E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 105 CONGRESS, SECOND SESSION Vol. 144 WASHINGTON, TUESDAY, JULY 28, 1998 No. 103 Senate The Senate met at 9:45 a.m., and was the Senate may proceed as a body to move to passage of this legislation, and called to order by the President pro the Rotunda to pay our proper respects then go to an appropriations bill. I tempore (Mr. THURMOND). to the two fallen U.S. Capitol police- yield the floor. men and their families. The Senate f PRAYER will recess again today from 2:45 p.m. RESERVATION OF LEADER TIME The Chaplain, Dr. Lloyd John until 3:45 p.m. so Members may attend Ogilvie, offered the following prayer: the memorial service for these two he- The PRESIDING OFFICER (Mr. Gracious Father, whose mercies are roes. ENZI). Under the previous order, the new every morning, we praise You for With regard to the Senate's schedule leadership time is reserved. Your faithfulness. We exalt You with a this morning, the Senate will resume f consideration of the credit union bill, rendition of the words of that wonder- with 15 minutes for debate remaining CREDIT UNION MEMBERSHIP ful old hymn, ``Great is Your faithful- on the Shelby amendment regarding ACCESS ACT ness! Great is Your faithfulness! Morn- small business exemptions. At approxi- The PRESIDING OFFICER. Under ing by morning, new mercies we see; all mately 10 a.m; the Senate will proceed the previous order, the Senate will now we have needed Your hand has pro- to vote on, or in relation to, the Shelby resume consideration of H.R. 1151, vided. Great is Your faithfulness, Lord, amendment. Following that vote, it is which the clerk will report. unto us!'' As we begin this new day, we the hope that the Senate will move The assistant legislative clerk read thank You for Your faithfulness to our quickly to final passage of the credit as follows: Nation throughout history. And one of union legislation. A bill (H.R. 1151) to amend the Federal the ways You express that now is For the remainder of today's session, Credit Union Act to clarify existing law with through the labors of the women and the Senate may begin consideration of regard to the field of membership of Federal men of this Senate. May they experi- the Treasury appropriations bill, credit unions, to preserve the integrity and ence fresh assurance of Your faithful- health care legislation, or other appro- purpose of Federal credit unions, to enhance ness that will renew their faithfulness priations bills or conference reports as supervisory oversight of insured credit unions, and for other purposes. to be God-centered, God-honoring, God- available and after consultation with guided, God-empowered leaders. the leadership on both sides of the The Senate resumed consideration of In the quiet of this moment, we ask aisle. Therefore, Members should ex- the bill. You to help us experience Your grace pect votes throughout today's session Pending: in the midst of the grief of this day. We and into the evening as the Senate at- Gramm amendment No. 3336, to strike pro- ask You to be with us as we honor the tempts to complete its work prior to visions requiring credit unions to use the funds of credit union members to serve per- memory of Officers Chestnut and Gib- the August recess. son. Especially, Lord, be with their sons not members of the credit union. (By 44 I want to emphasize something here, yeas to 50 nays (Vote No. 236), Senate failed families and with their fellow officers, too. The plan has been we would spend to table the amendment. that they may know that You are the Friday afternoon on the credit union Shelby amendment No. 3338, with respect Lord of life and eternity. Through our bill, and we would have votes Monday to exempting certain financial institutions Lord and Savior. Amen. afternoon late, and this morning we from the Community Reinvestment Act of f would vote on the Shelby amendment 1977. and go to passage. I understand the AMENDMENT NO. 3338 RECOGNITION OF THE MAJORITY managers are not sure they are ready The PRESIDING OFFICER. Under LEADER to do that, or other people are showing the previous order, there will now be 15 The PRESIDENT pro tempore. The up with amendments. I discourage minutes equally divided prior to a mo- able majority leader, Senator LOTT of amendments. Senators had an oppor- tion to table Shelby amendment No. Mississippi, is recognized. tunity Monday afternoon and Friday 3338. Mr. LOTT. Thank you very much, afternoon to offer amendments, and to Mr. SHELBY addressed the Chair. Mr. President. show up now and say, ``Oh, by the way, The