[Congressional Record Volume 140, Number 30 (Thursday, March 17, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 17, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                           amendment no. 1539

  (Purpose: To amend provisions related to small business securities)

  Mr. RIEGLE. Mr. President, on behalf of Senator D'Amato and myself, I 
shortly will send an amendment to the desk and ask unanimous consent it 
be in order. This amendment modifies the tax and pension provisions of 
the small business loan and securitization subtitle to address concerns 
raised by the Finance and Labor Committees. The managers' amendment, 
adopted yesterday, amendment 1523, changed the tax provision to sense-
of-the-Senate language.
  It has been cleared on both sides. Let me now send that to the desk. 
I ask for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Michigan [Mr. Riegle], for himself and Mr. 
     D'Amato, proposes an amendment numbered 1539.

  Mr. RIEGLE. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       On page 99, beginning with line 22, strike all through page 
     100, line 19, and insert the following:
       (a) Prohibited Transaction Exemption.--The Secretary of 
     Labor, in consultation with the Secretary of the Treasury, 
     may exempt transactions involving small business related 
     securities (as defined in section 3(a)(53) of the Securities 
     Exchange Act of 1934, as added by section 202 of this Act) 
     pursuant to section 408(a) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1108(a)) and section 
     4975(c)(2) of the Internal Revenue Code of 1986.
       (b) Consideration of Exemption Requests.--The Secretary of 
     Labor shall consider any request for exemption under 
     subsection (a) within a reasonable period of time after 
     receipt of such request.
       Section 210 of the bill, as amended by amendment No. 1523, 
     is further amended--
       (1) in subsection (a)--
       (A) by striking ``account--'' and inserting ``account, as 
     appropriate--'';
       (B) by striking ``and'' at the end of paragraph (2);
       (C) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (D) by adding at the end the following:
       ``(4) such other tax policies as may be warranted.''; and
       (2) in subsection (b)--
       (A) by striking ``means any entity'' and inserting ``means 
     an entity'';
       (B) by striking ``any obligation (including any 
     participation or certificate of beneficial ownership 
     therein)'' and inserting ``obligations''; and
       (C) by striking ``that was originated'' and inserting 
     `'that were originated''.

  Mr. RIEGLE. This has been cleared on both sides. I urge the adoption 
of the amendment.
  The PRESIDING OFFICER. If there be no further debate, the question is 
on agreeing to the amendment.
  The amendment (No. 1539) was agreed to.
  Mr. RIEGLE. Mr. President, I now want to send another amendment to 
the desk that has been cleared on both sides by myself and Senator 
D'Amato. It is an amendment to the Federal Reserve Act.
  The PRESIDING OFFICER. Without objection, the pending amendments are 
set aside.


                           Amendment No. 1540

  Mr. RIEGLE. Mr. President, I send an amendment to the desk and ask 
for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Michigan [Mr. Riegle], for himself and Mr. 
     D'Amato, proposes an amendment numbered 1540.

  Mr. RIEGLE. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:
       At the appropriate place insert:

     SEC.   . AMENDMENT TO THE FEDERAL RESERVE ACT.

       Sec. 11. Section 11 of the Federal Reserve Act (12 U.S.C. 
     248), is amended by inserting at the end thereof the 
     following new subsection:
       ``(p) Authority.--The Board of Governors of the Federal 
     Reserve System and the Federal Open Market Committee may each 
     act in the Board's or the Committee's own name and through 
     the Board's or the Committee's own attorneys in enforcing any 
     provision of this title, regulations thereunder, or any other 
     law or regulation, or in any action, suit, or proceeding to 
     which the Board of Governors of the Federal Reserve System or 
     the Federal Open Market Committee is a party.''.

