[Congressional Record Volume 144, Number 51 (Thursday, April 30, 1998)]
[Senate]
[Pages S3922-S3926]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CAMPBELL:
  S. 2010. A bill to provide for business development and trade 
promotion for Native Americans, and for other purposes; to the 
Committee on Indian Affairs.


the native american business development, trade promotion, and tourism 
                              act of 1998

  Mr. CAMPBELL. Mr. President, today I am pleased to introduce a 
measure to help Indians and tribal businesses foster entrepreneurship 
and vigorous reservation economies. Indian tribes face many challenges, 
but the greatest priority is in building stronger economies and 
providing jobs to tribal members. With this bill, I intend to unshackle 
Indian entrepreneurship to provide jobs and revenues for reservation 
economies.
  When the Europeans landed in the New World to explore and build 
settlements, they were greeted by Native

[[Page S3923]]

people with a long tradition of inter-tribal and regional trade. The 
tribes traded pelts and furs, hand-woven baskets, blankets, virtually 
limitless arts and crafts, weapons, and a variety of Native grown and 
gathered foods.
  Unrestrained by bureaucrats and free to roam their own lands, the 
tribes enjoyed a standard of material well-being that, while not ideal, 
was a far cry from the Third World conditions most Indian people live 
in today.
  Over the course of 200 years this tradition has been replaced by 
rules and regulations that continue to stifle Indian entrepreneurship 
and instead promise cradle-to-grave ``security'' based on federal 
transfer payments. The practical results of federal domination is 
predictable: lifeless reservation economies and the absence of a 
private sector to create wealth and sustain employment for Indian 
people.
  The current statistical profile of Indian people is poor and shows 
little sign of improvement. Despite the popular belief that gaming has 
made millionaires of all Indians, the reality is otherwise as most 
Indian gaming revenues are more like church bingo than like Las Vegas 
or Atlantic City.
  In the Great Depression, the national unemployment rate was 20 
percent and it was called a ``national crisis.'' Indian country has an 
unemployment rate running at 50 percent, and there are no comments, no 
sense of urgency and little attention being paid.
  There are other reasons job opportunities are needed. In 1996, the 
Congress enacted a welfare reform law that provides transition 
assistance to welfare recipients and rightly requires able-bodied 
Americans to get and keep jobs. In rural areas, particularly on Indian 
reservations, the welfare reform will hit hard because employment 
opportunities are scarce.
  The goal of this and future efforts is to increase value-added 
activities on reservations in such fields as manufacturing, energy, 
agriculture, livestock and fisheries, high technology, arts and crafts, 
and a host of service industries.
  The United States has the responsibility to preserve, protect and 
maximize tribal assets and resources, and an obligation to improve the 
standards of living of Indian people. In this legislation, that 
responsibility is primarily in removing the barriers to success the 
federal government itself has created over the years.
  The bill aims to make best use of and streamline existing programs to 
provide the necessary tools to enable tribes to attract outside capital 
and technical expertise. This model has proven highly successful in the 
self governance arena and in the Indian job training program, known as 
the ``477'' program. The bill would provide better coordination of 
existing business development programs in the Commerce Department and 
maximize the resources made available to tribes.
  The tribes have a responsibility as well. As a matter of Indian self 
determination, the tribes are increasingly administering federal 
services, programs, and activities in lieu of the federal government. 
This has led to more capable and accountable tribal governments. A 
fundamental precept of self-government is a reduction in the dependence 
on the federal bureaucracy and federal funds and by assuming a greater 
role in funding their own self government.
  The Committee on Indian Affairs recently held a hearing on economic 
development and one of the findings was that the tribes need to provide 
governance infrastructure and friendly business environments if they 
want to attract and retain investment. Whether by adopting commercial 
codes, or tribal courts that can address business issues, or 
regulations that do not repel the private sector, tribal efforts are 
critical if this effort is to succeed.
  Under the bill, the Native American Business Development Office in 
the Commerce Department will coordinate existing programs, including 
those for international business and tourism, aimed at development on 
Indian lands. This bill does not create any new programs but rather is 
intended to achieve more efficiency in those that already exist within 
existing budget authority. The bill also prohibits assistance under the 
act from being used for gaming on Indian lands.
  In addition, the bill directs the Secretary to create a task force on 
regulatory reform and business development to analyze existing laws and 
regulations that are restraining business and economic development on 
Indian lands. Again, the bill is not intended to create a new entity, 
but recognizes that there is great need to strip away the layers of 
unnecessary rules and regulations that stifle Indian businesses.
  I urge those that are critical of Indian gaming to join me in 
providing alternatives to build strong and diversified tribal economies 
for the benefit of tribes, tribal members, and surrounding communities.
  Mr. President, I ask unanimous consent that the provisions of the 
bill and an article written by James Gwartney for the Wall Street 
Journal dated April 10, 1998, entitled ``Less Government, More Growth'' 
be printed in the Record.
  There being no objection, the items were ordered to be printed in the 
Record, as follows:

