[Congressional Record Volume 141, Number 93 (Thursday, June 8, 1995)]
[Senate]
[Pages S8034-S8042]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. BOXER (for herself and Mrs. Feinstein):
  S. 894. A bill to establish a California ocean protection zone, and 
for other purposes; to the Committee on Energy and Natural Resources.


              the california ocean protection act of 1995

 Mrs. BOXER. Mr. President, I am pleased to introduce today the 
California Ocean Protection Act of 1995. This act will provide 
permanent protection for California's Outer Continental Shelf [OCS] 
from the adverse effects of new offshore oil and gas development, deep-
sea mining, at-sea incineration of toxic wastes, and harmful ocean 
dumping. This act will make management of the Federal OCS consistent 
with State-mandated protection of State waters.
  This act recognizes that the resources of the lands offshore 
California, and of the Pacific Ocean itself, are priceless. This act 
recognizes that the real costs of offshore fossil fuel development, 
mining and toxic waste disposal far outweigh any benefits that might 
accrue from those activities. Finally, this act recognizes that 
renewable uses of the ocean and OCS lands are irreplaceable elements of 
a healthy, growing, California economy.
  California's coast, from San Diego to Crescent City, is a natural 
marvel. From the white sand beaches and secluded coves of southern 
California, to the grandeur of Big Sur, to the wild, rocky north, this 
coast is one of the Earth's great wonders--enjoyed by Californians and 
visitors from around the globe alike. But the California coast is much 
more than a scenic treasure; it is a dynamic convergence of land and 
sea--a grand yet fragile system that ultimately depends on the health 
of the Pacific Ocean for its continued viability.
  The cold, clear waters of the Pacific give life to a wealth of plant, 
fish, bird and marine mammal species. Some of those species in turn 
support California's multibillion-dollar fishing industry--an industry 
founded on renewable resource management. Clean Pacific waters also 
form the basis for California's coastal tourism industry--valued at 
over $27 billion annually and creator of tens of thousands of jobs in 
California's economy.
  Fishing and tourism are just two of the industries that we must weigh 
in the balance against non-sustainable, polluting uses of the ocean. 
The other values supported by an unpolluted Pacific are less easily 
quantified, but every bit as important. These values are economic, 
scientific and, indeed, spiritual. These are the values that have 
somehow gotten lost in the shuffle, as the Congress and past 
administrations have debated the issue of developing California's 
offshore resources.
  When those values are added to the scales and weighed against the 
benefits to be obtained from non-sustainable exploitation, permanent 
protection becomes the only viable choice. Consider that if all the 
unleased areas of the California coast were suddenly opened to oil and 
gas development,
 we would produce less than 60 days of oil for the nation at current 
rates of consumption. Such production would come at the certain cost of 
oil spills, contamination by the toxic wastes and air emissions 
generated by offshore rigs and the increased risk of tanker accidents.

  The Nation's interest in future energy security does not require that 
we pay those costs. Conservation measures are now available that will 
achieve far greater oil savings than the California OCS can produce, 
without the environmental risks brought by development. For example, 
raising CAFE standards to a readily achievable 40 miles per gallon 
would save 20 billion barrels of oil by 2020--over 18 times the 
estimated total California OCS reserves in unleased areas. And 
California is leading the nation in adopting an energy strategy that 
lessens our dependence on fossil fuels. Conservation programs already 
put in place by the State of California will save two billion barrels 
of oil over the next 20 years--almost twice the oil thought to lie in 
the State's frontier offshore areas.
  The legislation I am introducing today would bring the Federal OCS 
program for California into line with protection now in place for State 
waters. The State legislature, working cooperatively with Gov. Pete 
Wilson, has acted to protect most areas of the State tidelands that had 
not already been protected from oil and gas development. The danger is 
that unless we act Federal development will render protection of State 
waters practically meaningless. To State the obvious: water flows. An 
oilspill in Federal waters offshore California can rapidly foul State 
beaches, contaminate nutrient-rich ocean upwellings upon which 
California's fishing industry depends [[Page S8035]] and destroy 
endangered species habitat in State tidelands.
  In the same way it is misleading to believe that we can limit the 
hazards of offshore drilling by identifying and protecting 
environmentally sensitive areas. The ocean is a dynamic system--it is 
impossible to protect one area--even if there were scientifically sound 
criteria by which we could identify particularly sensitive areas--
without also protecting adjacent areas. Permanent protection for as 
much of the system as possible again emerges as the only viable option.
  This act does contain an exception for existing drilling operations. 
In recognition of the economic importance of current offshore 
development in southern California, the act would only prohibit new 
development. Thus drilling now underway offshore Orange and Santa 
Barbara counties would be allowed to continue. New drilling in those 
areas would be stopped.
  The act would also prohibit ocean mining, at-sea incineration of 
toxic wastes and harmful ocean dumping. Each of these activities 
represents a threat to the marine environment and the coastal economy. 
Ecologically and economically sound alternatives exist to each of these 
activities. The prohibitions
 contained in this act recognized that the optimum value of the ocean 
is maintained only when it remains free of marine pollution caused by 
unnecessary exploitation.
  I don't have to remind this body of the battles that have been fought 
over developing oil and gas offshore California. Interior Secretaries 
Watt and Hodel lined up with the oil industry to push for massive new 
leasing along the coast. That action was met by an opposite and more-
than-equal reaction from the Congress. Thirteen of the past fourteen 
Interior appropriations bills have contained 1-year leasing moratoria 
on the lands offshore California. While the unreasonable approach of 
past administrations has necessitated such moratoria, I think everyone 
agrees that a more certain, long-term policy is called for. This year 
with a Republican majority in Congress, we face a real threat that the 
moratoria will not be extended.
  This Act constitutes the long term policy and provides the certainty 
that California needs. We now have a better understanding of the costs 
associated with the activities this bill prohibits than we did when 
Secretary Watt fired his first salvo in the long battle over offshore 
drilling. We have come to understand that the greenhouse effect, and 
the global disaster it threatens, is a long-term effect of fossil fuel 
use. We know that the U.S. has only 4 percent of the world's remaining 
petroleum reserves and that much of the remainder is in the volatile 
Middle East--making the development of alternative forms of energy the 
only true source of energy security.
  America has the opportunity and the creativity to lead the way in 
developing renewable resources and energy efficient innovations. We 
must commit ourselves to those goals which will enable us to face the 
future with confidence and hope. Offshore drilling, dumping, 
incineration and mining offer only short-term benefits at extremely 
high long-term costs. These activities should not be part of our 
national strategy for the future.
  We have wasted far too much time fighting over a relatively 
insignificant energy resource. That time could have been far more 
productively spent devising real solutions to our energy needs. It is 
time to put the debate over California OCS development behinds us so 
that we can focus on developing the strategies and technologies that 
will help us compete and win in the global economy of the 21st century. 
The only way to achieve that goal is to permanently protect this 
resource. Anything less than permanent protection will only produce 
more controversy, more fighting, and continue to distract our focus 
from the real energy issues facing this Nation.
  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. 894

       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 ``California Ocean Protection 
     Act of 1995''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the coast of California possesses unique historical, 
     ecological, educational, recreational, economic, and research 
     values that are appropriate for protection under Federal law;
       (2) the threat to the coast of California, a national 
     treasure, continues to intensify as a result of fossil fuel 
     exploration and development, mineral extraction, and the 
     burning and dumping of toxic and hazardous wastes;
       (3) the activities described in paragraph (2) could result 
     in irreparable damage to the coast of California; and
       (4) the establishment of an ocean protection zone off the 
     coast of California would enhance recreational and commercial 
     fisheries, and the use of renewable resources within the 
     zone.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Development.--The term ``development'' has the meaning 
     stated in section 2 of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1331).
       (3) Exclusive economic zone.--The term ``Exclusive Economic 
     Zone'' means the Exclusive Economic Zone of the United 
     States, as defined by Presidential Proclamation 5030 of March 
     10, 1983.
       (4) Exploration.--The term ``exploration'' has the meaning 
     stated in section 2 of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1331).
       (5) Harmful ocean dumping.--The term ``harmful ocean 
     dumping''--
       (A) shall have the meaning provided by the Administrator, 
     in consultation with the heads of other Federal agencies whom 
     the Administrator determines to be appropriate; but
       (B) shall not include--
       (i) a de minimus disposal of vessel waste;
       (ii) the disposal of dredged material that--

