[Congressional Record Volume 140, Number 114 (Monday, August 15, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 15, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. GRAHAM:
  S. 2388. A bill to authorize the Secretary of Transportation to issue 
certificates of documentation with appropriate endorsement for 
employment in coastwise trade for each of two vessels named Gallant 
Lady, subject to certain conditions, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.


             documentation for the vessels ``gallant lady''

  Mr. GRAHAM. Mr. President, today I am introducing legislation which 
would grant a narrow waiver to the Jones Act for two vessels to operate 
in coastwise trade.
  The vessels, both named Gallant Lady, would be authorized under the 
bill to be used to assist charitable organizations in their fundraising 
activities.
  The waiver would expire if the owner sold the vessels. Further, the 
owner must agree prior to October 1, 1996, to have a vessel of at least 
130 feet built by a U.S. shipyard.
  I am hopeful the Senate will approve this legislation and look 
forward to working with my colleagues to ensure that the bill meets its 
narrow goals.
                                 ______

      By Mr. PRESSLER:
  S. 2390. A bill entitled the ``Mentorship for American Indian Small 
Enterprise Act''; to the Committee on Indian Affairs.


      mentorship for american indian small business enterprise act

  Mr. PRESSLER. Mr. President, I rise today to introduce a bill 
creating the Mentorship for American Indian Small Enterprise [MAISE] 
Program. This legislation targets a portion of section 7(m) of the 
Small Business Act, the Small Business Administration's Microloan 
Demonstration Program, for Indian lands experiencing severe economic 
stagnation.
  The concept of this legislation was born out of a hearing I chaired 
in Pine Ridge, SD, in September of 1993. The hearing, the first ever of 
the Senate Small Business Committee on an Indian reservation, was held 
on the Pine Ridge Indian reservation. Pine Ridge contains the Nation's 
poorest county on a per capita basis, vividly demonstrating the dire 
economic conditions that often have persisted on Indian reservations. 
The three panels of witnesses included tribal, State, and community 
leaders, as well as entrepreneurs and private lenders. While the 
testimony acknowledged and addressed the unfortunate circumstances 
existing on most Indian lands, witnesses focused on solutions to the 
problems that stunt job creation and entrepreneurial success.
  Small business development will not and cannot be a panacea to the 
profound and complex problems that American Indians experience. 
Business opportunity, however, is a proven pathway to economic 
independence. My bill provides some of the tools necessary for American 
Indians caught in a seemingly endless cycle of economic dependency to 
break out of that defeating spiral. Although my greater MAISE concept 
will include welfare reform and tax incentives, committee 
jurisdictional complications prevent me from offering all of the 
program as a single piece of legislation. Nonetheless, the Microloan 
portion of the MAISE Program eventually could allow aspiring 
entrepreneurs to learn from established members of the local business 
community and put themselves firmly on the road to success.

  As I mentioned earlier, there tools would be provided by modifying 
the SMA microloan Program, found under section 7(m) of the Small 
Business Act. This bill takes a comprehensive approach to stimulating 
economic growth on Indian lands by adding another tier of assistance to 
the existing Microloan Program. My bill would target a portion of the 
current program by requiring the SBA to select no less than the ten 
percent of participating intermediaries to provide loans and technical 
assistance to members of qualified Indian tribes. A qualified Indian 
tribe, as defined in the act, must have ``an employable adult 
population of not less than 400 persons'' and ``an unemployment rate of 
not less than 40 percent.'' This reserve parallels a portion of the 
current program requiring at least 50 percent of intermediaries to 
serve rural areas. This reserve is not designed to act as a quota or 
mandate; rather, it is a primer for these particularly needy areas to 
become full partners in the SBA Microloan Program.
  In addition to intermediary involvement, the legislation provides 
technical assistance grants to be awarded to institutions of higher 
education. Tribal, State, or private colleges or universities would 
provide training to intermediaries and established members of the 
business community--referred to as mentors in this legislation. With 
the cooperation of the intermediaries, these mentors would bolster 
their personal business knowledge with formal instruction so that they, 
in turn, could advise fledgling entrepreneurs.
  The bill also amens the purposes for which microloans may be used. 
Under current statute, microloans may be used for ``working capital or 
the acquisition of materials, supplies, or equipment.'' This bill would 
allow loans to be used for the purchase of commercial real estate in 
addition to these other purposes. Inexpensive real estate is readily 
accessible not only to businesses located on Indian reservations, but 
also to many businesses located in rural areas and cities. South 
Dakota's only participating intermediary in the SBA Microloan Program, 
the Northeast South Dakota Energy Conservation Corp. [NESDECC], 
recently informed me that almost half of the businesses seeking 
microloans from NESDECC would like to use such loans to purchase 
commercial real estate. NESDECC also stated that many buildings in the 
area it serves can be purchased for as little as $5,000. To allay fears 
that introducing real estate loans to the Microloan Program may 
jeopardize its revolving fund concept, my colleagues should know that 
this legislation does nothing to modify the $25,000 loan limit, or the 
$10,000 average loan portfolio requirement of the current law. I 
believe these two provisions provide an adequate safeguard against 
intermediaries making too many large, long-term loans.
  Mr. President, I truly believe this program would be an excellent way 
for this Nation's Indian reservations to work their way out of economic 
stagnation. The Microloan Program was created specifically ``to assist 
women, low-income, and minority entrepreneurs and business owners.'' By 
coupling intensive business assistance with access to credit, this 
program could be just the catalyst that budding American Indian 
entrepreneurs need to hone their skills and talents. Such a tremendous 
resource and such enormous potential must not continue to go to waste. 
The MAISE Program will transform ideas into reality and allow 
economically disadvantaged American Indians to declare social and 
economic independence.

