[Congressional Record Volume 140, Number 1 (Tuesday, January 25, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]
[Congressional Record: January 25, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. McCONNELL:
S. 1787. A bill to amend the Internal Revenue Code of 1986 to provide
for the tax-free treatment of education savings accounts established
through certain State programs, and for other purposes; to the
Committee on Finance.
the education trust fund savings act
Mr. McCONNELL. Mr. President, I rise today to introduce the
Higher Education Trust Fund Savings Act, a bill that will help American
families defray the rapidly increasing costs of higher education. I
find it alarming that education costs have become the greatest barrier
for students who want to attend college.
Mr. President, there isn't a corporate or civic leader in this
country who will dispute the fact that this Nation's future success is
dependent on the education of our children today. Not only do we need
to train our future scientists and business leaders, but we need to
provide service personnel and traditional blue collar occupations with
skill development. Vocational training is critical to our ability to
rapidly adapt to technological developments which directly affect the
competitiveness of U.S. businesses.
I am disappointed to report, however, that for many families an
affordable education is unrealistic. Students are forced to burden
themselves with tens of thousands of dollars in loans or aid. In fact,
in 1990, 56 percent of all students accepted financial assistance and
the average was higher for minority students.
As a parent of two college students, I know only too well the costs
associated with higher education. I was forced to take out a second
mortgage on my home in order to help meet the costs of their education.
Mr. President, I know that I am lucky compared to some. It is not
uncommon for parents to take a second job in order to help meet the
tuition and financial obligations. Many times, students are restricted
to attending part time or are forced to put off their education
altogether due to financial difficulty.
Since 1992, Kentucky students have faced two tuition hikes. The two
largest public universities have been forced by budgetary pressures to
increase tuition by 11 percent; and community college students were
asked to pay a 14-percent increase. Lance Dowdy, the student government
president at the University of Kentucky, hit the nail on the head when
he said, ``Public education is starting to look like a privilege.'' We
cannot afford to let this happen.
This bill will amend the Tax Code to maximize investment in State-
sponsored education savings plans. It will permit an individual's
investment in a State-sponsored savings program to be exempt from
Federal taxation when the earnings are used to meet educational costs.
The contributions would be after-tax dollars, and any earnings that
are not used for educational purposes would be subject to taxation at
the individual's current tax rate.
In an effort to encourage States to create their own savings plan,
this bill also would exempt the State organizations that administer
such programs from Federal taxation. This would reduce administrative
expenses, thus increasing investment in education. Thirty-four States
have already established some form of education savings plan for their
residents.
This legislation will not force States to establish their own
education trust fund or saddle a State with additional costs
involuntarily. It merely provides States with an opportunity to invest
in the future. I am confident that upon passage of this bill, more
States will seek to establish a savings vehicle for their residents.
Lastly, this legislation would exempt from Federal taxation,
corporate and individual endowments to the trust fund. This provision
is unique because it also provides an incentive for corporations to
help finance the education of the next leaders of this country. The
added investment will boost the return to the students, thus further
reducing the cost of education.
In Kentucky, there is already a State-sponsored savings plan in
effect and working quite well. However, there are several Federal tax
concerns that have impeded the growth and full utilization of this
program. I have worked one-on-one with the Kentucky Higher Education
Assistance Authority in drafting this legislation, and I believe we
have a winning package that will benefit education and students alike.
I hope my colleagues will join me in supporting this
legislation.
______
By Mr. GRAMM:
S. 1788. A bill to authorize negotiation of free trade agreements
with the countries of the Americas, and for other purposes; to the
Committee on Finance.
the american free-trade act
Mr. GRAMM. Mr. President, today I am introducing the American Free-
Trade Act. This legislation builds on our success with the North
American Free-Trade Agreement. It sets up a procedure whereby the
President would begin negotiations with any or all of the countries of
the Western Hemisphere with a goal of achieving a free-trade area from
the Arctic to the Antarctic.
The bill has special procedures to deal with Cuba. It says that once
Cuba is liberated from Castro, once there is a constitutionally
guaranteed democratic government, once private property rights have
been restored and protected, once Cuba has a convertible currency, once
free speech and free press are protected, and all the political
prisoners are released, then we could begin at that point to negotiate
with Cuba. Indeed, priority would be given to our negotiations with a
free Cuba.
I believe that we are going to create jobs, growth, and opportunity
in North America with NAFTA. I think these are benefits that can and
should be extended to all the Americas, so that any person working in
any hut in any village in the Americas could produce any good or
service and sell it anywhere else.
This would be a great act that would promote freedom and democracy in
the Americas, that would promote prosperity. It is a very important
goal, and I am happy to introduce this bill today.
This may sound visionary to some people. Five years ago, when I was
talking about a free-trade agreement with Mexico and with Canada, many
thought that I sounded too visionary. Today that vision is the law of
the land.
Mr. President, I ask unanimous consent that a summary of the
American Free-Trade Act be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
The American Free-Trade Act
summary
I. The President is directed to undertake negotiations to
establish free trade agreements between the United States and
countries of the Western Hemisphere. Agreements may be
bilateral or multilateral.
II. The President, before seeking a free trade agreement
with Cuba under the Act, would have to certify (1) that
freedom has been restored in Cuba, and (2) that the claims of
U.S. citizens for compensation for expropriated property have
been appropriately addressed. The President could make the
certification that freedom has been restored in Cuba only if
he determines that--
A. constitutionally guaranteed democratic government has
been established in Cuba, with leaders freely and fairly
elected;
B. private property rights have been restored and are
effectively protected and broadly exercised;
C. Cuba has a convertible currency;
D. all political prisoners have been released; and
E. free speech and freedom of the press are effectively
guaranteed.