       (I) would meet the requirements for disposal under the 
     criteria established under section 103 of the Marine 
     Protection, Research, and Sanctuaries Act of 1972 (33 U.S.C. 
     1413), including regulations promulgated under that section; 
     or
       (II) is disposed of pursuant to a permit issued pursuant to 
     that section;

       (iii) a discharge that is authorized under a National 
     Pollutant Discharge Elimination System (NPDES) permit issued 
     under section 402 of the Federal Water Pollution Control Act 
     (33 U.S.C. 1342); or
       (iv) a disposal that is carried out by an appropriate 
     Federal agency under title I of the Marine Protection, 
     Research, and Sanctuaries Act of 1972 (33 U.S.C. 1411 et 
     seq.).
       (6) Minerals.--The term ``minerals'' has the meaning stated 
     in section 2 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1331).
       (7) Outer continental shelf.--The term ``outer Continental 
     Shelf'' has the meaning stated in section 2 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1331).
       (8) Person.--The term ``person'' has the meaning stated in 
     section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331).
       (9) Production.--The term ``production'' has the meaning 
     stated in section 2 of such Act (43 U.S.C. 1331).
       (10) Territorial sea.--The term ``territorial sea'' means 
     the belt of sea measured from the baseline of the United 
     States, determined in accordance with international law, as 
     set forth in Presidential Proclamation 5928, dated December 
     27, 1988.
       (11) Zone.--The term ``Zone'' means the California Ocean 
     Protection Zone established under section 4.

     SEC. 4. DESIGNATION OF CALIFORNIA OCEAN PROTECTION ZONE.

       There is established a California Ocean Protection Zone, 
     consisting of--
       (1) waters of the Exclusive Economic Zone that are 
     contiguous to the waters of the territorial sea that are 
     contiguous to the State of California;
       (2) waters of the territorial sea that are contiguous to 
     the State of California; and
       (3) the portion of the outer Continental Shelf underlying 
     those waters.
     SEC. 5. RESTRICTIONS.

       (a) Mineral Exploration, Development, and Production.--
       (1) Definition.--In this subsection, the term ``lease'' has 
     the meaning stated in section 2 of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1331).
       (2) Issuance of leases, permits, and licenses.--
     Notwithstanding any other law, the head of a Federal agency 
     may not issue a lease, permit, or license for the exploration 
     for or development or production of oil, gas, or other 
     minerals in or from the Zone.
       (3) Exploration, development, and production.--
     Notwithstanding any other law, a person may not engage in the 
     exploration for, or the development or production of, oil, 
     gas, or other minerals in or from the Zone after the date of 
     the cancellation, expiration, relinquishment, or termination 
     of a lease, permit, or license in effect on June ____, 1995, 
     that permits exploration, development, or production.
       (b) Ocean Incineration and Dumping.--Notwithstanding any 
     other law, the head of a Federal agency may not issue a 
     lease, permit, or license for--
       (1) ocean incineration or harmful ocean dumping within the 
     Zone; or [[Page S8036]] 
       (2) any onshore facility that facilitates ocean 
     incineration or harmful ocean dumping within the Zone.

     SEC. 6. FISHING.

       This Act is not intended to regulate, restrict, or prohibit 
     commercial or recreational fishing, or other harvesting of 
     ocean life in the Zone.
                                 ______

      By Mr. BOND:
  S. 895. A bill to amend the Small Business Act to reduce the level of 
participation by the Small Business Administration in certain loans 
guaranteed by the Administration, and for other purposes; to the 
Committee on Small Business.


           THE SMALL BUSINESS LENDING ENHANCEMENT ACT OF 1995

 Mr. BOND. Mr. President, as our Nation rushes toward the 21st 
century, we are living in a critical time for small business men and 
women. For over 40 years, it has been our Government's policy to 
encourage the growth of small business and entrepreneurship. With all 
the discussion today about reinventing or reorganizing Government, I am 
concerned that too much emphasis has shifted away from our Government's 
role in promoting small business. We must be committed to deficit 
reduction, but we also must remain committed to the vital small 
business sector of our economy.
  As chairman of the Committee on Small Business, I believe it is time 
to reassure America's small business owners and entrepreneurs that 
their Government is behind them 100 percent. During the past 10 years, 
as large businesses have restructured, laying off thousands of very 
able workers, small businesses have filled this void, creating up to 
five new jobs for each person laid off as the result of a corporate 
restructuring. During these years, economic growth has been fueled by 
small business. Fifty-four percent of America's work force now is 
employed by small businesses which generate 50 percent of the gross 
domestic product.
  As we experience this period of restructuring and significant change 
in our business community, many small businesses have flourished. And 
their success has added to our Federal tax revenue base.
  As small businesses are confronted with the uncertainties of a 
changing Government, I believe we should provide them with positive 
assurance that their Government will continue to support them in the 
future. Therefore, I have developed the following five fundamental 
principles for reform, that define the critical role that the Small 
Business Administration should play as we prepare for the next fiscal 
year and the next century.
  First, consolidate and redesign small business loan guarantee 
programs: Abolish all SBA direct loan programs except for Disaster 
Assistance. Implement a simpler and safer credit support role for SBA 
to encourage private sector loans to small business.
  Second, make SBA an effective small business advocate: Change SBA's 
structure and refocus SBA's resources to make it an effective advocate 
and ombudsman for small business on Federal governmental policy issues. 
SBA field offices and Small Business Development Centers should work 
together to provide regulatory compliance assistance to small 
businesses and act as a watchdog for excessive Federal regulatory 
behavior.
  Third, refocus SBA's role in small business Government contracting: 
Retain SBA's role to encourage Federal Government contracting 
opportunities available to all small businesses. Discontinue the 
practice of having SBA act as a contracting party with the Federal 
Government and then subcontracting with small businesses. Consider a 
new Federal contracting preference for small business located in, and 
hiring employees from, high unemployment and low income areas.
  Fourth, redesign SBA's role in small business venture capital: 
Increase private sector responsibilities in funding SBA's Small 
Business Investment Company Program. Investigate authorizing a 
Government sponsored enterprise to issue pooled securities to fund 
venture capital investments made by SBIC's.
  Fifth, shift small business counseling and management assistance to 
the private sector: Phase out SBA's direct delivery of small business 
management assistance and business counseling, and shift the cost of 
SBA sponsored management assistance increasingly to colleges, 
universities, and to the States. Encourage the lending community to 
offer business counseling to applicants for SBA guaranteed loans.
  I am setting forth these five fundamentals for reform as a positive 
statement to our Nation's small business community to assure them that 
Government reform does not mean they suddenly have been forgotten. And 
as a demonstration of my strong belief that we need to implement the 
reforms spelled out in the five fundamentals, today I am introducing 
the Small Business Lending Enhancement Act of 1995.
  This legislation will increase the supply of loans available under 
the Small Business Administration's 7(a) Guaranteed Business Loan 
Program. The direct beneficiaries of this bill are America's small 
business men and women who otherwise would not be able to obtain 
affordable financing for their companies. The formula I have chosen for 
this bill authorizes a combination of lower guarantee levels and higher 
lender fees to increase loan capacity and reduce the taxpayer subsidy 
of these loans.
  The impact of these changes dramatically decreases the amount of the 
loan loss reserve that must be funded out of annual congressional 
appropriations. In fiscal year 1995, SBA's 7(a) loan program needed 
$215 million in appropriated funds to support a $7.8 billion guaranteed 
loan program. Under my bill, in fiscal year 1996, the 7(a) program can 
grow to $11 billion but will only require $119 million in 
appropriations. While the loan program size increases by 41 percent, 
there is a 44 percent decrease in taxpayer cost to fund the program.
  This bill is structured to balance the demands of the popular 7(a) 
Guaranteed Business Loan Program with prudent fiscal management. While 
I am committed to balancing the Federal budget, I will work to retain 
and improve effective programs, like 7(a). I believe the dual avenue I 
am advocating--combining increased fees from lenders with a decreased 
appropriations level--creates the correct balance in these times of 
fiscal restraint.
  Small business owners need access to capital, and the Small Business 
Lending Enhancement Act of 1995 is the first step toward meeting the 
financing demands of small businesses. My bill is just a beginning. I 
will continue to study additional enhancements for the 7(a) program, as 
well as other ways to streamline and improve the manner in which we 
carry out our Federal policy of encouraging our small business 
community to continue its growth into the 21st century.
  Mr. President, I ask unanimous consent that the bill and certain 
additional materials be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:
                                 S. 895

