OF LAND TO WHITE OAK CULTURE. (f) LIABILITY.—The Director and the mem- CEMETERY. (a) PURPOSE.—The purpose of this section bers of the Board shall not be held personally (a) IN GENERAL.— is to authorize the continued operation of liable for any loss or damage that may ac- (1) RELEASE OF INTEREST.—After execution the Graduate School as a nonappropriated crue to the funds of the Graduate School as of the agreement described in subsection (b), fund instrumentality of the Department of the result of any act or exercise of discretion the Secretary of Agriculture shall release Agriculture. performed in carrying out the duties de- the condition stated in the deed on the land (b) DEFINITIONS.—In this section: scribed in this section. described in subsection (c) that the land be (1) BOARD.—The term ‘‘Board’’ means the (g) EMPLOYEES.—Employees of the Grad- used for public purposes, and that if the land General Administration Board of the Grad- uate School are employees of a is not so used, that the land revert the Unit- uate School. nonappropriated fund instrumentality and ed States, on the condition that the land be S 1100 CONGRESSIONAL RECORD — SENATE February 7, 1996

used exclusively for cemetery purposes, and (2) OVERSIGHT COORDINATION.—The Sec- ‘‘(2) GRANTS.—The’’. that if the land is not so used, that the land retary of Agriculture shall provide oversight SEC. 554. WILDLIFE HABITAT INCENTIVES PRO- revert the United States. and coordination with respect to other Fed- GRAM. (2) BANKHEAD-JONES ACT.—Section 32(c) of eral departments and agencies to ensure (a) IN GENERAL.—The Secretary of Agri- the Bankhead-Jones Farm Tenant Act (7 intergovernmental cooperation in research culture, in consultation with the State Tech- U.S.C. 1011(c)) shall not apply to the release activities and to avoid duplication of Federal nical Committee, shall establish a program under paragraph (1). efforts. in the Natural Resources Conservation Serv- (b) AGREEMENT.—The Secretary of Agri- (d) COMPOSITION.— ice to be known as the Wildlife Habitat In- culture shall make the release under in sub- (1) IN GENERAL.—The Board shall be com- centive Program. section (a) on execution by the Board of posed of at least 17 members appointed by (b) COST-SHARE PAYMENTS.—The Program Trustees of the University of Arkansas, in the Secretary in consultation with the Ad- shall make cost-share payments to land- consideration of the release, of an agree- ministrator of the Environmental Protection owners to develop upland wildlife, wetland ment, satisfactory to the Secretary of Agri- Agency. wildlife, threatened and endangered species, culture, that— (2) REGIONAL REPRESENTATION.—The mem- fisheries, and other types of wildlife habitat (1) the Board of Trustees will not sell, bership of the Board shall be 2 persons from approved by the Secretary. lease, exchange, or otherwise dispose of the each of the 6 regions of the Natural Re- (c) FUNDING.—To carry out this section, land described in subsection (c) except to the sources Conservation Service, of whom 1 $10,000,000 shall be made available for each of White Oak Cemetery Association of Wash- from each region shall be an agricultural fiscal years 1996 through 2002 from funds ington County, Arkansas, or a successor or- producer. made available to carry out subchapter B of ganization, for exclusive use for an expan- (3) ATMOSPHERIC SCIENTIST.—At least 1 chapter 1 of subtitle D of title XII of the sion of the cemetery maintained by the As- member of the Board shall be an atmospheric Food Security Act of 1985 (16 U.S.C. 3831 et sociation; and scientist. seq.). (2) the proceeds of such a disposition of the (e) CHAIRPERSON.—The Chief of the Natural SEC. 555. INDIAN RESERVATIONS. land will be deposited and held in an account Resources Conservation Service shall— (a) INDIAN RESERVATION EXTENSION AGENT open to inspection by the Secretary of Agri- (1) serve as chairman of the Board; and PROGRAM.— culture, and used, if withdrawn from the ac- (2) provide technical support to the Board. (1) REAUTHORIZATION.—The program estab- count, for public purposes. (f) TERM.—Each member of the Board shall lished under section 1677 of the Food, Agri- (c) LAND DESCRIPTION.—The land described be appointed for a 3-year term, except that culture, Conservation, and Trade Act of 1990 in this subsection is the land conveyed to the the Secretary of Agriculture shall appoint 4 (7 U.S.C. 5930) is reauthorized through fiscal Board of Trustees of the University of Ar- of the initial members for a term of 1 year year 2002. kansas, with certain other land, by deed and 4 for a term of 2 years. EDUCED REGULATORY BURDEN.—On a de- dated November 18, 1953, comprising approxi- (2) R (g) MEETINGS.—The Board shall meet not termination by the Secretary of Agriculture mately 2.2 acres located within property of less than twice annually. the University of Arkansas in Washington, that a program carried out under section (h) COMPENSATION.—Members of the Board 1677 of the Act (7 U.S.C. 5930) has been satis- County, Arkansas, commonly known as the shall serve without compensation, but while ‘‘Savor property’’ and described as follows: factorily administered for not less than 2 away from their homes or regular place of years, the Secretary shall implement a re- The part of Section 20, Township 17 north, business in performance of services for the range 31 west, beginning at the north corner duced re-application process for the contin- Board, members of the Board shall be al- ued operation of the program in order to re- of the White Oak Cemetery and the Univer- lowed travel expenses, including a per diem sity of Arkansas Agricultural Experiment duce regulatory burdens on participating allowance in lieu of subsistence, in the same university and tribal entities. Station farm at Washington County road manner as persons employed in Government #874, running west approximately 330 feet, (b) MEMORANDUM OF AGREEMENT.— service are allowed travel expenses under (1) IN GENERAL.—Not later than January 6, thence south approximately 135 feet, thence section 5703 of title 5, United States Code. southeast approximately 384 feet, thence 1997, the Secretary shall develop and imple- (i) FUNDING.—The Board shall be funded ment a formal Memorandum of Agreement north approximately 330 feet to the point of using appropriations for conservation oper- beginning. with the 29 tribally controlled colleges eligi- ations. ble under Federal law to receive funds from SEC. 551. ADVISORY BOARD ON AGRICULTURAL SEC. 552. WATER SYSTEMS FOR RURAL AND NA- AIR QUALITY. the Secretary of Agriculture as partial land TIVE VILLAGES IN ALASKA. (a) FINDINGS.—Congress finds that— grant institutions. The Consolidated Farm and Rural Develop- (1) various studies have identified agri- (2) EQUITABLE PARTICIPATION.—The Memo- ment Act is amended by inserting after sec- culture as a major atmospheric polluter; randum shall establish programs to ensure tion 306C (7 U.S.C. 1926c) the following: (2) Federal research activities are under- that tribally-controlled colleges and Native way to determine the extent of the pollution ‘‘SEC. 306D. WATER SYSTEMS FOR RURAL AND NA- American communities equitably participate TIVE VILLAGES IN ALASKA. problem and the extent of the role of agri- in Department of Agriculture employment culture in the problem; and ‘‘(a) IN GENERAL.—The Secretary may programs, services, and resources. (3) any Federal policy decisions that may make grants to the State of Alaska for the SEC. 556. ICD REIMBURSEMENT FOR OVERHEAD result, and any Federal regulations that may benefit of rural or Native villages in Alaska EXPENSES. be imposed on the agricultural sector, should to provide for the development and construc- Section 1542(d)(1)(D) of the Food, Agri- be based on sound scientific findings; tion of water and wastewater systems to im- culture, Conservation, and Trade Act of 1990 (b) PURPOSE.—The purpose of this section prove the health and sanitation conditions in (Public Law 101–624;7 U.S.C. 5622 note) is is to establish an advisory board to assist those villages. amended by adding at the end the following: and provide the Secretary of Agriculture ‘‘(b) MATCHING FUNDS.—To be eligible to ‘‘Notwithstanding any other provision of with information, analyses, and policy rec- receive a grant under subsection (a), the law, the assistance shall include assistance ommendations for determining matters of State of Alaska shall provide equal matching for administrative and overhead expenses, to fact and technical merit and addressing sci- funds from non-Federal sources. the extent that the expenses were incurred entific questions dealing with particulate ‘‘(c) CONSULTATION WITH THE STATE OF pursuant to reimbursable agreements en- matter less than 10 microns that become ALASKA.—The Secretary shall consult with tered into prior to September 30, 1993, the ex- lodged in human lungs (known as ‘‘PM10’’) the State of Alaska on a method of penses do not exceed $2,000,000 per year, and and other airborne particulate matter or prioritizing the allocation of grants under the expenses were not incurred to provide in- gases that affect agricultural production subsection (a) according to the needs of, and formation to technology systems.’’. relative health and sanitation conditions in, yields and the economy. TITLE VI—CREDIT (c) ESTABLISHMENT.— each village. Subtitle A—Agricultural Credit (1) IN GENERAL.—The Secretary of Agri- ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— culture may establish a board to be known There is authorized to be appropriated to CHAPTER 1—FARM OWNERSHIP LOANS as the ‘‘Advisory Board on Agricultural Air carry out this section $15,000,000 for each of SEC. 601. LIMITATION ON DIRECT FARM OWNER- Quality’’ (referred to in this section as the fiscal years 1996 through 2002.’’. SHIP LOANS. ‘‘Board’’) to advise the Secretary, through SEC. 553. ELIGIBILITY FOR GRANTS TO BROAD- Section 302 of the Consolidated Farm and the Chief of the Natural Resources Conserva- CASTING SYSTEMS. Rural Development Act (7 U.S.C. 1922) is tion Service, with respect to carrying out Section 310B(j) of the Consolidated Farm amended by striking subsection (b) and in- this act and obligations agriculture incurred and Rural Development Act (7 U.S.C. 1932(j)) serting the following: under the Clean Air Act (42 U.S.C. 7401 et is amended by striking ‘‘SYSTEMS.—The’’ and ‘‘(b) DIRECT LOANS.— seq.) and the Act entitled ‘An Act to amend inserting the following: ‘‘SYSTEMS.— ‘‘(1) IN GENERAL.—Subject to paragraph (3), the Clean Air Act to provide for attainment ‘‘(1) DEFINITION OF STATEWIDE.—In this sub- the Secretary may only make a direct loan and maintenance of health protective na- section, the term ‘statewide’ means having a under this subtitle to a farmer or rancher tional ambient air quality standards, and for coverage area of not less than 90 percent of who has operated a farm or ranch for not less other purposes’, approved November 15, 1990 the population of a State and 90 percent of than 3 years and— (commonly known as the ‘Clean Air Act the rural land area of the State (as deter- ‘‘(A) is a qualified beginning farmer or Amendments of 1990’) (42 U.S.C. 7401 et seq.). mined by the Secretary). rancher; February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1101 ‘‘(B) has not received a previous direct appropriate level of insurance to be required that refinances the principal and interest farm ownership loan made under this sub- under paragraph (1). due on a direct loan made under this title title; or ‘‘(3) TRANSITIONAL PROVISION.—Paragraph that is outstanding on the date the loan is ‘‘(C) has not received a direct farm owner- (1) shall not apply until the Secretary makes guaranteed. ship loan under this subtitle more than 10 the determination required under paragraph ‘‘(6) BEGINNING FARMER LOANS GUARANTEED years before the date the new loan would be (2).’’. UP TO 95 PERCENT.—The Secretary may guar- made. SEC. 603. SOIL AND WATER CONSERVATION AND antee up to 95 percent of— ‘‘(2) YOUTH LOANS.—The operation of an en- PROTECTION. ‘‘(A) a farm ownership loan for acquiring a terprise by a youth under section 311(b) shall Section 304 of the Consolidated Farm and farm or ranch to a borrower who is partici- not be considered the operation of a farm or Rural Development Act (7 U.S.C. 1924) is pating in the down payment loan program ranch for purposes of paragraph (1). amended— under section 310E; or ‘‘(3) TRANSITION RULE.— (1) by striking subsections (b) and (c); ‘‘(B) an operating loan to a borrower who is ‘‘(A) IN GENERAL.—Subject to subpara- (2) by striking ‘‘SEC. 304. (a)(1) Loans’’ and participating in the down payment loan pro- graphs (B) and (C), paragraph (1) shall not inserting the following: gram under section 310E that is made during apply to a farmer or rancher who has a di- ‘‘SEC. 304. SOIL AND WATER CONSERVATION AND the period that the borrower has a direct rect loan outstanding under this subtitle on PROTECTION. loan for acquiring a farm or ranch.’’. the date of enactment of this paragraph. ‘‘(a) IN GENERAL.—Loans’’; CHAPTER 2—OPERATING LOANS ‘‘(B) LESS THAN 5 YEARS.—If, as of the date (3) by striking ‘‘(2) In making or insuring’’ SEC. 611. LIMITATION ON DIRECT OPERATING of enactment of this paragraph, a farmer or and inserting the following: LOANS. rancher has had a direct loan outstanding ‘‘(b) PRIORITY.—In making or guarantee- (a) IN GENERAL.—Section 311 of the Con- under this subtitle for less than 5 years, the ing’’; solidated Farm and Rural Development Act Secretary shall not make another loan to (4) by striking ‘‘(3) The Secretary’’ and in- (7 U.S.C. 1941) is amended by striking sub- the farmer or rancher under this subtitle serting the following: section (c) and inserting the following: after the date that is 10 years after the date ‘‘(c) LOAN MAXIMUM.—The Secretary’’; ‘‘(c) DIRECT LOANS.— of enactment of this paragraph. (5) by redesignating subparagraphs (A) ‘‘(1) IN GENERAL.—Subject to paragraph (3), ‘‘(C) 5 YEARS OR MORE.—If, as of the date of through (F) of subsection (a) (as amended by the Secretary may only make a direct loan enactment of this paragraph, a farmer or paragraph (2)) as paragraphs (1) through (6), under this subtitle to a farmer or rancher rancher has had a direct loan outstanding respectively; and who— under this subtitle for 5 years or more, the (6) by redesignating subparagraphs (A) and ‘‘(A) is a qualified beginning farmer or Secretary shall not make another loan to (B) of subsection (c) (as amended by para- rancher who has not operated a farm or the farmer or rancher under this subtitle graph (4)) as paragraphs (1) and (2), respec- ranch, or who has operated a farm or ranch after the date that is 5 years after the date tively. for not more than 5 years; of enactment of this paragraph.’’. SEC. 604. INTEREST RATE REQUIREMENTS. ‘‘(B) has not had a previous direct operat- SEC. 602. PURPOSES OF LOANS. Section 307(a)(3) of the Consolidated Farm ing loan under this subtitle; or Section 303 of the Consolidated Farm and and Rural Development Act (7 U.S.C. ‘‘(C) has not had a previous direct operat- Rural Development Act (7 U.S.C. 1923) is 1927(a)(3)) is amended— ing loan under this subtitle for more than 7 amended to read as follows: (1) in subparagraph (B), by inserting ‘‘sub- years. ‘‘SEC. 303. PURPOSES OF LOANS. paragraph (D) and in’’ after ‘‘Except as pro- ‘‘(2) YOUTH LOANS.—In this subsection, the ‘‘(a) ALLOWED PURPOSES.— vided in’’; and term ‘direct operating loan’ shall not include ‘‘(1) DIRECT LOANS.—A farmer or rancher (2) by adding at the end the following: a loan made to a youth under subsection (b). may use a direct loan made under this sub- ‘‘(D) JOINT FINANCING ARRANGEMENT.—If a ‘‘(3) TRANSITION RULE.—If, as of the date of title only for— direct farm ownership loan is made under enactment of this paragraph, a farmer or ‘‘(A) acquiring or enlarging a farm or this subtitle as part of a joint financing ar- rancher has received a direct operating loan ranch; rangement and the amount of the direct under this subtitle during each of 4 or more ‘‘(B) making capital improvements to a farm ownership loan does not exceed 50 per- previous years, the borrower shall be eligible farm or ranch; cent of the total principal amount financed to receive a direct operating loan under this ‘‘(C) paying loan closing costs related to under the arrangement, the interest rate on subtitle during 3 additional years after the acquiring, enlarging, or improving a farm or the direct farm ownership loan shall be 4 per- date of enactment of this paragraph.’’. OUTH ENTERPRISES NOT FARMING OR ranch; or cent annually.’’. (b) Y ‘‘(D) paying for activities to promote soil RANCHING.—Section 311(b) of the Consoli- SEC. 605. INSURANCE OF LOANS. dated Farm and Rural Development Act (7 and water conservation and protection under Section 308 of the Consolidated Farm and section 304 on the farm or ranch. U.S.C. 1941(b)) is amended by adding at the Rural Development Act (7 U.S.C. 1928) is end the following: ‘‘(2) GUARANTEED LOANS.—A farmer or amended to read as follows: rancher may use a loan guaranteed under ‘‘(4) YOUTH ENTERPRISES NOT FARMING OR this subtitle only for— ‘‘SEC. 308. FULL FAITH AND CREDIT. RANCHING.—The operation of an enterprise by ‘‘(A) acquiring or enlarging a farm or ‘‘(a) IN GENERAL.—A contract of insurance a youth under this subsection shall not be ranch; or guarantee executed by the Secretary considered the operation of a farm or ranch ‘‘(B) making capital improvements to a under this title shall be an obligation sup- under this title.’’. farm or ranch; ported by the full faith and credit of the SEC. 612. PURPOSES OF OPERATING LOANS. ‘‘(C) paying loan closing costs related to United States. Section 312 of the Consolidated Farm and acquiring, enlarging, or improving a farm or ‘‘(b) CONTESTABILITY.—A contract of insur- Rural Development Act (7 U.S.C. 1942) is ranch; ance or guarantee executed by the Secretary amended to read as follows: ‘‘(D) paying for activities to promote soil under this title shall be incontestable except ‘‘SEC. 312. PURPOSES OF LOANS. and water conservation and protection under for fraud or misrepresentation that the lend- ‘‘(a) IN GENERAL.—A direct loan may be section 304 on the farm or ranch; or er or any holder— made under this subtitle only for— ‘‘(E) refinancing indebtedness. ‘‘(1) has actual knowledge of at the time ‘‘(1) paying the costs incident to reorganiz- ‘‘(b) PREFERENCES.—In making or guaran- the contract or guarantee is executed; or ing a farming or ranching system for more teeing a loan for farm or ranch purchase, the ‘‘(2) participates in or condones.’’. profitable operation; Secretary shall give a preference to a person SEC. 606. LOANS GUARANTEED. ‘‘(2) purchasing livestock, poultry, or farm who— Section 309(h) of the Consolidated Farm or ranch equipment; ‘‘(1) has a dependent family; and Rural Development Act (7 U.S.C. 1929(h)) ‘‘(3) purchasing feed, seed, fertilizer, insec- ‘‘(2) to the extent practicable, is able to is amended by adding at the end the follow- ticide, or farm or ranch supplies, or to meet make an initial down payment; or ing: other essential farm or ranch operating ex- ‘‘(3) is an owner of livestock or farm or ‘‘(4) MAXIMUM GUARANTEE OF 90 PERCENT.— penses, including cash rent; ranch equipment that is necessary to suc- Except as provided in paragraph (5), a loan ‘‘(4) financing land or water development, cessfully carry out farming or ranching oper- guarantee under this title shall be for not use, or conservation; ations. more than 90 percent of the principal and in- ‘‘(5) paying loan closing costs; ‘‘(c) HAZARD INSURANCE REQUIREMENT.— terest due on the loan. ‘‘(6) assisting a farmer or rancher in ‘‘(1) IN GENERAL.—The Secretary may not ‘‘(5) REFINANCED LOANS GUARANTEED AT 95 effecting an addition to, or alteration of, the make a loan to a farmer or rancher under PERCENT.—The Secretary shall guarantee 95 equipment, facilities, or methods of oper- this subtitle unless the farmer or rancher percent of— ation of a farm or ranch to comply with a has, or agrees to obtain, hazard insurance on ‘‘(A) in the case of a loan that solely refi- standard promulgated under section 6 of the any real property to be acquired or improved nances a direct loan made under this title, Occupational Safety and Health Act of 1970 with the loan. the principal and interest due on the loan on (29 U.S.C. 655) or a standard adopted by a ‘‘(2) DETERMINATION.—Not later than 180 the date of the refinancing; or State under a plan approved under section 18 days after the date of enactment of this sub- ‘‘(B) in the case of a loan that is used for of the Act (29 U.S.C. 667), if the Secretary de- section, the Secretary shall determine the multiple purposes, the portion of the loan termines that without assistance under this S 1102 CONGRESSIONAL RECORD — SENATE February 7, 1996 paragraph the farmer or rancher is likely to ‘‘(A) review and adjust the farm or ranch SEC. 622. MAXIMUM EMERGENCY LOAN INDEBT- suffer substantial economic injury due to plan referred to in paragraph (1) with the EDNESS. compliance with the standard; borrower and reschedule the loan; Section 324 of the Consolidated Farm and ‘‘(7) training a limited-resource borrower ‘‘(B) extend additional credit; Rural Development Act (7 U.S.C. 1964) is receiving a loan under section 310D in main- ‘‘(C) use income proceeds to pay necessary amended by striking ‘‘SEC. 324. (a) No loan’’ taining records of farming and ranching op- farm, ranch, home, or other expenses; or and all that follows through the end of sub- erations; ‘‘(D) provide additional available loan serv- section (a) and inserting the following: ‘‘(8) training a borrower under section 359; icing.’’. ‘‘SEC. 324. TERMS OF LOANS. ‘‘(9) refinancing the indebtedness of a bor- SEC. 613. PARTICIPATION IN LOANS. ‘‘(a) MAXIMUM AMOUNT OF LOAN.—The Sec- rower if the borrower— Section 315 of the Consolidated Farm and retary may not make a loan under this sub- ‘‘(A) has refinanced a loan under this sub- Rural Development Act (7 U.S.C. 1945) is re- title that— title not more than 4 times previously; and pealed. ‘‘(1) exceeds the actual loss caused by a dis- ‘‘(B)(i) is a direct loan borrower under this SEC. 614. LINE-OF-CREDIT LOANS. aster; or title at the time of the refinancing and has Section 316 of the Consolidated Farm and ‘‘(2) would cause the total indebtedness of suffered a qualifying loss because of a natu- Rural Development Act (7 U.S.C. 1946) is the borrower under this subtitle to exceed ral disaster declared by the Secretary under amended by adding at the end the following: $500,000.’’. this title or a major disaster or emergency ‘‘(c) LINE-OF-CREDIT LOANS.— SEC. 623. INSURANCE OF EMERGENCY LOANS. designated by the President under the Rob- ‘‘(1) IN GENERAL.—A loan made or guaran- Section 328 of the Consolidated Farm and ert T. Stafford Disaster Relief and Emer- teed by the Secretary under this subtitle Rural Development Act (7 U.S.C. 1968) is re- gency Assistance Act (42 U.S.C. 5121 et seq.); may be in the form of a line-of-credit loan. pealed. or ‘‘(2) TERM.—A line-of-credit loan under CHAPTER 4—ADMINISTRATIVE ‘‘(ii) is refinancing a debt obtained from a paragraph (1) shall terminate not later than PROVISIONS creditor other than the Secretary; or 5 years after the date that the loan is made ‘‘(10) providing other farm, ranch, or home or guaranteed. SEC. 631. USE OF COLLECTION AGENCIES. needs, including family subsistence. ‘‘(3) ELIGIBILITY.—For purposes of deter- Section 331 of the Consolidated Farm and ‘‘(b) GUARANTEED LOANS.—A loan may be mining eligibility for a farm operating loan, Rural Development Act (7 U.S.C. 1981) is guaranteed under this subtitle only for— each year in which a farmer or rancher takes amended by adding at the end the following: ‘‘(1) paying the costs incident to reorganiz- an advance or draws on a line-of-credit loan ‘‘(d) PRIVATE COLLECTION AGENCY.—The ing a farming or ranching system for more the farmer or rancher shall be considered to Secretary may use a private collection agen- profitable operation; have received an operating loan for 1 year.’’. cy to collect a claim or obligation described in subsection (b)(5).’’. ‘‘(2) purchasing livestock, poultry, or farm SEC. 615. INSURANCE OF OPERATING LOANS. or ranch equipment; Section 317 of the Consolidated Farm and SEC. 632. NOTICE OF LOAN SERVICE PROGRAMS. ‘‘(3) purchasing feed, seed, fertilizer, insec- Rural Development Act (7 U.S.C. 1947) is re- Section 331D(a) of the Consolidated Farm ticide, or farm or ranch supplies, or to meet pealed. and Rural Development Act (7 U.S.C. other essential farm or ranch operating ex- SEC. 616. SPECIAL ASSISTANCE FOR BEGINNING 1981d(a)) is amended by striking ‘‘180 days de- penses, including cash rent; FARMERS AND RANCHERS. linquent in’’ and inserting ‘‘90 days past due ‘‘(4) financing land or water development, (a) IN GENERAL.—Section 318 of the Con- on’’. use, or conservation; solidated Farm and Rural Development Act SEC. 633. SALE OF PROPERTY. ‘‘(5) refinancing indebtedness; (7 U.S.C. 1948) is repealed. Section 335 of the Consolidated Farm and ‘‘(6) paying loan closing costs; (b) CONFORMING AMENDMENT.—Section 310F Rural Development Act (7 U.S.C. 1985) is ‘‘(7) assisting a farmer or rancher in of the Consolidated Farm and Rural Develop- amended— effecting an addition to, or alteration of, the ment Act (7 U.S.C. 1936) is repealed. (1) in subsection (b), by striking ‘‘sub- equipment, facilities, or methods of oper- SEC. 617. LIMITATION ON PERIOD FOR WHICH section (e)’’ and inserting ‘‘subsections (c) ation of a farm or ranch to comply with a BORROWERS ARE ELIGIBLE FOR and (e)’’; standard promulgated under section 6 of the GUARANTEED ASSISTANCE. (2) by striking subsection (c) and inserting Occupational Safety and Health Act of 1970 Section 319 of the Consolidated Farm and the following: (29 U.S.C. 655) or a standard adopted by a Rural Development Act (7 U.S.C. 1949) is ‘‘(c) SALE OF PROPERTY.— State under a plan approved under section 18 amended by striking subsection (b) and in- ‘‘(1) IN GENERAL.—Subject to this sub- of the Act (29 U.S.C. 667), if the Secretary de- serting the following: section and subsection (e)(1)(A), the Sec- termines that without assistance under this ‘‘(b) LIMITATION ON PERIOD BORROWERS ARE retary shall offer to sell real property that is paragraph the farmer or rancher is likely to ELIGIBLE FOR GUARANTEED ASSISTANCE.— acquired by the Secretary under this title in suffer substantial economic injury due to ‘‘(1) GENERAL RULE.—Subject to paragraph the following order and method of sale: compliance with the standard; (2), the Secretary shall not guarantee a loan ‘‘(A) ADVERTISEMENT.—Not later than 15 ‘‘(8) training a borrower under section 359; under this subtitle for a borrower for any days after acquiring real property, the Sec- or year after the 15th year that a loan is made retary shall publicly advertise the property ‘‘(9) providing other farm, ranch, or home to, or a guarantee is provided with respect for sale. needs, including family subsistence. to, the borrower under this subtitle. ‘‘(B) BEGINNING FARMER OR RANCHER.— ‘‘(c) HAZARD INSURANCE REQUIREMENT.— ‘‘(2) TRANSITION RULE.—If, as of October 28, ‘‘(i) IN GENERAL.—Not later than 75 days ‘‘(1) IN GENERAL.—The Secretary may not 1992, a farmer or rancher has received a di- after acquiring real property, the Secretary make a loan to a farmer or rancher under rect or guaranteed operating loan under this shall attempt to sell the property to a quali- this subtitle unless the farmer or rancher subtitle during each of 10 or more previous fied beginning farmer or rancher at current has, or agrees to obtain, hazard insurance on years, the borrower shall be eligible to re- market value based on a current appraisal. any property to be acquired with the loan. ceive a guaranteed operating loan under this ‘‘(ii) RANDOM SELECTION.—If more than 1 ‘‘(2) DETERMINATION.—Not later than 180 subtitle during 5 additional years after Octo- qualified beginning farmer or rancher offers days after the date of enactment of this ber 28, 1992.’’. to purchase the property, the Secretary shall paragraph, the Secretary shall determine the CHAPTER 3—EMERGENCY LOANS select between the qualified applicants on a appropriate level of insurance to be required SEC. 621. HAZARD INSURANCE REQUIREMENT. random basis. under paragraph (1). Section 321 of the Consolidated Farm and ‘‘(iii) APPEAL OF RANDOM SELECTION.—A ‘‘(3) TRANSITIONAL PROVISION.—Paragraph Rural Development Act (7 U.S.C. 1961) is random selection or denial by the Secretary (1) shall not apply until the Secretary makes amended by striking subsection (b) and in- of a beginning farmer or rancher for farm in- the determination required under paragraph serting the following: ventory property under this subparagraph (2). ‘‘(b) HAZARD INSURANCE REQUIREMENT.— shall be final and not administratively ap- ‘‘(d) PRIVATE RESERVE.— ‘‘(1) IN GENERAL.—The Secretary may not pealable. ‘‘(1) IN GENERAL.—Notwithstanding any make a loan to a farmer or rancher under ‘‘(C) PUBLIC SALE.—If no acceptable offer is other provision of this title, the Secretary this subtitle to cover a property loss unless received from a qualified beginning farmer may reserve the lesser of 10 percent or $5,000 the farmer or rancher had hazard insurance or rancher under subparagraph (B) within 75 of the amount of a direct loan made under that insured the property at the time of the days of acquiring the real property, the Sec- this subtitle, to be placed in a nonsupervised loss. retary shall, within 30 days, sell the property bank account that may be used at the discre- ‘‘(2) DETERMINATION.—Not later than 180 after public notice at a public sale, and, if no tion of the borrower for any necessary fam- days after the date of enactment of this acceptable bid is received, by negotiated ily living need or purpose that is consistent paragraph, the Secretary shall determine the sale, at the best price obtainable. with any farming or ranching plan agreed to appropriate level of insurance to be required ‘‘(2) TRANSITIONAL RULES.— by the Secretary and the borrower prior to under paragraph (1). ‘‘(A) PREVIOUS LEASE.—In the case of real the date of the loan. ‘‘(3) TRANSITIONAL PROVISION.—Paragraph property acquired prior to the date of enact- ‘‘(2) ADJUSTMENT OF RESERVE.—If a bor- (1) shall not apply until the Secretary makes ment of this subparagraph that the Sec- rower exhausts the amount of funds reserved the determination required under paragraph retary leased prior to the date of enactment under paragraph (1), the Secretary may— (2).’’. of this subparagraph, the Secretary shall February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1103 offer to sell the property according to para- (3) in subsection (e)— (iii) in subparagraph (B) (as redesignated graph (1) not later than 60 days after the (A) in paragraph (1)— by clause (ii)(II)), by striking ‘‘clause (i)’’ lease expires. (i) by striking subparagraphs (A) through and inserting ‘‘subparagraph (A)’’; ‘‘(B) PREVIOUSLY IN INVENTORY.—In the (C); (D) by striking paragraph (5); case of real property acquired prior to the (ii) by redesignating subparagraphs (D) (E) by striking paragraph (6); date of enactment of this subparagraph that through (G) as subparagraphs (A) through (F) by redesignating paragraph (4) as para- the Secretary has not leased, the Secretary (D), respectively; graph (3); and shall offer to sell the property according to (iii) in subparagraph (A) (as redesignated (G) by redesignating paragraphs (7) paragraph (1) not later than 60 days after the by clause (ii))— through (10) as paragraphs (4) through (7), re- date of enactment of this subparagraph. (I) in clause (i)— spectively. ‘‘(3) INTEREST.— (aa) in the matter preceding subclause (I), SEC. 634. DEFINITIONS. ‘‘(A) IN GENERAL.—Subject to subparagraph by striking ‘‘(G)’’ and inserting ‘‘(D)’’; Section 343(a) of the Consolidated Farm (B), any conveyance under this subsection (bb) by striking subclause (I) and inserting and Rural Development Act (7 U.S.C. 1991(a)) shall include all of the interest of the United the following: is amended— States, including mineral rights. ‘‘(I) the Secretary acquires property under (1) in paragraph (11)— ‘‘(B) CONSERVATION.—The Secretary may this title that is located within an Indian (A) in the text preceding subparagraph (A), for conservation purposes grant or sell an reservation; and’’; by striking ‘‘applicant—’’ and inserting ‘‘ap- easement, restriction, development right, or (cc) in subclause (II), by striking ‘‘, and’’ at plicant, regardless of whether participating similar legal right to a State, a political sub- the end and inserting a semicolon; and in a program under section 310E—’’; and division of a State, or a private nonprofit or- (dd) by striking subclause (III); and (B) in subparagraph (F)— ganization separately from the underlying (II) in clause (iii), by striking ‘‘The Sec- (i) by striking ‘‘15 percent’’ and inserting fee or other rights owned by the Secretary. retary shall’’ and all that follows through ‘‘35 percent’’; and ‘‘(4) OTHER LAW.—This title shall not be ‘‘of subparagraph (A),’’ and inserting ‘‘Not (ii) by inserting before the semicolon at subject to the Federal Property and Admin- later than 90 days after acquiring the prop- the end the following: ‘‘, except that this istrative Services Act of 1949 (40 U.S.C. 471 et erty, the Secretary shall’’; and subparagraph shall not apply to loans under seq.). (iv) in subparagraph (D) (as redesignated subtitle B’’; and ‘‘(5) LEASE OF PROPERTY.— by clause (ii))— (2) by adding at the end the following: ‘‘(A) IN GENERAL.—Subject to subparagraph (I) in clause (i), by striking ‘‘(D)’’ in the ‘‘(12) DEBT FORGIVENESS.— (B), the Secretary may not lease any real matter following subclause (IV) and insert- ‘‘(A) IN GENERAL.—The term ‘debt forgive- property acquired under this title. ing ‘‘(A)’’; ness’ means reducing or terminating a farm ‘‘(B) EXCEPTION.— (II) in clause (iii)(I), by striking ‘‘subpara- loan made or guaranteed under this title, in ‘‘(i) BEGINNING FARMER OR RANCHER.—Not- graphs (C)(i), (C)(ii), and (D)’’ and inserting a manner that results in a loss to the Sec- withstanding paragraph (1), the Secretary ‘‘subparagraph (A)’’; and retary, through— may lease or contract to sell a farm or ranch (III) by striking clause (v) and inserting acquired by the Secretary under this title to the following: ‘‘(i) writing-down or writing-off a loan under section 353; a beginning farmer or rancher if the begin- ‘‘(v) FORECLOSURE PROCEDURES.— ‘‘(ii) compromising, adjusting, reducing, or ning farmer or rancher qualifies for a credit ‘‘(I) NOTICE TO BORROWER.—If a borrower- sale or direct farm ownership loan but credit owner does not voluntarily convey to the charging-off a debt or claim under section sale authority for loans or direct farm own- Secretary real property described in clause 331; ership funds, respectively, are not available. (i), not less than 30 days before a foreclosure ‘‘(iii) paying a loss on a guaranteed loan ‘‘(ii) TERM.—A lease or contract to sell to sale of the property the Secretary shall pro- under section 357; or a beginning farmer or rancher under clause vide the Indian borrower-owner with the op- ‘‘(iv) discharging a debt as a result of (i) shall be until the earlier of— tion of— bankruptcy. ‘‘(I) the date that is 18 months after the ‘‘(aa) requiring the Secretary to assign the ‘‘(B) LOAN RESTRUCTURING.—The term ‘debt date of the lease or sale; or loan and security instruments to the Sec- forgiveness’ does not include consolidation, ‘‘(II) the date that direct farm ownership retary of the Interior, provided the Sec- rescheduling, reamortization, or deferral.’’. loan funds or credit sale authority for loans retary of the Interior agrees to the assign- SEC. 635. AUTHORIZATION FOR LOANS. become available to the beginning farmer or ment, releasing the Secretary of Agriculture Section 346 of the Consolidated Farm and rancher. from all further responsibility for collection Rural Development Act (7 U.S.C. 1994) is ‘‘(iii) INCOME-PRODUCING CAPABILITY.—In of any amounts with regard to the loan se- amended— determining the rental rate on real property cured by the real property; or (1) in the second sentence of subsection (a), leased under this subparagraph, the Sec- ‘‘(bb) requiring the Secretary to assign the by striking ‘‘with or without’’ and all that retary shall consider the income-producing loan and security instruments to the tribe follows through ‘‘administration’’ and in- capability of the property during the term having jurisdiction over the reservation in serting the following: ‘‘without authority for that the property is leased. which the real property is located, provided the Secretary to transfer amounts between ‘‘(6) DETERMINATION BY SECRETARY.— the tribe agrees to the assignment. the categories’’; and ‘‘(A) EXPEDITED REVIEW.—On the request of ‘‘(II) NOTICE TO TRIBE.—If a borrower-owner (2) by striking subsection (b) and inserting an applicant, the Secretary shall provide does not voluntarily convey to the Secretary the following: within 30 days of denial of the applicant’s ap- real property described in clause (i), not less ‘‘(b) AUTHORIZATION FOR LOANS.— plication for an expedited review by the ap- than 30 days before a foreclosure sale of the ‘‘(1) IN GENERAL.—The Secretary may make propriate State Director of whether the ap- property the Secretary shall provide written or guarantee loans under subtitles A and B plicant is a beginning farmer or rancher for notice to the Indian tribe that has jurisdic- from the Agricultural Credit Insurance Fund the purpose of acquiring farm inventory tion over the reservation in which the real established under section 309 in not more property. property is located of— than the following amounts: ‘‘(B) APPEAL.—The results of a review con- ‘‘(aa) the sale; ‘‘(A) FISCAL YEAR 1996.—For fiscal year 1996, ducted by a State Director under subpara- ‘‘(bb) the fair market value of the prop- $3,085,000,000, of which— graph (A) shall be final and not administra- erty; and ‘‘(i) $585,000,000 shall be for direct loans, of tively appealable. ‘‘(cc) the requirements of this subpara- which— ‘‘(C) EFFECTS OF REVIEW.— graph. ‘‘(I) $85,000,000 shall be for farm ownership ‘‘(i) IN GENERAL.—The Secretary shall ‘‘(III) ASSUMED LOANS.—If an Indian tribe loans under subtitle A; and maintain statistical data on the number and assumes a loan under subclause (I)— ‘‘(II) $500,000,000 shall be for operating results of reviews conducted under subpara- ‘‘(aa) the Secretary shall not foreclose the loans under subtitle B; and graph (A) and whether the reviews adversely loan because of any default that occurred ‘‘(ii) $2,500,000,000 shall be for guaranteed impact on— prior to the date of the assumption; loans, of which— ‘‘(I) selling farm inventory property to be- ‘‘(bb) the loan shall be for the lesser of the ‘‘(I) $600,000,000 shall be for farm ownership ginning farmers and ranchers; and outstanding principal and interest of the loans under subtitle A; and ‘‘(II) disposing of real property in inven- loan or the fair market value of the prop- ‘‘(II) $1,900,000,000 shall be for operating tory. erty; and loans under subtitle B. ‘‘(ii) NOTIFICATION.—The Secretary shall ‘‘(cc) the loan shall be treated as though ‘‘(B) FISCAL YEAR 1997.—For fiscal year 1997, notify the Committee on Agriculture of the the loan was made under Public Law 91–229 $3,165,000,000, of which— House of Representatives and the Committee (25 U.S.C. 488 et seq.).’’; ‘‘(i) $585,000,000 shall be for direct loans, of on Agriculture, Nutrition, and Forestry of (B) by striking paragraph (3); which— the Senate if the Secretary determines that (C) in paragraph (4)— ‘‘(I) $85,000,000 shall be for farm ownership reviews under subparagraph (A) are ad- (i) by striking subparagraph (B); loans under subtitle A; and versely impacting the selling of farm inven- (ii) in subparagraph (A)— ‘‘(II) $500,000,000 shall be for operating tory property to beginning farmers or ranch- (I) in clause (i), by striking ‘‘(i)’’; and loans under subtitle B; and ers or on disposing of real property in inven- (II) by redesignating clause (ii) as subpara- ‘‘(ii) $2,580,000,000 shall be for guaranteed tory.’’; and graph (B); and loans, of which— S 1104 CONGRESSIONAL RECORD — SENATE February 7, 1996 ‘‘(I) $630,000,000 shall be for farm ownership ‘‘(II) for fiscal year 1997, 25 percent; (B) by striking ‘‘approved lenders’’ and in- loans under subtitle A; and ‘‘(III) for fiscal year 1998, 25 percent; serting ‘‘lenders’’; and ‘‘(II) $1,950,000,000 shall be for operating ‘‘(IV) for fiscal year 1999, 30 percent; and (C) by striking ‘‘the Farmers Home Admin- loans under subtitle B. ‘‘(V) for each of fiscal years 2000 through istration’’; and ‘‘(C) FISCAL YEAR 1998.—For fiscal year 1998, 2002, 35 percent. (2) by striking subsection (h). $3,245,000,000, of which— ‘‘(iii) FUNDS RESERVED UNTIL SEPTEMBER (b) TECHNICAL AMENDMENTS.— ‘‘(i) $585,000,000 shall be for direct loans, of 1.—Funds reserved for beginning farmers or (1) Section 1320 of the Food Security Act of which— ranchers under this subparagraph shall be re- 1985 (Public Law 99–198; 7 U.S.C. 1999 note) is ‘‘(I) $85,000,000 shall be for farm ownership served only until September 1 of each fiscal amended by striking ‘‘Effective only’’ and all loans under subtitle A; and year. that follows through ‘‘1995, the’’ and insert- ‘‘(II) $500,000,000 shall be for operating ‘‘(B) GUARANTEED LOANS.— ing ‘‘The’’. loans under subtitle B; and ‘‘(i) FARM OWNERSHIP LOANS.—Of the (2) Section 351(a) of the Consolidated Farm ‘‘(ii) $2,660,000,000 shall be for guaranteed amounts made available under paragraph (1) and Rural Development Act (7 U.S.C. 1999) is loans, of which— for guaranteed farm ownership loans, the amended— ‘‘(I) $660,000,000 shall be for farm ownership Secretary shall reserve 25 percent for quali- (A) by striking ‘‘SEC. 351. (a) The’’ and in- loans under subtitle A; and fied beginning farmers and ranchers. serting the following: ‘‘(II) $2,000,000,000 shall be for operating ‘‘(ii) OPERATING LOANS.—Of the amounts ‘‘SEC. 351. INTEREST RATE REDUCTION PRO- loans under subtitle B. made available under paragraph (1) for guar- GRAM. ‘‘(D) FISCAL YEAR 1999.—For fiscal year 1999, anteed operating loans, the Secretary shall ‘‘(a) ESTABLISHMENT OF PROGRAM.— $3,325,000,000, of which— reserve 40 percent for qualified beginning ‘‘(1) IN GENERAL.—The’’; and ‘‘(i) $585,000,000 shall be for direct loans, of farmers and ranchers. (B) by adding at the end the following: which— ‘‘(iii) FUNDS RESERVED UNTIL APRIL 1.— ‘‘(2) TERMINATION OF AUTHORITY.—The au- ‘‘(I) $85,000,000 shall be for farm ownership Funds reserved for beginning farmers or thority provided by this subsection shall ter- loans under subtitle A; and ranchers under this subparagraph shall be re- ‘‘(II) $500,000,000 shall be for operating served only until April 1 of each fiscal year. minate on September 30, 2002.’’. loans under subtitle B; and ‘‘(C) RESERVED FUNDS FOR ALL QUALIFIED SEC. 637. HOMESTEAD PROPERTY. ‘‘(ii) $2,740,000,000 shall be for guaranteed BEGINNING FARMERS AND RANCHERS.—If a Section 352(c) of the Consolidated Farm loans, of which— qualified beginning farmer or rancher meets and Rural Development Act (7 U.S.C. 2000(c)) ‘‘(I) $690,000,000 shall be for farm ownership the eligibility criteria for receiving a direct is amended— loans under subtitle A; and or guaranteed loan under section 302, 310E, or (1) in paragraph (1)(A), by striking ‘‘90’’ ‘‘(II) $2,050,000,000 shall be for operating 311, the Secretary shall make or guarantee each place it appears and inserting ‘‘30’’; and loans under subtitle B. the loan if sufficient funds reserved under (2) in paragraph (6), by striking ‘‘Within ‘‘(E) FISCAL YEAR 2000.—For fiscal year 2000, this paragraph are available to make or 30’’ and all that follows through ‘‘title,’’ and $3,435,000,000, of which— guarantee the loan. insert ‘‘Not later than the date of acquisi- ‘‘(i) $585,000,000 shall be for direct loans, of ‘‘(3) TRANSFER FOR DOWN PAYMENT LOANS.— tion of the property securing a loan made which— ‘‘(A) IN GENERAL.—Notwithstanding sub- under this title (or, in the case of real prop- ‘‘(I) $85,000,000 shall be for farm ownership section (a), subject to subparagraph (B)— erty in inventory on the effective date of the loans under subtitle A; and ‘‘(i) beginning on August 1 of each fiscal Agricultural Reform and Improvement Act ‘‘(II) $500,000,000 shall be for operating year, the Secretary shall use available of 1996, not later than 5 days after the date loans under subtitle B; and unsubsidized guaranteed farm operating loan of enactment of the Act),’’ and by striking ‘‘(ii) $2,850,000,000 shall be for guaranteed funds to fund approved direct farm owner- the second sentence. loans, of which— ship loans to beginning farmers and ranchers SEC. 638. RESTRUCTURING. ‘‘(I) $750,000,000 shall be for farm ownership under the down payment loan program es- Section 353 of the Consolidated Farm and loans under subtitle A; and tablished under section 310E; and Rural Development Act (7 U.S.C. 2001) is ‘‘(II) $2,100,000,000 shall be for operating ‘‘(ii) beginning on September 1 of each fis- amended— loans under subtitle B. cal year, the Secretary shall use available (1) in subsection (c)— ‘‘(F) FISCAL YEAR 2001.—For fiscal year 2001, unsubsidized guaranteed farm operating loan (A) in paragraph (3) by striking subpara- $3,435,000,000, of which— funds to fund approved direct farm owner- graph (C) and inserting the following: ‘‘(i) $585,000,000 shall be for direct loans, of ship loans to beginning farmers and ranch- ‘‘(C) CASH FLOW MARGIN.— which— ers. ‘‘(i) ASSUMPTION.—For the purpose of as- ‘‘(I) $85,000,000 shall be for farm ownership ‘‘(B) LIMITATION.—The Secretary shall sessing under subparagraph (A) the ability of loans under subtitle A; and limit the transfer of funds under subpara- ‘‘(II) $500,000,000 shall be for operating a borrower to meet debt obligations and con- graph (A) so that all guaranteed farm operat- tinue farming operations, the Secretary loans under subtitle B; and ing loans that have been approved, or will be ‘‘(ii) $2,850,000,000 shall be for guaranteed shall assume that the borrower needs up to approved, during the fiscal year shall be 110 percent of the amount indicated for pay- loans, of which— funded to extent of appropriated amounts. ‘‘(I) $750,000,000 shall be for farm ownership ment of farm operating expenses, debt serv- ‘‘(4) TRANSFER FOR CREDIT SALES OF FARM ice obligations, and family living expenses. loans under subtitle A; and INVENTORY PROPERTY.— ‘‘(ii) AVAILABLE INCOME.—If an amount up ‘‘(II) $2,100,000,000 shall be for operating ‘‘(A) IN GENERAL.—Notwithstanding sub- loans under subtitle B. to 110 percent of the amount determined section (a), subject to subparagraphs (B) and under subparagraph (A) is available, the Sec- ‘‘(G) FISCAL YEAR 2002.—For fiscal year 2002, (C), beginning on September 1 of each fiscal $3,435,000,000, of which— retary shall consider the income of the bor- year, the Secretary may use available emer- rower to be adequate to meet all expenses, ‘‘(i) $585,000,000 shall be for direct loans, of gency disaster loan funds appropriated for which— including the debt obligations of the bor- the fiscal year to fund the credit sale of farm rower.’’; and ‘‘(I) $85,000,000 shall be for farm ownership real estate in the inventory of the Secretary. loans under subtitle A; and (B) by striking paragraph (6) and inserting ‘‘(B) SUPPLEMENTAL APPROPRIATIONS.—The the following: ‘‘(II) $500,000,000 shall be for operating transfer authority provided under subpara- ‘‘(6) TERMINATION OF LOAN OBLIGATIONS.— loans under subtitle B; and graph (A) does not include any emergency ‘‘(ii) $2,850,000,000 shall be for guaranteed The obligations of a borrower to the Sec- disaster loan funds made available to the retary under a loan shall terminate if— loans, of which— Secretary for any fiscal year as a result of a ‘‘(I) $750,000,000 shall be for farm ownership ‘‘(A) the borrower satisfies the require- supplemental appropriation made by Con- ments of paragraphs (1) and (2) of subsection loans under subtitle A; and gress. ‘‘(II) $2,100,000,000 shall be for operating (b); ‘‘(C) LIMITATION.—The Secretary shall ‘‘(B) the value of the restructured loan is loans under subtitle B. limit the transfer of funds under subpara- ‘‘(2) BEGINNING FARMERS AND RANCHERS.— less than the recovery value; and graph (A) so that all emergency disaster ‘‘(C) not later than 90 days after receipt of ‘‘(A) DIRECT LOANS.— loans that have been approved, or will be ap- ‘‘(i) FARM OWNERSHIP LOANS.—Of the the notification described in paragraph proved, during the fiscal year shall be funded (4)(B), the borrower pays (or obtains third- amounts made available under paragraph (1) to extent of appropriated amounts.’’. for direct farm ownership loans, the Sec- party financing to pay) the Secretary an SEC. 636. LIST OF CERTIFIED LENDERS AND IN- amount equal to the current market value.’’; retary shall reserve 70 percent of available VENTORY PROPERTY DEMONSTRA- funds for qualified beginning farmers and TION PROJECT. (2) by striking subsection (k); and (3) by redesignating subsections (l) through ranchers. (a) IN GENERAL.—Section 351 of the Con- ‘‘(ii) OPERATING LOANS.—Of the amounts solidated Farm and Rural Development Act (p) as subsections (k) through (o), respec- made available under paragraph (1) for direct (7 U.S.C. 1999) is amended— tively. operating loans, the Secretary shall reserve (1) in subsection (f)— SEC. 639. TRANSFER OF INVENTORY LANDS. for qualified beginning farmers and ranch- (A) by striking ‘‘Each Farmers Home Ad- Section 354 of the Consolidated Farm and ers— ministration county supervisor’’ and insert- Rural Development Act (7 U.S.C. 2002) is ‘‘(I) for fiscal year 1996, 25 percent; ing ‘‘The Secretary’’; amended— February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1105 (1) in the matter preceding paragraph (1), Congress deliberates on the credit needs of CHAPTER 5—GENERAL PROVISIONS by striking ‘‘The Secretary, without reim- rural America and the availability of credit SEC. 651. CONFORMING AMENDMENTS. bursement,’’ and inserting the following: to satisfy the needs of rural America. (a) Section 307(a) of the Consolidated Farm ‘‘(a) IN GENERAL.—Subject to subsection ‘‘(c) ITEMS IN STUDY.—The study should be and Rural Development Act (7 U.S.C. 1927(a)) (b), the Secretary’’; is amended— (2) by striking paragraph (2) and inserting based on the most current available data and should include— (1) in paragraph (4), by striking ‘‘304(b), the following: 306(a)(1), and 310B’’ and inserting ‘‘306(a)(1) ‘‘(2) that is eligible to be disposed of in ac- ‘‘(1) rural demand for credit from the Farm Credit System, the ability of the Farm Cred- and 310B’’; and cordance with section 335; and’’; and (2) in paragraph (6)(B)— (3) by adding at the end the following: it System to meet the demand, and the ex- tent to which the Farm Credit System pro- (A) by striking clauses (i), (ii), and (vii); ‘‘(b) CONDITIONS.—The Secretary may not (B) in clause (v), by adding ‘‘and’’ at the transfer any property or interest under sub- vided loans to satisfy the demand; ‘‘(2) rural demand for credit from the na- end; section (a) unless— (C) in clause (vi), by striking ‘‘, and’’ at the ‘‘(1) at least 2 public notices are given of tion’s banking system, the ability of banks to meet the demand, and the extent to which end and inserting a period; and the transfer; (D) by redesignating clauses (iii) through ‘‘(2) if requested, at least 1 public meeting banks provided loans to satisfy the demand; ‘‘(3) rural demand for credit from the Sec- (vi) as clauses (i) through (iv), respectively. is held prior to the transfer; and (b) The second sentence of section 309(g)(1) retary, the ability of the Secretary to meet ‘‘(3) the Governor and at least 1 elected of the Consolidated Farm and Rural Develop- the demand, and the extent to which the county official are consulted prior to the ment Act (7 U.S.C. 1929(g)(1)) is amended by Secretary provided loans to satisfy the de- transfer.’’. striking ‘‘section 308,’’. mand; SEC. 640. IMPLEMENTATION OF TARGET PARTICI- (c) Section 309A of the Consolidated Farm PATION RATES. ‘‘(4) rural demand for credit from other and Rural Development Act (7 U.S.C. 1929a) Section 355 of the Consolidated Farm and Federal agencies, the ability of the agencies is amended— Rural Development Act (7 U.S.C. 2003) is to meet the demand, and the extent to which (1) in the second sentence of subsection (a), amended by adding at the end the following: the agencies provided loans to satisfy the de- by striking ‘‘304(b), 306(a)(1), 306(a)(14), 310B, mand; ‘‘(f) IMPLEMENTATION CONSISTENT WITH SU- and 312(b)’’ and inserting ‘‘306(a)(1), ‘‘(5) what measure or measures exist to PREME COURT HOLDING.—Not later than 180 306(a)(14), and 310B’’; and days after the date of enactment of this sub- gauge the overall demand for rural credit (2) in subsection (b), by striking ‘‘and sec- section, the Secretary shall ensure that the and the extent to which rural demand for tion 308’’. implementation of this section is consistent credit is satisfied, and what the measures (d) Section 310B(d) of the Consolidated with the holding of the Supreme Court in have shown; Farm and Rural Development Act (7 U.S.C. Adarand Constructors, Inc. v. Federico Pena, ‘‘(6) a comparison of the interest rates and 1932(d)) is amended— Secretary of Transportation, 63 U.S.L.W. 4523 terms charged by the Farm Credit System (1) by striking ‘‘sections 304(b), 310B, and (U.S. June 12, 1995).’’. Farm Credit Banks, production credit asso- 312(b)’’ each place it appears in paragraphs ciations, and banks for cooperatives with the SEC. 641. DELINQUENT BORROWERS AND CREDIT (2), (3), and (4) and inserting ‘‘this section’’; STUDY. rates and terms charged by the nation’s and The Consolidated Farm and Rural Develop- banks for credit of comparable risk and ma- (2) in paragraph (6), by striking ‘‘this sec- ment Act (7 U.S.C. 1921 et seq.) is amended turity; tion, section 304, or section 312’’ and insert- by adding at the end the following: ‘‘(7) the advantages and disadvantages of ing ‘‘this section’’. the modernization and expansion proposals (e) The first sentence of section 310D(a) of ‘‘SEC. 372. PAYMENT OF INTEREST AS A CONDI- of the Farm Credit System on the Farm TION OF LOAN SERVICING FOR BOR- the Consolidated Farm and Rural Develop- ROWERS. Credit System, the nation’s banking system, ment Act (7 U.S.C. 1934(a)) is amended by ‘‘The Secretary may not reschedule or rural users of credit, local rural commu- striking ‘‘paragraphs (1) through (5) of sec- reamortize a loan for a borrower under this nities, and the Federal Government, includ- tion 303(a), or subparagraphs (A) through (E) title who has not requested consideration ing— of section 304(a)(1)’’ and inserting ‘‘section under section 331D(e) unless the borrower ‘‘(A) any added risk to the safety and 303(a), or paragraphs (1) through (5) of sec- pays a portion, as determined by the Sec- soundness of the Farm Credit System that tion 304(b)’’. retary, of the interest due on the loan. may result from approval of a proposal; and (f) Section 311(b)(1) of the Consolidated ‘‘(B) any positive or adverse impacts on ‘‘SEC. 373. LOAN AND LOAN SERVICING LIMITA- Farm and Rural Development Act (7 U.S.C. TIONS competition between the Farm Credit Sys- 1941(b)(1)) is amended by striking ‘‘and for tem and the nation’s banks in providing ‘‘(a) DELINQUENT BORROWERS PROHIBITED the purposes specified in section 312’’. credit to rural users; FROM OBTAINING DIRECT OPERATING LOANS.— (g) Section 316(a) of the Consolidated Farm ‘‘(8) the nature and extent of the The Secretary may not make a direct oper- and Rural Development Act (7 U.S.C. 1946(a)) unsatisfied rural credit need that the Farm ating loan under subtitle B to a borrower is amended by striking paragraph (3). Credit System proposal are supposed to ad- who is delinquent on any loan made or guar- (h) Section 343 of the Consolidated Farm dress and what aspects of the present Farm anteed under this title. and Rural Development Act (7 U.S.C. 1991) is Credit System prevent the Farm Credit Sys- ‘‘(b) LOANS PROHIBITED FOR BORROWERS amended— tem from meeting the need; THAT HAVE RECEIVED DEBT FORGIVENESS.— (1) in subsection (a)(10), by striking ‘‘recre- ‘‘(9) the advantages and disadvantages of ‘‘(1) IN GENERAL.—Except as provided in ation loan (RL) under section 304,’’; and paragraph (2), the Secretary may not make the proposal by commercial bankers to allow (2) in subsection (b)— or guarantee a loan under this title to a bor- banks access to the Farm Credit System as (A) in the matter preceding paragraph (1), rower who received debt forgiveness under a funding source on the Farm Credit System, by striking ‘‘351(h),’’; and this title. the nation’s banking system, rural users of (B) by striking paragraph (4) and inserting credit, local rural communities, and the Fed- ‘‘(2) EXCEPTION.—The Secretary may make the following: a direct or guaranteed farm operating loan eral Government, including— ‘‘(4) PRESERVATION LOAN SERVICE PRO- for paying annual farm or ranch operating ‘‘(A) any added risk to the safety and GRAM.—The term ‘‘preservation loan service expenses to a borrower who was restructured soundness of the Farm Credit System that program’’ means homestead retention as au- with debt write-down under section 353. may result from approval of the proposal; thorized under section 352.’’. and ‘‘(c) NO MORE THAT 1 DEBT FORGIVENESS (i) The first sentence of section 344 of the ‘‘(B) any positive or adverse impacts on FOR A BORROWER ON A DIRECT LOAN.—The Consolidated Farm and Rural Development Secretary may not provide debt forgiveness competition between the Farm Credit Sys- Act (7 U.S.C. 1992) is amended by striking to a borrower on a direct loan made under tem and the nation’s banks in providing ‘‘304(b), 306(a)(1), 310B, 312(b), or 312(c)’’ and this title if the borrower has received debt credit to rural users; and inserting ‘‘306(a)(1), 310B, or 312(c)’’. forgiveness on another direct loan under this ‘‘(10) problems that commercial banks (j) Section 353(l) of the Consolidated Farm title. have in obtaining capital for lending in rural and Rural Development Act (as redesignated areas, how access to Farm Credit System by section 638(3)) is further amended by ‘‘SEC. 374. CREDIT STUDY. funds would improve the availability of cap- striking ‘‘and subparagraphs (A)(i) and (C)(i) ‘‘(a) IN GENERAL.—The Secretary of Agri- ital in rural areas in ways that cannot be of section 335(e)(1),’’. culture shall perform a study and report to achieved in the present system, and the pos- Subtitle B—Farm Credit System the Committee on Agriculture in the House sible effects on the viability of the Farm of Representatives and the Committee on CHAPTER 1—AGRICULTURAL MORTGAGE Credit System of granting banks access to SECONDARY MARKET Agriculture, Nutrition, and Forestry in the Farm Credit System funds. Senate on the demand for and availability of SEC. 661. DEFINITION OF REAL ESTATE. credit in rural areas for agriculture, rural ‘‘(d) INTERAGENCY TASK FORCE.—In com- Section 8.0(1)(B)(ii) of the Farm Credit Act housing, and rural development. pleting the study, the Secretary shall use, of 1971 (12 U.S.C. 2279aa(1)(B)(ii)) is amended ‘‘(b) PURPOSE.—The purpose of the study is among other things, data and information by striking ‘‘with a purchase price’’ and in- to ensure that Congress has current and obtained by the interagency task force on serting ‘‘, excluding the land to which the comprehensive information to consider as rural credit.’’. dwelling is affixed, with a value’’. S 1106 CONGRESSIONAL RECORD — SENATE February 7, 1996 SEC. 662. DEFINITION OF CERTIFIED FACILITY. (3) in subsection (g)(2), by striking ‘‘section for which the Corporation has provided a Section 8.0(3) of the Farm Credit Act of 8.0(9)(B))’’ and inserting ‘‘section 8.0(9))’’. guarantee, if the provision— 1971 (12 U.S.C. 2279aa(3)) is amended— SEC. 668. MANDATORY RESERVES AND SUBORDI- ‘‘(1) limits the rate or amount of interest, (1) in subparagraph (A), by striking ‘‘a sec- NATED PARTICIPATION INTERESTS discount points, finance charges, or other ondary marketing agricultural loan’’ and in- ELIMINATED. charges that may be charged, taken, re- serting ‘‘an agricultural mortgage market- (a) GUARANTEE OF QUALIFIED LOANS.—Sec- ceived, or reserved by an agricultural lender ing’’; and tion 8.6 of the Farm Credit Act of 1971 (12 or a certified facility; or (2) in subparagraph (B), by striking ‘‘, but U.S.C. 2279aa–6) is amended by striking sub- ‘‘(2) limits or prohibits a prepayment pen- only’’ and all that follows through ‘‘(9)(B)’’. section (b). alty (either fixed or declining), yield mainte- SEC. 663. DUTIES OF FEDERAL AGRICULTURAL (b) RESERVES AND SUBORDINATED PARTICI- nance, or make-whole payment that may be MORTGAGE CORPORATION. PATION INTERESTS.—Section 8.7 of the Farm charged, taken, or received by an agricul- Section 8.1(b) of the Farm Credit Act of Credit Act of 1971 (12 U.S.C. 2279aa–7) is re- tural lender or a certified facility in connec- 1971 (12 U.S.C. 2279aa–1(b)) is amended— pealed. tion with the full or partial payment of the (1) in paragraph (2), by striking ‘‘and’’ at (c) CONFORMING AMENDMENTS.— principal amount due on a loan by a bor- the end; (1) Section 8.0(9)(B)(i) of the Farm Credit rower in advance of the scheduled date for (2) in paragraph (3), by striking the period Act of 1971 (12 U.S.C. 2279aa(9)(B)(i)) is the payment under the terms of the loan, at the end and inserting ‘‘; and’’; and amended by striking ‘‘8.7, 8.8,’’ and inserting otherwise known as a prepayment of the (3) by adding at the end the following: ‘‘8.8’’. loan principal.’’. ‘‘(4) purchase qualified loans and issue se- (2) Section 8.6(a)(2) of the Farm Credit Act SEC. 673. EXTENSION OF CAPITAL TRANSITION curities representing interests in, or obliga- of 1971 (12 U.S.C. 2279aa–6(a)(2)) is amended PERIOD. tions backed by, the qualified loans, guaran- by striking ‘‘subject to the provisions of sub- Section 8.32 of the Farm Credit Act of 1971 teed for the timely repayment of principal section (b)’’. (12 U.S.C. 2279bb–1) is amended— and interest.’’. SEC. 669. STANDARDS REQUIRING DIVERSIFIED (1) in the first sentence of subsection (a), SEC. 664. POWERS OF THE CORPORATION. POOLS. by striking ‘‘Not later than the expiration of Section 8.3(c) of the Farm Credit Act of (a) IN GENERAL.—Section 8.6 of the Farm the 2-year period beginning on December 13, 1971 (12 U.S.C. 2279aa–3(c)) is amended— Credit Act of 1971 (12 U.S.C. 2279aa–6) (as 1991,’’ and inserting ‘‘Not sooner than the ex- (1) by redesignating paragraphs (13) and amended by section 668) is amended— piration of the 3-year period beginning on (14) as paragraphs (14) and (15), respectively; (1) by striking subsection (c); and the date of enactment of the Agricultural and (2) by redesignating subsections (d) Reform and Improvement Act of 1996,’’; (2) by inserting after paragraph (12) the fol- through (g) as subsections (b) through (e), re- (2) in the first sentence of subsection (b)(2), lowing: spectively. by striking ‘‘5-year’’ and inserting ‘‘8-year’’; ‘‘(13) To purchase, hold, sell, or assign a (b) CONFORMING AMENDMENTS.— and qualified loan, to issue a guaranteed secu- (1) Section 8.0(9)(B)(i) of the Farm Credit (3) in subsection (d)— rity, representing an interest in, or an obli- Act of 1971 (12 U.S.C. 2279aa(9)(B)(i)) is (A) in the first sentence— gation backed by, the qualified loan, and to amended by striking ‘‘(f)’’ and inserting (i) by striking ‘‘The regulations establish- perform all the functions and responsibilities ‘‘(d)’’. ing’’ and inserting the following: of an agricultural mortgage marketing facil- (2) Section 8.13(a) of the Farm Credit Act ‘‘(1) IN GENERAL.—The regulations estab- ity operating as a certified facility under of 1971 (12 U.S.C. 2279aa–13(a)) is amended by this title.’’. lishing’’; and striking ‘‘sections 8.6(b) and’’ in each place it (ii) by striking ‘‘shall contain’’ and insert- SEC. 665. FEDERAL RESERVE BANKS AS DEPOSI- appears and inserting ‘‘section’’. TARIES AND FISCAL AGENTS. ing the following: ‘‘shall— (3) Section 8.32(b)(1)(C) of the Farm Credit ‘‘(A) be issued by the Director for public Section 8.3 of the Farm Credit Act of 1971 Act of 1971 (12 U.S.C. 2279bb–1(b)(1)(C)) is (12 U.S.C. 2279aa–3) is amended— comment in the form of a notice of proposed amended— (1) in subsection (d), by striking ‘‘may act rulemaking, to be first published after the (A) by striking ‘‘shall’’ and inserting as depositories for, or’’ and inserting ‘‘shall expiration of the period referred to in sub- ‘‘may’’; and act as depositories for, and’’; and section (a); and (B) by inserting ‘‘(as in effect before the (2) in subsection (e), by striking ‘‘Sec- ‘‘(B) contain’’; and date of the enactment of the Agricultural retary of the Treasury may authorize the (B) in the second sentence, by striking Reform and Improvement Act of 1996)’’ be- Corporation to use’’ and inserting ‘‘Corpora- ‘‘The regulations shall’’ and inserting the fore the semicolon. tion shall have access to’’. following: (4) Section 8.6(b) of the Farm Credit Act of ‘‘(2) SPECIFICITY.—The regulations referred SEC. 666. CERTIFICATION OF AGRICULTURAL 1971 (12 U.S.C. 2279aa–6(b)) (as redesignated MORTGAGE MARKETING FACILITIES. to in paragraph (1) shall’’. by subsection (a)(2)) is amended— Section 8.5 of the Farm Credit Act of 1971 SEC. 674. MINIMUM CAPITAL LEVEL. (A) by striking paragraph (4) (as redesig- (12 U.S.C. 2279aa–5) is amended— Section 8.33 of the Farm Credit Act of 1971 nated by section 667(2)(B)); and (1) in subsection (a)— (12 U.S.C. 2279bb–2) is amended to read as fol- (B) by redesignating paragraphs (5) and (6) (A) in paragraph (1), by inserting ‘‘(other lows: (as redesignated by section 667(2)(B)) as para- than the Corporation)’’ after ‘‘agricultural ‘‘SEC. 8.33. MINIMUM CAPITAL LEVEL. graphs (4) and (5), respectively. mortgage marketing facilities’’; and ‘‘(a) IN GENERAL.—Except as provided in (B) in paragraph (2), by inserting ‘‘(other SEC. 670. SMALL FARMS. subsection (b), for purposes of this subtitle, than the Corporation)’’ after ‘‘agricultural Section 8.8(e) of the Farm Credit Act of the minimum capital level for the Corpora- mortgage marketing facility’’; and 1971 (12 U.S.C. 2279aa–8(e)) is amended by tion shall be an amount of core capital equal (2) in subsection (e)(1), by striking ‘‘(other adding at the end the following: ‘‘The Board to the sum of— than the Corporation)’’. shall promote and encourage the inclusion of ‘‘(1) 2.75 percent of the aggregate on-bal- SEC. 667. GUARANTEE OF QUALIFIED LOANS. qualified loans for small farms and family ance sheet assets of the Corporation, as de- Section 8.6 of the Farm Credit Act of 1971 farmers in the agricultural mortgage second- termined in accordance with generally ac- (12 U.S.C. 2279aa–6) is amended— ary market.’’. cepted accounting principles; and (1) in subsection (a)(1)— SEC. 671. DEFINITION OF AN AFFILIATE. ‘‘(2) 0.75 percent of the aggregate off-bal- (A) by striking ‘‘Corporation shall guaran- Section 8.11(e) of the Farm Credit Act of ance sheet obligations of the Corporation, tee’’ and inserting the following: ‘‘Corpora- 1971 (21 U.S.C. 2279aa–11(e)) is amended— which, for the purposes of this subtitle, shall tion— (1) by striking ‘‘a certified facility or’’; and include— ‘‘(A) shall guarantee’’; (2) by striking ‘‘paragraphs (3) and (7), re- ‘‘(A) the unpaid principal balance of out- (B) by striking the period at the end and spectively, of section 8.0’’ and inserting ‘‘sec- standing securities that are guaranteed by inserting ‘‘; and’’; and tion 8.0(7)’’. the Corporation and backed by pools of (C) by adding at the end the following: SEC. 672. STATE USURY LAWS SUPERSEDED. qualified loans; ‘‘(B) may issue a security, guaranteed as to Section 8.12 of the Farm Credit Act of 1971 ‘‘(B) instruments that are issued or guar- the timely payment of principal and inter- (12 U.S.C. 2279aa–12) is amended by striking anteed by the Corporation and are substan- est, that represents an interest solely in, or subsection (d) and inserting the following: tially equivalent to instruments described in an obligation fully backed by, a pool consist- ‘‘(d) STATE USURY LAWS SUPERSEDED.—A subparagraph (A); and ing of qualified loans that— provision of the Constitution or law of any ‘‘(C) other off-balance sheet obligations of ‘‘(i) meet the standards established under State shall not apply to an agricultural loan the Corporation. section 8.8; and made by an originator or a certified facility ‘‘(b) TRANSITION PERIOD.— ‘‘(ii) have been purchased and held by the in accordance with this title for sale to the ‘‘(1) IN GENERAL.—For purposes of this sub- Corporation.’’; Corporation or to a certified facility for in- title, the minimum capital level for the Cor- (2) in subsection (d)— clusion in a pool for which the Corporation poration— (A) by striking paragraph (4); and has provided, or has committed to provide, a ‘‘(A) prior to January 1, 1997, shall be the (B) by redesignating paragraphs (5), (6), guarantee, if the loan, not later than 180 amount of core capital equal to the sum of— and (7) as paragraphs (4), (5), and (6), respec- days after the date the loan was made, is ‘‘(i) 0.45 percent of aggregate off-balance tively; and sold to the Corporation or included in a pool sheet obligations of the Corporation; February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1107 ‘‘(ii) 0.45 percent of designated on-balance stock under section 8.4 and otherwise employ ‘‘(ii) has the financial and management ex- sheet assets of the Corporation, as deter- any recognized and legitimate means of rais- pertise necessary to direct the operations mined under paragraph (2); and ing core capital in the power of the Corpora- and affairs of the Corporation and, if nec- ‘‘(iii) 2.50 percent of on-balance sheet as- tion under section 8.3. essary, to liquidate the Corporation. sets of the Corporation other than assets ‘‘(c) LIMITATION ON GROWTH OF TOTAL AS- ‘‘(2) COMPENSATION.— designated under paragraph (2); SETS.—During the 2-year period beginning on ‘‘(A) IN GENERAL.—A conservator or re- ‘‘(B) during the 1-year period ending De- the date of enactment of this section, the ag- ceiver for the Corporation and professional cember 31, 1997, shall be the amount of core gregate on-balance sheet assets of the Cor- personnel (other than a Federal employee) capital equal to the sum of— poration plus the outstanding principal of employed to represent or assist the conserva- ‘‘(i) 0.55 percent of aggregate off-balance the off-balance sheet obligations of the Cor- tor or receiver may be compensated for ac- sheet obligations of the Corporation; poration may not exceed $3,000,000,000 if the tivities conducted as, or for, a conservator or ‘‘(ii) 1.20 percent of designated on-balance core capital of the Corporation is less than receiver. sheet assets of the Corporation, as deter- $25,000,000. ‘‘(B) LIMIT ON COMPENSATION.—Compensa- mined under paragraph (2); and ‘‘(d) ENFORCEMENT.—If the Corporation tion may not be provided in amounts greater ‘‘(iii) 2.55 percent of on-balance sheet as- fails to carry out subsection (a) by the date than the compensation paid to employees of sets of the Corporation other than assets required under paragraph (1) or (2) of sub- the Federal Government for similar services, designated under paragraph (2); section (a), the Corporation may not pur- except that the Farm Credit Administration ‘‘(C) during the 1-year period ending De- chase a new qualified loan or issue or guar- may provide for compensation at higher cember 31, 1998, shall be the amount of core antee a new loan-backed security until the rates that are not in excess of rates prevail- capital equal to— core capital of the Corporation is increased ing in the private sector if the Farm Credit ‘‘(i) if the Corporation’s core capital is not to an amount equal to or greater than Administration determines that compensa- less than $25,000,000 on January 1, 1998, the $25,000,000.’’. tion at higher rates is necessary in order to sum of— SEC. 678. LIQUIDATION OF THE FEDERAL AGRI- recruit and retain competent personnel. ‘‘(I) 0.65 percent of aggregate off-balance CULTURAL MORTGAGE CORPORA- ‘‘(C) CONTRACTUAL ARRANGEMENTS.—The sheet obligations of the Corporation; TION. conservator or receiver may contract with ‘‘(II) 1.95 percent of designated on-balance Title VIII of the Farm Credit Act of 1971 any governmental entity, including the sheet assets of the Corporation, as deter- (12 U.S.C. 2279aa et seq.) (as amended by sec- Farm Credit System Insurance Corporation, mined under paragraph (2); and tion 677) is amended by adding at the end the to make personnel, services, and facilities of ‘‘(III) 2.65 percent of on-balance sheet as- following: the entity available to the conservator or re- ceiver on such terms and compensation ar- sets of the Corporation other than assets ‘‘Subtitle C—Receivership, Con- rangements as shall be mutually agreed, and designated under paragraph (2); or servatorship, and Liquidation of the Fed- each entity may provide the same to the ‘‘(ii) if the Corporation’s core capital is eral Agricultural Mortgage Corporation less than $25,000,000 on January 1, 1998, the conservator or receiver. ‘‘SEC. 8.41. CONSERVATORSHIP; LIQUIDATION; ‘‘(3) EXPENSES.—A valid claim for expenses amount determined under subsection (a); and RECEIVERSHIP. ‘‘(D) on and after January 1, 1999, shall be of the conservatorship or receivership (in- ‘‘(a) VOLUNTARY LIQUIDATION.—The Cor- the amount determined under subsection (a). cluding compensation under paragraph (2)) poration may voluntarily liquidate only with and a valid claim with respect to a loan ‘‘(2) DESIGNATED ON-BALANCE SHEET AS- the consent of, and in accordance with a plan SETS.—For purposes of this subsection, the made under subsection (f) shall— of liquidation approved by, the Farm Credit ‘‘(A) be paid by the conservator or receiver designated on-balance sheet assets of the Administration Board. Corporation shall be— from funds of the Corporation before any ‘‘(b) INVOLUNTARY LIQUIDATION.— ‘‘(A) the aggregate on-balance sheet assets other valid claim against the Corporation; ‘‘(1) IN GENERAL.—The Farm Credit Admin- and of the Corporation acquired under section istration Board may appoint a conservator 8.6(e); and ‘‘(B) may be secured by a lien, on such or receiver for the Corporation under the cir- property of the Corporation as the conserva- ‘‘(B) the aggregate amount of qualified cumstances specified in section 4.12(b). loans purchased and held by the Corporation tor or receiver may determine, that shall ‘‘(2) APPLICATION.—In applying section under section 8.3(c)(13).’’. have priority over any other lien. 4.12(b) to the Corporation under paragraph ‘‘(4) LIABILITY.—If the conservator or re- SEC. 675. CRITICAL CAPITAL LEVEL. (1)— Section 8.34 of the Farm Credit Act of 1971 ceiver for the Corporation is not a Federal ‘‘(A) the Corporation shall also be consid- entity, or an officer or employee of the Fed- (12 U.S.C. 2279bb–3) is amended to read as fol- ered insolvent if the Corporation is unable to lows: eral Government, the conservator or receiver pay its debts as they fall due in the ordinary shall not be personally liable for damages in ‘‘SEC. 8.34. CRITICAL CAPITAL LEVEL. course of business; ‘‘For purposes of this subtitle, the critical tort or otherwise for an act or omission per- ‘‘(B) a conservator may also be appointed formed pursuant to and in the course of the capital level for the Corporation shall be an for the Corporation if the authority of the amount of core capital equal to 50 percent of conservatorship or receivership, unless the Corporation to purchase qualified loans or act or omission constitutes gross negligence the total minimum capital amount deter- issue or guarantee loan-backed securities is mined under section 8.33.’’. or any form of intentional tortious conduct suspended; and or criminal conduct. SEC. 676. ENFORCEMENT LEVELS. ‘‘(C) a receiver may also be appointed for Section 8.35(e) of the Farm Credit Act of ‘‘(5) INDEMNIFICATION.—The Farm Credit the Corporation if— Administration may allow indemnification 1971 (12 U.S.C. 2279bb–4(e)) is amended by ‘‘(i)(I) the authority of the Corporation to striking ‘‘during the 30-month period begin- of the conservator or receiver from the as- purchase qualified loans or issue or guaran- ning on the date of the enactment of this sets of the conservatorship or receivership tee loan-backed securities is suspended; or section,’’ and inserting ‘‘during the period on such terms as the Farm Credit Adminis- ‘‘(II) the Corporation is classified under beginning on December 13, 1991, and ending tration considers appropriate. section 8.35 as within level III or IV and the on the effective date of the risk based capital ‘‘(d) JUDICIAL REVIEW OF APPOINTMENT.— regulation issued by the Director under sec- alternative actions available under subtitle ‘‘(1) IN GENERAL.—Notwithstanding sub- tion 8.32,’’. B are not satisfactory; and section (i)(1), not later than 30 days after a ‘‘(ii) the Farm Credit Administration de- SEC. 677. RECAPITALIZATION OF THE CORPORA- conservator or receiver is appointed under TION. termines that the appointment of a con- subsection (b), the Corporation may bring an Title VIII of the Farm Credit Act of 1971 servator would not be appropriate. action in the United States District Court (12 U.S.C. 2279aa et seq.) is amended by add- ‘‘(3) NO EFFECT ON SUPERVISORY ACTIONS.— for the District of Columbia for an order re- ing at the end the following: The grounds for appointment of a conserva- quiring the Farm Credit Administration ‘‘SEC. 8.38. RECAPITALIZATION OF THE CORPORA- tor for the Corporation under this subsection Board to remove the conservator or receiver. TION. shall be in addition to those in section 8.37. The court shall, on the merits, dismiss the ‘‘(a) MANDATORY RECAPITALIZATION.—The ‘‘(c) APPOINTMENT OF CONSERVATOR OR RE- action or direct the Farm Credit Administra- Corporation shall increase the core capital of CEIVER.— tion Board to remove the conservator or re- the Corporation to an amount equal to or ‘‘(1) QUALIFICATIONS.—Notwithstanding ceiver. greater than $25,000,000, not later than the section 4.12(b), if a conservator or receiver is ‘‘(2) STAY OF OTHER ACTIONS.—On the com- earlier of— appointed for the Corporation, the conserva- mencement of an action under paragraph (1), ‘‘(1) the date that is 2 years after the date tor or receiver shall be— any court having jurisdiction of any other of enactment of this section; or ‘‘(A) the Farm Credit Administration or action or enforcement proceeding authorized ‘‘(2) the date that is 180 days after the end any other governmental entity or employee, under this Act to which the Corporation is a of the first calendar quarter that the aggre- including the Farm Credit System Insurance party shall stay the action or proceeding gate on-balance sheet assets of the Corpora- Corporation; or during the pendency of the action for re- tion, plus the outstanding principal of the ‘‘(B) any person that— moval of the conservator or receiver. off-balance sheet obligations of the Corpora- ‘‘(i) has no claim against, or financial in- ‘‘(e) GENERAL POWERS OF CONSERVATOR OR tion, equal or exceed $2,000,000,000. terest in, the Corporation or other basis for RECEIVER.—The conservator or receiver for ‘‘(b) RAISING CORE CAPITAL.—In carrying a conflict of interest as the conservator or the Corporation shall have such powers to out this section, the Corporation may issue receiver; and conduct the conservatorship or receivership S 1108 CONGRESSIONAL RECORD — SENATE February 7, 1996 as shall be provided pursuant to regulations SEC. 682. USE OF PRIVATE MORTGAGE INSUR- tificates held by the borrower with respect adopted by the Farm Credit Administration ANCE. to the loan shall, subject to subsection (d)(1), Board. Such powers shall be comparable to (a) IN GENERAL.—Section 1.10(a)(1) of the be retired. the powers available to a conservator or re- Farm Credit Act of 1971 (12 U.S.C. 2018(a)(1)) ‘‘(2) APPLICABILITY.—Notwithstanding any ceiver appointed pursuant to section 4.12(b). is amended by adding at the end the follow- other provision of this section, in the case of ‘‘(f) BORROWINGS FOR WORKING CAPITAL.— ing: a loan sold to a secondary market under title ‘‘(1) IN GENERAL.—If the conservator or re- ‘‘(D) PRIVATE MORTGAGE INSURANCE.—A VIII, paragraph (1) shall apply regardless of ceiver of the Corporation determines that it loan on which private mortgage insurance is whether the bank or association retains a is likely that there will be insufficient funds obtained may exceed 85 percent of the ap- subordinated participation interest in a loan to pay the ongoing administrative expenses praised value of the real estate security to or pool of loans or contributes to a cash re- of the conservatorship or receivership or the extent that the loan amount in excess of serve. that there will be insufficient liquidity to such 85 percent is covered by the insur- ‘‘(3) EXCEPTION.— fund maturing obligations of the ance.’’. ‘‘(A) IN GENERAL.—Subject to subparagraph conservatorship or receivership, the con- (b) CONFORMING AMENDMENT.—Section (B) and notwithstanding any other provision servator or receiver may borrow funds in 1.10(a)(1)(A) of the Farm Credit Act of 1971 of this section, if a loan designated for sale such amounts, from such sources, and at (12 U.S.C. 2018(a)(1)(A)) is amended by strik- under paragraph (1)(A) is not sold into a sec- such rates of interest as the conservator or ing ‘‘paragraphs (2) and (3)’’ and inserting ondary market during the 180-day period receiver considers necessary or appropriate ‘‘subparagraphs (C) and (D)’’. that begins on the date of the designation, to meet the administrative expenses or li- SEC. 683. REMOVAL OF CERTAIN BORROWER RE- the voting stock or participation certificate quidity needs of the conservatorship or re- PORTING REQUIREMENT. purchase requirement that would otherwise ceivership. Section 1.10(a) of the Farm Credit Act of apply to the loan in the absence of a bylaw ‘‘(2) WORKING CAPITAL FROM FARM CREDIT 1971 (12 U.S.C. 2018(a)) is amended by striking provision described in paragraph (1)(A) shall BANKS.—A Farm Credit bank may loan funds paragraph (5). be effective. to the conservator or receiver for a loan au- SEC. 684. REFORM OF REGULATORY LIMITATIONS ‘‘(B) RETIREMENT.—The bylaws adopted by thorized under paragraph (1) or, in the event ON DIVIDEND, MEMBER BUSINESS, a bank or association under subsection (b) of receivership, a Farm Credit bank may pur- AND VOTING PRACTICES OF ELIGI- may provide that if a loan described in sub- BLE FARMER-OWNED COOPERA- chase assets of the Corporation. TIVES. paragraph (A) is sold into a secondary mar- ket after the end of the 180-day period de- ‘‘(g) AGREEMENTS AGAINST INTERESTS OF (a) IN GENERAL.—Section 3.8(a) of the Farm CONSERVATOR OR RECEIVER.—No agreement Credit Act of 1971 (12 U.S.C. 2129(a)) is scribed in the subparagraph, all outstanding that tends to diminish or defeat the right, amended by adding at the end the following: voting stock or participation certificates title, or interest of the conservator or re- ‘‘Any such association that has received a held by the borrower with respect to the loan ceiver for the Corporation in any asset ac- loan from a bank for cooperatives shall, shall, subject to subsection (d)(1), be re- quired by the conservator or receiver as con- without regard to the requirements of para- tired.’’. servator or receiver for the Corporation shall graphs (1) through (4), continue to be eligible SEC. 687. DISCLOSURE RELATING TO ADJUST- be valid against the conservator or receiver for so long as more than 50 percent (or such ABLE RATE LOANS. unless the agreement— higher percentage as is established by the Section 4.13(a)(4) of the Farm Credit Act of ‘‘(1) is in writing; bank board) of the voting control of the asso- 1971 (12 U.S.C. 2199(a)(4)) is amended by in- ‘‘(2) is executed by the Corporation and ciation is held by farmers, producers or har- any person claiming an adverse interest vesters of aquatic products, or eligible coop- serting before the semicolon at the end the under the agreement, including the obligor, erative associations.’’. following: ‘‘, and notice to the borrower of a contemporaneously with the acquisition of (b) CONFORMING AMENDMENT.—Section change in the interest rate applicable to the the asset by the Corporation; 3.8(b)(1)(D) of the Farm Credit Act of 1971 (12 loan of the borrower may be made within a ‘‘(3) is approved by the Board or an appro- U.S.C. 2129(b)(1)(D)) is amended by striking reasonable time after the effective date of an priate committee of the Board, which ap- ‘‘and (4) of subsection (a)’’ and inserting increase or decrease in the interest rate’’. proval shall be reflected in the minutes of ‘‘and (4), or under the last sentence, of sub- the Board or committee; and section (a)’’. SEC. 688. BORROWERS’ RIGHTS. ‘‘(4) has been, continuously, from the time SEC. 685. REMOVAL OF FEDERAL GOVERNMENT (a) DEFINITION OF LOAN.—Section of the agreement’s execution, an official CERTIFICATION REQUIREMENT FOR 4.14A(a)(5) of the Farm Credit Act of 1971 (12 record of the Corporation. CERTAIN PRIVATE SECTOR U.S.C. 2202a(a)(5)) is amended— FINANCINGS. ‘‘(h) REPORT TO THE CONGRESS.—On a deter- (1) by striking ‘‘(5) LOAN.—The’’ and insert- mination by the receiver for the Corporation Section 3.8(b)(1)(A) of the Farm Credit Act ing the following: of 1971 (12 U.S.C. 2129(b)(1)(A)) is amended— that there are insufficient assets of the re- ‘‘(5) LOAN.— (1) by striking ‘‘have been certified by the ceivership to pay all valid claims against the ‘‘(A) IN GENERAL.—Subject to subparagraph receivership, the receiver shall submit to the Administrator of the Rural Electrification (B), the’’; and Secretary of the Treasury, the Committee on Administration to be eligible for such’’ and (2) by adding at the end the following: inserting ‘‘are eligible under the Rural Elec- Agriculture of the House of Representatives, ‘‘(B) EXCLUSION FOR LOANS DESIGNATED FOR trification Act of 1936 (7 U.S.C. 901 et seq.) and the Committee on Agriculture, Nutri- SALE INTO SECONDARY MARKET.— for’’; and tion, and Forestry of the Senate a report on ‘‘(i) IN GENERAL.—Except as provided in the financial condition of the receivership. (2) by striking ‘‘loan guarantee, and’’ and clause (ii), the term ‘loan’ does not include a ‘‘(i) TERMINATION OF AUTHORITIES.— inserting ‘‘loan guarantee from the Adminis- loan made on or after the date of enactment ‘‘(1) CORPORATION.—The charter of the Cor- tration or the Bank (or a successor of the of this subparagraph that is designated, at poration shall be canceled, and the authority Administration or the Bank), and’’. the time the loan is made, for sale into a sec- provided to the Corporation by this title SEC. 686. BORROWER STOCK. ondary market. shall terminate, on such date as the Farm Section 4.3A of the Farm Credit Act of 1971 ‘‘(ii) UNSOLD LOANS.— Credit Administration Board determines is (12 U.S.C. 2154a) is amended— ‘‘(I) IN GENERAL.—Except as provided in appropriate following the placement of the (1) by redesignating subsections (f) and (g) subclause (II), if a loan designated for sale Corporation in receivership, but not later as subsections (g) and (h), respectively; and under clause (i) is not sold into a secondary than the conclusion of the receivership and (2) by inserting after subsection (e) the fol- market during the 180-day period that begins discharge of the receiver. lowing: on the date of the designation, the provisions ‘‘(2) OVERSIGHT.—The Office of Secondary ‘‘(f) LOANS DESIGNATED FOR SALE OR SOLD of this section and sections 4.14, 4.14B, 4.14C, Market Oversight established under section INTO THE SECONDARY MARKET.— 4.14D, and 4.36 that would otherwise apply to 8.11 shall be abolished, and section 8.11(a) ‘‘(1) IN GENERAL.—Subject to paragraph (2) the loan in the absence of the exclusion de- and subtitle B shall have no force or effect, and notwithstanding any other provision of scribed in clause (i) shall become effective on such date as the Farm Credit Administra- this section, the bylaws adopted by a bank or with respect to the loan. tion Board determines is appropriate follow- association under subsection (b) may pro- ‘‘(II) LATER SALE.—If a loan described in ing the placement of the Corporation in re- vide— subclause (I) is sold into a secondary market ceivership, but not later than the conclusion ‘‘(A) in the case of a loan made on or after after the end of the 180-day period described of the receivership and discharge of the re- the date of enactment of this paragraph that in subclause (I), subclause (I) shall not apply ceiver.’’. is designated, at the time the loan is made, with respect to the loan beginning on the for sale into a secondary market, that no date of the sale.’’. CHAPTER 2—REGULATORY RELIEF voting stock or participation certificate pur- SEC. 681. COMPENSATION OF ASSOCIATION PER- chase requirement shall apply to the bor- (b) BORROWERS’ RIGHTS FOR POOLED SONNEL. rower for the loan; and LOANS.—The first sentence of section 8.9(b) Section 1.5(13) of the Farm Credit Act of ‘‘(B) in the case of a loan made before the of the Farm Credit Act of 1971 (12 U.S.C. 1971 (12 U.S.C. 2013(13)) is amended by strik- date of enactment of this paragraph that is 2279aa–9(b)) is amended by inserting ‘‘(as de- ing ‘‘, and the appointment and compensa- sold into a secondary market, that all out- fined in section 4.14A(a)(5))’’ after ‘‘applica- tion of the chief executive officer thereof,’’. standing voting stock or participation cer- tion for a loan’’. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1109 SEC. 689. FORMATION OF ADMINISTRATIVE SERV- (B) by redesignating paragraph (2) as para- guaranteed portions of government-guaran- ICE ENTITIES. graph (3); and teed loans described in subsection (a)(1)(C)). Part E of title IV of the Farm Credit Act (C) by inserting after paragraph (1) the fol- ‘‘(5) USE OF FUNDS IN ALLOCATED INSURANCE of 1971 is amended by inserting after section lowing: RESERVES ACCOUNTS.—To the extent that the 4.28 (12 U.S.C. 2214) the following: ‘‘(2) REDUCED PREMIUMS.—The Corporation, sum of the operating expenses of the Cor- ‘‘SEC. 4.28A. DEFINITION OF BANK. in the sole discretion of the Corporation, poration and the insurance obligations of the ‘‘In this part, the term ‘bank’ includes may reduce by a percentage uniformly ap- Corporation for a calendar year exceeds the each association operating under title II.’’. plied to all insured System banks the annual sum of operating expenses and insurance ob- SEC. 690. JOINT MANAGEMENT AGREEMENTS. premium due from each insured System bank ligations determined under paragraph (3) for The first sentence of section 5.17(a)(2)(A) of during any calendar year, as determined the calendar year, the Corporation shall the Farm Credit Act of 1971 (12 U.S.C. under paragraph (1).’’. cover the expenses and obligations by— 2252(a)(2)(A)) is amended by striking ‘‘or (2) CONFORMING AMENDMENTS.— ‘‘(A) reducing each Allocated Insurance Re- management agreements’’. (A) Section 5.55(b) of the Farm Credit Act serves Account by the same proportion; and SEC. 691. DISSEMINATION OF QUARTERLY RE- of 1971 (12 U.S.C. 2277a–4(b)) is amended— ‘‘(B) expending the amounts obtained PORTS. (i) by striking ‘‘Insurance Fund’’ each under subparagraph (A) before expending Section 5.17(a)(8) of the Farm Credit Act of place it appears and inserting ‘‘Farm Credit other amounts in the Fund. Insurance Fund’’; 1971 (12 U.S.C. 2252(a)(8)) is amended by in- ‘‘(6) OTHER DISPOSITION OF ACCOUNT (ii) by striking ‘‘for the following calendar serting after ‘‘except that’’ the following: FUNDS.— year’’; and ‘‘the requirements of the Farm Credit Ad- ‘‘(A) IN GENERAL.—As soon as practicable (iii) by striking ‘‘subsection (a)’’ and in- ministration governing the dissemination to during each calendar year beginning more serting ‘‘subsection (a)(1)’’. stockholders of quarterly reports of System than 8 years after the date on which the ag- (B) Section 5.56(a) of the Farm Credit Act institutions may not be more burdensome or gregate of the amounts in the Farm Credit of 1971 (12 U.S.C. 2277a–5(a)) is amended by costly than the requirements applicable to Insurance Fund exceeds the secure base striking ‘‘section 5.55(a)(2)’’ each place it ap- national banks, and’’. amount, but not earlier than January 1, 2005, pears in paragraphs (2) and (3) and inserting SEC. 692. REGULATORY REVIEW. the Corporation may— ‘‘section 5.55(a)(3)’’. (a) FINDINGS.—Congress finds that— (C) Section 1.12(b) (12 U.S.C. 2020(b)) is ‘‘(i) subject to subparagraphs (D) and (F), (1) the Farm Credit Administration, in the amended— pay to each insured System bank, in a man- role of the Administration as an arms-length (i) in paragraph (1), by inserting ‘‘(as de- ner determined by the Corporation, an safety and soundness regulator, has made fined in section 5.55(a)(3))’’ after ‘‘govern- amount equal to the lesser of— considerable progress in reducing the regu- ment-guaranteed loans’’; and ‘‘(I) 20 percent of the balance in the insured latory burden on Farm Credit System insti- (ii) in paragraph (3), by inserting ‘‘(as so System bank’s Allocated Insurance Reserves tutions; defined)’’ after ‘‘government-guaranteed Account as of the preceding December 31; or (2) the efforts of the Farm Credit Adminis- loans’’ each place such term appears. ‘‘(II) 20 percent of the balance in the bank’s tration described in paragraph (1) have re- (b) ALLOCATION TO INSURED SYSTEM BANKS Allocated Insurance Reserves Account on the sulted in cost savings for Farm Credit Sys- AND OTHER SYSTEM INSTITUTIONS OF EXCESS date of the payment; and tem institutions; and AMOUNTS IN THE FARM CREDIT INSURANCE ‘‘(ii) subject to subparagraphs (C), (E), and (3) the cost savings described in paragraph FUND.—Section 5.55 of the Farm Credit Act (F), pay to each System bank and associa- (2) ultimately benefit the farmers, ranchers, of 1971 (12 U.S.C. 2277a–4) is amended by add- tion holding Financial Assistance Corpora- agricultural cooperatives, and rural resi- ing at the end the following: tion stock a proportionate share, determined dents of the United States. ‘‘(e) ALLOCATION TO SYSTEM INSTITUTIONS by dividing the number of shares of Finan- (b) CONTINUATION OF REGULATORY RE- OF EXCESS RESERVES.— cial Assistance Corporation stock held by VIEW.—The Farm Credit Administration ‘‘(1) ESTABLISHMENT OF ALLOCATED INSUR- the institution by the total number of shares shall continue the comprehensive review of ANCE RESERVES ACCOUNTS.—There is hereby of Financial Assistance Corporation stock regulations governing the Farm Credit Sys- established in the Farm Credit Insurance outstanding, of the lesser of— tem to identify and eliminate, consistent Fund an Allocated Insurance Reserves Ac- ‘‘(I) 20 percent of the balance in the Allo- with law, safety, and soundness, all regula- count— cated Insurance Reserves Account estab- tions that are unnecessary, unduly burden- ‘‘(A) for each insured System bank; and lished under paragraph (1)(B) as of the pre- some or costly, or not based on law. ‘‘(B) subject to paragraph (6)(C), for all ceding December 31; or SEC. 693. EXAMINATION OF FARM CREDIT SYS- holders, in the aggregate, of Financial As- ‘‘(II) 20 percent of the balance in the Allo- TEM INSTITUTIONS. sistance Corporation stock. cated Insurance Reserves Account estab- The first sentence of section 5.19(a) of the ‘‘(2) TREATMENT.—Amounts in any Allo- lished under paragraph (1)(B) on the date of Farm Credit Act of 1971 (12 U.S.C. 2254(a)) is cated Insurance Reserves Account shall be the payment. amended by striking ‘‘each year’’ and insert- considered to be part of the Farm Credit In- ‘‘(B) AUTHORITY TO ELIMINATE OR REDUCE ing ‘‘during each 18-month period’’. surance Fund. PAYMENTS.—The Corporation may eliminate SEC. 694. CONSERVATORSHIPS AND RECEIVER- ‘‘(3) ANNUAL ALLOCATIONS.—If, at the end of or reduce payments during a calendar year SHIPS. any calendar year, the aggregate of the under subparagraph (A) if the Corporation (a) DEFINITIONS.—Section 5.51 of the Farm amounts in the Farm Credit Insurance Fund determines, in its sole discretion, that the Credit Act of 1971 (12 U.S.C. 2277a) is amend- exceeds the average secure base amount for payments, or other circumstances that ed— the calendar year (as calculated on an aver- might require use of the Farm Credit Insur- (1) by striking paragraph (5); and age daily balance basis), the Corporation ance Fund, could cause the amount in the (2) by redesignating paragraph (6) as para- shall allocate to the Allocated Insurance Re- Farm Credit Insurance Fund during the cal- graph (5). serves Accounts the excess amount less the endar year to be less than the secure base (b) GENERAL CORPORATE POWERS.—Section amount that the Corporation, in its sole dis- amount. 5.58 of the Farm Credit Act of 1971 (12 U.S.C. cretion, determines to be the sum of the esti- ‘‘(C) REIMBURSEMENT FOR FINANCIAL ASSIST- 2277a–7) is amended by striking paragraph (9) mated operating expenses and estimated in- ANCE CORPORATION STOCK.— and inserting the following: surance obligations of the Corporation for ‘‘(i) SUFFICIENT FUNDING.—Notwithstanding ‘‘(9) CONSERVATOR OR RECEIVER.—The Cor- the immediately succeeding calendar year. paragraph (4)(A), on provision by the Cor- poration may act as a conservator or re- ‘‘(4) ALLOCATION FORMULA.—From the total poration for the accumulation in the Ac- ceiver.’’. amount required to be allocated at the end of count established under paragraph (1)(B) of SEC. 695. FARM CREDIT INSURANCE FUND OPER- a calendar year under paragraph (3)— funds in an amount equal to $56,000,000 (in ATIONS. ‘‘(A) 10 percent of the total amount shall addition to the amounts described in sub- (a) ADJUSTMENT OF PREMIUMS.— be credited to the Allocated Insurance Re- paragraph (F)(ii)), the Corporation shall not (1) IN GENERAL.—Section 5.55(a) of the serves Account established under paragraph allocate any further funds to the Account ex- Farm Credit Act of 1971 (12 U.S.C. 2277a–4(a)) (1)(B), subject to paragraph (6)(C); and cept to replenish the Account if funds are di- is amended— ‘‘(B) there shall be credited to the Allo- minished below $56,000,000 by the Corpora- (A) in paragraph (1), by striking ‘‘Until the cated Insurance Reserves Account of each in- tion under paragraph (5). aggregate of amounts in the Farm Credit In- sured System bank an amount that bears the ‘‘(ii) WIND DOWN AND TERMINATION.— surance Fund exceeds the secure base same ratio to the total amount (less any ‘‘(I) FINAL DISBURSEMENTS.—On disburse- amount, the annual premium due from any amount credited under subparagraph (A)) as ment of $53,000,000 (in addition to the insured System bank for any calendar year’’ the average principal outstanding for the 3- amounts described in subparagraph (F)(ii)) and inserting the following: ‘‘If at the end of year period ending on the end of the calendar from the Allocated Insurance Reserves Ac- any calendar year the aggregate of amounts year on loans made by the bank that are in count, the Corporation shall disburse the re- in the Farm Credit Insurance Fund does not accrual status bears to the average principal maining amounts in the Account, as deter- exceed the secure base amount, subject to outstanding for the 3-year period ending on mined under subparagraph (A)(ii), without paragraph (2), the annual premium due from the end of the calendar year on loans made regard to the percentage limitations in any insured System bank for the calendar by all insured System banks that are in ac- subclauses (I) and (II) of subparagraph year’’; crual status (excluding, in each case, the (A)(ii). S 1110 CONGRESSIONAL RECORD — SENATE February 7, 1996

