[Congressional Record Volume 143, Number 79 (Monday, June 9, 1997)]
[Senate]
[Pages S5413-S5424]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. FAIRCLOTH (for himself and Mr. Helms):
S. 849. A bill to amend the Internal Revenue Code of 1986 to increase
the unified estate and gift tax credit to exempt farms and small
businesses from estate taxes, and for other purposes; to the Committee
on Finance.
the American Farm Heritage and Small Business Preservation Act
Mr. FAIRCLOTH. Mr. President, I rise to introduce the American Farm
Heritage and Small Business Preservation Act, and I am joined by the
senior Senator from North Carolina. The act excludes the first $1.5
million of estate and gift assets from taxation, and it carries an
effective date of January 1, 1998.
The act will relieve the tax burden that befalls farmers and small
businessmen upon the death of the proprietor. There is truth in the old
axiom that farmers ``live like paupers and die like kings,'' and, in
fact, the IRS reports that farmers face estate taxes six times more
often than other Americans.
There are numerous estate and gift tax relief bills in the
congressional hopper. However, I favor a straightforward approach, and,
rather than require some form of participation in the business
operation for a fixed period of time--and thus permit the IRS to
establish nebulous and complicated regulations--the American Farm
Heritage and Small Business Preservation Act proposes a simple $1.5
million exclusion for all estates.
The estate tax encourages the demise of the family farm and forces
heirs to mortgage their agricultural heritage to the IRS. The estate
tax is not a threat to just large farmers: some 20 percent of farms
that report annual sales over $50,000 will trigger inheritance taxes.
Indeed, the nature of a farm operation--75 percent of farm assets are
nonliquid--complicates the difficulties inherent in the payment of
estate taxes for farm families, and the financial structure of a farm
thus further contributes to this erosion of our agricultural heritage.
The average annual return on farm assets is just 4 percent, and the
addition of mortgage obligations reduces the return to a mere 0.5
percent, so it is almost impossible for the next generation to continue
to farm the family land.
As metropolitan areas continue to grow and encroach upon the farms
that sit outside these areas, the value of the farms increases, and it
drives up the estate tax burden. This pattern forces heirs to sell the
farmland to developers rather than continue their agricultural
heritage. Further, the Agriculture Department estimates that 500,000
farmers will retire over the next two decades. The failure of the
Congress to reduce the impact of estate taxes thus threatens the
continued operation of almost one-quarter of the farms in the United
States.
I am thus committed to estate tax relief for American families. The
IRS is a tax collection agency, not a board of directors, and
Washington does not deserve a windfall from every funeral.
______
By Mr. AKAKA (for himself, Mr. Smith of New Hampshire, Mr. Reid,
and Mr. Torricelli):
S. 850. A bill to amend the Packers and Stockyards Act, 1921, to make
it unlawful for any stockyard owner, market agency, or dealer to
transfer or market nonambulatory livestock, and for other purposes.
The Downed Animal Protection Act of 1997
Mr. AKAKA. Mr. President, today I am introducing the Downed
Animal Protection Act, a bill to eliminate inhumane and improper
treatment of downed animals at stockyards. Senators Smith, Reid, and
Torricelli have joined me in sponsoring this bill. The legislation
prohibits the sale or transfer of downed animals unless they have been
humanely euthanized.
Downed animals are severely distressed recumbent animals that are so
sick they cannot rise or move on their own. Once an animal becomes
immobile and cannot stand, it must lie where it falls, often without
receiving basic assistance. Downed animals that survive the stockyard
are slaughtered for human consumption.
These animals are extremely difficult, if not impossible, to handle
humanely. They have very demanding needs, and must be fed and watered
individually. The suffering of downed animals is so severe that the
only humane solution is immediate euthanasia.
Mr. President, the bill I have introduced requires that these
hopelessly sick and injured animals be euthanized by humane methods
that rapidly and
[[Page S5414]]
effectively render animals insensitive to pain. Humane euthanasia of
downed animals will limit animal suffering and will encourage the
livestock industry to concentrate on improved management and handling
practices to avoid this problem in the first place.
Downed animals comprise a tiny fraction, less than one-tenth of 1
percent, of animals at stockyards. Banning their sale or transfer would
cause no economic hardship. The Downed Animal Protection Act will
prompt stockyards to refuse crippled and distressed animals and will
make the prevention of downed animals a priority for the livestock
industry. The bill will reinforce the industry's commitment to humane
handling of animals.
The downed animal problem has been addressed by major livestock
organizations such as the United Stockyards Corp., the Minnesota
Livestock Marketing Association, the National Pork Producers Council,
the Colorado Cattlemen's Association, and the Independent Cattlemen's
Association of Texas. All these organizations have taken strong stands
against improper treatment of animals by adopting ``no-downer''
policies. I want to commend these and other organizations, as well as
responsible and conscientious livestock producers throughout the
country, for their efforts to end an appalling problem that erodes
consumer confidence.
Despite a strong consensus within industry, the animal welfare
movement, consumers, and Government that downed animals should not be
sent to stockyards, this sad problem continues, causing animal
suffering and an erosion of confidence in the industry.
Mr. President, this legislation will complement industry efforts to
address this problem by encouraging better care of animals at farms and
ranches. Animals with impaired mobility will receive better treatment
in order to prevent them from becoming incapacitated. The bill will
remove the incentive for sending downed animals to stockyards in the
hope of receiving some salvage value for the animals and would
encourage greater care during loading and transport. The bill will also
discourage improper breeding practices that account for most downed
animals.
My legislation would set a uniform national standard, thereby
removing any unfair advantages that might result from differing
standards throughout the industry. Furthermore, no additional
bureaucracy will be needed as a consequence of my bill because
inspectors of the Packers and Stockyards Administration regularly visit
stockyards to enforce existing regulations. Thus, the additional
regulatory burden on the agency and stockyard operators will be
insignificant.
I ask unanimous consent that a copy of the Downed Animal Protection
Act be printed in the Record. I urge all of my colleagues to join in
supporting this legislation.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 850
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 ``Downed Animal Protection
Act''.
SEC. 2. UNLAWFUL STOCKYARD PRACTICES INVOLVING NONAMBULATORY
LIVESTOCK.
(a) In General.--Title III of the Packers and Stockyards
Act, 1921, is amended by inserting after section 317 (7
U.S.C. 217a) the following:
``SEC. 318. UNLAWFUL STOCKYARD PRACTICES INVOLVING
NONAMBULATORY LIVESTOCK.
``(a) Definitions.--In this section:
``(1) Humanely euthanized.--The term `humanely euthanized'
means to kill an animal by mechanical, chemical, or other
means that immediately render the animal unconscious, with
this state remaining until the animal's death.
``(2) Nonambulatory livestock.--The term `nonambulatory
livestock' means any livestock that is unable to stand and
walk unassisted.
``(b) Unlawful Practices.--It shall be unlawful for any
stockyard owner, market agency, or dealer to buy, sell, give,
receive, transfer, market, hold, or drag any nonambulatory
livestock unless the nonambulatory livestock has been
humanely euthanized.''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) takes
effect 1 year after the date of the enactment of this Act.
(2) Regulations.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Agriculture shall
issue regulations to carry out the amendment.
______
By Mr. LOTT (for himself and Mr. Ford):
S. 852. A bill to establish nationally uniform requirements regarding
the titling and registration of salvage, nonrepairable, and rebuilt
vehicles; to the Committee on Commerce, Science, and Transportation.
NATIONAL MOTOR VEHICLE SAFETY, ANTI-THEFT, TITLE REFORM, AND CONSUMER
PROTECTION ACT OF 1997
Mr. LOTT. Mr. President, today I am here to talk to my colleagues
about used cars. No, not to sell you one, but more importantly, to
protect Americans who buy used cars. I am joined by my friend and
colleague Senator Ford in introducing legislation which will require
that the title of a vehicle, at the time of resale, indicate that it
has been significantly damaged. This bill is about safety. This bill is
about consumer protection.
We believe America's policy must protect used car consumers from
unknowingly purchasing automobiles which have been totaled and rebuilt,
but sold as undamaged vehicles. Often these vehicles have serious
safety problems. We want you to join us in helping to protect the
public. In the last Congress, I worked with Senator Exon to advance
similar legislation. We need to complete the job this Congress.
According to the U.S. Department of Transportation's automobile
auction figures, the practice of selling rebuilt salvage vehicles as
undamaged used cars costs consumers and the auto industry nearly $4
billion annually. In some States, as many as 70 percent of all totaled
vehicles may return to the roads after being purchased by unsuspecting
buyers. This is dangerous to everyone on America's highways.
While most States require some type of disclosure on the title
indicating a vehicle's history, the requirements vary from State to
State. Some rebuilders take advantage of these inconsistencies in State
titling procedures to obtain clean titles that bear no indication of
previous vehicle damage. Not only does this type of fraud affect the
consumer's wallet, it also threatens the consumer's safety.
Several years ago, Congress established a Federal task force to study
this issue. This consumer friendly bill stems from the recommendations
of that task force.
Our bill requires that any vehicle with damage exceeding 75 percent
of its preaccident value be designated as a salvage vehicle. If the
salvage vehicle is rebuilt and placed back on the road, the title to
the vehicle must be branded as a rebuilt salvage vehicle and it must
have an inspection to assure that stolen parts were not used in the
repair. In addition, all rebuilt salvage vehicles must have a decal
permanently affixed to the driver's side door jamb indicating that the
vehicle has been rebuilt. It will also specify whether the vehicle has
passed an approved safety inspection.
Mr. President, the number of victims in the rebuilt salvage vehicle
industry is growing, and it must be stopped. We need to establish
policies to stop these illegal practices and protect American drivers.
Along with Mr. Ford, I urge you to join us as a cosponsor of this
common sense legislation.
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. 852
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 Motor Vehicle
Safety, Anti-theft, Title Reform, and Consumer Protection Act
of 1997''.
SEC. 2. MOTOR VEHICLE TITLING AND DISCLOSURE REQUIREMENTS.
(a) In General.--Subtitle VI of title 49, United States
Code, is amended by adding at the end the following new
chapter:
``CHAPTER 333--AUTOMOBILE SAFETY, ANTI-THEFT, AND TITLE DISCLOSURE
REQUIREMENTS
``Sec.
``33301. Definitions.
``33302. Passenger motor vehicle titling.
``33303. Label requirement.
``33304. Petition for extensions of time.
``33305. Effect on State law.
``33306. Civil and criminal penalties.
``Sec. 33301. Definitions
``For the purposes of this chapter the following
definitions and requirements shall apply:
[[Page S5415]]
``(1) Passenger motor vehicle.--The term `passenger motor
vehicle' means a motor vehicle as defined in section 32101(7)
that is rated by the manufacturer at not more than 10,000
pounds gross vehicle weight and that is either--
``(A) a passenger motor vehicle as defined in section
32101(10), including a multipurpose passenger vehicle as
defined in section 32101(9); or
``(B) a truck (other than a truck referred to in section
32101(10)(B)).