If the President certifies that freedom has been restored
to Cuba, priority will be given to the negotiation of a free
trade agreement with Cuba.
III. Congressional fast track procedures for consideration
of any such agreement (i.e. expedited consideration, no
amendments), are extended permanently.
______
By Mr. BUMPERS:
S. 1790. A bill entitled ``the National Peace Reauthorization Act'';
to the Committee on Energy and Natural Resources.
national peace reauthorization act
Mr. BUMPERS. Mr. President, in 1987 Congress authorized and
the President signed into law legislation to authorize the creation of
a National Peace Garden in Washington, DC. The purpose of the Peace
Garden is to honor the commitment of the people in the United States to
world peace. This unique monument will not only honor past achievements
but help inspire future efforts for peace--both in this country and
throughout the world.
Unfortunately, construction of this memorial was held up for several
years because of disagreements over its proposed design. As many of my
colleagues know, getting a design concept approved for a memorial is
often a long and difficult process and requires the approval of both
the Commission of Fine Arts and the National Capital Planning
Commission. Fortunately, final approval for the design concept was
received last July and a national fundraising campaign has been
launched for the project. Because of the delay in securing design
approval, the National Peace Garden now needs to extend its
construction authority for an additional 3 years. Today, I am
introducing legislation to give them this extension.
Mr. President, I urge my colleagues to support this legislation and
allow work on this memorial to move forward. Similar legislation has
already been passed by the House and I hope will be favorably
considered by the Senate.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1790
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. EXTENSION OF AUTHORIZATION FOR PEACE GARDEN.
(a) Notwithstanding section 10 (b) of Public Law 99-652, as
amended (40 U.S.C. 1010 (b)), the authority of the National
Peace Garden to establish the garden known as the ``Peace
Garden'' in accordance with Public Law 100-63 (40 U.S.C. 1003
note) shall expire on June 30, 1997.
(b)(1) The Congress finds that the Peace Garden Project,
Incorporated, has changed its name to the National Peace
Garden.
(2) Any reference in a law, map, regulation, document,
paper, or other record of the United States to the Peace
Garden Project, Incorporated shall be deemed to be a
reference to the National Peace Garden.''
______
By Mr. BAUCUS:
S. 1794. A bill to designate the Federal building located at the
corner of North 29th Street and Fourth Avenue North in Billings,
Montana, as the ``William J. Jameson Federal Building'', and for other
purposes; to the Committee on Environment and Public Works.
william j. jameson federal building act of 1994
Mr. BAUCUS. Mr. President. I introduce legislation to name the
new Federal building in Billings, MT after the late Judge William J.
Jameson. Judge Jameson was an renowned Montana jurist, respected for
his integrity, dedication, wisdom, and contribution to the law.
Born August 8, 1898, in Butte, MT, Jameson also lived in Roundup as a
youngster. During his early years, teachers and family knew Bill was
someone special. He exhibited an uncommon devotion to learning, and
from an early age knew he wanted to be a lawyer.
At the age of 17, he entered the University of Montana, matriculating
to the university's law school once his undergraduate work was
complete. One year after graduating from law school, he married Mildred
Lore of Billings. Mildred was a source of inspiration and support to
Bill throughout his career.
Jameson was active in the Montana Republican party. In 1926, while an
attorney with the Billings law firm Johnston, Coleman & Johnston, he
ran a successful campaign for the Montana legislature. According to
Journey With the Law, a book about Judge Jameson by Lawrence F. Small,
his entire election campaign cost $35.00.
Jameson served two terms in Helena, and became known for his strong
support for the State's higher education system. This support was
critical to bringing higher education to Billings, with Eastern Montana
College opening in 1927.
After his years in the legislature, Jameson returned to his Billings
firm and continued his work as a trial attorney. He received high marks
from judges and fellow attorneys for his exceptional abilities.
Jameson joined the Montana Bar Association soon after graduating from
law school, and was elected to serve as the M.B.A. president from 1936
to 1937. He also contributed to the community. He gave generously of
his time to numerous educational and community organizations in
Montana.
In 1953, a prestigious honor came Jameson's way. He was elected
president of the American Bar Association during a tumultuous time in
American history, the era of McCarthyism and of Brown versus Board of
Education of Topeka. During his year-long term, Jameson helped to
eliminate racial restrictions for membership in the American Bar
Association.
Jameson also served as a member of the Conference of Commissioners on
Uniform State Laws; president of the American Judicature Society and
the American Law Institute; chairman of the American Bar Endowment
board of directors, of the Committee on Standards for the
Administration of Criminal Justice, and of the American Bar Association
section of judicial administration.
Soon after his term as A.B.A. president, President Eisenhower
nominated Jameson to be a U.S. District Judge for Montana. Like the
trial attorneys Jameson had faced in court, judges thought highly of
Judge Jameson. His reasoned decisions were much respected by members of
the bench.
Judge Jameson's love for the law triggered his decision to continue
his judicial career as a senior judge after being eligible for full
retirement in 1969. In this capacity, he was widely sought after for
the next 20 years to sit on Courts of appeals for various Federal
circuits.
In 1973, Jameson was awarded the A.B.A. medal, the association's
highest accolade, given for ``conspicuous service in the cause of
American jurisprudence.'' Jameson joined Oliver Wendell Holmes and
Felix Frankfurter, among others, in receiving this award.