                                S. 2010

       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 ``Native American Business 
     Development, Trade Promotion, and Tourism Act of 1998''.

     SEC. 2. FINDINGS; PURPOSES.

       (a) Findings.--Congress finds that--
       (1) clause 3 of section 8 of article I of the United States 
     Constitution recognizes the special relationship between the 
     United States and Indian tribes;
       (2) beginning in 1970, with the inauguration by the Nixon 
     Administration, of the Indian self-determination era of the 
     Federal Government, each President has confirmed the special 
     government-to-government relationship between Indian tribes 
     and the United States;
       (3) in 1994, President Clinton issued an Executive 
     memorandum to the heads of departments and agencies that 
     obligated all Federal departments and agencies, particularly 
     those that have an impact on economic development, to 
     evaluate the potential impacts of their actions on Indian 
     tribes;
       (4) consistent with the principles of inherent tribal 
     sovereignty and the special relationship between Indian 
     tribes and the United States, tribes retain the right to 
     enter into contracts and agreements to trade freely, and seek 
     enforcement of treaty and trade rights;
       (5) Congress has carried out the responsibility of the 
     United States for the protection and preservation of Indian 
     tribes and the resources of Indian tribes through the 
     endorsement of treaties, and the enactment of other laws, 
     including laws that provide for the exercise of 
     administrative authorities;
       (6) the United States has an obligation to guard and 
     preserve the sovereignty of Indian tribes in order to foster 
     strong tribal governments, Indian self-determination, and 
     economic self-sufficiency among Indian tribes;
       (7) the capacity of Indian tribes to build strong tribal 
     governments and vigorous economies is hindered by the 
     inability of Indian tribes to engage communities that 
     surround Indian lands and outside investors in economic 
     activities on Indian lands;
       (8) despite the availability of abundant natural resources 
     on Indian lands and a rich cultural legacy that accords great 
     value to self-determination, self-reliance, and independence, 
     American Indians and Alaska Natives suffer higher rates of 
     unemployment, poverty, poor health, substandard housing, and 
     associated social ills than those of any other group in the 
     United States;
       (9) the United States has an obligation to assist Indian 
     tribes with the creation of appropriate economic and 
     political conditions with respect to Indian lands to--
       (A) encourage investment from outside sources that do not 
     originate with the tribes; and
       (B) facilitate economic ventures with outside entities that 
     are not tribal entities;
       (10) the economic success and material well-being of 
     American Indian and Alaska Native communities depends on the 
     combined efforts of the Federal Government, tribal 
     governments, the private sector, and individuals;
       (11) the lack of employment and entrepreneurial 
     opportunities in the communities referred to in paragraph (8) 
     has resulted in a multigenerational dependence on Federal 
     assistance that is--
       (A) insufficient to address the magnitude of needs; and
       (B) unreliable in availability; and
       (12) the twin goals of economic self-sufficiency and 
     political self-determination for American Indians and Alaska 
     Natives can best be served by making available to address the 
     challenges faced by those groups--
       (A) the resources of the private market;
       (B) adequate capital; and
       (C) technical expertise.
       (b) Purposes.--The purposes of this Act are as follows:
       (1) To revitalize economically and physically distressed 
     Indian reservation economies by--
       (A) encouraging the formation of new businesses by eligible 
     entities, the expansion of existing businesses; and
       (B) facilitating the movement of goods to and from Indian 
     reservations and the provision of services by Indians.