  Mr. RIEGLE. I urge adoption of the amendment.
  The PRESIDING OFFICER. The Senator from New York.
  Mr. D'AMATO. I commend Senator Riegle and his staff for this 
amendment. This amendment would give the Federal Reserve Board the same 
authority as we gave the Comptroller of the Currency yesterday to bring 
lawsuits; that is, without there having to be prior consultation or 
permission. The Office of Thrift Supervision already has this power.
  I believe what we are seeing is an attempt to give to independent 
regulators the opportunity to carry out their functions unimpeded.
  It is a very important step. I certainly support this amendment.
  THE PRESIDING OFFICER. If there be no further debate, the question is 
on agreeing to the amendment.
  The amendment (No. 1540) was agreed to.
  Mr. D'AMATO. Mr. President, I move to reconsider the vote.
  Mr. RIEGLE. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. RIEGLE. Mr. President, I want to take a brief moment to say, as I 
finish, Senator Kerry is seeking recognition to present a compromise 
that he has worked out with Senator Mack, Senator Bond, Senator 
D'Amato, and others, with respect to the flood insurance issue. It 
saved a lot of time and effort.
  I commend the Senator from Massachusetts for his dogged efforts here, 
and the good will all around in working this issue out. It is not a 
simple matter, and has taken a lot of effort by all involved to reach 
this sensible compromise.
  I am prepared to urge its adoption as soon as the Senator has had a 
chance to comment on it and sends it to the desk.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KERRY. Mr. President, I ask for the regular order.
  The PRESIDING OFFICER. The regular order is amendment No. 1537.


                           Amendment No. 1537

  Mr. KERRY. Mr. President, I ask unanimous consent I be permitted to 
withdraw the amendment that is at the desk.
  The PRESIDING OFFICER. The Senator has that right. Amendment No. 1537 
is withdrawn.
  The amendment (No. 1537) was withdrawn.


                           Amendment No. 1541

  (Purpose: To strengthen the National Flood Insurance Program and to 
    reduce risk to the National Flood Insurance Fund by increasing 
 compliance, providing incentives for community floodplain management, 
      providing for mitigation assistance, and for other purposes)

  Mr. KERRY. Mr. President, I send an amendment to the desk and ask for 
its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Massachusetts [Mr. Kerry], for himself, 
     Mr. Mack, Mr. Bond, and Mr. D'Amato, proposes an amendment 
     numbered 1541.

  Mr. KERRY. Mr. President, I ask unanimous consent that reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (The text of the amendment is printed in today's Record under 
``Amendments Submitted.'')
  Mr. KERRY. Mr. President, I will take very brief time to describe 
this. I first want to thank the Senator from Florida, Senator Mack, and 
the Senator from Missouri, Senator Bond, for a tremendous amount of 
time that has gone into this, not just over today but over the course 
of the last couple of years.
  I particularly want to thank the Senator from Florida for his good-
faith efforts and his personal efforts to guarantee that we really move 
today. I pay a tribute to him because without his efforts and the 
seriousness of his staff, we would not have reached this accommodation.
  I believe we are sending to the desk a fundamental, long overdue, and 
very important reform of our National Flood Insurance Program. As a 
result of this reform, we all believe the fund is going to have much 
greater participation; that the fund will be fiscally sound. We believe 
we are going to engage in significant steps to be able to mitigate and 
prevent future damage. And we are going to answer, because of the 
approach we have taken, unanswered questions while simultaneously 
moving down the track to guarantee that erosion and other issues are 
factored into this plan.
  We have done this, I think, in a very sensible and reasonable way so 
the interests are protected for those who have doubts about it. But, at 
the same time, we have guaranteed progress.
  I would just like to tip my hat again to the Senator from Florida for 
doing that.
  I finally want to thank the distinguished chairman of the committee. 
He has patiently sat through many a hearing, or a markup, where other 
bills might have been jeopardized for this. I know he was standing--and 
perhaps sometimes sitting--on pins and needles with respect to whether 
this other bill he has worked on might have been slowed up as a 
consequence of this.
  I think we have come together with a sound compromise that ensures 
the rapid movement of this legislation, and I thank the Senator for his 
leadership and his patience.
  Mr. RIEGLE. Mr. President, let me thank the Senator from 
Massachusetts for his kind personal comments, and again for his 
leadership and effort. I am told that the other Senator from Florida, 
Senator Graham, wants to be able to come over and be part of the final 
discussion here before we agree to the amendment. I was prepared to 
urge adoption of the amendment now, but that word has reached me so I 
am going to defer for a few moments.
  Senator Moynihan has arrived, and I know he wants to speak on the 
Jerusalem issue and I am going to suggest we do that. Once he has 
concluded, then we can move on that sense-of-the-Senate resolution that 
bears his name and Senator Brown's, and perhaps by that time Senator 
Graham from Florida will arrive and we can then move on the floor 
measure.
  Mr. MACK. Mr. President, if the Senator will yield, it was my 
intention to make remarks with respect to the flood insurance proposal, 
as well. Does my colleague prefer that I withhold until after we 
conclude the resolution?
  Mr. RIEGLE. If that would be agreeable to the Senator, I think that 
might be a good idea to do that because I know Senator Graham is coming 
over, as well. So I do not know that anything will arise as a result of 
that, but if it does, there might be something the Senator will want to 
address in his remarks.
  I think this might be a good time also, since we asked the Brown 
amendment be set aside to take up the flood insurance amendment, that 
we now dispose of that which we can, with Senator Moynihan here. I do 
not think we are going to take long here to do that.
  Then I think we can come right back to flood insurance, and I will 
ask that the Senator then be recognized.
  The PRESIDING OFFICER. The Senator from New York.