Judge Jameson was so economical in his stewardship of Federal funds
and so diligent in his work habits that it was said at his funeral that
if all Federal employees worked as hard and were as frugal as he, there
would be no Federal deficit.
Judge Jameson, Mr. President, contributed much to our system of
jurisprudence. His passion for the law, and his balanced approach to
the law, have served us all.
Montanans are proud to call Judge Jameson one of their own. For this
reason, I am particularly honored to introduce legislation to name the
new Federal building in Billings after the judge. It is a well-deserved
tribute.
Mr. President, I ask unanimous consent that the text of the measure
be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1794
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. DESIGNATION OF WILLIAM J. JAMESON FEDERAL
BUILDING.
The Federal building located at the corner of North 29th
Street and Fourth Avenue North in Billings, Montana, shall be
known and designated as the ``William J. Jameson Federal
Building''.
SEC. 2. REFERENCES.
Any reference in a law, map, regulation, document, paper,
or other record of the United States to the Federal building
referred to in section 1 shall be deemed to be a reference to
the ``William J. Jameson Federal Building''.
______
By Mr. Brown (for himself, Mr. Dole, Mr. Packwood, Mr. D'Amato,
Mr. Simpson, Mr. Warner, Mr. Gramm, Mr. Stevens, Mr. Cochran,
Mr. McCain, Mr. Gorton, Mr. Burns, Mr. McConnell, Mr.
Murkowski, Mr. Nickles, Mrs. Hutchison and Mr. Pressler):
S. 1795. A bill to amend title IV of the Social Security Act and
other provisions to provide reforms to the welfare system in effect in
the United States; to the Committee on Finance.
welfare reform act of 1994
Mr. BROWN. Mr. President, in November, Senate Republicans promised to
introduce a welfare reform bill on the first day of this session.
Today, with Senator Dole and 14 other Senators as cosponsors, I'm here
to keep that promise and to introduce a Senate Republican welfare
reform bill.
Americans believe in work. Work is the key to success, opportunity,
fulfillment, and growth. Work encourages accomplishment and self-
respect. To reform welfare, we must encourage work.
The welfare reform we Senate Republicans propose focuses on
opportunity to move out of poverty. The Brown/Dole bill requires job
search by adults applying for Aid for Families with Dependent Children.
It requires able-bodied job-ready adults to work for their welfare
benefits. For those who don't have the skills or education to hold a
job, we require them to get the remedial education and job skills
training necessary for one. The Brown/Dole bill gives States the option
of ``two years and off'' for adult AFDC recipients.
For the welfare recipient, the bill allows them to exchange welfare
benefits for a job. AFDC and food stamp benefits can literally be taken
in voucher form and exchanged for a job with a private employer. Under
this program, the welfare recipient receives a job that pays at least
double the welfare benefits. The employer receives the voucher which
they can redeem to help pay for the cost of training the employee. The
Government saves money by receiving taxes on the income of the new
employee.
In 1988, when I was in the House, we made a step toward changing our
welfare system to encourage work in the Family Support Act. When the
Senate passed a work requirement in its 1988 welfare reform package,
the groundwork was set to get it through the House and enacted into
law. It was the Republicans in both the House and Senate who thought of
it and accomplished it.
This bill takes the work requirements we started in 1988 in the
Family Support Act and builds on them. The Brown/Dole bill requires at
least one parent in two-parent AFDC families to work for the benefits.
It requires non-custodial parents whose children are on welfare to pay
court-ordered child support or to participate in welfare work programs.
With work, the Senate Republican welfare reforms also focus on
parental responsibility. The Brown/Dole bill requires teenage mothers
to live at home, or in a supervised group home, to be eligible for AFDC
benefits. It also gives States the option to deny cash welfare benefits
to teen mothers or for children conceived while the mother is on AFDC.
The Senate Republican welfare reform proposal changes the law so a
mother does not get her portion of cash AFDC benefits until she has
fully cooperated in getting her children's paternity legally
established. It encourages States to establish uniform forms and
systems for wage withholding of child support and to honor other
States' child support orders.
In developing this legislation, we've talked to several Governors and
State legislators about flexibility for States in designing welfare
programs. The Senate Republican welfare reform bill allows States to
impose several welfare requirements without getting a waiver from the
Federal Government. Under this bill, States can impose childhood
immunization and school attendance requirements, limit benefits to new
State residents to the same level as they received in the previous
State for 1 year, encourage educational savings accounts for children
and eliminate the welfare penalty if a mother marries a man not the
father of her children. The bill also would standardize and streamline
the process for States to get exemptions from Federal welfare
requirements.
Lastly, the Senate Republican welfare reform bill would put limits on
who can get welfare, but do so recognizing the various needs of our
citizens and our communities. In the Brown/Dole bill, we have included
a provision specifically stating that illegal aliens are not eligible
for welfare benefits, except emergency medical. For legal aliens, their
sponsor's income is deemed available to them until they become
naturalized U.S. citizens and legal aliens who receive 12 months of
welfare benefits are required to be reported to the Immigration and
Naturalization Service for possible deportation as a public charge.
Welfare recipients addicted to drugs or alcohol, under this bill, are
required to participate in rehabilitation program and undergo random
drug tests to remain eligible. Persons found innocent by reason of
insanity would not be eligible for disability benefits based on their
mental condition.