``(2) Salvage vehicle.--
``(A) In general.--Subjet to subparagraph (E), the term
`salvage vehicle' means any passenger motor vehicle that has
been wrecked, destroyed, or damaged to the extent that--
``(i) if the vehicle is not rebuilt or reconstructed, the
total estimated cost; or
``(ii) if the vehicle is rebuilt or reconstructed, the
total actual cost
of parts and labor to rebuild or reconstruct the passenger
motor vehicle to its preaccident condition for legal
operation on the roads or highways exceeds 75 percent of the
retail value of the passenger motor vehicle, immediately
before it was wrecked, damaged, or destroyed, as set forth in
the most recent edition of any nationally recognized
compilation (including automated databases) of current retail
values that is approved by the Secretary.
``(B) Vehicles excluded.--Such term does not include any
passenger motor vehicle that--
``(i) has a model year designation of the year in which the
vehicle was wrecked, destroyed, or damaged, or one of the 6
immediately preceding model years; or
``(ii) had a retail value, immediately before it was
wrecked, destroyed, or damaged, of more than $10,000.
Beginning with the second calendar year beginning after the
date of enactment of the National Motor Vehicle Safety, Anti-
theft, Title Reform, and Consumer Protection Act of 1997, the
Secretary shall adjust the dollar figure in clause (ii) of
this subparagraph to reflect the change, if any, in the
average consumer price index for the preceding year from the
average consumer price index for 1997.
``(C) Determination of value of repair parts.--For purposes
of subparagraph (A), the value of repair parts shall be
determined by using--
``(i) the published retail cost of the original equipment
manufacturer parts; or
``(ii) the actual retail cost of the repair parts to be
used in the repair.
``(D) Determination of labor costs.--For purposes of
subparagraph (A), the labor cost of repairs shall be computed
by using the hourly labor rate and time allocations that are
reasonable and customary in the automobile repair industry in
the community in which the repairs are performed.
``(E) Certain vehicles included.--The term `salvage
vehicle' includes, without regard to whether the passenger
motor vehicle meets the 75 percent threshold specified in
subparagraph (A)--
``(i) any passenger motor vehicle with respect to which an
insurance company acquires ownership under a damage
settlement (except for a settlement in connection with a
recovered theft vehicle that did not sustain a sufficient
degree of damage to meet the 75 percent threshold specified
in subparagraph (A)); or
``(ii) any passenger motor vehicle that an owner may wish
to designate as a salvage vehicle by obtaining a salvage
title, without regard to the extent of the damage and
repairs.
``(F) Special rule.--A designation of a passenger motor
vehicle by an owner under subparagraph (E)(ii) shall not
impose any obligation on--
``(i) the insurer of the passenger motor vehicle; or
``(ii) an insurer processing a claim made by or on behalf
of the owner of the passenger motor vehicle.
``(3) Salvage title.--
``(A) In general.--The term `salvage title' means a
passenger motor vehicle ownership document issued by a State
to the owner of a salvage vehicle.
``(B) Transfer of ownership.--Ownership of a salvage
vehicle may be transferred on a salvage title.
``(C) Prohibition.--The salvage vehicle may not be
registered for use on the roads or highways unless the
salvage vehicle has been issued a rebuilt salvage title.
``(D) Requirement for a salvage title.--A salvage title
shall be conspicuously labeled with the word `salvage' across
the front of the document.
``(4) Rebuilt salvage vehicle.--The term `rebuilt salvage
vehicle' means--
``(A) For passenger motor vehicles subject to a safety
inspection in a State that requires such an inspection under
section 33302(b)(2)(H), any passenger motor vehicle that
has--
``(i) been issued previously a salvage title;
``(ii) passed applicable State antitheft inspection;
``(iii) been issued a certificate indicating that the
passenger motor vehicle has--
``(I) passed the antitheft inspection referred to in clause
(ii); and
``(II) been issued a certificate indicating that the
passenger motor vehicle has passed a required safety
inspection under section 33302(b)(2)(H); and
``(iv) affixed to the door jamb adjacent to the driver's
seat a decal stating `Rebuilt Salvage Vehicle--Antitheft and
Safety Inspections Passed'; or
``(B) for passenger motor vehicles in a State other than a
State referred to in subparagraph (A), any passenger motor
vehicle that has--
``(i) been issued previously a salvage title;
``(ii) passed an applicable State antitheft inspection;
``(iii) been issued a certificate indicating that the
passenger motor vehicle has passed the required antitheft
inspection referred to in clause (ii); and
``(iv) affixed to the door jamb adjacent to the driver's
seat, a decal stating `Rebuilt Salvage Vehicle--Antitheft
Inspection Passed/No Safety Inspection Pursuant to National
Criteria'.
``(5) Rebuilt salvage title.--
``(A) In general.--The term `rebuilt salvage title' means
the passanger motor vehicle ownership document issued by a
State to the owner of a rebuilt salvage vehicle.
``(B) Transfer of ownership.--Ownership of a rebuilt
salvage vehicle may be transferred on a rebuilt salvage
title.
``(C) Registration for use.--A passenger motor vehicle for
which a rebuilt salvage title has been issued may be
registered for use on the roads and highways.
``(D) Requirement for a rebuilt salvage title.--A rebuilt
salvage title shall be conspicuously labeled, either with
`rebuilt salvage vehicle--antitheft and safety inspections
passed' or `rebuilt salvage vehicle--antitheft inspection
passed/no safety inspection pursuant to national criteria',
as appropriate, across the front of the document.
``(6) Nonrepairable vehicle.--
``(A) In general.--The term `nonrepairable vehicle' means
any passenger motor vehicle that--
``(i)(I) is incapable of safe operation for use on roads or
highways; and
``(II) has no resale value, except as a source of parts or
scrap only; or
``(ii) the owner irreversibly designatges as a source of
parts or scrap.
``(B) Certificate.--Each nonrepairable vehicle shall be
issued a nonrepairable vehicle certificate.
``(7) Nonrepairable vehicle certificate.--
``(A) In general.--The term `nonrepairable vehicle
certificate' means a passenger motor vehicle ownership
document issued by the State to the owner of a nonrepairable
vehicle.
``(B) Transfer of ownership.--Ownership of the passenger
motor vehicle may be transferred not more than 2 times on a
nonrepairable vehicle certificate.
``(C) Prohibition.--A nonrepairable vehicle that is issued
a nonrepairable vehicle certificate may not be titled or
registered for use on roads or highways at any time after the
issuance of the certificate.
``(D) Requirement for nonrepairable vehicle certificate.--A
nonrepairable vehicle certificate shall be conspicuously
labeled with the term `nonrepairable' across the front of the
document.
``(8) Flood vehicle.--
``(A) In general.--The term `flood vehicle' means any
passenger motor vehicle that has been submerged in water to
the point that rising water has reached over the door sill of
the motor vehicle and has entered the passenger or truck
compartment.
``(B) Requirement for disclosure.--Disclosure that a
passenger motor vehicle has become a flood vehicle shall be
made by the person transferring ownership at the time of
transfer of ownership. After such transfer is completed, the
certificate of title shall be conspicuously labeled with the
term `flood' across the front of the document.
``(9) Secretary.--The term `Secretary' means the Secretary
of Transportation.
``Sec. 33302. Passenger motor vehicle titling
``(a) Carryforward of Certain Title Information If a
Previous Title Was Not Issued in Accordance with Certain
Nationally Uniform Standards.--
``(1) In general.--If--
``(A) records that are readily accessible to a State
indicate that a passenger motor vehicle with respect to which
the ownership is transferred on or after the date that is 1
year after the date of enactment of the National Motor
Vehicle Safety, Anti-theft, Title Reform, and Consumer
Protection Act of 1997, has been issued previously a title
that bore a term or symbol described in paragraph (2); and
``(B) the State licenses that vehicle for use, the State
shall disclose that fact on a certificate of title issued by
the State.
``(2) Terms and symbols.--
``(A) In general.--A State shall be subject to the
requirements of paragraph (1) with respect to the following
terms on a title that has been issued previously to a
passenger motor vehicle (or symbols indicating the meanings
of those terms):
``(i) salvage.
``(ii) unrebuildable.
``(iii) parts only.
``(iv) scrap.
``(v) junk.
``(vi) nonrepairable.
``(vii) reconstructed.
``(viii) rebuilt.
``(ix) any other similar term, as determined by the
Secretary.
``(B) Flood damage.--A State shall be subject to the
requirements of paragraph (1) if a term or symbol on a title
issued previously for a passenger vehicle indicates that the
vehicle has been damaged by flood.
``(b) Nationally Uniform Title Standards and Control
Methods.--
``(1) In general.--Not later than 18 months after the date
of the enactment of the National Motor Vehicle Safety, Anti-
theft,
[[Page S5416]]
Title Reform, and Consumer Protection Act of 1997, the
Secretary shall issue regulations that require each State
that licenses passenger motor vehicles with respect to which
the ownership is transferred on or after the date that is 2
years after the issuance of final regulations, to apply with
respect to the issuance of the title for any such motor
vehicle uniform standards, procedures, and methods for--
``(A) the issuance and control of that title; and
``(B) information to be contained on such title.
``(2) Contents of regulations.--The titling standards,
control procedures, methods, and information covered under
the regulations issued under this subsection shall include
the following:
``(A) Indication of status.--Each State shall indicate on
the face of a title or certificate for a passenger motor
vehicle, as applicable, if the passenger motor vehicle is a
salvage vehicle, a nonrepairable vehicle, a rebuilt salvage
vehicle, or a flood vehicle.
``(B) Subsequent titles.--The information referred to in
subparagraph (A) concerning the status of the passenger
vehicle shall be conveyed on any subsequent title, including
a duplicate or replacement title, for the passenger motor
vehicle issued by the original titling State or any other
State.
``(C) Security standards.--The title documents, the
certificates and decals required by section 33301(4), and the
system for issuing those documents, certificates, and decals
shall meet security standards that minimize opportunities for
fraud.
``(D) Identifying information.--Each certificate of title
referred to in subparagraph (A) shall include the passenger
motor vehicle make, model, body type, year, odometer
disclosure, and vehicle identification number.
``(E) Uniform layout.--The title documents covered under
the regulations shall maintain a uniform layout, that shall
be established by the Secretary, in consultation with each
State or an organization that represents States.
``(F) Nonrepairable vehicles.--A passenger motor vehicle
designated as nonrepairable--
``(i) shall be issued a nonrepairable vehicle certificate;
and
``(ii) may not be retitled.