       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 ``Small Business Lending 
     Enhancement Act of 1995''.

     SEC. 2. REDUCED LEVEL OF PARTICIPATION IN GUARANTEED LOANS.

       Section 7(a)(2) of the Small Business Act (15 U.S.C. 
     636(a)(2)) is amended to read as follows:
       ``(2) Level of participation in guaranteed loans.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     in an agreement to participate in a loan on a deferred basis 
     under this subsection (including a loan made under the 
     Preferred Lenders Program), such participation by the 
     Administration shall be equal to--
       ``(i) 75 percent of the balance of the financing 
     outstanding at the time of disbursement of the loan, if such 
     balance exceeds $100,000; or
       ``(ii) 80 percent of the balance of the financing 
     outstanding at the time of disbursement of the loan, if such 
     balance is less than or equal to $100,000.
       ``(B) Reduced participation upon request.--
       ``(i) In general.--The guarantee percentage specified by 
     subparagraph (A) for any loan under this subsection may be 
     reduced upon the request of the participating lender.
       ``(ii) Prohibition.--The Administration shall not use the 
     guarantee percentage requested by a participating lender 
     under clause (i) as a criterion for establishing priorities 
     in approving loan guarantee requests under this subsection.
       ``(C) Interest rate under preferred lenders program.--
       ``(i) In general.--The maximum interest rate for a loan 
     guaranteed under the Preferred Lenders Program shall not 
     exceed the [[Page S8037]] maximum interest rate, as 
     determined by the Administration, applicable to other loans 
     guaranteed under this subsection.
       ``(ii) Preferred lenders program defined.--For purposes of 
     this subparagraph, the term `Preferred Lenders Program' means 
     any program established by the Administrator, as authorized 
     under the proviso in section 5(b)(7), under which a written 
     agreement between the lender and the Administration delegates 
     to the lender--

       ``(I) complete authority to make and close loans with a 
     guarantee from the Administration without obtaining the prior 
     specific approval of the Administration; and
       ``(II) authority to service and liquidate such loans.''.

     SEC. 3. GUARANTEE FEES.

       (a) Amount of Fees.--Section 7(a)(18) of the Small Business 
     Act (15 U.S.C. 636(a)(18)) is amended to read as follows:
       ``(18) Guarantee fees.--With respect to each loan 
     guaranteed under this subsection (other than a loan that is 
     repayable in 1 year or less), the Administration shall 
     collect a guarantee fee, which shall be payable by the 
     participating lender and may be charged to the borrower, in 
     an amount equal to the sum of--
       ``(A) 3 percent of the amount of the deferred participation 
     share of the loan that is less than or equal to $250,000;
       ``(B) if the deferred participation share of the loan 
     exceeds $250,000, 4 percent of the difference between--
       ``(i) $500,000 or the total deferred participation share of 
     the loan, whichever is less; and
       ``(ii) $250,000; and
       ``(C) if the deferred participation share of the loan 
     exceeds $500,000, 5 percent of the difference between--
       ``(i) the total deferred participation share of the loan; 
     and
       ``(ii) $500,000.
       (b) Repeal of Provisions Allowing Retention of Fees by 
     Lenders.--Section 7(a)(19) of the Small Business Act (15 
     U.S.C. 636(a)(19)) is amended--
       (1) in subparagraph (B)--
       (A) by striking ``shall (i) develop'' and inserting ``shall 
     develop''; and
       (B) by striking ``, and (ii)'' and all that follows through 
     the end of the subparagraph and inserting a period; and
       (2) by striking subparagraph (C).

     SEC. 4. ESTABLISHMENT OF ANNUAL FEE.

       (a) In General.--Section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)) is amended by adding at the end the following 
     new paragraph:
       ``(23) Annual fee.--In carrying out this subsection, the 
     Administration shall, in accordance with such terms and 
     procedures as the Administration shall establish by 
     regulation, assess and collect an annual fee, which shall be 
     payable by the participating lender, in an aggregate amount 
     equal to not more than 0.4 percent of the outstanding balance 
     of the deferred participation share of the loan.''.
       (b) Conforming Amendment.--Section 5(g)(4)(A) of the Small 
     Business Act (15 U.S.C. 634(g)(4)(A)) is amended--
       (1) by striking the first sentence and inserting the 
     following: ``The Administration may collect a fee for any 
     loan guarantee sold into the secondary market under 
     subsection (f) in an amount equal to not more than 50 percent 
     of the portion of the sale price that exceeds 110 percent of 
     the outstanding principal amount of the portion of the loan 
     guaranteed by the Administration.''; and
       (2) by striking ``fees'' each place such term appears and 
     inserting ``fee''.

     SEC. 5. TECHNICAL AMENDMENT.

       Section 3 of the Small Business Act (15 U.S.C. 632) is 
     amended by adding at the end the following new subsection:
       ``(o) Participating Lender.--For purposes of this Act, the 
     term `participating lender' means any bank or other financial 
     institution that enters into an agreement with the 
     Administration described section 7(a) to provide financing in 
     accordance with that section.''.
                                                                    ____

 Taking the Small Business Administration into the 21st Century--Five 
                   Fundamental Principles for Reform

       1. Consolidate and Redesign Small Business Loan Guarantee 
     Programs.
       Abolish all SBA direct loan programs except for Disaster 
     Assistance. Implement a simpler and safer credit support role 
     for SBA to encourage private sector loans to small 
     businesses. Reduce the federal government's guarantee 
     exposure and shift more of the costs of this credit support 
     from the taxpayer to the private sector. Create an enhanced 
     role for secondary market transactions to compensate SBA for 
     the value of its guarantee. Change SBA's role in the program 
     from approving individual loans to one of carefully 
     regulating and overseeing increased responsibilities for 
     private sector program participants.
       2. Make SBA an Effective Small Business Advocate.
       Change SBA's structure and refocus SBA's resources to make 
     it an effective advocate and ombudsman for small business on 
     federal governmental policy issues. SBA field offices will 
     have a Small Business and Agriculture Ombudsman to work 
     together with Small Business Development Centers to offer 
     small business regulatory compliance assistance and act as a 
     watchdog for excessive or inappropriate regulatory 
     enforcement against small businesses by federal agencies. SBA 
     should receive citizen input in these activities from small 
     business volunteers appointed to newly-created Small Business 
     Regulatory Fairness Boards throughout the country.
       3. Refocus SBA's Role in Small Business Government 
     Contracting.
       Retain SBA's fundamental monitoring and informational role 
     to encourage the federal government to make government 
     contracting opportunities available to all small businesses 
     to the maximum extent possible. Discontinue the practice of 
     having SBA act as a contracting party with the federal 
     government and then subcontracting with small businesses. 
     Investigate the possibility of establishing a federal 
     contracting preference for small businesses located in, and 
     hiring a significant number of employees from, geographic 
     areas with high unemployment and low average incomes.
       4. Redesign SBA's Role in Small Business Venture Capital.
       Increase private sector responsibilities in the funding of 
     SBA's Small Business Investment Company program for small 
     business venture capital. Continue SBA's role in the 
     licensing and supervision of SBIC's. Investigate the 
     possibility of reducing federal funding of the SBIC program 
     and limiting guarantee exposure for individual company 
     investments by authorizing a government sponsored enterprise 
     to issue pooled securities to fund venture capital 
     investments made by SBIC's.
       5. Shift Small Business Counseling and Management Assistant 
     to the Private Sector.
       Phase out SBA's direct delivery of small business 
     management assistance and business counseling. Gradually 
     reduce SBA's subsidization of private sector business 
     assistance and counseling, shifting these costs increasingly 
     to colleges and universities, and to the states. Encourage 
     lenders participating in SBA's small business credit support 
     program to offer small business counseling to applicants for 
     SBA supported loans.
                                                                    ____

