[Congressional Record Volume 145, Number 73 (Wednesday, May 19, 1999)]
[Senate]
[Pages S5604-S5606]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. MURRAY:
  S. 1085. A bill to amend the Internal Revenue Code of 1986 to modify 
the treatment of bonds issued to acquire renewable resources on land 
subject to conservation easement; to the Committee on Finance.


        THE COMMUNITY FORESTRY AND AGRICULTURE CONSERVATION ACT

  Mrs. MURRAY. Mr. President, I am pleased to rise today to introduce 
the ``Community Forestry and Agriculture Conservation Act of 1999.''
  Mr. President, all across America we are losing hundreds of thousands 
of acres of productive forest and agricultural land to urban uses. And 
with the loss of these lands, we also lose some of our ability to 
protect watersheds, fish and wildlife, and the rural character and 
economies of many communities.
  Local governments and non-profit organizations, including growing 
numbers of land trusts, are responding to these issues, and to citizen 
demand that private land provide more public benefit. They have made 
significant progress by purchasing land outright or protecting it 
through conservation easements.
  Unfortunately, communities and non-profits simply do not have the 
resources to meet public demand for open space protection. And the most 
traditional means of protection--outright purchase of land or 
conservation easements--are inadequate to protect larger tracts of 
forest and agricultural land.
  Mr. President, the bill I am introducing today would give communities 
a flexible and dynamic tool to protect forest and agricultural land. In 
fact, some communities, including at least one in the State of 
Washington, are already mobilizing to take advantage of the legislation 
I am introducing today.
  The concept behind this bill is straightforward.
  Under my bill, a group of community members and leaders who are 
interested in protecting a tract of forest or farm land would work with 
one or more landowners to reach a voluntary sale agreement at fair 
market value.
  The community group would then form a non-profit 501(c)(3) 
corporation with a diverse board of directors. The board of directors 
could include landowners, conservationists, financial and business 
leaders, forestry and agricultural professionals, and others interested 
in managing the land.
  The non-profit corporation would develop an agreement on what land 
would be acquired and at what price.
  In addition, the corporation would develop a binding management plan. 
The management plan would provide for continued harvest of trees and 
crops, but in a manner that exceeds federal and state conservation 
standards.
  A local government would then issue tax exempt revenue bonds on 
behalf of the non-profit corporation to fund the acquisition of the 
land. The bonds would be held and serviced by the non-profit with 
revenue raised by the continued harvest of trees or crops in accordance 
with the management plan. The non-profit corporation would also hold 
the title to the land.
  In forming the non-profit corporation, community leaders would be 
required to meet strict standards before bonds were issued. These 
standards will ensure that public benefits are achieved and abuse is 
prevented.
  First, the non-profit corporation must draft a land management plan 
that exceeds state and federal law.
  Second, the corporation must enter the land into a permanent 
conservation easement.
  Third, the corporation must secure the commitment of a third party 
501(c)3 organization or governmental entity to hold the conservation 
easement. It must also provide the third party with the financial 
resources needed to monitor compliance with the easement.
  Last, the corporation must establish a diverse board of directors. No 
more than 20 percent of the board members can represent a for-profit 
entity that does business with the non-profit.
  Mr. President, let me explain why my bill is necessary to make this 
new approach possible. Current law allows for the issuance of tax-
exempt debt on behalf of non-profit corporations, such as hospitals and 
higher education facilities that require large amounts of capital. This 
bill ensures forest and agricultural based non-profits can enjoy the 
same benefits.
  Once the interested parties complete the management plan, issue the 
bonds, acquire the land and place it in trust, landowners, local 
governments, the environment, and the public all benefit.
  Mr. President, foresters and agricultural producers are often land-
rich and cash-poor. My bill would allow landowners to capitalize some 
or all of their assets. It would also allow landowners to continue 
harvesting timber from the land but at a lower harvest level. While the 
non-profit could manage harvest activities on the land, it is more 
likely it will contract out for these services. This will allow the 
original landowner or other interested natural resource businesses to 
manage and receive economic benefits from the land. In addition, this 
tool will allow the landowner to escape the management problems that 
arise when urban growth begins to encroach on forestry or agricultural 
operations.
  Local governments benefit by continuing to receive tax dollars that 
result from economic activities on the land.
  And the land receives better stewardship because broad-based 
conservation efforts can be undertaken at a lower cost than under more 
traditional land acquisition methods. Through these conservation 
easements, non-profits will have the financial flexibility to apply 
lighter resource management practices on the land.
  This is an important point. The lower cost of capital and non-profit 
land management would allow communities to increase conservation 
benefits. I know many landowners and companies would prefer to increase 
conservation practices. However, they also have to meet the demands of 
the bottom-line and stockholders. By reducing these financial 
pressures, we can provide a higher level of resource protection on 
these lands.
  And the higher levels of resource protection can respond to the 
greatest environmental needs in that region. For example, in my home 
state of Washington, the non-profit corporation could increase buffer 
areas along streams to protect salmon runs and engage in habitat 
restoration. These steps would help my state respond to salmon listings 
under the Endangered Species Act.
  Finally, the American people benefit the most. They will have more 
environmental protection and recreational opportunities without 
sacrificing an important part of their community's economic and tax 
base. This tool will also allow communities to promote local ownership 
of their land and to better control their destiny.
  Mr. President, in the last three years, Congress and the Clinton 
Administration have been discussing more and more the issues of 
``sprawl'' and ``livability.'' We are finally starting to see at the 
national level a recognition that the federal government's actions play 
an important role in how communities grow. These are not new ideas--
they have been discussed at the local and state levels for decades. I 
am