                           Amendment No. 1538

  Mr. MOYNIHAN. Mr. President, I thank the distinguished manager of the 
legislation, the Senator from Michigan, and my colleague and friend, 
the Senator from New York, who is the comanager.
  I rise simply to thank all Senators who are supporting this measure, 
most particularly my colleague from Colorado, who is the ranking member 
of the Subcommittee on Near Eastern and South Asian Affairs, and a 
member of the Foreign Relations Committee.
  Mr. President, tomorrow, a letter, which was initiated by Senators 
Mack, Sarbanes, and McConnell, and the Senator from New York, with more 
than 60 signatures, will go to the President restating the Senate's 
position on this matter. This position was explicitly laid out in 
Senate Concurrent Resolution 106 in the 101st Congress, which stated 
simply the Congress

       * * * acknowledges that Jerusalem is and should remain the 
     capital of the State of Israel; strongly believes that 
     Jerusalem must remain an undivided city in which the rights 
     of every ethnic religious group are protected; and calls upon 
     all parties involved in the search for peace to maintain 
     their strong efforts to bring about negotiations between 
     Israel and Palestinian representatives.

  Mr. President, that was 3\1/2\ years before those negotiations began. 
The Prime Minister of Israel, Mr. Rabin, has said this resolution was 
fundamental to the beginning of those negotiations. As it correctly 
stated, this matter would be a subject that the parties would resolve 
themselves.
  This administration has been firm in precisely this position. No 
other administration, and I can speak from some experience, has been as 
open, direct and specific with regard to its position concerning an 
undivided Jerusalem as the administration. We are united as a Senate 
body and we would say to the United Nations at this point, ``Please 
stay out of these matters which are now being negotiated. What we have 
sought for half a century is now taking place--direct negotiations. 
Leave the negotiators to their work.''
  That is what we ask in this resolution. That is what is asked in the 
letter which two-thirds of the Senate is sending to the President 
tomorrow. I hope that the matter might be unanimously accepted, so that 
there is no doubt about our view as a body. I yield the floor.
  Mr. REID addressed the Chair.
  The PRESIDING OFFICER. The Senator from Nevada.
  Mr. REID. Mr. President, in the early 1920's an imprisoned psychotic 
racist wrote a diatribe called ``Mein Kampf,'' ``My Battle.'' In that 
tract of hate, Adolf Hitler referred to the Jewish people as a bacillus 
to be exterminated for the health of Europe.
  In 1945, when Hitler died raving in his Berlin bunker, the world 
thought it was done with at least that sort of lunatic language. We 
hoped too soon.
  Almost 50 years later in the Hebron, Baruch Goldstein, who, I am 
ashamed to say, was American born, a physician and a Jew, used almost 
exactly the same language to describe human beings of the Moslem faith, 
dozens of whom he later murdered in cold blood while they knelt in a 
house of worship praying to the same God to whom I believe we all pray.
  I am particularly shocked, Mr. President, shamed and repulsed to say 
that Goldstein, who must have had relatives, as do my wife and 
children, who died at the bloody hands of Hitler, could commit those 
acts. That the man was a physician makes his crime even worse, just as 
it made worse the crimes of Josef Mengele and other SS physicians of 
his ilk.
  I know the philosophy of the Jewish Defense League and its later 
offspring founded by Meier Kahane. That is to say that the Kach party 
and then Kahane Chi. That philosophy is Lahore, ``Never again.'' I 
agree with that philosophy, Mr. President. I am committed to it. I have 
tried to live by it all my political life.
  But never again means more than just a commitment to preventing 
oppression of the Jewish people. As most of my Jewish brothers and 
sisters will agree, indeed as most of them live their lives, it means a 
commitment to equality, justice and mercy for all people of every race, 
creed and philosophy. Most of all, it means that never again should any 
group of psychopathic racists be permitted to band together to murder 
innocent people whose only crime is that they belong to a different 
religion, that their skin is a different color, that they speak a 
different language.
  So I say, never again. We cannot resolve all the problems of the 
world in this Chamber. We cannot make every man do justly or love mercy 
or walk with humility. But we can make laws and see that they are 
enforced with an equal hand.
  Mr. President, I applaud the response of the Government of Israel to 
this abject horror. They have banned Kach and Kahane Chi, and they have 
arrested some of their leaders. The response is appropriate, not just 
because of Goldstein's act but also because of the response of those 
groups to that act. They applauded the murder of innocent people and 
called it an act of heroism. That response reminded me of the Nazis and 
of the PLO and Black September at their worst.
  So, Mr. President, I call on my fellow Senators from both sides of 
the aisle to join me in answering this horrific act in Hebron and its 
racist aftermath. I ask you to join me in congratulating the State of 
Israel in their condemnation and declaration of illegality of these two 
terrorist organizations. This denunciation of non-Arab terrorists shows 
the world Israel's evenhanded approach to violence.
