12602 CONGRESSIONAL RECORD-SENATE May 29, 1980 SENATE-Thursday, May 29, 1980 (Legislative day of Thursday, January 3, 1980) The Senate met at 10 a.m., on the ex­ fers to the Selective Service System Now the administration has asked piration of the recess, and was called to $13.295 million in currently uncomrilitted Congress to appropriate the funds neces­ order by Hon. HOWELL HEFLIN, a Senator funds. This money would be used to re­ sary to revitalize the Selective Service from the State of . vitalize the Selective Service System and System and reinstitute military registra­ to register young men between the ages tion. Let me point out that military regis­ PRAYER of 19 and 20 for military service. tration is separate from the draft. The President does not now have the author­ The Chaplain, the Reverend Edward The registration plan calls for the U.S. Postal Service to undertake registration. ity to reinstitute the draft; that author­ L. R. Elson, D.D., otfered the following ity must be mandated by Congress. The prayer: Young men born· in 1960 and 1961 would be required to go to their local post office President is not asking for authority to Hear the words of the Apostle Paul in to register, where they would fill out a reinstitute the draft, and that is not the First Corinthians, the second chapter, simple form with their name, address, issue we are addressing at this time. 15th verse: date of birth, and social security number. I support peacetime registration. It The spiritual man is alive to all true The forms would be checked at the postal would enhance our general military pre­ values. windows to insure that they are legible paredness. It is an appropriate. action to Let us pray. and complete, and then sent to the Se­ take, given changing global realities and Eternal Father, whose mercies are new lective Service System where the infor­ recent events in the Persian Gulf area every morning, make us alive to the mation would be computerized. Subse­ and in Southwest Asia. It is important beauty and wonder of the world about quently, the registrant would receive a for our Nation to express its resolve us. Awaken us to the beauty of sight and short letter from the Selective Service through military preparedness. sound and sacred silences. Keep us alive System, indicating that he had been reg­ The Selective Service is presently in to the values of human character-of istered, and asking that the System be "deep standby." DOD mobilization plans bravery and brotherhood, of lofty kept informed of any change of address. call for delivering the first contingent of thought and wide horizons. Keep us from The proposal for military registration draftees within 30 days after a mobiliza­ being little souls wrapped in the narrow should be examined in the light of his­ tion, and for having at least 100,000 in confinement of selfish pursuits. Spare us tory and in the light of present circum­ training within 60 days. Under present from moral softness and spiritual flab­ stances. circumstances, it would take 110 to 120 biness. As we undertake our work put Through most of our history, the days for the first inductee to set foot on with;n us sinews of the spirit, moral has maintained relatively a training base. ruggedness, and an unvarying sense of small standing armed forces in peace­ Registration is intended to build a pool righteousness. So may our service be time, composed of volunteers. In the 20th of names and addresses so that a draft­ pleasing in Thy sight; for Thine is the century, during times of war, those if enacted-could begin with little delay. kingdom and the power and the glory trained forces have been augmented by It is a move to improve the overall readi­ forever. Amen. large numbers of draftees, with the force ness of the United States in the event of levels shrinking back to peacetime num­ mobilization. bers after the war. It has been argued that advanced reg­ APPOINTMENT OF ACTING PRES­ Shortly after World War II, the world istration would save us only 7 days IDENT PRO TEMPORE situation underwent noticeable changes, in the event of a crisis. Another argu­ The PRESIDING OFFICER. The clerk with free nations becoming increasingly ment supports the view that premobi11- will please read a communication to the interdependent, for both economy and zation registration could save us up to Senate from the President pro tempore security reasons. Circumstances required 15 weeks. Often cited by critics of pre­ (Mr. MAGNUSON) • the United States to maintain a large mobilization is a draft working-docu­ standing armed force. It was assumed The assistant legislative clerk read the that the only way a high force level could ment circulated by the Selective Service following letter: be maintained was through an ongoing which noted that only 7 days would be U.S. SENATE, draft, and such was the case for almost saved if we chose a premobilization plan PRESIDENT PRO TEMPORE, over a postmobilization plan. This as­ Washington, D.C., May 29, 1980. 25 years. From 1948 to 1973, a peacetime draft sumption has been shown to be incorrect To the Senate: in light of more detailed analysis con­ Under the provisions of rule I, section 3, was in etfect. Young men were required of the Standing Rules of the Senate, I hereby to register for the draft upon reaching ducted by the Selective Service since the appoint the Honorable HoWELL HEFLIN, a. their i8th birthday, and upon register­ report first attracted attention in Jan­ Sena.tor from the State of Alabama., to per­ ing, they were subject to up to 2 years uary. The later analysis found that the form the duties of the Cha.tr. of active duty in the military, depending schedule does not allow sufficient time to WARREN G. MAGNUSON, on the manpower requirements of the take such necessary steps as activating President pro tempore. armed services. the Postal Service and distributing reg­ Mr. HEFLIN thereuPon assumed the Under the provisions of Public Law istration materials, getting legislation chair as Acting President pro tempore. 92-129--enacted in September 1971- and an appropriation through Congress, the authority to draft young men for or transporting registration data. Even service in the military expired on June if our preparedness response can be im­ RECOGNITION OF THE MAJORITY 30, 1973. However, 18:.year-olds were still proved by only 7 days under a pre- versus LEADER required to register. This requirement re­ a post-mobilization strategy, those 7 days mained effective/ until 1975, when in can be critical in the event of a crisis, The ACTING PRESIDENT pro tem­ March of that year, President Ford pore. Under the previous order, the ma­ temporarily suspended registration­ particularly if troops are on a beach­ jority leader is recognized. etfective April 1, 1975-to- allow for a head waiting for replacements. study of the registration system. But What we are asking ourselves is: Do when the study was completed, President we as a nation want to have advanced MILITARY REGISTRATION Ford did not reinstitute registration. registration which, in the event of a Mr. ROBERT C. BYRD. Mr. President, Thus, the authority to require military crisis, assures that there will be sufficient the Senate will soon turn to debate on registration has been dormant for 5 manpower on line to support our Armed House Joint Resolution 521, which trans- years. Forces in a timely manner? Or do we

•This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. May 29, 1980 CONGRESSIONAL RECORD-SENATE 12603 risk the uncertainties of a postmobiliza­ helps chart a clear course for greater football. The President made a grave tion effort? preparedness. mistake in withdrawing his support for The ready manpower support which Mr. President, I yield the :floor. this report. I will await with great in­ advanced registration could provide to terest the action to be taken by the other the Armed Forces is an important pool body. I hope that the House will adopt RECOGNITION OF THE the conference report. If they do not, of from which we could fill our prepared­ MINORITY LEADER ness needs in the event of a crisis. Mili­ course, the issue will be disposed of for tary registration has traditionally been The ACTING PRESIDENT pro tem­ the time being. If they do, it will come used to augment the armed services, pore. Under the previous order, the mi­ here and I am sure there will be a lively which were never intended to stand nority leader is recognized. debate. I do not intend for the President alone. Both the All-Volunteer Forces and Mr. BAKER. Mr. President, I thank to have it both ways in this matter. our Reserves must be able to count on the Chair. the availability of additional manpower when necessary. VERNON E. JORDAN Our Reserves-which constitute our MILITARY REGISTRATION current second line of defense-are Mr. BAKER. Mr. President, I wisn to operating well below strength. The Army Mr. BAKER. Mr. President, I com­ add my voice to those of all responsible Reserve units, which supply the bulk of mend the majority leader on his state­ Americans in deploring the senseless and our backup manpower, are particularly ment with respect to registration. I agree tragic shooting of Vernon E. Jordan this with him. I agreed with President Car­ morning in Indiana. It has been my low in numbers. The individual Ready ter when he proposed that we resume privilege to work with Mr. Jordan from Reserves, those who are still serving out registration. I agree that this is not the time to time, and I have come to know a commitment and thus are eligible to resumption of the peacetime draft, nor firsthand the competence of his leader­ be mobilized even though they do not would I support the resumption of the ship, his devotion to the cause of social train with a unit, are at 45 percent of peacetime draft at this time. But I be­ justice, and his effectiveness as a force strength. The Army Selective Reserve is lieve this step, this simple step, is a pru­ of progress and moderation in our na­ at 80 percent of its strength. dent caution in a time of international tional life. Our hope now must be for his The All-Volunteer Forces have prob­ stress and tension, and in anticipation speedy and full recovery and for his re­ lems as well. There are problems with of even worse times which might dis­ turn to an active role in public affairs. recruiting and retention. integrate into a time of peril. While I have no illusions that military registration will solve the low manpower strength of the Reserves and the reten­ BUDGET CONFERENCE REPORT ORDER OF PROCEDURE tion and recruitment problems of the Mr. BAKER. Mr. President, I am dis­ Mr. BAKER. Mr. President, I have no All-Volunteer Forces, I do believe that appointed in President Carter's avowed need for the remainder of my time under it will provide a necessary and important opposition to the Budget Committees' the standing order, unless my friend source of manpower in the event of a conference report. I hope I am not un­ from Delaware needs additional time. I crisis. duly political, and I certainly do not in­ understand he has a special order for this In addition to strengthening our tend to be cynical when I say it, but I morning. preparedness needs, reinstitution of mili­ have the impression the President is try­ Mr. President, does the majority leader tary registration will send a clear mes­ ing to have it both ways. On the one need additional time? sage to our allies-and to our adver­ hand, he is trying to opt for and give the Mr. ROBERT C. BYRD. W111 the Sena­ saries-that we are prepared to backup impression that he is creating a strong tor yield for a unanimous-consent re­ our resolve by strengthening our defense military force in this country; and, on quest? preparedness. A display of American the other hand, he is reserving unto him­ Mr. BAKER. I do. resolve in having our young men regis­ self the political right to criticize the al­ ter with the Selective Service is not leged lack of adequate funding for do­ "empty symbolism," as some critics have mestic programs. THE JOURNAL argued. The steps we take to upgrade I, for one, Mr. President, do not intend our military preparedness will be per­ for President Carter to have it both Mr. ROBERT C. BYRD. Mr. President, ceived as a real and substantive response ways. I intend to proceed as my con­ I ask unanimous consent that the Jour­ to potential and unpredictable interna­ science dictates, as my best judgment nal of the proceedings be approved to tional crises. permits, in deciding what levels of de­ date. At a time when we are asking our fense spending we should provide for in The ACTING PRESIDENT pro tem­ NATO allies to increase their defense ef­ this first budget resolution. I intend to pore. Without objection, it is so ordered. fort to deter an attack which would proceed as humanely and in as sensitive threaten both their and our security, we a way as possible in determining the cannot send a message-which def eat of funding for social programs. ORDER DESIGNATING PERIOD FOR this proposal would do-that we are not Mr. President, I do not believe it is ap­ TRANSACTION OF ROUTINE prepared to do the same. propriate for the President of the United MORNING BUSINESS Our NATO allies are watching this de­ States to propose the very increases in bate over military registration, to see military spending which he now con­ Mr. ROBERT C. BYRD. Mr. President, how determined we are to back this poli­ demns, and, at the next opportunity, to I ask unanimous consent that immedi­ cy of preparedness ·and prevention. west call for a reduction in programs. I think ately following the remarks by Mr. such actions are unfortunately typical of ROTH-I understand he will ask unani­ German Chancellor Helmut Schmidt re­ a Presidential election year. Believe me, mous consent to utilize the time under portedly told an audience during his visit I recognize the symptoms. But I am say­ the orders set for the other Senators­ to Washington earlier this year that he ing now, as free of politics as I know how there be a period for the transaction of views the fate of this military registra­ to say it, that nothing-nothing-will be routine morning business not to exceed tion measure as a crucial sign of our de­ left undone, as far as I am concerned, in 30 minutes and that Senators may speak termination. I hope-and believe-that the preparations for the defense of this therein up to 5 minutes. our determination will not :flag. country; that nothing will be left un­ The ACTING PRESIDENT pro tem­ When the Senate votes on this meas­ done, as far as I am concerned, in the pore. Without objection, it is so ordered. ure, it will send forth a signal; the preparation of the social welfare and the signal we send will either be one of economic well-being of every citizen in strength and determination or of indeci­ this country. And while those two con­ ORDER OF PROCEDURE sion and drift. I urge the Members of siderations are often in con:flict, they Mr. BAKER. Mr. President, might I this body to support this measure that need not, they must not, be a political inquire at this point, in light of the 12604 CONGRESSIONAL RECORD-SENATE May 29, 19BO remark made by the majority leader, with one of the biggest economic chal­ national transactions and we had a great do I have a special order for this morn­ lenges of our history. Our domestic econ­ degree of control over the world econ­ ing? omy is in a state of crisis with infiation omy as a result. The ACTING PRESIDENT pro tem­ rampant, productivity declining and Today, all this has changed. We are pore. Yes, the Senator from Tennessee general recession. Our performance in no longer the independent economic does have a special order for 15 min­ the international sector is deteriorating leaders we used to be and must rely on utes. with astronomical trade deficits and no outside markets to achieve an adequate Mr. BAKER. What other special or­ substantial improvement likely in the level of economic growth as well as ob­ near future. American prestige and in­ tain necessary supplies such as oil. The ders are there? fiuence in the world appears lower than The ACTING PRESIDENT pro tem­ U.S. economy has matured to the point it has ever been in this century as a di­ of much slower growth; whereas much pore. A special order for the Senator rect result of these economic problems. from Alaska rograms is the exporters have increasingly made use of exports to the EEC and Ja~an for example, Department's lack of control over export DISC provisions since 1971, over 60 percent by as much as 1,000 percent (current U.S. policy. Export activities are sub.feet to un­ of total DISC benefits have gone to pa.rent per capita beef consumption ls nearly 18 coordinated and sometimes conflicting de­ corporations with more that 250 million in times greater than beef consumption in Ja­ mands from different ~overnment agencies. assets. A Treasury Department analysis of pan). In the fact of comoetition from countries the program concluded the legal and ac­ The United States faces increased com­ like Japan and Germany which achieve con­ counting costs of complying with the com­ petition in most foreign markets and prod­ siderable coordination in these matters. the plex DISC legislation inhibited small com­ ucts in the next decade, and should give inability of the U.S. t o oromote coooeratlve pany participation in the tax benefits. Sub­ increasing attention to measures which could export expansion efforts and synchronize ex­ sequent reductions in the program, and the reduce the production costs of U.S. agricul­ port policies is a serious disadvantage. possibility of its recission have further hin­ tural products. The United States should Legislative efforts to enable U.S. exnorters dered potential small firm users. also remove self-imposed export barriers, and to compete with foreign banks and cartels in Small firms are similarly 111-equipped to may need to establish trading companies in overseas markets date back over sixty years. deal. with the bureaucratic requirements of the agricultural area which can compete with The Webb Pomerene Act (1918) exempts the the export license application process or to the wheat boards and grain boards of for­ formation and oneratlon of Export Trade whether attendant uncertainties and de­ eign competitors or empower the CCC to ne­ Associations from some prohibitions of the lays. They require special guidance in cop­ gotiate with nonmarket countries. Larger Sherman and Clayton Acts, but its provisions ing with other legislative and administrative grain reserves may also be needed to en­ have been singularly under-utilized. Only 28 problems, as well. Corporations with vast hance U.S. reliability as a supolier. But the such Associat ions exist today, accounting for experience abroad and large legal staffs may principal necessity is a reduction of foreign less than 3 % of U.S. exports. successfully avoid entanglement with anti­ barriers to U.S. agricultural exports. The princi~al reason for the Act's failure ls boycott, corrupt practices, human rights and its vagueness. Because no definitive standards environmental protection regulations which Footnotes at end of article. are prescribed for permissible activities. Webb intimidate or ensnare smaller firms. Inex- May 29, 1980 CONGRESSIONAL RECORD-SENATE 12613 perienced firms, whether large or small, often disincentives. Not only do they provide standards, customs procedures, border tax perceive these barriers a.s insurmountable. substantial direct funding for commercially adjustments, quantitative restrictions and Despite recent efforts of the Department of oriented R&D, they allow firms to pool re­ direct or indirect export subsidies. Commerce to focus its support activities on sources in cooperative research efforts. U.S. Government procurement is relatively small and inexperienced exporters. foreign anti-trust laws, which by and large prohibit open in Germany and the U.S .• but in most trade remains the province of the largest such activity, may adversely affect our inter­ foreign countries domestic suppliers are U.S. corporations. Significant export expan­ national competitive position. Collaborative given significant preferences. In many na­ sion requires involving a much broader seg­ efforts by U.S. firms may be more than a · tions government procurement practices are ment of the American bµsiness community good idea; they may be indispensable in or­ more a matter of tradition than policy-buy­ in exporting, and will depend upon a more der to reverse declining U.S. export compet­ ing foreign made goods is viewed as disloyal. consistent and supportive U.S. Government itiveness. Japan concentrates most trade in the export policy. Export of high technology final products hands of a few trading companies. Intimate CHAPTER 7 .