[[Page S5605]]

pleased to see Congress and the Administration joining this discussion.
  We have heard and seen many good ideas and proposals for improving 
the quality of life in our communities, from greater open space 
protection to improved transportation infrastructure. I support many of 
these efforts.
  However, my bill addresses one aspect of this discussion that is not 
drawing as much attention in the press. And that is the destruction of 
farm and forest economies in many regions that are rapidly urbanizing. 
In the Puget Sound region, growth has choked the economic viability of 
forest and agricultural operations in many areas. Concerned citizens 
and governments are forced to try to save forest and farm land on a 
smaller, more piecemeal basis. As successful and rewarding as many of 
these efforts have been, we need to give communities the option to save 
larger tracts of land that cannot be acquired outright. By doing so, we 
can maintain viable farm and forest operations near growing urban 
areas, and help strengthen the connection between rural producers and 
urban consumers.
  Today, Representatives Dunn and Tanner are introducing this 
legislation in the House. I am pleased to join their effort on this 
important issue by sponsoring companion legislation.
  In closing, I want to emphasize that this is an approach that every 
Senator can support. It is bipartisan. It is voluntary. It maintains 
private land ownership and embraces private landowners. It limits 
government involvement but establishes proper enforcement to prevent 
abuse. It protects the environment. It provides local control.
  Mr. President, I urge my colleagues to join me to pass the Community 
Forestry and Agriculture Conservation Act. 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. 1085

       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 ``Community Forestry and 
     Agriculture Conservation Act of 1999''.

     SEC. 2. TREATMENT OF BONDS ISSUED TO ACQUIRE RENEWABLE 
                   RESOURCES ON LAND SUBJECT TO CONSERVATION 
                   EASEMENT.

       (a) In General.--Section 145 of the Internal Revenue Code 
     of 1986 (defining qualified 501(c)(3) bond) is amended by 
     redesignating subsection (e) as subsection (f) and by 
     inserting after subsection (d) the following new subsection:
       ``(e) Bonds Issued To Acquire Renewable Resources on Land 
     Subject to Conservation Easement.--
       ``(1) In general.--If--
       ``(A) the proceeds of any bond are used to acquire land (or 
     a long-term lease thereof) together with any renewable 
     resource associated with the land (including standing timber, 
     agricultural crops, or water rights) from an unaffiliated 
     person,
       ``(B) the land is subject to a conservation restriction--
       ``(i) which is granted in perpetuity to an unaffiliated 
     person that is--

       ``(I) a 501(c)(3) organization, or
       ``(II) a Federal, State, or local government conservation 
     organization,

