[Congressional Record Volume 144, Number 47 (Friday, April 24, 1998)]
[Senate]
[Pages S3585-S3592]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. GRAMS:
S. 1982. A bill to equalize the minimum adjustments to prices for
fluid milk under milk marketing orders; to the Committee on
Agriculture, Nutrition, and Forestry.
THE DAIRY REFORM ACT OF 1998
Mr. GRAMS. Mr. President, I rise today to introduce legislation that
seeks to restore fairness to the nation's dairy system--fairness that
has long been missing, particularly in the Upper Midwest and especially
in my home state of Minnesota.
When Minnesotans are asked to name my state's leading industries,
agriculture will certainly be at or near the top of most every list.
Farming and farm-related business plays a critical role in Minnesota's
economy. One out of every four Minnesota jobs is tied in some way to
agriculture, and 25% of the state's economy is dependent upon farmers
and agri-business, most of it focused in the dairy industry.
What many people do not realize is that, despite those statistics,
our state's dairy industry is in real trouble.
Since dropping to number five in milk production--behind Wisconsin,
California, Pennsylvania, and New York--Minnesota has been slowly but
steadily losing its clout among the top dairy states in the nation. We
have lost over 10,000 dairy farms in just the last decade, and today,
dairy farms are drying up at a rate of about three every single day.
Milk production has dropped significantly as a result--nearly 20% in
the last decade.
What makes this especially troubling is that much of the decline in
Minnesota's dairy industry can be traced
[[Page S3586]]
directly to farm policies mandated outside of Minnesota's control, in
Washington. And the outdated federal milk marketing orders program is a
serious part of our dairy problems.
The Midwest is one of the best places in the country for dairy. It
should be growing and expanding in the Midwest, but because of the
Government's outdated policies and programs, it is hurting and killing
the dairy industry in the Midwest.
The milk marketing orders is yet another example of a well-
intentioned scheme dreamed up by Washington bureaucrats that has gone
seriously awry. Instead of helping Minnesotans, the milk orders
actually hurt the state's economy and penalizing its taxpayers, while
benefiting dairy farmers outside the Midwest.
The problem can be traced back to 1937, when Congress enacted the
``Agricultural Marketing Agreement Act.'' The legislation was created
to encourage the milk production near the nation's major population
centers and set a minimum price paid to dairy farmers for Class I milk.
That federal ``nudge'' was necessary in some instances, because without
refrigerated trucks, fluid milk could not be transported over long
distances.
In 1985, as part of that year's farm bill, Congress expanded the milk
orders program to aid the dairy industry outside the Midwest by
increasing the minimum price for Class I milk based on a ridiculous
formula.
This basically helps producers outside the Upper Midwest, while
making dairy production less profitable for producers inside the Upper
Midwest region.
That is not because of anything that the farmers are doing, their
productivity, the land, the climate, whatever. The only reason for the
decline, again, is because of an outdated Federal dairy policy.
This process is unfair and archaic. Above all, it is opposite in
every way to the free market.
The Upper Midwest dairy industry, one of the most efficient in the
world, is only asking for a fair shake in this process. And so, Mr.
President, the legislation I introduce today will amend one of the most
inequitable components of the Agricultural Marketing Act of 1937--the
Class I milk price differentials.
USDA is currently in the process of reforming its system of Federal
Milk Marketing Orders. Unfortunately, the Class I differentials
proposal released earlier this year was disappointing. Two options have
been offered under the proposal. Option ``1A''--the status quo option--
is plainly unacceptable. Option ``1B'' does take a small step in the
right direction, but it does not go far enough. However, a small step
for reform is most certainly preferable to a step backward as ``1A''
would do.
As short-term progress, I support Option ``1B'' because, as I have
said, it is the only option USDA is currently considering that makes a
move toward fairness in federal dairy policy. My bill would continue
the reform beyond the small gains for equity that ``1B'' establishes.
We cannot allow ourselves to become satisfied until we secure
substantive federal dairy reform.
Common sense would tell us that USDA's proposal of a small step
toward market-policy is the compromise position for dairy reform.
However, as you can imagine, there has been the typical, standard-fare
outcry against any sort of reform--even the minimal reform that was
offered in the form of Option ``1B.'' And surely that is little more
than an acknowledgment on the part of USDA that equity and fairness
really do matter in national dairy policy.
USDA has explicitly expressed its preference for ``1B.'' However, my
optimism is guarded, given the fact that ``the status quo option'' is
being seriously considered as a measure of reform.
It is all too likely that they may move us a step backward and call
it reform. There is every reason to believe that USDA will succumb to
the pressure of maintaining the unjustifiable status quo.
So many constituencies have been built up around this antiquated
dairy pricing policy, and now to try to put any fairness into the
system we are going to have these outcries from across the country.
So, in addition to the objective of shaping the policy debate beyond
short-term fixes, I believe that we in the Upper Midwest must now
proceed with progressive dairy reform in the event we once again, find
ourselves standing alone in the name of justifiable, equitable, dairy
policy.
The Dairy Reform Act of 1998 establishes a uniform Class I price
differential of $1.80 for each marketing area subject to an order. The
newly proposed 11 Federal Milk Marketing Orders will remain in place to
provide necessary over order premiums that would raise the $1.80 in
some areas. This legislation directs us toward market-oriented reform
because it removes the arbitrary, artificial price structure and its
resulting interference with the market itself.
As far as dairy policy is concerned, we're at a pivotal juncture. The
groundwork is being laid for a national patchwork of regional compacts.
Roughly half the country has either passed enabling compact
legislation, is debating such legislation, or is involved in the
Northeast Interstate Dairy Compact. We must either decide to support a
national system, or regionalize. As I've said, USDA's Option ``1B'' is
a small step in the right direction for dairy policy. The Dairy Reform
Act brings us closer yet to substantive reform. The compact
alternative, on the other hand, is not reform--it is retreat. It is
anti-market and anti-consumer, by definition.
There is no substantive, equity-based justification to support random
Class I differentials. In fact, USDA's current federal marketing order
system was deemed ``arbitrary and capricious'' by a Federal district
court judge late last year.