PRESIDING OFFICER. The f I have another amendment,'' I think, is Chair recognizes the Senator from Ala- not helpful in trying to get done what bama. SCHEDULE we agreed to and move our schedule Mr. SHELBY. Mr. President, does Mr. LOTT. Mr. President, I remind along. this side have 71¤2 and a half minutes all Senators that we will be recessing Let's have the final debate on the and the other side 71¤2 minutes? That is from 11:55 a.m. until 12:15 p.m. so that Shelby amendment and let's vote and my understanding. · This ``bullet'' symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. S9089 . S9090 CONGRESSIONAL RECORD Ð SENATE July 28, 1998 The PRESIDING OFFICER. That is mandated credit allocation on to credit fact that we need to do something to correct. unions, which I think is good. help that segment of our community Mr. SHELBY. Mr. President, there If the Senate votes to table the small which is so vitalÐthe community has been a lot said about the amend- bank exemption from CRA, the Senate bank. ment that we have offered to exempt will make a very hypocritical policy Mr. REED. Mr. President, I rise in small banks from the Community Re- statement to the American people, I strong opposition to the Shelby amend- investment Act. A popular mantra is believe, saying, essentially, that we do ment to create a small bank exception that if the small bank exemption not support the expansion of mandated to the Community Reinvestment Act. amendment passes, President Clinton credit allocation and regulatory burden Mr. President, the Community Rein- will veto the bill; therefore, the Senate on credit unions, but, Mr. President, on vestment Act requires financial insti- should not take up this amendment. I the other hand, we do support the man- tutions to meet the credit needs of have also been told this is not the time dated credit allocation and regulatory local communitiesÐincluding low and or the place to take up an amendment burden on small community banks. moderate income areasÐconsistent to CRA. But I believe, Mr. President, Now that is not what we call competi- with safe and sound lending practices. that such assertions are not valid. tive equity. Unfortunately, many proponents of H.R. 1151 essentially eliminates the I believe the worst part about this in- the Shelby amendment have argued common bond requirement, allowing consistent policy is that consumers are that this obligation is tantamount to credit unions to serve virtually any the ones who bear the brunt of the cost government mandated credit alloca- and every group now. of the Community Reinvestment Act. tion. Nothing could be further from the In addition, H.R. 1151 explicitly au- The CRA tax on banks only gets passed truth. Neither the Act nor the regula- thorizes credit unions to perform com- on to the consumer. While the inten- tions specify the number of loans, the mercial lending activities. In doing so, tion, Mr. President, of the Community type of loans, or the parties to CRA this Congress is overturning a histori- Reinvestment Act may have been to loans. To the contrary, CRA relies on cal Supreme Court decision and the law help consumers, in practice I believe it market forces and private sector inge- of the land for about 60 years. While ex- hurts them. CRA is bad for consumers. nuity to promote community develop- panding the role of credit unions, we CRA is, I believe, bad public policy. ment lending. This is evidenced by the continue to protect the tax exemption Contrary to what opponents of the tremendous flexibility that financial credit unions now enjoy. amendment would have you believe, institutions have in satisfying CRA. Small community banks, Mr. Presi- the small bank exemption would not For example, loans to nonprofits serv- dent, however, serve the local commu- gut CRA. Banks with less than $250 ing primarily low- and moderate-in- nity but have to compete with the million in assets account for less than come housing needs; loans to financial higher cost of funds, a higher regu- 12 percent of bank assets nationwide. intermediaries such as Community De- latory burden, and of course a consider- This is a vote for small community velopment Financial Institutions; and able tax burden. While we increase the banks in America. I think it is time to loans to local, state, and tribal govern- competitive advantage of small bank do it and the time is now. ments may qualify for CRA coverage. competitors in this bill, we do nothing Mr. D'AMATO addressed the Chair. Moreover, loans to finance environ- to help small banks compete on a more The PRESIDING OFFICER.