[Congressional Record Volume 145, Number 114 (Thursday, August 5, 1999)]
[Senate]
[Pages S10356-S10357]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  COMMUNITY AND OPEN SPACES BONDS ACT

  Mr. HATCH. Mr. President, I rise today as an original cosponsor of 
the community and Open Spaces Bonds Act (COSB). This bill provides 
assistance to our local communities in their continuous efforts to 
improve the quality of life through flexible, zero-cost financing 
options for protecting open spaces.
  As the acreage of open space in this country continues to decline, we 
find ourselves in a battle of time against widespread urban sprawl. The 
American citizens have spoken out, demanding that this body take the 
action necessary to protect the remaining open spaces and outdoor 
recreational opportunities that they have enjoyed since the founding of 
this great nation. The America Farmland Trust estimates that we have 
been losing farmland at approximately 3,000 acres per day since 1970. 
This growth is not only damaging to the agricultural industry, but all 
those who wish to enjoy this nations natural bounties.
  I believe it is our obligation to respond to and remedy this 
situation. For this reason, I would like to thank my colleague Senator 
Baucus for taking the initiative in proposing legislation that provides 
incentives to those private land owning citizens who wish to protect 
our valuable open spaces. Our proposal makes available up to $1.9 
billion annually for five years in bonding authority to state, local, 
and tribal governments. This voluntary approach allows the local 
community to lead the charge in projects that will improve the quality 
of life of its citizens, while the Federal government simply plays a 
supporting role. I think that is the way to do it.
  These community based projects will be supported through proceeds 
from the sales of the bonds. The issuers would repay the principal at 
the end of 15 years, but the Federal government would pay the issuers' 
interest or borrowing costs through the tax credit during that period. 
As an incentive, the holder of the bond would get an annual tax credit 
equal to the corporate average AA bond rating, as posted by the 
Treasury, multiplied by the face amount of the bond.

[[Page S10357]]

  This bill will spur even greater innovation than we already see at 
the local level in dealing with growth and urban sprawl issues. The 
flexibility of this proposal creates many opportunities in an often 
limiting system to raise funding for land purchases. We simply want to 
give communities a system that is entirely local driven, unlike that 
currently offered by the Federal government. The most dynamic aspect of 
this bill is that it restores to local governments the power to 
influence the future of their communities.
  The Community Open Space Bonds Act can help respond to the need to 
protecting our beautiful lands and precious water supply, and I 
strongly urge my colleagues to join in this fight against the raging 
war of time. Action must be taken now, so that our children will enjoy 
the natural wonders we have come to love.

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