[Congressional Record Volume 144, Number 115 (Thursday, September 3, 1998)]
[Senate]
[Pages S9914-S9916]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        TREASURY AND GENERAL GOVERNMENT APPROPRIATIONS ACT, 1999

  The Senate continued with the consideration of the bill.
  The PRESIDING OFFICER. The Chair recognizes the Senator from Oregon.
  Mr. WYDEN. Mr. President, I ask unanimous consent to speak for up to 
5 minutes on the legislation before us.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. WYDEN. Mr. President, I rise this afternoon to express my desire 
to work further with the Chair of the subcommittee and ranking minority 
member on a particularly important provision affecting our YMCAs, our 
YWCAs and other charitable organizations that do so much good work 
throughout the country. Throughout the recess, I heard continually from 
constituents who enjoy these important organizations in Oregon that 
they are concerned about a provision in the committee report 
accompanying this legislation that deals with the tax-exempt

[[Page S9915]]

status of these organizations. I would say that I am of the view that 
these nongovernmental groups can provide critically needed services in 
our country, particularly as it relates to juveniles: preventing crime, 
drug use and unwholesome activities in which some kids do get caught 
up.
  As many in this body know, Senator Smith and I have talked at some 
length about approaches to deal with the tragedy that we saw at 
Thurston High School earlier this year, when a young person entered the 
school with a gun. A number of our young constituents were killed and 
injured. It seems to me one of the very best antidotes to this kind of 
juvenile violence is the important work done in afterschool programs by 
these organizations. I am concerned that a provision in this 
legislation could curtail some of the important activities that the Y's 
and Jewish Community Centers and other important organizations provide.
  What has transpired is that in 1984 the Internal Revenue Service 
issued a technical ruling making it clear that fitness activities 
provided by these and other organizations remain charitable as long as 
the entity, the nonprofit, serves a broad segment of the community. 
These organizations, the YMCAs, the YWCAs, the Jewish Community Centers 
across our country do provide critically needed services, particularly 
to low-income individuals. They have philanthropic missions related to 
health and education, community welfare. My concern is a provision 
relating to the tax-exempt status of these organizations, in effect, 
could prompt a review that would have a chilling effect over the entire 
range of work done by these organizations.
  I have organized a letter with nine Members of this body, a 
bipartisan letter--Senator Mack, Senator Sarbanes, Senator Roberts, 
Senator Grassley, Senator Murray, Senator Durbin, Senator Kennedy, 
Senator Mikulski and myself, to make it clear to the managers of this 
legislation that we want to work with them on a bipartisan basis to 
make sure that the important work done by these community organizations 
is not in jeopardy. It seems to me, as we look to the 21st century, 
trying to make sure the budget is balanced, still meeting the needs of 
our communities and particularly the young people, that these are the 
very programs that are most likely to make a difference.
  I had thought the question of the tax status of these groups was 
settled law in 1984. I note I am unaware of any abuses since 1984 or of 
any violations by the ``Y's'' with respect to this charitable 
exemption, and it is for that reason that I do ask this afternoon to 
work further with both the majority and the minority to make sure the 
tax status of these groups is protected and the important work they are 
doing continues to go forward and, in fact, expands in the years ahead.
  Mr. President, I ask unanimous consent the letter I referred to be 
printed in the Record, and I yield the floor.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                                                  U.S. Senate,

                                Washington, DC, September 3, 1998.
     Hon. Ben Nighthorse Campbell,
     Chairman,

