[Congressional Record Volume 141, Number 142 (Wednesday, September 13, 1995)]
[Senate]
[Pages S13540-S13545]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


          STATEMENTS OF INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. COCHRAN:
  S. 1235. A bill to amend the Federal Crop Insurance Act to authorize 
the Secretary of Agriculture to provide supplemental crop disaster 
assistance under certain circumstances, and for other purposes; to the 
Committee on Agriculture, Nutrition, and Forestry.


          THE FEDERAL CROP INSURANCE ACT AMENDMENT ACT OF 1995

 Mr. COCHRAN. Mr. President, over the last 2 months cotton 
crops in many counties in Mississippi have suffered severe damage due 
to unusually high insect infestations. It is estimated that over 
160,000 acres of cotton have been damaged amounting to a loss of over 
$100 million. This devastation has not only struck Mississippi, but 
Texas, Alabama, Tennessee, Arkansas, and Georgia as well. Early 
estimates provided by the National Cotton Council, State extension 
services, and State departments of agriculture show approximately 1.6 
million acres affected all together with over $700 million losses to 
farmers.
  Cotton farmers have spent large amounts of money trying to control 
these infestations. Many in my State will not even harvest their crops 
because of the extensive damage. Many will have crop yields so low that 
they will not even be able to recover their production costs.

[[Page S 13541]]

  Farmers have catastrophic crop insurance coverage which was mandated 
in the Federal Crop Insurance Act of 1994 as a requirement for 
participation in the cotton program. However, the damages from this 
disaster will far exceed this coverage.
  I am introducing legislation which authorizes the Secretary of 
Agriculture to provide supplemental crop disaster assistance in 
addition to benefits provided in the Crop Insurance Reform Act of 1994, 
if the Secretary determines that an extraordinary disaster situation 
exists.
  The Government's Catastrophic Crop Insurance program is not 
sufficient to help the farmers in the situation they are to recover and 
stay in business. More must be done.
  I encourage my colleagues to support this bill.
                                 ______

      By Mr. HOLLINGS (for himself, Mr. Jeffords, Mr. Kohl, Mr. Bryan, 
        Mr. Santorum, Mr. Kyl, Mr. Bumpers, Mrs. Boxer, Mr. Lugar, Mr. 
        Simpson, and Mr. Kerry):
  S. 1236. A bill to establish a commission to advise the President on 
proposals for national commemorate events; to the Committee on the 
Judiciary.


                 the national commemorative events act

  Mr. HOLLINGS. Mr. President, I rise to introduce the National 
Commemorative Events Advisory Act, the purpose of which is to create a 
Presidential advisory commission tasked with reviewing the merit of 
proposed commemorative observances.
  Mr. President, we simply must find an alternative way to review and 
limit the hundreds of congressionally sponsored commemorative 
resolutions. These resolutions are intended to honor worthy causes by 
setting aside a particular day, week, month, or year as a time of 
special recognition. In principle, this is a noble idea. But, 
regrettably, in recent years our zeal for commemoratives has gotten 
entirely out of hand.
  During the 95th Congress, we had 57 commemoratives. In the 99th 
Congress, a high-water mark was reached when 275 commemoratives were 
passed. In the 100th, 101st, 102d, and 103d Congresses, the totals fell 
slightly. However, it is shocking to note that during each of these 
four Congresses, commemoratives accounted for over 30 percent of all 
public laws passed by Congress.
  There is a very tangible cost to this excess, beginning with the fact 
that the laborious process of enlisting cosponsors and passing 
commemorative bills have become a major drain on our time as well as on 
the time of our staffs. There is also a cost in trivializing the whole 
idea of commemorative observances. We have all noticed a kind of 
Gresham's law at work, with the proliferation of bad commemoratives 
driving out of circulation the truly worthy commemoratives.
  To put it bluntly, Mr. President, this bill is designed to save us 
from ourselves--to save us from good intentions run amok. The bill 
would create a President's Advisory Commission on National 
Commemorative Events, which would have the task of conducting an 
independent merit review of commemorative proposals. Congress would no 
longer pass commemorative resolutions. Instead, the proposed advisory 
commission would be charged with the sole function of reviewing 
proposals for national commemorative events making positive or negative 
recommendations to the President.
  This Presidential advisory commission is an idea whose time has come. 
It would streamline the process of considering proposals, while saving 
the Congress considerable time and resources. In addition, it would 
provide for a fair and impartial review of the hundreds of 
commemorative proposals submitted by a large and growing number of 
constituent groups.
  There are a number of differing projections comparing the relative 
costs of passing commemorative through Congress and through an 
independent commission. To be accurate, these calculations need to take 
full account of the staff time now devoted to handling commemoratives 
in Congress.
  Mr. President, I am well aware that commemoratives are both a curse 
and a blessing for Members of Congress. They are enormously time 
consuming. However, they are also perceived as an important vehicle for 
winning the favor of worthy causes and special interests.
  I myself sponsored an amendment to the 1994 crime bill to designate 
May 1, 1995, as Law Day, U.S.A., to honor our Nation's law enforcement 
professionals. However, I am confident of the merit of this Law Day 
commemorative and would be happy to subject it to independent review by 
the proposed advisory commission.
  Mr. President, I urge my fellow Senators to join me in supporting 
this bill. We can best honor all our constituents not by passing 
commemorative after commemorative, but by applying ourselves to 
substantive legislation that will make a real difference in our 
constituent's lives.
  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. 1236