       ``(ii) which meets the requirements of clauses (ii) and 
     (iii)(II) of section 170(h)(4)(A),
       ``(iii) which exceeds the requirements of relevant 
     environmental and land use statutes and regulations, and
       ``(iv) which obligates the owner of the land to pay the 
     costs incurred by the holder of the conservation restriction 
     in monitoring compliance with such restriction,
       ``(C) a management plan which meets the requirements of the 
     statutes and regulations referred to in subparagraph (B)(iii) 
     is developed for the conservation of the renewable resources, 
     and
       ``(D) such bond would be a qualified 501(c)(3) bond (after 
     the application of paragraph (2)) but for the failure to use 
     revenues derived by the 501(c)(3) organization from the sale, 
     lease, or other use of such resource as otherwise required by 
     this part,

     such bond shall not fail to be a qualified 501(c)(3) bond by 
     reason of the failure to so use such revenues if the revenues 
     which are not used as otherwise required by this part are 
     used in a manner consistent with the stated charitable 
     purposes of the 501(c)(3) organization.
       ``(2) Treatment of timber, etc.--
       ``(A) In general.--For purposes of subsection (a), the cost 
     of any renewable resource acquired with proceeds of any bond 
     described in paragraph (1) shall be treated as a cost of 
     acquiring the land associated with the renewable resource and 
     such land shall not be treated as used for a private business 
     use because of the sale or leasing of the renewable resource 
     to, or other use of the renewable resource by, an 
     unaffiliated person to the extent that such sale, leasing, or 
     other use does not constitute an unrelated trade or business, 
     determined by applying section 513(a).
       ``(B) Application of bond maturity limitation.--For 
     purposes of section 147(b), the cost of any land or renewable 
     resource acquired with proceeds of any bond described in 
     paragraph (1) shall have an economic life commensurate with 
     the economic and ecological feasibility of the financing of 
     such land or renewable resource.
       ``(C) Unaffiliated person.--For purposes of this 
     subsection, the term `unaffiliated person' means any person 
     who controls not more than 20 percent of the governing body 
     of another person.''
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

                         ADDITIONAL COSPONSORS


                                 S. 26

  At the request of Mr. Feingold, the name of the Senator from New 
Mexico (Mr. Bingaman) was added as a cosponsor of S. 26, a bill 
entitled the ``Bipartisan Campaign Reform Act of 1999''.


                                 S. 135

  At the request of Mr. Durbin, the name of the Senator from Maryland 
(Mr. Sarbanes) was added as a cosponsor of S. 135, a bill to amend the 
Internal Revenue Code of 1986 to increase the deduction for the health 
insurance costs of self-employed individuals, and for other purposes.


                                 S. 247

  At the request of Mr. Johnson, his name was added as a cosponsor of 
S. 247, a bill to amend title 17, United States Code, to reform the 
copyright law with respect to satellite retransmissions of broadcast 
signals, and for other purposes.


                                 S. 285

  At the request of Mr. McCain, the name of the Senator from 
Mississippi (Mr. Cochran) was added as a cosponsor of S. 285, a bill to 
amend title II of the Social Security Act to restore the link between 
the maximum amount of earnings by blind individuals permitted without 
demonstrating ability to engage in substantial gainful activity and the 
exempt amount permitted in determining excess earnings under the 
earnings test.


                                 S. 296

  At the request of Mr. Frist, the name of the Senator from Mississippi 
(Mr. Lott) was added as a cosponsor of S. 296, a bill to provide for 
continuation of the Federal research investment in a fiscally 
sustainable way, and for other purposes.


                                 S. 309

  At the request of Mr. McCain, the name of the Senator from Indiana 
(Mr. Lugar) was added as a cosponsor of S. 309, a bill to amend the 
Internal Revenue Code of 1986 to provide that a member of the uniformed 
services shall be treated as using a principal residence while away 
from home on qualified official extended duty in determining the 
exclusion of gain from the sale of such residence.


                                 S. 344

  At the request of Mr. Bond, the name of the Senator from Colorado 
(Mr. Allard) was added as a cosponsor of S. 344, a biil to amend the 
Internal Revenue Code of 1986 to provide a safe harbor for determining 
that certain individuals are not employees.