This bill is just a beginning of our work on welfare reform. There
are other welfare programs, outside the scope of this bill, that
desperately need changing. Food stamps, job training, and day care are
just a few of the programs we need to work on to give people the help
they need to get into a real job and off welfare. I pledge to work with
my colleagues, on both sides of the aisle, to further strengthen the
Brown/Dole bill and to work on other bills reforming other parts of our
welfare system.
Finally, we must address the overall cost of all the welfare
programs. Our country cannot continue to spend and increase the deficit
in programs that don't help people become productive members of
society. The vehicle for addressing these overall cost concerns will
soon be before us in the budget resolution. With Senators Faircloth,
Grassley, and Gorton, I will be working toward reasonable caps on
welfare spending.
Mr. DOLE. Mr. President, I am pleased to join with my distinguished
colleague, Senator Brown, in introducing a real welfare reform bill.
As part of his campaign, President Clinton promised to ``End welfare
as we know it,'' yet a year has gone by and Americans are still waiting
for his proposal.
Right now--too many Americans who receive welfare assistance need to
be set free from the chains that bind them to a dependency on
government handouts. Handouts that often destroy their self-
sufficiency.
Republicans have responded to this welfare crisis with leadership--
action has been taken by our Republican Governors, by Republican
Members of the House of Representatives and right here in the U.S.
Senate. Our emphasis has been on ending welfare as a way of life--by
strengthening real work requirements for able-bodied adults who receive
government assistance and by encouraging parental responsibility.
The Republican proposals recognize the human despair of those in
need, while at the same time, taking a real look at who needs welfare
and what should be the responsibilities of those who receive cash
assistance. This country was built on the American dream--not the
assurance of a free ride.
Mr. President, the legislation that Senator Brown has introduced
today asks welfare recipients to commit to what made this country
great--the American work ethic. And it builds upon the landmark
progress that was made when President Ronald Reagan signed into law the
1988 Family Support Act--a hard fought bipartisan agreement. The Senate
contributed to this effort by passing a visionary work requirement
which also was approved in the House.
More specifically, this legislation takes another step toward
encouraging those on welfare to work. It gives the States the authority
to end welfare after 2 years for all able-bodied recipients. That's
right. Two years and off. No more temptation to rely on lifelong
government benefit programs that have become a permanent crutch for
many Americans when these people can become self-sufficient. Too many
times these benefits have become the crutch that contributes to broken
families, the loss of personal dignity and at the same time costing
taxpayers billions of dollars a year.
Moreover, the bill emphasizes parental responsibility and allows
increased State flexibility to address these local problems and respond
to the rapid increase in illegitimacy.
The Federal Government has a role to play in setting tough rules that
establish priorities. For example, the Federal Government will require
unmarried minor mothers on aid to families with dependent children
[AFDC], a major welfare program, to live with their parents, guardians,
or in a group home. We believe this will help establish a family
environment--clearly an important benefit over the long term.
States have a lot to contribute in the design of new ways to address
existing problems--so new flexibility will be given. For example,
States will have the option to deny AFDC cash benefits to unmarried
minor mothers or to deny additional cash benefits for children
conceived while the mother is on welfare.
Right now--we must seize the opportunity to fix this broken system. A
system that exists where 1 out of 7 American children are on welfare.
Republicans want able-bodied Americans to have a temporary safety net
and then earn a fair shot at joining the mainstream of society. We want
to provide the children of America the future they deserve.
______
By Mr. KOHL (for himself and Mr. Feingold):
S. 1797. A bill to require the Secretary of Transportation to amend
the existing regulations applicable to charter flights to the Super
Bowl to apply the requirements of such regulations to charter flights
to inter-collegiate football games designated as bowl games and to the
basketball games among the last 4 teams in the National Collegiate
Athletic Association's division I championship basketball tournaments;
to the Committee on Commerce, Science, and Transportation.
amending charter flight regulations
Mr. KOHL. Mr. President, this year, when thousands of eager
University of Wisconsin Badgers fans bought plane tickets to go to the
Rose Bowl to cheer their hometown team to victory, they had no reason
to believe that they'd have to watch the event on TV. Or did they?
It has been estimated that as many as 2,000 Wisconsin residents who
purchased Rose Bowl ``packages'' from charter services arrived in
California only to learn that the game tickets they had been promised
did not exist. While some of these people were able to secure last
minute tickets at exorbitant prices, hundreds of those had to watch the
event on TV in a room nearby the stadium.
While U.S. Department of Transportation regulations exist to prevent
this from happening at the Super Bowl, these regulations do not apply
to other events. The DOT regulations (14 CFR 380.18a) require that an
operator marketing a Super Bowl air package that includes game tickets
must have the tickets in hand or have a written contract for the
tickets before the operator does any advertising.
The legislation that I am introducing today would require the
Secretary of Transportation to apply these Super Bowl regulations to
Rose Bowl games and to NCAA ``Final Four'' tournaments. It is my hope
that this legislation will result in the regulatory changes necessary
to protect the consumer.
I welcome Senator Feingold as an original cosponsor of this
legislation, and note that Congressman Klug is introducing the same
legislation in the House.
I ask unanimous consent that the full text of the bill be included in
the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1797
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. REGULATION OF CHARTERS.
The Secretary of Transportation shall amend part 380.18a of
title 14 of the Code of Federal Regulations to apply the
requirements contained in such regulation to charter flights
going to--
(1) inter-collegiate football games designated as bowl
games; and
(2) basketball games among the last 4 teams in the National
Collegiate Athletic Association's division 1 championship
basketball tournaments.