‘‘(II) TERMINATION OF ACCOUNT.—On dis- SEC. 697. POWERS WITH RESPECT TO TROUBLED SEC. 698. OVERSIGHT AND REGULATORY AC- bursement of $56,000,000 (in addition to the INSURED SYSTEM BANKS. TIONS BY THE FARM CREDIT SYS- TEM INSURANCE CORPORATION. amounts described in subparagraph (F)(ii)) (a) LEAST-COST RESOLUTION.—Section from the Allocated Insurance Reserves Ac- The Farm Credit Act of 1971 is amended by 5.61(a)(3) of the Farm Credit Act of 1971 (12 inserting after section 5.61 (12 U.S.C. 2279a– count, the Corporation shall close the Ac- U.S.C. 2277a–10(a)) is amended— 10) the following: count established under paragraph (1)(B) and (1) by redesignating subparagraph (B) as transfer any remaining funds in the Account ‘‘SEC. 5.61A. OVERSIGHT ACTIONS BY THE COR- subparagraph (F); and PORATION. to the remaining Allocated Insurance Re- ‘‘(a) DEFINITIONS.—In this section, the term serves Accounts in accordance with para- (2) by striking subparagraph (A) and in- serting the following: ‘institution’ means— graph (4)(B) for the calendar year in which ‘‘(1) an insured System bank; and the transfer occurs. ‘‘(A) LEAST-COST RESOLUTION.—Assistance may not be provided to an insured System ‘‘(2) a production credit association or ‘‘(D) DISTRIBUTION OF PAYMENTS RE- other association making loans under sec- bank under this subsection unless the means CEIVED.—Not later than 60 days after receipt tion 7.6 with a direct loan payable to the of providing the assistance is the least costly of a payment made under subparagraph funding bank of the association that com- (A)(i), each insured System bank, in con- means of providing the assistance by the prises 20 percent or more of the funding sultation with affiliated associations of the Farm Credit Insurance Fund of all possible bank’s total loan volume net of nonaccrual insured System bank, and taking into ac- alternatives available to the Corporation, in- loans. count the direct or indirect payment of in- cluding liquidation of the bank (including ‘‘(b) CONSULTATION REGARDING PARTICIPA- surance premiums by the associations, shall paying the insured obligations issued on be- TION OF UNDERCAPITALIZED BANKS IN ISSU- develop and implement an equitable plan to half of the bank). Before making a least-cost ANCE OF INSURED OBLIGATIONS.—The Farm distribute payments received under subpara- determination under this subparagraph, the Credit Administration shall consult with the graph (A)(i) among the bank and associa- Corporation shall accord such other insured Corporation prior to approving an insured tions of the bank. System banks as the Corporation determines obligation that is to be issued by or on be- ‘‘(E) EXCEPTION FOR PREVIOUSLY REIM- to be appropriate the opportunity to submit half of, or participated in by, any insured BURSED ASSOCIATIONS.—For purposes of sub- information relating to the determination. System bank that fails to meet the mini- mum level for any capital requirement es- paragraph (A)(ii), in any Farm Credit dis- ‘‘(B) DETERMINING LEAST COSTLY AP- tablished by the Farm Credit Administration trict in which the funding bank has reim- PROACH.—In determining the least costly al- for the bank. bursed 1 or more affiliated associations of ternative under subparagraph (A), the Cor- the bank for the previously unreimbursed ‘‘(c) CONSULTATION REGARDING APPLICA- poration shall— TIONS FOR MERGERS AND RESTRUCTURINGS.— portion of the Financial Assistance Corpora- ‘‘(i) evaluate alternatives on a present- ‘‘(1) CORPORATION TO RECEIVE COPY OF tion stock held by the associations, the fund- value basis, using a reasonable discount rate; TRANSACTION APPLICATIONS.—On receiving an ing bank shall be deemed to be the holder of ‘‘(ii) document the evaluation and the as- application for a merger or restructuring of the shares of Financial Assistance Corpora- sumptions on which the evaluation is based; an institution, the Farm Credit Administra- tion stock for which the funding bank has and tion shall forward a copy of the application provided the reimbursement. ‘‘(iii) retain the documentation for not less to the Corporation. ‘‘(F) INITIAL PAYMENT.—Notwithstanding than 5 years. ‘‘(2) CONSULTATION REQUIRED.—If the pro- subparagraph (A), the initial payment made ‘‘(C) TIME OF DETERMINATION.— posed merger or restructuring involves an in- to each payee under subparagraph (A) shall stitution that fails to meet the minimum be in such amount determined by the Cor- ‘‘(i) GENERAL RULE.—For purposes of this subsection, the determination of the costs of level for any capital requirement established poration to be equal to the sum of— by the Farm Credit Administration applica- ‘‘(i) the total of the amounts that would providing any assistance under any provision of this section with respect to any insured ble to the institution, the Farm Credit Ad- have been paid if payments under subpara- ministration shall allow 30 days within System bank shall be made as of the date on graph (A) had been authorized to begin, which the Corporation may submit the views which the Corporation makes the determina- under the same terms and conditions, in the and recommendations of the Corporation, in- first calendar year beginning more than 5 tion to provide the assistance to the institu- cluding any conditions for approval. In de- years after the date on which the aggregate tion under this section. termining whether to approve or disapprove of the amounts in the Farm Credit Insurance ‘‘(ii) RULE FOR LIQUIDATIONS.—For purposes any proposed merger or restructuring, the Fund exceeds the secure base amount, and to of this subsection, the determination of the Farm Credit Administration shall give due continue through the 2 immediately subse- costs of liquidation of any insured System consideration to the views and recommenda- quent years; bank shall be made as of the earliest of— tions of the Corporation. ‘‘(ii) interest earned on any amounts that ‘‘(I) the date on which a conservator is ap- ‘‘SEC. 5.61B. AUTHORITY TO REGULATE GOLDEN would have been paid as described in clause pointed for the insured System bank; PARACHUTE AND INDEMNIFICATION (i) from the date on which the payments ‘‘(II) the date on which a receiver is ap- PAYMENTS. would have been paid as described in clause pointed for the insured System bank; or ‘‘(a) DEFINITIONS.—In this section: (i); and ‘‘(III) the date on which the Corporation ‘‘(1) GOLDEN PARACHUTE PAYMENT.—The ‘‘(iii) the payment to be made in the initial makes any determination to provide any as- term ‘golden parachute payment’— year described in subparagraph (A), based on sistance under this section with respect to ‘‘(A) means a payment (or any agreement the amount in each Account after subtract- the insured System bank. to make a payment) in the nature of com- pensation for the benefit of any institution- ing the amounts to be paid under clauses (i) ‘‘(D) RULE FOR STAND-ALONE ASSISTANCE.— related party under an obligation of any and (ii).’’ Before providing any assistance under para- Farm Credit System institution that— graph (1), the Corporation shall evaluate the (c) TECHNICAL AMENDMENTS.—Section ‘‘(i) is contingent on the termination of the 5.55(d) of the Farm Credit Act of 1971 (12 adequacy of managerial resources of the in- party’s relationship with the institution; and U.S.C. 2277a–4(d)) is amended— sured System bank. The continued service of ‘‘(ii) is received on or after the date on (1) in the matter preceding paragraph (1)— any director or senior ranking officer who which— (A) by striking ‘‘subsections (a) and (c)’’ serves in a policymaking role for the assisted ‘‘(I) the institution is insolvent; and inserting ‘‘subsections (a), (c), and (e)’’; insured System bank, as determined by the ‘‘(II) a conservator or receiver is appointed and Corporation, shall be subject to approval by for the institution; (B) by striking ‘‘a Farm Credit Bank’’ and the Corporation as a condition of assistance. ‘‘(III) the institution has been assigned by inserting ‘‘an insured System bank’’; and ‘‘(E) DISCRETIONARY DETERMINATIONS.—Any the Farm Credit Administration a composite (2) in paragraphs (1), (2), and (3), by strik- determination that the Corporation makes CAMEL rating of 4 or 5 under the Farm Cred- ing ‘‘Farm Credit Bank’’ each place it ap- under this paragraph shall be in the sole dis- it Administration Rating System, or an pears and inserting ‘‘insured System bank’’. cretion of the Corporation.’’. equivalent rating; or ‘‘(IV) the Corporation otherwise deter- (b) CONFORMING AMENDMENTS.—Section SEC. 696. EXAMINATIONS BY THE FARM CREDIT mines that the institution is in a troubled 5.61(a) of the Farm Credit Act of 1971 (12 SYSTEM INSURANCE CORPORATION. condition (as defined in regulations issued by U.S.C. 2277a–10(a)) is amended— Section 5.59(b)(1)(A) of the Farm Credit Act the Corporation); and (1) in paragraph (1) by striking ‘‘IN GEN- of 1971 (12 U.S.C. 2277a–8(b)(1)(A)) is amended ‘‘(B) includes a payment that would be a ERAL.—’’ and inserting ‘‘STAND-ALONE ASSIST- by adding at the end the following: ‘‘Not- golden parachute payment but for the fact ANCE.—’’; and withstanding any other provision of this Act, that the payment was made before the date (2) in paragraph (2)— referred to in subparagraph (A)(ii) if the pay- on cancellation of the charter of a System (A) by striking ‘‘ENUMERATED POWERS.—’’ ment was made in contemplation of the oc- institution, the Corporation shall have au- and inserting ‘‘FACILITATION OF MERGERS OR currence of an event described in any thority to examine the system institution in CONSOLIDATION.—’’; and subclause of subparagraph (A); but receivership. An examination shall be per- (B) in subparagraph (A) by striking ‘‘FA- ‘‘(C) does not include— formed at such intervals as the Corporation CILITATION OF MERGERS OR CONSOLIDATION.—’’ ‘‘(i) a payment made under a retirement shall determine.’’. and inserting ‘‘IN GENERAL.—’’. plan that is qualified (or is intended to be February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1111 qualified) under section 401 of the Internal poration in taking any action under sub- Board of Directors of the Farm Credit Sys- Revenue Code of 1986 or other nondiscrim- section (b). The factors may include— tem Insurance Corporation.’’. inatory benefit plan; ‘‘(1) whether there is a reasonable basis to SEC. 699A. LIABILITY FOR MAKING CRIMINAL RE- ‘‘(ii) a payment made under a bona fide believe that an institution-related party has FERRALS. supplemental executive retirement plan, de- committed any fraudulent act or omission, (a) IN GENERAL.—Any institution of the ferred compensation plan, or other arrange- breach of trust or fiduciary duty, or insider Farm Credit System, or any director, officer, ment that the Corporation determines, by abuse with regard to the Farm Credit Sys- employee, or agent of a Farm Credit System regulation or order, to be permissible; or tem institution involved that has had a ma- institution, that discloses to a Government ‘‘(iii) a payment made by reason of the terial effect on the financial condition of the authority information proffered in good faith death or disability of an institution-related institution; that may be relevant to a possible violation party. ‘‘(2) whether there is a reasonable basis to of any law or regulation shall not be liable ‘‘(2) INDEMNIFICATION PAYMENT.—The term believe that the institution-related party is to any person under any law of the United ‘indemnification payment’ means a payment substantially responsible for the insolvency States or any State— (or any agreement to make a payment) by of the Farm Credit System institution, the (1) for the disclosure; or any Farm Credit System institution for the appointment of a conservator or receiver for (2) for any failure to notify the person in- benefit of any person who is or was an insti- the institution, or the institution’s troubled volved in the possible violation. tution-related party, to pay or reimburse the condition (as defined in regulations pre- (b) NO PROHIBITION ON DISCLOSURE.—Any person for any liability or legal expense with scribed by the Corporation); institution of the Farm Credit System, or regard to any administrative proceeding or ‘‘(3) whether there is a reasonable basis to any director, officer, employee, or agent of a civil action instituted by the Farm Credit believe that the institution-related party has Farm Credit System institution, may dis- Administration that results in a final order materially violated any applicable law or close information to a Government author- under which the person— regulation that has had a material effect on ity that may be relevant to a possible viola- ‘‘(A) is assessed a civil money penalty; or the financial condition of the institution; tion of any law or regulation. ‘‘(B) is removed or prohibited from partici- ‘‘(4) whether there is a reasonable basis to TITLE VII—RURAL DEVELOPMENT pating in the conduct of the affairs of the in- believe that the institution-related party has Subtitle A—Amendments to the Food, Agri- stitution. violated or conspired to violate— culture, Conservation, and Trade Act of ‘‘(3) INSTITUTION-RELATED PARTY.—The ‘‘(A) section 215, 657, 1006, 1014, or 1344 of 1990 term ‘institution-related party’ means— title 18, United States Code; or CHAPTER 1—GENERAL PROVISIONS ‘‘(A) a director, officer, employee, or agent ‘‘(B) section 1341 or 1343 of title 18, United SEC. 701. RURAL INVESTMENT PARTNERSHIPS. for a Farm Credit System institution or any States Code, affecting a Farm Credit System (a) IN GENERAL.—Section 2310(c)(1) of the conservator or receiver of such an institu- institution; Food, Agriculture, Conservation, and Trade tion; ‘‘(5) whether the institution-related party Act of 1990 (7 U.S.C. 2007(c)(1)) is amended by ‘‘(B) a stockholder (other than another was in a position of managerial or fiduciary striking ‘‘1996’’ and inserting ‘‘2002’’. Farm Credit System institution), consult- responsibility; and (b) AUTHORIZATION OF APPROPRIATIONS.— ant, joint venture partner, or any other per- ‘‘(6) the length of time that the party was The first sentence of section 2313(d) of the son determined by the Farm Credit Adminis- related to the Farm Credit System institu- Food, Agriculture, Conservation, and Trade tration to be a participant in the conduct of tion and the degree to which— Act of 1990 (7 U.S.C. 2007c) is amended by the affairs of a Farm Credit System institu- ‘‘(A) the payment reasonably reflects com- striking ‘‘$10,000,000’’ and all that follows tion; and pensation earned over the period of employ- through ‘‘1996’’ and inserting ‘‘$4,700,000 for ‘‘(C) an independent contractor (including ment; and each of fiscal years 1996 through 2002’’. any attorney, appraiser, or accountant) that ‘‘(B) the compensation represents a reason- SEC. 702. WATER AND WASTE FACILITY FINANC- knowingly or recklessly participates in any able payment for services rendered. ING. violation of any law or regulation, any ‘‘(d) CERTAIN PAYMENTS PROHIBITED.—No Section 2322 of the Food, Agriculture, Con- breach of fiduciary duty, or any unsafe or Farm Credit System institution may prepay servation, and Trade Act of 1990 (7 U.S.C. unsound practice that caused or is likely to the salary or any liability or legal expense of 1926–1) is repealed. any institution-related party if the payment cause more than a minimal financial loss to, SEC. 703. RURAL WASTEWATER CIRCUIT RIDER or a significant adverse effect on, the Farm is made— PROGRAM. Credit System institution. ‘‘(1) in contemplation of the insolvency of Section 2324 of the Food, Agriculture, Con- ‘‘(4) LIABILITY OR LEGAL EXPENSE.—The the institution or after the commission of an servation, and Trade Act of 1990 (Public Law term ‘liability or legal expense’ means— act of insolvency; and 101–624; 7 U.S.C. 1926 note) is repealed. ‘‘(2) with a view to, or with the result of— ‘‘(A) a legal or other professional expense SEC. 704. TELEMEDICINE AND DISTANCE LEARN- incurred in connection with any claim, pro- ‘‘(A) preventing the proper application of ING SERVICES IN RURAL AREAS. ceeding, or action; the assets of the institution to creditors; or Chapter 1 of subtitle D of title XXIII of the ‘‘(B) the amount of, and any cost incurred ‘‘(B) preferring 1 creditor over another Food, Agriculture, Conservation, and Trade in connection with, any settlement of any creditor. Act of 1990 (7 U.S.C. 950aaa et seq.) is amend- claim, proceeding, or action; and ‘‘(e) RULE OF CONSTRUCTION.—Nothing in ed to read as follows: this section— ‘‘(C) the amount of, and any cost incurred ‘‘CHAPTER 1—TELEMEDICINE AND DIS- in connection with, any judgment or penalty ‘‘(1) prohibits any Farm Credit System in- stitution from purchasing any commercial TANCE LEARNING SERVICES IN RURAL imposed with respect to any claim, proceed- AREAS ing, or action. insurance policy or fidelity bond, so long as the insurance policy or bond does not cover ‘‘SEC. 2331. PURPOSE. ‘‘(5) PAYMENT.—The term ‘payment’ ‘‘The purpose of the financing programs es- means— any legal or liability expense of an institu- tion described in subsection (a)(2); or tablished under this chapter is to encourage ‘‘(A) a direct or indirect transfer of any and improve telemedicine services and dis- funds or any asset; and ‘‘(2) limits the powers, functions, or re- sponsibilities of the Farm Credit Adminis- tance learning services in rural areas ‘‘(B) any segregation of any funds or assets through the use of telecommunications, for the purpose of making, or under an agree- tration.’’. SEC. 699. FARM CREDIT SYSTEM INSURANCE computer networks, and related advanced ment to make, any payment after the date technologies by students, teachers, medical on which the funds or assets are segregated, CORPORATION BOARD OF DIREC- TORS. professionals, and rural residents. without regard to whether the obligation to (a) IN GENERAL.—Section 5.53 of the Farm ‘‘SEC. 2332. DEFINITIONS. make the payment is contingent on— Credit Act of 1971 (12 U.S.C. 2277a–2) is ‘‘In this chapter: ‘‘(i) the determination, after that date, of amended to read as follows: ‘‘(1) CONSTRUCT.—The term ‘construct’ the liability for the payment of the amount; means to construct, acquire, install, im- or ‘‘SEC. 5.53. BOARD OF DIRECTORS. ‘‘(a) ESTABLISHMENT.—The Corporation prove, or extend a facility or system. ‘‘(ii) the liquidation, after that date, of the shall be managed by a Board of Directors ‘‘(2) COST OF MONEY LOAN.—The term ‘cost amount of the payment. that shall consist of the members of the of money loan’ means a loan made under this ‘‘(b) PROHIBITION.—The Corporation may Farm Credit Administration Board. chapter bearing interest at a rate equal to prohibit or limit, by regulation or order, any ‘‘(b) CHAIRMAN.—The Board of Directors the then current cost to the Federal Govern- golden parachute payment or indemnifica- shall be chaired by any Board member other ment of loans of similar maturity. tion payment by a Farm Credit System in- than the Chairman of the Farm Credit Ad- ‘‘(3) SECRETARY.—The term ‘Secretary’ stitution (including any conservator or re- ministration Board.’’. means the Secretary of Agriculture. ceiver of the Federal Agricultural Mortgage (b) CONFORMING AMENDMENTS.— ‘‘SEC. 2333. TELEMEDICINE AND DISTANCE Corporation) in troubled condition (as de- (1) Section 5314 of title 5, United States LEARNING SERVICES IN RURAL fined in regulations issued by the Corpora- Code, is amended by striking ‘‘Chairperson, AREAS. tion). Board of Directors of the Farm Credit Sys- ‘‘(a) SERVICES TO RURAL AREAS.—The Sec- ‘‘(c) FACTORS TO BE TAKEN INTO ACCOUNT.— tem Insurance Corporation.’’. retary is authorized to provide financial as- The Corporation shall prescribe, by regula- (2) Section 5315 of title 5, United States sistance for the purpose of financing the con- tion, the factors to be considered by the Cor- Code, is amended by striking ‘‘Members, struction of facilities and systems to provide S 1112 CONGRESSIONAL RECORD — SENATE February 7, 1996 telemedicine services and distance learning ‘‘(8) the portion of project financing pro- ‘‘SEC. 2334. ADMINISTRATION. services to persons and entities in rural vided by the applicant with funds obtained ‘‘(a) NONDUPLICATION.—The Secretary shall areas. from non-Federal sources; ensure that facilities constructed using fi- ‘‘(b) FINANCIAL ASSISTANCE.— ‘‘(9) the joint utilization of facilities fi- nancial assistance provided under this chap- ‘‘(1) IN GENERAL.—Financial assistance nanced by other financial assistance; ter do not duplicate adequate established shall consist of grants or cost of money ‘‘(10) the coordination of the proposed telemedicine services or distance learning loans, or both. project with regional projects or networks; services. ‘‘(2) FORM.—The Secretary shall determine ‘‘(11) service to the widest practical num- ‘‘(b) LOAN MATURITY.—The maturities of the portion of the financial assistance pro- ber of persons within the general geographic cost of money loans shall be determined by vided to a recipient that consists of grants area covered by the financial assistance; the Secretary, based on the useful life of the and that consists of cost of money loans so ‘‘(12) conformity with the State strategic facility being financed, except that the loan as to result in the maximum feasible repay- plan as prepared under section 381D of the shall not be for a period of more than 10 ment to the Federal Government of the fi- Consolidated Farm and Rural Development years. nancial assistance, based on the ability to Act; and ‘‘(c) LOAN SECURITY AND FEASIBILITY.—The repay of the recipient and full utilization of ‘‘(13) other factors determined appropriate Secretary shall make a cost of money loan funds made available to carry out this chap- by the Secretary. only after determining that the security for ter. ‘‘(e) MAXIMUM AMOUNT OF ASSISTANCE TO the loan is reasonably adequate and that the ‘‘(c) RECIPIENTS.— INDIVIDUAL RECIPIENTS.—The Secretary may loan will be repaid within the period of the ‘‘(1) IN GENERAL.—The Secretary may pro- establish the maximum amount of financial loan. vide financial assistance under this chapter assistance to be made available to an indi- ‘‘(d) ENCOURAGING CONSORTIA.—The Sec- to— vidual recipient for each fiscal year under retary shall encourage the development of ‘‘(A) entities using telemedicine services or this chapter by publishing notice in the Fed- consortia to provide telemedicine services or distance learning services, or both; and eral Register. The notice shall be published distance learning services, or both, through ‘‘(B) entities providing or proposing to pro- not more than 45 days after funds are made telecommunications in rural areas served by vide telemedicine service or distance learn- available to carry out this chapter during a a telecommunications provider. ing service, or both, to other persons at rates fiscal year. ‘‘(e) COOPERATION WITH OTHER AGENCIES.— reflecting the benefit of the financial assist- ‘‘(f) USE OF FUNDS.—Financial assistance The Secretary shall cooperate, to the extent ance. provided under this chapter shall be used practicable, with other Federal and State ‘‘(2) ELECTRIC OR TELECOMMUNICATIONS BOR- for— agencies with similar grant or loan programs ROWERS.— ‘‘(1) the development and acquisition of in- to pool resources for funding meritorious ‘‘(A) LOANS TO BORROWERS.—Subject to structional programming; proposals in rural areas. subparagraph (B), the Secretary may provide ‘‘(2) the development and acquisition, ‘‘(f) INFORMATIONAL EFFORTS.—The Sec- a cost of money loan under this chapter to a through lease or purchase, of computer hard- retary shall establish and implement proce- borrower of an electric or telecommuni- ware and software, audio and visual equip- dures to carry out informational efforts to cations loan under the Rural Electrification ment, computer network components, tele- advise potential end users located in rural Act of 1936 (7 U.S.C. 901 et seq.). A borrower communications terminal equipment, tele- areas of each State about the program au- receiving a cost of money loan under this communications transmission facilities, thorized by this chapter. data terminal equipment, or interactive paragraph shall— ‘‘SEC. 2335. REGULATIONS. video equipment, and other facilities that ‘‘(i) make the funds provided available to ‘‘Not later than 180 days after the effective would further telemedicine services or dis- entities that qualify under paragraph (1) for date of the Agricultural Reform and Im- projects satisfying the requirements of this tance learning services, or both; ‘‘(3) providing technical assistance and in- provement Act of 1996, the Secretary shall chapter; issue regulations to carry out this chapter. ‘‘(ii) use the funds provided to acquire, in- struction for the development or use of the ‘‘SEC. 2335A. AUTHORIZATION OF APPROPRIA- stall, improve, or extend a system for the programming, equipment, or facilities re- ferred to in paragraphs (1) and (2); or TIONS. purposes of this chapter; or ‘‘There are authorized to be appropriated ‘‘(iii) use the funds provided to install, im- ‘‘(4) other uses that are consistent with this chapter, as determined by the Sec- to carry out this chapter $100,000,000 for each prove, or extend a facility for the purposes of of fiscal years 1996 through 2002.’’. this chapter. retary. ‘‘(g) SALARIES AND EXPENSES.—Notwith- SEC. 705. LIMITATION ON AUTHORIZATION OF AP- ‘‘(B) LIMITATIONS.—A borrower of an elec- standing subsection (f), financial assistance PROPRIATIONS FOR RURAL TECH- tric or telecommunications loan under the provided under this chapter shall not be used NOLOGY GRANTS. Rural Electrification Act of 1936 shall— for paying salaries of employees or adminis- Section 2347 of the Food, Agriculture, Con- ‘‘(i) make a system or facility funded under trative expenses. servation, and Trade Act of 1990 (Public Law subparagraph (A) available to entities that ‘‘(h) EXPEDITING COORDINATED TELEPHONE 101–624; 104 Stat. 4034) is amended— qualify under paragraph (1); and LOANS.— (1) by striking ‘‘(a) IN GENERAL.—’’; and ‘‘(ii) neither retain from the proceeds of a ‘‘(1) IN GENERAL.—The Secretary may es- (2) by striking subsection (b). loan provided under subparagraph (A), nor tablish and carry out procedures to ensure SEC. 706. MONITORING THE ECONOMIC assess a qualifying entity under paragraph that expedited consideration and determina- PROGRESS OF RURAL AMERICA. (1), any amount except as may be required to tion is given to applications for loans and ad- Section 2382 of the Food, Agriculture, Con- pay the actual costs incurred in administer- vances of funds submitted by local exchange servation, and Trade Act of 1990 (Public Law ing the loan funds or making the system or carriers under this chapter and the Rural 101–624; 13 U.S.C. 141 note) is repealed. facility available. Electrification Act of 1936 (7 U.S.C. 901 et SEC. 707. ANALYSIS BY OFFICE OF TECHNOLOGY ‘‘(3) ASSISTANCE TO PROVIDE OR IMPROVE seq.) to enable the exchange carriers to pro- ASSESSMENT. SERVICES.—Financial assistance may be pro- vide advanced telecommunications services Section 2385 of the Food, Agriculture, Con- vided under this chapter for a facility re- in rural areas in conjunction with any other servation, and Trade Act of 1990 (Public Law gardless of the location of the facility if the projects carried out under this chapter. 101–624; 7 U.S.C. 950aaa–4 note) is repealed. Secretary determines that the assistance is ‘‘(2) DEADLINE IMPOSED ON SECRETARY.—Not SEC. 708. RURAL HEALTH INFRASTRUCTURE IM- necessary to provide or improve later than 45 days after the receipt of a com- PROVEMENT. telemedicine services or distance learning pleted application for an expedited telephone Section 2391 of the Food, Agriculture, Con- services in a rural area. loan under paragraph (1), the Secretary shall servation, and Trade Act of 1990 (Public Law ‘‘(d) PRIORITY.—The Secretary shall estab- respond to the application. The Secretary 101–624; 7 U.S.C. 2662 note) is repealed. lish procedures to prioritize financial assist- shall notify the applicant in writing of the SEC. 709. CENSUS OF AGRICULTURE. ance provided under this chapter consider- decision of the Secretary regarding each ex- Section 2392 of the Food, Agriculture, Con- ing— pedited loan application. servation, and Trade Act of 1990 (Public Law ‘‘(1) the need for the assistance in the af- ‘‘(i) NOTIFICATION OF LOCAL EXCHANGE CAR- 101–624; 104 Stat. 4057) is repealed. fected rural area; RIER.— CHAPTER 2—ALTERNATIVE AGRICUL- ‘‘(2) the financial need of the applicant; ‘‘(1) APPLICANTS.—Each applicant for a ‘‘(3) the population sparsity of the affected grant for a telemedicine or distance learning TURAL RESEARCH AND COMMER- rural area; project established under this chapter shall CIALIZATION ‘‘(4) the local involvement in the project notify the appropriate local telephone ex- SEC. 721. DEFINITIONS. serving the affected rural area; change carrier regarding the application Section 1657(c) of the Food, Agriculture, ‘‘(5) geographic diversity among the recipi- filed with the Secretary for the grant. Conservation, and Trade Act of 1990 (7 U.S.C. ents of financial assistance; ‘‘(2) SECRETARY.—The Secretary shall— 5901(c)) is amended— ‘‘(6) the utilization of the telecommuni- ‘‘(A) publish notice of applications received (1) by striking paragraphs (3) and (4); cations facilities of the existing tele- for grants under this chapter for (2) by redesignating paragraph (5) as para- communications provider; telemedicine or distance learning projects; graph (3); ‘‘(7) the portion of total project financing and (3) by redesignating paragraphs (6) through provided by the applicant from the funds of ‘‘(B) make the applications available for (12) as paragraphs (7) through (13), respec- the applicant; inspection. tively; and February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1113 (4) by inserting after paragraph (3) (as re- ‘‘(6) may independently retain legal rep- (1) by redesignating subparagraph (N) (re- designated by paragraph (2)) the following: resentation; lating to the Uranium Enrichment Corpora- ‘‘(4) CORPORATE BOARD.—The term ‘Cor- ‘‘(7) may provide for and designate such tion) as subparagraph (O); and porate Board’ means the Board of Directors committees, and the functions of the com- (2) by adding at the end the following: of the Corporation described in section 1659. mittees, as the Corporate Board considers ‘‘(P) the Alternative Agricultural Research ‘‘(5) CORPORATION.—The term ‘Corporation’ necessary or desirable, and Commercialization Corporation.’’. means the Alternative Agricultural Research ‘‘(8) may indemnify the Executive Director (c) CONFORMING AMENDMENT.—Section and Commercialization Corporation estab- and other officers of the Corporation, as the 211(b)(5) of the Department of Agriculture lished under section 1658. Corporate Board considers necessary and de- Reorganization Act of 1994 (7 U.S.C. ‘‘(6) EXECUTIVE DIRECTOR.—The term ‘Exec- sirable, except that the Executive Director 6911(b)(5)) is amended by striking ‘‘Alter- utive Director’ means the Executive Director and officers shall not be indemnified for an native Agricultural Research and Commer- of the Corporation appointed under section act outside the scope of employment; cialization Board’’ and inserting ‘‘Corporate 1659(d)(2).’’. ‘‘(9) may, with the consent of any board, Board of the Alternative Agricultural Re- SEC. 722. ALTERNATIVE AGRICULTURAL RE- commission, independent establishment, or search and Commercialization Corporation’’. SEARCH AND COMMERCIALIZATION executive department of the Federal Govern- SEC. 723. BOARD OF DIRECTORS, EMPLOYEES, CORPORATION. ment, including any field service, use infor- AND FACILITIES. (a) IN GENERAL.—Section 1658 of the Food, mation, services, facilities, officials, and em- (a) IN GENERAL.—Section 1659 of the Food, Agriculture, Conservation, and Trade Act of ployees in carrying out this subtitle, and pay Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5902) is amended to read as fol- for the use, which payments shall be credited lows: 1990 (7 U.S.C. 5903) is amended to read as fol- to the applicable appropriation that incurred lows: ‘‘SEC. 1658. ALTERNATIVE AGRICULTURAL RE- the expense; SEARCH AND COMMERCIALIZATION ‘‘(10) may obtain the services and fix the ‘‘SEC. 1659. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES. CORPORATION. compensation of any consultant and other- ‘‘(a) IN GENERAL.—The powers of the Cor- ‘‘(a) ESTABLISHMENT.—To carry out this wise procure temporary and intermittent poration shall be vested in a Corporate subtitle, there is created a body corporate to services under section 3109(b) of title 5, Unit- Board. be known as the Alternative Agricultural ed States Code; Research and Commercialization Corpora- ‘‘(11) may use the United States mails on ‘‘(b) MEMBERS OF THE CORPORATE BOARD.— tion, which shall be an agency of the United the same terms and conditions as the Execu- The Corporate Board shall consist of 10 mem- States, within the Department of Agri- tive agencies of the Federal Government; bers as follows: culture, subject to the general supervision ‘‘(12) shall have the rights, privileges, and ‘‘(1) The Under Secretary of Agriculture and direction of the Secretary, except as spe- immunities of the United States with respect for Rural Economic and Community Devel- cifically provided for in this subtitle. to the right to priority of payment with re- opment. ‘‘(b) PURPOSE.—The purpose of the Cor- spect to debts due from bankrupt, insolvent, ‘‘(2) The Under Secretary of Agriculture poration is to— for Research, Education, and Economics. ‘‘(1) expedite the development and market or deceased creditors; ‘‘(13) may collect or compromise any obli- ‘‘(3) 4 members appointed by the Secretary, penetration of industrial, nonfood, nonfeed of whom— products from agricultural and forestry ma- gations assigned to or held by the Corpora- tion, including any legal or equitable rights ‘‘(A) at least 1 member shall be a rep- terials; and resentative of the leading scientific dis- ‘‘(2) assist the private sector in bridging accruing to the Corporation; ‘‘(14) shall determine the character of, and ciplines relevant to the activities of the Cor- the gap between research results and the poration; commercialization of the research. necessity for, obligations and expenditures of the Corporation and the manner in which the ‘‘(B) at least 1 member shall be a producer ‘‘(c) PLACE OF INCORPORATION.—The Cor- or processor of agricultural commodities; poration shall be located in the District of obligations and expenditures shall be in- and Columbia. curred, allowed, and paid, subject to provi- ‘‘(C) at least 1 member shall be a person ‘‘(d) CENTRAL OFFICE.—The Secretary shall sions of law specifically applicable to Gov- provide facilities for the principal office of ernment corporations; who is privately engaged in the commer- the Corporation within the Washington, D.C. ‘‘(15) may make final and conclusive settle- cialization of new nonfood, nonfeed products metropolitan area. ment and adjustment of any claim by or from agricultural commodities. ‘‘(e) WHOLLY-OWNED GOVERNMENT CORPORA- against the Corporation or a fiscal officer of ‘‘(4) 2 members appointed by the Secretary TION.—The Corporation shall be considered a the Corporation; who— wholly-owned government corporation for ‘‘(16) may sell assets, loans, and equity in- ‘‘(A) have expertise in areas of applied re- purposes of chapter 91 of title 31, United terests acquired in connection with the fi- search relating to the development or com- States Code. nancing of projects funded by the Corpora- mercialization of new nonfood, nonfeed prod- ‘‘(f) GENERAL POWERS.—In addition to any tion; and ucts; and other powers granted to the Corporation ‘‘(17) may exercise all other lawful powers ‘‘(B) shall be appointed from a group of at under this subtitle, the Corporation— necessarily or reasonably related to the es- least 4 individuals nominated by the Direc- ‘‘(1) shall have succession in its corporate tablishment of the Corporation to carry out tor of the National Science Foundation if the name; this subtitle and the powers, purposes, func- nominations are made within 60 days after ‘‘(2) may adopt, alter, and rescind any tions, duties, and authorized activities of the the date a vacancy occurs. bylaw and adopt and alter a corporate seal, Corporation. ‘‘(5) 2 members appointed by the Secretary which shall be judicially noticed; ‘‘(g) SPECIFIC POWERS.—To carry out this who— ‘‘(3) may enter into any agreement or con- subtitle, the Corporation shall have the au- ‘‘(A) have expertise in financial and mana- tract with a person or private or govern- thority to— gerial matters; and mental agency, except that the Corporation ‘‘(1) make grants to, and enter into cooper- ‘‘(B) shall be appointed from a group of at shall not provide any financial assistance ative agreements and contracts with, eligi- least 4 individuals nominated by the Sec- unless specifically authorized under this sub- ble applicants for research, development, and retary of Commerce if the nominations are title; demonstration projects in accordance with made within 60 days after the date a vacancy ‘‘(4) may lease, purchase, accept a gift or section 1660; occurs. donation of, or otherwise acquire, use, own, ‘‘(2) make loans and interest subsidy pay- ‘‘(c) RESPONSIBILITIES OF THE CORPORATE hold, improve, or otherwise deal in or with, ments and invest venture capital in accord- BOARD.— and sell, convey, mortgage, pledge, lease, ex- ance with section 1661; ‘‘(1) IN GENERAL.—The Corporate Board change, or otherwise dispose of, any prop- ‘‘(3) collect and disseminate information shall— erty, real, personal, or mixed, or any interest concerning State, regional, and local com- ‘‘(A) be responsible for the general super- in property, as the Corporation considers mercialization projects; vision of the Corporation and Regional Cen- necessary in the transaction of the business ‘‘(4) search for new nonfood, nonfeed prod- ters established under section 1663; of the Corporation, except that this para- ucts that may be produced from agricultural ‘‘(B) determine (in consultation with Re- graph shall not provide authority for carry- commodities and for processes to produce gional Centers) high priority commercializa- ing out a program of real estate investment; the products; tion areas to receive assistance under sec- ‘‘(5) may sue and be sued in the corporate ‘‘(5) administer, maintain, and dispense tion 1663; name of the Corporation, except that— funds from the Alternative Agricultural Re- ‘‘(C) review any grant, contract, or cooper- ‘‘(A) no attachment, injunction, garnish- search and Commercialization Revolving ative agreement to be made or entered into ment, or similar process shall be issued Fund to facilitate the conduct of activities by the Corporation under section 1660 and against the Corporation or property of the under this subtitle; and any financial assistance to be provided under Corporation; and ‘‘(6) engage in other activities incident to section 1661; ‘‘(B) exclusive original jurisdiction shall carrying out the functions of the Corpora- ‘‘(D) make the final decision, by majority reside in the district courts of the United tion.’’. vote, on whether and how to provide assist- States, but the Corporation may intervene in (b) WHOLLY OWNED GOVERNMENT CORPORA- ance to an applicant; and any court in any suit, action, or proceeding TION.—Section 9101(3) of title 31, United ‘‘(E) using the results of the hearings and in which the Corporation has an interest; States Code, is amended— other information and data collected under S 1114 CONGRESSIONAL RECORD — SENATE February 7, 1996 paragraph (2), develop and establish a budget necessary expenses incurred by the member appoint officers, attorneys, employees, and plan and a long-term operating plan to carry in the performance of the duties of the mem- agents, who shall be vested with such powers out this subtitle. ber. and duties as the Corporation may deter- ‘‘(2) AUTHORITY OF THE SECRETARY.— ‘‘(j) CONFLICT OF INTEREST; FINANCIAL DIS- mine. ‘‘(A) IN GENERAL.—The Secretary shall va- CLOSURE.— ‘‘(2) USE OF FACILITIES AND SERVICES OF THE cate and remand to the Board for reconsider- ‘‘(1) CONFLICT OF INTEREST.—Except as pro- DEPARTMENT OF AGRICULTURE.—Notwith- ation any decision made pursuant to para- vided in paragraph (3), no member of the Cor- standing any other provision of law, to per- graph (1)(D) if the Secretary determines that porate Board shall vote on any matter re- form the responsibilities of the Corporation there has been a violation of subsection (j), specting any application, contract, claim, or under this subtitle, the Corporation may or any conflict of interest provisions of the other particular matter pending before the partially or jointly utilize the facilities of bylaws of the Board, with respect to the de- Corporation, in which, to the knowledge of and the services of employees of the Depart- cision. the member, the member, spouse, or child of ment of Agriculture, without cost to the ‘‘(B) REASONS.—In the case of any violation the member, partner, or organization in Corporation. and referral of a funding decision to the which the member is serving as officer, di- ‘‘(3) GOVERNMENT EMPLOYMENT LAWS.—An Board, the Secretary shall inform the Board rector, trustee, partner, or employee, or any officer or employee of the Corporation shall of the reasons for any remand pursuant to person or organization with whom the mem- be subject to all laws of the United States re- subparagraph (A). ber is negotiating or has any arrangement lating to governmental employment.’’. ‘‘(d) CHAIRPERSON.—The members of the concerning prospective employment, has a (b) CONFORMING AMENDMENT.—Section 5315 Corporate Board shall select a Chairperson financial interest. of title V, United States Code, is amended by from among the members of the Corporate ‘‘(2) VIOLATIONS.—Action by a member of adding at the end the following: Board. The term of office of the Chairperson the Corporate Board that is contrary to the shall be 2 years. The members referred to in prohibition contained in paragraph (1) shall ‘‘Executive Director of the Alternative Ag- paragraphs (1) and (2) of subsection (b) may be cause for removal of the member, but ricultural Research and Commercialization not serve as Chairperson. shall not impair or otherwise affect the va- Corporation.’’. ‘‘(e) EXECUTIVE DIRECTOR.— lidity of any otherwise lawful action by the SEC. 724. RESEARCH AND DEVELOPMENT ‘‘(1) IN GENERAL.—The Executive Director Corporation in which the member partici- GRANTS, CONTRACTS, AND AGREE- of the Corporation shall be the chief execu- pated. MENTS. tive officer of the Corporation, with such ‘‘(3) EXCEPTIONS.—The prohibitions con- Section 1660 of the Food, Agriculture, Con- power and authority as may be conferred by tained in paragraph (1) shall not apply if a servation, and Trade Act of 1990 (7 U.S.C. the Corporate Board. The Executive Director member of the Corporate Board advises the 5904) is amended— shall be appointed by the Corporate Board. Corporate Board of the nature of the particu- (1) by striking ‘‘Center’’ each place it ap- The appointment shall be subject to the ap- lar matter in which the member proposes to pears and inserting ‘‘Corporation’’; proval of the Secretary. participate, and if the member makes a full (2) in subsection (c), by striking ‘‘Board’’ ‘‘(2) COMPENSATION.—The Executive Direc- disclosure of the financial interest, prior to and inserting ‘‘Corporate Board’’; and tor shall receive basic pay at the rate pro- any participation, and the Corporate Board (3) in subsection (f), by striking ‘‘non-Cen- vided for level IV of the Executive Schedule determines, by majority vote, that the finan- ter’’ and inserting ‘‘non-Corporation’’. under section 5315 of title 5, United States cial interest is too remote or too incon- Code. sequential to affect the integrity of the SEC. 725. COMMERCIALIZATION ASSISTANCE. ‘‘(f) OFFICERS.—The Corporate Board shall member’s services to the Corporation in that Section 1661 of the Food, Agriculture, Con- establish the offices and appoint the officers matter. The member involved shall not vote servation, and Trade Act of 1990 (7 U.S.C. of the Corporation, including a Secretary, on the determination. 5905) is amended— and define the duties of the officers in a ‘‘(4) FINANCIAL DISCLOSURE.—A Board mem- (1) by striking ‘‘Center’’ each place it ap- manner consistent with this subtitle. ber shall be subject to the financial disclo- pears and inserting ‘‘Corporation’’; ‘‘(g) MEETINGS.—The Corporate Board shall sure requirements applicable to a special (2) by striking ‘‘Board’’ each place it ap- meet at least 3 times each fiscal year at the Government employee (as defined in section pears and inserting ‘‘Corporate Board’’; call of the Chairperson or at the request of 202(a) of title 18, United States Code). (3) by striking subsection (c); the Executive Director. The location of the ‘‘(k) DELEGATION OF AUTHORITY.— (4) by redesignating subsections (d), (e), meetings shall be subject to approval of the ‘‘(1) IN GENERAL.—The Corporate Board and (f) as subsections (c), (d), and (e), respec- Executive Director. A quorum of the Cor- may, by resolution, delegate to the Chair- tively; and porate Board shall consist of a majority of person, the Executive Director, or any other (5) in subsection (c) (as so redesignated)— the members. The decisions of the Corporate officer or employee any function, power, or (A) in the subsection heading of paragraph Board shall be made by majority vote. duty assigned to the Corporation under this (1), by striking ‘‘DIRECTOR’’ and inserting ‘‘(h) TERM; VACANCIES.— subtitle, other than a function, power, or ‘‘EXECUTIVE DIRECTOR’’; and ‘‘(1) IN GENERAL.—The term of office of a duty expressly vested in the Corporate Board (B) by striking ‘‘Director’’ each place it ap- member of the Corporate Board shall be 4 by subsections (c) through (n). years, except that the members initially ap- pears and inserting ‘‘Executive Director’’. ‘‘(2) PROHIBITION ON DELEGATION.—Notwith- pointed shall be appointed to serve staggered standing any other law, the Secretary and SEC. 726. GENERAL RULES REGARDING THE PRO- terms. A member appointed to fill a vacancy any other officer or employee of the United VISION OF ASSISTANCE. for an unexpired term may be appointed only States shall not make any delegation to the Section 1662 of the Food, Agriculture, Con- for the remainder of the term. A vacancy on Corporate Board, the Chairperson, the Exec- servation, and Trade Act of 1990 (7 U.S.C. the Corporate Board shall be filled in the utive Director, or the Corporation of any 5906) is amended— same manner as the original appointment. power, function, or authority not expressly (1) by striking ‘‘Center’’ each place it ap- The Secretary shall not remove a member of authorized by this subtitle, unless the dele- pears (except in subsection (b)) and inserting the Corporate Board except for cause. gation is made pursuant to an authority in ‘‘Corporation’’; ‘‘(2) TRANSITION MEASURE.—An individual law that expressly makes reference to this (2) by striking ‘‘Board’’ each place it ap- who is serving on the Alternative Agricul- section. tural Research and Commercialization Board pears and inserting ‘‘Corporate Board’’; and ‘‘(3) REORGANIZATION ACT.—Notwithstand- (3) in subsection (b)— on the day before the effective date of the ing any other law, the President (through (A) in the second sentence, by striking Agricultural Reform and Improvement Act authorities provided under chapter 9, title 5, ‘‘Board, a Regional Center, or the Advisory of 1996 may be appointed to the Corporate United States Code) may not authorize the Council’’ and inserting ‘‘Board or a Regional Board by the Secretary for a term that does transfer to the Corporation of any power, Center’’; and not exceed the term of the individual on the function, or authority in addition to powers, (B) by striking the third sentence. Alternative Agricultural Research and Com- functions, and authorities provided by law. mercialization Board if the Act had not been ‘‘(l) BYLAWS.—Notwithstanding section SEC. 727. REGIONAL CENTERS. enacted. 1658(f)(2), the Corporate Board shall adopt, ‘‘(i) COMPENSATION.—A member of the Cor- and may from time to time amend, any Section 1663 of the Food, Agriculture, Con- porate Board who is an officer or employee of bylaw that is necessary for the proper man- servation, and Trade Act of 1990 (7 U.S.C. the United States shall not receive any addi- agement and functioning of the Corporation. 5907) is amended— tional compensation by reason of service on The Corporate Board shall not adopt any (1) by striking ‘‘Board’’ each place it ap- the Corporate Board. Any other member bylaw that has not been reviewed and ap- pears and inserting ‘‘Corporate Board’’; shall receive, for each day (including travel proved by the Secretary. (2) in subsection (e)(8), by striking ‘‘Cen- time) the member is engaged in the perform- ‘‘(m) ORGANIZATION.—The Corporate Board ter’’ and inserting ‘‘Corporation’’; and ance of the functions of the Corporate Board, shall provide a system of organization to fix (3) in subsection (f)— compensation at a rate not to exceed the responsibility and promote efficiency. (A) in paragraph (2), by striking ‘‘in con- daily equivalent of the annual rate in effect ‘‘(n) PERSONNEL AND FACILITIES OF COR- sultation with the Advisory Council ap- for Level IV of the Executive Schedule. A PORATION.— pointed under section 1661(c)’’; and member of the Corporate Board shall be re- ‘‘(1) APPOINTMENT AND COMPENSATION OF (B) by striking paragraphs (3) and (4) and imbursed for travel, subsistence, and other PERSONNEL.—The Corporation may select and inserting the following: February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1115

