[Congressional Record Volume 142, Number 72 (Tuesday, May 21, 1996)]
[Senate]
[Pages S5443-S5449]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. KENNEDY (for himself and Mr. Kerry):

[[Page S5444]]

  S. 1785. A bill to establish in the Department of the Interior the 
Essex National Heritage Area Commission, and for other purposes; to the 
Committee on Energy and Natural Resources.


              the essex national heritage area act of 1996

  Mr. KENNEDY. Mr. President, Senator Kerry and I are introducing 
legislation today to establish the Essex Heritage District and 
Commission. The purpose of our legislation is to preserve for future 
generations the unique historic, cultural, and natural resources of 
Essex County, MA. A companion bill has been introduced in the House of 
Representatives by Congressmen Peter Torkildsen and Martin Meehan.
  Essex County is the site of many historical events that have 
profoundly influenced the course of American history over the past 350 
years. Concentrated in this area of less than 500 square miles are more 
than 8,300 National Register properties and 23 national historic 
landmarks related to the early settlement of the United States, the 
country's emergence as a major maritime power, and its subsequent 
industrial development.
  The historic sites include many examples of nationally significant 
early architecture, including some of the finest examples of Georgian 
and Federal architecture to be found in the United States. Also still 
intact are 17th century marshland farms and rural home sites clustered 
around original commons. Active harbors have been in continuous use 
since the 17th century. Local shipyards, lighthouses, and distinctive 
maritime communities exemplify 18th century life. The first integrated 
iron works in America are still in operation under the auspices of the 
National Park Service. Textile mill villages and ``10-foot'' shops 
where shoes were made and sold in 10-foot-by-10-foot rooms still remain 
largely as they were in the 19th century.
  Essex County also has extensive natural and scenic resources--
marshlands, beaches, harbors, rocky farmlands, and islands--which amply 
demonstrate why maritime pursuits and water-powered industrial 
development first began here.
  At the heart of this region lies the city of Salem. It was settled in 
1626, 6 years after the Pilgrims landed in Plymouth. It became one of 
the most active ports in the United States in the 18th century, 
conducting trade throughout the world and opening many new markets for 
imports and exports. Salem retains a wealth of resources from this 
period, including one of the country's few remaining colonial-period 
wharves; classic 17th century structures; four major historic districts 
encompassing thousands of facilities which preserve Salem as it 
appeared in the late 18th century; the internationally renowned Peabody 
Essex Museum, containing major collections of maritime art and history. 
Chinese export wares and early anthropological collections; and many 
historic buildings associated with the life and work of one of 
America's most famous authors, Nathaniel Hawthorne.
  Salem also has many homes, meeting sites, and cemeteries associated 
with the notorious witchcraft trials of 1692, which serve to remind 
residents and visitors alike of the dangers of witch hunts and the 
importance of the individual rights built into our Constitution a 
century later.
  The purpose of our legislation is to preserve these extraordinary 
resources and make them available to the public. The Commission will 
carry out the mission proposed in the Salem Project, a report issued by 
the National Park Service in January 1990, which suggested a broadening 
of Federal recognition beyond the boundaries of Salem itself, to take 
into account the shared historic themes formed throughout Essex County.

  The success of the preservation effort at Salem Maritime National 
Historic Site, the oldest such site in the country, established in 
1938, has encouraged local initiatives in many of the surrounding 
communities. Our legislation will build on that local interest by 
providing a management framework for the preservation efforts of these 
various jurisdictions. Our goal is to protect and preserve these 
nationally significant resources in ways that present a unified 
interpretive story for visitors, so that they can readily understand 
the relationships among the historic sites throughout the county. The 
Commission will provide guidance to local communities and the State to 
ensure that the goal is achieved. Our bill does not propose major 
Federal land acquisition or a Federal bureaucracy. Its modest Federal 
involvement will help local efforts to proceed smoothly.
  The success of the Essex Heritage District and Commission depends on 
broad-based support and participation by private citizens, businesses, 
nonprofit institutions and local, regional, and State governments. The 
majority of funds to implement the countywide recommendations in the 
National Park Service report is expected to come from the private 
sector and local sources.
  Salem has demonstrated how successful this approach can be. In the 
past 8 years, Federal appropriations of $24 million for Salem Maritime 
National Historic Site have led to more than $150 million in private, 
municipal, and State investments in projects which relate to the 
proposed Essex Heritage District. For example, the Peabody Essex Museum 
has planned a $75 million expansion which will include renovation of 
the Salem Armory building that now houses the Regional Visitor Center 
run by the Park Service. The city of Salem is also planning an $18 
million expansion of its port facilities, and has successfully pursued 
matching funds for the reconstruction of the 18th century merchant ship 
Friendship.
  At the county level, an Essex Heritage Commission, comprised of 46 
volunteer members from the private sector and municipal and State 
governments, is already well underway toward developing an action plan 
for regional trails and exhibits. This fall, the Commission plans to 
install a regional signage system on the Federal and State highways to 
serve as a magnet and bring people into the Essex Heritage Area 
District. Many community officials, board members, and representatives 
from other preservation and environmental organizations are providing 
valuable assistance and coordination. But there is much more to be 
done, and it is time for the Federal Government to play a role in this 
promising endeavor.
  Its success so far has been based on the ability of people with many 
different perspectives to work together. This legislation will help 
them go forward in effective and efficient ways, as they work to bring 
the region together and preserve these magnificent historical resources 
for the enjoyment of generations to come. I urge my colleagues to 
support this important initiative.
  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. 1785

       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 ``Essex National Heritage Area 
     Act of 1996.''