[[Page S3924]]

       (2) To promote private investment in the economies of 
     Indian tribes and to encourage the sustainable development of 
     resources of Indian tribes and tribal and Indian-owned 
     businesses.
       (3) To promote the long-range sustained growth of the 
     economies of Indian tribes.
       (4) To raise incomes of Indians in order to reduce poverty 
     levels and provide the means for achieving a higher standard 
     of living on Indian reservations.
       (5) To encourage intertribal, regional, and international 
     trade and business development in order to assist in 
     increasing productivity and the standard of living of members 
     of Indian tribes and improving the economic self-sufficiency 
     of the governing bodies of Indian tribes.
       (6) To promote economic self-sufficiency and political 
     self-determination for Indian tribes and members of Indian 
     tribes.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Board.--The term ``Board'' has the meaning given that 
     term in the first section of the Act entitled ``To provide 
     for the establishment, operation, and maintenance of foreign-
     trade zones in ports of entry in the United States, to 
     expedite and encourage foreign commerce, and for other 
     purposes'', approved June 18, 1934 (19 U.S.C. 81a).
       (2) Eligible entity.--The term ``eligible entity'' means an 
     Indian tribe, tribal organization, Indian arts and crafts 
     organization, tribal enterprise, tribal marketing 
     cooperative, or Indian-owned business.
       (3) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (4) Foundation.--The term ``Foundation'' means the Rural 
     Development Foundation.
       (5) Indian.--The term ``Indian'' has the meaning given that 
     term in section 4(d) of the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450b(d)).
       (6) Indian arts and crafts organization.--The term ``Indian 
     arts and crafts organization'' has the meaning given that 
     term under section 2 of the Act of August 27, 1935 (49 Stat. 
     891, chapter 748; 25 U.S.C. 305a).
       (7) Indian goods and services.--The term ``Indian goods and 
     services'' means--
       (A) Indian goods, within the meaning of section 2 of the 
     Act of August 27, 1935 (commonly known as the ``Indian Arts 
     and Crafts Act'') (49 Stat. 891, chapter 748; 25 U.S.C. 
     305a);
       (B) goods produced or originating within an eligible 
     entity; and
       (C) services provided by eligible entities.
       (8) Indian lands.--The term ``Indian lands'' has the 
     meaning given that term in section 4(4) of the Indian Gaming 
     Regulatory Act (25 U.S.C. 2703(4)).
       (9) Indian-owned business.--The term ``Indian-owned 
     business'' means an entity organized for the conduct of trade 
     or commerce with respect to which at least 50 percent of the 
     property interests of the entity are owned by Indians or 
     Indian tribes (or a combination thereof).
       (10) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given that term in section 4(e) of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 
     450b(e)).
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce.
       (12) Tribal enterprise.--The term ``tribal enterprise'' 
     means a commercial activity or business managed or controlled 
     by an Indian tribe.
       (13) Tribal marketing cooperative.--The term ``tribal 
     marketing cooperative'' shall have the meaning given that 
     term by the Secretary, in consultation with the Secretary of 
     the Interior.
       (14) Tribal organization.--The term ``tribal organization'' 
     has the meaning given that term in section 4(l) of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b(l)).
   TITLE I--TASK FORCE ON REGULATORY REFORM AND BUSINESS DEVELOPMENT

     SEC. 101. ESTABLISHMENT OF TASK FORCE.

       (a) In General.--In order to identify and subsequently 
     remove obstacles to the business development and the creation 
     of wealth in the economies of Indian reservations, the 
     Secretary, in consultation with the Secretary of the Interior 
     and other officials whom the Secretary determines to be 
     appropriate, shall, not later than 90 days after the date of 
     enactment of this Act, establish a task force on regulatory 
     reform and business development in Indian country (referred 
     to in this title as the ``task force'').
       (b) Membership.--The task force established under this 
     section shall be composed of 16 members, of which 12 members 
     shall be representatives of the Indian tribes from the areas 
     of the Bureau of Indian Affairs and each such area shall be 
     represented by such a representative.
       (c) Initial Meeting.--Not later than 120 days after the 
     date of enactment of this Act, the task force shall hold its 
     initial meeting.
       (d) Review.--Beginning on the date of the initial meeting 
     under subsection (b), the task force shall conduct a review 
     of laws relating to activities occurring on Indian lands 
     (including regulations under title 25 of the Code of Federal 
     Regulations).
       (e) Meetings.--The task force shall meet at the call of the 
     chairperson.
       (f) Quorum.--A majority of the members of the task force 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (g) Chairperson.--The task force shall select a chairperson 
     from among its members.