     Hon. Herb Kohl,
     Ranking Democrat,
     Subcommittee on Treasury, Postal Service and General 
         Government, Committee on Appropriations, U.S. Senate, 
         Washington, DC.
       Dear Senators Campbell and Kohl: We are writing to express 
     our serious reservations about a provision in the committee 
     report accompanying the FY99 Treasury/Postal Appropriations 
     bill relating to tax-exempt health clubs.
       The provision directs the Internal Revenue Service (IRS) to 
     review its standards relating to ``tax-exempt health clubs'' 
     and report on ``regulatory changes that may be required to 
     assure that tax-exempt health clubs are not unfairly 
     competing against private sector organizations.'' In 1984, 
     the IRS issued a technical ruling clarifying that adult 
     fitness is a charitable activity as long as the entity serves 
     a broad segment of the community. Moreover, under current tax 
     law, to the extent that a charity makes a profit from a trade 
     or business unrelated to the exercise of its charitable 
     purpose, it will be subject to federal income tax 
     (``unrelated business income tax'' or ``UBIT'') on the 
     profit. The statute and regulations on UBIT are very clear 
     and prevent any charity from gaining a competitive advantage 
     over a for-profit corporation.
       Not-for-profit organizations, including the YMCAs, YWCAs 
     and Jewish Community Centers (JCCs) that serve all ages, 
     incomes and abilities likely could be adversely affected by 
     this provision. The health and fitness services offered by 
     these organizations are only one component of a whole range 
     of programs available for a community. These programs are an 
     integral part of the organization's philanthropic mission 
     related to the health, education and welfare of the 
     community, and are a significant component in financing such 
     activities. Furthermore, participation in their health and 
     fitness programs is not limited to adults: people of all ages 
     participate in them. Among the services they provide that 
     would be threatened are child care, juvenile delinquency 
     prevention, substance abuse and senior nutrition programs.
       We appreciate your efforts in the July 29 colloquy in which 
     you stated your intent to have the IRS focus on adult fitness 
     provided by tax-exempt organizations that serve only adults. 
     However, we remain concerned that this provision still could 
     negatively affect the millions of Americans--young and old--
     who participate in these community organizations. We ask that 
     in the conference report you ensure that the interests of 
     these individuals are protected and that the invaluable 
     programs offered by not-for-profit organizations are not 
     unfairly curtailed by unnecessary and overly burdensome 
     government regulation.
           Sincerely,
         Connie Mack, Paul S. Sarbanes, Pat Roberts, Chuck 
           Grassley, Ron Wyden, Barbara A. Mikulski, Ted Kennedy, 
           Dick Durbin, Patty Murray.
  The PRESIDING OFFICER. If there be no further amendments to be 
proposed, the question is on the engrossment and third reading of the 
bill.
  The bill was ordered to be engrossed for a third reading, and was 
read the third time.
  Mr. WYDEN. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. CAMPBELL. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Under the previous order, the Chair lays before the Senate H.R. 4104, 
which the clerk will report.
  The assistant legislative clerk read as follows:

       A bill (H.R. 4104) making appropriations for the Treasury 
     Department, the United States Postal Service, the Executive 
     Office of the President, and certain Independent Agencies, 
     for fiscal year ending September 30, 1999, and for other 
     purposes.

  The PRESIDING OFFICER. Under the previous order, the text of S. 2312, 
as amended, is substituted for the House text, the bill will be read 
for the third time.
  The bill was read a third time.
  Mr. CAMPBELL. Mr. President, before asking for the yeas and nays, I 
would like to say a few words in closing about S. 2312.
  As many of you may have noticed, this bill has not been an easy one 
to craft to stay within our funding constraints. We started on this 
bill before the August break and we are still at it. I believe in some 
instances, we have probably had to rob Peter to pay Paul because this 
bill carries programs which are all worthy and all important to 
everyone in this Nation.
  We have had to make some difficult choices between the programs in 
the bill and it has been easy to do because the goal is to emerge with 
an acceptable balance while still doing the right thing and staying 
within our funding limits.
  I believe though, however, we can honestly say we have done our very 
best to accommodate everyone's wishes and everyone's requests, even 
though it has not been easy.
  As always, the ranking member, Senator Kohl, has been great to work 
with, and without him, we could not have completed this bill. So I 
thank the Senator from Wisconsin. I want him to know that his 
friendship and professional efforts and courtesy have meant a great 
deal to me.

  In addition, I would like to take a moment to thank his staff--
Barbara Retzlaff, who has been so diligent working on this bill the 
entire year, as well as Paul Bock and Liz Blevins for their support on 
the floor during our consideration. And I also thank our staff--Pat 
Raymond, Tammy Perrin and Lula Edwards, who spent a lot of evenings, 
long evenings at that, trying to make sure the bill came out the way we 
wanted it to.
  In spite of our difficulties, I believe that we have put forth a good 
bill

[[Page S9916]]