       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 ``National Commemorative 
     Events Advisory Act''.

     SEC. 2. FINDINGS.

       The Congress finds that--
       (1) the preparation and consideration of the multitude of 
     bills proposing particular days, weeks, months, or years for 
     recognition through Presidential proclamation unduly burdens 
     the Congress and consumes an inordinate amount of time;
       (2) such proposals could be more efficiently considered by 
     a commission whose sole function would be to review proposals 
     for national commemorative events and to make positive or 
     negative recommendations thereon to the President;
       (3) such a commission would streamline the process by which 
     such proposals are currently considered and save the Congress 
     considerable time and resources which could be devoted to 
     matters of more pressing national concern; and
       (4) such a commission would better ensure the impartial 
     review of proposals for national commemorative events 
     generated by a wide variety of constituent groups.

     SEC. 3. ESTABLISHMENT AND MEMBERSHIP.

       (a) In General.--There shall be established a commission to 
     be known as the ``President's Advisory Commission on National 
     Commemorative Events'' (hereafter in this Act referred to as 
     the ``Commission'').
       (b) Members.--The Commission shall be composed of 11 
     members of whom--
       (1) 2 members shall be appointed by the Speaker of the 
     House of Representatives, after consultation with the 
     majority and minority leaders of the House of 
     Representatives;
       (2) 2 members shall be appointed by the President pro 
     tempore of the Senate, after consultation with the majority 
     and minority leaders of the Senate; and
       (3) 7 members shall be appointed by the President.
       (c) Qualifications.--(1) All members of the Commission 
     shall be citizens of the United States.
       (2) Members appointed under subsection (b)(3)--
       (A) to the greatest extent possible, shall represent a wide 
     range of educational, geographical, and professional 
     backgrounds; and
       (B) may not be Members of Congress.
       (d) Terms.--(1) Except as provided in paragraph (2), each 
     member shall be appointed for a term of 2 years.
       (2) Of the members first appointed under subsection (b)(3) 
     the President shall designate--
       (A) 3 who shall be appointed for 1 year; and
       (B) 4 who shall be appointed for 2 years.
       (3) If a member was appointed to the Commission as a Member 
     of Congress and the member ceases to be a Member of Congress, 
     that member may continue as a member for not longer than the 
     30-day period beginning on the date that member ceases to be 
     a Member of Congress.
       (e) Vacancies.--A vacancy shall be filled in the manner in 
     which the original appointment was made. A vacancy in the 
     Commission shall not affect its powers. Any member appointed 
     to fill a vacancy occurring before the expiration of the term 
     for which the member's predecessor was appointed shall be 
     appointed only for the remainder of such term.
       (f) Chairman.--The Chairman of the Commission shall be 
     designated by the President from among the members under 
     subsection (b)(3). The term of office of the Chairman shall 
     be 2 years.
       (g) Quorum.--6 members of the Commission shall constitute a 
     quorum. Action by a quorum shall be necessary for the 
     Commission to issue a recommendation under section 6(d).
       (h) Meetings.--The Commission shall meet on at least a 
     quarterly basis. Meetings shall be held in the District of 
     Columbia.
       (i) Pay.--(1) Except as provided in paragraph (2), each 
     member of the Commission shall be paid the daily equivalent 
     of the maximum rate of basic pay payable for grade GS-15 of 
     the General Schedule for each day, including traveltime, 
     during which such 