-U.S. HIGH TECHNOLOGY EXPORTS 16 should be encouraged because of the im­ business/ government relations allow !or un­ written import-reducing policy actions. In Technology is a key factor in U.S. exports mediate and long-term positive impacts on employment and the balance of payments. the developing countries "discretionary" im­ and has contributed strongly to U.S. export port licensing is widely used and abused. In growth. Technology-intensive products, as Exports of R&D-intensive equipment used in the production of final products, when the the non-market economies, state trading measured by R&D input. account for ap­ companies select imports as well as exports proximately 40 percent of U .s. exports. By manufacturing know-how already exists in other countries, should also be encouraged. without necessarily basing their actions on contrast, R&D-intensive exports comprise relative prices. only 28 percent of the total exports of Ger­ A central U.S. Government department re­ sponsible for export expansion, domestic in­ The trade barriers presented by product many, Japan, France and the U.K. Our con­ standards and regulations are similarly dim­ tinued export competitiveness is clearly tied dustrial growth and maintenance of our long-term innovative advantage might pro­ cult to deal with. Inspection for health cer­ to our comparative advantage in technologi­ tificates, for example, may be required ac­ cal innovation and the production of high vide the mix of expertise, fiexibillty, control and perspective necessary to move exports cording to a given country's laws during the technology goods. production process-amounting to a total The development of advanced technology rapidly when desirable and restrain them sensibly when it is in our long-term inter­ barrier to trade. is dependent upon high levels of government Border tax adjustments are considered by and private R&D investment. However, gov­ est to do so. The United States Government should at minimum seek to establish a basic our electronics indu·stry to be "the most per­ ernment support has dropped over the past vasive and strongest of trade barriers erected 15 years, and private sector expenditure has framework within which business can move 21 quickly and confidently. Firms must be able against (its) products. According to testi­ not increased sumciently to offset this de­ mony, the problem is not being addressed in cline. Moreover, because the orientation of to plan over the long-term, knowing that those elements of the cost picture deter­ the current MTN negotiations. private sector R&D often differs from that It will take vigilance and strong bargain­ of government funded research, these cannot mined by government will not increase dur­ ing the development stages of projects. As ing just to maintain our world export be viewed as interchangeable sources of sup­ potential in the face of these subtle port. Whereas private R&D tends to be mar­ the situation now stands, we are losing our competitive position in high technology and sophisticated barriers. Remedies out­ ket-oriented with a short to medium-term side of the MTN are dimcult to perceive. payoff in view. only the government is a trade, and uncoordinated Federal Govern­ ment policies make it diflcult to remedy the One witness could only suggest that 2~ Con­ significant investor in long term, basic re­ situation. gressmen injividually be firmer in talking to search. foreign visitors. The U.S. must not lose sight Spending by both the Federal government CHAPTER 8.-FOREIGN BARRIERS TO U.S. of the basic streng.th of its competitors-a EXPORTS and business on R&D performed within in­ RiSing protectionism has over the last more cohesive attitude towards exports with dustry is most closely related to export com­ close government/ business cooperation. Am­ petitiveness. Although industry funding of three years alone caused an estimated $50 billion decline from world trade potential.18 bascador Wolff suggested should the negotia­ this "industrial" R&D bas averaged a 3.8 per­ The United States' share of this loss has been tions fail, "we as negotiators have no reason cent annual gain in real terms since 1966, disproportionately high; according to a re­ to oppose retaliatory procurement policies, the government's share has declined an aver­ an expansion of Buy America domestically." 2a cent Department of Labor study over 424,000 age 5.5 percent per year, and overall levels Protectionist measures tie resources to less jobs and $7.5 billion in export sales have have barely kept up with inflation. Research been blocked by foreign tariff barriers on productive uses, restrict growth of productive performed by industry for government agen­ 9 sectors, and entail high costs for the con­ cies such as NASA and DoD bas traditionally non-agricultural products.1 Put another sumer in the form of reduced choices and been more "basic", yet it has led to some way, elimination of these tariffs could reduce increased prices. They additionally tend to spectacular commercial applications--the unemployment by 12.5 percent and increase transmit recession, divide the word politi­ exports to our major trading partners by 21 cally and contribute to general stagnation. wide-bodied jet and integrated circuit tech­ percent. In Ambassador Wolff's words " nology are just two such spinoffs. The potential gains from freer world trade codes of behavior that will accord to ·th~ are immense. and far outweigh the hardship U.S. investment in R&D as a percentage of U.S. the same degree of openness in foreign GNP has declined 25 percent over the last 15 and dislocation ca.used by particular domestic yea.rs,17 while foreign competitors have stead­ markets that we provide in the U.S. markets industries and geographic areas. However, ily increased their R&D levels. The U.S. still would clearly yield major benefits for U.S. unless adequate adjustment assistance is exports." 20 provided, formidable domestic political pres­ leads, of course, in total R&D outlays. but Tariff barriers appear to be used strate­ Japanese and German support for R&D as a sures can block trade liberalization efforts. percentage of GNP has equalled that of the gically by foreign competitors to develop de­ . The success of the MTN package may de­ sired new industries rather than to protect pend upon a stronger U.S. bargaining posi­ U.S. Moreover, foreign R&D tends to be inemcient old industries. For example, Ja­ strongly oriented towards the development tion when faced with foreign violations of pan has high tariffs on color film and com­ the new rules of conduct. A vast array of U.S. of commercially marketable, and particularly puters. In the case of color film-yea.rs of exportable, products. Our high-technology export support measures, either in effect or exports are still a strong factor in our over­ protection have enabled Japan to grow into available if needed, would strengthen the Kodak's strongest competitor. In the com­ all export performance. but our positive bal­ U.S. negotiating position. Instead of retali­ puter field, high tariff walls have been com­ ating with trade restrictions which raise im­ ance in such goods is diminishing. Statistical bined with large-scale government funding studies which show a significant correlation port costs and hurt American consumers, the for R&D and "buy national" procurement to U.S. could be in a position to respond with between R&D spending and export levels oor­ foster the development of an indigenous tend poorly for future U.S. exports if R&D export incentives which expand trade and Japanese computer industry, now ready to create U.S. jobs without inflation. spending in this country continues its rela­ penetrate and perhaps ultimately sweep tive decline. CHAPI'ER 9.-RECOMMENDATIONS world markets as the Japanese consumer The United States is awakening slowly to There ls evidence that private sector R&D electronics industry already has. ls inhibited by unfavorable tax provisions the fact that U.S. competitiveness in world and government regulatory actions. R&D in­ Despite progress in "tariff liberalization" markets is slipping. Not only Japan and the vestment--especially in basic research-is a during the Kennedy Round, the problem of Western European countries, but also the high risk venture and a function of antici­ non-tariff barriers, which is now perceived as developing countries of Latin America, Asia pated returns balanced against costs. If va­ more serious than tariff barriers for many and Africa, are becoming strong competi­ rious legislative constraints (pollution con­ U.S. exports, did not receive sumcient atten­ tors for U.S. producers across the full range trols, etc.) reduce the likelihood of payoff tion. An extraordinary variety of non-tariff of industrial and agricultural products and and if tax incentives are as good or better for barriers exist. Some are intentional, some serTices. other investments (such as advertising) unintentional and many impossible to defin­ Floating exchange rates alone cannot re­ businessmen will invest less in R&D because itively categorize. Bourbon (from grain) is store U.S. trade competitiveness. Nor can there are more attractive alternatives. considered injurious to health in France and the United States afford to permit the inter­ Foreign governments, recognizing the im­ therefore cannot be advertised, while Cognac national value of the dollar to erode indefi­ portance of basic research, seek to minimize (from grapes) ls healthy and can be. The nitely; the cost in domestic intlation, capi­ most common nontariff barriers include gov­ tal outnow, OPEC oil price increases and Footnotes at end of article. ernment procurement policies, regulations, declining international confidence in the 12614 CONGRESSIONAL RECORD-SENATE May 29, 1980 United States would be intolerable. As long could restrain trade within the United States. through its District omces and State and as the dollar is the sole reserve currency and The Webb-Pomerene Act of 1918. authorized local trade and economic development omces its value is uncertain, levels o! international the formation of export tradt- associations so to reach companies with export potential trade wm be diminished. A strong national long as they did not reduce competition but lacking export experience. Both at home export policy is needed to strengthen the within the United States. The purpose of and overstas Commerce should concentrate dollar as well as reduce the trade deficit. Webb-Pomerene was to enable U.S. exporters its efforts on new exporters and new, rapidly The Subcommittee recommends the !ol­ to compete more effectively age.inst foreign growing markets. · lowing actions: ( 1) organize the Executive cartels. However, the vague wording of the Business has a responslblllty to provide for branch to conduct a co-ordinated, !orce!ul Act and narrow interpretations by the Justice self-education, as well. The professional bus­ U.S. export policy; (2) facmtate organization Department, the Federal Trade Commission, iness associates have given little attention by U.S. industry and agriculture to expand and U.S. Courts have discouraged formation to export education for their members. Ex­ exports; (3) redirect and expand existing of export trade associations. perienced industrial firms and banks should export promotion programs; (4) provide The Webb-Pomerene Act could be revised conduct programs through their subsidiaries emclent tax and non-tax incentives for re­ to expand the scope of permissible activities and correspondent banks to deliver export­ search and development and innovation, as by export trade associations; services such ing assistance to firms outside the major well as exports, by U.S. industry and agri­ as engineering, construction, insurance and cities. If relations between Government and culture; (5) expand export financing to finance, could be included. The Justice De­ business were more cooperative, instead of meet foreign competition; (6) negotiate re­ partment could be required to issue clear adversarial, the Commerce Departm... u.t, Ex­ ductions in foreign barriers to U.S. exports; guidelines and offer advisory opinions on in­ port-Import Bank, Treasury DepartllNnt and and (7) reduce U.S. Government restric­ terpretation of the Act. The Commerce De­ Federal Reserve Board would join with the tions and disincentives imposed on U.S. partment could be directed to assist and en­ business associations in fostering and con­ exports. courage the formation of export trade associ­ ducting an export expansion drive. ations. U.S. exporters could be explicitly Executive branch organization to support permitted to form consortia to bid on major Providing efficient incentives for R. & D. exports foreign projects abroad, as their foreign com­ innovation, and exports The United States alone among the major petitors are permitted to do. Tax incentives should be used: to stimulate trading countries has no single government But Webb-Pomerene may be too weak a higher levels of research and development agency with authority and responslb111ty to reed on which to rely reliance for organizing than would otherwise occur in our "matur­ advance its trading interests. Other coun­ U.S. exporters. The United States needs trad­ ing" economy, and to encourage producers tries rely upon trade ministries to help ing companies able to organize the exporting to make the extra effort required to enter their exporters investigate markets abroad, efforts of small and inexperienced U.S. firms, foreign markets. Tax incentives may also be develop new export products, coordinate ex­ to conduct marketing on a global basis and justifiable to enable U.S. producers to match port bidding, arrange subsidized financing, absorb exchange rate fluctuations, just as European and Japanese competition ln third insurance and shipping and bargain with Japanese and Korean trading companies do. country markets as long as competing coun­ foreign governments to assure market access. Anti-trust law should be modified as neces­ tries continue to provide significant tax In­ Two approaches are possible to organizing sary to permit formation of such trading centives to their exporters. the Federal Government to support exports. companies. Informed interpretation of anti­ The United States has three tax policies A new Department of Trade incorporating trust law will not sumce--most firms will not which encourage exports: DISC, deferral on most trade-related government activities take even a small risk of incurring criminal foreign corporate earnings, and Section 911 could be established, or an omce of Inter­ penalties, nor should they. Grey areas in tax relief for certain personal income earned national Trade could be established in the antt-trust law are minefields for the unwary; abroad. D"!SC may not be a particularly em­ White House with authority to orchestrate clearly demarcated boundaries are needed. clent incentive but exporters believe DISC the· trade-related actions of all government Export trading companies should be free ls essential to profitable exporting. Removal agencies. to market goods and services around the of DISC without providing a superior tax Creation of a Department of Trade need globe and their profits should be eligible for alternative could lead to a large reduction in not entail additional Cabinet posts nor addi­ tax deferral, that is, not be taxed until dis­ U.S. exports. Accordingly, DISC should be re­ tional expenditures. The Omce of Special tributed in the United States. Only with such tained until another, more emctent tax in­ Trade Representative, a Cabinet omce, could freedom of maneuver can U.S. producers take centive can be put Into effect. be merged with the trade !unctions of the on the Jananese trading companies and bid­ The export benefits of DISC could be ex­ Departments of Agriculture. Commerce, State ding consortia organized by European gov­ panded in two ways. Smaller companies not and Treasury to create a new department ernments. The United States should ·con­ directly involved in exporting but supplying which could absorb the International Trade tinue international efforts to reach agree­ parts and components used in exports can Commission and Export-Impoi·t Bank as well. ments restricting exoort cartels. but U.S. set up DISCs to sell to the exporting firms. An alternative would be to expand upon exporters and the U.S. economy can no In this way the benefits can trickle down to the STR's omce, giving it authority not only longer afford to bear the full cost of foreign smaller businesses. Use of DISC ln this way over trade negotiations, but also to coordi­ recalcitrance on anti-trust practice. ls permissible at present, but has received nate export promotion and trade disputes. Redirecting and. expanding U.S. export little encouragement from the Government. The unhappy experience of the Council on promotion programs Small firms may be unaware of this oppor­ International Economic Polley may have tunity and may also be discouraged by the unduly discouraged consideration of this al­ The Commerce Department has recognized that its export promotion efforts need to be requirement that DISCs be formally incor­ ternative. What CIEP lacked in statutory porated. The incorporation requirement authority and support from the President are targeted more toward new-to-export and new-to-market firms.24 Smaller, less experi­ seems a needless expense for firms to incur. not defects inherent in the concept of a Second, the money fl.owing into DISCs White House omce to manage international enced firms would be major beneficiaries o! lmoroved export promotion services because could be recycled to finance additional ex­ trade policy. ports lf it could be re-lent to other firms or The International Finance Subcommittee such firms have less access to private sector exporting information services and less op­ foreign purchasers. The Export-Tmport Bank has not held hearings on possible reform of could use its resources ln parallel with DISC executive branch organization to support portunity to travel abroad and to meet po­ tential !orelJ?n buyers. Commerce has de­ funds to multiply the export punch of the exports, but its export policy hearings do DISC Incentive. point clearly to the need for U.S. exporters veloped a strategy for redirecting Its services to better meet such objectives, but funding DISC violates GATT i:utes and may come to receive more centrally co-ordinated U.S. under further pressure as a result of the Government support. It would appear par­ levels are inadequate at present to permit ticularly u!'e!ul to merge the system of com­ significant improvement in exoort promotion subsidies code being drafted ln the Tokyo mercial omcers provided by the Department activities. Congress should appropriate sum­ Round. If DISC ls barred, Congress should of·State with the system of export promotion clent funds to the Commerce Denartment study alternatives, including a value-added operated by the Department of Commerce. A for fiscal year 1980 to enable the Depart.ment tax with rebates for exports. The VAT system to carry out an expanded and reoriented ex­ ls widely used a.broad, ls consistent with career service in international trade should port promotion program. Commerce should GATT rules and could be used to fund a por­ be established even if no other reorganiza­ give greater attention to exports of services. tion of social security benefits. VAT ls often tion steps are taken. International trade which promise to be a growing portion of criticized as being inflationary as well as re­ specialists of the highest caliber are more U.S. exports. U.S. service industries have spe­ gressive in impact; however, these effects likely to be attracted and retained by a career cial needs by way of exports suoport, and could be mitigated if VAT were adopted in service which offers rotating assignments Commerce should be organized to meet those conjunction with other tax changes. Many abroad, in Washington, and in U.S. field needs. Commerce should provide loans to foreign countries have adopted VAT systems omces. small firms and export associations to cover within the past two decades and their ex­ Organizing U.S. industry and agriculture to initial marketing costs in new export mar­ perience should help Congress determine export kets and for new-to-export comoanles. Re­ what costs and ·benefits VAT would entail United States policy has long been incon­ payment would be based upon export sales. for the United States. sistent toward organizing U.S. industry and The Commerce De,.,artment should work Another alternative to DISC would be to agriculture to meet competition in foreign more effectively within the United States defer taxation of export sales abroad attrib­ markets. U.S. antitrust law applies beyond uted to a.n export sales subsidiary. At present U.S. borders to prevent combinations which Footnotes at end of article. the United States attempts to restrict use of May 29, 1980 CONGRESSIONAL RECORD-SENATE 12615 such "tax haven" arrangements by requiring Finally, the United States must awaken to Congress should make Eximbank and CCC such income to be reported as current earn­ the fa.ct that technology transfer is no support available, subject to periodic review, ings. The U.S. practice reduces the export longer a one-way street. In an age where tc all countries with which it is U.S. policy incentive effect of the general deferral of two-thirds of all research and development to encourage trade. Large potential markets taxation on income earned abroad, contrary takes place outside the United States, our for U.S. goods and services are being con­ to the practice of other governments. To be channels for acquiring foreign technologies ceded to foreign competitors because Exim­ most effective, U.S. policy should encourage and scientific information a.re woefully in­ bank and CCC cannot assist U.S. exports to the formation and use of export sales sub­ adequate. The United States has, relatively, certain countries. sidiaries by consortia of U.S. firms. far fewer science attaches abroad than do Another area of growing competitiveness Section 911 of the Internal Revenue Act European countries, Japan and the U.S.S.R. is the provision of low-interest, long-term provides exemption for some forms of per­ Moreover, the activities of U.S. science at­ loans to poorer developing countries for sonal income and expenses by U.S. citizens taches are largely oriented to the adminis­ capital goods imports. Except in rare in­ working abroad. Favorable tax treatment is tration of science agreements rather than stances, Eximbank cannot afford to match an important export incentive in the engi­ the search for foreign-developed advanced foreign credits to developing countries which neering and construction industries, which technologies. The links between science at­ combine concessional development support in turn stimulate additional U.S. goods ex­ taches and U.S. firms opera.ting abroad are with export financing, so-called "mixed ports. The effect of Section 911 on U.S. ex­ weak, where they could be immensely valu­ credit.s." In addition, many developing coun­ ports requires careful examination and the able. There is little sense of the potential tries would like to purchase goods and serv­ tax ince_ tive should not be reduced prema­ commercial gains from encouraging and as­ ices from the U.S., but cannot meet the turely. sisting U.S. firms to obtain foreign technolo­ Bank's normal credit standards. Over the long term, the most significant gies. Bolstering the commercial awareness of To meet this dual challenge, Congress way to promote exports is to improve U.S. science attaches and strengthening the tech­ should authorize a new Bank program to industrial competitiveness by encouraging nological awareness of commercial attaches provide export financing for sales to coun­ innovation and productivity growth. The im­ in order to improve the two-way flow of tech­ tries with per capita income below $1,000. portant circularity of causation between nology are far more promising strategies Financing could be provided on normal Bank trade and domestic industrial growth should than trying to limit the outflow of American terms; however, the Bank could offer such be more widely recognized, and U.S. indus­ technology. terms as necessary to match foreign com­ trial and export policies should 1'e corre­ petition. An initial authorization and appro­ spondingly integrated. The President's an­ Expanding export financing priation of $500 million in capital should be nual Economic Report should contain a sec­ The Export-Import Bank and the Com­ provided for the program. tion specifically reviewing developments in modity Credit Corporation are the primary Private financing of U.S. exports will be capital formation and research and develop­ U.S. government institutions providing fi­ assisted by changes - incorporated in the ment, with evaluation of the export impli­ nancing for U.S. manufactured and agricul­ International Banking Act of 1978 which cation of such developments. tural commodity exports respectively. Both liberalize usage of Edge Act Corporations In particular, the pivotal importance of face political as well as economic constraints for export financing. The Federal Reserve innovative small businesses and research­ on funds and the markets in which they can Board should promptly issue revised regula­ intensive industries should be acknowledged. operate--constraints not faced by corre­ tions putting the new Edge provisions into Tax policies and securities regulations which sponding institutions in competing coun­ effect, and the Commerce Department to­ have seriously affected the rate of formation tries. gether with the Treasury Department and of new ventures need reconsideration, and Eximbank is required to obtain approval in the Federal Reserve Board should launch a incentives used in a number of foreign coun­ an appropriations Act each year for its level program to educate U.S. businesses in the tries to stimulate R. & D. should be investi­ of direct lending. The Office of Management formation and use of Edge corporations to gated. and Budget has tended to regard Eximbank finance exports. For example, several Western countries, as a drain on the Federal budget despite the Negotiating reductions in foreign barriers to including Canada and West Germany, allow Bank's essential role in expanding U.S. ex-_ U.S. exports ports, and thereby, profits, employment and immediate write-off of research-related cap­ The export implications of the trade agree­ ital investments. The West Germans also per­ Federal tax revenue. The budget proposed for fiscal year 1980 would permit the Bank to ments negotiated at Geneva should be re­ mit R. & D. venture companies to depreciate viewed thoroughly by the Congress. The Sub­ up to three times the original investment in provide only one-third of the direct loans for U.S. exports expected to be requested from committee on International Finance will the venture before being subject to corporate hold hearings on the agreements later this income taxation. the Bank. Because Bank support is the de­ termining fa.ctor in two-thirds of the export year. An investment tax credit for research and sales it supports, and because the value of Many of the non-tariff barriers which development expenditures on "intangibles" the exports supported averages twice the th wart U.S. exports will not be removed could stimulate higher levels of R. & D. value of the Bank's direct loans, as much as automatically by adoption of the trade Another possibllity would be to increase the 10 to 15 billion dollars in U.S. exports may agreements and the accompanying codes of existing investment tax credit for capital be foregone due to the ceiling imposed on behavior. A continuing effort to compel im­ expenditures that are research-related. Al­ Fximbank activity in fiscal year 1980 by plementation of the codes will be required, ternative incentives could involve accelerated OMB.23 Congress should increase Eximbank's and many disputes will arise which can only depreciation for capital equipment embody­ direct loan authority for fiscal year 1980 to be resolved through bilateral negotiation. ing new technology or capital with research 12 billion dollars from the 4 billion level ap­ Congress should give particular attention and development uses. proved by OMB. Congress should also review to the mechanisms for implementing the Industrial innovation ls hll.mpered by bar­ the budgetary treatment of the Bank to de­ trade agreements and insuring compliance riers to cooperative research imposed by the termine whether such treatment accurately with the codes. government in the name of competition. The reflects the fiscal impact of Bank activities. Agriculture is the sector which suffers extent to which current antitrust restric­ Eximbank policies should also be changed most from foreign non-tariff barriers and tions and Justice Department policies in­ to increase the support it can provide for has the greatest long-term promise for U.S. hibit industry from collaborating to make U.S. exports. The Bank should end its prac­ export growth. The United States Govern­ optimal use of R. & D. resources should be tice of returning an annual "dividend" to ment should increase its pressure on foreign reassessed. Indeed, it ls time to move beyond the U.S. Treasury. No public purpose is served governments to admit U.S. agricultural prod­ the traditional adversarial government/in­ by shuffling U.S. Government funds from one ucts, if necessary, by linking U.S. action on dustry relationship and examine the possible account to the other. Eximbank need not manufactured goods imports to foreign gains from cooperative research institutes, perpetuate a fictional financial independ­ actions affecting U.S. agricultural exports. funded by business and government, with ence. All the Bank "profits" should be added Congress should re-examine agricultural university participation. Such three-way to Bank reserves available to meet possible policy to consider replacing a system of price cooperation has been successful in basic re­ default by foreign purchasers. supports and set-asides which pays farmers search efforts in the past; work in a broader Eximbank should also consider adopting not to produce with a system of target prices range of areas, including the development some of the export-supporting programs of­ and cash payments which encourages food of commercial technologies, should be ex­ fered by foreign official credit agencies: per­ production, holds down food prices, and plored. formance bond guarantees, financing for pre­ stimulates agricultural exports. Meat is the most efficient means for the United States to More effective commercialization of exist­ feasibility studies and increased local and foreign content financing. The Bank should provide protein to the rest of the world. ing federal research would also be beneficial Grain-fed meat exports would benefit from for exports. Greater industry involvement in abandon its 5 million dollar threshold for direct credits and financial guarantees, be­ lower feed costs under a target-price system, the selection and management of govern­ and so would U.S. consumers. ment funded projects could help insure that cause the threshold limits access to the Bank by small exporters. The Bank should con­ The Commodity Credit Corporation should the results are commercially viable. Restric­ be authorized and directed to serve as U.S. tive agency patent policies, conflict of in­ f:ider joint export financing activities to­ gether with counterpart institutions in other agent in grain sales to non-market econ­ terest rules and other impediments to inno­ omies. CCC could match the deals arranged vators working on federal contracts demand exporting countries. reconsideration. by the Canadian and Australian wheat Footnotes at end of article. boards. CXXVI--794-Part 10 12616 CONGRESSIONAL RECORD-SENATE May 29, 1980 When the Tokyo Round of trade negotia­ national efforts to encourage environmental s See Export Policy hearings, Pa.rt 6, pp. tions is finally concluded it will be time for protection, to the maximum extent feasible 140-187. another. The Tokyo Round negotiations open rather than imposing unilateral environmen­ 9 Export Stimulation Programs in the Major the doors to a series of new negotiations. Non­ tal reviews. The President should revise his Industrial Countries, p. 40. GATT members have trade barriers, too, order to authorize U.S. Government review l e See Export Policy hearings, Part 4, p. 75. which should be tackled in multilateral ne­ of the environmental effect in a. foreign Table submitted by the Department of the gotiations. Special trade facilitation commit­ COUD:try of U.S. exports only upon the request Treasury. tees may be needed to clear trade complaints of the foreign government, and to require u Pa.rt 5 of the Subcommittee's Ex'J>Of"t arising under the proposed GATT codes. U.S. consideration of foreign availab111ty and the Policy hearings contains the record of a hear­ export incentives have a vital role both in reputation of the U.S. as a supplier before ing on "Agricultural Export Policies" held on helping U.S. industry and agriculture to ful­ proceeding with any environmental review March 30, 1978 in Chica.go, Illinois. Additional fill the promise of the MTN package, and in pursua.n:t to the order. testimony and statements on agricultural ex­ insuring that other countries keep their part International finance and U.S. exports ports are contained in: pt. 2, pp. 3-38, 193- 216; pt. 3, pp. 244-250; pt. 8, pp. 1-28, 42-43, of the promise. Competitiveness will avail the United 150-175. Congress should adopt a package of export­ States little if the world is insolvent. The stimulating measures to accompany the u See Export Policy hea.rings, Part l, p. 6. problem of financing economic growth ls See Export Policy hea.rtngs, pt. 8, p. 26. trade agreements. United States producers throughout the world is beyon:I income would be exempt from this Act waiver, and getting it adopted, and The PRESIDING OFFICER. The re­ provision. That statement is not con­ then proceeding to the conference report port will be stated. sistent with the conference report which on Social Security Disability Amend­ The assistant legislative clerk read as provides that all income of the sponsor ments of 1980. follows: will be counted. This would include both The minority leader is here. I, there­ The committee of conference on the dis­ 1'1eaera1 and otate supplementary pay­ fore, ask unanimous consent that the agreeing votes of the two Houses on the ments under the SSI program. This is ex­ Senate proceed to the consideration of amendments of the Senate to the b111 (H.R. plained in more detail in the attached Senate Resolution 431, which is at the 3236) to amend title II of the Social Secu­ summary of the bill. rity Act to provide better work incentives This conference agreement represents desk. and improved accountability in the disabil­ Mr. BAKER. Mr. President, reserving ity insurance program, and for other pur­ the type of careful review of existing pro­ the right to object-and I will not ob­ poses, having met, after full and free con­ grams which is needed and demanded to­ ject-the majority leader was kind ference, have a.greed to recommend and do day. It will result in a substantial reduc­ enough to confer with me on this sub­ recommend to their respective Houses this tion in program costs. But it will also ject. I was able to inform him we have report, signed by all of the conferees. substantially improve the program. Over cleared for action on our calendar the The PRESIDING OFFICER. Without the next 5 years, H.R. 3236 is estimated Budget Act waiver which will support objection, the Eenate will proceed to the by the Congressional Budget omce to re­ consideration of the conference report consideration of the conference report. duce Federal expenditures by some $2.6 which, of course, is privileged matter in

months. An individual who ceases to be a Under this program, a total of $18 million tary of Health and Human Services is to beneficiary because he returns to work loses in Federal funds will be available over the prescribe regulations to limit allowable de­ both cash benefits and Medicare entitle­ period from September l, 1981 through Sep­ ductions to those which are necessary for ment. If he subsequently finds it necessary tember 30, 1984 to provide 75 percent Federal employment and to establish reasonable lim­ to reapply for disability insurance benefits, matching for expenditures related to pro­ its on the a.mounts deductible. The deduc­ he must again wait 24 months before his viding medical and social services under ap­ tion will be allowed in determining whether Medicare coverage is resumed. H.R. 3236 will proved State plans to qualified individuals. the individual is able to engage in substan­ eliminate this second 24-month period for Funding will be provided at a rate of $6 tial gainful activity for purposes of the DI persons who become reentitled to disability million per year for each of the three years, and SSI programs and in determining the benefits within 5 years after the end of a allocated among the States in proportion to benefit amount for an SSI recipient (but not previous period of entitlement (within 7 their adult SSI disabi11ty populations. Un­ in determining whether an SSI applicant years in the case of disabled widows or used funds will lbe carried forward from year meets the income eligibility requirements of widowers and disabled children) . This to year and provision is made for reallocating that program). The provision is effective six change will become effective 6 months after funds to t.he extent that some States decide months after enactment. the date of enactment. not to participate in the program. Trial work period and reentitiement to Extension of Medicare for additional 36 States will have great flexibility under this benefits.-Under both the SSI and DI pro­ months.-In addition to eliminating the re­ p1lot program to establish the criteria for grams, an individual who continues to suffer quirement for a second waiting period, H.R. determining which individuals fall within from a. severe medical disability and to meet 3236 will allow Medicare coverage to con­ the scope of eligibility and for establishing other eligibility requirements is allowed to engage in employment for up to 9 months tinue for ~ total of 36 months after an in­ the procedures for determining eligibUity and dividual ceases to receive cash benefits be­ providing services. Inasmuch as the eligible without losing eligibility because of the fact cause he has returned to work. This change population consists of individuals who clear­ that he has regained the abllity to work. At will be etrective for disabled workers whose ly would not meet the basic definition of disa­ the end of this 9-month trial work period, if disabilities have not been determined to have bility for existing-law programs, that is, in­ an individual is continuing to engage in sub­ ceased prior to the sixth month after enact­ ability to engage in substantial gainful ac­ stantial gainful activity, benefits are paid for ment. tivity, it would be inappropriate to involve three additional months and then are termi­ Benefits for individuals who engage in em­ the Staite disabiUty determination services nated. H.R. 3236 wm provide for continuing ployment activity.-H.R. 3236 will establish which make the disability findings for the technical eligibility for benefits for 15 months a three-year work incentive demonstration DI and SSI programs. Accordingly, H.R. 3236 after the end of the 9-montJh trial work pe­ program to examine the desirability and prohibits the use of those agencies unless riod. Except for the three-months allowed feasibility of providing certain benefits and there is no other way in which the program under present law, no benefits will be pa.id services to persons with severe handicaps can be operated. Inasmuch as all States have during that additional 15 month period, if who would not be considered disabled under a.gencies, such as the State Departments of the individual in fact has earnings above existing programs because they are able to Vocational Rehabilitation, which are design­ subst.ential gainful activity limits. However, engage in substantial work activity despite ed to deal with the needs of handicapped if the individual ceases to work during that their medical impairments. Under present individuals, there do not now appear to be period, he will a.gain start receiving benefits law an individual is ineligible for disability any circumstances in which the Secretary without having to reapply. The provision is benefits if he has the capacity to perform of Health and Human services would find it effective six months after enactment. any substantial gainful activity (SGA). Reg­ necessary to authorize the use of the State Administration by State agencies.-H.R. ulations establish a dollar amount of earn­ 'dlisa.bility determination services for this 3236 will revise the statutory basis for the ings to define the SGA limit. Currently this program. The provisions of H.R. 3236, more­ arrangements by which State disabllity de­ is $300 a month. over, do not envision that participants would termination services undertake to make find­ One part of the demonstration approach in be referred for hypothetical benefit deter­ ings of disability for purposes of the Fed­ H.R. 3236 would apply to individuals who minations under existing law programs for eral programs of SSI and DI. Under the bill, initially have qualified for Supplemental Se­ which they appear clearly ineligible because these findings will be ma.de by such State curity Income (SSI) disability benefits under of their level of earnings. The Secretary of agencies in accord with regulations or other existing law, but who regain the ability to Heal th and Human Services is directed by written guidelines issued by the Secretary of engage in employment to the extent that H.R. 3236 to provide a report on the opera­ Health and Human Services pursuant to law. they would no longer be eligible for benefits. tions and results of this pilot program by Agreements may be terminated upon written H.R. 3236 will allow such individuals to con­ Octo'.:ler l , 1983. notice by the State or upon a. finding by the tinue in a special benefit status as though Employment in sheltered workshops.-H.R. Secretary that the State is failing to make they were still disabled until their income 3236 modifies the treatment of remuneration disability determinations in accordance with rises to the point at which benefits would be paid to individuals who work in sheltered the regulations. In either case, the change reduced to zero. An individual who initially workshops so as to make it eligible for the from State to Federal administration would qualified for SSI disability benefits under earned income disregard provisions of the take place only after a period of at lea.st 180 existing-law rules will also retain eligibility SSI program. This change will be effective days. The provision is effective twelve months !or medicaid and social services even after as of October 1980. after enactment. his earnings raise his income above this ben­ Deeming of parents' income to disabled or Protection of State employees.-In the efit breakeven point so long as he has not blind children.-H.R. 3236 will modify the event it becomes necessary for the Federal medically recovered and so long as the Sec­ SST rules related to the deeming of parents' government to assume the disabi11ty deter­ retary of Health and Human Services deter­ income to eligible children so that deeming mination function from a. State, H.R. 3236 mines (1) that loss of medicaid or social will cease when the child rea · ~he.s af;e 18, so wlll require that preference in employment services would seriously inhibit his abiUty to that deeming will not apply in the case of be given to qualified State agency employees continue in employment and (2) that his children age 18-21 who are in school. The (other than the administrator or deputy or earnings have not reached a level equivalent provision will be effective as of October 1980 assistant administrator of tlle agency) and to the cash and other benefits which wou'Jd (but will not apply to children who a.re that the Secretary of Heal th and Human be available in the absence of those earn­ then age 18 or over 1! they would be adversely Services defer assumption of the State agency ings. This program will be in effect for a affected) . functions until the Secretary of Labor deter­ three-year period starting January 1, 1981. Termination of benefits for 'Persons under­ mines that fair and equitable arrangements The Secretary of Health and Human Services going vocational rehabilitation.-H.R. 3236 have been provided by the State in accord ts required to provide for separate accounts will allow for continued payment of SSI or with State and Federal laws for those em­ of benefits provided under this program in DI benefits to enable an individual to com­ ployees who are not hired by the Federal order to evaluate its effects on programs es­ plete a program of vocational rehabiltation government. H.R. 3236 also requires the Sec­ tablished by titles II, XVI, XIX, and xx of even though he has medically recovered from retary of Health and Human Services to sub­ the Social Security Act. his disab111ty. This provision will apply only mit a detailed report by July 1, 1980 as to A separate, though related, pilot program 1f the Commissioner of Social. Security deter­ how Federal assumption of State !unction will be established by H.R. 3236 to enable mines that completion of the program will would be carried out in the event it should States to provide medical and social services make it more likely that the individual will become necessary. to severely handicapped individuals who be permanently removed from the disability Federal review of State agency dectsions.­ have not established ellgibi11ty under exist­ rolls. This generally would be limited to H.R. 3236 will require the Department or ing law programs and who a.re working at instances in which the medical recovery Health and Human Services to reinstitute its wage levels which indicate that they would could not have been anticipated. The provi­ former practice of reviewing determinations not be considered disabled for purposes of sion will become effective six months after made by State agencies to the effect that in­ those programs. Medical and social services enactment. dividuals are or continue to be disabled for are to be provided on the basis of a State Treatment of extraordinary work ex­ purposes of SSI and DI benefit payments. determination that the absence of the serv­ penses.-H.R. 3236 will permit SSI and DI These reviews will be ma.de prior to awarding ices would significantly inhibit continued beneficiaries to deduct from their earnings benefits in the case of initial claims and re­ employment and that the individual bas not an amount equal to what they pay for ex­ considerations and the Department will be achieved a level of earnings reoresenting a traordinary work expenses which are necessi­ required to review at least 15 percent of such reasonable equivalent of the SST, Medicaid, tated by their disability (includin~ attendant determinations made in fiscal 1981, 35 per­ and social services benefits which might be care costs and the cost of medical devices, cent of the determinations ma.de in fiscal available to him if he were not working. equipment, drugs, and services). The Beere- 1982, and 65 percent of the determinations May 29, 1980 CONGRESSIONAL RECORD-SENATE 12625

