[Congressional Record Volume 142, Number 130 (Thursday, September 19, 1996)]
[Senate]
[Page S11036]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SIMON (for himself and Mr. Pryor):
  S. 2095. A bill to promote the capacity and accountability of 
Government corporations and Government sponsored enterprises; to the 
Committee on Governmental Affairs.


    The Government Corporation and Government Sponsored Enterprise 
                             Standards Act

 Mr. SIMON. Mr. President, my involvement in the issue of 
student aid over the past few years has given me a greater 
understanding of so-called government-sponsored enterprises. I have 
been critical of Sallie Mae, the Student Loan Marketing Association, 
for its lobbying activities and its high salaries. Five years ago I 
began calling for the elimination of Sallie Mae's ties to the 
Government.
  But I would like to go further in addressing this question of 
corporations that are connected in some way with the Federal 
government. How do they know when their purpose has been achieved, and 
their ties to the government should be cut? How do we make sure that 
they do not become so strong politically that the ties can never be 
cut? Should they be exempt from federal, state, and local taxes? Should 
the securities laws apply them?
  Today, along with my colleague, Senator Pryor, I am introducing a 
bill that would address these and other questions. The bill would 
establish standards for the creation of new Government-sponsored 
enterprises, those corporations that are created by Congress but are 
owned by private investors. The bill also would set guidelines for a 
very different type of corporation: those that are actually owned by 
taxpayers as a part of the Federal Government structure.
  This legislation is the result of concerns raised by the National 
Academy of Public Administration. Harold Seidman, in House testimony on 
behalf of the Academy last year, pointed out that the Congress has not 
used any consistent criteria for determining when a government 
corporation is appropriate and when it is not. He also raised questions 
about some of the privileges that have been granted to Government-
sponsored enterprises.
  The purpose of this legislation is to ensure that, as Congress 
considers the creation of new government corporations and government-
sponsored enterprises, it does so with its eyes wide open. It would 
also require some of these entities to plan for eventual privatization, 
and would force Congress to review their status on a regular basis.
  I know that it is not possible for Congress to act on this 
legislation in these final weeks. But I hope some of my colleagues will 
take up where I have left off, and work to establish much-needed 
standards where Government intersects with business.
                                 ______