[[Page S 13542]]
     member is performing duties of the Commission.
       (2) Members of the Commission who are full-time officers or 
     employees of the United States or Members of Congress may not 
     receive additional pay for service on the Commission.
       (j) Travel Expenses.--While away from their homes or 
     regular places of business in the performance of services for 
     the Commission, members of the Commission shall be allowed 
     travel expenses, including a per diem allowance in lieu of 
     subsistence, in the same manner as persons employed 
     intermittently in the Government service are allowed travel 
     expenses under section 5703 of title 5 of the United States 
     Code.

     SEC. 4. STAFF.

       (a) Limitation on Staff.--The Commission may not employ 
     staff personnel.
       (b) Detail of Staff from Federal Agencies.--Any Federal 
     employee may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.

     SEC. 5. POWERS OF THE COMMISSION.

       (a) Hearings.--The Commission may, for the purpose of 
     carrying out this Act, hold such hearings, take such 
     testimony, and receive such evidence, as it considers 
     appropriate.
       (b) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property, but not from a 
     source having a direct interest in any matter before the 
     Commission.
       (c) Mails.--The Commission may use the United States mails 
     in the same manner and under the same conditions as other 
     departments and agencies of the United States.
       (d) Administrative Support Services.--The Administrator of 
     General Services shall provide to the Commission, on a 
     reimbursable basis, such administrative support services as 
     the Commission may request.

     SEC. 6. DUTIES OF THE COMMISSION.

       (a) Criteria.--The Commission shall establish criteria for 
     recommending to the President that a proposed commemorative 
     event be approved or disapproved.
       (b) Submission of Proposals.--The Commission shall 
     establish and publish in the Federal Register procedures for 
     submitting proposals for national commemorative events to the 
     Commission.
       (c) Review of Proposals.--The Commission shall review all 
     proposals submitted to it in accordance with subsection (b).
       (d) Recommendation to the President.--The Commission shall 
     issue a recommendation to the President for approval or 
     disapproval of each proposal submitted to it in accordance 
     with subsection (b). Each recommendation shall be accompanied 
     by a brief explanation of such recommendation.
       (e) Limitation on Designation of Events.--The Commission 
     shall not issue a recommendation to the President for 
     approval of an event which commemorates--
       (1) a commercial enterprise, industry, specific product, or 
     fraternal, political, business, labor, or sectarian 
     organization;
       (2) a particular State or any political subdivision 
     thereof, city, town, county, school, or institution of higher 
     learning; or
       (3) a living person.
       (f) Nonpermanent Designations.--(1) Any day, week, month, 
     year, or other specified period of time designated by the 
     Commission for commemoration of an event may not be 
     designated for a date or time period which begins more than 1 
     year after the date such designation is made.
       (2) No event which is commemorated by a day, week, month, 
     year, or other specified period of time designated by the 
     Commission may be commemorated by another designation within 
     a single calendar year.

     SEC. 7. EFFECTIVE DATE; COMMENCEMENT AND TERMINATION 
                   PROVISIONS.

       (a) Effective Date.--This Act shall take effect on January 
     1, 1996.
       (b) Commencement; Termination.--(1) Members of the 
     Commission shall be appointed, and the Commission shall first 
     meet, within 90 days after the effective date of this Act.
       (2) The Commission shall terminate 5 years after the date 
     on which it first meets.
                                 ______

      By Mr. HATCH (for himself, Mr. Abraham, and Mr. Grassley):
  S. 1237. A bill to amend certain provisions of law relating to child 
pornography, and for other purposes; to the Committee on the Judiciary.