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--The Congress finds that--
       (1) Essex County, Massachusetts, was host to a series of 
     historic events that influenced the course of the early 
     settlement of the United States, its emergence as a maritime 
     power, and its subsequent industrial development;
       (2) the North Shore of Essex County and the Merrimack River 
     valley in Essex County contain examples of significant early 
     American architecture and significant Federal-period 
     architecture, many sites and buildings associated with the 
     establishment of the maritime trade in the United States, the 
     site of the witchcraft trials of 1692, the birthplace of 
     successful iron manufacture, and the establishment of the 
     textile and leather industries in and around the cities of 
     Peabody, Beverly, Lynn, Lawrence, and Haverhill;
       (3) Salem, Massachusetts, has a rich heritage as one of the 
     earliest landing sites of the English colonists, the first 
     major world harbor for the United States, and an early 
     thriving hub of American industries;
       (4) the Saugus Iron Works National Historic Site is the 
     site of the first sustained, integrated iron works in 
     Colonial America, and the technology employed at the Iron 
     Works was dispersed throughout the Colonies and was critical 
     to the development of industry and technology in America;
       (5) the Salem Maritime National Historic Site contains 
     nationally significant resources that explain the manner in 
     which the Nation was settled, its evolution into a maritime 
     power, and its development as a major industrial force;
       (6) the story told at the Salem Maritime and Saugus Iron 
     Works National Historic

[[Page S5445]]

     Sites would be greatly enhanced through the interpretation of 
     significant theme-related resources in Salem and Saugus and 
     throughout Essex County;
       (7) partnerships between the private and public sectors 
     have been created and additional partnerships will be 
     encouraged to preserve the rich cultural heritage of the 
     region, which will stimulate cultural awareness, 
     preservation, and economic development through tourism;
       (8) a visitors' center that has already been constructed at 
     Salem Maritime National Historic Site in Salem, 
     Massachusetts, will be available to interpret the themes of 
     the Essex National Heritage Area established by this Act and 
     to coordinate the interpretive and preservation activities of 
     the Area; and
       (9) the resident and business communities of the region 
     have formed the Essex Heritage Ad Hoc Commission for the 
     preservation, interpretation, promotion, and development of 
     the historic, cultural, and natural resources of the region 
     and are investing significant private funds and energy to 
     develop a plan to preserve the nationally significant 
     resources of Essex County.
       (b) Purpose.--It is the purpose of this Act--
       (1) to establish the Essex National Heritage Area and the 
     Essex National National Heritage Area Commission, 
     representing all concerned levels of government, to 
     recognize, preserve, promote, interpret, and make available 
     for the benefit of the public the historic, cultural, and 
     natural resources of the North Shore and lower Merrimack 
     River valley in Essex County, Massachusetts, which encompass 
     the three primary themes of the Salem Maritime National 
     Historic Site and Saugus Iron Works National Historic Site 
     (the histories of early settlement, maritime trade, and the 
     textile and leather industries);
       (2) to implement the appropriate alternative as described 
     in the document entitled ``The Salem Project: A Study of 
     Alternatives'', dated January 1990, within the boundaries of 
     Essex County; and
       (3) to provide a management framework to assist the 
     Commonwealth of Massachusetts and its units of local 
     government in the development and implementation of an 
     integrated cultural, historical, and land resource management 
     program in order to retain, enhance, and interpret the 
     significant values of the lands, waters, and structures 
     located in the Essex National Heritage Area.

     SEC. 3. DEFINITIONS.

       For purposes of this Act:
       (1) The term ``Commission'' means the Essex National 
     Heritage Area Commission established by section 201.
       (2) The term ``Area'' means the Essex National Heritage 
     Area established by section 101.
       (3) The term ``Secretary'' means the Secretary of the 
     Interior.
                 TITLE I--ESSEX NATIONAL HERITAGE AREA

     SEC. 101. DESIGNATION OF NATIONAL HERITAGE AREA.

       (a) Designation.--For the purpose of preserving and 
     interpreting, for the educational and inspirational benefit 
     of present and future generations, the unique and significant 
     contributions to our national heritage of certain historic 
     and cultural lands, natural waterways, and structures within 
     the County of Essex in the Commonwealth of Massachusetts, 
     there is hereby established the Essex National Heritage Area.
       (b) Boundaries.--The Area shall comprise the lands 
     generally depicted on the map numbered NAR-51-80,000 and 
     dated August 1994. The map shall be on file and available for 
     public inspection in the office of the Director of the 
     National Park Service.
       (c) Administration.--The Area shall be administered in 
     accordance with the provisions of this Act.
           TITLE II--ESSEX NATIONAL HERITAGE AREA COMMISSION

     SEC. 201. ESTABLISHMENT.

