[Congressional Record Volume 142, Number 137 (Saturday, September 28, 1996)]
[Extensions of Remarks]
[Pages E1769-E1770]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       GOVERNMENT-SPONSORED ENTERPRISE PRIVATIZATION ACT OF 1996

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                               speech of

                           HON. PAT WILLIAMS

                               of montana

                    in the house of representatives

                      Tuesday, September 24, 1996

  Mr. WILLIAMS. Mr. Speaker, I rise in support of H.R. 1720 to 
privatize the Student Loan Marketing Association--Sallie Mae--and the 
College Construction Loan Insurance Association--Connie Lee--and am 
pleased to see this bill finally coming up for floor consideration. I 
understand that privatization language may also be included in the CR, 
and I hope we can do all we can to ensure the enactment of this 
legislation this year.
  As my colleagues know, the bill in front of us today was part of the 
Careers Act that passed this House more than a year ago. Unfortunately, 
that legislation was weighed down in conference by repeated objections 
from the far right, and I'm somewhat disappointed that after more than 
2 years, this is all that can be salvaged.
  The time to privatize Sallie Mae and Connie Lee has come. There is 
little doubt that both of these Government-sponsored enterprises have 
fulfilled their intended purpose, and no longer need Federal subsidies 
to support the secondary loan market. Back in 1972, when Sallie Mae was 
established, there was a need to generate capital in the student loan 
market. However, there are now more than 45 different participants in 
the secondary market, and it makes sense for the Government to reduce 
the burden on taxpayers by releasing these entities from governmental 
control. Both Sallie Mae and Connie Lee want to be privatized and have 
spent many hours negotiating with us to make this separation a reality.
  I urge my colleagues to support privatization on this bill or any 
other legislation that may contain it.

[[Page E1770]]

  H.R. 1720 also contains provisions establishing the Library Services 
and Technology Act. This authority creates a new Institute for Museum 
and Library Services that will integrate our Federal library and museum 
programs to consolidate funds and promote increased cooperation between 
libraries and museums across the Nation. This new partnership will 
focus funds on assisting libraries in acquiring new technologies and 
increasing access to library services for individuals with special 
needs, including children. This new merger was developed in cooperation 
with, and strongly supported by, the American Library Association, the 
U.S. Commission on Libraries and Information Science, and the Institute 
of Museum Services.

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