              the child pornography prevention act of 1995

  Mr. HATCH. Mr. President, it is impossible for any decent American 
not to be outraged by child pornography and the sexual exploitation of 
children. Such material is a plague upon our people and the moral 
fabric of this great Nation.
  And, as a great Nation, I believe that we have both the 
constitutional right and moral obligation to protect our children from 
those who, motivated by profit or perversion or both, would abuse, 
exploit, and degrade the weakest and most vulnerable members of our 
society.
  Current Federal law dealing with child pornography reflects the 
overwhelming bipartisan consensus which has always existed, both in 
Congress and in the country, that there is no place for such filth even 
in a free society and that those who produce or peddle this 
reprehensible material must be made to feel the full weight of the law 
and suffer a punishment reflective of the seriousness of their offense.
  As with many of our criminal statutes, however, effective enforcement 
of our laws against child pornography today faces a new obstacle: The 
criminal use, or misuse, of new technology which is outside the scope 
of existing statutes. In order to close this computer-generated 
loophole and to give our law enforcement authorities the tools they 
need to stem the increasing flow of high-tech child pornography, I am 
today introducing the Child Pornography Prevention Act of 1995.
  The necessity for prompt legislative action amending our existing 
Federal child pornography statutes to cover the use of computer 
technology in the production of such material was vividly illustrated 
by a recent story in the Washington Times. This story, dated July 23, 
1995, reported the conviction in Canada of a child pornographer who 
copied innocuous pictures of children from books and catalogs onto a 
computer, altered the images to remove the childrens' clothing, and 
then arranged the children into sexual positions. According to Canadian 
police, these sexual scenes involved not only adults and children, but 
also animals.
  Even more shocking than the occurrence of this type of repulsive 
conduct is the fact that, under current Federal law, those pictures, 
depicting naked children involved in sex with other children, adults, 
and even animals, would not be prosecutable as child pornography. That 
is because current Federal child pornography and sexual exploitation of 
children laws, United States Code title 18, sections 2251, 2251A, and 
2252, cover only visual depictions of children engaging in sexually 
explicit conduct whose production involved the use of a minor engaging 
in such conduct; materials such as photographs, films, and videotapes.
  Today, however, visual depictions of children engaging in any 
imaginable forms of sexual conduct can be produced entirely by 
computer, without using children, thereby placing such depictions 
outside the scope of Federal law. Computers can also be used to alter 
sexually explicit
 photographs, films, and videos in such a way as to make it virtually 
impossible for prosecutors to identify individuals, or to prove that 
the offending material was produced using children.

  The problem is simple: While Federal law has failed to keep pace with 
technology, the purveyors of child pornography have been right on line 
with it. This bill will help to correct that problem.
  The Child Pornography Prevention Act of 1995, which includes a 
statement of congressional findings as to harm, both to children and 
adults, resulting from child pornography, has three major provisions. 
First, it would amend United States Code title 18, section 2256, to 
establish, for the first time, a specific, comprehensive, Federal 
statutory definition of child pornography. Under this bill, any visual 
depiction, such as a photograph, film, videotape or computer image, 
which is produced by any means, including electronically by computer, 
of sexually explicit conduct will be classified as child pornography 
if: (a) its production involved the use of a minor engaging in sexually 
explicit conduct; or (b) it depicts, or appears to depict, a minor 
engaging in sexually explicit conduct; or (c) it is promoted or 
advertised as depicting a minor engaging in sexually explicit conduct.
  Second, this bill amends the existing statutory definition of 
sexually explicit conduct contained at section 2256 to include the 
lascivious exhibition of the buttocks of any minor or the breast of any 
female minor.
  Finally, this bill would protect the Federal Government, State and 
local governments, and State and local law enforcement officials, from 
the threat of civil lawsuits and the awarding of damages as the result 
of searches and seizures made in connection with child pornography 
investigations or prosecutions.
  Current Federal law, United States Code title 42, section 2000aa, 
includes exceptions to the Privacy Protection Act allowing certain 
searches and seizures, where the offense consists of the 

[[Page S 13543]]
receipt, possession, or communication of information pertaining to the 
national defense, classified information or restricted data.
  This bill would extend that exception to offenses involving the 
production, possession, sale or distribution of child pornography, the 
sexual exploitation of children, or the sale or purchase of children, 
activities which enjoy absolutely no first amendment protection.
  Because there have already been several bills or amendments 
introduced during this session of Congress pertaining to computer 
telecommunications and the transmission on the Internet of obscene or 
indecent material, which have been the subject of extensive and on-
going comment and debate both here in the Senate and in the country at 
large, let me emphasize that the bill I am introducing today is not a 
telecommunications bill and does not propose new or expanded 
restrictions or regulations with respect to the Information 
Superhighway.
  Child pornography is a particularly pernicious evil, something that 
no civilized society can or should tolerate. It poisons the minds and 
spirits of our youth. It permanently records the victim's degradation 
and abuse, and can haunt those children for years to come. It fuels the 
growth of organized crime. It encourages the activities of pedophiles 
and can be used to seduce even more young victims. Congress can and 
should act, promptly and decisively, to close any loophole in statutes 
designed to protect our children from the kind of threat and harm posed 
by child pornography.
  I strongly urge the Senate to promptly pass the Child Pornography 
Prevention Act of 1995.
  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. 1237

