[Congressional Record Volume 143, Number 10 (Thursday, January 30, 1997)]
[Senate]
[Pages S876-S877]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:

  S. 240. A bill to provide for the protection of books and materials 
of the Library of Congress, and for other purposes; to the Committee on 
Rules and Administration.


              THE LIBRARY OF CONGRESS BOOK PROTECTION ACT

 Mr. McCAIN. Mr. President, today I am introducing legislation 
to help protect the valuable resources of the Library of Congress. The 
Library of Congress Protection Act will help the Library of Congress 
stop abuses of its free book loan program by authorizing the Library to 
impose fines for books that are long overdue.
  I am introducing this legislation to empower Library of Congress 
officials to crack down on individuals who seriously abuse their 
Library privileges, by keeping books too long or failing to return 
them. Library of Congress officials should not have to tolerate the 
fact that many individuals are apparently unconcerned about returning 
the books that taxpayers provide for them. Congress should not prevent 
the Library from instituting strengthened policies to hold severely 
delinquent borrowers responsible for their tardiness.
  This legislation will enable the Library of Congress to implement a 
reasonable overdue book charge policy similar to those of most public 
libraries across America. By doing so, the many Members of Congress, 
congressional staffers, and executive branch employees who benefit from 
this magnificent institution will have an added incentive to comply 
with the generous loan policies of the Library of Congress.
  This proposal is very basic, but it will afford Library officials the 
leverage and flexibility they need to address this problem. This bill 
will help Library of Congress officials keep better track of their 
resources, and will spur many delinquent borrowers to return the books 
that taxpayers provide for them completely free of charge.
  The Library of Congress Book Protection Act would direct the Library 
to implement an overdue book charge policy for books improperly held 
over 70 days. These individuals or offices will have their privileges 
suspended until their fines are paid in full. Library of Congress 
officials will, however, be able to waive such penalties when 
appropriate. The Library would also be authorized to retain the funds 
received from late book fines, as well. Finally, the offices of 
severely delinquent borrowers and the fines they owe will be published 
in the annual report submitted by the Library to its oversight 
committees.
  While figures for the 104th Congress have not been published yet, 
preliminary data shows that as of December 28, 1996, over 2,200 books 
were over 30 days overdue. Figures published by the Library during the 
103d Congress showed that out of the 20,000 books that were out on 
loan, over one-third were listed as overdue. One half of the 4,200 
books on loan to congressional staff and the media were listed as 
overdue, and 1 in 5 books out on loan to Members, committees, and 
congressional support agencies had been overdue for more than 2 months. 
Library of Congress officials state that over 300,000 books are missing 
from their collections dating back to 1978, and the estimated cost of 
these thefts is $12 million.
  I am concerned about the fact that it is all too easy for individuals 
to disregard their responsibility to return books to the Library of 
Congress in a timely manner. This negligence is not only unfair to the 
other users of the Library, but it also drains the Library's resources 
in chasing down overdue or missing books.
  In addition to Members of Congress and congressional staff, the 
Library of Congress also makes loans to executive branch departments 
and agencies, the judiciary and diplomatic corps, the press, and other 
institutions. As I have mentioned, Mr. President, the Library of 
Congress is barred from charging late fees for overdue books in 
contrast to virtually every other publicly funded library in America. 
Furthermore, the Library cannot retain any funds that might be 
collected due to the loss or damage of loaned books. It's clearly time 
to change these unwise restrictions and strengthen the Library's 
ability to protect its resources, and I hope Members of the Senate will 
support this legislation to do so.
  Surely, it's not asking too much of the individuals and offices 
fortunate enough to use the Library of Congress to do so in a 
responsible manner. Even under the new borrowing guidelines that would 
be instituted by this legislation, there really is no reason for any 
well-intentioned borrower ever to have to pay late fines or have their 
privileges suspended. I'm optimistic that the mere specter of having to 
pay overdue book fines will coax delinquent borrowers into 
responsibility renewing their book loans or returning the books.
  I hope that the Senate will adopt this legislation to implement 
prudent new guidelines in the book loan policies of the Library of 
Congress.
                                  _____
                                 
       By Mr. McCAIN:
  S. 241. A bill to amend the Internal Revenue Code of 1986 to allow a 
family-owned business exclusion from the gross estate subject to estate 
tax, and for other purposes; to the Committee on Finance.


                 THE AMERICAN FAMILY-OWNED BUSINESS ACT

 Mr. McCAIN. Mr. President, I rise today to introduce the 
American Family-Owned Business Act--a bill that will preserve the 
American family businesses and save jobs across the country. This bill 
cuts estate tax rates in half and also creates a new exclusion that 
completely eliminates the estate tax for small businesses. Under the 
new exclusion, family-owned businesses can exempt up to $1.5 million of 
family business assets from their estate. If a family business is 
valued at more than $1.5 million, the excess is taxed at one-half of 
the current rates--thus providing a maximum tax rate of 27.5 percent.
  This legislation was introduced in the last Congress by my good 
friend, the former majority leader, Bob Dole. Although this legislation 
was included in S. 2, The Family Tax Relief Act, I feel so strongly 
about the need for estate tax relief for family-owned businesses and 
farmers that I felt it was necessary to introduce this legislation on 
its own.
  The current Federal estate tax is just too burdensome on the American 
family. Time and time again, farmers and other business owners across 
the country have told me that estate tax rates are just too high. They 
rise quickly from 18 to 55 percent, effectively making the Government a 
50-50 partner in a family business.
  Even the most sophisticated estate tax planning and the purchase of 
life insurance cannot sufficiently mitigate the effects of these high 
rates, leaving families no recourse but to sell their businesses to pay 
the estate tax. This bill will stop these forced sales from happening 
again.
  I agree with many who say that estate tax rates should be reduced 
across the board, or repealed entirely. I applaud my colleague, Senator 
Kyl, who is leading the effort to repeal the estate tax. And I hope 
that we do that some day. But given our current budget crisis, we will 
likely have to take an incremental approach on the estate tax. This 
legislation takes an important step in that direction.
  This legislation will protect and preserve family enterprises. We 
know too

[[Page S877]]

well the adverse impact of an estate tax-forced sale. The family loses 
its livelihood, the family business employees lose their jobs, and the 
community suffers.
  We must do all that we can to help family-owned businesses not only 
survive, but also prosper. They are the job creators in this country. 
In the 1980's alone, family businesses accounted for an increase of 
more than 20 million private-sector jobs.
  By relieving families of the burden of the estate tax and letting 
them keep their businesses, they can continue to prosper. And when 
families continue to operate their businesses, we all benefit--the 
business' employees keep their jobs, the government receives income 
taxes on business profits, and the families retain their livelihood.
  The bill requires heirs to participate in the family business. These 
participation rules are deliberately flexible and recognize that 
different family businesses need differing levels of participation by 
heirs.
  The estate tax is not a Democratic or a Republican problem, or one 
that affects only rural or urban families. There are farmers, ranchers, 
or other family businesses in each State that would benefit from this 
legislation.
  This bill provides the critical relief needed for American families' 
businesses. I urge my colleagues to support this effort, and I hope 
that Congress will act expeditiously on this important 
legislation.
                                 ______