[Congressional Record Volume 155, Number 90 (Tuesday, June 16, 2009)]
[Senate]
[Pages S6652-S6654]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. WYDEN (for himself and Mr. Merkley):
  S. 1270. A bill to modify the boundary of the Oregon Caves National 
Monument, and for other purposes; to the Committee on Energy and 
Natural Resources.
  Mr. WYDEN. Mr. President, part of my job as a Senator from a 
beautiful State like Oregon is to keep that beauty protected for the 
next generation of Oregonians. Today it is my pleasure to introduce 
three bills to add environmental protections for three of Oregon's 
special natural resources. I have introduced two of these bills before. 
The Oregon Caves National Monument Boundary Adjustment Act of 2009 and 
the Lower Rogue Wild and Scenic Rivers Act of 2009 were introduced in 
2008 but unfortunately there was not an opportunity to move them beyond 
the Energy Committee. This year, I look forward to moving these two 
bills forward to final passage, along with a third bill, the Devil's 
Staircase Wilderness Act of 2009. I am pleased to introduce two of 
these bills with my colleague from Oregon, Senator Merkley. My 
colleague in the House of Representatives, Representative DeFazio, will 
also be introducing companion legislation today, joined by 
Representatives Blumenauer and Wu.
  The first bill I am introducing, S. 1270, the Oregon Caves National 
Monument Boundary Adjustment Act of 2009, will expand the boundary of 
the National Park Service land to create the Oregon Caves National 
Monument and Preserve. Under this bill, the stunning majesty of both 
the underground and the above-ground treasures found at this National 
Monument site will be protected for future generations.
  Established by a Presidential Proclamation in 1909, the Oregon Caves 
National Monument is a 480-acre natural wonder located in the 
botanically-rich Siskiyou Mountains. It was originally set aside 
because of its unusual scientific interest and importance. Oregon Caves 
has a unique geologic history and is particularly known as the longest 
marble cave open to the public west of the Continental Divide.

[[Page S6653]]

  A perennial stream, the ``River Styx''--an underground portion of 
Cave Creek--flows through part of the cave and is one of the dynamic 
natural forces at work in the National Monument. The cave ecosystem 
provides habitat for numerous plants and animals, including some state-
sensitive species such as Townsend's big-eared bats and several cave-
adapted species of arthropods found only in only one place on Earth: 
the Oregon Caves. The caves possess a significant collection of 
Pleistocene aged fossils, including jaguar and grizzly bear. In 1995, 
grizzly bear bones found in the cave were estimated to be at least 
50,000 years old, the oldest known from either North or South America.
  Today, I am proposing legislation that will enhance the protection 
for treasures such as these found within the Oregon Caves National 
Monument and that will increase public recreation opportunities by 
adding surrounding lands to the National Park Service site. My bill 
would expand the park site by 4,084 acres to include the entire Cave 
Creek Watershed, and transfer management of the land from the U.S. 
Forest Service to the National Park Service. The newly acquired lands 
will be designated as a Preserve so that hunters can still use them. In 
addition, my legislation would designate at least 9.6 miles of rivers 
and tributaries as Wild, Scenic, or Recreational, under the federal 
Wild and Scenic Rivers Act, including the first subterranean Wild and 
Scenic River, the River Styx. This bill would also authorize the 
retirement of existing grazing allotments.