‘‘(3) RECOMMENDATION.—The Regional Di- any commercialization project to be ex- ‘‘(2) paragraph (1) or (2) of section 1661(a), rector, based on the comments of the review- pended from project awards that shall be less than 5 years have elapsed since the date ers, shall make and submit a recommenda- used to ensure that project funds are being the loan was made or insured; tion to the Board. A recommendation sub- utilized in accordance with the project ‘‘(3) section 1661(a)(3), less than 5 years mitted by a Regional Director shall not be agreement. have elapsed since the date of sale of any re- binding on the Board.’’. ‘‘(f) TERMINATION OF THE FUND.—On expira- maining government equity interest in the SEC. 728. ALTERNATIVE AGRICULTURAL RE- tion of the authority provided by this sub- company; or SEARCH AND COMMERCIALIZATION title, all assets (after payment of all out- ‘‘(4) section 1661(a)(4), less than 5 years REVOLVING FUND. standing obligations) of the Fund shall re- have elapsed since the date of the final pay- Section 1664 of the Food, Agriculture, Con- vert to the general fund of the Treasury. ment on the repayable grant.’’. servation, and Trade Act of 1990 (7 U.S.C. ‘‘(g) AUTHORIZATION OF APPROPRIATIONS; SEC. 730. BUSINESS PLAN AND FEASIBILITY 5908) is amended to read as follows: CAPITALIZATION.— STUDY AND REPORT. ‘‘SEC. 1664. ALTERNATIVE AGRICULTURAL RE- ‘‘(1) AUTHORIZATION OF APPROPRIATION.— (a) BUSINESS PLAN.—Not later than 180 SEARCH AND COMMERCIALIZATION There are authorized to be appropriated to days after the date of enactment of this Act, REVOLVING FUND. the Fund $75,000,000 for each of fiscal years the Alternative Agricultural Research and ‘‘(a) ESTABLISHMENT.—There is established 1996 through 2002. Commercialization Corporation established in the Treasury of the United States a re- ‘‘(2) CAPITALIZATION.—The Executive Direc- under section 1658 of the Food, Agriculture, volving fund to be known as the Alternative tor may pay as capital of the Corporation, Conservation, and Trade Act of 1990 (7 U.S.C. Agricultural Research and Commercializa- from amounts made available through an- 5902) shall— tion Revolving Fund. The Fund shall be nual appropriations, $75,000,000 for each of (1) develop a 5-year business plan pursuant available to the Corporation, without fiscal fiscal years 1996 through 2002. On the pay- to section 1659(c)(1)(E) of the Food, Agri- year limitation, to carry out the authorized ment of capital by the Executive Director, culture, Conservation, and Trade Act of 1990 programs and activities of the Corporation the Corporation shall issue an equivalent (as amended by section 723); and under this subtitle. amount of capital stock to the Secretary of (2) submit the plan to the Secretary of Ag- ‘‘(b) CONTENTS OF FUND.—There shall be de- the Treasury. riculture, the Committee on Agriculture of posited in the Fund— ‘‘(3) TRANSFER.—All obligations, assets, the House of Representatives, and the Com- ‘‘(1) such amounts as may be appropriated and related rights and responsibilities of the mittee on Agriculture, Nutrition, and For- or transferred to support programs and ac- Alternative Agricultural Research and Com- estry of the Senate. tivities of the Corporation; mercialization Center established under sec- (b) FEASIBILITY STUDY AND REPORT.— ‘‘(2) payments received from any source for tion 1658 of the Food, Agriculture, Conserva- (1) STUDY.—The Secretary of Agriculture products, services, or property furnished in tion, and Trade Act of 1990 (7 U.S.C. 5902) (as shall conduct a study of and prepare a report connection with the activities of the Cor- in effect on the day before the effective date on the continued feasibility of the Alter- poration; of the Agricultural Reform and Improvement native Agricultural Research and Commer- ‘‘(3) fees and royalties collected by the Cor- Act of 1996) are transferred to the Corpora- cialization Corporation. In conducting the poration from licensing or other arrange- tion.’’. study, the Secretary shall examine options ments relating to commercialization of prod- SEC. 729. PROCUREMENT PREFERENCES FOR for privatizing the Corporation and convert- ucts developed through projects funded in PRODUCTS RECEIVING CORPORA- ing the Corporation to a Government spon- whole or part by grants, contracts, or coop- TION ASSISTANCE. sored enterprise. erative agreements executed by the Corpora- Subtitle G of title XVI of the Food, Agri- (2) REPORT.—Not later than December 31, tion; culture, Conservation, and Trade Act of 1990 2001, the Secretary shall transmit the report ‘‘(4) proceeds from the sale of assets, loans, (7 U.S.C. 5901 et seq.) is amended by adding to the Committee on Agriculture of the and equity interests made in furtherance of at the end the following: House of Representatives and the Committee the purposes of the Corporation; ‘‘SEC. 1665. PROCUREMENT OF ALTERNATIVE AG- on Agriculture, Nutrition, and Forestry of ‘‘(5) donations or contributions accepted by RICULTURAL RESEARCH AND COM- the Senate. the Corporation to support authorized pro- MERCIALIZATION PRODUCTS. Subtitle B—Amendments to the Consolidated grams and activities; and ‘‘(a) DEFINITION OF EXECUTIVE AGENCY.—In Farm and Rural Development Act this section, the term ‘executive agency’ has ‘‘(6) any other funds acquired by the Cor- CHAPTER 1—GENERAL PROVISIONS the meaning provided the term in section poration. 4(1) of the Office of Federal Procurement SEC. 741. WATER AND WASTE FACILITY LOANS ‘‘(c) FUNDING ALLOCATIONS.—Funding of AND GRANTS. projects and activities under this subtitle Policy Act (41 U.S.C. 403(1)). ‘‘(b) PROCUREMENT.—To further the (a) IN GENERAL.—Section 306(a) of the Con- shall be subject to the following restrictions: achievement of the purposes specified in sec- solidated Farm and Rural Development Act ‘‘(1) Of the total amount of funds made tion 1657(b), an executive agency may, for (7 U.S.C. 1926(a)) is amended— available for a fiscal year under this sub- any procurement involving the acquisition of (1) in the first sentence of paragraph (2), by title— property, establish set-asides and pref- striking ‘‘$500,000,000’’ and inserting ‘‘(A) not more than the lesser of 15 percent erences for property that has been commer- ‘‘$590,000,000’’; or $3,000,000 may be set aside to be used for cialized with assistance provided under this (2) by striking paragraph (7) and inserting authorized administrative expenses of the subtitle. the following: Corporation in carrying out the functions of ‘‘(c) SET-ASIDES.—Procurements solely for ‘‘(7) DEFINITION OF RURAL AND RURAL the Corporation; property may be set-aside exclusively for AREAS.—For the purpose of water and waste ‘‘(B) not more than 1 percent may be set products developed with commercialization disposal grants and direct and guaranteed aside to be used for generic studies and spe- assistance provided under section 1661. loans provided under paragraphs (1) and (2), cific reviews of individual proposals for fi- ‘‘(d) PREFERENCES.—Preferences for prop- the terms ‘rural’ and ‘rural area’ shall mean nancial assistance; and erty developed with assistance provided a city, town, or unincorporated area that has ‘‘(C) except as provided in subsection (e), under this subtitle in procurements involv- a population of no more than 10,000 inhab- not less than 84 percent shall be set aside to ing the acquisition of property may be— itants.’’; be awarded to qualified applicants who file ‘‘(1) a price preference, if the procurement (3) by striking paragraphs (9), (10), and (11) project applications with, or respond to re- is solely for property, of not greater than a and inserting the following: quests for proposals from, the Corporation percentage to be determined within the sole ‘‘(9) CONFORMITY WITH STATE DRINKING under sections 1660 and 1661. discretion of the head of the procuring agen- WATER STANDARDS.—No Federal funds shall ‘‘(2) Any funds remaining uncommitted at cy; or be made available under this section unless the end of a fiscal year shall be credited to ‘‘(2) a technical evaluation preference in- the Secretary determines that the water sys- the Fund and added to the total program cluded as an award factor or subfactor as de- tem seeking funding will make significant funds available to the Corporation for the termined within the sole discretion of the progress toward meeting the standards es- next fiscal year. head of the procuring agency. tablished under title XIV of the Public ‘‘(d) AUTHORIZED ADMINISTRATIVE EX- ‘‘(e) NOTICE.—Each competitive solicita- Health Service Act (commonly known as the PENSES.—For the purposes of this section, tion or invitation for bids selected by an ex- ‘Safe Drinking Water Act’) (42 U.S.C. 300f et authorized administrative expenses shall in- ecutive agency for a set-aside or preference seq.). clude all ordinary and necessary expenses, under this section shall contain a provision ‘‘(10) CONFORMITY WITH FEDERAL AND STATE including all compensation for personnel and notifying offerors where a list of products el- WATER POLLUTION CONTROL STANDARDS.—In consultants, expenses for computer usage, or igible for the set aside or preference may be the case of a water treatment discharge or space needs of the Corporation and similar obtained. waste disposal system seeking funding, no expenses. Funds authorized for administra- ‘‘(f) ELIGIBILITY.—Offerors shall receive the Federal funds shall be made available under tive expenses shall not be available for the set aside or preference required under this this section unless the Secretary determines acquisition of real property. section if, in the case of products developed that the effluent from the system conforms ‘‘(e) PROJECT MONITORING.—The Board may with financial assistance under— with applicable Federal and State water pol- establish, in the bylaws of the Board, a per- ‘‘(1) section 1660, less than 10 years have lution control standards. cent of funds provided under subsection (c), elapsed since the expiration of the grant, co- ‘‘(11) RURAL BUSINESS OPPORTUNITY not to exceed 1 percent per project award, for operative agreement, or contract; GRANTS.— S 1116 CONGRESSIONAL RECORD — SENATE February 7, 1996

‘‘(A) IN GENERAL.—The Secretary may ment Act (7 U.S.C. 1929a(a)) is amended by (5) by striking subsection (e) (as so redesig- make grants, not to exceed $1,500,000 annu- striking ‘‘, 306(a)(14),’’. nated) and inserting the following: ally, to public bodies, private nonprofit com- SEC. 742. EMERGENCY COMMUNITY WATER AS- ‘‘(e) RURAL COOPERATIVE DEVELOPMENT munity development corporations or enti- SISTANCE GRANT PROGRAM FOR GRANTS.— ties, or such other agencies as the Secretary SMALL COMMUNITIES. ‘‘(1) DEFINITIONS.—In this subsection: may select to enable the recipients— Section 306A of the Consolidated Farm and ‘‘(A) NONPROFIT INSTITUTION.—The term ‘‘(i) to identify and analyze business oppor- Rural Development Act (7 U.S.C. 1926a) is ‘nonprofit institution’ means any organiza- tunities, including opportunities in export amended— tion or institution, including an accredited markets, that will use local rural economic (1) in subsection (e)— institution of higher education, no part of and human resources; (A) by striking paragraph (1) and inserting the net earnings of which inures, or may ‘‘(ii) to identify, train, and provide tech- the following: lawfully inure, to the benefit of any private nical assistance to existing or prospective ‘‘(1) MAXIMUM INCOME.—No grant provided shareholder or individual. rural entrepreneurs and managers; under this section may be used to assist any ‘‘(B) UNITED STATES.—The term ‘United ‘‘(iii) to establish business support centers rural area or community that has a median States’ means the several States, the Dis- and otherwise assist in the creation of new household income in excess of the State trict of Columbia, the Commonwealth of rural businesses, the development of meth- nonmetropolitan median household income Puerto Rico, the Virgin Islands, Guam, ods of financing local businesses, and the en- according to the most recent decennial cen- American Samoa, and the other territories hancement of the capacity of local individ- sus of the United States.’’; and and possessions of the United States. uals and entities to engage in sound eco- (B) in paragraph (2), by striking ‘‘5,000’’ ‘‘(2) GRANTS.—The Secretary shall make nomic activities; and inserting ‘‘3,000’’; and grants under this subsection to nonprofit in- ‘‘(iv) to conduct regional, community, and (2) by striking subsection (i) and inserting stitutions for the purpose of enabling the in- local economic development planning and the following: stitutions to establish and operate centers coordination, and leadership development; ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— for rural cooperative development. and There are authorized to be appropriated to ‘‘(3) GOALS.—The goals of a center funded ‘‘(v) to establish centers for training, tech- carry out this section $35,000,000 for each of under this subsection shall be to facilitate nology, and trade that will provide training fiscal years 1996 through 2002.’’. the creation of jobs in rural areas through to rural businesses in the utilization of the development of new rural cooperatives, SEC. 743. EMERGENCY COMMUNITY WATER AS- value added processing, and rural businesses. interactive communications technologies to SISTANCE GRANT PROGRAM FOR ‘‘(4) APPLICATION.—Any nonprofit institu- develop international trade opportunities SMALLEST COMMUNITIES. tion seeking a grant under paragraph (2) and markets. Section 306B of the Consolidated Farm and shall submit to the Secretary an application ‘‘(B) CRITERIA.—In awarding the grants, Rural Development Act (7 U.S.C. 1926b) is re- containing a plan for the establishment and the Secretary shall consider, among other pealed. operation by the institution of a center or criteria to be established by the Secretary— SEC. 744. AGRICULTURAL CREDIT INSURANCE centers for cooperative development. The ‘‘(i) the extent to which the applicant pro- FUND. Secretary may approve the application if the vides development services in the rural serv- Section 309(f) of the Consolidated Farm plan contains the following: ice area of the applicant; and and Rural Development Act (7 U.S.C. 1929(f)) ‘‘(A) A provision that substantiates that ‘‘(ii) the capability of the applicant to is amended— the center will effectively serve rural areas carry out the purposes of this section. (1) by striking paragraph (1); and in the United States. ‘‘(C) COORDINATION.—The Secretary shall (2) by redesignating paragraphs (2) through ‘‘(B) A provision that the primary objec- ensure, to the maximum extent practicable, (6) as paragraphs (1) through (5), respec- tive of the center will be to improve the eco- that assistance provided under this para- tively. nomic condition of rural areas through coop- graph is coordinated with and delivered in SEC. 745. RURAL DEVELOPMENT INSURANCE erative development. cooperation with similar services or assist- FUND. ‘‘(C) A description of the activities that ance provided to rural residents by the Coop- Section 309A(g) of the Consolidated Farm the center will carry out to accomplish the erative State Research, Education, and Ex- and Rural Development Act (7 U.S.C. objective. The activities may include the fol- tension Service or other Federal agencies. 1929a(g)) is amended— lowing: ‘‘(D) AUTHORIZATION OF APPROPRIATIONS.— (1) by striking paragraph (1); and ‘‘(i) Programs for applied research and fea- There are authorized to be appropriated to (2) by redesignating paragraphs (2) through sibility studies that may be useful to indi- carry out this paragraph $7,500,000 for each of (8) as paragraphs (1) through (7), respec- viduals, cooperatives, small businesses, and fiscal years 1996 through 2002.’’; tively. other similar entities in rural areas served (4) by striking paragraphs (14) and (15); and SEC. 746. INSURED WATERSHED AND RESOURCE by the center. (5) in paragraph (16)— CONSERVATION AND DEVELOPMENT ‘‘(ii) Programs for the collection, interpre- (A) by striking ‘‘(16)(A) The’’ and inserting LOANS. tation, and dissemination of information the following: Section 310A of the Consolidated Farm and that may be useful to individuals, coopera- ‘‘(16) RURAL WATER AND WASTEWATER TECH- Rural Development Act (7 U.S.C. 1931) is re- tives, small businesses, and other similar en- NICAL ASSISTANCE AND TRAINING PROGRAMS.— pealed. tities in rural areas served by the center. ‘‘(A) IN GENERAL.—The’’; SEC. 747. RURAL INDUSTRIALIZATION ASSIST- ‘‘(iii) Programs providing training and in- (B) in subparagraph (A)— ANCE. struction for individuals, cooperatives, small (i) by striking ‘‘(i) identify’’ and inserting (a) IN GENERAL.—Section 310B of the Con- businesses, and other similar entities in the following: solidated Farm and Rural Development Act rural areas served by the center. ‘‘(i) identify’’; (7 U.S.C. 1932) is amended— ‘‘(iv) Programs providing loans and grants (ii) by striking ‘‘(ii) prepare’’ and inserting (1) in subsection (b), by striking ‘‘(b)(1)’’ to individuals, cooperatives, small busi- the following: and all that follows through ‘‘(2) The’’ and nesses, and other similar entities in rural ‘‘(ii) prepare’’; and inserting the following: areas served by the center. (iii) by striking ‘‘(iii) improve’’ and insert- ‘‘(b) SOLID WASTE MANAGEMENT GRANTS.— ‘‘(v) Programs providing technical assist- ing the following: The’’; ance, research services, and advisory services ‘‘(iii) improve’’; (2) in subsection (c)— to individuals, cooperatives, small busi- (C) in subparagraph (B), by striking ‘‘(B) (A) by striking ‘‘(c)(1) The’’ and inserting nesses, and other similar entities in rural In’’ and inserting the following: the following: areas served by the center. ‘‘(B) SELECTION PRIORITY.—In’’; and ‘‘(c) RURAL BUSINESS ENTERPRISE ‘‘(vi) Programs providing for the coordina- (D) in subparagraph (C)— GRANTS.— tion of services and sharing of information (i) by striking ‘‘(C) Not’’ and inserting the ‘‘(1) IN GENERAL.—The’’; among the center. following: (B) in paragraph (1), by inserting ‘‘(includ- ‘‘(D) A description of the contributions ‘‘(C) FUNDING.—Not’’; and ing nonprofit entities)’’ after ‘‘private busi- that the activities are likely to make to the (ii) by striking ‘‘2 per centum of any funds ness enterprises’’; and improvement of the economic conditions of provided in Appropriations Acts’’ and insert- (C) in paragraph (2)— the rural areas for which the center will pro- ing ‘‘3 percent of any funds appropriated’’. (i) by striking ‘‘(2) The’’ and inserting the vide services. (b) CONFORMING AMENDMENTS.— following: ‘‘(E) Provisions that the center, in carry- (1) Section 307(a)(6)(B) of the Consolidated ‘‘(2) PASSENGER TRANSPORTATION SERVICES ing out the activities, will seek, where ap- Farm and Rural Development Act (7 U.S.C. OR FACILITIES.—The’’; and propriate, the advice, participation, exper- 1927(a)(6)(B)) (as amended by section (ii) by striking ‘‘make grants’’ and insert- tise, and assistance of representatives of 651(a)(2)) is further amended— ing ‘‘award grants on a competitive basis’’; business, industry, educational institutions, (A) by striking clause (ii); and and the Federal Government, and State and local (B) by redesignating clauses (iii) and (iv) as (3) by striking subsections (e), (g), (h), and governments. clauses (ii) and (iii), respectively. (i); ‘‘(F) Provisions that the center will take (2) The second sentence of section 309A(a) (4) by redesignating subsections (f) and (j) all practicable steps to develop continuing of the Consolidated Farm and Rural Develop- as subsections (e) and (f), respectively; sources of financial support for the center, February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1117 particularly from sources in the private sec- established for the purpose of processing an SEC. 752. RURAL DEVELOPMENT CERTIFIED tor. agricultural commodity. LENDERS PROGRAM. ‘‘(G) Provisions for— ‘‘(3) ELIGIBILITY.—To be eligible for a loan The Consolidated Farm and Rural Develop- ‘‘(i) monitoring and evaluating the activi- guarantee under this subsection, a farmer ment Act is amended by inserting after sec- ties by the nonprofit institution operating must produce the agricultural commodity tion 363 (7 U.S.C. 2006e) the following: the center; and that will be processed by the cooperative. ‘‘(ii) accounting for money received by the ‘‘(4) COLLATERAL.—To be eligible for a loan ‘‘SEC. 364. RURAL DEVELOPMENT CERTIFIED institution under this section. guarantee under this subsection for the es- LENDERS PROGRAM. ‘‘(5) AWARDING GRANTS.—Grants made tablishment of a cooperative, the borrower of ‘‘(a) CERTIFIED LENDERS PROGRAM.— under paragraph (2) shall be made on a com- the loan must pledge collateral to secure at ‘‘(1) IN GENERAL.—The Secretary may es- petitive basis. In making grants under para- least 25 percent of the amount of the loan.’’. graph (2), the Secretary shall give preference tablish a program under which the Secretary (b) CONFORMING AMENDMENTS.— may guarantee a loan for any rural develop- to grant applications providing for the estab- (1) Clause (iii) of section 307(a)(6)(B) of the lishment of centers for rural cooperative de- ment program that is made by a lender cer- Consolidated Farm and Rural Development tified by the Secretary. velopment that— Act (7 U.S.C. 1927(a)(6)(B)) (as redesignated ‘‘(2) CERTIFICATION REQUIREMENTS.—The ‘‘(A) demonstrate a proven track record in by section 741(b)(1)(B)) is amended by strik- Secretary may certify a lender if the lender administering a nationally coordinated, re- ing ‘‘subsections (d) and (e) of section 310B’’ meets such criteria as the Secretary may gionally or State-wide operated project; and inserting ‘‘section 310B(d)’’. prescribe in regulations, including the abil- ‘‘(B) demonstrate previous expertise in pro- (2) Section 232(c)(2) of the Department of ity of the lender to properly make, service, viding technical assistance in rural areas; Agriculture Reorganization Act of 1994 (7 and liquidate the guaranteed loans of the ‘‘(C) demonstrate the ability to assist in U.S.C. 6942(c)(2)) is amended— lender. the retention of existing businesses, facili- (A) by striking ‘‘310B(b)(2)’’ and inserting ‘‘(3) CONDITION OF CERTIFICATION.—As a tate the establishment of new cooperatives ‘‘310B(b)’’; and condition of certification, the Secretary may and new cooperative approaches, and gen- (B) by striking ‘‘1932(b)(2)’’ and inserting require the lender to undertake to service erate new employment opportunities that ‘‘1932(b)’’. will improve the economic conditions of (3) Section 233(b) of the Department of Ag- the guaranteed loan using standards that are rural areas; riculture Reorganization Act of 1994 (7 U.S.C. not less stringent than generally accepted ‘‘(D) demonstrate the ability to create hor- 6943(b)) is amended— banking standards concerning loan servicing izontal linkages among businesses within (A) by striking paragraph (2); and that are used by prudent commercial or co- and among various sectors in rural America (B) by redesignating paragraph (3) as para- operative lenders. and vertical linkages to domestic and inter- graph (2). ‘‘(4) GUARANTEE.—Notwithstanding any national markets; other provision of law, the Secretary may ‘‘(E) commit to providing technical assist- SEC. 748. ADMINISTRATION. guarantee not more than 80 percent of a loan ance and other services to underserved and Section 331(b)(4) of the Consolidated Farm made by a certified lender described in para- economically distressed areas in rural Amer- and Rural Development Act (7 U.S.C. graph (1), if the borrower of the loan meets ica; and 1981(b)(4)) is amended— the eligibility requirements and such other ‘‘(F) commit to providing greater than a 25 (1) by inserting after ‘‘claims’’ the follow- criteria for the loan guarantee that are es- percent matching contribution with private ing: ‘‘(including debts and claims arising tablished by the Secretary. funds and in-kind contributions. from loan guarantees)’’; ‘‘(5) CERTIFICATIONS.—With respect to loans ‘‘(6) TWO-YEAR GRANTS.—The Secretary (2) by striking ‘‘Farmers Home Adminis- to be guaranteed, the Secretary may permit shall evaluate programs receiving assistance tration or’’ and inserting ‘‘Consolidated a certified lender to make appropriate cer- under this subsection and, if the Secretary Farm Service Agency, Rural Utilities Serv- tifications (as provided in regulations issued determines it to be in the best interest of the ice, Rural Housing and Community Develop- by the Secretary) — Federal Government, the Secretary may ap- ment Service, Rural Business and Coopera- ‘‘(A) relating to issues such as credit- prove grants under this subsection for up to tive Development Service, or a successor worthiness, repayment ability, adequacy of 2 years. agency, or’’; and collateral, and feasibility of the operation; ‘‘(7) TECHNICAL ASSISTANCE TO PREVENT EX- (3) by inserting after ‘‘activities under the and CESSIVE UNEMPLOYMENT OR Housing Act of 1949.’’ the following: ‘‘In the ‘‘(B) that the borrower is in compliance UNDEREMPLOYMENT.—In carrying out this case of a security instrument entered into with all requirements of law, including regu- subsection, the Secretary may provide tech- under the Rural Electrification Act of 1936 (7 lations issued by the Secretary. nical assistance to alleviate or prevent con- U.S.C. 901 et seq.), the Secretary shall notify ‘‘(6) RELATIONSHIP TO OTHER REQUIRE- ditions of excessive unemployment, the Attorney General of the intent of the MENTS.—This subsection shall not affect the underemployment, outmigration, or low em- Secretary to exercise the authority of the responsibility of the Secretary to determine ployment growth in economically distressed Secretary under this paragraph.’’. eligibility, review financial information, and rural areas that the Secretary determines SEC. 749. AUTHORIZATION OF APPROPRIATIONS. otherwise assess an application. have a substantial need for the assistance. (a) IN GENERAL.—Section 338 of the Con- ‘‘(b) PREFERRED CERTIFIED LENDERS PRO- The assistance may include planning and solidated Farm and Rural Development Act GRAM.— feasibility studies, management and oper- (7 U.S.C. 1988) is amended— ‘‘(1) IN GENERAL.—The Secretary may es- ational assistance, and studies evaluating (1) by striking subsections (b), (c), (d), and tablish a preferred certified lenders program the need for development potential of (e); and for lenders who establish their— projects that increase employment and im- (2) by redesignating subsection (f) as sub- ‘‘(A) knowledge of, and experience under, prove economic growth in the areas. section (b). ‘‘(8) GRANTS TO DEFRAY ADMINISTRATIVE the program established under subsection (b) CONFORMING AMENDMENTS.— (a); COSTS.—The Secretary may make grants to (1) The first sentence of section 309(g)(1) of ‘‘(B) knowledge of the regulations concern- defray not to exceed 75 percent of the costs the Consolidated Farm and Rural Develop- ing the particular guaranteed loan program; incurred by organizations and public bodies ment Act (7 U.S.C. 1929(g)(1)) is amended by and to carry out projects for which grants or inserting after ‘‘section 338(c)’’ the following: ‘‘(C) proficiency related to the certified loans are made under this subsection. For ‘‘(before the amendment made by section lender program requirements. purposes of determining the non-Federal 447(a)(1) of the Agricultural Reform and Im- ‘‘(2) ADDITIONAL LENDING INSTITUTIONS.— share of the costs, the Secretary shall con- provement Act of 1996)’’. The Secretary may certify any lending insti- sider contributions in cash and in kind, fair- (2) Section 343(b) of the Consolidated Farm tution as a preferred certified lender if the ly evaluated, including premises, equipment, and Rural Development Act (7 U.S.C. 1991(b)) institution meets such additional criteria as and services. is amended by striking ‘‘338(f),’’ and insert- the Secretary may prescribe by regulation. ‘‘(9) AUTHORIZATION OF APPROPRIATIONS.— ing ‘‘338(b),’’. There are authorized to be appropriated to ‘‘(3) REVOCATION OF DESIGNATION.—The des- carry out this subsection $50,000,000 for each SEC. 750. TESTIMONY BEFORE CONGRESSIONAL ignation of a lender as a preferred certified COMMITTEES. of fiscal years 1996 through 2002.’’; and lender shall be revoked if the Secretary de- (6) by adding at the end the following: Section 345 of the Consolidated Farm and termines that the lender is not adhering to ‘‘(g) LOAN GUARANTEES FOR THE PURCHASE Rural Development Act (7 U.S.C. 1993) is re- the rules and regulations applicable to the OF COOPERATIVE STOCK.— pealed. program or if the loss experiences of a pre- ‘‘(1) DEFINITION OF FARMER.—In this sub- SEC. 751. PROHIBITION ON USE OF LOANS FOR ferred certified lender are greater than other section, the term ‘farmer’ means any farmer CERTAIN PURPOSES. preferred certified lenders, except that the that meets the family farmer definition, as Section 363 of the Consolidated Farm and suspension or revocation shall not affect any determined by the Secretary. Rural Development Act (7 U.S.C. 2006e) is outstanding guarantee. ‘‘(2) LOAN GUARANTEES.—The Secretary amended by adding at the end the following: ‘‘(4) CONDITION OF CERTIFICATION.—As a may guarantee loans under this section to ‘‘This section shall not apply to a loan made condition of the preferred certification, the individual farmers for the purpose of pur- or guaranteed under this title for a utility Secretary shall require the lender to under- chasing capital stock of a farmer cooperative line.’’. take to service the loan guaranteed by the S 1118 CONGRESSIONAL RECORD — SENATE February 7, 1996

Secretary under this subsection using gen- SEC. 754. STATE RURAL ECONOMIC DEVELOP- ‘‘(1) ESTABLISHMENT.—There is established erally accepted banking standards concern- MENT REVIEW PANEL. in the Treasury the Natural Sheep Improve- ing loan servicing employed by prudent com- Section 366 of the Consolidated Farm and ment Center Revolving Fund. The Fund shall mercial or cooperative lenders. The Sec- Rural Development Act (7 U.S.C. 2008a) is re- be available to the Center, without fiscal retary shall, at least annually, monitor the pealed. year limitation, to carry out the authorized performance of each preferred certified lend- SEC. 755. LIMITED TRANSFER AUTHORITY OF programs and activities of the Center under er to ensure that the conditions of the cer- LOAN AMOUNTS. this section. tification are being met. Section 367 of the Consolidated Farm and ‘‘(2) CONTENTS OF FUND.—There shall be de- ‘‘(5) EFFECT OF PREFERRED LENDER CERTIFI- Rural Development Act (7 U.S.C. 2008b) is re- posited in the Fund— CATION.—Notwithstanding any other provi- pealed. ‘‘(A) such amounts as may be appropriated, sion of law, the Secretary may— SEC. 756. ALLOCATION AND TRANSFER OF LOAN transferred, or otherwise made available to ‘‘(A) guarantee not more than 80 percent of GUARANTEE AUTHORITY. support programs and activities of the Cen- any approved loan made by a preferred cer- Section 368 of the Consolidated Farm and ter; tified lender as described in this subsection, Rural Development Act (7 U.S.C. 2008c) is re- ‘‘(B) payments received from any source if the borrower meets the eligibility require- pealed. for products, services, or property furnished in connection with the activities of the Cen- ments and such other criteria as may be ap- SEC. 757. NATIONAL SHEEP INDUSTRY IMPROVE- plicable to loans guaranteed by the Sec- MENT CENTER. ter; retary; and The Consolidated Farm and Rural Develop- ‘‘(C) fees and royalties collected by the ‘‘(B) permit preferred certified lenders to ment Act (as amended by section 641) is Center from licensing or other arrangements make all decisions, with respect to loans to amended by adding at the end the following: relating to commercialization of products be guaranteed by the Secretary under this developed through projects funded, in whole ‘‘SEC. 375. NATIONAL SHEEP INDUSTRY IMPROVE- or part, by grants, contracts, or cooperative subsection relating to creditworthiness, the MENT CENTER. agreements executed by the Center; closing, monitoring, collection, and liquida- ‘‘(a) DEFINITIONS.—In this section: ‘‘(D) proceeds from the sale of assets, tion of loans, and to accept appropriate cer- ‘‘(1) BOARD.—The term ‘Board’ means the loans, and equity interests made in further- tifications, as provided in regulations issued Board of Directors established under sub- by the Secretary, that the borrower is in ance of the purposes of the Center;; section (f). ‘‘(E) donations or contributions accepted compliance with all requirements of law and ‘‘(2) CENTER.—The term ‘Center’ means the regulations issued by the Secretary.’’. by the Center to support authorized pro- National Sheep Industry Improvement Cen- grams and activities; and SEC. 753. SYSTEM FOR DELIVERY OF CERTAIN ter established under subsection (b). ‘‘(F) any other funds acquired by the Cen- RURAL DEVELOPMENT PROGRAMS. ‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible ter. entity’ means an entity that promotes the (a) IN GENERAL.—Section 365 of the Con- ‘‘(3) USE OF FUND.— betterment of the United States lamb or solidated Farm and Rural Development Act ‘‘(A) IN GENERAL.—The Center may use wool industry and that is— (7 U.S.C. 2008) is repealed. amounts in the Fund to make grants and ‘‘(A) a public, private, or cooperative orga- loans to eligible entities in accordance with (b) CONFORMING AMENDMENTS.— nization; a strategic plan submitted under subsection (1) Section 2310 of the Food, Agriculture, ‘‘(B) an association, including a corpora- Conservation, and Trade Act of 1990 (7 U.S.C. (d). tion not operated for profit; ‘‘(B) CONTINUED EXISTENCE.—The Center 2007) is amended— ‘‘(C) a federally recognized Indian Tribe; or shall manage the Fund in a manner that en- (A) in subsection (a), by striking ‘‘or the ‘‘(D) a public or quasi-public agency. sures that sufficient amounts are available program established in sections 365 and 366 of ‘‘(4) FUND.—The term ‘Fund’ means the in the Fund to carry out subsection (c). the Consolidated Farm and Rural Develop- Natural Sheep Improvement Center Revolv- ‘‘(C) DIVERSE AREA.—The Center shall, to ment Act (as added by chapter 3 of this sub- ing Fund established under subsection (e). the maximum extent practicable, use the title)’’; ‘‘(b) ESTABLISHMENT OF CENTER.—The Sec- Fund to serve broad geographic areas and re- (B) in subsection (b)— retary shall establish a National Sheep In- gions of diverse production. (i) by striking ‘‘STATES.—’’ and all that fol- dustry Improvement Center. ‘‘(D) VARIETY OF LOANS AND GRANTS.—The lows through ‘‘PARTNERSHIPS.—The’’ in para- ‘‘(c) PURPOSES.—The purposes of the Center Center shall, to the maximum extent prac- graph (1) and inserting ‘‘STATES.—The’’; and shall be to— ticable, use the Fund to provide a variety of (ii) by striking paragraph (2); ‘‘(1) promote strategic development activi- intermediate- and long-term grants and (C) in subsection (c)— ties and collaborative efforts by private and loans. (i) by striking ‘‘PROJECTS.—’’ and all that State entities to maximize the impact of ‘‘(E) ADMINISTRATION.—The Center may not follows through ‘‘PARTNERSHIPS.—Chapter’’ Federal assistance to strengthen and en- use more than 3 percent of the amounts in in paragraph (1) and inserting ‘‘PROJECTS.— hance the production and marketing of lamb the Fund for a fiscal year for the administra- Chapter’’; and wool in the United States; tion of the Center. (ii) by striking ‘‘subsection (b)(1)’’ and in- ‘‘(2) optimize the use of available human ‘‘(F) INFLUENCING LEGISLATION.—None of serting ‘‘subsection (b)’’; and capital and resources within the sheep indus- the amounts in the Fund may be used to in- (iii) by striking paragraph (2); and try; fluence legislation. (D) in subsection (d), by striking ‘‘and sec- ‘‘(3) provide assistance to meet the needs of ‘‘(G) ACCOUNTING.—To be eligible to receive tions 365, 366, 367, and 368(b) of the Consoli- the sheep industry for infrastructure devel- amounts from the Fund, an entity must dated Farm and Rural Development Act (as opment, business development, production, agree to account for the amounts using gen- added by chapter 3 of this subtitle)’’. resource development, and market and envi- erally accepted accounting principles. (2) Section 2375 of the Food, Agriculture, ronmental research; ‘‘(H) USES OF FUND.—The Center may use Conservation, and Trade Act of 1990 (7 U.S.C. ‘‘(4) advance activities that empower and amounts in the Fund to— 6613) is amended— build the capacity of the United States sheep ‘‘(i) participate with Federal and State (A) in subsection (e), by striking ‘‘, as de- industry to design unique responses to the agencies in financing activities that are in fined in section 365(b)(2) of the Consolidated special needs of the lamb and wool industries accordance with a strategic plan submitted Farm and Rural Development Act,’’; and on both a regional and national basis; and under subsection (d), including participation (B) by adding at the end the following: ‘‘(5) adopt flexible and innovative ap- with several States in a regional effort; ‘‘(g) DEFINITION OF DESIGNATED RURAL DE- proaches to solving the long-term needs of ‘‘(ii) participate with other public and pri- VELOPMENT PROGRAM.—In this section, the the United States sheep industry. vate funding sources in financing activities term ‘designated rural development pro- ‘‘(d) STRATEGIC PLAN.— that are in accordance with the strategic gram’ means a program carried out under ‘‘(1) IN GENERAL.—The Center shall submit plan, including participation in a regional ef- section 304(b), 306(a), or 310B(e) of the Con- to the Secretary an annual strategic plan for fort; solidated Farm and Rural Development Act the delivery of financial assistance provided ‘‘(iii) provide security for, or make prin- (7 U.S.C. 1924(b), 1926(a), and 1932(e)), or by the Center. ciple or interest payments on, revenue or under section 1323 of the Food Security Act ‘‘(2) REQUIREMENTS.—A strategic plan shall general obligation bonds issued by a State, if of 1985 (Public Law 99–198; 7 U.S.C. 1932 note), identify— the proceeds from the sale of the bonds are for which funds are available at any time ‘‘(A) goals, methods, and a benchmark for deposited in the Fund; during the fiscal year under the section.’’. measuring the success of carrying out the ‘‘(iv) accrue interest; (3) Paragraph (2) of section 233(b) of the De- plan and how the plan relates to the national ‘‘(v) guarantee or purchase insurance for partment of Agriculture Reorganization Act and regional goals of the Center; local obligations to improve credit market of 1994 (7 U.S.C. 6943(b)) (as redesignated by ‘‘(B) the amount and sources of Federal access or reduce interest rates for a project section 747(b)(3)(B)) is amended by striking and non-Federal funds that are available for that is in accordance with the strategic plan; ‘‘sections 365 through 369 of the Consolidated carrying out the plan; or Farm and Rural Development Act (7 U.S.C. ‘‘(C) funding priorities; ‘‘(vi) sell assets, loans, and equity interests 2008-2008d)’’ and inserting ‘‘section 369 of the ‘‘(D) selection criteria for funding; and acquired in connection with the financing of Consolidated Farm and Rural Development ‘‘(E) a method of distributing funding. projects funded by the Center. Act (7 U.S.C. 2008d)’’. ‘‘(e) REVOLVING FUND.— ‘‘(4) LOANS.— February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1119