       (a) In General.--To carry out the purpose of this Act there 
     is hereby established in the Department of the Interior the 
     Essex National Heritage Area Commission. The Commission shall 
     exercise the responsibilities and authorities conferred on 
     the Commission by this title with respect to the Area. The 
     Commission shall consist of 33 members (including ex officio 
     members), appointed by the Secretary, as follows:
       (1) Five members appointed from recommendations submitted 
     by the Governor of Massachusetts, of which one shall 
     represent the interests of the Massachusetts Historical 
     Commission, one shall represent the Executive Office of 
     Environmental Management, one shall represent the 
     Massachusetts Executive Office of Transportation and 
     Highways, one shall represent the Executive Office of 
     Administration and Finance, and one shall represent the 
     Executive Office of Communities and Development.
       (2) Eleven members representing the interests of local 
     government, appointed from recommendations submitted as 
     follows:
       (A) One each from recommendations submitted by the mayors 
     of the cities of Peabody, Salem, Lynn, Lawrence, Haverhill, 
     Newburyport, Beverly, and Gloucester.
       (B) Three representing the towns of Essex County, from 
     recommendations submitted by the Essex County Advisory Board.
       (3) Eight members representing local business, nonprofit 
     organizations, and other nongovernmental groups, appointed 
     from recommendations submitted as follows:
       (A) Two from recommendations submitted by the Salem 
     Partnership.
       (B) One each from recommendations submitted by the Lynn 
     Business Partnership, the Greater Haverhill Chamber of 
     Commerce, the Cape Ann Chamber of Commerce, the Merrimack 
     Valley Chamber of Commerce, the North Shore Chamber of 
     Commerce, and the Society for the Preservation of New England 
     Antiquities.
       (4) Three members representing nonprofit organizations 
     which have significant interests and resources located in the 
     Area, from recommendations submitted as follows:
       (A) One from recommendations submitted by the Peabody Essex 
     Museum, to represent the interests of major museums.
       (B) One from recommendations submitted by the Essex County 
     Greenbelt Association, to represent the interests of the 
     natural resources of the Area.
       (C) One from recommendations submitted by the President of 
     Salem State College, to represent the interests of 
     institutions of higher education.
       (5) The Director of the National Park Service, ex officio, 
     or the delegate of the Director, the superintendent of the 
     Salem Maritime National Historic Site, ex officio, or the 
     delegate of the superintendent, and the superintendent of the 
     Saugus Ironworks National Historic Site, ex officio, or the 
     delegate of the superintendent.
       (6) One member recommended by the Representative to the 
     Congress from the Fifth Congressional District of 
     Massachusetts.
       (7) Two members recommended by the Representative to the 
     Congress from the Sixth Congressional District of 
     Massachusetts.
       (b) Terms.--The term of appointed members of the Commission 
     shall be 3 years, except as provided in subsection (d).
       (c) Chairperson.--The Commission shall elect a chairperson 
     from among its members. The term of office of the chairperson 
     shall be 2 years.
       (d) Vacancy.--Any member of the Commission appointed for a 
     definite term may serve after the expiration of his term 
     until his successor is appointed. Any vacancy in the 
     Commission shall be filled in the same manner in which the 
     original appointment was made. The term of any member 
     appointed to fill a vacancy shall be the remainder of the 
     term for which the member's predecessor was appointed.
       (e) Quorum.--A simple majority of Commission members shall 
     constitute a quorum.
       (f) Meetings.--The Commission shall meet at the call of the 
     chairperson or a majority of its members, but not less than 
     quarterly.
       (g) Compensation.--Members of the Commission shall serve 
     without compensation, except as otherwise provided in this 
     subsection. Members of the Commission may receive travel 
     expenses (including per diem in lieu of subsistence) when 
     engaged in Commission business, in accordance with section 
     5703, title 5, United States Code, in the same manner as 
     persons employed intermittently.

     SEC. 202. STAFF OF THE COMMISSION.

       (a) Staff.--(1) The Commission shall have the power to 
     appoint and fix the compensation of such staff as may be 
     necessary to carry out its duties.
       (2) Staff appointed by the Commission--
       (A) shall be appointed subject to the provisions of title 
     5, United States Code, governing appointments in the 
     competitive services; and
       (B) shall be paid in accordance with the provisions of 
     chapter 51 of title 5, United States Code, and subchapter III 
     of chapter 53 of such title, relating to classification and 
     General Schedule pay rates.
       (b) Experts and Consultants.--Subject to such rules as may 
     be adopted by the Commission, the Commission may procure 
     services of experts and consultants to the same extent as is 
     authorized by section 3109(b) of title 5, United States Code, 
     but at rates determined by the Commission to be reasonable.
       (c) Staff and Other Agencies.--(1) Upon request of the 
     Commission, the head of any Federal agency may detail, on a 
     reimbursable basis, any of the personnel of such agency to 
     the Commission to assist the Commission in carrying out the 
     Commission's duties.
       (2) The Commission may accept the services of personnel 
     detailed from the Commonwealth of Massachusetts (and any 
     political subdivision thereof) and may reimburse the 
     Commonwealth or political subdivision for the services.
       (d) Administrative Support.--The Administrator of the 
     General Services Administration shall provide to the 
     Commission such administrative support services as the 
     Commission may request, on a reimbursable basis.