  When the Oregon Caves National Monument was established in 1909, the 
focus was on the unique subsurface resources, and the small rectangular 
boundary was thought to be adequate to protect the cave. Through the 
years, however, scientific research and technology have provided new 
information about the cave's ecology, and the impacts from the surface 
environment and the related hydrological processes. The current 480-
acre boundary simply cannot adequately protect this cave system. The 
National Park Service has formally proposed a boundary modification 
numerous times, first in 1939, again in 1949, and most recently in 
2000. Today, I am happy to again propose legislation to enact that 
boundary adjustment into law.
  The Oregon Caves National Monument makes a unique contribution to 
Southern Oregon's economy and to the national heritage. The Monument 
receives over 80,000 visitors annually and a larger Monument boundary 
will help showcase more fully the recreational opportunities on the 
above-ground lands within the proposed Monument boundary. The 
Monument's above-ground lands in the Siskiyou Mountains possess a 
beauty and diversity that is unique in America, and indeed the world. 
The Oregon Caves National Monument's approximately 500 plants, 5,000 
animals, 2,000 fungi, and over a million bacteria per acre that make 
the spot have one of the highest concentrations of biological diversity 
anywhere.
  Expanding the Monument's boundary will also preserve the caves' 
resources by protecting the water that enters the cave. By granting the 
National Park Service the ability to safeguard these resources, and by 
providing for a voluntary donation of grazing permits, my legislation 
will be able to better protect these resources. Over the decades, the 
number of allowed livestock has diminished, but the livestock still has 
an impact on the drinking water supply and the water quality of this 
natural gem. The current grazing permitee, Phil Krouse's family, has 
had the Big Grayback Grazing Allotment, 19,703 acres, since 1937. Mr. 
Krouse has publicly stated that he would look favorably upon retirement 
with private compensation for his allotment, which my legislation will 
allow to proceed.
  The second bill I am introducing is, 1271, the Lower Rogue Wild and 
Scenic Rivers Act of 2009, which expands the Wild and Scenic River 
protections to Oregon's iconic Rogue River and its tributaries.
  The Rogue River is one of our nation's premier recreation 
destinations, famous for its free flowing waters and the many rafting 
and fishing opportunities it offers. The headwaters of this great river 
start in one of Oregon's other great gems--Crater Lake National Park--
and ultimately empty into the Pacific Ocean near Gold Beach on the 
southwest Oregon coast. Along that stretch, the Rogue River flows 
through one of the most spectacular canyons and diverse natural areas 
in the U.S. The river is home to runs of coho, spring and fall chinook, 
winter and summer steelhead, and has the special distinction of being 
one of only a few rivers in the country with runs of green sturgeon.
  The Rogue River received its first protections in the original Wild 
and Scenic Rivers Act in 1968. A narrow stretch of land was protected 
along the river banks. Since that time, a great deal has been learned 
about the importance of protecting the tributaries that feed into the 
main stem of the Rogue. Protecting the Wild and Scenic tributaries to 
the Rogue River is essential to protecting the backbone of one of 
Oregon's most important sport and commercial fisheries.
  In 2008, American Rivers named the Rogue and its tributaries as the 
second most endangered river in the U.S. I'm hoping to change that 
today by introducing legislation to protect 143 miles of Wild and 
Scenic tributaries that feed the Rogue River with cold clean water. The 
protected tributaries would include Galice Creek, Little Windy Creek, 
Jenny Creek, Long Gulch--and 36 other tributaries of the Rogue.
  By protecting the tributaries that feed this mighty river, I hope 
that future generations can enjoy the Rogue River as Oregonians and 
visitors to our State do today.
  The third bill I am introducing is, 1272, the Devil's Staircase 
Wilderness Act of 2009, which designates approximately 29,650 acres 
surrounding the Wasson Creek area as Wilderness.
  Devil's Staircase personifies what Wilderness in Oregon is all about. 
It is rugged, wild, pristine and remote. So rugged, in fact, that land 
managers have repeatedly withdrawn this landslide-prone forest from all 
timbering activity and intrepid hikers must follow elk and deer trails 
and keep a sharp eye on a compass. The proposed Devil's Staircase 
Wilderness is the finest old-growth forest remaining in Oregon's Coast 
Range, boasting huge Douglas fir, cedar and hemlock and a wealth of 
threatened and endangered species. Wildlife include threatened marbled 
murrelets and the highest density of Northern Spotted Owls in the 
coastal mountains.
  My proposal would not only protect the forests surrounding Wasson 
Creek but would also designate approximately 4.5 miles of Franklin 
Creek and approximately 10.1 miles of Wasson Creek as Wild and Scenic 
Rivers. Franklin Creek, a critically important tributary to the Umpqua 
River, is one of the best examples of pristine salmon habitat left in 
Oregon. Together with Wasson Creek, these two streams in the Devil's 
Staircase area deserve Wild and Scenic River designation by Congress.
  The ecological significance of this treasure is apparent. The land is 
protected as a Late-Successional Reserve by the Northwest Forest Plan, 
as critical habitat for the northern spotted owl, and as an Area of 
Critical Environmental Concern by the Bureau of Land Management. 
Preserving these majestic forests as Wilderness for their wildlife and 
spectacular scenery matches the goals of the existing land management 
plans. I look forward to protecting this gem for future generations.
  Finally, I want to express my thanks to the conservation, recreation 
and business communities of southern and coastal Oregon, and Phil 
Krouse for his strong conservation ethic. All of them have worked 
diligently to protect these special places. I look forward to working 
with Senator Merkley, Representative DeFazio, and my House colleagues 
and the bill's other supporters to keep up the fight for these unique 
places in Oregon and get these pieces of legislation to the President's 
desk for his signature.
                                 ______
                                 