‘‘(A) RATE.—A loan from the Fund may be ‘‘(B) STAGGERED INITIAL TERMS.—The ini- ‘‘(ii) REASONS.—In the case of any violation made at an interest rate that is below the tial voting members of the Board (other than and remand of a funding decision to the market rate or may be interest free. the chairperson of the initially established Board under clause (i), the Secretary shall ‘‘(B) TERM.—The term of a loan may not Board) shall serve for staggered terms of 1, 2, inform the Board of the reasons for the re- exceed the shorter of— and 3 years, as determined by the Secretary. mand. ‘‘(i) the useful life of the activity financed; ‘‘(C) REELECTION.—A voting member may ‘‘(11) COMPENSATION.— or be reelected for not more than 1 additional ‘‘(A) IN GENERAL.—A member of the Board ‘‘(ii) 40 years. term. shall not receive any compensation by rea- ‘‘(C) SOURCE OF REPAYMENT.—The Center ‘‘(6) VACANCY.— son of service on the Board. may not make a loan from the Fund unless ‘‘(A) IN GENERAL.—A vacancy on the Board ‘‘(B) EXPENSES.—A member of the Board the recipient establishes an assured source of shall be filled in the same manner as the shall be reimbursed for travel, subsistence, repayment. original Board. and other necessary expenses incurred by the ‘‘(D) PROCEEDS.—All payments of principal ‘‘(B) REELECTION.—A member elected to fill member in the performance of a duty of the and interest on a loan made from the Fund a vacancy for an unexpired term may be re- member. shall be deposited into the Fund. elected for 1 full term. ‘‘(12) BYLAWS.—The Board shall adopt, and ‘‘(5) MAINTENANCE OF EFFORT.—The Center may from time to time amend, any bylaw ‘‘(7) CHAIRPERSON.— shall use the Fund only to supplement and that is necessary for the proper management ‘‘(A) IN GENERAL.—The Board shall select a not to supplant Federal, State, and private chairperson from among the voting members and functioning of the Center. funds expended for rural development. ‘‘(13) PUBLIC HEARINGS.—Not later than 1 of the Board. ‘‘(6) FUNDING.— year after the effective date of this section, ‘‘(B) TERM.—The term of office of the ‘‘(A) DEPOSIT OF FUNDS.—All Federal and the Board shall hold public hearings on pol- chairperson shall be 2 years. non-Federal amounts received by the Center icy objectives of the program established ‘‘(8) ANNUAL MEETING.— to carry out this section shall be deposited under this section. ‘‘(A) IN GENERAL.—The Board shall meet in the Fund. ‘‘(14) ORGANIZATIONAL SYSTEM.—The Board not less than once each fiscal year at the call ‘‘(B) MANDATORY FUNDS.—Out of any mon- shall provide a system of organization to fix eys in the Treasury not otherwise appro- of the chairperson or at the request of the responsibility and promote efficiency in car- priated, the Secretary of the Treasury shall executive director appointed under sub- rying out the functions of the Board. section (g)(1). provide to the Center not to exceed ‘‘(15) USE OF DEPARTMENT OF AGRI- ‘‘(B) LOCATION.—The location of a meeting $20,000,000 to carry out this section. CULTURE.—The Board may, with the consent of the Board shall be established by the ‘‘(C) ADDITIONAL FUNDS.—In addition to of the Secretary, utilize the facilities of and any funds provided under subparagraph (B), Board. the services of employees of the Department there is authorized to be appropriated to ‘‘(9) VOTING.— of Agriculture, without cost to the Center. carry out this section $30,000,000 to carry out ‘‘(A) QUORUM.—A quorum of the Board ‘‘(g) OFFICERS AND EMPLOYEES.— this section. shall consist of a majority of the voting ‘‘(1) EXECUTIVE DIRECTOR.— ‘‘(D) PRIVATIZATION.—Federal funds shall members. ‘‘(A) IN GENERAL.—The Board shall appoint not be used to carry out this section begin- ‘‘(B) MAJORITY VOTE.—A decision of the an executive director to be the chief execu- ning on the earlier of— Board shall be made by a majority of the tive officer of the Center. ‘‘(i) the date that is 10 years after the ef- voting members of the Board. ‘‘(B) TENURE.—The executive director shall fective date of this section; or ‘‘(10) CONFLICTS OF INTEREST.— serve at the pleasure of the Board. ‘‘(ii) the day after a total of $50,000,000 is ‘‘(A) IN GENERAL.—A member of the Board ‘‘(C) COMPENSATION.—Compensation for the made available under subparagraphs (B) and shall not vote on any matter respecting any executive director shall be established by the (C) to carry out this section. application, contract, claim, or other par- Board. ‘‘(f) BOARD OF DIRECTORS.— ticular matter pending before the Board in ‘‘(2) OTHER OFFICERS AND EMPLOYEES.—The ‘‘(1) IN GENERAL.—The management of the which, to the knowledge of the member, an Board may select and appoint officers, attor- Center shall be vested in a Board of Direc- interest is held by— neys, employees, and agents who shall be tors. ‘‘(i) the member; vested with such powers and duties as the ‘‘(2) POWERS.—The Board shall— ‘‘(ii) any spouse of the member; Board may determine. ‘‘(A) be responsible for the general super- ‘‘(iii) any child of the member; ‘‘(3) DELEGATION.—The Board may, by reso- vision of the Center; ‘‘(iv) any partner of the member; lution, delegate to the chairperson, the exec- ‘‘(B) review any grant, loan, contract, or ‘‘(v) any organization in which the member utive director, or any other officer or em- cooperative agreement to be made or entered is serving as an officer, director, trustee, ployee any function, power, or duty of the into by the Center and any financial assist- partner, or employee; or Board other than voting on a grant, loan, ance provided to the Center; ‘‘(vi) any person with whom the member is contract, agreement, budget, or annual stra- ‘‘(C) make the final decision, by majority negotiating or has any arrangement concern- tegic plan. vote, on whether and how to provide assist- ing prospective employment or with whom ‘‘(h) CONSULTATION.—To carry out this sec- ance to an applicant; and the member has a financial interest. tion, the Board may consult with— ‘‘(D) develop and establish a budget plan ‘‘(B) REMOVAL.—Any action by a member ‘‘(1) State departments of agriculture; and a long-term operating plan to carry out of the Board that violates subparagraph (A) ‘‘(2) Federal departments and agencies; the goals of the Center. shall be cause for removal from the Board. ‘‘(3) nonprofit development corporations; ‘‘(3) COMPOSITION.—The Board shall be ‘‘(C) VALIDITY OF ACTION.—An action by a ‘‘(4) colleges and universities; composed of— member of the Board that violates subpara- ‘‘(5) banking and other credit-related agen- ‘‘(A) 7 voting members, of whom— graph (A) shall not impair or otherwise af- cies; ‘‘(i) 4 members shall be active producers of fect the validity of any otherwise lawful ac- ‘‘(6) agriculture and agribusiness organiza- sheep in the United States; tion by the Board. tions; and ‘‘(ii) 2 members shall have expertise in fi- ‘‘(D) DISCLOSURE.— ‘‘(7) regional planning and development or- nance and management; and ‘‘(i) IN GENERAL.—If a member of the Board ganizations. ‘‘(iii) 1 member shall have expertise in makes a full disclosure of an interest and, ‘‘(i) OVERSIGHT.— lamb and wool marketing; and prior to any participation by the member, ‘‘(1) IN GENERAL.—The Secretary shall re- ‘‘(B) 2 nonvoting members, of whom— the Board determines, by majority vote, that view and monitor compliance by the Board ‘‘(i) 1 member shall be the Under Secretary the interest is too remote or too incon- and the Center with this section. of Agriculture for Rural Economic and Com- sequential to affect the integrity of any par- ‘‘(2) SANCTIONS.—If, following notice and munity Development; and ticipation by the member, the member may opportunity for a hearing, the Secretary ‘‘(ii) 1 member shall be the Under Sec- participate in the matter relating to the in- finds that the Board or the Center is not in retary of Agriculture for Research, Edu- terest. compliance with this section, the Secretary cation, and Economics. ‘‘(ii) VOTE.—A member that discloses an may— ‘‘(4) ELECTION.—A voting member of the interest under clause (i) shall not vote on a ‘‘(A) cease making deposits to the Fund; Board shall be chosen in an election of the determination of whether the member may ‘‘(B) suspend the authority of the Center to members of a national organization selected participate in the matter relating to the in- withdraw funds from the Fund; or by the Secretary that— terest. ‘‘(C) impose other appropriate sanctions, ‘‘(A) consists only of sheep producers in ‘‘(E) REMANDS.— including recoupment of money improperly the United States; and ‘‘(i) IN GENERAL.—The Secretary may va- expended for purposes prohibited or not au- ‘‘(B) has as the primary interest of the or- cate and remand to the Board for reconsider- thorized by this Act and disqualification ganization the production of lamb and wool ation any decision made pursuant to sub- from receipt of financial assistance under in the United States. section (e)(3)(H) if the Secretary determines this section. ‘‘(5) TERM OF OFFICE.— that there has been a violation of this para- ‘‘(3) REMOVING SANCTIONS.—The Secretary ‘‘(A) IN GENERAL.—Subject to subparagraph graph or any conflict of interest provision of shall remove sanctions imposed under para- (B), the term of office of a voting member of the bylaws of the Board with respect to the graph (2) on a finding that there is no longer the Board shall be 3 years. decision. any failure by the Board or the Center to S 1120 CONGRESSIONAL RECORD — SENATE February 7, 1996 comply with this section or that the non- ‘‘(1) coordinates economic, human, and ‘‘(3) rural cooperative development grants compliance shall be promptly corrected.’’. community development plans and related provided under section 310B(e). CHAPTER 2—RURAL COMMUNITY activities proposed for an affected area; ‘‘(e) TRANSFER.— ADVANCEMENT PROGRAM ‘‘(2) provides that the State and an affected ‘‘(1) IN GENERAL.—Subject to paragraph (2), community (including local institutions and the Secretary may transfer within each SEC. 761. RURAL COMMUNITY ADVANCEMENT State up to 25 percent of the total amount PROGRAM. organizations that have contributed to the allocated for a State under each function The Consolidated Farm and Rural Develop- planning process) shall act as full partners in category referred to in subsection (c) for ment Act (7 U.S.C. 1921 et seq.) is amended the process of developing and implementing each fiscal year under this section to any by adding at the end the following: the plan; ‘‘(3) identifies goals, methods, and bench- other function category, or to a program re- ‘‘Subtitle E—Rural Community Advancement marks for measuring the success of carrying ferred to in subsection (d), but excluding Program out the plan and how the plan relates to State grants under section 381G. ‘‘SEC. 381A. DEFINITIONS. local or regional ecosystems; ‘‘(2) LIMITATION.—Not more than 10 percent ‘‘In this subtitle: ‘‘(4) provides for the involvement, in the of the total amount (excluding grants to ‘‘(1) RURAL AND RURAL AREA.—The terms preparation of the plan, of State, local, pri- States under section 381G) made available ‘rural’ and ‘rural area’ mean, subject to sec- vate, and public persons, State rural develop- for any fiscal year for the programs covered tion 306(a)(7), a city, town, or unincorporated ment councils, federally-recognized Indian by each of the 3 function categories referred area that has a population of 50,000 inhab- tribes, and community-based organizations; to in subsection (c), and the programs re- itants or less, other than an urbanized area ‘‘(5) identifies the amount and source of ferred to in subsection (d), shall be available immediately adjacent to a city, town, or un- Federal and non-Federal resources that are for the transfer. incorporated area that has a population in available for carrying out the plan; and ‘‘(f) AVAILABILITY OF FUNDS.—The Sec- excess of 50,000 inhabitants. ‘‘(6) includes such other information as retary may make available funds appro- ‘‘(2) STATE.—The term ‘State’ means each may be required by the Secretary. priated for the programs referred to in sub- of the 50 States, the District of Columbia, ‘‘SEC. 381E. ACCOUNTS. section (c) to defray the cost of any subsidy the Commonwealth of Puerto Rico, Guam, ‘‘(a) IN GENERAL.—Notwithstanding any associated with a guarantee provided under the Virgin Islands of the United States, other provision of law, for each fiscal year, section 381H, except that not more than 5 American Samoa, the Commonwealth of the the Secretary shall consolidate into 3 ac- percent of the funds provided under sub- Northern Mariana Islands, the Trust Terri- counts, corresponding to the 3 function cat- section (c) may be made available within a tory of the Pacific Islands, and the Fed- egories established under subsection (c), the State. erated States of Micronesia. amounts made available for programs in- ‘‘SEC. 381F. ALLOCATION. ‘‘SEC. 381B. ESTABLISHMENT. cluded in each function category. ‘‘(a) NATIONAL RESERVE.—The Secretary ‘‘The Secretary shall establish a rural ‘‘(b) ALLOCATION WITHIN ACCOUNT.—The may use not more than 10 percent of the community advancement program to provide Secretary shall allocate the amounts in each total amount of funds made available for a grants, loans, loan guarantees, and other as- account for such program purposes author- fiscal year under section 381E to establish a sistance to meet the rural development ized for the corresponding function category national reserve for rural development that needs of local communities in States and among the States, as the Secretary may de- may be used by the Secretary in rural areas federally recognized Indian tribes. termine in accordance with this subtitle. during the fiscal year to— ‘‘(c) FUNCTION CATEGORIES.—For purposes ‘‘(1) meet situations of exceptional need; ‘‘SEC. 381C. NATIONAL OBJECTIVES. of subsection (a): ‘‘(2) provide incentives to promote or re- ‘‘The national objectives of the program ‘‘(1) RURAL HOUSING AND COMMUNITY DEVEL- ward superior performance; or established under this subtitle shall be to— OPMENT.—The rural housing and community ‘‘(3) carry out performance-oriented dem- ‘‘(1) promote strategic development activi- development category shall include funds onstration projects. ties and collaborative efforts by State and made available for— ‘‘(b) INDIAN TRIBES.— local communities, and federally recognized ‘‘(A) community facility direct and guar- ‘‘(1) RESERVATION.—The Secretary shall re- Indian tribes, to maximize the impact of anteed loans provided under section 306(a)(1); serve not less than 3 percent of the total Federal assistance; ‘‘(B) community facility grants provided amounts made available for a fiscal year ‘‘(2) optimize the use of resources; under section 306(a)(21); and under section 381E to carry out rural devel- ‘‘(3) provide assistance in a manner that ‘‘(C) rental housing loans for new housing opment programs specified in subsections (c) reflects the complexity of rural needs, in- provided under section 515 of the Housing and (d) of section 381D for federally recog- cluding the needs for business development, Act of 1949 (42 U.S.C. 1485). nized Indian tribes. health care, education, infrastructure, cul- ‘‘(2) RURAL UTILITIES.—The rural utilities ‘‘(2) ALLOCATION.—The Secretary shall es- tural resources, the environment, and hous- category shall include funds made available tablish a formula for allocating the reserve ing; for— and shall administer the reserve through the ‘‘(4) advance activities that empower, and ‘‘(A) water and waste disposal grants and appropriate Director of the Rural Economic build the capacity of, State and local com- direct and guaranteed loans provided under and Cooperative Development State office. munities to design unique responses to the paragraphs (1) and (2) of section 306(a); ‘‘(c) STATE ALLOCATION.— special needs of the State and local commu- ‘‘(B) rural water and wastewater technical ‘‘(1) IN GENERAL.—The Secretary shall allo- nities, and federally recognized Indian assistance and training grants provided cate among all the States the amounts made tribes, for rural development assistance; and under section 306(a)(16); available under section 381E in a fair, reason- ‘‘(5) adopt flexible and innovative ap- ‘‘(C) emergency community water assist- able, and appropriate manner that takes into proaches to solving rural development prob- ance grants provided under section 306A; and consideration rural population, levels of in- lems. ‘‘(D) solid waste management grants pro- come, unemployment, and other relevant ‘‘SEC. 381D. STRATEGIC PLANS. vided under section 310B(b). factors, as determined by the Secretary. ‘‘(a) IN GENERAL.—The Secretary shall di- ‘‘(3) RURAL BUSINESS AND COOPERATIVE DE- ‘‘(2) MINIMUM ALLOCATION.—In making the rect each of the Directors of Rural Economic VELOPMENT.—The rural business and cooper- allocations for each of fiscal years 1996 and Community Development State Offices ative development category shall include through 2002, the Secretary shall ensure that to prepare a strategic plan for each State for funds made available for— the percentage allocation for each State is the delivery of assistance under this subtitle ‘‘(A) rural business opportunity grants pro- equal to the percentage of the average of the within the State. vided under section 306(a)(11)(A); total funds made available to carry out the ‘‘(b) ASSISTANCE.— ‘‘(B) business and industry guaranteed programs referred to in section 381E(c) that ‘‘(1) IN GENERAL.—Financial assistance for loans provided under section 310B(a)(1); were obligated in the State for each of fiscal rural development allocated for a State ‘‘(C) rural business enterprise grants and years 1993 and 1994. under this subtitle shall be used only for or- rural educational network grants provided ‘‘SEC. 381G. GRANTS TO STATES. derly community development that is con- under section 310B(c); and ‘‘(a) IN GENERAL.—Subject to subsection sistent with the strategic plan of the State. ‘‘(D) grants to broadcasting systems pro- (c), the Secretary shall grant to any eligible ‘‘(2) RURAL AREA.—Assistance under this vided under section 310B(f). State from which a request is received for a subtitle may only be provided in a rural ‘‘(d) OTHER PROGRAMS.—Subject to sub- fiscal year 5 percent of the amount allocated area. section (e), in addition to any other appro- for the State for the fiscal year under sec- ‘‘(3) SMALL COMMUNITIES.—In carrying out priated amounts, the Secretary may transfer tion 381F(c). this subtitle within a State, the Secretary amounts allocated for a State for any of the ‘‘(b) ELIGIBILITY.—To be eligible to receive shall give priority to communities with the 3 function categories for a fiscal year under a grant under this section, the Secretary smallest populations and lowest per capita subsection (c) to— shall require that the State maintain the income. ‘‘(1) mutual and self-help housing grants grant funds received and any non-Federal ‘‘(c) REVIEW.—The Secretary shall review provided under section 523 of the Housing matching funds to carry out this subtitle in the strategic plan of a State at least once Act of 1949 (42 U.S.C. 1490c); a separate account, to remain available until every 5 years. ‘‘(2) rural rental housing loans for existing expended. ‘‘(d) CONTENTS.—A strategic plan of a State housing provided under section 515 of the ‘‘(c) MATCHING FUNDS.—For any fiscal year, under this section shall be a plan that— Housing Act of 1949 (42 U.S.C. 1485); and if non-Federal matching funds are provided February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1121 for a State in an amount that is equal to 200 conditions as the Secretary may prescribe, among States, and regional fund-sharing percent or more of an amount equal to 5 per- to guarantee and make commitments to agreements, to carry out this subtitle. cent of the amount allocated for the State guarantee the notes or other obligations is- ‘‘SEC. 381K. RURAL VENTURE CAPITAL DEM- for the fiscal year under section 381F(c), the sued by eligible public entities, or by public ONSTRATION PROGRAM. Secretary shall pay to the State the grant agencies designated by the eligible public en- ‘‘(a) IN GENERAL.—The Secretary shall des- provided under this subsection in an amount tities, for the purposes of financing rural de- ignate up to 10 community development ven- equal to 5 percent of the amount allocated velopment assistance activities authorized ture capital organizations to demonstrate for the State for the fiscal year under sec- and funded under section 381G. the utility of guarantees to attract increased tion 381F(c). ‘‘(c) PREREQUISITES.—No guarantee or com- private investment in rural private business ‘‘(d) USE OF FUNDS.—The Secretary shall mitment to guarantee shall be made with re- enterprises. require that funds provided to a State under spect to any note or other obligation if the ‘‘(b) RURAL BUSINESS INVESTMENT POOL.— this section be used in rural areas to achieve issuer’s total outstanding notes or obliga- ‘‘(1) ESTABLISHMENT.—To be eligible to par- the purposes of the programs referred to in tions guaranteed under this section (exclud- ticipate in the demonstration program, an section 381E(c) in accordance with the stra- ing any amount repaid under the contract organization referred to in subsection (a) tegic plan referred to in section 381D. entered into under subsection (e)(1)(A)) shall establish a rural business private in- ‘‘(e) MAINTENANCE OF EFFORT.—The State would exceed an amount equal to 5 times the vestment pool (referred to in this subsection shall provide assurances that funds received amount of the grant approval for the issuer as a ‘pool’) for the purpose of making equity under this section will be used only to sup- pursuant to section 381G. plement, not to supplant, the amount of Fed- ‘‘(d) PAYMENT OF PRINCIPAL, INTEREST, AND investments in rural private business enter- eral, State, and local funds otherwise ex- COSTS.—Notwithstanding any other provi- prises. pended for rural development assistance in sion of this subtitle, grants allocated to an ‘‘(2) GUARANTEE.—From funds allocated for the State. issuer pursuant to this subtitle (including the national reserve under section 381F(a), ‘‘(f) APPEALS.—The Secretary shall provide program income derived from the grants) the Secretary shall guarantee the funds in a to a State an opportunity for an appeal of shall be authorized for use in the payment of pool against loss, except that the guarantee any action taken under this section. principal and interest due (including such shall not exceed an amount equal to 30 per- ‘‘(g) ADMINISTRATIVE COSTS.—Federal funds servicing, underwriting, or other costs as cent of the total funds in the pool. shall not be used for any administrative may be specified in regulations of the Sec- ‘‘(3) AMOUNT.—The Secretary shall issue costs incurred by a State in carrying out retary) on the notes or other obligations guarantees covering not more than this subtitle. guaranteed pursuant to this section. $15,000,000 of obligations for each of fiscal ‘‘(h) SPENDING OF FUNDS BY STATE.— ‘‘(e) REPAYMENT CONTRACT; SECURITY.— years 1996 through 2002. ‘‘(1) IN GENERAL.—Payments to a State ‘‘(1) IN GENERAL.—To ensure the repayment ‘‘(4) TERM.—The term of a guarantee pro- from a grant under this section for a fiscal of notes or other obligations and charges in- vided under this subsection shall not exceed year shall be obligated by the State in the curred under this section and as a condition 10 years. fiscal year or in the succeeding fiscal year. A for receiving the guarantees, the Secretary ‘‘(5) SUBMISSION OF PLAN.—To be eligible to State shall obligate funds under this section shall require the issuer to— participate in the demonstration program, to provide assistance to rural areas pursu- ‘‘(A) enter into a contract, in a form ac- an organization referred to in subsection (a) ant, to the maximum extent practicable, to ceptable to the Secretary, for repayment of shall submit a plan that describes— applications received from the rural areas. notes or other obligations guaranteed under ‘‘(A) potential sources and uses of the pool ‘‘(2) FAILURE TO OBLIGATE.—If a State fails this section; to be established by the organization; to obligate payments in accordance with ‘‘(B) pledge any grant for which the issuer ‘‘(B) the utility of the guarantee authority paragraph (1), the Secretary shall make a may become eligible under this subtitle; and in attracting capital for the pool; and corresponding reduction in the amount of ‘‘(C) furnish, at the discretion of the Sec- ‘‘(C) on selection, mechanisms for notify- payments provided to the State under this retary, such other security as may be consid- ing State, local, and private nonprofit busi- section for the subsequent fiscal year. ered appropriate by the Secretary in making ness development organizations and busi- ‘‘(3) NONCOMPLIANCE.— the guarantees. nesses of the existence of the pool. ‘‘(A) REVIEW.—The Secretary shall review ‘‘(2) SECURITY.—To assist in ensuring the ‘‘(6) COMPETITION.— and monitor State compliance with this sec- repayment of notes or other obligations and ‘‘(A) IN GENERAL.—The Secretary shall con- tion. charges incurred under this section, a State duct a competition for the designation and ‘‘(B) PENALTY.—If the Secretary finds that shall pledge any grant for which the State establishment of pools. there has been misuse of grant funds pro- may become eligible under this subtitle as ‘‘(B) PRIORITY.—In conducting the competi- vided under this section, or noncompliance security for notes or other obligations and tion, the Secretary shall give priority to or- with any of the terms and conditions of a charges issued under this section by any unit ganizations that— grant, after reasonable notice and oppor- of general local government in the State. ‘‘(i) have a demonstrated record of per- tunity for a hearing— ‘‘(f) PLEDGED GRANTS FOR REPAYMENTS.— formance or have a board and executive di- ‘‘(i) the Secretary shall notify the State of Notwithstanding any other provision of this rector with experience in venture capital, the finding; and subtitle, the Secretary is authorized to apply small business equity investments, or com- ‘‘(ii) no further payments to the State grants pledged pursuant to paragraphs (1)(B) munity development finance; shall be made with respect to the programs and (2) of subsection (e) to any repayments ‘‘(ii) propose to serve low-income commu- funded under this section until the Secretary due the United States as a result of the guar- nities; is satisfied that there is no longer any fail- antees. ‘‘(iii) propose to maintain an average in- ure to comply or that the noncompliance ‘‘(g) OUTSTANDING OBLIGATIONS.—The total vestment of not more than $500,000 from the will be promptly corrected. amount of outstanding obligations guaran- pool of the organization; ‘‘(C) OTHER SANCTIONS.—In the case of a teed on a cumulative basis by the Secretary ‘‘(iv) invest funds statewide or in a finding of noncompliance made pursuant to pursuant to subsection (b) shall not at any multicounty region; and time exceed such amount as may be author- subparagraph (B), the Secretary may, in ad- ‘‘(v) propose to target job opportunities re- ized to be appropriated for any fiscal year. dition to, or in lieu of, imposing the sanc- sulting from the investments primarily to ‘‘(h) PURCHASE OF GUARANTEED OBLIGA- tions described in subparagraph (B), impose economically disadvantaged individuals. other appropriate sanctions, including TIONS BY FEDERAL FINANCING BANK.—Notes ‘‘(C) GEOGRAPHIC DIVERSITY.—To the extent recoupment of money improperly expended or other obligations guaranteed under this section may not be purchased by the Federal practicable, the Secretary shall select orga- for purposes prohibited or not authorized by nizations in diverse geographic areas. this section and disqualification from the re- Financing Bank. ceipt of financial assistance under this sec- ‘‘(i) FULL FAITH AND CREDIT.—The full ‘‘SEC. 381L. ANNUAL REPORT. tion. faith and credit of the United States is ‘‘(a) IN GENERAL.—The Secretary, in col- ‘‘(i) NO ENTITLEMENT TO CONTRACT, GRANT, pledged to the payment of all guarantees laboration with public, State, local, and pri- OR ASSISTANCE.—Nothing in this subtitle— made under this section. Any such guarantee vate entities, State rural development coun- ‘‘(1) entitles any person to assistance or a made by the Secretary shall be conclusive cils, and community-based organizations, contract or grant; or evidence of the eligibility of the obligations shall prepare an annual report that contains ‘‘(2) limits the right of a State to impose for the guarantee with respect to principal evaluations, assessments, and performance additional limitations or conditions on as- and interest. The validity of the guarantee outcomes concerning the rural community sistance or a contract or grant under this shall be incontestable in the hands of a hold- advancement programs carried out under section. er of the guaranteed obligations. this subtitle. ‘‘SEC. 381H. GUARANTEE AND COMMITMENT TO ‘‘SEC. 381I. LOCAL INVOLVEMENT. ‘‘(b) SUBMISSION.—Not later than March 1 GUARANTEE LOANS. ‘‘The Secretary shall require that an appli- of each year, the Secretary shall— ‘‘(a) DEFINITION OF ELIGIBLE PUBLIC EN- cant for assistance under this subtitle dem- ‘‘(1) submit the report required under sub- TITY.—In this section, the term ‘eligible pub- onstrate evidence of significant community section (a) to Congress and the chief execu- lic entity’ means any unit of general local support. tives of States participating in the program government. ‘‘SEC. 381J. STATE-TO-STATE COLLABORATION. established under this subtitle; and ‘‘(b) GUARANTEE AND COMMITMENT.—The ‘‘The Secretary shall permit the establish- ‘‘(2) make the report available to State and Secretary is authorized, on such terms and ment of voluntary pooling arrangements local participants. S 1122 CONGRESSIONAL RECORD — SENATE February 7, 1996 ‘‘SEC. 381M. RURAL DEVELOPMENT INTER- (B) by striking ‘‘systems; to make’’ and all ‘‘SEC. 17. PROHIBITION ON RESTRICTING WATER AGENCY WORKING GROUP. that follows through the period at the end of AND WASTE FACILITY SERVICES TO ‘‘(a) IN GENERAL.—The Secretary shall pro- the subsection and inserting ‘‘systems’’; and ELECTRIC CUSTOMERS. vide leadership within the Executive branch (3) by striking subsection (b) and inserting ‘‘The Secretary shall establish rules and for, and assume responsibility for, establish- the following: procedures that prohibit borrowers under ing an interagency working group chaired by ‘‘(b) INVESTIGATIONS AND REPORTS.—The title III or under the Consolidated Farm and the Secretary. Secretary may make, or cause to be made, Rural Development Act (7 U.S.C. 1921 et seq.) ‘‘(b) DUTIES.—The working group shall es- studies, investigations, and reports regard- from conditioning or limiting access to, or tablish policy, provide coordination, make ing matters, including financial, techno- the use of, water and waste facility services recommendations, and evaluate the perform- logical, and regulatory matters, affecting financed under the Consolidated Farm and ance of or for all Federal rural development the condition and progress of electric, tele- Rural Development Act if the conditioning efforts. communications, and economic development or limiting is based on whether individuals or entities in the area served or proposed to ‘‘SEC. 381N. DUTIES OF RURAL ECONOMIC AND in rural areas and publish and disseminate COMMUNITY DEVELOPMENT STATE information with respect to the matters.’’. be served by the facility receive, or will ac- OFFICES. cept, electric service from the borrower.’’. SEC. 772. AUTHORIZATION OF APPROPRIATIONS. ‘‘In carrying out this subtitle, the Director SEC. 779. TELEPHONE LOAN TERMS AND CONDI- (a) IN GENERAL.—Section 3 of the Rural of a Rural Economic and Community Devel- TIONS. Electrification Act of 1936 (7 U.S.C. 903) is Section 309 of the Rural Electrification Act opment State Office shall— amended to read as follows: ‘‘(1) to the maximum extent practicable, of 1936 (7 U.S.C. 939) is amended— ensure that the State strategic plan is imple- ‘‘SEC. 3. AUTHORIZATION OF APPROPRIATIONS. (1) in subsection (a), by striking ‘‘(a) IN mented; ‘‘There are authorized to be appropriated GENERAL.—’’; and ‘‘(2) coordinate community development such sums as are necessary to carry out this (2) by striking subsection (b). objectives within the State; Act.’’. SEC. 780. PRIVATIZATION PROGRAM. ‘‘(3) establish links between local, State, (b) CONFORMING AMENDMENTS.— Section 311 of the Rural Electrification Act and field office program administrators of (1) Section 301(a) of the Rural Electrifica- of 1936 (7 U.S.C. 940a) is repealed. the Department of Agriculture; tion Act of 1936 (7 U.S.C. 931(a)) is amended— SEC. 781. RURAL BUSINESS INCUBATOR FUND. ‘‘(4) ensure that recipient communities (A) by striking ‘‘(a)’’; and (a) IN GENERAL.—Section 502 of the Rural comply with applicable Federal and State (B) in paragraph (3), by striking ‘‘notwith- Electrification Act of 1936 (7 U.S.C. 950aa–1) laws and requirements; and standing section 3(a) of title I,’’. is repealed. ‘‘(5) integrate State development programs (2) Section 302(b)(2) of the Rural Elec- (b) CONFORMING AMENDMENTS.—Section 501 with assistance under this subtitle. trification Act of 1936 (7 U.S.C. 932(b)(2)) is of the Rural Electrification Act of 1936 (7 ‘‘SEC. 381O. ELECTRONIC TRANSFER. amended by striking ‘‘pursuant to section U.S.C. 950aa) is amended— 3(a) of this Act’’. ‘‘The Secretary shall transfer funds in ac- (1) in paragraph (5), by inserting ‘‘and’’ at (3) The last sentence of section 406(a) of the cordance with this subtitle through elec- the end; Rural Electrification Act of 1936 (7 U.S.C. tronic transfer as soon as practicable after (2) in paragraph (6), by striking ‘‘; and’’ at 946(a)) is amended by striking ‘‘pursuant to the effective date of this subtitle.’’. the end and inserting a period; and section 3(a) of this Act’’. (3) by striking paragraph (7). SEC. 762. COMMUNITY FACILITIES GRANT PRO- GRAM. SEC. 773. LOANS FOR ELECTRICAL PLANTS AND Subtitle D—Miscellaneous Rural TRANSMISSION LINES. Section 306(a) of the Consolidated Farm Development Provisions and Rural Development Act (7 U.S.C. 1926(a)) Section 4 of the Rural Electrification Act SEC. 791. INTEREST RATE FORMULA. of 1936 (7 U.S.C. 904) is amended— is amended by adding at the end the follow- (a) BANKHEAD-JONES FARM TENANT ACT.— ing: (1) in the first sentence— Section 32(e) of the Bankhead-Jones Farm (A) by striking ‘‘for the furnishing of’’ and ‘‘(21) COMMUNITY FACILITIES GRANT PRO- Tenant Act (7 U.S.C. 1011) is amended by all that follows through ‘‘central station GRAM.— striking the fifth sentence and inserting the service and’’; and ‘‘(A) IN GENERAL.—The Secretary may following: ‘‘A loan under this subsection make grants, in a total amount not to ex- (B) by striking ‘‘the provisions of sections shall be made under a contract that pro- ceed $10,000,000 for any fiscal year, to asso- 3(d) and 3(e) but without regard to the 25 per vides, under such terms and conditions as ciations, units of general local government, centum limitation therein contained,’’ and the Secretary considers appropriate, for the nonprofit corporations, and federally recog- inserting ‘‘section 3,’’; repayment of the loan in not more than 30 nized Indian tribes to provide the Federal (2) in the second sentence, by striking ‘‘: years, with interest at a rate not to exceed share of the cost of developing specific essen- Provided further, That all’’ and all that fol- the current market yield for outstanding tial community facilities in rural areas. lows through ‘‘loan: And provided further, municipal obligations with remaining peri- That’’ and inserting ‘‘, except that’’; and ‘‘(B) FEDERAL SHARE.— ods to maturity comparable to the average (3) in the third sentence, by striking ‘‘and ‘‘(i) IN GENERAL.—Except as provided in maturity for the loan, adjusted to the near- section 5’’. clauses (ii) and (iii), the Secretary shall, by est 1⁄8 of 1 percent.’’. regulation, establish the amount of the Fed- SEC. 774. LOANS FOR ELECTRICAL AND PLUMB- (b) WATERSHED PROTECTION AND FLOOD eral share of the cost of the facility under ING EQUIPMENT. PREVENTION ACT.—Section 8 of the Water- this paragraph. (a) IN GENERAL.—Section 5 of the Rural shed Protection and Flood Prevention Act ‘‘(ii) MAXIMUM AMOUNT.—The amount of a Electrification Act of 1936 (7 U.S.C. 905) is re- (16 U.S.C. 1006a) is amended by striking the grant provided under this paragraph shall pealed. second sentence and inserting the following: not exceed 75 percent of the cost of develop- (b) CONFORMING AMENDMENTS.—Section ‘‘A loan or advance under this section shall ing a facility. 12(a) of the Rural Electrification Act of 1936 be made under a contract or agreement that ‘‘(iii) GRADUATED SCALE.—The Secretary (7 U.S.C. 912(a)) is amended— provides, under such terms and conditions as shall provide for a graduated scale for the (1) by striking ‘‘: Provided, however, That’’ the Secretary considers appropriate, for the amount of the Federal share provided under and inserting ‘‘, except that,’’; and repayment of the loan or advance in not this paragraph, with higher Federal shares (2) by striking ‘‘, and with respect to any more than 50 years from the date when the for facilities in communities that have lower loan made under section 5,’’ and all that fol- principal benefits of the works of improve- community population and income levels, as lows through ‘‘section 3’’. ment first become available, with interest at determined by the Secretary.’’. SEC. 775. TESTIMONY ON BUDGET REQUESTS. a rate not to exceed the current market Subtitle C—Amendments to the Rural Section 6 of the Rural Electrification Act yield for outstanding municipal obligations Electrification Act of 1936 of 1936 (7 U.S.C. 906) is amended by striking with remaining periods to maturity com- parable to the average maturity for the loan, SEC. 771. PURPOSES; INVESTIGATIONS AND RE- the second sentence. adjusted to the nearest 1⁄8 of 1 percent.’’. PORTS. SEC. 776. TRANSFER OF FUNCTIONS OF ADMINIS- SEC. 792. GRANTS FOR FINANCIALLY STRESSED Section 2 of the Rural Electrification Act TRATION CREATED BY EXECUTIVE ORDER. FARMERS, DISLOCATED FARMERS, of 1936 (7 U.S.C. 902) is amended— AND RURAL FAMILIES. Section 8 of the Rural Electrification Act (1) by striking ‘‘SEC. 2. (a) The Secretary of (a) IN GENERAL.—Section 502 of the Rural of 1936 (7 U.S.C. 908) is repealed. Agriculture is’’ and inserting the following: Development Act of 1972 (7 U.S.C. 2662) is ‘‘SEC. 2. GENERAL AUTHORITY OF THE SEC- SEC. 777. ANNUAL REPORT. amended by striking subsection (f). RETARY OF AGRICULTURE. Section 10 of the Rural Electrification Act (b) CONFORMING AMENDMENTS.— ‘‘(a) LOANS.—The Secretary of Agriculture of 1936 (7 U.S.C. 910) is repealed. (1) Section 2389 of the Food, Agriculture, (referred to in this Act as the ‘Secretary’) SEC. 778. PROHIBITION ON RESTRICTING WATER Conservation, and Trade Act of 1990 (Public is’’; AND WASTE FACILITY SERVICES TO Law 101–624; 7 U.S.C. 2662 note) is amended (2) in subsection (a)— ELECTRIC CUSTOMERS. by striking subsection (d). (A) by striking ‘‘and the furnishing’’ the The Rural Electrification Act of 1936 is (2) Section 503(c) of the Rural Development first place it appears and all that follows amended by inserting after section 16 (7 Act of 1972 (7 U.S.C. 2663(c)) is amended— through ‘‘central station service’’; and U.S.C. 916) the following: (A) in paragraph (1)— February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1123 (i) by striking ‘‘(1)’’; SEC. 802. SUBCOMMITTEE ON FOOD, AGRICUL- ‘‘SEC. 1408. NATIONAL AGRICULTURAL RE- (ii) by striking ‘‘section 502(e)’’ and all TURAL, AND FORESTRY RESEARCH. SEARCH, EXTENSION, EDUCATION, that follows through ‘‘shall be distributed’’ Section 401(h) of the National Science and AND ECONOMICS ADVISORY BOARD. and inserting ‘‘subsections (e), (h), and (i) of Technology Policy, Organization, and Prior- ‘‘(a) ESTABLISHMENT.—The Secretary shall section 502 shall be distributed’’; and ities Act of 1976 (42 U.S.C. 6651(h)) is amended establish within the Department of Agri- (iii) by striking ‘‘objectives of’’ and all by striking the second through fifth sen- culture a board to be known as the ‘National Agricultural Research, Extension, Edu- that follows through ‘‘title’’ and inserting tences. cation, and Economics Advisory Board’. ‘‘objectives of subsections (e), (h), and (i) of SEC. 803. JOINT COUNCIL ON FOOD AND AGRI- ‘‘(b) MEMBERSHIP.— section 502’’; and CULTURAL SCIENCES. ‘‘(1) IN GENERAL.—The Advisory Board (B) by striking paragraph (2). (a) IN GENERAL.—Section 1407 of the Na- shall consist of 25 members, appointed by the SEC. 793. COOPERATIVE AGREEMENTS. tional Agricultural Research, Extension, and Secretary. Section 607(b) of the Rural Development Teaching Policy Act of 1977 (7 U.S.C. 3122) is ‘‘(2) SELECTION OF MEMBERS.—The Sec- Act of 1972 (7 U.S.C. 2204b(b)) is amended by repealed. retary shall appoint members to the Advi- striking paragraph (4) and inserting the fol- (b) CONFORMING AMENDMENTS.— sory Board from individuals who are selected lowing: (1) Section 1404 of the National Agricul- from national farm, commodity, agri- ‘‘(4) COOPERATIVE AGREEMENTS.— tural Research, Extension, and Teaching business, environmental, consumer, and ‘‘(A) IN GENERAL.—Notwithstanding chap- Policy Act of 1977 (7 U.S.C. 3103) is amend- other organizations directly concerned with ter 63 of title 31, United States Code, the ed— agricultural research, education, and exten- Secretary may enter into cooperative agree- (A) by striking paragraph (9); and sion programs. ments with other Federal agencies, State (B) by redesignating paragraphs (10) ‘‘(3) REPRESENTATION.—A member of the and local governments, and any other orga- through (18) as paragraphs (9) through (17), Advisory Board may represent 1 or more of nization or individual to improve the coordi- respectively. the organizations referred to in paragraph nation and effectiveness of Federal pro- (2) Section 1405 of the National Agricul- (2), except that 1 member shall be a rep- grams, services, and actions affecting rural tural Research, Extension, and Teaching resentative of the scientific community that areas, including the establishment and fi- Policy Act of 1977 (7 U.S.C. 3121) is amend- is not closely associated with agriculture. nancing of interagency groups, if the Sec- ed— The Secretary shall ensure that the member- retary determines that the objectives of the (A) in paragraph (5), by striking ‘‘Joint ship of the Advisory Board includes full-time agreement will serve the mutual interest of Council, Advisory Board,’’ and inserting farmers and ranchers and represents the in- the parties in rural development activities. ‘‘Advisory Board’’; and terests of the full variety of stakeholders in ‘‘(B) COOPERATORS.—Each cooperator, in- (B) in paragraph (11), by striking ‘‘the the agricultural sector. cluding each Federal agency, to the extent Joint Council,’’. ‘‘(c) DUTIES.—The Advisory Board shall— that funds are otherwise available, may par- (3) Section 1410(2) of the National Agricul- ‘‘(1) review and provide consultation to the ticipate in any cooperative agreement or tural Research, Extension, and Teaching Secretary and land-grant colleges and uni- working group established pursuant to this Policy Act of 1977 (7 U.S.C. 3125(2)) is amend- versities on long-term and short-term na- paragraph by contributing funds or other re- ed by striking ‘‘the recommendations of the tional policies and priorities, as set forth in sources to the Secretary to carry out the Joint Council developed under section section 1402, relating to agricultural re- agreement or functions of the group.’’. 1407(f),’’. search, extension, education, and economics; TITLE VIII—RESEARCH EXTENSION AND (4) Section 1412 of the National Agricul- ‘‘(2) evaluate the results and effectiveness EDUCATION tural Research, Extension, and Teaching of agricultural research, extension, edu- Subtitle A—Amendments to National Agricul- Policy Act of 1977 (7 U.S.C. 3127) is amend- cation, and economics with respect to the tural Research, Extension, and Teaching ed— policies and priorities; Policy Act of 1977 and Related Statutes (A) in the section heading, by striking ‘‘(3) review and make recommendations to ‘‘JOINT COUNCIL, ADVISORY BOARD,’’ and the Under Secretary of Agriculture for Re- SEC. 801. PURPOSES OF AGRICULTURAL RE- SEARCH, EXTENSION, AND EDU- inserting ‘‘ADVISORY BOARD’’; search, Education, and Economics on the re- CATION. (B) in subsection (a)— search, extension, education, and economics Section 1402 of the National Agricultural (i) by striking ‘‘Joint Council, the Advi- portion of the draft strategic plan required Research, Extension, and Teaching Policy sory Board,’’ and inserting ‘‘Advisory under section 306 of title 5, United States Act of 1977 (7 U.S.C. 3101) is amended to read Board’’; Code; and as follows: (ii) by striking ‘‘the cochairpersons of the ‘‘(4) review the mechanisms of the Depart- ‘‘SEC. 1402. PURPOSES OF AGRICULTURAL RE- Joint Council and’’ each place it appears; ment of Agriculture for technology assess- SEARCH, EXTENSION, AND EDU- and ment (which should be conducted by quali- CATION. (iii) in paragraph (2), by striking ‘‘one shall fied professionals) for the purposes of— ‘‘The purposes of federally supported agri- serve as the executive secretary to the Joint ‘‘(A) performance measurement and eval- cultural research, extension, and education Council, one shall serve as the executive sec- uation of the implementation by the Sec- are to— retary to the Advisory Board,’’ and inserting retary of the strategic plan required under ‘‘(1) enhance the competitiveness of the ‘‘1 shall serve as the executive secretary to section 306 of title 5, United States Code; United States agriculture and food industry the Advisory Board’’; and ‘‘(B) implementation of the national re- in an increasingly competitive world envi- (C) in subsections (b) and (c), by striking search policies and priorities set forth in sec- ronment; ‘‘Joint Council, Advisory Board,’’ each place tion 1402; and ‘‘(2) increase the long-term productivity of it appears and inserting ‘‘Advisory Board’’. ‘‘(C) the development of mechanisms for the United States agriculture and food in- (5) Section 1413 of the National Agricul- the assessment of emerging public and pri- dustry while protecting the natural resource tural Research, Extension, and Teaching vate agricultural research and technology base on which rural America and the United Policy Act of 1977 (7 U.S.C. 3128) is amend- transfer initiatives. States agricultural economy depend; ed— ‘‘(d) CONSULTATION.—In carrying out this ‘‘(3) develop new uses and new products for (A) in subsection (a), by striking ‘‘Joint section, the Advisory Board shall solicit agricultural commodities, such as alter- Council, the Advisory Board,’’ and inserting opinions and recommendations from persons native fuels, and develop new crops; ‘‘Advisory Board’’; who will benefit from and use federally fund- ‘‘(4) support agricultural research and ex- (B) in subsection (b), by striking ‘‘Joint ed agricultural research, extension, edu- tension to promote economic opportunity in Council, Advisory Board,’’ and inserting cation, and economics. ‘‘(e) APPOINTMENT.—A member of the Advi- rural communities and to meet the increas- ‘‘Advisory Board’’; and sory Board shall be appointed by the Sec- ing demand for information and technology (C) by striking subsection (d). retary for a term of up to 3 years. The mem- transfer throughout the United States agri- (6) Section 1434(c) of the National Agricul- bers of the Advisory Board shall be ap- culture industry; tural Research, Extension, and Teaching pointed to serve staggered terms. Policy Act of 1977 (7 U.S.C. 3196(c)) is amend- ‘‘(5) improve risk management in the Unit- ‘‘(f) FEDERAL ADVISORY COMMITTEE ACT.— ed States agriculture industry; ed— The Advisory Board shall be deemed to have ‘‘(6) improve the safe production and proc- (A) in the second sentence, by striking filed a charter for the purpose of section 9(c) essing of, and adding of value to, United ‘‘Joint Council, the Advisory Board,’’ and in- of the Federal Advisory Committee Act (5 States food and fiber resources using meth- serting ‘‘Advisory Board’’; and U.S.C. App.). ods that are environmentally sound; (B) in the fourth sentence, by striking ‘‘the ‘‘(g) TERMINATION.—The Advisory Board ‘‘(7) support higher education in agri- Joint Council,’’. shall remain in existence until September 30, culture to give the next generation of Ameri- SEC. 804. NATIONAL AGRICULTURAL RESEARCH, 2002.’’. cans the knowledge, technology, and applica- EXTENSION, EDUCATION, AND ECO- (b) CONFORMING AMENDMENTS.— tions necessary to enhance the competitive- NOMICS ADVISORY BOARD. (1) Section 1404(1) of the National Agricul- ness of United States agriculture; and (a) IN GENERAL.—Section 1408 of the Na- tural Research, Extension, and Teaching ‘‘(8) maintain an adequate, nutritious, and tional Agricultural Research, Extension, and Policy Act of 1977 (7 U.S.C. 3103(1)) is amend- safe supply of food to meet human nutri- Teaching Policy Act of 1977 (7 U.S.C. 3123) is ed by striking ‘‘National Agricultural Re- tional needs and requirements.’’. amended to read as follows: search and Extension Users Advisory Board’’ S 1124 CONGRESSIONAL RECORD — SENATE February 7, 1996 and inserting ‘‘National Agricultural Re- committee, board, commission, panel, or ‘‘(A) promote and strengthen secondary search, Extension, Education, and Econom- task force, or similar entity that— education and 2-year postsecondary edu- ics Advisory Board’’. ‘‘(A) is created for the purpose of coopera- cation in agriscience and agribusiness in (2) Section 1410(2) of the National Agricul- tive efforts in agricultural research, exten- order to help ensure the existence in the tural Research, Extension, and Teaching sion, or teaching; and United States of a qualified workforce to Policy Act of 1977 (7 U.S.C. 3125(2)) is amend- ‘‘(B) consists entirely of full-time Federal serve the food and agricultural sciences sys- ed by striking ‘‘the recommendations of the employees and individuals who are employed tem; and Advisory Board developed under section by, or who are officials of, a State coopera- ‘‘(B) promote complementary and syner- 1408(g),’’ and inserting ‘‘any recommenda- tive institution or a State cooperative gistic linkages among secondary, 2-year tions of the Advisory Board’’. agent.’’. postsecondary, and higher education pro- (3) The last sentence of section 4(a) of the SEC. 807. COORDINATION AND PLANNING OF AG- grams in the food and agricultural sciences Renewable Resources Extension Act of 1978 RICULTURAL RESEARCH, EXTEN- in order to promote excellence in education (16 U.S.C. 1673(a)) is amended by striking SION, AND EDUCATION. and encourage more young Americans to ‘‘National Agricultural Research and Exten- Subtitle B of the National Agricultural Re- pursue and complete a baccalaureate or sion Users Advisory Board’’ and inserting search, Extension, and Teaching Policy Act higher degree in the food and agricultural ‘‘National Agricultural Research, Extension, of 1977 (7 U.S.C. 3121 et seq.) is amended by sciences. Education, and Economics Advisory Board’’. adding at the end the following: ‘‘(2) GRANTS.—The Secretary may make SEC. 805. AGRICULTURAL SCIENCE AND TECH- ‘‘SEC. 1413A. ACCOUNTABILITY. competitive or noncompetitive grants, for NOLOGY REVIEW BOARD. ‘‘(a) IN GENERAL.—The Secretary shall de- grant periods not to exceed 5 years, to public (a) IN GENERAL.—Section 1408A of the Na- velop and carry out a system to monitor and secondary education institutions, 2-year tional Agricultural Research, Extension, and evaluate agricultural research and extension community colleges, and junior colleges that Teaching Policy Act of 1977 (7 U.S.C. 3123a) is activities conducted or supported by the have made a commitment to teaching repealed. Federal Government that will enable the agriscience and agribusiness— (b) CONFORMING AMENDMENTS.— Secretary to measure the impact of research, ‘‘(A) to enhance curricula in agricultural (1) Section 1404 of the National Agricul- extension, and education programs according education; tural Research, Extension, and Teaching to priorities, goals, and mandates estab- ‘‘(B) to increase faculty teaching com- Policy Act of 1977 (7 U.S.C. 3103) (as amended lished by law. petencies; by section 803(b)(1)(B)) is further amended— ‘‘(b) CONSISTENCY WITH OTHER REQUIRE- ‘‘(C) to interest young people in pursuing a (A) in paragraph (15), by adding ‘‘and’’ at MENTS.—The system shall be developed and higher education in order to prepare for sci- the end; carried out in a manner that is consistent entific and professional careers in the food (B) in paragraph (16), by striking ‘‘; and’’ with the Government Performance and Re- and agricultural sciences; and inserting a period; and sults Act of 1993 (Public Law 103–62; 107 Stat. ‘‘(D) to promote the incorporation of (C) by striking paragraph (17). 285) and amendments made by the Act. agriscience and agribusiness subject matter (2) Section 1405(12) of the National Agricul- ‘‘SEC. 1413B. IMMINENT OR EMERGING THREATS into other instructional programs, particu- tural Research, Extension, and Teaching TO FOOD SAFETY AND ANIMAL AND larly classes in science, business, and Policy Act of 1977 (7 U.S.C. 3121(12)) is PLANT HEALTH. consumer education; amended by striking ‘‘, after coordination ‘‘In the case of any activities of an agency ‘‘(E) to facilitate joint initiatives among with the Technology Board,’’. of the Department of Agriculture that relate other secondary or 2-year postsecondary in- (3) Section 1410(2) of the National Agricul- to food safety, animal or plant health, re- stitutions and with 4-year colleges and uni- tural Research, Extension, and Teaching search, education, or technology transfer, versities to maximize the development and Policy Act of 1977 (7 U.S.C. 3125(2)) (as the Secretary may transfer up to 5 percent of use of resources such as faculty, facilities, amended by section 804(b)(2)) is further any amounts made available to the agency and equipment to improve agriscience and amended by striking ‘‘and the recommenda- for a fiscal year to an agency of the Depart- agribusiness education; and tions of the Technology Board developed ment of Agriculture reporting to the Under ‘‘(F) to support other initiatives designed under section 1408A(d)’’. Secretary of Agriculture for Research, Edu- to meet local, State, regional, or national (4) Section 1412 of the National Agricul- cation, and Economics for the purpose of ad- needs related to promoting excellence in tural Research, Extension, and Teaching dressing imminent or emerging threats to agriscience and agribusiness education.’’; Policy Act of 1977 (7 U.S.C. 3127) (as amended food safety and animal and plant health. and (4) in subsection (j) (as so redesignated), by by section 803(b)(4)) is further amended— ‘‘SEC. 1413C. FEDERAL ADVISORY COMMITTEE (A) in the section heading, by striking ACT EXEMPTION FOR COMPETITIVE striking ‘‘1995’’ and inserting ‘‘2002’’. ‘‘AND TECHNOLOGY BOARD’’; RESEARCH, EXTENSION, AND EDU- (b) TRANSFER OF FUNCTIONS AND DUTIES (B) in subsection (a)— CATION PROGRAMS. PERTAINING TO THE FUTURE FARMERS OF (i) by striking ‘‘and the Technology Board’’ ‘‘The Federal Advisory Committee Act (5 AMERICA.— each place it appears; and U.S.C. App.) and title XVIII of the Food and (1) IN GENERAL.—There are transferred to (ii) in paragraph (2), by striking ‘‘and one Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) the Secretary of Agriculture all the func- shall serve as the executive secretary to the shall not apply to any committee, board, tions and duties of the Secretary of Edu- Technology Board’’; and commission, panel, or task force, or similar cation under the Act entitled ‘‘An Act to in- (C) in subsections (b) and (c), by striking entity, created solely for the purpose of re- corporate the Future Farmers of America, ‘‘and Technology Board’’ each place it ap- viewing applications or proposals requesting and for other purposes’’, approved August 30, pears. funding under any competitive research, ex- 1950 (36 U.S.C. 271 et seq.). (5) Section 1413 of the National Agricul- tension, or education program carried out by (2) PERSONNEL AND UNEXPENDED BAL- tural Research, Extension, and Teaching the Secretary.’’. ANCES.—There are transferred to the Depart- Policy Act of 1977 (7 U.S.C. 3128) (as amended SEC. 808. GRANTS AND FELLOWSHIPS FOR FOOD ment of Agriculture all personnel and bal- by section 803(b)(5)) is further amended— AND AGRICULTURAL SCIENCES EDU- ances of unexpended appropriations available (A) in subsection (a), by striking ‘‘or the CATION. for carrying out the duties and functions Technology Board’’; and (a) IN GENERAL.—Section 1417 of the Na- transferred under paragraph (1). (B) in subsection (b), by striking ‘‘and the tional Agricultural Research, Extension, and (3) AMENDMENTS.—The Act entitled ‘‘An Technology Board’’. Teaching Policy Act of 1977 (7 U.S.C. 3152) is Act to incorporate the Future Farmers of amended— America, and for other purposes’’, approved SEC. 806. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION FOR FEDERAL-STATE (1) in subsection (b)— August 30, 1950, is amended— COOPERATIVE PROGRAMS. (A) by inserting before ‘‘for a period’’ the (A) in section 7(c) (36 U.S.C. 277(c)) by Section 1409A of the National Agricultural following: ‘‘or to research foundations main- striking ‘‘Secretary of Education, the execu- Research, Extension, and Teaching Policy tained by the colleges and universities,’’; and tive secretary shall be a member of the De- Act of 1977 (7 U.S.C. 3124a) is amended by (B) by striking paragraph (4) and inserting partment of Education’’ and inserting ‘‘Sec- adding at the end the following: the following: retary of Agriculture, the executive sec- ‘‘(e) APPLICABILITY OF FEDERAL ADVISORY ‘‘(4) to design and implement food and agri- retary shall be an officer or employee of the COMMITTEE ACT.— cultural programs to build teaching and re- Department of Agriculture’’; ‘‘(1) PUBLIC MEETINGS.—All meetings of any search capacity at primarily minority insti- (B) in section 8(a) (36 U.S.C. 278(a))— entity described in paragraph (2) shall be tutions;’’; (i) by striking ‘‘Secretary of Education’’ publicly announced in advance and shall be (2) by redesignating subsections (h) and (i) and inserting ‘‘Secretary of Agriculture’’; open to the public. Detailed minutes of as subsections (i) and (j), respectively; and meetings and other appropriate records of (3) by inserting after subsection (g) the fol- (ii) by striking ‘‘Department of Education’’ the activities of such an entity shall be kept lowing: and inserting ‘‘Department of Agriculture’’; and made available to the public on request. ‘‘(h) SECONDARY EDUCATION AND 2-YEAR and ‘‘(2) EXEMPTION.—The Federal Advisory POSTSECONDARY EDUCATION TEACHING PRO- (C) in section 18 (36 U.S.C. 288)— Committee Act (5 U.S.C. App.) and title GRAMS.— (i) by striking ‘‘Secretary of Education’’ XVIII of the Food and Agriculture Act of 1977 ‘‘(1) AGRISCIENCE AND AGRIBUSINESS EDU- each place it appears and inserting ‘‘Sec- (7 U.S.C. 2281 et seq.) shall not apply to any CATION.—The Secretary shall— retary of Agriculture’’; and February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1125 (ii) by striking ‘‘Department of Education’’ health care system and social programs of (2) in subsection (b)(2)— each place it appears and inserting ‘‘Depart- the United States. (A) by striking ‘‘domestic livestock and ment of Agriculture’’. ‘‘(b) ADMINISTRATION OF FUNDS.—The Ad- poultry’’ each place it appears and inserting SEC. 809. GRANTS FOR RESEARCH ON THE PRO- ministrator of the Agricultural Research ‘‘domestic livestock, poultry, and commer- DUCTION AND MARKETING OF ALCO- Service shall administer funds made avail- cial aquaculture species’’; and HOLS AND INDUSTRIAL HYDRO- able to carry out this section to ensure a co- (B) in the second sentence, by striking CARBONS FROM AGRICULTURAL ordinated approach to health and nutrition ‘‘horses, and poultry’’ and inserting ‘‘horses, COMMODITIES AND FOREST PROD- research efforts. poultry, and commercial aquaculture spe- UCTS. ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.— cies’’; Section 1419(d) of the National Agricul- There are authorized to be appropriated such (3) in subsection (d), by striking ‘‘domestic tural Research, Extension, and Teaching sums as are necessary to carry out this sec- livestock and poultry’’ and inserting ‘‘do- Policy Act of 1977 (7 U.S.C. 3154(d)) is amend- tion for fiscal years 1996 through 2002.’’. mestic livestock, poultry, and commercial ed by striking ‘‘1995’’ and inserting ‘‘2002’’. SEC. 812. FOOD AND NUTRITION EDUCATION aquaculture species’’; and SEC. 810. POLICY RESEARCH CENTERS. PROGRAM. (4) in subsection (f), by striking ‘‘domestic The National Agricultural Research, Ex- Section 1425(c)(3) of the National Agricul- livestock and poultry’’ and inserting ‘‘do- tension, and Teaching Policy Act of 1977 (as tural Research, Extension, and Teaching mestic livestock, poultry, and commercial amended by section 809) is further amended Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is aquaculture species’’. by inserting after section 1418 (7 U.S.C. 3153) amended by striking ‘‘fiscal year 1995’’ and SEC. 816. ANIMAL HEALTH AND DISEASE NA- the following: inserting ‘‘each of fiscal years 1996 through TIONAL OR REGIONAL RESEARCH. ‘‘SEC. 1419. POLICY RESEARCH CENTERS. 2002’’. Section 1434 of the National Agricultural ‘‘(a) IN GENERAL.—Consistent with this sec- SEC. 813. PURPOSES AND FINDINGS RELATING Research, Extension, and Teaching Policy tion, the Secretary may make grants, com- TO ANIMAL HEALTH AND DISEASE Act of 1977 (7 U.S.C. 3196) is amended— petitive grants, and special research grants RESEARCH. (1) in subsection (a)— Section 1429 of the National Agricultural to, and enter into cooperative agreements (A) by inserting ‘‘or national or regional Research, Extension, and Teaching Policy and other contracting instruments with, pol- problems relating to pre-harvest, on-farm Act of 1977 (7 U.S.C. 3191) is amended to read icy research centers to conduct research and food safety, or animal well-being,’’ after as follows: education programs that are objective, oper- ‘‘problems,’’; and ationally independent, and external to the ‘‘SEC. 1429. PURPOSES AND FINDINGS RELATING (B) by striking ‘‘1995’’ and inserting ‘‘2002’’; TO ANIMAL HEALTH AND DISEASE (2) in subsection (b), by striking ‘‘eligible Federal Government and that concern the ef- RESEARCH. fect of public policies on— institutions’’ and inserting ‘‘State agricul- ‘‘(a) PURPOSES.—The purposes of this sub- tural experiment stations, colleges and uni- ‘‘(1) the farm and agricultural sectors; title are to— versities, other research institutions and or- ‘‘(2) the environment; ‘‘(1) promote the general welfare through ganizations, Federal agencies, private orga- ‘‘(3) rural families, households and econo- the improved health and productivity of do- nizations or corporations, and individuals’’; mies; and mestic livestock, poultry, aquatic animals, (3) in subsection (c)— ‘‘(4) consumers, food, and nutrition. and other income-producing animals that are (A) in the first sentence, by inserting ‘‘, ‘‘(b) ELIGIBLE RECIPIENTS.—Except to the essential to the food supply of the United food safety, and animal well-being’’ after extent otherwise prohibited by law, State ag- States and the welfare of producers and con- ‘‘animal health and disease’’; and ricultural experiment stations, colleges and sumers of animal products; (B) in the fourth sentence— universities, other research institutions and ‘‘(2) improve the health of horses; (i) by redesignating paragraphs (2) and (3) organizations, private organizations, cor- ‘‘(3) facilitate the effective treatment of, as paragraphs (4) and (5), respectively; and porations, and individuals shall be eligible to and, to the extent possible, prevent animal (ii) by inserting after paragraph (1) the fol- apply for and receive funding under sub- and poultry diseases in both domesticated lowing: section (a). and wild animals that, if not controlled, ‘‘(2) any food safety problem that has a sig- ‘‘(c) ACTIVITIES.—Under this section, fund- would be disastrous to the United States nificant pre-harvest (on-farm) component ing may be provided for disciplinary and livestock and poultry industries and endan- and is recognized as posing a significant interdisciplinary research and education ger the food supply of the United States; health hazard to the consuming public; concerning activities consistent with this ‘‘(4) improve methods for the control of or- ‘‘(3) issues of animal well-being related to section, including activities that— ganisms and residues in food products of ani- production methods that will improve the ‘‘(1) quantify the implications of public mal origin that could endanger the human housing and management of animals to im- policies and regulations; food supply; prove the well-being of livestock production ‘‘(2) develop theoretical and research meth- ‘‘(5) improve the housing and management species;’’; ods; of animals to improve the well-being of live- (4) in the first sentence of subsection (d), ‘‘(3) collect and analyze data for policy- stock production species; by striking ‘‘to eligible institutions’’; and makers, analysts, and individuals; and ‘‘(6) minimize livestock and poultry losses (5) by adding at the end the following: ‘‘(4) develop programs to train analysts. due to transportation and handling; ‘‘(f) APPLICABILITY OF FEDERAL ADVISORY ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(7) protect human health through control COMMITTEE ACT.—The Federal Advisory There are authorized to be appropriated such of animal diseases transmissible to humans; sums as are necessary to carry out this sec- Committee Act (5 U.S.C. App.) and title ‘‘(8) improve methods of controlling the XVIII of the Food and Agriculture Act of 1977 tion for fiscal years 1996 through 2002.’’. births of predators and other animals; and SEC. 811. HUMAN NUTRITION INTERVENTION (7 U.S.C. 2281 et seq.) shall not apply to a ‘‘(9) otherwise promote the general welfare panel or board created solely for the purpose AND HEALTH PROMOTION RE- through expanded programs of research and SEARCH PROGRAM. of reviewing applications or proposals sub- extension to improve animal health. mitted under this subtitle.’’. Section 1424 of the National Agricultural ‘‘(b) FINDINGS.—Congress finds that— Research, Extension, and Teaching Policy ‘‘(1) the total animal health and disease re- SEC. 817. RESIDENT INSTRUCTION PROGRAM AT 1890 LAND-GRANT COLLEGES. Act of 1977 (7 U.S.C. 3174) is amended to read search and extension efforts of State colleges as follows: Section 1446 of the National Agricultural and universities and of the Federal Govern- Research, Extension, and Teaching Policy ‘‘SEC. 1424. HUMAN NUTRITION INTERVENTION ment would be more effective if there were Act of 1977 (7 U.S.C. 3222a) is repealed. AND HEALTH PROMOTION RE- close coordination between the efforts; and SEC. 818. GRANT PROGRAM TO UPGRADE AGRI- SEARCH PROGRAM. ‘‘(2) colleges and universities having ac- ‘‘(a) AUTHORITY OF SECRETARY.— CULTURAL AND FOOD SCIENCES FA- credited schools or colleges of veterinary CILITIES AT 1890 LAND-GRANT COL- ‘‘(1) IN GENERAL.—The Secretary may es- medicine and State agricultural experiment LEGES. tablish, and award grants for projects for, a stations that conduct animal health and dis- Section 1447(b) of the National Agricul- multi-year research initiative on human nu- ease research are especially vital in training tural Research, Extension, and Teaching trition intervention and health promotion. research workers in animal health and relat- Policy Act of 1977 (7 U.S.C. 3222b(b)) is ‘‘(2) EMPHASIS OF INITIATIVE.—In admin- ed disciplines.’’. amended by striking ‘‘$8,000,000 for each of istering human nutrition research projects SEC. 814. ANIMAL HEALTH SCIENCE RESEARCH the fiscal years 1991 through 1995’’ and in- under this section, the Secretary shall give ADVISORY BOARD. serting ‘‘$15,000,000 for each of fiscal years specific emphasis to— Section 1432 of the National Agricultural 1996 through 2002’’. ‘‘(A) coordinated longitudinal research as- Research, Extension, and Teaching Policy SEC. 819. NATIONAL RESEARCH AND TRAINING sessments of nutritional status; and Act of 1977 (7 U.S.C. 3194) is repealed. CENTENNIAL CENTERS AUTHORIZA- ‘‘(B) the implementation of unified, inno- SEC. 815. ANIMAL HEALTH AND DISEASE CON- TION. vative intervention strategies; TINUING RESEARCH. Section 1448 of the National Agricultural to identify and solve problems of nutritional Section 1433 of the National Agricultural Research, Extension, and Teaching Policy inadequacy and contribute to the mainte- Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) is amended— nance of health, well-being, performance, Act of 1977 (7 U.S.C. 3195) is amended— (1) in subsection (a)(1), by inserting ‘‘, or and productivity of individuals, thereby re- (1) in the first sentence of subsection (a), fiscal years 1996 through 2002,’’ after ‘‘1995’’; ducing the need of the individuals to use the by striking ‘‘1995’’ and inserting ‘‘2002’’; and S 1126 CONGRESSIONAL RECORD — SENATE February 7, 1996 (2) in subsection (f), by striking ‘‘1995’’ and SEC. 826. TECHNICAL AMENDMENTS. (2) by redesignating subsection (e) as sub- inserting ‘‘2002’’. The table of contents of the Food and Agri- section (b). SEC. 820. GRANTS TO STATES FOR INTER- culture Act of 1977 (Public Law 95–113; 91 (b) CONFORMING AMENDMENTS.— NATIONAL TRADE DEVELOPMENT Stat. 913) is amended— (1) Section 1619(b) of the Food, Agriculture, CENTERS. (1) by striking the item relating to section Conservation, and Trade Act of 1990 (7 U.S.C. Section 1458A of the National Agricultural 1402 and inserting the following: 5801(b)) is amended— Research, Extension, and Teaching Policy ‘‘Sec. 1402. Purposes of agricultural research, (A) by striking paragraph (7); and Act of 1977 (7 U.S.C. 3292) is repealed. extension, and education.’’; (B) by redesignating paragraphs (8), (9), and (10) as paragraphs (7), (8), and (9), respec- SEC. 821. AGRICULTURAL RESEARCH PROGRAMS. (2) by striking the items relating to sec- tively. Section 1463 of the National Agricultural tions 1406, 1407, 1408A, 1432, 1446, 1458A, 1481, (2) Section 1621(c) of the Food, Agriculture, Research, Extension, and Teaching Policy and 1482; Conservation, and Trade Act of 1990 (7 U.S.C. Act of 1977 (7 U.S.C. 3311) is amended by (3) by striking the item relating to section 5811(c)) is amended— striking ‘‘1995’’ each place it appears and in- 1408 and inserting the following: serting ‘‘2002’’. (A) in paragraph (1)— ‘‘Sec. 1408. National Agricultural Research, (i) by striking subparagraph (A); and SEC. 822. EXTENSION EDUCATION. Extension, Education, and Eco- Section 1464 of the National Agricultural (ii) by redesignating subparagraphs (B) nomics Advisory Board.’’; Research, Extension, and Teaching Policy through (E) as subparagraphs (A) through Act of 1977 (7 U.S.C. 3312) is amended by (4) by striking the item relating to section (D), respectively; and striking ‘‘fiscal year 1995’’ and inserting 1412 and inserting the following: (B) in paragraph (2)— ‘‘each of fiscal years 1995 through 2002’’. ‘‘Sec. 1412. Support for the Advisory Board.’’; (i) by striking subparagraph (A); and (ii) by redesignating subparagraphs (B) SEC. 823. SUPPLEMENTAL AND ALTERNATIVE (5) by adding at the end of the items relat- through (F) as subparagraphs (A) through CROPS RESEARCH. ing to subtitle B of title XIV the following: Section 1473D of the National Agricultural (E), respectively. ‘‘Sec. 1413A. Accountability. (3) Section 1622 of the Food, Agriculture, Research, Extension, and Teaching Policy ‘‘Sec. 1413B. Imminent or emerging threats Act of 1977 (7 U.S.C. 3319d) is amended— Conservation, and Trade Act of 1990 (7 U.S.C. to food safety and animal and 5812) (as amended by subsection (a)) is fur- (1) in subsection (a)— plant health. (A) by striking ‘‘1995’’ and inserting ‘‘2002’’; ther amended— ‘‘Sec. 1413C. Federal Advisory Committee (A) in subsection (a)— and Act exemption for competitive (B) by striking ‘‘and pilot’’; (i) by striking paragraph (2); research, extension, and edu- (ii) in paragraph (3), by striking ‘‘sub- (2) in subsection (c)— cation programs.’’; (A) in paragraph (2)— section (e)’’ and inserting ‘‘subsection (b)’’; (6) by striking the item relating to section (i) in subparagraph (B), by striking ‘‘at and 1419 and inserting the following: pilot sites’’ through ‘‘the area’’; and (iii) by redesignating paragraphs (3) and (4) (ii) in subparagraph (D)— ‘‘Sec. 1419. Policy research centers.’’; as paragraphs (2) and (3), respectively; and (I) by striking ‘‘near such pilot sites’’; and (7) by striking the item relating to section (B) in subsection (b)(2)— (II) by striking ‘‘successful pilot program’’ 1424 and inserting the following: (i) by striking subparagraph (A); and (ii) by redesignating subparagraphs (B) and inserting ‘‘successful program’’; ‘‘Sec. 1424. Human nutrition intervention through (F) as subparagraphs (A) through (B) in paragraph (3)— and health promotion research (E), respectively. (i) by striking ‘‘pilot’’; program.’’; (ii) in subparagraph (C), by striking ‘‘and’’ (4) Section 1628(b) of the Food, Agriculture, and at the end; Conservation, and Trade Act of 1990 (7 U.S.C. (8) by striking the item relating to section (iii) in subparagraph (D), by striking the 5831(b)) is amended by striking ‘‘Advisory 1429 and inserting the following: period at the end and inserting a semicolon; Council, the Soil Conservation Service,’’ and and ‘‘Sec. 1429. Purposes and findings relating to inserting ‘‘Natural Resources Conservation (iv) by adding at the end the following: animal health and disease re- Service’’. ‘‘(E) to conduct fundamental and applied search.’’. SEC. 834. NATIONAL GENETICS RESOURCES PRO- research related to the development of new Subtitle B—Amendments to Food, Agri- GRAM. commercial products derived from natural culture, Conservation, and Trade Act of (a) FUNCTIONS.—Section 1632(d) of the plant material for industrial, medical, and 1990 Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5841(d)) is amended by agricultural applications; and SEC. 831. WATER QUALITY RESEARCH, EDU- striking paragraph (4) and inserting the fol- ‘‘(F) to participate with colleges and uni- CATION, AND COORDINATION. lowing: versities, other Federal agencies, and private (a) IN GENERAL.—Subtitle G of title XIV of ‘‘(4) unless otherwise prohibited by law, sector entities in conducting research de- the Food, Agriculture, Conservation, and have the right to make available on request, scribed in subparagraph (E).’’ Trade Act of 1990 (7 U.S.C. 5501 et seq.) is re- without charge and without regard to the SEC. 824. AQUACULTURE ASSISTANCE PRO- pealed. country from which the request originates, GRAMS. (b) CONFORMING AMENDMENTS.— the genetic material that the program as- (a) REPORTS.—Section 1475 of the National (1) Section 1627(a)(3) of the Food, Agri- Agricultural Research, Extension, and culture, Conservation, and Trade Act of 1990 sembles;’’. (b) AUTHORIZATION OF APPROPRIATIONS.— Teaching Policy Act of 1977 (7 U.S.C. 3322) is (7 U.S.C. 5821(a)(3)) is amended by striking ‘‘, Section 1635(b) of the Food, Agriculture, amended— subtitle G of title XIV,’’. Conservation, and Trade Act of 1990 (7 U.S.C. (1) by striking subsection (e); and (2) Section 1628 of the Food, Agriculture, 5844(b)) is amended by striking ‘‘1995’’ and in- (2) by redesignating subsections (f) and (g) Conservation, and Trade Act of 1990 (7 U.S.C. serting ‘‘2002’’. as subsections (e) and (f), respectively. 5831) is amended by striking ‘‘, subtitle G of SEC. 835. NATIONAL AGRICULTURAL WEATHER (b) AQUACULTURE RESEARCH FACILITIES.— title XIV,’’ each place it appears in sub- INFORMATION SYSTEM. Section 1476(b) of the National Agricultural sections (a) and (d). Section 1641(c) of the Food, Agriculture, Research, Extension, and Teaching Policy (3) Section 1629 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. Act of 1977 (7 U.S.C. 3323(b)) is amended by Conservation, and Trade Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ‘‘1995’’ and in- striking ‘‘1995’’ and inserting ‘‘2002’’. 5832) is amended by striking ‘‘, subtitle G of serting ‘‘2002’’. (c) RESEARCH AND EXTENSION.—Section 1477 title XIV,’’ each place it appears in sub- of the National Agricultural Research, Ex- SEC. 836. RESEARCH REGARDING PRODUCTION, sections (f) and (g)(11). PREPARATION, PROCESSING, HAN- tension, and Teaching Policy Act of 1977 (7 SEC. 832. EDUCATION PROGRAM REGARDING DLING, AND STORAGE OF AGRICUL- U.S.C. 3324) is amended by striking ‘‘1995’’ HANDLING OF AGRICULTURAL TURAL PRODUCTS. and inserting ‘‘2002’’. CHEMICALS AND AGRICULTURAL Subtitle E of title XVI of the Food, Agri- SEC. 825. RANGELAND RESEARCH. CHEMICAL CONTAINERS. culture, Conservation, and Trade Act of 1990 (a) REPORTS.—Section 1481 of the National (a) IN GENERAL.—Section 1499A of the (7 U.S.C. 5871 et seq.) is repealed. Agricultural Research, Extension, and Food, Agriculture, Conservation, and Trade SEC. 837. PLANT AND ANIMAL PEST AND DISEASE Teaching Policy Act of 1977 (7 U.S.C. 3334) is Act of 1990 (7 U.S.C. 3125c) is repealed. CONTROL PROGRAM. repealed. (b) CONFORMING AMENDMENT.—Section (a) IN GENERAL.—Subtitle F of title XVI of (b) ADVISORY BOARD.—Section 1482 of the 1499(b) of the Food, Agriculture, Conserva- the Food, Agriculture, Conservation, and National Agricultural Research, Extension, tion, and Trade Act of 1990 (7 U.S.C. 5506(b)) Trade Act of 1990 (7 U.S.C. 5881) is repealed. and Teaching Policy Act of 1977 (7 U.S.C. is amended by striking ‘‘and section 1499A’’. (b) CONFORMING AMENDMENTS.— 3335) is repealed. SEC. 833. PROGRAM ADMINISTRATION. (1) Section 28(b)(2)(A) of the Federal Insec- (c) AUTHORIZATION OF APPROPRIATIONS.— (a) IN GENERAL.—Section 1622 of the Food, ticide, Fungicide, and Rodenticide Act (7 Section 1483(a) of the National Agricultural Agriculture, Conservation, and Trade Act of U.S.C. 136w–3(b)(2)(A)) is amended by strik- Research, Extension, and Teaching Policy 1990 (7 U.S.C. 5812) is amended— ing ‘‘and the information required by section Act of 1977 (7 U.S.C. 3336(a)) is amended by (1) by striking subsections (b), (c), and (d); 1651 of the Food, Agriculture, Conservation, striking ‘‘1995’’ and inserting ‘‘2002’’. and and Trade Act of 1990’’. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1127 (2) Section 1627(a)(3) of the Food, Agri- SEC. 850. TECHNICAL AMENDMENTS. date that are in excess of the highest amount culture, Conservation, and Trade Act of 1990 The table of contents of the Food, Agri- made available for the programs or initia- (7 U.S.C. 5821(a)(3)) is amended by striking culture, Conservation, and Trade Act of 1990 tives for fiscal year 1995, or any previous fis- ‘‘and section 1650’’. (Public Law 101–624; 104 Stat. 3359) is amend- cal year, as determined by the Secretary.’’. (3) Section 1628 of the Food, Agriculture, ed by striking the items relating to subtitle (2) Section 208(c) of the District of Colum- Conservation, and Trade Act of 1990 (7 U.S.C. G of title XIV, section 1499A, subtitles E and bia Public Postsecondary Education Reorga- 5831) is amended by striking ‘‘section 1650,’’ F of title XVI, and sections 1671, 1672, 1676, nization Act (Public Law 93–471; 88 Stat. 1428) each place it appears in subsections (a) and 1678, 1679, 2348, and 2404. is amended by adding at the end the follow- (d). Subtitle C—Miscellaneous Research ing: ‘‘Funds appropriated under this sub- (4) Section 1629 of the Food, Agriculture, Provisions section shall be in addition to any amounts Conservation, and Trade Act of 1990 (7 U.S.C. provided to the District of Columbia from— SEC. 861. CRITICAL AGRICULTURAL MATERIALS 5832) is amended by striking ‘‘section 1650,’’ RESEARCH. ‘‘(1) amounts made available after Septem- each place it appears in subsections (f) and (a) IN GENERAL.—Section 4 of the Critical ber 30, 1995, under section 3(d) of the Act to (g)(11). Agricultural Materials Act (7 U.S.C. 178b) is carry out programs or initiatives for which SEC. 838. LIVESTOCK PRODUCT SAFETY AND IN- amended— no funds were made available under section SPECTION PROGRAM. (1) by striking subsection (g); and 3(d) of the Act for fiscal year 1995, or any Section 1670(e) of the Food, Agriculture, (2) by redesignating subsection (h) as sub- previous fiscal year, as determined by the Conservation, and Trade Act of 1990 (7 U.S.C. section (g). Secretary of Agriculture; and 5923(e)) is amended by striking ‘‘1995’’ and in- (b) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(2) amounts made available after Septem- serting ‘‘2002’’. Section 16(a) of the Critical Agricultural Ma- ber 30, 1995, to carry out programs or initia- SEC. 839. PLANT GENOME MAPPING PROGRAM. terials Act (7 U.S.C. 178n(a)) is amended by tives funded under section 3(d) of the Act Section 1671 of the Food, Agriculture, Con- striking ‘‘1995’’ and inserting ‘‘2002’’. prior to the date that are in excess of the highest amount made available for the pro- servation, and Trade Act of 1990 (7 U.S.C. SEC. 862. 1994 INSTITUTIONS. grams or initiatives for fiscal year 1995, or 5924) is repealed. (a) LAND-GRANT STATUS.—The first sen- any previous fiscal year, as determined by SEC. 840. SPECIALIZED RESEARCH PROGRAMS. tence of section 533(b) of the Equity in Edu- the Secretary of Agriculture.’’. Section 1672 of the Food, Agriculture, Con- cational Land-Grant Status Act of 1994 (Pub- servation, and Trade Act of 1990 (7 U.S.C. lic Law 103–382; 7 U.S.C. 301 note) is amended SEC. 864. COMMITTEE OF NINE. 5925) is repealed. by striking ‘‘2000’’ and inserting ‘‘2002’’. Section 3(c)(3) of the Act of March 2, 1887 SEC. 841. AGRICULTURAL TELECOMMUNI- (b) INSTITUTIONAL CAPACITY BUILDING (Chapter 314; 7 U.S.C. 361c(c)(3)) is amended CATIONS PROGRAM. GRANTS.—Section 535 of the Equity in Edu- by striking from ‘‘, and shall be used’’ Section 1673(h) of the Food, Agriculture, cational Land-Grant Status Act of 1994 (Pub- through the end of the paragraph and insert- Conservation, and Trade Act of 1990 (7 U.S.C. lic Law 103–382; 7 U.S.C. 301 note) is amended ing a period. 5926(h)) is amended by striking ‘‘1995’’ and in- by striking ‘‘2000’’ each place it appears in SEC. 865. AGRICULTURAL RESEARCH FACILITIES. serting ‘‘2002’’. subsections (b)(1) and (c) and inserting (a) IN GENERAL.— SEC. 842. NATIONAL CENTERS FOR AGRICUL- ‘‘2002’’. (1) RESEARCH FACILITIES.—The Research TURAL PRODUCT QUALITY RE- SEC. 863. SMITH-LEVER ACT FUNDING FOR 1890 Facilities Act (7 U.S.C. 390 et seq.) is amend- SEARCH. LAND-GRANT COLLEGES, INCLUDING ed to read as follows: Section 1675(g)(1) of the Food, Agriculture, TUSKEGEE UNIVERSITY AND THE ‘‘SECTION 1. SHORT TITLE. Conservation, and Trade Act of 1990 (7 U.S.C. DISTRICT OF COLUMBIA. ‘‘This Act may be cited as the ‘Research 5928(g)(1)) is amended by striking ‘‘1995’’ and (a) ELIGIBILITY FOR FUNDS.—Section 3(d) of Facilities Act’. inserting ‘‘2002’’. the Act of May 8, 1914 (commonly known as SEC. 843. TURKEY RESEARCH CENTER AUTHOR- the ‘‘Smith-Lever Act’’) (38 Stat. 373, chapter ‘‘SEC. 2. DEFINITIONS. IZATION. 79; 7 U.S.C. 343(d)), is amended by adding at ‘‘In this Act: Section 1676 of the Food, Agriculture, Con- the end the following: ‘‘A college or univer- ‘‘(1) AGRICULTURAL RESEARCH FACILITY.— servation, and Trade Act of 1990 (7 U.S.C. sity eligible to receive funds under the Act of The term ‘agricultural research facility’ 5929) is repealed. August 30, 1890 (26 Stat. 417, chapter 841; 7 means a proposed facility for research in SEC. 844. SPECIAL GRANT TO STUDY CON- U.S.C. 321 et seq.), including Tuskegee Uni- food and agricultural sciences for which Fed- STRAINTS ON AGRICULTURAL versity, or section 208 of the District of Co- eral funds are requested by a college, univer- TRADE. lumbia Public Postsecondary Education Re- sity, or nonprofit institution to assist in the Section 1678 of the Food, Agriculture, Con- organization Act (Public Law 93–471; 88 Stat. construction, alteration, acquisition, mod- servation, and Trade Act of 1990 (7 U.S.C. 1428) may apply for and receive directly from ernization, renovation, or remodeling of the 5931) is repealed. the Secretary of Agriculture— facility. SEC. 845. PILOT PROJECT TO COORDINATE FOOD ‘‘(1) amounts made available under this ‘‘(2) FOOD AND AGRICULTURAL SCIENCES.— AND NUTRITION EDUCATION PRO- subsection after September 30, 1995, to carry The term ‘food and agricultural sciences’ GRAMS. out programs or initiatives for which no means— Section 1679 of the Food, Agriculture, Con- funds were made available under this sub- ‘‘(A) agriculture, including soil and water servation, and Trade Act of 1990 (7 U.S.C. section for fiscal year 1995, or any previous conservation and use, the use of organic ma- 5932) is repealed. fiscal year, as determined by the Secretary; terials to improve soil tilth and fertility, SEC. 846. ASSISTIVE TECHNOLOGY PROGRAM and plant and animal production and protection, FOR FARMERS WITH DISABILITIES. ‘‘(2) amounts made available after Septem- and plant and animal health; Section 1680 of the Food, Agriculture, Con- ber 30, 1995, to carry out programs or initia- ‘‘(B) the processing, distributing, market- servation, and Trade Act of 1990 (7 U.S.C. tives funded under this subsection prior to ing, and utilization of food and agricultural 5933) is amended— that date that are in excess of the highest products; (1) in subsection (a)(6)(B), by striking amount made available for the programs or ‘‘(C) forestry, including range manage- ‘‘1996’’ and inserting ‘‘2002’’; and initiatives under this subsection for fiscal ment, production of forest and range prod- (2) in subsection (b)(2), by striking ‘‘1996’’ year 1995, or any previous fiscal year, as de- ucts. multiple use of forest and rangelands, and inserting ‘‘2002’’. termined by the Secretary.’’. and urban forestry; SEC. 847. DEMONSTRATION PROJECTS. (b) CONFORMING AMENDMENTS.— ‘‘(D) aquaculture (as defined in section Section 2348 of the Food, Agriculture, Con- (1) The third sentence of section 1444(a) of 1404(3) of the National Agricultural Re- servation, and Trade Act of 1990 (7 U.S.C. the National Agricultural Research, Exten- search, Extension, and Teaching Policy Act 2662a) is repealed. sion, and Teaching Policy Act of 1977 (7 of 1977 (7 U.S.C. 3103(3)); SEC. 848. NATIONAL RURAL INFORMATION CEN- U.S.C. 3221(a)) is amended by inserting before ‘‘(E) human nutrition; TER CLEARINGHOUSE. the period at the end the following: ‘‘, except ‘‘(F) production inputs, such as energy, to Section 2381(e) of the Food, Agriculture, that for the purpose of this calculation, the improve productivity; and Conservation, and Trade Act of 1990 (7 U.S.C. total appropriations shall not include ‘‘(G) germ plasm collection and preserva- 3125b(e)) is amended by striking ‘‘1995’’ and amounts made available after September 30, tion. inserting ‘‘2002’’. 1995, under section 3(d) of the Act of May 8, ‘‘(3) SECRETARY.—The term ‘Secretary’ SEC. 849. GLOBAL CLIMATE CHANGE. 1914 (commonly known as the ‘Smith-Lever means the Secretary of Agriculture. (a) TECHNICAL ADVISORY COMMITTEE.—Sec- Act’) (38 Stat. 373, chapter 79; 7 U.S.C. 343(d)), ‘‘SEC. 3. REVIEW PROCESS. tion 2404 of the Food, Agriculture, Conserva- to carry out programs or initiatives for ‘‘(a) SUBMISSION TO SECRETARY.—Each pro- tion, and Trade Act of 1990 (7 U.S.C. 6703) is which no funds were made available under posal for an agricultural research facility repealed. section 3(d) of the Act for fiscal year 1995, or shall be submitted to the Secretary for re- (b) AUTHORIZATION OF APPROPRIATIONS.— any previous fiscal year, as determined by view. The Secretary shall review the propos- Section 2412 of the Food, Agriculture, Con- the Secretary, and shall not include amounts als in the order in which the proposals are servation, and Trade Act of 1990 (7 U.S.C. made available after September 30, 1995, to received. 6710) is amended by striking ‘‘1996’’ and in- carry out programs or initiatives funded ‘‘(b) APPLICATION PROCESS.—In consulta- serting ‘‘2002’’. under section 3(d) of the Act prior to that tion with the Committee on Appropriations S 1128 CONGRESSIONAL RECORD — SENATE February 7, 1996 of the Senate and Committee on Appropria- ‘‘SEC. 5. APPLICABILITY OF FEDERAL ADVISORY SEC. 868. RURAL DEVELOPMENT RESEARCH AND tions of the House of Representatives, the COMMITTEE ACT. EDUCATION. Secretary shall establish an application ‘‘The Federal Advisory Committee Act (5 Section 502 of the Rural Development Act process for the submission of proposals for U.S.C. App) and title XVIII of the Food and of 1972 (7 U.S.C. 2662) is amended— agricultural research facilities. Agriculture Act of 1977 (7 U.S.C. 2281 et. seq) (1) in subsection (a), by inserting after the ‘‘(c) CRITERIA FOR APPROVAL.— shall not apply to a panel or board created first sentence the following: ‘‘The rural de- ‘‘(1) DETERMINATION BY SECRETARY.—With solely for the purpose of reviewing applica- velopment extension programs shall also respect to each proposal for an agricultural tions or proposals submitted under this Act. promote coordinated and integrated rural research facility submitted under subsection ‘‘SEC. 6. AUTHORIZATION OF APPROPRIATIONS. community initiatives that advance and em- (a), the Secretary shall determine whether ‘‘(a) IN GENERAL.—Subject to subsection power capacity building through leadership the proposal meets the criteria set forth in (b), there are authorized to be appropriated development, entrepreneurship, business de- paragraph (2). such sums as are necessary for fiscal years velopment and management training and ‘‘(2) CRITERIA.—A proposal for an agricul- 1996 through 2002 for the study, plan, design, strategic planning to increase jobs, income, tural research facility shall meet the follow- structure, and related costs of agricultural and quality of life in rural communities.’’; ing criteria: research facilities under this Act. (2) by striking subsections (g) and (j); and ‘‘(A) NON-FEDERAL SHARE.—The proposal ‘‘(b) ALLOWABLE ADMINISTRATIVE COSTS.— (3) by redesignating subsections (h) and (i) shall certify the availability of at least a 50 Not more than 3 percent of the funds made as subsections (g) and (h) respectively. available for any project for an agricultural percent non-Federal share of the cost of the SEC. 869. HUMAN NUTRITION RESEARCH. facility. The non-Federal share shall be paid research facility shall be available for ad- ministration of the project.’’. Section 1452 of the National Agricultural in cash and may include funding from pri- (2) APPLICATION.— Research, Extension, and Teaching Policy vate sources or from units of State or local (A) CURRENT PROJECTS.—The amendment Act Amendments of 1985 (Public Law 99–198; government. made by paragraph (1), other than section 4 7 U.S.C. 3173 note) is repealed. ‘‘(B) NONDUPLICATION OF FACILITIES.—The of the Research Facilities Act (as amended SEC. 870. DAIRY GOAT RESEARCH PROGRAM. proposal shall demonstrate how the agricul- by paragraph (1)), shall not apply to any Section 1432 of the National Agricultural tural research facility would be complemen- project for an agricultural research facility Research, Extension, and Teaching Policy tary to, and not duplicative of, facilities of for which funds have been made available for Act Amendments of 1981 (Public Law 97–98; 7 colleges, universities, and nonprofit institu- a feasibility study or for any phase of the U.S.C. 3222 note) is amended— tions, and facilities of the Agricultural Re- project prior to October 1, 1995. (1) in subsection (a), by striking ‘‘(a)’’; and search Service, within the State and region. (B) STRATEGIC PLAN.—The strategic plan (2) by striking subsection (b). ‘‘(C) NATIONAL RESEARCH PRIORITIES.—The required by section 4 of the Act shall apply SEC. 871. GRANTS TO UPGRADE 1890 LAND-GRANT proposal shall demonstrate how the agricul- to all federally supported agricultural re- COLLEGE EXTENSION FACILITIES. tural research facility would serve— search facilities, including projects funded (a) IN GENERAL.—Section 1416 of the Food ‘‘(i) 1 or more of the national research poli- prior to the effective date of this title. Security Act of 1985 (7 U.S.C. 3224) is re- cies and priorities set forth in section 1402 of (b) AUTHORIZATION OF APPROPRIATIONS FOR pealed. the National Agricultural Research, Exten- FEDERAL FACILITIES.—Section 1431 of the Na- (b) TECHNICAL AMENDMENT.—The table of sion, and Teaching Policy Act of 1977 (7 tional Agricultural Research, Extension, and contents of the Food Security Act of 1985 U.S.C. 3101); and Teaching Policy Act Amendments of 1985 (Public Law 99–198; 99 Stat. 1354) is amended ‘‘(ii) regional needs. (Public Law 99–198; 99 Stat. 1556) is amend- by striking the item relating to section 1416. ‘‘(D) LONG-TERM SUPPORT.—The proposal ed— shall demonstrate that the recipient college, SEC. 872. STUTTGART NATIONAL AQUACULTURE (1) in subsection (a)— RESEARCH CENTER. university, or nonprofit institution has the (A) by striking ‘‘(a)’’; and (a) TRANSFER OF FUNCTIONS TO THE SEC- ability and commitment to support the long- (B) by striking ‘‘1995’’ and inserting ‘‘2002’’; RETARY OF AGRICULTURE.— term, ongoing operating costs of— and (1) TITLE OF PUBLIC LAW 85–342.—The title of ‘‘(i) the agricultural research facility after (2) by striking subsection (b). Public Law 85–342 (16 U.S.C. 778 et seq.) is the facility is completed; and (c) CONFORMING AMENDMENT.—Section amended by striking ‘‘Secretary of the Inte- ‘‘(ii) each program to be based at the facil- 1463(a) of the National Agricultural Re- rior’’ and inserting ‘‘Secretary of Agri- ity. search, Extension, and Teaching Policy Act culture’’. ‘‘(E) STRATEGIC PLAN.—After the develop- of 1977 (7 U.S.C. 3311(a)) is amended by strik- (2) AUTHORIZATION.—The first section of ment of the strategic plan required by sec- ing ‘‘1416,’’. Public Law 85–342 (16 U.S.C. 778) is amend- tion 4, the proposal shall demonstrate how SEC. 866. NATIONAL COMPETITIVE RESEARCH ed— the agricultural research facility reflects the INITIATIVE. (A) by striking ‘‘Secretary of the Interior’’ strategic plan for Federal research facilities. Subsection (b)(10) of the Competitive, Spe- and all that follows through ‘‘directed to’’ ‘‘(d) EVALUATION OF PROPOSALS.—Not later cial, and Facilities Research Grant Act (7 than 90 days after receiving a proposal under U.S.C. 450i(b)(10)) is amended— and inserting ‘‘Secretary of Agriculture subsection (a), the Secretary shall— (1) by striking ‘‘OF APPROPRIATIONS.— shall’’; ‘‘(1) evaluate and assess the merits of the There’’ and inserting the following: ‘‘AND (B) by striking ‘‘station and stations’’ and proposal, including the extent to which the AVAILABILITY OF APPROPRIATIONS.— inserting ‘‘1 or more centers’’; and proposal meets the criteria set forth in sub- ‘‘(A) IN GENERAL.—There’’; (C) in paragraph (5), by striking ‘‘Depart- section (c); and (2) by striking ‘‘fiscal year 1995’’ and in- ment of Agriculture’’ and inserting ‘‘Sec- ‘‘(2) report to the Committee on Appropria- serting ‘‘each of fiscal years 1995 through retary of the Interior’’. tions of the Senate and Committee on Appro- 2002’’; (3) AUTHORITY.—Section 2 of Public Law priations of the House of Representatives on (3) by striking ‘‘(A) not’’ and inserting the 85–342 (16 U.S.C. 778a) is amended by striking the results of the evaluation and assessment. following: ‘‘, the Secretary’’ and all that follows through ‘‘authorized’’ and inserting ‘‘, the ‘‘SEC. 4. STRATEGIC PLAN FOR FEDERAL RE- ‘‘(i) not’’; SEARCH FACILITIES. (4) by striking ‘‘(B) not’’ and inserting the Secretary of Agriculture is authorized’’. ‘‘(a) IN GENERAL.—Not later than Septem- following: (4) ASSISTANCE.—Section 3 of Public Law ber 30, 1997, the Secretary shall develop a ‘‘(ii) not’’; 85–342 (16 U.S.C. 778b) is amended— comprehensive plan for the development, (5) in clause (ii) (as so designated), by (A) by striking ‘‘Secretary of the Interior’’ construction, modernization, consolidation, striking ‘‘20 percent’’ and inserting ‘‘40 per- and inserting ‘‘Secretary of Agriculture’’; and closure of federally supported agricul- cent’’; and tural research facilities. (6) by striking ‘‘(C) not’’ and inserting the (B) by striking ‘‘Department of Agri- ‘‘(b) FACTORS.—In developing the plan, the following: culture’’ and inserting ‘‘Secretary of the In- Secretary shall consider— ‘‘(iii) not’’; terior’’. ‘‘(1) the need to increase agricultural pro- (7) by striking ‘‘(D) not’’ and inserting the (b) TRANSFER OF FISH FARMING EXPERI- ductivity and to enhance the competitive- following: MENTAL LABORATORY TO DEPARTMENT OF AG- ness of the United States agriculture and ‘‘(iv) not’’; RICULTURE.— food industry as set forth in section 1402 of (8) by striking ‘‘(E) not’’ and inserting the (1) DESIGNATION OF STUTTGART NATIONAL the National Agricultural Research, Exten- following: AQUACULTURE RESEARCH CENTER.— sion, and Teaching Policy Act of 1977 (7 ‘‘(v) not’’; and (A) IN GENERAL.—The Fish Farming Exper- U.S.C. 3101); and (9) by adding at the end the following: imental Laboratory in Stuttgart, Arkansas ‘‘(2) the findings of the National Academy ‘‘(B) AVAILABILITY.—Funds made available (including the facilities in Kelso, Arkansas), of Sciences with respect to programmatic under subparagraph (A) shall be available for shall be known and designated as the ‘‘Stutt- and scientific priorities relating to agri- obligation for a period of 2 years from the be- gart National Aquaculture Research Cen- culture. ginning of the fiscal year for which the funds ter’’. ‘‘(c) IMPLEMENTATION.—The plan shall be are made available.’’. (B) REFERENCES.—Any reference in a law, developed for implementation over the 10-fis- SEC. 867. COTTON CROP REPORTS. map, regulation, document, paper, or other cal year period beginning with fiscal year The Act of May 3, 1924 (43 Stat. 115, chapter record of the United States to the laboratory 1998. 149; 7 U.S.C. 475), is repealed. referred to in subparagraph (A) shall be February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1129