``(G) Rebuilt salvage title.--No rebuilt salvage title may
be issued to a salvage vehicle unless, after the salvage
vehicle is repaired or rebuilt, the salvage vehicle complies
with the requirements for a rebuilt salvage vehicle under
section 33301(4).
``(H) Inspection programs.--Each State inspection program
shall be designed to comply with the requirements of this
subparagraph and shall be subject to approval and periodic
review by the Secretary. Each such inspection program shall
include the following:
``(i) Each owner of a passenger motor vehicle that submits
a vehicle for an antitheft inspection shall be required to
provide--
``(I) a completed document identifying the damage that
occurred to the vehicle before being repaired;
``(II) a list of replacement parts used to repair the
vehicle;
``(III) proof of ownership of the replacement parts
referred to in subclause (II) (as evidenced by bills of
sales, invoices or, if such documents are not available,
other proof of ownership for the replacement parts); and
``(IV) an affirmation by the owner that--
``(a) the information required to be submitted under this
subparagraph is complete and accurate; and
``(b) to the knowledge of the declarant, no stolen parts
were used during the rebuilding of the repaired vehicle.
``(ii) Any passenger motor vehicle or any major part or
major replacement part required to be marked under this
section that--
``(I) has a mark or vehicle identification number that has
been illegally altered, defaced, or falsified; and
``(II) cannot be identified as having been legally obtained
(through evidence described in clause (i)(III)),
shall be contraband and subject to seizure.
``(iii) To avoid confiscation of parts that have been
legally rebuilt or remanufactured, the regulations issued
under this subsection shall include procedures that the
Secretary, in consultation with the Attorney General of the
United States, shall establish--
``(I) for dealing with parts with a mark or vehicle
identification number that is normally removed during
remanufacturing or rebuilding practices that are considered
acceptable by the automotive industry; and
``(II) deeming any part referred to in subclause (I) to
meet the identification requirements under the regulations if
the part bears a conspicuous mark of such type, and is
applied in such manner, as may be determined by the Secretary
to indicate that the part has been rebuilt or
remanufactured.
``(iv) With respect to any vehicle part, the regulations
issued under this subsection shall--
``(I) acknowledge that a mark or vehicle identification
number on such part may be legally removed or altered, as
provided under section 511 of title 18, United States Code;
and
``(II) direct inspectors to adopt such procedures as may be
necessary to prevent the seizure of a part from which the
mark or vehicle identification number has been legally
removed or altered.
``(v) The Secretary shall establish nationally uniform
safety inspection criteria to be used in States that require
such a safety inspection. A State may determine whether to
conduct such safety inspection, contract with a third party,
or permit self-inspection. Any inspection conducted under
this clause shall be subject to criteria established by the
Secretary. A State that requires a safety inspection under
this clause may require the payment of a fee for such
inspection or the processing of such inspection.
``(I) Duplicate titles.--No duplicate or replacement title
may be issued by a State unless--
``(i) the term `duplicate' is clearly marked on the face of
the duplicate or replacement title; and
``(ii) the procedures issued are substantially consistent
with the recommendation designated as recommendation 3 in the
report issued on February 10, 1994, under section 140 of the
Anti Car Theft Act of 1992 (15 U.S.C. 2041 note) by the task
force established under such section.
``(J) Titling and control methods.--Each State shall employ
the following titling and control methods:
``(i) If an insurance company is not involved in a damage
settlement involving a salvage vehicle or a nonrepairable
vehicle, the passenger motor vehicle owner shall be required
to apply for a salvage title or nonrepairable vehicle
certificate, whichever is applicable, before the earlier of
the date--
``(I) on which the passenger motor vehicle is repaired or
the ownership of the passenger motor vehicle is transferred;
or
``(II) that is 30 days after the passenger motor vehicle is
damaged.
``(ii) If an insurance company, under a damage settlement,
acquires ownership of a passenger motor vehicle that has
incurred damage requiring the vehicle to be titled as a
salvage vehicle or nonrepairable vehicle, the insurance
company shall be required to apply for a salvage title or
nonrepairable vehicle certificate not later than 15 days
after the title to the motor vehicle is--
``(I) properly assigned by the owner to the insurance
company; and
``(II) delivered to the insurance company with all liens
released.
``(iii) If an insurance company does not assume ownership
of an insured person's or claimant's passenger motor vehicle
that has incurred damage requiring the vehicle to be titled
as a salvage vehicle or nonrepairable vehicle, the insurance
company shall, as required by the applicable State--
``(I) notify--
``(I) the owner of the owner's obligation to apply for a
salvage title or nonrepairable vehicle certificate for the
passenger motor vehicle; and
``(II) the State passenger motor vehicle titling office
that a salvage title or nonrepairable vehicle certificate
should be issued for the vehicle.
``(iv) If a leased passenger motor vehicle incurs damage
requiring the vehicle to be titled as a salvage vehicle or
nonrepairable vehicle, the lessor shall be required to apply
for a salvage title or nonrepairable vehicle certificate not
later than 21 days after being notified by the lessee that
the vehicle has been so damaged, except in any case in which
an insurance company, under a damage settlement, acquires
ownership of the vehicle. The lessee of such vehicle shall be
required to inform the lessor that the leased vehicle has
been so damaged not later than 30 days after the occurrence
of the damage.
``(v)(I) any person who requires ownership of a damaged
passenger motor vehicle that meets the definition of a
salvage or nonrepairable vehicle for which a salvage title or
nonrepairable vehicle certificate has not been issued, shall
be required to apply for a salvage title or nonrepairable
vehicle certificate, whichever is applicable.
``(II) An application under subclause (I) shall be made the
earlier of--
``(a) the date on which the vehicle is further transferred;
or
``(b) 30 days after ownership is acquired.
``(III) The requirements of this clause shall not apply to
any scrap metal processor that--
``(a) acquires a passenger motor vehicle for the sole
purpose of processing the motor vehicle into prepared grades
of scrap; and
``(b) carries out that processing.
``(vi) State records shall note when a nonrepairable
vehicle certificate is issued. No State shall issue a
nonrepairable vehicle certificate after 2 transfers of
ownership in violation of section 33301(b)(7)(B).
``(vii)(I) In any case in which a passenger motor vehicle
has been flattened, baled, or shredded, whichever occurs
first, the title or nonrepairable vehicle certificate for the
vehicle shall be surrendered to the State not later than 30
days after that occurrence.
``(II) If the second transferee on a nonrepairable vehicle
certificate is unequipped to flatten, bale, or shred the
vehicle, such transferee shall be required, at the time of
final disposal of the vehicle, to use the services of a
professional automotive recycler or professional scrap
processor. That recycler or reprocessor shall have the
authority to--
``(a) flatten, bale, or shred the vehicle; and
``(b) effect the surrender of the nonrepairable vehicle
certificate to the State on behalf of the second transferee.
``(III) State records shall be updated to indicate the
destruction of a vehicle under this clause and no further
ownership transactions for the vehicle shall be permitted
after the vehicle is so destroyed.
``(IV) If different from the State of origin of the title
or nonrepairable vehicle certificate, the State of surrender
shall notify the
[[Page S5417]]
State of origin of the surrender of the title or
nonrepairable vehicle certificate and of the destruction of
such vehicle.
``(viii)(I) In any case in which a salvage title is issued,
the State records shall note that issuance. No State may
permit the retitling for registration purposes or issuance of
a rebuilt salvage title for a passenger motor vehicle with
a salvage title without a certificate of inspection that--
``(a) complies with the security and guideline standards
established by the Secretary under subparagraphs (C) and (G),
as applicable; and
``(b) indicates that the vehicle has passed the inspections
required by the State under subparagraph (H).
``(II) Nothing is this clause shall preclude the issuance
of a new salvage title for a salvage vehicle after a transfer
of ownership.
``(ix) After a passenger motor vehicle titled with a
salvage title has passed the inspections required by the
State, the inspection official shall--
``(I) affix a secure decal required under section 33301(4)
(that meets permanency requirements that the Secretary shall
establish by regulation) to the door jamb on the driver's
side of the vehicle; and
``(II) issue to the owner of the vehicle a certificate
indicating that the passenger motor vehicle has passed the
inspections required by the State.
``(x)(I) The owner of a passenger motor vehicle titled with
a salvage title may obtain a rebuilt salvage title and
vehicle registration by presenting to the State the salvage
title, properly assigned, if applicable, along with the
certificate that the vehicle has passed the inspections
required by the State.
``(II) If the owner of a rebuilt salvage vehicle submits
the documentation referred to in subclause (I), the State
shall issue upon the request of the owner a rebuilt salvage
title and registration to the owner. When a rebuilt salvage
title is issued, the State records shall so note.
``(K) Flood vehicles.--
``(i) In general.--A seller of a passenger motor vehicle
that becomes a flood vehicle shall, at or before the time of
transfer of ownership, provide a written notice to the
purchaser that the vehicle is a flood vehicle. At the time of
the next title application for the vehicle--
``(I) the applicant shall disclose the flood status to the
applicable State with the properly assigned title; and
``(II) the term `flood' shall be conspicuously labeled
across the front of the new title document.
``(ii) Leased vehicles.--In the case of a leased passenger
motor vehicle, the lessee, within 15 days after the
occurrence of the event that caused the vehicle to become a
flood vehicle, shall give the lessor written disclosure that
the vehicle is a flood vehicle.
``(c) Electronic Procedures.--A State may employ electronic
procedures in lieu of paper documents in any case in which
such electronic procedures provided levels of information,
function, and security required by this section that are at
least equivalent to the levels otherwise provided by paper
documents.
``Sec. 33303. Label requirement
``(a) In General.--The Secretary shall by regulation
require that a label be affixed to the windshield or window
of a rebuilt or remanufactured salvage vehicle before its
first sale at retail containing such information regarding
that vehicle as the Secretary may require. The requirements
prescribed by the Secretary under this subsection shall be
similar to the requirements of section 3 of the Automobile
Information Disclosure Act (15 U.S.C. 1232). The label shall
be affixed by the individual who conducts the applicable
State antitheft inspection.
``(b) Removal, Alteration, or Illegibility of Required
Label.--No person shall willfully remove, alter, or render
illegible any label required by subsection (a) affixed to a
rebuilt or remanufactured salvage vehicle before the vehicle
is delivered to the actual custody and possession of the
ultimate purchaser of the vehicle.
``Sec. 33304. Petition for extensions of time
``(a) In General.--Subject to subsection (b), if a State
demonstrates to the satisfaction of the Secretary, a valid
reason for needing an extension of a deadline for compliance
with requirements under section 33302(a), the Secretary may
extend, for a period determined by the Secretary, an
otherwise applicable deadline with respect to that State.