           The Small Business Lending Enhancement Act of 1995


                   participation in guaranteed loans

       Reduces the maximum level of participation in guaranteed 
     loans as follows:
       1. 75% guarantee rate\1\ on any loan participation 
     exceeding $100,000; or,
     Footnotes at end of article.
       2. 80% guarantee rate\2\ on loan participation of less than 
     $100,000 (i.e., LowDoc loans).


                             guarantee fees

       A. Amends the guarantee fee\3\ on 7(a) loans to:
       1. 3% on the guaranteed amount between $0 and $250,000;
       2. 4% of the guaranteed amount between $250,001 and 
     $500,000; and,
       3. 5% on the guaranteed amount between $500,001 and 
     $750,000.
       B. Repeals the option for banks to retain 50% of the 
     guaranty fee for small (\4\) and rural (\5\) loans.


                           annual lender fee

       Requires lenders to pay an annual fee(\6\) equal to .40% on 
     the outstanding balance of the guaranteed amount.


                               Footnotes

     \1\Existing guarantee is 85% for loans between $155,001 and 
     $750,000 with maximum term of ten years. Alternatively, a 75% 
     guarantee is available for loans between $155,001 and 
     $750,000 with a term of greater than 10 years. Preferred 
     Lenders would be able to obtain guarantees as high as 75%; 
     currently their guarantee level is capped at 70%.
     \2\The existing guarantee level on loans of up to $155,001 is 
     90%.
     \3\The current guarantee fee is .20% of the guaranteed 
     amount, regardless of loan size.
     \4\Applies to loans of up to $50,000.
     \5\Applies to loans of up to $75,000. This provision is set 
     to expire on 10/1/95.
     \6\At present, the lender fee is charged only on those loans 
     sold in the secondary market.
                                 ______

      By Mr. CHAFEE (for himself, Mr. McCain, Mr. Inouye, Mr. Bradley, 
        Mrs. Kassebaum, Mr. Glenn, Mrs. Murray, Mr. Santorum, Mr. 
        Craig, and Mr. Simpson):
  S. 896. A bill to amend title XIX of the Social Security Act to make 
certain technical corrections relating to physicians' services, and for 
other purposes; to the Committee on Finance.


                          medicaid legislation

 Mr. CHAFEE. Mr. President, today I am introducing legislation 
which makes a technical correction to the Omnibus Budget Reconciliation 
Act of 1990 [OBRA 90]. These changes would allow pregnant women and 
children enrolled in the Medicaid Program to continue receiving 
services from osteopathic physicians.
  The 1990 provisions were meant to prevent unqualified physicians from 
caring for Medicaid patients. Strict guidelines were enacted, requiring 
physicians working with these populations to be certified in family 
practice, pediatrics, or obstetrics, by the applicable medical 
specialty board recognized by the American Board of Medical Specialties 
[ABMS].
  While the 1990 budget legislation recognizes the importance of the 
ABMS in 
[[Page S8038]] certifying physicians trained in allopathics, it does 
not recognize the authority of the American Osteopathic Association 
[AOA] in certifying osteopathic physicians. As one out of every four 
Medicaid recipients receives health care from an osteopath, this policy 
only makes life more difficult for those on Medicaid.
  It is important that we rectify this situation. Osteopaths have been 
an integral and vital part of our Nation's medical community for over a 
century. This important change ensures that our health care system 
continues to grow more accessible and reliable for those who depend 
upon it.
  I urge my colleagues to join me in this effort, and look forward to 
working with them toward the bill's enactment.
                                 ______

      By Mrs. FEINSTEIN:
  S. 897. A bill to provide for a nationally coordinated program of 
research, promotion, and consumer information regarding kiwifruit for 
the purpose of expanding domestic and foreign markets for kiwifruit; to 
the Committee on Agriculture, Nutrition, and Forestry.


 the national kiwifruit research, promotion, and consumer information 
                                  act

 Mrs. FEINSTEIN.
 Mr. President, today I am introducing legislation to provide for a 
nationally coordinated program of research, promotion, and consumer 
information regarding kiwifruit for the purpose of expanding domestic 
and foreign markets for kiwifruit.

  This bill is identical to H.R. 1486 introduced in the House by 
Congressman Wally Herger, Congressman Vic Fazio, and others.
  The kiwifruit industry is an important and growing sector in American 
agriculture, with tremendous potential to expand sales both at home and 
abroad through increased promotion and consumer education.
  California presently represents 99 percent of the U.S. kiwifruit 
production.
  Kiwifruit are commercially grown in Kern, Tulare, Fresno, San 
Joaquin, Yolo, Sutter, Butte, Yuba, and Colusa Counties.
  Altogether, there are about 700 kiwifruit growers in my State.
  In 1993, U.S. consumption of kiwifruit was 59 percent California 
grown, 33 percent Chilean imports, and 8 percent New Zealand imports.
  It is my understanding that Chilean exporters have expressed interest 
in participating with California growers in promoting kiwifruit to 
encourage increased domestic consumption and expand opportunities in 
foreign markets.
  The self-help program, administered by the Department of Agriculture, 
would be funded almost entirely by industry user fees. The industry 
would assess benefiting domestic growers and importers to equitably 
share in the costs.
  Currently there are 18 similar federally authorized commodity 
research and promotion programs.
  Once Congress approved the authorizing legislation, the promotion 
program must be approved by a majority of the handlers of kiwifruit, 
including the handlers of imported kiwifruit.
  Specifically, this bill would authorize the Secretary of Agriculture 
to issue a federal order for kiwifruit research, promotion, and 
consumer information; establish an eleven member kiwifruit board 
composed of six growers, four importers, and one member of the general 
public to run the promotion program; authorize the kiwifruit board to 
collect assessments, at no more than $0.10 per seven pound tray of 
kiwifruit, to pay for research, promotion, and consumer information and 
for administrative expenses incurred by the kiwifruit board; authorize 
use of the assessments not only for domestic generic promotion, but 
also for promotion activities outside the United States; and require 
the kiwifruit order to be approved by a majority of the producers and 
importers and by a majority of those producing and importing more than 
50 percent of the total volume of kiwifruit produced and imported.
  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. 897