deemed to be a reference to the ‘‘Stuttgart (d) COORDINATION OF NATIONAL ACTIVITIES liaison of the Department to the Secretary National Aquaculture Research Center’’. REGARDING AQUACULTURE.—The first sen- of Agriculture.’’. (2) TRANSFER OF LABORATORY TO THE DE- tence of section 6(a) of the National Aqua- (f) AUTHORIZATION OF APPROPRIATIONS.— PARTMENT OF AGRICULTURE.—Subject to sec- culture Act of 1980 (16 U.S.C. 2805(a)) is Section 11 of the National Aquaculture Act tion 1531 of title 31, United States Code, not amended by striking ‘‘(f)’’ and inserting of 1980 (as redesignated by subsection (e)(1)) later than 90 days after the effective date of ‘‘(e)’’. is amended by striking ‘‘the fiscal years 1991, this title, there are transferred to the De- (e) NATIONAL POLICY FOR PRIVATE AQUA- 1992, and 1993’’ each place it appears and in- partment of Agriculture— CULTURE.—The National Aquaculture Act of serting ‘‘fiscal years 1991 through 2002’’. (A) the personnel employed in connection 1980 (16 U.S.C. 2801 et seq.) is amended— SEC. 874. EXPANSION OF AUTHORITIES RELATED with the laboratory referred to in paragraph (1) by redesignating sections 7, 8, 9, 10, and TO THE NATIONAL ARBORETUM. (1); 11 as sections 8, 9, 10, 11, and 12, respectively; (a) SOLICITATION OF GIFTS, BENEFITS, AND (B) the assets, liabilities, contracts, and and DEVISES.—The first sentence of section 5 of real and personal property of the laboratory; (2) by inserting after section 6 (16 U.S.C. the Act of March 4, 1927 (89 Stat. 683; 20 (C) the records of the laboratory; and 2805) the following: U.S.C. 195), is amended by inserting ‘‘so- (D) the unexpended balance of appropria- ‘‘SEC. 7. NATIONAL POLICY FOR PRIVATE AQUA- licit,’’ after ‘‘authorized to’’. CULTURE. tions, authorizations, allocations and other (b) CONCESSIONS, FEES, AND VOLUNTARY ‘‘(a) IN GENERAL.—In consultation with the funds employed, held, arising from, available SERVICES.—The Act of March 4, 1927 (44 Stat. to, or to be made available in connection Secretary of Commerce and the Secretary of 1422, chapter 505; 20 U.S.C. 191 et seq.), is with the laboratory. the Interior, the Secretary shall coordinate amended by adding at the end the following: (3) NONDUPLICATION.—The research center and implement a national policy for private aquaculture in accordance with this section. ‘‘SEC. 6. CONCESSIONS, FEES, AND VOLUNTARY referred to in paragraph (1)(A) shall be com- SERVICES. In developing the policy, the Secretary may plementary to, and not duplicative of, facili- ‘‘(a) IN GENERAL.—Notwithstanding the consult with other agencies and organiza- ties of colleges, universities, and nonprofit Federal Property and Administrative Serv- tions. institutions, and facilities of the Agricul- ices Act of 1949 (40 U.S.C. 471 et seq.) and sec- ‘‘(b) DEPARTMENT OF AGRICULTURE AQUA- tural Research Service, within the State and tion 321 of the Act of June 30, 1932 (47 Stat. CULTURE PLAN.— region, as determined by the Administrator 412, chapter 314; 40 U.S.C. 303b), the Sec- of the Service. ‘‘(1) IN GENERAL.—The Secretary shall de- velop and implement a Department of Agri- retary of Agriculture, in furtherance of the SEC. 873. NATIONAL AQUACULTURE POLICY, culture Aquaculture Plan (referred to in this mission of the National Arboretum, may— PLANNING, AND DEVELOPMENT. section as the ‘Department plan’) for a uni- ‘‘(1) negotiate agreements granting conces- (a) DEFINITIONS.—Section 3 of the National fied aquaculture program of the Department sions at the National Arboretum to non- Aquaculture Act of 1980 (16 U.S.C. 2802) is of Agriculture (referred to in this section as profit scientific or educational organizations amended— the ‘Department’) to support the develop- the interests of which are complementary to (1) in paragraph (1), by striking ‘‘the propa- ment of private aquaculture. the mission of the National Arboretum, ex- gation’’ and all that follows through the pe- cept that the net proceeds of the organiza- ‘‘(2) ELEMENTS OF DEPARTMENT PLAN.—The riod at the end and inserting the following: Department plan shall address— tions from the concessions shall be used ex- ‘‘the commercially controlled cultivation of ‘‘(A) programs of individual agencies of the clusively for research and educational work aquatic plants, animals, and microorga- Department related to aquaculture that are for the benefit of the National Arboretum; nisms, but does not include private for-profit consistent with Department programs relat- ‘‘(2) provide by concession, on such terms ocean ranching of Pacific salmon in a State ed to other areas of agriculture, including as the Secretary of Agriculture considers ap- in which the ranching is prohibited by law.’’; livestock, crops, products, and commodities propriate and necessary, for commercial (2) in paragraph (3), by striking ‘‘or aquatic under the jurisdiction of agencies of the De- services for food, drink, and nursery sales, if plant’’ and inserting ‘‘aquatic plant, or partment; an agreement for a permanent concession microorganism’’; ‘‘(B) the treatment of cultivated aquatic under this paragraph is negotiated with a (3) by redesignating paragraphs (7) through animals as livestock and cultivated aquatic qualified person submitting a proposal after (9) as paragraphs (8) through (10), respec- plants as agricultural crops; and due consideration of all proposals received tively; and ‘‘(C) means for effective coordination and after the Secretary of Agriculture provides (4) by inserting after paragraph (6) the fol- implementation of aquaculture activities reasonable public notice of the intent of the lowing: and programs within the Department, in- Secretary to enter into such an agreement; ‘‘(7) The term ‘private aquaculture’ means cluding individual agency commitments of ‘‘(3) dispose of excess property, including the commercially controlled cultivation of personnel and resources. excess plants and fish, in a manner designed aquatic plants, animals, and microorganisms ‘‘(c) NATIONAL AQUACULTURE INFORMATION to maximize revenue from any sale of the other than cultivation carried out by the CENTER.—In carrying out section 5, the Sec- property, including by way of public auction, Federal Government, any State or local gov- retary may maintain and support a National except that this paragraph shall not apply to ernment, or an Indian tribe recognized by Aquaculture Information Center at the Na- the free dissemination of new varieties of the Bureau of Indian Affairs.’’. tional Agricultural Library as a repository seeds and germ plasm in accordance with (b) NATIONAL AQUACULTURE DEVELOPMENT for information on national and inter- section 520 of the Revised Statutes (com- PLAN.—Section 4 of the National Aqua- national aquaculture. monly known as the ‘Department of Agri- culture Act of 1980 (16 U.S.C. 2803) is amend- ‘‘(d) TREATMENT OF AQUACULTURE.—The culture Organic Act of 1862’) (7 U.S.C. 2201); ed— Secretary shall treat— ‘‘(4) charge such fees as the Secretary of (1) in subsection (c)— ‘‘(1) private aquaculture as agriculture; Agriculture considers reasonable for tem- (A) in subparagraph (A), by adding ‘‘and’’ and porary use by individuals or groups of Na- at the end; ‘‘(2) commercially cultivated aquatic ani- tional Arboretum facilities and grounds for (B) in subparagraph (B), by striking ‘‘; mals, plants, and microorganisms, and prod- any purpose consistent with the mission of and’’ and inserting a period; and ucts of the animals, plants, and microorga- the National Arboretum; (C) by striking subparagraph (C); nisms, produced by private persons and ‘‘(5) charge such fees as the Secretary of (2) in the second sentence of subsection (d), transported or moved in standard commod- Agriculture considers reasonable for the use by striking ‘‘Secretaries determine that’’ ity channels as agricultural livestock, crops, of the National Arboretum for commercial and inserting ‘‘Secretary, in consultation and commodities. photography or cinematography; with the Secretary of Commerce, the Sec- ‘‘(e) PRIVATE AQUACULTURE POLICY COORDI- ‘‘(6) publish, in print and electronically retary of the Interior, and the heads of such NATION, DEVELOPMENT, AND IMPLEMENTA- and without regard to laws relating to print- other agencies as the Secretary determines TION.— ing by the Federal Government, informa- are appropriate, determines that’’; and ‘‘(1) RESPONSIBILITY.—The Secretary shall tional brochures, books, and other publica- (3) in subsection (e), by striking ‘‘Secretar- have responsibility for coordinating, devel- tions concerning the National Arboretum or ies’’ and inserting ‘‘Secretary, in consulta- oping, and carrying out policies and pro- the collections of the Arboretum; and tion with the Secretary of Commerce, the grams for private aquaculture. ‘‘(7) license use of the National Arboretum Secretary of the Interior, and the heads of ‘‘(2) DUTIES.—The Secretary shall— name and logo for public service or commer- such other agencies as the Secretary deter- ‘‘(A) coordinate all intradepartmental cial uses. mines are appropriate,’’. functions and activities relating to private ‘‘(b) USE OF FUNDS.—Any funds received or (c) FUNCTIONS AND POWERS OF SECRETAR- aquaculture; and collected by the Secretary of Agriculture as IES.—Section 5(b)(3) of the National Aqua- ‘‘(B) establish procedures for the coordina- a result of activities described in subsection culture Act of 1980 (16 U.S.C. 2804(b)(3)) is tion of functions, and consultation with, the (a) shall be retained in a special fund in the amended by striking ‘‘Secretaries deem’’ and coordinating group. Treasury for the use and benefit of the Na- inserting ‘‘Secretary, in consultation with ‘‘(f) LIAISON WITH DEPARTMENTS OF COM- tional Arboretum as the Secretary of Agri- the Secretary of Commerce, the Secretary of MERCE AND THE INTERIOR.—The Secretary of culture considers appropriate. the Interior, and the heads of such other Commerce and the Secretary of the Interior ‘‘(c) ACCEPTANCE OF VOLUNTARY SERV- agencies as the Secretary determines are ap- shall each designate an officer or employee ICES.—The Secretary of Agriculture may ac- propriate, consider’’. of the Department of the Secretary to be the cept the voluntary services of organizations S 1130 CONGRESSIONAL RECORD — SENATE February 7, 1996 described in subsection (a)(1), and the vol- (2) maintain and expand domestic and for- (12) PROMOTION.—The term ‘‘promotion’’ untary services of individuals (including em- eign markets and uses for popcorn. means an action, including paid advertising, ployees of the National Arboretum), for the (c) PURPOSES.—The purposes of this sub- to enhance the image or desirability of pop- benefit of the National Arboretum.’’. title are to— corn. SEC. 875. STUDY OF AGRICULTURAL RESEARCH (1) maintain and expand the markets for (13) RESEARCH.—The term ‘‘research’’ SERVICE. all popcorn products in a manner that— means any type of study to advance the (a) STUDY.—The Secretary of Agriculture (A) is not designed to maintain or expand image, desirability, marketability, produc- shall request the National Academy of any individual share of a producer or proc- tion, product development, quality, or nutri- Sciences to conduct a study of the role and essor of the market; tional value of popcorn. mission of the Agricultural Research Serv- (B) does not compete with or replace indi- (14) SECRETARY.—The term ‘‘Secretary’’ ice. The study shall— vidual advertising or promotion efforts de- means the Secretary of Agriculture. (1) evaluate the strength of science of the signed to promote individual brand name or (15) STATE.—The term ‘‘State’’ means each Service and the relevance of the science to trade name popcorn products; and of the 50 States and the District of Columbia. national priorities; (C) authorizes and funds programs that re- (16) UNITED STATES.—The term ‘‘United (2) examine how the work of the Service re- sult in government speech promoting gov- States’’ means all of the States. lates to the capacity of the United States ag- ernment objectives; and SEC. 904. ISSUANCE OF ORDERS. ricultural research, education, and extension (2) establish a nationally coordinated pro- (a) IN GENERAL.—To effectuate the policy system overall; and gram for popcorn promotion, research, described in section 902(b), the Secretary, (3) include recommendations, as appro- consumer information, and industry infor- subject to subsection (b), shall issue 1 or priate. mation. more orders applicable to processors. An (b) REPORT.—Not later than 18 months (d) STATUTORY CONSTRUCTION.—This sub- order shall be applicable to all popcorn pro- after the effective date of this title, the Sec- title treats processors equitably. Nothing in duction and marketing areas in the United retary shall prepare a report that describes this subtitle— States. Not more than 1 order shall be in ef- the results of the study conducted under sub- (1) provides for the imposition of a trade fect under this subtitle at any 1 time. section (a) and submit the report to the barrier to the entry into the United States of Committee on Agriculture of the House of imported popcorn for the domestic market; (b) PROCEDURE.— Representatives and the Committee on Agri- or (1) PROPOSAL OR REQUEST FOR ISSUANCE.— culture, Nutrition, and Forestry of the Sen- (2) provides for the control of production or The Secretary may propose the issuance of ate. otherwise limits the right of any individual an order, or an association of processors or (c) FUNDING.—The Secretary shall use to processor to produce popcorn. any other person that would be affected by an order may request the issuance of, and carry out this section not more than $500,000 SEC. 903. DEFINITIONS. of funds made available to the Agricultural submit a proposal for, an order. In this subtitle (except as otherwise spe- Research Service for research. (2) NOTICE AND COMMENT CONCERNING PRO- cifically provided): TITLE IX—AGRICULTURAL PROMOTION POSED ORDER.—Not later than 60 days after (1) BOARD.—The term ‘‘Board’’ means the the receipt of a request and proposal for an Subtitle A—Popcorn Popcorn Board established under section order under paragraph (1), or at such time as SEC. 901. SHORT TITLE. 905(b). the Secretary determines to propose an This subtitle may be cited as the ‘‘Popcorn (2) COMMERCE.—The term ‘‘commerce’’ order, the Secretary shall publish a proposed Promotion, Research, and Consumer Infor- means interstate, foreign, or intrastate com- order and give due notice and opportunity mation Act’’. merce. for public comment on the proposed order. SEC. 902. FINDINGS AND DECLARATION OF POL- (3) CONSUMER INFORMATION.—The term (3) ISSUANCE OF ORDER.—After notice and ICY. ‘‘consumer information’’ means information opportunity for public comment under para- (a) FINDINGS.—Congress finds that— and programs that will assist consumers and graph (2), the Secretary shall issue an order, (1) popcorn is an important food that is a other persons in making evaluations and de- taking into consideration the comments re- valuable part of the human diet; cisions regarding the purchase, preparation, ceived and including in the order such provi- (2) the production and processing of pop- and use of popcorn. sions as are necessary to ensure that the corn plays a significant role in the economy (4) DEPARTMENT.—The term ‘‘Department’’ order conforms to this subtitle. The order of the United States in that popcorn is proc- means the Department of Agriculture. shall be issued and become effective not essed by several popcorn processors, distrib- (5) INDUSTRY INFORMATION.—The term ‘‘in- later than 150 days after the date of publica- uted through wholesale and retail outlets, dustry information’’ means information and tion of the proposed order. and consumed by millions of people through- programs that will lead to the development (c) AMENDMENTS.—The Secretary, as appro- of— out the United States and foreign countries; priate, may amend an order. The provisions (A) new markets, new marketing strate- (3) popcorn must be of high quality, readily of this subtitle applicable to an order shall gies, or increased efficiency for the popcorn available, handled properly, and marketed be applicable to any amendment to an order, industry; or efficiently to ensure that the benefits of pop- except that an amendment to an order may (B) activities to enhance the image of the corn are available to the people of the United not require a referendum to become effec- popcorn industry. States; tive. (4) the maintenance and expansion of exist- (6) MARKETING.—The term ‘‘marketing’’ ing markets and uses and the development of means the sale or other disposition of SEC. 905. REQUIRED TERMS IN ORDERS. new markets and uses for popcorn are vital unpopped popcorn for human consumption in (a) IN GENERAL.—An order shall contain to the welfare of processors and persons con- a channel of commerce, but does not include the terms and conditions specified in this cerned with marketing, using, and producing a sale or disposition to or between proc- section. popcorn for the market, as well as to the ag- essors. (b) ESTABLISHMENT AND MEMBERSHIP OF ricultural economy of the United States; (7) ORDER.—The term ‘‘order’’ means an POPCORN BOARD.— (5) the cooperative development, financing, order issued under section 904. (1) IN GENERAL.—The order shall provide and implementation of a coordinated pro- (8) PERSON.—The term ‘‘person’’ means an for the establishment of, and appointment of gram of popcorn promotion, research, individual, group of individuals, partnership, members to, a Popcorn Board that shall con- consumer information, and industry infor- corporation, association, or cooperative, or sist of not fewer than 4 members and not mation is necessary to maintain and expand any other legal entity. more than 9 members. markets for popcorn; and (9) POPCORN.—The term ‘‘popcorn’’ means (2) NOMINATIONS.—The members of the (6) popcorn moves in interstate and foreign unpopped popcorn (Zea Mays L) that is— Board shall be processors appointed by the commerce, and popcorn that does not move (A) commercially grown; Secretary from nominations submitted by in those channels of commerce directly bur- (B) processed in the United States by shell- processors in a manner authorized by the dens or affects interstate commerce in pop- ing, cleaning, or drying; and Secretary, subject to paragraph (3). Not corn. (C) introduced into a channel of commerce. more than 1 member may be appointed to (b) POLICY.—It is the policy of Congress (10) PROCESS.—The term ‘‘process’’ means the Board from nominations submitted by that it is in the public interest to authorize to shell, clean, dry, and prepare popcorn for any 1 processor. the establishment, through the exercise of the market, but does not include packaging (3) GEOGRAPHICAL DIVERSITY.—In making the powers provided in this subtitle, of an or- popcorn for the market without also engag- appointments, the Secretary shall take into derly procedure for developing, financing ing in another activity described in this account, to the extent practicable, the geo- (through adequate assessments on unpopped paragraph. graphical distribution of popcorn production popcorn processed domestically), and carry- (11) PROCESSOR.—The term ‘‘processor’’ throughout the United States. ing out an effective, continuous, and coordi- means a person engaged in the preparation of (4) TERMS.—The term of appointment of nated program of promotion, research, unpopped popcorn for the market who owns each member of the Board shall be 3 years, consumer information, and industry infor- or shares the ownership and risk of loss of except that the members appointed to the mation designed to— the popcorn and who processes and distrib- initial Board shall serve, proportionately, for (1) strengthen the position of the popcorn utes over 4,000,000 pounds of popcorn in the terms of 2, 3, and 4 years, as determined by industry in the marketplace; and market per year. the Secretary. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1131

(5) COMPENSATION AND EXPENSES.—A mem- (f) ASSESSMENTS.— (2) USE OF INFORMATION.—The Secretary ber of the Board shall serve without com- (1) PROCESSORS.—The order shall provide shall authorize the use of information re- pensation, but shall be reimbursed for the that each processor marketing popcorn in garding processors that may be accumulated expenses of the member incurred in the per- the United States or for export shall, in the under a law or regulation other than this formance of duties for the Board. manner prescribed in the order, pay assess- subtitle or a regulation issued under this (c) POWERS AND DUTIES OF BOARD.—The ments and remit the assessments to the subtitle. The information shall be made order shall define the powers and duties of Board. available to the Secretary as appropriate for the Board, which shall include the power and (2) DIRECT MARKETERS.—A processor that the administration or enforcement of this duty— markets popcorn produced by the processor subtitle, the order, or any regulation issued (1) to administer the order in accordance directly to consumers shall pay and remit under this subtitle. with the terms and provisions of the order; the assessments on the popcorn directly to (3) CONFIDENTIALITY.— (2) to make regulations to effectuate the the Board in the manner prescribed in the (A) IN GENERAL.—Subject to subparagraphs terms and provisions of the order; order. (B), (C), and (D), all information obtained by (3) to appoint members of the Board to (3) RATE.— the Secretary under paragraphs (1) and (2) serve on an executive committee; (A) IN GENERAL.—The rate of assessment shall be kept confidential by all officers, em- (4) to propose, receive, evaluate, and ap- prescribed in the order shall be a rate estab- ployees, and agents of the Board and the De- prove budgets, plans, and projects of pro- lished by the Board but not more than $.08 partment. motion, research, consumer information, and per hundredweight of popcorn. (B) DISCLOSURE BY SECRETARY.—Informa- industry information, and to contract with (B) ADJUSTMENT OF RATE.—The order shall tion referred to in subparagraph (A) may be appropriate persons to implement the plans provide that the Board, with the approval of disclosed if— or projects; the Secretary, may raise or lower the rate of (i) the Secretary considers the information (5) to accept and receive voluntary con- assessment annually up to a maximum of relevant; tributions, gifts, and market promotion or $.08 per hundredweight of popcorn. (ii) the information is revealed in a suit or similar funds; (4) USE OF ASSESSMENTS.— administrative hearing brought at the re- (6) to invest, pending disbursement under a (A) IN GENERAL.—Subject to subparagraphs quest of the Secretary, or to which the Sec- plan or project, funds collected through as- (B) and (C) and subsection (c)(5), the order retary or any officer of the United States is sessments authorized under subsection (f), shall provide that the assessments collected a party; and only in— shall be used by the Board— (iii) the information relates to the order. (A) obligations of the United States or an (i) to pay expenses incurred in implement- (C) DISCLOSURE TO OTHER AGENCY OF FED- agency of the United States; ing and administering the order, with provi- ERAL GOVERNMENT.— (B) general obligations of a State or a po- sion for a reasonable reserve; and (i) IN GENERAL.—No information obtained litical subdivision of a State; (ii) to cover such administrative costs as under the authority of this subtitle may be (C) an interest-bearing account or certifi- are incurred by the Secretary, except that made available to another agency or officer cate of deposit of a bank that is a member of the administrative costs incurred by the Sec- of the Federal Government for any purpose the Federal Reserve System; or retary (other than any legal expenses in- other than the implementation of this sub- (D) obligations fully guaranteed as to prin- curred to defend and enforce the order) that title and any investigatory or enforcement cipal and interest by the United States; may be reimbursed by the Board may not ex- activity necessary for the implementation of (7) to receive, investigate, and report to ceed 15 percent of the projected annual reve- this subtitle. the Secretary complaints of violations of the nues of the Board. (ii) PENALTY.—A person who knowingly order; and (B) EXPENDITURES BASED ON SOURCE OF AS- violates this subparagraph shall, on convic- (8) to recommend to the Secretary amend- SESSMENTS.—In implementing plans and tion, be subject to a fine of not more than ments to the order. projects of promotion, research, consumer $1,000 or to imprisonment for not more than (d) PLANS AND BUDGETS.— information, and industry information, the 1 year, or both, and if an officer, employee, (1) IN GENERAL.—The order shall provide Board shall expend funds on— or agent of the Board or the Department, that the Board shall submit to the Secretary (i) plans and projects for popcorn marketed shall be removed from office or terminated for approval any plan or project of pro- in the United States or Canada in proportion from employment, as applicable. motion, research, consumer information, or to the amount of assessments collected on (D) GENERAL STATEMENTS.—Nothing in this industry information. domestically marketed popcorn; and paragraph prohibits— (2) BUDGETS.—The order shall require the (ii) plans and projects for exported popcorn (i) the issuance of general statements, Board to submit to the Secretary for ap- in proportion to the amount of assessments based on the reports, of the number of per- proval budgets on a fiscal year basis of the collected on exported popcorn. sons subject to the order or statistical data anticipated expenses and disbursements of (C) NOTIFICATION.—If the administrative collected from the reports, if the statements the Board in the implementation of the costs incurred by the Secretary that are re- do not identify the information provided by order, including projected costs of plans and imbursed by the Board exceed 10 percent of any person; or projects of promotion, research, consumer the projected annual revenues of the Board, (ii) the publication, by direction of the information, and industry information. the Secretary shall notify as soon as prac- Secretary, of the name of a person violating (e) CONTRACTS AND AGREEMENTS.— ticable the Committee on Agriculture of the the order, together with a statement of the (1) IN GENERAL.—The order shall provide House of Representatives and the Committee particular provisions of the order violated by that the Board may enter into contracts or on Agriculture, Nutrition, and Forestry of the person. agreements for the implementation and car- the Senate. (j) OTHER TERMS AND CONDITIONS.—The rying out of plans or projects of promotion, (g) PROHIBITION ON USE OF FUNDS.—The order shall contain such terms and condi- research, consumer information, or industry order shall prohibit any funds collected by tions, consistent with this subtitle, as are information, including contracts with a the Board under the order from being used to necessary to effectuate this subtitle, includ- processor organization, and for the payment influence government action or policy, other ing regulations relating to the assessment of of the cost of the plans or projects with than the use of funds by the Board for the de- late payment charges. funds collected by the Board under the order. velopment and recommendation to the Sec- SEC. 906. REFERENDA. (2) REQUIREMENTS.—A contract or agree- retary of amendments to the order. (a) INITIAL REFERENDUM.— ment under paragraph (1) shall provide (h) BOOKS AND RECORDS OF THE BOARD.— (1) IN GENERAL.—Within the 60-day period that— The order shall require the Board to— immediately preceding the effective date of (A) the contracting party shall develop and (1) maintain such books and records (which an order, as provided in section 904(b)(3), the submit to the Board a plan or project, to- shall be available to the Secretary for in- Secretary shall conduct a referendum among gether with a budget that shows the esti- spection and audit) as the Secretary may processors who, during a representative pe- mated costs to be incurred for the plan or prescribe; riod as determined by the Secretary, have project; (2) prepare and submit to the Secretary, been engaged in processing, for the purpose (B) the plan or project shall become effec- from time to time, such reports as the Sec- of ascertaining whether the order shall go tive on the approval of the Secretary; and retary may prescribe; and into effect. (C) the contracting party shall keep accu- (3) account for the receipt and disburse- (2) APPROVAL OF ORDER.—The order shall rate records of each transaction of the party, ment of all funds entrusted to the Board. become effective, as provided in section account for funds received and expended, (i) BOOKS AND RECORDS OF PROCESSORS.— 904(b), only if the Secretary determines that make periodic reports to the Board of activi- (1) MAINTENANCE AND REPORTING OF INFOR- the order has been approved by not less than ties conducted, and make such other reports MATION.—The order shall require that each a majority of the processors voting in the as the Board or the Secretary may require. processor of popcorn for the market shall— referendum and if the majority processed (3) PROCESSOR ORGANIZATIONS.—The order (A) maintain, and make available for in- more than 50 percent of the popcorn certified shall provide that the Board may contract spection, such books and records as are re- as having been processed, during the rep- with processor organizations for any other quired by the order; and resentative period, by the processors voting. services. The contract shall include provi- (B) file reports at such time, in such man- (b) ADDITIONAL REFERENDA.— sions comparable to the provisions required ner, and having such content as is prescribed (1) IN GENERAL.—Not earlier than 3 years by paragraph (2). in the order. after the effective date of an order approved S 1132 CONGRESSIONAL RECORD — SENATE February 7, 1996

under subsection (a), on the request of the (3) REMANDS.—If the court determines, promotion organized and operated under the Board or a representative group of proc- under paragraph (1), that a ruling issued laws of the United States or any State. essors, as described in paragraph (2), the Sec- under subsection (a)(4) is not in accordance SEC. 911. REGULATIONS. retary may conduct additional referenda to with applicable law, the court shall remand The Secretary may issue such regulations determine whether processors favor the ter- the matter to the Secretary with direc- as are necessary to carry out this subtitle. mination or suspension of the order. tions— SEC. 912. AUTHORIZATION OF APPROPRIATIONS. (2) REPRESENTATIVE GROUP OF PROC- (A) to make such ruling as the court shall There are authorized to be appropriated ESSORS.—An additional referendum on an determine to be in accordance with law; or such sums as are necessary to carry out this order shall be conducted if the referendum is (B) to take such further proceedings as, in subtitle. Amounts made available under this requested by 30 percent or more of the num- the opinion of the court, the law requires. section or otherwise made available to the ber of processors who, during a representa- (c) ENFORCEMENT.—The pendency of pro- Department, and amounts made available tive period as determined by the Secretary, ceedings instituted under subsection (a) may under any other marketing or promotion have been engaged in processing. not impede, hinder, or delay the Secretary or order, may not be used to pay any adminis- (3) DISAPPROVAL OF ORDER.—If the Sec- the Attorney General from taking action trative expense of the Board. retary determines, in a referendum con- under section 908. Subtitle B—Canola and Rapeseed ducted under paragraph (1), that suspension SEC. 908. ENFORCEMENT. SEC. 921. SHORT TITLE. or termination of the order is favored by at (a) IN GENERAL.—The Secretary may issue This subtitle may be cited as the ‘‘Canola least 2⁄3 of the processors voting in the ref- an enforcement order to restrain or prevent and Rapeseed Research, Promotion, and erendum, the Secretary shall— any person from violating an order or regula- Consumer Information Act’’. (A) suspend or terminate, as appropriate, tion issued under this subtitle and may as- SEC. 922. FINDINGS AND DECLARATION OF POL- collection of assessments under the order not sess a civil penalty of not more than $1,000 ICY. later than 180 days after the date of deter- for each violation of the enforcement order, (a) FINDINGS.—Congress finds that— mination; and after an opportunity for an administrative (1) canola and rapeseed products are an im- (B) suspend or terminate the order, as ap- hearing, if the Secretary determines that the portant and nutritious part of the human propriate, in an orderly manner as soon as administration and enforcement of the order diet; practicable after the date of determination. and this subtitle would be adequately served (2) the production of canola and rapeseed (c) COSTS OF REFERENDUM.—The Secretary by such a procedure. products plays a significant role in the econ- shall be reimbursed from assessments col- (b) JURISDICTION.—The district courts of omy of the United States in that canola and lected by the Board for any expenses in- the United States are vested with jurisdic- rapeseed products are produced by thousands curred by the Secretary in connection with tion specifically to enforce, and to prevent of canola and rapeseed producers, processed the conduct of any referendum under this and restrain any person from violating, an by numerous processing entities, and canola section. order or regulation issued under this sub- and rapeseed products produced in the Unit- (d) METHOD OF CONDUCTING REFERENDUM.— title. ed States are consumed by people through- Subject to this section, a referendum con- (c) REFERRAL TO ATTORNEY GENERAL.—A out the United States and foreign countries; ducted under this section shall be conducted civil action authorized to be brought under (3) canola, rapeseed, and canola and in such manner as is determined by the Sec- this section shall be referred to the Attorney rapeseed products should be readily available retary. General for appropriate action. and marketed efficiently to ensure that con- (e) CONFIDENTIALITY OF BALLOTS AND SEC. 909. INVESTIGATIONS AND POWER TO SUB- sumers have an adequate supply of canola OTHER INFORMATION.— POENA. and rapeseed products at a reasonable price; (1) IN GENERAL.—The ballots and other in- (a) INVESTIGATIONS.—The Secretary may (4) the maintenance and expansion of exist- formation or reports that reveal or tend to make such investigations as the Secretary ing markets and development of new mar- reveal the vote of any processor, or any busi- considers necessary— kets for canola, rapeseed, and canola and ness operation of a processor, shall be con- (1) for the effective administration of this rapeseed products are vital to the welfare of sidered to be strictly confidential and shall subtitle; and canola and rapeseed producers and proc- not be disclosed. (2) to determine whether any person sub- essors and those persons concerned with (2) PENALTY FOR VIOLATIONS.—An officer or ject to this subtitle has engaged, or is about marketing canola, rapeseed, and canola and employee of the Department who knowingly to engage, in an act that constitutes or will rapeseed products, as well as to the general violates paragraph (1) shall be subject to the constitute a violation of this subtitle or of economy of the United States, and are nec- penalties described in section 905(i)(3)(C)(ii). an order or regulation issued under this sub- essary to ensure the ready availability and SEC. 907. PETITION AND REVIEW. title. efficient marketing of canola, rapeseed, and (a) PETITION.— (b) OATHS, AFFIRMATIONS, AND SUBPOE- canola and rapeseed products; (1) IN GENERAL.—A person subject to an NAS.—For the purpose of an investigation (5) there exist established State and na- order may file with the Secretary a peti- under subsection (a), the Secretary may ad- tional organizations conducting canola and tion— minister oaths and affirmations, subpoena rapeseed research, promotion, and consumer (A) stating that the order, a provision of witnesses, compel the attendance of wit- education programs that are valuable to the the order, or an obligation imposed in con- nesses, take evidence, and require the pro- efforts of promoting the consumption of nection with the order is not established in duction of any records that are relevant to canola, rapeseed, and canola and rapeseed accordance with law; and the inquiry. The attendance of witnesses and products; (B) requesting a modification of the order the production of records may be required (6) the cooperative development, financing, or obligation or an exemption from the order from any place in the United States. and implementation of a coordinated na- (c) AID OF COURTS.— or obligation. tional program of canola and rapeseed re- (1) REQUEST.—In the case of contumacy by, (2) STATUTE OF LIMITATIONS.—A petition search, promotion, consumer information, or refusal to obey a subpoena issued to, any under paragraph (1) concerning an obligation and industry information is necessary to person, the Secretary may request the aid of may be filed not later than 2 years after the maintain and expand existing markets and any court of the United States within the ju- date of imposition of the obligation. develop new markets for canola, rapeseed, risdiction of which the investigation or pro- (3) HEARINGS.—The petitioner shall be and canola and rapeseed products; and ceeding is carried on, or where the person re- given the opportunity for a hearing on a pe- (7) canola, rapeseed, and canola and sides or carries on business, in requiring the tition filed under paragraph (1), in accord- rapeseed products move in interstate and attendance and testimony of the person and ance with regulations issued by the Sec- foreign commerce, and canola, rapeseed, and the production of records. retary. canola and rapeseed products that do not (2) ENFORCEMENT ORDER OF THE COURT.— (4) RULING.—After a hearing under para- move in interstate or foreign commerce di- The court may issue an enforcement order graph (3), the Secretary shall issue a ruling rectly burden or affect interstate commerce requiring the person to appear before the on the petition that is the subject of the in canola, rapeseed, and canola and rapeseed Secretary to produce records or to give testi- hearing, which shall be final if the ruling is products. mony concerning the matter under inves- in accordance with applicable law. (b) POLICY.—It is the policy of this subtitle (b) REVIEW.— tigation. to establish an orderly procedure for devel- (1) COMMENCEMENT OF ACTION.—The district (3) CONTEMPT.—A failure to obey an en- oping, financing through assessments on do- court of the United States for any district in forcement order of the court under para- mestically-produced canola and rapeseed, which a person who is a petitioner under sub- graph (2) may be punished by the court as a and implementing a program of research, section (a) resides or carries on business contempt of the court. promotion, consumer information, and in- shall have jurisdiction to review a ruling on (4) PROCESS.—Process in a case under this dustry information designed to strengthen the petition, if the person files a complaint subsection may be served in the judicial dis- the position in the marketplace of the canola not later than 20 days after the date of issu- trict in which the person resides or conducts and rapeseed industry, to maintain and ex- ance of the ruling under subsection (a)(4). business or wherever the person may be pand existing domestic and foreign markets (2) PROCESS.—Service of process in a pro- found. and uses for canola, rapeseed, and canola and ceeding under paragraph (1) may be made on SEC. 910. RELATION TO OTHER PROGRAMS. rapeseed products, and to develop new mar- the Secretary by delivering a copy of the Nothing in this subtitle preempts or super- kets and uses for canola, rapeseed, and complaint to the Secretary. sedes any other program relating to popcorn canola and rapeseed products. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1133

(c) CONSTRUCTION.—Nothing in this subtitle government officials, or others information (3) BOARD MEMBERSHIP.—The Board shall provides for the control of production or oth- relating to the positive attributes of canola, consist of 15 members, including— erwise limits the right of individual produc- rapeseed, or canola or rapeseed products or (A) 11 members who are producers, includ- ers to produce canola, rapeseed, or canola or the benefits of use or distribution of canola, ing— rapeseed products. rapeseed, or canola or rapeseed products. (i) 1 member from each of 6 geographic re- SEC. 923. DEFINITIONS. (16) QUALIFIED STATE CANOLA AND RAPESEED gions comprised of States where canola or In this subtitle (unless the context other- BOARD.—The term ‘‘qualified State canola rapeseed is produced, as determined by the wise requires): and rapeseed board’’ means a State canola Secretary; and (1) BOARD.—The term ‘‘Board’’ means the and rapeseed promotion entity that is au- (ii) 5 members from the geographic regions National Canola and Rapeseed Board estab- thorized and functioning under State law. referred to in clause (i), allocated according lished under section 925(b). (17) RESEARCH.—The term ‘‘research’’ to the production in each region; and (2) CANOLA; RAPESEED.—The terms means any type of test, study, or analysis to (B) 4 members who are industry members, ‘‘canola’’ and ‘‘rapeseed’’ means any brassica advance the image, desirability, market- including at least— plant grown in the United States for the pro- ability, production, product development, (i) 1 member who represents manufacturers duction of an oilseed, the oil of which is used quality, or functional or nutritional value of of canola or rapeseed end products; and for a food or nonfood use. canola, rapeseed, or canola or rapeseed prod- (ii) 1 member who represents persons who (3) CANOLA OR RAPESEED PRODUCTS.—The ucts, including research activity designed to commercially buy or sell canola or rapeseed. term ‘‘canola or rapeseed products’’ means identify and analyze barriers to export sales (4) LIMITATION ON STATE RESIDENCE.—There products produced, in whole or in part, from of canola or rapeseed produced in the United shall be no more than 4 producer members of canola or rapeseed. States. the Board from any State. (4) COMMERCE.—The term ‘‘commerce’’ in- (18) SECRETARY.—The term ‘‘Secretary’’ (5) MODIFYING BOARD MEMBERSHIP.—In ac- cludes interstate, foreign, and intrastate means the Secretary of Agriculture. cordance with regulations approved by the commerce. (19) STATE.—The term ‘‘State’’ means any Secretary, at least once each 3 years and not (5) CONFLICT OF INTEREST.—The term ‘‘con- of the 50 States, the District of Columbia and more than once each 2 years, the Board shall flict of interest’’ means a situation in which the Commonwealth of Puerto Rico. review the geographic distribution of canola a member of the Board has a direct or indi- (20) UNITED STATES.—The term ‘‘United and rapeseed production throughout the rect financial interest in a corporation, part- States’’ means collectively the 50 States, the United States and, if warranted, recommend nership, sole proprietorship, joint venture, or District of Columbia, and the Common- to the Secretary that the Secretary— other business entity dealing directly or in- wealth of Puerto Rico. (A) reapportion regions in order to reflect directly with the Board. SEC. 924. ISSUANCE AND AMENDMENT OF OR- the geographic distribution of canola and (6) CONSUMER INFORMATION.—The term DERS. rapeseed production; and ‘‘consumer information’’ means information (a) IN GENERAL.—Subject to subsection (b), (B) reapportion the seats on the Board to that will assist consumers and other persons the Secretary shall issue 1 or more orders reflect the production in each region. in making evaluations and decisions regard- under this subtitle applicable to producers (6) CERTIFICATION OF ORGANIZATIONS.— ing the purchase, preparation, and use of and first purchasers of canola, rapeseed, or (A) IN GENERAL.—The eligibility of any canola, rapeseed, or canola or rapeseed prod- canola or rapeseed products. The order shall State organization to represent producers ucts. be national in scope. Not more than 1 order shall be certified by the Secretary. (7) DEPARTMENT.—The term ‘‘Department’’ shall be in effect under this subtitle at any (B) CRITERIA.—The Secretary shall certify means the Department of Agriculture. 1 time. any State organization that the Secretary (8) FIRST PURCHASER.—The term ‘‘first pur- (b) PROCEDURE.— determines has a history of stability and per- chaser’’ means— (1) PROPOSAL OR REQUEST FOR ISSUANCE.— manency and meets at least 1 of the follow- (A) except as provided in subparagraph (B), The Secretary may propose the issuance of ing criteria: a person buying or otherwise acquiring an order under this subtitle, or an associa- (i) MAJORITY REPRESENTATION.—The total canola, rapeseed, or canola or rapeseed prod- tion of canola and rapeseed producers or any paid membership of the organization— ucts produced by a producer; or other person that would be affected by an (I) is comprised of at least a majority of (B) the Commodity Credit Corporation, in order issued pursuant to this subtitle may canola or rapeseed producers; or a case in which canola or rapeseed is for- request the issuance of, and submit a pro- (II) represents at least a majority of the feited to the Commodity Credit Corporation posal for, an order. canola or rapeseed producers in the State. as collateral for a loan issued under a price (2) NOTICE AND COMMENT CONCERNING PRO- (ii) SUBSTANTIAL NUMBER OF PRODUCERS support loan program administered by the POSED ORDER.—Not later than 60 days after REPRESENTED.—The organization represents Commodity Credit Corporation. the receipt of a request and proposal for an a substantial number of producers that (9) INDUSTRY INFORMATION.—The term ‘‘in- order pursuant to paragraph (1), or whenever produce a substantial quantity of canola or dustry information’’ means information or the Secretary determines to propose an rapeseed in the State. programs that will lead to the development order, the Secretary shall publish a proposed (iii) PURPOSE.—The organization is a gen- of new markets, new marketing strategies, order and give due notice and opportunity eral farm or agricultural organization that or increased efficiency for the canola and for public comment on the proposed order. has as a stated objective the promotion and rapeseed industry, or an activity to enhance (3) ISSUANCE OF ORDER.—After notice and development of the United States canola or the image of the canola or rapeseed industry. opportunity for public comment are given as rapeseed industry and the economic welfare (10) INDUSTRY MEMBER.—The term ‘‘indus- provided in paragraph (2), the Secretary of United States canola or rapeseed produc- try member’’ means a member of the canola shall issue an order, taking into consider- ers. and rapeseed industry who represents— ation the comments received and including (C) REPORT.—The Secretary shall make a (A) manufacturers of canola or rapeseed in the order provisions necessary to ensure certification under this paragraph on the products; or that the order is in conformity with the re- basis of a factual report submitted by the (B) persons who commercially buy or sell quirements of this subtitle. The order shall State organization. canola or rapeseed. be issued and become effective not later than (7) TERMS OF OFFICE.— (11) MARKETING.—The term ‘‘marketing’’ 180 days following publication of the pro- (A) IN GENERAL.—The members of the means the sale or other disposition of posed order. Board shall serve for a term of 3 years, ex- canola, rapeseed, or canola or rapeseed prod- (c) AMENDMENTS.—The Secretary, from cept that the members appointed to the ini- ucts in a channel of commerce. time to time, may amend an order issued tial Board shall serve, proportionately, for (12) ORDER.—The term ‘‘order’’ means an under this section. terms of 1, 2, and 3 years, as determined by order issued under section 924. SEC. 925. REQUIRED TERMS IN ORDERS. the Secretary. (13) PERSON.—The term ‘‘person’’ means an (a) IN GENERAL.—An order issued under (B) TERMINATION OF TERMS.—Notwithstand- individual, partnership, corporation, associa- this subtitle shall contain the terms and ing subparagraph (C), each member shall tion, cooperative, or any other legal entity. conditions specified in this section. continue to serve until a successor is ap- (14) PRODUCER.—The term ‘‘producer’’ (b) ESTABLISHMENT AND MEMBERSHIP OF pointed by the Secretary. means a person engaged in the growing of THE NATIONAL CANOLA AND RAPESEED (C) LIMITATION ON TERMS.—No individual canola or rapeseed in the United States who BOARD.— may serve more than 2 consecutive 3-year owns, or who shares the ownership and risk (1) IN GENERAL.—The order shall provide terms as a member. of loss of, the canola or rapeseed. for the establishment of, and appointment of (8) COMPENSATION.—A member of the Board (15) PROMOTION.—The term ‘‘promotion’’ members to, a National Canola and Rapeseed shall serve without compensation, but shall means an action, including paid advertising, Board to administer the order. be reimbursed for necessary and reasonable technical assistance, or trade servicing ac- (2) SERVICE TO ENTIRE INDUSTRY.—The expenses incurred in the performance of du- tivity, to enhance the image or desirability Board shall carry out programs and projects ties for and approved by the Board. of canola, rapeseed, or canola or rapeseed that will provide maximum benefit to the (c) POWERS AND DUTIES OF THE BOARD.— products in domestic and foreign markets, or canola and rapeseed industry in all parts of The order shall define the powers and duties an activity designed to communicate to con- the United States and only promote canola, of the Board, which shall include the power sumers, processors, wholesalers, retailers, rapeseed, or canola or rapeseed products. and duty— S 1134 CONGRESSIONAL RECORD — SENATE February 7, 1996 (1) to administer the order in accordance costs of research, promotion, consumer in- (A) the development and recommendation with the terms and conditions of the order; formation, and industry information pro- of amendments to the order; (2) to make regulations to effectuate the grams and projects. (B) the communication to appropriate gov- terms and conditions of the order; (3) INCURRING EXPENSES.—The Board may ernment officials of information relating to (3) to meet, organize, and select from incur such expenses for programs or projects the conduct, implementation, or results of among members of the Board a chairperson, of research, promotion, consumer informa- promotion, research, consumer information, other officers, and committees and sub- tion, or industry information, and other ex- or industry information activities under the committees, as the Board determines appro- penses for the administration, maintenance, order; or priate; and functioning of the Board as may be au- (C) any action designed to market canola (4) to establish working committees of per- thorized by the Secretary, including any im- or rapeseed products directly to a foreign sons other than Board members; plementation, administrative, and referen- government or political subdivision of a for- (5) to employ such persons, other than dum costs incurred by the Department. eign government. Board members, as the Board considers nec- (4) PAYING EXPENSES.—The funds to cover (h) BOOKS AND RECORDS.— essary, and to determine the compensation the expenses referred to in paragraph (3) (1) IN GENERAL.—The order shall require and define the duties of the persons; shall be paid by the Board from assessments that each producer, first purchaser, or indus- collected under section 926 or funds borrowed (6) to prepare and submit for the approval try member shall— of the Secretary, when appropriate or nec- pursuant to paragraph (5). (A) maintain and submit to the Board any essary, a recommended rate of assessment (5) AUTHORITY TO BORROW.—To meet the ex- reports considered necessary by the Sec- under section 926, and a fiscal period budget penses referred to in paragraph (3), the Board retary to ensure compliance with this sub- of the anticipated expenses in the adminis- shall have the authority to borrow funds, as title; and tration of the order, including the probable approved by the Secretary, for capital out- (B) make available during normal business costs of all programs and projects; lays and startup costs. hours, for inspection by employees of the (7) to develop programs and projects, sub- (e) CONTRACTS AND AGREEMENTS.— Board or Secretary, such books and records ject to subsection (d); (1) IN GENERAL.—To ensure efficient use of as are necessary to carry out this subtitle, (8) to enter into contracts or agreements, funds, the order shall provide that the Board including such records as are necessary to subject to subsection (e), to develop and may enter into a contract or agreement for carry out programs or projects of research, the implementation and carrying out of a verify any required reports. promotion, industry information, and program or project of canola, rapeseed, or (2) CONFIDENTIALITY.— consumer information; canola or rapeseed products research, pro- (A) IN GENERAL.—Except as otherwise pro- (9) to carry out research, promotion, indus- motion, consumer information, or industry vided in this subtitle, all information ob- try information, and consumer information information, including a contract with a pro- tained from books, records, or reports re- projects, and to pay the costs of the projects ducer organization, and for the payment of quired to be maintained under paragraph (1) with assessments collected under section 926; the costs with funds received by the Board shall be kept confidential, and shall not be (10) to keep minutes, books, and records under the order. disclosed to the public by any person. that reflect the actions and transactions of (2) REQUIREMENTS.—A contract or agree- (B) DISCLOSURE.—Information referred to the Board, and promptly report minutes of ment under paragraph (1) shall provide in subparagraph (A) may be disclosed to the each Board meeting to the Secretary; that— public if— (11) to appoint and convene, from time to (A) the contracting party shall develop and (i) the Secretary considers the information time, working committees comprised of pro- submit to the Board a program or project to- relevant; ducers, industry members, and the public to gether with a budget that shall show the es- (ii) the information is revealed in a suit or assist in the development of research, pro- timated costs to be incurred for the program administrative hearing brought at the direc- motion, industry information, and consumer or project; tion or on the request of the Secretary or to information programs for canola, rapeseed, (B) the program or project shall become ef- which the Secretary or any officer of the De- and canola and rapeseed products; fective on the approval of the Secretary; and partment is a party; and (12) to invest, pending disbursement under (C) the contracting party shall keep accu- (iii) the information relates to this sub- a program or project, funds collected rate records of all transactions, account for title. through assessments authorized under sec- funds received and expended, make periodic (C) MISCONDUCT.—A knowing disclosure of tion 926, or funds earned from investments, reports to the Board of activities conducted, confidential information in violation of sub- only in— and make such other reports as the Board or paragraph (A) by an officer or employee of (A) obligations of the United States or an the Secretary may require. the Board or Department, except as required agency of the United States; (3) PRODUCER ORGANIZATIONS.—The order by other law or allowed under subparagraph (B) general obligations of a State or a po- shall provide that the Board may contract (B) or (D), shall be considered a violation of litical subdivision of a State; with producer organizations for any other this subtitle. (C) an interest-bearing account or certifi- services. The contract shall include provi- (D) GENERAL STATEMENTS.—Nothing in this cate of deposit of a bank that is a member of sions comparable to those required by para- paragraph prohibits— the Federal Reserve System; or graph (2). (i) the issuance of general statements, (D) obligations fully guaranteed as to prin- (f) BOOKS AND RECORDS OF THE BOARD.— based on the reports, of the number of per- cipal and interest by the United States; (1) IN GENERAL.—The order shall require sons subject to the order or statistical data (13) to receive, investigate, and report to the Board to— collected from the reports, if the statements the Secretary complaints of violations of the (A) maintain such books and records do not identify the information furnished by order; (which shall be available to the Secretary for any person; or (14) to furnish the Secretary with such in- inspection and audit) as the Secretary may (ii) the publication, by direction of the formation as the Secretary may request; prescribe; Secretary, of the name of a person violating (15) to recommend to the Secretary amend- (B) prepare and submit to the Secretary, the order, together with a statement of the ments to the order; from time to time, such reports as the Sec- particular provisions of the order violated by (16) to develop and recommend to the Sec- retary may prescribe; and the person. retary for approval such regulations as may (C) account for the receipt and disburse- (3) AVAILABILITY OF INFORMATION.— be necessary for the development and execu- ment of all funds entrusted to the Board. (A) EXCEPTION.—Except as provided in this tion of programs or projects, or as may oth- (2) AUDITS.—The Board shall cause the subtitle, information obtained under this erwise be necessary, to carry out the order; books and records of the Board to be audited subtitle may be made available to another and by an independent auditor at the end of each agency of the Federal Government for a civil (17) to provide the Secretary with advance fiscal year, and a report of the audit to be or criminal law enforcement activity if the notice of meetings. submitted to the Secretary. activity is authorized by law and if the head (d) PROGRAMS AND BUDGETS.— (g) PROHIBITION.— of the agency has made a written request to (1) SUBMISSION TO SECRETARY.—The order (1) IN GENERAL.—Subject to paragraph (2), the Secretary specifying the particular in- shall provide that the Board shall submit to the Board shall not engage in any action to, formation desired and the law enforcement the Secretary for approval any program or nor shall any funds received by the Board activity for which the information is sought. project of research, promotion, consumer in- under this subtitle be used to— (B) PENALTY.—Any person knowingly vio- formation, or industry information. No pro- (A) influence legislation or governmental lating this subsection, on conviction, shall gram or project shall be implemented prior action; be subject to a fine of not more than $1,000 or to approval by the Secretary. (B) engage in an action that would be a to imprisonment for not more than 1 year, or (2) BUDGETS.—The order shall require the conflict of interest; both, and if an officer or employee of the Board, prior to the beginning of each fiscal (C) engage in advertising that is false or Board or the Department, shall be removed year, or as may be necessary after the begin- misleading; or from office or terminated from employment, ning of a fiscal year, to submit to the Sec- (D) engage in promotion that would dispar- as applicable. retary for approval budgets of anticipated age other commodities. (5) WITHHOLDING INFORMATION.—Nothing in expenses and disbursements in the imple- (2) ACTION PERMITTED.—Paragraph (1) does this subtitle authorizes withholding informa- mentation of the order, including projected not preclude— tion from Congress. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1135

(i) USE OF ASSESSMENTS.—The order shall (1) ESTABLISHMENT OF ESCROW ACCOUNT.— jority of those voting in the referendum, the provide that the assessments collected under During the period beginning on the date on Secretary shall terminate collection of as- section 926 shall be used for payment of the which an order is first issued under section sessments under the order within 6 months expenses in implementing and administering 924(b)(3) and ending on the date on which a after the referendum and shall terminate the this subtitle, with provision for a reasonable referendum is conducted under section 927(a), order in an orderly manner as soon as prac- reserve, and to cover those administrative the Board shall— ticable. costs incurred by the Secretary in imple- (A) establish an escrow account to be used (b) ADDITIONAL REFERENDA.— menting and administering this subtitle. for assessment refunds; and (1) IN GENERAL.— (j) OTHER TERMS AND CONDITIONS.—The (B) place funds in such account in accord- order also shall contain such terms and con- ance with paragraph (2). (A) REQUIREMENT.—After the initial ref- erendum on an order, the Secretary shall ditions, not inconsistent with this subtitle, (2) PLACEMENT OF FUNDS IN ACCOUNT.—The as determined necessary by the Secretary to Board shall place in such account, from as- conduct additional referenda, as described in effectuate this subtitle. sessments collected during the period re- subparagraph (C), if requested by a rep- SEC. 926. ASSESSMENTS. ferred to in paragraph (1), an amount equal resentative group of producers, as described (a) IN GENERAL.— to the product obtained by multiplying the in subparagraph (B). (1) FIRST PURCHASERS.—During the effec- total amount of assessments collected during (B) REPRESENTATIVE GROUP OF PRODUC- tive period of an order issued pursuant to the period by 10 percent. ERS.—An additional referendum on an order this subtitle, assessments shall be— (3) RIGHT TO RECEIVE REFUND.—The Board shall be conducted if requested by 10 percent (A) levied on all canola or rapeseed pro- shall refund to a producer the assessments or more of the producers who during a rep- duced in the United States and marketed; paid by or on behalf of the producer if— resentative period have been engaged in the and (A) the producer is required to pay the as- production of canola or rapeseed. (B) deducted from the payment made to a sessment; (C) ELIGIBLE PRODUCERS.—Each additional producer for all canola or rapeseed sold to a (B) the producer does not support the pro- referendum shall be conducted among all first purchaser. gram established under this subtitle; and producers who, during a representative pe- (2) DIRECT PROCESSING.—The order shall (C) the producer demands the refund prior riod, as determined by the Secretary, have provide that any person processing canola or to the conduct of the referendum under sec- been engaged in the production of canola or rapeseed of that person’s own production and tion 927(a). rapeseed to determine whether the producers marketing the canola or rapeseed, or canola (4) FORM OF DEMAND.—The demand shall be favor the termination or suspension of the or rapeseed products, shall remit to the made in accordance with such regulations, in order. Board or a qualified State canola and such form, and within such time period as (2) DISAPPROVAL OF ORDER.—If the Sec- rapeseed board, in the manner prescribed by prescribed by the Board. retary determines, in a referendum con- the order, an assessment established at a (5) MAKING OF REFUND.—The refund shall be ducted under paragraph (1), that suspension rate equivalent to the rate provided for made on submission of proof satisfactory to or termination of the order is favored by a under subsection (d). the Board that the producer paid the assess- majority of the producers voting in the ref- (b) LIMITATION ON ASSESSMENTS.—No more ment for which the refund is demanded. erendum, the Secretary shall suspend or ter- than 1 assessment may be assessed under (6) PRORATION.—If— minate, as appropriate, collection of assess- subsection (a) on any canola or rapeseed pro- (A) the amount in the escrow account re- ments under the order within 6 months after duced (as remitted by a first purchaser). quired by paragraph (1) is not sufficient to (c) REMITTING ASSESSMENTS.— the determination, and shall suspend or ter- refund the total amount of assessments de- (1) IN GENERAL.—Assessments required minate the order, as appropriate, in an or- manded by eligible producers; and under subsection (a) shall be remitted to the derly manner as soon as practicable after the (B) the order is not approved pursuant to Board by a first purchaser. The Board shall determination. the referendum conducted under section use qualified State canola and rapeseed (3) OPPORTUNITY TO REQUEST ADDITIONAL 927(a); boards to collect the assessments. If an ap- REFERENDA.— the Board shall prorate the amount of the re- propriate qualified State canola and (A) IN GENERAL.—Beginning on the date funds among all eligible producers who de- rapeseed board does not exist to collect an that is 5 years after the conduct of a referen- mand a refund. assessment, the assessment shall be col- dum under this subtitle, and every 5 years (7) PROGRAM APPROVED.—If the plan is ap- thereafter, the Secretary shall provide lected by the Board. There shall be only 1 proved pursuant to the referendum con- canola and rapeseed producers an oppor- qualified State canola or rapeseed Board in ducted under section 927(a), all funds in the tunity to request an additional referendum. each State. escrow account shall be returned to the IMES TO REMIT ASSESSMENT.—Each ETHOD OF MAKING REQUEST (2) T Board for use by the Board in accordance (B) M .— first purchaser shall remit the assessment to with this subtitle. (i) IN-PERSON REQUESTS.—To carry out sub- the Board as provided for in the order. paragraph (A), the Secretary shall establish SEC. 927. REFERENDA. (d) ASSESSMENT RATE.— a procedure under which a producer may re- (1) INITIAL RATE.—The initial assessment (a) INITIAL REFERENDUM.— quest a reconfirmation referendum in-person (1) REQUIREMENT.—During the period end- rate shall be 4 cents per hundredweight of at a county Cooperative State Research, ing 30 months after the date of the first issu- canola or rapeseed produced and marketed. Education, and Extension Service office or a ance of an order under section 924, the Sec- (2) INCREASE.—The assessment rate may be county Consolidated Farm Service Agency retary shall conduct a referendum among increased on recommendation by the Board office during a period established by the Sec- producers who, during a representative pe- to a rate not exceeding 10 cents per hundred- retary, or as provided in clause (ii). weight of canola or rapeseed produced and riod as determined by the Secretary, have been engaged in the production of canola or (ii) MAIL-IN REQUESTS.—In lieu of making a marketed in a State, unless— request in person, a producer may make a re- (A) after the initial referendum is held rapeseed for the purpose of ascertaining whether the order then in effect shall be con- quest by mail. To facilitate the submission under section 927(a), the Board recommends of requests by mail, the Secretary may make an increase above 10 cents per hundred- tinued. mail-in request forms available to producers. weight; and (2) ADVANCE NOTICE.—The Secretary shall, (C) NOTIFICATIONS.—The Secretary shall (B) the increase is approved in a referen- to the extent practicable, provide broad pub- publish a notice in the Federal Register, and dum under section 927(b). lic notice in advance of any referendum. The the Board shall provide written notification (3) CREDIT.—A producer who demonstrates notice shall be provided, without advertising to producers, not later than 60 days prior to to the Board that the producer is participat- expenses, by means of newspapers, county ing in a program of an established qualified newsletters, the electronic media, and press the end of the period established under sub- State canola and rapeseed board shall re- releases, through the use of notices posted in paragraph (B)(i) for an in-person request, of ceive credit, in determining the assessment State and county Cooperative State Re- the opportunity of producers to request an due from the producer, for contributions to search, Education, and Extension Service of- additional referendum. The notification the program of up to 2 cents per hundred- fices and county Consolidated Farm Service shall explain the right of producers to an ad- weight of canola or rapeseed marketed. Agency offices, and by other appropriate ditional referendum, the procedure for a ref- (e) LATE PAYMENT CHARGE.— means specified in the order. The notice erendum, the purpose of a referendum, and (1) IN GENERAL.—There shall be a late pay- shall include information on when the ref- the date and method by which producers ment charge imposed on any person who fails erendum will be held, registration and voting may act to request an additional referendum to remit, on or before the date provided for requirements, rules regarding absentee vot- under this paragraph. The Secretary shall in the order, to the Board the total amount ing, and other pertinent information. take such other action as the Secretary de- for which the person is liable. (3) APPROVAL OF ORDER.—The order shall be termines is necessary to ensure that produc- (2) AMOUNT OF CHARGE.—The amount of the continued only if the Secretary determines ers are made aware of the opportunity to re- late payment charge imposed under para- that the order has been approved by not less quest an additional referendum. graph (1) shall be prescribed by the Board than a majority of the producers voting in (D) ACTION BY SECRETARY.—As soon as with the approval of the Secretary. the referendum. practicable following the submission of a re- (f) REFUND OF ASSESSMENTS FROM ESCROW (4) DISAPPROVAL OF ORDER.—If continu- quest for an additional referendum, the Sec- ACCOUNT.— ation of the order is not approved by a ma- retary shall determine whether a sufficient S 1136 CONGRESSIONAL RECORD — SENATE February 7, 1996

number of producers have requested the ref- not impede, hinder, or delay the Attorney (e) FAILURE TO OBEY ORDERS.—Any person erendum, and take such steps as are nec- General or the Secretary from taking any who fails to obey a cease-and-desist order is- essary to conduct the referendum, as re- action under section 929. sued under this section after the order has quired under paragraph (1). SEC. 929. ENFORCEMENT. become final and unappealable, or after the (E) TIME LIMIT.—An additional referendum (a) JURISDICTION.—The district courts of appropriate United States district court has requested under the procedures provided in the United States are vested with jurisdic- entered a final judgment in favor of the Sec- this paragraph shall be conducted not later tion specifically to enforce, and to prevent retary, shall be subject to a civil penalty as- than 1 year after the Secretary determines and restrain any person from violating, an sessed by the Secretary, after opportunity for a hearing and for judicial review under that a representative group of producers, as order or regulation made or issued under this the procedures specified in subsections (c) described in paragraph (1)(B), have requested subtitle. and (d), of not more than $5,000 for each of- the conduct of the referendum. (b) REFERRAL TO ATTORNEY GENERAL.—A fense. Each day during which the failure con- (c) PROCEDURES.— civil action authorized to be commenced (1) REIMBURSEMENT OF SECRETARY.—The tinues shall be considered as a separate vio- under this section shall be referred to the lation of the order. Secretary shall be reimbursed from assess- Attorney General for appropriate action, ex- ments collected by the Board for any ex- (f) FAILURE TO PAY PENALTIES.—If a person cept that the Secretary shall not be required fails to pay an assessment of a civil penalty penses incurred by the Secretary in connec- to refer to the Attorney General a violation under this section after the assessment has tion with the conduct of an activity required of this subtitle if the Secretary believes that become a final and unappealable order, or under this section. the administration and enforcement of this after the appropriate United States district (2) DATE.—Each referendum shall be con- subtitle would be adequately served by pro- court has entered final judgment in favor of ducted for a reasonable period of time not to viding a suitable written notice or warning the Secretary, the Secretary shall refer the exceed 3 days, established by the Secretary, to the person who committed the violation matter to the Attorney General for recovery under a procedure under which producers in- or by administrative action under section of the amount assessed in the district court tending to vote in the referendum shall cer- 928. in which the person resides or conducts busi- tify that the producers were engaged in the (c) CIVIL PENALTIES AND ORDERS.— ness. In an action for recovery, the validity production of canola, rapeseed, or canola or (1) CIVIL PENALTIES.— and appropriateness of the final order impos- rapeseed products during the representative (A) IN GENERAL.—Any person who willfully ing the civil penalty shall not be subject to period and, at the same time, shall be pro- violates any provision of an order or regula- review. vided an opportunity to vote in the referen- tion issued by the Secretary under this sub- (g) ADDITIONAL REMEDIES.—The remedies dum. title, or who fails or refuses to pay, collect, provided in this subtitle shall be in addition (3) PLACE.—Referenda under this section or remit an assessment or fee required of the to, and not exclusive of, other remedies that shall be conducted at locations determined person under an order or regulation, may be may be available. by the Secretary. On request, absentee mail assessed— SEC. 930. INVESTIGATIONS AND POWER TO SUB- ballots shall be furnished by the Secretary in (i) a civil penalty by the Secretary of not POENA. a manner prescribed by the Secretary. more than $1,000 for each violation; and (a) INVESTIGATIONS.—The Secretary may SEC. 928. PETITION AND REVIEW. (ii) in the case of a willful failure to pay, make such investigations as the Secretary (a) PETITION.— collect, or remit an assessment as required considers necessary— (1) IN GENERAL.—A person subject to an by an order or regulation, an additional pen- (1) for the effective administration of this order issued under this subtitle may file with alty equal to the amount of the assessment. subtitle; and the Secretary a petition— (B) SEPARATE OFFENSE.—Each violation (2) to determine whether any person has (A) stating that the order, a provision of under subparagraph (A) shall be a separate engaged or is engaging in an act that con- the order, or an obligation imposed in con- offense. stitutes a violation of this subtitle, or an nection with the order is not established in (2) CEASE-AND-DESIST ORDERS.—In addition order, rule, or regulation issued under this accordance with law; and to, or in lieu of, a civil penalty under para- subtitle. (B) requesting a modification of the order graph (1), the Secretary may issue an order (b) SUBPOENAS, OATHS, AND AFFIRMA- or an exemption from the order. requiring a person to cease and desist from TIONS.— N GENERAL (2) HEARINGS.—The petitioner shall be continuing a violation. (1) I .—For the purpose of an in- given the opportunity for a hearing on a pe- (3) NOTICE AND HEARING.—No penalty shall vestigation under subsection (a), the Sec- tition filed under paragraph (1), in accord- be assessed, or cease-and-desist order issued, retary may administer oaths and affirma- ance with regulations issued by the Sec- by the Secretary under this subsection un- tions, subpoena witnesses, take evidence, retary. less the person against whom the penalty is and issue subpoenas to require the produc- (3) RULING.—After a hearing under para- assessed or the order is issued is given notice tion of any records that are relevant to the graph (2), the Secretary shall make a ruling and opportunity for a hearing before the Sec- inquiry. The attendance of witnesses and the on the petition that is the subject of the retary with respect to the violation. production of records may be required from hearing, which shall be final if the ruling is (4) FINALITY.—The order of the Secretary any place in the United States. in accordance with applicable law. assessing a penalty or imposing a cease-and- (2) ADMINISTRATIVE HEARINGS.—For the (4) LIMITATION ON PETITION.—Any petition desist order under this subsection shall be purpose of an administrative hearing held filed under this subtitle challenging an final and conclusive unless the affected per- under section 928 or 929, the presiding officer order, or any obligation imposed in con- son files an appeal of the order with the ap- is authorized to administer oaths and affir- nected with an order, shall be filed not later propriate district court of the United States mations, subpoena and compel the attend- than 2 years after the effective date of the in accordance with subsection (d). ance of witnesses, take evidence, and require order or obligation. (d) REVIEW BY DISTRICT COURT.— the production of any records that are rel- (b) REVIEW.— (1) COMMENCEMENT OF ACTION.—Any person evant to the inquiry. The attendance of wit- (1) COMMENCEMENT OF ACTION.—The district who has been determined to be in violation nesses and the production of records may be court of the United States in any district in of this subtitle, or against whom a civil pen- required from any place in the United which the person who is a petitioner under alty has been assessed or a cease-and-desist States. (c) AID OF COURTS.—In the case of contu- subsection (a) resides or carries on business order issued under subsection (c), may obtain macy by, or refusal to obey a subpoena is- shall have jurisdiction to review a ruling on review of the penalty or order by— sued to, any person, the Secretary may in- the petition, if a complaint is filed by the (A) filing, within the 30-day period begin- voke the aid of any court of the United person not later than 20 days after the date ning on the date the penalty is assessed or States within the jurisdiction of which the of the entry of a ruling by the Secretary order issued, a notice of appeal in— investigation or proceeding is carried on, or under subsection (a)(3). (i) the district court of the United States where the person resides or carries on busi- (2) PROCESS.—Service of process in a pro- for the district in which the person resides or ness, in order to enforce a subpoena issued ceeding under paragraph (1) shall be con- conducts business; or by the Secretary under subsection (b). The ducted in accordance with the Federal Rules (ii) the United States District Court for court may issue an order requiring the per- of Civil Procedure. the District of Columbia; and son to comply with the subpoena. (3) REMANDS.—If the court determines, (B) simultaneously sending a copy of the (d) CONTEMPT.—A failure to obey an order under paragraph (1), that a ruling issued notice by certified mail to the Secretary. of the court under this section may be pun- under subsection (a)(3) is not in accordance (2) RECORD.—The Secretary shall file ished by the court as contempt of the court. with applicable law, the court shall remand promptly, in the appropriate court referred (e) PROCESS.—Process may be served on a the matter to the Secretary with directions to in paragraph (1), a certified copy of the person in the judicial district in which the either— record on which the Secretary has deter- person resides or conducts business or wher- (A) to make such ruling as the court shall mined that the person has committed a vio- ever the person may be found. determine to be in accordance with law; or lation. (f) HEARING SITE.—The site of a hearing (B) to take such further proceedings as, in (3) STANDARD OF REVIEW.—A finding of the held under section 928 or 729 shall be in the the opinion of the court, the law requires. Secretary under this section shall be set judicial district where the person affected by (4) ENFORCEMENT.—The pendency of pro- aside only if the finding is found to be unsup- the hearing resides or has a principal place ceedings instituted under subsection (a) shall ported by substantial evidence. of business. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1137 SEC. 931. SUSPENSION OR TERMINATION OF AN who exports kiwifruit into the United SEC. 945. NATIONAL KIWIFRUIT BOARD. ORDER. States. (a) MEMBERSHIP.—An order issued by the The Secretary shall, whenever the Sec- (4) HANDLER.—The term ‘‘handler’’ means Secretary under section 944 shall provide for retary finds that an order or a provision of any person, excluding a common carrier, en- the establishment of a National Kiwifruit an order obstructs or does not tend to effec- gaged in the business of buying and selling, Board that consists of the following 11 mem- tuate the declared policy of this subtitle, packing, marketing, or distributing bers: terminate or suspend the operation of the kiwifruit as specified in the order. (1) 6 members who are producers (or rep- order or provision. The termination or sus- (5) IMPORTER.—The term ‘‘importer’’ means resentatives of producers) and who are not pension of an order shall not be considered any person who imports kiwifruit into the exempt from an assessment under section an order within the meaning of this subtitle. United States. 946(b). SEC. 932. REGULATIONS. (6) KIWIFRUIT.—The term ‘‘kiwifruit’’ (2) 4 members who are importers (or rep- The Secretary may issue such regulations means all varieties of fresh kiwifruit grown resentatives of importers) and who are not as are necessary to carry out this subtitle. or imported in the United States. exempt from an assessment under section SEC. 933. AUTHORIZATION OF APPROPRIATIONS. (7) MARKETING.—The term ‘‘marketing’’ 946(b) or are exporters (or representatives of (a) IN GENERAL.—There are authorized to means the sale or other disposition of exporters). be appropriated for each fiscal year such kiwifruit into interstate, foreign, or intra- (3) 1 member appointed from the general sums as are necessary to carry out this sub- state commerce by buying, marketing, dis- public. title. tribution, or otherwise placing kiwifruit into (b) ADJUSTMENT OF MEMBERSHIP.—Subject (b) ADMINISTRATIVE EXPENSES.—Funds ap- commerce. to the 11-member limit, the Secretary may propriated under subsection (a) shall not be (8) ORDER.—The term ‘‘order’’ means a adjust membership on the Board to accom- available for payment of the expenses or ex- kiwifruit research, promotion, and consumer modate changes in production and import penditures of the Board in administering a information order issued by the Secretary levels of kiwifruit. provision of an order issued under this sub- under section 944. (c) APPOINTMENT AND NOMINATION.— title. (9) PERSON.—The term ‘‘person’’ means any (1) APPOINTMENT.—The Secretary shall ap- Subtitle C—Kiwifruit individual, group of individuals, partnership, point the members of the Board from nomi- nations submitted in accordance with this SEC. 941. SHORT TITLE. corporation, association, cooperative, or subsection. This subtitle may be cited as the ‘‘Na- other legal entity. (2) PRODUCERS.—The members referred to tional Kiwifruit Research, Promotion, and (10) PROCESSING.—The term ‘‘processing’’ in subsection (a)(1) shall be appointed from Consumer Information Act’’. means canning, fermenting, distilling, ex- individuals nominated by producers. SEC. 942. FINDINGS AND PURPOSES. tracting, preserving, grinding, crushing, or (3) IMPORTERS AND EXPORTERS.—The mem- (a) FINDINGS.—Congress finds that— in any manner changing the form of bers referred to in subsection (a)(2) shall be (1) domestically produced kiwifruit are kiwifruit for the purposes of preparing the appointed from individuals nominated by im- grown by many individual producers; kiwifruit for market or marketing the porters or exporters. (2) virtually all domestically produced kiwifruit. (11) PRODUCER.—The term ‘‘producer’’ (4) PUBLIC REPRESENTATIVE.—The public kiwifruit are grown in the State of Califor- representative shall be appointed from nomi- nia, although there is potential for produc- means any person who grows kiwifruit in the United States for sale in commerce. nations submitted by other members of the tion in many other areas of the United Board. States; (12) PROMOTION.—The term ‘‘promotion’’ (5) FAILURE TO NOMINATE.—If producers, (3) kiwifruit move in interstate and foreign means any action taken under this subtitle (including paid advertising) to present a fa- importers, and exporters fail to nominate in- commerce, and kiwifruit that do not move in dividuals for appointment, the Secretary channels of commerce directly burden or af- vorable image for kiwifruit to the general public for the purpose of improving the com- may appoint members on a basis provided for fect interstate commerce; in the order. If the Board fails to nominate (4) in recent years, large quantities of petitive position of kiwifruit and stimulat- ing the sale of kiwifruit. a public representative, the member may be kiwifruit have been imported into the United appointed by the Secretary without a nomi- States; (13) RESEARCH.—The term ‘‘research’’ means any type of research relating to the nation. (5) the maintenance and expansion of exist- (d) ALTERNATES.—The Secretary shall ap- ing domestic and foreign markets for use, nutritional value, and marketing of kiwifruit conducted for the purpose of ad- point an alternate for each member of the kiwifruit, and the development of additional Board. An alternate shall— and improved markets for kiwifruit, are vancing the image, desirability, market- ability, or quality of kiwifruit. (1) be appointed in the same manner as the vital to the welfare of kiwifruit producers member for whom the individual is an alter- and other persons concerned with producing, (14) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Agriculture. nate; and marketing, and processing kiwifruit; (2) serve on the Board if the member is ab- (15) UNITED STATES.—The term ‘‘United (6) a coordinated program of research, pro- sent from a meeting or is disqualified under motion, and consumer information regarding States’’ means the 50 States of the United States, the District of Columbia, and the subsection (f). kiwifruit is necessary for the maintenance (e) TERMS.—A member of the Board shall Commonwealth of Puerto Rico. and development of the markets; and be appointed for a term of 3 years. No mem- (7) kiwifruit producers, handlers, and im- SEC. 944. ISSUANCE OF ORDERS. ber may serve more than 2 consecutive 3- porters are unable to implement and finance (a) ISSUANCE.—To effectuate the declared year terms, except that of the members first such a program without cooperative action. purposes of this subtitle, the Secretary shall appointed— (b) PURPOSES.—The purposes of this sub- issue an order applicable to producers, han- (1) 5 members shall be appointed for a term title are— dlers, and importers of kiwifruit. Any such of 2 years; and (1) to authorize the establishment of an or- order shall be national in scope. Not more (2) 6 members shall be appointed for a term derly procedure for the development and fi- than 1 order shall be in effect under this sub- of 3 years. nancing (through an assessment) of an effec- title at any 1 time. (f) DISQUALIFICATION.—If a member or al- tive and coordinated program of research, (b) PROCEDURE.— ternate of the Board who was appointed as a promotion, and consumer information re- (1) PROPOSAL FOR ISSUANCE OF ORDER.—Any producer, importer, exporter, or public rep- garding kiwifruit; person that will be affected by this subtitle resentative member ceases to belong to the (2) to use the program to strengthen the may request the issuance of, and submit a group for which the member was appointed, position of the kiwifruit industry in domes- proposal for, an order under this subtitle. the member or alternate shall be disqualified tic and foreign markets and maintain, de- (2) PROPOSED ORDER.—Not later than 90 from serving on the Board. velop, and expand markets for kiwifruit; and days after the receipt of a request and pro- (g) COMPENSATION.—A members or alter- (3) to treat domestically produced posal for an order, the Secretary shall pub- nate of the Board shall serve without pay. kiwifruit and imported kiwifruit equitably. lish a proposed order and give due notice and (h) GENERAL POWERS AND DUTIES.—The SEC. 943. DEFINITIONS. opportunity for public comment on the pro- Board shall— In this subtitle (unless the context other- posed order. (1) administer an order issued by the Sec- wise requires): (3) ISSUANCE OF ORDER.—After notice and retary under section 944, and an amendment (1) BOARD.—The term ‘‘Board’’ means the opportunity for public comment are provided to the order, in accordance with the order National Kiwifruit Board established under under paragraph (2), the Secretary shall and amendment and this subtitle; section 945. issue an order, taking into consideration the (2) prescribe rules and regulations to carry (2) CONSUMER INFORMATION.—The term comments received and including in the out the order; ‘‘consumer information’’ means any action order provisions necessary to ensure that the (3) meet, organize, and select from among taken to provide information to, and broaden order is in conformity with this subtitle. members of the Board a chairperson, other the understanding of, the general public re- (c) AMENDMENTS.—The Secretary may officers, and committees and subcommittees, garding the consumption, use, nutritional amend any order issued under this section. as the Board determines appropriate; attributes, and care of kiwifruit. The provisions of this subtitle applicable to (4) receive, investigate, and report to the (3) EXPORTER.—The term ‘‘exporter’’ means an order shall be applicable to an amend- Secretary accounts of violations of the any person from outside the United States ment to an order. order; S 1138 CONGRESSIONAL RECORD — SENATE February 7, 1996

