[Congressional Record Volume 144, Number 74 (Wednesday, June 10, 1998)]
[Senate]
[Pages S6037-S6046]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DURBIN (for himself, Ms. Snowe, Mr. Gorton, Mr. Wellstone, 
        Ms. Mikulski, Mrs. Feinstein, Mr. Chafee, Mrs. Boxer, Mrs. 
        Murray, Mr. Grassley, Mr. Wyden, Mr. Bingaman, Mr. Kerry, Mr. 
        Robb, Mr. Inouye, Mr. Torricelli, Mr. Levin, Mr. Bumpers, Mr. 
        Johnson, Mr. DeWine, Mr. Kohl, Ms. Collins, Mr. Cleland, and 
        Mr. Moynihan):
  S. 2152. A bill to establish a program to provide credit and other 
assistance for encouraging microenterprises in developing countries, 
and for other purposes; to the Committee on Foreign Relations.


              microcredit for self-sufficiency act of 1998

  Mr. DURBIN. Mr. President, I rise to introduce a bill today which is 
cosponsored by at least 20 of my colleagues in the Senate, a bipartisan 
offering on an issue which I came to be familiar with over 10 years 
ago. I traveled to the country of Bangladesh. It is not exactly on the 
itinerary of favorite congressional trips because it is a country 
which, although it is large and very interesting, has had its share of 
misfortune. It seems whenever any natural disaster would strike in the 
world it would stop in Bangladesh. We, of course, conjure an image in 
our mind of people who have suffered through typhoons and tornadoes and 
flooding and all sorts of deprivation. It is a very poor country.
  Then Congressman, the late Mike Synar, and I went to Bangladesh. One 
of the reasons we went was to explore an issue which we had heard a lot 
about. There is an institution created in Bangladesh known as the 
Grameen Bank. Grameen means ``people's bank.'' It is an extraordinary 
institution because it is an unusual bank; it is

[[Page S6038]]

a bank designed to provide very small loans to very poor people. So 
Congressman Synar and I joined with people from the American Embassy 
and got in our four-wheel drive vehicle and drove out from Dakar into 
the countryside until the road ended, and then our four-wheel vehicle 
could go no further and we got out and started hiking a few miles into 
the brush and came upon a tiny little village. In this village we were 
invited to a bank meeting, a meeting of the board of directors of the 
Grameen Bank, in this tiny, obscure, almost nameless Bangladesh 
village. The bank meeting was unlike any meeting of any board of 
directors one would ever imagine.
  Seated in a little shelter were about 30 or 40 women, all dressed in 
brightly colored saris, with a third eye in their foreheads, many of 
them holding babies in a typical Asian squatting position and looking 
up at these visitors who had come to see them.
  Our host, a professor from a university in Bangladesh who was 
familiar with the program, Dr. Huk, introduced us to the women in the 
audience. He said at one point, ``Is there anyone here who has ever 
heard of the United States of America?'' Not one of them had. And here 
we were, these two Congressmen standing before them, looking like 
creatures from some other planet I am sure, wanting to know more about 
this little bank.
  This bank has grown in size and scope in an effort to provide 
microcredit, small loans, to some of the poorest people in the world. 
What does $100 mean to an American? For us, it might be a nice trip 
shopping or a trip to a restaurant. But for a woman living in 
Bangladesh, $100 might mean that she can buy some tools and develop a 
skill and a craft to feed her family; $100 might mean that she can buy 
a milking cow that she can then use, not only to feed her family, but 
to sell the products and to make some money for her future.
  How does this work, that people who are so poor, with literally no 
earthly possessions, can be debtors, can borrow money from a bank? It 
works because the concept is that when they undertake this debt, 
several other villagers will sign up with them, cosign the note, if you 
will, in a guarantee that the payment will be made because, you see, 
the cosigners cannot get a debt of their own until the original debt is 
paid off. So they look very carefully to make sure that the debt is 
repaid on a monthly basis. The payback rate on Grameen Bank is over 95 
percent.
  Why in the world would I raise this question here on the floor of the 
U.S. Senate in the great country that we live in, with all of our 
wealth and opportunity? Because I, frankly, think that this is a model 
that we should encourage and follow around the world. We do not spend 
an extraordinarily great amount of money on foreign aid compared to 
other nations, but we do spend billions of dollars. The bill that I 
introduce suggests that we should take a portion of that money each 
year and dedicate it to microcredit projects, projects like the Grameen 
Bank around the world.

  Many Americans might say, ``Well, Senator, it sounds like a great 
idea, but why should we worry about a woman in Bangladesh?'' One of the 
women in this meeting I attended came up to me afterwards and, with an 
interpreter--she had a baby in her arms --she told me her life story.
  She was 18 years old. The baby she was holding was her third child. 
She told me, quite proudly, that she was not going to have any more 
children. She was practicing birth control. She said, ``My other two 
children are alive.'' Now, that is an amazing statement in the United 
States. You think, ``Well, of course, why would you bring that up?'' 
But in a developing country, it is a very serious concern: Will my baby 
survive? Do I need to have another baby? That is why many of the 
developing countries have such high birth rates.
  She had decided that because of good health techniques, which the 
United States and United Nations had encouraged, that her babies had a 
chance to live, and with the Grameen Bank, she had a chance to improve 
their livelihood. She said, quite proudly, ``I'm going to have a family 
of three and that is all we need and Grameen Bank has really helped to 
make this possible.''
  A tiny loan of $100, a family planning program, some public health 
techniques and this woman is going to limit her family to three. Is 
that important to us in the United States? It is, because in Asia, in 
Africa and around the world, the problem of overpopulation is one that 
is not local or regional, it is a global problem.
  Overpopulation leads to many problems--economic instability, 
political instability, environmental degradation. Look at the nation of 
India today. India is in the headlines because of its recent nuclear 
test, its fears of China and Pakistan. Yet, India is going to be in the 
headlines in a few years because it will be the most populated nation 
in the world. It will pass China. As that teeming population grows and 
creates political pressures, it becomes a concern in the United States.
  I hope we will make modest investments in those foreign aid programs 
that really can improve the quality of life in developing countries and 
can really cope with some of the problems such as overpopulation. 
Microcredit enjoys broad bipartisan support.
  An organization known as RESULTS, which is nationwide but has a very 
significant chapter in Chicago, has encouraged me to introduce this 
legislation, which I am happy to do. There are many people who are 
strong supporters of this. One of them is well known to many of us who 
grew up watching ``The Mary Tyler Moore Show.'' Her name is Valerie 
Harper, also known as Rhoda.
  For some reason, this has become a passion for her, a commitment to 
helping women around the world receive basic credit so that they can 
lift their lives and improve their families. I salute Valerie Harper 
for her leadership on this. Microcredit encourages entrepreneurship and 
free market economic development.
  The repayment rates on these loans are over 95 percent, and it is 
found that $1 million put into microcredit can generate $15 million in 
small loans over 5 years as people get better off and start building 
their own livelihoods. It gives poor people, and especially women, the 
means to meet the needs of their family in areas of health, education, 
and nutrition.
  Our First Lady Hillary Rodham Clinton spoke in Chicago a few years 
ago, and I thought she made a very important observation. She said, if 
you will look at the underdeveloped nations and wonder if they have a 
chance to move toward democracy or toward a free market economy, the 
first place you should look is how they treat women. Are women given an 
opportunity to be educated? Are they given an opportunity to work 
outside the home and develop their skills? How are they treated? I 
think we are finding in countries where microcredit is becoming an 
important part of the program that women are given that chance.
  This bill in particular requires the U.S. Agency for International 
Development to spend $160 million for fiscal year 1999 on its 
Microenterprise Assistance Program, with at least 50 percent of that 
amount dedicated to serving the poorest in the world with microcredit 
loans under $300. We know that these loans are repaid, and we know that 
they are recycled, so we are creating a stock, a basic pool of money 
that can be reinvested in nations around the world to bring them up to 
higher living standards.
  One-fifth of the world's population lives in extreme poverty. 
Microcredit is one of the most effective antipoverty tools in 
existence. I talked to one of my colleagues and asked him to cosponsor 
this bill the other day and he said, ``You know, I like this bill. 
There are so many things we do in foreign aid that end up creating more 
bureaucracies and agencies and studies; this is real, this gives to 
people who need a helping hand the kind of help that they really 
need.''
  Unfortunately, AID has had this program, even though it has not been 
specifically authorized, and they have not funded it at levels that I 
think are adequate. So this legislation will set a standard for how 
much we invest in this program each and every year. Many of my 
colleagues have joined me on this legislation. I hope that others who 
have not will take a look at it. I think they will find that this is a 
reasonable approach, a successful approach, and one where the 
investment in America's foreign aid dollars will not only be in our 
best interest, but in