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``National 
     Kiwifruit Research, Promotion, and Consumer Information 
     Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Issuance of Kiwifruit Research, Promotion, and Consumer 
              Information Order.
Sec. 5. National Kiwifruit Board.
Sec. 6. Required terms in order.
Sec. 7. Permissive terms in order.
Sec. 8. Incorporation of petition and review, enforcement, and 
              investigation provisions by reference.
Sec. 9. Referenda.
Sec. 10. Suspension and termination of order by Secretary.
Sec. 11. Authorization of appropriations.
Sec. 12. Regulations.
     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) domestically produced kiwifruit are grown by many 
     individual producers;
       (2) virtually all domestically produced kiwifruit are grown 
     in the State of California, although there is potential for 
     production in many other areas of the United States;
       (3) kiwifruit move in interstate and foreign commerce, and 
     kiwifruit that do not move in such channels of commerce 
     directly burden or affect interstate commerce;
       (4) in recent years, large quantities of kiwifruit have 
     been imported into the United States;
       (5) the maintenance and expansion of existing domestic and 
     foreign markets for kiwifruit, and the development of 
     additional and improved markets for kiwifruit, are vital to 
     the welfare of kiwifruit producers and other persons 
     concerned with producing, marketing, and processing 
     kiwifruit;
       (6) a coordinated program of research, promotion, and 
     consumer information regarding kiwifruit is necessary for the 
     maintenance and development of such markets; and
       (7) kiwifruit producers, handlers, and importers are unable 
     to implement and finance such a program without cooperative 
     action.
       (b) Purposes.--The purposes of this Act are--
       (1) to authorize the establishment of an orderly procedure 
     for the development and financing (through an assessment) of 
     an effective and coordinated program of research, promotion, 
     and consumer information regarding kiwifruit;
       (2) to use such program to strengthen the position of the 
     kiwifruit industry in domestic and foreign markets and 
     maintain, develop, and expand markets for kiwifruit; and
       (3) to treat domestically produced kiwifruit and imported 
     kiwifruit equitably.

     SEC. 3. DEFINITIONS.

       As used in this Act:
       (1) Board.--The term ``Board'' means the National Kiwifruit 
     Board, as provided for under section 5.
       (2) Consumer information.--The term ``consumer 
     information'' means any action taken to provide information 
     to, and broaden the understanding of, the general public 
     regarding the consumption, use, nutritional attributes, and 
     care of kiwifruit.
       (3) Exporter.--The term ``exporter'' means any person from 
     outside the United States who exports kiwifruit into the 
     United States.
       (4) Handler.--The term ``handler'' means any person, 
     excluding a common carrier, engaged in the business of buying 
     and selling, packing, marketing, or distributing kiwifruit as 
     specified in the order.
       (5) Importer.--The term ``importer'' means any person who 
     imports kiwifruit into the United States.
       (6) Kiwifruit.--The term ``kiwifruit'' means all varieties 
     of fresh kiwifruit grown or imported in the United States.
       (7) Marketing.--The term ``marketing'' means the sale or 
     other disposition of kiwifruit into interstate, foreign, or 
     intrastate commerce by buying, marketing, distribution or 
     otherwise placing kiwifruit into commerce.
       (8) Order.--The term ``order'' means a kiwifruit research, 
     promotion, and consumer information order issued by the 
     Secretary under section 4.
       (9) Person.--The term ``person'' means any individual, 
     group of individuals, partnership, corporation, association, 
     cooperative, or other legal entity.
       (10) Processing.--The term ``processing'' means canning, 
     fermenting, distilling, extracting, preserving, grinding, 
     crushing, or in any manner changing the form of kiwifruit for 
     the purposes of preparing it for market or marketing the 
     kiwifruit.
       (11) Producer.--The term ``producer'' means any person who 
     grows kiwifruit in the United States for sale in commerce.
       (12) Promotion.--The term ``promotion'' means any action 
     taken under this Act (including paid advertising) to present 
     a favorable image for kiwifruit to the general public for the 
     purpose of improving the competitive position of kiwifruit 
     and stimulating the sale of kiwifruit.
       (13) Research.--The term ``research'' means any type of 
     research relating to the use, nutritional value, and 
     marketing of kiwifruit conducted for the purpose of advancing 
     the image, desirability, marketability, or quality of 
     kiwifruit.
     [[Page S8039]]   (14) Secretary.--The term ``Secretary'' 
     means the Secretary of Agriculture.
       (15) United states.--The term ``United States'' means the 
     50 States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico. (7 U.S.C. 6202.)

     SEC. 4. ISSUANCE OF KIWIFRUIT RESEARCH, PROMOTION, AND 
                   CONSUMER INFORMATION ORDER.

       (a) Issuance.--To effectuate the declared purposes of this 
     Act, the Secretary shall issue an order applicable to 
     producers, handlers, and importers of kiwifruit. Any such 
     order shall be national in scope. Not more than one order 
     shall be in effect under this Act at any one time.
       (b) Procedure.--
       (1) Proposal for issuance of order.--Any person that will 
     be affected by this Act may request the issuance of, and 
     submit a proposal for, an order under this Act.
       (2) Proposed order.--Not later than 90 days after the 
     receipt of a request and proposal for an
      order, the Secretary shall publish a proposed order and give 
     due notice and opportunity for public comment on the 
     proposed order.
       (3) Issuance of order.--After notice and opportunity for 
     public comment are given, as provided in paragraph (2), the 
     Secretary shall issue an order, taking into consideration the 
     comments received and including in the order provisions 
     necessary to ensure that the order is in conformity with the 
     requirements of this Act.
       (c) Amendments.--The Secretary may amend any order issued 
     under this section. The provisions of this Act applicable to 
     orders shall be applicable to amendments to orders.

     SEC. 5. NATIONAL KIWIFRUIT BOARD.

       (a) Membership.--An order issued by the Secretary under 
     section 4 shall provide for the establishment of a National 
     Kiwifruit Board, to consist of 11 members as follows:
       (1) Six members who are producers (or their 
     representatives) and who are not exempt from an assessment 
     under section 6(b).
       (2) Four members who are importers (or their 
     representatives) and who are not exempt from an assessment 
     under section 6(b) or are exporters (or their 
     representatives).
       (3) One member appointed from the general public.
       (b) Adjustment of Membership.--Subject to the 11-member 
     limit, the Secretary may adjust membership on the Board to 
     accommodate changes in production and import levels of 
     kiwifruit, so long as producers comprise not less than 51 
     percent of the membership of the Board.
       (c) Appointment and Nomination.--
       (1) Appointment.--The Secretary shall appoint the members 
     of the Board from nominations submitted in accordance with 
     this subsection.
       (2) Producers.--The members referred to in subsection 
     (a)(1) shall be appointed from individuals nominated by 
     producers.
       (3) Importers and exporters.--The members referred to in 
     subsection (a)(2) shall be appointed from individuals 
     nominated by importers or exporters.
       (4) Public representative.--The public representative shall 
     be appointed from nominations submitted by other members of 
     the Board.
       (5) Failure to nominate.--If producers, importers, and 
     exporters fail to nominate individuals for appointment, the 
     Secretary may appoint members on a basis provided for in the 
     order. If the Board fails to nominate a public 
     representative, such member may be appointed by the Secretary 
     without a nomination.
       (d) Alternates.--The Secretary shall appoint an alternate 
     for each member of the Board. An alternate shall--
       (1) be appointed in the same manner as the member for whom 
     such individual is an alternate; and
       (2) serve on the Board if such member is absent from a 
     meeting or is disqualified under subsection (f).
       (e) Terms.--Members of the Board shall be appointed for a 
     term of three years. No member may serve more than two 
     consecutive three-year terms. However, of the members first 
     appointed--
       (1) five members shall be appointed for a term of two 
     years; and
       (2) six members shall be appointed for a term of three 
     years.
       (f) Replacement.--If a member or alternate of the Board who 
     was appointed as a producer, importer, exporter, or public 
     representative member ceases to belong to the group for which 
     such member was appointed, such member or alternate shall be 
     disqualified from serving on the Board.
       (g) Compensation.--Members and alternates of the Board 
     shall serve without pay.
       (h) General Powers and Duties.--The Board shall--
       (1) administer orders issued by the Secretary under section 
     4, and amendments to such orders, in accordance with their 
     terms and provisions and consistent with this Act;
       (2) prescribe rules and regulations to effectuate the terms 
     and provisions of such orders;
       (3) meet, organize, and select from among members of the 
     Board a chairperson, other officers, and committees and 
     subcommittees, as the Board determines appropriate;
       (4) receive, investigate, and report to the Secretary 
     accounts of violations of such orders;
       (5) make recommendations to the Secretary with respect to 
     amendments that should be made to such orders; and
       (6) employ or contract with a manager and staff to assist 
     in administering such orders, except that, in order to reduce 
     administrative costs and increase efficiency, the Board shall 
     seek, to the extent possible, to employ or contract with 
     personnel who are already associated with State chartered 
     organizations involved in promoting kiwifruit.