       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 ``Child Pornography Prevention 
     Act of 1995''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the use of children in the production of sexually 
     explicit material, including photographs, films, videos, 
     computer images, and other visual depictions, is a form of 
     sexual abuse which can result in physical or psychological 
     harm, or both, to the children involved;
       (2) child pornography permanently records the victim's 
     abuse, and its continued existence causes the child victims 
     of sexual abuse continuing harm by haunting those children in 
     future years;
       (3) child pornography is often used as part of a method of 
     seducing other children into sexual activity; a child who is 
     reluctant to engage in sexual activity with an adult, or to 
     pose for sexually explicit photographs, can sometimes be 
     convinced by viewing depictions of other children ``having 
     fun'' participating in such activity;
       (4) prohibiting the possession and viewing of child 
     pornography encourages the possessors of such material to 
     destroy them, thereby helping to protect the victims of child 
     pornography and to eliminate the market for the sexually 
     exploitative use of children; and
       (5) the elimination of child pornography and the protection 
     of children from sexual exploitation provide a compelling 
     governmental interest for prohibiting the production, 
     distribution, possession, or viewing of child pornography.

     SEC. 3. DEFINITIONS.

       Section 2256 of title 18, United States Code, is amended--
       (1) in paragraph (2)(E), by inserting before the semicolon 
     the following: ``, or the buttocks of any minor, or the 
     breast of any female minor'';
       (2) in paragraph (5), by inserting before the semicolon the 
     following: ``, and data stored on computer disk or by 
     electronic means which is capable of conversion into a visual 
     image'';
       (3) in paragraph (6), by striking ``and'';
       (4) in paragraph (7), by striking the period and inserting 
     ``; and''; and
       (5) by adding at the end the following new paragraph:
       ``(8) `child pornography' means any visual depiction, 
     including any photograph, film, video, picture, drawing, or 
     computer or computer-generated image or picture, whether made 
     or produced by electronic, mechanical, or other means, of 
     sexually explicit conduct, where--
       ``(A) the production of such visual depiction involves the 
     use of a minor engaging in sexually explicit conduct;
       ``(B) such visual depiction is, or appears to be, of a 
     minor engaging in sexually explicit conduct; or
       ``(C) such visual depiction is advertised, promoted, 
     presented, described, or distributed in such a manner that 
     conveys the impression that the material is or contains a 
     visual depiction of a minor engaging in sexually explicit 
     conduct.''.

     SEC. 4. PROHIBITED ACTIVITIES RELATING TO MATERIAL 
                   CONSTITUTING OR CONTAINING CHILD PORNOGRAPHY.

       (a) In General.--Section 2252 of title 18, United States 
     Code, is amended to read as follows:

     ``Sec. 2252. Certain activities relating to material 
       constituting or containing child pornography

       ``(a) Any person who--
       ``(1) knowingly mails, transports, or ships in interstate 
     or foreign commerce by any means, including by computer, any 
     child pornography;
       ``(2) knowingly receives or distributes--
       ``(A) any child pornography that has been mailed, shipped, 
     or transported in interstate or foreign commerce by any 
     means, including by computer; or
       ``(B) any material that contains child pornography that has 
     been mailed, shipped, or transported in interstate or foreign 
     commerce by any means, including by computer;
       ``(3) knowingly reproduces any child pornography for 
     distribution through the mails, or in interstate or foreign 
     commerce by any means, including by computer;
       ``(4) either--
       ``(A) in the maritime and territorial jurisdiction of the 
     United States, or on any land or building owned by, leased 
     to, or otherwise used by or under the control of the United 
     States Government, or in the Indian country (as defined in 
     section 1151), knowingly sells or possesses with the intent 
     to sell any child pornography; or
       ``(B) knowingly sells or possesses with the intent to sell 
     any child pornography that has been mailed, shipped, or 
     transported in interstate or foreign commerce by any means, 
     including by computer, or that was produced using materials 
     that have been mailed, shipped, or transported in interstate 
     or foreign commerce by any means, including by computer; or
       ``(5) either--
       ``(A) in the maritime and territorial jurisdiction of the 
     United States, or on any land or building owned by, leased 
     to, or otherwise used by or under the control of the United 
     States Government, or in the Indian country (as defined in 
     section 1151), knowingly possesses 3 or more books, 
     magazines, periodicals, films, videotapes, computer disks, or 
     any other material that contains any child pornography; or
       ``(B) knowingly possesses 3 or more books, magazines, 
     periodicals, films, videotapes, computer disks, or any other 
     material that contains any child pornography that has been 
     mailed, shipped, or transported in interstate or foreign 
     commerce by any means, including by computer,

