[Congressional Record (Bound Edition), Volume 145 (1999), Part 12]
[House]
[Pages 17791-17792]
[From the U.S. Government Publishing Office, www.gpo.gov]



                        OPPOSITION TO H.R. 2398

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from Nevada (Ms. Berkley) is recognized for 5 minutes.
  Ms. BERKLEY. Mr. Speaker, I rise this evening to voice my strong 
opposition to H.R. 2398, a bill that would have disastrous consequences 
for the economy of my district, Las Vegas, Nevada.
  H.R. 2398, referred to the Committee on Ways and Means, is an example 
of the worst type of Federal Government meddling in local matters and 
senseless overregulation. I believe this is an issue of importance to 
Members of Congress and local governments across the country.
  Here is the situation in a nutshell: the Las Vegas Convention and 
Visitors' Authority needs to expand its convention center to 
accommodate the growing needs of major trade shows and conventions. 
This type of business is the lifeblood of the economy of my district, 
and hundreds of thousands of jobs depend on it. I know, because I 
worked in the tourism business for many, many years before coming here, 
and I served as a business consultant trying to meet the needs of the 
convention industry in my hometown. I know firsthand how critically 
important it is for Las Vegas to expand its convention center, and I 
know how important these facilities are to dozens of other communities 
around the Nation.
  Just 3 weeks ago, the Las Vegas Convention and Visitors' Authority 
was ready to issue revenue bonds exempt from Federal taxes. As my 
colleagues know, local government entities routinely issue tax exempt 
bonds to meet their building needs. The bond measure would allow my 
hometown convention center to add enough floor space to meet the needs 
of the convention business and maintain our reputation as one of the 
finest convention venues in the world into the 21st century.
  The bond measure was the result of responsible local government 
planning for the future, to maintain a strong economy for the benefit 
of the 1.3 million residents of southern Nevada.
  Then something shocking and outrageous happened, and it happened 
right here in this House. From 2,500 miles away, one of my district's 
most important economic development projects was torpedoed, but only 
temporarily, I hope. At the last minute the convention authority was 
forced to postpone its sale of bonds after H.R. 2398 was introduced by 
the gentleman from Texas (Mr. DeLay) on June 30.
  The remarks of the gentleman from Texas in the Congressional Record 
indicate Houston, his hometown, cannot compete with Las Vegas as a 
convention destination. He targeted Las Vegas with legislation designed 
to stop the expansion of the new convention center.
  H.R. 2398 bears the obscure and seemingly harmless title of The 
Private Activity Bond Clarification Act of 1999. In reality, this 
measure would drop a bomb on the proposed Las Vegas convention center 
expansion and on every other public building project in the United 
States that uses similar tax exempt financing.
  The Las Vegas convention center expansion project is a model of 
prudent use of public monies and sound planning. The bonds were to be 
repaid through hotel room tax revenues, exactly the revenues that would 
grow because there would be more convention space, attracting more 
visitors to southern Nevada.
  With a Federal tax exemption, the cost of the convention center bonds 
would be low and the convention center will be able to accommodate 
conventions that otherwise would be turned away. The financing through 
tax exempt bonds meets every State and Federal rule and regulation.

[[Page 17792]]

  But now, out of the blue, comes H.R. 2398. This bill seeks to kill 
the Federal tax exemption by changing the IRS codes, even though the 
current IRS codes set clear qualifications for projects in order to be 
tax exempt. And I might add that this project in Las Vegas meets all of 
these current qualifications.
  H.R. 2398 is simply a solution in search of a problem. It sets out to 
fix something that ain't broke, and in the process H.R. 2398 could do a 
whole lot of damage throughout the United States. H.R. 2398 could drive 
up the costs of convention centers and arenas around the country by 
banning tax exempt bonds for those projects. It promotes the absurd 
concept that the Federal Government should tax local governments.

                              {time}  2000

  For no good reason, H.R. 2398 gobbles up local dollars by forcing 
local entities such as the Las Vegas Convention and Visitors Authority 
to borrow money at higher interest rates because they would no longer 
qualify for Federal tax-exempt status. This amounts to an unfunded 
mandate and an onerous burden on our cities and our towns. I say we 
should be encouraging the economic boost that convention centers bring 
to a community, not discouraging them.
  H.R. 2398 is totally out of step with the times. I know the gentleman 
from Texas (Mr. DeLay) must be aware that we are in an era of 
streamlining the IRS, not expanding it. We are in an era of reducing 
government intrusion on State and local matters, not meddling in them. 
We are in an era that recognizes the value of public-private 
partnerships to stimulate economic growth. And we are certainly in an 
era when we are all trying to lower the tax burdens, not raise them. 
H.R. 2398 is on the wrong side of all of these issues and we must 
reject it for the economic health of our local communities. The defeat 
of H.R. 2398 will also defeat Federal Government meddling in local 
affairs and defeat overregulation and it will be a victory for common 
sense.

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