m&de in subsequent years. H.R. 3236 also wm Report by Secretary.-H.R. 3236 requires administration of the programs, including broaden the authority of the Secretary so as the Secretary of Health and Human Serv­ an audit performed by a legislative audit to permit Federal reversal of State agency ices to report to Congress by January 1985 body. The provision is effective September 1, decisions that are unfavorable to the claim­ concerning the results of implementing the 1980. ant; however, the required review relates only provisions of this bill which relate to the Federal matching for child support activi­ to decisions which are initially favorable. Social Security Act disab111ty programs. ties performed by court personnel.-The blll Ow n-motion review of decisions by Admin­ AFDC work requirement.-Under present authorizes Federal matching for expendi­ istrat i ve Law Judges.-H.R. 3236 requires the law, individuals who a.re not specifically ex­ tures of courts for functions specifically Depart ment of Health and Human Services to empt are required to register for manpower identifiable as child support (title IV-D) reinstitute its former practice of conducting services, training and employment as a con­ !unctions. Allowable expenditures would ex­ a program of review on the Secretary's own dition of eligibility for Aid to Families with clude compensation for judges or other per­ motion of decisions rendered by Adminlstra­ Dependent Children. H.R. 3236 will add sons making judicial determ1nations, but ti ve Law Judges (ALJs) as a result of hear­ employment search to the types of activities would include expenditures for their admin­ ings related to the disability determination for which these individuals are required to istrative or support personnel, such as the process. register under the work incentive (WIN) bailiff, stenographer, and court reporter. The Information to accompany Secretary's deci­ program. The bill requires that necessary so­ provision is effective July 1, 1980. sion.-H.R. 3236 will require that SS! and DI cial and supportive services be provided to Child support management information notices of denial to claimants include an persons who are engaged in employment system.-H.R. 3236 will increase Federal understandable explanation of the Secretary's search activities. Authority is added to pro­ matching from 75 percent to 90 percent for decision and the basis for that decision. This vide these services to persons who a.re reg­ the costs of developing and implementing provision is effective 13 months following istered for WIN, but who have not yet been State child support management informa­ enactment. certified for participation. The criteria. for tion, systems. These systems must have spec­ Limitation on prospective effect of an ap­ appropriate work and training to which an ified features in order to be eligible for this plication.-Under existing law and regula­ individual may be assigned under the WIN increased matching, including the ability to tions, applications for DI and SS! benefits program wm apply in the case of work to control an:l monitor all the factors of the remain effective until a final decision ls made which an individual may be referred as part support collection and paternity determina­ on a claim. Under H.R. 3236 applications filed of WIN employment search. This means that, tion process, capacity for interface with the after the date of enactment wlll be effective although present regulations may be AFDC program, security again.st access to only to the extent that the claimant can changed, whichever regulations a.re in effect data, and the abll1ty to provide manage­ establish that he meets the eligibility re­ at any time will apply to these jobs referrals ment information on all cases from appli­ quirements as of a date no later than the as well as to required participation in other cation through collection and referral. The month in which a hearing decision is ma<1e WIN components. An individual may not be Secretary will be required to provide tech­ by an Administrative Law Judge. Under this required to participate in job search for more nical assistance. The increased matching is change, for example, evidence as to a change than 8 weeks in any year. (However, an in­ authorized beginning July l , 1981. in the claimant's medical condition which dividual will always be eligible for job refer­ AFDC management information system.­ takes place after the hearing will no longer ral.) Necessary expenses pa.id for by an in­ Effective July 1, 1981, H.R. 3236 w111 increase be relevant to that claim (although the in­ d!v!dua.l who is participating in employment Federal matching from 50 percent to 90 per­ dividual ls not precluded from filing a new search must be reimbursed on a timely basis. cent for the costs of developing and imple­ initial claim on the basis of such evidence) . The b111 authorizes the Secretaries of menting AFDC managemen,t information Limitation on court remands.-H.R. 3236 Labor and Health and Human Services to systems. In order to qualify for this increased provides that courts may remand social se­ establish, by regulation, the period of time matching rate, a State system will have to curity cases for further administrative con­ during which an individual is not eligible include the abllity to provide data on AFDC sideration only if the Secretary makes a re­ for assistance because of refusal without eligibllity factors, capacity for verification o! quest for such a remand for good cause or if good cause to participate in the WIN pro­ factors with other agencies, capability for there ls a showing that there ls new and ma­ gram. It also eliminates the present law pro­ notifying other welfare programs of changes terial evidence and good cause existed for vision for a 60-da.y counseling period for per­ in AFDC eligibility and benefit amount, com­ the failure to incorporate it into the record sons who refuse to participate. patibility with systems in other jurisdictions, in a prior proceeding. This change wm be Other related provisions in the b111 require and security against unauthorized access to effective upon enactment. that State supportive service units be co­ or use of data in the system. The Secretary Report on time limits for decisions on located with manpower unilts to the maxi­ will be required to provide technical as­ benefit claims.-H.R. 3236 requires the Sec­ mum extent feasible; allow State matching sistance. retary of Health and Human Services to sub­ for supportive services to be in cash or in Child support reporting and matching pro­ mit a report to Congress by July 1, 1980 rec­ kind; clarify that income from WIN public cedures.-In order to improve State reporting ommending time limits for various levels of service employment is not fully excluded in practices, the bill will prohibit advall:Ce pay­ adjudication of title II benefit claims. The determining benefits (there is no disregard ment of the Federal share of State child report ls to give adequate ccnslderation to of the first $30 a month plus one-third of support administrative expenses for a calen­ both speed and quality of adjudication. additional earnings); and add to the individ­ dar quarter unless the State has submitted a Payment for existing medical evidence.­ uals who are exempt from registration for complete report of the amount o! child sup­ H.R. 3236 will allow the Secretary of Health WIN, individuals who a.re working at least 30 port collected and disbursed for the calendar and Human Services to pay non-Federal hours a week. quarter which ended 6 months earlier. It medical providers and physicians for the rea­ The provisions for employment search are wi!l also require the Secretary to reduce the sonable cost of furnishing information effective July 1, 1980. Provisions relating to amount of the payments to the State by the which they have which is requested and re­ termination of assistance and treatment of Federal share of child support collections quired by the Secretary for purposes of DI WIN PSE earnings are effective upon made but not reported by the State. This claims. enactment . provision has an effective date o! January 1, Payment for certain travel expenses.-H.R. Use of IRS to collect child support for non­ 1981. 3236 provides explicit authority to reimburse AFDC families.-The b111 authorizes States Access to wage information for child claimants for travel expenses incident to to use the Federal income tax mechanism for support program.-H.R. 3236 amends the medical examinations and for purposes of collecting support payments for fam111es who Internal Revenue Code to provide that, upon attending hearings and reconsideration in­ are not receiving AFDC, if the States have written request, the Commissioner of Social terviews related to their claims under the made diligent and reasonable efforts to col­ Securit y shall directly disclose return in­ DI, SS!, and medlcare programs (including lect the payments wit hout success and the formation with respect to net earnings from travel expenses for their representatives and amount sought is based on noncompliance self-employment, wages, and payments of witnesses). In reconsideration cases, this with a court order for support. States wm retirement income to officers and employees provision would not apply to routine visits have access to ms collection procedures only of a State or local child support enforcement to the local Social Security office to file for after certification of the amount of the child agency. Disclosure will be allowable only for reconsideration but only to cases where the support obHgation by the Secretary of Health purposes of, and to the extent necessary in, claimant is requested to appear for a more and Human Services. The State must agree establishing and collecting child support formal interview with the disab111ty deci­ to reimburse the U.S. for any costs involved obligations from, and locating, individuals slonmaker in the case. in making the collection. This authority, owing child support obligations. Any agency Periodic review of disability determina­ subject to the same requirements, is now receiving information must comply with con­ tion.-Effective January 1982, H.R. 3236 re­ available to the States with respect to fami­ ditions specified in current law for safe­ quires, in addition to other reviews, that the lies who are receiving AFDC. The provision is guarding information. This provision for status of all disab111ty beneficiaries be re­ effective July 1, 1980. disclosure ls effective on enactment. viewed periodically and that this periodic re­ Safeguards restricting disclosure of certain In addition, the b111 amends title Ill of the view be not less frequent than every three information under AFDC and. Social Serv­ Social Security Act to require the State years except where the initial prognosis ices.-The b111 modifles AFDC and social serv­ agency administering the unemployment shows a probability that the condition will ices laws to allow the disclosure of informa­ compensation program to disclose directly, be permanent. Review of these latter cases tion regarding individuals assisted under upon request and on a reimbursable basis, will be conducted at such times as the Sec­ these programs for purposes of any author­ retary determines appropriate. to officers or employees of any State or local ized audit conducted in connection W'ith the child support agency any wage information 12626 CONGRESSIONAL RECORD-SENATE May 29, 1980 contained in the records of t he St ate agency. program. (In determining eligibility for SSI Social Security Administration and to deter­ The agency will be required to establish safe­ benefits, the SSI benefits themselves a.re not mine how best to provide services needed by guards necessary (as determined by the Sec­ counted inasmuch as SSI entitlement does individuals who are suffering from terminal retary of Labor in regulations) to insure that not logically arise until after the det ermina­ illnesses. information is used only for purposes of the tion is made. For purposes of this provision, Voluntary certification of Medicare sup­ child support program. If the Secretary finds however, any SSI entitlement on the part of plemental health i nsurance.-H.R. 3236 will that the State agency has failed to comply a sponsor would be determined first and any establish, effective July 1, 1982, a voluntary with requirements of this provision, he must such SSI or State supplemental benefit en­ certification program for Medicare supple­ notify the agency that further payments of titlement would be included in the sponsor's mental policies in States that fail to estab­ administrative costs will not be ma.de to the income.) lish equivalent or more stringent programs. State until he is satisfied that there is no The bill provides also that the assets of To be certified under the program, a Medi­ longer any such failure. The provision is ef­ the sponsor and his spouse which are above care supplemental policy would have to meet fective July 1, 1980. the SSI allowable limits ($1500 if the sponsor or exceed the standards for such policies as Relationship between social security and is single, $2250 for a couple) will be con­ adopted by the National Association of Insur­ SSI benefits.-Under existing law, an indi­ sidered to be resources of the alien, in addi­ ance Commissioners on June 6, 1979, in­ vidual eligible under both the OASDI and tion to whatever resources the alien has in cluding the standards relating to minimum SSI programs, whose determination of eligi­ his own right. benefit provisions, preexisting condition bility for OASDI is delayed, can in some cases The a.lien and sponsor shall be jointly and limitations, full disclosure, and requir­ receive full payment under both programs for severably liable to repay any SSI benefits ing a. no loss cancellation clause, and the same months. H.R. 3236 will require the which a.re incorrectly pa.id because of the be expected to pay benefits to sub­ Secretary to offset, against retroactive bene­ sponsor's providing of misinformation or be­ scribers equal to 75 percent of premiums fits under OASDI, ·amounts of SSI benefits cause of his failure to report, and any in­ in the case of group policies and 60 percent paid for the same period. The amount of the correct payments which are not repaid will in the case of individual policies. H.R. 3236 offset will equal the amount of SSI that be withheld from any subsequent payments will also establish criminal penalties of up would not have been paid had OASDI bene­ for which the alien or sponsor are otherwise to $25,000 and imprisonment for up to five fits been pa.id on time. From the amount of eligible under the Social Security Act. yea.rs which could be assessed for: (a) fur­ social security benefits offset under the provi­ The b111 requires that an a.lien applying nishing false information to obtain the sec­ sion, States will be reimbursed for any for SSI must make available to the Social retary's certification; (b) posing as a. Federal amounts of State supplementary payments Security Administration any documentation agent to sell Medicare supplemental policies; that would not have been paid; the remain­ concerning his income or resources or those (c) knowingly selling duplicative policies: der will be credited to general revenues. The of his sponsor (if he has one) which he pro­ and (d) selling supplemental policies by mail provision is effective the 13th month after vided in support of his immigration appli­ in States which have not approved, or are the month of enactment. cation. The Secretary of Health and Human deemed not to have approved their sale. Extension of the term of the National Services will be authorized to obtain copies The Secretary, in consultation with regula­ Commission on Social Security.-The bill of any such documentation from other agen­ tory agencies, insurers and consumers, will extends for 3 months the expiration date of cies. The Secretary will also be required be required to study and report to the Con­ the National Commission on Social Security to enter into cooperative arrangements with gress by January l, 1982 on State approaches and the terms of its membe.rs. The Com­ the State Department and the Justice De­ to the regulation of supplementary policies. mission's work and the terms of the mem­ partment to assure that persons sponsoring Periodic reports on the effectiveness of the bers will end April 1, 1981, and the final the iID.IJligration of aliens are informed at voluntary certification, and the criminal pen­ report will be due January 11, 1981. the time of sponsorship that, if the alien ap­ alties, are also required with the first of such Depositing of social security contributions plies for public assistance, the sponsorship reports due July l , 1982.o with respect to State and local covered em­ affidavit will be made available to the pub­ ployment.-Effective July l, 1980, States will lic assistance agency and the sponsor may • Mr. DOLE. Mr. President, I am par­ be required to make deposits of social secu­ be required to provide further information ticularly pleased that the Senate has be­ rity contributions related to the wages of concerning his income and assets in con­ fore it the conference report on H.R. State and local government employees with­ nection with the a.lien's application for as­ 3236, the Social Security Disability in 30 days after the end of each month. sistance. Work incentive and other demonstration Amendments of 1980. As I stated at the Aliens receiving SSI.-For purposes of this eligib111ty for Supplemental Security Income projects under the Disab111ty Insurance and time the Senate first considered (SSI) benefits, legally admitted a.liens who Supplemental Security Income programs.­ measure, it is one of the most important apply for SS! benefits after September 30, H.R. 3236 includes provisions to waive bene­ pieces of legislation the Congress will 1980 will, under the provisions of H.R . 3'236, fit requirements of the DI and medica.re pro­ take up, and it will have as profound an be deemed to have the income and resources grams to allow demonstration projects by effect on the lives of disabled Americans of their immigration sponsors a.va.ila.ble for the Socia.I Security Administration to test their support for a periOd of 3 years after ways in which to stimulate a return to as any bill we will consider. their entry into the United States. The eligi­ work by disability beneficiaries. Benefit re­ The leadershjp of our distinguished b111ty of these aliens for SSI will be contin­ quirements may also be waived in the case chairman during the deliberations of the gent upon their obtaining the cooperation of other DI demonstration projects which conference committee was crucial in our of their sponsors in providing the necessary SSA may wish to undertake, such a study negotiations with the House conferees, information and evidence to enable the So­ of the effects of lengthening the trial work and I commend his efforts. I believe the cial Security Administration to carry out period, altering the 24-month waiting period this provision. for medica.re benefits, altering the way the result of the conference action is worthy The provision will not apply to an alien disability program is administered, earlier of the support of all Senators, and I urge who becomes blind or disabled after entry referral of beneficiaries for rehabilitation, my colleagues to join me in voting for into the United States. It also will not apply and greater use of private contractors, em­ the conference report. to aliens admitted as refugees or granted ployers and others to develop, perform, or The chairman has already enumerated political asylum by the Attorney General. otherwise stimulate new forms of reha.b111- the provisions in the conference report, Under this provision, the a.lien's SSI bene­ tation. An interim report on the demon­ fit will be reduced by the amount of any strations is due January 1, 1983, and a final but I would like to comment on a few income deemed to him. Income deemed to report by 5 years after the date of enact­ aspects of the bill. In particular, I be­ the a.lien will be considered unearned in­ ment. lieve the work incentive measures are come and will thus result in a dollar-for­ The bill also authorizes experiments and the most important part of the legisla­ dollar reduction in benefits (after the appli­ demonstration projects which a.re likely to tion and I am extremely pleased that cation of the existing-law provision allowing promote the objectives or improve the ad­ a. $20 monthly deduction of earned or un­ ministration of the SSI program. The Secre­ many of the incentives which I have earned income). The amount to be deemed tary is not authorized to carry out any supported for several years are included will be equal to the gross income of the project that would result in a. substantial re­ in the bill. These provisions will allow sponsor and his spouse reduced by an duction in any individual's total income and individuals with severe disabilities to a.mount equal to a full Federal SSI benefit resources as a result of his participation in continue to receive cash, health benefits, for the sponsor and an a.mount equal to one­ the project. Participation must be voluntary. ha.lf of a. full Federal SSI benefit for each Provisions relating to the terminally ill.