     shall be punished as provided in subsection (b).
       ``(b)(1) Whoever violates, or attempts or conspires to 
     violate, paragraphs (1), (2), (3), or (4) of subsection (a) 
     shall be fined under this title or imprisoned not more than 
     10 years, or both, but, if such person has a prior conviction 
     under this chapter or chapter 109A, such person shall be 
     fined under this title and imprisoned for not less than 5 
     years nor more than 15 years.
       ``(2) Whoever violates paragraph (5) of subsection (a) 
     shall be fined under this title or imprisoned for not more 
     than 5 years, or both.''.
       (b) Technical Amendment.--The table of sections for chapter 
     110 of title 18, United States Code, is amended by amending 
     the item relating to section 2252 to read as follows:

``2252. Certain activities relating to material constituting or 
              containing child pornography.''.
     SEC. 5. PRIVACY PROTECTION ACT AMENDMENTS.

       Section 101 of the Privacy Protection Act of 1980 (42 
     U.S.C. 2000aa) is amended--
       (1) in subsection (a)(1), by inserting before the semicolon 
     at the end the following: ``, or if the offense involves the 
     production, possession, receipt, mailing, sale, distribution, 
     shipment, or transportation of child pornography, the sexual 
     exploitation of children, or the sale or purchase of children 
     under section 2251, 2251A, or 2252 of title 18, United States 
     Code''; and
       (2) in subsection (b)(1), by inserting before the semicolon 
     at the end the following: ``, or if the offense involves the 
     production, possession, receipt, mailing, sale, distribution, 
     shipment, or transportation of child pornography, the sexual 
     exploitation of children, or the sale or purchase of children 
     under section 2251, 2251A, or 2252 of title 18, United States 
     Code''.

     SEC. 6. SEVERABILITY.

       If any provision of this Act, an amendment made by this 
     Act, or the application of such provision or amendment to any 
     person or circumstance is held to be unconstitutional, the 
     remainder of this Act, the amendments made by this Act, and 
     the application of such to any other person or circumstance 
     shall not be affected thereby.
                                 ______

      By Mr. McCAIN (for himself, Mr. Ford, Mr. Hollings)
  S. 1239. A bill to amend title 49, United States Code, with respect 
to the regulation of interstate transportation by common carriers 
engaged in civil aviation, and for other purposes; to the 

[[Page S 13544]]
Committee on Commerce, Science, and Transportation.