Mr. FEINGOLD. Mr. President, I rise today to join my
colleague, Senator Kohl in introducing a bill to require the Secretary
of Transportation to amend the existing regulations applicable to
charter flights, to extend those rules to collegiate bowl games and
NCAA final four basketball games.
As you know, the University of Wisconsin football team appeared in
the 1994 Rose Bowl for the first time in over 30 years; and I am proud
to add they were victorious.
As Rose Bowl fever swept the State following the regular season, tens
of thousands of Badger fans sought out ways to get to Pasadena. Indeed,
tens of thousands of Badger fans did actually get to Pasadena and
attend the game.
Many of those loyal fans made their travel and game plans through
agents and companies selling charter flight and Rose Bowl ticket
packages. Upon their arrival in California they found that the tickets
that they paid for were unavailable, or were priced significantly
higher than they believed to be the case when they booked and paid for
the charter package.
So while over 60,000 Badger fans were inside the Rose Bowl on New
Year's Day, thousands were relegated to viewing the game on television
at hastily erected tents outside the stadium or in hotels and bars--
great economic development for Pasadena, but no consolation for paying
Wisconsin Badger fans.
Charter and ticket scams have occurred before, and especially in
relation to major sporting events. It's happened at the Super Bowl and
at other bowl games in the past. Some States protect citizens against
scalping and other forms of ticket fraud, while others don't. Where
such consumer protection laws do exist, detection and enforcement vary
widely.
We already have a no-cost solution to the problem, and that is part
380.18A of title 14 of the Code of Federal Regulations, which requires
charter operators to prove that they have possession of the appropriate
number of game tickets before they advertise. Currently, however, the
rule only applies to Super Bowl games.
This bill amends the rule, and extends its requirements to charter
flights going to intercollegiate bowl games and the games of the last 4
teams of the NCAA's division 1 basketball tournament.
It's simple, it's effective, it's fair, it's time.
______
By Mr. BRADLEY:
S. 1798. A bill to amend the Internal Revenue Code of 1986 to
increase the tax on handguns and assault weapons and to impose a tax on
the transfer of handguns and assault weapons, to increase the license
application fee for gun dealers, and to use the proceeds from those
increases to pay for medical care for gunshot victims; to the Committee
on Finance.
gun violence health care cost prevention act
Mr. BRADLEY. Mr. President, I rise today to introduce the Gun
Violence Health Care Costs Prevention Act, a bill to reduce the
public's share of the health care costs associated with gunshot
injuries by significantly increasing the taxes and licensing fees
associated with the sale and purchase of handguns, assault weapons, and
the ammunition for these firearms.
The high rate of gun-related violence is wreaking havoc with our
health care system. Every 14 minutes someone in the United States dies
from a gunshot. The total lifetime costs associated with firearm deaths
and injuries were over $20 billion in 1990. We spend an estimated $3
billion a year treating firearm injuries, and 80 percent of the cost of
hospitalization for these injuries is paid by public funds. Although
handguns and assault weapons cost the Government millions of dollars in
health care each year, the dealers and consumers of these firearms do
not pay their fair share. Instead, the American public must foot the
bill.
The bill I introduce today increases the fees for most 3-year Federal
firearms dealer licenses to $3,000. It also increase the manufacturer's
excise tax on handguns, assault weapons, and the ammunition for these
firearms to 30 percent. In addition, it establishes a new 30-percent
Federal sales and transfer tax to cover sales of these instruments by
gun dealers to retail customers. Finally, this bill puts the processed
from these tax and licensing fee increases into a trust fund for the
support of trauma centers and hospitals that have incurred
substantial uncompensated costs while treating gunshot victims. If
enacted, this bill will shift some of the health care cost of firearms-
related injuries away from the American public to the dealers and
consumers of guns.
There are currently over 209 million firearms in the United States,
71 million of which are handguns. Although handguns make up less than
one-third of all firearms, they are involved in two-thirds of the gun
murders that occur each year. Assault weapons account for a much
smaller percentage of total firearms, but they have become weapons of
choice for some criminals, giving them the ability to pump bullets into
people at devastatingly fast and intense levels.
There are currently 280,000 federally licensed dealers in the United
States, as compared to 155,000 grocery stores and 210,000 gas stations.
According to the Bureau of Alcohol, Tobacco and Firearms, 90,000 new or
renewed dealers licenses are issued each year. The current cost of a
new 3-year Federal firearms dealer license is $30, a cost which has not
changed since 1968. When the Brady bill goes into effect next month,
the cost will still only be $200 for a new license and $90 for
subsequent licenses. Significant increases in the gun dealer licensing
fee would dramatically reduce the number of Federal firearms dealers,
raise the amount of public funds available to treat firearms-related
injuries, and bring the cost of handguns, assault weapons, and the
ammunition for these firearms more in line with their cost to our
society.
It is not my intention to restrict the use of the firearms which are
appropriate for legitimate recreational purposes. It is my goal,
however, to acknowledge the important link between certain firearms and
the high health care costs associated with gun violence. I urge my
colleagues to cosponsor it. I ask unanimous consent to include the text
of this legislation and a bill summary in the Record. I yield the
floor.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Gun Violence Health Care
Costs Prevention Act''.
SEC. 2. FINDINGS.