                                 S. 345

  At the request of Mrs. Murray, her name was added as a cosponsor of 
S. 345, a bill to amend the Animal Welfare Act to remove the limitation 
that permits interstate movement of live birds, for the purpose of 
fighting, to States in which animal fighting is lawful.


                                 S. 348

  At the request of Ms. Snowe, the name of the Senator from New 
Hampshire (Mr. Gregg) was added as a cosponsor of S. 348, a bill to 
authorize and facilitate a program to enhance training, research and 
development, energy conservation and efficiency, and consumer education 
in the oilheat industry for the benefit of oilheat consumers and the 
public, and for other purposes.


                                 S. 409

  At the request of Mr. Johnson, his name was added as a cosponsor of 
S. 409, a bill to authorize qualified organizations to provide 
technical assistance and capacity building services to microenterprise 
development organizations and programs and to disadvantaged 
entrepreneurs using funds from the Community Development Financial 
Institutions Fund, and for other purposes.

[[Page S5606]]

                                 S. 459

  At the request of Mr. Breaux, the name of the Senator from 
Pennsylvania (Mr. Santorum) was added as a cosponsor of S. 459, a bill 
to amend the Internal Revenue Code of 1986 to increase the State 
ceiling on private activity bonds.


                                 S. 512

  At the request of Mr. Gorton, the name of the Senator from Virginia 
(Mr. Robb) was added as a cosponsor of S. 512, a bill to amend the 
Public Health Service Act to provide for the expansion, 
intensification, and coordination of the activities of the Department 
of Health and Human Services with respect to research on autism.


                                 S. 541

  At the request of Ms. Collins, the name of the Senator from Arkansas 
(Mr. Hutchinson) was added as a cosponsor of S. 541, a bill to amend 
title XVIII of the Social Security Act to make certain changes related 
to payments for graduate medical education under the medicare program.


                                 S. 573

  At the request of Mr. Leahy, the name of the Senator from Hawaii (Mr. 
Inouye) was added as a cosponsor of S. 573, a bill to provide 
individuals with access to health information of which they are a 
subject, ensure personal privacy with respect to health-care-related 
information, impose criminal and civil penalties for unauthorized use 
of protected health information, to provide for the strong enforcement 
of these rights, and to protect States' rights.


                                 S. 580

  At the request of Mr. Frist, the name of the Senator from Arkansas 
(Mr. Hutchinson) was added as a cosponsor of S. 580, a bill to amend 
title IX of the Public Health Service Act to revise and extend the 
Agency for Healthcare Policy and Research.


                                 S. 620

  At the request of Mr. Sarbanes, the name of the Senator from Delaware 
(Mr. Biden) was added as a cosponsor of S. 620, a bill to grant a 
Federal charter to Korean War Veterans Association, Incorporated, and 
for other purposes.


                                 S. 625

  At the request of Mr. Grassley, the name of the Senator from North 
Carolina (Mr. Helms) was added as a cosponsor of S. 625, a bill to 
amend title 11, United States Code, and for other purposes.


                                 S. 636

  At the request of Mr. Reed, the name of the Senator from Illinois 
(Mr. Durbin) was added as a cosponsor of S. 636, a bill to amend title 
XXVII of the Public Health Service Act and part 7 of subtitle B of 
title I of the Employee Retirement Income Security Act of 1974 to 
establish standards for the health quality improvement of children in 
managed care plans and other health plans.


                                 S. 706

  At the request of Ms. Snowe, the name of the Senator from California 
(Mrs. Feinstein) was added as a cosponsor of S. 706, a bill to create a 
National Museum of Women's History Advisory Committee.


                                 S. 751

  At the request of Mr. Leahy, the name of the Senator from New Mexico 
(Mr. Bingaman) was added as a cosponsor of S. 751, a bill to combat 
nursing home fraud and abuse, increase protections for victims of 
telemarketing fraud, enhance safeguards for pension plans and health 
care benefit programs, and enhance penalties for crimes against 
seniors, and for other purposes.