  The legislation I introduce today owes a great deal to the honest, 
straight forward testimony of people like Elsie Meeks, executive 
director of the Lakota Fund of Kyle, SD. At the Pine Ridge field 
hearing, Elsie explained the value of microenterprise development to 
Indian reservations. She stated that microenterprise development 
reaches out to the ``poorest of the poor'' and puts them on ``the road 
to economic self-sufficiency.'' Despite the limited business skills and 
depressed economic conditions that surround these new businesses, the 
Lakota Fund maintains a default rate below 10 percent. Another 
microlender, the Sincangu Enterprise Center located on the Rosebud 
Indian Reservation, serves as another powerful example of how 
microlending can empowwer the once impoverished. Sincangu has been 
fortunate enough to have the support of Farmers State Bank of Mission, 
SD. Farmers State Bank, located just off of the Rosebud Reservation, 
has built a strong working relationship with the members of the Rosebud 
Sioux tribe, as well as with the Sincangu Enterprise Center. 
Cooperative efforts among this bank, Sinte Gleska University, and the 
people of the Rosebud area have allowed the Sincangu Enterprise Center 
to create over 30 new small businesses in the last 4 years.
  Since last September, I have kept in close contact with many of the 
witnesses who testified at this hearing. They have been instrumental to 
the development of this bill. Their advice and assistance carries the 
utmost importance and credibility on this subject. They are, after all, 
the individuals who live and work in these communities and deal with 
the problems there every day. Clearly, they know what it will take to 
make their communities prosper. I believe that this bill captures that 
spirit.
  Mr. President, I ask unanimous consent that the bill and a section-
by-section analysis of the legislation be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2390

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. MICROLOAN DEMONSTRATION PROGRAM AMENDMENTS.

       (a) Purposes.--Section 7(m)(1)(A)(iii) of the Small 
     Business Act (15 U.S.C. 636(m)(1)(A)(iii)) is amended--
       (1) in subclause (I), by inserting ``commercial real 
     estate,'' after ``acquisition of''; and
       (2) in subclause (III), by striking ``and'' at the end;
       (3) by redesignating subclause (IV) as subclause (VI); and
       (4) by inserting after subclause (III) the following new 
     subclauses:
       ``(IV) to make grants to eligible intermediaries that, 
     together with non-Federal matching funds, will enable such 
     intermediaries to provide marketing, management, and 
     technical assistance to microloan borrowers that are members 
     of qualified Indian tribes;
       ``(V) to make grants to institutions of higher education 
     serving Indian lands that, together with non-Federal matching 
     funds, will enable such institutions to provide instruction 
     on marketing, management, and technical assistance to 
     eligible intermediaries and to mentors, in order to enable 
     such intermediaries and mentors to assist members of 
     qualified Indian tribes to obtain private sector financing 
     for their businesses, with or without loan guarantees; and''.
       (b) Establishment.--Section 7(m)(1)(B) of the Small 
     Business Act (15 U.S.C. 636(m)(1)(B)) is amended--
       (1) in clause (ii), by striking ``and'' at the end;
       (2) in clause (iii), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following new clauses:
       ``(iv) in conjunction with loans made under clause (i) and 
     subject to the requirements of paragraph (4), make grants to 
     eligible intermediaries for the purpose of providing 
     marketing, management, and technical assistance to members of 
     qualified Indian tribes that are seeking to start or enlarge 
     their small business concerns and that are borrowers under 
     this subsection; and
       ``(v) subject to the requirements of paragraph (7), make 
     grants to institutions of higher education serving Indian 
     lands for the purpose of providing instruction on marketing, 
     management, and technical assistance to eligible 
     intermediaries and to mentors, in order to enable such 
     intermediaries and mentors to assist members of qualified 
     Indian tribes to obtain private sector financing for their 
     businesses, with or without loan guarantees.''.
       (c) Intermediary Applications.--Section 7(m)(3)(A)(i) of 
     the Small Business Act (15 U.S.C. 636(m)(3)(A)(i)) is 
     amended--
       (1) in subclause (VII), by striking ``and'' at the end;
       (2) in subclause (VIII), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subclause:
       ``(IX) with respect to eligible intermediaries serving 
     Indian lands, any plan to work with--