``(b) Limitation.--No extension made under subsection (a)
shall remain in effect on or after the applicable compliance
date established under section 33302(b).
``Sec. 33305. Effect on State law
``(a) In General.--Beginning on the effective date of the
regulations issued under section 33302, this chapter shall
preempt any State law, to the extent that State law is
inconsistent with this chapter or the regulations issued
under this chapter that--
``(1) establish the form of the passenger motor vehicle
title;
``(2)(A) define, in connection with a passenger motor
vehicle (but not in connection with a passenger motor vehicle
part or part assembly separate from a passenger motor
vehicle)--
``(i) any term defined in section 33301;
``(ii) the term `salvage', `junk', `reconstructed',
`nonrepairable', `unrebuildable', `scrap', `parts only',
`rebuilt', `flood', or any other similar symbol or term; or
``(B) apply any of the terms referred to in subparagraph
(A) to any passenger motor vehicle (but not in connection
with a passenger motor vehicle part or part assembly separate
from a passenger motor vehicle); or
``(3) establish titling, recordkeeping, antitheft
inspection, or control procedures in connection with any
salvage vehicle, rebuilt salvage vehicle, nonrepairable
vehicle, or flood vehicle.
``(b) Additional Disclosures.--Additional disclosures of
the title status or history of a motor vehicle, in addition
to disclosures made concerning the applicability of terms
defined in section 33301, may not be considered to be
inconsistent with this chapter.
``(c) Disclosure of Safety Inspection.--Nothing in this
chapter shall preclude a State from disclosing on a rebuilt
salvage title that a rebuilt salvage vehicle has passed a
State safety inspection that differed from the nationally
uniform criteria promulgated under section 33302(b)(2)(H)(v).
``(d) State Enforcement.--Subsection (a) does not preclude
a State from enforcing the provisions of this chapter by
injunction or otherwise, or by establishing State civil or
criminal penalties for violations of the provisions of this
chapter.
``Sec. 33306. Civil and criminal penalties
``(a) Prohibited Acts.--It shall be unlawful for any person
knowingly and willfully to--
``(1) make or cause to be made any false statement on an
application for a title (or duplicate title) for a passenger
motor vehicle;
``(2) fail to apply for a salvage title in any case in
which such an application is required;
``(3) alter, forge, or counterfeit--
``(A) A certificate of title (or an assignment thereof);
``(B) a nonrepairable vehicle certificate;
``(C) a certificate verifying an antitheft inspection or an
antitheft and safety inspection; or
``(D) a decal affixed to a passenger motor vehicle under
section 33302(b)(2)(J)(ix);
``(4) falsify the results of, or provide false information
in the course of, an inspection conducted under section
33302(b)(2)(H);
``(5) offer to sell any salvage vehicle or non-repairable
vehicle as a rebuilt salvage vehicle; or
``(6) conspire to commit any act under paragraph (1), (2),
(3), (4), or (5).
``(b) Civil Penalty.--Any person who commits an unlawful
act under subsection (a) shall be subject to a civil penalty
in an amount not to exceed $2,000.
``(c) Criminal Penalty.--Any person who knowingly commits
an unlawful act under subsection (a) shall, upon conviction,
be--
``(1) subject to a fine in an amount not to exceed $50,000;
``(2) imprisoned for a term not to exceed 3 years; or
``(3) subject to both fine under paragraph (1) and
imprisonment under paragraph (2).''.
(b) Conforming Amendment.--The analysis for subtitle VI of
Title 49, United States Code, is amended by adding at the end
the following new item:
``Automobile safety, antitheft, and title disclosure requirements
33301''.
______
By Mr. D'AMATO (by request):
S. 853. A bill to protect the financial interests of the Federal
Government through debt restructuring and subsidy reduction in
connection with multifamily housing; to enhance the effectiveness of
enforcement provisions relating to single family and multifamily
housing (including amendments to the Bankruptcy Code); to consolidate
and reform the management of multifamily housing programs; and for
other purposes; to the Committee on Banking, Housing, and Urban
Affairs.
the housing 2020: multifamily management reform act
Mr. D'AMATO. Mr. President, as chairman of the Committee on
Banking, Housing, and Urban Affairs, I introduce the Housing 2020:
Multifamiy Management Reform Act at the request of the Secretary of the
Department of Housing and Urban Development [HUD], the Honorable Andrew
M. Cuomo.
I am a cosponsor of separate legislation to reform HUD's multifamily
housing inventory, the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (S. 513). While the Senate and the
administration bills share the same objectives, some policy differences
exist. Specifically, each bill takes a significantly different approach
to the following key issues: project-basing versus tenant-basing; tax
implications of debt restructuring; and use of third parties to
administer the restructuring program.
I look forward to working with my colleagues in the Senate and
Secretary Cuomo to resolve HUD's multifamily housing crisis as
expeditiously as possible.
______
By Mr. GREGG (for himself, Mr. Ford, Mr. Graham, and Mr. Hagel):
[[Page S5418]]
S. 854. A bill to amend the Internal Revenue Code of 1986 to provide
a reduction in the capital gains tax for assets held more than 2 years,
and for other purposes; to the Committee on Finance.
The Long-Term Investment Act of 1997
Mr. GREGG. Mr. President, I introduce, with Senators Ford, Hagel, and
Graham a sliding-scale capital gains proposal, the Long-Term Investment
Act of 1997. Given the sobering demographics associated with the
impending aging of the baby-boom generation, it is more important than
ever that laws enacted by Congress promote long-term capital investment
and savings by all Americans.
Central to this objective is a reduction in the current capital gains
tax rate on long-term investments. A capital gains reduction was agreed
to in principle in the budget agreement. We have a proposal that we
believe embodies a fundamental change in tax policy at less cost. Over
the next 10 years, S. 2 will cost $129 billion, while Gregg/Ford will
cost $45 billion.
We have developed a plan that would encourage long-term investments
through a sliding-scale capital gains rate reduction. The plan would
encourage individuals to hold assets over a number of years, allowing
no reduction in the current rate on assets held for less than 1 year,
with increasingly larger deductions to a maximum 50 percent reduction
for investments held more than 8 years.
This sliding-scale plan encourages investments that will benefit
long-term savings and capital--such as providing for a child's
education or retirement income. The bill also rewards the small
business owner and entrepreneurs as it will allow for a significant
reduction in capital gains taxation that benefits those individuals who
invest in the economy through the creation of small businesses and
jobs. By rewarding long-term investment in businesses and job creation
and discouraging the quick fix that so often is associated with
speculation on Wall Street, we will be placing our Tax Code and job
base on a more solid ground.
The Gregg/Ford sliding-scale reduction on capital gains taxation
hinges on balancing two important goals--the promotion of savings and
long-term investment through a significant capital gains cut, while
also recognizing our current fiscal restraints.
The recent budget agreement reached between the President and
Congress calls for a net tax cut of $85 billion and a gross tax cut of
$135 billion over 5 years. The details of how this tax package should
be put together will be worked out by the appropriate committees in the
House of Representatives and the Senate.
The Clinton administration has indicated that it is for a capital
gains rate reduction, but not in favor of a rate that dips below 20
percent. I believe that this bill is a consensus building bill that
both sides can and will agree upon in the not-too-distant future.
I ask unanimous consent that the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 854
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) Short Title.--This Act may be cited as the ``Long-Term
Investment Incentive Act of 1997''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
SEC. 2. REDUCTION OF TAX ON LONG-TERM CAPITAL GAINS ON ASSETS
HELD MORE THAN 2 YEARS.
(a) In General.--Part I of subchapter P of chapter 1
(relating to treatment of capital gains) is amended by
redesignating section 1202 as section 1203 and by inserting
after section 1201 the following new section:
``SEC. 1202. CAPITAL GAINS DEDUCTION FOR ASSETS HELD BY
NONCORPORATE TAXPAYERS MORE THAN 2 YEARS.
``(a) General Rule.--If a taxpayer other than a corporation
has a net capital gain for any taxable year, there shall be
allowed as a deduction an amount equal to the sum of the
applicable percentages of the classes of net capital gain
described in the table under subsection (b).
``(b) Applicable Percentage.--For purposes of this
subsection, the applicable percentage shall be the percentage
determined in accordance with the following table:
The applicable
``Ipercentage is:
2-year gain..............................................7.145
3-year gain............................................ 14.29
4-year gain..............................................21.45
5-year gain..............................................28.57
6-year gain..............................................35.71
7-year gain..............................................42.86
8-year gain..............................................50.00.
``(c) Gain to Which Deduction Applies.--For purposes of
this section--
``(1) 2-year gain.--The term `2-year gain' means the lesser
of--
``(A) the net capital gain for the taxable year, or
``(B) the amount of long-term capital gain which would be
computed for the taxable year if only gain from the sale or
exchange of property held by the taxpayer for more than 2
years but not more than 3 years were taken into account.
``(2) 3-year gain, etc.--The terms `3-, 4-, 5-, 6-, or 7-
year gain' mean the amounts determined under paragraph (1)--
``(A) by reducing the amount of the net capital gain under
subparagraph (A) thereof by an amount equal to the long-term
capital gain from the sale or exchange of property with a
holding period less than the minimum holding period for any
such category, and
``(B) by substituting 3, 4, 5, 6, or 7 years for 2 years
and 4, 5, 6, 7, or 8 years for 3 years, respectively, in
subparagraph (B) thereof.
``(3) 8-year gain.--The term `8-year gain' means the lesser
of--
``(A) the net capital gain for the taxable year, reduced by
in the same manner as under paragraph (2)(A), or
``(B) the amount of the long-term capital gain which would
be computed for the taxable year if only gain from the sale
or exchange of property held by the taxpayer for more than 8
years were taken into account.
``(d) Estates and Trusts.--In the case of an estate or
trust, the deduction under subsection (a) shall be computed
by excluding the portion (if any) of the gains for the
taxable year from sales or exchanges of capital assets which,
under sections 652 and 662 (relating to inclusions of amounts
in gross income of beneficiaries of trusts), is includible by
the income beneficiaries as gain derived from the sale or
exchange of capital assets.
``(e) Coordination With Treatment of Capital Gain Under
Limitation on Investment Interest.--For purposes of this
section, the net capital gain for any taxable year shall be
reduced (but not below zero) by the amount which the taxpayer
takes into account as investment income under section
163(d)(4)(B)(iii).
``(f) Treatment of Collectibles.--
``(1) In general.--Solely for purposes of this section, any
gain or loss from the sale or exchange of a collectible shall
be treated as a short-term capital gain or loss (as the case
may be), without regard to the period such asset was held.
The preceding sentence shall apply only to the extent the
gain or loss is taken into account in computing taxable
income.