The Congress finds that--
(1) there are currently over 209,000,000 firearms in the
United States, 71,000,000 of which are handguns and 1,000,000
of which are semi-automatic assault weapons;
(2) there are now over 280,000 federally licensed gun
dealers in the United States, as compared to 155,000 grocery
stores and 210,000 gas stations;
(3) a Federal firearms dealer's license allows the licensee
to purchase firearms wholesale across State lines;
(4) according to the Bureau of Alcohol, Tobacco and
Firearms, American taxpayers annually pay more than
$28,000,000 in subsidies to operate the Federal firearms
dealer licensing system;
(5) each year more than 24,000 Americans (65 Americans a
day) are killed with handguns, either in homicides, by
committing suicide, or by unintentional injuries;
(6) handguns account for only one-third of all firearms in
the United States, but account for two-thirds of all firearm-
related deaths;
(7) in 1991, the United States led the developed world with
14,373 gun murders, as compared to 186 gun murders in Canada,
76 gun murders in Australia, 60 gun murders in England, and
74 gun murders in Japan;
(8) in 1991, there were 11,497 murders committed with
handguns, as compared to 745 murders committed with rifles,
1,124 murders committed with shotguns, and 3,430 murders
committed with knives;
(9) every 14 minutes someone in the United States dies from
a gunshot;
(10) in 1989, there were over 240,000 nonfatal firearms
injuries;
(11) 95 percent of the persons injured each year by a
handgun require emergency care or hospitalization;
(12) firearms injuries, fatal and nonfatal, are the third
most costly type of injury overall;
(13) the total lifetime costs associated with firearm
deaths and injuries were $14,400,000,000 in 1985, increased
to at least $16,200,000,000 by 1988, and increased to
$20,400,000,000 by 1990;
(14) the health care cost of firearm-related injuries is
approximately $3,000,000,000 a year;
(15) public funds pay for over 80 percent of the cost of
hospitalization for firearms injuries, excluding professional
fees and the cost of ambulance, physical therapy, and other
rehabilitative services;
(16) youngsters carry an estimated 270,000 guns to school
every day;
(17) gun violence is a major public health problem and
handguns, assault weapons, and the ammunition for these
firearms are major health hazards;
(18) the cost of firearms and firearms dealers licenses
should reflect the health costs of firearms to our society;
(19) the Federal taxes on handguns, assault weapons, and
the ammunition for these firearms should be significantly
increased to partially offset the health care costs of gun
violence;
(20) the fees required for Federal firearms dealer's
licenses should be significantly increased to partially
offset the health care costs of gun violence; and
(21) the increased Federal taxes should not be imposed on
firearms and ammunition which are recognized as particularly
suitable for, or readily adaptable to, sporting purposes.
SEC. 3. LICENSE APPLICATION FEES FOR DEALERS IN FIREARMS.
(a) In General.--Section 923(a) of title 18, United States
Code, is amended--
(1) by striking subparagraph (B) of paragraph (3) and
inserting:
``(B) who is not a dealer in destructive devices, a fee of
$3,000 for 3 years (including renewals).''; and
(2) by adding at the end the following new flush sentence:
``There are hereby appropriated to the Gun Violence Trauma
Care Trust Fund established under section 9512 of the
Internal Revenue Code of 1986 (26 U.S.C. 9512) 93 percent of
the revenues from fees collected under paragraph (3)(B) for
original licenses and 97 percent of the revenues from such
fees for renewal licenses.''
(b) Effective Date.--The amendments made by this section
shall apply to license applications (including renewals)
filed after the 180th day after the date of the enactment of
this Act.
SEC. 4. INCREASE IN TAX ON HANDGUNS AND ASSAULT WEAPONS.
(a) Increase in Manufacturer's Tax.--
(1) In general.--Part III of subchapter D of chapter 32 of
the Internal Revenue Code of 1986 (relating to tax on
firearms) is amended by adding at the end the following new
section:
``SEC. 4183. IMPOSITION OF ADDITIONAL TAX ON HANDGUNS AND
ASSAULT WEAPONS.
``(a) Imposition of Tax.--In addition to any tax imposed by
section 4181, there is hereby imposed upon the sale by the
manufacturer, producer, or importer of any of the following
articles a tax equivalent to the specified percentage of the
price for which so sold:
``Articles taxable at 20 percent.--
``Handguns.
``Articles taxable at 19 percent.--
``Semiautomatic assault weapons.
``Shells and cartridges used in handguns and semiautomatic
assault weapons.
``(b) Definitions.--For purposes of subsection (a)--
``(1) Handgun.--The term `handgun' means any pistol or
revolver.
``(2) Semiautomatic assault weapon.--
``(A) In general.--The term `semiautomatic assault weapon'
means--
``(i) any of the semiautomatic firearms known as--
``(I) A.A. Arms AP-9;
``(II) Auto-Ordnance Thompson;
``(III) Barrett Light-Fifty;
``(IV) Beretta AR-70;
``(V) Bushmaster Auto Rifle;
``(VI) Calico M-900 and M-950;
``(VII) Cobray, Ingram and RPB MAC-10 and MAC-11;
``(VIII) Colt AR-15 and Sporter;
``(IX) Encom MP-9 and MP-45;
``(X) Fabrique Nationale FN/FAL, FN/LAR, and FNC;
``(XI) Feather AT-9;
``(XII) Federal XP900 and XP450;
``(XIII) Franchi SPAS-12;
``(XIV) Intratec TEC-9 and TEC-22;
``(XV) Israeli Military Industries UZI and Galil;
``(XVI) Iver Johnson Enforcer 3000;
``(XVII) Norinco, Mitchell and Poly Technologies Avtomat
Kalashnikovs;
``(XVIII) Steyr AUG; or
``(XIX) USAS-12;
``(ii) a revolving-cylinder shotgun such as or similar to
the Street Sweeper or Striker 12; and
``(iii) a semiautomatic firearm designated by the Secretary
as a semiautomatic assault weapon under subsection (c).