  I ask unanimous consent that my name be joined as a cosponsor of the 
resolution, the Brown-Moynihan resolution.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. REID. Mr. President, I ask that the Senate follow the advice and 
admonition and counsel that we received from the senior Senator from 
New York, a former Ambassador to the United Nations.
  Mr. BROWN. Mr. President, I ask unanimous consent that Senators Mack, 
Coats, Mathews, Pressler, and Boxer be added as cosponsors of the 
amendment.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. RIEGLE. Mr. President, I urge the adoption of the amendment.
  Mr. BROWN. Mr. President, I am pleased to rise today to note that the 
Senate has unanimously adopted Amendment No. 1541, the National Flood 
Insurance Reform Act of 1993, to S. 1275, the Community Development, 
Credit Enhancement, and Regulatory Improvement Act of 1993. I am 
delighted to note that the managers of amendment No. 1541 and the full 
Senate have accepted the Brown amendment to amendment No. 1541, which 
is directly similar to an amendment I previously offered and withdrew 
in August 1993 to S. 2667, the 1993 emergency supplemental 
appropriations disaster relief bill. The Brown amendment now makes it 
explicitly clear that people who have been given two generous chances 
to get their house in order, by obtaining and maintaining flood 
insurance, are prohibited from again coming to the Government trough 
for a third time to obtain Government payments to repair, renovate, or 
replace their property which should have been insured in the first and 
second place.
  Since 1973, Federal law has mandated that in order for an uninsured 
person to obtain Federal disaster relief payments for repair or 
replacement of flood damaged residential, commercial, or personal 
property located in a special flood hazard area, which is defined as a 
100 year or less flood plan, the person must first sign up for and 
maintain Federal flood insurance. According to the Federal Emergency 
Management Administration, the average cost for this flood insurance 
for the average home is $25 per month.
  Moreover, where persons show that they cannot afford to sign up for 
Federal flood insurance, the Federal Emergency Management 
Administration--FEMA--will not only cover the damaged property, but 
will also pay the first year flood insurance premium.
  The intent of these flood insurance provisions was clearly one of the 
Federal Government providing people living in these flood plains a 
second chance to repair or replace their property even though they 
failed to maintain flood insurance in the first place. Many originally 
uninsured people choose to use this Federal disaster money to repair 
and reconstruct their homes and businesses in the same flood plain in 
which they were wiped out by flood the first time, and thus, these 
persons take on the additional risk that another flood could strike and 
again damage or destroy their property. All of this is done with the 
understanding that these persons must obtain and maintain flood 
insurance on this property to protect their own interest and the 
Federal Government's investment in helping to repair, renovate, and 
replace their property.
  FEMA estimates that less than 10 percent of the persons affected by 
the last year's floods who live in 100 year flood plains had flood 
insurance in place at the time of the floods. Most of these persons 
received or will receive Federal disaster assistance under the 
condition that they first sign up for and maintain Federal flood 
insurance.
  However, unfortunately, some uninsured persons will also attempt to 
obtain yet another round of Government disaster relief. These are 
persons for whom an occurring flood disaster represents the second or 
third time they have come to the Government to ask you and me to pay to 
repair or replace of their flood damaged property--all because they 
failed and refused to keep their promise made the first time to the 
Federal Government to keep their property insured with flood 
insurance--a result certainly not intended by this Congress.
  I understand that FEMA and other Federal agencies may follow a policy 
consistent with Federal law of not allowing these second-time uninsured 
persons to receive Federal flood disaster assistance for repair or 
replacement of their property; however, none of these agencies apply 
the same policy, and none are consistent in interpreting and applying 
Federal law in this area.
  Again, the Brown amendment now remedies this time worn problem by 
making it explicitly clear that people who twice received the 
opportunity to obtain and maintain flood insurance, and yet refused to 
do so, are not prohibited from again coming to the Federal Government 
to ask for a bail out in payments to repair or replace their property 
which should have been insured in the first and second place.
  The Brown amendment, along with the other major flood insurance 
reforms included in amendment No. 1541, will go a long way toward 
improving our Nation's flood insurance system.
  The PRESIDING OFFICER. If there is no objection, we will resume 
consideration of amendment No. 1538, as modified.
  The question is on agreeing to the amendment, as modified.
  The amendment (No. 1538) was agreed to.
  Mr. D'AMATO. Mr. President, I move to reconsider the vote by which 
the amendment was agreed to.
  Mr. RIEGLE. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. RIEGLE. Mr. President, the Senator from Florida was kind enough 
to defer earlier. I thank him for his courtesy. I suggest he be 
recognized now.