``(2) Treatment of certain sales of interest in
partnership, etc.--For purposes of paragraph (1), any gain
from the sale or exchange of an interest in a partnership, S
corporation, or trust which is attributable to unrealized
appreciation in the value of collectibles held by such entity
shall be treated as gain from the sale or exchange of a
collectible. Rules similar to the rules of section 751(f)
shall apply for purposes of the preceding sentence.
``(3) Collectible.--For purposes of this subsection, the
term `collectible' means any capital asset which is a
collectible (as defined in section 408(m) without regard to
paragraph (3) thereof).
``(g) Transitional Rule.--
``(1) In general.--Gain may be taken into account under
subsection (c) only if such gain is properly taken into
account on or after May 7, 1997.
``(2) Special rules for pass-thru entities.--
``(A) In general.--In applying paragraph (1) with respect
to any pass-thru entity, the determination of when gains and
losses are properly taken into account shall be made at the
entity level.
``(B) Pass-thru entity defined.--For purposes of
subparagraph (A), the term `pass-thru entity' means--
``(i) a regulated investment company,
``(ii) a real estate investment trust,
``(iii) an S corporation,
``(iv) a partnership,
``(v) an estate or trust, and
``(vi) a common trust fund.''
(b) Deduction Allowable in Computing Adjusted Gross
Income.--Subsection (a) of section 62 is amended by inserting
after paragraph (16) the following new paragraph:
``(17) Long-term capital gains.--The deduction allowed by
section 1202.''
(c) Maximum Capital Gains Rate.--Section 1(h) is amended by
adding at the end the following new sentence: ``For purposes
of this subsection, taxable income shall be computed without
regard to the deduction allowed under section 1202.''
(d) Treatment of Certain Pass-Thru Entities.--
(1) Capital gain dividends of regulated investment
companies.--
(A) Subparagraph (B) of section 852(b)(3) is amended to
read as follows:
``(B) Treatment of capital gain dividends by
shareholders.--A capital gain dividend shall be treated by
the shareholders as gain from the sale or exchange of a
capital asset held for more than 1 year but not more than
[[Page S5419]]
2 years; except that the portion of any such dividend
designated by the company as allocable to 2-, 3-, 4-, 5-, 6-,
7-, or 8-year gain of the company shall be treated as gain
from the sale or exchange of a capital asset held for the
amount of years in such class for purposes of section 1202.
Rules similar to the rules of subparagraph (C) shall apply to
any designation under the preceding sentence.''
(B) Clause (i) of section 852(b)(3)(D) is amended by adding
at the end the following new sentence: ``Rules similar to the
rules of subparagraph (B) shall apply in determining
character of the amount to be so included by any such
shareholder.''
(2) Capital gain dividends of real estate investment
trusts.--Subparagraph (B) of section 857(b)(3) is amended to
read as follows:
``(B) Treatment of capital gain dividends by
shareholders.--A capital gain dividend shall be treated by
the shareholders or holders of beneficial interests as gain
from the sale or exchange of a capital asset held for more
than 1 year but not more than 2 years; except that the
portion of any such dividend designated by the company as
allocable to 2-, 3-, 4-, 5-, 6-, 7-, or 8-year gain of the
company shall be treated as gain from the sale or exchange of
a capital asset held for the amount of years in such class
for purposes of section 1202. Rules similar to the rules of
subparagraph (C) shall apply to any designation under the
preceding sentence.''
(3) Common trust funds.--Subsection (c) of section 584 is
amended--
(A) by inserting ``and not more than 2 years'' after ``1
year'' each place it appears in paragraph (2),
(B) by striking ``and'' at the end of paragraph (2), and
(C) by redesignating paragraph (3) as paragraph (4) and
inserting after paragraph (2) the following new paragraph:
``(3) as part of its gains from sales or exchanges of
capital assets held for periods described in the classes of
gains under section 1202(c), its proportionate share of the
gains of the common trust fund from sales or exchanges of
capital assets held for such periods, and''.
(e) Technical and Conforming Changes.--
(1) Subparagraph (B) of section 170(e)(1) is amended by
inserting ``(or, in the case of a taxpayer other than a
corporation, the percentage of such gain equal to 100 percent
minus the percentage applicable to such gain under section
1202(a))'' after ``the amount of gain''.
(2) Subparagraph (B) of section 172(d)(2) is amended to
read as follows:
``(B) the deduction under section 1202 and the exclusion
under section 1203 shall not be allowed.''
(3)(A) Section 221 (relating to cross reference) is amended
to read as follows:
``SEC. 221. CROSS REFERENCES.
``(1) For deduction for net capital gains in the case of a
taxpayer other than a corporation, see section 1202.
``(2) For deductions in respect of a decedent, see section
691.''
(B) The table of sections for part VII of subchapter B of
chapter 1 is amended by striking ``reference'' in the item
relating to section 221 and inserting ``references''.
(4) The last sentence of section 453A(c)(3) is amended by
striking all that follows ``long-term capital gain,'' and
inserting ``the maximum rate on net capital gain under
section 1(h) or 1201 or the deduction under section 1202
(whichever is appropriate) shall be taken into account.''
(5) Paragraph (4) of section 642(c) is amended to read as
follows:
``(4) Adjustments.--To the extent that the amount otherwise
allowable as a deduction under this subsection consists of
gain from the sale or exchange of capital assets held for
more than 1 year, proper adjustment shall be made for any
deduction allowable to the estate or trust under section 1202
or any exclusion allowable to the estate or trust under
section 1203(a). In the case of a trust, the deduction
allowed by this subsection shall be subject to section 681
(relating to unrelated business income).''
(6) The last sentence of paragraph (3) of section 643(a) is
amended to read as follows: ``The deduction under section
1202 and the exclusion under section 1203 shall not be taken
into account.''
(7) Subparagraph (C) of section 643(a)(6) is amended by
inserting ``(i)'' before ``there shall'' and by inserting
before the period ``, and (ii) the deduction under section
1202 (relating to capital gains deduction) shall not be taken
into account''.
(8) Paragraph (4) of section 691(c) is amended by striking
``sections 1(h), 1201, and 1211'' and inserting ``sections
1(h), 1201, 1202, and 1211''.
(9) The second sentence of section 871(a)(2) is amended by
inserting ``or 1203'' after ``1202''.
(10) Subsection (d) of section 1044 is amended by striking
``1202'' and inserting ``1203''.
(11) Paragraph (1) of section 1402(i) is amended by
inserting ``, and the deduction provided by section 1202
shall not apply'' before the period at the end thereof.
(f) Clerical Amendment.--The table of sections for part I
of subchapter P of chapter 1 is amended by inserting after
the item relating to section 1201 the following new item:
``Sec. 1202. Capital gains deduction for assets held by noncorporate
taxpayers more than 2 years.''
(g) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years ending on and after May 7, 1997.
(2) Contributions.--The amendment made by subsection (e)(1)
shall apply to contributions on or after May 7, 1997.
Mr. FORD. Madam President, we are all familiar with the parameters of
the upcoming tax debate. The budget deal provides for $85 billion in
net tax cuts over 5 years, and $250 billion in net tax cuts over 10
years.
Within those dollar limits, there's a strong desire to provide tax
cuts in four areas: first, capital gains relief, second, estate tax
relief, third, a $500-per-child tax credit, and fourth, education tax
initiatives. But if you add up all the current proposals in each of
these areas, you go way over the $250 billion mark set by the budget
deal. Cheaper alternatives must be found.
I have had an interest for several years in providing capital gains
relief for family farmers and small family businesses where the parents
wish to pass along to their children the operation of the farm or the
business.
Earlier this year, Senator Gregg and I each introduced capital gains
tax reduction legislation which was based on a similar objective: The
longer you have held an asset, the lower your capital gains rate will
be. We call this the sliding scale capital gains tax reduction. Since
then, we have gotten together, and produced a product which we believe
combines the vest features of both of our bills. And we're introducing
that legislation today.
The Ford-Gregg approach is a bipartisan compromise that will allow
the tax cut package to move forward consistent with the budget deal.
The Ford-Gregg bill achieves the following objectives shared by all
capital gains cut advocates:
First, it cuts the capital gains rate in half for individuals;
second, it does not discriminate among types of assets; and third, it
keeps things relatively simple.
In addition, the Ford-Gregg bill meets the following additional
objectives:
First, it costs less than half as much as the major capital gains
proposals; second, it rewards long-term investment over short-term
speculation; and third, it's bipartisan.
Remember, the budget agreement calls for $250 billion in net tax cuts
over 10 years. According to the Joint Tax Committee, the major capital
gains proposal pending in the Senate (S. 2) would cost $129 billion
over 10 years--eating up more than one-half of the net tax cut amount.
On the other hand, the Joint Tax Committee estimates that the Ford-
Gregg sliding scale proposal would cost only $45.2 billion over 10
years.
This is a better approach. It is a bipartisan approach. It's better
public policy because it rewards long-term investment. It costs less
than half as much. And it will make life a whole lot easier for the tax
writing committees in the weeks ahead. And that is the message we will
be delivering as the final tax package is being written.
____
By Mr. FAIRCLOTH (for himself, Mr. Hagel, Mr. Shelby, and Mr.
Hutchinson):
S. 855. A bill to provide for greater responsiveness by Federal
agencies in contracts with the public, and for other purposes; to the
Committee on Governmental Affairs.
the Responsive Government Act
Mr. FAIRCLOTH. Mr. President, I rise to introduce the Responsive
Government Act, and I am joined by the junior Senator from Nebraska,
the senior Senator from Alabama, and the junior Senator from Arkansas.
The Responsive Government Act proposes six simple, but important,
reforms to make the Federal work force more responsive to the American
people and their concerns.
First, the Responsive Government Act will require all Federal
agencies to include the telephone number of the writer on all official
correspondence.
Too often, people receive letters from Federal agencies that have a
return address, but no telephone number. In today's busy world, not
everyone has time to write a letter to respond to the reams of mail
from Federal bureaucrats.
Mr. President, there are few businesses that would send out a letter
without a telephone number, and the Government should not be
unaccountable to its customers.
[[Page S5420]]
The act also requires Federal offices to provide a person--not an
automated computer system--to answer the main telephone number at
service-oriented offices.
The Federal Government is here to serve the taxpayers. These Federal
agencies should not greet taxpayers with a voice-mail system to screen
their calls.
Mr. President, the taxpayers are entitled to a voice on the other end
of the line to assist them, not a machine that tells them to leave a
message.
The Responsive Government Act also requires Federal agencies to
answer the telephones until 5 p.m. Too often, Mr. President, I hear
constituents tell me that they just can't get Federal agencies to pick
up the phone after 4. This just is not right. The Federal Government is
too large, and, unfortunately, that means that citizens are forced into
frequent contacts with Federal agencies. It should not be impossible to
get in touch with Federal employees.