``(B) Exceptions.--The term `semiautomatic assault weapon'
does not include (among other firearms)--
``(i) any of the firearms known as--
``(I) Remington Model 1100 shotgun;
``(II) Remington Model 7400 rifle;
``(III) Mossberg Model 5500 shotgun;
``(IV) HK Model 300 rifle;
``(V) Marlin Model 9 camp carbine;
``(VI) Browning High-Power rifle; or
``(VII) Remington Nylon 66 auto loading rifle;
``(ii) a firearm that is a manually operated bolt action
firearm;
``(iii) a lever action firearm;
``(iv) a slide action firearm; or
``(v) a firearm that has been rendered permanently
inoperable.
``(3) Shells and cartridges.--
``(A) Handguns.--The term `cartridges used in handguns'
includes--
``(i) any centerfire cartridge which has a cartridge case
less than 1.3 inches in length,
``(ii) any cartridge case which is less than 1.3 inches in
length, or
``(iii) any other ammunition listed under subsection
(c)(1)(B) as likely to be used in a handgun.
``(B) Semiautomatic assault weapons.--The term `shells or
cartridges used in semiautomatic assault weapons' means any
shells, cartridges, magazines, or other ammunition which is
listed under subsection (c)(1)(B) as likely to be used in a
semiautomatic assault weapon.
``(c) Designation of Semiautomatic Assault Weapons and
Taxable Ammunition.--
``(1) In general.--Not later than 180 days after the date
of the enactment of this section, and annually thereafter,
the Secretary, in consultation with the Attorney General,
shall--
``(A) determine whether any other semiautomatic firearm
(other than a firearm described in subsection (b)(2)(B))
should be designated as a semiautomatic assault weapon in
addition to those previously designated by subsection
(b)(2)(A) or by the Secretary under this subsection, and
``(B) publish a list of shells and cartridges which are
likely to be used in handguns and semiautomatic assault
weapons.
``(2) Criteria.--For purposes of paragraph (1)(A), the
Secretary shall by regulation designate as a semiautomatic
assault weapon a rifle, pistol, or shotgun that is a
semiautomatic firearm and that is described in paragraph (3),
(4), (5), or (6).
``(3) Replicas or duplicates.--A replica or duplicate in
any caliber of a semiautomatic firearm described in
subsection (b)(2)(A)(i) is a semiautomatic assault weapon.
``(4) Certain nonsporting firearms.--A rifle that is a
semiautomatic firearm is a semiautomatic assault weapon if
it--
``(A) is not generally recognized as being particularly
suitable for or readily adaptable to sporting purposes,
``(B) has an ability to accept a detachable magazine, and
``(C) has at least 2 of the following characteristics:
``(i) A folding or telescoping stock.
``(ii) A pistol grip that protrudes conspicuously beneath
the action of the weapon.
``(iii) A bayonet mount.
``(iv) A flash suppressor or threaded barrel designed to
accommodate a flash suppressor.
``(v) A grenade launcher.
``(5) Certain Pistols.--A pistol that is a semiautomatic
firearm is a semiautomatic assault weapon if it--
``(A) is not generally recognized as being particularly
suitable for or adaptable to sporting purposes,
``(B) has an ability to accept a detachable magazine, and
``(C) has at least 2 of the following characteristics:
``(i) An ammunition magazine that attaches to the pistol
outside of the pistol grip.
``(ii) A threaded barrel capable of accepting a barrel
extender, flash suppressor, forward hand grip, or silencer.
``(iii) A shroud that is attached to or partially or
completely encircles the barrel and that permits the shooter
to hold the firearm with the second hand without being
burned.
``(iv) A manufactured weight of 50 ounces or more when the
pistol is unloaded.
``(v) A semiautomatic version of an automatic firearm.
``(6) Certain shotguns.--A shotgun that is a semiautomatic
firearm is a semiautomatic assault weapon if it--
``(A) is not generally recognized as being particularly
suitable for or adaptable to sporting purposes, and
``(B) has at least 2 of the following characteristics:
``(i) A folding or telescoping stock.
``(ii) A pistol grip that protrudes conspicuously beneath
the action of the weapon.
``(iii) A fixed magazine capacity in excess of 6 rounds.
``(iv) An ability to accept a detachable magazine.''
(2) Conforming amendments.--
(A) Section 4182(a) of such Code is amended by inserting
``or 4183'' after ``section 4181''.
(B) Paragraph (6) of section 6091(b) of such Code is
amended by striking ``section 4181'' and inserting ``section
4181 or 4183''.
(C) The table of sections for part III of subchapter D of
chapter 32 of such Code is amended by adding at the end the
following new item:
``Sec. 4183. Imposition of additional tax on handguns and assault
weapons.''
(b) Tax on Subsequent Sales or Transfers Involving Assault
Weapons and Handguns.--
(1) In general.--Chapter 31 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
subchapter:
``Subchapter D--Handguns and Semiautomatic Assault Weapons
``Sec. 4056. Handguns and semiautomatic assault weapons.
``SEC. 4056. HANDGUNS AND SEMIAUTOMATIC ASSAULT WEAPONS.
``(a) Imposition of Tax.--There is hereby imposed on any
sale, transfer, or other disposition by any person of a
handgun, semiautomatic assault weapon, or shells and
cartridges used in handguns and semiautomatic assault weapons
a tax equal to 30 percent of the price for which sold,
transferred, or disposed of.