     SEC. 6. REQUIRED TERMS IN ORDER.

       (a) Budgets and Plans.--An order issued under section 4 
     shall provide for periodic budgets and plans as follows:
       (1) Budgets.--The Board shall prepare and submit to the 
     Secretary a budget prior to the beginning of the fiscal year 
     of the anticipated expenses and disbursements of the Board in 
     the administration of the order, including probable costs of 
     research, promotion, and consumer information. A budget shall 
     take effect upon a two-thirds vote of a quorum of the Board 
     and approval by the Secretary.
       (2) Plans.--Each budget shall include a plan for research, 
     promotion, and consumer information regarding kiwifruit. A 
     plan under this paragraph shall take effect upon approval by 
     the Secretary. The Board may enter into contracts and 
     agreements, upon approval by the Secretary, for--
       (A) the development and carrying out of such plan; and
       (B) the payment of the cost of such plan, with funds 
     collected pursuant to this Act.
       (b) Assessments.--Such order shall provide for the 
     imposition and collection of assessments with regard to the 
     production and importation of kiwifruit as follows:
       (1) Rate.--The assessment rate shall be recommended by a 
     two-thirds vote of a quorum of the Board, approved by the 
     Secretary, but shall not exceed $0.10 per seven pound tray of 
     kiwifruit or equivalent.
       (2) Collection by first handlers.--Except as provided in 
     paragraph (4), the first handler of kiwifruit shall--
       (A) be responsible for the collection from the producer, 
     and payment to the Board, of assessments under this 
     subsection; and
       (B) maintain a separate record of the kiwifruit of each 
     producer whose kiwifruit are so handled, including the 
     kiwifruit owned by the handler.
       (3) Importers.--The assessment on imported kiwifruit shall 
     be paid by the importer to the United States Customs Service 
     at the time of entry into the United States and shall be 
     remitted to the Board.
       (4) Exemption from assessment.--The following persons or 
     activities are exempt from an assessment under this 
     subsection:
       (A) A producer who produces less than 500 pounds of 
     kiwifruit per year.
       (B) An importer who imports less than 10,000 pounds of 
     kiwifruit per year.
       (C) Sales of kiwifruit made directly from the producer to a 
     consumer for a purpose other than resale.
       (D) The production or importation of kiwifruit for 
     processing.
       (5) Claim of exemption.--To claim an exemption under 
     paragraph (4) for a particular year, a person shall--
       (A) submit an application to the Board stating the basis 
     for the exemption and certifying that the person will not 
     exceed any poundage limitation required for the exemption in 
     such year; or
       (B) be on a list of approved processors developed by the 
     Board.
       (c) Use of Assessments.
       (1) Authorized uses.--Such order shall provide that funds 
     paid to the Board as assessments under subsection (b) may be 
     used by the Board--
       (A) to pay for research, promotion, and consumer 
     information described in the budget of the Board under 
     subsection (a) and for other expenses incurred by the Board 
     in the administration of an order;
       (B) to pay such other expenses for the administration, 
     maintenance, and functioning of the Board, including any 
     enforcement efforts for the collection of assessments as may 
     be authorized by the Secretary, including interest and 
     penalties for late payments; and
       (C) to fund a reserve established under section 7(d).
       (2) Required uses.--Such order shall provide that funds 
     paid to the Board as assessments under subsection (b) shall 
     be used by the Board--
       (A) to pay the expenses incurred by the Secretary, 
     including salaries and expenses of Government employees, in 
     implementing and administering the order; and
       (B) to reimburse the Secretary for any expenses incurred by 
     the Secretary in conducting referenda under this Act.
       (3) Limitation on use of assessments.--Except for the first 
     year of operation of the Board, expenses for the 
     administration, maintenance, and functioning of the Board may 
     not exceed 30 percent of the budget.
       (d) False Claims.--Such order shall provide that any 
     promotion funded with assessments collected under subsection 
     (b) may not make--
       (1) any false claims on behalf of kiwifruit; and
       (2) any false statements with respect to the attributes or 
     use of any product that competes with kiwifruit for sale in 
     commerce.
       (e) Prohibition on Use of Funds.--Such order shall provide 
     that funds collected by the Board under this Act through 
     assessments may not, in any manner, be used for 
     [[Page S8040]] the purpose of influencing legislation or 
     governmental policy or action, except for making 
     recommendations to the Secretary as provided for in this Act.
       (f) Books, Records, and Reports.--
       (1) By the board.--Such order shall require the Board--
       (A) to maintain books and records with respect to the 
     receipt and disbursement of funds received by the Board;
       (B) to submit to the Secretary from time to time such 
     reports as the Secretary may require for appropriate 
     accounting; and
       (C) to submit to the Secretary at the end of each fiscal 
     year a complete audit report by an independent auditor 
     regarding the activities of the Board during such fiscal 
     year.
       (2) By others.--So that information and data will be 
     available to the Board and the Secretary that is appropriate 
     or necessary for the effectuation, administration, or 
     enforcement of this Act (or any order or regulation issued 
     under this Act), such order shall require handlers and 
     importers who are responsible for the collection, payment, or 
     remittance of assessments under subsection (b)--
       (A) to maintain and make available for inspection by the 
     employees of the Board and the Secretary such books and 
     records as may be required by the order; and
       (B) to file, at the times and in the manner and content 
     prescribed by the order, reports regarding the collection, 
     payment, or remittance of such assessments.
       (g) Confidentiality.--
       (1) In general.--Such order shall require that all 
     information obtained pursuant to subsection (f)(2) be kept 
     confidential by all officers and employees of the Department 
     and of the Board. Only such information as the Secretary 
     considers relevant shall be disclosed to the public and only 
     in a suit or administrative hearing, brought at the request 
     of the Secretary or to which the Secretary or any officer of 
     the United States is a party, involving the order with 
     respect to which the information was furnished or acquired.
       (2) Limitations.--Nothing in this subsection prohibits--
       (A) issuance of general statements based on the reports of 
     a number of handlers and importers subject to an order, if 
     the statements do not identify the information furnished by 
     any person; or
       (B) the publication by direction of the Secretary of the 
     name of any person violating an order issued under section 
     4(a), together with a
      statement of the particular provisions of the order violated 
     by such person.
       (3) Penalty.--Any person who willfully violates the 
     provisions of this subsection, upon conviction, shall be 
     subject to a fine of not more than $1,000, or to imprisonment 
     for not more than one year, or both, and, if a member, 
     officer, or agent of the board or an employee of the 
     Department, shall be removed from office.
       (h) Withholding Information.--Nothing in this Act shall be 
     construed to authorize the withholding of information from 
     Congress.

     SEC. 7. PERMISSIVE TERMS IN ORDER.

       (a) Permissive Terms.--On the recommendation of the Board, 
     and with the approval of the Secretary, an order issued under 
     section 4 may include the authorities specified in this 
     section and such additional terms and conditions as the 
     Secretary considers necessary to effectuate the other 
     provisions of the order and are incidental to, and not 
     inconsistent with, the terms and conditions required by this 
     Act.
       (b) Alternative Payment and Reporting Schedules.--Such 
     order may authorize the Board to designate different handler 
     payment and reporting schedules to recognize differences in 
     marketing practices and procedures.
       (c) Working Groups.--Such order may authorize the Board to 
     convene working groups drawn from producers, handlers, 
     importers, exporters, or the general public and utilize the 
     expertise of such groups to assist in the development of 
     research and marketing programs for kiwifruit.
       (d) Reserve Funds.--Such order may authorize the Board to 
     accumulate reserve funds from assessments collected pursuant 
     to section 6(b) to permit an effective and continuous 
     coordinated program of research, promotion, and consumer 
     information in years in which production and assessment 
     income may be reduced. However, any reserve fund so 
     established may not exceed the amount budgeted for operation 
     of this Act for one year.
       (e) Promotion Activities Outside United States.--Such order 
     may authorize the Board to use, with the approval of the 
     Secretary, funds collected under section 6(b) for the 
     development and expansion of sales in foreign markets of 
     kiwifruit produced in the United States.