[[Page S6039]]

the best interest of people around the world who just need a helping 
hand and opportunity. Mr. President, I ask unanimous consent that the 
text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2152

       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 ``Microcredit for Self-
     Sufficiency Act of 1998''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress makes the following findings:
       (1) More than 1,000,000,000 people in the developing world 
     are living in severe poverty.
       (2) According to the United Nations Children's Fund, the 
     mortality for children under the age of 5 is 10 percent in 
     all developing countries and nearly 20 percent in the poorest 
     countries.
       (3) Nearly 33,000 children die each day from malnutrition 
     and disease which is largely preventable.
       (4)(A) Women in poverty generally have larger work loads 
     and less access to educational and economic opportunities 
     than their male counterparts.
       (B) Directly aiding the poorest of the poor, especially 
     women, in the developing world has a positive effect not only 
     on family incomes, but also on child nutrition, health, and 
     education, since women tend to reinvest income in their 
     families.
       (5)(A) The poor in the developing world, particularly 
     women, generally lack stable employment and social safety 
     nets.
       (B) Many women turn to self-employment to generate a 
     substantial portion of their livelihood.
       (C) These poor entrepreneurs are often trapped in poverty 
     because they cannot obtain credit at reasonable rates to 
     build their asset base or expand their otherwise viable self-
     employment activities.
       (D) Many of the poor are forced to pay interest rates as 
     high as 10 percent per day to money lenders.
       (6)(A) On February 2-4, 1997, an international Microcredit 
     Summit was held in Washington, D.C., to launch a plan to 
     expand access to credit for self-employment and other 
     financial and business services to 100,000,000 of the world's 
     poorest families, especially the women of those families, by 
     2005.
       (B) With an average of 5 people to a family, achieving this 
     goal will mean that the benefits of microcredit will reach 
     nearly half of the world's more than 1,000,000,000 absolute 
     poor.
       (7)(A) The poor are able to expand their incomes and their 
     businesses dramatically when they have access to loans at 
     reasonable interest rates.
       (B) Through the development of self-sustaining microcredit 
     programs, poor people themselves can lead the fight against 
     hunger and poverty.
       (8)(A) Nongovernmental organizations such as the Grameen 
     Bank, Accion International, and the Foundation for 
     International Community Assistance (FINCA) have been 
     successful in lending directly to the very poor.
       (B) These institutions generate repayment rates averaging 
     95 percent or higher.
       (9)(A) Microcredit institutions not only reduce poverty, 
     but also reduce the dependency on foreign assistance.
       (B) Interest income on a credit portfolio can be used to 
     pay recurring institutional costs, assuring that the long-
     term development is sustained.
       (10) Microcredit institutions leverage foreign assistance 
     resources because loans are recycled, generating new benefits 
     to program participants.
       (11) The development of sustainable microcredit 
     institutions that provide credit and training, and mobilize 
     domestic savings, are critical to a global strategy of 
     poverty reduction and broad-based economic development.
       (12)(A) In 1994, AID launched a Microenterprise Initiative 
     in consultation with Congress.
       (B) The Initiative was committed to expanding funding for 
     AID's microenterprise programs, provided funding of 
     $137,000,000 for fiscal year 1994, and set a goal that, by 
     the end of fiscal year 1996, half of all microenterprise 
     resources would support programs and institutions providing 
     credit to the poorest with loans under $300.
       (C) In fiscal year 1996, total funding for microenterprise 
     activities fell to $111,000,000 of which only 39 percent was 
     used for programs benefiting the poorest with loans under 
     $300.
       (D) Increased investment in microcredit institutions 
     serving the poorest is critical to achieving the Microcredit 
     Summit's goal.
       (E) AID's funding for microenterprise activities in the 
     developing world should be expanded to $160,000,000 for 
     fiscal year 1999 to parallel the growing capacity of 
     microcredit institutions in the developing world.
       (13) Providing the United States share of the global 
     investment needed to achieve the goal of the Microcredit 
     Summit will require only a modest increase in United States 
     funding for international microcredit programs, with an 
     increased focus on institutions serving the poorest.
       (14)(A) In order to reach tens of millions of the poorest 
     with microcredit, it is crucial to expand and replicate 
     successful microcredit institutions.
       (B) Microcredit institutions need assistance in developing 
     their institutional capacity to expand their services and tap 
     commercial sources of capital.
       (15) PVOs and other nongovernmental organizations have 
     demonstrated competence in developing networks of local 
     microcredit institutions that can reach large numbers of the 
     very poor, and help the very poor achieve financial 
     sustainability.
       (16) Since AID has developed very effective partnerships 
     with PVOs and other nongovernmental organizations, AID should 
     place a priority on investing in PVOs and other 
     nongovernmental organizations through AID's central funding 
     mechanisms.
       (17) By expanding and replicating successful microcredit 
     institutions, AID should be able to assure the creation of a 
     global infrastructure to provide financial services to the 
     world's poorest families.
       (18)(A) AID can provide leadership among bilateral and 
     multilateral development aid agencies as such agencies expand 
     their support of microenterprise for the poorest.
       (B) AID should seek to improve the coordination of efforts 
     at the operational level to promote the best practices for 
     providing financial services to the poor and to ensure that 
     adequate institutional capacity is developed.
       (b) Purposes.--The purposes of this Act are--
       (1) to provide for the continuation and expansion of AID's 
     commitment to develop microcredit institutions;
       (2) to make microenterprise development the centerpiece of 
     the overall economic growth strategy of AID;
       (3) to support and develop the capacity of United States 
     PVOs, and other international nongovernmental organizations 
     to provide credit, savings, and training services to 
     microentrepreneurs; and
       (4) to increase the amount of assistance devoted to 
     providing access to credit for the poorest sector in 
     developing countries, particularly women.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) AID.--The term ``AID'' means the United States Agency 
     for International Development.
       (2) Microcredit, microenterprise, poverty lending; poverty 
     lending portion of mixed programs; mixed programs.--The terms 
     ``microcredit'', ``microenterprise'', ``poverty lending 
     portion of mixed programs'', and ``mixed programs'' have the 
     meaning given such terms under the 1994 Microenterprise 
     Initiative of AID.
       (3) PVOs and other nongovernmental organizations.--The term 
     ``PVOs and other nongovernmental organizations'' means--
       (A) private voluntary organizations (including cooperative 
     organizations), and
       (B) international, regional, or national nongovernmental 
     organizations,

     that are active in the region or country where the project is 
     located and that have the capacity to develop and implement 
     microenterprise programs that are oriented toward working 
     directly with the poor, especially the poorest and women.

     SEC. 4. MICROENTERPRISE ASSISTANCE.

       (a) Authorization.--
       (1) In general.--The President, acting through the 
     Administrator of AID, is authorized to establish programs to 
     provide credit and other assistance for microenterprises in 
     developing countries.
       (2) Use of pvos and other nongovernmental organizations.--
     Programs to provide credit for microenterprises and related 
     activities under this section shall be carried out primarily 
     by United States PVOs and other United States and indigenous 
     nongovernmental organizations, including credit unions, 
     cooperative organizations, and other private financial 
     intermediaries.
       (b) Eligibility Criteria.--The Administrator of AID shall 
     establish criteria for determining which entities described 
     in subsection (a)(2) are eligible to carry out the purposes 
     described in section 2(b). Such criteria shall include the 
     following:
       (1) The extent to which the recipients of credit from the 
     entity lack access to the local formal financial sector.
       (2) The extent to which the recipients of credit from the 
     entity are among the poorest people in the country.
       (3) The extent to which the entity is oriented toward 
     working directly with poor women.
       (4) The extent to which the entity is implementing a plan 
     to become financially self-reliant by charging realistic 
     interest rates to its borrowers.
       (c) Funding Levels for Fiscal Year 1999.--
       (1) In general.--Of the amounts made available to carry out 
     chapter 1 of part I of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2151 et seq.), not less than $160,000,000 of the funds 
     made available for fiscal year 1999 shall be used to provide 
     assistance under this Act. The funds authorized under the 
     preceding sentence shall be in addition to any funds made 
     available in fiscal year 1999 for microenterprise activities 
     in the former Soviet Union and Eastern Europe pursuant to the 
     FREEDOM Support Act and any funds for special assistance 
     initiatives within Europe, the newly independent states of 
     the Former Soviet Union, Asia, and the Near East.
       (2) Additional requirements.--
       (A) Poverty lending.--Of the funds made available under 
     paragraph (1), not less than