      By Mr. REED:
  S. 1276. A bill to require investment advisers to private funds, 
including hedge funds, private equity funds, venture capital funds, and 
others to register with the Securities and Exchange Commission, and for 
other purposes; to the Committee on Banking. Housing, and Urban 
Affairs.

[[Page S6654]]

  Mr. REED. Mr. President, today I introduce the Private Fund 
Transparency Act of 2009, which requires investment advisers to private 
funds, including hedge funds, private equity funds, venture capital 
funds, and others, to register with the Securities and Exchange 
Commission, SEC.
  The current financial crisis has reinvigorated my long-held concern 
that the regulation of hedge funds and other pooled investment vehicles 
should be improved to provide more information to regulators to help 
them address fraud and prevent systemic risk in our capital markets.
  Hedge funds and other private investment funds generally operate 
under exemptions in federal securities laws that recognize that not all 
investment pools require the same close scrutiny demanded of retail 
investment products like mutual funds. Hedge funds generally cater to 
more sophisticated investors who are responsible for ensuring the 
integrity of their own investments, and as a result are permitted to 
pursue somewhat riskier investment strategies. Indeed, these funds play 
an important role in enhancing liquidity and efficiency in the market, 
and subjecting them to fewer limitations on their activities has been 
and continues to be a reasonable policy choice.
  However, the existing regulatory regime for these funds has enabled 
them to operate largely outside the framework of the financial 
regulatory system even as they have become increasingly interwoven with 
the rest of the country's financial markets. As a result, there is no 
data on the number and nature of these firms or ability to calculate 
the risks they pose to America's broader economy. Over the past decade 
the SEC has recognized there are risks to our capital markets posed by 
some of these entities, and it has attempted to require at a minimum 
that advisers to these funds register under the Investment Advisers Act 
so that SEC staff can collect basic information from and examine these 
private pools of capital. The SEC's rulemaking in this area, however, 
was rejected by a federal court in 2006. As a result, without statutory 
changes, the SEC is currently unable to examine private funds' books 
and records or to take sufficient action when it suspects fraud. In 
addition, no regulator is currently able to collect information on the 
size and nature of hedge funds or other funds to identify and act on 
systemic risks that may be created by these pools of capital.
  The bill I introduce today is crafted carefully to eliminate these 
regulatory gaps without unnecessarily limiting the beneficial aspects 
of such pools. It would require all hedge fund and other investment 
pool advisers that manage more than $30 million in assets to register 
as investment advisers with the SEC. It would also provide the SEC with 
the authority to collect information from these entities, including 
information about the risks they may pose to the financial system. 
Finally, it authorizes the SEC to require hedge funds and other 
investment pools to maintain and share with other Federal agencies any 
information necessary for the calculation of systemic risk.
  The financial crisis is a stark reminder that transparency and 
disclosure are essential in today's marketplace. Improving oversight of 
hedge funds and other private funds is vital to their sustainability 
and to our economy's stability. These statutory changes will help 
modernize our outdated financial regulatory system, protect investors, 
and prevent fraud. I hope my colleagues will join me in improving the 
oversight of hedge funds and other private pools of capital by 
cosponsoring this legislation and supporting its passage.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1276

       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 ``Private Fund Transparency 
     Act of 2009''.

     SEC. 2. DEFINITION OF FOREIGN PRIVATE ADVISERS.