     SEC. 203. POWERS OF THE COMMISSION.

       (a) In General.--The Commission may for the purpose of 
     carrying out this Act hold such hearings, sit and act at such 
     times and places, take such testimony, and receive such 
     evidence, as the Commission may deem advisable.
       (b) Bylaws.--The Commission may make such bylaws, rules and 
     regulations, consistent with this Act, as it considers 
     necessary to carry out its functions under this title.
       (c) Delegation.--When so authorized by the Commission, any 
     member or agent of the Commission may take any action which 
     the Commission is authorized to take by this section.
       (d) Technical Advisory Groups.--The Commission may 
     establish and appoint one or more technical advisory groups 
     and subcommittees to provide technical advice to

[[Page S5446]]

     the Commission with respect to issues including, but not 
     limited to, financing, historic preservation, natural 
     resource preservation, recreation, tourism, or 
     intergovernmental coordination.
       (e) Gifts.--Notwithstanding any other provision of law, the 
     Commission may seek, accept, and dispose of donations of 
     funds, property, or services from individuals, from 
     foundations, corporations, and other private entities, and 
     from public entities, for the purpose of carrying out its 
     duties.
       (f) Funds From Other Sources.--The Commission may use its 
     funds to obtain money from any source under any program or 
     law, including a program or law requiring the recipient of 
     such money to make a contribution in order to receive such 
     money.
       (g) Mail.--The Commission may use the United States mails 
     in the same manner and upon the same conditions as other 
     departments and agencies of the United States.
       (h) Obtaining Property, Facilities and Services.--The 
     Commission may obtain by purchase, rental, donation, or 
     otherwise, such property, facilities, and services as may be 
     needed to carry out its duties. The Commission may acquire 
     real property, or interests in real property, in the Area 
     only by gift, by rental, or by purchase from a willing seller 
     with money which was given, bequeathed, or appropriated to 
     the Commission on the condition that such money would be used 
     to purchase real property, or interests in real property, in 
     the Area.
       (i) Advisory Groups.--The Commission may establish such 
     advisory groups as the Commission deems necessary to ensure 
     open communication with, and assistance from, the 
     Commonwealth of Massachusetts, political subdivisions of the 
     Commonwealth of Massachusetts, and interested persons.
       (j) Cooperative Agreements.--The Commission may enter into 
     cooperative agreements with the Secretary, the Commonwealth 
     of Massachusetts, any political subdivision of the 
     Commonwealth, or any person.

     SEC. 204. FUNCTIONS OF THE COMMISSION.

       (a) In General.--The Commission is authorized to--
       (1) coordinate activities of and establish cooperative 
     agreements with Federal, State, and local governments and 
     private businesses and organizations in order to further 
     historic preservation, cultural conservation, natural area 
     protection, and compatible revitalization with respect to the 
     Area;
       (2) establish guidelines and standards for projects and 
     prepare programs and exhibits, consistent with standards 
     established by the National Park Service for preservation of 
     historic properties (including standards regarding 
     interpretive methods), that will further the recognition, 
     preservation, promotion, interpretation, and economic 
     revitalization of the historic and natural resources in the 
     Area;
       (3) provide advice and assistance in preparation of loan or 
     grant applications to the Commission and applications for 
     loan or grants from Federal or non-Federal sources in 
     furtherance of the purpose of this Act;
       (4) make loans and grants, from funds appropriated for that 
     purpose or from funds donated or otherwise made available to 
     the Commission, for the purpose of conserving and protecting 
     sites, buildings, resources, and objects which are included 
     or eligible for inclusion on the National Register of 
     Historic Places or for the purposes of providing 
     educational and cultural programs which encourage 
     appreciation of the resources of the Area; and
       (5) implement the study report prepared by the Essex 
     Heritage Ad-Hoc Commission.
       (b) Annual Reports.--
       (1) Reports by commission.--The Commission shall submit an 
     annual report to the Secretary setting forth its expenses and 
     income and the entities to which any loans and grants were 
     made by the Commission during the year for which the report 
     is made.
       (2) Reports by secretary.--The Secretary shall submit an 
     annual report to the Congress describing the loans, grants, 
     and technical assistance provided under this Act. The report 
     shall specify the amount, recipient, and purpose of any loan, 
     grant, or technical assistance so provided, and shall include 
     an analysis of the adequacy of actions taken during the year 
     the report concerns to preserve, protect, and interpret the 
     significant sites, buildings, and objects within the Area. 
     The report shall describe the anticipated funds and personnel 
     to be made available by the Secretary during the fiscal year 
     following the year the report concerns to implement the 
     provisions of this Act.
       (c) Cost Estimates.--Prior to making any grant or loan, the 
     Commission shall require detailed cost estimates to be 
     prepared for the project to be funded. Within 1 year after 
     the date of the enactment of this Act, the Commission shall 
     submit to the appropriate committees of the Congress detailed 
     cost estimates for the projects for which, at the time the 
     report is submitted, the Commission has made, has agreed to 
     make, or plans to make a grant or loan under this Act.