[[Page S6040]]

     $80,000,000 shall be used to support poverty lending.
       (B) Support of pvos and other nongovernmental 
     organizations.--Of the funds made available under paragraph 
     (1), not less than $35,000,000 shall be provided through the 
     central funding mechanisms of AID for support of United 
     States PVOs and United States and indigenous nongovernmental 
     organizations.
       (C) Matching grant program.--Of the funds made available 
     under paragraph (1), not less than $10,000,000 shall be used 
     for the private voluntary organizations matching grant 
     program of AID for support of United States PVOs.
       (3) Definitions.--For purposes of this subsection--
       (A) To support poverty lending.--The term ``to support 
     poverty lending'' means--
       (i) funds lent to members of the poverty target population 
     (as defined in subparagraph (B)) in low-income countries in 
     amounts equivalent to $300 or less in 1997 United States 
     dollars; and
       (ii) funds used for institutional development of an entity 
     described in subsection (a)(2), that is engaged in--

       (I) making loans of $300 or less in 1997 United States 
     dollars to members of the poverty target population; or
       (II) the poverty lending portion of a mixed program.

       (B) Poverty target population.--The term ``poverty target 
     population'' means the poorest 50 percent of those 
     individuals living below the poverty line, defined by the 
     national government of the foreign country to which funds are 
     being provided.

     SEC. 5. PROGRAM PERFORMANCE CRITERIA.

       (a) Strengthening of Appropriate Mechanisms.--The 
     Administrator of AID shall--
       (1) strengthen appropriate mechanisms, including mechanisms 
     for central microenterprise programs, for the purpose of 
     strengthening the institutional development of the entities 
     described in section 4(a)(2); and
       (2) develop and strengthen appropriate mechanisms for the 
     purpose of gathering and disseminating the best practice for 
     targeting microcredit to the poorest segment of the 
     population.
       (b) Monitoring System.--In order to sustain the impact of 
     the assistance authorized under section 4, the Administrator 
     of AID shall establish a monitoring system that--
       (1) establishes performance goals for such assistance and 
     expresses such goals in an objective and quantifiable form;
       (2) establishes performance systems or indicators to 
     measure the extent to which projects are achieving such 
     goals; and
       (3) provides a basis for recommendations for adjustments to 
     such assistance to enhance the benefit of such assistance for 
     the very poor, particularly women.
       (c) Additional Monitoring Requirements.--As a part of the 
     monitoring system established under subsection (b), the 
     Administrator of AID--
       (1) using data provided by lending institutions, shall 
     monitor the actual amount of microenterprise credit and the 
     number of loans made available to the poverty target 
     population as a result of each project or program carried out 
     pursuant to this Act;
       (2) using data provided by lending institutions, shall 
     monitor the amount of funding provided pursuant to this Act 
     which is allocated to organizations engaged in making loans 
     of under $300 to the poverty target population, or to the 
     poverty lending portion of mixed programs;
       (3) shall report to Congress annually on the progress in 
     implementing AID's institutional plan of action to achieve 
     the Microcredit Summit goal of expanding access to credit and 
     other financial and business services to 100,000,000 of the 
     world's poorest families, especially the women in those 
     families, by 2005; and
       (4) shall include a summary of the information collected 
     under paragraphs (1) and (2) in AID's annual presentation to 
     Congress.

  Ms. SNOWE. Mr. President, I am pleased to be the lead cosponsor of 
the Microcredit for Self-Sufficiency Act of 1998. This bipartisan 
measure is an excellent means of fighting poverty and allowing the 
world's enterprising poor to escape it.
  Microcredit programs extend small loans to very poor people for self-
employment projects that generate income to allow them to care for 
themselves and their families. These loans are provided without 
collateral to poor people so they can start or expand small businesses. 
Microcredit encourages entrepreneurship and productivity among the 
poorest people in the world and allows them and their families to 
escape from poverty with dignity.
  I have always believed that the foreign assistance expenditures made 
by the United States should provide the maximum benefit in a cost-
efficient manner. Microcredit meets this most important test. 
Microcredit loans are repaid by borrowers at commercial interest rates 
or higher, and repayment rates reach 95% and above. The money invested 
in microcredit programs is continually recycled, allowing lenders to 
reach more people over time.
  This assessment is borne out by the Foundation for International 
Community Assistance (FINCA) which is a non-governmental organization 
working in Latin America, Africa, Asia and the United States. It 
estimates that, over 5 years, $1 million invested in one of their 
microcredit programs generates $15 million in new loans.
  The microcredit concept has been a great success. Around the world, 
small investments have allowed an estimated 10 million poor people to 
begin self-employment ventures as opposed to relying on government 
handouts. Far more families could benefit from microcredit, but do not 
yet have access to such opportunities as this type of lending is not 
typically done by most financial institutions. It is microcredit 
institutions that will undertake such opportunities to provide a poor 
woman in Bangladesh, for example, with the funds to buy an extra cow or 
goat to increase her modest farming output.
  Indeed, one real-life illustration of the success of this program has 
been the Grameen Bank in Bangladesh. In 1976, a man named Muhammad 
Yunus conducted an innovative research endeavor to examine the 
possibility of designing a credit delivery system to provide banking 
services to help the rural poor. These are individuals who want to 
escape poverty but find that conventional sources of lending are 
unavailable to them because they lack the collateral to get a loan.
  The Grameen Bank Project began with the goals of extending banking 
facilities to poor men and women, and creating opportunities for self-
employment. It also aimed to reverse the vicious cycle of low income, 
low savings, and low investment by providing these individuals with 
credit that would yield greater investment and income.
  Today, the Grameen Bank is the largest rural credit institution in 
Bangladesh. It has over two million borrowers--94 percent of whom are 
women. The Grameen Bank covers more than half of all villages in 
Bangladesh and the repayment of its loans, which average $160 in United 
States dollars, is over 95%. The Bank has also helped train 
approximately 4,000 individuals from about 100 nations over the last 10 
years. There have been 223 Grameen style programs replicated in some 58 
nations in the last decade. This success story demonstrates what an 
individual is capable of when given the opportunity to help himself or 
herself escape poverty.
  Take the instance of Amena Begum, who in 1993, lived in poverty with 
her family in a village in Bangladesh. She and her family survived by 
living as squatters and earning money as day laborers or by operating 
micro-businesses in constant debt to loansharks. That same year, she 
convinced her husband to move the family to another village and joined 
the Grameen Bank. A neighbor told her ``We're all poor--or at least we 
all were when we joined. I'll stick up for you because I know you'll 
succeed in business.''
  Well, she was elected secretary of her Grameen Bank group and repaid 
a loan she received to start a chicken and duck raising business. 
Grameen then gave her a second loan and, today, her business is growing 
and providing for her family's basic needs.
  A continent away in Ethiopia another woman, Alemnesh Geressu, her 
landless husband, and their seven children were also struggling. For 
several years, she bought grain from a trader and sold it in the local 
market. However, most of her profit went back to the lender who charged 
more than 10 percent interest per month. With loans from a Catholic 
Relief Services Program, she was able to buy grain at a lower price 
from nearby farmers and make higher profits. Her business grew 
dramatically and she now sells a local beverage, grows vegetables and 
even raised a cow--all in addition to her grain marketing activities.
  Alemnesh now pays back her loan at a commercial rate that is ten 
times less than she used to pay to the local money lenders. She has 
enough to feed her family well and to send two of her children to 
school. Alemnesh says she now has ``more confidence and skills in 
myself and I wish the program could accommodate more women to improve 
their lives.''
  More families need to be touched by such programs. Just last year, at 
the 1997 Global Microcredit Summit, donor nations and international 
institutions established the goal of reaching 100 million of the 
world's poorest families,