``(b) Credit for Tax Previously Imposed.--
``(1) In general.--In the case of the 1st retail sale of
any article, and any sale, transfer, or disposition preceding
the 1st retail sale, the amount of tax imposed by subsection
(a) shall be reduced by the amount of tax imposed by this
section, section 4181, or section 4183 on any preceding sale,
transfer, or disposition of the article.
``(2) Refunds.--If a taxpayer establishes to the
satisfaction of the Secretary that tax was imposed in excess
of the amount due, the Secretary shall pay (without interest)
to the taxpayer the amount of such excess.
``(3) Requirements.--No reduction or refund shall be made
under this subsection unless the taxpayer meets such
requirements as the Secretary may prescribe with respect to
proof of payment of tax for any prior sale, transfer, or
disposition.
``(c) Exceptions.--
``(1) Coordination with manufacturer's tax.--No tax shall
be imposed under subsection (a) on a sale, transfer, or
disposition of an article if tax is imposed under section
4181 or 4183 with respect to such sale, transfer, or
disposition.
``(2) Defense department.--No tax shall be imposed by
subsection (a) on any sale described in section 4182(b).
``(d) Definitions.--For purposes of this section, the terms
`handgun', `semiautomatic assault weapon', and `shells and
cartridges used in handguns and semiautomatic assault
weapons' have the meanings given such terms by section
4183(b).''
(2) Conforming amendment.--The table of subchapters for
chapter 31 of such Code is amended by adding at the end the
following new item:
``Subchapter D--Handguns and Semiautomatic Assault Weapons.''
(c) Effective Date.--The amendments made by this section
shall apply to sales, transfers, and other dispositions after
the 180th day after the date of the enactment of this Act.
SEC. 5. GUN VIOLENCE TRAUMA CARE TRUST FUND.
(a) In General.--Subchapter A of chapter 98 of the Internal
Revenue Code of 1986 (relating to trust fund code) is amended
by adding at the end the following new section:
``SEC. 9512. GUN VIOLENCE TRAUMA CARE TRUST FUND.
``(a) Establishment of the Trust Fund.--There is
established in the Treasury of the United States a trust fund
to be known as the `Gun Violence Trauma Care Trust Fund',
consisting of such amounts as may be appropriated or credited
to such Trust Fund as provided in this section or section
9602(b).
``(b) Transfers to the Trust Fund.--There are hereby
appropriated to the Gun Violence Trauma Care Trust Fund
amounts equivalent to--
``(1) the taxes received in the Treasury under section
4056,
``(2) the taxes received in the Treasury under section
4183, and
``(3) the amounts described in the last sentence of section
923(a) of title 18, United States Code.
``(c) Expenditures From the Trust Fund.--Funds in the Gun
Violence Trauma Care Trust Fund shall be available, as
provided in appropriations Acts, only--
``(1) for the purpose of making grants to assist hospitals,
trauma centers, or other health care providers that have
incurred substantial uncompensated costs in providing medical
care to gunshot victims, or
``(2) in the event a national health program is established
which compensates for those costs, for the purpose of
reimbursing that program for its costs in providing the
compensation.
``(d) Eligibility for Trust Fund Moneys.--A hospital,
trauma center, or other health care provider is eligible to
apply for grants from the Trust Fund for any calendar year if
the hospital, trauma center, or health care provider--
``(1) is in compliance with Federal and State certification
and licensing requirements;
``(2) is a not-for-profit entity; and
``(3) has incurred substantial uncompensated costs during
the previous calendar year in providing medical care to
gunshot victims.
``(e) Regulations for Trust Fund.--The Secretary shall, not
later than 180 days after the date of enactment of this
section and in consultation with the Secretary of Health and
Human Services, issue such regulations as are necessary to
implement the provisions of this section.''
(b) Conforming Amendment.--The table of sections for
subchapter A of chapter 98 of such Code is amended by adding
at the end the following new item:
``Sec. 9512. Gun Violence Trauma Care Trust Fund.''
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gun violence health care costs prevention act summary
First, increases the 3-year Federal firearms dealer licensing fee to
$3,000. The current fees are $200 for the initial dealer's license and
$90 for subsequent licenses. Before passage of the Brady bill, which
goes into effect on February 28, 1994, the cost of a 3-year firearms
dealer license was $30, a cost which had not increased since 1968.
Increasing the Federal firearms dealer licensing fee to $3,000 would
raise and additional $40-60 million and reduce the number of federally
licensed firearms dealers from the current figure of 280,000 to between
40,000 and 60,000.
Second, increases the Federal manufacturer-producer-importer excise
tax to 30 percent for handguns--pistols and revolvers--assault weapons,
handgun ammunition, and ammunition used in semiautomatic assault
weapons. The current excise tax is 10 percent for handguns and 11
percent for shotguns and rifles.
Third, imposes a new 30 percent Federal tax upon all transfers or
sales of handguns--pistols and revolvers--assualt weapons, handgun
ammunition, and ammunition used in semiautomatic assault weapons. The
Joint Tax Committee estimates that the tax increases would raise $1.1
billion in additional revenue over 5 years to offset the health care
costs of gun-related violence.
Fourth, establishes a gun violence trauma care trust fund and places
all revenue generated--over and above that generated by current taxes
benefiting the Federal Aid to Wildlife Fund--into the fund for the
benefit of hospital trauma centers that treat gunshot victims.
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