It should be as easy to get in touch with them as with businesses.
The Act also requires Federal agencies to publish their principal
telephone numbers in the local directories.
Of course, the blue pages list many Federal agencies, but not all of
them. This is an important distinction. We need complete disclosure,
Mr. President, and all agencies need to publish their numbers for the
benefit of the public.
These agencies also need to attempt to locate service-oriented
offices in areas with sufficient parking.
Too often, new agency offices are located in areas with limited
public parking. There is often room for employee parking, but not for
the public, and that cannot continue.
Finally, Mr. President, the Responsive Government Act requires all
Federal agencies to remove computer games from all Federal Government
computers.
These computers are for work, not fun, and the taxpayers are footing
the bill for fun on the job.
The Federal Government spent close to $20 billion last year on
computer equipment and support services. These systems increase
productivity in most cases.
However, many of these computers are delivered already equipped with
game programs, which reduce workers' efficiency and productivity.
This legislation will prohibit the Federal Government from purchasing
computers with preloaded game programs.
These games, of course, decrease the productivity of Federal
employees.
In fact, a private-sector survey found that workers spent an average
of 5.1 hours per week playing games and other non-job-related tasks on
their computers. This translates into an annual $10 billion loss in
productivity.
Clearly, then, these games do not go unused.
In fact, many of these games now come equipped with a boss key.
This device lets the worker strike a single keystroke and transform
the computer screen from the game to a false spreadsheet. The sole
purpose of this device is to hide unproductive behavior from
supervisors.
Mr. President, there is no reason for the Federal Government to buy
computers with programs designed to divert employees' attention from
their jobs.
This is a commonsense reform.
Governor George Allen of Virginia and former Labor Secretary Robert
Reich ordered workers to delete these game programs. I commend them for
their actions.
I ran for the Senate in 1992 because I wanted to bring some common
sense--and private-sector experience--to Washington.
I want to see a Federal Government that is responsive to the
citizens. This bill addresses practices that would ruin private-sector
businesses.
There is no reason that Government should be less accountable to its
customers.
Mr. HAGEL. Mr. President, I rise today in support of the Responsive
Government Act. I am proud to be the principal cosponsor of this
legislation, and I commend my colleague from North Carolina, Senator
Faircloth, for his leadership in introducing this bill.
This bill would make Government agencies more responsive to the
people who use their services. It is a narrow and targeted approach
that addresses several of the most common complaints that Americans
have about the service they receive from Government agencies.
This bill would make the Federal Government more user-friendly by
requiring all Federal agencies to:
Include the telephone number of the author on all official
correspondence so citizens know whom to contact and how to reach that
person if there are questions;
Provide a person, not an automated system, to answer the main
telephone number at service-oriented Federal agencies so citizens do
not have to talk to a machine;
Ensure that telephones are answered until 5 p.m. so citizens can get
assistance by phone during normal business hours;
Publish principal telephone numbers in the local directories so
citizens can readily find how to reach the agency;
Attempt to locate service-oriented offices in areas with sufficient
parking so citizens can come and go easily when doing business; and
Remove computer games from all Federal Government computers so
Federal employees are not distracted from their jobs.
Mr. President, I ran for the U.S. Senate because I believe we need
less Government. I also believe that we must make our Government better
and more efficient. Federal agencies must always--always--be as user-
friendly as possible for our citizens. Government agencies must always
treat taxpayers with courtesy and respect.
This bill is a small but important step toward creating a service-
oriented climate in the Federal Government. Americans deserve no less.
I urge my colleagues to support this legislation.
______
By Mr. ROBB:
S. 856. A bill to provide for the adjudication and payment of certain
claims against the Government of Iraq; to the Committee on Foreign
Relations.
THE IRAQI CLAIMS ACT OF 1997
Mr. ROBB. Mr. President, nearly 7 years ago President Bush invoked
emergency economic sanctions against Iraq for its invasion of Kuwait.
Freezing Iraqi financial assets made sense at the time because it
prevented Saddam Hussein from funding his war campaign. Now, we need to
take steps to unwind the sanctions regime to permit payment to United
States businesses who sold products to Iraq but have never been paid.
Four years ago this month I introduced legislation--S. 1119, the
Secured Payment Act of 1993--with 13 bipartisan cosponsors achieving
that purpose. The bill clarified that certain moneys on deposit in
United States banks belong to United States companies, not Iraq, and
therefore should not be subject to the Iraqi assets freeze. Amendment
language similar to S. 1119 was appended to the last State Department
Authorization bill following a rollcall vote in the Foreign Relations
Committee and approved by the full Senate. Unfortunately, the language
was dropped in conference, leaving this matter unresolved.
The legislation I am introducing today represents a compromise on
creating a settlement process for private preinvasion claims. The Iraq
Claims Act of 1997 I believe takes a progressive step forward in
disseminating the $1.2 billion in frozen assets.
First, it vests currently blocked assets in the President. Second, an
Iraq Claims Fund will be created by the Treasury Department where those
assets will be deposited. Third, within 2 years of enactment of the
legislation, payment on private claims--certified by the Foreign Claims
Settlement Commission--will be made out of the fund. Fourth, after
payment has been made in full on all private claims, any funds
remaining shall be made available to satisfy claims of the U.S.
Government.
Mr. President, although much of the debate over my previous
legislation concerned the minutiae of letter of credit law,
international business transactions, and economic emergency powers, the
Iraq Claims Act of 1997 lays aside those issues and establishes an
equitable procedure for considering claims on a prioritized basis.
While I understand that the administration is working on a proposal for
similar legislation on Iraq claims, I would encourage the State and
Treasury Departments to reevaluate their concerns
[[Page S5421]]
about the approach I am proposing. I would submit that this legislation
is the most suitable, and politically viable, compromise available to
come to closure on this issue.
Mr. President, these frozen assets were blocked to prevent Iraq from
using the funds to support its aggression against Kuwait and its
allies. That freeze--designed to hurt Iraq--is now hurting American
companies. Some of those firms were a mere electronic transfer, a
keystroke on a computer, away from receiving their payments when the
emergency freeze was imposed. After 7 years, it is time to act
expeditiously in their favor.
______
By Mr. SHELBY:
S. 858. An original bill to authorize appropriations for fiscal year
1998 for intelligence and intelligence-related activities of the United
States Government, and Community Management Account, and the Central
Intelligence Agency Retirement and Disability System, and for other
purposes; from the Select Committee on Intelligence; placed on the
calendar.
the intelligence authorization act for fiscal year 1998
Mr. SHELBY. 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. 858
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the
``Intelligence Authorization Act for Fiscal Year 1998''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--INTELLIGENCE ACTIVITIES
Sec. 101. Authorization of appropriations.
Sec. 102. Classified schedule of authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Community Management Account.
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
Sec. 201. Authorization of appropriations.
TITLE III--GENERAL PROVISIONS
Sec. 301. Increase in employee compensation and benefits authorized by
law.
Sec. 302. Restriction on conduct of intelligence activities.
Sec. 303. Detail of intelligence community personnel.
Sec. 304. Extension of application of sanctions laws to intelligence
activities.
Sec. 305. Administrative location of the Office of the Director of
Central Intelligence.
Sec. 306. Encouragement of disclosure of certain information to
Congress.
Sec. 307. Provision of information on violent crimes against United
States citizens abroad to victims and victims' families.
Sec. 308. Standards for spelling of foreign names and places and for
use of geographic coordinates.
TITLE IV--CENTRAL INTELLIGENCE AGENCY
Sec. 401. Multiyear leasing authority.
Sec. 402. Subpoena authority for the Inspector General of the Central
Intelligence Agency.
TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES
Sec. 501. Academic degrees in intelligence.
Sec. 502. Funding for infrastructure and quality of life improvements
at Menwith Hill and Bad Aibling stations.
Sec. 503. Misuse of National Reconnaissance Office name, initials, or
seal.
TITLE I--INTELLIGENCE ACTIVITIES
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for fiscal
year 1998 for the conduct of the intelligence and
intelligence-related activities of the following elements of
the United States Government:
(1) The Central Intelligence Agency.
(2) The Department of Defense.
(3) The Defense Intelligence Agency.
(4) The National Security Agency.
(5) The Department of the Army, the Department of the Navy,
and the Department of the Air Force.
(6) The Department of State.
(7) The Department of the Treasury.
(8) The Department of Energy.
(9) The Federal Bureau of Investigation.
(10) The Drug Enforcement Administration.
(11) The National Reconnaissance Office.
(12) The National Imagery and Mapping Agency.
SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.
(a) Specifications of Amounts and Personnel Ceilings.--The
amounts authorized to be appropriated under section 101, and
the authorized personnel ceilings as of September 30, 1998,
for the conduct of the intelligence and intelligence-related
activities of the elements listed in such section, are those
specified in the classified Schedule of Authorizations
prepared to accompany the conference report on the bill ____
of the One Hundred Fifth Congress.
(b) Availability of Classified Schedule of
Authorizations.--The Schedule of Authorizations shall be made
available to the Committees on Appropriations of the Senate
and House of Representatives and to the President. The
President shall provide for suitable distribution of the
Schedule, or of appropriate portions of the Schedule, within
the Executive Branch.
SEC. 103. PERSONNEL CEILING ADJUSTMENTS.
(a) Authority for Adjustments.--With the approval of the
Director of the Office of Management and Budget, the Director
of Central Intelligence may authorize employment of civilian
personnel in excess of the number authorized for fiscal year
1998 under section 102 when the Director of Central
Intelligence determines that such action is necessary to the
performance of important intelligence functions, except that
the number of personnel employed in excess of the number
authorized under such section may not, for any element of the
intelligence community, exceed two percent of the number of
civilian personnel authorized under such section for such
element.
(b) Notice to Intelligence Committees.--The Director of
Central Intelligence shall promptly notify the Permanent
Select Committee on Intelligence of the House of
Representatives and the Select Committee on Intelligence of
the Senate whenever the Director exercises the authority
granted by this section.
SEC. 104. COMMUNITY MANAGEMENT ACCOUNT.
(a) Authorization of Appropriations.--
(1) Authorization.--There is authorized to be appropriated
for the Community Management Account of the Director of
Central Intelligence for fiscal year 1998 the sum of
$90,580,000.
(2) Availability of certain funds.--Within such amount,
funds identified in the classified Schedule of Authorizations
referred to in section 102(a) for the Advanced Research and
Development Committee and the Environmental Intelligence and
Applications Program shall remain available until September
30, 1999.
(b) Authorized Personnel Levels.--The elements within the
Community Management Account of the Director of Central
Intelligence are authorized a total of 278 full-time
personnel as of September 30, 1998. Personnel serving in such
elements may be permanent employees of the Community
Management Account element or personnel detailed from other
elements of the United States Government.