                           Amendment No. 1541

  The PRESIDING OFFICER. The Senator from Florida is recognized on 
amendment No. 1541.
  Mr. MACK. Mr. President, I too want to express some thoughts of 
appreciation to Senator Kerry and his staff and, by the same token, to 
thank the staff on our side for the work that was done over the last 
several hours in order to bring about a compromise with respect to the 
National Flood Insurance Program Reform Act.
  The primary purpose of the act, at least from my perspective, was to 
strengthen the fund and to protect the interests of the home owner or 
the property owner. Or, to say it another way, to protect the interest 
of those paying premiums into the fund.
  The compromise that we have worked out retains the mitigation 
insurance provisions as well as assistance grants to States and local 
communities. It also retains the increased compliance measures to 
ensure greater participation in the fund.
  We do have a limited mapping of erosion zones, but they are done only 
for the purpose of providing more information to enable us to draw 
conclusions about what mapping erosion areas nationwide will do to the 
fund. We want to make sure that if we expend policyholder premium 
dollars on mapping, it will, in fact, prove cost beneficial to the 
fund.
  During the period of time when we are studying this issue, there 
would be no denial of insurance or increases in rates. That is a 
fundamental concern that we had. And there has been an agreement on 
that. There has also been an agreement to ensure that nothing happens 
with respect to the establishment of any erosion zone until after the 
study has been done, the information is reviewed by the Congress, and 
the Congress acts at that time. A thorough and comprehensive 
examination of all aspects of erosion management will take place as a 
result of this work.