­ and social services while working at low other person for whom the sponsor is legally The bill authorizes $2 mil11on a year to be wages and make it easier for them to responsible. Gross income is defined by H.R. used by SSA to participate in a. demonstra­ return to the disability rolls if a work at­ 3236 in the broad terms applicable to the tion project relating to the terminally ill tempt fails. The provisions are more SSI program to encompass all earned and which is. currently being conducted by the than incentives, they are the safety net unearned income from whatever source (in­ Department of Health and Human Services. cluding any Federal or State payments under The purpose of participation is to study the that the handicapped need to give them title XVI) and without the application of impact on the terminally ill of provisions of the courage and the ability to try to the exclusions which apply under the SSI the disabllity programs administered by the work. May 29, 1980 CONGRESSIONAL RECORD-SENATE 12627 The bill makes improvements in the to the point where now over 50 percent of in the medicare supplemental health in­ disability insurance program which will the cases heard by administrative law surance area. The agreement reached in save the DI trust fund over $3.5 billion judges are reversed in favor of the claim­ conference does not depart substantially over the next 5 years. That is an ex­ ants. There is evidence of wide dispari­ from the provisions adopted oy this body tremely important accomplishment in ties in the quality of decisions made by last January. the light of social security financing different judges. The conference agree­ The Medi-Gap provision establishes a problems and the overwhelming public ment requires the Secretary to report to voluntary certification of medicare sup­ sentiment favoring lower payroll taxes. the Congress by January 1, 1982, on the plemental health insurance policies in procedures being used in the review pro­ States that do not adopt equal or more The bill also represents an important gram, the criteria for selecting cases for stringent programs of their own. The first step toward balancing the Federal review and the results of reviews con­ conference agreement encourages and budget since overall the provisions save ducted thus far. This report will enable stimulates States to take care of the $6 million in fiscal year 1980 and $78 the Congress to further evaluate the ad­ problems in their own backyards. The million in fiscal year 1981 going up to ministrative law judge system and make Federal certification program would be­ $1.2 billion in fiscal year 1985. other changes if needed. come effective for those States that by Besides the reforms in the social se­ The conference report is a positive step July 1, 1982, do not adopt standards curity and supplemental security income in addressing some of the problems in meeting or exceeding the Medi-Gap disability programs, the bill makes one of our country's most important so­ standards adopted by the National Asso­ needed improvements in the AFDC, child cial programs. The conference report not ciation of Insurance Commissioners in support, SSI, and medicare programs. only corrects some of the inequities in the Model Regulation to Implement the These amendments will allow us to the disability program by instituting Individual Accident and Sickness Mini­ maintain better control over these pro­ meaningful reforms, but will also save mum Standards Act. States would also grams so we can better serve recipients almost $2.6 billion over the next 5 years. be required to establish minimum loss and taxpayers. The conference report deserves prompt ratio standards of at least 60 percent in All in all, I believe the conference re­ approval by the full Senate.• the case of individual policies and 75 port offers a balanced package of im­ Mr. BAUCUS. Mr. President, I rise in percent in the case of group. proved protections and opportunities for support of the conference report to H.R. The legislation also establishes strin­ those entitled to disability benefits while 3236, the Social Security Disability gent penalties for engaging in fraudulent strengthening the insurance principles Amendments of 1980. I was privileged to activities in the Medi-Gap area. of the disability insurance program. I be a conferee considering this legislation The Medi-Gap program will provide am happy to be able to support it and which improves our social security dis­ important protection to our elderly I urge adoption of the conference ability programs, and makes changes in Americans who have been subjected to report.• AFDC and child support programs along widespread abuse and high-pressure •Mr. BELLMON. Mr. President, I want with increased protection to the elderly sales tactics in the Medi-Gap area. En­ to express my strong support of the con­ who purchase medicare supplemental actment of this program will combat ference report on H.R. 3236, the Social health iI1surance coverage. and reduce the abuses in Medi-Gap Security Disability Amendments of 1980. I want to commend the distinguished practices. It will provide assurance to The conferees have done an admirable chairman of the Finance Committee for older Americans that the insurance job in shaping these reforms of the dis­ his able management in reaching an policy they purchase meets basic stand­ ability portions of the social security and agreement on the conference report. ards for coverage and benefits. supplemental security income programs. The Social Security Disability Amend­ Mr. President, I urge the adoption of Due to the diligent work of the confer­ ments of 1980 substantially modifies and the conference report so that senior citi­ ees, the savings that will accrue from reforms the disability programs. I want zens are not forced to wait any longer H.R. 3236 over the next 5 years will total to highlight several provisions which for these minimum assurances. almost $2.6 billion, alleviating some of represent significant improvements in • Mr. DURENBERGER. Mr. President, the financial pressures that the social our social security programs. I rise in support of the conference report security system faces due to growing ben­ H.R. 3236 contains several provisions to accompany H.R. 3236. The bill makes efit costs. providing increased incentives for dis­ immediate improvements in the social In addition to saving substantial sums abled individuals to return to work. The security disability program. It also of money the reforms that are contained work incentive features of the bill are makes changes in the SSI, the AFDC, in this bill also provide greater equity in true reforms which will enable more dis­ and child support programs and provides our social security system by eliminating abled beneficiaries to return to work de­ for increased supervision of medicare windfall benefits for some recipients. For spite their impairments. I am referring supplemental insurance. recipients becoming eligible for benefits especially to those provisions which ex­ Mr. President, I support this bill as a from now on, the total family benefit may tend medicare coverage for those dis­ member of the Committee on Finance be no greater than 85 percent of a work­ abled and handicapped workers who re­ and as a conferee. But additionally, the er's averaged indexed monthly earnings turn to employment and eliminate the bill contains the provisions of S. 1643, or 150 percent of his/her primary insur­ second medicare waiting period. that I introduced on August 2, 1979. ance amount. This will insure that no While the House conferees rejected S. 1643 was introduced to correct a one can receive benefits greater than the Senate provision eliminating the serious drawback in our assistance to the their predisability earnings. It will also waiting period for persons with a termi­ disabled person. The bill was intended help assure that incentives exist for re­ nal illness, the conference agreement to remove the provisions under social cipients to seek employment as soon as does recognize that changes may have to security law that discourage the severely they are able to do so. be made in this area. Under the agree­ disabled person from seeking employ­ I want to especially commend the con­ ment, the Social Security Administra­ ment. The bill also was intended to make ferees for retaining in the conference tion will participate in a demonstration it possible for both the public and private agreement the key provisions of an project to examine how the disability sectors to develop and implement inno­ amendment I offered in the Senate. This programs affect the tenminally ill. vative programs to help engage in mean­ amendment requires the Secretary of the Mr. President, I am especially pleased ingful long-term employment. Department of Health and Human Serv­ that an agreement was reached on legis­ Experts in the field of rehabilitation ices to set up a procedure for reviewing lation I introduced last year to protect know the value of employment for the decisions made by Federal administra­ the elderly from unscrupulous health in­ disabled person. They also know the dif­ tive law judges CAW> on disability surance agents selling worthless and of­ ficult problems that exist for the dis­ claims. The appeals process in the dis­ ten duplicative health insurance cover­ abled person who seeks a job and, in so ability program is costly, time consum­ age in supplementation of medicare. This doing, jeopardizes the necessary health ing, and one of the weakest components was a difficult matter to resolve, but I am and financial benefits he or she receives of the disability adjudication system. grateful for the cooperation and patience under the various public and private The number of cases that are appealed displayed by the conferees. programs. to the AW level and reversed has been The Medi-Gap provision represents a Widely recognized and most important steadily increasing over the last 10 years positive beginning to combat the abuses is the fact that social security programs, 12628 CONGRESSIONAL RECORD-SENATE May 29, 1980 which provide monthly payments and The most significant obstacle home­ The assistant legislative clerk read the medical protection, include highly re­ work has encountered since its inception nomination of Robert B. Propst, of Ala­ strictive provisions that discourage and is the disincentives currently contained bama, to be a U.S. district judge for the often prevent people from attempting in the social security regulations and northern district of Alabama. gainful work. Examples of these inhibi­ law. Even though each homeworker has The Senate proceeded to consider the tive provisions are: been declared permanently and totally nomination. The low earning level constituting sub­ disabled by social security, the mere fact The PRESIDING OFFICER. The Sen­ stantial gainful activity; that each person attempts to work po­ ator from Alabama. Two consecutive years of receiving so­ tentially leads to a discrimination of all Mr. STEWART. Mr. President, I wish cial security disability benefits required :financial and medicare benefits. I am to make a very brief statement. This par­ for medicare eligibility; proud to state that certain of these dis­ ticular nominee is an outstanding lawyer One trial work period lasting 9 months, incentives have been eliminated by this of the northern part of the State of and applicable once in a person's life­ legislation. Alabama. He is recognized as an out­ time; and Mr. President, S. 1643 and H.R. 3236 standing lawyer by both the bar associa­ Reentitlement to financial and medical are positive steps toward saving taxpay­ tion in our State and the national bar benefits necessitates a second waiting ers money in two respects: association. He has been cleared by the . period similar to the initial entitlement They will produce general tax reve­ Judiciary Committee, by both Republi­ of benefits. nues from earnings realized by disabled cans and Democrats. Mr. President, S. 1643 corrected the in­ persons; and I think he is a fit and proper person hibitive provisions cited above and en­ They will reduce the payout of bene­ to serve as a member of the district couraged beneficiaries to attempt tJo re­ fits made by social security. court and will serve with an outstanding turn to work and leave the disability Even more important, making it pos­ record, I am quite sure, in that capacity. rolls. These provisions which are a part sible for disabled persons to work means I also want to thank the majority of H.R. 3236 include the following: increased self-esteem, greater independ­ leader for coordinating and assisting us The allowable job trial period is ex­ ence and a feeling of self-worth for dis­ in getting consideration of this nomina­ tended from 9 to 24 months. During the abled persons.• ~!on. last 12 months of the trial period the The PRESIDING OFFICER. The ques­ Mr. HEFLIN. Mr. President, Robert disabled person would not be eligible for tion is on agreeing to the conference re­ Propst is an old friend of mine. He was cash assistance if his or her monthlv port. born in the rural community of Ohat­ salary was more than $300, but could 'I'he conference report was agreed to. chee, Ala., was valedictorian of his high receive medical and other benefits. Mr. ROBERT C. BYRD. Mr. President, school class, and received his B.S. in Extraordinary expenses necessary to I move to reconsider the vote by which accounting from the University of Ala­ allow a severely handicapped person to the conference report was agreed to. bama, where he was elected to member­ return to work will not be counted as part Mr. BAKER. I move to lay that motion ship in Beta Gamma Sigma and was a of the person's earnings if the expenses on the table. distinguished military graduate. would cause the person to lose benefits. The motion to lay on the table was He served in the U.S. Army, rising to Beneficiaries who have returned to agreed to. the rank of first lieutenant in the work, but have not been declared medi­ Finance Corps, and later, to captain in cally recovered, can receive medicare the Army Reserve. coverage for an additional 36 months. EXECUTIVE SESSION He received his law degree from the Under the old law, medicare coverage Mr. ROBERT C. BYRD. Mr. President, University of Alabama, where he gradu­ ends when disability insurance stops. I ask unanimous consent that the Senate ated with honors, was a member of the Disabled persons wlio are forced by go into executive session to consider the Alabama Law Review, was chosen as the their disability to quit a trial work pro­ nominations on the Executive Calendar outstanding freshman law student, and gram can immediately regain medicare beginning with the Judiciary, Robert B. was elected to Omicron Delta Kappa coverage, rather than waiting 24 months Propst, of Alabama, to be a U.S. district leadership honorary. as the old law required. judge for the northern district of Bob Propst served briefly as city judge The Secretary of the Department of Alabama. in recorder's court in Anniston, Ala., Mr. BAKER. Mr. President, I object. and later as a member of Anniston's Civil Health and Human Services can estab­ Service Board. lish demonstration projects to test alter­ The PRESIDING OFFICER. Objec­ native incentives to help the disabled tion is heard. A senior partner in the Anniston firm return to work. Mr. ROBERT C. BYRD. Mr. President, of Wilson, Propst, Isom, Jackson, Bailey I move that the Senate go into executive & Bait, he is a member of the Alabama Mr. President, we must do more for session to consider the nominations in Bar Association, the ABA, and was people who are disabled. We must the Judiciary beginning with the nomina­ elected by his fellow lawyers as president change the restrictive provisions and tion of Robert B. Propst, of Alabama, to of the Calhoun County Bar Association. promote improvements in the law to en­ be a U.S. district judge for the northern He has published a scholarly note on courage employers to provide employ­ district of Alabama. the criminal insanity defense in the ment alternatives to severely disabled Mr. BAKER. Mr. President, I suggest Alabama Law Re\iew, and has been ac­ P.ersons. S. 1643 and this bill are posi­ the absence of a auorum. tive in numerous civic, professional, and tive steps in that direction. As a result The PRESIDING OFFICER. The clerk religious organizations. of this legislation, we can create suc­ will call the roll. Bob Propst is admitted to practice in cessful ventures for both employers and The assistant legislative clerk pro­ all courts in Alabama, the northern dis­ employees, as one example demonstrates. ceeded to call the roll. trict of the U.S. district court for Ala­ In January 1978, Control Data Corp. Mr. BAKER. Mr. President, I ask bama, the :fifth U.S. circuit court of ap­ headquartered in Minneapolis, devel~ unanimous consent that the order for the peals, and the U.S. Supreme Court. oped project "Homework." Homework is quorum call be rescinded. Judge to be Propst has tried over 80 a homebound employment program The PRESIDING OFFICER. Without cases to verdict, both civil and criminal, made possible through Control Data's obiection, it is so ordered. jury and nonjury. He has carried cases computer-based education system called The question is on agreeing to the on appeal to the Alabama Supreme Plato. Through "Homework," a select motion of the Senator from West Court, the :fifth circuit court of appeals, group of Control Data's permanently Virginia. and the U.S. Supreme Court. His vast, and totally disabled employees have re­ predominantly civil practice spans the entered the world of work. The motion was agreed to. areas of personal injury, real estate, Due to the encouraging results of the contracts. probate, corporate and mu­ homework experiment within Control THE .JUDICIARY nicipal law, banking, child welfare, un­ Data, other major corporations within fair competition, and public utilities. the United States have expressed an in­ NOMINATION OF ROBERT B. PROPST, OF ALABAMA, I have known Bob Propst for 25 years, TO BE U.S. DISTRICT .JUDGE FOR THE NORTHERN and he practiced before me when I was a terest.in having Control Data help them DISTRICT OF ALABAMA establlsh a homework program for their judge. I can tell you he is a fine legal company's disabled employees. The PRESIDING OFFICER. The nom­ scholar, a capable attorney, and he will ination will be stated. make a fine Federal district judge. May 29, 1980 CONGRESSIONAL RECORD-SENATE 12629 vote in the Committee should be considered U.S. district judge for the northern dis­ In conclusion, Mr. President, I think at the same time by the Senate as a whole. that the Senate is confirming today, if trict of Alabama and Robert B. Propst to With kindest r~gards and best wishes, be U.S. district judge for the northern it does so confirm, an outstanding Ala­ Sincerely, bama lawyer who will carry on the tra­ STROM THURMOND. district of Alabama, until such time as dition of scholarly and outstanding ju­ hearings are completed on U. W. Clemon, rists from that great State. I commend U.S. SENATE, to be U.S. district judge, northern dis­ him to you highly and I ask for his COMMITTEE ON THE JUDICIARY, trict of Alabama; and Fred D. Gray, to speedy confirmation. Washington, D.C., May 21, 1980. be U.S. district judge, middle district of Mr. THURMOND addressed the Chair. Hon. DoNALD w. STEWART, Alabama. U.S. Senate, Mr. President, in placing this hold on The PRESIDING OFFICER. The Sen­ Washington, D.C. ator from . DEAR DoN: There is no intention of un­ these nominations it was not our inten­ Mr. THURMOND. Mr. President, on duly holding up the confirmation in the tion to delay their confirmation· rather May 21, I asked, on behalf of myself and Senate of Alabama judges. It is, however, our it is our concern that all nomin~es to ~ all minority Senators on the Senate belief that since all were considered in the Federal judges for the State of Alabama Judiciary Committee, that floor action same hearings, those who receive a favorable should be considered at one time. Pres­ in the Senate be delayed on the white vote in the Committee should be considered ently, the Judiciary Committee is in the Alabama judges being considered now at the same time by the Senate as a whole. process of concluding hearings on one of until such time as hearings are com­ With kindest regards and best wishes, the nominees, Mr. Fred Gray. Sincerely, The two nominations that are still pleted and a vote has been taken in the STROM THURMOND. Judiciary Committee on the two remain­ pending before the Judiciary Committee ing Alabama nominees, U. W. Clemon Mr. DOLE addressed the Chair. are for two black lawyers who would be and Fred D. Gray, both of whom are The PRESIDING OFFICER. The Sen­ the first black Federal judges in the State black. ator from Kansas. of Alabama. The senator from Kansas Robert B. Propst and E. B. Haltom, Mr. THURMOND. Will the Senator believes that by separating these two Jr., are good men, and I intend to vote yield? nominations, it gives the appearance that for them today since the matter is now Mr. DOLE. I yield. the committee may be using a double before us. Mr. THURMOND. Mr. President, the standard in considering the four Ala­ However, as a matter of fairness, we distinguished Senator from Virginia