(5) make recommendations to the Sec- (B) be on a list of approved processors de- (1) IN GENERAL.—The order shall require retary with respect to an amendment that veloped by the Board. that all information obtained pursuant to should be made to the order; and (c) USE OF ASSESSMENTS. subsection (f)(2) be kept confidential by all (6) employ or contract with a manager and (1) AUTHORIZED USES.—The order shall pro- officers and employees and agents of the De- staff to assist in administering the order, ex- vide that funds paid to the Board as assess- partment and of the Board. Only such infor- cept that, to reduce administrative costs and ments under subsection (b) may be used by mation as the Secretary considers relevant increase efficiency, the Board shall seek, to the Board— shall be disclosed to the public and only in a the extent practicable, to employ or contract (A) to pay for research, promotion, and suit or administrative hearing, brought at with personnel who are already associated consumer information described in the budg- the request of the Secretary or to which the with State chartered organizations involved et of the Board under subsection (a) and for Secretary or any officer of the United States in promoting kiwifruit. other expenses incurred by the Board in the is a party, involving the order with respect SEC. 946. REQUIRED TERMS IN ORDER. administration of an order; to which the information was furnished or (a) BUDGETS AND PLANS.— (B) to pay such other expenses for the ad- acquired. (1) IN GENERAL.—An order issued under sec- ministration, maintenance, and functioning (2) LIMITATIONS.—Nothing in this sub- tion 944 shall provide for periodic budgets of the Board, including any enforcement ef- section prohibits— and plans in accordance with this subsection. forts for the collection of assessments as (A) issuance of general statements based (2) BUDGETS.—The Board shall prepare and may be authorized by the Secretary, includ- on the reports of a number of handlers and submit to the Secretary a budget prior to ing interest and penalties for late payments; importers subject to an order, if the state- the beginning of the fiscal year of the antici- and ments do not identify the information fur- pated expenses and disbursements of the (C) to fund a reserve established under sec- nished by any person; or Board in the administration of the order, in- tion 947(d). (B) the publication, by direction of the cluding probable costs of research, pro- (2) REQUIRED USES.—The order shall pro- Secretary, of the name of any person violat- motion, and consumer information. A budget vide that funds paid to the Board as assess- ing an order issued under section 944(a), to- shall become effective on a 2⁄3-vote of a ments under subsection (b) shall be used by gether with a statement of the particular quorum of the Board and approval by the the Board— provisions of the order violated by the per- Secretary. (A) to pay the expenses incurred by the son. (3) PLANS.—Each budget shall include a Secretary, including salaries and expenses of (3) PENALTY.—Any person who willfully plan for research, promotion, and consumer Federal Government employees, in imple- violates this subsection, on conviction, shall information regarding kiwifruit. A plan menting and administering the order; and be subject to a fine of not more than $1,000 or under this paragraph shall become effective (B) to reimburse the Secretary for any ex- to imprisonment for not more than 1 year, or on approval by the Secretary. The Board penses incurred by the Secretary in conduct- both, and, if the person is a member, officer, may enter into contracts and agreements, on ing referenda under this subtitle. or agent of the board or an employee of the approval by the Secretary, for— (3) LIMITATION ON USE OF ASSESSMENTS.— Department, shall be removed from office. (A) the development of and carrying out Except for the first year of operation of the (h) WITHHOLDING INFORMATION.—Nothing in the plan; and Board, expenses for the administration, this subtitle authorizes the withholding of (B) the payment of the cost of the plan, maintenance, and functioning of the Board information from Congress. with funds collected pursuant to this sub- may not exceed 30 percent of the budget for SEC. 947. PERMISSIVE TERMS IN ORDER. title. a year. (a) PERMISSIVE TERMS.—On the rec- (b) ASSESSMENTS.— (d) FALSE CLAIMS.—The order shall provide ommendation of the Board and with the ap- (1) IN GENERAL.—The order shall provide that any promotion funded with assessments proval of the Secretary, an order issued for the imposition and collection of assess- collected under subsection (b) may not under section 944 may include the terms and ments with regard to the production and im- make— conditions specified in this section and such portation of kiwifruit in accordance with (1) any false claims on behalf of kiwifruit; additional terms and conditions as the Sec- this subsection. and retary considers necessary to effectuate the (2) RATE.—The assessment rate shall be the (2) any false statements with respect to the other provisions of the order and are inciden- reate that is recommended by a 2⁄3-vote of a attributes or use of any product that com- tal to, and not inconsistent with, this sub- quorum of the Board and approved by the petes with kiwifruit for sale in commerce. title. Secretary, except that the rate shall not ex- (e) PROHIBITION ON USE OF FUNDS.—The (b) ALTERNATIVE PAYMENT AND REPORTING ceed $0.10 per 7-pound tray of kiwifruit or order shall provide that funds collected by SCHEDULES.—The order may authorize the equivalent. the Board under this subtitle through assess- Board to designate different handler pay- (3) COLLECTION BY FIRST HANDLERS.—Except ments may not, in any manner, be used for ment and reporting schedules to recognize as provided in paragraph (5), the first han- the purpose of influencing legislation or gov- differences in marketing practices and proce- dler of kiwifruit shall— ernmental policy or action, except for mak- dures. (A) be responsible for the collection from ing recommendations to the Secretary as (c) WORKING GROUPS.—The order may au- the producer, and payment to the Board, of provided for under this subtitle. thorize the Board to convene working groups assessments required under this subsection; (f) BOOKS, RECORDS, AND REPORTS.— drawn from producers, handlers, importers, and (1) BOARD.—The order shall require the exporters, or the general public and utilize (B) maintain a separate record of the Board— the expertise of the groups to assist in the kiwifruit of each producer whose kiwifruit (A) to maintain books and records with re- development of research and marketing pro- are so handled, including the kiwifruit spect to the receipt and disbursement of grams for kiwifruit. owned by the handler. funds received by the Board; (d) RESERVE FUNDS.—The order may au- (4) IMPORTERS.—The assessment on im- (B) to submit to the Secretary from time thorize the Board to accumulate reserve ported kiwifruit shall be paid by the im- to time such reports as the Secretary may funds from assessments collected pursuant porter to the United States Customs Service require for appropriate accounting; and to section 946(b) to permit an effective and at the time of entry into the United States (C) to submit to the Secretary at the end continuous coordinated program of research, and shall be remitted to the Board. of each fiscal year a complete audit report promotion, and consumer information in (5) EXEMPTION FROM ASSESSMENT.—The fol- by an independent auditor regarding the ac- years in which production and assessment lowing persons or activities are exempt from tivities of the Board during the fiscal year. income may be reduced, except that any re- an assessment under this subsection: (2) OTHERS.—To make information and serve fund may not exceed the amount budg- (A) A producer who produces less than 500 data available to the Board and the Sec- eted for operation of this subtitle for 1 year. pounds of kiwifruit per year. retary that is appropriate or necessary for (e) PROMOTION ACTIVITIES OUTSIDE UNITED (B) An importer who imports less than the effectuation, administration, or enforce- STATES.—The order may authorize the Board 10,000 pounds of kiwifruit per year. ment of this subtitle (or any order or regula- to use, with the approval of the Secretary, (C) A sale of kiwifruit made directly from tion issued under this subtitle), the order funds collected under section 946(b) and the producer to a consumer for a purpose shall require handlers and importers who are funds from other sources for the develop- other than resale. responsible for the collection, payment, or ment and expansion of sales in foreign mar- (D) The production or importation of remittance of assessments under subsection kets of kiwifruit produced in the United kiwifruit for processing. (b)— States. (6) CLAIM OF EXEMPTION.—To claim an ex- (A) to maintain and make available for in- SEC. 948. PETITION AND REVIEW. emption under paragraph (5) for a particular spection by the employees and agents of the (a) PETITION.— year, a person shall— Board and the Secretary such books and (1) IN GENERAL.—A person subject to an (A) submit an application to the Board records as may be required by the order; and order may file with the Secretary a peti- stating the basis for the exemption and cer- (B) to file, at the times and in the manner tion— tifying that the quantity of kiwifruit pro- and content prescribed by the order, reports (A) stating that the order, a provision of duced, imported, or sold by the person will regarding the collection, payment, or remit- the order, or an obligation imposed in con- not exceed any poundage limitation required tance of the assessments. nection with the order is not in accordance for the exemption in the year; or (g) CONFIDENTIALITY.— with law; and February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1139

(B) requesting a modification of the order (4) FINALITY.—The order of the Secretary relevant to the inquiry. The attendance of or an exemption from the order. assessing a penalty or imposing a cease-and- witnesses and the production of any such (2) HEARINGS.—A person submitting a peti- desist order shall be final and conclusive un- records may be required from any place in tion under paragraph (1) shall be given an op- less the person against whom the order is is- the United States. portunity for a hearing on the petition, in sued files an appeal from the order with the (c) AID OF COURTS.—In the case of contu- accordance with regulations issued by the appropriate district court of the United macy by, or refusal to obey a subpoena to, Secretary. States, in accordance with subsection (d). any person, the Secretary may invoke the (3) RULING.—After the hearing, the Sec- (d) REVIEW BY UNITED STATES DISTRICT aid of any court of the United States within retary shall make a ruling on the petition COURT.— the jurisdiction of which the investigation or which shall be final if the petition is in ac- (1) COMMENCEMENT OF ACTION.—Any person proceeding is carried on, or where the person cordance with law. against whom a violation is found and a civil resides or carries on business, to enforce a (4) LIMITATION ON PETITION.—Any petition penalty assessed or cease-and-desist order is- subpoena issued by the Secretary under sub- filed under this subtitle challenging an sued under subsection (c) may obtain review section (b). The court may issue an order re- order, or any obligation imposed in con- of the penalty or order in the district court quiring the person to comply with the sub- nected with an order, shall be filed not later of the United States for the district in which poena. (d) CONTEMPT.—Any failure to obey the than 2 years after the effective date of the the person resides or does business, or the order of the court may be punished by the order or obligation. United States district court for the District court as a contempt of the order. (b) REVIEW.— of Columbia, by— (e) PROCESS.—Process in any such case (A) filing a notice of appeal in the court (1) COMMENCEMENT OF ACTION.—The district may be served in the judicial district of not later than 30 days after the date of the court of the United States in any district in which the person resides or conducts busi- which the person who is a petitioner under order; and ness or wherever the person may be found. subsection (a) resides or carries on business (B) simultaneously sending a copy of the (f) HEARING SITE.—The site of any hearing is vested with jurisdiction to review the rul- notice by certified mail to the Secretary. held under section 948 or 949 shall be within ing on the petition of the person, if a com- (2) RECORD.—The Secretary shall promptly the judicial district where the person is an plaint for that purpose is filed not later than file in the court a certified copy of the record inhabitant or has a principal place of busi- 20 days after the date of the entry of a ruling on which the Secretary found that the per- ness. by the Secretary under subsection (a). son had committed a violation. SEC. 951. REFERENDA. (2) PROCESS.—Service of process in the pro- (3) STANDARD OF REVIEW.—A finding of the (a) INITIAL REFERENDUM.— ceedings shall be conducted in accordance Secretary shall be set aside only if the find- (1) REFERENDUM REQUIRED.—During the 60- with the Federal Rules of Civil Procedure. ing is found to be unsupported by substantial day period immediately preceding the pro- (3) REMANDS.—If the court determines that evidence. posed effective date of an order issued under the ruling is not in accordance with law, the (e) FAILURE TO OBEY ORDERS.—Any person section 944, the Secretary shall conduct a court shall remand the matter to the Sec- who fails to obey a cease-and-desist order is- referendum among kiwifruit producers and retary with directions— sued by the Secretary after the order has be- importers who will be subject to assessments (A) to make such ruling as the court shall come final and unappealable, or after the ap- under the order, to ascertain whether pro- propriate United States district court has determine to be in accordance with law; or ducers and importers approve the implemen- entered a final judgment in favor of the Sec- (B) to take such further action as, in the tation of the order. retary, shall be subject to a civil penalty as- opinion of the court, the law requires. (2) APPROVAL OF ORDER.—The order shall sessed by the Secretary, after opportunity (4) ENFORCEMENT.—The pendency of a pro- become effective, as provided in section 944, for a hearing and for judicial review under ceeding instituted pursuant to subsection (a) if the Secretary determines that— the procedures specified in subsections (c) shall not impede, hinder, or delay the Attor- (A) the order has been approved by a ma- and (d), of not more than $500 for each of- ney General or the Secretary from obtaining jority of the producers and importers voting fense. Each day during which the failure con- relief pursuant to section 949. in the referendum; and tinues shall be considered a separate viola- SEC. 949. ENFORCEMENT. (B) the producers and importers produce tion of the order. (a) JURISDICTION.—A district court of the (f) FAILURE TO PAY PENALTIES.—If a person and import more than 50 percent of the total United States shall have jurisdiction specifi- fails to pay an assessment of a civil penalty volume of kiwifruit produced and imported cally to enforce, and to prevent and restrain after the assessment has become a final and by persons voting in the referendum. any person from violating, any order or regu- unappealable order issued by the Secretary, (b) SUBSEQUENT REFERENDA.—The Sec- lation made or issued by the Secretary under or after the appropriate United States dis- retary may periodically conduct a referen- dum to determine if kiwifruit producers and this subtitle. trict court has entered final judgment in importers favor the continuation, termi- (b) REFERRAL TO ATTORNEY GENERAL.—A favor of the Secretary, the Secretary shall nation, or suspension of any order issued civil action authorized to be brought under refer the matter to the Attorney General for under section 944 that is in effect at the time this section shall be referred to the Attorney recovery of the amount assessed in the dis- of the referendum. General for appropriate action, except that trict court of the United States in any dis- the Secretary is not required to refer to the (c) REQUIRED REFERENDA.—The Secretary trict in which the person resides or conducts shall hold a referendum under subsection Attorney General a violation of this subtitle, business. In the action, the validity and ap- (b)— or any order or regulation issued under this propriateness of the final order imposing the (1) at the end of the 6-year period begin- subtitle, if the Secretary believes that the civil penalty shall not be subject to review. ning on the effective date of the order and at administration and enforcement of this sub- SEC. 950. INVESTIGATIONS AND POWER TO SUB- the end of each subsequent 6-year period; title would be adequately served by adminis- POENA. (2) at the request of the Board; or trative action under subsection (c) or suit- (a) IN GENERAL.—The Secretary may make (3) if not less than 30 percent of the able written notice or warning to any person such investigations as the Secretary consid- kiwifruit producers and importers subject to committing the violation. ers necessary— assessments under the order submit a peti- (c) CIVIL PENALTIES AND ORDERS.— (1) for the effective carrying out of the re- tion requesting the referendum. (1) CIVIL PENALTIES.—Any person who will- sponsibilities of the Secretary under this (d) VOTE.—On completion of a referendum fully violates any provision of any order or subtitle; or under subsection (b), the Secretary shall sus- regulation issued by the Secretary under (2) to determine whether a person subject pend or terminate the order that was subject this subtitle, or who fails or refuses to pay, to this subtitle has engaged or is engaging in to the referendum at the end of the market- collect, or remit any assessment or fee duly any act that constitutes a violation of this ing year if— required of the person under the order or reg- subtitle, or any order, rule, or regulation is- (1) the suspension or termination of the ulation, may be assessed a civil penalty by sued under this subtitle. order is favored by not less than a majority the Secretary of not less than $500 nor more (b) POWER TO SUBPOENA.— of the producers and importers voting in the than $5,000 for each such violation. Each vio- (1) INVESTIGATIONS.—For the purpose of an referendum; and lation shall be a separate offense. investigation made under subsection (a), the (2) the producers and importers produce (2) CEASE-AND-DESIST ORDERS.—In addition Secretary may administer oaths and affir- and import more than 50 percent of the total to or in lieu of the civil penalty, the Sec- mations and may issue subpoenas to require volume of kiwifruit produced and imported retary may issue an order requiring the per- the production of any records that are rel- by persons voting in the referendum. son to cease and desist from continuing the evant to the inquiry. The production of any (e) CONFIDENTIALITY.—The ballots and violation. such records may be required from any place other information or reports that reveal, or (3) NOTICE AND HEARING.—No order assess- in the United States. tend to reveal, the vote of any person under ing a civil penalty or cease-and-desist order (2) ADMINISTRATIVE HEARINGS.—For the this subtitle and the voting list shall be held may be issued by the Secretary under this purpose of an administrative hearing held strictly confidential and shall not be dis- subsection unless the Secretary gives the under section 948 or 949, the presiding officer closed. person against whom the order is issued no- is authorized to administer oaths and affir- SEC. 952. SUSPENSION AND TERMINATION OF tice and opportunity for a hearing on the mations, subpoena witnesses, compel the at- ORDER BY SECRETARY. record before the Secretary with respect to tendance of witnesses, take evidence, and re- (a) IN GENERAL.—If the Secretary finds the violation. quire the production of any records that are that an order issued under section 944, or a S 1140 CONGRESSIONAL RECORD — SENATE February 7, 1996 provision of the order, obstructs or does not to amendment No. 3184 proposed by Mr. amendment No. 3184 proposed by Mr. tend to effectuate the purposes of this sub- LEAHY to the bill S. 1541, supra; as fol- LEAHY to the bill S. 1541, supra; as fol- title, the Secretary shall terminate or sus- lows: lows: pend the operation of the order or provision. AMENDMENT NO. 3445 Title V is amended by adding at the end (b) LIMITATION.—The termination or sus- pension of any order, or any provision of an Strike section 505 and insert: ‘‘Notwith- the following: order, shall not be considered an order under standing the provisions of section 110, the ‘‘SEC. 507. FUND FOR RURAL AMERICA. this subtitle. Secretary shall carry out the Farmer Owned ‘‘(a) IN GENERAL.—The Secretary shall cre- SEC. 953. REGULATIONS. Reserve Program in accordance with section ate an account called the Fund for Rural America for the purposes of providing funds The Secretary may issue such regulations 110 of the Agricultural Act of 1949 (7 U.S.C. for activities described in subsection (c). as are necessary to carry out this subtitle. 1421 et seq.) as it existed prior to the enact- ment of this Act.’’ ‘‘(b) COMMODITY CREDIT CORPORATION.—In SEC. 954. AUTHORIZATION OF APPROPRIATIONS. each of the 1996 through 1998 fiscal years, the There are authorized to be appropriated AMENDMENT NO. 3446 Secretary shall transfer into the Fund for such funds as are necessary to carry out this Rural America (hereafter referred to as the subtitle for each fiscal year. At the appropriate place insert the follow- ing: ‘‘Notwithstanding the provisions of sec- ‘‘Account’’)— Subtitle D—Commodity Promotion and tion 110, the Secretary shall carry out the ‘‘(1) $50,000,000 for the 1996 fiscal year; ‘‘(2) $100,000,000 for the 1997 fiscal year; and Evaluation Farmer Owned Reserve Program in accord- ‘‘(3) $150,000,000 for the 1998 fiscal year. SEC. 961. COMMODITY PROMOTION AND EVALUA- ance with section 110 of the Agricultural Act ‘‘(c) PURPOSES.—Except as provided in sub- TION. of 1949 (7 U.S.C. 1421 et seq.) as it existed section (d), the Secretary shall provide not (a) FINDINGS.—Congress finds that— prior to the enactment of this Act.’’ (1) it is in the national public interest and more than one-third of the funds from the vital to the welfare of the agricultural econ- Account for activities described in paragraph omy of the United States to expand and de- BRYAN (AND OTHERS) (2). velop markets for agricultural commodities AMENDMENT NO. 3447 ‘‘(1) RURAL DEVELOPMENT ACTIVITIES.—The through generic, industry-funded promotion Secretary may use the funds in the Account Mr. BRYAN (for himself, Mr. BUMP- for the following rural development activi- programs; ERS, Mr. KERRY, Mr. MCCAIN, and Mr. (2) the programs play a unique role in ad- ties authorized in: REID) proposed an amendment to vancing the demand for agricultural com- ‘‘(A) The Housing Act of 1949 for— modities, since the programs increase the amendment No. 3184 proposed by Mr. ‘‘(i) direct loans to low income borrowers total market for a product to the benefit of LEAHY to the bill S. 1541, supra; as fol- pursuant to section 502; consumers and all producers; lows: ‘‘(ii) loans for financial assistance for hous- ing for domestic farm laborers pursuant to (3) the programs complement branded ad- In Title II, Section 202, on page 2–2, line 8, vertising initiatives, which are aimed at in- section 514; strike ‘‘$100,000,000’’ and insert ‘‘$70,000,000’’ ‘‘(iii) financial assistance for housing of creasing the market share of individual com- where appropriate. domestic farm labor pursuant to section 516; petitors; In Title II, Section 202, on page 2–2, after ‘‘(iv) grants and contracts for mutual and (4) the programs are of particular benefit line 9 and before line 10 insert the following: self help housing pursuant to section to small producers, who may lack the re- ‘‘Provided further, That funds made avail- 523(b)(1)(A); and sources or market power to advertise on able under this Act to carry out the non-ge- ‘‘(v) grants for Rural Housing Preservation their own; neric activities of the market promotion pursuant to section 533; (5) the programs do not impede the branded program established under section 203 of the ‘‘(B) The Food Security Act of 1985 for advertising efforts of individual firms but in- Agricultural Trade Act of 1978 (7 U.S.C. 5623) loans to intermediary borrowers under the stead increase market demand by methods may be used to provide cost-share assistance Rural Development Loan Fund; that each individual entity would not have only to organizations that are non-foreign ‘‘(C) Consolidated Farm and Rural Devel- the incentive to employ; entities and are recognized as small business opment Act for— (6) the programs, paid for by the producers concerns under section 3(a) of the Small ‘‘(i) grants for Rural Business Enterprises who directly reap the benefits of the pro- Business Act (15 U.S.C. 632(a)) or to the asso- pursuant to section 310B(c) and (j); grams, provide a unique opportunity for ag- ciations described in the first section of the ‘‘(ii) direct loans, loan guarantees and ricultural producers to inform consumers Act entitled ‘An Act to authorize association grants for water and waste water projects about their products; of producers of agricultural products’, ap- pursuant to section 306; and (7) it is important to ensure that the pro- proved February 22, 1992 (7 U.S.C. 291). ‘‘(iii) down payments assistance to farm- grams be carried out in an effective and co- ‘‘Provided further, that such funds may not ers, section 310E; ordinated manner that is designed to be used to provide cost-share assistance to a ‘‘(D) grants for outreach to socially dis- strengthen the position of the commodities foreign eligible trade organization: advantaged farmers and ranchers pursuant in the marketplace and to maintain and ex- ‘‘Provided further, That none of the funds to section 2501 of the Food, Agriculture, Con- pand the markets and uses of the commod- made available under this Act may be used servation, and Trade Act of 1990 (7 U.S.C. ities; and to carry out the market promotion program 2279); and (8) independent evaluation of the effective- established under section 203 of the Agricul- ‘‘(E) grants pursuant to section 204(6) of ness of the programs will assist Congress and tural Trade Act of 1978 (7 U.S.C. 5623) if the the Agricultural Marketing Act of 1946. the Secretary of Agriculture in ensuring aggregate amount of funds and value of com- ‘‘(2) RESEARCH— that the objectives of the programs are met. modities under the program exceeds ‘‘(A) IN GENERAL.—The Secretary may use (b) INDEPENDENT EVALUATIONS.—Except as $70,000,000.’’ the funds in the Account for research grants otherwise provided by law, and at such inter- to increase the competitiveness and farm vals as the Secretary of Agriculture may de- profitability, protect and enhance natural termine, but not more frequently than every HARKIN (AND WELLSTONE) AMENDMENT NO. 3448 resources, increase economic opportunities 3 years or 3 years after the establishment of in farming and rural communities and ex- a program, the Secretary shall require that Mr. HARKIN (for himself and Mr. pand locally owned value added processing each industry-funded generic promotion pro- WELLSTONE) proposed an amendment to and marketing operations. gram authorized by Federal law for an agri- amendment No. 3184 proposed by Mr. ‘‘(B) ELIGIBLE GRANTEE.—The Secretary cultural commodity shall provide for an may make a grant under this paragraph to— independent evaluation of the program and LEAHY to the bill S. 1541, supra; as fol- lows: ‘‘(i) a college or university; the effectiveness of the program. The evalua- ‘‘(ii) a State agricultural experiment sta- tion may include an analysis of benefits, Section 314 is amended by striking ‘‘(ii) tion; costs, and the efficacy of promotional and re- 10,000 beef cattle’’ and all that follows ‘‘(iii) a State Cooperative Extension Serv- search efforts under the program. The eval- through ‘‘lambs;’’ and inserting the follow- ice; uation shall be funded from industry assess- ing: ‘‘(iv) a research institution or organiza- ments and made available to the public. ‘‘(ii) 1,000 beef cattle; tion; (c) ADMINISTRATIVE COSTS.—The Secretary ‘‘(iii) 100,000 laying hens or broilers; ‘‘(v) a private organization or person; or shall provide to Congress annually informa- ‘‘(iv) 55,000 turkeys; ‘‘(iv) a Federal agency. tion on administrative expenses on programs ‘‘(v) 2,500 swine; or ‘‘(C) USE OF GRANT.— referred to in subsection (b). ‘‘(vi) 10,000 sheep or lambs.’’ ‘‘(i) IN GENERAL.—A grant made under this paragraph may be used by a grantee for 1 or HARKIN (AND WELLSTONE) FORD (AND DASCHLE) more of the following uses; AMENDMENTS NOS. 3445–3446 AMENDMENT NO. 3449 ‘‘(I) research, ranging from discovery to principles of application; Mr. HARKIN (for himself and Mr. Mr. FORD (for himself and Mr. ‘‘(II) extension and related private-sector WELLSTONE) proposed two amendments DASCHLE) proposed an amendment to activities; and February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1141 ‘‘(III) education. (A) the lesser of— no case shall the final payment be less than ‘‘(ii) LIMITATION.—No grant shall be made (i) 85 percent of the contract acreage, or zero. for any project, determined by the Sec- (ii) the contract acres planted to a con- ‘‘(f) 1996 RICE OPTION.—In the case of the retary, to be eligible for funding under re- tract commodity or oilseeds; 1996 crop of rice, any producer shall have the search and commodity promotion programs option of participating under the terms and administered by the Department. conditions of— ‘‘(D) ADMINISTRATION.— DASCHLE (AND OTHERS) ‘‘(1) the program announced by the Sec- ‘‘(i) PRIORITY.—In administering this para- AMENDMENT NO. 3452 retary prior to the date of enactment of this graph, the Secretary shall— Mr. DASCHLE (for himself, Mr. Act; or ‘‘(I) establish priorities for allocating ‘‘(2) the program administered in accord- PRYOR, Mr. HARKIN, Mr. BUMPERS, Mr. grants, based on needs and oppportunities of ance with this Act.’’ the food and agriculture system in the Unit- CONRAD, Mr. DORGAN, Mr. HEFLIN, Mr. ‘‘(4) in section 104— ed States related to the goals of the para- EXON, Mr. BREAUX, Mrs. BOXER, Mr. ‘‘(A) in subsection (a) by striking para- graph; KERREY, and Mr. BAUCUS) proposed an graph (1) and insert the following: ‘‘(II) seek and accept proposals for grants; amendment to amendment No. 3184 ‘‘(1) AVAILABILITY.—For each of the 1996 ‘‘(III) determine the relevance and merit of proposed by Mr. LEAHY to the bill S. through 1998 crops of each loan commodity, proposals through a system of peer and 1541, supra; as follows: the Secretary shall make available to pro- stakeholder review; and ducers on a farm nonrecourse marketing as- ‘‘(IV) award grants on the basis of merit, (a) Title I is amended by— sistance loans for loan commodity producer quality, and relevance to advancing the na- (1) striking ‘‘2002’’ each place it appears on crop acreage base (as determined in ac- tional research and extension purposes. and inserting ‘‘1998’’; cordance with Title V of the Agricultural ‘‘(ii) COMPETITIVE AWARDING.—A grant (2) striking ‘‘2003’’ each place it appears Act of 1949 for the 1995 crop) on the farm. The under this paragraph shall be awarded on a and inserting ‘‘1999’’; loans shall be made under terms and condi- competitive basis. (3) in section 103— tions that are prescribed by the Secretary ‘‘(iii) TERMS.—A grant under this para- (A) in subsection (a)(3) by striking ‘‘opera- and at the loan rate established under sub- graph shall have a term that does not exceed tors who are’’; section (b) for the loan commodities.’’ 5 years. (B) in subsection (j)(2)(A)(iii) after ‘‘15 per- ‘‘(B) in subsection (b)— ‘‘(iv) MATCHING FUNDS.—As a condition of cent’’ insert the following: ‘‘(or in the case of ‘‘(i) by striking paragraph (1) and inserting receipts under this paragraph, the Secretary a producer participating in the Integrated the following: shall require the funding of the grant with Farm Management Program Option estab- ‘‘(1) WHEAT 90 PERCENT MARKETING LOAN.— equal matching funds from a non-Federal lished under section 1451 of the Food, Agri- The loan rate for a marketing assistance source if the grant is— culture, Conservation, and Trade Act of 1990 loan for wheat shall be not less than 90 per- ‘‘(I) for applied research that is commod- (7 U.S.C. 5822), which is authorized to be car- cent of the simple average price received by ity-specific; and ried out through the end of calendar year producers of wheat, as determined by the ‘‘(II) not of national scope. 1998, 30 percent)’’; and Secretary, during the marketing years for ‘‘(v) ADMINISTRATIVE COSTS.— (C) by striking subsections (d) through (f) the immediately preceding 5 crops of wheat, ‘‘(I) IN GENERAL.—The Secretary may use and inserting the following: excluding the year in which the average not more than 4 percent of the funds made ‘‘(e) CONTRACT PAYMENTS.— price was the highest and the year in which available under this paragraph for adminis- ‘‘(1) IN GENERAL.—The Secretary shall pro- the average price was the lowest in the pe- trative costs incurred by the Secretary in vide adavnaced and final payments to owners riod.’’ carrying out this paragraph. and operators in accordance with this sub- ‘‘(ii) by striking paragraph (2) and insert- ‘‘(II) LIMITATION.—Funds made available section. ing the following: under this paragraph shall not be used— ‘‘(2) ADVANCED PAYMENTS.— ‘‘(2) FEED GRAINS 90 PERCENT MARKETING ‘‘(aa) for the construction of a new build- ‘‘(A) IN GENERAL.—An owner or operator LOAN.— ing or the acquisition, expansion, remodel- shall receive an advanced payment by June ‘‘(A) IN GENERAL.—The loan rate for a mar- ing, or alteration of an existing building (in- 15 for the 1996 fiscal year and December 15 keting assistance loan for corn shall be not cluding site grading and improvement and for the 1997 and 1998 fiscal years which rep- less than 90 percent of the simple average architect fees); or resents the product of— price received by producers of corn, as deter- ‘‘(bb) in excess of ten percent of the annual ‘‘(i) the applicable payment rate described mined by the Secretary, during the market- allocation for commodity-specific projects in subparagraph (B); ing years for the immediately preceding 5 not of the national scope. ‘‘(ii) the farm program payment yield; and crops of corn, excluding the year in which ‘‘(d) LIMITATIONS.—No funds from the Fund ‘‘(iii) 85 percent of the contract acreage. the average price was the highest and the for Rural America may be used for an activ- year in which the average price was the low- ity specified in subsection (c) if the current ‘‘(B) PAYMENT RATE.—The payment rate shall be 40 percent of the average deficiency est in the period. level of appropriations for the activity is less ‘‘(B) OTHER FEED GRAINS.—The loan rate than 90 percent of the 1996 fiscal year appro- payment rate for the 1990 through 1994 the specific contract commodity. for a marketing assistance loan for grain priations for the activity adjusted for infla- sorghum, barley, and oats, respectively, ‘‘(3) FINAL PAYMENT.— tion.’’ shall be established at such level as the Sec- ‘‘(A) IN GENERAL.—The Secretary shall make a final payment which represents the retary determines is fair and reasonable in GREGG (AND OTHERS) county rate described in subparagraph (B) relation to the rate that loans are made AMENDMENT NO. 3450 multiplied by lessor of— available for corn, taking into consideration the feeding value of the commodity in rela- Mr. GREGG (for himself, Mr. REID, ‘‘(i) 85 percent of the contract acreage; or ‘‘(ii) contract acreage planted to the con- tion to corn.’’ Mr. SANTORUM, Mrs. FEINSTEIN, Mr. ‘‘(iii) by striking paragraph (5) and insert- tract commodity or to a minor oilseed, as de- CHAFEE, Mr. MCCAIN, and Mr. KERRY) ing the following: termined by the Secretary. ‘‘(5) RICE 90 PERCENT MARKETING LOAN.—The proposed an amendment to amendment ‘‘(B) COUNTY RATE.—The county rate is the loan rate for a marketing assistance loan for No. 3184 proposed by Mr. LEAHY to the difference between the target county revenue bill S. 1541, supra; as follows: rice shall be— described in clause (i) and the current coun- ‘‘(A) not less than 90 percent of the simple Notwithstanding any other provision of ty revenue described in clause (ii)— average price received by producers of rice, this Act, none of the provision dealing with ‘‘(i) TARGET COUNTY REVENUE.—The target as determined by the Secretary, during the or extending the Sugar Price Support Pro- county revenue shall equal to the product marketing years for the immediately preced- gram shall be enforced. of— ing 5 crops of rice, excluding the year in ‘‘(I) the five year average county yield for which the average price was the highest and DORGAN (AND OTHERS) the contract commodity, excluding the year the year in which the average price was the AMENDMENT NO. 3451 in which the average yield was the highest lowest in the period; but and the lowest; and ‘‘(B) not less than $6.50.’’ Mr. DORGAN (for himself, Mr. ‘‘(II) the established price for the commod- (iv) by striking paragraph (6) and inserting DASCHLE, Mr. CONRAD, Mr. KERREY, Mr. ity for the 1995 crop. the following: HARKIN, Mr. WELLSTONE, Mr. KOHL, Mr. ‘‘(ii) CURRENT COUNTY REVENUE.—The cur- ‘‘(6) OILSEEDS MARKETING LOAN.— EXON, Mr. PRYOR, Mr. FEINGOLD, Mr. rent county revenue shall equal the product ‘‘(A) SOYBEANS.—The loan rate for a mar- of— HEFLIN, and Mr. BUMPERS) proposed an keting assistance loan for soybeans, shall ‘‘(I) the average price for the contract com- be— amendment to amendment No. 3184 modity for the first five months of the mar- ‘‘(i) not less than 90 percent of the simple proposed by Mr. LEAHY to the bill S. keting year; and average price received by producers of soy- 1541, supra; as follows: ‘‘(II) the county average yield for the con- beans, as determined by the Secretary, dur- Section 103(f)(1) is amended by striking tract commodity. ing 3 years of the 5 previous marketing subparagraph (A) and inserting the follow- ‘‘(iii) LIMITATION.—The final payment shall years, excluding the year in which the aver- ing: be reduced by the advanced payment, but in age price was the highest and the year in S 1142 CONGRESSIONAL RECORD — SENATE February 7, 1996 which the average price was the lowest in warehouse storage loans available in each of additional peanuts for domestic and export the period; but the 3 producing areas described in section edible use. ‘‘(ii) not less than $4.92 per bushel. 1446.95 of title 7, Code of Federal Regulations (C) ADDITIONAL PEANUT GAINS.—Further ‘‘(B) SUNFLOWER SEED, CANOLA, RAPESEED, (as of January 1, 1989), to a designated area losses in an area quota pool shall be offset by SAFFLOWER, MUSTARD SEED, AND FLAX SEED.— marketing association of peanut producers gains or profits attributable to sales of addi- The loan rate for a marketing assistance that is selected and approved by the Sec- tional peanuts in that area for domestic edi- loan for each of sunflower seed, canola, retary and that is operated primarily for the ble and other uses. rapeseed, safflower, mustard seed, and purpose of conducting the loan activities. (D) USE OF MARKETING ASSESSMENTS.—The flaxseed, shall be— The Secretary may not make warehouse Secretary shall use funds collected under ‘‘(i) not less than 90 percent of the simple storage loans available to any cooperative paragraph (7) to offset further losses in area average price received by producers of sun- that is engaged in operations or activities quota pools. The Secretary shall transfer to flower seed, as determined by the Secretary, concerning peanuts other than those oper- the Treasury those funds collected under during 3 years of the 5 previous marketing ations and activities specified in this sub- paragraph (7) and available for use under this years, excluding the year in which the aver- section and sections 358e of the Agricultural subsection that the Secretary determines are age price was the highest and the year in Adjustment Act of 1938 (7 U.S.C. 1359a). not required to cover losses in area quota pools. which the average price was the lowest in (ii) ADMINISTRATIVE AND SUPERVISORY AC- (E) CROSS COMPLIANCE.—Further losses in the period; but TIVITIES.—The area marketing associations ‘‘(ii) not less than $0.087 per pound. shall be used in administrative and super- area quota pools, other than losses incurred as a result of transfers from additional loan ‘‘(C) OTHER OILSEEDS.—The loan rates for visory activities relating to price support pools to quota loan pools under section 358– marketing assistance loan for other oilseeds and marketing activities under this sub- 1(b)(2)(B)(v) of the Agricultural Adjustment shall be established at such level as the Sec- section and sections 358e of the Agricultural Act of 1938 (as amended by subsection (c)), retary determines is fair and reasonable in Adjustment Act of 1938. shall be offset by any gains or profits from relation to the loan rate available for soy- (iii) ASSOCIATION COSTS.—Loans made to an pools in other production areas (other than beans, except in no event shall the rate for area marketing association under this sub- separate type pools established under para- the oilseeds (other than cottonseed) be less paragraph shall include, in addition to the graph (3)(B)(i) for Valencia peanuts produced than the rate established for soybeans on a price support value of the peanuts, such per-pound basis for the same crop.’’ in New Mexico) in such manner as the Sec- costs as the association reasonably may retary shall by regulation prescribe. (C) in subsection (i)(1) by adding at the end incur in carrying out the responsibilities, op- (F) INCREASED ASSESSMENTS.—If use of the the following: ‘‘The Secretary may not re- erations, and activities of the association duce the national loan for a crop in a county authorities provided in the preceding para- under this subsection and sections 358e of the graphs is not sufficient to cover losses in an by an amount in excess of 3 percent of the Agricultural Adjustment Act of 1938. national average loan.’’ area quota pool, the Secretary shall increase (B) POOLS FOR QUOTA AND ADDITIONAL PEA- the marketing assessment established under (5) PEANUT PROGRAM.—Strike section 106 NUTS.— and insert the following: paragraph (7) by such an amount as the Sec- (i) IN GENERAL.—The Secretary shall re- retary considers necessary to cover the ‘‘SEC. 106. PEANUT PROGRAM. quire that each area marketing association losses. Amounts collected under paragraph ‘‘(a) PRICE SUPPORT PROGRAM.— establish pools and maintain complete and (7) as a result of the increased assessment ‘‘(1) QUOTA PEANUTS.— accurate records by area and segregation for shall be retained by the Secretary to cover ‘‘(A) IN GENERAL.—The Secretary shall quota peanuts handled under loan and for ad- losses in that pool. make price support available to producer ditional peanuts placed under loan, except (5) DISAPPROVAL OF QUOTAS.—Notwith- through loans, purchases, and other oper- that separate pools shall be established for standing any other provision of law, no price ations on quota peanuts for each of the 1996 Valencia peanuts produced in New Mexico. support may be made available by the Sec- through 1998 crops. Peanuts produced outside New Mexico shall retary for any crop of peanuts with respect ‘‘(B) SUPPORT RATES.—The national aver- not be eligible for entry into or participation to which poundage quotas have been dis- age quota support rate for each of the 1996 in the separate pools established for Valen- approved by producers, as provided for in through 1998 crops of quota peanuts shall be cia peanuts produced in New Mexico. Bright section 358–1(d) of the Agricultural Adjust- 640 dollars per ton. hull and dark hull Valencia peanuts shall be ment Act of 1938 (as amended by subsection ‘‘(C) INSPECTION, HANDLING, OR STORAGE.— considered as separate types for the purpose (c)). The level of support determined under sub- of establishing the pools. (6) QUALITY IMPROVEMENT.— paragraph (B) shall not be reduced by any de- (ii) NET GAINS.—Net gains on peanuts in (A) PRICE SUPPORT PEANUTS.—With respect duction for inspection, handling, or storage; each pool, unless otherwise approved by the to peanuts under price support loan, the Sec- and Secretary, shall be distributed only to pro- retary shall— (D) LOCATION AND OTHER FACTORS.—The ducers who placed peanuts in the pool and (i) promote the crushing of peanuts at a Secretary may make adjustments for loca- shall be distributed in proportion to the greater risk of deterioration before peanuts tion of peanuts and such other factors as are value of the peanuts placed in the pool by at a lesser risk of deterioration; authorized by section 104(i). each producer. Net gains for peanuts in each (ii) ensure that all Commodity Credit Cor- (E) ANNOUNCEMENT.—The Secretary shall pool shall consist of the following: poration loan stocks of peanuts sold for do- announce the level of support for quota pea- (I) QUOTA PEANUTS.—For quota peanuts, mestic edible use are shown to have been of- nuts of each crop not later than the Feb- the net gains over and above the loan indebt- ficially inspected by licensed Department of ruary 15 preceding the marketing year for edness and other costs or losses incurred on Agriculture inspectors both as farmer stock the crop for which the level of support is peanuts placed in the pool plus an amount and shelled or cleaned in-shell peanuts; being determined. from all additional pool gains equal to any (iii) continue to endeavor to operate the (2) ADDITIONAL PEANUTS.— loss on disposition of all peanuts in the pool peanut price support program so as to im- (A) IN GENERAL.—The Secretary shall make for quota peanuts. prove the quality of domestic peanuts and price support available to producers through (II) ADDITIONAL PEANUTS.—For additional ensure the coordination of activities under loans, purchases, or other operations on ad- peanuts, the net gains over and above the the Peanut Administrative Committee es- ditional peanuts for each of the 1996 through loan indebtedness and other costs or losses tablished under Marketing Agreement No. 2002 crops at such levels as the Secretary incurred on peanuts placed in the pool for 146, regulating the quality of domestically considers appropriate, taking into consider- additional peanuts less any amount allo- produced peanuts (under the Agricultural ation the demand for peanut oil and peanut cated to offset any loss on the pool for quota Adjustment Act (7 U.S.C. 601 et seq.), reen- meal, expected prices of other vegetable oils peanuts as provided in subclause (I). acted with amendments by the Agricultural and protein meals, and the demand for pea- (4) LOSSES.—Losses in quota area pools Marketing Agreement Act of 1937); and nuts in foreign markets, except that the Sec- shall be covered using the following sources (iv) ensure that any changes made in the retary shall set the support rate on addi- in the following order of priority: price support program as a result of this tional peanuts at a level estimated by the (A) TRANSFERS FROM ADDITIONAL LOAN paragraph requiring additional production or Secretary to ensure that there are no losses POOLS.—The proceeds due any producer from handling at the farm level are reflected as an to the Commodity Credit Corporation on the any pool shall be reduced by the amount of upward adjustment in the Department of Ag- sale or disposal of the peanuts. any loss that is incurred with respect to pea- riculture loan schedule. (B) ANNOUNCEMENT.—The Secretary shall nuts transferred from an additional loan pool (B) EXPORTS AND OTHER PEANUTS.—The announce the level of support for additional to a quota loan pool by the producer under Secretary shall require that all peanuts, in- peanuts of each crop not later than the Feb- section 358–1(b)(2)(B)(v) of the Agricultural cluding peanuts imported into the United ruary 15 preceding the marketing year for Adjustment Act of 1938 (as amended by sub- States, meet all United States quality stand- the crop for which the level of support is section (c)). ards under Marketing Agreement No. 146 and being determined. (B) OTHER PRODUCERS IN SAME POOL.—Fur- that importers of the peanuts fully comply (3) AREA MARKETING ASSOCIATIONS.— ther losses in an area quota pool shall be off- with inspection, handling, storage, and proc- (A) WAREHOUSE STORAGE LOANS.— set by reducing the gain of any producer in essing requirements implemented under (i) IN GENERAL.—In carrying out para- the pool by the amount of pool gains attrib- Marketing Agreement No. 146. The Secretary graphs (1) and (2), the Secretary shall make uted to the same producer from the sale of shall ensure that peanuts produced for the February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1143 export market meet quality, inspection, han- tive only for the 1996 through 2002 crops of (D), if the poundage quota apportioned to a dling, storage, and processing requirements peanuts. State under subsection (a)(3) for any of the under Marketing Agreement No. 146. (b) SUSPENSION OF MARKETING QUOTAS AND 1996 through 2002 marketing years is in- (7) MARKETING ASSESSMENT.— ACREAGE ALLOTMENTS.—Section 371 of the creased over the poundage quota apportioned (A) IN GENERAL.—The Secretary shall pro- Agricultural Adjustment Act of 1938 (7 U.S.C. to farms in the State for the immediately vide, by regulation, for a nonrefundable mar- 1371) shall not be applicable to the 1996 preceding marketing year, the increase shall keting assessment applicable to each of the through 2002 crops of peanuts. be allocated proportionately, based on farm 1996 through 2002 crops of peanuts. The as- (c) NATIONAL POUNDAGE QUOTAS AND ACRE- production history for peanuts for the 3 im- sessment shall be made in accordance with AGE ALLOTMENTS.—Section 358–1 of the Agri- mediately preceding years, among— cultural Adjustment Act of 1938 (7 U.S.C. this paragraph and shall be on a per pound ‘‘(i) all farms in the State for which a farm 1358–1) is amended to read as follows: basis in an amount equal to 1.2 percent of poundage quota was established for the mar- the national average quota or additional pea- ‘‘SEC. 358–1. NATIONAL POUNDAGE QUOTAS AND keting year immediately preceding the mar- ACREAGE ALLOTMENTS FOR 1996 nut support rate per pound, as applicable, for keting year for which the allocation is being THROUGH 2002 CROPS OF PEANUTS. made; and the applicable crop. No peanuts shall be as- ‘‘(a) NATIONAL POUNDAGE QUOTAS.— ‘‘(ii) all other farms in the State on which sessed more than 1.2 percent of the applica- ‘‘(1) ESTABLISHMENT.—The national pound- peanuts were produced in at least 2 of the 3 ble support rate under this paragraph. age quota for peanuts for each of the 1996 immediately preceding crop years, as deter- (B) FIRST PURCHASERS.— through 2002 marketing years shall be estab- mined by the Secretary. (i) IN GENERAL.—Except as provided under lished by the Secretary at a level that is ‘‘(B) TEMPORARY QUOTA ALLOCATION.— subparagraphs (C) and (D), the first pur- equal to the quantity of peanuts (in tons) ‘‘(i) IN GENERAL.—Subject to clause (iv), chaser of peanuts shall— that the Secretary estimates will be devoted temporary allocation of a poundage quota (I) collect from the producer a marketing in each such marketing year to domestic edi- for the marketing year in which a crop of assessment equal to the quantity of peanuts ble and related uses, excluding seed. The peanuts is planted shall be made to produc- acquired multiplied by .65 percent of the ap- Secretary shall include in the annual esti- ers for each of the 1996 through 2002 market- plicable national average support rate; mate of domestic edible and related uses, the ing years in accordance with this subpara- (II) pay, in addition to the amount col- estimated quantity of peanuts and peanut graph. lected under subclause (I), a marketing as- products to be imported into the United ‘‘(ii) QUANTITY.—The temporary quota allo- sessment in an amount equal to the quantity States for the marketing year for which the cation shall be equal to the quantity of seed of peanuts acquired multiplied by .55 percent quota is being established. peanuts (in pounds) planted on a farm, as de- of the applicable national average support ‘‘(2) ANNOUNCEMENT.—The national pound- termined in accordance with regulations is- rate; and age quota for a marketing year shall be an- sued by the Secretary. (III) remit the amounts required under nounced by the Secretary not later than the ‘‘(iii) ALLOCATION.—The allocation of quota subclauses (I) and (II) to the Commodity December 15 preceding the marketing year. pounds to producers under this subparagraph Credit Corporation in a manner specified by ‘‘(3) APPORTIONMENT AMONG STATES.—The shall be performed in such a manner as will the Secretary. national poundage quota established under not result in a net decrease in quota pounds (ii) IMPORTED PEANUTS.—In the case of im- paragraph (1) shall be apportioned among the on a farm in excess of 3 percent, after the ported peanuts, the first purchaser shall pay States so that the poundage quota allocated temporary seed quota is added, from the to the Commodity Credit Corporation, in a to each State is equal to the percentage of basic farm quota for the 1995 marketing manner specified by the Secretary, a mar- the national poundage quota allocated to year. A decrease shall occur only once, shall keting assessment in an amount equal to the farms in the State for 1995. be applicable only to the 1996 marketing quantity of peanuts acquired multiplied by ‘‘(b) FARM POUNDAGE QUOTAS.— year. 1.2 percent of the national average support ‘‘(1) IN GENERAL.— ‘‘(iv) NO INCREASED COSTS.—The Secretary rate for additional peanuts. ‘‘(A) ESTABLISHMENT.—A farm poundage may carry out this subparagraph only if this (iii) DEFINITION.—In this paragraph, the quota for each of the 1996 through 2002 mar- subparagraph does not result in— term ‘first purchaser’ means a person acquir- keting years shall be established— ‘‘(I) an increased cost to the Commodity ing peanuts from a producer, except that in ‘‘(i) for each farm that had a farm pound- Credit Corporation through displacement of the case of peanuts forfeited by a producer to age quota for peanuts for the 1995 marketing quota peanuts by additional peanuts in the the Commodity Credit Corporation, the term year; domestic market; means the person acquiring the peanuts from ‘‘(ii) if the poundage quota apportioned to ‘‘(II) an increased loss in a loan pool of an the Commodity Credit Corporation. a State under subsection (a)(3) for any such area marketing association designated pur- (C) OTHER PRIVATE MARKETINGS.—In the marketing year is larger than the quota for suant to section 106(a)(3)(A) of the Agricul- case of a private marketing by a producer di- the immediately preceding marketing year, tural Market Transition Act; or rectly to a consumer through a retail or for each other farm on which peanuts were ‘‘(III) other increased costs. wholesale outlet or in the case of a market- produced for marketing in at least 2 of the 3 ‘‘(v) TRANSFER OF ADDITIONAL PEANUTS.— ing by the producer outside of the continen- immediately preceding crop years, as deter- ‘‘(I) IN GENERAL.—Except as provided in tal United States, the producer shall be re- mined by the Secretary; and subclause (II), additional peanuts on a farm sponsible for the full amount of the assess- ‘‘(iii) as approved and determined by the from which the quota poundage was not har- ment and shall remit the assessment by such Secretary under section 358c, for each farm vested and marketed may be transferred to time as is specified by the Secretary. on which peanuts are produced in connection the quota loan pool for pricing purposes on (D) LOAN PEANUTS.—In the case of peanuts with experimental and research programs. such basis as the Secretary shall provide by that are pledged as collateral for a price sup- ‘‘(B) QUANTITY.— regulation. port loan made under this subsection, 1⁄2 of ‘‘(i) IN GENERAL.—The farm poundage quota ‘‘(II) LIMITATIONS.—The poundage of pea- the assessment shall be deducted from the for each of the 1996 through 2002 marketing nuts transferred under subclause (I) shall not proceeds of the loan. The remainder of the years for each farm described in subpara- exceed 25 percent of the total farm poundage assessment shall be paid by the first pur- graph (A)(i) shall be the same as the farm quota, excluding pounds transferred in the chaser of the peanuts. For the purposes of poundage quota for the farm for the imme- fall. computing net gains on peanuts under this diately preceding marketing year, as ad- ‘‘(III) SUPPORT RATE.—Peanuts transferred subsection, the reduction in loan proceeds justed under paragraph (2), but not including under this clause shall be supported at a rate shall be treated as having been paid to the any increases resulting from the allocation of 70 percent of the quota support rate for producer. of quotas voluntarily released for 1 year the marketing years during which the trans- (E) PENALTIES.—If any person fails to col- under paragraph (7). fers occur. lect or remit the reduction required by this ‘‘(ii) INCREASED QUOTA.—The farm pound- ‘‘(vi) USE OF QUOTA AND ADDITIONAL PEA- paragraph or fails to comply with such re- age quota, if any, for each of the 1996 NUTS.—Nothing in this subparagraph affects quirements for recordkeeping or otherwise as through 2002 marketing years for each farm the requirements of section 358b(b). are required by the Secretary to carry out described in subparagraph (A)(ii) shall be ‘‘(vii) ADDITIONAL ALLOCATION.—The tem- this paragraph, the person shall be liable to equal to the quantity of peanuts allocated to porary allocation of quota pounds under this the Secretary for a civil penalty up to an the farm for the year under paragraph (2). subparagraph shall be in addition to the amount determined by multiplying— ‘‘(C) TRANSFERS.—For purposes of this sub- farm poundage quota established under this (i) the quantity of peanuts involved in the section, if the farm poundage quota, or any subsection and shall be credited to the pro- violation; by part of the quota, is permanently transferred ducers of the peanuts on the farm in accord- (ii) the national average quota peanut in accordance with section 358b, the receiv- ance with regulations issued by the Sec- price support level for the applicable crop ing farm shall be considered as possessing retary. year. the farm poundage quota (or portion of the ‘‘(C) DECREASE.—If the poundage quota ap- (F) ENFORCEMENT.—The Secretary may en- quota) of the transferring farm for all subse- portioned to a State under subsection (a)(3) force this paragraph in the courts of the quent marketing years. for any of the 1996 through 2002 marketing United States. ‘‘(2) ADJUSTMENTS.— years is decreased from the poundage quota (8) CROPS.—Notwithstanding any other pro- ‘‘(A) ALLOCATION OF INCREASED QUOTA GEN- apportioned to farms in the State under sub- vision of law, this subsection shall be effec- ERALLY.—Subject to subparagraphs (B) and section (a)(3) for the immediately preceding S 1144 CONGRESSIONAL RECORD — SENATE February 7, 1996 marketing year, the decrease shall be allo- ‘‘(B) the poundage quota for the farm for conduct a referendum of producers engaged cated among all the farms in the State for which the quota is released shall be adjusted in the production of quota peanuts in the which a farm poundage quota was estab- downward to reflect the quota that is re- calendar year in which the referendum is lished for the marketing year immediately leased. held to determine whether the producers are preceding the marketing year for which the ‘‘(6) ALLOCATION OF QUOTAS REDUCED OR RE- in favor of or opposed to poundage quotas allocation is being made. LEASED.— with respect to the crops of peanuts pro- ‘‘(D) SPECIAL RULE ON TENANT’S SHARE OF ‘‘(A) IN GENERAL.—Except as provided in duced in the 5 calendar years immediately INCREASED QUOTA.—Subject to terms and con- subparagraph (B), the total quantity of the following the year in which the referendum ditions prescribed by the Secretary, on farms farm poundage quotas reduced or voluntarily is held, except that, if at least 2⁄3 of the pro- that were leased to a tenant for peanut pro- released from farms in a State for any mar- ducers voting in any referendum vote in duction, the tenant shall share equally with keting year under paragraphs (3) and (5) favor of poundage quotas, no referendum the owner of the farm in the percentage of shall be allocated, as the Secretary may by shall be held with respect to quotas for the the quota made available under subpara- regulation prescribe, to other farms in the remaining years of the 5-calendar year pe- graph (A) and otherwise allocated to the State on which peanuts were produced in at riod. farm as the result of the production of the least 2 of the 3 crop years immediately pre- ‘‘(2) PROCLAMATION.—The Secretary shall tenant on the farm of additional peanuts. ceding the year for which the allocation is proclaim the result of the referendum within Not later than April 1 of each year or as soon being made. 30 days after the date on which the referen- as practicable during the year, the share of ‘‘(B) SET-ASIDE FOR FARMS WITH NO dum is held. QUOTA.—The total amount of farm poundage 1 the tenant of any such quota shall be allo- ‘‘(3) VOTE AGAINST QUOTAS.—If more than ⁄3 quota to be allocated in the State under sub- cated to a farm within the county owned by of the producers voting in the referendum paragraph (A) shall be allocated to farms in the tenant or sold by the tenant to the owner vote against poundage quotas, the Secretary the State for which no farm poundage quota of any farm within the county and perma- shall proclaim that poundage quotas will not was established for the crop of the imme- nently transferred to the farm. Any quota be in effect with respect to the crop of pea- diately preceding year. The allocation to any not so disposed of as provided in this sub- nuts produced in the calendar year imme- such farm shall not exceed the average farm paragraph shall be allocated to other quota diately following the calendar year in which production of peanuts for the 3 immediately the referendum is held. farms in the State under paragraph (6) as preceding years during which peanuts were part of the quota reduced from farms in the produced on the farm. Any farm poundage ‘‘(e) DEFINITIONS.—In this part and the Ag- State due to the failure to produce the quota remaining after allocation to farms ricultural Market Transition Act: quota. under this subparagraph shall be allocated to ‘‘(1) ADDITIONAL PEANUTS.—The term ‘addi- ‘‘(3) QUOTA NOT PRODUCED.— farms in the State on which poundage quotas tional peanuts’ means, for any marketing ‘‘(A) IN GENERAL.—Insofar as practicable were established for the crop of the imme- year— and on such fair and equitable basis as the diately preceding year. ‘‘(A) any peanuts that are marketed from a Secretary may by regulation prescribe, the ‘‘(7) QUOTA TEMPORARILY RELEASED.— farm for which a farm poundage quota has farm poundage quota established for a farm ‘‘(A) IN GENERAL.—The farm poundage been established and that are in excess of the for any of the 1996 through 2002 marketing quota, or any portion of the quota, estab- marketings of quota peanuts from the farm years shall be reduced to the extent that the lished for a farm for a marketing year may for the year; and Secretary determines that the farm pound- be voluntarily released to the Secretary to ‘‘(B) all peanuts marketed from a farm for age quota established for the farm for any 2 the extent that the quota, or any part of the which no farm poundage quota has been es- of the 3 marketing years preceding the mar- quota, will not be produced on the farm for tablished in accordance with subsection (b). keting year for which the determination is the marketing year. Any farm poundage ‘‘(2) CRUSH.—The term ‘crush’ means the being made was not produced, or considered quota so released in a State shall be allo- processing of peanuts to extract oil for food produced, on the farm. cated to other farms in the State on such uses and meal for feed uses, or the processing ‘‘(B) EXCLUSIONS.—For the purposes of this basis as the Secretary may by regulation of peanuts by crushing or otherwise when au- paragraph, the farm poundage quota for any prescribe. thorized by the Secretary. such preceding marketing year shall not in- ‘‘(B) EFFECTIVE PERIOD.—Except as other- ‘‘(3) DOMESTIC EDIBLE USE.—The term ‘do- clude any increase resulting from the alloca- wise provided in this section, any adjust- mestic edible use’ means use for milling to tion of quotas voluntarily released for 1 year ment in the farm poundage quota for a farm produce domestic food peanuts (other than a under paragraph (7). under subparagraph (A) shall be effective use described in paragraph (2)) and seed and ‘‘(4) QUOTA CONSIDERED PRODUCED.— only for the marketing year for which the use on a farm, except that the Secretary ‘‘(A) IN GENERAL.—For purposes of this sub- adjustment is made and shall not be taken may exempt from this paragraph seeds of section, subject to subparagraph (B), the into consideration in establishing a farm peanuts that are used to produce peanuts ex- farm poundage quota shall be considered pro- poundage quota for the farm from which the cluded under section 301(b)(18), are unique duced on a farm if— quota was released for any subsequent mar- strains, and are not commercially available. ‘‘(i) the farm poundage quota was not pro- keting year. ‘‘(4) QUOTA PEANUTS.—The term ‘quota pea- duced on the farm because of drought, flood, ‘‘(c) FARM YIELDS.— nuts’ means, for any marketing year, any or any other natural disaster, or any other ‘‘(1) IN GENERAL.—For each farm for which peanuts produced on a farm having a farm condition beyond the control of the pro- a farm poundage quota is established under poundage quota, as determined under sub- ducer, as determined by the Secretary; subsection (b), and when necessary for pur- section (b), that— ‘‘(ii) the farm poundage quota for the farm poses of this Act, a farm yield of peanuts ‘‘(A) are eligible for domestic edible use as was released voluntarily under paragraph (7) shall be determined for each such farm. determined by the Secretary; for only 1 of the 3 marketing years imme- ‘‘(2) QUANTITY.—The yield shall be equal to ‘‘(B) are marketed or considered marketed diately preceding the marketing year for the average of the actual yield per acre on from a farm; and which the determination is being made; or the farm for each of the 3 crop years in ‘‘(C) do not exceed the farm poundage ‘‘(iii) the farm poundage quota was leased which yields were highest on the farm during quota of the farm for the year. to another owner or operator of a farm with- the 5-year period consisting of the 1973 ‘‘(f) CROPS.—Notwithstanding any other in the same county for transfer to the farm through 1977 crop years. provision of law, this section shall be effec- for only 1 of the 3 marketing years imme- ‘‘(3) APPRAISED YIELDS.—If peanuts were tive only for the 1996 through 2002 crops of diately preceding the marketing year for not produced on the farm in at least 3 years peanuts.’’. which the determination is being made. during the 5-year period or there was a sub- (d) SALE, LEASE, OR TRANSFER OF FARM ‘‘(B) MARKETING YEARS.—For purposes of stantial change in the operation of the farm POUNDAGE QUOTA.—Section 358b of the Agri- clauses (ii) and (iii) of subparagraph (A)— during the period (including a change in op- cultural Adjustment Act of 1938 (7 U.S.C. ‘‘(i) the farm poundage quota leased or erator, lessee who is an operator, or irriga- 1358b) is amended to read as follows: transferred shall be considered produced for tion practices), the Secretary shall have a only 1 of the 3 marketing years immediately yield appraised for the farm. The appraised ‘‘SEC. 358b. SALE, LEASE, OR TRANSFER OF FARM preceding the marketing year for which the yield shall be that quantity determined to be POUNDAGE QUOTA FOR 1996 determination is being made; and fair and reasonable on the basis of yields es- THROUGH 2000 CROPS OF PEANUTS. ‘‘(ii) the farm shall not be considered to tablished for similar farms that are located ‘‘(a) IN GENERAL.— have produced for more than 1 marketing in the area of the farm and on which peanuts ‘‘(1) AUTHORITY.— year out of the 3 immediately preceding were produced, taking into consideration ‘‘(A) IN GENERAL.—Subject to such terms, marketing years. land, labor, and equipment available for the conditions, or limitations as the Secretary ‘‘(5) QUOTA PERMANENTLY RELEASED.—Not- production of peanuts, crop rotation prac- may prescribe, the owner, or operator with withstanding any other provision of law— tices, soil and water, and other relevant fac- the permission of the owner, of any farm for ‘‘(A) the farm poundage quota established tors. which a farm poundage quota has been estab- for a farm under this subsection, or any part ‘‘(d) REFERENDUM RESPECTING POUNDAGE lished under this Act may sell or lease all or of the quota, may be permanently released QUOTAS.— any part of the poundage quota to any other by the owner of the farm, or the operator ‘‘(1) IN GENERAL.—Not later than December owner or operator of a farm within the same with the permission of the owner; and 15 of each calendar year, the Secretary shall county for transfer to the farm, except that February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1145