 THE AIR TRAFFIC MANAGEMENT SYSTEM PERFORMANCE IMPROVEMENT ACT OF 1995

  Mr. McCAIN. Mr. President, I rise today with my colleague Senator 
Ford, to introduce legislation that will streamline the Federal 
Aviation Administration in a comprehensive and responsible manner. This 
bill was developed to ensure that in this era of fiscal accountability, 
the FAA can continue to operate the safest air traffic control system 
in the world. Our work on this bill began with the premise that 
aviation safety was no place for partisan conflict or for gamesmanship 
between the legislative and executive branches. We worked to craft a 
bipartisan solution that brings together the views and experience of 
all the parties engaged in aviation safety. We also sought a 
partnership with the administration to get the job done.
  Currently, one of the most challenging tasks for those of us in 
Congress who want to balance the budget is to find innovative and 
workable solutions to ensure that essential Government services not 
only continue, but are performed even better. Federal regulation of 
airline safety is one such service that virtually everyone agrees must 
continue and, in fact, should undergo major modernization. Indeed, 
after several major air traffic computer systems failed this summer, 
the traveling public is right to be concerned about what the Government 
intends to do about the problem. Traditionally, the Government's 
response would have been to pour more tax money into the FAA's budget. 
Under the new budget resolution, however, that will not be possible. 
More importantly, the truth is that simply spending money does not 
guarantee improvements anyway.
  For those of responsible for the oversight of aviation safety, the 
focus in the FAA reform debate is now how we can actually improve 
airline safety at the same time that the amount of tax dollars spent on 
the FAA is cut back. We believe that the legislation being introduced 
today, by making major reforms at the FAA and changing the way the 
agency is financed, can accomplish this goal. In addition, this bill 
enables us and the agency to create incentives to reduce or eliminate 
current operational inefficiencies that cost airlines and their 
passengers billions each year.
  Specifically, our proposed legislation will take the FAA as far as 
possible out of the political environment and provide it with a clear 
direction and stable source of funding. It will free this essential 
agency from many restrictive regulations and requirements, particularly 
in the areas of procurement and personnel. Most significantly, however, 
it will compel the FAA to become an organization that is far more 
responsive to the needs of those who use the air traffic control 
system--air carriers, general aviation, and the traveling public.
 It is designed to provide the kind of direction and incentives that 
will result in a safer and far more efficient air transportation 
system.

  As the FAA reform debate has intensified this year, the role of the 
FAA has come under intense scrutiny. Without question, the FAA has 
provided the United States with the finest aviation safety system in 
the world. However, this is an agency that has major flaws. It has 
spent over $20 billion in the last decade for a modernization program 
that is way over budget and has never lived up to its promise. 
Moreover, the operational inefficiencies resulting from the failure of 
the modernization program are measured in billions of dollars annually.
  Some have suggested that the FAA's problems could be solved simply by 
procurement reform--in other words, by giving the agency the ability to 
cut redtape in buying equipment. Although we acknowledge that 
procurement reform is important, even essential, that alone does not do 
enough. Without changing the basic mission and structure of the 
organization, procurement reform would merely be a way of allowing an 
agency to make bad purchasing decisions even faster. Our proposed 
legislation reflects an understanding that we had to do more than 
procurement and personnel reform to resolve the FAA's problems. Our 
bill recognizes that the legislative and budget constraints under which 
the FAA works are simply too restrictive to make the fundamental 
changes necessary.
  It has been particularly distressing to see that because of these 
constraints, the FAA has been unable to keep up with the dynamic 
technical and economic changes taking place in the airline industry. 
That, in turn, highlights the fact that there is a disconnect between 
those who fund the system and those who operate it. Over 70 percent of 
the FAA budget comes from the industry using the system, mostly through 
a 10-percent tax on airline tickets. In the future, the only way to 
save tax dollars will be to require that users pay an even greater 
percentage. Yet, under the current system, there is little incentive 
for the FAA to develop systems that will result in operational 
efficiencies. That is because there is no relationship between the way 
the money comes in and the way it is being spent. Our legislation is 
the only bill that attempts to remedy this fundamental deficiency.
  Under our bill, the FAA would be required to design a new fee system 
based upon the use of the system by airlines and others, instead of the 
price of an airline ticket. In this way, system users would have a 
greater stake in a safe and efficient air traffic control system, and 
the FAA, in turn, would have a greater stake in making sure that it 
understands the industry it regulates. Those who use the FAA's services 
will pay more user fees to support the FAA in the future. That is a 
fact of life under the budget resolution. But, if our legislation is 
enacted, we are convinced that the operational efficiencies realized by 
the users will more than offest the additional expenses. And, for the 
first time, the fees will be directly applied to the services provided.
  In no case will safety be given a lower priority. In fact, there will 
be an explicit link between safety and productivity. Since nothing in 
this legislation will change the current FAA goal of zero accidents, 
the only way that productivity and capacity will increase under the new 
system is if safety margins improve even more than they are today. We 
want the users of the system to have as great a stake in assuring the 
highest Federal safety standards as possible. That is precisely what 
this bill will do. It will create a public/private partnership that 
will link safety and productivity to ensure that both improve.
  This bill comes at a critical time for the FAA. We are confident that 
we are on the right track by having de-politicized the issue and having 
sought the most impartial and skilled advice in putting it together. It 
is our intent to see this bill enacted into law, and then commit 
ourselves to intense oversight to be sure that it is implemented in a 
way that places safety at the forefront, turns the FAA into a more 
modern and responsive agency, improves the performance of the air 
traffic control system, and saves money for American taxpayers.
  Mr. FORD. Mr. President, today the Senate begins the debate on 
meaningful reform of the Federal Aviation Administration. With the 
introduction of the Air Traffic Management System Performance 
Improvement Act of 1995, we have fashioned a bipartisan approach with 
the administration on how to achieve the long term goal of maintaining 
the world's safest air transportation system. We could use a lot more 
bipartisan approaches to problems. The aviation industry is no 
different than the general public--they want rational solutions to 
difficult problems--not political cat fights.
  I began to search for ways to reform the FAA many years ago and in 
1987, introduced S. 1600, a bill that would have made the FAA an 
independent agency. However, the problems today are different than 
those that prompted S. 1600. Today's problems are not about micro-
management and internal disputes. The issue today has two parts--money 
and efficiency.
  The bill today addresses those issues in many ways. First it sets in 
motion a series of new systems to fund the agency, new systems for its 
people and programs. My goal is not to merely cover a funding problem, 
but to use money to derive a better agency. As a result, the fee 
systems that are to be set up will be difficult to design. No one wants 
to create discincentives. For example, in authorizing the FAA to 
collect fees for certification work, I want to make sure the FAA 
focuses its resources on what is needed. If the FAA chooses to merely 
use the certification fees as a means to 