That is the fourth time that the courts have come out and said that
the current dairy policies in this country are, again, arbitrary and
capricious. So, bottom line, it means they are unfair, they are
antimarket, they are anticonsumer.
So, the case brought against USDA has been in the courts for 7 years,
and the judge's ruling was no less than the fourth such proceeding in
the history of the case. Given the outrageously drawn-out history of
the case, the judge decided not to grant USDA's request to justify the
pricing scheme.
However, the ruling has been stayed now pending the appeal of the
decision of the eighth circuit. After the courts have been cleared on
the marketing order system, why is the USDA appealing? Why are they
appealing to keep in place a system that the courts have ruled four
times is basically unfair? Why don't they focus their efforts on
changing the system, as the court has required, but, most important,
changing the system to make sure that it is fair, that it does not
discriminate against one part of the country over another, that it does
not pick winners and losers, and it does not step on the necks of
farmers in the Midwest?
Under the current Federal order marketing system, the Government is
picking winners and picking losers. This system of nonuniform
differentials is inherently unfair, and I welcome debate of other dairy
policy proposals for reform as well.
Mr. President, finally, I just want to say the Dairy Reform Act of
1998 is simply a call to fairness, just fairness, in dairy policy. It
is a statement in no uncertain terms that we who represent upper
Midwest dairy farmers are going to fight for equitable reform, for
market-driven policy. I urge my colleagues to take a look at it, to say
what is fair. Why not have everybody on a level playing field? Why not
give farmers all over the country the same opportunity for success or
failure? Why not get consumers market-driven prices, rather than unfair
Federal policies aimed at the Midwest?
So, I urge my colleagues to give their support.
______
By Mr. SMITH of New Hampshire (for himself, Mr. Helms, and Mr.
Faircloth):
S. 1983. A bill to amend section 991(a) of title 28, United States
Code, to require certain members of the United States Sentencing
Commission to be selected from among individuals who are victims of a
crime of violence; to the Committee on the Judiciary.
u.s. sentencing commission legislation
Mr. SMITH of New Hampshire. Mr. President, this is National Victim
Rights Week and today I am introducing a bill to amend section 991(a)
of
[[Page S3587]]
title 28, United States Code, to require certain members of the United
States Sentencing Commission to be selected from among individuals who
are victims of a crime of violence.
Each year, Mr. President, about 40 million Americans are victimized
by crime. Yet, all too often, the voices of those victims are lost in
the criminal justice system. In fact, it often seems that the voices of
those who commit crimes are heard with greater attentiveness by our
criminal justice system than are the voices of the victims of crime. As
President Reagan's Task Force on Victims of Crime stated in its 1982
report, ``the criminal justice system has lost its essential balance.''
One response to this problem has been S.J. Res. 44, a constitutional
amendment to protect the rights of victims of crime, which has been
introduced in this Congress by Senators Kyl and Feinstein. I am proud
to be a cosponsor of that crime victims constitutional amendment.
The bill that I am introducing today, Mr. President, is another
response to the problem of the under representation of victims' rights
in our criminal justice system. My bill, which my distinguished
colleagues from North Carolina, Senators Faircloth and Helms, are
cosponsoring, would reserve two of the seven seats on the United States
Sentencing Commission for victims of violent crime.
Mr. President, the United States Sentencing Commission is an
independent entity within the judicial branch that establishes
sentencing policies and practices for the Federal courts. This includes
sentencing guidelines that prescribe the appropriate form and severity
of punishment for offenders convicted of Federal crimes.
The U.S. Sentencing Commission is composed of seven voting members
who are appointed by the President, with the advice and consent of the
Senate, for six-year terms. The Commission also includes two non-voting
members. Of the seven voting members of the Sentencing Commission,
three must be Federal judges.
Under my bill, two of the four seats on the Sentencing Commission
that are not filled by Federal judges would be reserved for victims of
a crime of violence or, in the case of a homicide, an immediate family
member of such a victim. My bill utilizes the existing statutory
definition of a crime of violence that is found in section 16 of title
18 of the United States Code.
Mr. President, my bill preserves, to a large extent, the discretion
of the President in making decisions about whom to nominate to seats on
the Sentencing Commission. Under my bill, the President remains free to
seek individuals who have professional expertise in the criminal
justice field, so long as they also are victims of crime. Sadly, Mr.
President, I do not believe that the President would have much
difficulty identifying such qualified individuals.
Mr. President, six of the seven voting seats on the Sentencing
Commission are vacant. Let's give victims of crime a voice by requiring
that two of those vacant seats must be filled by Americans who have
been victimized by violent crime.
Mr. President, I ask unanimous consent that the text of my bill be
printed in the Record.
Thank you, Mr. President. I yield the floor.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1983
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. COMPOSITION OF UNITED STATES SENTENCING
COMMISSION.
(a) In General.--Section 991(a) of title 28, United States
Code, is amended by inserting after ``same political party.''
the following: ``Of the members who are not Federal judges,
not less than 2 members shall be individuals who are victims
of a crime of violence (as that term is defined in section 16
of title 18) or, in the case of a homicide, an immediate
family member of such a victim.''.
(b) Applicability.--The amendment made by this section
shall apply with respect to any appointment made on or after
the date of enactment of this Act.
______
By Mr. LAUTENBERG:
S. 1984. A bill to prohibit the transfer of a handgun by a licensed
dealer unless the transferee states that the transferee is not the
subject of a restraining order with respect to an intimate partner of
the transferee, a child of the transferee, or a child of an intimate
partner of the transferee; to the Committee on the Judiciary.
brady handgun violence protection act amendments
Mr. LAUTENBERG. Mr. President, I rise today to introduce a bill to
add a provision to the Brady Handgun Background Check Form to enforce
the prohibition that persons under a restraining order for harassing,
stalking or threatening an intimate partner or child cannot purchase a
gun.
The Background Check Form, used by law enforcement and gun dealers to
enforce the Brady Handgun Violence Protection Act, currently requires a
purchaser to answer questions on whether he or she falls into one of
the categories prohibited from purchasing a gun. The form asks whether
the purchaser has been convicted of a felony, has been declared
mentally defective or been committed to a mental institution, is an
illegal alien, fugitive from justice or an illegal user of drugs--all
of which would disqualify the person from lawfully purchasing a gun.