                                 S. 818

  At the request of Mr. DeWine, the name of the Senator from North 
Carolina (Mr. Helms) was added as a cosponsor of S. 818, a bill to 
require the Secretary of Health and Human Services to conduct a study 
of the mortality and adverse outcome rates of medicare patients related 
to the provision of anesthesia services.


                                 S. 820

  At the request of Mr. Chafee, the name of the Senator from Kentucky 
(Mr. McConnell) was added as a cosponsor of S. 820, a bill to amend the 
Internal Revenue Code of 1986 to repeal the 4.3-cent motor fuel excise 
taxes on railroads and inland waterway transportation which remain in 
the general fund of the Treasury.


                                 S. 841

  At the request of Mr. Kennedy, the name of the Senator from Hawaii 
(Mr. Inouye) was added as a cosponsor of S. 841, a bill to amend title 
XVIII of the Social Security Act to provide for coverage of outpatient 
prescription drugs under the medicare program.


                                 S. 890

  At the request of Mr. Wellstone, the name of the Senator from 
Nebraska (Mr. Hagel) was added as a cosponsor of S. 890, a bill to 
facilitate the naturalization of aliens who served with special 
guerrilla units or irregular forces in Laos.


                                 S. 902

  At the request of Mr. Torricelli, the name of the Senator from 
California (Mrs. Feinstein) was added as a cosponsor of S. 902, a bill 
to amend title XIX of the Social Security Act to permit States the 
option to provide medicaid coverage for low-income individuals infected 
with HIV.


                                 S. 918

  At the request of Mr. Kerry, the names of the Senator from Ohio (Mr. 
DeWine), the Senator from West Virginia (Mr. Rockefeller), and the 
Senator from Oklahoma (Mr. Inhofe) were added as cosponsors of S. 918, 
a bill to authorize the Small Business Administration to provide 
financial and business development assistance to military reservists' 
small business, and for other purposes.
  At the request of Mr. Kerry, the name of the Senator from Oregon (Mr. 
Wyden) was withdrawn as a cosponsor of S. 918, supra.


                                S. 1007

  At the request of Mrs. Murray, her name was added as a cosponsor of 
S. 1007, a bill to assist in the conservation of great apes by 
supporting and providing financial resources for the conservation 
programs of countries within the range of great apes and projects of 
persons with demonstrated expertise in the conservation of great apes.


                                S. 1067

  At the request of Mr. Rockefeller, the name of the Senator from 
Missouri (Mr. Bond) was added as a cosponsor of S. 1067, a bill to 
promote the adoption of children with special needs.


                                S. 1070

  At the request of Mr. Bond, the name of the Senator from New Mexico 
(Mr. Domenici) was added as a cosponsor of S. 1070, a bill to require 
the Secretary of Labor to wait for completion of a National Academy of 
Sciences study before promulgating a standard, regulation or guideline 
on ergonomics.


                           Amendment No. 355

  At the request of Mr. Frist, the names of the Senator from Maine (Ms. 
Collins) and the Senator from Alabama (Mr. Sessions) were added as 
cosponsors of Amendment No. 355 proposed to S. 254, a bill to reduce 
violent juvenile crime, promote accountability by rehabilitation of 
juvenile criminals, punish and deter violent gang crime, and for other 
purposes.


                           Amendment No. 358

  At the request of Mr. Wellstone, the names of the Senator from 
Maryland (Ms. Mikulski) and the Senator from Iowa (Mr. Harkin) were 
added as cosponsors of Amendment No. 358 proposed to S. 254, a bill to 
reduce violent juvenile crime, promote accountability by rehabilitation 
of juvenile criminals, punish and deter violent gang crime, and for 
other purposes.
  At the request of Ms. Landrieu, her name was added as a cosponsor of 
amendment No. 358 proposed to S. 254, supra.


                           Amendment No. 361

  At the request of Mr. Robb, his name was added as a cosponsor of 
amendment No. 361 proposed to S. 254, a bill to reduce violent juvenile 
crime, promote accountability by rehabilitation of juvenile criminals, 
punish and deter violent gang crime, and for other purposes.
  At the request of Mr. Sessions, his name was added as a cosponsor of 
Amendment No. 361 proposed to S. 254, supra.

                          ____________________