     SEC. 102. REPORT.

       Not later than 1 year after the date of enactment of this 
     Act, the task force shall prepare and submit to the Committee 
     on Indian Affairs in the Senate, and the Committee on 
     Resources in the House of Representatives, and to the 
     governing body of each Indian tribe a report that includes--
       (1) the findings of the task force concerning the review 
     conducted pursuant to section 101(d); and
       (2) such recommendations concerning the proposed revisions 
     to the regulations under title 25 of the Code of Federal 
     Regulations and amendments to other laws relating to 
     activities occurring on Indian lands as the task force 
     determines to be appropriate.

     SEC. 103. POWERS OF THE TASK FORCE.

       (a) Hearings.--The task force may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the task force considers advisable 
     to carry out the duties of the task force.
       (b) Information From Federal Agencies.--The task force may 
     secure directly from any Federal department or agency such 
     information as the task force considers necessary to carry 
     out the duties of the task force.
       (c) Postal Services.--The task force may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (d) Gifts.--The task force may accept, use, and dispose of 
     gifts or donations of services or property.

     SEC. 104. TASK FORCE PERSONNEL MATTERS.

       (a) Compensation of Members.--Members of the task force who 
     are not officers or employees of the Federal Government shall 
     serve without compensation, except for travel expenses, as 
     provided under subsection (b). Members of the task force who 
     are officers or employees of the United States shall serve 
     without compensation in addition to that received for their 
     services as officers or employees of the United States.
       (b) Travel Expenses.--The members of the task force shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the task force.
       (c) Staff.--
       (1) In general.--The chairperson of the task force may, 
     without regard to the civil service laws, appoint and 
     terminate such personnel as may be necessary to enable the 
     task force to perform its duties.
       (2) Procurement of temporary and intermittent services.--
     The chairperson of the task force may procure temporary and 
     intermittent service under section 3109(b) of title 5, United 
     States Code, at rates for individuals that do not exceed the 
     daily equivalent of the annual rate of basic pay prescribed 
     under GS-13 of the General Schedule established under section 
     5332 of title 5, United States Code.

     SEC. 105. TERMINATION OF TASK FORCE.

       The task force shall terminate 90 days after the date on 
     which the task force has submitted, to the committees of 
     Congress specified in section 102, and to the governing body 
     of each Indian tribe, a copy of the report prepared under 
     that section.

     SEC. 106. EXEMPTION FROM FEDERAL ADVISORY COMMITTEE ACT.

       All of the activities of the task force conducted under 
     this title shall be exempt from the Federal Advisory 
     Committee Act (5 U.S.C. App.).
             TITLE II--NATIVE AMERICAN BUSINESS DEVELOPMENT

     SEC. 201. OFFICE OF NATIVE AMERICAN BUSINESS DEVELOPMENT.

       (a) In General.--
       (1) Establishment.--There is established within the 
     Department of Commerce an office known as the Office of 
     Native American Business Development (referred to in this 
     title as the ``Office'').
       (2) Director.--The Office shall be headed by a Director, 
     appointed by the Secretary, whose title shall be the Director 
     of Native American Business Development (referred to in this 
     title as the ``Director''). The Director shall be compensated 
     at a rate not to exceed level V of the Executive Schedule 
     under section 5316 of title 5, United States Code.
       (b) Duties of the Secretary.--
       (1) In general.--The Secretary, acting through the 
     Director, shall ensure the coordination of Federal programs 
     that provide assistance, including financial and technical 
     assistance, to eligible entities for increased business, the 
     expansion of trade by eligible entities, and economic 
     development on Indian lands.
       (2) Activities.--In carrying out the duties described in 
     paragraph (1), the Secretary, acting through the Director, 
     shall ensure the coordination of, or, as appropriate, carry 
     out--
       (A) Federal programs designed to provide legal, accounting, 
     or financial assistance to eligible entities;
       (B) market surveys;
       (C) the development of promotional materials;
       (D) the financing of business development seminars;
       (E) the facilitation of marketing;