However, there is one very important disqualification not listed on
this form. The 1994 Crime Act prohibits a person under a restraining
order for harassing, stalking or threatening an intimate partner or the
child of that partner from purchasing a gun. But this disqualification
is not on the Brady Background Check Form--in fact it is the only
disqualification not on the Form.
Dealers, law enforcement agencies, and purchasers rely on the form to
provide notice as to who is prohibited from purchasing a handgun, and
law enforcement agencies use the form as a guide in making background
checks. This omission on the Brady Form means persons under restraining
orders for harassing, stalking and threatening their partners and their
partner's children can more easily obtain a gun even though it is
illegal for them to do so. My legislation is necessary because all
changes to the form are required to be done by legislation rather than
by regulation or order.
This simple change to the Brady Check List can mean the difference
between life and death for women and children across America. Domestic
violence in the United States remains the number one threat of injury
to women ages 15 to 44, and hundreds of thousands of women are forced
to obtain restraining orders to protect themselves and their children
from abusive partners every year. More than twice as many women are
shot and killed each year by their husbands or intimate partners than
by strangers.
Mr. President, Congress has already recognized that persons who are
under restraining orders for harassing, stalking, and threatening their
spouses, partners, and children should not be able to buy a gun. This
simple bill will help to enforce this important prohibition to keep
guns out of the hands of those who pose a real and serious threat to
their partners and children. Every year we see tragic incidents of
victims of domestic violence who have obtained restraining orders only
to be murdered by their partner.
I hope you will join me and support this worthy bill to protect
victims of domestic violence from the dangers that follow when their
abusive partner gains access to a gun.
I ask unanimous consent that a copy of this bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1984
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. PROHIBITION OF THE TRANSFER OF A HANDGUN BY A
LICENSED DEALER UNLESS THE TRANSFEREE STATES
THAT THE TRANSFEREE IS NOT THE SUBJECT OF A
RESTRAINING ORDER WITH RESPECT TO AN INTIMATE
PARTNER OF THE TRANSFEREE, A CHILD OF THE
TRANSFEREE, OR A CHILD OF AN INTIMATE PARTNER
OF THE TRANSFEREE.
Section 922(s)(3)(B) of title 18, United States Code, is
amended--
(1) by striking ``and'' at the end of clause (vi); and
(2) by adding ``and'' at the end of clause (vii); and
(3) by adding at the end the following:
``(viii) is not subject to a court order that--
``(I) restrains the transferee from harassing, stalking, or
threatening an intimate partner of the transferee or child of
such intimate partner or transferee, or engaging in other
conduct that would place an
[[Page S3588]]
intimate partner in reasonable fear of bodily injury to the
partner or child;
``(II) was issued after a hearing of which the transferee
received actual notice, and at which the transferee had the
opportunity to participate; and
``(III)(aa) includes a finding that the transferee
represents a credible threat to the physical safety of such
intimate partner or child; or
``(bb) by its terms explicitly prohibits the use, attempted
use, or threatened use of physical force against such
intimate partner or child that would reasonably be expected
to cause bodily injury;''.
______
By Mr. HATCH (for himself, Mr. Biden, Mr. Leahy, Mr. DeWine, and
Mr. Sessions):
S. 1985. A bill to amend Part L of the Omnibus Crime Control and Safe
Streets Act of 1968; read twice and placed on the calendar.
the care for police survivors act of 1998
Mr. HATCH. Mr. President, during the week of May 12, the country will
honor once again those law enforcement and public safety officers who
have died in the line of duty. It is entirely fitting that we do this.
And as we remember those who have fallen in defense of the public
safety, we should also do all we can to comfort and assist the families
and loved ones they have left behind. The bill I rise to introduce
today, the Care for Police Survivors Act of 1998, will help ensure that
we are doing so.
First, this bill, which was introduced in the House as H.R. 3565,
will strengthen programs available to the families of slain police
officers. For instance, the bill will allow groups like Concerns for
Police Survivors, more commonly referred to as COPS, to increase and
improve their services to these families. Second, this bill provides
authority to the Director of the Bureau of Justice Assistance to spend
no less than $150,000 out of the Public Safety Officers' Benefits
program to support and enrich national peer support and counseling
programs for families of police officers lost in the line of duty.
Second, this act will expedite the process of handling cases pending
before the Public Safety Officers' Benefits Office by allowing the
expenditure of PSOB program funds on outside hearing officers.
Currently, survivors of fallen police officers have to wait entirely
too long to obtain an appeal hearing for the denial of benefits. By
enacting this bill, we will make the process of helping these families
less burdensome.
I am pleased to be joined by Senators Biden, Leahy, DeWine, and
Sessions in introducing this bill in the Senate. On Tuesday of this
week, the House of Representatives overwhelmingly passed H.R. 3565 by a
403 to 8 vote. I urge my colleagues to join me in expeditiously passing
this legislation to demonstrate our tremendous gratitude and support
for these heroes and their families.
______
By Mr. DeWINE (for himself and Mrs. Hutchison):
S. 1987. A bill to amend title 18, United States Code, with respect
to violent sex crimes against children, and for other purposes; to the
Committee on the Judiciary.
the child protection and sexual predator punishment act of 1998
Mr. DeWINE. Mr. President, I rise today to introduce the Child
Protection and Sexual Predator Punishment Act of 1998. The purpose of
this legislation is to address the problem of child molesters and
pedophiles who use computers, and the Internet in particular, to commit
crimes of sexual abuse and exploitation against our most vulnerable
citizens--our children. I appreciate Senator Kay Bailey Hutchison
joining me in this important effort.
The Child Protection and Sexual Predator Punishment Act is a
comprehensive bill that combats the growing problem of criminals who
misuse our information superhighway to contact children for purposes of
sexual abuse and exploitation. Not only does this legislation send a
strong message that America will not tolerate the abuse of its
children, it will also make it easier to put these heinous criminals
out of commission.
Mr. President, my wife Fran and I have eight children--ages 6 to 30.
There is nothing more important to parents than protecting their
children from harm. There was a time, not so long ago, when parents
could feel secure when their children were at home or in a library--
that their child would at least be safe from danger in those places.