which deserves the support of the Senate. I urge my colleagues to vote 
in favor of this bill.
  Mr. KOHL addressed the Chair.
  The PRESIDING OFFICER. The Chair recognizes the Senator from 
Wisconsin.
  Mr. KOHL. Thank you, Mr. President.
  As the Chairman mentioned, this completes the floor action on the 
Treasury-General Government bill. By moving this bill forward, we will 
ensure that important financial operations and law enforcement programs 
funded through this bill will be fully operational at the start of the 
fiscal year.
  I would like to take this opportunity to again thank Chairman 
Campbell and his staff--Pat Raymond, Tammy Perrin, and Lula Edwards. 
Their fair and able handling of this bill makes it possible for us to 
move to conference where I hope all outstanding issues will be resolved 
quickly.
  I would also like to take this opportunity to commend Secretary Rubin 
for presenting a budget request that was fair. And, I want to thank him 
and his staff for working with us, throughout the process, to make sure 
that important Treasury programs receive adequate funding.
  Thank you, Mr. President.
  Mr. LOTT addressed the Chair.
  The PRESIDING OFFICER. The majority leader is recognized.
  Mr. LOTT. I commend the chairman of the Treasury-Postal Service 
Subcommittee of the Appropriations Committee for the work he has done 
on this. It was a little bifurcated. We did work on it back before the 
recess, but he continued to work, working with his colleague from 
Wisconsin, and they produced a bill that I obviously believe has broad 
support. I thank them for their willingness to cooperate and go ahead 
and get this completed today. They have done good work, and I hope that 
they will get into conference early next week and have a conference 
report completed that we can send to the President in short order.
  So I thank them for their efforts and thank my colleagues on both 
sides of the aisle for allowing us to get through this list of 
amendments we had and complete this legislation.
  Mr. President, I believe we are ready to go to a vote, but after the 
vote we will go into recess--temporary recess--so that we can hear, 
before the Armed Services and Foreign Relations Committees, from Scott 
Ritter, a senior inspector of UNSCOM in Iraq.
  I yield the floor.
  Mr. CAMPBELL. Mr. President, I have one further unanimous consent 
request. I ask unanimous consent that after passage of H.R. 4104, S. 
2312 be indefinitely postponed.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. CAMPBELL. I believe that concludes the debate, Mr. President. I 
ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The yeas and nays were ordered.
  The PRESIDING OFFICER. The bill having been read the third time, the 
question is, Shall the bill pass? The yeas and nays have been ordered. 
The clerk will call the roll.
  The legislative clerk called the roll.
  Mr. NICKLES. I announce that the Senator from Alaska (Mr. Murkowski) 
is necessarily absent.
  I also announce that Senator from North Carolina (Mr. Helms) is 
absent because of illness.
  I further announce that, if present and voting, the Senator from 
North Carolina (Mr. Helms) would vote ``yea.''
  Mr. FORD. I announce that the Senator from New Mexico (Mr. Bingaman) 
and the Senator from Hawaii (Mr. Inouye) are necessarily absent.
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 91, nays 5, as follows:

                      [Rollcall Vote No. 260 Leg.]

                                YEAS--91

     Abraham
     Akaka
     Allard
     Baucus
     Bennett
     Biden
     Bond
     Boxer
     Breaux
     Bryan
     Bumpers
     Burns
     Byrd
     Campbell
     Chafee
     Cleland
     Coats
     Cochran
     Collins
     Conrad
     Coverdell
     Craig
     D'Amato
     Daschle
     DeWine
     Dodd
     Domenici
     Dorgan
     Durbin
     Enzi
     Faircloth
     Feinstein
     Ford
     Frist
     Glenn
     Gorton
     Graham
     Gramm
     Grams
     Grassley
     Gregg
     Hagel
     Harkin
     Hatch
     Hollings
     Hutchison
     Inhofe
     Jeffords
     Johnson
     Kempthorne
     Kennedy
     Kerrey
     Kerry
     Kohl
     Kyl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lott
     Lugar
     Mack
     McCain
     McConnell
     Mikulski
     Moseley-Braun
     Moynihan
     Murray
     Nickles
     Reed
     Reid
     Robb
     Roberts
     Rockefeller
     Roth
     Santorum
     Sarbanes
     Sessions
     Shelby
     Smith (OR)
     Snowe
     Specter
     Stevens
     Thomas
     Thompson
     Thurmond
     Torricelli
     Warner
     Wellstone
     Wyden

                                NAYS--5

     Ashcroft
     Brownback
     Feingold
     Hutchinson
     Smith (NH)

                             NOT VOTING--4

     Bingaman
     Helms
     Inouye
     Murkowski
  The bill (H.R. 4104), as amended, was passed.
  (The text of the bill (H.R. 4104) will be printed in a future edition 
of the Record.)
  The PRESIDING OFFICER. Under the previous order, the Senate insists 
on its amendment and requests a conference with the House.
  The Presiding Officer (Mr. Enzi) appointed Mr. Campbell, Mr. Shelby, 
Mr. Faircloth, Mr. Stevens, Mr. Kohl, Ms. Mikulski, and Mr. Byrd 
conferees on the part of the Senate.

                          ____________________