[Congressional Record Volume 146, Number 74 (Wednesday, June 14, 2000)]
[Extensions of Remarks]
[Page E1011]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 CONSERVATION TRUST FUND OF PUERTO RICO

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                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                        Wednesday, June 14, 2000

  Mr. CRANE. Mr. Speaker, I would like to address an issue that we have 
been working on for almost five years. I am speaking about the funding 
question for the Conservation Trust Fund of Puerto Rico. As my 
colleagues may recall, in last year's Ticket to Work and Work 
Improvement Act tax bill, we included language that increased the 
amount of excise tax on rum covered over to Puerto Rico and the Virgin 
Islands from $10.50 to $13.25. We have written statutory language that 
mandated one-sixth of the increase would be directed toward the 
endowment fund of the Conservation Trust. During the negotiations on 
the bill it was decided that this language would not be included when 
the government of Puerto Rico committed to transfer these funds to the 
Conservation Trust. I am pleased to say that the first payment has in 
fact been transferred to the Trust. This extension of the rum tax 
increase will last for thirty months. At that time we will have to 
revisit the question whether we have fulfilled our commitment to fully 
endow the Trust Fund.
  Recently we passed the Africa-CBI Trade bill and inserted language 
that will accelerate the payments of the rum tax cover over to Puerto 
Rico and the Virgin Islands. I want to make sure that everyone clearly 
understands that this new legislation does not in any way undermine the 
intent of Congress in the previous tax bill. We expect the Conservation 
Trust Fund of Puerto Rico to continue getting one-sixth of the increase 
at the same time the government of Puerto Rico receives its payments 
and that those funds be segregated by the Trust into an account that is 
solely for the purpose of building up the endowment fund. These amounts 
are not to be used for normal operational expenses or for expenditures 
for new projects or acquisitions.
  I know that the Secretary of the Interior has prepared a Memorandum 
of Understanding to be signed by himself and the Governor of Puerto 
Rico memorializing the commitments made to Congress in this matter. To 
my knowledge this document has not been signed at this date, and I urge 
the governor and the Secretary of the Interior to do so at their 
earliest opportunity.

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