NOMINATIONS PLACED ON THE SECRETARY'S I ask unanimous consent that the Presi­ The problem a.bout the Jews was that they DESK IN THE NAVY AND MARINE CORPS dent of the United States be immediately existed. The solution was to have them not l{i.'lY nominations beginning David A. notified of the confirmation of the nomi­ exist. Goulla., Jr., to be ensign, and ending Kurt A. nees. Driscoll, to be commander, which nomina­ The PRESIDING OFFICER. Without This intellectual summary poses a sim­ tions were received by the Senate a.nd ap­ ple problem and a tidy solution. Intel­ peared in the CONGRESSIONAL RECORD on May objection, it is so ordered. lectual games such as this one are in­ 1, 1980. teresting, but oftentimes deadly. Navy nominations beginning W1llia.m R. Thornh111, to be captain, and ending Malcolm LEGISLATIVE SESSION By distancing themselves this way, M. Sayre, to be commander, which nomina­ Mr. ROBERT C. BYRD. Mr. President, Nazi leaders allowed the unthinkable to tions were received by the Senate and ap­ I ask unanimous consent that the Senate become thinkable. The problem was peared in the CONGRESSIONAL RECORD on May return to legislative session. solved; it was no longer a philosophical 6, 1980. question but rather a simple question of Navy nominations beginning Edward R. The PRESIDING OFFICER. Without logistics. How do we make the Jews not Aa.nstoos, to be captain, and ending Evelyn objection, it is so ordered. exist? How do we exterminate European M. Ross, to be commande!', which nomina­ tions were received by the Senate and ap­ Jewry? peared in the CONGRESSIONAL RECORD on May RECESS SUBJECT TO THE CALL OF This warped, simplistic reasoning led 9, 1980. THE CHAIR to the destruction of 6 million Jews. It Navy nominations beginning Daniel W. allowed an attempt to exterminate a Adcock, to be chief warrant officer, and end­ Mr. ROBERT C. BYRD. Mr. President, whole people. ing Franklin E. Zurschmit, to be chief war­ I ask unanimous consent that the Sen­ rant officer, which nominations were received ate stand in recess awaiting the call of It should never have happened. But it by the Senate and appeared in the CONGRES­ the Chair until such time as the major­ did. SIONAL RECORD on May 6, 1980. ity leader calls up a measure today, that What is frightening to me is that Navy nominations of Joseph M. Sample the Senate remain in morning business much of the world fell prey to that same and Alvin D. Sears, to be ensigns, which reasoning after the war was over. Cain nominations were received by the Senate so that any Senator, who wishes to be and appeared in the CONGRESSIONAL RECORD recognized to speak, be recognized in recounts the various methods that have on May 16, 1980. morning business, and that he be allowed been used in the community of nations Marine Corps nominations beginning Scott to speak during morning business in be­ in coping with the actuality of the holo­ E. Chandler, to be second lieutenant, and tween the times the Senate is in and out caust. ending Ma.thew D. Mulhern, to be second of session under the order, and that on The first is to grant that the holocaust lieutenant, which nominations were received the completion of such Senator's state­ by the Senate and appeared in the CONGRES­ occurred, and then to forget it. The glar­ SIONAL RECORD on May 6, 1980. ment from time to time, the Senate again ing fault of this is that we risk never Marine Corps nominations beginning Paul go into recess awaiting the call of the learning from this terrible lesson. R. Aa.dnesen, to be lieutenant colonel, and Chair. A second method Cain suggests has ending Ruth D. Woidyla, to be lieutenant There being no objection, the Senate, been used is to consider the holocaust a colonel, which nominations were received by at 12: 56 p.m., recessed subject to the call part of ancient history. But how ancient the Senate and appeared in the CONGRES­ of the Chair. are the years 1939 to 1945? I remember SIONAL RECORD on May 6, 1980. The Senate reassembled at 2: 43 p.m., them, so do many others. Mr. THURMOND . . Mr. President, I when called to order by the Presiding Officer (Mr. PRYOR) . The only rational way to confront the rise to call to the attention of the Senate holocaust is to see it for what it was: the promotion of Grady Leslie Patterson, Unprecedented contempt for the sanctity Jr., to the rank of major general in the RECESS UNTIL 5 P.M. of human life; unrestrained horror; the Air National Guard. stark face of utter irrationality. Mr. ROBERT c. BYRD. Mr. President, General Patterson is a distinguished The confrontation is painful, sobering, citizen of my State and has served as I ask unanimous consent that the Senate stand recessed until 5 p.m. today. and totally chilling. But the conscious­ State treasurer since 1966. His current ness of humanity and of human frailty military assignment is special assistant There being no objection, the Senate, to the commander of the South Carolina at 2:44 p.m., recessed until 5 p.m.; can come from this encounter. We can whereupon, the Senate reassembled and must grow from knowing what reallv Air National Guard. happened. A native of Abbeville he attended when called to order by the Presiding Clemson University and later received Officer (Mr. PROXMIRE). A sign of that growth would be that his B.S. degree and law degree from the The PRESIDING OFFICER. The we had transcended Auschwitz and Tre­ University of South Carolina. He has Chair, in his capacity as a Senator from blinka. That we had acknowledged that been active in the Presbyterian Church the State of Wisconsin, suggests the ab­ man is indeed capable of such a deed. and served as president of the National sence of a quorum. The clerk will call the And finally that we had found a way to Association of State Auditors, Comptrol­ roll. prevent further occurrences of this lers and Treasurers, the South Carolina The legislative clerk proceeded to call heinous spectacle. National Guard Association and the Co­ the roll. Mr. President, there is a document be­ lumbia Chapter of the Air Force Associ­ Mr. PROXMIRE. Mr. President, I ask fore the Senate to show that we have ation. unanimous consent that the order for grown, that we have learned. A docu­ He has an equally distinguished mili­ the quorum call be rescinded. ment to prevent further occurrences of tary career having served as a pilot in The PRESIDING OFFICER (Mr. genocide. World Warn, the Korean war and the MITCHELL). Without objection it is so or­ Sadly, all I can say is that we have Berlin crisis. He holds a number of mili­ dered. acknowledged the document. We have tary awards and decorations to include discussed and dissected the document. the Air Medal with two Oak Leaf Clus­ But we have not approved it. To our ters and the Distinguished Unit Citation. CONFRONTING GENOCIDE shame, we have not approved it. Mr. President, prior to his election as Mr. PROXMIRE. Mr. President, Sey­ For over 30 years this chance to af­ State treasurer General Patterson was mour Cain wrote a moving analysis of firm our belief that human life, all hu­ the assistant attorney general of South the holocaust entitled "Commemorating man life, is sacred has lain before the Carolina, this office being held from the Holocaust." The paper, appropriately Senate. Lain before us without our ac­ 1959 to 1966. enough, was delivered on the eve of tion, although every single President Mr. President, I am pleased to recom­ Holocaust Day in 1977. since Harry Truman has urged our ratifi­ mend General Patterson to the Senate In the paper, Cain traces the historical cation of the Genocide Convention. for promotion as he represents a citizen/ roots of Jewish persecution. Persecution Mr. President, 30 years is long enough. soldier in the finest sense of the term and that led to the holocaust. He sums up We have a duty to America and to the is a credit to his State and Nation. the culmination of Nazi attitudes quite world to ratify the Genocide Convention. Mr. ROBERT C. BYRD. Mr. President, succinctly: Eighty-four nations have already ratified May 29, 1980 CONGRESSIONAL RECORD-SENATE 12633 it. I urge my colleagues to ratify the Gen­ for other purposes; to the Committee on man of the Council on Environmental ocide Convention now. Agriculture, Nutrition, and Forestry. Quality, Executive Office of the President, Mr. President, I yield the floor. EC-3877. A communication from the Prin­ transmitting a draft of proposed legislation cipal Assistant Secretary of Defense (Comp­ to authorized appropriations for the Council troller), transmitting, pursuant to law, a on Environmental Quality under the Envi­ report on the use of certain funds appropri­ ronmental Quality Improvement Act of 1970 MESSAGES FROM THE HOUSE ated under the Department of Defense Ap­ for the fiscal years ending September 30, propriation Act, 1980 and the Military Con­ 1982, September 30, 1983, and September 30, At 2: 43 p.m., a message from the House struction Appropriation Act, 1980; to the 1984; to the Committee on Environment and of Representatives, delivered by Mr. Committee on Appropriations. Public Works. Berry, one of its reading clerks, an­ EC-3878. A communication from the Prin­ EC-3889. A communication from the As­ nounced that the House has passed the cipal Deputy Assistant Secretary of Defense sistant Secretary of the Treasury (Legisla­ bill oint of the second year pay standard What this bill attempts to do is to over­ servation F~llowships Program; to the Com­ (8.5 per centum), the average growth in non­ turn the IRS ruling with respect to vol­ mittee on Labor and Human Resources. farm o'4t;;:.ut per n.an hour in the private sec­ unteer fire departments when these de­ EC-3903. A communication from the Sec­ tor from 1973 through 1979 (0.5 per centum), partments are the sole organization pro­ retary of Health and Human Resources, as measured by the Bureau of Labor viding firefighting services in the area, transmitting, for the information of the Statistics.". Senate, comments on the bill S. 1843; to the when they are required by the political Committee on Labor and Human Resources. subdivision to provide firefighting serv­ EC-3904. A communication from the Chair­ ices by agreement or otherwise, when man of the Federal Election Commission, INTRODUCTION OF BILLS AND they receive over half their funds from transmitting, pursuant to law, the annual JOINT RESOLUTIONS the political subdivision, and when they report on the activities of the Commission make no charge for firefighting services. for calendar year 1979; to the Committee on The following bills and joint resolu­ The bill then specifically provides that Rules and Administration. tions were introduced, read the first and second time by unanimous consent, and no inference is to be made about other referred as indicated: cases in which fl.re departments might not meet the specific standards set up in REPORTS OF COMMITTEES By Mr. HOLLINGS: S. 2771. A bill for the relief of Joseph E. this bill. This ·bill simply clarifies what The following reports of committees Saleeby; to the Committee on the Judiciary. had been the practice with respect to were submitted: ByMr.BAYH: the Wayne Township Fire Department and similar fire departments before the By Mr. HOLLINGS, from the Committee S. 2772. A bill to a.mend the Internal Reve­ on the Budget, without amendment: nue Code of 1954 to clarify the tax exemption ms made its ruling. S. Res. 426. A resolution waiving section for interest on obligations of volunteer fire Wayne Township Volunteer Fire De­ 402 (a) of the Congressional Budget Act of departments; to the Committee on Finance. partment needs this legislation to help By Mr. ROTH (for himself, Mr. STEVEN­ 1974 with respect to the consideration of S. replace their 1949 firetruck. The interest 2238. SON, Mr. CHAF'EE, Mr. BENTSEN, Mr. HEINZ, Mr. GOLDWATER, Mr. MORGAN, differential between exempt status and S. Res. 431. A resolution waiving section Mr. DANFORTH, Mr. INOUYE, Mr. being taxed on the interest is nearly 303(a) of the Congressional Budget Act of TOWER, Mr. JEPSEN, Mr. CRANSTON, $100,000. That is a heavy burden for 1974 with respect to the consideration of H.R. Mr. COHEN, Mr. DURENBERGER, Mr. many local communities to bear. How­ 3236 and the conference report thereon. JAVITS, Mr. HAYAKAWA, Mr. MATHIAS, ever, even more important is the prin­ S. Res. 436. A resolution waiving section Mr. PERCY, Mr. LUGAR, Mr. BAYH, Mr. 402(a) of the Congressional Budget Act of ciple involved. Such volunteer organi­ TSONGAS, Mr. RIEGLE, Mr. GARN, Mr. 1974 with respect to the consideration of S. zations provide many communities with 2352. COCHRAN, Mr. MELCHER, and Mr. MCGOVERN): low-cost government services. As such By Mr. RIBICOFF, from the Committee on S. 2773. A bill to establish a national ex­ they ought to be rewarded rather than Governmental Atfairs, and the Committee port policy for the United Sta.tes; ordered penalized. on the Judiciary, jointly, with amendments: held at the desk. S. 262. A bill to provide !or the regulatory This bill is basically the same as H.R. analysis of proposed rules and the review of 7319 introduced by Congressman DAVID existing rules by the agencies, to make other Ev ANS of Indiana in the House of Rep­ improvements in regulatory procedures, to STATEMENTS ON INTRODUCED resentatives. I urge that this legislation establish the Administrative Conference of BILLS AND JOINT RESOLUTIONS be enacted without delay. the United States, and !or other purposes. Mr. President, I ask unanimous con­ By Mr. BAYH: s·ent that the bill be printed in the REC­ S. 2772. A bill to amend the Internal ORD. EXECUTIVE REPORTS OF Revenue Code of 1954 to clarify the tax There being no objection, the bill was COMMI'ITEES exemption for interest on obligations of ordered to be printed in the RECORD, as volunteer fire departmen~; to the Com­ The following executive reports of mittee on Finance. follows: committees were submitted: s. 2772 TAX EXEMPTIONS FOR VOLUNTEER FIRE DEPART- Be it enacted by the Senate and House By Mr. CANNON, from the Committee on MENTS of Representatives of the United States of Commerce, Science, and Transportation: •Mr. BAYH. Mr. President, today I am America in Congress assembled, That (a) George Herbert Patrick Bursley, of Mary­ introducing a bill to amend the Internal section 103 of the Internal Revenue Code o! land, to be a member of the National Trans­ 1954 (relating to interest on certain govern­ portation Safety Boa.rd. Revenue Code to clarify the tax exemp­ tion for interest on obligations of volun­ mental obligations) ls amended by redesig­

SECTION-BY-SECTION ANALYSIS coordination and cooperation with the Fed­ The other exception would occur when the TITLE II eral water resources agency. WRC received .a study report in which the This ls intended to assure greater state Federal water agency recommended against Section 201-short title participation in plan development. Too often, implementation of a project. Two things This section cites as the name of this title studies are dragged out unnecessarily, or could happen. If the WRC overruled the of the bill as the "National Water Resources are misdirected and fall to ex-amine some of agency and approved implementation, the Policy and Development Demonstration Act the issues confronting the State. While lead­ WRC would publish a summary of the project of 1980". ership, of course, rests with the Federal in the Federal Register, .and the project Section 202-congressional findings agency, increased state participation should would be authorized automatically. (Should This section discusses several congressional prevent this type of problem. It should also the Council fall to act at all on such a dis­ findings and conclusions regarding the state be noted that the Federal water agency may puted study report within 180 days, then it of the present national water resources pro­ contract with the State for the preparation would be deemed to be authorized.) If, on gram, and its future course. Increasing de­ of any of these studies. The Federal water the other hand, the Council sustained the lays in the implementation of Federal wa­ resources agency must take into account the objection of the Federal water agency against ter resource programs, the bill states, have requirements of any affected interstate com­ the implementation of a project, then that frustrated the development of important and pact, as it relates to water use, as well as any recommendation and the study report would necessary water resources projects to the relevant court decrees. be transmitted to the Congress within 30 point that it now takes, on average, a gen­ When concluded, a study shall be sub­ days. In this case, as with an objection by a eration from the time that planning on a mitted as soon as possible to the WRC, neighboring State, implementation could typical water resources project ls authorized together with the specific recommendations only be authorized by Act of Congress. to the time that the project's actual con­ of the Federal water resources agency Section 205--demonstration program stating whether it concludes the project struction ls initiated. Among the reasons cit­ This section establishes the actual program ed are the lack of expeditious congressional should be implemented. This study report for construction of water resource projects action, both in the authorization and appro­ must be accompanied by a certification of under the demonstration program. This, of priation process, and the failure to establish need from the Governor of the appropriate course, is the provision of this title that will any effective system for identifying those State (or the Governors of two or more have the greatest long-term significance. water resources projects that are of highest States 1f the project wm exist in two or more states). The certification must conclude that Following public hearings to be held at priority for continued economic growth, en­ least annually by each State, the State will vironmental quality, and social well-being. implementation of the project, as described in the study report, would be desirable, develop a priority list for Federal water re­ It is the conclusion of this section that the sources projects to be built in that State in Nation's water resources development effort needed, and entitled to priority consideration within the State (or states.) Failure to pro­ the coming fiscal year. The State wm submit would operate more effectively and efficiently that list to the WRC by August l, 1981, and if projects were evaluated under a system of vide such a certification wm prevent the forwarding of the report. Each state should annually thereafter. This ls the same date priorities, and then administered with an as required for the priority list of studies. increased degree of State participation. logically have this authority to certify the need for projects in its state. When considering projects for its priority Section 203-feasibility studies Further, the studies must conform to the list, each State is required to take into ac­ This section establishes a new, coordinated count the recommendations of any appro­ priorities established by each State to avoid priate river basin commission. system for authorizing and implementing pursuing a study that would most likely not studies of water resource projects. Under the achieve a high enough priority to be funded State priority lists will then be published present system, taking the Corps of Engineers for construction. by the WRC in the Federal Register by Sep­ as an example, a study is normally authorized tember 1 of each year. The State list shall de­ This section authorizes $150,000,000 an­ termine the order of funding for those water by a resolution adopted by either of the Con­ nually for these studies in the fiscal years gressional Public Works Committees. Then resources projects or portions of projects, 1982 through 1986. This money, to the extent that are implemented under the terms of this that study must wait in a line of several practicable, ls to be allocated by the WRC hundred other studies until it happens to title in each State during the following fiscal among the states on the same land-popula­ year. The list will have no effect on funding win a line-item appropriation. The states tion formula that ls used for construction have no role in that selection process, and of the traditional line-item program of con­ funds allocated under section 205 of this struction, although the information on State there is no effort to identify priority work. title. To overcome these inadequacies, this sec­ priorities should prove most valuable in as­ tion establishes a new system for initiating Section 204-project authorizations sisting the Congress in setting its own pri­ studies by the three Federal agencies covered This section carries forward the efforts orities for water projects. by this title: the Army Corps of Engineers, of this title to streamline the process for A State's priority list shall be deemed ap­ the Water and Power Resources Service, and judging water resources projects. It estab­ proved within 30 days of its publication in the Soll Conservation Service. The process lishes a more automatic procedure for au­ the Federal Register, unless the WRC deter­ stresses the State's role in the planning, to­ thorizing those new projects that would be mines that the list was developed without gether with a new emohasis on the identifica­ accomplished under this title. This proce­ an opportunity for a public hearing. tion of priorities. Under this approach, a dure does not affect projects that would be This ls the only way a priority list can be study is authorized automatically whenever built under the traditional line-item sys­ rejected by the WRC. If there was no public a State submits a request to the Federal tem. They would continue to be addressed hearing, the WRC shall immediately notify Water Resources Councll (WRC). Within 15 by Congress in periodic authorizing legisla­ the State. The State would then be pre­ days after it receives such a request, the tion. cluded from using its allocated funds under Council must publish notification of that Under this new approach, the WRC re­ this section until the public hearing has been request in the Federal Register, and then ceives a study report from a Federal water held and the list resubmitted and repub­ transmit the study request to whichever of agency. Within 30 days, the WRC must pub­ lished in the Federal Register. the three water resources agencies it deems lish a summary of the project in the Fed­ Projects may be implemented under this the most appropriate to undertake it. eral Register, together with the recommen­ section without; the present requirement that From any of these new study requests, a.s dations of the Federal water resources the project have a benefit-to-cost ratio well as the hundreds of such studies cur­ agency, and the Governor's certification, greater than one, as determined by the na­ which ls described in section 203. Ninety tional