       ``(aa) an institution of higher education that has received 
     a grant under paragraph (1)(B)(v); or
       ``(bb) a mentor that has received training from any such 
     institution of higher education pursuant to such a grant.''.

       (d) Additional Technical Assistance Grants for Making 
     Certain Loans.--Section 7(m)(4) of the Small Business Act (15 
     U.S.C. 636(m)(4)) is amended in the matter preceding 
     subparagraph (A), by striking ``subparagraph (B)(ii) of 
     paragraph (1)'' and inserting ``clause (ii) or (iv) of 
     paragraph (1)(B)''.
       (e) Loans from Eligible Intermediaries.--Section 7(m)(6)(A) 
     of the Small Business Act (15 U.S.C. 636(m)(6)(A)) is amended 
     by inserting ``commercial real estate,'' after ``acquisition 
     of''.
       (f) Grants to Institutions of Higher Education.--Section 
     7(m) of the Small Business Act (15 U.S.C. 636(m)) is 
     amended--
       (1) by redesignating paragraphs (7) through (11) as 
     paragraphs (9) through (13), respectively; and
       (2) by inserting after paragraph (6) the following new 
     subparagraph:
       ``(7) Grants to institutions of higher education.--Grants 
     made in accordance with paragraph (1)(B)(v) shall be subject 
     to the following requirements:
       ``(A) Grant amounts.--For each eligible intermediary 
     receiving a grant under paragraph (1)(B)(iv), 1 grant shall 
     be made to a qualified institution of higher education 
     serving the same tribal lands as the eligible intermediary. 
     The amount of the grant to the institution of higher 
     education shall not exceed the grant amount received by the 
     eligible intermediary pursuant to paragraph (1)(B)(iv).
       ``(B) Contribution.--As a condition of any grant made under 
     subparagraph (A), the Administration shall require the 
     institution of higher education to contribute an amount equal 
     to 25 percent of the amount of the grant, obtained solely 
     from non-Federal sources. In addition to cash or other direct 
     funding, the contribution may include indirect costs or in-
     kind contributions paid for under non-Federal programs.
       ``(C) Indian mentor education grants.--Institutions of 
     higher education receiving grants under paragraph (1)(B)(v) 
     shall be eligible to receive grants to educate owners, 
     managers, or employees of established small business concerns 
     for purposes of providing additional technical assistance to 
     small business concerns located on or near Indian lands that 
     are borrowers under this subsection, as well as to other 
     small business concerns seeking private sector financing.''.
       (g) Indian Assistance.--Section 7(m) of the Small Business 
     Act (15 U.S.C. 636(m)) is amended by inserting after 
     paragraph (7), as added by subsection (f), the following new 
     paragraph:
       ``(8) Indian assistance.--In funding microloan programs, 
     the Administration shall ensure that not less than 10 percent 
     of the programs funded under this subsection will provide 
     microloans to small business concerns located on or near 
     Indian lands.''.
       (h) Report to Congress.--Section 7(m)(12)(F) of the Small 
     Business Act (15 U.S.C. 636(m)(12)(F)), as redesignated by 
     subsection (f), is amended by inserting ``and to small 
     business concerns located on or near Indian lands'' 
     immediately before the semicolon.
       (i) Definitions.--Section 7(m)(13) of the Small Business 
     Act (15 U.S.C. 636(m)(13)), as redesignated by subsection 
     (f), is amended--
       (1) in subparagraph (C), by striking the period at the end 
     and inserting a semicolon; and
       (2) by adding at the end the following new subparagraphs:
       ``(D) the term `Indian lands' has the same meaning as in 
     section 4(4) of the Indian Gaming Regulatory Act;
       ``(E) the term `Indian tribe' has the same meaning as in 
     section 4(e) of the Indian Self-Determination and Education 
     Assistance Act;
       ``(F) the term `institution of higher education' has the 
     same meaning as in section 1201(a) of the Higher Education 
     Act of 1965;
       ``(G) the term `mentor' means a business concern that 
     demonstrates, to the satisfaction of the Administration, the 
     capability to assist members of qualified Indian tribes to 
     obtain private sector financing for their businesses, with or 
     without loan guarantees; and
       ``(H) the term `qualified Indian tribe' means an Indian 
     tribe with--
       ``(i) an employable adult population of not less than 400 
     persons; and
       ``(ii) an unemployment rate of not less than 40 percent;
     based on the statistics of the Bureau of Indian Affairs, 
     Department of the Interior.''.