(c) Classified Authorizations.--
(1) Authorization of appropriations.--In addition to
amounts authorized to be appropriated for the Community
Management Account by subsection (a), there is also
authorized to be appropriated for the Community Management
Account for fiscal year 1998 such additional amounts as are
specified in the classified Schedule of Authorizations
referred to in section 102(a).
(2) Authorization of personnel.--In addition to the
personnel authorized by subsection (b) for elements of the
Community Management Account as of September 30, 1998, there
is hereby authorized such additional personnel for such
elements as of that date as is specified in the classified
Schedule of Authorizations.
(3) Construction.--Authorizations in the classified
Schedule of Authorizations may not be construed to increase
authorizations of appropriations or personnel for the
Community Management Account except to the extent specified
in the applicable paragraph of this subsection.
(d) Reimbursement.--During fiscal year 1998, any officer or
employee of the United States or member of the Armed Forces
who is detailed to the staff of an element within the
Community Management Account from another element of the
United States Government shall be detailed on a reimbursable
basis, except that any such officer, employee, or member may
be detailed on a non-reimbursable basis for a period of less
than one year for the performance of temporary functions as
required by the Director of Central Intelligence.
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated for the Central
Intelligence Agency Retirement and Disability Fund for fiscal
year 1998 the sum of $196,900,000.
TITLE III--GENERAL PROVISIONS
SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS
AUTHORIZED BY LAW.
Appropriations authorized by this Act for salary, pay,
retirement, and other benefits for Federal employees may be
increased by such additional or supplemental amounts as may
be necessary for increases in such compensation or benefits
authorized by law.
SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.
The authorization of appropriations by this Act shall not
be deemed to constitute authority for the conduct of any
intelligence activity which is not otherwise authorized by
the Constitution or the laws of the United States.
[[Page S5422]]
SEC. 303. DETAIL OF INTELLIGENCE COMMUNITY PERSONNEL.
(a) Detail.--
(1) In general.--Notwithstanding any other provision of
law, the head of a department or agency having jurisdiction
over an element in the intelligence community or the head of
an element of the intelligence community may detail any
employee of the department, agency, or element to serve in
any position in the Intelligence Community Assignment
Program.
(2) Basis of detail.--
(A) In general.--Personnel may be detailed under paragraph
(1) on a reimbursable or nonreimbursable basis.
(B) Period of nonreimbursable detail.--Personnel detailed
on a nonreimbursable basis shall be detailed for such periods
not to exceed three years as are agreed upon between the
heads of the departments or agencies concerned. However, the
heads of the departments or agencies may provide for the
extension of a detail for not to exceed one year if the
extension is in the public interest.
(b) Benefits, Allowances, and Incentives.--The department,
agency, or element detailing personnel to the Intelligence
Community Assignment Program under subsection (a) on a non-
reimbursable basis may provide such personnel any salary,
pay, retirement, or other benefits, allowances (including
travel allowances), or incentives as are provided to other
personnel of the department, agency, or element.
(c) Effective Date.--This section shall take effect on June
1, 1997.
SEC. 304. EXTENSION OF APPLICATION OF SANCTIONS LAWS TO
INTELLIGENCE ACTIVITIES.
Section 905 of the National Security Act of 1947 (50 U.S.C.
441d) is amended by striking out ``January 6, 1998'' and
inserting in lieu thereof ``January 6, 2001''.
SEC. 305. ADMINISTRATIVE LOCATION OF THE OFFICE OF THE
DIRECTOR OF CENTRAL INTELLIGENCE.
Section 102(e) of the National Security Act of 1947 (50
U.S.C. 403(e)) is amended by adding at the end the following:
``(4) The Office of the Director of Central Intelligence
shall, for administrative purposes, be within the Central
Intelligence Agency.''.
SEC. 306. ENCOURAGEMENT OF DISCLOSURE OF CERTAIN INFORMATION
TO CONGRESS.
(a) Encouragement.--
(1) In general.--Not later than 30 days after the date of
enactment of this Act, the President shall take appropriate
actions to inform the employees of the executive branch, and
employees of contractors carrying out activities under
classified contracts, that the disclosure of information
described in paragraph (2) to the committee of Congress
having oversight responsibility for the department, agency,
or element to which such information relates, or to the
Members of Congress who represent such employees, is not
prohibited by law, executive order, or regulation or
otherwise contrary to public policy.
(2) Covered information.--Paragraph (1) applies to
information, including classified information, that an
employee reasonably believes to evidence--
(A) a violation of any law, rule, or regulation;
(B) a false statement to Congress on an issue of material
fact; or
(C) gross mismanagement, a gross waste of funds, an abuse
of authority, or a substantial and specific danger to public
health or safety.
(b) Report.--On the date that is 30 days after the date of
enactment of this Act, the President shall submit to Congress
a report on the actions taken under subsection (a).
SEC. 307. PROVISION OF INFORMATION ON VIOLENT CRIMES AGAINST
UNITED STATES CITIZENS ABROAD TO VICTIMS AND
VICTIMS' FAMILIES.
(a) Sense of Congress.--It is the sense of Congress that--
(1) it is in the national interests of the United States to
provide information regarding the murder or kidnapping of
United States citizens abroad to the victims, or the families
of victims, of such crimes; and
(2) the provision of such information is sufficiently
important that the discharge of the responsibility for
identifying and disseminating such information should be
vested in a cabinet-level officer of the United States
Government.
(b) Responsibility.--The Secretary of State shall take
appropriate actions to ensure that the United States
Government takes all appropriate actions to--
(1) identify promptly information (including classified
information) in the possession of the departments and
agencies of the United States Government regarding the murder
or kidnapping of United States citizens abroad; and
(2) subject to subsection (c), make such information
available to the victims or, where appropriate, the families
of victims of such crimes.
(c) Classified Information.--The Secretary shall work with
the Director of Central Intelligence to ensure that
classified information relevant to a crime covered by
subsection (b) is promptly reviewed and, to the maximum
extent practicable without jeopardizing sensitive sources and
methods or other vital national security interests, made
available under that subsection.
SEC. 308. STANDARDS FOR SPELLING OF FOREIGN NAMES AND PLACES
AND FOR USE OF GEOGRAPHIC COORDINATES.
(a) Survey of Current Standards.--
(1) Survey.--The Director of Central Intelligence shall
carry out a survey of current standards for the spelling of
foreign names and places, and the use of geographic
coordinates for such places, among the elements of the
intelligence community.
(2) Report.--Not later than 90 days after the date of
enactment of this Act the Director shall submit to the
congressional intelligence committees a report on the survey
carried out under paragraph (1).
(b) Guidelines.--
(1) Issuance.--Not later than 180 days after the date of
enactment of this Act, the Director shall issue guidelines to
ensure the use of uniform spelling of foreign names and
places and the uniform use of geographic coordinates for such
places. The guidelines shall apply to all intelligence
reports, intelligence products, and intelligence databases
prepared and utilized by the elements of the intelligence
community.
(2) Basis.--The guidelines under paragraph (1) shall, to
the maximum extent practicable, be based on current United
States Government standards for the transliteration of
foreign names, standards for foreign place names developed by
the Board on Geographic Names, and a standard set of
geographic coordinates.
(3) Submittal to congress.--The Director shall submit a
copy of the guidelines to the congressional intelligence
committees.
(c) Congressional Intelligence Committees Defined.--In this
section, the term ``congressional intelligence committees''
means the following:
(1) The Select Committee on Intelligence of the Senate.
(2) The Permanent Select Committee on Intelligence of the
House of Representatives.
TITLE IV--CENTRAL INTELLIGENCE AGENCY
SEC. 401. MULTIYEAR LEASING AUTHORITY.
Section 5 of the Central Intelligence Agency Act of 1949
(50 U.S.C. 403f) is amended--
(1) in paragraph (e), by striking out ``without regard''
and all that follows through the end and inserting in lieu
thereof a semicolon;
(2) by redesignating paragraph (f) as paragraph (g); and
(3) by inserting after paragraph (e) the following new
paragraph (f):
``(f) Notwithstanding section 1341(a)(1) of title 31,
United States Code, enter into multiyear leases for lease
terms of not to exceed 15 years, except that--
``(1) any such lease shall be subject to the availability
of appropriations in an amount necessary to cover--
``(A) rental payments over the entire term of the lease; or
``(B) rental payments over the first 12 months of the term
of the lease and the penalty, if any, payable in the event of
the termination of the lease at the end of the first 12
months of the term; and
``(2) if the Agency enters into a lease using the authority
in subparagraph (1)(B)--
``(A) the lease shall include a clause that provides that
the lease shall be terminated if specific appropriations
available for the rental payments are not provided in advance
of the obligation to make the rental payments;
``(B) notwithstanding section 1552 of title 31, United
States Code, amounts obligated for paying costs associated
with terminating the lease shall remain available until such
costs are paid;
``(C) amounts obligated for payment of costs associated
with terminating the lease may be used instead to make rental
payments under the lease, but only to the extent that such
amounts are not required to pay such costs; and
``(D) amounts available in a fiscal year to make rental
payments under the lease shall be available for that purpose
for not more than 12 months commencing at any time during the
fiscal year; and''.
SEC. 402. SUBPOENA AUTHORITY FOR THE INSPECTOR GENERAL OF THE
CENTRAL INTELLIGENCE AGENCY.
(a) Authority.--Subsection (e) of section 17 of the Central
Intelligence Agency Act of 1949 (50 U.S.C. 403q) is amended--
(1) by redesignating paragraphs (5) through (7) as
paragraphs (6) through (8), respectively; and
(2) by inserting after paragraph (4) the following new
paragraph (5):
``(5)(A) Except as provided in subparagraph (B), the
Inspector General is authorized to require by subpoena the
production of all information, documents, reports, answers,
records, accounts, papers, and other data and documentary
evidence necessary in the performance of the duties and
responsibilities of the Inspector General.
``(B) In the case of Government agencies, the Inspector
General shall obtain information, documents, reports,
answers, records, accounts, papers, and other data and
evidence for the purpose specified in subparagraph (A) using
procedures other than subpoenas.
``(C) The Inspector General may not issue a subpoena for or
on behalf of any other element or component of the Agency.
``(D) In the case of contumacy or refusal to obey a
subpoena issued under this paragraph, the subpoena shall be
enforceable by order of any appropriate district court of the
United States.
``(E) Not later than January 31 and July 31 of each year,
the Inspector General shall submit to the Select Committee on
Intelligence
[[Page S5423]]
of the Senate and the Permanent Select Committee on
Intelligence of the House of Representative a report of the
Inspector General's exercise of authority under this
paragraph during the preceding six months.''.