     SEC. 8. INCORPORATION OF PETITION AND REVIEW, ENFORCEMENT, 
                   AND INVESTIGATION PROVISIONS BY REFERENCE.

       The following provisions of the Lime Research, Promotion, 
     and Consumer Information Act of 1990 (subtitle D of title XIX 
     of Public Law 101-624) shall apply to this Act and any order 
     or regulation issued under this Act:
       (1) Section 1957 (7 U.S.C. 6206), relating to petitions 
     filed by persons subject to an order issued under this Act 
     and review of administrative rulings on such petitions.
       (2) Section 1958 (7 U.S.C. 6207), relating to violations of 
     any order or regulation issued under this Act.
       (3) Section 1959 (7 U.S.C. 6208), relating to the authority 
     of the Secretary to make investigations, administer oaths and 
     affirmations, and issue subpoenas in connection with 
     inquiries under this Act.

     SEC. 9. REFERENDA.

       (a) Initial Referendum.--
       (1) Referendum required.--During the 60-day period 
     immediately preceding the proposed effective date of an order 
     issued under section 4, the Secretary shall conduct a 
     referendum among kiwifruit producers and importers who will 
     be subject to
      assessments under the order, to ascertain whether producers 
     and importers approve of the implementation of the order.
       (2) Approval of order.--The order shall become effective, 
     as provided in section 4, if the Secretary determines that 
     the order has been approved by a majority of the producers 
     and importers voting in the referendum and these producers 
     and importers produce and import more than 50 percent of the 
     total volume of kiwifruit produced and imported by persons 
     voting in the referendum.
       (b) Subsequent Referenda.--The Secretary may periodically 
     conduct a referendum to determine if kiwifruit producers and 
     importers favor the continuation, termination, or suspension 
     of any order issued under section 4 and in effect at the time 
     of the referendum.
       (c) Required Referenda.--The Secretary shall hold a 
     referendum under subsection (b)--
       (1) at the end of the six-year period beginning on the 
     effective date of the order and at the end of every six-year 
     period thereafter;
       (2) at the request of the Board; and
       (3) if not less than 40 percent of the kiwifruit producers 
     and importers subject to assessments under the order submit a 
     petition requesting such a referendum.
       (d) Vote.--Upon completion of a referendum under subsection 
     (b), the Secretary shall suspend or terminate the order that 
     was subject to the referendum at the end of the marketing 
     year if--
       (1) the suspension or termination of the order is favored 
     by not less than a majority of the producers and importers 
     voting in the referendum; and
       (2) these producers and importers produce and import more 
     than 50 percent of the total volume of kiwifruit produced and 
     imported by persons voting in the referendum.
       (e) Confidentiality.--The ballots and other information or 
     reports that reveal, or tend to reveal, the vote of any 
     person under this Act as well as the voting list shall be 
     held strictly confidential and shall not be disclosed.

     SEC. 10. SUSPENSION AND TERMINATION OF ORDER BY SECRETARY.

       (a) Upon Finding.--If the Secretary finds that an order 
     issued under section 4, or a provision of such an order, 
     obstructs or does not tend to effectuate the purposes of this 
     Act, the Secretary shall terminate or suspend the operation 
     of such order or provision.
       (b) Limitation.--The termination or suspension of any 
     order, or any provision thereof, shall not be considered an 
     order within the meaning of this Act.

     SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated for each fiscal 
     year such funds as are necessary to carry out this Act.

     SEC. 12. REGULATIONS.

       The Secretary may issue such regulations as are necessary 
     to carry out this Act.
                                 ______

      By Mr. MURKOWSKI (by request):
  S. 898. A bill to amend the Helium Act to cease operation of the 
government helium refinery, authorize facility and crude helium 
disposal, and cancel the helium debt, and for other purposes; to the 
Committee on Energy and Natural Resources.


                    the helium disposal act of 1995

 Mr. MURKOWSKI. Mr. President, on behalf of the administration, 
I introduce the Helium Disposal Act of 1995. This legislation was 
submitted to the Senate Committee on Energy and Natural Resources by 
the administration as a legislative proposal needed to implement the 
President's budget for fiscal year 1996.
  While I support ending helium refining and marketing operations by 
the U.S. Bureau of Mines, I do not support the administration's 
legislation.
  I am a cosponsor of Senator Thomas' legislation, S. 738, the Helium 
Act of 1995. I support Mr. Thomas' legislation and look forward to 
working with him to enact responsible legislation that will end the 
Federal Government's involvement in the refining and marketing of 
helium in the United States.
                                 ______

      By Mr. BENNETT (for himself and Mr. Hatch):
  S. 900. A bill to amend the Reclamation Projects Authorization and 
Adjustment Act of 1992 to direct the Secretary of the Interior to allow 
for prepayment of repayment contracts between the United States and the 
Central Utah Water Conservancy District dated December 28, 1965, and 
November 26, 1985, and for other purposes; to the Committee on Energy 
and Natural Resources.
[[Page S8041]]

       the central utah project prepayment amendment act of 1995

  Mr. BENNETT. Mr. President, today I am introducing along with my 
colleague from Utah, Senator Hatch, a bill to extend the authority of 
the Secretary of the Interior to accept prepayment of portions of the 
Central Utah Project [CUP]. In 1992, Congress enacted Public Law 102-
575 which contained the Central Utah Project Completion Act of CUPCA. 
Section 210 of CUPCA authorized the Secretary to negotiate and accept 
early payment from the waterusers for the Jordan Aqueduct component of 
CUP. This prepayment ultimately proved to be a win/win deal for both 
the Federal Government and for the waterusers. Shortly after the 
agreement was signed on October 18, 1993, which concluded the terms of 
the prepayment, the Federal Government received a check from the local 
waterusers totaling $35.2 million. The local water districts have also 
saved money through the refinancing by shortening the total number of 
payments they must make.
  The legislation we introduce today amends section 210 of the CUPCA 
broadens the Secretary's ability to accept prepayment from the Central 
Utah Water Conservancy District for the rest of the District's debt to 
the Federal
 government on the same terms and conditions that were negotiated for 
the Jordan Aqueduct. According to estimates provided by the district's 
bonding counsel, it is expected that prepayment of the district's 
remaining debt could yield the Federal Treasury between $145 to $200 
million over the next 4 to 5 years. Mr. President, this is a 
significant amount of money which we are in certain need of as we move 
to balance the Federal budget over the next 7 years. I want to say that 
this bill does nothing with respect to title to the water project 
features. They will remain in the name of the United States. This bill 
is a simple prepayment which will save the Central Utah Water 
Conservancy District money by shortening its repayment term and will 
provide the Federal Government a significant amount of revenue at a 
most critical time. It is my understanding that the extension of this 
prepayment authority has been reviewed by the district with the 
Secretary's official representative to the CUP and that the Department 
of the Interior will support this legislation. I want to thank the 
district and the Department of the Interior for working together to 
bring about this win-win scenario.

  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. 900

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

     SECTION 1. PREPAYMENT OF REPAYMENT CERTAIN CONTRACTS BETWEEN 
                   THE UNITED STATES AND THE CENTRAL UTAH WATER 
                   CONSERVANCY DISTRICT.