But along with the tremendous benefit of the Internet, we have also
unfortunately, unintentionally invited strangers into our homes, and
sometime our children's rooms, just because computers may be located
there. Strangers who sometimes have the immoral and criminal intent to
lure our kids into deviant sexual, abusive, and illegal activity right
under our noses.
Not long ago, a 47-year-old Ohio man used the Internet to entice a
12-year-old girl in New Jersey to make pornographic videos of herself.
He posed on-line as a 15-year-old, who promised that he would forward
copies of the pornographic video to her favorite music band members.
She made four sexually explicit videos before the man was apprehended
by authorities. There are literally hundreds of these examples, and
many even worse, occurring every day in America. It has become
commonplace to hear about a child being lured across the country via
the Internet by a pedophile.
I hope, and believe, that through this legislation we can begin to
restore the peace of mind parents should have when their children use
the Internet at school, at the library, or in their home.
This bill will protect children from cyber-stalkers and porn peddlers
by prohibiting contacting of a minor on the Internet for the purpose of
engaging in illegal sexual activity. It prohibits knowingly
transferring obscene materials to a minor over the Internet. In
addition, the maximum penalty is doubled for enticing a minor to travel
across State lines for illegal sexual activity. Using a computer to
persuade a minor to engage in prostitution or a sexual act will carry a
maximum sentence of 15 years, and a minimum sentence of 3 years.
Also, law enforcement is given the tools to quickly and effectively
investigate sex and kidnaping crimes involving children. Pretrial
detention is provided for Federal sex offenders, and administrative
subpoenas are allowed in certain child exploitation investigations. In
addition, the bill clarifies that kidnaping investigations do not
require waiting 24 hours--they can be initiated immediately. Further,
Federal jurisdiction is provided in kidnaping cases where a facility or
means of interstate or foreign commerce is used.
Mr. President, a person today can get almost anything on the
Internet. With this bill, we are trying to make sure that they cannot
get our children.
Mrs. HUTCHISON. Mr. President, technology has opened many doors for
communications and information sharing. Unfortunately, criminals have
found new ways to use the innovations to hurt children.
Today I am introducing with Senator DeWine the Child Protection and
Sexual Predator Punishment Act of 1998. Our bill will give law
enforcement the necessary tools to stop crimes against children,
especially those initiated through the Internet and commercial on-line
services.
Along with the proliferation of users of on-line services, our nation
has seen a rise in crimes committed against children by sexual
predators on-line. Every day, pedophiles stalk children through the
computer, transmitting pornography to them and enticing them to
participate in illegal activity. In some of the most tragic instances,
these criminals have convinced children to travel long distances to
meet them, only to face horrendous abuse by their ``hosts.''
In response to the growing number of these crimes. Congress has and
will surely continue to appropriate funds to allow collaboration among
FBI and state and local law enforcement to develop effective means to
prevent innocent children from being exploited. In the past, funds have
been used to train officers to detect cybercrime, pursue sexual
predators and establish child sexual exploitation cyber-squads of state
and local officers.
But the responsibility of Congress is not only to provide necessary
resources. We have an unfinished responsibility to give officers the
legal tools they need to stop these crimes before they happen. In
addition, Congress must send the unequivocal message to criminals who
dare to prey on children that such crimes will not be tolerated.
As children and adults increase their use of computers and online
services, this problem will only get worse. Only through aggressive
enforcement will
[[Page S3589]]
we be able to combat this rise in tragic crimes against our most
vulnerable citizens--children.
______
By Mr. D'AMATO (for himself and Mr. Shelby):
S. 1986. A bill to restructure the regulation of the Federal Home
Loan Bank System; to the Committee on Banking, Housing, and Urban
Affairs.
the federal home loan bank system restructuring act of 1998
Mr. D'AMATO. Mr. President, I rise today to introduce the ``Federal
Home Loan Bank System Restructuring Act of 1998'' to eliminate the last
vestiges of a bureaucratic structure which contributed to the downfall
of the savings and loan industry in the 1980's, and cost American
taxpayers $125 billion. I am referring to the structural weakness
inherent in a regulatory system which allows the combination of basic
safety and soundness oversight with management and governance
functions. This structural weakness exists today in the Federal Housing
Finance Board (FHFB) which oversees the Federal Home Loan Bank System.
Moreover, the FHFB appears to be the only regulatory agency where the
responsibility for safety and soundness regulation has not been
separated from management and governance functions.
I am very pleased that Senator Richard Shelby has joined as a co-
sponsor because he is the Senate's leading proponent of regulatory
reform and eliminating outdated and unnecessary regulation.
Mr. President, throughout most of its history, the Federal Home Loan
Bank System was regulated by the Federal Home Loan Bank Board, the same
agency responsible for regulating the thrift industry. In 1989,
Congress passed the Financial Institutions Reform, Recovery and
Enforcement Act (FIRREA) to abolish the Bank Board and create the
Federal Housing Finance Board (``FHFB'') to assume responsibility for
the regulation and supervision of the Federal Home Loan Bank System
(FHLB System). FIRREA provided the FHFB with the authority to supervise
the Federal Home Loan Banks (FHLBanks), ensure that the FHLBanks carry
out their mission of housing finance, ensure the FHLBanks remain
adequately capitalized and able to raise funds in the capital markets,
and ensure the FHLBanks operate in a safe and sound manner.
Safety and soundness regulation became the primary duty of the FHFB
as a result of the Housing and Community Development Act of 1992. In
that Act, Congress also recognized problems at the Federal Housing
Finance Board and specifically identified this structural flaw as a
serious problem. In search of a solution to this problem and
information concerning the future of the Federal Home Loan Banks in the
context of changing markets for housing finance, Congress mandated
several studies. In the study conducted by the FHFB, the agency itself
expressed concern about its dual role: ``The roles of regulation and
governance residing in one entity are not compatible and, indeed,
represent a long standing, well-understood inherent conflict when
joined''. [The Report on the Structure and Role of the Federal Home
Loan Bank System, The Federal Housing Finance Board, submitted to
Congress on April 28, 1993, page 153.] The FHFB recognized that
concerns about shareholder dividends and profitability should not be in
competition with concerns over safety and soundness and the
availability of housing finance for American taxpayers.