     SEC. 205. DUTIES OF THE SECRETARY.

       (a) In General.--To carry out the purpose of this Act, the 
     Secretary shall assist the Commission in preparing such 
     studies and plans as the Secretary considers appropriate and 
     in implementing the recommendations contained in study report 
     prepared by the Essex Heritage Ad-Hoc Commission. The 
     Secretary is authorized to enter into agreements with the 
     Commission or with any owner of property with national 
     historic or cultural significance within the Area for the 
     purpose of facilitating public use and enjoyment of such 
     resources or to otherwise further the objectives of the 
     Commission. Any such agreement shall provide whenever 
     appropriate that--
       (1) the public may have access to such resources at 
     specified, reasonable times for the purpose of viewing the 
     property or exhibits or attending programs or other 
     activities, as may be appropriate;
       (2) the Secretary may make improvements to such resources 
     as the Commission or the Secretary deem necessary to enhance 
     the public use and enjoyment of the resources, or to render 
     such property usable by the Secretary, the Commission, or any 
     person for the purpose of this Act; and
       (3) the Secretary may occupy, utilize, and acquire 
     easements or leasehold interests in resources as required to 
     implement the programs and purpose of this Act.
       (b) Technical Assistance.--The Secretary shall provide, 
     upon request, technical assistance to the Commission to 
     assist the Commission in the performance of its powers and 
     functions as authorized under this Act. The Secretary may 
     provide to any owner of property within the Area, to the 
     Commonwealth of Massachusetts, to the City of Salem and other 
     participating municipalities, to any other Federal or State 
     entity, to any institution, or to any person such technical 
     assistance as the Secretary considers appropriate to carry 
     out the purpose of this Act.

     SEC. 206. EXPIRATION.

       (a) In General.--The Commission shall cease to exist 10 
     years after the date of the enactment of this Act.
       (b) Successor Entity.--The Commission shall assist, if 
     appropriate, in the establishment of a nonprofit management 
     entity, exempt from income taxes under section 501(c)(3) of 
     the Internal Revenue Code of 1986, to continue as necessary 
     the functions of the Commission and the management of the 
     Area upon the expiration of the Commission.
       (c) Property or Funds Remaining.--Any property or funds of 
     the Commission remaining upon the expiration of the 
     Commission shall be transferred to the nonprofit management 
     entity referred to in subsection (b), if such an entity 
     exists and is willing to accept the transfer. If such an 
     entity does not exist or is not willing to accept such 
     transfer, the property or funds referred to in the preceding 
     sentence shall be transferred to the Treasury of the United 
     States, to a State or local government agency, or to any 
     combination thereof, as determined by the Commission or, if 
     the Commission fails to so determine and such an entity 
     exists, by the nonprofit management entity referred to in 
     subsection (b).

     SEC. 207. PRIVATE PROPERTY.

       No privately owned property shall be included within the 
     boundaries of the Area unless the government of the county, 
     city, or town in which the property is located agrees to be 
     so included and submits notification of such agreement to the 
     Secretary.

     SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

       There are hereby authorized to be appropriated such sums as 
     may be necessary to carry out this Act.

  Mr. KERRY. Mr. President, I am pleased to join, once again, with my 
colleague from Massachusetts, Senator Kennedy, in introducing 
legislation to create the Essex Heritage District and Commission with 
the goal of preserving the unique resources of Essex County, MA for 
future generations.
  Essex County, which stretches through Massachusetts' North Shore 
communities into the Merrimac River Valley and up to the New Hampshire 
border, represents a mural of American history with its architecture, 
industry, and culture. Within a county of only 500 square miles, there 
are nearly 80 historic districts which offer more examples of 
nationally significant early American architecture than any other place 
in the Nation. Included among these historical structures are 17th 
century marshland farms, rural homes, cemeteries, and original town 
commons. The shoreline of Essex County contains shipyards, lighthouses, 
and harbors that have been active since the 17th century.
  Together, these sites form a panorama of our Nation's development as 
a maritime and industrial power. In the 18th century, this region 
became a mecca for American trade, a hub for trading goods with the 
other great trading nations. In response, the region flourished as a 
manufacturing center, which led to the establishment and growth of the 
textile and leather industries in the Merrimac River Valley towns of 
Peabody, Lawrence, Beverly, and Haverhill. The history of this growth 
is evident today in the textile mill villages, the first sustained 
integrated iron works site, and one of the most significant planned 
manufacturing cities in the country, all of which remain largely intact 
today.
  At the heart of all this activity is the city of Salem. While Salem 
is famous in the history books and in American