[[Page S6041]]

especially the women in those families with microcredit loans by the 
year 2005. I believe that this bill, the Microcredit for Self-
Sufficiency Act of 1998, puts the United States on track to provide its 
share of funding to help achieve this worthwhile goal.
  This bill authorizes not less than $160 million in Fiscal Year 1999 
for the United States Agency for International Development's 
microenterprise program. To ensure that microcredit assistance goes to 
those most in need of assistance, the bill targets at least half of 
these resources to institutions serving the world's poorest families, 
with loans under $300. Further, the bill channels a larger proportion 
of microcredit assistance through effective nongovernmental 
organizations that promote the development and expansion of microcredit 
programs worldwide.
  Mr. President, microcredit programs enjoy broad bipartisan support 
not only because they help millions to work their way out of poverty 
but because they also recycle foreign aid dollars through loan 
repayments. Microcredit programs are self-sustainable, can be 
replicated, and are powerful vehicles for social development.
  This bill would increase the number of families that have access to 
such programs. Microcedit programs would be raised to a higher priority 
among our nation's foreign aid initiatives. And the investments called 
for in this bill will help bring the possibility of financial 
independence to millions of potential entrepreneurs who struggle to 
survive on less than $1 a day.
                                 ______
                                 
      By Mr. DORGAN (for himself and Mr. Reid):
  S. 2153. A bill to require certain expenditures by the Federal 
Reserve System to be made subject to congressional appropriations, to 
prohibit the maintenance of surplus accounts by Federal reserve banks, 
to provide for annual independent audits of Federal reserve banks, to 
apply Federal procurement regulations to the Federal Reserve System, to 
reform the pricing practices of the Federal Reserve System for services 
provided to the domestic banking system, and for other purposes; to the 
Committee on Banking, Housing, and Urban Affairs.


         THE FEDERAL RESERVE FISCAL ACCOUNTABILITY ACT OF 1998

  Mr. DORGAN. Mr. President, today Senator Reid and I are introducing 
legislation to help address a number of budgetary excesses and 
accountability lapses at the Federal Reserve Board.
  When the General Accounting Office (GAO) released its comprehensive 
and historic report about the management of the Federal Reserve 
system--which took over two years to assemble --we learned about 
disturbing financial practices and management failures within the 
Federal Reserve system. The report is packed with examples of where the 
Fed could substantially trim costs, and it makes specific 
recommendations for changes in Fed operations. Unfortunately, the 
Federal Reserve dismissed most of the GAO's recommendations as 
irrelevant or unnecessary.
  The GAO report shows that during the late 1980s and early 1990s, 
Federal Reserve expenditures jumped by twice the rate of inflation, 
while the rest of the federal government has been downsizing. This 
runaway spending is remarkable given Chairman Greenspan's advice about 
the need for belt-tightening in the rest of government.
  The gold-plated hood ornament of the Federal Reserve System's 
questionable practices is, in my judgment, its huge cash surplus 
account that's funded with billions of dollars in taxpayer money to 
protect against losses, despite the fact that the Fed hasn't suffered a 
loss for more than 80 consecutive years. When the GAO's report was 
released a couple of years ago, the Fed had squirreled away some $3.7 
billion into the surplus account, which was up some 79% from its level 
in the late 1980s. Now the Fed has increased the surplus account by 
another 40% to about $5.2 billion--even though the GAO concluded that 
``it is unlikely that the Federal Reserve will ever incur sufficient 
annual losses such that it would be required to use any funds in the 
surplus account.''
  Our bill, the ``Federal Reserve Fiscal Accountability Act of 1998,'' 
includes many of the changes recommended by the GAO. It would do the 
following:
  First, the Federal Reserve is required to immediately return to the 
general fund of the federal Treasury the $5.2 billion of taxpayer's 
money that has unnecessarily accumulated in the Fed's surplus fund. In 
addition, the bill asks the GAO to determine the extent to which the 
Fed's future net earnings should be transferred to the federal Treasury 
each year.
  Second, the GAO, in consultation with the Federal Reserve, will 
identify and report to Congress a list of the Federal Reserve System 
activities that are not related to the making of monetary policy. After 
the report is completed, all non-monetary policy expenditures, as 
identified by the GAO, would be subject to the congressional 
appropriations process.
  We do not intend to inject politics into monetary policy with this 
provision. However, over 90 percent of the Fed's operations have 
nothing to do with interest rate policy according to the GAO. And there 
is simply no good reason why the Fed's non-monetary expenditures are 
immune from the same kind of oversight and review required of other 
federal agencies.
  Third, the regional Federal Reserve banks and the Board of Governors 
will be subjected to annual independent audits. This provision merely 
codifies what the Federal Reserve has been doing for the most part in 
recent practice. The detection of any possible illegal acts must be 
reported to the Comptroller General.
  Fourth, the Federal Reserve will be required to follow the same 
procurement and contracting rules that apply to other federal agencies. 
These rules should help to prevent the examples of favoritism 
highlighted in the GAO report and increase competition among contract 
bidders with the Fed. This requirement ought to substantially reduce 
procurement costs on a system-wide basis.
  Finally, we've made some changes to require the Fed to compete more 
fairly with the private sector in providing a variety of payment system 
services, such as check clearing and transportation to banks and other 
financial institutions.
  I invite my colleagues to join us as cosponsors of this much-needed 
legislation.
  Mr. REID. Mr. President, I rise today with the Senator from North 
Dakota to introduce legislation which we believe will improve fiscal 
management within the Federal Reserve System and will allow private-
sector competitors to compete fairly in ``priced services.'' We assure 
you that nothing in this bill affects monetary policy of the Federal 
Reserve.
  Back in September 1993, Senator Dorgan and I requested a GAO 
investigation of the operations and management of the Federal Reserve 
System. We were concerned because no close examination of the Fed's 
operations had ever been conducted before. The GAO report that was 
issued in 1996 raised serious questions about management within the Fed 
which this bill will address.
  One of the most astonishing findings in the 1996 report was the Fed 
had squirreled-away $3.7 billion in taxpayer money in a slush fund. As 
of January 1998, this amount has now grown to $5.2 billion. This money 
could be used for deficit reduction. The Fed claims the slush fund is 
needed to cover system losses. Since it was created in 1913, however, 
the Fed has never operated at a loss. This bill prohibits maintenance 
of surplus accounts and the surplus funds must be sent to Treasury.
  The bill requires the Comptroller General of U.S. and the Fed Board 
of Governors to identify the functions and activities of the Board and 
each Fed bank which relate to U.S. monetary policy. After six months 
after enactment, all non-monetary policy expenses of Federal Reserve 
System, will be subject to congressional appropriations. The Fed will 
now have to justify its use of operating expenses.
  Because of the Fed's self-financing nature, its operating costs have 
escaped public investigation. In order to be fiscally responsible, all 
activities regarding government finances need to be scrutinized. 
Surprisingly, the GAO study was the very first look into the internal 
operations of the Fed. We think that oversight is needed on the 
workings of this large and influential public entity. While the rest of 
Federal government has tightened its belt and

[[Page S6042]]

down-sized, the Fed enjoyed enormous growth in its operating costs and 
questionable growth in its staffing.
  Clearly, the Fed could do much more to increase its fiscal 
responsibility, particularly as it urges frugal practices for other 
agencies. The picture the GAO report painted of the internal management 
of the Fed is one of conflicting policies, questionable spending, 
erratic personnel treatment, and favoritism in procurement and 
contracting policies.
  To date, there has never been an annual, independent audit of the 
nation's central banking system. This bill provides for annual 
independent audits of the banks, the Board of Governors and the Federal 
Reserve System. The detection of any possible illegal acts must be 
reported to the Comptroller General. The bill requires an annual audit 
of each Federal reserve bank, the Federal reserve board of governors 
and in turn, an audit of the Federal reserve system. This Auditor must 
be a certified public accountant who is totally independent of the Fed. 
An annual audit is fiscally sound policy which would instill greater 
public confidence in our banking system.
  This bill would also would reform the pricing practices of Federal 
Reserve System so that fair competition with private businesses would 
exist. It will eliminate the possibility of accusations of favoritism 
and conflict of interest in procurement and contracting. This 
examination will ensure that the Federal Reserve is competing fairly 
with its private-sector competitors. This matter of fairness becomes 
very important when the agency both competes with the private sector 
and also regulates their competitors.
  The Federal Reserve operates several lines of business, which compete 
with the private sector. These businesses are referred to as ``priced 
services.'' This legislation will ensure that the Federal Reserve is 
accountable for the manner in which these businesses are run and how 
the prices for these services are calculated. The Federal Reserve is 
required by the Monetary Control Act of 1980 to match its revenues with 
its costs so that the prices for services it sells are not subsidized.
  We want to make sure that no accounting or pricing policy hides any 
subsidy. This legislation will benefit anyone who cashes a check in 
this country because it promotes a fair and competitive market place 
for those who provide the many services necessary to process the 
collection of checks. Costs should be fully recovered in the Federal 
Reserve's pricing. These annual audits will ensure that they are 
recovered and will level the playing field for those who can offer 
competitive services
  We usually think of the Federal Reserve in the terms of monetary 
policy, of setting interest rates. I want to make it very clear, I'm 
not attempting to interfere with, or impugn, the monetary policy of the 
Fed. I am simply seeking greater accountability in the operating 
expenses and internal management of one of our most influential 
institutions. I believe that the Federal Reserve could do more to 
increase its cost consciousness and to operate as efficiently as 
possible. This bill will ensure that this happens and I look forward to 
greater discussion of this issue by Congress. I encourage the committee 
to give favorable consideration to our legislation.
                                 ______
                                 
      By Mrs. BOXER:
  S. 2154. A bill to promote research to identify and evaluate the 
health effects of silicone breast implants, and to ensure that women 
and their doctors receive accurate information about such implants; to 
the Committee on Labor and Human Resources.