Mr. President, this bill would eliminate this serious and dangerous
conflict by transferring functions from the FHFB to the Office of
Federal Housing Enterprise Oversight (OFHEO) and the Department of
Housing and Urban Development (HUD). This is the current system of
regulation designed by Congress for the other two housing-related
government sponsored enterprises (GSEs)--Fannie Mae and Freddie Mac.
In addition, consolidating safety and soundness regulation in one
regulatory is consistent with the core recommendations of GAO and HUD--
that the conflict with the FHFB be resolved through the creation of a
single housing-related GSE. Even the Chairman of the FHFB, in testimony
before a House Banking Subcommittee last July, endorsed the GAO's
recommendation for a single independent safety and soundness regulator
for the Federal Home Loan Banks, Fannie Mae and Freddie Mac. He
acknowledged that consolidation will yield more effective regulation.
Mr. President, consolidating regulation of the housing GSE's is also
consistent with the Administration's objective of reducing government
by eliminating unnecessary, duplicative or redundant regulation--an
objective we all share. By placing FHFB's safety and soundness
functions with OFHEO, administration costs would be cut and regulatory
consistencies would be realized as a result of the complementary nature
of the housing finance roles played by the Federal Home Loan Banks,
Fannie Mae, and Freddie Mac. Another important public benefit of
consolidating oversight of the housing missions of these agencies
within HUD is to enable HUD to more effectively assess and respond to
the nation's affordable housing needs.
Mr. President, the legislation would abolish the conflicting dual
roles of the FHFB, streamline an overburdened bureaucratic process, and
insure that those entities with the mission of promoting housing
finance--Fannie Mae, Freddie Mac, and Federal Home Loan Banks--are
meeting that challenge in the most effective way possible. We owe
nothing less to the working families most in need of our assistance
than to insure the system is working for them.
Mr. President, this bill would address the regulation of the Federal
Home Loan Bank System by transferring its safety and soundness
functions to OFHEO and mission oversight to HUD. It does not--and is
not intended to--address other policy issues pertaining to the future
role of the Federal Home Loan Banks which remain under consideration by
the Banking Committee, Improving the level of affordable housing,
ensuring effective, efficient and objective regulation, cutting the fat
out of the government, and managing the taxpayers' dollars wisely--that
is what this bill is all about.
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. 1986
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 ``Federal Home Loan Bank
System Regulatory Restructuring Act of 1998''.
SEC. 2. RESTRUCTURING OF FEDERAL HOME LOAN BANK REGULATOR.
(a) In General.--The Federal Home Loan Bank Act (12 U.S.C.
1421 et seq.) is amended by striking sections 2A and 2B and
inserting the following:
``SEC. 2A. DUTIES AND POWERS OF THE DIRECTOR.
``(a) Duties.--The Director shall--
``(1) as a primary duty, ensure that the Federal Home Loan
Banks operate in a financially safe and sound manner; and
``(2) to the extent consistent with paragraph (1),
supervise the Federal Home Loan Banks and ensure that the
Federal Home Loan Banks remain adequately capitalized and
able to--
``(A) raise funds in the capital markets;
``(B) satisfy their obligations to support affordable
housing as required by section 10(j);
``(C) make payments to the Resolution Funding Corporation
as required by section 21B(f)(2)(C); and
``(D) pay dividends on bank stock sufficient for such stock
to remain a competitive investment for the holders of the
stock.
``(b) General Powers.--The Director may--
``(1) supervise the Federal Home Loan Banks and promulgate
and enforce such regulations and orders as are necessary to
carry out this Act;
``(2) suspend or remove for cause a director, officer,
employee, or agent of any Federal Home Loan Bank or joint
office, except that--
``(A) the cause of such suspension or removal shall be
communicated in writing to such director, officer, employee,
or agent and to such Bank or joint office; and
``(B) notwithstanding any other provision of this Act, no
officer, employee, or agent of a Bank or joint office shall
be a Federal officer or employee under any definition of
either term in title 5, United States Code;
``(3) determine necessary expenditures of the Director
under this Act and the manner in which such expenditures
shall be incurred, allowed, and paid;
``(4) use the United States mails in the same manner and
under the same conditions as a department or agency of the
United States;
``(5) issue such notice and orders, and, subject to the
same terms and conditions, exercise the same powers, rights,
and duties to
[[Page S3590]]
enforce this Act with respect to the Federal Home Loan Banks
and their officers and directors, as may be issued or
exercised by the OFHEO with respect to Federal housing
enterprises under--
``(A) subtitle C of title XIII of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992;
``(B) the Federal National Mortgage Association Charter
Act; or
``(C) the Federal Home Loan Mortgage Corporation Act.
``(c) Staff.--
``(1) In general.--Subject to title IV of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989,
the OFHEO may employ, direct, and fix the compensation and
number of employees, attorneys, and agents of the OFHEO
necessary to carry out its duties under this Act, except that
in no event shall the Director delegate any function to any
employee or administrative unit of any bank, or joint office
of the Federal Home Loan Bank System.
``(2) Compensation.--In directing and fixing such
compensation, the Director shall consult with and maintain
comparability with the compensation at the Federal bank
regulatory agencies. Such compensation shall be paid without
regard to the provision of other laws applicable to officers
or employees of the United States, except that the Director
shall receive no additional compensation above that specified
by section 5313 of title 5, United States Code.''.
``(d) Receipts of the Board.--
``(1) Receipts.--Receipts of the Board derived from
assessments levied upon the Federal Home Loan Banks and from
other sources (other than receipts from the sale of
consolidated Federal Home Loan Bank bonds and debentures
issued under section 11 of this Act) shall be deposited in
the Treasury of the United States.
``(2) Salaries.--Salaries of the directors and other
employees of the OFHEO, and all other expenses necessary for
the Director to carry out the duties of the Director under
this Act--
``(A) may be paid from assessments described in paragraph
(1), or from other sources; and
``(B) shall not be construed to be Government Funds or
appropriated monies, or subject to apportionment for the
purposes of chapter 15 of title 31, United States Code, or
any other authority.