     SEC. 2. IMPLEMENTATION.

       Not later than 270 days after the date of enactment of this 
     Act, the Small Business Administration shall promulgate final 
     regulations implementing the amendments made by section 1.

     SEC. 3. REPORT TO CONGRESS.

       Not later than 180 days after the effective date of the 
     regulations promulgated in accordance with section 2, the 
     Small Business Administration shall report to the Congress 
     regarding the effectiveness of the amendments made by section 
     1 in improving the small business climate and promoting 
     business development on or near Indian lands, as such term is 
     defined in section 7(m)(13) of the Small Business Act.
                                  ____


Section-by-Section Analysis of the Mentorship for American Indian Small 
                             Enterprise Act

       The Mentorship for American Indian Small Enterprise (MAISE) 
     Act would stimulate job creation on or near Indian 
     reservations through small business creation. This 
     legislation would target a portion of the current Small 
     Business Administration Microloan Demonstration Program 
     (Section 7(m) of the Small Business Act) for small businesses 
     located on or near Indian reservations. This legislation also 
     would amend the existing statute to allow all microloans to 
     be use for purchase of commercial real estate.
       Section 1. Microloan Demonstration Program amendments:
       (a) Purposes:
       (1-2) Allows all microloans to be used for purchase of 
     commercial real estate.
       (3-4) Makes grants available to intermediaries for the 
     purpose of providing technical assistance to prospective or 
     established American Indian small business owners.
       Creates grants for institutions of higher education serving 
     Indian lands. These grants would be used by colleges and 
     universities to educate intermediaries and mentors. Mentors 
     would supplement intermediaries' efforts to assist new 
     businesses and start-ups to offer technical assistance.
       (b) Establishment:
       (1-3) Establishes that technical assistance grants would be 
     made available to intermediaries helping American Indian 
     small business concerns to secure loans.
       Establishes grants to higher education institutions for 
     technical assistance to intermediaries and mentors to help 
     American Indian small businesses secure loans.
       (c) Intermediary Applications:
       (1-3) Adds new intermediary application requirements for 
     those serving Indian lands by asking for information 
     regarding plans to work with colleges and universities that 
     have received grants under this program, as well as plans to 
     work with mentors.
       (d) Additional Technical Assistance Grants:
       Amends this reference to include new provisions for 
     American Indian intermediaries.
       (e) Loans From Eligible Intermediaries:
       Allows all microloans to be used for the acquisition of 
     commercial real estate.
       (f) Grants to Institutions of Higher Education:
       Establishes a new subparagraph (7) outlining provisions of 
     the higher education grants.
       Allows for one grant recipient serving an Indian land, 
     which also has an eligible intermediary serving the same 
     Indian land.
       Requires the institution to supplement grants with non-
     Federal contributions of at least 25 percent of the Federal 
     contribution.
       Describes the purpose of the grant as a means of educating 
     mentors.
       (g) Indian Assistance:
       Ensures that not less than ten percent of all 
     intermediaries participating in the SBA Microloan Program 
     provide microloans to small businesses located on or near 
     Indian lands.
       (h) Report to Congress:
       Specifies that the SBA would report to Congress on the 
     program's effect upon American Indian small business 
     development.
       (i) Definitions:
       Provides definitions of Indian lands, institution of higher 
     education, mentor, and
       Qualified Indian Tribe--Indian tribe with a workforce of at 
     least 400 persons and an unemployment rate of at least 40 
     percent.
       Section 2. Implementation:
       Regulations shall be promulgated by the SBA not later than 
     270 days after enactment.
       Section 3. Report to Congress:
       SBA would report to Congress not later than 180 days after 
     regulations are promulgated.
                                 ______

      By Mr. JOHNSTON (by request):
  S.J. Res. 217. A joint resolution to approve the location of a World 
War II Memorial; to the Committee on Energy and Natural Resources.