[[Page S3925]]

       (F) the participation of appropriate Federal agencies or 
     eligible entities in trade fairs;
       (G) any activity that is not described in subparagraphs (A) 
     through (F) that is related to the development of appropriate 
     markets; and
       (H) any other activity that the Secretary, in consultation 
     with the Director, determines to be appropriate to carry out 
     this section.
       (3) Assistance.--In conjunction with the activities 
     described in paragraph (2), the Secretary, acting through the 
     Director, shall provide--
       (A) financial assistance, technical assistance, and 
     administrative services to eligible entities to assist those 
     entities with--
       (i) identifying and taking advantage of business 
     development opportunities; and
       (ii) compliance with appropriate laws and regulatory 
     practices; and
       (B) such other assistance as the Secretary, in consultation 
     with the Director, determines to be necessary for the 
     development of business opportunities for eligible entities 
     to enhance the economies of Indian tribes.
       (4) Priorities.--In carrying out the duties and activities 
     described in paragraphs (2) and (3), the Secretary, acting 
     through the Director, shall give priority to activities 
     that--
       (A) provide the greatest degree of economic benefits to 
     Indians; and
       (B) foster long-term stable economies of Indian tribes.
       (5) Prohibition.--The Secretary may not provide under this 
     section assistance for any activity related to the operation 
     of a gaming activity on Indian lands pursuant to the Indian 
     Gaming Regulatory Act (25 U.S.C. 2710 et seq.).

     SEC. 202. NATIVE AMERICAN TRADE AND EXPORT PROMOTION.

       (a) In General.--The Secretary, acting through the 
     Director, shall carry out a Native American export and trade 
     promotion program (referred to in this section as the 
     ``program'').
       (b) Coordination of Federal Programs and Services.--In 
     carrying out the program, the Secretary, acting through the 
     Director, and in cooperation with the heads of appropriate 
     Federal agencies, shall ensure the coordination of Federal 
     programs and services designed to--
       (1) develop the economies of Indian tribes; and
       (2) stimulate the demand for Indian goods and services that 
     are available to eligible entities.
       (c) Activities.--In carrying out the duties described in 
     subsection (b), the Secretary, acting through the Director, 
     shall ensure the coordination of, or, as appropriate, carry 
     out--
       (1) Federal programs designed to provide technical or 
     financial assistance to eligible entities;
       (2) the development of promotional materials;
       (3) the financing of appropriate trade missions;
       (4) the marketing of Indian goods and services;
       (5) the participation of appropriate Federal agencies or 
     eligible entities in international trade fairs; and
       (6) any other activity related to the development of 
     markets for Indian goods and services.
       (d) Technical Assistance.--In conjunction with the 
     activities described in subsection (c), the Secretary, acting 
     through the Director, shall provide technical assistance and 
     administrative services to eligible entities to assist those 
     entities with--
       (1) the identification of appropriate markets for Indian 
     goods and services;
       (2) entering the markets referred to in paragraph (1);
       (3) compliance with foreign or domestic laws and practices 
     with respect to financial institutions with respect to the 
     export and import of Indian goods and services; and
       (4) entering into financial arrangements to provide for the 
     export and import of Indian goods and services.
       (e) Priorities.--In carrying out the duties and activities 
     described in subsections (b) and (c), the Secretary, acting 
     through the Director, shall give priority to activities 
     that--
       (1) provide the greatest degree of economic benefits to 
     Indians; and
       (2) foster long-term stable international markets for 
     Indian goods and services.

     SEC. 203. INTERTRIBAL TOURISM DEMONSTRATION PROJECTS.