``(e) Annual Report.--The Director shall submit to Congress
an annual report.''.
(b) Assessments.--Section 18(b) of the Federal Home Loan
Bank Act (12 U.S.C. 1438(b)) is amended by striking paragraph
(1) and inserting the following:
``(1) In general.--To the extent provided in advance in
appropriations Acts, the Director may impose a semiannual
assessment on the Federal Home Loan Banks, the aggregate
amount of which shall be sufficient to provide for the
payment of the expenses of the Director estimated to be
incurred under this Act for the period for which the
assessment is made.''.
(c) Technical and Conforming Amendments.--
(1) Definitions.--Section 2 of the Federal Home Loan Bank
Act (12 U.S.C. 1422) is amended--
(A) by striking paragraph (1) and inserting the following:
``(1) OFHEO.--The term `OFHEO' means the Office of Federal
Housing Enterprise Oversight, established under section 1311
of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992.'';
(B) in paragraph (2)(B), by striking ``Board'' and
inserting ``OFHEO'';
(C) in paragraph (6), by striking ``Board'', and inserting
``Secretary''; and
(D) by striking paragraph (10) and inserting the following:
``(10) Director.--The term `Director' means the Director of
the OFHEO, appointed under section 1312 of the Federal
Housing Enterprises Financial Safety and Soundness Act of
1992.''.
(2) Eligibility.--Section 4(a) of the Federal Home Loan
Bank Act (12 U.S.C. 1424(a)) is amended in the last sentence,
by striking ``Board'' and inserting ``Secretary''.
(3) Management of banks.--Section 7 of the Federal Home
Loan Bank Act (12 U.S.C. 1427) is amended by striking
``Board'' each place it appears and inserting ``Secretary''.
(4) Advances to members.--Section 10 of the Federal Home
Loan Bank Act (12 U.S.C. 1430) is amended--
(A) in each of subsections (a) through (d), by striking
``Board'' each place it appears, and inserting ``Director'';
and
(B) in each of subsections (e), (g), and (j), by striking
``Board'' each place it appears, and inserting ``Secretary''.
(5) General powers and duties of banks.--Section 11(i) of
the Federal Home Loan Bank Act (12 U.S.C. 1431(i)) is amended
by striking ``Chairperson of the Board'' and inserting
``Director''.
(6) Financing corporation.--Section 21 of the Federal Home
Loan Bank Act (12 U.S.C. 1441) is amended--
(A) in each of subsections (b)(5) and (e)(9), by striking
``Chairperson of the Federal Housing Finance Board'' and
inserting ``Director''; and
(B) by striking ``Federal Housing Finance Board'' each
place it appears and inserting ``Director''.
(7) Resolution trust corporation.--Section 21B of the
Federal Home Loan Bank Act (12 U.S.C. 1442) is amended by
striking ``Federal Housing Finance Board'' each place it
appears and inserting ``Director''.
(8) Member financial information.--Section 22 of the
Federal Home Loan Bank Act (12 U.S.C. 1442) is amended--
(A) in subsection (a), in the last sentence, by striking
``Board or'' each place it appears and inserting ``Director
or''; and
(B) in subsection (b), by striking ``Board'' each place
that term appears and inserting ``Director''.
(9) Forms of bank stock and obligations.--Section 23 of the
Federal Home Loan Bank Act (12 U.S.C. 1443) is amended by
striking ``Board of Directors of the Federal Housing Finance
Board'' and inserting ``Director''.
(10) Housing opportunity hotline program.--Section 27(a) of
the Federal Home Loan Bank Act (12 U.S.C. 1447) is amended--
(A) by striking ``Federal Housing Finance Board'' and
inserting ``Secretary''; and
(B) by striking ``Board'' and inserting ``Secretary''.
(11) Federal housing enterprise financial safety and
soundness act of 1992.--Section 1313 of the Federal Housing
Enterprise Financial Safety and Soundness Act of 1992 (12
U.S.C. 4513) is amended--
(A) in subsection (a), by inserting before the period at
the end the following: ``, and that the Federal Home Loan
Banks are adequately capitalized and operating safely in
accordance with the Federal Home Loan Bank Act (12 U.S.C.
1421 et seq.)''; and
(B) in subsection (b)--
(i) in paragraph (10), by striking ``and'' at the end;
(ii) in paragraph (11), by striking the period and
inserting ``; and''; and
(iii) by adding at the end the following:
``(12) the performance of any function or the exercise of
any authority assigned to the Director pursuant to the
Federal Home Loan Bank Act.''.
(12) Other references.--Except as otherwise provided in the
amendments made by this subsection, any reference in the
Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.), or any
other provision of Federal law, to the Federal Housing
Finance Board, shall be construed to refer to the Director of
the Office of Federal Housing Enterprise Oversight.
(d) Effective Date.--The amendments made by this section
shall take effect 60 days after the date of enactment of this
Act.
SEC. 3. TRANSITION PROVISIONS.
(a) Definitions.--In this section:
(1) Appropriate agency.--The term ``appropriate agency''
means--
(A) with respect to the functions transferred under
subsection (b)(1), the Department of Housing and Urban
Development; and
(B) with respect to the functions transferred under
subsection (b)(2), the Office.
(2) Board.--The term ``Board'' means the Federal Housing
Finance Board established under section 22A of the Federal
Home Loan Bank Act (as in effect on the day before the
effective date of the amendments made by section 2 of this
Act).
(3) Director.--The term ``Director'' means the Director of
the Office.
(4) Function.--The term ``function'' means any duty,
obligation, power, authority, responsibility, right,
privilege, activity, or program.
(5) Head of the appropriate agency.--The term ``head of the
appropriate agency'' means--
(A) with respect to the functions transferred under
subsection (b)(1), the Secretary; and
(B) with respect to the functions transferred under
subsection (b)(2), the Director.
(6) Office.--The term ``Office'' means the Federal Housing
Enterprise Oversight established under section 1311 of the
Federal Housing Enterprises Financial Safety and Soundness
Act of 1992.