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raise revenue, they may choose to function like lawyers and charge by 
the hour, not by the product or value of the service. No one wants to 
encourage the FAA to run up bills for the sake of raising money. There 
is much work that needs to be done to assign fees. The industry, the 
FAA, the Department and the Committee need to continue to work out the 
best way to accomplish our goal.
  However, all parties must bear in mind that under the current set of 
assumptions, the FAA will need approximately $59 billion through 2002. 
However, under the budget resolution calls for only $47 billion. 
Somehow, we have got to recognize what this $12 billion gap means. To 
put it in perspective, it could mean the closure or elimination of many 
services that are now provided. Like many situations, when we begin to 
downsize, the smallest communities tend to bear the brunt of cuts. Air 
traffic control towers at small airports, which are critical to the 
economic development of our small communities, could be the first to 
go. Flight service stations that handle general aviation traffic also 
could be on the first list of closures. In addition, do any of us 
really want to think of an air traffic control system with fewer 
controllers than we have today?
  If current trends are correct, by the year 2002, we will have a 35-
percent increase in passenger traffic, and an 18-percent increase in 
operations. Absent financial reform, the FAA will experience a 14-
percent decline in funding. These statistics will mean only one thing--
an FAA without an ability to meet its safety mission and without 
adequate funding to meet air traffic control demands.
  Today, the Chicago center in Aurora experienced its second outage in 
recent months. I know the National Transportation Safety Board is 
looking into ATC problems now, but we must recognize that without the 
ability to modernize, and quickly, problems like Chicago may reoccur.
  With respect to the bill, it does not create a corporation, nor does 
it make the agency independent. Instead, the bill strikes a balance. 
Regulatory and budget issues will be coordinated between the Secretary 
and the Administrator. In other areas such as personnel and 
procurement, the Administrator will have authority. These changes are 
important and will change how FAA manages its business. The goal, and 
one we all share, is an FAA with the ability to act quickly, and be 
able to count on funding.
  The bill today asks many segments of the industry for help in 
supporting the FAA's mission. I do not ask airlines, manufacturers, and 
others for their financial support lightly and I know that bill be 
controversial. But something has got to change.
  I have a choice--I can look at the FAA, and the budget assumptions 
and do nothing, or I can work to make sure that the safety of the 
traveling public is protected. After 21 years in Congress, having spent 
many years as Aviation Subcommittee chairman and now ranking Democrat, 
I can tell you that we have got to act. The bottom line, unfortunately, 
is that the travelling public simply can not count on funding for the 
FAA under the drive to balance the budget.
  To those that will object, we will continue to work with you on FAA 
reform. There is much we agree on, and a lot of work to be done. I also 
want to point out that while the House bill differs from the bill we 
are introducing today, we share a common goal--a better FAA.


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