[[Page S5447]]

lore as the site of the 1692 witch trials, it is equally important as 
an early landing point for some of the first English colonists and as 
one of the most active ports of the 18th century. An amazing number of 
these historical resources remain intact including a colonial period 
wharf and 17th and 18th century structures exemplifying Puritan 
society.
  A tour through the historic districts of Essex County is a visual 
lesson in this important period of our Nation's past. We are lucky that 
so many of these historical resources remain to provide such a detailed 
record and we must work to ensure their continued protection through 
the creation of the Essex Heritage District Commission. The Commission, 
which would be authorized for 10 years, would provide the long-term 
commitment that is needed to bring about the success of this project. 
Of course, the primary mission would be preservation, but more than 
this, the Commission will take individually preserved resources and 
link them through a unified interpretive story of this region and its 
place in our Nation's history.
  While the Commission will be chartered by Federal legislation, it 
will not be a project managed by the Federal Government nor will it 
require major Federal land acquisition. Instead, the Commission will be 
comprised primarily of delegates from the State and local governments, 
nonprofit organizations, and private citizens and business interests 
from the participating communities.
  This approach should prove very successful based upon the past 
efforts at the Salem Maritime National Historic Site which has 
leveraged significant local support from the surrounding communities. 
For example, in the past 8 years, Federal appropriations of $24 million 
for the Salem Maritime Site have leveraged more than $150 million in 
non-Federal investments in Essex Heritage District projects, including 
support for the planned $75 million expansion of the Peabody Essex 
Museum which will include renovation of the Salem Armory building that 
now houses the Regional Visitor Center run by the National Park 
Service.
  Our bill would create a system under which various community groups 
can come together to develop their own goals by combining historic and 
resource preservation with economic concerns. The preservation 
activities which have already begun in Essex County have enhanced the 
region as visitor attractions for its historic sites, its picturesque 
scenery, and its desirability as a place to live and do business. I 
hope the Senate will act to ensure this success through swift and 
positive action on this bill.
                                 ______

      By Mr. WELLSTONE:
  S. 1786. A bill to require the Secretary of Veterans Affairs and the 
Secretary of Health and Human Resources to carry out a demonstration 
project to provide the Department of Veterans Affairs with 
reimbursement from the Medicare Program for health care services 
provided to certain Medicare-eligible veterans; to the Committee on 
Finance.


                 VA HEALTH CARE ELIGIBILITY LEGISLATION

  Mr. WELLSTONE. Madam President, I am pleased and honored to introduce 
legislation which I believe will demonstrate the cost effectiveness and 
feasibility of Medicare subvention funding to the Department of 
Veterans Affairs [VA] for treatment of some Medicare-eligible veterans 
at VA medical facilities. This legislation would authorize a 
demonstration project of Medicare subvention whereby Medicare would 
reimburse VA for delivering health care to some veterans age 65 and 
over.
  My legislation would authorize the Secretaries of Veterans Affairs 
and of Health and Human Services to enter into an agreement to carry 
out the demonstration project. This bill would bar reimbursement to the 
VA until the expenditure for health care services for participating 
veterans by a veterans integrated service network exceeds the amount 
that the VA would expend for such services in the absence of the 
project.
  In effect, this ensures that VA will receive Medicare reimbursement 
only for additional health care costs that are directly attributable to 
the demonstration project. My bill would ensure that costs to the 
Medicare program of providing services under the project do not exceed 
the usual costs Medicare would incur in providing such services.
  To prevent red tape from delaying the start of this test, the 
legislation specifies that VA health care facilities chosen to 
participate in the demonstration project will automatically be deemed 
to meet Medicare standards. Reimbursement to the VA will be on a 
capitated basis and veterans age 65 and over who are not eligible for 
VA health care for a service-connected disability may be selected to 
participate in the project.
  Madam President, I now want to address the two key reasons I am 
introducing this legislation and will press for its passage. First, 
reforming veterans' health care is one of my highest priorities and I 
am quite frankly disappointed that the Senate has not yet emulated the 
House in taking significant bipartisan legislative action to reform 
unwieldy, arcane, and obsolete eligibility rules that Minnesota and 
other veterans face when they visit VA hospitals and clinics. While 
Secretary of Veterans Affairs Jesse Brown and his Under Secretary for 
Health Ken Kizer have taken bold and innovative steps to modernize, 
restructure and decentralize VA health care, their efforts to overhaul 
the VA health care system--so that it will remain viable and serve the 
needs of veterans into the 21st century--are being hamstrung by 
outmoded eligibility criteria that stress inpatient care even when 
outpatient care would be more appropriate, user-friendly and cost 
effective.
  I believe that Medicare reimbursement is an important and, with an 
aging veterans population, even an essential component of eligibility 
reform. My view is shared by major veterans service organizations 
[VSO's] which have submitted two different eligibility reform proposals 
that would authorize the VA to receive Medicare reimbursement for 
treating Medicare-eligible veterans. Medicare reimbursement will allow 
the VA to offset the costs of delivering care to older veterans who may 
gain access to outpatient and preventive care when eligibility reform 
legislation is enacted.