(7) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Transfer of Functions.--
(1) Transfer to department of housing and urban
development.--Effective 60 days after the date of enactment
of this Act there are transferred to the Department of
Housing and Urban Development all functions that the Board
exercised before the date of enactment of this Act (including
all related functions of any officer or employee of the
Board) relating to the functions of the Board under the
following provisions of the Federal Home Loan Bank Act (12
U.S.C. 1421 et seq.) (as in effect on the day before the
effective date of the amendments made by section 2 of this
Act):
(A) The last sentence of section 4(a).
(B) Section 7.
(C) Subsections (e), (g), and (j) of section 10.
(D) Section 27(a).
(2) Transfer to office.--Effective 60 days after the date
of enactment of this Act there are transferred to the Office
all functions, other than the functions transferred under
paragraph (1), that the Board exercised before the date of
enactment of this Act (including all related functions of any
officer or employee of the Board) under the Federal Home Loan
Bank Act (12 U.S.C. 1421 et seq.).
(b) Disposition of Affairs.--During the 60-day period
beginning on the date of enactment of this Act, the
Chairperson of the Board--
(1) shall, solely for the purpose of facilitating the
orderly implementation of this section--
(A) manage the employees of the Board and provide for the
payment of the compensation
[[Page S3591]]
and benefits of any such employee that accrue before the
effective date of the transfer of such employee pursuant to
subsection (g); and
(B) manage any property of the Board and arrange for the
transfer thereof to the Office as promptly as practicable;
and
(2) may take any other action necessary for the purpose of
facilitating the orderly implementation of this section.
(c) Treatment of References in Adjustable Rate Mortgage
Instruments.--
(1) In general.--For purposes of adjustable rate mortgage
instruments that are in effect on the day before the
effective date of the amendments made by section 2, any
reference in the instrument to the Board shall be construed
to be a reference to the Secretary, unless the context of the
reference requires otherwise.
(2) Substitution for indexes.--If any index used to
calculate the applicable interest rate on any adjustable rate
mortgage instrument is no longer calculated and made
available as a direct or indirect result of the enactment of
this Act, any index--
(A) made available by the Secretary, pursuant to paragraph
(3); or
(B) determined by the Secretary, pursuant to paragraph (4),
to be substantially similar to the index that is no longer
calculated or made available, may be substituted by the
holder of any such adjustable rate mortgage instrument upon
notice to the borrower.
(3) Agency action required to provide continued
availability of indexes.--As soon as practicable after the
effective date of the amendments made by section 2, the
Secretary shall take such actions as may be necessary to
assure that the indexes prepared by the Board and the Federal
Home Loan Banks immediately before the effective date of the
amendments made by section 2 and used to calculate the
interest rate on adjustable rate mortgage instruments
continue to be available.
(4) Requirements relating to substitute indexes.--If any
index can no longer be made available pursuant to paragraph
(3), an index that is substantially similar to such index may
be substituted for such index for purposes of paragraph (2)
if the Secretary determines, after notice and opportunity for
comment, that--
(A) the new index is based upon data substantially similar
to that of the original index; and
(B) the substitution of the new index will result in an
interest rate substantially similar to the rate in effect at
the time the original index became unavailable.
(d) Continuation of Services.--
(1) In general.--The head of the appropriate agency may use
the services of employees and other personnel and the
property of the Board, on a reimbursable basis, to perform
functions transferred by this section to the appropriate
agency, for such time as is reasonable to facilitate the
orderly transfer of functions so transferred.
(2) Agency services.--Any agency, department, or other
instrumentality of the United States, and any successor to
any such agency, department, or instrumentality, that is
providing supporting services to the Board before the
effective date of the amendments made by section 2 in
connection with functions that are transferred to the head of
the appropriate agency under this section, shall--
(A) continue to provide such services, on a reimbursable
basis, until the transfer of such functions is complete; and
(B) consult with the Director to coordinate and facilitate
a prompt and reasonable transition.
(e) Savings Provisions.--
(1) Existing rights, duties, and obligations not
affected.--This section shall not affect the validity of any
right, duty, or obligation of the United States, the Board,
or any other person, that--
(A) arises under or pursuant to the Federal Home Loan Bank
Act (12 U.S.C. 1421 et seq.) or any other provision of law
applicable with respect to such Board; and
(B) exists on the day before the effective date of the
amendments made by section 2.
(2) Continuation of suits.--No action or other proceeding
commenced by or against the Board, or any person or entity
with respect to any function of the Board that was delegated
to such person or entity, shall abate by reason of the
enactment of this Act, except that the head of the
appropriate agency shall be substituted for the Board or a
party to any such action or proceeding.
(f) Continuation of Orders, Resolutions, Determinations,
and Regulations.--
(1) In general.--Except as provided in paragraph (2), all
orders, resolutions, determinations, and regulations, shall
continue in effect according to the terms of such orders,
resolutions, determinations, and regulations and shall be
enforceable by or against the head of the appropriate agency
until modified, terminated, set aside, or superseded in
accordance with applicable law by the head of the appropriate
agency by any court of competent jurisdiction, or by
operation of law, if such orders, resolutions, determination,
and regulations--
(A) have been issued, made, prescribed, or allowed to
become effective by the Board in the performance of functions
that are transferred by this section; and
(B) are in effect on the effective date of the amendments
made by section 2.
(2) Exception.--Paragraph (1) does not apply to any order,
resolution, determination, or regulation of the Board the
authority of which is terminated under this Act or the
amendments made by this Act.
(g) Transfer of Employees.--
(1) In general.--Not later than 60 days after the date of
enactment of this Act, each employee of the Board shall be
transferred to the appropriate agency and each such transfer
shall be construed to be a transfer of function for the
purpose of section 3503 of title 5, United States Code.
(2) Retention of status, tenure, pay.--Each employee
transferred under this subsection shall be guaranteed a
position with the same status, tenure, and pay as that held
on the day immediately preceding the transfer. Each such
employee holding a permanent position shall not be
involuntarily separated or reduced in grade or compensation
during the 6-month period beginning on the date of the
transfer, except for cause.
(3) Appointment authority.--
(A) In general.--Subject to subparagraph (B), in the case
of any employee transferred under this subsection who
occupies a position in the excepted service or the Senior
Executive Service, any appointment authority established
pursuant to law or regulations of the Office of Personnel
Management for filling such a position shall be transferred.