  Moreover, we have established a clear directive to, above all else, 
maintain the financial stability of the Flood Insurance Fund. The 
driving force behind all our efforts has always been to maintain and 
increase the viability of the insurance fund. And, again, it is based 
on protecting the fund for those who have paid into it, that is, those 
who have been making premium payments for years.
  Again, I wish to thank Senator Kerry for his willingness to work on 
this issue, to come to a compromise. And on the basis of that work and 
on the basis of that compromise, I am pleased not only to be a 
cosponsor but to endorse the measure as well.
  I thank the Chair.
  Mr. D'AMATO addressed the Chair.
  The PRESIDING OFFICER. The Senator from New York.
  Mr. D'AMATO. Mr. President, I want to congratulate my colleagues. I 
congratulate Senator Mack for the work he has put into arriving at this 
point. I commend Senator Kerry for his persistence, and I commend my 
colleague Senator Bond. I think what they have done is worked out 
important reforms to improve the National Flood Insurance Program. 
Those reforms are aimed at increasing the participation. There are too 
many people who drop out of this program. I think once we get 
improvement in participation, we are going to see that this program 
then is made one that is self-sufficient and does not have to rely upon 
the taxpayers. That is important.
  In addition, reforms will help protect homes from flood damage. The 
amendment includes a study to obtain information about erosion, to make 
sure that we understand the risk to the fund. Once we have that 
information, then Congress can be in a better position to address the 
issue. That means we are moving forward in a way which will not unduly 
jeopardize property rights but, by the same token, actuarially 
strengthen the fund and see to it in the future we utilize the best 
planning methods to deal with the problems of erosion and flood 
control.
  Again I wish to commend my colleagues. They, as well as staff, have 
done an outstanding job. They have worked many, many hours on this.
  I see my colleague from Missouri, Senator Bond, who wants to speak. 
But again let me say I am pleased to support this amendment. At times I 
did not think we would ever reach this point, so this is truly an 
accomplishment.
  I yield the floor.
  Mr. BENNETT addressed the Chair.
  The PRESIDING OFFICER. The Senator from Utah.
  Mr. BENNETT. I ask unanimous consent that I be added as a cosponsor 
to amendment No. 1538.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The Senator from Missouri.
  Mr. BOND. Mr. President, I want to join in saying a very heartfelt 
thanks to my good friends, Senator Kerry, Senator D'Amato, and Senator 
Mack for their efforts on achieving a workable compromise on the 
National Flood Insurance Reform Act of 1993.
  While this certainly is not a perfect bill--I have seen very few that 
are perfect go through here--I believe it does put the National Flood 
Insurance Program on a sound financial footing. I believe the Senator 
from Massachusetts is going to have a modification to correct one point 
in the bill that we agreed upon. But, as corrected, as agreed upon, 
this is legislation that I believe all of our colleagues can support.
  Coming from a State like Missouri, I have a very special interest in 
the National Flood Insurance Program. Two of the largest rivers in the 
world run through our State, in addition to many tributaries. 
Unfortunately, as everyone saw on the evening news, those rivers did 
not run through it; they expanded over it this year. And for a State 
like Missouri to continue to prosper, our citizens must be able to 
insure against the possibility--yes, in some cases even the 
probability--of flooding.
  There are almost 15,000 Missouri policies in effect providing more 
than $760 million in coverage for homes and businesses. But we need to 
get more covered. Over 15,000 Missouri homes were damaged in the great 
flood of 1993, and many of those homes were without flood insurance. It 
is too late to insure those homes for that flood, but it is not too 
