January 25, 1983 EXTENSIONS OF REMARKS 297 EXTENSIONS OF REMARKS H.R. 5: THE OCEAN AND COAST­ pansion of our offshore oil and gas and are not authorized to tax or gener­ AL RESOURCES MANAGEMENT program. ate revenues from Federal leases on AND DEVELOPMENT BLOCK Proceeds from the fund would be ap­ the OCS. H.R. 5 would go a long way GRANT ACT plied to further the purposes of the toward correcting this inequity and national sea grant college program would require considerably less, in HON. WALTER B. JONES and to provide block grants to coastal terms of money and proportion, than OF NORTH CAROLINA States <including Grant Lakes States that provided from inlar.d mining on IN THE HOUSE OF REPRESENTATIVES and U.S. territories). These grants public lands and from timber sales in would permit continuation and en­ national forests. Thursday, January 6, 1983 hancement of State programs for Finally, it should be noted that the • Mr. JONES of North Carolina. Mr. coastal management, coastal energy strong support for this legislation in Speaker, on the opening day of this impact, fishery and natural resource the 97th Congress was reflected not Congress, my colleague from New programs. only in the bill's 56 cosponsors and the Hampshire, Mr. D'.AMoURs and I intro­ The benefits of offshore oil and gas strong vote on the floor of the House, duced H.R. 5, a bill to establish the development are spread nationally but also in the endorsement of at least ocean and coastal resources manage­ while the impacts are disproportion­ 20 individual Governors and the sup­ ment and development fund. This leg­ ately felt in the adjacent coastal port of the New England Governor's islation would establish a framework States and localities. The fund estab­ Association, the Western Governor's for basing State ocean and coastal re­ lished by our bill would provide coast­ Association, the Southern Governor's source management block grants on al States with fiscal resources ade­ Association, the National Governor's an extremely modest proportion of quate to prepare for and address the Conference, and the National Associa­ Federal revenues from the develop­ impacts that inevitably accompany tion of Attorneys General. There is ment of Outer Continental Shelf mineral extraction activities close to also broad support for this concept <OCS> oil and gas resources. It will their coastal areas. Currently, this ca­ from local governments, private asso­ serve the dual purpose of preserving pacity for preparedness is being ciations, and individuals. valuable ocean resources and provid­ threatened with extinction as a direct Again, I would like to reiterate the ing an incentive for coastal States to result of the administration's proposed strong support of the Committee on cooperate with expanded OCS oil and termination of important ocean and Merchant Marine and Fisheries for gas development. coastal programs. The Nation's policy this legislation and to indicate my in­ The bill we introduced January 3 is of accelerating OCS development is tention to bring it to the full House identical to H.R. 5543, as passed by the one of which I am strongly supportive. for consideration early in this first ses­ House on September 29, 1982, by a However, this policy should not be ac­ sion of the 98th Congress. Also, I vote of 260-134. Given the press of companied by the elimination of pro­ pledge myself to working closely with other business during the post-election grams that support the wise manage­ the other body and with the adminis­ session of the 97th Congress, it was ment of our ocean margins. By failing tration to seek a reasonable accommo­ not possible for the other body to con­ to recognize the Federal-State part­ dation of all interests concerned and sider the legislation. nership required for accelerated OCS to fashion a final legislative proposal However, three similar bills had development, these inconsistent poli­ that will receive broad and bipartisan been introduced in the Senate and cies threaten to inhibit the OCS leas­ endorsement from the full Congress.e hearings were held before the Senate ing process by promoting conflict and Committee on Commerce, Science and litigation. Transportation. It is expected that the H.R. 5 should also be viewed in the MORATORIUM NEEDED TO HALT Senate will act expeditiously on this context of the question of equity be­ SOCIAL SECURITY WITHDRAW­ proposal during the 98th Congress. In tween coastal States and those with ALS the Committee on Merchant Marine large amounts of Federal land within and Fisheries, we intend to move as their borders. Under the Mineral HON. MARIO BIAGGI quickly as possible in considering the Lands Leasing Act of 1920, 50 percent OF NEW YORK bill and reporting it to the House. of the Federal