       Section 210 of the Reclamation Projects Authorization and 
     Adjustment Act of 1992 (106 Stat. 4624) is amended by 
     striking the second sentence and inserting the following: 
     ``The Secretary shall allow for prepayment of repayment 
     contracts between the United States and the District dated 
     December 28, 1965 and November 26, 1985, providing for 
     repayment of the municipal and industrial water delivery 
     facilities for which repayment is provided pursuant to those 
     contracts, under the same terms and conditions as are 
     contained in the supplemental contract providing for the 
     prepayment of the Jordan Aqueduct System dated October 28, 
     1993.''.
                                 ______

      By Mr. BENNETT (for himself and Mr. Hatch):
  S. 901. A bill to amend the Reclamation Projects Authorization and 
Adjustment Act of 1992 to authorize the Secretary of the Interior to 
participate in the design, planning, and construction of certain water 
reclamation and reuse projects and desalination research and 
development projects, and for other purposes; to the Committee on 
Energy and Natural Resources.


  THE RECLAMATION PROJECTS AUTHORIZATION AND ADJUSTMENT ACT AMENDMENTS 
                                OF 1995

  Mr. BENNETT. Mr. President, today I rise to introduce the Reclamation 
Projects Authorization and Adjustment Act Amendments of 1995. This 
legislation amends title XVI of the Reclamation Projects Authorization 
and Adjustment Act of 1992 to expand participation of public water 
providers in water reuse and recycling projects. This bill provides a 
sensible and lasting solution to the growing problem of dwindling 
municipal, industrial, and agricultural water supplies in many areas of 
the country. This bill will also help protect and preserve 
environmentally sensitive watershed environments by reducing demand for 
freshwater supplies.
  In my home State, Utah, water is a precious commodity and this 
legislation will allow for the better use and management of our limited 
water supply. In particular, both Salt Lake City and St. George will 
greatly benefit from this legislation.
  Economically and environmentally, the next step to guaranteeing more 
dependable and cheaper supplies of water is water reuse and recycling. 
Recycling programs treat wastewater so that it can be safely used to 
irrigate land, golf courses, crops, and freeway medians, and replenish 
groundwater basins. Recycled water is also increasingly being used by 
industry.
  In addition, the Bureau of Reclamation has ended their chapter of 
building large western dams. Their mission now is to assist in the 
water management of existing water supplies. From a public policy point 
of view, it is far cheaper to help our local western communities 
recycle their water than it is to construct new reservoirs and water 
delivery facilities. This legislation accomplishes this goal.
  Past Federal legislation such as the Endangered Species Act and the 
Central Valley Improvement Act have placed tremendous stress on fresh 
water reserves by mandating that large portions of water sources be 
diverted from use by municipal water suppliers to be dedicated to 
general fish and wildlife and habitat purposes.
  As a result, public water agencies have begun to search for 
alternative sources of water to meet the demands of rising populations 
and the limiting effects of regulatory burdens. The costs of importing 
water over great distances or storing vast reserves of water have begun 
to make other sources of water more economically feasible. The added 
environmental benefits also make these sources increasingly desirable.
  Title XVI of the Reclamation Projects Authorization and Adjustment 
Act of 1992 provides for water recycling projects and has been a major 
success. It should be considered a model for other infrastructure 
funding efforts. Compared to other Federal programs it is ``user 
friendly'' and virtually free of red tape, and because the program is 
highly leveraged, meaning 75 percent local cost sharing, it is not 
subject to criticism for subsidizing unworthy projects. As a result the 
water recycling program has enjoyed wide bipartisan support in Congress 
and from both the Bush and Clinton administrations. It is also backed 
by national and local environmental organizations.
  Because of the success of Title XVI, communities from around the 
country are beginning to look at water recycling as not only an 
attractive new way to serve their customers but also the environment.
  This is a unique, win-win program which goes a long way toward 
preparing for the future, preserving fresh water reserves protecting 
the Nation's environment.
  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. 901

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

     SECTION 1. WATER RECYCLING PROJECTS.

       Section 1602 of the Reclamation Projects Authorization and 
     Adjustment Act of 1992 (43 U.S.C. 390h) is amended by adding 
     at the end the following:
       ``(e) Participation in Certain Projects.--
       ``(1) In general.--The Secretary, in cooperation with the 
     appropriate State and local authorities, is authorized to 
     participate in the design, planning, and construction of the 
     following water reclamation and reuse projects:
       ``(A) The North San Diego County Area Water Recycling 
     Project, consisting of projects to reclaim and reuse water in 
     the service areas of the San Elijo Joint Powers Authority, 
     the Leucadia County Water District, and the Olivenhain 
     Municipal Water District, California. [[Page S8042]] 
       ``(B) The Calleguas Municipal Water District Water 
     Recycling Project to reclaim and reuse water in the service 
     area of the Calleguas Municipal Water District in Ventura, 
     California.
       ``(C) The Central Valley Water Recycling Project to reclaim 
     and reuse water in the service areas of the Central Valley 
     Reclamation Facility and the Salt Lake County Water 
     Conservancy District in Utah.
       ``(D) The St. George Area Water Recycling Project to 
     reclaim and reuse water in the service area of the Washington 
     County Water Conservancy District in Utah.
       ``(E) The Watsonville Area Water Recycling Project, in 
     cooperation with the city of Watsonville, California, to 
     reclaim and reuse water in the Pajaro Valley in Santa Cruz 
     County, California.
       ``(F) The Southern Nevada Water Recycling Project to 
     reclaim and reuse water in the service area of the Southern 
     Nevada Water Authority in Clark County, Nevada.
       ``(G) The Albuquerque Metropolitan Area Water Reclamation 
     and Reuse Study, in cooperation with the city of Albuquerque, 
     New Mexico, to reclaim and reuse industrial and municipal 
     wastewater and reclaim and use naturally impaired ground 
     water in the Albuquerque metropolitan area.
       ``(H) The El Paso Water Reclamation and Reuse Project to 
     reclaim and reuse wastewater in the service area of the El 
     Paso Water Utilities Public Service Board.
       ``(2) Federal share.--The Federal share of the cost of a 
     project described in paragraph (1) shall not exceed 25 
     percent of the total cost.
       ``(3) No funding for operation and maintenance.--The 
     Secretary shall not provide funds for the operation or 
     maintenance of a project described in paragraph (1).''.

     SEC. 2. DESALINATION RESEARCH AND DEVELOPMENT PROJECT.

       Section 1605 of the Reclamation Projects Authorization and 
     Adjustment Act of 1992 (43 U.S.C. 390h-3) is amended--
       (1) by striking ``The Secretary'' and inserting ``(a) In 
     General.--The Secretary''; and
       (2) by adding at the end the following:
       ``(b) Long Beach Desalination Research and Development 
     Project.--
       ``(1) In general.--The Secretary, in cooperation with the 
     city of Long Beach, the Central Basin Municipal Water 
     District, and the Metropolitan Water District of Southern 
     California, may participate in the design, planning, and 
     construction of the Long Beach Desalination Research and 
     Development Project in Los Angeles County, California.
       ``(2) Federal share.--The Federal share of the cost of the 
     project described in paragraph (1) shall not exceed 50 
     percent of the total.
       ``(3) No funding for operation and maintenance.--The 
     Secretary shall not provide funds for the operation or 
     maintenance of the project described in paragraph (1).
       ``(c) Las Vegas Area Shallow Aquifer Desalination Research 
     and Development Project.--
       ``(1) In general.--The Secretary, in cooperation with the 
     Southern Nevada Water Authority, may participate in the 
     design, planning, and construction of the Las Vegas Area 
     Shallow Aquifer Desalination Research and Development Project 
     in Clark County, Nevada.
       ``(2) Federal share.--The Federal share of the cost of the 
     project described in paragraph (1) shall not exceed 50 
     percent of the total.
       ``(3) No funding for operation and maintenance.--The 
     Secretary shall not provide funds for the operation or 
     maintenance of the project described in paragraph (1).''.
     

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