       Section 202(a) of the Investment Advisers Act of 1940 (15 
     U.S.C. 80b-2(a)) is amended by adding at the end the 
     following:
       ``(29) The term `foreign private adviser' means any 
     investment adviser who--
       ``(A) has no place of business in the United States;
       ``(B) during the preceding 12 months has had--
       ``(i) fewer than 15 clients in the United States; and
       ``(ii) assets under management attributable to clients in 
     the United States of less than $25,000,000, or such higher 
     amount as the Commission may, by rule, deem appropriate in 
     accordance with the purposes of this title; and
       ``(C) neither holds itself out generally to the public in 
     the United States as an investment adviser, nor acts as an 
     investment adviser to any investment company registered under 
     the Investment Company Act of 1940, or a company which has 
     elected to be a business development company pursuant to 
     section 54 of the Investment Company Act of 1940, and has not 
     withdrawn its election.''.

     SEC. 3. ELIMINATION OF PRIVATE ADVISER EXEMPTION; LIMITED 
                   EXEMPTION FOR FOREIGN PRIVATE ADVISERS.

       Section 203(b)(3) of the Investment Advisers Act of 1940 
     (15 U.S.C. 80b-3(b)(3)) is amended to read as follows:
       ``(3) any investment adviser that is a foreign private 
     adviser;''.

     SEC. 4. COLLECTION OF SYSTEMIC RISK DATA; ANNUAL AND OTHER 
                   REPORTS.

       Section 204 of the Investment Advisers Act of 1940 (15 
     U.S.C. 80b-4) is amended--
       (1) in subsection (a), by adding at the end the following: 
     ``The Commission is authorized to require any investment 
     adviser registered under this title to maintain such records 
     and submit such reports as are necessary or appropriate in 
     the public interest for the supervision of systemic risk by 
     any Federal department or agency, and to provide or make 
     available to such department or agency those reports or 
     records or the information contained therein. The records of 
     any company that, but for section 3(c)(1) or 3(c)(7) of the 
     Investment Company Act of 1940, would be an investment 
     company, to which any such investment adviser provides 
     investment advice, shall be deemed to be the records of the 
     investment adviser if such company is sponsored by the 
     investment adviser or any affiliated person of the investment 
     adviser or the investment adviser or any affiliated person of 
     the investment adviser acts as underwriter, distributor, 
     placement agent, finder, or in a similar capacity for such 
     company.''; and
       (2) adding at the end the following:
       ``(d) Confidentiality of Reports.--Notwithstanding any 
     other provision of law, the Commission shall not be compelled 
     to disclose any supervisory report or information contained 
     therein required to be filed with the Commission under 
     subsection (a). Nothing in this subsection shall authorize 
     the Commission to withhold information from Congress or 
     prevent the Commission from complying with a request for 
     information from any other Federal department or agency or 
     any self-regulatory organization requesting the report or 
     information for purposes within the scope of its 
     jurisdiction, or complying with an order of a court of the 
     United States in an action brought by the United States or 
     the Commission. For purposes of section 552 of title 5, 
     United States Code, this subsection shall be considered a 
     statute described in subsection (b)(3)(B) of such section 
     552.''.

     SEC. 5. ELIMINATION OF PROVISION.

       Section 210 of the Investment Advisers Act of 1940 (15 
     U.S.C. 80b-10) is amended by striking subsection (c).

     SEC. 6. CLARIFICATION OF RULEMAKING AUTHORITY.

       Section 211(a) of the Investment Advisers Act of 1940 (15 
     U.S.C. 80b-11) is amended--
       (1) by striking the second sentence; and
       (2) by striking the period at the end of the first sentence 
     and inserting the following: ``, including rules and 
     regulations defining technical, trade, and other terms used 
     in this title. For the purposes of its rules and regulations, 
     the Commission may--
       ``(1) classify persons and matters within its jurisdiction 
     and prescribe different requirements for different classes of 
     persons or matters; and
       ``(2) ascribe different meanings to terms (including the 
     term `client') used in different sections of this title as 
     the Commission determines necessary to effect the purposes of 
     this title.''.

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