             approval of the location for the wwii memorial

  Mr. JOHNSTON. Mr. President, at the request of the Department of the 
Interior, I send to the desk a joint resolution approving the location 
of a World War II memorial.
  Mr. President, this draft legislation was submitted and recommended 
by the Department of the Interior, and I ask unanimous consent that the 
joint resolution, and the communication which accompanied the proposal 
from the Secretary be printed in the Congressional Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                             S.J. Res. 217

       Resolved by the Senate and House of Representatives of the 
     United States of America in Congress assembled,
       Whereas section 6(a) of the Act entitled ``To provide 
     standards for placement of commemorative works on certain 
     Federal lands in the District of Columbia and its environs, 
     and for other purposes,'' approved November 14, 1986 (Public 
     Law 99-652, 100 Stat. 3650), provides that the location of a 
     commemorative work in the area described therein as Area I 
     shall be deemed disapproved unless the location is approved 
     by law not later than 150 days after the Secretary of the 
     Interior or the Administrator of General Services notifies 
     the Congress of his determination that the commemorative work 
     may be located in Area I; and
       Whereas Public Law 103-32, approved May 25, 1993 (107 Stat. 
     90), authorized the American Battle Monuments Commission to 
     establish a memorial on Federal land in the District of 
     Columbia to members of the Armed Forces who served in World 
     War II; and
       Whereas the Secretary of the Interior has notified the 
     Congress of his determination that the memorial may be 
     located in Area I: Now, therefore, be it
       Resolved by the Senate and House of Representatives of the 
     United States of America in Congress assembled, That the 
     location of a World War II Memorial, authorized by Public Law 
     103-32, within either Area I or Area II as described in 
     Public Law 99-652 (100 Stat. 3650), is hereby approved.
                                  ____



                                The Secretary of the Interior,

                                   Washington, DC, August 8, 1994.
     Hon. Albert Gore, Jr.,
     President of the Senate, Washington, DC.
       Dear Mr. President: There is enclosed a draft joint 
     resolution, ``To approve the location of a World War II 
     Memorial.'' We recommend that the joint resolution be 
     introduced, referred to the appropriate committee for 
     consideration, and enacted.
       Public Law 103-32 (May 25, 1993, 107 Stat. 90) authorized 
     the American Battle Monuments Commission to establish a 
     memorial on Federal land in the District of Columbia to 
     members of the Armed Forces who fought in World War II and to 
     commemorate United States participation in that conflict.
       The enclosed draft joint resolution would grant authority 
     to consider location of the World War II Memorial in Area I, 
     the area comprising the central monumental core of the 
     District of Columbia as defined by Public Law 99-652 
     (November 14, 1986, 100 Stat. 3650; hereinafter referred to 
     as ``the Act''.)
       The American Battle Monuments Commission has made this 
     request so that all sites within Area I and Area II as 
     defined by the Act may be available for consideration as the 
     site for the World War II Memorial. Section 6(a) of the Act 
     provides that the Secretary of the Interior (the Secretary) 
     may approve the location of a commemorative work in Area I 
     only if he finds that the subject of the work is of 
     preeminent historical and lasting significance to the Nation. 
     That section further provides that the Secretary, after 
     consultation with the National Capital Memorial Commission, 
     shall notify the Congress of his determination that a 
     commemorative work may be located in Area I. Further, the Act 
     provides that an Area I location shall be deemed disapproved 
     unless within 150 days of the notification it is approved by 
     law by the Congress.
       On September 2, 1993, the National Capital Memorial 
     Commission recommended that the World War II Memorial is 
     eligible for location within Area I. I agree with this 
     determination, and find the subject to be of preeminent 
     historical and lasting significance to the Nation. I 
     recommend that the World War II Memorial may be located 
     within Area I.
       In accordance with section 6(a) of the Act approved 
     November 14, 1986, notice is hereby given that I recommend 
     the potential location of this authorized memorial in Area I, 
     that through my designee, I have consulted with the National 
     Capital Memorial Commission, and that I have determined that 
     the World War II Memorial may be located in Area I. Under 
     section 6(a) of the Act, the recommendation for Area I 
     location shall be deemed disapproved unless, within 150 days 
     after this notification, this recommendation is approved by 
     law. Therefore, we urge prompt action on the enclosed joint 
     resolution.
       The Office of Management and Budget has advised that there 
     is no objection to the submission of this letter from the 
     standpoint of the Administration's program.
           Sincerely,
                                                    Bruce Babbitt,
     Secretary.

                          ____________________