(b) Limitation on Authority for Protection of National
Security.--Subsection (b)(3) of that section is amended by
inserting ``, or from issuing any subpoena, after the
Inspector General has decided to initiate, carry out, or
complete such audit, inspection, or investigation or to issue
such subpoena,'' after ``or investigation''.
TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES
SEC. 501. ACADEMIC DEGREES IN INTELLIGENCE.
(a) In General.--Section 2161 of title 10, United States
Code, is amended to read as follows:
``Sec. 2161. Joint Military Intelligence College: master of
science in strategic intelligence; bachelor of science in
intelligence
``Under regulations prescribed by the Secretary of Defense,
the President of the Joint Military Intelligence College may,
upon recommendation by the faculty of the college, confer the
degree of master of science in strategic intelligence and the
degree of bachelor of science in intelligence upon the
graduates of the college who have fulfilled the requirements
for such degree.''.
(b) Conforming Amendment.--The item relating to section
2161 in the table of sections at the beginning of chapter 108
of such title is amended to read as follows:
``2161. Joint Military Intelligence College: master of science in
strategic intelligence; bachelor of science in
intelligence.''.
SEC. 502. FUNDING FOR INFRASTRUCTURE AND QUALITY OF LIFE
IMPROVEMENTS AT MENWITH HILL AND BAD AIBLING
STATIONS.
Section 506(b) of the Intelligence Authorization Act for
Fiscal Year 1996 (Public Law 104-93; 109 Stat. 974) is
amended by striking out ``for fiscal years 1996 and 1997''
and inserting in lieu thereof ``for fiscal years 1998 and
1999''.
SEC. 503. MISUSE OF NATIONAL RECONNAISSANCE OFFICE NAME,
INITIALS, OR SEAL.
(a) In General.--Subchapter I of chapter 21 of title 10,
United States Code, is amended by adding at the end the
following:
``Sec. 426. Unauthorized use of National Reconnaissance
Office name, initials, or seal
``(a) Prohibited Acts.--Except with the joint written
permission of the Secretary of Defense and the Director of
Central Intelligence, no person may knowingly use, in
connection with any merchandise, retail product,
impersonation, solicitation, or commercial activity, in a
manner reasonably calculated to convey the impression that
such use is approved, endorsed, or authorized by the
Secretary or the Director, any of the following:
``(1) The words `National Reconnaissance Office' or the
initials `NRO'.
``(2) The seal of the National Reconnaissance Office.
``(3) Any colorable imitation of such words, initials, or
seal.
``(b) Injunction.--(1) Whenever it appears to the Attorney
General that any person is engaged or is about to engage in
an act or practice which constitutes or will constitute
conduct prohibited by subsection (a), the Attorney General
may initiate a civil proceeding in a district court of the
United States to enjoin such act or practice.
``(2) Such court shall proceed as soon as practicable to
the hearing and determination of such action and may, at any
time before final determination, enter such restraining
orders or prohibitions, or take such other action as is
warranted, to prevent injury to the United States or to any
person or class of persons for whose protection the action is
brought.''
(b) Clerical Amendment.--The table of sections at the
beginning of that subchapter is amended by adding at the end
the following:
``426. Unauthorized use of National Reconnaissance Office name,
initials, or seal.''.
______
By Mr. KYL (for himself and Mr. Gramm):
S. 859. A bill to repeal the increase in tax on Social Security
benefits; to the Committee on Finance.
THE SENIOR CITIZENS INCOME TAX RELIEF ACT
Mr. KYL. Mr. President, I am pleased to have my colleague, Senator
Phil Gramm, join me as an original cosponsor of the Senior Citizens
Income Tax Relief Act. This legislation would give seniors relief from
the Clinton Social Security tax increase of 1993.
The recently passed Federal budget deal provides target levels for
new spending and for modest tax relief. As Congress begins to write the
bills to implement this budget blueprint, attention turns to the
details. One of them is whether there will be sufficient room for tax
relief for senior citizens.
Millions of America's senior citizens depend on Social Security as a
critical part of their retirement income. Having paid into the program
throughout their working lives, retirees count on the Government to
meet its obligations under the Social Security contract. For many, the
security provided by this supplemental pension plan is the difference
between a happy and healthy retirement and one marked by uncertainty
and apprehension, particularly for the vast majority of seniors on
fixed incomes.
As part of his massive 1993 tax hike, President Clinton imposed a tax
increase on senior citizens, subjecting to taxation up to 85 percent of
the Social Security received by seniors with annual incomes of over
$34,000 and couples with over $44,000 in annual income.
This represents a 70-percent increase in the marginal tax rate for
these seniors. Factor in the Government's Social Security earnings
limitation, and a senior's marginal tax rate can reach 88 percent--
twice the rate paid by millionaires.
An analysis of Government-provided figures on the 1993 Social
Security tax increase finds that, by next year, America's seniors will
have paid an extra $25 billion because of this tax hike, including $380
million from senior citizens in Arizona alone.
Mr. President, I want to make an additional important point. Despite
all the partisan demagoguery, the only attack on Social Security in
recent years has come from the administration and the other party in
the Omnibus Budget Reconciliation Act of 1993. Not one Republican
supported this tax increase on Social Security benefits.
At the Clinton administration's insistence, the amount of tax relief
we will be able to provide will be severely limited. It will be
difficult, then, to repeal the Social Security tax increase. This is
why I offered an amendment to ensure that we are able to expand tax
relief in the future, and why the first tax relief proposal I am
introducing will repeal President Clinton's 1993 Social Security tax
increase.
______
By Mr. HARKIN:
S. 860. A bill to protect and improve rural health care, and for
other purposes; to the Committee on Finance.
the rural health care protection and improvement act of 1997
Mr. HARKIN. Mr. President, I rise today to introduce the Rural Health
Care Protection and Improvement Act of 1997. This legislation is
critical to the survival of the fragile health care systems and
infrastructure in rural areas and small towns across America.
Rural Americans are more often poor, more often uninsured, and more
often without access to health care than other Americans. The health
care system in many small towns in Iowa is on the critical list--we
have too few doctors, nurses, and other health care professionals and
many of our rural hospitals are barely making it.
Iowa ranks first in the percentage of citizens over age 85 and third
nationally in the percentage of the population over age 65. Because of
our demographics our health care providers in Iowa depend heavily on
Medicare payments. And many of them are struggling. One reason they are
struggling is because of the gross inequities between rural and urban
Medicare payment rates. In fact, the House Ways and Means Committee
recently published a report estimating that Iowa loses $0.7 billion a
year because of current Medicare payment policies. The higher cost of
living in areas such as New York City and Miami in no way justifies the
huge disparity in payment rates. The current system rewards waste and
inefficiency and penalizes States like Iowa whose health care providers
practice a conservative, cost-effective approach to health care.
The legislation I am introducing today would correct this wrong-
headed system. This bill would make Medicare payments to managed care
plans fairer for rural areas by readjusting the AAPCC so that rates are
more equitable between rural and urban areas.
But even more importantly, this bill corrects the inequities in the
regular fee-for-service Medicare Program. AAPCC rates are unfair
because they are tied directly to Medicare fee-for-service payments,
and fee-for-service payments are very low in rural areas.
Even with a correction in managed care payments, over two-thirds of
Iowa seniors will likely continue to receive care under the standard
fee-for-service system. This bill corrects fee-for-service rates, so
that seniors in rural areas
[[Page S5424]]
will at last be able to receive the quality and access to health care
they deserve.
Mr. President, my legislation would also reauthorize and extend the
Rural Health Transition Grant Program. This grant program helps small
rural hospitals and their communities adapt to the changing health care
marketplace. Specifically, the grants help hospitals adjust to
reductions in the need for inpatient services and increased demand for
outpatient and emergency services and help rural hospitals meet the
increasingly difficult task of recruiting staff.
Rural hospitals use these funds for a variety of programs. For
example, Marengo Memorial Hospital, Mitchell County Hospital, Franklin
General in Hampton, and Kossuth County Hospital as well as other
hospitals used funds to help develop rural health care networks.
Pochahontas Community Hospital and Community Memorial Hospital in
Sumner used funds to recruit health professionals and Holy Family
Hospital in Estherville used funds to improve emergency services.
These grants are provided over 3 years. They represent a small but
vital source of revenue for hospitals struggling to adjust to a new
health care environment. Unfortunately, these grants were not
reauthorized last year, and there are many hospitals that were promised
transition grant funds but for whom the money is no longer available.
This legislation would help ensure that these few hospitals are able to
finish out their grants and meet the changing needs of their patients
and communities.
Mr. President, the health care system is undergoing tremendous change
and our rural hospitals must adjust to this new environment. The
Transition Grant Program helps hospitals modify the type and extent of
services so they can better serve rural communities.
Mr. President, the legislation I am introducing will help improve
access and enhance the quality of health care in rural areas. And it
will help shore up the fragile health care infrastructure in our rural
communities and small towns.
______
By Mr. INHOFE:
S. 861. A bill to amend the Federal Property and Administrative
Services Act of 1949 to authorize donation of Federal law enforcement
canines that are no longer needed for official purposes to individuals
with experience handling canines in the performance of law enforcement
duties; to the Committee on Governmental Affairs.
donation of law enforcement dogs to their handlers
Mr. INHOFE. Mr. President, I rise today to introduce a bill to
address the situation encountered when certain members of our Federal
law enforcement community are no longer able to perform their assigned
duties. These members of the Federal law enforcement community to which
I refer are not people, but canines.
The purpose of this legislation is simple. The bill will streamline
the regulations that govern the adoption of Federal law enforcement
canines by their handlers. Currently, these animals are considered
Federal property and when their tenure of service has ended, they are
considered surplus Government property. Under current Federal
regulations, Government agencies are forced to comply with procedures
to ensure maximum return for the Government's investment in the animal
at auction.
These animals have received special security training to best equip
them for the demands of their duties. Because of the hazards associated
with their duties, this specialized training often makes these animals
unsuitable as pets for those not trained to handle these animals.
Because of the highly specialized training these animals receive,
they should not be simply auctioned to the highest bidder. Currently,
if no trained handler comes forward and offers the highest bid for the
animal, the possibility exists that it will spend the rest of its life
caged, or even worse, destroyed.
Under this legislation, the eligible animals would be donated to
their handlers, who would then assume all costs and responsibilities
associated to the care of that animal. This practice is commonplace for
local law enforcement agencies nationwide.
This is not a drastic departure from previous Government procedure.
In 1993, the General Services Administration granted a waiver for
Border Patrol canine handlers to purchase their partners for a nominal
fee. Unfortunately, this waiver has expired and has not been renewed.
Mr. President, this is a commonsense solution to a very simple
problem. I urge my colleagues to support this bill and ease the
restrictions concerning the adoption of Federal law enforcement
canines.
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