mineral leasing receipts IN THE HOUSE OF REPRESENTATIVES H.R. 5 would establish a fund that is are paid directly to the States within based on only the increase in Federal which mining occurs and under the Tuesday, January 25, 1983 OCS revenues that result from the ac­ national forest receipts program, 25 e Mr. BIAGGI. Mr. Speaker, today I celeration of our offshore program. percent of all proceeds from the sale am reintroducing legislation designed Specifically, fiscal year 1982 would be of timber from national forests is paid to halt a growing problem which is the base year on which only 10 per­ to the State within which those Feder­ draining millions of dollars from the cent of the growth in revenues after al lands are located. In many other social security trust funds each year­ that year would form the calculation cases, an additional 40 percent is re­ the withdrawal of State, local, and for the fund-but with a ceiling of turned indirectly through a reclama­ nonprofit organizations from the $300 million. tion fund. Equally important, such social security system. My bill would The administration's estimate for States have been granted the author­ impose a 6-year moratorium on all Federal OCS revenues in fiscal year ity to place a tax upon the severence withdrawals from the system and 1983 is some $15 billion. Thus, the of mineral resources from Federal should be viewed as a stopgap measure $300 million established by the legisla­ lands. State and local governments to effect stability in our Nation's larg­ tion would represent only 2 percent of also receive compensation for property est retirement program. such revenues-an extraordinarily taxes lost as a result of Federal owner­ The need for this legislation is clear moderate investment for the protec­ ship of lands. and has been made even more dramat­ tion of our State coastal management On the other hand, coastal States re­ ic this week after the announcement and fishery programs and for the ex- ceive no direct share of OCS revenues that the city of Los Angeles has pulled e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 298 EXTENSIONS OF REMARKS January 25, 1983 out its 55,000 workers from the system minate coverage, it can virtually do so ice to make available any such infor­ worth $143 million in contributions overnight by closing its books on mation to the Secretary of Health and each year. In all, at the end of 1982, Friday and reopening as a new, non­ Human Services. While all organiza­ 100 local governments terminated par­ profit entity on Monday. Such a prac­ tions will be required to stay in the ticipation representing 76,000 contrib­ tice allows these entities to circumvent system, this disclosure provision will utors to the system. The situation if the 2-year waiting period required in insure that the Social Security Admin­ further exacerbated by the fact that the law and renders it virtually impos­ istration is made aware of all entities an added 400 governmental units, 456 sible to track participants in the which have notified the IRS of their hospitals-with 417,000 employees­ system. In 1981, the Social Security intent to withdraw from the system to and 499 nonprofit organizations have Administration estimates that non­ date. notified the agency of their intent to profits paid about $5 billion into the Finally, this bill includes a sunset withdraw within the next 2 years-as OASI and DI trust funds. To allow provision of January 1, 1990, and also required by law. It has been estimated this level of participation without in­ requires the Secretary of HHS to by both the Social Security Adminis­ suring the futures of 350,000 employ­ submit a report to Congress, 1 year tration and the Congressional Budget ees who are making half of these con­ prior to that date, of recommendations Office that these terminations will tributions is clearly unconscionable. as to whether this 6-year freeze on cost the system at least $500 million in The problem of social security with­ withdrawals should, in fact, be perma­ the next 2 years. Clearly, at a time drawals is especially pronounced in nent. The policy rationale which pro­ when we are seeking ways to bring sol­ nonprofit hospitals. According to the vided for optional coverage by State, vency to the system, stopping this Social Security Administration, 3.8 local, and nonprofits was sound when drain on the system should receive million of the 4. 7 million workers in it was enacted in 1950. However, 1982 high priority. nonprofit facilities are enrolled in is not 1950 and the social security I also wish to note that stopping this social security Of the 2.3 million in challenge before us is unmistakably "opting out" provision in current law nonprofits/hospitals some 1.6 million clear.