(B) Decline.--The head of the appropriate agency may
decline a transfer of an employee described in subparagraph
(A) to the extent that the authority transferred to the
appropriate agency relates to positions excepted from the
competitive service because of their confidential, policy-
making, policy-determining, or policy-advocating character,
and noncareer positions in the Senior Executive Service
(within the meaning of section 3132(a)(7) of title 5, United
States Code).
(4) Reorganization.--If the head of the appropriate agency
determines, after the end of the 1-year period beginning on
the date on which the transfer of functions to the
appropriate agency under this section is completed, that a
reorganization of the combined work-force is required, that
reorganization shall be deemed a ``major reorganization'' for
purposes of affording affected employees retirement under
section 8336(d)(2) or 8414(b)(1)(B) of title 5, United States
Code.
(5) Employee benefit programs.--
(A) In general.--Any employee accepting employment as a
result of a transfer under this subsection may retain, during
the 1-year period beginning on the date on which that
transfer occurs, membership in any employee benefit program
of the Board, including insurance, to which such employee
belongs on the effective date of the amendments made by
section 2 if--
(i) the employee does not elect to give up the benefit or
membership in the program; and
(ii) the benefit or program is continued by the head of the
appropriate agency, as applicable.
(B) Costs.--The difference in the costs between the
benefits that would have been provided by such agency or
entity and those provided by this section shall be paid by
the head of the appropriate agency, as applicable. If any
employee elects to give up membership in a health insurance
program or the health insurance program is not continued by
the head of the appropriate agency the employee shall be
permitted to select an alternate Federal health insurance
program within 30 days of such election or notice, without
regard to any other regularly scheduled open season.
(6) Insurance.--Any employee employed by the head of the
appropriate agency as a result of a transfer under this
subsection may retain membership in any employee benefit
program of the Board, including insurance, that such employee
has on the day before the effective date of the amendments
made by section 2, if the employee does not elect to give up
such membership and the benefit or program is continued by
the head of the appropriate agency, as applicable.
(7) Notice.--Each employee transferred under this
subsection shall receive notice of the position assignment of
that employee not later than 60 days after the effective date
of that transfer.
______
By Ms. COLLINS (for herself and Ms. Snowe):
S. 1988. A bill to provide for the release of interests of the United
States in certain real property located in Augusta, Maine; to the
Committee on Armed Services.
kennebec arsenal legislation
Ms. COLLINS. Mr. President, along with my colleague, the senior
Senator from Maine, I am pleased today to introduce legislation that
would bring about the release of certain interests of the United States
in property that the Federal Government conveyed to the State of Maine
more than 90 years ago. The property in question, which is situated on
a bluff overlooking the Kennebec River in Augusta, Maine, is known as
the Kennebec Arsenal.
In 1905, the Secretary of the Army, acting pursuant to a
Congressional mandate, executed a deed transferring the property to
Maine. That conveyance was subject to the conditions that the property
be used for what was then called the Maine Insane Hospital and that the
United States could take possession should the President determine that
the country had a need for it. In
[[Page S3592]]
1980, Congress provided that the first condition be broadened to allow
the property to be used for any public purpose. Today, I seek to
complete the transfer process through legislation that would
effectively eliminate the conditions attached to the conveyance.
Mr. President, the property is no longer needed for it former
purposes, and my bill would set in motion a chain of events that would
allow for new uses that would benefit not only the City of Augusta and
the State of Maine but our entire country. With the exception of the
Kennebec Arsenal, virtually all of the great arsenals of the nineteenth
century have been demolished or so completely altered that their
original appearance has been lost. The new uses contemplated by Maine
would raise money needed for repairs that would maintain what historic
preservation experts have described as the most perfectly intact of the
nineteenth century arsenals.
To be more specific, the State of Maine and City of Augusta plan to
form a nonprofit corporation to oversee the property. That corporation
would seek out private parties interested in using the land and
buildings for such purposes as a marina, a museum, and a restaurant.
Those parties would provide the capital for infrastructure development
that would likely include sidewalks, streets, water, sewer and other
utility service, and landscaping. In addition, the Arsenal's retaining
wall needs repair, and a marina cannot be established without
substantial dredging of the river.
The objective of my bill is to open the way for these improvements
and new uses by eliminating any reversionary interests of the United
States. The existence of such interests is a barrier to the private
sector making the long-term commitments required to fund the
improvements. In other words, Maine needs clear title for this plan to
go forward.
Mr. President, the Kennebec Arsenal occupies an important place in
the history of Maine and the nation. It was established in 1827 to deal
with the threat of invasion from Great Britain, either from across the
sea or from Canada to the north. The possibility of such an invasion
was seen as a major threat to American security during the first half
of the nineteenth century.
Much of the tension with the British stemmed from our disputed border
with Canada, and in the late 1830's that dispute nearly blossomed into
a full-scale war. While the so-called bloodless Aroostook War proved to
be more talk than action, it caused a flurry of activity at the
Kennebec Arsenal, with newly fabricated munitions sent there in
anticipation of full-scale fighting. Fortunately, cooler heads and the
arrival of the spring planting season brought the parties to the
negotiating table.
During the Mexican War, rockets and fixed ammunition were
manufactured at the Arsenal and shipped to the front. During the Civil
War, the post became an important depot of military stores. Indeed, a
fear that Confederate guerrillas based in Canada would seek to burn the
Arsenal led to the stationing of extra guards there, but despite the
approach late one dark night of an unidentified boat, nothing came of
this concern. During the latter half of the century, the Arsenal's
importance declined, and in 1901, the Army posted an order for its
abandonment. That process culminated in the legislation signed by
President Theodore Roosevelt providing for the transfer of the property
to the State for use as a hospital to serve the mentally ill.
Mr. President, I have offered this greatly abbreviated history of the
Kennebec Arsenal to demonstrate the value of finding uses for the
property that will guarantee its permanent preservation. That is the
goal of the State of Maine and the City of Augusta, and this
legislation will remove an anachronistic obstacle to the realization of
that goal.
I thank you, Mr. President, and I hope to have your support for this
very important legislation when it comes before the Committee on Armed
Services.
____________________