          Silicone Breast Implant Research and Information Act

 Mrs. BOXER. Mr. President, today I am introducing a bill that 
will make a significant difference in the lives of millions of American 
women--the Silicone Breast Implant Research and Information Act. There 
is one basic reason for this bill: to make sure women have accurate and 
complete information so they can make informed decisions about their 
health.
  Each year, nearly 180,000 women are diagnosed with breast cancer in 
the United States. In total, approximately 2.6 million Americans live 
with breast cancer. When a women undergoes a mastectomy, she faces the 
decision of whether to have reconstructive surgery, and one important 
option she has is to have a silicone breast implant.
  Between 1 and 2 million women in the United States have received 
silicone breast implants over the last 35 years, as part of 
reconstructive surgery after mastectomy, or for cosmetic purposes.
  Many women with silicone implants have come forward with a variety of 
symptoms and atypical illnesses. Although research over the years has 
attempted to get to the bottom of this, we still don't have the answers 
women need and deserve.
  In 1992, the Food and Drug Administration restricted the availability 
of silicone breast implants because it had not received enough evidence 
to prove that these implants are safe. Currently, silicone breast 
implants are only available to women who have had breast cancer surgery 
or who have other special medical needs, such as a severe injury or 
birth defect. Women who need to have an implant replaced for medical 
reasons, such as rupture of the implant, are also eligible.
  These women should have access to the broadest possible treatment 
options--including breast implants. But it is just as essential that 
women can count on sound scientific research regarding the safety of 
implants. It is essential that the Federal Government coordinate its 
efforts on this issue to maximize the use of limited resources.
  This bill contains three components women need to make informed 
decisions about silicone breast implants--research, information, and 
coordination. It gives women not only options, but information and 
peace of mind.
  I am proud to introduce this bill in the Senate, and to be joined by 
Congressman Gene Green, who is introducing this bill in the House of 
Representatives. I ask unanimous consent that the full text 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. 2154

       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 ``Silicone Breast Implant 
     Research and Information Act''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress makes the following findings:
       (1) According to the Institute of Medicine, it is estimated 
     that 1,000,000 to 2,000,000 American women have received 
     silicone breast implants over the last 35 years.
       (2) Silicone breast implants have been used primarily for 
     breast augmentation, but also as an important part of 
     reconstruction surgery for breast cancer or other conditions.
       (3) Women with breast cancer or other medical conditions 
     seek access to the broadest possible treatment options, 
     including silicone breast implants.
       (4) Women need complete and accurate information about the 
     potential health risks and advantages of silicone breast 
     implants so that women can make informed decisions.
       (5) Although the rate of implant rupture and silicone 
     leakage has not been definitively established, estimates are 
     as high as 70 percent.
       (6) According to a 1997 Mayo Clinic study, 1 in 4 women 
     required additional surgery because of their implants within 
     5 years of receiving them.
       (7) In addition to potential systemic complications, local 
     changes in breast tissue such as hardening, contraction of 
     scar tissue surrounding implants, blood clots, severe pain, 
     burning rashes, serious inflammation, or other complications 
     requiring surgical intervention following implantation have 
     been reported.
       (8) According to the Institute of Medicine, concern remains 
     that exposure to silicone or other components in silicone 
     breast implants may result in currently undefined connective 
     tissue or autoimmune diseases.
       (9) A group of independent scientists and clinicians 
     convened by the National Institute of Arthritis and 
     Musculoskeletal and Skin Diseases in April of 1997 addressed 
     concerns that an association may exist between atypical 
     connective tissue disease and silicone breast implants, and 
     called for additional basic research on the components of 
     silicone as well as biological responses to silicone.
       (10) According to many reports, including a study published 
     in the Journal of the National Cancer Institute, the presence 
     of silicone breast implants may create difficulties in 
     obtaining complete mammograms.
       (11) According to a 1995 Food and Drug Administration 
     publication, although silicone breast implants usually do not 
     interfere with a woman's ability to nurse, if the implants 
     leak, there is some concern that the silicone may harm the 
     baby. Some studies suggest a link between breast feeding with 
     implants and problems with the child's esophagus.

[[Page S6043]]

       (b) Purpose.--It is the purpose of this Act to promote 
     research to identify and evaluate the health effects of 
     silicone breast implants, and to ensure that women and their 
     doctors receive accurate information about such implants.
       (c) Rule of Construction.--Nothing in this Act shall be 
     construed to affect any rule or regulation promulgated under 
     the authority of the Food, Drug and Cosmetic Act that is in 
     effect on the date of enactment of this Act relating to the 
     availability of silicone breast implants for reconstruction 
     after mastectomy, correction of congenital deformities, or 
     replacement for ruptured silicone implants for augmentation.

     SEC. 3. EXPANSION AND INTENSIFICATION OF ACTIVITIES REGARDING 
                   SILICONE BREAST IMPLANTS AT THE NATIONAL 
                   INSTITUTES OF HEALTH.

       Part H of title IV of the Public Health Service Act (42 
     U.S.C. 289 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 498C. SILICONE BREAST IMPLANT RESEARCH.

       ``(a) Institute-Wide Coordinator.--The Director of NIH 
     shall appoint an appropriate official of the Department of 
     Health and Human Services to serve as the National Institutes 
     of Health coordinator regarding silicone breast implant 
     research. Such coordinator shall encourage and coordinate the 
     participation of all appropriate Institutes in research on 
     silicone breast implants, including--
       ``(1) the National Institute of Allergy and Infectious 
     Diseases;
       ``(2) the National Institute of Arthritis and 
     Musculoskeletal and Skin Diseases;
       ``(3) the National Institute of Child Health and Human 
     Development;
       ``(4) the National Institute of Environmental Health 
     Sciences;
       ``(5) the National Institute of Neurological Disorders and 
     Stroke; and
       ``(6) the National Cancer Institute.
       ``(b) Study Sections.--The Director of NIH shall establish 
     a study section or special emphasis panel if determined to be 
     appropriate, for the National Institutes of Health to review 
     extramural research grant applications regarding silicone 
     breast implants to ensure the appropriate design and high 
     quality of such research and shall take appropriate action to 
     ensure the quality of intramural research activities.
       ``(c) Clinical Study.--
       ``(1) In general.--The Director of NIH shall conduct or 
     support research to expand the understanding of the health 
     implications of silicone breast implants. Such research 
     should, if determined to be scientifically appropriate, 
     include a multidisciplinary, clinical, case-controlled study 
     of women with silicone breast implants. Such a study should 
     involve women who have had such implants in place for at 
     least 8 years, focus on atypical disease presentation, 
     neurological dysfunction, and immune system irregularities, 
     and evaluate to what extent if any, their health differs from 
     that of suitable controls, including women with saline 
     implants as a subset.
       ``(2) Annual report.--The Director of NIH shall annually 
     prepare and submit to the appropriate Committees of Congress 
     a report concerning the results of the study conducted under 
     paragraph (1).''.

     SEC. 4. EXPANSION AND INTENSIFICATION OF ACTIVITIES REGARDING 
                   SILICONE BREAST IMPLANTS AT THE FOOD AND DRUG 
                   ADMINISTRATION.