any such lease of poundage quota may be en- in a county as of January 1, 1996, may be sold ‘‘(C) MARKETING ADDITIONAL PEANUTS.—The tered into in the fall or after the normal and transferred under this paragraph during marketing of any additional peanuts from a planting season— the 1996 marketing year. farm shall be subject to the same penalty as ‘‘(i) if not less than 90 percent of the basic ‘‘(ii) 1997–2002 MARKETING YEARS.— the penalty prescribed in subparagraph (A) quota (consisting of the farm quota and tem- ‘‘(I) IN GENERAL.—Except as provided in unless the peanuts, in accordance with regu- porary quota transfers), plus any poundage subclause (II), not more than 5 percent of the lations established by the Secretary, are— quota transferred to the farm under this sub- quota pounds remaining in a county as of ‘‘(i) placed under loan at the additional section, has been planted or considered January 1, 1997, and each January 1 there- loan rate in effect for the peanuts under sec- planted on the farm from which the quota is after through January 1, 2002, may be sold tion 106 of the Agricultural Market Transi- to be leased; and and transferred under this paragraph during tion Act and not redeemed by the producers; ‘‘(ii) under such terms and conditions as the applicable marketing year. ‘‘(ii) marketed through an area marketing the Secretary may by regulation prescribe. ‘‘(II) CARRYOVER.—Any eligible quota that association designated pursuant to section ‘‘(B) FALL TRANSFERS.— is not sold or transferred under clause (i) 106(a)(3)(A) of the Agricultural Market Tran- ‘‘(i) NO TRANSFER AUTHORIZATION.—In the shall be eligible for sale or transfer under sition Act; or case of a fall transfer or a transfer after the subclause (I). ‘‘(iii) marketed under contracts between normal planting season by a cash lessee, the ‘‘(C) COUNTY LIMITATION.—Not more than 40 handlers and producers pursuant to sub- landowner shall not be required to sign the percent of the total poundage quota within a section (f). transfer authorization. county may be sold and transferred under ‘‘(2) PAYER.—The penalty shall be paid by ‘‘(ii) TIME LIMITATION.—A fall transfer or a this paragraph. the person who buys or otherwise acquires transfer after the normal planting season ‘‘(D) SUBSEQUENT LEASES OR SALES.—Quota the peanuts from the producer or, if the pea- may be made not later than 72 hours after pounds sold and transferred to a farm under nuts are marketed by the producer through the peanuts that are the subject of the trans- this paragraph may not be leased or sold by an agent, the penalty shall be paid by the fer are inspected and graded. the farm to another owner or operator of a agent. The person or agent may deduct an ‘‘(iii) LESSEES.—In the case of a fall trans- farm within the same State for a period of 5 amount equivalent to the penalty from the fer, poundage quota from a farm may be years following the date of the original price paid to the producer. leased to an owner or operator of another transfer to the farm. ‘‘(3) FAILURE TO COLLECT.—If the person re- farm within the same county or to an owner ‘‘(E) APPLICATION.—This paragraph shall quired to collect the penalty fails to collect or operator of another farm in any other not apply to a sale within the same county the penalty, the person and all persons enti- county within the State. or to any sale, lease, or transfer described in tled to share in the peanuts marketed from ‘‘(iv) EFFECT OF TRANSFER.—A fall transfer paragraph (1). the farm or the proceeds of the marketing of poundage quota shall not affect the farm ‘‘(b) CONDITIONS.—Transfers (including shall be jointly and severally liable with the quota history for the transferring or receiv- transfer by sale or lease) of farm poundage persons who failed to collect the penalty for ing farm and shall not result in the reduc- quotas under this section shall be subject to the amount of the penalty. tion of the farm poundage quota on the all of the following conditions: ‘‘(4) APPLICATION OF QUOTA.—Peanuts pro- transferring farm. ‘‘(1) LIENHOLDERS.—No transfer of the farm duced in a calendar year in which farm ‘‘(2) TRANSFERS TO OTHER SELF-OWNED poundage quota from a farm subject to a poundage quotas are in effect for the mar- FARMS.—The owner or operator of a farm mortgage or other lien shall be permitted keting year beginning in the calendar year may transfer all or any part of the farm unless the transfer is agreed to by the shall be subject to the quotas even though poundage quota for the farm to any other lienholders. the peanuts are marketed prior to the date farm owned or controlled by the owner or op- ‘‘(2) TILLABLE CROPLAND.—No transfer of on which the marketing year begins. erator that is in the same State and that had the farm poundage quota shall be permitted ‘‘(5) FALSE INFORMATION.—If any producer a farm poundage quota for the crop of the if the county committee established under falsely identifies, fails to accurately certify preceding year, if both the transferring and section 8(b) of the Soil Conservation and Do- planted acres, or fails to account for the dis- receiving farms were under the control of the mestic Allotment Act (16 U.S.C. 590h(b)) de- position of any peanuts produced on the owner or operator for at least 3 crop years termines that the receiving farm does not planted acres, a quantity of peanuts equal to prior to the crop year in which the farm have adequate tillable cropland to produce the greater of the average or actual yield of poundage quota is to be transferred. Any the farm poundage quota. the farm, as determined by the Secretary, farm poundage quota transferred under this ‘‘(3) RECORD.—No transfer of the farm multiplied by the number of planted acres, paragraph shall not result in any reduction poundage quota shall be effective until a shall be deemed to have been marketed in in the farm poundage quota for the transfer- record of the transfer is filed with the coun- violation of permissible uses of quota and ad- ring farm if sufficient acreage is planted on ty committee of each county to, and from, ditional peanuts. Any penalty payable under the receiving farm to produce the quota which the transfer is made and each commit- this paragraph shall be paid and remitted by pounds transferred. tee determines that the transfer complies the producer. ‘‘(3) TRANSFERS WITHIN STATES WITH SMALL with this section. ‘‘(6) UNINTENTIONAL VIOLATIONS.—The Sec- QUOTAS.—In the case of any State for which ‘‘(4) OTHER TERMS.—The Secretary may es- retary shall authorize, under such regula- the poundage quota allocated to the State tablish by regulation other terms and condi- tions as the Secretary shall issue, the county was less than 10,000 tons for the crop of the tions. committees established under section 8(b) of preceding year, all or any part of a farm ‘‘(c) CROPS.—Notwithstanding any other the Soil Conservation and Domestic Allot- poundage quota may be transferred by sale provision of law, this section shall be effec- ment Act (16 U.S.C. 590h(b)) to waive or re- or lease or otherwise from a farm in 1 county tive only for the 1996 through 2000 crops of duce marketing penalties provided for under to a farm in another county in the same peanuts.’’. this subsection in cases with respect to (e) MARKETING PENALTIES; DISPOSITION OF State. which the committees determine that the ADDITIONAL PEANUTS.—Section 358e of the ‘‘(4) TRANSFERS BETWEEN STATES HAVING violations that were the basis of the pen- Agricultural Adjustment Act of 1938 (7 U.S.C. QUOTAS OF LESS THAN 10,000 TONS.—Notwith- alties were unintentional or without knowl- 1359a) is amended to read as follows: standing paragraphs (1) through (3), in the edge on the part of the parties concerned. case of any State for which the poundage ‘‘SEC. 358e. MARKETING PENALTIES AND DISPOSI- TION OF ADDITIONAL PEANUTS FOR ‘‘(7) DE MINIMIS VIOLATIONS.—An error in 1 quota allocated to the State was less than 1996 THROUGH 2002 CROPS OF PEA- weight that does not exceed ⁄10 of 1 percent 10,000 tons for the crop of the preceding year, NUTS. in the case of any 1 marketing document all or any part of a farm poundage quota up ‘‘(a) MARKETING PENALTIES.— shall not be considered to be a marketing to 1,000 tons may be transferred by sale or ‘‘(1) IN GENERAL.— violation except in a case of fraud or conspir- lease from a farm in 1 such State to a farm ‘‘(A) MARKETING PEANUTS IN EXCESS OF acy. in another such State. QUOTA.—The marketing of any peanuts for ‘‘(b) USE OF QUOTA AND ADDITIONAL PEA- ‘‘(5) TRANSFERS BY SALE IN STATES HAVING domestic edible use in excess of the farm NUTS.— QUOTAS OF 10,000 TONS OR MORE.— poundage quota for the farm on which the ‘‘(1) QUOTA PEANUTS.—Only quota peanuts ‘‘(A) IN GENERAL.—Subject to the other peanuts are produced shall be subject to a may be retained for use as seed or for other provisions of this paragraph and such terms penalty at a rate equal to 140 percent of the uses on a farm. When peanuts are so re- and conditions as the Secretary may pre- support price for quota peanuts for the mar- tained, the retention shall be considered as scribe, the owner, or operator with the per- keting year in which the marketing occurs. marketings of quota peanuts, except that the mission of the owner, of any farm for which The penalty shall not apply to the market- Secretary may exempt from consideration as a farm quota has been established under this ing of breeder or Foundation seed peanuts marketings of quota peanuts seeds of pea- Act in a State having a poundage quota of grown and marketed by a publicly owned ag- nuts for the quantity involved that are used 10,000 tons or more may sell poundage quota ricultural experiment station (including a to produce peanuts excluded under section to any other eligible owner or operator of a State operated seed organization) under such 301(b)(18), are unique strains, and are not farm within the same State. regulations as the Secretary may prescribe. commercially available. ‘‘(B) LIMITATIONS BASED ON TOTAL POUND- ‘‘(B) MARKETING YEAR.—For purposes of ‘‘(2) ADDITIONAL PEANUTS.—Additional pea- AGE QUOTA.— this section, the marketing year for peanuts nuts shall not be retained for use on a farm ‘‘(i) 1996 MARKETING YEAR.—Not more than shall be the 12-month period beginning Au- and shall not be marketed for domestic edi- 15 percent of the total poundage quota with- gust 1 and ending July 31. ble use, except as provided in subsection (g). S 1146 CONGRESSIONAL RECORD — SENATE February 7, 1996

‘‘(3) SEED.—Except as provided in para- dlers in commercial operations, except that ments as are necessary to ensure compliance graph (1), seed for planting of any peanut the allowance shall not be less than 4 per- with this subsection and to maintain the in- acreage in the United States shall be ob- cent, except as provided in subclause (II). tegrity of the peanut program. tained solely from quota peanuts marketed ‘‘(II) COMMON INDUSTRY PRACTICES.—The ‘‘(f) CONTRACTS FOR PURCHASE OF ADDI- or considered marketed for domestic edible Secretary may provide a lower shrinkage al- TIONAL PEANUTS.— use. lowance for a handler who fails to comply ‘‘(1) IN GENERAL.—A handler may, under ‘‘(c) MARKETING PEANUTS WITH EXCESS with restrictions on the use of peanuts, as such regulations as the Secretary may issue, QUANTITY, GRADE, OR QUALITY.—On a finding may be specified by the Commodity Credit contract with a producer for the purchase of by the Secretary that the peanuts marketed Corporation, to take into account common additional peanuts for crushing or export, or from any crop for domestic edible use by a industry practices. both. handler are larger in quantity or higher in ‘‘(3) ADEQUATE FINANCES AND FACILITIES.—A ‘‘(2) SUBMISSION TO SECRETARY.— grade or quality than the peanuts that could handler shall submit to the Secretary ade- ‘‘(A) CONTRACT DEADLINE.—Any such con- reasonably be produced from the quantity of quate financial guarantees, as well as evi- tract shall be completed and submitted to peanuts having the grade, kernel content, dence of adequate facilities and assets, with the Secretary (or if designated by the Sec- and quality of the quota peanuts acquired by respect to the facilities under the control retary, the area marketing association) for the handler from the crop for the marketing and operation of the handler, to ensure the approval not later than September 15 of the year, the handler shall be subject to a pen- compliance of the handler with the obliga- year in which the crop is produced. alty equal to 140 percent of the loan level for tion to export peanuts. ‘‘(B) EXTENSION OF DEADLINE.—The Sec- quota peanuts on the quantity of peanuts ‘‘(4) COMMINGLING OF LIKE PEANUTS.—Quota retary may extend the deadline under sub- that the Secretary determines are in excess and additional peanuts of like type and seg- paragraph (A) by up to 15 days in response to of the quantity, grade, or quality of the pea- regation or quality may, under regulations damaging weather or related condition (as nuts that could reasonably have been pro- issued by the Secretary, be commingled and defined in section 112 of the Disaster Assist- duced from the peanuts so acquired. exchanged on a dollar value basis to facili- ance Act of 1989 (Public Law 101–82; 7 U.S.C. ‘‘(d) HANDLING AND DISPOSAL OF ADDI- tate warehousing, handling, and marketing. 1421 note)). The Secretary shall announce the TIONAL PEANUTS.— ‘‘(5) PENALTY.— extension not later than September 5 of the ‘‘(1) IN GENERAL.—Except as provided in ‘‘(A) IN GENERAL.—Except as provided in year in which the crop is produced. paragraph (2), the Secretary shall require subparagraph (B), the failure by a handler to ‘‘(3) FORM.—The contract shall be executed that the handling and disposal of additional comply with regulations issued by the Sec- on a form prescribed by the Secretary. The peanuts be supervised by agents of the Sec- retary governing the disposition and han- form shall require such information as the retary or by area marketing associations dling of additional peanuts shall subject the Secretary determines appropriate to ensure designated pursuant to section 106(a)(3)(A) of handler to a penalty at a rate equal to 140 the proper handling of the additional pea- the Agricultural Market Transition Act. percent of the loan level for quota peanuts nuts, including the identity of the contract- ‘‘(2) NONSUPERVISION OF HANDLERS.— on the quantity of peanuts involved in the ing parties, poundage and category of the ‘‘(A) IN GENERAL.—Supervision of the han- violation. peanuts, the disclosure of any liens, and the dling and disposal of additional peanuts by a ‘‘(B) NONDELIVERY.—A handler shall not be intended disposition of the peanuts. handler shall not be required under para- subject to a penalty for failure to export ad- ‘‘(4) INFORMATION FOR HANDLING AND PROC- graph (1) if the handler agrees in writing, ditional peanuts if the peanuts were not de- ESSING ADDITIONAL PEANUTS.—Notwithstand- prior to any handling or disposal of the pea- livered to the handler. ing any other provision of this section, any nuts, to comply with regulations that the ‘‘(6) REENTRY OF EXPORTED PEANUTS.— person wishing to handle and process addi- Secretary shall issue. ‘‘(A) PENALTY.—If any additional peanuts tional peanuts as a handler shall submit to ‘‘(B) REGULATIONS.—The regulations issued or peanut products exported by a handler are the Secretary (or if designated by the Sec- by the Secretary under subparagraph (A) reentered into the United States in commer- retary, the area marketing association), shall include the following provisions: cial quantities as determined by the Sec- such information as may be required under ‘‘(i) TYPES OF EXPORTED OR CRUSHED PEA- retary, the importer of the peanuts and pea- subsection (d) by such date as is prescribed NUTS.—Handlers of shelled or milled peanuts nut products shall be subject to a penalty at by the Secretary so as to permit final action may export or crush peanuts classified by a rate equal to 140 percent of the loan level to be taken on the application by July 1 of type in each of the following quantities: for quota peanuts on the quantity of peanuts each marketing year. ‘‘(I) SOUND SPLIT KERNEL PEANUTS.—Sound reentered. ‘‘(5) TERMS.—Each such contract shall con- split kernel peanuts purchased by the han- ‘‘(B) RECORDS.—Each person, firm, or han- tain the final price to be paid by the handler dler as additional peanuts to which, under dler who imports peanuts into the United for the peanuts involved and a specific prohi- price support loan schedules, a mandated de- States shall maintain such records and docu- bition against the disposition of the peanuts duction with respect to the price paid to the ments as are required by the Secretary to for domestic edible or seed use. producer of the peanuts would be applied due ensure compliance with this subsection. ‘‘(6) SUSPENSION OF RESTRICTIONS ON IM- to the percentage of the sound splits. ‘‘(e) SPECIAL EXPORT CREDITS.— PORTED PEANUTS.—Notwithstanding any ‘‘(II) SOUND MATURE KERNEL PEANUTS.— ‘‘(1) IN GENERAL.—The Secretary shall, other provision of this Act, if the President Sound mature kernel peanuts (which term with due regard for the integrity of the pea- issues a proclamation under section 404(b) of includes sound split kernel peanuts and nut program, promulgate regulations that the Uruguay Round Agreements Act (19 sound whole kernel peanuts) in an amount will permit any handler of peanuts who man- U.S.C. 3601(b)) expanding the quantity of pea- equal to the poundage of the peanuts pur- ufactures peanut products from domestic ed- nuts subject to the in-quota rate of duty chased by the handler as additional peanuts, ible peanuts to export the products and re- under a tariff-rate quota, or under section 22 less the total poundage of sound split kernel ceive credit for the fulfillment of export obli- of the Agricultural Adjustment Act (7 U.S.C. peanuts described in subclause (I). gations for the peanut content of the prod- 624), reenacted with amendments by the Ag- ‘‘(III) REMAINDER.—The remaining quan- ucts against which export credit the handler ricultural Marketing Agreement Act of 1937, tity of total kernel content of peanuts pur- may subsequently apply, up to the amount of temporarily suspending restrictions on the chased by the handler as additional peanuts. the credit, equivalent quantities of addi- importation of peanuts, the Secretary shall, ‘‘(ii) DOCUMENTATION.—Handlers shall en- tional peanuts of the same type acquired by subject to such terms and conditions as the sure that any additional peanuts exported or the handler and used in the domestic edible Secretary may prescribe, permit a handler, crushed are evidenced by onboard bills of market. The peanuts so acquired for the do- with the written consent of the producer, to lading or other appropriate documentation mestic edible market as provided in this sub- purchase additional peanuts from any pro- as may be required by the Secretary, or section shall be of the same crop year as the ducer who contracted with the handler and both. peanuts used in the manufacture of the prod- to offer the peanuts for sale for domestic edi- ‘‘(iii) LOSS OF PEANUTS.—If a handler suf- ucts so exported. ble use. fers a loss of peanuts as a result of fire, ‘‘(2) CERTIFICATION.—Under the regula- ‘‘(g) MARKETING OF PEANUTS OWNED OR flood, or any other condition beyond the con- tions, the Secretary shall require all han- CONTROLLED BY THE COMMODITY CREDIT COR- trol of the handler, the portion of the loss al- dlers who are peanut product manufacturers PORATION.— located to contracted additional peanuts to submit annual certifications of peanut ‘‘(1) IN GENERAL.—Subject to section 104(k) shall not be greater than the portion of the product content on a product-by-product of the Agricultural Market Transition Act, total peanut purchases of the handler for the basis. Any changes in peanut product for- any peanuts owned or controlled by the Com- year attributable to contracted additional mulas as affecting peanut content shall be modity Credit Corporation may be made peanuts purchased for export or crushing by recorded within 90 days after the changes. available for domestic edible use, in accord- the handler during the year. The Secretary shall conduct an annual re- ance with regulations issued by the Sec- ‘‘(iv) SHRINKAGE ALLOWANCE.— view of the certifications. The Secretary retary, so long as doing so does not result in ‘‘(I) IN GENERAL.—The obligation of a han- shall pursue all available remedies with re- substantially increased cost to the Commod- dler to export or crush peanuts in quantities spect to persons who fail to comply with this ity Credit Corporation. Additional peanuts described in this subparagraph shall be re- paragraph. received under loan shall be offered for sale duced by a shrinkage allowance, to be deter- ‘‘(3) RECORDS.—The Secretary shall require for domestic edible use at prices that are not mined by the Secretary, to reflect actual handlers who are peanut product manufac- less than the prices that are required to dollar value shrinkage experienced by han- turers to maintain and provide such docu- cover all costs incurred with respect to the February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1147

peanuts for such items as inspection, ‘‘(B) JUDICIAL REVIEW.—Nothing in this sec- Fahrenheit and a humidity range of 60 to 68 warehousing, shrinkage, and other expenses, tion prohibits any court of competent juris- percent at all times during handling and plus— diction from reviewing any determination storage prior to sale and shipment. ‘‘(A) not less than 100 percent of the loan made by the Secretary with respect to (B) CONTAINERS.—The peanuts shall be value of quota peanuts if the additional pea- whether the determination was made in con- shipped in a container that provides the nuts are sold and paid for during the harvest formity with applicable law. maximum practicable protection against season on delivery by and with the written ‘‘(C) CIVIL PENALTIES.—All penalties im- moisture and insect infestation. consent of the producer; posed under this section shall for all pur- (C) IN-SHELL PEANUTS.—The Secretary ‘‘(B) not less than 105 percent of the loan poses be considered civil penalties. shall require that all in-shell peanuts be re- value of quota peanuts if the additional pea- ‘‘(5) REDUCTION OF PENALTIES.— duced to a moisture level not exceeding 10 nuts are sold after delivery by the producer ‘‘(A) IN GENERAL.—Except as provided in percent immediately on being harvested and but not later than December 31 of the mar- subparagraph (B) and notwithstanding any be stored in a facility that will ensure qual- keting year; or other provision of law, the Secretary may re- ity maintenance and will provide proper ven- ‘‘(C) not less than 107 percent of the loan duce the amount of any penalty assessed tilation at all times prior to sale and ship- value of quota peanuts if the additional pea- against handlers under this section by any ment. nuts are sold later than December 31 of the appropriate amount, including, in an appro- (3) LABELING.—The Secretary shall require marketing year. priate case, eliminating the penalty entirely, that all peanuts and peanut products sold in ‘‘(2) ACCEPTANCE OF BIDS BY AREA MARKET- if the Secretary finds that the violation on the United States contain labeling that lists ING ASSOCIATIONS.— which the penalty is based was minor or in- the country or countries in which the pea- ‘‘(A) IN GENERAL.—Except as provided in advertent, and that the reduction of the pen- nuts, including all peanuts used to manufac- subparagraph (B), for the period from the alty will not impair the operation of the pea- ture the peanut products, were produced. date additional peanuts are delivered for nut program. (4) INSPECTION AND TESTING.— loan to March 1 of the calendar year follow- ‘‘(B) FAILURE TO EXPORT CONTRACTED ADDI- (A) IN GENERAL.—All peanuts and peanut ing the year in which the additional peanuts TIONAL PEANUTS.—The amount of any pen- products sold in the United States shall be were harvested, the area marketing associa- alty imposed on a handler under this section inspected and tested for grade and quality. tion designated pursuant to section that resulted from the failure to export or (B) CERTIFICATION.—All peanuts or peanut 106(a)(3)(A) of the Agricultural Market Tran- crush contracted additional peanuts shall products offered for sale in, or imported into, sition Act shall have sole authority to ac- not be reduced by the Secretary. the United States shall be accompanied by a cept or reject lot list bids when the sales ‘‘(i) CROPS.—Notwithstanding any other certification by the first seller or importer price, as determined under this subsection, provision of law, this section shall be effec- that the peanuts or peanut products do not equals or exceeds the minimum price at tive only for the 1996 through 2002 crops of contain residues of any pesticide not ap- which the Commodity Credit Corporation peanuts.’’. proved for use in, or importation into, the may sell the stocks of additional peanuts of (f) PEANUT STANDARDS.— United States. the Corporation. (1) INSPECTION; QUALITY ASSURANCE.— (5) NUTRITIONAL LABELING.—The Secretary ‘‘(B) MODIFICATION.—The area marketing (A) INITIAL ENTRY.—The Secretary shall re- shall require all peanuts and peanut products association and the Commodity Credit Cor- quire all peanuts and peanut products sold in sold in the United States to contain com- poration may agree to modify the authority the United States to be initially placed in a plete nutritional labeling information as re- granted by subparagraph (A) to facilitate the bonded, licensed warehouse approved by the quired under the Federal Food, Drug, and orderly marketing of additional peanuts. Secretary for the purpose of inspection and Cosmetic Act (21 U.S.C. 321 et seq.). ‘‘(3) PRODUCER MARKETING AND EXPENSES.— grading by the Secretary, the Commissioner (6) PEANUT CONTENT.— Notwithstanding any other provision of this of the Food and Drug Administration, and (A) OFFSET AGAINST HTS QUANTITY.—The Act, the Secretary shall, in any determina- the heads of other appropriate agencies of actual quantity of peanuts, by weight, used tion required under paragraphs (1)(B) and the United States. to manufacture, and ultimately contained (2)(A) of section 106(a) of the Agricultural (B) PRELIMINARY INSPECTION.—Peanuts and in, peanut products imported into the United Market Transition Act, include any addi- peanut products shall be held in the ware- States shall be accounted for and offset tional marketing expenses required by law, house until inspected by the Secretary, the against the total quantity of peanut imports excluding the amount of any assessment re- Commissioner of the Food and Drug Admin- allowed under the in-quota quantity of the quired under section 106(a)(7) of the Agricul- istration, or the head of another appropriate tariff-rate quota established for peanuts tural Market Transition Act. agency of the United States, for chemical under the Harmonized Tariff Schedule of the ‘‘(h) ADMINISTRATION.— residues, general cleanliness, disease, size, United States. ‘‘(1) INTEREST.—The person liable for pay- aflatoxin, stripe virus, and other harmful (B) VERIFICATION.—The Secretary shall es- ment or collection of any penalty provided conditions, and an assurance of compliance tablish standards and procedures for the pur- for in this section shall be liable also for in- with all grade and quality standards speci- pose of verifying the actual peanut content terest on the penalty at a rate per annum fied under Marketing Agreement No. 146, of peanut products imported into the United equal to the rate per annum of interest that regulating the quality of domestically pro- States. was charged the Commodity Credit Corpora- duced peanuts (under the Agricultural Ad- (7) PLANT DISEASES.—The Secretary, in tion by the Treasury of the United States on justment Act (7 U.S.C. 601 et seq.), reenacted consultation with the heads of other appro- the date the penalty became due. with amendments by the Agricultural Mar- priate agencies of the United States, shall ‘‘(2) DE MINIMIS QUANTITY.—This section keting Agreement Act of 1937). ensure that all peanuts in the domestic edi- shall not apply to peanuts produced on any (C) SEPARATION OF LOTS.—All imported ble market are inspected and tested to en- farm on which the acreage harvested for pea- peanuts shall be maintained separately from, sure that they are free of all plant diseases. nuts is 1 acre or less if the producers who and shall not be commingled with, domesti- (8) ADMINISTRATION.— share in the peanuts produced on the farm do cally produced peanuts in the warehouse. (A) FEES.—The Secretary shall by regula- not share in the peanuts produced on any (D) ORIGIN OF PEANUT PRODUCTS.— tion fix and collect fees and charges to cover other farm. (i) LABELING.—A peanut product shall be the costs of any inspection or testing per- ‘‘(3) LIENS.—Until the amount of the pen- labeled with a label that indicates the origin formed under this subsection. alty provided by this section is paid, a lien of the peanuts contained in the product. (B) CERTIFICATION.— on the crop of peanuts with respect to which (ii) SOURCE.—No peanut product may con- (i) IN GENERAL.—The Secretary may re- the penalty is incurred, and on any subse- tain both imported and domestically pro- quire the first seller of peanuts sold in the quent crop of peanuts subject to farm pound- duced peanuts. United States to certify that the peanuts age quotas in which the person liable for (iii) IMPORTED PEANUT PRODUCTS.—The first comply with this subsection. payment of the penalty has an interest, shall seller of an imported peanut product shall (ii) FRAUD AND FALSE STATEMENTS.—Sec- be in effect in favor of the United States. certify that the product is made from raw tion 1001 of title 18, United States Code, shall ‘‘(4) PENALTIES.— peanuts that meet the same quality and apply to a certification made under this sub- ‘‘(A) PROCEDURES.—Notwithstanding any grade standards that apply to domestically section. other provision of law, the liability for and produced peanuts. (C) STANDARDS AND PROCEDURES.—In con- the amount of any penalty assessed under (E) DOCUMENTATION.—No peanuts or peanut sultation with the heads of other appropriate this section shall be determined in accord- products may be transferred, shipped, or oth- agencies of the United States, the Secretary ance with such procedures as the Secretary erwise released from a warehouse described shall establish standards and procedures to may by regulation prescribe. The facts con- in subparagraph (A) unless accompanied by a provide for the enforcement of, and ensure stituting the basis for determining the liabil- United States Government inspection cer- compliance with, this subsection. ity for or amount of any penalty assessed tificate that certifies compliance with this (D) FAILURE TO MEET STANDARDS.—Peanuts under this section, when officially deter- paragraph. or peanut products that fail to meet stand- mined in conformity with the applicable reg- (2) HANDLING AND STORAGE.— ards established under this subsection shall ulations prescribed by the Secretary, shall (A) TEMPERATURE AND HUMIDITY.—The Sec- be returned to the seller and exported or be final and conclusive and shall not be retary shall require all shelled peanuts sold crushed pursuant to section 358e(d) of the reviewable by any other officer or agency of in the United States to be maintained at a Agricultural Adjustment Act of 1938 (7 U.S.C. the Federal Government. temperature of not more than 37 degrees 1359a(d)). S 1148 CONGRESSIONAL RECORD — SENATE February 7, 1996

(9) CHANGE OF VENUE.—In any case in which (H) Section 201(c) (Dairy) (7 U.S.C. 1446(c)); members of the agricultural and environ- an area pool or a marketing association and mental community to evaluate the risks and brings, joins, or seeks to join a civil action (I) Title VI (Emergency Livestock Feed As- benefits of extending the methyl bromide in a United States district court to enforce sistance Act) (7 U.S.C. 1471–71j). phase out date.’’ this subsection, the district court may not (2) In section 101B by striking subsection SEC. 358. FARMLAND PROTECTION. transfer the action to any other district or (n) and inserting the following: (a) OPERATION OF PROGRAM THROUGH THE division over the objection of the pool or ‘‘(n) CROPS.— STATES.—Section 1231(a) of the Food Secu- marketing association. ‘‘(1) Except as provided in paragraph (2) rity Act of 1985 (16 U.S.C. 3831(a)) is amend- (g) EXPERIMENTAL AND RESEARCH PRO- notwithstanding any other provision of law, ed— GRAMS FOR PEANUTS.—Section 358c of the Ag- the provisions of this section shall be effec- (1) by striking ‘‘(a) IN GENERAL.—Through ricultural Adjustment Act of 1938 (7 U.S.C. tive for the 1996 and subsequent crops under the 1995 calendar year’’ and inserting the fol- 1358c) is amended to read as follows: the terms and provisions applicable to the lowing: ‘‘SEC. 358c. EXPERIMENTAL AND RESEARCH PRO- 1995 crop of rice under this Act. ‘‘(a) AUTHORIZATION.— GRAMS FOR PEANUTS. ‘‘(2) In the case of the 1996 through 1998 ‘‘(1) IN GENERAL.—Through the 1998 cal- ‘‘(a) IN GENERAL.—Notwithstanding any crops of rice, the provisions of paragraph (1) endar year’’; and other provision of this Act, the Secretary are suspended.’’ (2) by adding at the end the following: may permit a portion of the poundage quota (c) Title III is amended— ‘‘(2) FARMLAND PROTECTION.—With respect for peanuts apportioned to any State to be (1) in section 312 by adding at the end the to land described in subsection (b)(5), the allocated from the quota reserve of the State following: Secretary shall carry out the program to land-grant institutions identified in the ‘‘(c) WATER BANK ACRES.—Section 1231(b) is through the States.’’ amended by adding at the end the following: Act of May 8, 1914 (38 Stat. 372, chapter 79; 7 (b) ELIGIBLE LAND.—Section 1231(b) of the U.S.C. 341 et seq.), and colleges eligible to re- ‘‘(6) land that was enrolled as of the date of Food Security Act of 1985 (16 U.S.C. 3831(b)) ceive funds under the Act of August 30, 1890 enactment of the ‘Agricultural Reform and is amended— (26 Stat. 419, chapter 841; 7 U.S.C. 321 et seq.), Improvement Act of 1996’ in the Water Bank (1) by striking the period at the end of including Tuskegee Institute and, as appro- Program established under the Water Bank paragraph (4) and inserting ‘‘; and’’; and priate, the Agricultural Research Service of Act (16 U.S.C. 1301 et seq.) at a rate not to (2) by adding at the end the following: the Department of Agriculture to be used for exceed the rates in effect under the pro- ‘‘(5) land with prime unique, or other pro- experimental and research purposes. gram.’’; ductive soil that is subject to a pending offer ‘‘(b) QUANTITY.—The quantity of the quota (2) in section 313 by striking ‘‘(c) ELIGI- from a State or local government for the allocated to an institution under this section BILITY.—’’ and all that follows through purchase of a conversation easement or shall not exceed the quantity of the quota ‘‘under the program.’’; and other interest in the land for the purpose of held by each such institution during the 1985 (3) in section 314 strike ‘‘(ii) 10,000 beef cat- protecting topsoil by limiting non-agricul- crop year, except that the total quantity al- tle’’ through ‘‘sheep or lambs’’ and inserting tural uses of the land, but any highly erod- located to all institutions in a State shall the following: ible cropland shall be subject to the require- not exceed 1⁄10 of 1 percent of the basic quota ‘‘(ii) 1,000 beef cattle; ments of a conservation plan, including, if ‘‘(iii) 30,000 laying hens or broilers (if the of the State. required by the Secretary, the conversion of facility has continuous overflow watering); ‘‘(c) LIMITATION.—The director of the agri- the land to less intensive uses.’’. cultural experiment station for a State shall ‘‘(iv) 100,000 laying hens or broilers (if the (c) ENROLLMENT LIMITATIONS.—Section facility has a liquid manure system); be required to ensure, to the extent prac- 1231(d) of the Food Security Act of 1985 (16 ‘‘(v) 55,000 turkeys; ticable, that farm operators in the State do U.S.C. 3831(d)) is amended by inserting before ‘‘(vi) 2,500 swine; or not produce quota peanuts under subsection the period at the end the following:’’, of ‘‘(vii) 10,000 sheep or lambs.’’ (a) in excess of the quantity needed for ex- which not less than 170,000 nor more than (4) by adding at the end the following: perimental and research purposes. 340,000 acres may be enrolled under sub- ‘‘(d) CROPS.—Notwithstanding any other ‘‘SEC. 356. CONSERVATION ESCROW ACCOUNT. section (b)(5)’’. provision of law, this section shall be effec- ‘‘Subtitle E of title XII of the Food Secu- (d) DUTIES OF OWNERS AND OPERATORS.— tive only for the 1996 through 2002 crops of rity Act of 1985 (16 U.S.C. 3841 et seq.) is Section 1232 of the Food Security Act of 1985 peanuts.’’. amended by adding at the end the following: (16 U.S.C. 3832) is amended by adding at the (h) REPORTS AND RECORDS.—Effective only ‘SEC. 1248. CONSERVATION ESCROW ACCOUNT. end the following: for the 1996 through 2002 crops of peanuts, ‘(a) ESTABLISHMENT.—The Secretary shall ‘‘(f) LAND WITH PRIME, UNIQUE, OR OTHER the first sentence of section 373(a) of the Ag- establish a conservation escrow account. PRODUCTIVE SOIL.—In the case of land en- ricultural Adjustment Act of 1938 (7 U.S.C. ‘(b) DEPOSITS INTO ACCOUNT.—Any program rolled in the conservation reserve under sec- 1373(a)) is amended by inserting before ‘‘all loans, payments, or benefits forfeited by, or tion 1231(b)(5), an owner or operator shall be brokers and dealers in peanuts’’ the follow- fines collected from producers under section permitted to use the land for any lawful ag- ing: ‘‘all producers engaged in the production 1211 or 1221 shall be placed in the conserva- ricultural purpose, subject to the conserva- of peanuts,’’. tion escrow account. tion easement or other interest in land pur- (i) REGULATIONS.—The Secretary of Agri- ‘(c) USE OF FUNDS.—Funds in the conserva- chased by the State or local government and culture shall issue such regulations as are tion escrow account shall be used to provide to any conservation plan required by the necessary to carry out this section and the technical and financial assistance to individ- Secretary.’’. amendments made by this section. In issuing uals to implement natural resource con- (e) DUTIES OF THE SECRETARY WITH RE- the regulations, the Secretary shall— servation practices. SPECT TO PAYMENTS.—Section 1233 of the (1) comply with subchapter II of chapter 5 ‘(d) GEOGRAPHIC DISTRIBUTION.—The Sec- Food Security Act of 1985 (16 U.S.C. 3833) is of title 5, United States Code; retary shall use funds in the conservation es- amended— (2) provide public notice through the Fed- crow account for local areas in proportion to (1) by striking ‘‘and’’ at the end of para- eral Register of any such proposed regula- the amount of funds forfeited by or collected graph (2); tions; and from producers in the local area. (2) by striking the period at the end of the (3) allow adequate time for written public ‘(e) COMPLIANCE ASSISTANCE.—To assist a paragraph (3) and inserting ’’; and’’; and comment prior to the formulation and issu- producer, who the Secretary determines has (3) by adding at the end of the following: ance of any final regulations. acted in good faith, in complying with the (6) in section 109(a) by striking paragraph ‘‘(4) in the case of a contract relating to applicable section referred to in subsection (1). land enrolled under section 1231(b)(5), pay up (b) not later than 1 year after a determina- to 50 percent of the cost of limiting the non- (b) PERMANENT LAW.— (1) Notwithstanding any other provision of tion of noncompliance, a producer shall be agricultural use of land to protect the top- law, the following provisions of the Agricul- eligible to receive compliance assistance of soil from urban development.’’. tural Act of 1949 shall be applicable for the up to 66 percent of any loan, payments, bene- (f) ANNUAL RENTAL PAYMENTS.—Section 1999 and subsequent crops: fits forfeited, or fines placed in the conserva- 1234(c)(2) of the Food Security Act of 1985 (16 (A) Section 101 (Price Support) (7 U.S.C. tion escrow account.’ U.S.C. 3834(c)(2)) is amended— 1441); ‘‘SEC. 357. METHYL BROMIDE SENSE OF THE SEN- (1) by striking ‘‘or’’ at the end of subpara- (B) Section 103(a) (Cotton) (7 U.S.C. ATE. graph (A); 1444(a)); ‘‘It is the sense of the Senate that the U.S. (2) by redesignating subparagraph (B) as (C) Section 105 (Feed Grains) (7 U.S.C. Department of Agriculture should continue subparagraph (C); and 1444b); to carry out its research efforts on cost-ef- (3) by inserting after subparagraph (A) the (D) Section 107 (Wheat) (7 U.S.C. 1445a); fective alternatives to methyl bromide, be- following; (E) Section 110 (Farmer Owned Reserve) (7 cause it is a critically important chemical to ‘‘(B) in the case of a contract relating to U.S.C. 1445e); farmers that is subject to phase-out in 2001 land enrolled under section 1231(b)(5), deter- (F) Section 112 (Commodity Utilization) (7 under the requirements of the Clean Air Act. mination of the fair market value of the con- U.S.C. 1445g); The Senate urges the U.S. Department of Ag- servation easement or other interest ac- (G) Section 115 (Commodity Certificates) (7 riculture and the Environmental Protection quired multiplied by 50 percent.’’. U.S.C. 1445k); Agency to work together with Congress and (d) Title V is amended— February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1149

(1) in section 502 by adding the following at to increase the competitiveness and farm No. 3184 proposed by Mr. LEAHY to the the end: profitability, protect and enhance natural bill S. 1541, supra; as follows: ‘‘(c) DEFINITION OF NATURAL DISASTER.— resources, increase economic opportunities At page 3–25 after line 8 and before line 9 Section 502 of the Federal Crop Insurance in farming and rural communities and ex- insert the following paragraph so that begin- Act (7 U.S.C. 1502) is amended— pand locally owned value added processing ning at line 9 the bill reads: ‘‘(1) by redesignating paragraphs (7) and (8) and marketing operations. ‘‘(8) Not withstanding any provision of law, as paragraphs (8) and (9), respectively; and ‘‘(B) ELIGIBLE GRANTEE.—The Secretary the Secretary shall ensure that the process ‘‘(2) by inserting after paragraph (6) the may make a grant under this paragraph to— of writing, developing, and assisting in the following: ‘‘(i) a college or university; implementation of plans required in the pro- ‘(7) NATURAL DISASTER.—The term ‘natural ‘‘(ii) a State agricultural experiment sta- grams established under this title be open to disaster’ includes extensive crop destruction tion; individuals in agribusiness including but not caused by insects or disease.’. ‘‘(iii) a State Cooperative Extension Serv- limited to agricultural producers, represent- ‘‘(d) MARKETING WINDOWS.—Section 508(j) ice; atives from agricultural cooperatives, agri- of the Federal Crop Insurance Act (7 U.S.C. ‘‘(iv) a research institution or organiza- cultural input retail dealers, and certified 1508(j)) is amended by adding at the end the tion; crop advisers. This process shall be included following: ‘‘(v) a private organization or person; or ‘‘(vi) a Federal agency. in but not limited to programs and plans es- ‘‘(4) MARKETING WINDOWS.—The Corpora- ‘‘(C) USE OF GRANT.— tablished under this title and any other De- tion shall consider marketing windows in de- ‘‘(i) IN GENERAL.—A grant made under this partment program using incentive, technical termining whether it is feasible to require paragraph may be used by a grantee for 1 or assistance, cost-share or pilot project pro- planting during a crop year.’’ ’ more of the following uses: grams that require plans.’’ ‘‘(e) BUY-UP COVERAGE.—Notwithstanding ‘‘(I) research, ranging from discovery to the provisions of the Federal Crop Insurance principles of application; GRAHAM (AND MACK) Act (7 U.S.C. 1501 et seq.), the Secretary ‘‘(II) extension and related private-sector shall ensure crop insurance is provided to activities; and AMENDMENT NO. 3454 producers at the 75 percent coverage level at ‘‘(III) education Mr. LUGAR (for Mr. GRAHAM, for a cost to producers which is similar to the ‘‘(ii) LIMITATION.—No grant shall be made himself and Mr. MACK) proposed an costs associated with insurance at the 65 per- for any project, determined by the Sec- amendment to amendment No. 3184 cent level prior to date of enactment of this retary, to be eligible for funding under re- Act. search and commodity promotion programs proposed by Mr. LEAHY to the bill S. (2) by adding at the end the following: administered by the Department. 1541, supra, as follows: ‘‘SEC. 507. FUND FOR RURAL AMERICA. ‘‘(D) ADMINISTRATION.— (c)(1) CROP INSURANCE PILOT PROJECT.—The ‘‘(a) IN GENERAL.—The Secretary shall cre- ‘‘(i) PRIORITY.—In administering this para- Secretary of Agriculture shall develop and ate an account called the Fund for Rural graph, the Secretary shall— administer a pilot project for crop insurance America for purposes of providing funds for ‘‘(I) establish priorities for allocating coverage that indemnifies crop losses due to activities described in subsection (c). grants, based on needs and opportunities of a natural disaster such as insect infestation ‘‘(b) COMMODITY CREDIT CORPORATION.—In the food and agriculture system in the or disease. each of the 1996 through 1998 fiscal years, the United States related to the goals of the (2) ACTUARIAL SOUNDNESS.—A pilot project Secretary shall transfer into the Fund for paragraph; under this paragraph shall be actuarially Rural America (hereafter referred to as the ‘‘(II) seek and accept proposals for grants; sound, as determined by the Secretary and ‘‘Account’’)— ‘‘(III) determine the relevance and merit of administers at no net cost to the U.S. Treas- ‘‘(1) $50,000,000 for the 1996 fiscal year; proposals through a system of peer and ury. ‘‘(2) $100,000,000 for the 1997 fiscal year; and stakeholder review; and (3) DURATION.—A pilot project under this ‘‘(IV) award grants on the basis of merit, ‘‘(3) $150,000,000 for the 1998 fiscal year. paragraph shall be of two years’ duration. quality, and relevance to advancing the na- ‘‘(c) PURPOSES.—Except as provided in sub- (d) CROP INSURANCE FOR SPECIALTY section (d), the Secretary shall provide not tional research and extension purposes. CROPS.—Section 508(a)(6) of the Federal Crop ‘‘(ii) COMPETITIVE AWARDING.—A grant more than one-third of the funds from the Insurance Act (7 U.S.C. 1508(a)(6)) is amended under this paragraph shall be awarded on a Account for activities described in paragraph by adding at the end the following: competitive basis. (2). ‘‘(D) ADDITION OF SPECIALTY CROPS.—(i) Not ‘‘(iii) TERMS.—A grant under this para- ‘‘(1) RURAL DEVELOPMENT ACTIVITIES.—The later than 2 years after the date of enact- graph shall have a term that does not exceed Secretary may use the funds in the Account ment of this subparagraph. (1) the Corpora- 5 years. for the following rural development activi- tion shall issue regulations to expand crop ‘‘(iv) MATCHING FUNDS.—As a condition of ties authorized in: insurance coverage under this title to in- receipts under this paragraph, the Secretary clude aquaculture; and ‘‘(A) The Housing Act of 1949 for— shall require the funding of the grant with ‘‘(i) direct loans to low income borrowers (ii) The Corporation shall conduct a study equal matching funds from a non-Federal and limited pilot program on the feasibility pursuant to section 502; source if the grant is— ‘‘(ii) loans for financial assistance for hous- of insuring nursery crops. ‘‘(I) for applied research that is commod- (e) MARKETING WINDOWS.—Section 508(j) of ing for domestic farm laborers pursuant to ity-specific; and section 514; the Federal Crop Insurance Act (7 U.S.C. ‘‘(II) not of national scope. 1508(j)) is amended by adding at the end the ‘‘(iii) financial assistance for housing of ‘‘(v) ADMINISTRATIVE COSTS.— following: domestic farm labor pursuant to section 516; ‘‘(I) IN GENERAL.—The Secretary may use ‘‘(4) MARKETING WINDOWS.—The Corpora- ‘‘(iv) grants and contracts for mutual and not more than 4 percent of the funds made tion shall consider marketing windows in de- self help housing pursuant to section available under this paragraph for adminis- termining whether it is feasible to require 523(b)(1)(A); and trative costs incurred by the Secretary in planting during a crop year.’’. ‘‘(v) grants for Rural Housing Preservation carrying out this paragraph. pursuant to section 533; ‘‘(II) LIMITATION.—Funds made available ‘‘(B) The Food Security Act of 1985 for under this paragraph shall not be used— SANTORUM AMENDMENT NO. 3455 loans to intermediary borrowers under the ‘‘(aa) for the construction of a new build- Mr. LUGAR (for Mr. SANTORUM) pro- Rural Development Loan Fund; ing or the acquisition, expansion, remodel- posed an amendment to amendment ‘‘(C) Consolidated Farm and Rural Devel- ing, or alteration of an existing building (in- opment Act for— cluding site grading and improvement and No. 3184 proposed by Mr. LEAHY to the ‘‘(i) grants for Rural Business Enterprises architect fees); or bill S. 1541, supra; as follows: pursuant to section 310B(c) and (j); ‘‘(bb) in excess of ten percent of the annual On page 3–3, strike lines 3 through 6 and in- ‘‘(ii) direct loans, loan guarantees and allocation for commodity-specific projects sert the following: grants for water and waste water projects not of the national scope. ‘‘(B) the wetlands reserve program estab- pursuant to section 306; and ‘‘(d) LIMITATIONS.—No funds from the Fund lished under subchapter C; ‘‘(iii) down payments assistance to farm- for Rural America may be used to for an ac- ‘‘(C) the environmental quality incentives ers, section 310E; tivity specified in subsection (c) if the cur- program established under chapter 4; and ‘‘(D) grants for outreach to socially dis- rent level of appropriations for the activity ‘‘(D) a farmland protection program under advantaged farmers and ranchers pursuant is less than 90 percent of the 1996 fiscal year which the Secretary shall use funds of the to section 2501 of the Food, Agriculture, Con- appropriations for the activity adjusted for Commodity Credit Corporation for the pur- servation, and Trade Act of 1990 (7 U.S.C. inflation.’’ chase of conservation easements or other in- 2279); and terests in not less than 170,000, nor more ‘‘(E) grants pursuant to section 204(6) of KEMPTHORNE AMENDMENT NO. than 340,000, acres of land with prime, the Agricultural Marketing Act of 1946. 3453 unique, or other productive soil that is sub- ‘‘(2) RESEARCH— ject to a pending offer from a State or local ‘‘(A) IN GENERAL.—The Secretary may use Mr. LUGAR (for Mr. KEMPTHORNE) government for the purpose of protecting the funds in the Account for research grants proposed an amendment to amendment topsoil by limiting non-agricultural uses of S 1150 CONGRESSIONAL RECORD — SENATE February 7, 1996 the land, except that any highly erodible producer has not planted an agricultural carcasses, parts of carcasses, meat, and meat cropland shall be subject to the requirements crop on the prior converted or cropped wet- food products as ‘lamb’ and ‘mutton’’. of a conservation plan, including, if required land after the date of enactment of this sub- ‘‘(2) METHOD.—The standards under para- by the Secretary, the conversion of the land section, so long as any use of the wetland graph (1) shall be based on the use of the to less intensive uses. In no case shall total thereafter is limited to agricultural pur- break or spool joint method to differentiate expenditures of funding from the Commodity poses.’’ lamb from mutton by the degree of calcifi- Credit Corporation exceed a total of cation of bone to reflect maturity.’’. $35,000,000 over the first 3 and subsequent fis- CONRAD (AND HATFIELD) f cal years. AMENDMENT NO. 3460 THE TECHNOLOGY TRANSFER JOHNSTON AMENDMENT NO. 3456 Mr. LEAHY (for Mr. CONRAD, for him- IMPROVEMENTS ACT OF 1996 self and Mr. HATFIELD) proposed an Mr. LEAHY (for Mr. JOHNSTON, for amendment to amendment No. 3184 himself, Mr. PRYOR, Mr. BREAUX, and proposed by Mr. LEAHY to the bill S. ROCKEFELLER (AND BURNS) Mr. BUMPERS) proposed an amendment 1541, supra; as follows: AMENDMENT NO. 3463 to amendment No. 3184 proposed by Mr. Beginning on page 7–86, strike line 11 and Mr. DOLE (for Mr. ROCKEFELLER, for LEAHY to the bill S. 1541, supra, as fol- all that follows through page 7–87, line 11, himself and Mr. BURNS) proposed an lows: and insert the following: amendment to the bill (H.R. 2196) to At the appropriate place in title V of the ‘‘(3) RURAL BUSINESS AND COOPERATIVE DE- amendment No. 3184 offered by Mr. LEAHY, VELOPMENT.—The rural business and cooper- amend the Stevenson-Wydler Tech- insert: ative development category shall include nology Innovation Act of 1980 with re- Section 101 of the Agricultural Act of 1949 funds made available for— spect to inventions made under cooper- is amended by adding a subsection (e) that ‘‘(A) rural business opportunity grants pro- ative research and development agree- reads as follows: vided under section 306(a)(11)(A); ments, and for other purposes; as fol- ‘‘(e) RICE.—The Secretary shall make ‘‘(B) business and industry guaranteed lows: available to producers of each crop of rice on loans provided under section 310B(a)(1); and On page 3, line 24, insert ‘‘pre-negotiated’’ a farm price support at a level that is not ‘‘(C) rural business enterprise grants and before ‘‘field’’. less than 50%, or more than 90% of the parity rural educational network grants provided On page 5, beginning on line 4, strike ‘‘if price for rice as the Secretary determines under section 310B(c). the Government finds’’ and insert ‘‘in excep- will not result in increasing stocks of rice to ‘‘(d) OTHER PROGRAMS.—Subject to sub- tional circumstances and only if the Govern- the Commodity Credit Corporation.’’ section (e), in addition to any other appro- priated amounts, the Secretary may transfer ment determines’’. On page 5, between lines 15 and 16, insert PRYOR AMENDMENT NO. 3457 amounts allocated for a State for any of the 3 function categories for a fiscal year under the following: Mr. LEAHY (for Mr. PRYOR) proposed subsection (c) to— This determination is subject to adminis- an amendment to amendment No. 3184 ‘‘(1) mutual and self-help housing grants trative appeal and judicial review under sec- provided under section 523 of the Housing tion 203(2) of title 35, United States Code. proposed by Mr. LEAHY to the bill S. On page 13, strike lines 10 through 17 and 1541, supra; as follows: Act of 1949 (42 U.S.C. 1490c); ‘‘(2) rural rental housing loans for existing insert the following: On page 3–16 of amendment No. 3184, at line housing provided under section 515 of the Section 11(i) of the Stevenson-Wydler 1, after ‘‘payments’’ include the word ‘‘edu- Housing Act of 1949 (42 U.S.C. 1485); Technology Innovation Act of 1980 (15 U.S.C. cation.’’ ‘‘(3) rural cooperative development grants 3710(i)) is amended by inserting ‘‘loan, lease, On page 3–16, line 9, after ‘‘payments,’’ in- provided under section 310B(e); and or’’ before ‘‘give’’. clude the word ‘‘education.’’ ‘‘(4) grants to broadcasting systems pro- Beginning with line 23 on page 21, strike On page 3–16, line 13, after ‘‘payments,’’ vided under section 310B(f). through line 3 on page 22 and insert the fol- and ‘‘education.’’ lowing: ‘‘(13) to coordinate Federal, State, and BOXER AMENDMENT NO. 3458 CONRAD AMENDMENT NO. 3461 local technical standards activities and con- Mr. LEAHY (for Mr. CONRAD) pro- formity assessment activities, with private Mr. LEAHY (for Mrs. BOXER) pro- posed an amendment to amendment sector technical standards activities and posed an amendment to amendment conformity assessment activities, with the No. 3184 proposed by Mr. LEAHY to the No. 3184 proposed by Mr. LEAHY to the goal of eliminating unnecessary duplication bill S. 1541, supra; as follows: bill S. 1541, supra; as follows: and complexity in the development and pro- Notwithstanding any other provision of At the appropriate place, add the follow- mulgation of conformity assessment require- law, Section 343(a) of the Consolidated Farm ing: ments and measures.’’. and Rural Development Act (7 U.S.C. 1991(a)) It is the sense of the Senate that the De- On page 22, beginning on line 5, strike ‘‘by is amended in subparagraph (F)— partment of Agriculture should continue to January 1, 1996,’’ and insert ‘‘within 90 days (i) by striking ‘‘exceed 15 percent’’ and all make methyl bromide alternate research and after the date of enactment of this Act,’’. that follows through ‘‘Code’’ and inserting extension activities a high priority of the Beginning with line 8 on page 22, strike the following: ‘‘exceed— Department. through line 5 on page 23 and insert the fol- ‘‘(i) 25 percent of the median acreage of the Provided further, That it is the sense of the lowing: farms or ranches, as the case may be, in the Senate that the Department of Agriculture, (d) UTILIZATION OF CONSENSUS TECHNICAL county in which the farm or ranch oper- the Environmental Protection Agency, pro- STANDARDS BY FEDERAL AGENCIES; RE- ations of the applicant are located, as re- ducer and processor organizations, environ- PORTS.— ported in the most recent census of agri- mental organizations, and State agencies (1) IN GENERAL.—Except as provided in culture taken under section 142 of title 13, continue their dialogue on the risks and ben- paragraph (3) of this subsection, all Federal United States Code. efits of extending the 2001 phaseout deadline. agencies and departments shall use technical standards that are developed or adopted by voluntary consensus standards bodies, using CONRAD AMENDMENT NO. 3459 CRAIG (AND BAUCUS) AMENDMENT NO. 3462 such technical standards as a means to carry Mr. LEAHY (for Mr. CONRAD) pro- out policy objectives or activities deter- posed an amendment to amendment Mr. LUGAR (for Mr. CRAIG, for him- mined by the agencies and departments. self and Mr. BAUCUS) proposed an (2) CONSULTATION; PARTICIPATION.—In car- No. 3184 proposed by Mr. LEAHY to the rying out paragraph (1) of this subsection, bill S. 1541, supra; as follows: amendment to amendment No. 3184 proposed by Mr. LEAHY to the bill S. Federal agencies and departments shall con- At the appropriate place in the title relat- 1541, supra; as follows: sult with voluntary, private sector, consen- ing to conservation, insert the following: sus standards bodies and shall, when such SEC. . ABANDONMENT OF CONVERTED WET- After section 857, insert the following: participation is in the public interest and is LANDS. SEC. 858. LABELING OF DOMESTIC AND IM- compatible with agency and departmental Section 1222 of the Food Security Act of PORTED LAMB AND MUTTON. missions, authorities, priorities, and budget 1985 (16 U.S.C. 3822) is amended by adding at Section 7 of the Federal Meat Inspection resources, participate with such bodies in the end the following: Act (21 U.S.C. 607) is amended by adding at the development of technical standards. ‘‘(k) ABANDONMENT OF CONVERTED WET- the end the following: (3) EXCEPTION.—If compliance with para- LANDS.—The Secretary shall not determine ‘‘(f) LAMB AND MUTTON— graph (1) of this subsection is inconsistent that a prior converted or cropped wetland is ‘‘(1) STANDARDS.—The Secretary, consist- with applicable law or otherwise imprac- abandoned, and therefore that the wetland is ent with U.S. international obligations, shall tical, a Federal agency or department may subject to this subtitle, on the basis that a establish standards for the labeling of sheep elect to use technical standards that are not February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1151 developed or adopted by voluntary consensus Revitalization Tax Credit Act to bring 5 percent a year for 10 years. The credit standards bodies if the head of each such economic growth to our cities imme- is intended to help encourage busi- agency or department transmits to the Of- diately. nesses locate to economically dis- fice of Management and Budget an expla- This legislation provides a targeted, tressed areas. nation of the reasons for using such stand- limited tax credit to businesses to help The original concept of enterprise ards. Each year, beginning with fiscal year 1997, the Office of Management and Budget defray their costs of construction, ex- zones provided for broad based incen- shall transmit to Congress and its commit- pansion, and renovation in urban areas. tives for capital formation. Current tees a report summarizing all explanations The CRTC would be another tool to aid these zones primarily encourage wage- received in the preceding year under this localities and States in boosting jobs based tax, and other investment incen- paragraph. and business investment in America’s tives to locate within the zone. There (4) DEFINITION OF TECHNICAL STANDARDS.— most troubled neighborhoods. If en- is no incentive for a business within As used in this subsection, the term ‘‘tech- acted, estimates indicate the CRTC the zone to expand so that larger num- nical standards’’ means performance-based could attract over $7 billion in private bers of employees can be hired. That is or design-specific technical specifications a gap which the CRTC fills. and related management systems practices. sector investment to these commu- nities, create thousands of jobs, and I believe the CRTC will be an effi- f generate new tax revenue. cient and productive program. The tax credit will only be available after pri- AUTHORITY FOR COMMITTEES TO America’s urban areas serve an im- vate sector investment has been made MEET portant role as centers of commerce, industry, education, health care, and and the competed project is generating COMMITTEE ON GOVERNMENTAL AFFAIRS culture. Yet these urban centers, par- income. This bill authorizes a maxi- Mr. LUGAR. Mr. President, I ask ticularly in the inner cities, also have mum of $1.5 billion in tax credits over unanimous consent on behalf of the special needs. As a Philadelphia resi- a 5-year period. The credits will be al- Governmental Affairs Committee to dent, I have first-hand knowledge of located to each State according to a meet on Wednesday, February 7, at 9:30 the growing problems that plague our formula which takes into account the a.m. for a hearing on recommendations cities. I have long supported a variety number of localities where over half by Members of Congress relating to of programs to assist our cities such as the people earn less than 60 percent of Federal employment. increased funding for community de- the area’s median income. Local gov- The PRESIDING OFFICER. Without velopment block grants, extension of ernments, not the Federal Govern- objection, it is so ordered. the low income housing tax credit, and ment, will determine their priority SUBCOMMITTEE ON EAST ASIAN AND PACIFIC legislation to establish enterprise and projects and forward them to the AFFAIRS empowerment zones. I have also pro- States which will allocate the tax cred- Mr. LUGAR. Mr. President, I ask moted legislation to provide targeted its according to an evaluation system unanimous consent that the Sub- tax incentives for investing in which the States themselves establish. Furthrmore, communities which committee on East Asian and Pacific minority- or women-owned small busi- have already been designated as eco- Affairs of the Committee on Foreign nesses. nomic revitalization areas by the Fed- Relations be authorized to meet during This issue of urban renewal is not eral, State, and local governments the session of the Senate on Wednes- new to me. In the 104th Congress, I in- would now become eligible for the day, February 7, 1996, at 10 a.m. troduced the New Urban Agenda Act of CRTC Program. This is particularly The PRESIDING OFFICER. Without 1995—S. 17—which would redress urban good news for Philadelphia, PA, and objection, it is so ordered. decay and decline without massive Camden, NJ, which were jointly chosen Federal outlays. S. 17 embodies many f as 1 of 6 urban empowerment zones by of the proposals of Philadelphia Mayor the Department of Housing and Urban ADDITIONAL STATEMENTS Edward G. Rendell. The bill is intended Development. The cities of Harrisburg to stimulate the economies of our and Pittsburgh, and Allegheny County urban centers. Increased economic in my home State were also designated COMMERCIAL REVITALIZATION growth resulting in increased employ- TAX CREDIT OF 1995 as enterprise communities and will ment is the key to reversing current benefit from S. 743. ∑ Mr. SPECTER. Mr. President, I urban economic conditions. Specifi- Last June, the U.S. Conference of strongly support S. 743, the Commer- cally, my legislation would: First, re- Mayors adopted the attached resolu- cial Revitalization Tax Credit Act of quire certain Federal and foreign aid tion sponsored by Edward Rendell, the 1995 [CRTC] and today I join several of purchases to be made from businesses mayor of Philadelphia, which endorsed my colleagues in cosponsoring this bill. operating with urban zones; second, the commercial revitalization tax cred- I commend Senator KAY BAILEY favor distressed cities for the location it. Other organizations which have en- HUTCHISON for her sponsorship of this or relocation of Federal facilities; dorsed this bill include the National legislation designed to encourage busi- third, expand the historic rehabilita- Association of Counties, the American ness investment in economically dis- tion tax credit, expand the use of com- Institute of Architects, the National tressed areas. I also want to commend mercial industrial development bonds, Association of Industrial Office Prop- my Pennsylvania colleague, Represent- and modify the arbitrage rebate rules erties, the American Planning Associa- ative PHIL ENGLISH who has introduced concerning municipal bond interest; tion, the American Enterprise Zone As- this same legislation in the House. I fourth, study streamlining Federal sociation, the Local Initiatives Sup- believe this measure will help to create housing programs into block-grant port Corporation, the International jobs and expand economic activity, in form, and encourage community build- Downtown Association, the National addition to improving the physical ap- ing by locating original tenants in new Congress of Community Economic De- pearance and property values in these units on old sites; and fifth, ease envi- velopment, and the American Society areas. ronmental restrictions for govern- of Landscape Architects. Earlier in this session, I introduced ments, speed up the remediation proc- We must address any very serious is- legislation to replace our current cum- ess, and establish a pilot powerplant sues—jobs, teenage pregnancy, welfare bersome Tax Code with a simple and ef- for the benefit of city residents and en- reform—if we are to save our cities. It ficient 20-percent flat tax. My legisla- ergy intensive industry. may well be that many in America tion, the Flat Tax Act of 1995 (S. 488) Mr. President, I believe the CRTC have given up on our cities. That is a will bring tremendous economic will complement my legislation be- stark statement, but it is one which I growth to all areas of our country, and cause it would encourage new construc- believe may be true, but, I have not especially our cities by freeing up cap- tion and rehabilitation of structures in given up. And I believe there are others ital and lowering interest rates. While distressed areas. The CRTC would pro- in this body on both sides of the aisle I continue to support the principles vide businesses with the option of tak- who have not done so. There must be and necessity of a flat tax, I believe ing either a one time 20-percent tax new strategies for dealing with the that in the interim we must proceed credit against the cost of new construc- problems of urban America. The Com- with measures such as the Commercial tion or rehabilitation, or a tax credit of mercial Tax Revitalization Tax Credit S 1152 CONGRESSIONAL RECORD — SENATE February 7, 1996 Act is one such strategy that strives man Parliament condemned Nazi ‘‘peo- During its first 17 years of existence, toward the ultimate goal of restoring ple’s courts’’ and voided their convic- the Mariner organization faced many the former vitality of our cities which tions. However, the declaration did not of the expected challenges that can only help make our country pertain to the SS courts, where Mr. confront any new sports franchise. This stronger and more competitive. The Bonhoeffer was condemned. today, I young baseball team was only able to days of expansive Federal aid are clear- formally urge my colleagues on both produce two winning seasons in its ly past, but that is no excuse for the sides of the isle to support posthumous first 17 years. While the adversity con- National Government to turn a blind rehabilitation for Mr. Bonhoeffer and tinued on the field, the difficulties fac- eye to the problems of the cities. to urge the German Parliament to de- ing the franchise off the field quickly The resolution follows: clare that all convictions by the SS became even more owerwhelming. The RESOLUTION NO. 62—COMMERCIAL courts were illegal. Mariners organization suffered increas- REVITALIZATION TAX CREDIT Mr. President, Dietrich Bonhoeffer ing financial losses, fueling speculation Whereas, many American urban centers should serve as an inspiration to all of that the team would leave Sattle. All and rural areas are plagued by chronic eco- us for he sought change where change of the succession of Mariner owerns nomic distress, including aging infrastruc- often times seemed impossible. He were underfunded outsiders unable to ture and business disinvestment; and joined his church, and changed it. He take the risks necessary for success. Whereas, to be successful in breaking the lived in Nazi Germany where the mes- Finally in 1992, the threat became a re- cycle of economic erosion, unemployment sage of a superior Aryan race separated ality, and the owners of the Mariners and abandonment of older neighborhoods, man from man and thus man from God. announced their intentions to move new measures must be taken to regenerate private investment; and But, rather than accept the Nazi dicta- the baseball team to Florida. The fans, Whereas, new approaches must be fostered torship, he openly opposed Hitler and myself included reacted. A provision in to address the problems of our cities; and the regime. for his conviction to jus- the Mariners’ contract with King Coun- Whereas, Senator Kay Bailey Hutchison tice, equality, and peace, Dietrich ty prohibited the midnight-loading of (TX) has introduced the Commercial Revital- Bonhoeffer had his life violently taken the moving vans. This local-option pro- ization Tax Credit Act (CRTCA) of 1995 to en- from him. Surely he deserves our best vision required that prior to any relo- courage business investment and reinvest- efforts to legally clear his name and to cation to another city, the team first ment in specially designated revitalization celebrate his legacy of courage and be put up for sale for 120 days and sold areas; and Whereas, the CRTCA would offer a 20 per- commitment.∑ to any local buyers with a reasonable cent tax credit in one year, or a 5 percent f offer. With on 2 weeks left before the 120-day period expired, local business credit each year for 10 years, to defray the PROFESSIONAL SPORTS cost of business construction, expansion or and community leaders, myself in- FRANCHISES IN SEATTLE rehabilitation in specially designated areas; cluded, were able to secure the local re- and ∑ Mr. GORTON. Mr. President, on Feb- sources to purchase the Mariners and Whereas, tax policies designed to target ruary 2, the citizens of Seattle and of keep the Mariners safe at home. private entrepreneurial activities in declin- Washington State were dealt yet an- Last fall, after 18 long years, the fans ing urban and rural areas enjoy bipartisan other low blow in their continuing support, Now, therefore, be it of Washington State, and the team Resolved, That The United States Con- struggle to maintain three professional they fought so hard to keep, were fi- ference of Mayors strongly urges Congress to sports franchises in Seattle. Unfortu- nally rewarded when the Seattle Mari- support this session the CRTCA; and be it nately, it now seems that just as one ners won the American League Western further team reaches the pinnacle of success in Division Title. This championship Resolved, That The United States Con- Seattle, another outsider owner of a fever should be the reward for fans ference of Mayors urges Congress to approve local team decides that he no longer when they dedicate themselves to sup- this credit this session at the full benefit wishes to call Seattle its home. Last porting a professional sports team, not level for which it is proposed. ∑ Friday, the owners of the Seattle what is currently happening in Seattle f Seahawks announced their intention to and Cleveland. move the team from Seattle even Unfortunately for the fans of profes- DIETRICH BONHOEFFER though they have 10 years remaining sional sports team, today’s loyalty and ∑ Mr. LEVIN. Mr. President, I rise on their contract with King County. gratitude given to professional teams today to bring attention to the life of Why are they leaving? The Seahawk is being returned with seriously harsh one of the 20th-century’s most inspira- owners cite inadequate playing facili- slaps in the face. Looking for news of a tional leaders, the anti-Nazi theolo- ties and a lack of local government and sports franchise relocation? Just open gian, Dietrich Bonhoeffer. The author community support. Lack of support? a newspaper. Within the last 18 of numerous books, most notably, ‘‘The Consider the numerous years of sell- months, two professional football orga- Cost of Discipleship’’ and ‘‘Letter and out crowds in the Kingdome. Consider nizations have moved cities and three Papers From Prison,’’ Mr. Bonhoeffer the local and State subsidies that have more have announced their intentions spent time in the United States as a supported this organization. If there is to move prior to the 1996 season. student at Union Seminary in New no community support, why did the Mr. President, something has got to York. Seahawk organization retire the No. 12 be done to bring some stability back to It was after his stay in the United jersey? The number was retired in professional sports. Some question the States that Dietrich Bonhoeffer re- honor of all the Seahwawak fans who role of the Government in professional turned to his native Germany and have long served as the ‘‘twelfth man’’ sports leagues. I do not. Professional voiced opposition to the practices of on the Seahawks playing field. Lack of sports franchises rely on Federal tax Hitler and his Nazi regime. As an ar- support? dollars, participate in interstate com- dent pacifist, not only did he speak out As many of my colleagues may know, merce, and affect millions of people against Nazi terrors and propaganda, a great deal of my political career has across the country. I have no doubt but Mr. Bonhoeffer was centrally in- been focused on maintaining a presence that there is a role for the Federal volved in transporting Jews from Ger- of professional sports franchises in Se- Government in creating standards and many to Switzerland in an effort to attle. My involvement started late one expectations of behavior. That is why I spare them from the Nazis. evening in 1970, when the owners of the have cosponsored the Fans’ Rights Act In 1943 Mr. Bonhoeffer was arrested Seattle Pilots baseball team loaded with my colleagues from Ohio, Senator and sent to the Buchenwald concentra- their moving vans and headed east to GLENN and Senator DEWINE. tion camp. Then, at the age of 39, on Milwaukee, WI, after only 1 year in Se- The Fans’ Rights Act, S. 1439, seeks April 9, 1945, just 2 days before the ar- attle. As Washington State attorney, to restore stability and integrity to the rival of the Allied forces, Dietrich general, I successfully sued the Amer- current chaos that marks franchise re- Bonhoeffer was hanged by the Nazis. ican League to bring a new baseball locations. It does this by giving profes- Despite Dietrich Bonhoeffer’s club to Seattle in 1977—the Seattle sional sports league officials the abil- heroics, he is still regarded by German Mariners—a suit that also resulted in ity to enforce their own rules through law as a traitor. Ten years ago, Ger- the creation of the Toronto Blue Jays. a limited antitrust exemption. This February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1153 limited exemption will ensure that ners playoff excitement this fall, the self but is yet another step along the path to league officials can block franchise re- residents of Seattle and the citizens of coast-to-coast casinos that many states are locations they believe not to be in the Washington State were part of an reluctantly and uncertainly following. Not- withstanding the pressure from the Delaware best interests of their sport. The bill amazing roller-coaster ride that move, Maryland’s Joint Executive Legisla- also provides for a 180-day notice pe- reached beyond anything that could tive Task Force to Study Commercial Gam- riod before any team can move. During ever be expected from professional bling, on which we served as chair and execu- that time, public hearings must be sports. The great sense of community tive director, recommended against casinos held, at which time a home community pride and support toward a single last November. would have the opportunity to induce team, however, must be rewarded with One of the task force’s major conclusions the team to stay. Finally, the Fans’ loyalty from the team back to the has been largely ignored by the media— namely, that the problem of legal casino Rights Act would prohibit the out- community. The Seattle Mariners dis- gambling is a national one; Maryland cannot rageous practice of teams buying the played this loyalty in their final game deal with this on its own. The problem cries league’s approval of a proposed reloca- of the season, when all of the Mariner out for attention from the president and tion. Current practices allow the pay- players came out of the clubhouse 20 Congress. Unfortunately, the casino industry ing of relocation fees to the leagues minutes after game’s end, to applaud has mobilized cash and lobbyists to prevent and individual teams prior to the vote the 58,000-plus fans who had encouraged federal action on the issue. The Maryland Task Force, in its full re- by the individual team owners to ap- the team during the championship run. port, unhappily noted that, lacking a signifi- prove the move. The bill would require Mr. President, the Seahawks will not cant federally funded study, it has a very that the relocation fee be paid only move and, I believe, Cleveland will not limited basis for making projections of what after the vote of approval has taken be deserted by the NFL either. would happen if Maryland opened its doors place. The era of professional sports Mr. President, every fan deserves the to casinos, which nowadays get 70 percent of teams moving, only to leave behind opportunity to applaud his or her local their revenues from slot machines. Given the fans, businesses, and communities who sports team, and for loyalty from the limited statistical and economic analysis available, its opposition to casinos reflected have invested emotional and financial owners in return. I hope that passing a sensible caution. support must come to an end, and this the Fans’ Rights Act can begin to rec- Casinos do provide a credible promise of legislation attempts to do just that. ognize that fans are equal players in substantial financial gains to those states As chairman of the Consumer Sub- the world of sports.∑ that are the first in their region to introduce committee within the Commerce Com- f them. Foxwoods casino in Connecticut mittee, I intend to hold hearings on (owned by the Mashantucket Pequot tribe Fans’ Rights Act sometime in early THE NEED FOR A NATIONAL under 1988 federal legislation that allows In- March. I will seek testimony from COMMISSION ON GAMBLING dian tribes to operate casinos on certain tribal lands) now yields that state $115 mil- commissioners of all four professional ∑ Mr. SIMON. Mr. President, I would lion in tax revenues. Most of it comes from leagues, player representatives, team like to call to the attention of my col- residents of Massachusetts, Rhode Island and owners, and elected officials from leagues a recent column in the Wash- New York who come to play in the world’s cities impacted by franchise reloca- ington Post. Cowritten by our former largest casino. It employs more than 10,000 tion. workers, offering good wages and benefits to colleague from Maryland, Joseph many who would otherwise have more me- When this bill comes to the floor, it Tydings, the column cogently describes is also my intention to offer an amend- nial and unreliable jobs. the importance of a national study on Not surprisingly, the state of Massachu- ment to include a provision similar to the social and economic impacts of setts feels it must also allow slots to com- that that kept the Mariners in Seattle gambling. pete and is now negotiating with the in 1992. Essentially, this provision The impacts of gambling are re- Wampanoag Indians to let the tribe operate would require a team to be put up for gional, national, and international in a casino. The state of New York, which cre- sale to local owners for 120 days prior ated a long legislative and referendum proc- scope. Local and State governments ess to prevent a rash decision on casinos, has to any relocation at a price to be set by simply do not have access to the infor- arbitration. Fan loyalty and local sup- also responded to Connecticut by starting mation they need to make wise deci- down a path that could lead to their intro- port must be rewarded with local own- sions. Although local and State task duction in 1998. ership, not the removal of the team. forces and commissions continue to But the economic gains that entice states Unfortunately for the Seahawk fans, produce reports, these entities are not to open their doors to casinos are only sub- even if we could enact the Fans’ Rights stantial if neighboring states aren’t compet- equipped to deal with the regional and Act into law tomorrow, this legislation ing for the same customers. If Maryland national ramifications of local and will not reverse the clock in Seattle. were the only state in its region to allow ca- State policies and tend to focus only on The decision to relocate the team has sinos, it might be able to justify building ca- the short term. As the authors suggest, been made, although a lawsuit is pend- sinos that relied heavily on spending by Vir- a national commission would help ginians, Pennsylvanians, Washingtonians ing against the organization is a King States a great deal. and West Virginians. However, just as the County Superior Court, an action I be- Although the column is focused on Foxwoods’ success had caused Connecticut’s lieve likely to succeed. I have been in- Maryland, States and municipalities neighbors to move toward casinos, so would vited by King County Executive Gary Maryland’s advantage, if any, be short-lived. across the country are facing the same Locke to serve on a small task force of The case for casinos has an element of choices. Strapped for cash, many turn business and community leaders who vodoo economics—namely, the claim that to casinos, riverboats, and lotteries. providing a new form of entertainment will will work together to ensure that pro- Gambling should not be the only increase the economic base of the commu- fessional football in Seattle does not choice. Identifying alternative sources nity or state by increasing local spending. become part of Seattle’s fading history. of revenue will be prominent among Casino expenditures by Maryland citizens I would also like to take this oppor- would come entirely through reductions in tunity to commend King County Exec- the issues considered by a national other leisure spending or even in spending on utive Gary Locke, King County Pros- commission. food, shelter and education. Casinos can pro- ecutor Norm Maleng, and members of I urge my colleagues to read the col- vide economic development only by attract- the King County Council for all of their umn and to work with me and the bi- ing spending from other states. Moreover, if partisan group supporting S. 704, the casinos lead to greater consumer spending efforts thus far to save the Seahawks. nationally, then clearly it has to come from In closing Mr. President, I would like Gambling Impact Study Commission Act. reductions in people’s savings—scarcely a de- to send a message to sports fans in sirable change for a country that chronically Washington State and around the I ask that the Washington Post col- undersaves. country. While we are in the midst of umn be printed in the RECORD. There are also important social costs to troubling times with sports teams com- The column follows: having casinos readily accessible. Many peo- ing and sports teams leaving, I would [From the Washington Post, Feb. 6, 1996] ple have difficulty controlling their gam- bling, particularly in the artificial environ- CASINO GAMBLING: BRING IN THE FEDS like to assure each of you that your ment of a casino where liquor is freely of- loyalty to professional sports fran- (By Joseph Tydings and Peter Reuter) fered and the game is available at all hours. chises will not go unrewarded. The recent opening of slot machines at two Big gambling losses and the obsessive pur- Throughout the 8 weeks of the Mari- Delaware race tracks is a small event in it- suit of gambling opportunities may lead to S 1154 CONGRESSIONAL RECORD — SENATE February 7, 1996 family breakdown and loss of productivity Mr. President, these accusations all of this information is to have open and community involvement. Embezzlement made by Dr. Wigand are extremely se- hearings in the Senate—so that we can would probably rise. Casino patrons might rious and I believe that Congress and secure for the record as much informa- also make attractive victims for criminal of- fenses. But whether this is a major problem the American people should fully un- tion as possible. or just a modest incidental to the simple derstand the real dangers of tobacco On the House side, unfortunately, pleasures of millions is still a matter of de- products and all of the recent allega- there is little chance of hearings. Con- bate and in need of serious research. tions involving the tobacco industry. gressman BLILEY, from Richmond, VA, The opponents of casinos often weaken Mr. President, there is so much ac- chairman of the Commerce Committee, their case by making exaggerated claims tivity and confusion about tobacco has indicated that his committee will about the social consequences of gambling. these days. not permit these issues to be aired. Typical is the claim that ‘‘40 percent of all Let me tell my colleagues about white-collar crimes come from pathological I hope that things will be different in gambling,’’ a hardy perennial that appears in some of the legal matters that are cur- the Senate. I hope that both Democrats all anti-casino writings. It is supposedly the rently pending: and Republicans will see the value in product of the American Insurance Institute. Five States are actively suing the to- holding hearings on this critical issue. In fact, no such organization exists, and no bacco companies for Medicaid costs as- Only then, will the Congress and the one has ever been able to locate a copy of a sociated with tobacco related illnesses public be fully informed about the dan- report documenting the claim. Nor is there of their residents. Other States are se- gers of a product that takes over 400,000 much more basis for the frequent claim that riously considering similar action, in- lives per year. each problem gambler costs society $30,000 cluding my home State. annually. Mr. President, we cannot sit idly by An authoritative and independent assess- On the Federal level, I have intro- and listen to these types of allegations ment of the economic and social con- duced legislation to recoup all Medi- and do nothing. sequences of casinos would help states a care and Medicaid costs spent on to- The material follows: great deal. A federal commission needs to do bacco related illnesses, some $20 billion TRANSCRIPT FROM 60 MINUTES, FEBRUARY 4, systematic analysis of the kind that state a year, directly from the tobacco com- 1966 task forces, with their short time horizons panies. and minuscule budgets (ours had six months MIKE WALLACE. A story we set out to re- There is a multibillion-dollar class port six months ago has now turned into two and a total of $50,000 for its work), cannot action suit against the tobacco compa- muster. There seems to be strong congres- stories: how cigarettes can destroy people’s sional support for such a commission, not- nies going on in New Orleans. It is lives; and how one cigarette company is try- withstanding aggressive lobbying against it commonly referred to as the Castano ing to destroy the reputation of a man who by the casino industry. case. The plaintiffs are former smokers refused to keep quiet about what he says he The national commission would also have and survivors who claim that the to- learned when he worked for them. The Com- to focus on the very troubling issue of Indian bacco companies knew that nicotine pany is Brown & Williamson, America’s third-largest tobacco company. The man tribal gambling. Providing Indian tribes with was addictive and dangerous but never better economic opportunities is clearly an they’ve set out to destroy is Dr. Jeffrey important and legitimate goal, but when told their customers. Wigand, their former $300,000 a year director those opportunities result in large costs There is a Justice Department probe of research. being borne by the entire nation, then the underway to investigate whether the They employed prestigious law firms to issue needs to be revisited. seven tobacco companies’ CEO’s per- sue him, a high-powered investigation firm In the meantime, states like Maryland will jured themselves before Congressman to probe every nook and cranny of his life. feel a constant pressure from their neighbors WAXMAN’s subcommittee when they And they hired a big-time public relations to avoid having good Maryland money turn testified they did not believe nicotine consultant to help them plant damaging sto- into Delaware gambling revenues. The grow- ries about him in The Washington Post, The ing burden of social services on state fi- was addictive. Because of all of these current legal Wall Street Journal and others. But the nances as the federal government cuts back Journal reported the story for what they its support will increase that pressure, so activities, there have been numerous though it was. ‘‘Scant evidence’’ was just that in the next downturn many states may leaks about the dangers of tobacco in one of their comments. reluctantly, but irreversibly, become casino the print and television media. How- CBS management wouldn’t let us broad- states as well. A federal commission and ever, Congress and the American peo- cast our original story and our interview some sensible national policy are needed, as ple are only getting bits and pieces of with Jeffrey Wigand because they were wor- soon.∑ the entire story because of the intense ried about the possibility of a multibillion f legal climate surrounding this entire dollar lawsuit against us for ‘‘tortions’’ in- terference—that is, interfering with OPEN TOBACCO HEARINGS ARE issue. This is why I wrote a letter to Sen- Wigand’s confidentiality agreement with NEEDED Brown & Williamson. But now things have ators KASSEBAUM and KENNEDY asking Mr. LAUTENBERG. Mr. President, I changed. Last week The Wall Street Journal them to hold hearings in the Labor and rise to make a few comments about got hold of and published a confidential dep- Human Resources Committee about Sunday’s ‘‘60 Minutes’’ program on Dr. osition Wigand gave in a Mississippi case, a the entire tobacco issue. I have spoken November deposition that repeated many of Jeffrey Wigand and his statements personally to Senator KASSEBAUM and the charges he made to us last August. And about what went on inside the Brown & while a lawsuit is still a possibility, not put- Williamson Tobacco Co. she assured me that she would seri- ously consider this request. I also ting Jeffrey Wigand’s story on 60 minutes no Mr. President, for those who did not longer is. see this interview, Dr. Wigand told the spoke with Senator KENNEDY who is [Footage of Wigand; Brown & Williamson Nation that Brown & Williamson ac- deeply interested in all health issues Tower; cigarettes on machine; of tobacco on knowledged that cigarettes are a ‘‘nic- including the health effects of tobacco conveyor belt; tobacco executives testifying otine delivery’’ device and that senior and would like to set up hearings on before Congress.] management rejected his efforts to this subject. WALLACE (Voiceover). What Dr. Wigand make their tobacco products safer. Mr. President, I ask that a copy of told us in that original interview was that Dr. Wigand also claimed that Brown this letter be printed in the RECORD his former colleagues, executives of Brown & Williamson tobacco, knew all along that & Williamson knowingly used carcino- following my remarks. Mr. President, the Congress, on be- their tobacco products, their cigarettes and gens in their tobacco products. pipe tobacco, contained additives that in- Mr. President, if these allegations half of the American people, needs to creased the danger of disease; and further, were found to be true—if Brown & find out the truth about the addictive that they had long known that the nicotine Williamson knew that nicotine was ad- nature of nicotine, the health effects of in tobacco is an addictive drug, despite their dictive, if the company knew that its tobacco use and all of the recent alle- public statement to the countrary, like the products contained carcinogens, if it gations involving the tobacco industry. testimony before Congress of Dr. Wigand’s withheld this information from the We need this information so that we former boss, B&W chief executive officer public and this resulted in unnecessary can evaluate the need for legislation Thomas Sandefur. regulating the tobacco industry and Mr. THOMAS SANDEFUR (Chief Executive Of- death and disease—it would be abso- ficer, Brown & Williamson). I believe that lutely unconscionable. trying to recoup the cost of tobacco re- nicotine is not addictive. Mr. President, I ask that a transcript lated illnesses. Dr. JEFFREY WIGAND (Testifying Against of this interview be printed in the It is clear that the only way for Con- Brown & Williamson). I believe he perjured RECORD following my remarks. gress and the American people to get himself because—— February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1155