economic analysis. A Governor may rently authorized under the present system, determine that the project will provide other each State shall select those studies, or com­ days thereafter, the project as described in the report becomes automatically author­ significant benefits, including benefits for ponents of studies, that should be under­ environmental quality, social well-being, or taken and funded in any particular year. To ized for construction (or other form of im­ plementation), and thus available for in­ regional development, and place the project make this selection each state must hold a on the State's priority list. hearing, then submit to the WRC a list of clusion on a State's priority list for con­ those studies, in order of priority, which that struction and eligible for using the money This exception does not mean that the State wishes to have undertaken or com­ provided by section 205 of this title. benefit-to-cost ratio now used to analyze water projects ls to be abandoned. It must pleted by the appropriate Federal water There may occasionally be exceptions to continue to be computed by the Federal agency in that year. The list must be sub­ this process. The first involves those cases agency. But a State may use the ratio in mitted by August 1 of each year, two months where a study proposes a project in one addition to an evaluation of other significant before the start of the fiscal year. This sys­ State that might adversely affect the waters benefits which cannot be identified in dollar tem of funding studies replaces the existing of another State. If the Governor of the terms. line-item funding: the contructlon program other State objects in writing to the WRC The sum of $1 billion, authorized annually discussed later does not replace the on-going within the 90-day period, showing that the construction effort. under this section, is appropriated to the project would adversely affect the quantity WRC for allocation among the States. The The section also increases state partici­ or quality of water avallable in his State, allocation shall be under the terms of sec­ pation in another way. Before any study then the report and project are not author­ tion 206 for each of the fiscal years 1982 can be initiated. the State where protect ized ,automatically. In this situation the re­ through 1986. The WRC, under this system, lm?lementation would occur, must approve port must be submitted to the Congress, and has no discretion to withhold funds or delay the plan and term of study, and shall ap­ authorization could only occur by Act of project reports. The WRC shall act as a con­ point at least one employee to work on it in Congress. duit for money to the States. It should be 12640 CONGRESSIONAL RECORD-SENATE May 29, 1980 noted that the Committee has a.lso reported generation, saline water conversion, water­ one small community with respect to legislation (S. 1639) which would restructure basoo recreationi (including river-oriented air servi-rP.. the WRC, giving it an independent chair­ recreation), sediment control, water convey­ man. ance, water conservation, water resources The editorial is as follows: Money under this section shall be avail­ protection and restoration, safety of dams, or F'LYING A:uuv.,, 1,,;._H .. MUM able !or the detailed engineering work and related water purposes. This definition is a The deregulation o! commercial aviation the implementation of water resources proj­ broad one, and is intended to allow all three has injected a healthy dosage of free market ects currently authorized or authorized sub­ Federal water resources agencies to move into economics into the American skies, but other sequent to enactment of this title. It must single-purpose water supply projects, which !actors-energy, marketing strategies, hard­ be emphasized that these funds are available would be repaid under terms of the existing nosed business decisions, to name just only for projects that are undertaken at the Water Supply Act. Only the Water and Power three-have prompted the federal govern­ direction of a Federal water resources agency. Resources Service now has this authority. ment to draw up minimum protection plans This does not provide a block grant in the The term "State" means the various States !or small cities receiving airline service. Hap­ norm.al sense of the word; it is block alloca­ of the United States, as well as the District pily, it's probable that free-market econom­ tion !or spending on a discrete list of au­ of Columbia, Puerto Rico, the Virgin Islands, ics and not government rules will determine thorized water projects. Guam, Americallt Samoa, and the Trust Te·r­ airline service at Charlottesville-Albemarle In addition, this provision in no way alters ritories of the Pacific, except that the mini­ Airport for the foreseeable future. -the cost-sharing arrangements now in law. mum allocation of one-third of 1 percent of The federal Civil Aeronautics Board pr<>'­ They remain intact. the construction funds shall apply only to poses to guarantee Charlottesville-Albemarle This section includes a statement that the 50 States. airport with a minimum o! two daily non­ this title in no way limits the authorization Section 209-evaluation report stop flights to Washington National Airport or appropriation of other funds for specific This section directs the WRC to undertake and two weekend flights to Roanoke. That's water resources projects through other legis­ a worst-case assumption, of course, and it's lation, including projects authorized prior an evaluation of this demon.stration program, and to prepare other information on national pretty awful, considering that Piedmont Air­ to enactment of this Act or subsequent to lines, the largest air carrier serving here, this Act. water resources needs. After conducting pub­ lic hearings and consulting with the States, presently offers three nonstop flights and a Section 206-State allocation the WRC shall submit to Congress by Sep­ fourth, one-stop flight to Washington Na­ This section establishes the formula for tember 30, 1985, a detailed report to enable tional; two daily round-trip flights to New allocating the funds authorized by section the Congress to evaluate the future of the York City's La.Guardia Airport; and one daily 205. Sums appropriated under section 205 of water resources program in the final year of nonstop tlight apiece to Roanoke, Winston­ this title shall be allocated by the WRC the demonstration. Salem, N.C. and Shenandoah. The airline, among the States on the 15th day following The report will analyze the implementa­ using customer demand as a main assump­ the appropriation of such monies, in accord­ tion of projects and reports that are under­ tion, now provides three times the minimum ance with regulations that are promulgated taken under this demonstration effort, com­ number of seats, 160, that the CAB would by the WRC within one year of the enact­ pared with water projects are are implement­ require. ment of this title. ed under other authorities. The WRC is ex­ We aren't ridiculing the CAB, either. This The formula for distribution shall be one­ pected to give particular reference to the is one rare example of a government agency half in the ratio that the population of each 'time needed to implement projects, the effect which has earned the praise of market con­ State bears to the population of all the that the requirement for State priority lists servatives, airlines and passenger alike in States, and one-half in the ratio that the has on the merits of the projects studied and recent yea.rs. Its former chairman, Alfred area of each State bears to the area of all implemented in the five-year period, the ef­ Kahn, went down in bureaucratic history States, with two provisos. None of the 50 fect of greater State involvement in plan­ when he announced to a reporter that his States shall receive less than one-third of ning on the selectio·n. merit, and effective­ deepest ambition would be to preside over 1 percent of the sums allocated annually ness of projects, and the impact of removing the dissolution of the Civil. But it's true among all the States; and, second, the State the requirement that all projects produce that all airlines, from major air carriers and of Alaska shall receive the sum of $25,000,- national economic benefits that exceed their prime "short-haul" companies such as Pied­ 000, or 3 percent of funds appropriated, cost, together with an analysis of methods mont to the smaller commuter outfits, are whichever is lesser. Alaska shall not other­ to measure other objectives of water re­ vulnerable to the energy situation. Aviation wise be included in any computation under sources development. fuel costs have risen in five years from 13 this section. The WRC is also expected to submit any cents to 95 cents a gallon, making fuel the largest overhead category. Allocation is also The reason that a land-population for­ other recommendations on methods to im­ mula was selected is that area and popula­ plement an effective, national water re­ a major !actor. One Piedmont executive tion concentrations have a major impact on sources development process, which em­ characterizes fuel availability as a major the need !or water resources projects. Cer­ phasizes rapid implementation o! priority uncertinty, although current supplies are work. running slightly ahead o! demand. tainly, it would be dimcult to establish a Charlottesville-Albemarle Airport, like "needs" formula that would not turn into a Second, the WRC study shall include a most Virginia fac111ties, ls not in an im­ wish-list. It should be noted that one of the detailed estimate of the needs and ccsts re­ mediate danger of losing its present level studies required by Section 209 could result garding the national priorities for water re­ in the creation of a realistic needs formula. of service. But 1! anything, the CAB pro­ sources management through the year 2000, posal !or "minimum" service levels stands Sums allocated to a State become avail­ together with an estimate of the needs for as a caution that energy uncertainty and able for obligation on water resources proj­ cost-effective implementation of projects other !actors cannot be taken !or granted. ects on and after the date of the allocation, throughout the Nation by the year 2000, the either.e provided that the State's priority list has needs, over a 20-year period, in each State been approved. These sums shall remo.in for water resources projects, and, in coopera­ available for obligation through September tion with the Omce of Water Research and NATIONAL COUNCIL ON AGING 30, 1986, the conclusion of the demonstra­ Technology, a study of tfie best ways to I pleted, has been purchased by some of Homemaker-Home Health Aid Services, the fund was concerned about the in­ America's largest forward-looking corpo­ professional associations of doctors, activity of these workers after retireme t rations for the benefit of their employees. nurses, social workers, occupational and sought factual information about A second early effort which NCOA un­ therapists, and so forth; social and civic the effect of retirement programs which dertook in the 1950's has also given rise organizations such as Kiwanis, Soropti­ were just beginning to come into general to a succession of related efforts. mists, among many others; and churches use, as typified by the provisions of the In 1950, the Federal Bureau of Public and synagogues. In its early days, NCO'A. United Auto Workers' contract. Assistance asked the National Commit­ had special conferences for these volun­ Since there was little or no literature tee on the Aging, which was to become tary, nonprofit agencies and organiza­ in this area, NCOA chose the approach of NCOA, to assist the Bureau in carrying tions; later, they became active cospon­ a conference for representatives of in­ out a provision of the 1950 social se­ sors and participants in NCOA's annual dustry, labor, the academic community, curity amendments. The amendments and regional con.i:erc:ucc:.,. and government, as well as interested stated that residents of old-age institu­ In 1971, also under the auspices of citizens. The content for the conference tions could receive assistance payments NCOA, a group of 125 voluntary organi­ was based on three monographs: retire­ only when States had "standard-setting zations joined together to focus attention ment and health; employer and union authority". Few States had this author­ on the need for expanded in-home and plans; and economic problems. The con­ ity, and the Bureau sought guidance on supportive services which would provide ference findings were published under such standards. The Bureau had no older persons and their families with a the title "Criteria for Retirement." funds for grants to contracts, and the range of community-living options and A second grant from the McGregor NCOA Committee had to seek founda­ possible alternatives to institutional care. Fund enabled NCOA to employ a full­ tion support to carry out this request. This coalition is now composed of 225 time employment/retirement specialist The Frederick and Amelia Schimper major national agencies and organiza­ to carry out further explorations. A sec­ Foundation provided the needed funds tions, called National Voluntary Organi­ ond volume, "Flexible Retirement­ in 1951. zations for Independent Living for the Evolving Policies and Programs for In­ After 2 years of extensive study, re­ Aging ther older-worker history a.t the University of Chica.go, where you were named Preston and Sterling Morton of aging, with a substantial library, con­ programs-including the increased em­ Distinguished Service Professor, has been to sultants in special fields, and the capa­ ployment of older persons in those pro­ provide us the facts and insight from which bility to provide on-site as well as writ­ grams and increased civic participation to learn the lessons of our past. A Rhodes ten assistance to national and local or­ and involvement of the older poor. sc:-iolar at Ball1ol College in England, a ganizations in the fast-growing field of Funding from OEO also enabled NCOA barrister-at-law in London; a history pro­ the aging. It also provided NCOA with a to set up and staff offices in the ten Fed­ fessor at Harvard; a visiting professor at continuing capaibility to hold national universities in Rome, Japan, Puerto Rico, eral regions, resulting in the greater Paris, Switzerland, and England; a sought­ and regional -conferences so that infor­ availability of training and technical as­ after lecturer in many nations, you are mation and knowledge could be widely sistance to the regional, State and local truly a. scholar of the world. Your prolific, disseminated both through discussions OEO network. With the passage of the a.ward-winning publications have added and publications and to learn about new Older Americans Act of 1965, NCOA was greatly to the literature of American history. trends and emerging issues in regions, in a strategic position to act as a cata­ Numerous organ~zations, both public and States and localities, track them and de­ lyst to facilitate-to the extent possi­ private, have benefited from your selfless velop new research and planning ap­ service. For your knowledge of the past and ble-the development of cooperative re­ its importance to our future, we are indeed proaches when indicated. lationships between the two Federally­ honored to have you join us here today.e From its PoSition as a central source funded networks and help them, singly of information and knowledge, NCOA or jointly, maximize the use of other was able to establish its advocacy Federal, State and local public and pri­ SAGEBRUSH REBELLION position and to provide technical assist­ vate financial resources on behalf of older persons. •Mr. McCLURE. Mr. President, many ance and guidance to legislative com­ in the Western States are today engaged mittees and to a vartety of governmental It was in the above projects that the in what has become known as the "Sage­ departments as their interest in and re­ Ford Foundation grants increased the brush Rebellion." Arising as a grassroots sponsibility for better serving the grow­ ability of NCOA to function as a national effort to focus attention on the manage­ ing aging population increased. service organization. The OEO grants ment-and mismanagement-of our The grants from the Office of Economic expanded NCOA's knowledge and that Western public lands, the rebellion has Opportunity made it possible for of the field of aging in general about the alarmed many in this country who view NCOA to direct the Nation's attention to older poor, community service systems, its purpose as nothing but a land grab. the plight of the older poor-a "hidden., sources of funding and the capability While nothing can be further from the group attempting to live out extended of older persons to make a contribution truth, this notion emphatically char­ years of life with inadequate income, few and to take action and advocate on their acterizes the general lack of understand­ services and a sense of further and ever­ own behalf. ing of the "Sagebrush Rebellion" and threatening loss of self-respect because NCOA continues to build on its previ­ moreover, the lack of understanding of of an inability to "do for themselves." ous experiences and to explore new issues the entire century-long controversy sur­ NCOA program thrust during these and areas. For example, NCOA's Media rounding the use of our Western public years included medicare alert, which not Resources Center was established to lands. May 29, 1980 CONGRESSIONAL RECORD-SENATE 12643 Educating people of the history of this ous fur companies were headquartered In the meantime, there were two sets or public land use can perhaps do more to abroad or 1n the East. "Unsinkable Molly livestock users-those on deeded acres and Brown" took her gold and left Denver for those operating trespass operations in com­ begin to solve the problems focused on by Europe. They got in and got out. petition for grass on the public domain. The the "Rebellion" than any other single Those who remained were the descendants Taylor Grazing Act brought to a halt much action. It is in this light that the article, of the original overland pioneers brought of the trespass livestock operations. "Rangeland Controversy is of Long West by the lure of cheap land. The first Box speculates that much of the West Standing" was recently published in the major law giving free land to individuals could have been developed in a more orderly April 17, 1980 edition of the Idaho was the 1862 Homestead Act which offered fashion, had Congress listened to Powell; and Farmer-Stockman. Written by Mr. Gale 160 acres. Then came the Desert Entry Land he concludes that congressional inaction or Chambers, Editor of the Farmer-Stock­ Law of 1878. Next was the enlarged Home­ congressional mlsaction contributed heavily man, this historcial review provides just stead Act o! 1909, which allowed 320 acres, to the so-called overgrazing of the West. and it was closely tied to the Reclamation Politically, the West was poor and Western exactly the perspective that is necessary Act o! 1902, which limited ownership to 160 problems had low priority in the Congress; if we are ever to settle the "Sagebrush acres. the public lands were sometimes called Rebellion" for the benefit of all. In 1916, the Stockralslng Homestead Act "residue lands" and the then newly created Mr. President, I ask that Mr. Cham­ was passed to encourage settlement o! West­ Bureau of Land Management was often called bers' article be printed in the RECORD ern lands not suitable !or cultivation. It tha custodian "of the lands nobody wanted." and urge each of my colleagues-especial­ gave cattlemen 640 acres, an area supposedly From the 1933 passage of the Taylor Grazing ly those representing our Eastern large enough to carry 50 head o! cattle on Act until the NRDS lawsuit at Challis, the States-to take the time to read it. a sustlned yield basis. Passage o! the Taylor cattlemen and the BLM operated in an Grazing Act in 1933 then allowed cattlemen orphan situation with no one really caring The article follows: to lease public land !or grazing. !or the condition of the public rangelands RANGELAND CONTROVERSY Is OF LONG Range homesteads were grossly inade­ except themselves. Grazing cuts were im­ STANDING quate. Less than half of the stock raising posed, grazing fees increased and programs (By Gale Chambers) homesteads were patented during the first developed to restore the land to its maximum From watching the news, it appears that 10 years that the act was 1n effect, Box potential. No other groups, organizations or the man on the street doesn't really grasp reports. agencies were interested in the condition o! many of the problems confronting the public Powell reviewed the land disposal laws prior the public lands except the cattlemen, the land livestock grazer. Moreover, a cursory to 1878 and concluded that they were inade­ BLM and the grazing arms o! the U.S. Forest check of recent history indicates that the quate. Powell described the so-called pastu­ Service. man on the street has never understood the rage lands of the arid West thusly: "The Out of the 111 million bead of cattle ln problems of the Western livestock producer, irrigable and timber lands constitute but a the U.S., as of January 1, 1980, almost 20 especially if he uses public lands. There ap­ small fraction o! the arid region. Between mllllon head are located in the 11 Western pears to be a closer bond between the man on the lowlands and the highlands ts found a states or roughly 19 % . Of the 8.25 m1111on the street in Boise and the man on the street great body o! valley, mesa and low mountain sheep in the U.S. as of Jan. 1, 1980, some 4.2 in Boston. Both seem convinced that cattle­ lands ... usually they bear a scantly growth mllllon are found in the 11 Western states, men rip the public off. of grass, but these grasses are nutritious and or 50.6%. One-fourth of all the cattle on feed Thadis W. Box, range management profes­ valuable both !or summer and winter pastur­ are located in the 11 states of the West. sor and d.ean, College of Natural Resources, age." Texas isn't included in those Western states, Utah State University, in an honor lecture Powell concluded that these acres