       (a) In General.--
       (1) Demonstration projects.--The Secretary, acting through 
     the Director, shall conduct a Native American tourism program 
     to facilitate the development and conduct of tourism 
     demonstration projects by Indian tribes, on a tribal, 
     intertribal, or regional basis.
       (2) Projects.--
       (A) In general.--Under the program established under this 
     section, in order to assist in the development and promotion 
     of tourism on and in the vicinity of Indian lands, the 
     Secretary, acting through the Director, shall, in 
     coordination with the Foundation, assist eligible entities in 
     the planning, development, and implementation of tourism 
     development demonstration projects that meet the criteria 
     described in subparagraph (B).
       (B) Projects described.--In selecting tourism development 
     demonstration projects under this section, the Secretary, 
     acting through the Director, shall select projects that have 
     the potential to increase travel and tourism revenues by 
     attracting visitors to Indian lands and in the vicinity of 
     Indian lands, including projects that provide for--
       (i) the development and distribution of educational and 
     promotional materials pertaining to attractions located on 
     and near Indian lands;
       (ii) the development of educational resources to assist in 
     private and public tourism development on and in the vicinity 
     of Indian lands; and
       (iii) the coordination of tourism-related joint ventures 
     and cooperative efforts between eligible entities and 
     appropriate State and local governments that have 
     jurisdiction over areas in the vicinity of Indian lands.
       (3) Grants.--To carry out the program under this section, 
     the Secretary, acting through the Director, may award grants 
     or enter into other appropriate arrangements with Indian 
     tribes, tribal organizations, intertribal consortia, or other 
     tribal entities that the Secretary, in consultation with the 
     Director, determines to be appropriate.
       (4) Locations.--In providing for tourism development 
     demonstration projects under the program under this section, 
     the Secretary, acting through the Director, shall provide for 
     a demonstration project to be conducted--
       (A) for Indians of the Four Corners area located in the 
     area adjacent to the border between Arizona, Utah, Colorado, 
     and New Mexico;
       (B) for Indians of the northwestern area that is commonly 
     known as the Great Northwest (as determined by the 
     Secretary);
       (C) for the Oklahoma Indians in Oklahoma; and
       (D) for the Indians of the Great Plains area (as determined 
     by the Secretary).
       (b) Studies.--The Secretary, acting through the Director, 
     shall provide financial assistance, technical assistance, and 
     administrative services to participants that the Secretary, 
     acting through the Director, selects to carry out a tourism 
     development project under this section, with respect to--
       (1) feasibility studies conducted as part of that project;
       (2) market analyses;
       (3) participation in tourism and trade missions; and
       (4) any other activity that the Secretary, in consultation 
     with the Director, determines to be appropriate to carry out 
     this section.
       (c) Infrastructure Development.--The demonstration projects 
     conducted under this section shall include provisions to 
     facilitate the development and financing of infrastructure, 
     including the development of Indian reservation roads in a 
     manner consistent with title 23, United States Code.

     SEC. 204. REPORT TO CONGRESS.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, and annually thereafter, the 
     Secretary, in consultation with the Director, shall prepare 
     and submit to the Committee on Indian Affairs of the Senate a 
     report on the operation of the Office.
       (b) Contents of Report.--Each report prepared under 
     subsection (a) shall include--
       (1) for the period covered by the report, a summary of the 
     activities conducted by the Secretary, acting through the 
     Director, in carrying out this title; and
       (2) any recommendations for legislation that the Secretary, 
     in consultation with the Director, determines to be necessary 
     to carry out this title.

     SEC. 205. FOREIGN-TRADE ZONE PREFERENCES.