       To assist women and doctors in receiving accurate and 
     complete information about the risks of silicone breast 
     implants, the Commissioner on Food and Drugs shall--
       (1) ensure that the toll-free Consumer Information Line and 
     materials concerning breast implants provided by the Food and 
     Drug Administration are available, up to date, and responsive 
     to reports of problems with silicone breast implants, and 
     that timely aggregate data concerning such reports shall be 
     made available to the public upon request and consistent with 
     existing confidentiality standards;
       (2) revise the Administration's breast implant information 
     update to clarify the procedure for reporting problems with 
     silicone implants or with the conduct of adjunct studies, and 
     specifically regarding the use of the Medwatch reporting 
     program;
       (3) require that manufacturers of silicone breast implants 
     update implant package inserts and informed consent documents 
     regularly to reflect accurate information about such 
     implants, particularly the rupture rate of such implants; and
       (4) require that any manufacturer of such implants that is 
     conducting an adjunct study on silicone breast implants--
       (A) amend such study protocol and informed consent document 
     to reflect that patients must be provided with a copy of 
     informed consent documents at the initial, or earliest 
     possible, consultation regarding breast prosthesis;
       (B) amend the informed consent to inform women about how to 
     obtain a Medwatch form and encourage any woman who withdraws 
     from the study, or who would like to report a problem, to 
     submit a Medwatch form to report such problem or concerns 
     with the study and reasons for withdrawing; and
       (C) amend the informed consent document to provide 
     potential participants with the inclusion criteria for the 
     clinical trial and the toll-free Consumer Information number.

     SEC. 5. PRESIDENT'S INTERAGENCY COMMITTEE ON SILICONE BREAST 
                   IMPLANTS.

       (a) Establishment.--There is established an interagency 
     committee, to be known as the President's Interagency 
     Committee on Silicone Breast Implants (referred to in this 
     Act as the ``Committee''), to ensure the strategic 
     management, communication, and oversight of the policy 
     formation, research, and activities of the Federal Government 
     regarding silicone breast implants.
       (b) Composition.--The Committee shall be composed of--
       (1) an individual to be appointed by the President who 
     represents the White House domestic policy staff;
       (2) a representative, to be appointed by the Secretary of 
     Health and Human Services, from--
       (A) the Office of Women's Health at the Department of 
     Health and Human Services;
       (B) the National Institutes of Health;
       (C) the Food and Drug Administration; and
       (D) the Centers for Disease Control and Prevention;
       (3) a representative of the Department of Defense with 
     experience in the Department's breast cancer research 
     program;
       (4) representatives of any other agencies deemed necessary 
     to accomplish the mission of the Committee, including the 
     Social Security Administration if appropriate;
       (5) up to 4 individuals to be appointed by the President 
     from scientists with established credentials and publications 
     in the area of silicone breast implants; and
       (6) 2 women who have or have had silicone breast implants 
     to be appointed by the President.
       (c) Chairperson.--
       (1) In general.--The individual appointed under subsection 
     (b)(2)(A), or other official if the President determines that 
     such other official is more appropriate, shall service as the 
     chairperson of the Committee.
       (2) Duties.--The chairperson of the Committee shall--
       (A) not less than twice each year, convene meetings of the 
     Committee; and
       (B) compile information for the consideration of the full 
     Committee at such meetings.
       (d) Meetings.--The meetings of the Committee shall be open 
     to the public and public witnesses shall be given the 
     opportunity to speak and make presentations at such meetings. 
     Each member of the Committee shall make a presentation to the 
     full Committee at each such meeting concerning the activities 
     conducted by such member or by the entity that such member is 
     representing related to silicone breast implants.
       (e) Administrative Provisions.--
       (1) Terms and vacancies.--A member of the Committee shall 
     serve for a term of 2 or 4 years (rotating terms). A member 
     may be reappointed 2 times, but shall not exceed 8 years of 
     service. Any vacancy in the membership of the Committee shall 
     be filled in the manner in which the original appointment was 
     made and shall not affect the power of the remaining members 
     to carry out the duties of the Committee.
       (2) Compensation; reimbursement of expenses.--Members of 
     the Committee may not receive compensation for service on the 
     Committee. Such members may, in accordance with chapter 57 of 
     title 5, United States Code, be reimbursed for travel, 
     subsistence, and other necessary expenses incurred in 
     carrying out the duties of the Committee.
       (3) Staff; administrative support.--The Secretary of Health 
     and Human Services shall, on a reimbursable basis, provide to 
     the Committee such staff, administrative support, and other 
     assistance as may be necessary for the Committee to 
     effectively carry out the duties under this section.
       (4) Conflict of interest.--The members of the Committee 
     shall not be in violation of any Federal conflict of interest 
     laws.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.
                                 ______
                                 
      By Mr. BINGAMAN:
  S. 2155. A bill to provide restitution of the economic potential lost 
to communities dependent on Spanish and Mexican Land Grants in New 
Mexico due to inadequate implementation of the 1848 Treaty of Guadalupe 
Hidalgo; to the Committee on Energy and Natural Resources.


             Fair Deal for Northern New Mexico Act of 1998

   Mr. BINGAMAN. Mr. President, today, I introduce a bill to 
resolve a long standing controversy between many citizens of my State 
of New Mexico, and their government.
  In 1848, the United States entered into a treaty with Mexico to end 
the Mexican/American War called the Treaty of Guadalupe-Hidalgo. In 
that treaty, Mexico ceded an enormous tract of land that was to become 
the American Southwest including the State of New Mexico. In return the 
Treaty stipulated that the property rights of the Mexican citizens who 
lived in the area, and who were to become new citizens of the United 
States, would be protected.
  We must recall that these new citizens had had a long, and sometimes 
ancient, connection to the land. The Native American tribal peoples who 
had lived there for thousands of years, had

[[Page S6044]]