  The GAO, however, has questioned both the feasibility and cost of 
providing Medicare reimbursement to the VA. While I lean toward the 
VSO's view that Medicare reimbursement would be both feasible and cost-
effective, the only way to prove it is by means of a demonstration 
project. This is precisely what my legislation authorizes.
  Second, because the VA is facing and will likely continue to face 
severe funding constraints that probably will reduce its capabilities 
to provide access to quality health care, the VA will be under strong 
pressure to deny some vital health care services to Medicare-eligible 
veterans.
  In recent years the VA health care budget has lagged behind medical 
cost inflation and under the budget resolution adopted by Congress last 
year the VA medical care budget would be frozen for 7 years, thus 
lagging behind overall inflation and probably even further behind 
medical cost inflation. As a consequence, the VA may be compelled to 
further ration care, with veterans 65 and over one of the groups likely 
to be affected. Even before the VA was faced with a flat health care 
budget, many of its facilities were compelled to resort to rationing.
  In this connection it is important to note that recent GAO testimony 
before the Senate Subcommittee on VA, HUD, and Independent Agencies 
Appropriations underscored the fact that in 1993 ``118 VA medical 
centers reported rationing some types of care to eligible veterans when 
the centers ran short of resources.'' There is no doubt whatever that a 
flat VA health care budget for 7 years can only lead to more extensive 
rationing of health care for veterans. This will further fray our 
solemn contract with the men and women who selflessly defended our 
country.
  Madam President, this bill is intended to ensure that our aging 
veterans population is not denied access to VA health care precisely 
when they need it most. I believe that this demonstration project will 
show that Medicare subvention will at least be budget neutral, and may 
even save Medicare dollars by using less costly VA care. But I would 
hope that even those who do not share my views would agree that the 
demonstration project that I

[[Page S5448]]

am proposing is the best way of determining the impact on Medicare, the 
VA, and most important, our aging veterans. These brave men and women 
deserve the best health care that can be provided, not rationed care 
whose quality is determined by an eroding VA health care budget and not 
by the health care needs of veterans who risked their lives for this 
country at times when it was in dire peril.
  Madam President, improving and protecting health care for the 
increasing numbers of older veterans should be a priority issue for my 
colleagues on both sides of the aisle. I hope all of my colleagues will 
carefully scrutinize this bill, strongly support it, and join me in the 
fight to ensure its passage.
  Madam President, I am introducing a bill today that focuses on health 
care eligibility in the VA health care system. It is, interestingly 
enough, analogous to a bill that the majority leader, Senator Dole, has 
introduced that essentially says for those Department of Defense 
retirees, that there can be a Medicare third-party payment for them to 
continue to receive health care within the military health care system. 
That is put on a demonstration project basis. I think it is an 
important piece of legislation.
  What the bill I have introduced says, again, on the demonstration 
model basis--demonstration project basis--is that for some of the 
veterans within a certain narrow framework, they also will be able to 
receive health care within the VA health care coverage--within the VA 
health care system--with a Medicare third-party payment.
  I now sit on the Veterans' Committee. It has taken me several years 
to get on that committee. These issues are near and dear to my heart. 
It is clear to me, and I think it is clear to all Senators on both 
sides of the aisle, that health care eligibility is at the very top of, 
if you will, an agenda that is responsive to the concerns and 
circumstances of the veterans community. This will be a demonstration 
model. That is what this bill calls for. I think it is extremely 
important.
  There is a debate as to whether or not, for example, Medicare third-
party payment for the VA health care system will work well or not. The 
only way we can find out, without having to debate ad nauseam, is to 
put this on a pilot project basis.
  I think this is only a step, but this piece of legislation, if 
passed, either as a piece of legislation or an amendment on the 
appropriate vehicle, I think it is an extremely important step in the 
right direction of enabling us to do some things within our VA health 
care system that will enable us to provide very efficient and very 
effective and very compassionate health care for veterans.
  Also, Madam President, I want to mention that Dr. Ken Kizer, with the 
VA health care system, I think is really making a heroic effort to 
think deeply about VA health care and where it is going into the next 
century.
  I think he is joined by Secretary Jesse Brown. Secretary Brown, in my 
view as a Senator from Minnesota--and I think I have been a fierce 
advocate for veterans--has been a very powerful and very articulate 
advocate for veterans in this country. I know that he has put health 
care eligibility reform at the very top of his list of priorities. I 
know that he cares deeply about veterans. I know as someone who was 
very active within the DAV, Disabled Veterans of America, he knows 
these issues. They are not abstract or intellectual to him. He came to 
this Cabinet position as someone who has been down in the trenches 
struggling not only for disabled veterans but for all vets.
  So with the time I have on the floor, again I am devoted to this 
piece of legislation which I have introduced. I think there is going to 
be strong bipartisan support for this.
  I also want to say a few words about the Secretary of Veterans 
Affairs because I think he has been a great Secretary for the veterans 
of Minnesota and across the country.
                                 ______

      By Mr. PRESSLER (for himself, Mr. D'Amato, Mr. Breaux and Mr. 
        Graham):
  S. 1787. A bill to amend the Harmonized Tariff Schedule of the United 
States with respect to fireworks; to the Committee on Finance.