       (a) Preference in Establishment of Foreign-Trade Zones in 
     Indian Enterprise Zones.--In processing applications for the 
     establishment of foreign-trade zones pursuant to the Act 
     entitled ``To provide for the establishment, operation, and 
     maintenance of foreign-trade zones in ports of entry of the 
     United States, to expedite and encourage foreign commerce, 
     and for other purposes'', approved June 18, 1934 (19 U.S.C. 
     81a et seq.), the Board shall consider, on a priority basis, 
     and expedite, to the maximum extent practicable, the 
     processing of any application involving the establishment of 
     a foreign-trade zone on Indian lands, including any Indian 
     lands designated as an empowerment zone or enterprise 
     community pursuant to section 1391 of the Internal Revenue 
     Code of 1986.
       (b) Application Procedure.--In processing applications for 
     the establishment of ports of entry pursuant to the Act 
     entitled ``An Act making appropriations for sundry civil 
     expenses of the Government for the fiscal year ending June 
     thirtieth, nineteen hundred and fifteen, and for other 
     purposes'', approved August 1, 1914 (19 U.S.C. 2), the 
     Secretary of the Treasury shall, with respect to any 
     application involving the establishment of a port of entry 
     that is necessary to permit the establishment of a foreign-
     trade zone on Indian lands--
       (1) consider on a priority basis; and
       (2) expedite, to the maximum extent practicable, the 
     processing of that application.
       (c) Application Evaluation.--In evaluating applications for 
     the establishment of foreign-trade zones and ports of entry 
     in connection with Indian lands, to the maximum extent 
     practicable and consistent with applicable law, the Board and 
     Secretary of the Treasury shall approve the applications.

             [From the Wall Street Journal, Apr. 10, 1998]

                      Less Government, More Growth

                          (By James Gwartney)

       Propelled by a confidence that politicians could solve 
     problems, government spending has soared in the U.S. and 
     other Western

[[Page S3926]]

     countries since 1960. Has wise ``government planning'' 
     improved economic performance? Quite the opposite. Robert 
     Lawson, Randall Holcombe and I recently completed a study on 
     the size and functions of government for Congress's Joint 
     Economic Committee. Here are some of our findings:
       As the size of government has expanded in the U.S., growth 
     of real gross domestic product has steadily fallen. Even 
     though the U.S. economy is now moving into the eighth year of 
     an expansion, the growth of real GDP during the 1990s is only 
     about half what it was during the 1960s and well below even 
     that of the turbulent 1970s. Likewise, as the size of 
     government in other nations has increased, economic growth 
     has declined. On average, government expenditures in the 
     Organization for Economic Cooperation and Development's 23 
     long-standing members rose to 48% of GDP in 1996 from 27% in 
     1960. The average economic growth rate fell from 5.5% in the 
     1960s to 1.9% in the 1990s.
       As the chart nearby shows, there has is a striking 
     relationship between the size of government and economic 
     growth. When government spending was less than 25% of GDP, 
     OECD countries achieved an average real growth rate of 6.6%. 
     As the size of government rose, growth steadily declined, 
     plunging to 1.6% when government spending exceeded 60% of 
     GDP.
       While growth has declined in all of the OECD countries, 
     those countries with the least growth of government have 
     suffered the least. Between 1960 and 1996, the size of 
     government as a share of GDP increased by less than 15 
     percentage points in the U.S., Britain, Iceland, Ireland 
     and New Zealand. The average growth rate for these five 
     countries was 1.6 percentage points lower in the 1990s 
     than in the 1960s. In contrast, the size of government 
     increased by 25 percentage points or more in Denmark, 
     Finland, Greece, Portugal, Spain and Sweden. The growth 
     rate of these six countries fell by 5.2 percentage points.
       In the world's fastest-growing economies, furthermore, the 
     size of government is small, and there is no trend toward 
     bigger government. On average, government expenditures in 
     1995 consumed only 20% of GDP in the five economies with the 
     most rapid real economic growth rates during 1980-95: Hong 
     Kong, Singapore, South Korea, Taiwan and Thailand. In these 
     countries, the size of government in 1995 was virtually the 
     same as in 1975. When we looked at a diverse group of 60 
     nations, we found that the negative relationship between 
     bigger government and economic growth is present in all types 
     of economies.
       Many policy-makers seem oblivious to these facts. Even 
     though the evidence clearly shows that excessive government 
     expenditures are retarding economic growth, politicians 
     continue to focus on how to spend a possible surplus. What 
     the U.S. and other nations need instead is a long-range 
     strategy to reduce the size and scope of government.
       Had the public-sector expansion of the past four decades 
     accelerated economic growth, politicians would be rushing to 
     take credit. Since the opposite has occurred, how can we fail 
     to hold them accountable?
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