become citizens of Spain and then Mexico. Also many of those new 
citizens of Spanish descent had a family heritage of living on the this 
land dating back 250 years to 1598, when the Spanish colonial capital 
in New Mexico was established at San Juan Pueblo. They had built towns 
and cities, churches, and vast irrigation systems for their farms.
  Unfortunately, the treaty provisions protecting title to land were 
not well and evenly implemented. It has been fairly well documented by 
scholars such as Professor Malcolm Ebright at the University of New 
Mexico, and Professor Emeritus Michael Meyer from the University of 
Northern Arizona, that many people lost title to their land who should 
have been protected by the treaty. In some cases this was due to faulty 
surveying by the Surveyor General, in some cases it was due to a lack 
of knowledge by American Territorial Courts about how title was 
acquired under Spanish and Mexican law, and most egregiously people 
sometimes lost their land through outright fraud by government 
officials and land speculators.
  As I said earlier, the implementation of the treaty was not uniform. 
In some areas property rights were fairly well adhered to, but in 
others legitimate titles were wiped out wholesale. A group of people 
that were particularly hurt in this process were the relatively poor 
subsistence farmers and ranchers living in northern New Mexico. These 
new American citizens were easy prey for land speculators. Not only 
were they learning a new language and legal system, but usually they 
did not have the financial resources to defend their property rights in 
the courts. In some cases, people were told that if they signed a given 
document that they would be assured the continued use of their land 
forever. However in reality, what they were signing were quit claim 
deeds, giving title to their land to some nefarious speculator.
  The ramifications of this history have caused bitter disputes and 
economic hardship in northern New Mexico for generations. The issue is 
still relevant for many New Mexicans feel their government has an 
obligation to compensate them for their loss of land. In many cases 
they may be right.
  Mr. President, after 150 years it may not be possible or practicable 
to revisit the thousands of title claims originally made in 1848. So 
much time has passed, and so many title transfers have taken place 
since then that the legal review could be a never ending legal maze. 
However, Spanish and Mexican law recognized community as well as 
individual land titles. Under a grant from the King of Spain or the 
Mexican government, whole communities had a claim on certain lands. 
These community land grants form a distinct, and often better 
documented, subset of the claims made under the Treaty of Guadalupe-
Hidalgo. Given that this is a smaller, more defined group of claims, 
and because of they affect whole communities, it may be possible to 
settle these long standing claims and provide a sense of justice to 
people in northern New Mexico.
  Last year former Representative Richardson introduced a bill, H.R. 
260, to create a commission to study and recommend settlement of these 
claims. His successor in office, Representative Redmond has carried on 
this issue in his own bill, H.R. 2538. These bills have been useful in 
bringing the issue to national attention and I commend both of my 
colleagues for introducing them.
  Mr. President, my bill, which I call the Fair Deal for Northern New 
Mexico Act, builds upon the efforts in the other body. For example, the 
House bill is focused on an exhaustive legal review of the various 
community land grant claims and whether land should be transferred back 
to the claimants. My bill also has a review of these claims, but 
acknowledges that after 150 years, that we may never be able to reach 
legal certainty in some cases. We may find that a claim is colorable, 
that it has a legal basis, but not exactly what is owed. Also, we may 
find that the other people in the community currently either own the 
land in question, or if it's federal land, they may have long standing 
leases on which they depend. For that reason, my bill creates a package 
of options for settlement of these claims with the involvement and 
support of the whole community that would be affected.
  I won't dwell on the differences between this bill and the one in the 
House because I see this bill as a broadening and strengthening of that 
effort. Let me just run briefly what my bill would do, and my hope is 
that as this works its way through committee and on the floor that 
we'll reach an agreement with the House sponsors on legislation that 
will resolve this long standing legal dispute in New Mexico.
  My bill has three key components: the creation of county-wide 
settlement committees, the reasonable but expedited time-frame, and a 
broad range of settlement options. First, it would create seven member 
settlement committees, one for each county in New Mexico in which their 
are these community land grant claims. To get the federal agencies 
actively involved in a solution to the issue, the Secretaries of 
Agriculture and Interior would each have a representative on these 
committees. The State Lands Commissioner would represent the interests 
of the State's educational trust fund. Finally, each county commission 
would appoint four representatives, at least one of which must be a 
Tribal member if there is an Indian Pueblo within that county, and at 
least one of which is a non-Indian heir to a Spanish or Mexican Land 
Grant.
  Second, the bill tries to keep the issue on the front burner by 
limiting the settlement committees to a set schedule. The settlement 
committees would have ninety days to publish a set of guidelines on to 
how to document a land claim, and then people would have one year to 
file their claims. These committees would then have three years in 
which to review the claims and develop a proposed settlement to be 
submitted to Congress.
  The whole process from creation of these committees to proposals to 
Congress would take about five years. I think this very important. It 
should be long enough to develop some solid settlement proposals, but 
it is a short enough time-frame that the people in New Mexico will see 
action before they just become frustrated.
  Finally, the settlement committees would have a number of options to 
choose from to create a settlement that will satisfy the claims and the 
communities in which they are made. As with the House bill, one options 
would be to transfer land directly back to a particular community land 
grant. However, the committee might propose that federal lands be set 
aside for under special designations for community use, or that lands 
should be transferred to local municipalities to benefit everyone in 
the community. Further, a settlement committee could recommend that a 
package of economic develop grants or tuition scholarships would better 
meet the current needs of claimants and the community than a transfer 
of whatever land might be available. All of these options would be 
tools available to a county settlement committee to use in crafting a 
settlement that the people of that county would find to be fair and 
just.
  Mr. President, it is time for the United States to respond to its 
citizens on this issue, to bring this controversy to closure, and to 
give the citizens of northern New Mexico a sense that justice has been 
done so that they can move forward both socially and economically 
without this cloud from the past hanging over them. I think this bill 
will move us forward towards those goals. I would like to call on the 
Committee on Energy and Natural Resources to hold hearings on this bill 
at the earliest possible time. I hope to work with the rest of the New 
Mexico delegation and the other members of Congress to pass good 
legislation regarding the issue.
  Mr. President, I ask unanimous consent that the full 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. 2155

       Be it enacted by the Senate and the House of 
     Representatives of the United States of America in Congress 
     assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Fair Deal for Northern New 
     Mexico Act of 1998.''

     SEC. 2. PURPOSE, DEFINITIONS AND FINDINGS.

       (a) Purpose.--
       The purpose of this Act is to create a mechanism for the 
     settlement of Spanish and Mexican land grant claims in New 
     Mexico as claimed under the Treaty of Guadalupe-Hildalgo.
       (b) Definitions.--For Purposes of this Act:

[[Page S6045]]

       (1) Treaty of Guadalupe-hidalgo.--The term ``Treaty of 
     Guadalupe-Hidalgo'' means the Treaty of Peace, Friendship, 
     Limits, and Settlement (Treaty of Guadalupe Hidalgo), between 
     the United States and the Republic of Mexico, signed February 
     2, 1848 (TS 207; 9 Bevans 791);
       (2) Community land grant.--The term ``community land 
     grant'' means a village, town, settlement, or pueblo 
     consisting of land held in common (accompanied by lesser 
     private allotments) by three or more families under a grant 
     from the King of Spain (or his representative) before the 
     effective date of the Treaty of Cordova, August 24, 1821, or 
     from the authorities of the Republic of Mexico before May 30, 
     1848, in what became the State of New Mexico, regardless of 
     the original character of the grant.
       (3) Land grant claim.--The term ``land grant claim'' means 
     a claim of title to land by a community land grant under the 
     terms of the Treaty of Guadalupe-Hidalgo.
       (4) Eligible Descendant.--The term ``eligible descendant'' 
     means a descendant of a person who--
       (A) was a Mexican citizen before the Treaty of Guadalupe-
     Hildalgo;
       (B) was a member of a community land grant; and
       (C) became a United States citizen within ten years after 
     the effective date of the Treaty of Guadalupe-Hidalgo, May 
     30, 1848, pursuant to the terms of the Treaty.
       (5) Settlement committee.--The term ``settlement 
     committee'' refers to committee, or one of the county 
     specific subcommittees as appropriate, authorized in Section 
     3 of this Act.
       (6) Reconstituted.--The term ``reconstituted,'' with regard 
     to a valid community land grant, means restoration to full 
     status as a municipality with rights properly belonging to a 
     municipality under State law, including the nontaxability of 
     municipal property (common lands) and the right of local 
     self-government.
       (c) Findings.--Congress Finds the Following:
       (1) New Mexico has a unique and complex history regarding 
     land ownership due to the substantial number of Spanish and 
     Mexican land grants that were an integral part of the 
     colonization of New Mexico before the United States acquired 
     the area in the Treaty of Guadalupe-Hidalgo.
       (2) Under the terms of the Treaty of Guadalupe-Hidalgo, 
     these land grant claims were recognized as valid property 
     claims under United States' law.
       (3) Several studies, including the New Mexico Land Grant 
     Series published by the University of New Mexico, have 
     documented that the Treaty of Guadalupe-Hidalgo in regards to 
     these land grant claims in New Mexico was never well 
     implemented. Whether because of a lack of knowledge of 
     Spanish land law on the part of the judicial system in the 
     then new Territory of New Mexico, whether because of 
     inadequate or conflicting documentation of these claims, or 
     whether it was due to sharp legal practices, many of the 
     former citizens of Mexico, and then new citizens of the 
     United States, lost title to lands that had been guaranteed 
     to them by treaty.
       (4) Following the United States' war with Mexico, the 
     economy of the Territory of New Mexico was dependent on the 
     use of land resources, and that held true for much of this 
     century as well. When the land grant claimants lost title to 
     their land, the predominantly Hispanic communities in 
     northern New Mexico lost a keystone to their economy. The 
     effects of this loss have had long lasting economic 
     consequences and are in part the cause that these communities 
     remain some of the poorest in the United States.
       (5) The history of the implementation of the Treaty of 
     Guadalupe-Hidalgo has been a source of continuing controversy 
     for generations and has left a lingering sense of injustice 
     in the communities in northern New Mexico, which has 
     periodically lead to armed conflicts.
       (6) The government of the United States has an obligation 
     to try to find an equitable remedy for the inadequate 
     implementation of the Treaty of Guadalupe-Hidalgo and the 
     consequences that has had on the communities and people of 
     New Mexico. This should be done as expeditiously as possible. 
     However, reconstructing the one hundred and fifty year 
     history of land title claims and transfers in these 
     communities is likely to prove lengthy and costly. In some 
     cases it may never be possible to adequately reconstruct the 
     title history.
       (7) The Secretary of the Interior has had a experience in 
     administratively developing settlement packages to resolve 
     large and complex Tribal water rights claims as an 
     alternative to lengthy and expensive litigation. This 
     experience may be invaluable in resolving the large, complex, 
     and sometimes conflicting Spanish and Mexican land grant 
     claims in northern New Mexico.
       (8) The history of colonial Spanish America, the system of 
     land distribution under Spanish and Mexican law, and the 
     subsequent impacts to that system following the transfer of 
     territory from Mexico to the United States under the Treaty 
     of Guadalupe-Hidalgo is a requisite body of knowledge in 
     determining an appropriate settlement of land grant claims. 
     It is also an integral part of the national history and 
     culture of the United States of America and, as such, 
     deserves formal recognition and interpretation by our 
     institutions of historical preservation.