                         Fireworks legislation

  Mr. PRESSLER. Mr. President, today I am introducing legislation that 
would correct a mistake made during the drafting of the implementing 
legislation of the General Agreement on Tariffs and Trade [GATT] 
Uruguay round. That law has had the effect of unintentionally more than 
doubling the tariff rates on display fireworks that are imported into 
the United States. Unintended or not, this provision has had real 
consequences. The most obvious has been a dramatic increase in the 
price of display fireworks, the vast majority of which are purchased by 
our State and local governments for use in municipal celebrations.
  While we are struggling here in Congress to reduce the deficit and 
balance the Federal budget under tight economic constraints, State and 
local governments are required by law to balance their budgets every 
year--with far less flexibility and far fewer resources than what is 
available to the Federal Government.
  The higher cost of display fireworks imposes major strain on 
municipalities that wish to sponsor Memorial Day or Fourth of July 
celebrations. Many towns simply are unable to afford the higher 
fireworks prices and some may forego these celebrations altogether. 
It's a sad fact that one unfortunate consequence leads to others.
  These problems are especially troublesome for rural areas. Small 
cities and towns do not have a wide variety of options for purchasing 
their fireworks. A dramatic increase in the cost of fireworks leaves 
these towns with very few alternatives. The ripple effect of this is 
that the small companies that serve as fireworks distributors suffer 
sales losses.
  This is not just mere speculation. There is a family-owned business 
in my State of South Dakota called Rich Bros. Fireworks. Michael Rich 
and his family serve the small towns across our State. The Rich family 
does it because they enjoy the service they provide. Mr. President, 
this is not a highly profitable business to begin with, and the higher 
prices resulting from the GATT implementing legislation have caused 
demand to decline. Michael Rich has informed me that unless corrective 
action is taken, they may be forced to close their business by the end 
of the year. The name Rich Bros. is synonymous with July 4th in South 
Dakota, and kids across the State--young kids, and grown-up kids 
alike--look forward to the celebration of the birth of our country with 
all the fanfare and excitement fireworks provide.
  Family-owned businesses, such as Rich Bros., are the foundation of 
towns across South Dakota. These people are committed to their 
neighbors and to their communities. They should not suffer from 
unintended consequences of the law. That is why we are here--to look 
out for them and to correct problems like these as soon as possible. 
That is why I am introducing this legislation today. It is really a 
minor change that would make a major difference--perhaps the difference 
between life and death--for small businesses like Rich Bros. I ask my 
collea- 
gues for their support in passing this legislation which restores the 
2.4-percent tariff rate for display fireworks that existed prior to the 
implementation of the Uruguay round legislation.
  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. 1787

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

     SECTION 1. DUTY ON DISPLAY FIREWORKS.

       Chapter 36 of the Harmonized Tariff Schedule of the United 
     States is amended by striking subheading 3604.10.00 and 
     inserting the following new subheadings:

                                                                                                                
                                                                                                                
                                                                                                                
``  ......  3604.10           Fireworks:.............  .........  .......................  ..........  .........
  ........  3604.10.10        Display fireworks             2.4%  Free (A*, CA, E, IL, J,       12.5%  .........
                               (Class 1.3C).                       MX).                                         
  ........  3604.10.90        Other (including Class        5.3%  Free (A*, CA, E, IL, J,      12.5%.  ''       
                               1.4G).                              MX).                                         
                                                                                                                


[[Page S5449]]



     SEC. 2 EFFECTIVE DATE.

       (a) In General.--The amendment made by section 1 applies 
     with respect to goods entered, or withdrawn from warehouse 
     for consumption, on or after the 15th day after the date of 
     the enactment of this Act.
       (b) Retroactive Treatment.--Notwithstanding section 514 of 
     the Tariff Act of 1930 (19 U.S.C. 1514) or any other 
     provision of law, upon a request filed with the Customs 
     Service before the 90th day after the date of the enactment 
     of this Act, any entry, or withdrawal from warehouse for 
     consumption--
       (1) which was made on or after January 1, 1996, and before 
     the 15th day after the date of the enactment of this Act, and
       (2) with respect to which there would have been a lesser 
     duty if the amendment made by section 1 applied to such entry 
     or withdrawal,

     shall be liquidated or reliquidated as though such amendment 
     applied to such entry or withdrawal.

                          ____________________