were since Texas ls not a public land state. Some and pamphlet, reviewed the original work valuable only ln large quantities. He called 10% of the total cattle in the U.S. a.re found done by explorer John Wesley Powell a cen­ !or units o! 2,560 acres. Even then small in Texas-as are 20% of the nation's deer. tury ago. Powell, in addition to exploring the amounts of irrigated land would be neces­ The cattle ranches that Powell foresaw a Colorado River, made several recommenda­ sary to sustain a viable operation, he thought. century a.go are there, but not in the form tions and observations to Congress in 1878 The Spanish had also recognized the need !or Powell envisioned when he referred to the concerning development of the Western large land grants. A Spanish land grant in "scanty but nutritious grass." states. Box's lecture serves as an excellent the Southwest !or a cattle operation was As result of passage of the BLM Organic reference from one century to the other. In generally one league square, or 4,428.4 acres. Act, or Federal Land Management Polley Act, between the lines emerge the story that "out­ Then, as now, Powell's suggestions were as it ls formally called, in 1976, and the NRDS slders"-those who think they know-have vigorously opposed. Famed editor Horace lawsuit at Challls, and two orphan groups­ played t he greatest role in Western develop­ Greeley !eared that residents on cattle the BLM and the cattlemen-are now at each ment, while those who actually live on the ranches would "become barbarians because other's throats in a confiict called the Sage­ land have been essentially bypassed. they would reside to far from the sound o! brush Rebellion. It was Powell who recognized livestock a church or school bell." Cattlemen resent being called rapers of the ranching's posslbllltles as a means of survival. As has always been the case, the interests range when in truth they are the only legiti­ He classified the arid lands of the West into of the people in the Eastern states domi­ mate survivors of a ravished era. three groups-timberlands, pasturage lands nated, and easterners continued to write the Cattlemen resent v;hat they regard as a and land suitable !or irrigation. Thadls Box public land laws o! the arid West. Powell's breach of faith. noted: "Few people understood or cared recommendations were rejected. Cattlemen resent interlopers who attempt about the peculiar conditions of the West. Box concludes that despite Powell's warn­ to utll1ze unproven theory in developing John Wesley Powell was an exception." range management programs. ings, the land laws of our country contrib­ Powell wanted to change land and water Cattlemen resent the insinuation that they laws to conform with the reallties o! nature. uted directly to the deterioration o! the arid lands. The amount o! land that a person do not know grass management. He called !or major reforms. He recognized Cattlemen resent passage of laws like the that people who would occupy the arid lands could acquire legally was insufficient to sup­ Wild Horse and Burro Act by Eastern inter­ as somewhat different from those who reside port a family. The laws therefore encouraged ests which they know are resulting ln dam­ ln the more humid regions of the world. settlers to convert what could have been age to the range. Box observes that people enter alrd lands good rangeland into poor cropland, and to Cattlemen resent accusations that they rip only when they are drawn there by adven­ overstock the range. The problem was com­ the public off when in fact they are and have ture or the promise o! economic gains. some pounded by the !act that there were no been the only user groups to pay all: annual o! today's observers call that "rape ruin and regulations governing use o! the public do­ fee. run." The descrlotlon may be acc~rate, but main, although there were cries from the In the past, the cattleman has used po­ the label has been pinned on the wrong class West to do something. Concern about the litical clout to implement range improve­ o! people. The "rape, ruin and run" label has public domain began to come from the Cali­ ments; now that clout is declining and he ls been wrongly attached to those who chose to fornia Wool Growers shortly after the con­ turning to the courtroom. stay in the arid lands and that sin has been clusion of the Civil War. As noted, Thadis W. Box observed that visited on the heads o! the progeny. Yet, one Western rule did prevail-the people only enter the arid lands o! the West The key to proper identification ts the Miners Law, insofar as water was concerned. when drawn by adventure or the promise o! word "run,'' and permanent residents do not Miners courts were generally the first legal economic gain. The cattleman has stayed run. The exploiters were those who raped, jurisdiction in the region and water was 1n the arid West in hopes that he can har­ ruined and r&.n back to their homelands tn appropriated in miner's inches on the theory vest renewable grass !or a living. The envi­ the humid regions of the world. o! "first in time, first in right." ronmental interloper enters for the same rea­ I! there has ever been a study made of Much o! the West became active "extra­ son-well-funded organizations feasting on the ravishers, it ts not immediately avail­ legally" in order to stay legal under the vari­ the remains of Powell's dream. able. So look back at historical sign posts. ous land laws. The borrowing o! names !or Chief Joseph o! the Nez Perce ln 1878 The famed XLT ranch in Texas ts an ex­ land filing purposes sometimes enabled pro­ spoke to an Interior Department Indian ample. The brand stood !or 10 counties ln moters to develop irrigation lands under the agent concerning the sale of land. "A man Texas and the outfit was owned by a Brit­ Desert Entry Act. Some states took advantage comes to me and says, 'Joseph, sell me your ish investment house. Engllsh investors also of the Carey Act to further develop 1rrigate<1 horses.' I say my horses suit me. Then my held title to various Idaho claims. The varl- land. neighbor says 'Take Joseph's horses, I will 12644 CONGRESSIONAL RECORD-SENATE May 29, 1980 sell them to you.' If our lands were sold, this railroad left in virtually all of that State debatable motion, appeal, or point of is how it was do~." is Burlington Northern. But a problem order, if the Chair entertains discussion Joseph, history records, rebelled. Now a also exists in my State, perhaps to a thereon and submits such points of order century later, the cowboy boot appears in a. lesser degree, but still important. Only to the Senate; and that the agreement sense to be following the Indian moccasin.e the Burlington Northern now operates be in usual form. all the way across the State of Washing­ Mr. BAKER. Mr. President, reserving RAILROAD MERGERS ton. The Union Pacific does have some the right to object, and I will not object, lines in the State but is not the dominant the reservation is for the purpose of e Mr. MAGNUSON. Mr. President, I am carrier the Burlington Northern is. telling the majority leader, as I have pre­ pleased that the distinguished chairman If the State of Montana's proposed viously done personally, that this rather of the Judiciary Committee has an­ railroad would operate a system of 1,400 extensive, complex agreement has been nounced today in Helena, Mont., that the miles and can be purchased from the cleared on this side with everyone we committee he chairs will be undertaking Milwaukee's trustee for $55,000,000, the know of who has expressed an interest a thorough review of national policy with incremental cost of acquiring an addi­ in the measure. and it is satisfactory to respect to railroad mergers, and in par­ tional 260 miles to the Seattle/Tacoma those who have done so. So there will be ticular, the Burlington Northern merger. area in Washington would seem justi­ no objection to the request of the Sena­ In light of recent reports that the De­ fied. It seems to me that it is important tor. partmentof Justice and the Interstate to preserve the rest of the Milwaukee Mr. ROBERT C. BYRD. I thank the Commerce Commission are investigating western line to Seattle and Tacoma and Senator. allegations of antitrust violations by the the lines east of Miles City to the Twin The PRESIDING OFFICER. Without Burlington Northern in connection with Cities, if, of course, the trustee is will­ objection, it is so ordered. the 1970 merger and its impact on the ing to sell them. It is my understanding The text of the agreement follows: Milwaukee Railroad, it seems clear that that the most serious rehabilitation Ordered, That when the Senate proceeds national policy on railroad mergers problems are on the Miles City /Morengo to the consideration of S. 2352 (Order No. should be reexamined. portion, not the rest of the western lines. 779), a. bill to increase the authorization for Legislation that has passed in the Sen­ So the total cost of purchasing the west­ the Council on Wage and Price Stability, ito ate and is now being considered in the ern lines and rehabilitating them would extend the duration of such Council, and for House would take considerable steps to­ be, from a relative standpoint, less than other purposes, debate on any e.mendment ward deregulation of the rail industry. the Miles City /Moreno line. (except an amendment to be offered by the Sena.tor from Virginia (Mr. Harry Byrd), re­ The potential anticompetitive impact of I encourage other public officials of the lative to reducing Senate Clerk-hire allow­ mergers would appear to be greater in a Northern Tier States to undertake co­ ance, on which there shall be 30 minutes; an situation where rates are no longer sub­ operative efforts to see if there is not amendment by the Senator from Arkansas ject to comprehensive regulation. I share some way that continuous, competitive (Mr. Bumpers), in the nature of a. perfecting the concern that we have not given rail service cannot be maintained across amendment to the Byrd 81Illendment, on enough consideration to rail merger pol­ the affected States. The State of Mon­ which there shall be 40 minutes; an amend­ icy in this new climate of deregulation, tana has been active in protecting its menlt by the Senator from Kansas (Mr. Dole). interests; it remains for the other States on economic sanctions, on which there sha.11 and there!ore I will follow closely the be 1% hours; an amendment by the Senator work of the Judiciary Committee and to do the same. from Colorado (Mr. Armstrong), relative to participate in the consideration of any In summary, Mr. President, it is vitally the Credit Control Act, on which there shall legislative proposals should they be de­ important that the integrity of a trans­ be 1 hour; and two amendments by the veloped. continental system between the Twin Sena.tor from Pennsylvania. (Mr. Heinz) " Nos. As my colleagues know, I have been Cities and Puget Sound be preserved. 1777 and 1778, on each of which there shall actively involved for the past year in ef­ Only in this manner can the strong pub­ be 1 hour), shall be limited to 30 minutes, to forts to preserve competitive rail service lic interest in rail competition in this be equally divided and controlled by the part of the country be maintained.• mover of such and the manager of the bill; across the Northern Tier States. Last wnd debate on any debatable motion, appeal, November, Congress enacted the Mil­ or point of order which is submitted or on waukee Railroad Restructuring Act. De­ which the Chair entertains debate shall be spite that legislation, we have seen the TIME LIMITATION AGREEMENT­ S. limited to 20 minutes, to be equally divided demise, and now the elimination, of the 2352 and controlled by the mover of such and Milwaukee Railroad in the States of Mr. ROBERT c. BYRD. Mr. President, the manager of the bill: Provided, That in Washington, Idaho, and most of Mon­ I have a time limitation agreement the event the manager of the bill is in favor tana. On two occasions the Interstate which I will present to the Senate. of any such ·amendment or motion, the time in opposition thereto shall be controlled by Commerce Commission turned down Mr. President, I ask unanimous con­ the minority leader or his designee: Provided plans presented by employees and ship­ sent, with the understanding that the further, That no amendment that is not pers of the Milwaukee that, if they had bill will not be called up and made the germane to the provisions of the said blll been approved, would have resulted in a pending business before Monday, that at shall be received. successor to the present Milwaukee that such time as Calendar Order No. 779, Ordered further, That on the question of would have been able to compete with S. 2352, the Council on Wage and Price final passage of the said blll, debate shall be the Burlington Northern. I strongly sup­ Stability bill, is made the pending busi­ limited to 2% hours, to be dlivided and con­ trolled, with 1 hour to the Senator from ported the new Milwaukee Lines plan ness before the Senate, there be a time Wisconsin (Mr. Proxmire). 1 hour to the and was greatly disappointed in this re­ agreement thereon as follows: Senator from Pennsylvania (Mr. Heinz), sult. I continue to believe that a solution Two and a half hours on the bill, to be and 30 minutes to the Sena.tor from Oklaho­ should be sought that provides this es­ equally divided between Mr. PROXMIRE ma (Mr. Bellman): sential competition. My colleagues from and Mr. HEINZ, with 30 Ininutes of the Provided, That the said Sentors. or either the Midwest should not be misled into 2 % hours allotted to Mr. BELLMON for of them. may, from the time under their con­ believing this is simply a Western prob­ his control; provided further that there trol on the passage of the said bdll, allot ad­ lem. On March 19 the ICC also rejected be 30 minutes, equally divided on any ditional time to any Senator during the con­ sideration of any amendment, debatable mo­ the trustee's reorganization plan that amendment; 30 minutes, equally divided, tion, appeal, or point of order. would have retained operation of the on an amendment by Mr. HARRY F. BYRD, Midwest core area. JR., to reduce the Senate clerk-hire al­ Mr. ROBERT C. BYRD. Mr. President, I note that the State of Montana has lowance; 40 minutes, equally divided, on I suggest the absence of a quorum. proposed an alternative plan that would an amendment by Mr. BUMPERS which The PRESIDING OFFICER. The clerk run a railroad from Miles City in the ex­ will be a perfecting amendment to the will call the roll. treme part of Montana to Morengo, amendment by Mr. HARRY F. BYRD, Ja.; Wash., where a connection would be 1 % hours, equally divided, on an amend­ The legislative clerk proceeded to call made to the Union Pacific down the Co­ ment by Mr. DoLE on econoinic sanc­ the roll. lumbia River to Portland. tions; 1 hour, equally divided, on an Mr. ROBERT c. BYRD. Mr. President, I applaud the efforts of Senators amendment by Mr. ARMSTRONG on the I ask unanimous consent that the order MELCHER and BAUCUS, Governor Judge Credit Control Act; 1 hour each on two for the quorum call be rescinded. and others from Montana as I realize amendments by Mr. HEINZ, amendment The PRESIDING OFFICER. Without they have a serious problem if the only Nos. 1777 and 1178; 20 minutes on any objection. it is so ordered. May 29, 1980 CONGRESSIONAL RECORD-SENATE 12645 ORDER OF PROCEDURE nouncement, but when I promised the cause the House conceivably could act Mr. ROBERT C. BYRD. Mr. President, commitment early in the session it did on the budget resolution this evening and the Senate is awaiting House action on carry with it the condition that barring send it over earlier. I have just com­ the extension of the debt limit. The debt some emergency matter the Senate would pleted telephonic conversation with Mr. limit law expires at midnight Saturday. not have rollcall votes on Friday during HOLLINGS who, I believe, would like to go The House is acting on the debt limit at May. But I consider this an emergency with the budget con!erence tomorrow if this moment. When the House sends that and hope my colleagues will understand it is available. message to the Senate, the Senate will the necessity. I would suggest that the Mr. BAKER. Mr. President, I thank take up the debt limit. I have every ex­ cloakrooms proceed to alert our col­ the majority leader. Ten will be satisfac­ pectation of rollcall votes yet today, and leagues that rollcall votes are expected tory to us. also the gloomy expectation that there this evening and tomorrow. may be rollcall votes tomorrow in con­ ORDER FOR RECESS TODAY UNTIL nection with the debt limit extension. I RECESS FOR 1 HOUR 10 A.M. TOMORROW would urge that our respective cloak­ rooms get the word out to Senators .so Mr. ROBERT C. BYRD. Mr. President, Mr. ROBERT C. BYRD. Mr. President, that they will know about the forecast if the distinguished minority leader has I ask unanimous consent that the Sen­ on this. It is not within the control of nothing further, I ask unanimous con­ ate stand in recess with the understand­ the Senate leadership. We simply have to sent that the Senate stand in recess for ing of my colleagues that there may very face up to the situation as it is. I there­ 1 hour. well be rollcall votes tomorrow. I hope ! ore urge that Senators stay around. There being no objection, the Senate, that the Senate will be in a position to Mr. BAKER. Mr. President, will the at 5: 17 p.m. recessed until 6: 17 p.m.; take up the conference report on the Senator yield to me? whereupon, the Senate reassembled when first concurrent budget resolution and/ or Mr. ROBERT C. BYRD. Yes. called to order by the Presiding Officer the debt limit extension if the House Mr. BAKER. Mr. President, I, too, am (Mr. MATSUNAGA). messages either of those over during the concerned that we may be in for a while The PRESIDING OFFICER. The evening or tomorrow, in either of which yet tonight to try to take care of this Chair, in his capacity as a Senator from case there will undoubtedly be one or matter. Notwithstanding the policy of the State of Hawaii, suggests the absence more rollcall votes. I wish that I knew the majority leader to have no record of a quorum. more to say at this point which would votes on Friday, except in cases of emer­ The clerk will call the roll. enable our colleagues to program their gency, I intend to put the Republican The assistant legislative clerk proceed­ weekend, but I cannot. I cannot say any Members of the Senate on notice by hot­ ed to call the roll. more. I do not know any more to say. line message, which we will send from Mr. ROBERT C. BYRD. Mr. President, Therefore, Mr. President, I ask unani­ our cloakroom now, that the situation in I ask unanimous consent that the order mous consent that when the Senate com­ the House is uncertain, that we may be for the quorum call be rescinded. pletes its business today, it stand in re­ in late tonight or indeed there may be The PRESIDING OFFICER. Without cess until the hour of 10 o'clock tomor­ votes on tomorrow. objection, it is so ordered. row morning. I would rather expect that it would be The PRESIDING OFFICER. Without the preference of most Members on this objection, it is so ordered. side, given the uncertainty of action by STATUS OF BUDGET AND DEBT Mr. ROBERT C. BYRD. Mr. President, the House, to go ahead and plan on rec­ LIMIT LEGISLATION I suggest the absence of a quorum. ord votes on Friday, if necessary. As far Mr. ROBERT C. BYRD. Mr. President, The PRESIDING OFFICER. The clerk as I am concerned, if the majority leader the joint leadership has been monitor­ will call the roll. feels it is necessary to do that, I feel we ing the House activities, and it appears The assistant legislative clerk proceed­ would probably have a good attendance at this time that the House will not be ed to call the roll. on Friday, and many would prefer to do in a position to send either the confer­ Mr. ROBERT C. BYRD. Mr. President, that rather than stay until late hours of ence report on the budget resolution or I ask unanimous consent that the order this evening in order to accomplish that the debt limit extension to the Senate for the quorum call be rescinded. purpose. today in time for any action by the The PRESIDING OFFICER. Without Mr. ROBERT C. BYRD. I would pre­ Senate. objection, it is so ordered. f er to do that, but it may be necessary I suggest that our respective cloak­ Mr. ROBERT C. BYRD. Mr. President, to do both. I anticipate that if the debt rooms put the word out to our colleagues is the Senate still in morning business? limit extension measure is amended, and that there will be no rollcall votes to­ The PRESIDING OFFICER. The Sen­ it probably will be from the indications day, but to hold themselves in readiness ate is still in morning business. at the moment, I would also then expect for action on tomorrow on either the Mr. ROBERT C. BYRD. I thank the the President to veto the measure, al­ debt limit extension or the conference Chair. though I have not yet been assured of report on the first concurrent budget that by the President. If the President resolution, or both. Here, again, it would ORDER FOR THE CHAIR TO RECESS should veto the measure, it would go back depend upon what the House does, and THE SENATE UNTIL 10 A.M. to the other body for the override effort, when. TOMORROW in which case it would not get back to The situation has been such in the the Senate until some time tomorrow. House that it is impossible to determine Mr. ROBERT C. BYRD. Mr. President, In view of all the circuitous route that what or where we shall be going tomor­ I ask unanimous consent that when Mr. such a measure would have to travel, I row, so I think we just have to keep our­ ROTH completes his statement on the in­ am afraid, I say to the distinguished mi­ selves in readiness. By early tomorrow, troduction of a bill, the Chair recess the nority leader, that it might be in the best it should become clear as to what our Senate under the order until 10 o'clock interests of the Senate to act on the situation V.·ill be. tomorrow morning. measure this evening so that the veto I yield to the distinguished minority The PRESIDING OFFICER. Without process and the override of it could pro­ leader. objection, it is so ordered. ceed as early tomorrow as possible. Mr. BAKER. Mr. President, I thank