     SEC. 3. CREATION OF SETTLEMENT COMMITTEES.

       (A) Within one hundred and eighty (180) days of enactment 
     of this Act, the Secretary of the Interior working through 
     the Bureau of Land Management and the Bureau of Indian 
     Affairs, and the and the Secretary of Agriculture working 
     through the Forest Service are hereby authorized and directed 
     to establish a ``Settlement Committee'' to develop 
     comprehensive settlements for land grant claims on a county 
     by county basis.
       (b) The Settlement Committee will be comprised of separate 
     subcommittees for each county in which there are land grant 
     claims in New Mexico.
       (c) Each county subcommittee shall be comprised of seven 
     members including: (1) a representative of the Secretary of 
     the Interior; (2) a representative of the Secretary of 
     Agriculture; (3) a representative of the State Commissioner 
     of Public Lands; and (4) four residents of the particular 
     county in question. The four county representatives are to be 
     appointed their county commissions: Provided, That in 
     counties with Federally recognized Native American Indian 
     Tribes that at least one county representative shall be an 
     enrolled member of a tribe whose reservation pueblo 
     boundaries come within that county: Provided further, That at 
     least one county representative shall be an eligible 
     descendent who is not an enrolled member of a Native American 
     Indian Tribe.
       (d) Each member shall be appointed for the life of the 
     Settlement Committee. A vacancy in the Settlement Committee 
     shall be filled in the manner in which the original 
     appointment was made.

     SEC. 4. SUBMISSION OF LAND GRANT CLAIMS.

       (a) Within ninety (90) days of the creation of the 
     settlement committee it shall establish a set of guidelines 
     for the submission of land grant claims, and publish these 
     guidelines within papers of general circulation in each of 
     the counties in New Mexico.
       (b) Land grant claims must be submitted to the appropriate 
     county settlement committee within one year of the 
     publication of the guidelines.

     SEC. 5 REVIEW AND SETTLEMENT PACKAGE.

       (a) The settlement committee for each county shall review 
     all of the submitted claims in the county and, based on the 
     documentation at its disposal, make an initial determination 
     concerning their potential validity including: possible past 
     conveyances, the accuracy of the boundaries of the land 
     claimed, and the number of eligible heirs affected.
       (b) Upon completing this review, the settlement committee 
     shall develop a proposed settlement package in satisfaction 
     of land grant claims within that county. In creating the 
     settlement package, the settlement committee shall take into 
     account: the degree of certainty with which it has determined 
     that various claims are valid, the impacts, including 
     economic and social impacts, that any unfulfilled land 
     grant claims may have had on the communities within that 
     county, the relative benefits of various settlement 
     options on those communities, and whether there is a legal 
     entity that can accept settlement. The elements of a 
     proposed settlement package may include, but are not 
     limited to:
       (1) Restoration of lands to a given land grant community or 
     communities;
       (2) Reconstitution of a given land grant community or 
     communities;
       (3) The setting aside of certain lands for communal use for 
     fuel wood, building materials, hunting, recreation, etc. 
     These lands could be set aside as special managerial units 
     within existing federal land management agencies or 
     transferred to local county, tribal, or municipal, 
     governments;
       (4) Trust funds for scholarships or home and business 
     loans; or
       (5) Land for commercial use with the proceeds to be 
     deposited into the trust funds.
       (c) The settlement committee shall complete its review and 
     proposed settlement package within three years of the 
     deadline for submission of land grant claims under this Act, 
     and submit them in a report to the Senate Committee on Energy 
     and Natural Resources and the Senate Committee on Indian 
     Affairs, and to the House Resources Committee. Any proposal 
     that require action by the government of the State of New 
     Mexico shall be submitted to the Governor, to the Speaker of 
     the State House of Representatives, and to the President Pro 
     Tem of the State Senate for New Mexico.

     SEC. 6. ADMINISTRATION OF THE SETTLEMENT COMMITTEE.

       (a) To complete its tasks the settlement committee may use 
     a variety of methods to gather information and to build 
     community consensus on the form of a proposed settlement 
     package, including: the use of town meetings, holding formal 
     hearings, the solicitation of written comments, and the use 
     of mediators trained in alternative dispute resolution 
     methods. The settlement committee is also authorized to hire 
     consultants as it may choose for historical, economic, and 
     legal analysis. In its efforts to develop a consensus on a 
     settlement package, the Settlement Committee is not subject 
     to the Federal Advisory Committee Act (Pub. L. 92-462; 5 
     U.S.C. Ap. 2 Sec. 1).
       (b) Gifts, Bequests, and Devises.--The Settlement Committee 
     may accept, use, and dispose of gifts, bequests, or devises 
     of services or property, both real and personal, for the 
     purpose of aiding or facilitating the work of the Settlement 
     Committee. Gifts, bequests, or devises of money and proceeds 
     from sales of other property received as

[[Page S6046]]

     gifts, bequests, or devises shall be deposited in the 
     Treasury and shall be available for disbursement upon order 
     of the Settlement Committee. For purposes of the Federal 
     income, estates, and gift taxes, property accepted under this 
     subsection shall be considered as a gift, bequest, or devise 
     to the United States.
       (c) Administrative Support Services.--Upon the request of 
     the Settlement Committee, the Administrator of General 
     Services shall provide to the Settlement Committee, on a 
     reimbursable basis, the administrative support services 
     necessary for the Settlement Committee to carry out its 
     responsibilities under this Act.
       (d) Immunity.--The Settlement Committee is an agency of the 
     United States for the purpose of part V of title 18, United 
     States Code (relating to the immunity of witnesses).
       (e) Compensation.--Members of the Settlement Committee 
     shall each be entitled to receive the daily equivalent of 
     level V of the Executive Schedule for each day (including 
     travel time) during which they are engaged in the actual 
     performance of duties vested in the Settlement Committee.

     SEC. 7. SPANISH LAND GRANT STUDY PROGRAM.

       (a) The Secretary of the Smithsonian Institution and the 
     Settlement Committee working in conjunction with the 
     University of New Mexico, and Highlands University shall 
     establish a Spanish Land Grant Study program with a research 
     archive at the Onate Center in Alcalde, New Mexico. This 
     program shall be designed to meet the requirements of the 
     Smithsonian Institution's Affiliated Institutions Program.
       (b) The purposes of the Spanish Land Grant Study Program 
     are to assist the Settlement Committee in the performance of 
     its activities under section 5, and to archive and interpret 
     the history of land distribution in the southwestern United 
     States under Spanish and Mexican law, and the changes to this 
     land distribution system following the transfer of territory 
     from Mexico to the United States under the terms of the 
     Treaty of Guadalupe-Hidalgo in 1848.

     SEC. 8. TERMINATION.

       The Settlement Committee shall terminate on 180 days after 
     submitting its final report to Congress under section 5.

     SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated $1,500,000 for each 
     of the fiscal years 1999 through 2003 for the purpose of 
     carrying out the activities of the Settlement Committee 
     created in section 3, and the Spanish Land Grant Study 
     Program created section 7.
                                 ______
                                 
      By Mr. BOND (for himself, Mr. Grassley, Mr. Lott, Mr. Breaux, Mr. 
        Burns, Mr. Mack, Mr. Bingaman, Mr. Frist, Mr. Murkowski, Mrs. 
        Murray, Mr. Roberts, Mr. Hollings, Mr. Dodd, Mr. Faircloth, Ms. 
        Collins, Mr. Jeffords, Mr. Thomas, Mr. D'Amato, Mr. Hatch, Mr. 
        Shelby, Mr. Ashcroft, Mr. Kempthorne, Mr. Robb, Mr. Baucus, Mr. 
        Cleland, Mr. Craig, and Mr. Santorum):
  S.J. Res. 50. A joint resolution to disapprove the rule submitted by 
the Health Care Financing Administration, Department of Health and 
Human Services on June 1, 1998, relating to surety bond requirements 
for home health agencies under the Medicare and Medicaid programs; to 
the Committee on Finance.

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