[Footage of congressional hearing.] [Footage of smokers.] Dr. WIGAND. Mm-hmm. Dr. WIGAND (Voiceover). I watched those WALLACE (Voiceover). And finding a way to WALLACE. ——rewrote the minutes of this testimonies very carefully. deliver that nicotine to the smoker’s brain research meeting with all of the research WALLACE (Voiceover). All of us did. There without exposing smokers to disease-causing heads of BAT Industries—— was the whole line of people-the-the whole pollutants, like tar that come with tobacco Dr. WIGAND. That’s correct. line of CEOs up there, all swearing that—— smoke, is one reason, says Dr. Wigand, that WALLACE. ——in order to sanitize it, in a Dr. WIGAND: And part of the reason I’m he was hired by B&W on January 1st, 1989. sense. here is I felt that their representation, clear- Dr. WIGAND. They were looking to reduce Dr. WIGAND. Sanitize it, as well as reduce ly—at least within Brown & Williamson’s the hazards within cigarettes, reduce the any type of exposure associated with discuss- representation, clearly, misstated what they carcinogenic components—or—or list the ing a safer cigarette. When you say you’re commonly knew as language within the com- carcinogens that were within the tobacco going to have a safer cigarette—— pany: that we’re in a nicotine-delivery busi- products. WALLACE. Mm-hmm. ness. WALLACE. They talked about carcinogens Dr. WIGAND. ——but that now takes every- WALLACE. And that’s what cigarettes are to you? thing else that you have available and say for. Dr. WIGAND. Talked about carcinogens—— it—it’s unsafe, and that from a products li- Dr. WIGAND. Most certainly. It’s a delivery WALLACE. They talked about cancer and ability point of view, gave the lawyers great device for nicotine. heart disease and emphysema and all of concern. WALLACE. A delivery device for nicotine. Dr. WIGAND. Nicotine. those things—— [Footage of Wells; files; cigarettes on con- WALLACE. Put it in your mouth, light it up Dr. WIGAND. They talked about—— veyor belt; files.] and you’re going to get your fix. WALLACE. ——and they were going to work WALLACE (Voiceover). Kendrick Wells, the Dr. WIGAND. You’ll get your fix. toward making a safer cigarette? You must lawyer Dr. Wigand says deleted materials WALLACE. Dr. Wigand says that Brown & have been very excited. from the minutes of the scientific meeting, Williamson manipulates and adjusts that Dr. WIGAND. I was enthusiastic and ener- is now the assistant general counsel of B&W. nicotine fix, not by artificially adding nico- getic in terms of pursuing that. Why would B&W lawyers like Kendrick Wells tine, but by enhancing the effect of the nico- [Footage of Wigand; a smoker.] be so concerned? According to B&W’s own tine through the use of chemical additive WALLACE. Dr. Jeffrey Wigand, with a doc- confidential files, any evidence, any docu- like ammonia. This process is know in the torate in biochemistry, had spent nearly 20 ments that show any B&W tobacco product, tobacco industry as ‘‘impact boosting. years working in the health-care and bio- like Kools or Viceroys, might be unsafe, Dr. WIGAND. While not spiking nicotine, technology industries. He says his goal at those documents would have to be produced they clearly manipulate it. B&W was to make a cigarette that would be in court as part of any lawsuit filed by a [Footage of Brown & Williamson Root less likely to cause disease. smoker or his surviving family. And accord- Technology handbook.] Dr. WIGAND (Voiceover). People will con- ing to the lawyers, those documents could be WALLACE (Voiceover). The process is de- tinue to smoke no matter what, no matter disastrous for B&W. So the lawyers took scribed in Brown & Williamson’s leaf blend- what kind of regulations. over. er’s manual and in other B&W documents. If you can provide for those who are smok- Dr. WIGAND (Voiceover). The lawyers inter- Dr. WIGAND. There’s extensive use of this ing and who need to smoke something that vened. technology, which is called ammonia chem- produces less risk for them—I thought I was And then they purged documents every istry, that allows for nicotine to be more going to be making a difference. time there was a reference to a word ‘‘less rapidly absorbed in the lungs and, therefore, [Footage of newspaper story of Wigand.] hazardous’’ or ‘‘safer.’’ affect the brain and central nervous system. WALLACE (Voiceover). Brown & Williamson [Footage of Wigand.] [Footage of documents in file cabinet; made Jeff Wigand vice president for R&D, WALLACE (Voiceover). But Dr. Wigand says computer screen; Williams walking; Glantz; paying him more than $300,000 a year in sal- the lawyers’ interference, their editing and Journal of the American Medical Associa- ary and perks. review of his reports, did not stop him. tion.] Dr. WIGAND. And I was very inquisitive IGAND WALLACE (Voiceover). And then there are Dr. W . And I started asking more when I came on. ‘‘Have you ever done any these documents, thousands of pages of con- probing questions and I started digging deep- nicotine studies? Have you done any phar- fidential scientific reports and legal memo- er and deeper. As I dug deeper and deeper, I macology studies? Have you done any bio- randa from B&W’s secret files, which experts started getting a bodyguard. logical studies? Have you looked at the ef- say support Dr. Wigand’s claim that Brown & WALLACE. What do you mean a bodyguard? fect of nicotine on the central nervous sys- Williamson’s executives have had strong rea- Dr. WIGAND. I went to a meeting; I now was tem?’’ And they always, general categori- son to believe all along that nicotine is ad- accompanied by a lawyer. My bodyguard was cally, ‘‘No, we don’t do that kind of work.’’ dictive and that their tobacco products cause Kendrick Wells. [Footage of Brown & Williamson Tower; cancer and other diseases. Most of these doc- [Footage of Wigand; photo of Sandefur.] Wigand.] uments had been locked away in B&W’s law- WALLACE (Voiceover). Frustrated by the WALLACE (Voiceover). But according to yers’ confidential files in Louisville, Ken- lawyers’ intervention and presence at major those thousands of pages from B&W and its tucky, until this man, the paralegal in that scientific meetings, Dr. Wigand says he took parent, British-American tobacco’s, con- law office, Merrill Williams, walked off with his complaints to Thomas Sandefur, then the fidential files, the company had, in fact, them. The documents found their way to Dr. president of B&W. done exactly those kinds of studies. Dr. Stanton Glantz, a professor of medicine at What’d he say to you? Wigand says he did not suspect there was the University of California Medical Center Dr. WIGAND. ‘‘I don’t want to hear any anything wrong until he attended a meeting in San Francisco. It was Dr. Glantz and a more discussion about a safer cigarette.’’ of scientists who worked for British-Amer- [Still shot of B&W executive.] team of scientists from the university who ican tobacco companies from around the WALLACE (Voiceover). And he says Thomas wrote about the documents this past summer world. Dr. Wigand says that his colleagues Sandefur went on to tell him—— in a series of articles in the Journal of the talked about working together to develop a Dr. WIGAND. ‘‘We pursue a safer cigarette, American Medical Association. What is the story that the documents told safer, a less-hazardous cigarette, a cigarette it would put us at extreme exposure with you? less likely to cause disease. But when it every other product. I don’t want to hear Dr. STANTON GLANTZ (University of Califor- came time to write up their ideas, to create about it anymore.’’ nia Medical Center). They told me that 30 a documentary record of their discussion, WALLACE. All the people who were dying years ago Brown & Williamson and British- B&W’s lawyers intervened. from cigarettes. American Tobacco, its parent, knew nicotine Dr. WIGAND. The minutes that came in Dr. WIGAND. Essentially, yes. was an addictive drug, and they knew smok- were roughly about 18 pages long describ— WALLACE. Cancer—— ing caused cancer and other diseases. the co—I knew what was in the content. Dr. WIGAND. Cancer. [Footage of Glantz.] The—they were rewritten by Kendrick Wells. WALLACE. ——heart disease, things of that WALLACE (Voiceover). And Dr. Glantz says They were— nature. these documents reveal how Brown & WALLACE. Who’s he? Dr. WIGAND. Emphysema. Williamson was keeping that knowledge Dr. WIGAND. Kendrick Wells was the—one [Still shot of Sandefur; footage of Wigand.] from the public. of the staff attorneys at B&W. WALLACE. (Voiceover). Lawyers represent- Dr. GLANTZ. And they also developed very WALLACE. And he rewrote the minutes of ing B&W and Thomas Sandefur have said sophisticated legal strategies to keep this in- the meeting? that all this, as well as other accounts of formation away from the public, to keep this Dr. WIGAND. He rewrote the minutes of the conversations with Thomas Sandefur, are ab- information away from public health au- meeting. He edited out the discussions on solutely false. We asked Dr. Wigand what his thorities. safer cigarette and, basically, toned the reaction was to what he says was Sandefur’s WALLACE. Dr. Wigand said that the ciga- meeting down. decision to abandon a safer cigarette. rette is basically a nicotine delivery instru- WALLACE. You’re saying that one of the Dr. WIGAND. I would say I got angry. ment. That’s what it’s really all about. staff attornyes from B&W, here in the United WALLACE. He was your boss. Dr. GLANTZ. Yes, absolutely. And they—in States, whose name was—— Dr. WIGAND. I bit my tongue. I had just the documents, they say that over and over Dr. WIGAND. Kendrick Wells. transitioned from another—one company to and over again. WALLACE. ——an attorney—— another. I was paid well. It was comfortable. S 1156 CONGRESSIONAL RECORD — SENATE February 7, 1996 And for me to do anything precipitous would [Footage of Wigand and his family at din- lieved that nicotine was not addictive. But put my family at risk. ner table.] Dr. Wigand is paying a heavy price for his WALLACE. You were happy to take down WALLACE (Voiceover). When Dr. Wigand, decision to testify, as well as for breaking the 300,000 bucks a year. who has a wife and two young daughters, was his confidentiality agreement by talking to Dr. WIGAND. I, essentially, yeah, took the fired by Brown & Williamson tobacco, his us. His family life has been shattered, his money. I did my job. contract provided severance pay and critical reputation has been tarnished because of WALLACE. So Dr. Wigand abandoned his health benefits for his family, critical be- B&W’s massive campaign designed to silence idea of trying to develop a new and safer cig- cause one of his children requires expensive him and to discredit this former research arette. He turned his attention to investigat- daily health care. Several months after he chief turned whistle-blower. ing the additives, the flavorings, the other was fired, B&W decided to sue their former They’re trying to do what they can to compounds in B&W tobacco products. Many, head of R&D and they cut off his severance paint you as irresponsible, a liar—— like glycerol, which is used to keep the to- and those vital health benefits. Dr. WIGAND. Well, I think the word they’ve bacco in cigarettes moist, are normally Dr. WIGAND. They said I violated my con- used, Mike, is a ‘‘master of deceit.’’ harmless. But when glycerol is burned in a fidentiality agreement by discussing my sev- WALLACE. You wish you hadn’t come for- cigarette, its chemistry changes. erance package. ward? You wish you hadn’t blown the whis- Dr. WIGAND. Glycerol, when it’s burnt, [Footage of Wigand and Lucretia walking.] tle? forms a—a very specific substance called WALLACE (Voiceover). Lucretia Wigand Dr. WIGAND. There are times I wish I acrolein. says that the firing and B&W’s suspension of hadn’t done it, but there are times that I feel [Footage of book; excerpt from book; benefits was devastating. compelled to do it. I—if you ask me if I smokers.] Mrs. LUCRETIA WIGAND (Dr. Jeffrey would do it again or if it—do I think it’s WALLACE. (Voiceover). According to the Wigand’s Wife). We almost lost our family as worth it, yeah, I think it’s worth it. I think American Council on Science and Health, a unit. Jeff and I almost separated. in the end people will see the truth. acrolin, or acrolEIN, is extremely irritating WALLACE. Why? [Footage of state attorneys general of and has been shown to interfere with the Mrs. WIGAND. Because he was under so Florida, Minnesota and Mississippi.] normal clearing of the lungs. Recent re- much stress and sto—so much pressure that WALLACE (Voiceover). Well, these three search shows that acrolein acts like a car- it was something that we needed help deal- men have seen the same truth as Wigand. cinogen, though not yet classified as such. ing with. We went to counseling and we They are the state attorney’s general of And Dr. Wigand says that B&W continues to worked through it. Florida, Minnesota and Mississippi, where add glycerol to their product. But it was an- WALLACE. And this was, you think, start- Dr. Wigand is testifying in a multibillion- other additive that Dr. Wigand says led to ed—triggered by the business with B&W? dollar lawsuit against the tobacco industry. the end of his career at B&W. Mrs. WIGAND. Yes. I know it was. Mike Moore is attorney general of Mis- Dr. WIGAND. The straw that broke the c— [Footage of Wigand in his kitchen; docu- sissippi. the camel’s back for me and really put me in ment.] Mr. MOORE. Jeffrey’s testimony is going to trouble with Sandefur was a compound WALLACE (Voiceover). B&W settled that be devastating, Mike, to the tobacco indus- called coumarin. lawsuit we mentioned and reinstated those try, so devastating that I fear for his life. I [Footage of smoker; medical record on critical health benefits, only after Dr. think—— mice experiment; B&W documents.] Wigand agreed to sign a new, stricter, life- WALLACE. Are you serious? WALLACE. (Voiceover). Coumarin is a fla- long confidentiality agreement. Mr. MOORE. I’m—I’m very serious. The in- voring that provides a sweet taste to tobacco Nontheless, word of Dr. Wigand’s battles formation that Jeffrey has, I think, is the products, but is known to cause tumors in with Brown & Williamson attracted atten- most important information that has ever the livers of mice. It was removed from B&W tion in Washington, where, in the spring of come out against the tobacco industry. This cigarettes, but according to these docu- 1994, Democratic Congress and the FDA, the industry, in my opinion, is an industry who ments, B&W continued to use it in its Sir Food & Drug Administration, were inves- has perpetrated the biggest fraud on the Walter Raleigh aromatic pipe tobacco until tigating the tobacco industry. Dr. Wigand American public in history. They have lied at least 1992. was contacted by their investigators, and to the American public for years and years. Dr. WIGAND. And when I came on board at after notifying Brown & Williamson, he They have killed millions and millions of B&W, they had tried to tend—transition talked with those investigators. Shortly people and made a profit on it. So I hope from coumarin to another similar flavor that afterward, he was stunned by a couple of that they won’t continue to lie and try to de- would give the same taste. And it was unsuc- anonymous telephone calls. stroy Jeffrey like they destroyed the other cessful. Dr. WIGAND. And in April 1994, on two sepa- lives of people all over this country. [Footage of Wigand and Wallace; report.] rate occasions, I had life threats on my kids. [Footage of newspaper clippings; Wigand WALLACE. (Voiceover). Dr. Wigand says the WALLACE. What? and Wallace; The Investigative Group Inc. news about coumarin and cancer got worse. Dr. WIGAND. We had life threats on my sign.] This report by independent researchers, part kids. WALLACE [Voiceover]. The campaign to de- of a national toxic safety program, presented [Footage of Wigand and Wallace.] stroy Dr. Jeffrey Wigand began over two evidence that coumarin is a carcinogen that WALLACE (Voiceover). Dr. Wigand told us months ago in the midst of a media frenzy causes various cancers. he doesn’t know where they came from, but over our failure to broadcast our August Dr. WIGAND. I wanted it out immediately. that, understandably, they frightened him. interview with him. Brown & Williamson And I was told that it would affect sales and He described the threats by referring to his sued Dr. Wigand for talking to us, despite his I was to mind my own business. And then I diary. confidentiality agreement. And they got a constructed a memo to Mr. Sandefur indicat- Dr. WIGAND. ‘‘A male voice that was on the court order in Kentucky to try to silence ing that I could not, in conscience, continue phone that said, ‘Don’t mess with tobacco him from speaking out further. Then inves- with coumarin, a product that we now know- anymore. How are your kids?’ ’’ Then on tigators hired by B&W fanned out across the ingly have documentation that is lung-spe- April 28th, around 3:00 in the afternoon, rel- country looking for anything they could use cific, carcinogen. ative the same voice—he says, ‘‘Leave to- to discredit the whistle-blower. WALLACE. Right. Sent the document for- bacco alone or else you’ll find your kids Dr. WIGAND. They’ve been going around to ward to Sandefur? hurt. They’re pretty girls now.’’ So I got my family, my friends, digging up and Dr. WIGAND. I sent the document forward scared. I started carrying a gun. digging here and digging there. to Sandefur. I was told that—that we would WALLACE. Really? WALLACE. Then their lawyers—and B&W continue working on a substitute, and we Dr. WIGAND. Yep. Started carrying a hand- has a half-dozen major firms working on the weren’t going to remove it because it would gun. Jeff Wigand case—their lawyers compiled impact sales. And that’s—that was his deci- Mrs. WIGAND. Someone called and threat- the results of their nationwide dragnet into sion. ened to—to kill him and to hurt the family a summary that alleges that, in recent WALLACE. In other words, what you’re if he messed with the tobacco industry. years, Dr. Wigand pled guilty to everything charging Sandefur with and Brown & WALLACE. That was last August. Now in from wife-beating to shoplifting. Beyond Williamson with is, ‘‘ignoring health consid- February, Lucretia Wigand has filed for di- that, they charged him with a multitude of erations consciously’’. vorce, citing spousal abuse, just one of the sins, from fudging his resume to making a Dr. WIGAND. Most certainly. accusations Brown & Williamson is using in false claim three years ago for $95.20 for dry [Footage of Wigand]. their full-throated campaign to discredit Jef- cleaning. WALLACE (Voiceover). After his confronta- frey Wigand. That report when we return. [Footage of Scanlon.] tions over coumarin, Dr. Wigand says he was [Commercial break.] WALLACE (Voiceover). Then Brown & not surprised when, on March the 24th, 1993, WALLACE. Today, three years after he was Williamson retained John Scanlon to get Thomas Sandefur, newly promoted to chief fired by Brown & Williamson, Dr. Jeffrey their story to the media. Scanlon is a fixture executive officer, CEO of B&W, had him Wigand is the star witness in a US Justice of the New York media scene, who has close, fired. Department criminal investigation into the personal relationships with print and tele- And the reason for firing that he gave you? tobacco industry, which includes the ques- vision reporters and producers, as well as Dr. WIGAND. Poor communication skills, tion of whether B&W’s former CEO lied to editors and publishers. We asked him to sit just not cutting it, poor performance. the US Congress when he said that he be- down and discuss the charges he has been February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1157

circulating to me and other reporters, but he Mr. SMITH. Mike, Brown & Williamson re- [Footage of Moore.] declined. But Scanlon did make this state- fused to be a reference for Jeff Wigand after WALLACE (Voiceover). Again, Mississippi ment to a CBS News camera crew. he left. This letter was negotiated with his Attorney General Mike Moore. Mr. JOHN SCANLON (New York). He’s run- attorney, and it was the only statement Mr. MOORE. I’m used to dealing with—with ning from cross-examination. His victims Brown & Williamson would ever make about cocaine dealers and—and crack dealers, and I have decided to respond and present evidence him because Brown & Williamson did not have never seen damage done like the to- that he is, in fact, a habitual liar. want to be a reference for Jeff Wigand. bacco company has done. There’s no com- Dr. WIGAND. The smear campaign—it’s [Footage of Smith and Wallace.] parison. Cocaine kills 10,000, 15,000 people a been very systematic, very organized, very WALLACE (Voiceover). And Mr. Smith had year in this country. Tobacco kills 425,000 well done. this to say about our relationship with Jef- people a year. (Speaking to class). My background is I frey Wigand. Mr. SMITH. Mike, it’s absurd to suggest have a PhD in biochemistry. Mr. SMITH. You’re being led along by a guy that tobacco is any way like cocaine in [Footage of Wigand teaching class; news who’s not believable. You’re getting half the terms of addiction. It’s absolutely absurd to broadcast.] story. suggest that. Brown & Williamson makes a WALLACE (Voiceover). Today Dr. Wigand is WALLACE. Well, then why—— lawful product. They sell it and make it in a a $30,000 a year science teacher at a Louis- Mr. SMITH. You—you—and you’ve got— lawful way. ville, Kentucky, public high school. And his you’ve got a—a vested interest in making WALLACE Well, then why do 425,000 people students, his faculty colleagues and his fam- this man credible. die every year—according to all medical and ily were stunned last month when a Louis- WALLACE. Why do we have a vested inter- scientific evaluations, die of smoking ciga- ville television station broadcast some of est? rettes? Why? Brown & Williamson’s accusations. Mr. SMITH. CBS has—has paid this guy Mr. SMITH. Mike, 50 million people choose Unidentified Reporter (From news broad- $12,000. to use tobacco and smoke. cast). Court records show Wigand was WALLACE. For what? WALLACE. So on a cost-benefit ratio, it’s charged with theft by unlawful taking and Mr. SMITH. I believe for consulting. only 425,000 people who die out of the 50 mil- shoplifting. WALLACE. Now wait just a moment. Let’s lion? [Footage of document; article in The Wall get this straight. Paid him $12,000 for what? Mr. SMITH. No, Mike. Street Journal; Gordon Smith.] Mr. SMITH. To consult on a story for CBS. WALLACE. That’s—that’s a—a—a small WALLACE (Voiceover). Then the Brown & WALLACE. For the record, as we explained fraction. Is that the point you’re making? Williamson 500-page dossier on Wigand was to Mr. Smith, 60 Minutes did, in fact, hire Mr. SMITH. No, Mike, not at all. People given to The Wall Street Journal, who inves- Dr. Wigand two years ago to act as our ex- choose to smoke. People choose to stop tigated the charges. And last Thursday in pert consultant to analyze nearly 1,000 pages smoking. I think you used to smoke and you this front-page story, The Journal reported of technical documents leaked to us, not chose to stop smoking. that, quote, ‘‘a close look at the file and from Brown & Williamson, but from inside independent research by this newspaper into WALLACE. That’s right. Philip Morris, another tobacco company. At its key claims indicates that many of the se- Mr. SMITH. It’s their choice. It’s a lawful that time, Dr. Wigand told us he would not rious allegations against Dr. Wigand are product. It’s marketed and manufactured talk with us about Brown & Williamson. And backed by scanty or contradictory evi- lawfully. he did not, until over a year later. dence.’’ And they continued, quote, ‘‘Some of [Footage of Wigand and Wallace.] the charges, including that he pleaded guilty Dr. WIGAND. I felt an obligation to tell the WALLACE (Voiceover). B&W has questioned to shoplifting, are demonstrably untrue.’’ We truth. There were things I saw, there were Dr. Wigand’s character. But he says that’s put that Journal statement to Gordon things I learned, there was things I observed just a smoke screen, and he has some ques- Smith, an attorney designated by Brown & that I felt—that need to be told. The focus tions for Brown & Williamson. continues to be on what I would call system- Williamson to talk to us. Dr. WIGAND. Why don’t they deal with the The Wall Street Journal went through all atic and aggressive ta—tactics to undermine issue of whether they can develop or—a safer of that material. It says that what—the dos- my credibility and my—some of my personal cigarette? Why don’t they deal with the sier that you put together: ‘‘scant evidence.’’ life. issue of using—and knowingly using addi- WALLACE. But you expected that, didn’t Mr. SMITH. Mr. Wallace, that’s dead wrong. tives that are known to be carcinogenic in There is not scant evidence. The Wall Street you? order not to influence sales? Why don’t we Journal did not—— Dr. WIGAND. Well, I didn’t expect to the ex- deal with that issue? WALLACE. It—— tent it would—it’s happened, OK? It’s—it’s WALLACE. Brown & Williamson did answer disrupted not only my life—I’m in divorce Mr. SMITH. ——did not go over the scores— some of Dr. Jeffrey Wigand’s questions for literally scores of untruths told by Jeff proceedings now. us. They told us they have removed cou- Wigand that we showed to them. [Footage of state attorneys general.] marin—that’s carcinogenic flavoring—from [Footage of Smith and Wallace.] WALLACE (Voiceover). These three state at- their Sir Walter Raleigh aromatic pipe to- WALLACE (Voiceover). And Gordon Smith torneys general say that no matter what bacco, but they insist it never posed a health went on at some length to say that Wigand’s B&W’s accusations are, they remain con- risk to smokers. B&W lawyer Kendrick Wells life, quote, ‘‘is a pattern of lies.’’ vinced that what Wigand has to say about declined to talk to us, but he did deny, in Well, I don’t understand, frankly, Mr. the tobacco industry in general, and Brown testimony last week, Dr. Wigand’s charge Smith. I really don’t understand. Brown & & Williamson in particular, is thoroughly that he had altered the minutes of that sci- Williamson must be in a panic if they are credible. entific meeting. And B&W says the truth going after this man as hard as you are. They are suing the tobacco industry for will come out in the end when they get a Mr. SMITH. You’re wrong. There are no ma- the billions of dollars in state Medicaid costs chance to cross-examine Dr. Wigand under terial inaccuracies in that book, none what- their states have paid to treat people who oath. soever. have become ill from smoking. Minnesota And they insist that we, CBS, cannot re- [Footage of performance appraisal docu- Attorney General Hubert Humphrey III. port on this story objectively since we are ment on Wigand; Wigand; letter.] Mr. HUBERT HUMPHREY III (Minnesota At- indemnifying Dr. Wigand in B&W’s lawsuit torney General). We want to see the full WALLACE (Voiceover). But not included in against him. Two months ago CBS agreed to that dossier were Brown & Williamson’s own truth come out. We want the deception and do that after a leak resulted in the disclo- personnel records, which showed that fraud and the violations of our state laws sure of Dr. Wigand’s identity before he was Wigand had received good performance ap- stopped. And we want people that are mak- prepared to go public. Though still unaware praisals for the first three years from B&W. ing the money on this product to bear the of where that leak had come from, CBS de- In his fourth year, however, those appraisals full cost of the health-care burden that is cided to take financial responsibility for the turned sour. But despite that, even after he there. impact that leak had on Dr. Wigand because was fired, he received this letter from Brown [Footage of state attorneys general.] it exposed him to a lawsuit by Brown & & Williamson’s personnel director. WALLACE (Voiceover). Bob Butterworth is Williamson. ‘‘To whom it may concern, Dr. Jeffrey the attorney general of Florida. A footnote. Wigand was instrumental in the development Mr. BOB BUTTERWORTH (Florida Attorney [Footage of That Courier-Journal headline of new products, as well as the major impe- General). The issue has been deceit. and article.] tus behind a significant upgrade in our R&D WALLACE. Deceit. WALLACE (Voiceover). This banner headline technical capabilities, both in terms of peo- Mr. BUTTERWORTH. Pure and simple deceit. yesterday in the Louisville Courier-Journal, ple and equipment. During his tenure at The cigarette companies made a decision B&W’s hometown newspaper, about charges Brown & Williamson, Dr. Wigand dem- that they would withhold valuable informa- their employees and engaged in smuggling onstrated a high level of technical knowl- tion from the American public, information and bribes in Louisiana. edge and expertise.’’ that the consumer would need to make a—an In that story, the US attorney in New Orle- And this is on your own stationery, your intelligent decision as to whether or not ans says, ‘‘Look for some indictments in the own man saying bad about him. they wish to smoke or not to smoke. very near future.’’ S 1158 CONGRESSIONAL RECORD — SENATE February 7, 1996 FEBRUARY 5, 1996. ORDERS FOR RECONVENING OF The PRESIDING OFFICER. Without Hon. NANCY L. KASSEBAUM, THE SENATE objection, it is so ordered. Chairwoman, Committee on Labor and Human f Resources, U.S. Senate, Washington, DC. Mr. DOLE. Mr. President, I ask unan- Hon. EDWARD M. KENNEDY, imous consent that when the Senate ORDERS FOR TUESDAY, Ranking Member, Committee on Labor and completes its business today it stand in FEBRUARY 27, 1996 Human Resources, U.S. Senate, Washing- recess until the hour of 11 a.m. on Fri- ton, DC. day, February 9, and that following the Mr. DOLE. I further ask that when DEAR SENATORS KASSEBAUM AND KENNEDY: prayer there be a period for morning the Senate completes its business on I am writing to urge you to schedule hear- business not to extend beyond the hour Monday, February 26, it stand in recess ings in your Committee on recent disclosures of 1 p.m. with the time to be equally di- until 10 a.m. on Tuesday, February 27, about the health effects of tobacco products vided between the two parties, and that and that following the prayer there be and the nicotine contained in them. I believe following the use or yielding back of a period for the transaction of morning that recent legal tactics by the tobacco in- business not to extend beyond the hour dustry have led to the suppression of vital the morning business time the Senate automatically stand in recess until of 10:30 a.m., with Senators permitted public health information about Congress. to speak for up to 5 minutes each. Consequently, Members of Congress have had Tuesday, February 13, at 10:30 a.m. for to rely on leaks and incomplete information a pro forma session only, and that im- The PRESIDING OFFICER. Without concerning the health effects of tobacco and mediately following convening, the objection, it is so ordered. nicotine. It would be an enormous service to Senate stand in recess until 10:30 a.m. Mr. DOLE. I further ask that at 10:30 Congress for your Committee to hold com- on Friday, February 16 for a pro forma a.m., there be 2 hours to be equally di- prehensive hearings on this matter because session only, and that immediately fol- vided in the usual form for debate with there are at least 42 bills affecting the lowing convening that day the Senate respect to cloture on the D.C. appro- growth, sale and promotion of tobacco prod- stand in recess until 11 a.m. on Tues- priations conference report. ucts pending before Congress. The PRESIDING OFFICER. Without 1995 was a year full of revelations about day, February 20, 1996, and that follow- ing the prayer there be a period for objection, it is so ordered. the tobacco industry and the content of its Mr. DOLE. I ask that the Senate cigarettes. There were various articles on al- routine morning business not to extend legations of nicotine manipulation by to- beyond the hour of 1 p.m. with the time stand in recess between the hours of bacco companies. Despite this trickling out to be equally divided between the two 12:30 p.m. and 2:15 p.m. on Tuesday, of information on the dangers of tobacco, parties, and that following the use or February 27, in order for the weekly there were two infamous incidents in 1995 yielding back of time the Senate auto- party conferences to meet. that set dangerous precedents. matically stand in adjournment until The PRESIDING OFFICER. Without First, Philip Morris sued Capital Cities/ 11 a.m. on Friday, February 23, 1996. objection, it is so ordered. ABC for $10 billion over its report that this The PRESIDING OFFICER. Without Mr. DOLE. Again, for the informa- tobacco giant ‘‘spiked’’ its cigarettes with tion of all Senators, the first rollcall nicotine. R.J. Reynolds later filed a similar objection, it is so ordered. Mr. DOLE. I further ask unanimous vote will occur at 12:15 on Tuesday, lawsuit against Capital Cities/ABC. These February 27, 1996, and that vote will be two companies pressured Capital Cities/ABC consent that following the prayer on to settle these suits despite the fact that its Friday, February 23, the Journal of a cloture vote with respect to the D.C. story appeared to be factually supported by proceedings be deemed approved to appropriations conference report. interviews and internal company documents. date, no resolutions come over under f Second, the CBS news program 60 Minutes the rule, the call of the calendar be dis- ACCOMPLISHMENTS OF THE canceled an interview with a former Brown pensed with, the morning hour be SENATE and Williamson tobacco executive due to deemed to have expired, and the time fears of a lawsuit, even though its reporters for the two leaders be reserved for their Mr. DOLE. Mr. President, let me in- believed in the accuracy of the interview and use later in the day, and there then be dicate that I think we have accom- the reporting. While CBS has subsequently plished a great deal this year in the agreed to air this piece, it apparently has a period for morning business not to extend beyond the hour of 1 p.m. with Senate, and we will accomplish a great done so only because of a recent leak in the deal more. Normally there is a period Wall Street Journal involving the same the time equally divided between the former executive. two parties, and that following the use of recess for Lincoln’s birthday so Re- These two episodes have sent a chilling or yielding back of time, morning busi- publicans can go out and do whatever message to the media about reporting new ness be closed and the Senate then turn they do during that week, and then information on the health consequences of to the conference report to accompany there is a later period of a week for tobacco. If these two major broadcast net- the District of Columbia appropria- Democrats. works are intimidated by these tobacco com- tions bill, and the conference report be I regret that we could not adjourn panies, then smaller news organizations the Senate to accommodate many would seem to face even greater challenges considered as read. The PRESIDING OFFICER. Without members of the staff who will now be in reporting important stories on the health required probably to stay here, because effects of tobacco and nicotine. The mere objection, it is so ordered. threat of legal action will likely force the Mr. DOLE. On Friday, February 23, if we take a look at last year, we came suppression of critical information on to- the Senate will conduct a period for in early in January and stayed bacco and nicotine from being reported in morning business, and following morn- throughout the year with hardly any the press and subsequently used by Members ing business it will be the majority breaks. I am not complaining about of Congress. Therefore, it appears that the leader’s intention to file a cloture mo- that, but those are the facts. I should only way that Congress will be able to get tion on the District of Columbia appro- know. I think we may have set records complete information on the health effects priations conference report. Therefore, with the number of votes and the num- of tobacco and nicotine is if your Committee ber of hours in session. It was truly a holds comprehensive hearings. votes will not occur on Friday, Feb- remarkable year, and we accomplished I know that you will conduct balanced ruary 23. hearings and I fully expect that you would It will be the majority leader’s inten- a great deal. We have a great deal more include witnesses from all points of view, in- tion to set the cloture vote on the D.C. to do this year. I regret that we were cluding representatives of the tobacco indus- appropriations conference report for unable to just recess. There will be no try. This will allow Congress, and the Amer- Tuesday, February 27, 1996, at 2:15 p.m. votes until February 27, and perhaps ican people, to hear all sides and be fully in- I further ask that when the Senate members of the staff whom I am look- formed about the health effects of tobacco completes its business on Friday, Feb- ing at now can work out some little and nicotine. This will also allow Congress ruary 23, it stand in recess until 3 p.m. time to have some relaxation and rest to consider pending legislation affecting to- on Monday, February 26; that imme- because they certainly deserve it. We bacco in a well educated manner. diately following the prayer, Senator have had long sessions. We have been Thank you for your consideration of this AKAKA be recognized to read Washing- in late at night and some of us were request. I would be happy to work with you so that these hearings can be held as soon as ton’s Farewell Address. It will be the here during the holidays negotiating possible. leader’s intention to then recess fol- with the President trying to work out Sincerely, lowing the address until 11 a.m. on a budget agreement. We do not have it FRANK LAUTENBERG. Tuesday, February 27, 1996. yet. February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1159 America’s Governors may have It is not 3 weeks. It is about 2 Mr. DOLE. Mr. President, I ask unan- moved it along a little bit. We are still weeks—10 days—10 days. So we will be imous consent that the order for the not in accord with the President, and back. In the interim, if there is any- quorum call be rescinded. we hope that might be possible. I must thing that should be done, obviously The PRESIDING OFFICER. Without say the American people will only ac- we are going to be in here on this Fri- objection, it is so ordered. cept a good agreement, not a game of day, and next week there are pro forma arithmetic, but policy changes that sessions, and then we are in again for a f will mean a great deal to the American couple hours each day and we can take people, bring interest rates down a cou- care of any business that might come RECESS ple of percent so that when you buy a before the Senate. Mr. DOLE. Mr. President, I ask unan- home or car or borrow money for one of So I want to thank all of my col- imous consent that the Senate stand in your children going to college or what- leagues for their help and their co- recess for 2 minutes. ever, you will pay 2 percent less inter- operation so far this year. It is going to There being no objection, the Senate, est. The American people can under- be a long year. There will be a lot of at 6:31 p.m., recessed until 6:34 p.m.; stand that. That is what the first ses- work to do, but I believe we can accom- whereupon, the Senate reassembled sion was all about, and that is what the plish what we set out to do in the first when called to order by the Presiding second session is going to be all about. place—welfare reform, balance the Officer (Mr. ASHCROFT). In the meantime, today we passed budget, regulatory reform, tax relief The PRESIDING OFFICER. In my historic farm legislation. We passed a for families with children, all those capacity as a Senator from the State of very significant DOD authorization re- things that are so necessary if we are Missouri, I suggest the absence of a port. We passed a START II Treaty going to get the economy moving again quorum. which the President requested in his The clerk will call the roll. State of the Union Message. We had all and if we are going to have that hope The assistant legislative clerk pro- the work done before and we were just and optimism that the American peo- waiting for a vote. ple are looking for. So I thank the Pre- ceeded to call the roll. We also passed the telecommuni- siding Officer. The PRESIDING OFFICER. The cations bill, probably the biggest jobs f Chair, in his capacity as a Senator from the State of Missouri, asks unani- bill in this decade. We have done all ORDER FOR RECESS that plus public housing reform, which mous consent that the order for the was very significant legislation. Mr. DOLE. If there is no further busi- quorum call be rescinded. So I do not want the RECORD to only ness to come before the Senate, I move Without objection, it is so ordered. reflect the statements I heard earlier we stand in recess under the previous f from my friend from Ohio, Senator order following the remarks of Senator GLENN, and the Senator from Michigan, DASCHLE. RECESS UNTIL FRIDAY, Senator LEVIN, that it has been sort of The PRESIDING OFFICER. The a waste of time. Because there will be question is on agreeing to the motion. FEBRUARY 9, 1996, AT 11 A.M. no votes does not mean that there will The motion was agreed to. The PRESIDING OFFICER. Under not be hearings and progress, and I am Mr. DOLE. Mr. President, I suggest the previous order, the Senate now certain my colleagues on both sides of the absence of a quorum. stands in recess until 11 a.m. on Fri- the aisle will either be here working or The PRESIDING OFFICER. The day, February 9. be at home working. I think that from clerk will call the roll. Thereupon, the Senate, at 6:43 p.m., time to time it is good to go home and The assistant legislative clerk pro- recessed until Friday, February 9, 1996, find out what the people are thinking. ceeded to call the roll. at 11 a.m. February 7, 1996 CONGRESSIONAL RECORD — Extensions of Remarks E 189 EXTENSIONS OF REMARKS

SENATE COMMITTEE MEETINGS and the Public Health Service Act to MARCH 5 Title IV of Senate Resolution 4, improve the regulation of food, drugs, 9:30 a.m. agreed to by the Senate on February 4, devices, and biological products. Veterans’ Affairs SD–430 1977, calls for establishment of a sys- To hold joint hearings with the House Committee on Veterans’ Affairs to re- tem for a computerized schedule of all FEBRUARY 22 meetings and hearings of Senate com- view the legislative recommendations mittees, subcommittees, joint commit- 9:30 a.m. of the Veterans of Foreign Wars. Labor and Human Resources tees, and committees of conference. 345 Cannon Building To continue hearings on S. 1477, to This title requires all such committees amend the Federal Food, Drug, and MARCH 14 to notify the Office of the Senate Daily Cosmetic Act and the Public Health 9:30 a.m. Digest—designated by the Rules Com- Service Act to improve the regulation mittee—of the time, place, and purpose Veterans’ Affairs of food, drugs, devices, and biological To hold joint hearings with the House of the meetings, when scheduled, and products. Committee on Veterans’ Affairs to re- any cancellations or changes in the SD–430 view the legislative recommendations meetings as they occur. of the Paralyzed Veterans of America, As an additional procedure along FEBRUARY 27 the Jewish War Veterans, the Retired with the computerization of this infor- 9:30 a.m. Officers Association, the Association of mation, the Office of the Senate Daily Labor and Human Resources the U.S. Army, the Non Commissioned Digest will prepare this information for To hold oversight hearings on the Fair Officers Association, and the Blinded printing in the Extensions of Remarks Labor Standards Act. Veterans Association. section of the CONGRESSIONAL RECORD SD–430 345 Cannon Building on Monday and Wednesday of each 10:00 a.m. week. Governmental Affairs MARCH 27 Meetings scheduled for Thursday, Permanent Subcommittee on Investiga- 9:30 a.m. February 8, 1996, may be found in the tions Veterans’ Affairs Daily Digest of today’s RECORD. To hold hearings on the Asset Forfeiture To hold joint hearings with the House Program, focusing on an investigation MEETINGS SCHEDULED Committee on Veterans’ Affairs to re- of the Bicycle Club Casino. view the legislative recommendations SD–342 of the Veterans of World War I, FEBRUARY 14 AMVETS, the American Ex-Prisoners 10:00 a.m. FEBRUARY 28 of War, the Vietnam Veterans of Amer- Governmental Affairs 9:00 a.m. ica, and the Military Order of the Pur- Permanent Subcommittee on Investiga- Labor and Human Resources ple Heart. tions Business meeting, to consider pending To hold hearings to examine Medicare’s 345 Cannon Building billings policy for investigational de- calendar business. vices and procedures by hospitals na- SD–430 SEPTEMBER 17 tionwide. 9:30 a.m. 9:30 a.m. SD–342 Veterans’ Affairs Veterans’ Affairs To hold joint hearings with the House To hold joint hearings with the House FEBRUARY 21 Committee on Veterans’ Affairs to re- Committee on Veterans’ Affairs to re- 9:30 a.m. view the legislative recommendations view the legislative recommendations Labor and Human Resources of the Disabled American Veterans. of the American Legion. To hold hearings on S. 1477, to amend the 345 Cannon Building 335 Cannon Building Federal Food, Drug, and Cosmetic Act

∑ 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. Wednesday, February 7, 1996 Daily Digest

HIGHLIGHTS Senate passed Farm Bill. Senate ticipation in USDA programs by tribally-controlled Chamber Action colleges, and to make certain further technical and Routine Proceedings, pages S1001–S1159 clarifying changes. Pages S1012±15, S1030 Measures Introduced: Four bills and two resolu- (5) By 58 yeas to 38 nays (Vote No. 14), Bryan tions were introduced, as follows: S. 1563–1566, S. Amendment No. 3447 (to Amendment No. 3184), Res. 225, and S. Con. Res. 41. Page S1083 to provide that funds made available for the market Measures Passed: promotion program may be used to provide cost- share assistance only to small businesses or Capper- Farm Bill: By 64 yeas to 32 nays (Vote No. 19), Volstead cooperatives and to cap the market pro- Senate passed S. 1541, to extend, reform, and im- motion program. Pages S1024±27, S1038±39 prove agricultural commodity, trade, conservation, (6) By 57 yeas to 39 nays (Vote No. 15), Harkin and other programs, taking action on amendments Amendment No. 3448 (to Amendment No. 3184), proposed thereto, as follows: Pages S1001±59 to amend the eligibility criteria for the Environ- Adopted: mental Quality Incentive Program. (1) Craig (for Leahy/Lugar) Modified Amendment Pages S1027±29, S1039 No. 3184, in the nature of a substitute. (7) Ford/Daschle Amendment No. 3449 (to Pages S1001±59 Amendment No. 3184), to provide funds for rural (2) By 50 yeas to 46 nays (Vote No. 10), development and related activities. Pages S1029±30 Wellstone (for Kohl) Amendment No. 3442 (to Amendment No. 3184), to eliminate the provision (8) Lugar (for Kempthorne) Amendment No. granting consent to the Northeast Interstate Dairy 3453 (to Amendment No. 3184), to require the De- partment of Agriculture to allow the private sector Compact. Pages S1001±10, S1035±36 (3) Brown Modified Amendment No. 3443 (to to develop farm management plans. Page S1048 Amendment No. 3184), to direct the Secretary of (9) Lugar (for Graham/Mack) Amendment No. Agriculture to ensure that private property rights, 3454 (to Amendment No. 3184), to provide for the including water rights, will be recognized and pro- development of a pilot project for crop insurance tected in the course of special use permitting deci- coverage that indemnified crop losses due to a natu- sions for existing water supply facilities. ral disaster such as insect infestation or disease. Pages S1010±12, S1036 Page S1053 (4) Lugar Modified Amendment No. 3444 (to (10) Lugar (for Santorum) Amendment No. 3455 Amendment No. 3184), to establish oilseed loan (to Amendment No. 3184), to establish a farmland rates, to include provisions on trade, research, credit, protection program. Pages S1053±54 rural development, and promotion, to restore an au- (11) Leahy (for Johnston) Amendment No. 3456 thorization for ethanol research, to authorize a Wild- (to Amendment No. 3184), to make available to rice life Habitat Incentives Program, to reauthorize the producers a price support at a level not less than fluid milk promotion program, to authorize the For- 50%, or more that 90% of the parity price for rice eign Market Development Cooperator program, to as the Secretary determines will not result in increas- allow USDA to make adjustments in contract acres, ing stocks of rice to the Commodity Credit Corpora- to authorize grants for water and wastewater systems tion. Page S1054 in rural and native villages in Alaska, to provide for (12) Leahy (for Pryor) Amendment No. 3457 (to a reduced application process for the Indian Reserva- Amendment No. 3184), of a perfecting nature. tion Extension Agent program and for equitable par- Page S1054 D 68 February 7, 1996 CONGRESSIONAL RECORD — DAILY DIGEST D 69 (13) Leahy (for Boxer) Amendment No. 3458 (to Withdrawn: Amendment No. 3184), to express the sense of the Hatch Amendment No. 3277 (to Amendment Senate that the Department of Agriculture should No. 3184), to permit participating households to use continue to make methyl bromide alternative re- food stamp benefits to purchase nutritional supple- search and extension activities a high priority of the ments of vitamins, minerals, or vitamins and min- Department. Page S1054 erals. Pages S1049±52 (14) Leahy (for Conrad) Amendment No. 3459 (to Max Rosenn U.S. Courthouse: Committee on En- Amendment No. 3184), to reduce uncertainty vironment and Public Works was discharged from among farmers as to the status of agricultural lands further consideration of H.R. 1718, to designate the with respect to environmental and conservation pro- United States courthouse located at 197 South Main grams. Page S1054 Street in Wilkes-Barre, Pennsylvania, as the ‘‘Max (15) Leahy (for Conrad) Amendment No. 3460 (to Rosenn United States Courthouse’’, and the bill was Amendment No. 3184), to improve the provisions then passed, clearing the measure for the President. and flexibility relating to rural business and coopera- Pages S1077±78 tive development. Page S1054 (16) Leahy (for Conrad) Amendment No. 3461 (to E. Barrett Prettyman U.S. Courthouse: Commit- Amendment No. 3184), to change the land owner- tee on Environment and Public Works was dis- ship requirement applicable to qualified beginning charged from further consideration of S. 1510, to farmers and ranchers for the purposes of the consoli- designate the United States Courthouse in Washing- ton, District of Columbia, as the ‘‘E. Barrett dated Farm and Rural Development Act. Page S1054 Prettyman United States Courthouse’’, and the bill (17) Lugar (for Craig) Amendment No. 3462 (to was then passed. Page S1078 Amendment No. 3184), to require the Secretary of Agriculture to establish standards for the labeling of Technology Transfer Improvements Act: Com- sheep carcasses, parts of carcasses, meat, or meat food mittee on Commerce, Science, and Transportation products as lamb or mutton. Page S1055 was discharged from further consideration of H.R. Rejected: 2196, to amend the Stevenson-Wydler Technology (1) By 37 yeas to 59 nays (Vote No. 11), Harkin Innovation Act of 1980 with respect to inventions Modified Amendment No. 3445 (to Amendment made under cooperative research and development No. 3184), to strike the section relating to the Com- agreements, and the bill was then passed, after modity Credit Corporation interest rate. agreeing to the following amendment proposed Pages S1015±18, S1036±37 thereto: Pages S1078±83 (2) By 35 yeas to 61 nays (Vote No. 12), Harkin Dole (for Rockefeller/Rockefeller) Amendment Amendment No. 3446 (to Amendment No. 3184), No. 3463, of a perfecting nature. Pages S1078±83 to provide for the continued carrying out of the D.C. Appropriations Conference Report—Agree- Farmer Owned Reserve program. Pages S1018, S1037 ment: A unanimous-consent agreement was reached (3) Santorum Amendment No. 3225 (to Amend- providing for the consideration of the conference re- ment No. 3184), to reform the peanut program by port on H.R. 2546, making appropriations for the establishing a national average quota support rate for government of the District of Columbia and other each of the 1996 through 2000 crops of quota pea- activities chargeable in whole or in part against the nuts, and to eliminate the quota for the 2001 and revenues of said District for the fiscal year ending 2002 crops of peanuts. (By 59 yeas to 36 nays (Vote September 30, 1996. Page S1158 No. 13), Senate tabled the amendment.) Appointments: Pages S1018±23, S1031, S1037±38 Washington’s Farewell Address: The Chair, on (4) By 35 yeas to 61 nays (Vote No. 16), Gregg behalf of the Vice President, pursuant to the order Amendment No. 3450 (to Amendment No. 3184), of the Senate of January 24, 1901, as modified by to strike provisions extending the sugar program. the order of February 7, 1996, appointed Senator Pages S1030±35, S1039±40 Akaka to read Washington’s Farewell Address on (5) By 48 yeas to 48 nays (Vote No. 17), Dorgan February 26, 1996. Page S1158 Amendment No. 3451 (to Amendment No. 3184), to require farmers to plant crops to receive Federal Messages From the House: Page S1083 payments. Pages S1040±43, S1052 Measures Placed on Calendar: Page S1083 (6) By 33 yeas to 63 nays (Vote No. 18), Daschle Statements on Introduced Bills: Pages S1083±84 Amendment No. 3452 (to Amendment No. 3184), to amend the commodity payment provisions. Additional Cosponsors: Pages S1084±86 Pages S1043±53 Amendments Submitted: Pages S1086±S1151 D 70 CONGRESSIONAL RECORD — DAILY DIGEST February 7, 1996

Authority for Committees: Page S1151 cific Affairs; and James Lilley, American Enterprise Additional Statements: Pages S1151±58 Institute, Gerrit W. Gong, Center for Strategic and International Studies, and Carl W. Ford, Jr., Ford & Record Votes: Ten record votes were taken today. Associates, all of Washington, D.C. (Total–19) Pages S1036±40, S1052±53, S1059 Hearings were recessed subject to call. Recess: Senate convened at 7:30 a.m., and recessed FEDERAL EMPLOYMENT REFORM at 6:44 p.m., until 11 a.m., on Friday, February 9, 1996. Committee on Governmental Affairs: Committee held hearings on proposals to repeal the prohibitions against political recommendations relating to Federal Committee Meetings employment and to reenact certain provisions relat- ing to recommendations by Members of Congress, (Committees not listed did not meet) receiving testimony from Senators Lott and Simon; and James B. King, Director, Office of Personnel TAIWAN SECURITY Management. Committee on Foreign Relations: Subcommittee on East Hearings were recessed subject to call. Asian and Pacific Affairs held hearings to examine the current security situation in the Taiwan Strait WHITEWATER area, focusing on recent reports of threats by the Special Committee to Investigate the Whitewater Develop- government of the People’s Republic of China to- ment Corporation and Related Matters: Committee re- ward Taiwan and United States policy with regard sumed hearings to examine issues relative to the to China-Taiwan relations, receiving testimony from Whitewater Development Corporation, receiving tes- Winston Lord, Assistant Secretary of State for East timony from Webster L. Hubbell, former Associate Asian and Pacific Affairs; Kurt M. Campbell, Dep- Attorney General, Department of Justice. uty Assistant Secretary of Defense for Asian and Pa- Hearings continue tomorrow. February 7, 1996 CONGRESSIONAL RECORD — DAILY DIGEST D 71 House of Representatives Chamber Action NEW PUBLIC LAWS (For last listing of Public Laws, see DAILY DIGEST p. D65) The House was not in session today. It will meet S. 1341, to provide for the transfer of certain again on Friday, February 9 at 11 a.m. lands to the Salt River Pima-Maricopa Indian Com- munity and the city of Scottsdale, Arizona. Signed February 6, 1996. (P.L. 104–102) Committee Meetings f NATIONAL LABOR RELATIONS ACT COMMITTEE MEETINGS FOR THURSDAY, AMENDMENTS FEBRUARY 8, 1996 Committee on Economic and Educational Opportunities: (Committee meetings are open unless otherwise indicated) Held a hearing on H.R. 2497, to amend the Na- Senate tional Labor Relations Act. Testimony was heard from public witnesses. Committee on Labor and Human Resources, to resume hear- ings on S. 295, to permit labor management cooperative efforts that improve America’s economic competitiveness OMB 2000 REFORMS: WHERE ARE WE to continue to thrive, 9:30 a.m., SD–430. HEADING? Special Committee To Investigate Whitewater Development Committee on Government Reform and Oversight: Sub- Corporation and Related Matters, to continue hearings to committee on Government Management, Informa- examine certain issues relative to the Whitewater Devel- tion and Technology held a hearing on OMB 2000 opment Corporation, 10 a.m., SH–216. Reforms: Where Are We Heading? Testimony was NOTICE heard from the following officials of the OMB: Alice For a Listing of Senate Committee Meetings M. Rivlin, Director; and John Koskinen, Deputy Di- Scheduled ahead, see Page E189 in today’s Record. rector; the following officials of the GAO: L. Nye Stevens, Director, Federal Management and House Workforce Issues; and Paul L. Posner, Director, Committee on Banking and Financial Services, hearing to Budget Issues, Accounting and Information Manage- provide an update on the debt ceiling limit issue, 9:30 ment Division; and public witnesses. a.m., 2128 Rayburn. Committee on Government Reform and Oversight, Sub- NII COPYRIGHT PROTECTION committee on Human Resources and Intergovernmental Relations, oversight hearing on the use of automated Committee on the Judiciary: Subcommittee on Courts screens by Medicare contractors to prevent payment of and Intellectual Property held a hearing on H.R. medically unnecessary claims, 9 a.m., 2247 Rayburn. 2441, NII Copyright Protection Act of 1995. Testi- Committee on the Judiciary, Subcommittee on Courts and mony was heard from public witnesses. Intellectual Property, to continue hearings on H.R. 2441, Hearings continue tomorrow. NII Copyright Protection Act of 1995, 9 a.m., 2237 Rayburn. D 72 CONGRESSIONAL RECORD — DAILY DIGEST February 7, 1996

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 11 a.m., Friday, February 9 11 a.m., Friday, February 9

Senate Chamber House Chamber Program for Friday: No legislative business is sched- Program for Friday: No legislative business is sched- uled. uled.

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