late to bring into the program these homes and other uninsured homes, 
to bring them up to code, to insure them against the risk of flooding. 
We need to spread the risk and to place the National Flood Insurance 
Program on a sound financial footing.
  The National Flood Insurance Reform Act of 1993 provides many needed 
reforms. As already described, the legislation would provide stricter 
requirements to ensure the placement of insurance on properties in 
flood-prone areas. It would increase flood insurance coverage amounts. 
It would establish a community rating system to provide premium rate 
credits for communities that implement land use and loss control 
measures that exceed minimum criteria, and it would establish a new 
program for mitigation assistance.
  I really believe, Mr. President, that mitigation is one way in which 
we can make great strides in assuring the actuarial soundness of the 
program as well as helping protect structures, individuals who live in 
them, and the families who live in them from the losses and the 
devastation of floods.
  As the Senator from Massachusetts so strongly urged, it also gets us 
on the road to having FEMA report a study on erosion hazard risks and 
conduct a representative sampling of erosion hazard risks to the Flood 
Insurance Fund. These are important reforms. I commend the Senator for 
bringing those to our attention.
  Again, I express my sincere thanks for the efforts of the staff that 
worked extremely hard to bring all this together, FEMA, which responded 
to our questions, and obviously to my colleagues for being willing to 
compromise to move forward on what I think should be a measure to bring 
significant benefit to the National Flood Insurance Program and the 
structures it protects.
  I thank the Chair.
  Mr. KERRY addressed the Chair.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KERRY. Mr. President, first of all, I thank the Senator from 
Missouri for his generous comments. And again--he was not here at the 
time, but I thanked him previously and do so again for his dogged 
pursuit of a number of different reforms in this bill, and also a good 
commonsense approach to some of the compromises we needed to reach.
  I, also, while it is a little premature--we are still waiting for one 
Senator to come over to clarify a couple of things and then I think we 
will be able to proceed, hopefully expeditiously--would like to join in 
thanking a couple members of the staff, Ira Paull, of the committee and 
Senator D'Amato's staff, and Pam Ray-Strunk, who have done terrific 
work on this; John Kamarch and Kim Cobb, working for Senator Mack, to 
whom we are particularly appreciative. On my side, Dave Jansen and John 
Winer have really labored at this for a long period of time. Scott 
Bunton has kind of overseen that effort. We are very appreciative of 
them.
  Mr. President, I ask for a modification at this time.
  The PRESIDING OFFICER. The Senator has that right.


                   Modification to Amendment No. 1541

  Mr. KERRY. I ask to strike section 403 and renumber the remaining 
sections accordingly and also a small modification with respect to the 
effective date, and I send that modification to the desk.
  The PRESIDING OFFICER. The amendment is so modified.
  Mr. KERRY. I thank the Chair.
  The modification is as follows:

       Amendment to section 475.
       (d) Effective Date.--The amendments made by this section 
     shall apply to disasters assistance provided declared after 
     the date of enactment of the Nation Flood Insurance Reform 
     Act of 1994.
       Strike section 403 and renumber the remaining sections 
     accordingly.

  Mr. KERRY. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. A quorum has been suggested. The clerk will 
call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. LAUTENBERG. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. LAUTENBERG. Mr. President, I ask unanimous consent to proceed as 
in morning business for up to 4 minutes.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.

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